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Wednesday 2 March 2016
Samuel L. Bradbury SentencedRead the Press Release
Samuel L. Bradbury Sentenced
HAMMOND – United States Attorney for the Northern District of Indiana, David Capp, announced today that Samuel L. Bradbury, 23, of Pine Village, Indiana, was sentenced before Chief District Court Judge Philip P. Simon to 41 months incarceration, 2 years of supervised release and ordered to pay $7098.58 in restitution.
Bradbury was convicted on July 2, 2015, after a weeklong jury trial, of maliciously conveying false information.
According to the evidence presented at trial, on June 19, 2014, Bradbury posted threats on social media to kill two specific law enforcement officials and two specific judges in Tippecanoe County. He also threatened to damage the Tippecanoe County Courthouse along with police vehicles using thermite, an incendiary substance. On June 21, 2014, law enforcement executed search warrants on the house where Bradbury lived, locating the social media posting along with other relevant evidence to include materials to make thermite.
This case was the result of an investigation by the Federal Bureau of Investigation with the assistance of Tippecanoe County Law Enforcement Agencies. This trial was handled by Assistant United States Attorneys Jill Koster and Abizer Zanzi.
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Salamanca Woman Pleads Guilty to Heroin ChargeRead 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 Amber Crouse, of Salamanca, NY, pleaded guilty to conspiracy to possess with intent to distribute and to distribute 100 grams or more of heroin before U.S. District Judge Elizabeth A, Wolford. The charge carries a mandatory minimum penalty of five years in prison, a maximum of 40 years, and a $5,000,000 fine.
Assistant U.S. Attorney George C. Burgasser, who is handling the case, stated that between February 2013 and February 2015, the defendant participated in a heroin conspiracy with co-defendant Carlos Laboy. Crouse sold heroin to confidential sources including one individual who claimed that the defendant sold heroin to the individual every day for one year.
On February 5, 2015, a search warrant was executed at a residence on Gorton Street in Buffalo. Crouse was present along with Carlos Laboy. Officers recovered numerous baggies that contained heroin residue and three cellular telephones. One of the cellular telephones was a number that the confidential sources would contact to set up drug transactions.
Charges are pending against Carlos Laboy. 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 plea 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.
Sentencing is scheduled for May 31, 2016 at 2:00 p.m. before Judge Wolford.
Romanian National Pleads Guilty in Computer Hacking SchemeRead the Press Release
NEWARK, N.J. – A Romanian citizen today admitted orchestrating an international hacking scheme targeting retailers, security companies, medical offices and individuals in the United States, U.S. Attorney Paul J. Fishman announced.
Mircea-Ilie Ispasoiu, 30, of Drobeta-Turnu Severin, Romania, pleaded guilty before U.S. District Judge Kevin McNulty in Newark federal court to Count One and Count Seven of an indictment charging him with wire fraud and aggravated identity theft.
According to documents filed in this case and statements made in court:
From August 2011 through February 2014, Ispasoiu was employed as computer systems administrator at a large financial institution in Romania. Ispasoiu’s scheme involved hacking networks belonging to retailers, security companies, medical offices and individuals in order to steal user names and passwords, personal identifiers and credit and debit card data. Ispasoiu also gained access to a computer at a large security company that ran background checks on job applicants. Ispasoiu stole the applicants’ personal identifying information, including their fingerprints.
The wire fraud charge to which Ispasoiu pleaded guilty carries a maximum potential penalty of 20 years in prison. The aggravated identity theft charge carries a mandatory two-year term of imprisonment to run consecutive to any other sentence. Both charges carry a $250,000 fine, or twice the gross gain or loss from the offenses. Sentencing is set for June 29, 2016.
U.S. Attorney Fishman credited the special agents of the U.S. Secret Service, Newark Field Office, under the direction of Acting Special Agent in Charge Jeffrey Wood, with the investigation leading to the plea. U.S. Attorney Fishman also thanked the Justice Department’s Office of International Affairs in Washington, as well as the Prosecutor’s Office attached to the High Court of Cassation and Justice in Romania and its law enforcement partners, for their support.
The government is represented by Assistant U.S. Attorney Daniel Shapiro of the Computer Hacking and Intellectual Property Section of the Office’s Economic Crimes Unit.
Defense counsel: Kevin Carlucci Esq., Assistant Federal Public Defender, Newark
Rochester Man Indicted for Enticement of A MinorRead 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 a federal grand jury returned a three-count indictment charging Faycal Taouzinet, 26, of Rochester, NY, with enticement of a minor using a means and facility of interstate commerce, attempted production of child pornography and attempted receipt of child pornography. The enticement charges carry a minimum penalty of 15 years in prison, a maximum of life and a $250,000 fine.
“This case once again shows the dangers facing our young children while using technology,” said U.S. Attorney Hochul. “At the same time, it demonstrates the best defense to those threats: the active involvement of a parent or trusted adult.”
Assistant U.S. Attorney Tiffany H. Lee, who is handling the case, stated that according to the indictment, in June 2015, the mother of a 13 year old minor advised the Rochester Police Department that her child was communicating with two men. According to the mother, one of the two men, Taouzinet, was a clerk at a local corner store. Officers reviewed the minor’s phone and uncovered texts between the minor and Taouzinet to include sexually explicit chats and chats where the minor had sent sexually explicit pictures to Taouzinet.
An officer, assuming the minor’s identity, engaged in texts with Taouzinet and arranged for a meeting to occur on June 22, 2015. The defendant did not show up at the arranged time but texted later and asked to meet. Taouzinet was observed by officers later that date and confronted and arrested.
The indictment is the result of an investigation by the FBI’s Child Exploitation Task Force which includes members of the Immigration and Customs Enforcement, Homeland Security Investigations, the Rochester Police Department, the Monroe County Sheriff’s Office and the Greece Police Department.
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.
Roanoke Man Sentenced on Drug, Gun ChargesRead the Press Release
ROANOKE, VIRGINIA – United States Attorney John P. Fishwick Jr. announced today the sentencing of a Roanoke man who previously pled guilty in the United States District Court for the Western District of Virginia in Roanoke to federal drug and gun charges.
Thomas Sidney Draper, 52, of Roanoke, Va., previously pled guilty to one count of possessing with the intent to distribute 280 grams or more of cocaine base and one count of being a previously convicted felon illegally in possession of a firearm. Today in District Court, Draper was sentenced to 121 months of federal incarceration and five years of supervised release thereafter.
“The United States Attorney’s Office will continue to be vigilant in our mission to keep illegal guns and drugs off the streets of the Western District of Virginia,” United States Attorney John P. Fishwick Jr. said today.
The investigation of the case was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Charlene R. Day prosecuted the case for the United States.
Richmond City Sheriff’s Office Sued for Disability DiscriminationRead the Press Release
ALEXANDRIA, Va. – The U.S Attorney’s Office for the Eastern District of Virginia and the Justice Department filed a lawsuit today alleging that the Richmond City Sheriff’s Office fired a former deputy sheriff after failing to reassign her to a vacant position for which she was qualified, in violation of Title I of the Americans with Disabilities Act (ADA).
The employee, who had worked as a deputy for approximately 10 years, asked to be reassigned to an available civilian position after a heart condition rendered her unable to continue as a deputy. Title I of the ADA prohibits employers from discriminating against individuals on the basis of disability in various aspects of employment. These prohibitions include failing to provide reasonable accommodations, including reassignment, where such an accommodation does not pose an undue hardship to the employer.
“Employment is a vital part of life for all individuals and the ADA ensures that qualified individuals who develop disabilities are able to stay employed,” said Dana J. Boente, U.S. Attorney for the Eastern District of Virginia.
“The ADA guarantees people with disabilities the right to earn a living and advance their careers free from workplace discrimination,” said Vanita Gupta, Principal Deputy Assistant Attorney General of the Justice Department’s Civil Rights Division. “The Justice Department will continue to vigorously enforce the ADA and ensure that when employees develop disabilities that interfere with their job, employers reassign them to a different vacant position that matches their qualifications.”
Assistant U.S. Attorney Margaret Harker is working on this matter in conjunction with the Disability Rights Section of the Civil Rights Division.
Those interested in finding out more about the ADA may call the Justice Department’s toll-free ADA information line at 800-514-0301 (TDD 800-514-0383) or visit www.ada.gov
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.
Republic Man Sentenced to 15 Years for Producing Child PornRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Republic, Mo., man was sentenced in federal court today for producing child pornography.
Benjamin Michael Hopper, 23, of Republic, was sentenced by U.S. District Judge M. Douglas Harpool to 15 years in federal prison without parole. The court also sentenced Hopper to 10 years of supervised release following incarceration.
On Aug. 27, 2015, Hopper pleaded guilty to using a child, identified as “Jane Doe #1,” to produce child pornography between Jan. 21 and 25, 2015.
According to court documents, Hopper met the 14-year-old victim in an on-line chat room. She later snuck out of her home and was picked up by Hopper, who kept her at his home for several days, during which time he engaged in various sexual acts with the minor. These acts were recorded on Hopper’s iPad.
This case was prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the FBI and the Republic, Mo., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Postal employee charged with opening mail that contained OxycodoneRead the Press Release
A criminal information was filed charging an employee of the U.S. Postal Service for opening a package that contained Oxycodone, said Carole S. Rendon, Acting United States Attorney for the Northern District of Ohio.
Barbara Wright, 49, of Martin, Ohio, was charged with one count of theft of mail matter by an officer or employee.
If convicted, the defendant’s sentence will be determined by the Court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agency in this case is the U.S. Postal Service Office of the Inspector General. The case is being handled by Assistant United States Attorney Tracey B. Tangeman.
An information is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Polish Fugitive Living in Bergen County, New Jersey, Arrested by U.S. MarshalsRead the Press Release
NEWARK, N.J. – A Polish citizen living in Garfield, New Jersey, was arrested this morning by U.S. Marshals as a result of an extradition request related to his alleged involvement in a 1996 murder in Poland, U.S. Attorney Paul J. Fishman announced.
Rafal Kaldon, 38, is charged by complaint with being a fugitive from a foreign county. He appeared this afternoon before U.S. Magistrate Judge Mark Falk in Newark federal court and was detained.
According to the complaint:
Pursuant to a treaty with the United States, the government of Poland submitted a formal request through diplomatic channels for Kaldon’s extradition.
On the evening of Aug. 25, 1996, Kaldon and an accomplice allegedly entered a disco in Poland, walked up to a man, and without speaking to him, began to beat him until he collapsed to the floor. Afterwards, they continued to kick and beat him. Witnesses in the disco attempted to resuscitate the victim, but he was pronounced dead at the scene. Kaldon allegedly retrieved his passport and cash from his sister immediately after the attack and fled Poland.
U.S. Attorney Fishman credited U. S. Marshals, under the direction of U.S. Marshal Juan Mattos in Newark, with the arrest of Kaldon after being a fugitive from Poland for almost 20 years.
The government is represented by Assistant U.S. Attorney Rebecca M. Sherill of the U.S. Attorney’s Office Criminal Division in Newark.
The charge and the allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Pittsburgh Man Charged with Robbing Banks in Wilmerding and White OakRead the Press Release
PITTSBURGH - A Pittsburgh resident has been indicted by a federal grand jury on charges of violating federal bank robbery and firearms laws, United States Attorney David J. Hickton announced today.
The five-count indictment, returned on March 1, named Leonard Gibbons, 55, of Pittsburgh, Pa., as the sole defendant.
