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Friday 4 March 2016
North Carolina Couple Indicted for Tax Fraud and Bank Fraud Related to Their Online BusinessRead the Press Release
A federal grand jury in the Middle District of North Carolina returned an indictment March 1 charging a Greensboro, North Carolina couple, who operated an online sales business with tax fraud as well as bank and wire fraud, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney Ripley Rand of the Middle District of North Carolina. The defendants were arrested earlier today and had their initial court appearances this afternoon.
Daniel Balson and Renee Balson were charged with one count of conspiracy to defraud the United States and to commit bank fraud, one count of bank fraud and five counts of wire fraud. Daniel Balson was additionally charged with three counts of filing false tax returns for 2009 through 2011 and Renee Balson was charged with one count of filing a false tax return for 2009.
According to the indictment, Daniel Balson owned and operated Southern Sales Online (SSO), an online retail business that sold a variety of merchandise through eBay and Amazon, including scrapbooking and art materials, books, inspirational DVDs, pet supplies and tools. It is alleged that although SSO earned more than $1 million in gross receipts during 2005 through 2011, the Balsons failed to report gross receipts for SSO on their tax returns filed with the Internal Revenue Service (IRS). The Balsons also failed to report income from SSO on a bank application for a mortgage loan modification in 2011. The indictment also alleges that the Balsons stole merchandise from LifeWay Christian Stores and Hobby Lobby and then knowingly sold the stolen merchandise through SSO at prices less than retail value.
If convicted, Daniel Balson and Renee Balson each face a statutory maximum sentence of five years in prison for the conspiracy count, 30 years in prison for the bank fraud count, 20 years in prison for each wire fraud count and three years in prison for each false tax return count. The Balsons also face substantial monetary penalties and restitution.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceeding.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Rand commended special agents of IRS-Criminal Investigation, who investigated the case, and Assistant Chief Todd A. Ellinwood and Trial Attorney Mara Strier of the Tax Division, who are prosecuting the case. Acting Assistant Attorney General Ciraolo also thanked the U.S. Attorney’s Office of the Middle District of North Carolina for their assistance.
Nevada City Man Pleads Guilty to Possession with Intent to Distribute MethamphetamineRead the Press Release
SACRAMENTO, Calif. — Donald Henry Dugan, 55, of Nevada City, pleaded guilty today to possession with intent to distribute at least 50 grams of a mixture or substance containing a detectable amount of methamphetamine, United States Attorney Benjamin B. Wagner announced.
According to court documents, on July 15, 2014, task force officers served a state search warrant of Dugan’s residence that resulted in the seizure of over a pound of methamphetamine, along with various items associated with controlled substance distribution such as baggies, a funnel, and a digital scale. In addition, a loaded handgun and ammunition were found in a backpack underneath Dugan’s desk. Dugan was previously convicted of a state felony in 1997 for possession of a controlled substance while carrying a loaded firearm.
This case is the product of an investigation by the Drug Enforcement Administration and the Nevada County Sheriff’s Narcotics Task Force. Assistant United States Attorney Matthew M. Yelovich is prosecuting the case.
Dugan remains in custody. He is scheduled to be sentenced by U.S. District Judge Garland E. Burrell Jr. on June 17, 2016. Dugan faces a maximum statutory penalty of 40 years in prison, a mandatory minimum of five years in prison, and a $5 million fine. The actual sentence, however, will 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.
Mumbai, India, Man Sentenced on Misbranding ChargeRead the Press Release
HARRISONBURG, VIRGINIA – United States Attorney John P. Fishwick Jr. announced today the sentencing of Indian national who previously pled guilty to conspiring to import illegal prescription drugs into the United States.
Ummer Nishad, 27, of Mumbai, India, was sentenced last week in the United States District Court for the Western District of Virginia in Harrisonburg to imprisonment for a term of four months and ten days. He was also ordered to pay $7,500 in restitution and agreed to be removed to India following the completion of his prison term.
“Ensuring the health and safety of the citizens of the Western District of Virginia by prosecuting those who import misbranded drugs is one of the most crucial tasks my office can perform,” United States Attorney John P. Fishwick Jr. said today. “I am grateful for the hard work of the agents with the FDA for investigating this case and bringing charges against this individual.”
The investigation of the case was conducted by the U.S. Food and Drug Administration’s Office of Criminal Investigations. Assistant United States Attorney Randy Ramseyer prosecuted the case for the United States.
Marshall County man sentenced for oxycodone trafficking, bank fraudRead the Press Release
WHEELING, WEST VIRGINIA – Christopher Michael Previtera, 38, of Proctor, West Virginia, was sentenced today to 57 months in prison for oxycodone trafficking and bank fraud, United States Attorney William J. Ihlenfeld, II, announced today.
Throughout 2014 and 2015, Previtera conspired with other individuals to possess and distribute oxycodone in Marshall and Wetzel Counties. He also admitted to committing fraud in connection with a loan that he obtained in order to finance the purchase of an automotive services business that he owned.Previtera pled guilty in June 2015 to one count of “Drug Conspiracy – Oxycodone,” and one count of “Bank Fraud.” He was sentenced today to 57 months in prison for drug trafficking and 57 months in prison for bank fraud. The sentences will run concurrently for a total of 57 months in prison.
As part of the sentence imposed today, Previtera was also ordered to forfeit his interest in multiple firearms, $15,070 in United States currency, a 2007 Dodge Ram truck, John Deere lawn care machinery, and various equipment and inventory related to the automotive services business. Previtera was also ordered to pay money a judgment in the amount of $145,000 in the drug trafficking case. He was further ordered to pay a money judgment and restitution in the amount and $84,117.74 in the bank fraud case.
Assistant U.S. Attorney Jarod Douglas prosecuted the case on behalf of the government. The Federal Deposit Insurance Corporation investigated the bank fraud charges. The West Virginia State Police, the Drug Enforcement Administration, and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the drug trafficking charges.
Senior U.S. District Judge Frederick P. Stamp, Jr. presided.Mansfield, Texas, Man Sentenced to 20 Years in Federal Prison for Producing and Distributing Child PornographyRead the Press Release
DALLAS — Charles Richard Burks, 67, of Mansfield, Texas, was sentenced today by U.S. District Judge John McBryde to serve a total of 20 years in federal prison, following his guilty plea in November 2015 to one count of production of child pornography and one count of distribution of child pornography. The announcement was made today by U.S. Attorney John Parker of the Northern District of Texas.
Burks has been in custody since his arrest in July 2015 on a related federal criminal complaint, following the execution of a search warrant at his residence.
According to documents filed in the case, on approximately June 30, 2014, Burks used the Internet and Yahoo mail to distribute a video of a minor female engaged in sexually explicit conduct to another Yahoo email user. The subject line of the email was “video,” and it contained the message, “watch.”
On approximately June 9, 2015, Burks used Yahoo Instant Messenger and his Yahoo email account to communicate with an individual in the Philippines about using minors to engage in sexually explicit conduct. The two discussed what sex acts would be performed during a live show and that Burks would pay $25 for images from the show.
On approximately June 10, 2015, Burks knowingly employed, used, persuaded and induced a minor female, to engage in sexually explicit conduct, outside of the United States, so that still visual images of that conduct could be produced. Burks intended the visual images to be transported to the United States. In fact, Burks received an email from that individual in the Philippines. The subject line of the email was “here the pics,” and attached were eight images depicting the same minor female.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) investigated the case. Assistant U.S. Attorney A. Saleem was in charge of the prosecution.
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Man Admits Performing Lead-Based Paint Testing in Westville Without CertificationRead the Press Release
ALBANY, NEW YORK – Ronald Barney, age 66, of Orange, California, pleaded guilty yesterday to a misdemeanor charge of performing lead-based paint testing inspections and risk assessments without a certification from the Environmental Protection Agency (EPA).
The announcement was made by United States Attorney Richard S. Hartunian, EPA Criminal Investigations Division Special Agent in Charge Vernesa Jones-Allen, and Christina Scaringi, Special Agent in Charge of the Housing and Urban Development Office of Inspector General.
Barney, formerly of Constable, New York, pled guilty to a violation of the Toxic Substances Control Act. United States Magistrate Judge Douglas F. McCormick of the Central District of California sentenced Barney to a two-year term of probation and ordered him to pay a $2,500 fine. This case, brought by the U.S. Attorney’s Office for the Northern District of New York, was resolved in the Central District of California, where Barney now resides.
As part of his plea, Barney admitted that on November 4, 2010, he performed an inspection and risk assessment for lead-based paint on a residence in the Town of Westville, New York, despite not being certified by the EPA to do so, and that he billed Westville $2,500 for these services.
The case resulted from a joint investigation by the EPA Criminal Investigations Division and the Housing and Urban Development Office of Inspector General. The case was prosecuted by Assistant United States Attorney Sean O’Dowd in Albany and Assistant United States Attorney Robert Keenan of the Central District of California.Major Methamphetamine Prosecution Sends Dozens to PrisonRead the Press Release
ROANOKE, VIRGINIA – The investigation into a major methamphetamine conspiracy that distributed large amounts of the drug unto Wythe County, Carroll County, Pulaski County, Grayson County, the City of Galax and part of North Carolina, concluded this week with the sentencing of the final, non-fugitive defendant, United States Attorney John P. Fishwick Jr. announced today.
Joseph Gentry, 34, of Low Gap, North Carolina, previously pled guilty to conspiracy to distribute 50 grams or more of methamphetamine. This week in District Court, Gentry was sentenced to 121 months of federal incarceration.
“These individuals brought thousands of pounds of methamphetamine into the Western District of Virginia from the West Coast and Mexico. They imported this poison into our communities and profited off the addiction of others,” United States Attorney John P. Fishwick Jr. said today. “It is a testament to the cooperation and professionalism of the law enforcement agencies that devoted the time and resources necessary to take down this conspiracy.”
Gentry is the last of more than 40 defendants convicted as a result of a long-running investigative operation conducted by the Virginia State Police, the Wythe County Sheriff’s Office, the Grayson County Sheriff’s Office, the Galax Police Department, the Carroll County Sherriff’s Office, the Pulaski County Sheriff’s Office and the Drug Enforcement Administration. The operation dismantled a methamphetamine distribution network that brought more than 1,800 pounds of methamphetamine into the area between 2010 and 2015. Most of this methamphetamine was brought to Western Virginia from California or Mexico.
Three defendants, Erika Ortiz, Olivia Moreno and Bianca Aroche, have been charged as being part of the conspiracy but are currently fugitives.
The investigation of the case was conducted the Virginia State Police, the Wythe County Sheriff’s Office, the Grayson County Sheriff’s Office, the Galax Police Department, the Carroll County Sherriff’s Office, the Pulaski County Sheriff’s Office and the Drug Enforcement Administration. Assistant United States Attorney Ashley B. Neese prosecuted the case for the United States.
Maine Roofing Company Pays $439,500 to Settle False Claims Act AllegationsRead the Press Release
Contact: Andrew K. Lizotte
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II today announced that Belcon Enterprises, formerly Roof Systems of Maine (“Belcon”), has entered into a civil settlement agreement with the United States in which it will pay $439,500 to resolve allegations that it violated the federal False Claims Act.
Belcon is based in Bangor, Maine. As part of its business, Belcon provided roofing and siding services to commercial and industrial installations throughout the state of Maine, including as subcontractor on prime Government construction contracts. The settlement resolves allegations by the Government that Belcon knowingly caused false and fraudulent claims to be submitted in connection with roofing and siding work it performed as a subcontractor on three prime Government construction contracts between 2010 and 2014.
The Government alleged that Belcon knowingly billed and was paid for metal wall panel installation work which did not conform to applicable contract requirements and specifications at the Army National Guard’s Armed Services Reserve Center in Brunswick, Maine. Specifically, it was alleged that Belcon improperly directed and/or permitted the panels to be re-sized and altered, installed the panels at incorrect locations, and did not use sealant throughout the panel installation. The Government also alleged that Belcon knowingly used non-specified, off-contract materials on two roofing and siding projects for the Navy. For the Navy’s Power Plant Building in Cutler, Maine, it was alleged that the materials used by Belcon for flashing and trim on the project were thinner, less-expensive, and made by a different manufacturer than required by the contract. For the Portsmouth Naval Shipyard Building 86 in Kittery, Maine, it was alleged that Belcon used plain carbon steel screws rather than the required copper, brass or Series 300 stainless steel fasteners on a copper installation, which will result in galvanic corrosion and safety and structural issues.
The allegations of fraud stated in the action were first brought to the attention of the Government by Brian Emery, who filed a lawsuit in late 2014 as a relator under the False Claims Act’s qui tam provisions. See United States ex rel. Emery v. Roof Systems of Maine, et al., 14-cv-00483-DBH (D. Me.). The Government will pay Mr. Emery a share of the settlement proceeds pursuant to the False Claims Act’s qui tam provisions.
The False Claims Act permits the Government to recover up to three times the amount of damages incurred by the United States, in addition to civil penalties ranging from $5,500 to $11,000 per violation. Private parties who have knowledge of fraud committed against the Government may file suit on behalf of the Government and share in any recovery. The United States may also intervene and file its own lawsuit for treble damages and penalties, as it did in this case.
The federal government was represented by the U.S. Attorney’s Office and the Naval Criminal Investigative Service and the Defense Criminal Investigative Service. Belcon cooperated throughout the Government’s investigation.
Lockport Man and Woman Arrested on Drug ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney William J. Hochul, Jr. announced today that Oliver Kimmons, 48, and Kathlyn Ventura, 24, both of Lockport, NY, were arrested and charged by criminal complaint with possession with intent to distribute heroin and crack cocaine. The charge carries a maximum penalty of 20 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney Meghan A. Tokash, who is handling the case, stated that according to the complaint, the defendants are accused of selling heroin and crack cocaine in the City of Buffalo and the Lockport area.
