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2 March 2016
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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Former County Chief Deputy Auditor Sentenced to 84 Months for Embezzling Government Funds, Tax Fraud and Wire FraudRead the Press Release
A former chief deputy auditor for LaPorte County, Indiana, was sentenced today to 84 months in prison for embezzling over $150,000 from the LaPorte County government, tax fraud and defrauding her father-in-law out of more than $600,000, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney David A. Capp of the Northern District of Indiana.
Mary Ray, 68, of LaPorte, was also ordered to forfeit $137,249.59 and pay $801,315.66 in restitution as part of her sentence, which was imposed by U.S. District Judge Jon E. Deguilio of the Northern District of Indiana. On Sept. 17, 2015, Ray was convicted of two counts of theft of government monies, two counts of making false statements on a tax return and seven counts of wire fraud.
According to evidence presented at trial, from September 2011 through December 2012, while she served as chief deputy auditor for LaPorte County, Ray embezzled more than $150,000 from county coffers and underreported her income on her U.S. Individual Tax Returns by failing to report the embezzled funds. Evidence at trial also showed that Ray defrauded her father-in-law, an 86-year-old disabled veteran, out of more than $600,000 in funds that he entrusted her to oversee. The evidence also demonstrated that Ray used the illegally-obtained funds to gamble at casinos.
The FBI and Internal Revenue Service-Criminal Investigation investigated the case with assistance from the Indiana State Police, the LaPorte County Sheriff’s Department and the Indiana State Board of Accounts. Trial Attorney Peter Halpern of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Donald J. Schmid of the Northern District of Indiana prosecuted the case.
Former County Chief Deputy Auditor Sentenced to 84 Months for Embezzling Government Funds, Tax Fraud and Wire FraudRead the Press Release
WASHINGTON – A former chief deputy auditor for LaPorte County, Indiana, was sentenced today to 84 months in prison for embezzling over $150,000 from the LaPorte County government, tax fraud and defrauding her father-in-law out of more than $600,000, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney David A. Capp of the Northern District of Indiana.
Mary Ray, 68, of LaPorte, was also ordered to forfeit $137,249.59 and pay $801,315.66 in restitution as part of her sentence, which was imposed by U.S. District Judge Jon E. Deguilio of the Northern District of Indiana. On Sept. 17, 2015, Ray was convicted of two counts of theft of government monies, two counts of making false statements on a tax return and seven counts of wire fraud.
According to evidence presented at trial, from September 2011 through December 2012, while she served as chief deputy auditor for LaPorte County, Ray embezzled more than $150,000 from county coffers and underreported her income on her U.S. Individual Tax Returns by failing to report the embezzled funds. Evidence at trial also showed that Ray defrauded her father-in-law, an 86-year-old disabled veteran, out of more than $600,000 in funds that he entrusted her to oversee. The evidence also demonstrated that Ray used the illegally-obtained funds to gamble at casinos.
The FBI and Internal Revenue Service-Criminal Investigation investigated the case with assistance from the Indiana State Police, the LaPorte County Sheriff’s Department and the Indiana State Board of Accounts. Trial Attorney Peter Halpern of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Donald J. Schmid of the Northern District of Indiana prosecuted the case.
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Former Corrections Officer Sentenced for Unlawfully Trafficking “Suboxone”Read the Press Release
ALBUQUERQUE – Edward Owens, 21, of Santa Fe, N.M., was sentenced today in federal court in Albuquerque, N.M., to three years of probation for participating in a conspiracy to distribute Buprenorphine, more commonly known as “Suboxone,” in violation of the federal narcotics laws. At the time he committed the crime, Owens was employed as a corrections officer at the Santa Fe County Adult Correctional Facility.
Owens was arrested on Feb. 12, 2015, on an indictment charging him and codefendant James Barela, 41, of Santa Fe, with conspiracy and possession of Suboxone with intent to distribute. According to the indictment, Owens and Barela committed these crimes between Aug. 6, 2014 and Aug. 12, 2014, in Santa Fe County, N.M.
On Dec. 3, 2015, Owens pled guilty to the indictment and admitted that from Aug. 4, 2014 through Aug. 12, 2014, while he was employed as a corrections officer at the Santa Fe County Adult Correctional Facility, he agreed to bring contraband into the jail for Barela who was an inmate at the facility. Owens admitted that he agreed to smuggle 47 sublingual Suboxone strips into the jail in exchange for payment from Barela, but was apprehended while attempting to do so.
Barela pled guilty to participating in the Suboxone trafficking conspiracy on June 10, 2015, and admitted that from Aug. 4, 2014 through Aug. 12, 2014, while he was incarcerated he conspired with Owens to distribute Suboxone to inmates in the correctional facility. Barela was sentenced on Oct. 8, 2015, to 12 months and one day in federal prison followed by three years of supervised release.
This case was investigated by the Albuquerque office of the FBI, the Santa Fe County Sheriff’s Office, and the Santa Fe Corrections Department with assistance from the First Judicial District Attorney’s Office.
Assistant U.S. Attorney Shaheen P. Torgoley prosecuted the case pursuant to the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative is a collaborative effort between the U.S. Attorney’s Office and the University of New Mexico Health Sciences Center that is partnering with the Bernalillo County Opioid Accountability Initiative with the overriding goal of reducing the number of opioid-related deaths in the District of New Mexico. The HOPE Initiative comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. The law enforcement component of the HOPE Initiative is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative.