According to the indictment, on or about July 17, 2015, Gibbons stole $7,828.00 from the Compass Federal Savings Bank located at 111 Westinghouse Avenue, in Wilmerding, Pa.; and on or about Nov. 19, 2015, Gibbons used a firearm to steal $3,971.00 from the First Commonwealth Bank located at 1527 Lincoln Way, in White Oak, Pa. It is unlawful for Gibbons, who has previously been convicted of multiple felony offenses, to possess a firearm. Federal law prohibits a person convicted of a crime punishable by in excess of one year imprisonment from possessing a firearm or ammunition.
The law provides for a maximum total sentence of not less than seven years and up to life in prison, a fine of up to $250,000.00, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history of the defendant.
Assistant United States Attorney Ryan K. Hart is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the McKeesport Police Department, the North Versailles Police Department, the White Oak Police Department, and the Allegheny County Police Department conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Petaluma Cattle Owner and Slaughterhouse Employee Sentenced for Scheme to Distribute Adulterated MeatRead the Press Release
SAN FRANCISCO – Robert Singleton, owner of Petaluma-based cattle company Rancho Veal Corporation, and Eugene Corda, an employee of the now-defunct Rancho Feeding Corporation, a Petaluma slaughterhouse, were sentenced today for their roles in a scheme to distribute adulterated, misbranded, and uninspected meat, announced Acting United States Attorney Brian J. Stretch and Special Agent in Charge of the Western Region of the U.S. Department of Agriculture (USDA), Office of Inspector General, Investigations, Lori Chan.
Singleton, 79, of Petaluma, was sentenced by U.S. District Judge Charles R. Breyer to three months’ imprisonment, to be followed by one year of supervised release, conditions of which include three months of home confinement and fifty hours of community service. Singleton was charged in a one-count information on August 18, 2014, with distribution of adulterated, misbranded, and uninspected meat, in violation of the Federal Meat Inspection Act (FMIA), 21 U.S.C. §§ 610(c) & 676(a). He pleaded guilty to the information on August 22, 2014, as part of a cooperation plea agreement, admitting his participation in a scheme to distribute condemned cattle and uninspected cattle showing signs of “cancer eye.” He also admitted his participation in a separate false invoicing scheme. Singleton’s sentence was a result of the United States’ motion for downward departure based on his cooperation, pursuant to U.S.S.G. § 5K1.1. A restitution hearing is set for May 31, 2016, at 10:00 a.m., also before Judge Breyer, with a self-surrender deadline of the same date.
Corda, 65, of Petaluma, was sentenced by Judge Breyer to three years’ probation, including six months of home detention. Corda was indicted along with Rancho Feeding’s owner Jesse Amaral, 78, of Petaluma, and Rancho Feeding employee Felix Cabrera, 56, of Santa Rosa, for distribution of adulterated, misbranded, and uninspected meat, in violation of the FMIA, 21 U.S.C. §§ 610(c) & 676(a); conspiracy to commit the same, in violation of 18 U.S.C. § 371; and conspiracy to commit mail fraud, in violation of 18 U.S.C. § 1349. On October 10, 2014, Corda pleaded guilty to one count of violating the FMIA, admitting that he knowingly switched uninspected cancer eye cattle with inspected, healthy cattle as part of a scheme to circumvent USDA inspection procedures. His sentence also reflected a downward departure as a result of cooperating with the government’s investigation.
For his role in the scheme, Amaral was sentenced on February 10, 2016, to one year and one day imprisonment and two years of supervised release, one of which will be served in a residential re-entry facility.
The sentencing hearing for Cabrera is set for March 9, 2016, also before Judge Breyer.
Assistant U.S. Attorney Hartley M.K. West is prosecuting this case with the assistance of Rosario Calderon and Bridget Kilkenny. The prosecution is the result of an investigation by agents of the USDA’s Office of Inspector General, Investigations and USDA’s Food Safety Inspection Service, Office of Investigation, Enforcement and Audit, Compliance and Investigations.
Pennsylvania Priest Sentenced to 200 Months for Sexually Abusing MinorsRead the Press Release
A priest of the Diocese of Altoona-Johnstown, Pennsylvania, was sentenced today to 200 months in prison to be followed by lifetime supervised release for offenses related to his sexual abuse of two minor boys during trips to Honduras over a five-year period, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney David J. Hickton of the Western District of Pennsylvania.
Joseph D. Maurizio Jr., 70, of Central City, Pennsylvania, was convicted on Sept. 22, 2015, following an eight-day jury trial, of engaging in illicit sexual conduct in foreign places, possession of child pornography and international money laundering. Maurizio was also ordered to pay a $50,000 fine and $10,000 in restitution to each victim.
According to the evidence introduced at trial, in 2001, Maurizio created a charitable organization, then known as Honduras Interfaith Ministries (HIM), which was funded by donations from community members, including parishioners of Our Lady Queen of Angels Church in Central City. HIM became the largest donor for Pro Niño, a non-profit organization that provided shelter and rehabilitative services to poor, abandoned and at-risk children residing in a rural town near San Pedro Sula, Honduras. Between 2004 and 2009, Maurizio used HIM moneys to fund 13 separate trips between the United States and Honduras, during which he sexually abused two minor boys living at Pro Niño shelters.
Evidence presented at trial demonstrated that Maurizio used his position with HIM, Pro Niño’s largest donor, to gain unfettered access to the minors, as well as to purchase them gifts, including clothes, shoes and jewelry, in order to build the boys’ trust and to ensure their compliance during his sexual abuse. During his final trip to Honduras, Maurizio paid the boys to engage in sexual acts with him.
In addition, trial evidence showed that Maurizio kept digital media depicting the minors he sexually abused and other images of child sexual exploitation in the Our Lady Queen of Angels Church rectory.
U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and Internal Revenue Service-Criminal Investigation in Pittsburgh investigated the case. Trial Attorney Amy E. Larson of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Stephanie Haines of the Western District of Pennsylvania prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Pennsylvania Priest Sentenced to 16+ Years in Prison for Sexually Abusing MinorsRead the Press Release
PITTSBURGH – A priest of the Diocese of Altoona-Johnstown, Pennsylvania, was sentenced to 200 months in prison followed by lifetime supervised release for offenses related to his sexual abuse of two minor boys during trips to Honduras over a five-year period, announced U.S. Attorney David J. Hickton of the Western District of Pennsylvania.
U.S. District Judge Kim Gibson imposed the sentence on Joseph D. Maurizio Jr., 70, of Central City, Pennsylvania. He also ordered Maurizio to pay a $50,000 fine and $10,000 in restitution to each of the two minor victims. Maurizio was convicted on Sept. 22, 2015, following an eight-day jury trial, of engaging in illicit sexual conduct in foreign places, possession of child pornography and international money laundering.
“It is important to recognize the courage of the victims, the tenacity of the investigators and the resolve of the prosecutors to bring this child predator priest to justice,” stated U.S. Attorney Hickton. “This sentence ensures that Joseph Maurizio will never again have the opportunity to travel beyond our nation’s borders to victimize children.”
“Child sex tourism is a scourge: adults preying on the young and vulnerable to satisfy dark desires,” said David Abbate, Assistant Special Agent in Charge, ICE Homeland Security Investigations. “As an agency, HSI is committed to the difficult but necessary task of ending this scourge--despite cost, distance, and international boundaries. There can be no place for the abuse of children here or abroad.”
“IRS Criminal Investigation will diligently work with our law enforcement partners to pursue those who violate the laws of the United States,” added IRS-CI Special Agent in Charge Akeia Conner. “Our partnership with HSI in this investigation demonstrates that we will work together to address the full scope of an individual’s illegal activity, and we will follow that trail wherever it may lead us.”
According to the evidence introduced at trial, in 2001 Maurizio created a charitable organization, then known as Honduras Interfaith Ministries (HIM), which was funded by donations from community members, including parishioners of Our Lady Queen of Angels Church in Central City. HIM became the largest donor for Pro Niño, a non-profit organization that provided shelter and rehabilitative services to poor, abandoned and at-risk children residing in a rural town near San Pedro Sula, Honduras. Between 2004 and 2009, Maurizio used HIM moneys to fund 13 separate trips between the United States and Honduras, during which he sexually abused two minor boys living at Pro Niño shelters.
Evidence presented at trial demonstrated that Maurizio used his position with HIM, Pro Niño’s largest donor, to gain unfettered access to the minors, as well as to purchase them gifts, including clothes, shoes and jewelry, in order to build the boys’ trust and to ensure their compliance during his sexual abuse. During his final trip to Honduras, Maurizio paid two minor boys to engage in sexual acts with him.
In addition, trial evidence showed that Maurizio kept digital media depicting the minors he sexually abused and other images of child sexual exploitation in the Our Lady Queen of Angels Church rectory.
U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and Internal Revenue Service’s Criminal Investigation in Pittsburgh investigated the case. Assistant U.S. Attorney Stephanie Haines of the Western District of Pennsylvania and Trial Attorney Amy E. Larson of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Ozark, Greene County Men Sentenced for Conspiracy to Avoid Paying $585,000 in Federal TaxesRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that an Ozark, Mo., man and a Greene County, Mo., man were sentenced in federal court today for their roles in a conspiracy to avoid paying more than $585,000 in federal taxes.
Wesley Vernon Delport, 70, of Ozark, Mo., was sentenced by U.S. District Judge M. Douglas Harpool to three years and 10 months in federal prison without parole. The court also ordered Delport to pay a $5,000 fine and to pay $585,733 in restitution to the IRS. Co-defendant Alton Louis Vaughn, Sr., 59, of Greene County, was sentenced to three years and six months in federal prison without parole. The court also ordered Vaughn to pay $585,733 in restitution to the IRS and $3,595 restitution to one of his individual victims.
Delport and Vaughn each pleaded guilty to their roles in a conspiracy to defraud the United States by impeding the lawful government functions of the Internal Revenue Service in the ascertainment, computation, assessment, and collection of federal taxes.
Delport was the owner of Abundant Health & Wellness, a business described as a holistic health clinic, located in Springfield. Between Jan. 1, 2004, and Dec. 31, 2013, Delport received a total of approximately $4.7 million in gross receipts for Abundant Health & Wellness, which he did not report to the IRS as required by law and upon which he did not pay taxes.
Delport conspired with co-defendant Alton Louis Vaughn, Sr., 58, of Greene County, in an attempt to avoid paying taxes on approximately $4.7 million in business receipts. Vaughn, who is self-employed, derived a portion of his income from assisting in the preparation of federal income tax returns, advising taxpayers regarding their dealings with the IRS, and representing others in their dealings with the IRS. Vaughn has pleaded guilty to participating with Delport in the conspiracy.
In order to avoid paying taxes on his income, Delport purported to create an entity called The Shammah Foundation in the state of Washington on May 7, 2001. Delport described the purpose of The Shammah Foundation as “to do whatever will promote the Kingdom Of God, All Righteousness and the principles of Liberty and Justice.” Delport transferred a total of approximately $382,000 over a four-year period from Abundant Health & Wellness accounts to a bank account he controlled, held in the name The Shammah Foundation. Delport used The Shammah Foundation bank account to pay his personal expenses, without reporting those funds used for his personal expenses to the IRS as income, or paying any taxes.
Delport admitted that, on several occasions, he submitted documents to the IRS consisting of lengthy and frivolous arguments in order to impede and delay an IRS examination of his tax liability. Delport also admitted that he attempted to place his funds and assets beyond the reach of IRS collection efforts.