As part of the federal investigation, Kimmons and Ventura were identified as “retail dealers” in a larger narcotics conspiracy. According to the complaint, Kimmons obtained narcotics from his brother Joseph Thompson and Thompson obtained his narcotics from Trent Hamilton and Troy Gillon. Thompson has been indicted on charges of possession with intent to distribute heroin, crack cocaine and fentanyl. Hamilton has been indicted on charges of conspiracy to possess with intent to distribute and to distribute heroin, and possession with intent to distribute and to distribute heroin. Gillon has been indicted on charges of conspiracy to possess with intent to distribute heroin, fentanyl, and cocaine and possession with intent to distribute heroin, fentanyl and cocaine.
The defendants made an initial appearance this afternoon before U.S. Magistrate Judge H. Kenneth Schroeder and are being detained pending a detention hearing on March 9th, 2016 at 10:30 a.m.
The complaint is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Division, the Lockport Police Department, under the direction of Chief Michael Niethe and the Niagara County Drug Task Force, under the direction of Sheriff James Voutour.
The fact that a defendants have been charged with a crime is merely an accusation and the defendants are presumed innocent until and unless proven guilty.
Local investment manager sentenced in investment fraud schemeRead the Press Release
INDIANAPOLIS - United States Attorney Josh J. Minkler announced today that Ronald W. Nichter, an investment broker from Pendleton, Indiana, was sentenced for his role in a fraud scheme. Nichter, age 60, was sentenced by U. S. District Judge William T. Lawrence to one year in federal prison after his conviction on eight counts of mail fraud. Nichter engaged in a scheme to defraud his clients by withdrawing money from their accounts for his personal use.
“The victims in this case worked hard for their money, and they expected the defendant to work equally hard to protect it,” Minkler said. “Instead, this alleged scheme violated their trust and resulted in significant losses to their investment accounts.”
Nichter purchased and managed securities on behalf of clients in and around central Indiana, including clients in Anderson, Pendleton, and Greenfield.
Beginning in October 2009, Nichter created false documents with forged client signatures requesting that funds be withdrawn from their investment accounts. The checks issued in response to these documents would then be forwarded to addresses to which Nichter had access. Nichter took custody of these checks, deposited them into his bank account and spent the money for his own benefit.
This case was investigated by the United States Secret Service.
According to Assistant U.S. Attorney Bradley P. Shepard who prosecuted the case for the government, Nichter also faces two years of supervised release after serving his sentence and must make full restitution.
Leader of Major Baltimore Drug Trafficking Organization Sentenced to 20 Years in Federal PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced the leader of the Jenifer drug trafficking organization (Jenifer DTO), Kedrick Arnold Jenifer, a/k/a “Ricky Jenifer,” “James Howard Collier, Jr.” and “Rick,” age 44, of Bowie, Maryland, today to 20 years in prison, followed by 10 years of supervised release, for conspiring to distribute cocaine. Judge Bennett entered an order requiring Jenifer to forfeit: three properties in Baltimore and one in North Miami, Florida; $111,772.19 in cash; bank accounts worth over $149,000; seven vehicles, including a 2013 Rolls-Royce Ghost and a 2014 Ferrari 458 Italia; jewelry valued at more than $575,000; as well as a boat, guns and other luxury items.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration, Baltimore District Office; Special Agent in Charge Thomas Jankowski of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; Commissioner Kevin Davis of the Baltimore Police Department; and Chief James W. Johnson of the Baltimore County Police Department.
“Kedrick Jenifer lived large as a major Baltimore drug dealer, but now he will lose all of his toys and live for two decades in federal prison,” said U.S. Attorney Rod J. Rosenstein. “The money, cars, jewelry, real estate and businesses he accumulated with drug proceeds were forfeited to the government.”
According to his plea agreement and court documents, from September 2012 until his arrest in October 2014, Kedrick Jenifer was the head of the drug organization. He directed the collection and transportation of money from Baltimore to Houston, Texas. The Jenifer DTO would hide money in secret compartments in “courier vehicles” that were transported from Baltimore to Houston. Jenifer would then fly to Houston and obtain kilograms of cocaine from a source of supply. The cocaine was transported from Houston to Baltimore in the courier vehicles, and Jenifer would return to Baltimore via commercial air carrier.
According to court documents and information provided at today’s sentencing hearing, on September 27, 2012, co-defendant Brooke Lunn was operating a courier vehicle near Houston when the vehicle was stopped by the Texas State Police. John Moore was a passenger in the vehicle. Lunn consented to a search of the vehicle and law enforcement recovered approximately 30 kilograms of cocaine that were located in hidden compartments in the vehicle. Both Lunn and Moore were arrested and charged by Texas authorities. After being released on bond, Lunn and Moore returned to Maryland. On October 20, 2012, Moore suffered a fatal gunshot wound to the back of the head. Law enforcement agents believe that Moore’s homicide was the direct result of the cocaine seizure. Phone records reveal that John Moore was in contact with Jenifer prior to, the day of, and after the car stop.
In July 2013, a courier vehicle loaded on a car-carrier at Jenifer’s direction was intercepted in Arkansas. The vehicle contained approximately 23 kilograms of cocaine hidden in a secret compartment.
Between August 2013 and October 2014, Jenifer directed approximately 30 shipments of cocaine concealed in secret compartments in the courier vehicles. After a courier vehicle would return to Baltimore from Houston, Jenifer was seen operating the hidden compartments in the courier vehicle and supplying other members of the Jenifer DTO with cocaine at their distribution location at RCH Plaza in west Baltimore.
Jenifer and/or co-defendant Tyrone Allen also made approximately 16 trips to Woodbridge, Virginia to deliver kilograms of cocaine to co-defendant Thomas Simmons.
On October 9, 2014, approximately 27 kilograms of cocaine were seized from one of the Jenifer DTO’s courier vehicles.
Jenifer agreed that he was responsible for the distribution of no less than 450 kilograms of cocaine between August 2013 and October 2014.
According to court documents, Jenifer was a co-owner of Flavor Factory, LLC, and Rita’s Italian Ice, located at 2033 Eastern Avenue in Baltimore. Jenifer has also forfeited his interest in these businesses.
Nine co-conspirators have pleaded guilty and been sentenced. Andre Brewer, age 36, of Jessup, Maryland; Michael Williams, age 41; Brooke Renee Lunn, a/k/a “Brooke Thomas” and “Brooke Renee,” age 49; William Hegie, age 55; Kermit Clark, age 45; and Elroy Johnson, age 49, all of Baltimore; Tyrone Allen, age 44, of Bowie, Maryland; and Thomas Simmons, age 38, of Hampton, Virginia, were sentenced to between 10 and 16 years in prison.
United States Attorney Rod J. Rosenstein praised the DEA, IRS Criminal Investigation and Baltimore City and County Police Departments for their work in the investigation, and expressed his appreciation to the United States Attorney’s Offices for the Southern District of Texas and the Southern District of New York for their assistance. Mr. Rosenstein thanked Assistant United States Attorney John W. Sippel, Jr., who prosecuted this Organized Crime Drug Enforcement Task Force case.
Justice Department and City of Fort Worth, Texas, Settle Lawsuit Alleging Disability DiscriminationRead the Press Release
The Justice Department announced today that the city of Fort Worth, Texas, has agreed to settle a lawsuit alleging that Fort Worth discriminated against persons with disabilities when it refused to allow a group home for individuals recovering from drug and alcohol addiction to operate in a single family residential zone in the city.
The lawsuit, filed in April 2015, alleged that the city violated the Fair Housing Act when it issued multiple citations and fines against a four bedroom group home, known as Ebby’s place, in which residents who have successfully completed at least a 30-day drug or alcohol treatment program live together to reinforce and encourage their mutual commitment to recovery. After receiving the citations, Ebby’s Place requested a zoning variance that would allow it to operate, which the city council unanimously denied.
Under the terms of the agreement, which must still be approved by the U.S. District Court for the Northern District of Texas, Fort Worth will allow Ebby’s Place to operate with up to seven residents and will rescind all the citations it had previously issued against the home. Fort Worth will also pay $135,000 to Ebby’s Place in monetary damages and $10,000 to the United States as a civil penalty. As a part of the settlement, Fort Worth also adopted an ordinance establishing a process whereby persons may seek reasonable accommodations from the city’s zoning or land use laws and practices, where such accommodations may be necessary to afford persons with disabilities an equal opportunity to use and enjoy their housing.
The lawsuit arose as a result of a complaint filed with the U.S. Department of Housing and Urban Development (HUD) by Ben Patterson, who through Ebby’s Place LLC, owns and operates the group home. After conducting an investigation, HUD referred the matter to the Department of Justice. Ebby’s Place later intervened in the Justice Department’s lawsuit. Today’s agreement would also settle the lawsuit filed by Ebby’s Place.
“The Fair Housing Act and the Americans with Disabilities Act protect individuals with disabilities from housing discrimination, including discriminatory zoning practices,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “We commend the city of Fort Worth for working with the Justice Department to reach an agreement that will safeguard the rights of persons with disabilities in our communities.”
“The city of Fort Worth has cooperated in this investigation from the beginning,” said U.S. Attorney John Parker of the Northern District of Texas. “There was never any doubt in my mind that the city leaders would work with the Department of Justice to achieve the right result, and they’ve done just that.”
Fighting illegal housing discrimination is a top priority of the Justice Department. The Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability. Title II of the Americans with Disabilities Act prohibits discrimination on the basis of disability by public entities. Visit www.usdoj.gov/crt for more information about the Civil Rights Division and the laws it enforces. Additional information about the Fair Housing Act is available at www.HUD.gov. Additional information about the Americans with Disabilities Act is available at www.ADA.gov.
Fort Worth Consent Decree
Judge Gives Allentown Man Long Prison Term for Sex TraffickingRead the Press Release
PHILADELPHIA - Corderro Cody, 28, of Allentown, PA, was sentenced today to 30 years in prison for running a sex trafficking operation, announced United States Attorney Zane David Memeger. Cody pleaded guilty on October 30, 2015, to conspiracy to commit sex trafficking by force, fraud or coercion, 12 counts of sex trafficking, one count of conspiracy to transport individuals across state lines for the purpose of prostitution, and one count of sex trafficking of a minor. In addition to the prison term, U.S. District Court Judge Edward G. Smith ordered 20 years of supervised release, and a $1,500 special assessment.
Since at least 2009 through May of 2014, Cody recruited women to work as prostitutes, referred to his prostitution business as the “program,” and advertised the women on Backpage.com. The women were sometimes driven to other states and forced to perform sexual acts. Cody recovered and kept most, if not all, of the money generated by the sexual acts, and used physical force in the form of rape and violent assaults, as well as extreme emotional manipulation, when the women did not adhere to the “program,” and to maintain the women performing commercial sexual acts. Cody forced one woman to work for him as a prostitute when she was just 17 years old.
“The sentence imposed today will ensure that this defendant is unable to subject other girls and women to the tortures that these victims endured,” said Memeger.
“Cody operated a vicious sex trafficking scheme, using brutal physical attacks and emotional abuse to compel his victims to continue selling their bodies for his profit,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “The Civil Rights Division remains fiercely committed to holding traffickers accountable for their reprehensible conduct, and to safeguarding the rights and dignity of survivors of this heinous crime.”
“Investigations like this highlight the collaborative efforts of the many law enforcements agencies involved in the aggressive fight against human trafficking,” said Homeland Security Investigations Acting Philadelphia Special Agent-in-Charge Jack P. Staton. “This sentence should serve as a warning to all individuals and criminal groups involved in the trafficking of minors and women that we are determined to investigate and prosecute to the fullest extent of the law all that are involved in this heinous crime.”
The case was investigated by U.S. Immigration and Customs Enforcement Homeland Security Investigations and the Allentown Police Department. It was prosecuted by Assistant United States Attorney Sherri A. Stephan, and Trial Attorney Anita Channapati of the Civil Rights Division of the Department of Justice.
Jamaica Plain Man Sentenced for Stealing from Social SecurityRead the Press Release
BOSTON – A Jamaica Plain man was sentenced today in U.S. District Court in Boston for stealing $70,811 in Social Security benefits.
Brian Sandiford, 59, was sentenced by U.S. District Court Judge Douglas P. Woodlock to one year of probation, including six months of home confinement, and ordered to pay a fine of $2,000 and restitution of $70,811 to the Social Security Administration, which he paid in full today. In November 2015, Sandiford pleaded guilty to stealing public money.
Sandiford’s father died in 2010, but the father’s monthly Social Security benefits continued to be directly deposited into a bank account held jointly by Sandiford and his father. Although he was not entitled to this money, Sandiford routinely transferred the Social Security money into his own bank account and then spent it. In total, from 2010 to 2014, Sandiford took $70,811 in Social Security funds to which he was not entitled.
This case was brought as part of an ongoing effort by the U.S. Attorney’s Office, in partnership with the Social Security Administration, to investigate and prosecute the posthumous fraud of Social Security benefits. In many of these cases, family members, knowing they are not entitled to government benefits, continue to withdraw and spend the funds after a relative has died. In the past year, the U.S. Attorney’s Office has prosecuted several similar cases involving a total of more than $1 million in stolen government money.
United States Attorney Carmen M. Ortiz and Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of the Inspector General, Office of Investigations, Boston Field Division, made the announcement today. The case was prosecuted by Special Assistant U.S. Attorney Timothy Landry of Ortiz’s Major Crimes Unit.