Former Chief Executive Officer Sentenced to over Seven Years in Prison for Illegally Exporting Technology Equipment to China and Money LaunderingRead the Press Release
Louis Brothers, 63, of Covington, Kentucky, was sentenced to 93 months in prison for illegally exporting sophisticated technology equipment to the People’s Republic of China (PRC) and concealing the unlawful proceeds. The sentence also includes a monetary judgment of $1.1 million.
Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Kerry B. Harvey of the Eastern District of Kentucky, Special Agent in Charge Clark E. Settles of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Washington, D.C. Office and Special Agent in Charge Howard Marshall of the FBI’s Louisville Division jointly made the announcement today.
U.S. District Judge Amul R. Thapar of the Eastern District of Kentucky sentenced Brothers for conspiracy, aiding and abetting in the illegal export of defense articles and conspiracy to launder funds.
Brothers, a former president and CEO of Valley Forge Composite Technologies, pleaded guilty to the offenses in July 2015. He admitted that from 2009 until 2013, he unlawfully exported microcircuits to the PRC. Under federal law, anyone exporting a defense article, including microcircuits, to the PRC must obtain the permission of the Department of State for the purposes of maintaining national security.
According to his plea agreement, Brothers intentionally avoided notifying the Department of State about his activity and labeled his shipments as “computer parts” in order to conceal the true identity of the items.
Brothers further admitted that he falsified paper work to make it appear that the proceeds he received from his business with the PRC were actually profits from a business he owned in Kentucky.
The investigation was conducted by the FBI and HSI. The case is being prosecuted by Assistant U.S. Attorney Robert McBride of the Eastern District of Kentucky and Trial Attorney Casey Arrowood of the National Security Division’s Counterintelligence and Export Control Section.
Former Chief Executive Officer Sentenced to over Seven Years in Prison for Illegally Exporting Technology Equipment to China and Money LaunderingRead the Press Release
WASHINGTON – Louis Brothers, 63, of Covington, Kentucky, was sentenced to 93 months in prison for illegally exporting sophisticated technology equipment to the People’s Republic of China (PRC) and concealing the unlawful proceeds. The sentence also includes a monetary judgment of $1.1 million. Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Kerry B. Harvey of the Eastern District of Kentucky, Special Agent in Charge Clark E. Settles of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Washington, D.C. Office and Special Agent in Charge Howard Marshall of the FBI’s Louisville Division jointly made the announcement today. U.S. District Judge Amul R. Thapar of the Eastern District of Kentucky sentenced Brothers for conspiracy, aiding and abetting in the illegal export of defense articles and conspiracy to launder funds. Brothers, a former president and CEO of Valley Forge Composite Technologies, pleaded guilty to the offenses in July 2015. He admitted that from 2009 until 2013, he unlawfully exported microcircuits to the PRC. Under federal law, anyone exporting a defense article, including microcircuits, to the PRC must obtain the permission of the Department of State for the purposes of maintaining national security. According to his plea agreement, Brothers intentionally avoided notifying the Department of State about his activity and labeled his shipments as “computer parts” in order to conceal the true identity of the items. Brothers further admitted that he falsified paper work to make it appear that the proceeds he received from his business with the PRC were actually profits from a business he owned in Kentucky. The investigation was conducted by the FBI and HSI. The case is being prosecuted by Assistant U.S. Attorney Robert McBride of the Eastern District of Kentucky and Trial Attorney Casey Arrowood of the National Security Division’s Counterintelligence and Export Control Section.
Florida Man Pleads Guilty to Tax ChargeRead the Press Release
ROANOKE, VIRGINIA – A Miami, Florida man, who prepared false tax returns for others without their consent, pled guilty yesterday in the United States District Court for the Western District of Virginia in Roanoke, United States Attorney John P. Fishwick Jr. announced today.
Audrey Obin, 36, of Miami, Fla., pled guilty this afternoon to Count One, conspiracy to obtain refunds from the filing of false tax returns. Two co-conspirators, Agwell Fayette and Darold Daniels are awaiting trial.
According to evidence presented at yesterday’s guilty plea hearing by Assistant United States Attorney C. Patrick Hogeboom III, Obin owed Vision Tax Services, an income tax preparation service located in Florida. Vision Tax Services filed tax returns electronically and Advent Financial processed the refund payments.
On or about June 11, 2012, Obin prepared and filed a Form 1040 for the 2011 tax year for K.L. The returned included K.L.’s name and social security number but the address listed was not hers. K.L. did not file the return or authorize anyone to file the return on her behalf. K.L. said she never spoke to Obin nor provided him with any of the information needed to prepare a tax return. She did, however, provide personal identifiers to Agwel Fayette, who told K.L. the information would be used to assist her in obtaining public assistance.
Obin admitted that he never met K.L. but was provided the personal identifiers by Darold Daniels. Obin charged $700 to prepare the tax return and sent the refund check to Roanoke, Virginia where it was deposited into a bank account controlled by Fayette.
On or about March 22, 2012, a 2011 Form 1040 was prepared and filed by Obin in C.R.’s name. C.R. resided in Roanoke, Virginia, but provided his personal identifiers to Fayette with the understanding that it was for potential employment purposes. Daniels provided the information to Obin, which was used to file a false tax return claiming a refund of $1,782. The refund check, minus $700 for the preparation fee to Obin, was cashed at a convenience store operated by Fayette.
The investigation of the case was conducted by Internal Revenue Service and United States Postal Service. Assistant United States Attorney C. Patrick Hogeboom III will prosecute the case for the United States.
Felon in Possession of a Firearm Goes to PrisonRead the Press Release
A man with a prior felony and misdemeanor domestic abuse conviction was sentenced yesterday to nearly three years in federal prison.