To impede a criminal investigation of Delport, Vaughn and Delport falsely reported to the Treasury Inspector General for Tax Administration that an IRS Revenue Officer and an IRS criminal investigator had coerced, intimidated and threatened Delport.
Delport and Vaughn also attempted to impede a federal grand jury in its investigation of Delport by refusing to comply with federal grand jury subpoenas for tax and business records, by sending correspondence to the U.S. Attorney’s Office falsely stating that an IRS Revenue Officer had personally seized and collected all of Delport’s original income documents for the years 2003 through 2009, and by Vaughn falsely testifying before the grand jury.
Delport and Vaughn admitted that they also attempted to impede a federal grand jury in its investigation by counseling an employee of Abundant Health & Wellness to refuse to testify before the grand jury, and by providing her with a written statement (which contained an inaccurate statement of the law) to read to the grand jury in lieu of complying with her legal obligation to testify.
This case was prosecuted by Assistant U.S. Attorney Steven M. Mohlhenrich. It was investigated by IRS-Criminal Investigation and the Treasury Inspector General for Tax Administration.
Ozark Man Indicted for False Tax Claims, Advertised on Craigslist for DependentsRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that an Ozark, Mo., man has been indicted by a federal grand jury for filing false income tax returns after he advertised on Craigslist to purchase identity information for children that he could claim as dependents.
Raheem L. McClain, 37, of Ozark, was charged in a three-count indictment returned under seal by a federal grand jury in Springfield, Mo., on Feb. 23, 2016. That indictment was unsealed and made public upon McClain’s arrest and initial court appearance on Tuesday, March 1, 2016.
The federal indictment alleges that McClain caused an advertisement to be posted on Craigslist on Jan. 16, 2015, stating:
“WANTED: KIDS TO CLAIM ON INCOME TAXES - $750 (SPRINGFIELD,
MO)
IF YOU HAVE SOME KIDS YOU ARENT CLAIMING, I WILL PAY YOU A
$750 EACH TO CLAIM THEM ON MY INCOME TAX. IF INTERESTED,
REPLY TO THIS AD.”
On Feb. 3, 2015, McClain allegedly caused a false federal tax return to be electronically signed and filed in his name for 2014, which listed three dependents by name, Social Security number and supposed relationship (two sons and one daughter).
On Feb. 4, 2015, McClain allegedly caused two false federal tax returns to be filed through the mail in his name for 2012 and 2013. Each of the returns listed the same three dependents, the indictment says; however, on these two returns the same individuals were listed as one son and two daughters.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Steven M. Mohlhenrich. It was investigated by IRS-Criminal Investigation.
Operator of Fraudulent Moving Company Sentenced for ConspiracyRead the Press Release
ATLANTA - Shedrick Giles and Tasheen Raphael Pickett, both of whom owned and operated moving companies, have been sentenced for their roles in fraudulently obtaining unsuspecting citizens’ household goods.
“The defendants took advantage of trusting citizens who sought help with moving to a new home,” said U.S. Attorney John Horn. “Who could conceive of movers taking all of their possessions and then simply disappearing? Others that would consider following in their footsteps and attempt such brazen thefts can expect the same outcome; prosecution.”
“The sentencing of Tasheen Raphael Pickett and Shedrick Giles for conspiring to fraudulently obtain household goods is a strong signal to those that would defraud customers seeking to transport their household goods,” said Marlies T. Gonzalez, regional Special Agent-In-Charge, U.S. Department of Transportation Office of Inspector General (DOT-OIG). “We will continue working with our prosecutorial, law enforcement and Federal Motor Carrier Safety Administration colleagues to prevent, detect and prosecute violations of Federal law and regulation designed to protect the public.”
According to U.S. Attorney Horn, the charges and other information presented in court: since at least November 2013, Pickett and Giles have been traveling the United States, picking up shipments of innocent victims’ personal property, and promising to deliver those shipments to agreed-upon locations. But instead of delivering the property, Pickett and Giles would take control of the property, keeping some of it for themselves and disposing of the rest.
After a criminal complaint was filed against Pickett in Amarillo, Texas, in July 2014, the DOT-OIG was notified. In September 2014, DOT-OIG agents searched storage units at a Public Storage Facility in East Point, Georgia, and discovered that the units were stacked full with approximately 14 individuals’ personal property—property that had been taken by Pickett months before and never delivered. Other property taken by Giles was discovered in a second Public Storage Facility in Decatur, Georgia, in January 2015. Although both Pickett and Giles have worked as movers for several years, neither is authorized to transport household goods by the Federal Motor Carrier Safety Administration (FMCSA), the federal agency tasked with providing oversight over household goods movers. Pickett, the primary perpetrator of the scheme, intended to cause over $600,000 in losses to 36 people. Giles assisted Pickett in three of the moves.
Pickett and Giles sentences are as follows:
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Shedrick Giles, 43, of Brentwood, New York, was sentenced to one year and two days in federal prison, to be followed by three years of supervised release.Giles was ordered to pay $144,007 in restitution to the victims of the crime and complete 40 hours of community service.
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Tasheen Raphael Pickett, 41, of College Park, Georgia, was sentenced on January 6, 2016, to four years in federal prison, to be followed by three years of supervised release.Pickett was ordered to pay $427,809.85 in restitution to the victims of the crime.
This case was investigated by the Department of Transportation – Office of Inspector General.
Assistant United States Attorney Samir Kaushal prosecuted the case.
More than 5,800 household goods moving companies are registered with the FMCSA. In 2014, FMCSA received more than 2,800 consumer complaints about household goods movers, down from more than 3,100 in 2013. Among the most common complaints are shipments being held hostage, loss and damaged goods, delay of shipments, unauthorized movers, and deceptive practices such as unwarranted overcharges. Consumers can report unsafe and unlawful moving companies by calling FMCSA’s nationwide complaint hotline at 1-888-368-7238 (1-888 DOT-SAFT) or by visiting the database at http://nccdb.fmcsa.dot.gov. Consumers can visit www.protectyourmove.gov to find out more about the “red flags” of moving fraud.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
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Odessa Woman Pleads Guilty to $924,000 Bank FraudRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that an Odessa, Mo., woman pleaded guilty in federal court today to a $924,000 bank fraud scheme involving her family’s used truck dealership.
Susan E. Jones, 57, of Odessa, Mo., waived her right to a grand jury and pleaded guilty before U.S. Chief Magistrate Judge Sarah W. Hays to an information that charges her with one count of bank fraud.
Jones served as the corporate secretary of Transtar Truck Sales, Inc., a used truck dealership in Bates City, Mo., that buys over-the-road trucks. Jones handled banking matters for Transtar, which was owned by her father (now deceased) and her husband.
Transtar purchased many vehicles from out-of-state dealers and then exported the trucks out of the country. Transtar financed the purchase of its trucks through a series of floor plan loans obtained from Bank of Odessa. A revolving line of credit allows a borrower to obtain financing against a specific piece of collateral, such as a vehicle.
Beginning in 2007, Jones engaged in a scheme to defraud Bank of Odessa out of $924,355 by obtaining floor plan financing on specific vehicles and later deliberately withholding the funds received from the sale of that pledged collateral. On at least 38 occasions from March 3, 2007, to May 5, 2010, Jones made false representations to Bank of Odessa concerning pledges of collateral on promissory notes and security agreements that she submitted to the bank.
When Transtar wanted to draw against the floor plan note, Jones would contact the bank with the identifying information of the vehicle(s) being used to collateralize the transaction and the amount of request based upon her valuation of the vehicle(s). Bank of Odessa required Transtar to relinquish the original vehicle titles as collateral supporting the security agreements. For years, Transtar provided the original titles, but at some point Jones told Bank of Odessa that she was unable to provide the original titles due to timing issues involved in obtaining the Missouri titles. Transtar began providing the bank with copies of the titles in lieu of the original title to facilitate the sale of the trucks. On at least 38 occasions, Jones provided Bank of Odessa with copies of vehicle titles. But unbeknownst to Bank of Odessa, and contrary to the representations made by Jones, the copies of the titles referred to vehicles that were not then owned by Transtar.
Had Bank of Odessa known that the vehicles were not owned by Transtar, the bank would not have allowed them to be used as collateral, and would not have continued to service the loan. Bank of Odessa lost a total of approximately $924,355.
An FBI analysis of Jones’ spending reveals that she was spending heavily during the time, including gambling at casinos, buying season Chiefs tickets, and spending thousands on restaurants and travel. Over a period of two and a half years, Jones and her husband conducted 82 cash withdrawals at casinos totaling $27,919; made 204 payments to restaurants and bars totaling $17,373; spent $4,693 for Chiefs season tickets in 2008 and 2009; spent $1,300 for martial arts; made $11,672 in payments to the University of Phoenix; and paid $987 to Sands of Kahana Vaction Club in Lahanna, Hawaii. By 2010, Jones and her husband had $130,000 worth of credit card debt.
Bank of Odessa had also issued loans to Transtar for its building and equipment. Bank of Odessa rolled the shortage and loan balances together to arrive at a total indebtedness of approximately $1.2 million. On Nov. 9, 2010, the $1.2 million debt was separated into two loans in the amounts of $600,000 and $610,104 and collateralized by various assets pledged by Jones, her husband and her father. The loans are considered 12-month balloon notes and are renewed annually. Jones has made approximately $307,340 in repayments on the first of the two still-outstanding loans, and no payments on the second.
Under the terms of today’s plea agreement, the government will request a sentence of one year and one day in federal prison. Jones must pay a money judgment of at least $778,943, less any payments she has made or may subsequently make to the Bank of Odessa prior to her sentencing, including $307,340 that she has already repaid.
This case is being prosecuted by Assistant U.S. Attorney Daniel M. Nelson. It was investigated by the FBI.
North Carolina Man and His Company Sentenced for Manufacturing and Selling Fake Mercedes-Benz Diagnostic SoftwareRead the Press Release
U.S. Attorney Kenneth A. Polite announced that ROBERT BECKMANN, age 54, of Durham, North Carolina, and his company, BECKMANN TECHNOLOGIES, INC. (BTI), were each sentenced today.
U.S. District Judge Kurt D. Engelhardt sentenced BECKMANN to four years of probation, with the first four months to be served on home detention, and fine $5,000 after previously pleading guilty to criminal copyright infringement. BTI was sentenced to five years of organization probation and fined $75,000 after pleading guilty to conspiracy to commit criminal copyright infringement and to violate the Digital Millennium Copyright Act.
According to court documents, BECKMANN owned BECKMANN TECHNOLOGIES, INC. a company that, among other things, sold remanufactured parts for Mercedes-Benz automobiles. Between about 2001 and July 2012, BECKMANN TECHNOLOGIES, INC., in conjunction with “Company A,” located in Harahan, Louisiana, “Company B,” located in Rancho Palos Verdes, California, and an individual in the United Kingdom, “J.C.,” produced and sold unauthorized, non-authentic versions of the Mercedes-Benz Star Diagnostic System (SDS), a hand-held computer containing proprietary, confidential software. The SDS is used by mechanics to diagnose problems with and assure the safety of Mercedes-Benz vehicles employing electronic control systems.