Illinois Man Sentenced for Defrauding Foreign Investor of $500,000Read the Press Release
ALEXANDRIA, Va. – Thomas A. Kopec, 48, of New Lenox, Illinois, was sentenced today to 25 months in prison for wire fraud for cheating a Panamanian investor out of $500,000. Kopec was also ordered to serve three years of supervised release and pay $500,000 in restitution.
Kopec pleaded guilty on Dec. 11, 2015. According to court documents, Kopec admitted to soliciting $500,000 from the victim for a purported investment vehicle for purchasing securities and acquiring a bank. Kopec took steps in pursuing the purported investment in order to lull the victim into thinking the investment was proceeding as planned. In truth, Kopec misappropriated the moneys and spent them on personal and other expenses at retail establishments including Best Buy, Wal-Mart, and the Apple Store. Kopec started the scheme in Illinois, but relocated it to the Eastern District of Virginia, and caused the issuance of interstate wires originating in the Eastern District of Virginia in order to obtain and misappropriate the victim’s money.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after sentencing by U.S. District Judge T.S. Ellis, III. Assistant U.S. Attorney Kosta S. Stojilkovic prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:14-cr-204.
Identity Thief Sentenced to 9 Years in PrisonRead the Press Release
SACRAMENTO, Calif. — Gurpinder Sandhu, 47, of Hercules, was sentenced today by United States District Judge Garland E. Burrell, Jr. to nine years in prison for possession of device-making equipment and aggravated identity theft, United States Attorney Benjamin B. Wagner announced.
According to court documents, in September 2014 law enforcement began investigating reports of numerous vehicles fraudulently purchased with stolen identities from car dealerships throughout the Northern and Eastern Districts of California. The investigation led to Sandhu’s residence, where law enforcement located three of the fraudulently obtained vehicles: a 2014 Nissan Rogue, a 2014 Dodge Challenger, and a Harley Davidson motorcycle.
Inside Sandhu’s residence, law enforcement agents found many counterfeit items, including credit cards and California driver licenses. Law enforcement agents also found device-making equipment to manufacture these counterfeit items. This equipment included an embossing machine, cameras, printers, scanners, materials and chemicals used to produce identification cards, state seals, and a blue backdrop on the wall to imitate a California Department of Motor Vehicles ID photo background. Agents also found documents containing the names of real people, such as rental agreements, Comcast bills and sales receipts.
Based on the fraudulent documents found in the apartment, law enforcement identified at least 50 victims of identity theft. Sandhu and a co-defendant, used these identities to fraudulently purchase vehicles from car dealerships and retail goods from commercial stores such as Macy’s.
Sandhu succeeded in getting at least seven vehicles in this manner. In addition to the three vehicles named above, Sandhu fraudulently obtained a 2013 Yamaha motorcycle, a 2010 Chevrolet Corvette, a 2013 Dodge Challenger and a 2013 Dodge Charger.
This case was the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the California Highway Patrol. Special Assistant United States Attorney Josh F. Sigal prosecuted the case.
Sandhu was also ordered to pay $45,115 in restitution. He has remained in custody since his arrest on March 6, 2015. Charges remain pending against co-defendant Simone Aguilar, who is next scheduled to appear in court on April 8, 2016. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Husband and Wife Sentenced in Postal Insurance Theft SchemeRead the Press Release
DALLAS — A husband and wife from Fort Worth, Texas, have been sentenced for their roles in a postal insurance theft scheme they ran in north Texas, and elsewhere, announced U.S. Attorney John Parker of the Northern District of Texas.
Sabrina Bourbois, 32, was sentenced by U.S. District Judge Sidney A. Fitzwater to 21 months in federal prison in December 2015, following her guilty plea earlier in the year to one count of theft of government money, property or records. She has been in custody since her arrest in March 2015.
Today, her husband, Ricardo Bourbois, 45, was sentenced by Judge Fitzwater to serve 12 months in federal prison. He pleaded guilty in November 2015 to the same offense. The couple was also ordered to pay $138,982 in restitution, jointly and severally, to the U.S. Postal Service. Ricardo Bourbois must surrender to the Bureau of Prisons on April 19, 2016.
According to documents filed in the case and statements made in court, Ricardo Bourbois stole postal insurance from the U.S. Postal Service, and Sabrina Bourbois used this name and others, including Alicia Diver, Sabrina Kibbee, Sabrina Diver and Sabrina Kibbee-Diver to do the same by falsifying documents and opening post office boxes for both receive the benefits from the scheme. The scheme to defraud lasted more than three years.
The U.S. Postal Inspection Service and the U.S. Postal Service - Office of Inspector General investigated. Special Assistant U.S. Attorney Jennifer Bray was in charge of the prosecution.
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Houstonians Plead Guilty in $13 Million Health Care Fraud CaseRead the Press Release
HOUSTON – The leader and four others charged in a $13 million Medicare and Medicaid health care fraud case have entered guilty pleas for their respective roles, announced U.S. Attorney Kenneth Magidson.
Mkrtich “Mike” Yepremian, 58, of Houston, pleaded guilty to conspiracy to commit health care fraud and paying kickbacks to marketers of Medicare and Medicaid patients. Also pleading guilty today was Bompa Mbokoso Mompiere, 56, of Houston, who also pleaded to the conspiracy.
Over the last few weeks, three others have also been convicted - Mike Wilson, 47, Jermaine Doleman, 38, and Eric Johnson, 62, all of Houston. They pleaded guilty to the conspiracy and to committing health care fraud.
According to the factual basis in support of the plea, Yepremian ran several false clinics in Houston and Conroe. Yepremian paid marketers, including Wilson, Doleman and Johnson, to bring patients to the clinics for a battery of diagnostic tests and blood work, regardless of medical need. Yepremian paid the marketers approximately $100 for each patient brought to his clinics. In turn, the marketers paid the patients approximately $50 each.
Mompiere was an unlicensed foreign medical graduate who saw patients at Yepremian’s clinics. He also would go into the city and assist in drawing blood from Medicare and Medicaid patients at various home health businesses. Yepremian would bill Medicare and Medicaid for unnecessary blood work and would, in turn, get authorizations for home health care signed by physicians who worked at the clinics.
As a result of this scheme, Medicare and Medicaid were billed approximately $13 million and paid out approximately $9 million in false claims. Yepremian has also agreed to forfeit real estate and some commercial trucks as part of his plea agreement.
The statutory maximum penalty for a violation of the conspiracy statute or for health care fraud is up to 10 years in prison and a possible $250,000 maximum fine. If convicted of paying kickbacks, Yepremian faces an additional five years in prison and a $25,000 fine.
The charges are the result of the investigative efforts of the Texas Attorney General’s Medicaid Fraud Control Unit, Department of Health and Human Services - Office of Inspector General (Office of Investigations) and the FBI. Special Assistant United States Attorney Suzanne Bradley and Trial Attorney Scott Armstrong are prosecuting the case.
Grand Jury Returns Indictment Charging Five with Meth, Heroin Trafficking in UtahRead the Press Release
SALT LAKE CITY – Four individuals are charged with trafficking drugs in Utah following an investigation by the DEA, the Davis Metro Narcotics Task Force, and the West Valley City Police Department. The drugs were transported from Los Angeles to Salt Lake City for distribution.
Charged in the seven-count indictment are Fausto Alejandro Galaviz-Gaxiola, age 21, Fernando Galaviz-Castro, age 22, Jesus Pina-Cantua, age 22, and Efrain Espinoza, age unknown. The defendants are citizens of Mexico living in West Valley City. The charges include conspiracy to distribute methamphetamine; conspiracy to distribute heroin; possession with intent to distribute methamphetamine; possession with intent to distribute heroin; and distribution of methamphetamine.
According to a complaint filed in the case, the DEA and the Davis County task force initiated a joint investigation targeting the drug trafficking activities of Galaviz-Gaxiola, Galaviz-Castro, and Espinoza in October 2015. As a part of the investigation task force officers made several under cover purchases of methamphetamine and heroin from the defendants.
A search warrant was executed Feb. 18, 2016, at a residence in West Valley City shared by Galaviz-Gaxiola, Galaviz-Castro, and Pina-Cantua. They also executed a search warrant on a vehicle used by the defendants. Agents recovered approximately 4.8 kilograms of heroin (street value of about $480,000), 2.1 kilograms of methamphetamine (street value of $126,000), and $103,764 at the home. About 615 grams of cocaine (street value of $61,500) was recovered during the search of the car, according to the complaint.
Agents also executed a search warrant on Espinoza’s residence in West Valley City and on a car he used. According to the complaint, agents located $8,000 in a sophisticated, electronically-operated compartment hidden on the front passenger side of his car.
The defendants, who were initially charged by complaint, had initial appearances in court following their arrests. They were arraigned on the indictment Thursday afternoon and entered pleas of not guilty to the charges. They will be in custody pending trial.
Indictments are not findings of guilt. Individuals charged in indictments are presumed innocent unless or until proven guilty in court.
The first six distribution counts of the indictment each carry potential 10-year mandatory minimum sentences. The seventh count of the indictment, distribution of methamphetamine, carries a potential 40 year sentence with a five-year mandatory minimum. The indictment also seeks the forfeiture of $111,764 in U.S. currency and two vehicles obtained or used as a part of the commission of the offenses.
Gasconade County Police Officer Indicted on Civil Rights ChargesRead the Press Release
St. Louis, MO – An indictment was unsealed earlier today charging former Gasconade County law enforcement officer Marty L. Rainey with multiple civil rights violations involving his sexual abuse of several women during his tenure in various law enforcement departments in Gasconade County, Missouri.
According to the indictment, Marty Rainey was triple-commissioned and employed by the Gasconade County Sheriff’s Office, the Hermann Police Department and the Rosebud Police Department as a law enforcement officer. Between June 2010 and March 2012, in his capacity as a law enforcement officer, Rainey committed acts of aggravated sexual abuse involving four women. Additionally, the indictment alleges that on August 31, 2012, Rainey enticed a minor under the age of 18 to engage in prostitution.
Rainey, Sullivan, MO, was indicted Wednesday by a federal grand jury on four felony counts of deprivation of rights under the color of law and one felony count of enticement of a minor to engage in commercial sex acts. He is expected to appear in federal court in St. Louis later this morning for his initial appearance.
If convicted, these charges carry a maximum penalty of life in prison and/or fines up to $250,000. In determining the actual sentence, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Federal Bureau of Investigation and the Missouri State Highway Patrol, with the cooperation of the Gasconade County Sheriff’s Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Gainesville Woman Sentenced to Two Years for Social Security FraudRead the Press Release
GAINESVILLE, FLORIDA – Debra A. Scott, 57, of Gainesville, was sentenced today to two years in prison and ordered to pay $179,979 in restitution for theft of government property and aggravated identity theft. The sentence was announced by Christopher P. Canova, Acting United States Attorney for the Northern District of Florida.
During her guilty plea on September 2, 2015, Scott admitted that, after her mother’s death in January 1997, she continued to receive her mother’s Social Security Administration benefits checks at the home they shared. Scott forged her mother’s signature on the checks and deposited them into her own account. Between January 1997 and March 2014, Scott negotiated more than 200 stolen Social Security checks, totaling approximately $179,979.
This case resulted from investigations by the Social Security Administration - Office of Inspector General and the Alachua County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Herbert S. Lindsey.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. The office strives to protect and serve the citizens of the Northern District of Florida through the ethical, vigorous, and impartial enforcement of the laws of the United States, to defend the national security, to improve the safety and quality of life in our communities through the protection of civil rights, and to protect the public funds and financial assets of the United States. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact:
Amy Alexander, Public Information Officer
(850) 216-3854, [email protected]Fourth Defendant Pleads Guilty in Native American Bones Trafficking CaseRead the Press Release
COLUMBUS, Ohio – A fourth defendant has pleaded guilty in the first criminal enforcement of the Native American Graves Protection and Repatriation Act in the Southern District of Ohio.
Toby Lee Thacker, 55, of Wellston, Ohio, pleaded guilty in U.S District Court today to violating the Act by engaging in the excavation and sale of the human remains of a Native American.
David E. Skeens, 39, and Brian K. Skeens, 38, both of Wellston, Ohio, each pleaded guilty in December 2015 to engaging in the excavation and sale of the Native American bones.
Mark M. Beatty, 56, of Wellston, Ohio, pleaded guilty in August 2015 to purchasing the remains.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Division, Jackson County Sheriff Tedd Frazier and Rick Perkins, Chief Ranger, National Park Service at Hopewell Culture National Historical Park, announced the plea entered into today before U.S. District Magistrate Judge Terence P. Kemp.
According to court documents, David and Brian Skeens and Thacker were observed digging in a rock shelter in Salt Creek Valley in Jackson County, Ohio. When they were approached, they ran off into the woods and left behind shovels, dirt sifters, buckets and trash. Investigators confirmed that they had unburied human remains. Beatty admitted to purchasing those remains.
An anthropologist confirmed that the human remains were consistent with Native Americans, specifically identifiable by cradle boarding, a cultural activity used only by Native American Indians in North America. The identity of the remains was also confirmed by an archeologist, who verified that rockshelters were used extensively for burials in Southern Ohio and specifically in Jackson County.
DNA testing concluded a direct connection to present day Native American Indians living in the United States today.
The remains will be transferred to the federally recognized tribes who have assisted with this case, and re-buried in Ohio at an undisclosed location and in private once all the court proceedings are completed.
U.S. Attorney Stewart commended the investigation by the Jackson County Sheriff’s Office and FBI and the participation from an archeologist from Wayne National Forest and researchers from Ohio University, The Ohio State University and Washington State University, as well as Assistant United States Attorneys J. Michael Marous and Brian Martinez, who are representing the United States in this case.