Willie Hampton, age 56, from Cedar Rapids, Iowa, received the prison term after entering a guilty plea on December 2, 2015, to being a prohibited person in possession of a firearm. He was prohibited from possessing firearms because he had a previous felony drug conviction and a misdemeanor domestic abuse assault conviction.
At the guilty plea, Hampton admitted he was prohibited from possessing a firearm because of the two convictions. A .22 caliber revolver was found in his home after the police was alerted to its presence. At sentencing, it was pointed out that Hampton had criminal convictions covering three decades, including: drug offenses; assaults; interference with official acts; OWIs; driving while suspended/revoked/ barred; criminal mischief; and, false reporting. The court noted Hampton’s criminal history plus his threatening and aggressive manner toward others then sentenced him to the maximum allowed within the sentencing range.
Hampton was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. He was sentenced to 33 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
Hampton is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Steve Young and investigated by Cedar Rapids Safe Streets Task Force. The task force is composed of representatives from the Federal Bureau of Investigation, United States Marshal Service, and the Cedar Rapids Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 14-CR-104.
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Felon Charged with Illegally Possessing a FirearmRead the Press Release
PITTSBURGH - A resident of Pittsburgh has been indicted by a federal grand jury in Pittsburgh on a charge of possession of a firearm by a convicted felon, United States Attorney David J. Hickton announced today.
The one-count indictment, returned on March 1, named William C. Miller, 22, of Pittsburgh, Pa, as the sole defendant.
According to the indictment, Miller was found in possession of a firearm on or about Sept. 29, 2015, following four felony convictions in 2014. 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 15 years and up to life in prison, a fine of $250,000.00, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history of the defendant.
Assistant United States Attorney Ryan K. Hart is prosecuting this case on behalf of the government.
This case is being prosecuted under Project Safe Neighborhoods, a collaborative effort by federal, state, and local law enforcement agencies, prosecutors, and communities to prevent, deter, and prosecute gun crimes. The Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Pittsburgh Bureau of Police 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.
East Texans Charged in Northeast Texas Opportunities, Inc. ConspiracyRead the Press Release
TEXARKANA, Texas - U.S. Attorney John M. Bales announced today that eleven individuals have been indicted on federal charges involving conspiracy to commit an offense and to defraud the U.S. government and theft of government property or money in the Eastern District of Texas.
The defendants were named in a three-count indictment returned by a federal grand jury on Feb. 17, 2016, charging them with conspiracy to commit an offense against and to defraud the U.S. government and theft of government property or money. These violations are alleged to have caused over $1.2 million in losses to a distributor of federal grant funds to the needy and elderly. Those charged are:
Cynthia Hillard Campbell, 54, of Mount Pleasant, Texas
Beverly Thomas Logan, 64, of Mount Vernon, Texas
Lana Bowie Dethrow, 58, of Honey Grove, Texas
Marco Antonio Alcaraz-Guerrero, 40, of Greenville, Texas
Paula Wallis Trantham, 50, of Winnsboro, Texas
Christy Lynn Shelby, 41, of Mount Vernon, Texas
Brenda McGill Fountain, 60, of Mount Vernon, Texas
Darlene Hargrave Hatcher, 61, of Mount Vernon, Texas
Karinda Anne Breaux, 52, of Mount Vernon, Texas
Pamela Powe Gossett, 61, of Pittsburg, Texas
Maria Delaluz Telles, 35, of Mount Vernon, TexasThe indictment was unsealed today after the defendants made initial appearances before U.S. Magistrate Judge Caroline Craven in the federal court in Texarkana.
Northeast Texas Opportunities, Inc. (NETO), headquartered in Mount Vernon, Texas, was a distributor of federal grant funds to the elderly and needy in an eight-county region. Those counties included: Delta, Franklin, Hopkins, Lamar, Morris, Rains, Red River, and Titus counties. NETO administered multiple programs, including Head Start Programs, Low-Income Energy Assistance Programs, Community Services Block Grant Programs, Title III Part-C Nutrition Services Programs, Nutrition Services Incentive Programs, and others. NETO received more than $3 million per year in federal funds from multiple agencies, including the U.S. Department of Transportation, U.S. Department of Health and Human Services, U.S. Office of Management and Budget (through the Agency of Children and Families), and the U.S. Department of Agriculture.
According to the indictment, it is alleged that beginning in January 2011 and continuing until June 2015, NETO employees and contractors conspired to defraud NETO of money by writing checks drawn on NETO accounts that they would often split among themselves, and convert those funds to personal use. It is alleged that NETO employees would also create fraudulent invoices from vendors to support and conceal those unauthorized checks. It is also alleged that NETO employees would overpay vendors and then require kickbacks from the vendors. The indictment alleges that NETO employees also used NETO funds to pay personal debts or other personal benefits. Campbell, Logan, Dethrow, Alcaraz, Trantham, Shelby, Fountain, Hatcher, Breaux, and Telles were NETO employees, and Gossett was a contract nurse to NETO. NETO ceased operations and shut its doors on Aug. 31, 2015 due to financial insolvency, employee malfeasance, and stoppage of funding sources due to discoveries during an audit and the ongoing criminal investigation.
If convicted of conspiracy to commit an offense against or defraud the U.S. government, the defendants each face up to five years in federal prison. If convicted of theft of government property or money, the defendants each face up to 10 years in federal prison.
This case is being investigated by the Federal Bureau of Investigation with assistance from the Texas Rangers and the Franklin County Sheriff’s Office. This case is being prosecuted by Assistant U.S. Attorney D. Ryan Locker.