BECKMANN TECHNOLOGIES, INC. was responsible for creating hardware for the fake SDS units, including a “black box,” while Company A, with assistance from BECKMANN TECHNOLOGIES, INC., and others obtained, modified, and duplicated the authentic SDS software so that it would operate on ordinary laptop computers and without Mercedes-Benz’s authorization or license. After learning that Mercedes-Benz had notified J.C. that his conduct was in violation of civil and/or criminal laws, representatives of BECKMANN TECHNOLOGIES, INC., Company A, and Company B discussed a plan to have J.C. “go underground and off the radar” and continue working on making fake SDS.
The “real” SDS sold for between $8,300 and $22,000 each, while the fake SDS sold for up to $11,000, depending on market factors. In total, Company A and Company B sold at least 795 fake SDS. BECKMANN plead guilty to selling and distributing once such device; BECKMANN TECHNOLOGIES, INC. was charged with its role in the development, manufacture, and distribution of the fake SDS.
U.S. Attorney Polite praised the work of the Cyber Task Force of the FBI’s New Orleans Division in investigating this matter. Assistant U.S. Attorney Jordan Ginsberg and Senior Counsel Evan Williams of the Criminal Division’s Computer Crimes and Intellectual Property Section (CCIPS) were in charge of the prosecution.
New Orleans Man Sentenced to over 15 Years for Heroin Crime Committed in Orleans Parish PrisonRead the Press Release
U.S. Attorney Kenneth A. Polite announced that TREY MITCHELL, age 24, of New Orleans, was sentenced today for attempted distribution of heroin using a cell phone smuggled into the Orleans Parish Prison.
U.S. District Judge Kurt D. Engelhardt sentenced MITCHELL, a “career offender” under the U.S. Sentencing Guidelines, to 188 months in prison, 3 years of supervised release following his prison term, and a $100 special assessment. The judge ordered that the sentence run consecutive to the state sentences that MITCHELL is already serving for charges of home invasion, drug distribution, and firearms charges. MITCHELL is also awaiting sentencing in the “Wildside Gangsters” indictment in state court in New Orleans for charges of racketeering and conspiracy to distribute heroin.
According to court documents, MITCHELL had been involved in a conspiracy to distribute heroin in New Orleans since January 2011. In July 2012 and again in August 2012, MITCHELL was arrested for drug trafficking and firearms charges, only to be bonded out of jail to commit additional crimes. In November 2012, MITCHELL committed a home invasion and was again arrested and held in the Orleans Parish Prison, where he remained until his federal indictment in this case. His brother and co-defendant in this case, TERENCE TAYLOR, then obtained MITCHELL’s ‘dope’ phone and continued his heroin enterprise from outside jail. In September 2013, after pleading guilty to his state charges, MITCHELL used a smuggled cell phone to call TAYLOR from the parish prison to direct him to give heroin to another inmate who was being released from prison and needed to “get back on his feet.” These calls were intercepted on a court-authorized wiretap of TAYLOR’s cell phones. In October 2015, Judge Engelhardt sentenced TAYLOR to a prison term of 324 months (27 years) for conspiracy to distribute heroin and distribution of heroin resulting in an overdose death.
U.S. Attorney Polite praised the work of the DEA New Orleans Police Department High-Intensity Drug Trafficking Area group, the FBI, and the ATF, with the assistance of the St. Tammany Sheriff’s Office, the St. Bernard Sheriff’s Office, and the Louisiana State Police in investigating this matter. Assistant United States Attorney Michael B. Redmann is in charge of the prosecution.
Missouri Man Sentenced for Firearm OffenseRead the Press Release
James L. Porter, Acting United States Attorney for the Southern District of Illinois, announced today that Michael C. Neece, 71, of Ozark, Missouri, was sentenced last week in federal district court in East St. Louis for the crime of Possession of a Firearm by a Convicted Felon.
Neece was sentenced to 12 months on probation, a $250 fine, and a $100 special assessment, following his plea of guilty, on October 30, 2015. The charges relate to an incident that occurred on January 12, 2013, in Dupo, Illinois, when an individual reported Neece to be in possession of a firearm. Neece was previously convicted of Conspiracy to Import Switchblade Knives on March 27, 2000, in the Eastern District of Missouri.
The case was investigated by members of the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case was prosecuted by Assistant United States Attorney Stephen B. Clark.
Minnesota Resident Pleads Guilty to Threatening Two Clinics that Provide Reproductive Health ServicesRead the Press Release
Principal Deputy Assistant Attorney General Vanita Gupta of the Justice Department’s Civil Rights Division and U.S. Attorney Andrew M. Luger of the District of Minnesota announced today that Michael John Harris, 33, pleaded guilty to making telephonic threats to two clinics that provide reproductive health services in Minneapolis.
In connection with his plea, Harris admitted that on May 12, 2014, he made telephonic threats to two different health clinics in Minneapolis that provide reproductive health services. In his call to the first clinic, Harris threatened to kill the person on the other end of the call using his bare hands, and then cut the person’s head off with a band saw. In his call to the second clinic, Harris said he would kill the person on the other end of the call and everyone else who worked there, and that he was going to travel to the clinic and shoot everyone present. Harris admitted that he made these threats to intimidate people from obtaining or providing reproductive health services.
“Harris’s violent threats against clinics that provide reproductive health services constitute a serious attack on an important right guaranteed by law,” said Principal Deputy Assistant Attorney General Gupta. “The Justice Department will continue to vigorously prosecute those who seek to interfere with access to reproductive health care.”
“Our Constitution allows for a healthy debate on important issues of public concern,” said U.S. Attorney Luger. “Threatening the lives of health care workers is not a legitimate means of voicing dissent. Today’s guilty plea serves as an important reminder that our disagreements cannot devolve into violent threats.”
Harris faces a maximum penalty of one year in prison for each of the two counts.
This case is being investigated by the FBI, and is being prosecuted by Trial Attorney Risa Berkower of the Civil Rights Division’s Criminal Section and Assistant U.S. Attorney Manda M. Sertich of the District of Minnesota.
Minnesota Resident Pleads Guilty to Threatening Two Clinics That Provide Reproductive Health ServicesRead the Press Release
WASHINGTON – Principal Deputy Assistant Attorney General Vanita Gupta of the Justice Department’s Civil Rights Division and U.S. Attorney Andrew M. Luger of the District of Minnesota announced today that Michael John Harris, 33, pleaded guilty to making telephonic threats to two clinics that provide reproductive health services in Minneapolis.
In connection with his plea, Harris admitted that on May 12, 2014, he made telephonic threats to two different health clinics in Minneapolis that provide reproductive health services. In his call to the first clinic, Harris threatened to kill the person on the other end of the call using his bare hands, and then cut the person’s head off with a band saw. In his call to the second clinic, Harris said he would kill the person on the other end of the call and everyone else who worked there, and that he was going to travel to the clinic and shoot everyone present. Harris admitted that he made these threats to intimidate people from obtaining or providing reproductive health services.
“Harris’s violent threats against clinics that provide reproductive health services constitute a serious attack on an important right guaranteed by law,” said Principal Deputy Assistant Attorney General Gupta. “The Justice Department will continue to vigorously prosecute those who seek to interfere with access to reproductive health care.”
“Our Constitution allows for a healthy debate on important issues of public concern,” said U.S. Attorney Luger. “Threatening the lives of health care workers is not a legitimate means of voicing dissent. Today’s guilty plea serves as an important reminder that our disagreements cannot devolve into violent threats.”
Harris faces a maximum penalty of one year in prison for each of the two counts.
This case is being investigated by the FBI, and is being prosecuted by Trial Attorney Risa Berkower of the Civil Rights Division’s Criminal Section and Assistant U.S. Attorney Manda M. Sertich of the District of Minnesota.
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Milwaukee Man Pleads Guilty to Filing False Income Tax Returns and Identity TheftRead the Press Release
Gregory J. Haanstad, the United States Attorney for the Eastern District of Wisconsin announced that James Ainsworth (age 39) of Milwaukee pleaded guilty in federal court to filing false federal income tax returns and aggravated identity theft in connection with the filing of those returns.
This prosecution stems from an investigation by the Internal Revenue Service Criminal Division that identified approximately 30 tax returns that fraudulently sought tax refunds based on false wages, tax information, and business losses. Many of the returns provided false wage and tax information purporting to be from employment at a defunct business Ainsworth formed with his brother. Other returns provided false wage and tax information from legitimate employers, who had never employed the indicated taxpayers. The fraudulent refunds sought by the returns were frequently directed to bank accounts controlled by Ainsworth or his mother. Based on the false returns filed by Ainsworth, the IRS issued more than $95,000 in tax refunds.
The identity theft charge is based on a false tax return filed by Ainsworth in the name of a woman who had applied to rent an apartment Ainsworth owned. As part of the application process, the identity theft victim provided Ainsworth with her name, address, and social security number. Unbeknownst to her, Ainsworth used this information, along with false income and tax information, to file a false refund claim in her name. The return indicated that the refund should be directly deposited to a bank account maintained in the name of Ainsworth’s mother and over which he had access and control.
Based on his guilty pleas, Ainsworth faces a minimum of two years in prison and a maximum of up to seven years in prison, a fine of up to $250,000, and up to three years of supervised release. In addition, Ainsworth must pay restitution to the IRS in the amount of $95,775. Ainsworth is scheduled to be sentenced on June 16, 2016.
This matter was investigated by the Internal Revenue Service-Criminal Investigations. The case was prosecuted by Assistant United States Attorney Elizabeth Monfils.
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Middleburgh Man Pleads Guilty to Receipt of Child PornographyRead the Press Release
ALBANY, NEW YORK – Edward Werner, age 51 of Middleburgh, New York, pled guilty today to receiving child pornography.
The announcement was made by United States Attorney Richard S. Hartunian and Andrew W. Vale, Special Agent in Charge of the Albany Division of the Federal Bureau of Investigation.
Werner faces at least 5 years and up to 20 years in prison, and a term of post-imprisonment supervised release of between 5 years and life, when he is sentenced on July 6, 2016 by U.S. District Judge Mae A. D’Agostino. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors. Werner will also be required to register as a sex offender upon his release from prison.
This case was investigated by the FBI and the Colonie Police Department, and is being prosecuted by Assistant U.S. Attorney Solomon B. Shinerock.
This case is prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, 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 identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Mexican Man Charged with Conspiring to Import Liquid MethamphetamineRead 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 Alfredo Alonso Ramirez, 24, a citizen of Mexico, was arrested and charged by criminal complaint with conspiring to import liquid methamphetamine. The charge carries a mandatory minimum sentence of 10 years in prison, a maximum of life and a $10,000,000 fine.
Assistant U.S. Attorney Edward H. White, who is handling the case, stated that according to the complaint, on February 18, 2016, Customs and Border Protection officers searched a Federal Express overnight international mail package sent from Mexico to Alfredo Alonso Ramirez at 5461 McLernon Road in East Bethany, NY. Officers discovered two bottles containing approximately 851.6 grams (approximately 30 ounces) of a liquid substance that field tested positive for methamphetamine.
On February 22, 2016, an undercover law enforcement officer delivered a package containing sham liquid methamphetamine to the listed address. The defendant accepted the package at the residence. Officers then executed a search warrant at the residence and the package with the two bottles of sham liquid methamphetamine was found opened on the first floor of the house. Ramirez was later arrested.
The defendant made an initial appearance before U.S. Magistrate Judge Jeremiah J. McCarthy and is being detained.
The criminal complaint is the culmination of an investigation on the part of Special Agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero and Customs and Border Protection, under the direction of Rose Hilmey, Acting Director of Field Operations.
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.