Fort Worth Man Sentenced to Statutory Maximum of 40 Years in Federal Prison on Methamphetamine ConvictionRead the Press Release
FORT WORTH, Texas — Christopher Michael Stewart, 40, was sentenced this morning by U.S. District Judge John McBryde to 480 months in federal prison, following his guilty plea in November 2015 to one count of possession with intent to distribute methamphetamine. The announcement was made today by U.S. Attorney John Parker of the Northern District of Texas.
According to documents filed in the case, on August 19, 2015, officers with the North Richland Hills Police Department stopped Stewart for committing several traffic violations; he was driving a Dodge pickup truck and was the sole occupant of the truck. After a drug detection canine alerted to the presence of narcotics, officers searched the vehicle and recovered approximately 1,157 grams of methamphetamine, a loaded Glock handgun, packaging equipment and approximately $17,600 in cash. The Glock was later confirmed stolen.
The Drug Enforcement Administration and the North Richland Hills Police Department investigated the case. Assistant U.S. Attorney Joshua Burgess was in charge of the prosecution.
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Former Ohio Music Instructor Pleads Guilty to Production of Child PornographyRead the Press Release
COLUMBUS, Ohio – Brian M. Sze, 35, of Seattle, pleaded guilty in U.S. District Court to production of child pornography.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Marlon V. Miller, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), Franklin County Sheriff Zach Scott, Columbus Police Chief Kim Jacobs and members of the Franklin County Internet Crimes Against Children (ICAC) Task Force announced the plea entered into today before U.S. District Judge Algenon L. Marbley.
According to court documents, the investigation began in July 2015 after a tip was reported to ICAC, which indicated that Sze had engaged in sexually suggestive communications with a minor. The investigation revealed that Sze had also engaged in illicit sexual contact with a minor and caused recordings of the child engaged in sexual activity to be recorded.
Sze pleaded guilty to one count of production of child pornography, a crime punishable by a range of 15 to 30 years in prison.
“Sze’s actions are particularly heinous because he used his position as an educator to victimize a minor,” Assistant U.S. Attorney Heather A. Hill said.
"This case is particularly troubling due to the defendant's position of trust with young people," said Miller. "Some predators are under the false impression that the anonymity of cyberspace shields them from scrutiny by law enforcement. HSI remains committed to working with our law enforcement partners in the fight against those who sexually exploit children."
“The Franklin County ICAC Task Force works diligently on targeting those who prey on children,” Sheriff Zach Scott said. “We are committed to working collaboratively to bring child predators like Sze to justice. We do not and will not tolerate these crimes being committed in our community.”
The Franklin County ICAC Task Force is a multi-agency effort dedicated to the fight against computer facilitated crimes against children. The following agencies are members:
Franklin County Sheriff’s Office
Ohio ICAC
Grove City Police Department
Columbus Police Department
Grandview Heights Police Department
Westerville Police Department
Hilliard Police Department
Franklin County Prosecutor's Office
Homeland Security Investigations (HSI)
Ohio Attorney General’s Office (BCI)
The Ohio State University Police Department
Upper Arlington Police Department
Circleville Police Department
Pickaway County Sheriff’s Office
This case is being brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorney's Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children as well as to identify and rescue victims.
U.S. Attorney Stewart commended the members of the ICAC Task Force for the cooperative investigation, and Assistant U.S. Attorney Heather A. Hill, who is representing the United States in this case.
Former Mount Vernon Police Officer Pleads Guilty to ExtortionRead the Press Release
COLUMBUS, Ohio – Matthew L. Dailey, age 45, of Howard, Ohio, pleaded guilty in U.S. District Court to Hobbs Act extortion under color of official right.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Division, David A. Grant, Acting Special Agent in Charge, Drug Enforcement Administration (DEA), Ohio Attorney General Mike DeWine and Mount Vernon Police Chief Roger A. Monroe, announced the plea entered into today before U.S. District Judge Algenon L. Marbley.
According to court documents, Dailey was employed as a Detective Sergeant with the Mount Vernon Police Department, who investigated general crimes, including narcotics crimes. In September of last year, Dailey asked an individual, who had served as an informant for Dailey for approximately seven years, to sell drugs for him.
Dailey provided the individual with marijuana, methamphetamine, bath salts, and ecstasy pills to sell and split the profits. A portion of the drugs were supplied from the Police Department’s property room, of which Dailey was the Evidence Custodian.
Investigators also observed Dailey meeting with a second individual, who sold Oxycodone pills to Dailey approximately five days a week for seven months.
Dailey was placed on administrative leave in September 2015. During an inventory of the property room thereafter, the Police Department discovered a kit used to teach drug awareness was missing crack and powder cocaine and ecstasy pills.
Dailey pleaded guilty on December 21, 2015. He also agreed to pay restitution to the Mount Vernon Police Department, forfeit weapons, and a ban on future employment in any law enforcement capacity.
Hobbs Act extortion under color of official right is a crime punishable by up to 20 years in prison.
U.S. Attorney Stewart commended the cooperative investigation by the FBI, DEA, Ohio Bureau of Criminal Investigation (BCI), and Mount Vernon Police Department, as well as Assistant United States Attorneys Jessica H. Kim and Douglas W. Squires, who are representing the United States in this case.
Former Deputy Pleads Guilty to Preparing Fraudulent Tax ReturnsRead the Press Release
Contact Person: T. DeWayne Pearson (803) 929-3000
Columbia, SC - United States Attorney Bill Nettles stated that former Richland County Sheriff’s Deputy Maribel Crespo, age 40, of Columbia, South Carolina, entered a guilty plea to presenting false claims to the United States in violation of Title 18, United States Code, Section 287. According to information presented during the plea hearing, Crespo prepared fraudulent tax returns for other former Richland County Sheriff’s Deputies by adding false and fictitious information to the returns. Crespo attached children’s information to the tax returns so that she could claim them as false dependents and artificially inflate the amount of the tax return. These children were typically citizen children of non-citizen Hispanics in the Columbia area. Crespo would facilitate the payment of part of the return to the parents of the dependent, some to herself and the remainder to the tax filer. Based on IRS calculations, Crespo caused $327,963 in loss to the Treasury based on her fraudulent returns.
Internal Revenue Special Agent in Charge Thomas J. Holloman III said, “IRS, Criminal Investigation takes seriously any attempts to steal taxpayer money through false claims for refunds; and certainly when those false claims are made by someone sworn to uphold the law.” Sentencing in the case has not yet been scheduled, but Crespo faces a maximum penalty of five years of imprisonment and a fine of $250,000. The case was investigated by Special Agents with the Internal Revenue Service (IRS) and the South Carolina Department of Revenue. The case was prosecuted by Assistant United States Attorney T. DeWayne Pearson of the Columbia office.
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Florida Man Convicted of Robbing Regions Bank in ColumbusRead the Press Release
Byron McCollum, age 68, of Lake Worth, Florida, was convicted, following a four-day jury trial, on March 3, 2016, for the June 2, 2015 armed robbery of Regions Bank on Veterans Parkway in Columbus, announced Acting U.S. Attorney G.F. Peterman, III. The Honorable Clay D. Land, United States District Court Judge presided over the trial in Columbus.
Testimony at trial revealed that Mr. McCollum and Michael Lee Hall entered the bank on June 2, 2015 wearing masks, hats and gloves and brandishing handguns. Mr. Hall walked into the bank’s lobby and ordered a female employee to the floor. Mr. McCollum approached the bank counter and ordered a female customer to the floor. He then displayed a handgun and demanded a bank teller open the door to allow him access behind the bank counter.
Once behind the counter, Mr. McCollum emptied currency from the cash drawers into a backpack. The pair then drove off in a red Chevrolet Camaro. Further testimony revealed that Mr. McCollum had stolen the red Chevrolet Camaro from Trophy Ford in Forsyth, Georgia prior to the bank robbery. While the pair was still in the bank parking lot, dye packs exploded inside the backpack covering the money with dye. They then abandoned the Camaro and drove from Columbus to Macon in Mr. McCollum’s gray Cadillac with Mr. Hall driving and Mr. McCollum lying in the backseat with the handgun ready in case they were stopped by law enforcement. He claimed that he would shoot the officer as he passed the back window of the vehicle should that happen.
Sentencing is scheduled for July 6, 2016 at 9:30 am in Columbus. Mr. McCollum is facing a maximum sentence of life imprisonment. In addition to the June 2015 bank robbery, Mr. McCollum committed a previous bank robbery in Columbus in 1985.
Michael Lee Hall pled guilty to bank robbery and possession of a firearm in furtherance of a crime of violence on August 3, 2015. He was sentenced by Judge Land to serve 234 months in prison on November 18, 2015 for his part in the crime. He was also ordered to pay restitution to Regions Bank. He also had a prior conviction for armed bank robbery in Columbus in 1994.
“I want to commend the officers from the local and Federal agencies who apprehended these two career bank robbers and the prosecutors whose efforts will bring those careers to an end,” stated Acting U.S. Attorney Peterman.
The case was investigated by the Federal Bureau of Investigation, the Columbus Police Department, Bibb County Sheriff’s Office, Monroe County Sheriff’s Office, Crawford County Sheriff’s Office and Pinellas County, Florida Sheriff’s Office. Assistant United States Attorney Melvin E. Hyde, Jr. and Assistant United States Attorney Crawford Seals prosecuted the case on behalf of the Government.
Inquiries regarding this case should be directed to Pamela Lightsey, United States Attorney’s Office at (478) 621-2603.
First of Seven Defendants Who Operated Illegal Online Pharmacy Sentenced to PrisonRead the Press Release
A registered nurse from Florida is the first person to be sentenced to prison in connection with the illegal operation of an online pharmacy that distributed narcotics across the country, announced U.S. Attorney Annette L. Hayes. ALI LOVINS, 44, of Cooper City, Florida is a registered nurse and was the office manager for Discount Pharmacy. Today LOVINS was sentenced to three years in prison, three years of supervised release, 200 hours of community service, and will forfeit $313,360 in drug proceeds. LOVINS pleaded guilty in April 2015 to four felony counts: conspiracy to distribute controlled substances by means of the internet; conspiracy to distribute controlled substances; conspiracy to launder money; and conspiracy to introduce misbranded drugs into interstate commerce. At the sentencing hearing U.S. District Judge Richard A. Jones noted LOVINS was part of a conspiracy that distributed more than a million tablets of narcotic drugs, but noted that unlike a street drug dealer “you don’t have to be in the dark alleys… you don’t have to look in the sunken eyes of an addict… and there was no danger of the drug deal going bad.” Judge Jones noted that prescription drug addiction contributes to the “epidemic of heroin abuse in this community.”
“As a registered nurse this defendant played a key role in the scheme,” said U.S. Attorney Annette L. Hayes. “She lied about the online business in order to keep the drugs flowing. As a nurse she knew the drugs she was selling were feeding addictions, destroying families and contributing to the opioid epidemic we are dealing with today.”
The internet pharmacy distributed drugs to some 200 customers in Washington State between 2009 and 2012. The pharmacy shipped hundreds of thousands of pills of hydrocodone, phentermine, alprazolam (Xanax) and codeine (Tylenol 4) to people across the country who did not have valid prescriptions for the narcotics. The conspiracy brought in more than $9 million in revenue from the sale of pills during the three year scheme. The pharmacy operated four internet sites through which they solicited customers and allowed customers in Washington State to order drugs. According to the indictment, the conspiracy would continue to refill prescriptions even if no valid prescription existed. In some instances the conspirators simply looked for a physician in the same geographic area as the customer, with a similar sounding name and filled the prescription using the physician’s DEA number without the physician’s knowledge. The pharmacy charged as much as ten times the usual price for the medications.
The conspirators laundered the proceeds of their sales through a brick-and-mortar pharmacy in Florida called Discount Pharmacy of Pines. In June 2012, the DEA seized the conspiracy’s websites, computers, and drug inventory.
“This individual blatantly abused her professional status as a registered nurse by facilitating the fraudulent and reckless prescription of highly addictive pharmaceuticals,” said DEA Special Agent in Charge Keith Weis.
All but one of the defendants who were indicted in May 2014 have pleaded guilty and are awaiting sentencing:
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The originator of the scheme, JUAN GALLINAL, 48, of Pembroke Pines, Florida is a former police officer from Virginia.He is scheduled for sentencing in October 2016.
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JORDAN TRUXELL, 26, of Davie, Florida served as the registered agent for Discount Pharmacy dba frontierpharmacies.com. He is scheduled for sentencing in May 6, 2016.
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THOMAS BROOKE, 54, of Cooper City, Florida was the bookkeeper for Discount Pharmacy. He is scheduled for sentencing on March 18, 2016.
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CRAIG GREER, 43, of Hollywood, Florida, a former police officer, worked to promote the internet pharmacy scheme. He is scheduled for sentencing on April 8, 2016.
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KEVIN KOGAN, 48, of Cedar Park, Texas, set up the websites and servers for the online pharmacy, and attempted to hide the conspiracies databases from investigators. He is scheduled for sentencing April 8, 2016.
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JERRY DELMAN, 83, of Miami, Florida, a pharmacist who ostensibly oversaw the prescriptions going out the door to customers is being evaluated for a medical condition that could impact his ability to participate in a trial.
This was an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation, providing supplemental federal funding to the federal and state agencies involved. The case was investigated by the Portland Tactical Diversion Squad which is comprised of the Drug Enforcement Administration (DEA) and the Portland Police Bureau. Substantial investigative assistance was provided by the Food and Drug and Administration (FDA) – Florida, and DEA Miami Field Division.
The case is being prosecuted by Assistant United States Attorneys Mike Lang, Francis Franze-Nakamura and Brian Werner.