An indictment is not evidence of guilt. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Conspirator in Counterfeit Credit Card Scheme Sentenced to Four Years in PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell III sentenced Zachary O’Brien, age 31, of Bronx, New York, today to four years in prison, followed by four years of supervised release, for bank fraud conspiracy and aggravated identity theft arising from a scheme to use counterfeit credit cards to purchase merchandise.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Brian Murphy of the United States Secret Service - Baltimore Field Office; Chief James W. Johnson of the Baltimore County Police Department; and Baltimore County State’s Attorney Scott Shellenberger.
According to his plea, from February 2014, through October 2014, O’Brien conspired with his co-defendants, Jerry Anderson, Steven Harris, Marquis Johnson, and Steven Tejeda, as well as others, to use stolen credit card and other personal information of customers of victim financial institutions to purchase items, including Apple iPhones, at retail locations in Maryland and elsewhere.
For example, on April 10, 2014, the Baltimore County Police Department (BCPD) responded to a fraud in progress at an Apple Store in Towson, Maryland, where Johnson and Harris purchased iPhones with Visa Vanilla gift cards. Johnson and Harris were arrested and the Visa Vanilla gift cards they used to purchase the phones were recovered and determined to be re-encoded with stolen credit information. A search of Harris’ phone revealed multiple texts between Harris and Anderson. Investigation determined that Anderson had supplied the re-encoded cards used by, or recovered from, Harris and Johnson.
On April 17, 2014, a search warrant was executed at Anderson’s home in Towson. Several items were recovered including: five Blackberry cell phones; two Apple iPhones; two apple iPads; an Apple computer; a shipping box and packaging for a credit card embossing machine; and miscellaneous gift cards. Anderson was at the residence at the time the search warrant was executed and a room keycard for a nearby hotel was recovered from his wallet. Later that day, a search warrant was executed at the hotel room. O’Brien and Tejeda were in the room when the search warrant was executed. The items recovered from the hotel room included: 30 counterfeit credit cards (re-encoded with stolen credit information); three Apple iPhone 5s; 43 blank counterfeit credit cards; eight pre-paid gift cards (unopened/in packaging); a credit card embossing machine; an Acer laptop computer; a credit card encoder; and over 50 credit cards embossed with the names of either O’Brien, Anderson, or Tejeda.
Forensic examinations of the computers and other digital media seized during the searches recovered emails containing personal identifying information (PII) of victims, including name, date of birth, and social security number; compromised bank credit card numbers and corresponding customers’ names; and a document containing over 25 credit card numbers and other PII. Further examination of records recovered during forensic examinations revealed that at least two of the credit card numbers were purchased from a known “carding site” where perpetrators of identity theft and related crimes can purchase stolen credit card numbers and other PII.
O’Brien admitted that he had traveled from New York City to the motel room, where Anderson brought him the laptop and “credit card machine.” Several counterfeit credit cards were made and distributed to people in the motel room, including O’Brien, and used to buy high end consumer electronics, which were then resold in New York.
The total actual loss resulting from the conspiracy which operated from at least February to October 2014 was $419,807.14, and the potential loss was over $1.8 million. The conspiracy involved over 250 victims.
Ronnie Mejia, age 26, of Bronx, New York; Marquis Johnson, age 21, of Severna Park, Maryland; and Jerry Anderson, age 29, of Towson, have pleaded guilty to their roles in the scheme. All are awaiting sentencing.
Steven Tejeda, age 23, of Richmond, Virginia, and Steven Harris, age 23, both of Bronx, New York; also pleaded guilty and were each sentenced to four years in prison.
The Maryland Identity Theft Working Group has been working since 2006 to foster cooperation among local, state, federal, and institutional fraud investigators and to promote effective prosecution of identity theft schemes by both state and federal prosecutors. This case, as well as other cases brought by members of the Working Group, demonstrates the commitment of law enforcement agencies to work with financial institutions and businesses to address identity fraud, identify those who compromise personal identity information, and protect citizens from identity theft.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Since the inception of FFETF in November 2009, the Justice Department has filed more than 12,841 financial fraud cases against nearly 18,737 defendants including nearly 3,500 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein commended the U.S. Secret Service, Baltimore County Police Department, and Baltimore County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Ayn B. Ducao and Zachary A. Myers, who are prosecuting the case.
Columbus Man Pleads Guilty to Producing Child Pornography Involving Three Young ChildrenRead the Press Release
ALBUQUERQUE – Samuel Elliott, 32, of Columbus, N.M., pleaded guilty today in federal court in Las Cruces, N.M., to producing child pornography involving three young children and possessing child pornography. Elliott entered his guilty plea under a plea agreement that permits him to appeal from a court order denying his motion to suppress evidence. Elliot will be permitted to withdraw his guilty plea if he prevails on his appeal.
Elliott’s guilty plea was announced by U.S. Attorney Damon P. Martinez, Special Agent in Charge Waldemar Rodriguez of Homeland Security Investigations (HSI) in El Paso, Tex., New Mexico State Police Chief Pete N. Kassetas and Las Cruces Police Chief Jaime Montoya.
Elliott was arrested on Nov. 21, 2014, on an eight-count indictment charging him with production and possession of child pornography. Counts 1 through 3 of the indictment alleged that between Dec. 2012 and July 2013, Elliott used three young children to engage in sexually explicit conduct for the purpose of producing visual depictions of such conduct. According to the indictment, two of the children were between one and five years of age and the third child was over the age of five years. The remaining five counts alleged that Elliott possessed child pornography in July 2013. The indictment asserted that Elliott committed all eight crimes in Luna County, N.M. A superseding indictment alleging the same charges was filed in July 2015.