Mexican Citizen Illegal Re-Entry and Failure to Register as A Sex Offender 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 Jose Maria Agustin, 34, a native and citizen of Mexico, most recently of Elba, NY, was arrested and charged by criminal complaint with re-entry after deportation subsequent to an aggravated felony conviction and failure to register as a sex offender. The charges carry a maximum penalty of 20 years in prison.
Special Assistant U.S. Attorney Brian J. Counihan, who is handling the case, stated that according to the complaint, in 2009 the defendant was convicted in California of two counts of Forcible Rape and one count of Assault with a Deadly and sentenced to five years in prison. After serving that sentence, Agustin was removed from the United States and sent back to Mexico. As a result of the rape conviction, the defendant was permanently barred from returning to the United States.
In December 2015, Agustin was found working in the United States without permission to re-enter the United States and without employment authorization. The defendant was required to register as a sex offender in California and had not registered as a sex offender in New York State.
Agustin made an initial appearance this afternoon before U.S. Magistrate Judge H. Kenneth Schroeder, Jr. and is being detained.
The criminal complaint is the result of an investigation by Immigration and Customs Enforcement, Enforcement and Removal Operations, under the direction Michael Phillips, Buffalo Field Office Director, and the Genesee County Sheriff’s Office, under the direction of Sheriff Gary Maha.
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.
Methamphetamine Traffickers SentencedRead the Press Release
ABILENE, Texas — An Abilene, Texas, man, Ruben Soliz, 24, was sentenced today by Chief U.S. District Judge Jorge A. Solis to 60 months in federal prison, following his guilty plea in December 2015 to one count of possession with intent to distribute five grams or more of methamphetamine, announced U.S. Attorney John Parker of the Northern District of Texas.
Three co-defendants also charged in the case, Abilene residents, Andrew Dean Cruz, 30, and Roberto Carlos Villarreal, 31, and San Angelo, Texas, resident, Richard Louis Martinez, 27, each pleaded guilty last year to one count of conspiracy to possess with the intent to distribute 50 grams or more of methamphetamine. Cruz and Villarreal were each sentenced to 132 months in federal prison, and Martinez was sentenced to 120 months.
According to documents filed in the case, from approximately November 1, 2013 to August 18, 2014, Cruz, Villarreal and Martinez were involved in a conspiracy to distribute methamphetamine in the Abilene area. At times, Cruz distributed the methamphetamine from his residence that was located within 1000 feet of Ortiz Elementary School in Abilene.
Soliz admitted, according to filed documents, that in April 2014, he sold one ounce of methamphetamine to another individual.
U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Texas Department of Public Safety – Criminal Investigations Division investigated the case. Assistant U.S. Attorney Juanita Fielden was in charge of the prosecution.
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Marion County, WV man admits to selling cocaine near local universityRead the Press Release
CLARKSBURG, WEST VIRGINIA – Bennie Kyle, 60, of Fairmont, West Virginia, pled guilty to cocaine trafficking today in federal court, United States Attorney William J. Ihlenfeld, II, announced.
Kyle sold cocaine base in June 2015 near Fairmont State University in Marion County, West Virginia. He pled guilty today to one count of “Distribution of Cocaine Base within 1,000 feet of a Protected Location.” He faces between one and forty years in prison and a fine of up to $2,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Zelda Wesley prosecuted the case on behalf of the government. The Three Rivers Drug Task Force investigated.
U.S. District Judge Irene M. Keeley presided.
Manufacturer of Defective North Carolina Bridge Parts Pleads Guilty to Conspiracy and PerjuryRead the Press Release
RALEIGH – The United States Attorney’s Office for the Eastern District of North Carolina announces that SANTIAGO DE LA TORRE, 45, of Joliet, Illinois, pleaded guilty today to Counts One and Seventeen of the indictment, which charge him with Conspiracy to Make False Statements Concerning Highway Projects, and Perjury.
The indictment alleged that SANTIAGO DE LA TORRE and his brother, Joel De La Torre, residents of Illinois, opened a business called Delgado Elastomeric Bearings Corporation (DEBC). Through DEBC, the defendant and his brother manufactured and sold elastomeric bridge bearings, which are effectively shock absorbers for bridges. The defendant and his brother sold the bearings for use by multiple North Carolina highway contractors on numerous bridges in the state.
Joel De La Torre previously pled guilty on April 16, 2015 to one count of Making False Statements Concerning Highway Projects and Aggravated Identity Theft; aiding and abetting.
The indictment alleges that between 2009 and October of 2011, SANTIAGO DE LA TORRE and Joel De La Torre carried out a scheme to manufacture and sell bridge bearings on federal and state highway contracts in North Carolina as though an individual, identified as “A.D.,” was a vice president of DEBC with knowledge of the company’s operations. In fact, A.D. was a minor who was paid a wage by SANTIAGO DE LA TORRE and Joel De La Torre. A.D. had no knowledge or training in how to manufacture Bridge Bearings. A.D. was not, to his knowledge, a vice president of DEBC. The indictment further alleged that the defendant and his brother forged an application with the State of North Carolina to be able to supply bridge bearings on highway projects within the state.
The indictment further alleged that with each shipment of bridge bearings, SANTIAGO DE LA TORRE and his brother falsified various documents concerning the quality and testing of the bridge bearings. The indictment alleged that the certifications were false and fraudulent for various reasons, including the fact that SANTIAGO DE LA TORRE and Joel De La Torre fabricated the test results listed in the certifications.
The indictment further alleges that federal and state construction contractors received and relied upon the false and fraudulent certifications.
With respect to the count of perjury, the indictment alleges that SANTIAGO DE LA TORRE lied to the federal grand jury sitting in this District. At that time, the grand jury was engaged in an investigation concerning who created the false certifications.
The maximum punishment for the count of Conspiracy to Make False Statements Concerning Highway Projects, and the count of Perjury, is up to five years in prison for each count, a $250,000.00 fine for each count, and 3 years of supervised release.
The investigation of this case was conducted by the Federal Bureau of Investigation and the United States Department of Transportation, Office of the Inspector General. Assistant United States Attorney William M. Gilmore represents the United States.
Madison Man Sentenced to 92 Months in Prison for Conspiracy to Distribute MethamphetamineRead the Press Release
James L. Porter, Acting United States Attorney for the Southern District of Illinois, announced today that Isaac Lawrence, 31, of Madison, Illinois, was sentenced in federal district court in East St. Louis for the crime of Conspiracy to Distribute Methamphetamine.
Lawrence was sentenced to 92 months’ imprisonment, 3 years’ supervised release, a $100 special assessment, and a fine of $500, following his plea of guilty, on November 20, 2015. The charges relate to incidents that occurred in March, 2015, when Lawrence and a co-defendant traveled to California to buy methamphetamine; they then mailed the methamphetamine to East St. Louis, Illinois. Lawrence was arrested after U.S. Postal Inspectors became suspicious of the package and obtained a warrant to search the package, in which they found approximately 235 grams of methamphetamine.
The case was investigated by members of the Postal Inspection Service. The case was prosecuted by Assistant United States Attorney Stephen B. Clark.
Luzerne County Man Sentenced to 14 Years in Prison for Role in Heroin Trafficking ConspiracyRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Luzerne County man was sentenced today by Senior U.S. District Court Judge James M. Munley in Scranton, to 14 years in prison for participating in a heroin trafficking conspiracy that operated in Luzerne County during February through October 2014.
According to United States Attorney Peter Smith, the defendant, Desmond Mercer, age 28, previously pleaded guilty to conspiring with others from Luzerne County, New Jersey, and Alabama, to distribute heroin to customers in the Luzerne County area. Mercer in his plea acknowledged distributing more than 700 grams of heroin and playing a leadership role in the conspiracy. During part of the conspiracy, Mercer ran the drug operation while an inmate at the Luzerne County Prison.
Mercer was indicted by a federal grand jury in Scranton in October 2014, as a result of an investigation by agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Kingston Police, Plymouth Police and the Luzerne County District Attorney’s Office. Assistant U.S. Attorney Francis P. Sempa prosecuted the case.
All six defendants charged in the conspiracy have pleaded guilty. Co-defendant Shaliek Stroman, another Luzerne County resident, was sentenced by Judge Munley to more than 12 years in prison for his role in the conspiracy. New Jersey resident Antuan Jamison was sentenced to five years in prison. Corey Wortham, from Alabama, who played a minor role in the conspiracy, was sentenced to 18 months in prison. Co-defendants Shaquan Murphy and Megan Fox are awaiting sentencing in the case.
Judge Munley also ordered Mercer to serve three years on supervised release following his prison sentence. Mercer was also ordered to forfeit more than $7000 in cash and a vehicle seized by agents during the investigation.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the heroin initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies.
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Local Chiropractor and Billing Assistant Sentenced on Health Care Fraud ChargesRead the Press Release
St. Louis, MO – Dr. Donald Havey was sentenced to 51 months in prison and ordered to pay restitution of $2,276,221 on charges involving a scheme to bill Medicare for expensive custom ankle-foot orthotics that were never provided to the patients. His billing assistant, Susan Reno, was sentenced earlier to five years of probation and ordered to pay restitution of $10,571.
According to court documents, Havey owned and operated companies that sold orthotic devices through Spinal Decompression of Chesterfield; Senior Care, Inc.; Advanced Custom Orthotics, Inc.; and Missouri Custom Orthotics. Susan Reno and her company, Pinnacle Billings and Collections, provided billing services for Havey and each of his companies.
Beginning in 2009 and continuing to 2014, Dr. Havey defrauded Medicare, Medicaid, other public and private health insurance companies and patients by submitting false reimbursement claims for custom orthotic boots. The boots actually provided to the patients did not contain the custom features described in the reimbursement claims. Dr. Havey employed chiropractors to market his “Fall Prevention Program” to nursing homes and to sell the orthotic boots in Missouri and other states, including Texas, Alabama, California, Georgia, Illinois, Kentucky, Massachusetts, Mississippi, Oklahoma, Rhode Island and Tennessee. Dr Havey and the chiropractors employed by him told the nursing homes that the program would reduce falls by almost 20% and would improve the patients’ quality of life, but deliberately concealed from the nursing homes that the real purpose of the program was to sell orthotic boots to nursing home patients. Dr. Havey also told the nursing homes that there would be little or no cost to the patients, when he knew that a Medicare patient could be charged as much as $500 if the patient did not have supplemental insurance.
Dr. Havey knew Medicare would scrutinize any company that submitted claims for a large number of very expensive orthotic boots, so he attempted to conceal from Medicare the number of orthotic boots that he and his companies were selling. To accomplish this, Dr. Havey and Susan Reno submitted false claims under several of the companies. As an example, a chiropractor assessed and ordered orthotics for five Medicare patients residing in the same facility on the same day. Dr. Havey and Susan Reno submitted two of the residents’ claims to Medicare using Advanced Custom Orthotics as the supplier and the other three were billed to Medicare using Senior Care Orthotics as the supplier.
Medicare paid Dr. Havey between $2,400 and $2,600 for each pair of orthotics boots. The loss to Medicare, Medicaid and the private insurance companies was over $2.2 million.
Havey, St. Louis County, MO, pled guilty in October to one felony count of health care fraud and appeared this morning for sentencing before United States District Judge John A. Ross. Susan Reno, St. Louis County, MO, pled guilty in October to one misdemeanor count of submitting false reimbursement claims to Medicare and was sentenced in January to five years of probation and ordered to pay restitution of $10,571.