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Final Defendant in Wentzville Pawn Store Burglarly SentencedRead the Press Release
St. Louis, MO – The final defendant involved in the October 16, 2014, theft of firearms from Allstar Pawn in Wentzville, Missouri, was sentenced earlier today. Eugene Davis, St. Louis City, was sentenced to 87 months in prison by United States District Judge Catherine D. Perry. Co-defendants Keenan Thomas and Brandon Foster were sentenced to 188 months and 144 months, respectively last fall.
According to statements made in court, Brandon Foster, Keenan Thomas and Eugene Davis broke into Allstar Pawn at 4:15 a.m. October 16th and stole 33 firearms -- 27 handguns and 6 rifles. On October 17, 2014, ATF attempted to arrest Foster and Thomas using three vehicles. Rather than backing out, Thomas drove forward on the grass, turning right in an attempt to elude the agents. He struck one of the ATF vehicles and then proceeded to back up almost striking an agent. After one shot was fired by an agent, Thomas stopped his car. Upon their arrest, agents recovered a Springfield Armory 9mm pistol equipped with an extended 33-round magazine on the floorboard directly under Foster. Foster admits the theft and possession of the 33 firearms from All Star and the purchasing of the ammunition and magazine from Cabela’s.
This was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives. Assistant United States Attorney Tom Mehan handled the case for the U.S. Attorney’s Office.
Federal, State and Local Law Enforcement Agencies Announce Takedown of Marijuana and Cocaine DistributionRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, A.D. Wright, Special Agent in Charge, Drug Enforcement Administration (DEA), Miami Field Office, and Ric Bradshaw, Sheriff, Palm Beach County Sheriff’s Office, (PBSO) announce the filing of federal charges against 9 defendants for their alleged participation in conspiracies to distribute controlled substances, specifically marijuana and cocaine, in and around Palm Beach County. The defendants have been charged in a single indictment in the matter of United States v. Herbert Grant, et. al., 16-CR-80030-Marra.
The federal indictment charges Herbert Grant, a/k/a “Earl Fleming,” a/k/a “Devon Breen,” a/k/a/ “Robert Breen,” a/k/a “Earl Flinn,” a/k/a “Dwayne,” 36, of Boynton Beach, Ricardo Simpson, a/k/a “Radio,” a/k/a “Ricky,” a/k/a “Tippa,” 39, of Boynton Beach, Gavin McLaren, 32, of West Palm Beach, Marvin Belton, a/k/a “Trinni,” a/k/a “Damian Henry,” 45, of Los Angeles, California, and Rohando Morris, a/k/a “Tampa Man,” 36, of Bradenton, for their alleged participation in a marijuana distribution conspiracy. The indictment also charges Grant, McLaren, Ricardo Mills, a/k/a “Tuggy,” 35, of Lauderhill, Lorenzo Walker, 34, of Royal Palm Beach, Erick Morgan, a/k/a “E,” 37, Riviera Beach, and Sheldon Ralph Turner, 34, of West Palm Beach for their alleged participation in a cocaine distribution conspiracy.
The indictment alleges that Grant, Simpson, McLaren, Belton, and Morris conspired to distribute marijuana from as early as July 2014 and continuing to March 2015, in Palm Beach County, in the Southern District of Florida, and other locations, and that Grant, McLaren, Mills, Walker, Morgan, and Turner conspired to distribute cocaine from as early as January of 2015 and continuing to April 28, 2015, in Palm Beach County and other locations, both conspiracies were committed in violation of Title 21, United States Code, Sections 841(a)(1) and 846.
In addition to the conspiracy charges, a number of defendants were also indicted for possession with intent to distribute marijuana, in various amounts, up to 100 kilograms or more, and cocaine, in various amounts, up to five hundred grams or more, in violation of Title 21, United States Code, Section 841(a)(1).
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Herbert Grant was charged with possession with intent to distribute less than fifty kilograms of marijuana on October 25, December 8, and December 8-10 of 2014, and 50 kilograms or more of marijuana on December 7, 2014. Grant was also charged with possession with intent to distribute 500 grams or more of cocaine on February 25, 2015, and less than 500 grams of cocaine on March 3, 2015 and April 28, 2015.
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Rohando Morris was charged with possession with intent to distribute 50 kilograms or more of marijuana on December 7, 2014.
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Ricardo Simpson was charged with possession with intent to distribute 50 kilograms or more of marijuana on December 7, 2014, and less than 50 kilograms of marijuana on December 8, 2014.
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Gavin McLaren was charged with attempted possession with intent to distribute 50 kilograms or more of marijuana on December 7, 2015. McLaren was also charged with possession with intent to distribute 500 grams or more of cocaine on February 25, 2015.
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Marvin Belton was charged with possession with intent to distribute marijuana from December 8, 2014 through December 10, 2014.
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Sheldon Ralph Turner was charged with possession with intent to distribute 500 grams or more of cocaine on February 25, 2015.
During the course of the investigation, law enforcement seized a significant amount of marijuana and cocaine.
This case was the result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies. The OCDETF mission is to identify, investigate, and prosecute high level members of drug trafficking enterprises, bringing together the combined expertise and unique abilities of federal, state and local law enforcement.
The federal indictment is being prosecuted by Assistant U.S. Attorney Brandy Brentari Galler.
If convicted in federal court, the defendants face the following possible statutory sentences: a mandatory minimum of five years and up to forty years in prison for the conspiracy to distribute more than 100 kilograms of marijuana and/or 500 grams or more of cocaine; twenty years in prison for the conspiracy to distribute and/or possession with intent to distribute 50 kilograms or more of marijuana and/or less than 500 grams of cocaine; and up to five years in prison for the conspiracy to distribute and/or possession with intent to distribute less than 50 kilograms of marijuana.
Mr. Ferrer commended the collaborative efforts of the OCDETF law enforcement agencies that assisted with this multi-faceted investigation, including the DEA, Palm Beach County Sheriff’s Office Narcotics Task Force and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI).
An indictment is only an accusation and a defendant is presumed innocent unless and until proven guilty.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov
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Federal Jury Convicts Dallas Anesthesiologist on Health Care Fraud Offenses Involving Approximately $10 Million in Fraudulent BillingsRead the Press Release
DALLAS — Following a four-day trial before U.S. District Judge Reed C. O’Connor and approximately three hours of deliberation, a federal jury has convicted Dr. Richard Ferdinand Toussaint, Jr., a licensed anesthesiologist, on all counts of a superseding indictment charging seven counts of health care fraud, announced U.S. Attorney John Parker of the Northern District of Texas.
Toussaint faces a maximum statutory penalty of 10 years in federal prison and a $250,000 fine on each of the seven counts; a sentencing date was not set. Restitution is also mandatory under the law. In addition, the indictment includes a forfeiture allegation that would require Toussaint to forfeit any property, real or personal, derived from proceeds traceable to the offense.
Toussaint, 58, provided anesthesia services personally and through a company he founded, Ascendant Anesthesia. From approximately 2009-2010, Toussaint practiced medicine at several Dallas hospitals, including Forest Park Medical Center located on North Central Expressway and Doctors Hospital at White Rock Lake, located on North Buckner Boulevard. Toussaint founded and held a substantial ownership interest in Forest Park Medical Center.
The government presented evidence that during this time, Toussaint ran a scheme to defraud Blue Cross Blue Shield of Texas (BCBS), United Healthcare (UHC), the Federal Employees Health Benefits Program (FEHBP), Aetna, Cigna, Humana and others by submitting, or causing to be submitted, false and fraudulent claims for personally performing medical direction of anesthesia services for certified registered nurse anesthetists (CRNAs). Toussaint falsely represented he was “present for” these services when: 1) he was under anesthesia undergoing surgery himself; 2) he was flying on his private jet; 3) he was in another state; and 4) he was at another hospital several miles away. For example, Toussaint submitted or caused to be submitted several claims representing he was present for and medically directing six patients at two different hospitals and was medically directing two patients while under anesthesia himself.
In addition, the government presented evidence that Toussaint also inflated the amount of time the procedures took and pre-signed patients’ medical records representing the services were provided before the procedures even took place. In addition to personally creating false medical records and inflating anesthesia procedure time, Toussaint directed others to do the same, representing he was present for procedures when he knew he was not.
As part of his approximate 18-month-long fraud scheme, according to the government, Toussaint fraudulently billed health care benefit programs approximately $10 million.
The case was investigated by the FBI, the U.S. Department of Labor OIG, the U.S. Department of Labor Employee Benefits Security Administration, the U.S. Postal Service OIG, the U.S. Department of Defense, OIG, Defense Criminal Investigative Service, the U.S. Office of Personnel Management OIG, the U.S. Department of Health and Human Services, the Food and Drug Administration, and Internal Revenue Service Criminal Investigation Unit. Assistant U.S. Attorneys Andrew Wirmani and Kate Pfeifle prosecuted the case. Assistant U.S. Attorney Mark Tindall is handling the forfeiture issues.
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El Paso Man Sentenced to 20 Years in Federal Prison for Receipt and Distribution of Child PornographyRead the Press Release
In El Paso today, 35-year-old David Aaron Diaz was sentenced to 20 years in federal prison for receipt and distribution of child pornography announced United States Attorney Richard L. Durbin, Jr., and Homeland Security Investigations (HSI) Special Agent in Charge Waldemar Rodriguez, El Paso Division.
In addition to the prison term, Senior United States District Judge David Briones ordered that Diaz be placed on supervised release for ten years after completing his prison term.
On September 15, 2015, Diaz pleaded guilty to one count of receipt and distribution of child pornography. By pleading guilty, Diaz admitted that he received and was in possession of pictures containing images of the sexual exploitation of children. Diaz had over 130,000 files containing child pornography in his possession.
Diaz has remained in federal custody since his arrest by HSI agents on April 10, 2015.
"This sentence serves as a reminder of the gravity of this crime," said Waldemar Rodriguez, Special Agent in Charge of HSI - El Paso. "It’s also a testament to the dedicated HSI special agents who aggressively investigate these pedophiles, bring them out of the shadows, and ensure they receive the punishment they deserve.”
This case was investigated by the Immigration & Customs Enforcement (ICE) Homeland Security Investigations (HSI). Assistant U.S. Attorney Ian Hanna prosecuted this case on behalf of the government.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Drug Trafficker Sentenced to 15 Years PrisonRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Kenneth Harper, a/k/a Frenchy, a/k/a Pudge, 34, of Rochester, NY, who was convicted of conspiracy to possess with intent to distribute 28 grams or more of crack cocaine, and possession of firearms in furtherance of a drug trafficking crime, was sentenced to 15 years prison by Chief U.S. District Judge Frank P. Geraci, Jr.
Assistant U.S. Attorney Robert A. Marangola, who is handling the case, stated that Harper was identified during a long term wiretap investigation targeting a Rochester-based drug-trafficking organization which obtained kilogram quantities cocaine from Brooklyn, NY. The cocaine was transported to Rochester where it was processed, re-packaged, and distributed in various quantities of both powder and crack cocaine through multiple distributors in the Greater Rochester area, including Harper.
Harper was arrested February 9, 2015 at 418 Lyell Avenue with Robert Wilson, a/k/a Bose, during the execution of a search warrant at that location. Officers also executed a search warrant at 295 Smith Street, another location used by Harper to traffic cocaine. Between the two locations, officers seized 29 bags of crack cocaine packaged for street sale, marijuana, a stolen Smith & Wesson, .357 caliber handgun loaded with five rounds of live ammunition, over $3,000 in U.S. currency, multiple cell phones, and paraphernalia for the packaging, processing, and distribution of cocaine such as beakers, digital scales, plate, strainer, sandwich bags, and baking soda.
On February 9 and 10, 2015, officers executed numerous additional search warrants in Rochester and in Brooklyn, and arrested Edward Mighty, Seymour Brown, Andre Taylor, a/k/a Stamma, Ricardo Bailey, a/k/a Diji, Desmond Bice, a/k/a Dez, and Christopher Samuels, a/k/a Cutty, all of Rochester, and Winifredo Gonzales, of Brooklyn. Desmond Bice is the only defendant who has not been convicted and still has charges pending. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The sentencing is the culmination of an investigation by the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Division, the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Delano A. Reid, New York Field Division, the Federal Bureau of Investigation, under the direction of Special Agent in Charge Adam S. Cohen, the New York State Police, under the direction of Major Craig Hanesworth, the Internal Revenue Service, Criminal Investigation Division, under the direction of Shantelle P. Kitchen, Special Agent in Charge, New York Field Office, the Rochester Police Department, under the direction of Chief Michael Ciminelli, and the Monroe County District Attorney's Office, under the direction of Sandra Doorley.
Doctor Who Falsely Diagnosed Hundreds of Patients as Part of a Medicare Fraud Scheme Pleads GuiltyRead the Press Release
Dr. Isaac Kojo Anakwah Thompson, 57, of Delray Beach, pled guilty to one count of health care fraud.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Assistant Attorney General William J. Baer, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Shimon R. Richmond, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), made the announcement.
“The Medicare system relies on our nation’s doctors to diagnose and treat our Medicare beneficiaries,” stated U.S. Attorney Ferrer. “When doctors intentionally misdiagnose their patients for personal gain, they betray the trust of the Medicare system and the patients themselves. This case demonstrates our commitment to the investigation and prosecution of Medicare fraud, in all its varieties and against all groups of offenders.”
“Instead of using the Medicare Advantage program for its intended purpose, Isaac Kojo Anakwah Thompson, a medical doctor, sought to enrich himself by defrauding Medicare of millions of dollars through the submission of false diagnoses for hundreds of patients,” said Michael A. D’Alonzo, Assistant Special Agent in Charge, FBI Miami. “The FBI will not relent in its pursuit of Medicare fraudsters – including greedy doctors.”