“By his own admission, Samuel Elliott violated three young children and produced images and videos memorializing their abuse, stripping them of their innocence and forever tarnishing their childhood,” said U.S. Attorney Damon P. Martinez. “The physical, emotional, and psychological harm children suffer from sexual abuse and sexual exploitation through molestation and the production of child pornography is well known. This case is no different. The tremendous harm these young victims have suffered at the hands of Elliott will significantly impact them for the rest of their lives. I commend Homeland Security Investigations, the New Mexico State Police and Las Cruces Police Department for devoting tremendous time and energy to an investigation that exposed this despicable behavior and holding Elliott accountable for preying on these innocent children.”
HSI Special Agent in Charge Waldemar Rodriguez said individuals who produce child pornography scar children – psychologically, physically and emotionally – for life. And child predators who trade those images, victimize children again and again. “Child exploitation is a heinous crime,” said Rodriguez. “But rest assured that HSI special agents together with our law enforcement partners stand firm in our commitment to investigate and prosecute child predators to the fullest extent of the law.”
During today’s change of plea hearing, Elliott pled guilty to all eight counts of the indictment. In his plea agreement, Elliott admitted using a video camera to record a video of himself engaging in sexually explicit conduct with a child between one and five years of age. Elliott also admitted using a video camera to produce sexually explicit visual depictions of a sleeping child between five and eleven years of age. Elliott admitted committing these two crimes between Dec. 2012 and July 2013. Elliott also admitted that on Dec. 10, 2012, he used his iPhone to produce sexually explicit depictions of a third child who was between one and five years of age.
In his plea agreement, Elliott also acknowledged that in July 2013, the New Mexico State Police executed a search warrant at his residence and seized his iPhone, two desktop computers and a hard-drive. He also acknowledged that HSI executed a search warrant on his Dropbox online storage account. Elliott acknowledged that forensic examinations recovered thousands of images of child pornography from his iPhone; 48 images of child pornography from his hard-drive, more than 900 images of child pornography from his desktop computers, and 72 videos of child pornography from his Dropbox online storage account.
Elliott has been in custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled. At sentencing, Elliott faces a prison term of not less than 15 years and not more than 30 years on each of the three production of child pornography charges. He faces up to 20 years in prison on each of the five possession of child pornography charges. Elliott will have to serve at least five years of supervised release after completing his prison sentence. He also will be required to register as a sex offender.
In his plea agreement, Elliott agreed to pay $210,012 in restitution to each of the three victims associated with the three production of child pornography charges if they request restitution prior to sentencing. He also agreed to pay restitution of $25,000 to each victim associated with the five possession of child pornography charges who requests restitution prior to sentencing.
“This case is a great example of agencies working together to keep kids safe,” said New Mexico State Police Chief Pete Kassetas. “We will do whatever it takes to locate and apprehend child sexual predators!”
“Our computer forensics investigator spent a considerable amount of time delving into electronic files and recovering vital evidence,” said Las Cruces Police Chief Jaime Montoya. “This is a tremendous example of multiple law enforcement agencies working together to uncover evidence that helped build a strong case and ultimately led to today’s guilty plea.”
This case was investigated by the Las Cruces office of Homeland Security Investigations, the New Mexico State Police and the Las Cruces Police Department, all of which are members of the New Mexico Internet Crimes Against Children (ICAC) Task Force.
The case is being prosecuted by Assistant U.S. Attorney Alexander B. Shapiro of the U.S. Attorney’s Las Cruces Branch Office as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc.
The case also was brought as a part of the New Mexico Internet Crimes Against Children (ICAC) Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 82 federal, state and local law enforcement agencies associated with the New Mexico ICAC Task Force, which is funded by a grant administered by the NMOAG. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
Chicago Police Officer Sentenced to Two Years in Prison for Using Excessive Force Against a Handcuffed Store ClerkRead the Press Release
CHICAGO — A Chicago Police officer was sentenced today to two years in federal prison for using excessive force against an employee of a Southeast Side convenience store.
A store surveillance camera captured ALDO BROWN punching and kicking the clerk on Sept. 27, 2012. BROWN had entered the store while on duty and without a search warrant, and proceeded to interrogate the victim about whether he possessed narcotics or weapons. Brown punched the victim’s face, causing him to stumble backwards into a cooler. Brown later kicked the victim in his ribs while he was handcuffed and lying on the ground.
A federal jury last year convicted Brown, 39, of Chicago, on one count of using excessive force. U.S. District Judge Virginia M. Kendall imposed the 24-month sentence in federal court in Chicago.
“Even apart from the physical pain inflicted, defendant’s conduct has significant ramifications for the criminal justice system,” Assistant U.S. Attorney Jessica Romero argued in the government’s sentencing memorandum. “Sworn law enforcement officers are held to a higher standard of conduct, not merely because of the authority that they enjoy, but because society relies on their trustworthiness, their honor, and their integrity in upholding and enforcing the laws that protect the community.”
Evidence at trial revealed that the victim was compliant with Brown’s instructions and did not resist. Brown can be seen on the video placing the victim in handcuffs and forcing him to lie on the floor. After removing a gun from the victim’s back pocket, Brown kicked the victim in his ribs.
The sentencing was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; and Michael J. Anderson, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation. The government is represented by Ms. Romero and Assistant U.S. Attorney Lindsay Jenkins.