This case was investigated by the U.S. Department of Health and Human Services, Office of Inspector General, the Federal Bureau of Investigation and the Missouri Medicaid Fraud Control Unit. Assistant United States Attorney Dorothy McMurtry handled the case for the U.S. Attorney’s Office.
KNOW DOPE Website Goes Live with Award-winning PSAs and DocumentaryRead the Press Release
BIRMINGHAM – A new website presenting award-winning public service announcements and a short documentary produced by UAB Digital Media and focused on awareness and prevention of opiate addiction in the face of steeply rising heroin overdose deaths is live and publicly available, announced U.S. Attorney Joyce White Vance.
As part of the community Pills to Needles Initiative, the U.S. Attorney’s Office last year contracted with the University of Alabama at Birmingham’s Digital Media Department to create content for the website. Students who worked on the yearlong Know Dope project with UAB Digital Media Director Rosie O’Beirne last week won Best of Show in the student competition for the American Advertising Federation Birmingham Awards, or ADDYs.
The students created the Know Dope campaign name and logo, along with six public service announcements and the 10-minute documentary designed to be shown in area schools as part of drug awareness programs. The documentary and PSAs, along with information and links to help educate and provide resources on drug abuse and addiction can be found at www.knowdope.org.
“My office's partnership with the talented group at UAB Digital Media has led to the production of short video clips suitable for sharing on social media that can help fight against the deadly rise of prescription drug and heroin addiction,” Vance said. “It is critical for our community to understand the path from pill to heroin addiction, and that we focus on prevention and treatment opportunities. I hope everyone will spend a few minutes on our website. Minutes you spend may help save the life of someone you love.”
“One of the main aims of the Know Dope campaign was to appeal to a younger audience, while recognizing that heroin might be replaced by other drugs in the future,” O’Beirne said. “Digital assets were tested with middle and high school audiences, who are the main target audiences, and have provided a very positive response. Rollout of the campaign is planned throughout this spring.”
“Pills to Needles” is a collaborative initiative begun in 2014 to respond to the sharp spike in heroin deaths in northern Alabama. The initiative, originated thorough the U.S. Attorney’s Office for the Northern District of Alabama in conjunction with key partners including the UAB School of Public Health, the Jefferson County Department of Health and the Addiction Prevention Coalition, to date has focused on building and planning. Its overarching goals are to create a comprehensive and responsive community infrastructure to address this serious public health issue; develop strategies to reduce the ill-effects of heroin and prescription drug abuse; and give voice to those affected by heroin and prescription drug abuse.
Justice Department Sues Richmond City Sheriff’s Office in Richmond, Virginia, for Disability DiscriminationRead the Press Release
The Justice Department filed a lawsuit today alleging that the Richmond City Sheriff’s Office in Richmond, Virginia, fired a former deputy sheriff after failing to reassign her to a vacant position for which she was qualified, in violation of Title I of the Americans with Disabilities Act (ADA). The employee, who had worked as a deputy for approximately 10 years, asked to be reassigned to an available civilian position after a heart condition rendered her unable to continue as a deputy.
Title I of the ADA prohibits employers from discriminating against individuals on the basis of disability in various aspects of employment. These prohibitions include failing to provide reasonable accommodations, including reassignment, where such an accommodation does not pose an undue hardship to the employer.
“The ADA guarantees people with disabilities the right to earn a living and advance their careers free from workplace discrimination,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “The Justice Department will continue to vigorously enforce the ADA and ensure that when employees develop disabilities that interfere with their job, employers reassign them to a different vacant position that matches their qualifications.”
“Employment is a vital part of life for all individuals and the ADA ensures that qualified individuals who develop disabilities are able to stay employed,” said U.S. Attorney Dana J Boente of the Eastern District of Virginia.
Those interested in finding out more about the ADA may call the Justice Department’s toll-free ADA information line at 800-514-0301 (TDD 800-514-0383) or visit www.ada.gov.
The complaint can be found at the following link: Richmond City Sheriff’s Office.
Jerimiah Hunter Charged on Federal Pornography ChargesRead the Press Release
The United States Attorney for the Southern District of Alabama, Kenyen R. Brown, announces that Jeremiah Hunter was arrested on a complaint for Receipt of Child Pornography in violation of 18 U.S.C. Section 2252(a)(2)(A).
This case was investigated after the defendant, an Eighth Grade teacher at Hankins Middle School, was arrested on February 18, 2016 by the Mobile County Sheriff’s Office. He was charged with state charges of Stalking 2nd degree.
This case was investigated by the Federal Bureau of Investigation and the Mobile County Sheriff’s Office. The case is being prosecuted by the United States Attorney's office for the Southern District of Alabama, AUSA Maria Murphy.
The defendant has been charged by a complaint which is a determination by a federal magistrate judge that there is probable cause to believe that offense has been committed by a defendant. A defendant, of course, is presumed innocent until and unless he or she is proven guilty at trial.
Indictment Charges Second Municipal Court Judge in Corruption SchemeRead the Press Release
PHILADELPHIA – Joseph O’Neill, 65, of Philadelphia, Pennsylvania, was charged today by indictment with making false statements to the FBI during an investigation of potential wrongdoing in the Philadelphia Municipal Court, announced United States Attorney Zane David Memeger. O’Neill is a judge on the Philadelphia Municipal Court.
According to the indictment, then-Municipal Court Judge Joseph Waters, charged elsewhere, called O’Neill about a civil small claims case that was scheduled for a hearing before O’Neill. In an ex parte conversation, Waters told O’Neill that the defendant in the small claims case was a friend and asked O’Neill to “take a hard look at it.” When the FBI later interviewed O’Neill about the ex parte conversation, O’Neill denied having been contacted by anyone in advance of the hearing on the small claims case to ask for a favor. It is further alleged that in a follow-up interview, O’Neill denied that anyone had contacted him in advance of the hearing and told him the defendant in the small claims case was a friend of the caller.
If convicted, O’Neill faces a statutory maximum sentence of 10 years in prison, a possible fine, up to three years of supervised release, and a $200 special assessment.
The case was investigated by the FBI and is being prosecuted by Chief of the Public Corruption Unit Richard P. Barrett and Assistant United States Attorney Michelle L. Morgan.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Honduran Pleads Guilty to Immigration OffenseRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JUAN CARLOS FERRERA-RAMIREZ, age 44, a native of Honduras, pled guilty today to a one-count Indictment for illegal reentry of a removed alien, in violation of Title 18, United States Code, Section 1326(a).
According to court documents, FERRERA-RAMIREZ was previously removed from the United States on June 24, 2013. FERRERA-RAMIREZ was later found in the Eastern District of Louisiana on December 2, 2015 and had not received permission from the Attorney General of the United States or the Secretary of the Department of Homeland Security to reenter.
FERRERA-RAMIREZ faces a maximum term of imprisonment of two years, as well as a fine of $250,000. U.S. District Court Judge Sarah S. Vance set sentencing for May 4, 2016.
U.S. Attorney Polite praised the work of Immigration and Customs Enforcement agents in investigating this matter. Assistant United States Attorney Jon Maestri is in charge of the prosecution.
Hollister Sex Offender Sentenced to 20 Years for Child PornRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a convicted sex offender in Hollister, Mo., has been sentenced to federal prison for receiving child pornography.
Charles Neel Alexander, 64, of Hollister, was sentenced by U.S. District Judge M. Douglas Harpool on Tuesday, March 1, 2016, to a total of 20 years in federal prison without parole and to a lifetime of supervised release following his incarceration. The court sentenced Alexander to 15 years for receipt of child pornography and five years on a supervised release violation, to be served consecutively.
On July 29, 2015, Alexander pleaded guilty to receiving child pornography.
Alexander was under the supervision of the U.S. Probation Office as part of his sentence in the Western District of Texas for failing to register as a sex offender. Alexander had been convicted in the Western District of Texas of interstate transportation of child pornography, for which he was sentenced to 87 months in prison and required to register as a sex offender. He was subsequently convicted of failing to register as a sex offender. Alexander’s supervised release was transferred to the Western District of Missouri.
During a routine home visit, a probation officer seized a cell phone from Alexander that contained images and videos of child pornography. One of the conditions of Alexander’s term of supervised release states: “The defendant shall not possess or use a phone or any other electronic device that allows access to the Internet without the prior written permission of the probation officer.”
Law enforcement officers performed a forensic analysis of the phone and discovered at least 16 images of child pornography that included infants and children. Officers searched his residence and seized a laptop computer, a tablet and various electronic media that contained child pornography.
This case was prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by the Southwest Missouri Cyber Crimes Task Force, Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and the FBI.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Hartford Grocer, Two Others, Charged with Heroin TraffickingRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration for New England, announced that a federal grand jury in Hartford returned a 10-count indictment today charging JOHNNY BELTRE, 32, of Cromwell, ELVIS DE LOS SANTOS, also known as “Jorge,” 23, of Hartford, and DOMINGO DE LOS SANTOS, 48, of Hartford, with heroin trafficking offenses.
This matter stems from an ongoing investigation being conducted by the Drug Enforcement Administration’s Hartford Task Force, which includes participants from the Bristol, East Hartford, Hartford, Manchester, New Britain, Wethersfield and Willimantic Police Departments.
As alleged in court documents and statements made in court, the DEA Task Force has been investigating a heroin trafficking organization that BELTRE has been operating from his business, the Beltre Family Grocery store located at 955 Broad Street in Hartford. Between July 2015 and January 2016, law enforcement made seven controlled purchases of heroin from BELTRE and his associates. For each purchase, an individual arranged to purchase heroin from BELTRE through recorded telephone calls, text messages or in-person meetings. The individual then travelled to Beltre Family Grocery and provided BELTRE with money. BELTRE then sent the purchaser to ELVIS DE LOS SANTOS’s apartment at 105 Sherbrooke Avenue or DOMINGO DE LOS SANTOS’s residence at 132 Newbury Street to obtain the heroin.
On February 22, 2016, investigators in Connecticut learned that BELTRE and two other associates were arrested in the Bronx, N.Y., after BELTRE and his associates provided a courier with a bag containing approximately $500,000 in exchange for 20 kilograms of heroin. Later that day, members of the DEA’s Hartford Task Force arrested ELVIS DE LOS SANTOS and DOMINGO DE LOS SANTOS on federal criminal complaints. On that date, a search of BELTRE’s residence in Cromwell revealed $433,577 in cash; a search of ELVIS DE LOS SANTOS’s residence revealed two bags of raw heroin, cutting agents, a digital scale and baggies, and a search of DOMINGO DE LOS SANTOS’s residence revealed a bag of heroin, a bag of cocaine, cutting agents, a kilogram press, pieces of an unassembled kilogram press, baggies, scales, gloves, a vacuum sealer and $6,000 in cash.
The indictment charges all three defendants with conspiracy to distribute and to possess with intent to distribute one kilogram or more of heroin. If convicted of this charge, each defendant faces a minimum term of imprisonment of 10 years and a maximum term of imprisonment of life. Each defendant also faces multiple counts of possession with intent to distribute, and distribution of, heroin.
The three defendants are detained.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This case is being prosecuted by Assistant U.S. Attorney Geoffrey M. Stone.
Harrisburg Man Pleads Guilty to Firearm OffenseRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Harrisburg man indicted by a federal grand jury in Harrisburg on firearm charges has pleaded guilty today to being a felon illegally in possession of a firearm.