“When physicians cheat Medicare by misrepresenting the medical conditions of their patients, our agents will work with our law enforcement partners to hold these individuals accountable for their deceptive schemes,” said Special Agent in Charge Shimon R. Richmond, HHS Office of Inspector General.
According to the court record, including facts admitted during the plea hearing, Dr. Thompson engaged in a scheme to defraud the Medicare Advantage program, a voluntary system which allows Medicare beneficiaries to enroll in health insurance plans sponsored by private insurance companies. For each beneficiary who chooses to enroll in a Medicare Advantage plan, Medicare pays the sponsoring insurance company a fixed, or capitated, monthly fee. Medicare does not adjust the fee based on the cost of providing medical care to the beneficiary. Instead, Medicare adjusts the fee based on the beneficiary's medical conditions. As a result, Medicare generally pays a larger capitated fee for a beneficiary with more serious medical conditions than it does for a healthier beneficiary. Medicare determines a beneficiary's medical conditions in part using diagnoses submitted by the beneficiary's Medicare Advantage plan physician.
Dr. Thompson’s fraudulent conduct involved certain Medicare Advantage plans sponsored by Humana, Inc. These Humana plans operated as health maintenance organizations (HMOs) and each enrolled beneficiary selected a primary care physician (PCP) enrolled in Humana’s network. Before seeing a specialist, the beneficiary generally needed a referral from his or her PCP. Dr. Thompson was an internist who operated a medical clinic in Delray Beach and was a PCP in Humana’s HMO network. As such, a beneficiary enrolled in a Humana HMO Medicare Advantage plan could choose Dr. Thompson as the beneficiary’s PCP. Humana paid Dr. Thompson approximately 80% of the capitated fee for each beneficiary who had selected the defendant as his or her PCP.
Between 2006 and 2010, Dr. Thompson defrauded Medicare by diagnosing 387 Medicare Advantage beneficiaries with ankylosing spondylitis, a rare chronic inflammatory disease of the spine. Dr. Thompson reported these diagnoses to Humana, which in turn reported them to Medicare. As a result, Medicare paid approximately $2.1 million in excess capitation fees, approximately 80% of which went to the defendant. All or almost all of these ankylosing spondylitis diagnoses were false because in fact, the patients did not have the condition. Because the diagnoses were false, the defendant did not have any corresponding increase in his cost to treat the patients.
Sentencing is scheduled for May 18, 2016. At sentencing, the Dr. Thompson faces a maximum possible statutory sentence of 10 years in prison.
Mr. Ferrer and Mr. Baer commended the investigative efforts of the FBI and HHS-OIG. This case is being prosecuted by Assistant U.S. Attorney Marc Osborne and Trial Attorney Paul Gallagher, United States Department of Justice, Antitrust Division.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
District Man Sentenced to 10-Year Prison Term for Shootings That Targeted Two Off-Duty Metropolitan Police OfficersRead the Press Release
WASHINGTON –Romeo T. Hayes, 29, of Washington, D.C., was sentenced today to 10 years in prison on charges stemming from the Aug. 13, 2014 shooting of Metropolitan Police Department (MPD) Detective Thurman Stallings, and the attempted shooting of MPD Officer Shaquinta Gaines, both of whom were off-duty at the time. His brother, Ronald J. Hayes, Jr., also known as “Rocky,” 21, also of Washington, D.C., was sentenced to 16 months of incarceration for related offenses. The sentences were announced by U.S. Attorney Channing D. Phillips and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Under what is known as the Alford doctrine, Romeo Hayes pled guilty on Nov. 4, 2015, in the Superior Court of the District of Columbia to eight felonies and one misdemeanor. Specifically, he pled guilty to one count of assault with intent to kill stemming from the shooting of Detective Stallings; one count of possession of a firearm during a crime of violence; one count of assault with a dangerous weapon (gun) stemming from the attempted shooting of Officer Gaines; one count of unauthorized use of a motor vehicle during or to facilitate a crime of violence; three counts of felony destruction of property; one count of fleeing from a law enforcement officer, and one count of misdemeanor destruction of property. Under an Alford plea, the defendant does not admit the allegations but agrees that the government has enough evidence to secure a conviction. His guilty plea, which was subject to the Court’s approval, called for a 10-year prison sentence. The Honorable Jennifer Anderson accepted the plea today. Following his prison term, Romeo Hayes will be placed on three years of supervised release.
Ronald Hayes, Jr., who otherwise is serving a 12-year sentence for two counts of vehicular manslaughter in Prince George’s County, Md., pled guilty to one count of tampering with physical evidence, a felony. In accepting his guilty plea and the plea agreement on which it was based, Judge Anderson sentenced Ronald. Hayes, Jr. to 16 months in prison followed by three years of supervised release, to be run concurrently with the sentence he is presently serving in Prince George’s County. Ronald Hayes, Jr., has a projected long-term release date in Maryland in 2025. If he seeks early parole in Maryland, the guilty plea and sentencing in the District of Columbia could be used to argue for his continued detention.
“The sentencing in this case holds Romeo Hayes accountable for shooting at two off-duty police officers, taking them by surprise while they were driving in their privately owned vehicles on major streets in Southeast Washington,” said U.S. Attorney Phillips. “It is fortunate that Detective Stallings, who was shot four times, was not more seriously wounded and that Officer Gaines somehow escaped injury. The sentencing also holds Ronald Hayes, Jr. accountable for his efforts to conceal his brother’s involvement in these senseless but serious and violent crimes.”
According to the government’s evidence, on Tuesday night, Aug. 12, 2014, Romeo Hayes and Ronald Hayes, Jr., together with several other individuals, were at a home in Glenarden, Md. Romeo Hayes was consuming tequila and also taking drugs known as “Mollies,” a toxic mixture of laboratory-created or synthetic chemicals that stimulates the central nervous system and causes euphoric highs similar to those created by ecstasy.
At some point, Romeo Hayes indicated that he wanted to go to a nightclub known as the Opera Ultra Lounge, in the 1400 block of I Street NW. Accordingly, in the early morning hours of Aug. 13, 2014, Romeo Hayes and another individual left the home to head to the nightclub. Romeo Hayes drove there in a red 2013 Nissan Altima that he knew recently had been stolen from a rental car agency at Ronald Reagan National Airport. Video footage from the nightclub captured Romeo Hayes and his companion entering the nightclub at about 12:50 a.m.
Video footage also captured Romeo Hayes and his companion leaving the Opera nightclub at approximately 2:24 a.m. Because Romeo Hayes had been drinking alcohol, and had consumed drugs known as “Mollies,” as well as some marijuana, the individual who was with Romeo Hayes obtained the car keys to the stolen red 2013 Nissan Altima and assumed the role as driver. Romeo Hayes sat in the front passenger seat. Romeo Hayes had a black Glock 17 9mm semi-automatic pistol with an extended magazine in the stolen red 2013 Nissan Altima.
The individual who was with Romeo Hayes started to drive back to the house in Glenarden, Md. As the individual drove outbound on Suitland Parkway in Southeast Washington, in the right lane, just before the exit for Alabama Avenue SE, at about 2:47 a.m., Romeo Hayes fired two or three gunshots from the window adjacent to the front passenger seat. The gunshots were directed at a white Nissan Maxima occupied by Officer Gaines, who was in the left lane and who was off-duty at the time and driving home. One of the bullets fired by Romeo Hayes struck the white Nissan Maxima, causing substantial damage to the car.
Thereafter, with Officer Gaines following behind, the individual who was with Romeo Hayes sped off and drove to Southern Avenue, where – in the left lane – he came to a stop light at the intersection of Southern and Pennsylvania Avenues SE. In the right lane, also at the stop light, was Detective Stallings, who was alone in a GMC Yukon Denali, and who was off-duty but on his way to work. From the front passenger seat, Romeo Hayes fired multiple gunshots at Detective Stallings, striking him with a bullet in the left forearm and inflicting significant damage to the driver-side of the GMC Yukon Denali.
Wounded, Detective Stallings rammed the red 2013 Nissan Altima in an effort to disable it and to prevent the shooter and any other occupants from escaping. When that occurred, the stolen red Nissan Altima pivoted in front of the GMC Yukon Denali. Romeo Hayes fired an additional volley of shots at Detective Stallings, striking him three additional times in the chest and shoulder area, and also damaging the windshield behind which he sat.
At the urging of Romeo Hayes, the individual who was with him managed to drive off. He turned left off of Southern Avenue onto Massachusetts Avenue. There, in the 4200 block of Massachusetts Avenue SE, just off of Southern Avenue SE, Romeo Hayes again began to shoot at the white Nissan Maxima occupied by off-duty Officer Gaines, who had been following them, who had reported the license tag number for the stolen red Nissan Altima to a 9-1-1 call-taker, and who had witnessed the collision between the Altima and the GMC Yukon Denali at the intersection of Southern and Pennsylvania Avenues SE.
After this third and last shooting, the individual who was with Romeo Hayes drove rapidly back to the house in Glenarden. He parked near that residence and ran inside, followed by Romeo Hayes. Inside the residence were Ronald Hayes, Jr., and several other individuals. The individual who was with Romeo Hayes quietly told Ronald Hayes, Jr., about the shootings, and expressed concern that Romeo Hayes fired gunshots for no apparent reason and may have killed someone. He also gave Ronald Hayes, Jr., the keys to the red 2013 Nissan Altima
Romeo Hayes gave the Glock 17 9mm pistol with the extended magazine to his brother, who quickly concealed – and later hid – the gun. Romeo Hayes and Ronald Hayes, Jr., then began to argue. Their voices were elevated and firm. Ronald Hayes, Jr., demanded to know exactly what Romeo Hayes had done, and why. For his part, Romeo Hayes demanded the car keys for the stolen red 2013 Nissan Altima. Romeo Hayes said he wanted to purchase some gasoline and “blow the car up,” to degrade and devalue it as evidence. Following several minutes of loud argument, Romeo Hayes obtained the car keys from his brother.
Romeo Hayes then left and ran back to the stolen red 2013 Nissan Altima, which had suffered significant damage on the passenger side when it was rammed by the GMC Yukon Denali driven by Detective Stallings. Romeo Hayes drove off, and soon was spotted and followed by the police. Multiple police units, including MPD officers, Prince George’s County Police Department officers, and a United States Park Police helicopter, were involved in the pursuit of the stolen red Nissan Altima. Romeo Hayes drove at a high rate of speed, and attempted to elude the police during this pursuit.
The pursuit came to an end in the 5500 block of Hunt Place NE, between 3:45 a.m. and 4 a.m., where Romeo Hayes ultimately was arrested. He has been in custody ever since. Ronald Hayes, Jr., was added as a defendant when the indictment was returned on May 12, 2015. He was arrested that same night.
In announcing the acceptance of the guilty pleas and the sentences, U.S. Attorney Phillips commended the work of the detectives of the Criminal Investigations Division Homicide Branch, crime scene officers, and the Sixth and Seventh Police Districts of the Metropolitan Police Department. He also commended the work of the FBI, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Prince George’s County Police Department, and the helicopter unit of the U.S. Park Police. As well, U.S. Attorney Phillips expressed appreciation of those who worked on the case from the U.S. Attorney’s Office, including Criminal Investigators Derek Starliper, Durand Odom, and Mark Crawford; Paralegal Specialist Debra Joyner; Investigative Analysts Shannon Alexis and Zachary McMenamin; Shawn Slade and Juanita Harris, of the Victim/Witness Assistance Unit, and Assistant U.S. Attorney Jocelyn Ballantine, Karen P. Seifert, John Marston, Lindsey Merikas, and Jessica Brooks. Finally, U.S. Attorney Phillips praised the work of Assistant U.S. Attorney Michael D. Brittin, who investigated and prosecuted the case.
Department of Justice Statement on Immigration ProceedingsRead the Press Release
Department of Justice Spokesman Kevin Lewis released the following statement on the department’s measures to increases access to counsel for individuals facing removal proceedings in immigration court:
“As the Justice Department works to safeguard American security, we are equally committed to upholding American values, including the protection of vulnerable populations.
“The Department of Justice recognizes that immigration court proceedings are more effective and efficient when individuals are represented. To that end, the department has taken a number of measures to increase access to counsel for individuals facing removal proceedings, and children in particular. For example, in 2014 the Justice Department and the Corporation for National and Community Service (CNCS) announced justice AmeriCorps, a strategic partnership, now in its second year, to enhance the effective and efficient adjudication of immigration proceedings involving certain unaccompanied children.
“The Administration continues to urge Congress to help improve the efficiency of our immigration court system by supporting needed Immigration Judge Teams and Board of Immigration Appeals attorneys, by supporting the successful Legal Orientation Program, and by supporting legal representation for unaccompanied children.
“The Assistant Chief Immigration Judge was speaking in a personal capacity when he made that statement. The assistant chief judge’s statement does not necessarily represent the views of the Department of Justice.”
Decatur County Woman Sentenced for Lucrative Mail Fraud SchemeRead the Press Release
Jackson, TN – A Decatur County woman has been sentenced to federal prison for maintaining a mail fraud scheme that defrauded a company of more than $770,000. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the sentence today.
According to information presented in court, 50-year-old Vickie McBride, of Decatur County, Tennessee, was an office manager of Buck Building Supply, Inc. The business had locations in two Tennessee counties – Decatur and Henderson.
In 2007, McBride devised a scheme to steal funds from Buck Building Supply by accepting cash payments made on customers’ accounts, showing the payments as store credits in the company’s computer accounting software. The United States Postal Service was used to accept customers’ payments. McBride used the money for personal expenses.