Chicago Man Found Guilty of Conspiring to Distribute Heroin and Fentanyl That Caused Multiple Deaths and OverdosesRead the Press Release
A man who conspired to distribute heroin, fentanyl, and crack cocaine that led to several overdoses and deaths was convicted by a jury today, after a 6-day trial in federal court in Cedar Rapids.
Max Julian Wright, age 35, from Chicago, Illinois, was convicted of two counts of distribution of fentanyl and one count of conspiring to distribute heroin, crack cocaine, and fentanyl that resulted in six serious bodily injuries and two deaths. The verdict was returned this afternoon following about 3 ½ hours of jury deliberations.
The evidence at trial showed that, between about 2013 and June 2015, Wright brought large quantities of heroin, fentanyl, and crack cocaine from Chicago to Cedar Rapids. Wright and other individuals, including DeShaun Anderson and Marcus Wallace, sold the drugs to various users in Cedar Rapids. Fentanyl is a synthetic opiate similar to heroin, but many times more potent than heroin. Witness testimony showed that by at least late 2014, the potency of the heroin being sold by Wright and Anderson increased, which led to at least six individuals immediately overdosing on the drugs. Testimony showed the users who overdosed lost consciousness nearly immediately after using the drugs, and had severely reduced breathing function due to the effects of the opiate drugs. One of the injured victims died two days later from the injuries sustained from using the drugs. Another victim died in early April of a mixed-drug overdose that included a toxic level of fentanyl in the victim’s blood. All of the deaths and overdose injuries found by the jury occurred between late February and mid-May of 2015.
The jury also found that Wright twice distributed fentanyl during controlled transactions conducted by police in May and June 2015. Evidence at trial showed the fentanyl was sold to a heroin customer of Wright’s, and that at the time the customer and the police believed the substance was heroin.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Wright remains in the custody of the United States Marshal pending sentencing. Wright faces a mandatory minimum sentence of life imprisonment, a $12,000,000 fine, $300 in special assessments, and a lifetime term of supervised release if he were released from prison.
The case was investigated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of the Cedar Rapids Police Department and the Drug Enforcement Administration (DEA) Task Force consisting of the DEA; the Cedar Rapids Police Department; the Linn County Sheriff's Office; the Marion Police Department; the Iowa City Police Department; and the Iowa Division of Narcotics Enforcement, and the Linn County Medical Examiner’s Office, and prosecuted by Assistant United States Attorneys Dan Chatham and Patrick Reinert.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 15-CR-00046-LRR.
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Cheektowaga Woman Sentenced on Drug 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 Ashley Marie Gnocchini, 29, of Cheektowaga, NY, who was convicted of conspiracy to possess with intent to distribute cocaine, was sentenced to 15 months in prison by U.S. District Judge Elizabeth Wolford.
Assistant U.S. Attorney Mary Catherine Baumgarten, who handled the case, stated that on November 15, 2010, law enforcement officers searched the residence of Ricky Lee Pyzikiewicz on Maurice Street in Buffalo. Officers seized baggies later determined to contain cocaine and marijuana as well as a rifle and ammunition. The search was part of an ongoing criminal investigation into narcotics trafficking by Pyzikiewicz and Gnocchini.
During the morning hours of November 15, 2010, officers set up an undercover purchase with the defendants. As Pyzikiewicz and Gnocchini drove to the area of Milestrip Road and McKinley Parkway in Hamburg, NY, Orchard Park, NY police officers pulled over a gray Saturn Ion the two were riding in. Pyzikiewicz appeared to hide something under his seat. A Hamburg Police Department canine unit responded to the scene, and the ensuing canine sniff was positive for the presence of narcotics. A subsequent search was conducted and quantities of cocaine were recovered.
The sentencing is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction Special Agent in Charge Delano A. Reid, the Orchard Park Police Department, under the direction of Chief Mark Pacholec, and the Hamburg Police Department, under the direction of Chief Gregory Wickett.
Ricky Lee Pyzikiewicz was convicted of conspiracy to possess with intent to distribute and to distribute cocaine and being felon in possession of a firearm and is scheduled to be sentenced by Judge Wolford on May 4, 2016 at 10:00 a.m.
California Man Sentenced to Prison for Federal Drug Trafficking Conviction in New MexicoRead the Press Release
ALBUQUERQUE – Phillip Tracy Rodgers, Sr., 61, of Long Beach, Calif., was sentenced this morning in federal court in Las Cruces, N.M., to 33 months in prison followed by two years of supervised release for his drug trafficking conviction.
Rodgers was arrested on Sept. 4, 2014, on a criminal complaint charging him with unlawfully possessing chemicals that could be used to manufacture a controlled substance. Rodgers was arrested by U.S. Border Patrol and DEA agents at the Border Patrol Checkpoint on I-10 in Las Cruces, after agents discovered that Rodgers was concealing gasoline canisters of chemicals used in the manufacture of PCP and methamphetamine. More specifically, Rodgers possessed 42 gallons of Diethyl Ether, ten gallons of Bromobenzene and five gallons of Cyclohexanone.
Rodgers was subsequently indicted on Dec. 10, 2014, and charged with possession of diethyl ether, while knowing that the chemical would be used to manufacture PCP. On April 28, 2015, Rodgers pled guilty to the indictment and admitted that on Sept. 4, 2014, he was in possession of 13 five-gallon gasoline containers containing Diethyl Ether, Bromobenzene, and Cyclohexanone when he was stopped at the U.S. Border Patrol checkpoint on I-10 in New Mexico. Rodgers admitted that he was transporting the chemicals from San Antonio, Texas, to Los Angeles, Calif., where he expected to be paid for delivering the chemicals.