According to United States Attorney Peter Smith, Christopher Fleisher, age 35, was previously charged in an indictment with being a felon in possession of a firearm and with possessing a stolen firearm. The indictment alleged the offenses occurred on June 4, 2015 in Harrisburg and involved a stolen .38 caliber Smith and Wesson handgun. Fleisher agreed to plead guilty to the felon in possession charge pursuant to a plea agreement with the government.
The case was investigated by the by the Harrisburg Office of the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Harrisburg Police Department, and the Commonwealth of Pennsylvania’s Office of Probation and Parole. Prosecution of the case is assigned to Assistant United States Attorney William A. Behe.
This case was brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes.
A sentence following a finding of guilt or plea of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for the crime of being a felon in possession of a firearm is 10 years imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Harahan Man Pleads Guilty to Conspiracy to Sell Identification DocumentsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that DAMIAN R. RODRIGUEZ, age 38, of Harahan, pled guilty today to conspiracy to transfer identification documents, in violation of 18 U.S.C. § 1028(f).
According to court documents, RODRIGUEZ conspired with two other individuals to sell a social security card and birth certificate to a confidential informant working with Special Agents of the Department of Homeland Security.
RODRIGUEZ faces a maximum term of imprisonment of fifteen years, a maximum fine of $250,000, a maximum term of supervised release of three years, and a mandatory $100 special assessment. U.S. District Judge Sarah S. Vance set sentencing for June 15, 2016.
U.S. Attorney Polite praised the work of the United States Department of Homeland Security, Homeland Security Investigations, in investigating this matter. Assistant U.S. Attorney Spiro G. Latsis is in charge of the prosecution.
Glen Burnie Tax Preparer Sentenced to Prison for Filing 29 False Tax ReturnsRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell, III sentenced Christine Little, age 43, of Glen Burnie, Maryland today to a year and a day in prison, followed by one year of supervised release, for aiding in the preparation of false tax returns.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Thomas Jankowski of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.
“IRS Criminal Investigation is determined to stop false tax refund schemes,” said Thomas Jankowski, IRS Criminal Investigation Special Agent in Charge, Washington D.C. Field Office. “Ms. Little’s sentence sends the message that participation in refund fraud schemes does not pay and those who choose to engage in defrauding the government will be prosecuted.”
According to her plea agreement, Little identified herself as the CEO of TNT Taxes. From February to June 2011, she recruited taxpayers to use her services, purporting to specialize in business and individual taxes and “amendments.”
Little admitted that she prepared 29 false federal tax returns. She placed information on the tax returns that did not reflect the information given by clients; falsely inflated withholdings and real estate taxes; and caused the returns to contain false personal property taxes, home mortgage interest and charitable deductions.
In April 2011, an undercover federal agent requested that Little prepare his individual federal tax return. The tax return prepared by Little did not accurately reflect the information the agent supplied to her. Instead, the tax return included false deductions and inflated withholding amounts, resulting in a fraudulent refund claim of more than $11,000.
Little admits that the loss resulting from the false tax returns she filed exceeded $330,000.
United States Attorney Rod J. Rosenstein commended the IRS – Criminal Investigation for its work in the investigation and thanked Assistant U.S. Attorney Harry M. Gruber, who prosecuted the case.
Glastonbury Man Sentenced to 10 Months in Federal Prison for Structuring Financial TransactionsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that DAVID E. RAYMOND, 75, of Glastonbury, was sentenced yesterday by U.S. District Judge Janet Bond Arterton in New Haven to 10 months of imprisonment, followed by two years of supervised release, for purposefully engaging in cash transactions at banks in order to avoid the filing of reports.
Federal law requires all financial institutions to file a Currency Transaction Report (CTR) for currency transactions that exceed $10,000. To evade the filing of a CTR, individuals will often conduct their currency transactions so that no single transaction exceeds $10,000. Structuring involves the repeated depositing or withdrawal of amounts of cash less than the $10,000.01 limit, or the splitting of a cash transaction that exceeds $10,000 into smaller cash transactions in an effort to avoid the reporting requirements. Even if the deposited funds are derived from a legitimate means, financial transactions conducted in this manner are still in violation of federal criminal law.
According to court documents and statements made in court, RAYMOND purchased rock and roll memorabilia for a doctor who owned a medical practice. RAYMOND’s friend, Andrea Dobrozensky, was the office manager for the medical practice and also paid the doctor’s personal expenses. For purchases of items for the doctor in amounts greater than $10,000, RAYMOND requested that any checks payable to him be made in amounts under $10,000 so as to avoid the bank filing a CTR when he cashed the checks. The checks, ranging in amounts from $4,000 to $9,900, were payable to RAYMOND and many were dated on the same date.
Between August 2009 and May 2012, RAYMOND received 20 checks totaling $146,500 from the medical practice’s business bank accounts. RAYMOND negotiated the checks for cash at local bank branches where RAYMOND had personal accounts. He purposefully cashed the checks on different days and at different banks so that the banks would not file CTRs disclosing his receipt of cash.
The investigation also revealed that RAYMOND made material false representations to the doctor concerning the acquisition date and restoration of a painting in order to induce the doctor to buy and restore the painting. In 2009 and 2010, the doctor paid RAYMOND $20,000 for the painting plus $30,000 for restoration, authentication, and framing costs. The painting is a fake, and RAYMOND had bought and restored it before selling it to the doctor.
On November 27, 2012, RAYMOND and Dobrozensky traveled to a branch of Farmington Bank in Avon where RAYMOND told Dobrozensky to write checks in amounts below $10,000. Dobrozensky wrote two checks, one to herself for $9,900 and one to RAYMOND for $9,900. Dobrozensky then cashed the check payable to her and received $9,900 in cash, and RAYMOND cashed the check payable to him and received $9,900 in cash. Later, RAYMOND provided the $9,900 to Dobrozensky.
The investigation revealed that RAYMOND has not filed a tax return since at least 1986. RAYMOND has agreed to forfeit $10,000 related to his structuring activity.
On October 19, 2015, RAYMOND pleaded guilty to one count of structuring financial transactions.
On October 13, 2015, Dobrozensky pleaded guilty to tax and structuring charges. On January 22, 2016, she was sentenced to five months of imprisonment, five months of home confinement and a $3,000 fine.
This matter was investigated by the Internal Revenue Service – Criminal Investigation Division, Federal Bureau of Investigation and Hartford Police Department. The case was prosecuted by Assistant U.S. Attorneys John H. Durham and Peter S. Jongbloed.
Fugitive Found Guilty to Possessing More Than A Kilogram of Cocaine and Failure to AppearRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces that a federal jury today found Barrington Richards (36, Lauderhill) guilty of possession with intent to distribute 500 grams or more of cocaine, and failure to appear after being released on bond. He faces a maximum penalty of 40 years in federal prison on the drug charge and up to 10 years’ imprisonment for the failure to appear violation. A sentencing date has not yet been set.
According to the evidence presented at trial, on January 30, 2004, troopers with the Florida Highway Patrol stopped Richards on the Florida Turnpike in Osceola County for a traffic violation. During the traffic stop, a narcotics dog detected drugs in the vehicle. The troopers then searched the vehicle and located approximately one and a half kilograms of cocaine hidden in the trunk.
An indictment was returned in the Middle District of Florida in March 2004. Richards was arrested in the Southern District of Florida and made his initial appearance in federal court in Miami. He posted bond but then then failed to appear for further hearings in federal court in Orlando. He remained at large until being arrested in Jefferson Davis Parish, Louisiana, on November 19, 2015.
This case was investigated by the Drug Enforcement Administration and the Florida Highway Patrol. It is being prosecuted by Assistant United States Attorney Vincent S. Chiu.
Franklin County Man Federally Charged with Production of Child Pornography Using an InfantRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a Waynesboro man has been indicted by a federal grand jury in Harrisburg for the offenses of Sexual Exploitation of a Minor.
According to United States Attorney Peter Smith, Evan Matthew Lawbaugh, age 32, is alleged to have sexually assaulted an infant in December 2015 and recorded and distributed the video depicting such assault.
This case was investigated by the United States Postal Inspection Service, the Pennsylvania State Police and the Pennsylvania Office of Attorney General. The case is being prosecuted by Assistant United States Attorney Daryl Bloom.
If you have any information related to this case or believe you or someone you know may be a victim, you are encouraged to contact Postal Inspector Michael Corricelli of the U.S. Postal Inspection Service at 717-257-5581.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is 50 years’ imprisonment, a term of supervised release following imprisonment, and a $250,000 fine. Count I carries a mandatory term of imprisonment of 25 years’ imprisonment. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Former Representative of Insurance and Investment Company Sentenced to 33 Months in Prison for Stealing More Than $650,000 from the Company’s ClientsRead the Press Release
NEWARK, N.J. – A former registered representative of a broker-dealer offering investment products and services, including variable life insurance and annuities, was sentenced today to 33 months in prison for using his position to steal more than $650,000 from the company’s clients, U.S. Attorney Paul J. Fishman announced.
Kwen Y. Chun, 59, of Midland Park, New Jersey, previously pleaded guilty before U.S. District Judge Susan D. Wigenton to an information charging him with one count of mail fraud. Judge Wigenton imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
From September 1998 through June 2014, Chun was employed by the company as a registered agent, with authority to assist clients with withdrawing funds from annuities, applying for deferred annuities, and processing loan requests. Chun diverted funds that belonged to at least eight clients to bank accounts under his control and converted those funds to his own use.
Chun opened a bank account in the name of one client, using the client’s identification without the client’s knowledge or permission. Based upon false representations to the company that the client was requesting withdrawals and loans, Chun caused the company to wire monies from the client’s insurance policies and annuity accounts into the phony account. Chun also admitted that he caused the company to mail numerous checks to his Midland Park residence based upon false representations to the company that at least three other clients had requested to take loans on their insurance policies, which he then deposited into accounts under his control.
Chun admitted to causing other clients to obtain loans from company insurance policies, or to provide him with checks and cash, which Chun falsely advised he would use to open investment accounts on behalf of those clients. Instead, Chun deposited those loan proceeds into bank accounts under his control. He admitted that he provided one of the company’s clients with fabricated statements that purported to show the interest and balance in the client’s fictitious investment account. Chun also provided two other clients with paperwork that purported to illustrate the benefits that they would receive for their alleged annuity investment.
In addition to the prison term, Judge Wigenton ordered Chun to serve two years of supervised release and pay $530,418.34 in restitution.
U.S. Attorney Fishman praised inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates; criminal investigators with the U.S. Attorney’s Office in Newark; the N.J. Bureau of Securities, Office of the N.J. Attorney General, under the direction of Acting Attorney General John J. Hoffman; and the Bergen County Prosecutor’s Office, under the direction of Prosecutor Acting Prosecutor Gurbir S. Grewal, for the investigation leading to today’s sentencing.
The government is represented by Senior Litigation Counsel Leslie Faye Schwartz of the U.S. Attorney’s Office Economic Crimes Unit and Assistant U.S. Attorney Peter Gaeta of the U.S. Attorney’s Office Asset Forfeiture and Money Laundering Unit in Newark.
Defense counsel: Joshua P. Cohn Esq., Saddle Brook, New Jersey
Former Owner of Florida Home Health Care Companies Agrees to Pay $1.75 Million to Resolve Kickback and False Claims Act AllegationsRead the Press Release
Mark T. Conklin, the former owner, operator and sole shareholder of Recovery Home Care Inc. and Recovery Home Care Services Inc. (collectively RHC) has agreed to pay $1.75 million to resolve a lawsuit alleging that he violated the False Claims Act by causing RHC to pay illegal kickbacks to doctors who agreed to refer Medicare patients to RHC for home health care services, the Department of Justice announced today. Conklin sold the RHC companies to National Home Care Holdings LLC, on Oct. 9, 2012.