McBride continued her scheme until 2014, when the business’ owners discovered the fraud. Over a seven-year-plus period, McBride stole more than $770,000 from the company.
In October 2015, McBride pled guilty to one count of mail fraud before Chief U.S. District Judge J. Daniel Breen.
On Tuesday, March 1, 2016, Judge Breen sentenced McBride to 27 months incarceration. She was also ordered to pay $770,829.22 in restitution.
This case was investigated by the Tennessee Bureau of Investigation (TBI) and the United States Postal Inspectors Service.
Assistant U.S. Attorney Matthew Wilson prosecuted this case on the government’s behalf.
Debt Collection Agency Owner Indicted on 41 Charges; Accused of Bilking Thousands of Victims Out of Hundreds of Thousands of DollarsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that a federal grand jury has returned a 41 count indictment charging Alan Ceccarelli, 30, of Buffalo, NY, with wire fraud, conspiracy to commit wire fraud, aggravated identity theft, and distribution of alprazolam and buprenorphine. The charges carry a maximum penalty of 30 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney Maura O’Donnell, who is handling the case, stated that according to the indictment, Ceccarelli was the owner and managing member of a debt collection business known by multiple names including G&B Check Services, Check & Arbitration Services, Dudley & Associates, National Check Services, Regional Mediation, Regional ACH Services, Franklin & Ruggiero, and ACH Regional Debt & Recovery Services. The defendant used a variety of aliases including Steve Jantrowski, Daniel Hamilton, Scott Richmond, Seth Galbert, Matthew Pacifico, Joshua Gable, Raymond Foy, Robert Header, Kyle Thill, William Starnes, Robert Laroski, Andre Spencer, and Sean Wagoner.
The indictment further states that between January 2013 and January 2016, Ceccarelli routinely tricked and coerced thousands of victims throughout the United States into paying debts whether or not the debts were actually owed. The defendant and collectors working for him caused victims to send money in various ways including credit and debit card payments, and prepaid debit cards such as Western Union. The indictment alleges that Ceccarelli’s company collected approximately $1,022,000 during the course of the scheme. Some of the money was paid to “collectors” working for the defendant.
In order to coerce victims into paying the purported debts, “collectors” falsely told victims:
• The Company was affiliated with local government and law enforcement agencies;
• The victims had committed criminal acts, and if they did not pay the debt immediately, warrants or other process would be issued, at which point they would be arrested or summoned to court;
• The Company was a law firm or mediation firm and/or that the Company's employees were working with lawyers, a law firm, mediators, or arbitrators;
• A civil lawsuit would be filed, or was pending, against the victims for failing to pay their debts; and
• The caller was physically located in the vicinity of the victim’s home or place of business, and would be coming to the home or office imminently to serve the victim with process if the victim did not immediately make payment arrangements.
As part of the scheme, the company utilized a technique known as “spoofing” which made it appear to victims that telephone calls originated from police departments, government offices, and attorney offices located within the geographical vicinity of the victim. In addition, the defendant frequently collected debts that the company did not actually own or have the right to collect. As a result, when a victim made a payment to the company or to Ceccarelli, the payment did not satisfy any debt actually owed by the victim.Ceccarelli obtained what is known as preview lists from debt brokers. These lists are not intended by the brokers to be used to collect debts, but rather to determine whether a collection agency wants to purchase a particular debt portfolio. The defendant kept the lists and used commercial databases to find and fill in the missing data from the lists, such as social security numbers, dates of birth, telephone numbers, and other personal information.
According to the indictment, the defendant also preyed upon individuals who had filed bankruptcy in an attempt to collect on debts owed by those individuals. Ceccarelli utilized “spoofing” techniques making it appear to victims that calls were originating from the office of the victim’s bankruptcy attorney. The defendant or his collectors told victims:
• The caller was a representative of the office of the victim’s bankruptcy attorney or an associate of that attorney;
• The victim had an outstanding debt which had not been included in their bankruptcy filing;
• As a result, the victim would be subject to criminal charges and/or have a warrant issued for his or her arrest if they did not pay the debt or make arrangements to pay the debt immediately; and
• The victim could satisfy the outstanding debt by making an immediate payment in accordance with the instructions given.It is also alleged in the indictment that the defendant distributed alprazolam, a Schedule IV substance, and buprenorphine, a Schedule III substance.
The defendant was arraigned this morning before U.S. Magistrate Judge H. Kenneth Schroeder and is being detained pending a detention hearing on March 14, 2016 at 2:00 p.m.
The indictment is the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero, Internal Revenue Service, Criminal Investigation Division, under the direction of Shantelle P. Kitchen, Special Agent in Charge, and the Buffalo Police Department, under the direction of Commissioner Daniel Derenda.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Columbus Gang Member Pleads Guilty to Rico ConspiracyRead the Press Release
COLUMBUS, Ohio – Robert Wilson III, 27, of Columbus, Ohio, pleaded guilty to one count of racketeering conspiracy in connection with a case involving the organized criminal enterprise known as the Short North Posse.
As part of his plea, Wilson is taking responsibility for three previously unsolved murders. He is also admitting his involvement in a fourth murder to which already pled guilty in state court. The three previously unsolved murders include the death of Donathan Moon on April 16, 2007, Rodriccos Williams on November 3, 2007 and Tyrell Davis on April 25, 2008.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), David A. Grant, Acting Special Agent in Charge, Drug Enforcement Administration (DEA), Donald J. Sorrano, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Franklin County Prosecutor Ron O’Brien, and Columbus Police Chief Kim Jacobs, announced the guilty plea entered into today before U.S. District Judge Algenon L. Marbley.
Wilson was charged by a superseding indictment in October 2014. A total of 20 individuals were indicted in the racketeering case, with charges that include murders, attempted murders, drug trafficking, weapons offenses, extortion and robbery.
The parties involved have agreed to a sentencing range of 30 to 45 years in prison, which will be determined by the court at a sentencing hearing.
U.S. Attorney Stewart commended the two-year long investigation by federal, state and local law enforcement agencies, including the FBI, DEA, ATF, Columbus Police, Franklin County Sheriff Zach Scott’s Office, Franklin County Prosecutor Ron O’Brien’s Office, Fairfield County Prosecutor Gregg Marx, Licking County Prosecutor Kenneth Oswalt, Muskingum County Prosecutor D. Michael Haddox, Ross County Prosecutor Matthew S. Schmidt, law enforcement leaders from those counties, and officials of the Ohio Department of Rehabilitation and Correction, as well as Assistant U.S. Attorneys David DeVillers, Kevin Kelley and Brian Martinez and Special Assistant U.S. Attorney Jimmy Lowe with Franklin County Prosecutor O’Brien’s Office, who are prosecuting the case.
Colorado Tax Return Preparer Incarcerated Until He Complies with Permanent InjunctionRead the Press Release
A federal judge in Colorado has ordered a tax return preparer to be held in custody until he closes his tax preparation business. At the conclusion of a hearing today, Senior District Court Judge John L. Kane for the District of Colorado found Gerardo Herrera in contempt for violating an earlier order that permanently barred him from the tax preparation business and immediately remanded him to the U.S. Marshal’s Service.
The United States filed a complaint on Sept. 1, 2015, alleging that for at least three years, Herrera and his firm had systematically and repeatedly submitted false income tax returns by reporting extra dependents, claiming bogus deductions, and using improper tactics to understate tax liability. On Jan. 7, Judge Kane issued an order of permanent injunction against Herrera prohibiting him from preparing tax returns.
The injunction also directed Herrera to provide a list of his customers to the United States, notify his customers of the injunction and file a sworn statement attesting that he had complied within 45 days of the injunction. The United States asked the court to hold Herrera in contempt for his failure to comply with these provisions and alleged that he continued to operate two tax preparation offices and/or assist others in operating the offices. After hearing testimony from two Internal Revenue Service (IRS) witnesses who had visited Herrera’s offices, Judge Kane found Herrera in contempt and ordered that he be held in custody until he purges his contempt by, among other things, notifying all his prior customers of the permanent injunction, providing a list of his customers to the United States, surrendering his Preparer Tax Identification Number (PTIN) and posting a copy of the injunction in his place of business.
Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division thanks the revenue agents and revenue officers for their assistance in this civil case.
Return preparer fraud is one of the IRS’s Dirty Dozen Tax Scams for 2016. The IRS has some tips on their website for choosing a tax preparer and has launched a free directory of federal tax preparers. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Clinton County Man Pleads Guilty to Child Pornography OffensesRead the Press Release
Miguel Angel Vasquez Torres, 34, from Beckemeyer, Illinois, plead guilty on March 1, 2016, in the United States District Court to a three-count indictment charging him with Production of Child Pornography, Distribution of Child Pornography and Receipt of Child Pornography, Acting United States Attorney James L. Porter announced today. Vasquez Torres has been in custody since he was arrested on these charges on August 25, 2015. Sentencing has been set for June 28, 2016.
Documents filed in the U.S. District Court establish that in May 2015, the Federal Bureau of Investigation received information from the National Center for Missing and Exploited Children (NCMEC) CyberTipline regarding an individual who was uploading child pornography to a Photobucket.com cloud storage account. A search of the Photobucket account revealed that the account belonged to Miguel Angel Vasquez Torres and that it contained numerous video and image files containing child pornography. During a subsequent search of Vasquez Torres’ residence, law enforcement officers seized two cellular telephones and numerous other items of computer media.
During an interview with law enforcement officers, Vasquez Torres admitted to downloading and distributing video files containing child pornography. He also admitted that he had repeatedly sexually abused a minor over the course of several years and that he had photographed his acts of sexual abuse of the minor victim. A forensic examination of Vasquez Torres’ iPhone 5 revealed approximately 22 video files containing child pornography that he had distributed and received using an internet-based messaging system. The forensic examination of his Samsung Galaxy revealed approximately 440 images which depict Vasquez Torres’ sexual abuse of the minor victim.
Vasquez Torres faces a prison term of not less than fifteen (15) years up to life, a fine up to $250,000, and a term of supervised release of not less than five (5) years up to life for the charge of Production of Child Pornography. On the charges of Distribution and Receipt of Child Pornography, Vasquez Torres faces a term of imprisonment of not less than five (5) years up to twenty (20) years, a fine up to $250,000, and a term of supervised release of not less than five (5) years up to life on each count.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
This investigation was conducted by the Madison County Sheriff’s Department, the Federal Bureau of Investigation’s Metro East Cyber Crimes and Analysis Task Force, and the Clinton County Sheriff’s Department. The case is assigned to Assistant United States Attorney Ali Summers for prosecution.
Child Pornography Charges Result in Prison TermRead the Press Release
PHILADELPHIA – Jose Dany Zacarias-Jaramillo, 29, residing in Philadelphia, PA, was sentenced today to 108 months in prison for two counts of distribution of child pornography, two counts of receipt of child pornography, and one count of possession of child pornography. Zacarias-Jaramillo pleaded guilty to the charges on April 9, 2015. In addition to the prison term, U.S. District Court Judge Juan R. Sanchez ordered $7,000 restitution, a $500 special assessment, and 10 years of supervised release.
Between November 9, 2013, and May 21, 2014, the National Center for Missing and Exploited Children (NCMEC) sent numerous leads to Homeland Security Investigations (HSI) regarding images containing children engaging in explicit sexual conduct sent and uploaded from several email addresses that were accessed from a common IP address. That IP address was located in a restaurant where Zacarias-Jaramillo worked as a cook. HSI agents ultimately determined that the subscriber for the email addresses was Zacarias-Jaramillo, who was accessing the internet using his cell phone while at the restaurant. An evaluation of the email accounts and searches at the defendant’s home revealed more than 100,000 images and several videos of child pornography.
The case was investigated by Homeland Security Investigations and was prosecuted by Special Assistant United States Attorney Josh Davison.
Chelmsford Financial Planner Convicted of Attempted Murder-For-Hire of State TrooperRead the Press Release
BOSTON – Following a five-day trial, a federal jury in Boston convicted a financial planner of attempting to hire an individual to murder a Massachusetts State Police Trooper and another individual who were witnesses in his state trial.
Andrew S. Gordon, 53, of Chelmsford, Mass., was convicted of five counts of using the mail or the telephone with the intent that a murder-for-hire be committed. U.S. District Court Chief Judge Patti B. Saris scheduled sentencing for May 20, 2016.
In 2014, Gordon was incarcerated at the Middlesex County House of Correction awaiting trial on state charges for attempting to hire a “hit man” to kill his estranged wife. The “hit man,” was actually an undercover Massachusetts State Police Trooper. After being arrested, Gordon learned that the “ hit man” was an undercover officer and so he hatched a plot to have that officer and a second Massachusetts man, who was to be a second witness against him, killed. Gordon hired a man he believed to be a gang member living in New Hampshire to kill the two witnesses, agreeing to pay $10,000 for the Trooper and $5,000 for the other witness. Through mail and phone calls, Gordon instructed the “gang member” that both deaths should appear as accidents. In actuality, Gordon was communicating with a second undercover law enforcement officer.
The federal charges provide for a sentence of no greater than 10 years in prison, three years of supervised release and a fine of $250,000 on each count. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Daniel J. Kumor, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives Boston Field Division; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; Middlesex District Attorney Marian Ryan; and Middlesex Sheriff Peter J. Koutoujian, made the announcement today. The case was prosecuted by Assistant U.S. Attorneys David G. Tobin and Rachel Hemani of Ortiz’s Major Criminal Division.