This case was investigated by the Las Cruces office of the DEA and the Las Cruces Station of the U.S. Border Patrol. Assistant U.S. Attorney Anna R. Wright of the U.S. Attorney’s Las Cruces Branch Office prosecuted the case.
Buffalo Woman Admits Role in Murder in Connection with Rico Conspiracy ConvictionRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Alexis Mills, 23, of Buffalo, NY, pleaded guilty to RICO conspiracy before U.S. District Judge Richard J. Arcara. The charge carries a maximum penalty of life in prison and a $250,000 fine.“This case presents a version of the ‘black widow’ crime scenario occasionally seen by law enforcement,” said U.S. Attorney Hochul. “The defendant, taking advantage of a prior intimate relationship with the victim, induced the victim to open a locked door, allowing an accomplice to enter the premises and execute the victim.”
Assistant U.S. Attorney Thomas S. Duszkiewicz, who is handling the case, stated that the defendant was a member and associate of the LRGP Gang which operated primarily in the area of Lombard, Rother, Playter and Gibson Streets in the City of Buffalo. The gang is alleged to be an organization engaged in violent criminal activity, including the distribution of cocaine and crack cocaine and the use of firearms.
Between 2009 and January 23, 2012, the defendant conspired with others, including LRGP leader Dewayne Gray, to distribute crack cocaine. Mills also assisted Gray by managing 42 Memorial Drive in Buffalo which was used by the gang and Gray as a distribution point.In April 2011, the defendant and others, while at 318 Sobieski Street in Buffalo, agreed that a member of the Cold Springs Gang, a rival criminal organization, should be murdered in retaliation for the killing of Dewayne Gray's brother, Alonzo Scott, in March 2011. The individuals settled upon killing Amir Chambers, whom they believed to be associated with the Cold Springs Gang.
After a failed attempt to poison Amir Chambers, it was agreed that Chambers would be killed by shooting him. On April 20, 2011, Mills arranged to meet Amir Chambers at a residence at 111 Mills Street in Buffalo, taking advantage of a prior intimate relationship she had with him. Mills was accompanied by a co-defendant, who was to kill the victim once the victim allowed Mills inside the residence. As planned by Mills and the co-defendant, Chambers opened the residence door upon seeing the defendant, at which time the co-defendant killed Chambers by shooting him in the head. Mills, for her part, kicked the victim in the head following the shooting to ensure that Chambers was in fact deceased.
U.S. Attorney Hochul further stated “This case also shows precisely why this Office continues to target street gangs and narcotics trafficking organizations. Fortunately, with this conviction, one less gang member is now able to walk the streets of Buffalo.”
The plea is the result of an investigation by the Federal Bureau of Investigation Safe Streets Task Force, under the direction of Special Agent in Charge Adam S. Cohen, the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Office, the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Delano A. Reid, New York Field Office and the Buffalo Police Department, under the direction of Commissioner Daniel Derenda.
Sentencing is scheduled for July 14, 2016 at 12:30 p.m. before Judge Arcara.
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.
Basehor Business Owner Pleads Guilty to Not Paying Employment TaxesRead the Press Release
TOPEKA, KAN. - A woman who owned a home health care business in Basehor, Kan., pleaded guilty Wednesday to failing to pay more than $856,000 in federal taxes, U.S. Attorney Barry Grissom said.
Elizabeth Lucero, 53, Basehor, Kan., pleaded guilty to one count of willful failure to collect or pay over employment tax. In her plea, she admitted the crime occurred while she owned Sunshine Home Health Care in Basehor. The company had 65 to 70 employees and 1,400 patients.
From 2007 to 2011, Lucero’s company withheld payments from employee’s paychecks including federal income taxes, Medicare and Social Security taxes. Even though the company was growing and profitable, it made no payments to the Internal Revenue Service as required. Furthermore, against her accountant’s advice, Lucero had the company pay for hundreds of thousands of dollars of her personal expenses, including cash withdrawals at casinos for gambling and a $50,000 Cadillac Escalade.
In her plea, Lucero agreed to pay restitution of $856,784.
Sentencing will be set for a later time. She faces a maximum penalty of five years in federal prison and a fine up to $250,000. Grissom commended the Internal Revenue Service and Assistant U.S. Attorney Jabari Wamble for their work on the case.
Avon Property Developer Pleads Guilty to Exposing Workers to Asbestos During Removal OperationsRead 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 Anastasios “Taso” Kolokouris, 32, of Avon, NY, pleaded guilty to violating the Clean Air Act asbestos work practice standards involving asbestos removal and disturbance before Chief U.S. District Judge Frank P. Geraci. The charge carries a maximum sentence of five years in prison and a $250,000 fine.
“Simply to save money, this defendant knowingly exposed untrained, temporary workers to asbestos – a highly dangerous substance long known to cause cancer,” said U.S. Attorney Hochul. “While all of us welcome re-development in our community, it is critical to the health and safety of employees, as well as to residents living in nearby neighborhoods, that proper removal guidelines be strictly followed. This Office will continue to prosecute those who put profit ahead of people in this important area of law.”
Assistant U.S. Attorney Craig R. Gestring, who is handling the case, stated that the defendant was one of the owners of a warehouse located at 920 Exchange Street in Rochester. Acting on a complaint, an inspector from the New York State Department of Labor, Asbestos Control Bureau visited the Exchange Street warehouse on December 13, 2011. Upon arrival, the inspector observed people, including a 16 year old child, working in a large dumpster next to a loading dock. The inspector observed large quantities of white fibrous material, later confirmed to be asbestos, in and around the dumpster. He also noted that the people working in the dumpster did not have proper personal protective equipment, and that there was no asbestos warning signs on the dumpster.