“Individuals who seek to increase their profits by providing physicians with illegal inducements will be held personally accountable,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “We will continue to identify, investigate and, where appropriate, sue individuals and corporations that misuse funds meant to provide critical medical services for beneficiaries of federal health care programs.”
From 2009 through 2012, Conklin spearheaded a scheme whereby RHC, headquartered in West Palm Beach, Florida, allegedly paid dozens of physicians thousands of dollars per month to serve as sham medical directors who supposedly conducted quality reviews of RHC patient charts. According to the government’s lawsuit, the physicians in many instances performed little or no work, but nevertheless received thousands of dollars from RHC. The government’s complaint contended that these payments were, in fact, kickbacks intended to induce the physicians to refer their patients to RHC, in violation of the Anti-Kickback Statute and the Stark Law.
These laws are intended to ensure that a physician’s medical judgment is not compromised by improper financial incentives. The Anti-Kickback Statute prohibits offering, paying, soliciting or receiving remuneration to induce referrals of items or services covered by federal health care programs, including Medicare. The Stark Law forbids a home health care provider from billing Medicare for certain services referred by physicians who have a financial relationship with the entity. A person who knowingly submits, or causes the submission, to Medicare of claims that violate either the Anti-Kickback Statute or the Stark Law is also liable for treble damages and penalties under the False Claims Act.
“Inducements of the type at issue in this case are designed to improperly influence a physician’s independent medical judgment,” said U.S. Attorney A. Lee Bentley, III for the Middle District of Florida. “This lawsuit and today’s settlement evidence our office’s ongoing efforts to safeguard federal health care program beneficiaries from the effects of such illegal conduct.”
“Home health agency owners who seek to boost profits by paying kickbacks to physicians in exchange for patient referrals will instead pay for their improper conduct at the settlement table,” said Special Agent in Charge Shimon R. Richmond of U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “We will continue to crack down on such illegal, wasteful kickback schemes, which can undermine impartial medical judgment and corrode the public’s trust in the health care system.”
The United States previously reached a settlement with RHC’s purchaser, National Home Care Holdings, on March 9, 2015, for $1.1 million.
The settlement with Conklin, which is subject to approval by the Bankruptcy Court for the Southern District of Florida, concludes a lawsuit originally filed by Gregory Simony, a former RHC employee, under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private individuals to sue on behalf of the government for false claims and to share in any recovery. The act also allows the government to intervene and take over the action, as it did in part in this case. Simony will receive up to $315,000 of the proceeds of the Conklin settlement.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $27.4 billion through False Claims Act cases, with more than $17.4 billion of that amount recovered in cases involving fraud against federal health care programs.
The settlement was the result of a coordinated effort by the Civil Division’s Commercial Litigation Branch, the U.S. Attorneys’ Offices for the Middle District of Florida and the Southern District of Florida and the HHS-OIG.
The case is captioned United States ex rel. Simony v. Recovery Home Care, et al., Case No. 8-12-cv-2495-T-36TBM (M.D. Fla.). The claims resolved by the settlement are allegations only and there has been no determination of liability.
Former Owner of Florida Home Health Care Companies Agrees to Pay $1.75 Million to Resolve Kickback and False Claims Act AllegationsRead the Press Release
Tampa, FL – Mark T. Conklin, the former owner, operator and sole shareholder of Recovery Home Care Inc. and Recovery Home Care Services Inc. (collectively RHC) has agreed to pay $1.75 million to resolve a lawsuit alleging that he violated the False Claims Act by causing RHC to pay illegal kickbacks to doctors who agreed to refer Medicare patients to RHC for home health care services, the Department of Justice announced today. Conklin sold the RHC companies to National Home Care Holdings LLC, on Oct. 9, 2012.
“Inducements of the type at issue in this case are designed to improperly influence a physician’s independent medical judgment,” said U.S. Attorney A. Lee Bentley, III for the Middle District of Florida. “This lawsuit and today’s settlement evidence our office’s ongoing efforts to safeguard federal health care program beneficiaries from the effects of such illegal conduct.”
From 2009 through 2012, Conklin spearheaded a scheme whereby RHC, headquartered in West Palm Beach, allegedly paid dozens of physicians thousands of dollars per month to serve as sham medical directors who supposedly conducted quality reviews of RHC patient charts. According to the government’s lawsuit, the physicians in many instances performed little or no work, but nevertheless received thousands of dollars from RHC. The government’s complaint contended that these payments were, in fact, kickbacks intended to induce the physicians to refer their patients to RHC, in violation of the Anti-Kickback Statute and the Stark Law.
These laws are intended to ensure that a physician’s medical judgment is not compromised by improper financial incentives. The Anti-Kickback Statute prohibits offering, paying, soliciting or receiving remuneration to induce referrals of items or services covered by federal health care programs, including Medicare. The Stark Law forbids a home health care provider from billing Medicare for certain services referred by physicians who have a financial relationship with the entity. A person who knowingly submits, or causes the submission, to Medicare of claims that violate either the Anti-Kickback Statute or the Stark Law is also liable for treble damages and penalties under the False Claims Act.
“Individuals who seek to increase their profits by providing physicians with illegal inducements will be held personally accountable,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “We will continue to identify, investigate and, where appropriate, sue individuals and corporations that misuse funds meant to provide critical medical services for beneficiaries of federal health care programs.”
“Home health agency owners who seek to boost profits by paying kickbacks to physicians in exchange for patient referrals will instead pay for their improper conduct at the settlement table,” said Special Agent in Charge Shimon R. Richmond of U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “We will continue to crack down on such illegal, wasteful kickback schemes, which can undermine impartial medical judgment and corrode the public’s trust in the health care system.”
The United States previously reached a settlement with RHC’s purchaser, National Home Care Holdings, on March 9, 2015, for $1.1 million.
The settlement with Conklin, which is subject to approval by the Bankruptcy Court for the Southern District of Florida, concludes a lawsuit originally filed by Gregory Simony, a former RHC employee, under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private individuals to sue on behalf of the government for false claims and to share in any recovery. The act also allows the government to intervene and take over the action, as it did in part in this case. Simony will receive up to $315,000 of the proceeds of the Conklin settlement.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $27.4 billion through False Claims Act cases, with more than $17.4 billion of that amount recovered in cases involving fraud against federal health care programs.
The settlement was the result of a coordinated effort by the Civil Division’s Commercial Litigation Branch, the U.S. Attorneys’ Offices for the Middle District of Florida and the Southern District of Florida and the HHS-OIG.
The case is captioned United States ex rel. Simony v. Recovery Home Care, et al., Case No. 8-12-cv-2495-T-36TBM (M.D. Fla.). The claims resolved by the settlement are allegations only and there has been no determination of liability.
Former Logan County gun shop employee pleads guilty to Federal firearms chargeRead the Press Release
CHARLESTON, W.Va. – A former employee of a Logan County gun and pawn shop pleaded guilty today to a federal gun crime, announced Acting United States Attorney Carol Casto. Steven Adkins, 38, of Man, entered his guilty plea to making and aiding and abetting false statements relating to firearms purchases.
Adkins was an employee of Uncle Sam’s Loans, a gun and pawn shop in Man. In this job, Adkins sold and transferred firearms to people that he knew were not the actual buyers of the guns. These types of transactions are commonly called “straw purchases.” Adkins fraudulently filled out federal forms required to be completed during a lawful firearms sale, or directed others to fraudulently complete the forms. These fraudulent forms reflected straw purchases when, in fact, the guns were sold to other buyers. From 2009 to 2014, Adkins engaged in more than 50 illegal straw purchases and transfers of firearms.
Adkins faces up to five years in federal prison and a $250,000 fine when he is sentenced on June 6, 2016.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the West Virginia State Police conducted the investigation. Assistant United States Attorneys Erik S. Goes and Meredith George Thomas are handling the prosecution. The hearing was held before United States District Judge Thomas E. Johnston.
This case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by working with existing local programs that target gun crime.
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Former Director of Phoenix VA Hospital Pleads GuiltyRead the Press Release
PHOENIX – On March 1, 2016, Sharon M. Helman, 45, of Surprise, Ariz., the former director of the Phoenix VA Medical Center, pleaded guilty to making a false financial disclosure to the federal government.
“I commend the FBI and the VA Office of Inspector General for their thorough investigation concerning the VA Medical Center in Phoenix, which revealed that the Center’s director had received, but failed to report, tens of thousands of dollars of gifts from a lobbyist,” stated U.S. Attorney John S. Leonardo. “Based on their thorough investigation, we do not intend to pursue any additional criminal charges at this time.”
“The FBI recognizes and appreciates the tremendous sacrifice and service our veterans have made for our country. With this in mind, we conducted a thorough and extensive investigation of the allegations surrounding the Phoenix VA. Our investigation revealed that the former director of the Phoenix VA Medical Center failed to report gifts as required under federal law,” said FBI Acting Special Agent in Charge Mark Cwynar. “Although this plea agreement calls for a term of probation, making a false financial disclosure to the federal government is a felony and will permanently attach to Ms. Helman’s legacy.”
Michael E. Seitler, Special Agent in Charge of the U.S. Department of Veterans Affairs, Office of Inspector General, Northwest Field Office, stated: “VA executives have an obligation to clearly disclose any potential conflicts of interest. By providing false information to VA, Ms. Helman concealed her financial relationship with a senior employee of a consulting firm. That firm advised large corporations seeking to expand their VA business. This prosecution holds Ms. Helman accountable. We hope it will deter any other government executives who may be tempted to conceal this type of information.”
Helman was director of the Phoenix VA hospital from February 2012 to December 2014. Federal law required Helman to annually complete and file a financial disclosure report and to disclose, among many other things, gifts received during the applicable calendar year. In her plea agreement, Helman admitted that, in March 2014, she submitted a financial disclosure in which she falsely reported that she received no gifts during 2013. That report was false because during 2013 Helman had, in fact, received gifts totaling more than $19,300. The gifts included an automobile, a check for $5,000, concert tickets, and two round-trip airline tickets.
Helman also acknowledged that she filed a false report for 2012, failing to report four gifts of a total value of more than $2,000. Furthermore, although she did not file a financial disclosure report for 2014, Helman agreed that between January 2 and July 1 of that year, she received six gifts valued at more than $27,700.
All of the gifts were from a single source, a person identified in court as a former high-level VA employee who from 2005-2009 served as Helman’s supervisor. During the 2012-2014 time period, that person was an executive consultant, and later vice president, of a consulting and lobbying firm that assisted companies in expanding their business with the VA. Helman acknowledged that, had she properly reported the gifts and their source, the VA would have done a conflict-of-interest analysis to determine whether her acceptance of the gifts was permitted under applicable laws and regulations.
Although a conviction for making a false statement to a government agency carries a maximum penalty of five years, Helman’s plea agreement provides for a term of probation.
Sentencing is set before United States District Judge Steven P. Logan on Monday, April 25, 2016.
The investigation in this case was conducted by the Federal Bureau of Investigation and the VA Office of Inspector General. The prosecution is being handled by Frank T. Galati, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: WI-1600074-PHX-SP
RELEASE NUMBER: 2016-018_ Helman
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
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