Cheektowaga Man Arrested on Child Pornography ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney William J. Hochul, Jr. announced today that Raymond Crum, 61, of Cheektowaga, NY, were arrested and charged by criminal complaint with production, receipt and possession of child pornography. The charges carry
Assistant U.S. Attorney Aaron J. Mango, who is handling the case, stated that according to the complaint, on January 8, 2015, the Bardstown Middle School contacted the Bardstown, Kentucky Police Department regarding a student (victim 1). Following interviews with victim 1, it was determined that an adult male by the name of “Ray” had been corresponding with victim 1 through internet chats, telephone, and electronic mail in an effort to establish a Dominance and Submission relationship. Victim 1 told police that she began communicating with “Ray” in October 2014 when victim 1 was 12 years old. The communication continued until police seized her telephone and electronic tablet. Victim 1 told police they met on the internet but eventually started talking on the telephone. In June 2015, victim 1 identified Crum in a police photo array.
The defendant and victim 1 communicated primarily on the social media application Kik. Victim 1 told police Crum sent her “dirty” and “inappropriate” messages. Victim 1 eventually sent the defendant live pictures through Kik but they did not contain nudity. Victim 1 did send digital images to Crum with and without clothes on.
On August 5, 2015, officers executed a search warrant at Crum’s residence and seized multiple items including a Hewlett Packard Mini Notebook. A forensic examination of the Notebook uncovered additional child victims including a 15 year old identified as victim 2. On February 18, 2016, victim 2 told police she began communicating with the defendant on Kik in February 2015 and did so until August 2015. Victim 2 sent naked photos to Crum at his request.The defendant made an initial appearance this afternoon before U.S. Magistrate Judge H. Kenneth Schroeder and is being detained pending a detention hearing on March 9, 2016 at 10:30 a.m.
The complaint is the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero and the Buffalo Police Department, under the direction of Commissioner Daniel Derenda. Assistance was also provided by the Bardstown, Kentucky Police Department.
The fact that a defendants have been charged with a crime is merely an accusation and the defendants are presumed innocent until and unless proven guilty.
Career Identity Thief Sentenced to over 19 Years in Federal PrisonRead the Press Release
ATLANTA - Kamali Rives was sentenced to 19 years, six months in federal prison on fraud and identity theft charges. Rives and his co-conspirators ran multiple fraud and identity theft schemes that ultimately stole over $2 million.
“Rives made his living for years by victimizing hundreds of people,” said U.S. Attorney John Horn. “He used the stolen identities to open bank accounts and write checks in other people’s names, as well as taking out loans and making purchases on phony credit cards. He ultimately had no regard for the financial hardships he caused the people whose identities were stolen.”
Thomas Noyes II, U.S. Postal Inspector in Charge of the Charlotte Division stated, “The U.S. Postal Inspection Service will continue to go after those who use the U.S. Mail to defraud the American public. This case demonstrates the importance of cooperation among our law enforcement partners to pursue those individuals who insist on defrauding unwitting victims by stealing their identities and attacking their personal well-being.”
“This case illustrates the negative impact that bank fraud and identity theft have on the citizens of the United States. The sentence imposed today should be a reminder that the Secret Service, in conjunction with our law enforcement partners, will continue to arrest criminals who violate innocent victims and threaten our financial systems,” said Malcolm D. Wiley, Sr., Acting Special Agent in Charge of the United States Secret Service, Atlanta Field Office.
According to U.S. Attorney Horn, the charges and other information presented in court: Rives and co-defendant Rashon Bohannon, 34, of Lilburn, Georgia, ran multiple fraud and identity theft schemes for many years, dating back to at least 2010. Rives and Bohannon maintained hundreds of files that contained “profiles” of their victims. These profiles included names, dates of birth, Social Security numbers, bank information, credit card numbers, and credit reports. They used this information to open bank accounts, cash checks, take out loans, manufacture credit cards, and make credit purchases.
In one of the schemes, Rives and Bohannon conspired with Jimia Fannin, 36, and Ashley Posey, 31, both of Atlanta, Georgia, to steal corporate checks from Bank of America. Fannin was employed by Bank of America in its lockbox unit, where her job was to process checks that had been mailed to post office box numbers assigned to Bank of America corporate clients. As part of processing the checks, Fannin was supposed to post them as deposits to the appropriate Bank of America accounts. Instead, Fannin stole numerous checks and gave them to Rives and Bohannon.
Rives and Bohannon then recruited “runners,” including Posey, to open checking accounts at other banks in Georgia and deposit the checks. The defendants opened the accounts in the names of corporations that were similar or identical to the payee corporations on the stolen corporate checks.
Rives and Bohannon also used the information obtained from the stolen checks to access the bank accounts held by the account holders who had written the checks. The defendants called the banks and changed the customer information, including the addresses, email addresses, and phone numbers, for the customers’ existing accounts. After changing the account information, Rives and Bohannon withdrew money from the victims’ accounts for their own use.
The defendants stole over $2 million in this bank fraud scheme alone.
Rives also maintained an office in College Park, Georgia, where he conducted credit card fraud. In November 2013, officers from the College Park Police Department executed a search warrant at the office space after an individual claimed he had been held against his will there and pressured to engage in identity theft. The officers went to location, and after smelling marijuana and seeing evidence of drug and identity theft activity, obtained a search warrant. Inside, they found abundant evidence of identity theft, including hundreds of counterfeit credit cards, a credit-card-manufacturing machine, numerous files with credit card information (purchased from illicit Internet web sites), and other documents with personal identifiers.
At the sentencing, the government introduced evidence that Rives continued to engage in credit card fraud and identity theft even when he was placed in pretrial detention on the federal charges. He used fraudulent credit cards to transfer money to inmates’ commissary accounts in the detention facility. Rives then purchased commissary items and received payments from other inmates from the accounts.
Kamali Rives, 37, of Riverdale, Georgia, was sentenced by United States District Judge Thomas W. Thrash, Jr., to 19 years, six months in prison to be followed by three years of supervised release, and ordered him to pay restitution in the amount of $602,388.32. Rives was convicted on these charges on December 16, 2015 after he pleaded guilty to a 23-count indictment charging him with conspiracy, bank fraud, access device fraud, and aggravated identity theft.
Bohannon, Fannin, and Posey are scheduled to be sentenced on March 9, 2016 before Judge Thrash.
This case is being investigated by the United States Postal Inspection Service and United States Secret Service. The College Park Police Department and the Hapeville Police Department provided valuable assistance in the investigation.
Assistant United States Attorney Stephen H. McClain prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Carbondale Resident Sentenced for Armed Robbery of Duquoin Gas StationRead the Press Release
On March 3, 2016, Stanley L. Cohen, 32, of Carbondale, IL, was sentenced for his role in the May 16, 2014, armed robbery of the Shell Gas Station in DuQuoin, Acting United States Attorney for the Southern District of Illinois, James L. Porter, announced today.
Cohen, who had previously pled guilty to a two-count indictment charging Interference with Commerce by Robbery, in violation of the Hobbs Act, and Using, Carrying, and Brandishing a Firearm During a Crime of Violence, was sentenced to 130 months in federal prison and 3 years’ supervised release. Cohen was also fined $400.00. Evidence at the plea and sentencing hearings established that, on May 16, 2014, Cohen and others participated in an armed robbery of the Shell Gas Station in DuQuoin. When the cashier refused to give Cohen money, Cohen struck the cashier in the head with a firearm. The cashier required stitches for the head wound. At sentencing, the judge ordered that Cohen’s 130 month sentence be served consecutively to a nine year state sentence that Cohen is currently serving for a May 2014 Carbondale armed robbery.
The investigation was conducted by the DuQuoin Police Department, Perry County Sheriff’s Department, and Carbondale Police Department.
The case was assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
California Man Pleads Guilty to Heroin Trafficking Charge in New MexicoRead the Press Release
ALBUQUERQUE – Raul Fernandez, Jr., 29, of Simi Valley, Calif., pleaded guilty today to a heroin trafficking charge in federal court in Albuquerque, N.M., under a plea agreement with the U.S. Attorney’s Office.
Fernandez was arrested on a criminal complaint charging him with possession of heroin with intent to distribute after the DEA seized approximately two kilograms (4.4 pounds) of heroin from him during an interdiction investigation at the Amtrak Train Station in Albuquerque on Oct. 19, 2015. The heroin was concealed in a false compartment in Fernandez’s luggage. Fernandez was indicted on the same charge on Nov. 17, 2015.
During today’s proceedings, Fernandez pled guilty to a felony information charging him with possession of heroin with intent to distribute and admitted that on Oct. 19, 2015, in Bernalillo County, N.M., he was in possession of two kilograms of heroin, which was concealed in a false compartment in his luggage, while traveling through Albuquerque on the Amtrak train. Fernandez further admitted that he was to be paid $5,000 for transporting the heroin from Simi Valley to Cincinnati, Ohio.
At sentencing, Fernandez faces a maximum penalty of 20 years in federal prison followed by not less than three years of supervised release. He remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Albuquerque office of the DEA. Assistant U.S. Attorney Paul H. Spiers prosecuted the case pursuant to the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative is a collaborative effort between the U.S. Attorney’s Office and the University of New Mexico Health Sciences Center that is partnering with the Bernalillo County Opioid Accountability Initiative with the overriding goal of reducing the number of opioid-related deaths in the District of New Mexico. The HOPE Initiative comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. The law enforcement component of the HOPE Initiative 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 trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative.
Boca Raton Attorney Pleads Guilty to Tax EvasionRead the Press Release
A Boca Raton attorney pled guilty to evading the payment of approximately $1,501,724 in income tax due to the Internal Revenue Service (IRS) for calendar years 1997, 1999, 2001, 2002, and 2004 through 2007, by concealing his income, assets, and liabilities.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.
William J. Reilly, 62, pled guilty to one count of tax evasion, in violation of Title 26, United States Code, Section 7201.
According to court documents, Reilly was an attorney and member of the New York Bar who owned William J. Reilly, Esq. P.C., a law firm through which the defendant practiced securities law. The law firm operated in New York City until 1998, when Reilly moved his law practice to Boca Raton, Florida.
From 1992 through 1997, Reilly worked as the outside securities counsel for a corporation and was paid, in part, with options to purchase stock in the corporation. In 1997, Reilly exercised some of his stock options and then sold some of the shares for more than $1.6 million.
From October 1997 through January 1998, shortly after exercising his stock options, Reilly acquired significant assets, including two residences in Boca Raton, Florida, a residence in Chittenden, Vermont, and oceanfront property in Portsmouth, Rhode Island. Only one of these assets, a Boca Raton residence, was titled in Reilly’s name. On May 17, 1999, Reilly purchased a ten acre parcel of land located across the road from his Chittenden, Vermont home, and Reilly used a shell company to hold title to this land. The Portsmouth land, where Reilly began to construct a home, was also transferred to the name of a shell corporation. Reilly also purchased a 2001 Jaguar XJ8 and a 2002 Chevrolet Suburban in the name of a nominee.
From 2005 through 2010, Reilly used bank accounts for his law firm and the shell corporation to receive personal income, transfer funds into his personal accounts, and pay personal expenses directly, including his Visa credit card account, his children’s private school and college tuition, support his daughter’s equestrian business, make vehicle and mortgage payments, contribute to his son’s political campaign, and purchase more than $50,000 in tickets for sporting events and concerts. Reilly also caused clients and others who owed money to the defendant to pay monies to shell corporations controlled by Reilly or to pay Reilly’s personal expenses directly.
The defendant’s sentencing date has not yet been set. Reilly faces a maximum statutory sentence of five years in prison.
Mr. Ferrer commended the investigative efforts of IRS-CI. This case is being prosecuted by Assistant U.S. Attorneys Ellen L. Cohen and Stephanie D. Evans.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Biddeford Man Sentenced to over Four Years for Interstate Transportation for ProstitutionRead the Press Release
Contact: Julia M. Lipez
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Leo Grondin, 49, of Biddeford, Maine, was sentenced today in U.S. District Court by Chief Judge Nancy Torresen to 51 months in prison and 5 years of supervised release for transporting an individual in interstate commerce with the intent that she engage in prostitution. Grondin pleaded guilty on September 29, 2015.
Court records reveal that on July 15, 2015, Grondin drove a woman from southern Maine to Dover, New Hampshire, where the woman performed sexual services for clients for money. On July 17, 2015, law enforcement officers located an online advertisement for escort services that listed a contact phone number associated with Grondin and a location in Dover, New Hampshire. Law enforcement tracked Grondin and the woman to the Comfort Inn in Dover, where Grondin was arrested on a pending state warrant.
The defendant was subject to an enhanced sentence because Chief Judge Torresen found that he coerced the woman into the prostitution activity. Chief Judge Torresen called the defendant’s conduct “reprehensible.”
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Human Trafficking Task Force, the Federal Bureau of Investigation, and the Biddeford and Dover, New Hampshire Police Departments.
Berks County Man Charged in Government FraudRead the Press Release
PHILADELPHIA - Miguel Gutierrez, 42, of Bernville, PA, was charged today by information with three counts of wire fraud, announced United States Attorney Zane David Memeger. According to the information, Gutierrez was employed as a Claims Representative in the Social Security Field Office in Reading, PA, when he used his access to Social Security’s computer systems to redirect benefits intended for third-party individuals into his own bank account. Gutierrez allegedly received three stolen benefit payments, resulting in a loss to the government of approximately $6,166.66.
If convicted, the defendant faces a statutory maximum sentence of 60 years in prison, up to three years of supervised release, forfeiture, a possible fine, restitution of $6,166.66, and a $300 special assessment.
The case was investigated by the Social Security Administration, Office of Inspector General, and is being prosecuted by Special Assistant United States Attorney Amanda R. Reinitz.
An Information is an accusation. A defendant is presumed innocent unless and until proven guilty.