The warehouse at 920 Exchange Street sits directly adjacent to residential homes on both the Exchange Street and Violetta Street sides, and there is a school bus stop directly outside its main gate.
When the Asbestos Control Bureau inspector made contact with the workers, they called Kolokouris to tell him about the inspection. However, the defendant told the workers not to speak with the inspector, and instead directed them to leave the area and lock the gate, which they did. While on site, however, the inspector took samples of the white fibrous material from in and around the dumpster. A lab later confirmed these samples to contain high levels of friable asbestos.
Criminal investigators from the United States Environmental Protection Agency (EPA) and the New York Department of Environmental Conservation (DEC) were notified and responded to secure the scene. A federal search warrant was obtained and federal and state agents entered the property wearing full containment suits. When agents entered the warehouse, they discovered over 90 bags of dry, friable asbestos inside the loading dock area. Agents also discovered evidence of unlawful abatement inside the warehouse involving asbestos contamination of more than 150,000 square feet. Agents took multiple samples from in and around the warehouse. These samples were analyzed by a lab, and they all tested positive for high levels of asbestos. Additional evidence located inside the warehouse connected Kolokouris to the illegal asbestos activities.
During the investigation, workers were interviewed and indicated that they knew Kolokouris from other odd jobs he had hired them to perform at other properties he is connected to. They reported that the defendant told them that he would pay cash to remove asbestos from the dumpster outside the warehouse because the container company would not remove the dumpster while it was full of asbestos. None of the workers that Kolokouris used were certified or trained to work with asbestos. They also confirmed that one of the workers was only 16 years old; and that Kolokouris had picked the child and his mother up from home and drove them to Rochester where he paid them to remove asbestos from the dumpster. Kolokouris never provided any of the workers with proper masks, protective suits, or other personal protective equipment. Instead Kolokouris only gave them simple dust masks.
In 1971, The United States Environmental Protection Agency designated asbestos as a hazardous air pollutant. There is well established scientific data documenting the harmful effects of asbestos. Exposure to asbestos can cause a debilitating lung disease called asbestosis; a rare cancer of the chest and abdominal lining called mesothelioma; and cancers of the lung, esophagus, stomach, colon, and other organs. Congress has found independently that "medical science has not established any minimum level of exposure to asbestos fibers which is considered safe to individuals exposed to fibers.”
The plea was the culmination of an investigation on the part of Special Agents of the U.S. Environmental Protection Agency - Criminal Investigation Division, under the direction of Special Agent-In-Charge Vernesa Jones-Allen, Investigators of the New York State Department of Environmental Conservation Police, BECI, under the direction of Captain John Burke, the New York State Department of Labor, Asbestos Control Bureau, under the direction of Eileen Franco, and Officers from the City of Rochester Police Department, under the direction of Chief Michael Ciminelli.
Sentencing has been set for June 1, 2016 at 3:30 p.m. before Judge Geraci.
Alexandria Man Sentenced to 5 Years for Receipt of Child PornographyRead the Press Release
ALEXANDRIA, Va. – Richard Robinson, 58, of Alexandria, was sentenced today to 60 months in prison and five years of supervised release for receipt of child pornography. Robinson was also ordered to register as a sex offender upon release from prison.
Robinson pleaded guilty on Dec. 7, 2015. According to court documents, from October 2010 to May 2015, Robinson used a peer-to-peer file sharing program to receive and collect child pornography videos and images, including videos of children as young as five years old being sexually abused. In total, Robinson’s child pornography collection included 326 images and 202 videos of children being sexually exploited, including images and videos depicting sadistic or masochistic conduct.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Clark E. Settles, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Washington, made the announcement after sentencing by U.S. District Judge Leonie M. Brinkema.
This case was investigated by HSI with assistance from the Northern Virginia Internet Crimes Against Children Task Force. Assistant U.S. Attorney Kellen S. Dwyer prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:15-cr-329.
1 March 2016
Woman Pleads Guilty to Monroe County-Based Sex Trafficking ConspiracyRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that a South Carolina woman who resided in the Stroudsburg area at the time of the offense, pleaded guilty today before U.S. District Court Judge Malachy E. Mannion in Scranton, to participating in a sex trafficking conspiracy in which young women were threatened, forced and coerced into engaging in prostitution in northeastern Pennsylvania.
According to United States Attorney Peter Smith, the defendant, Selena Bayer-Davis, age 21, admitted to conspiring with others to commit sex trafficking crimes between 2012 and 2014.
Bayer-Davis was indicted along with six other people by a federal grand jury in Scranton in September 2015, as a result of an investigation by the Federal Bureau of Investigation, the Pennsylvania State Police, Maine State Police, the Monroe County District Attorney’s Office, and local police in Monroe County.
The indictment alleges that Bayer-Davis and her co-defendants joined and participated in a street gang known as the Black P-Stones that male gang members were “beaten-in” to the gang and female members were “sexed-in” to the gang.
The indictment further alleges that some females were “sexed-in” to the gang by being forced to engage in sex with male gang members; recruited and coerced to engage in prostitution; advertised as adult escorts on a website; provided with heroin and other drugs; and placed in various are hotels/motels to work as prostitutes. Bayer-Davis admitted that she and others used threats, force, and intimidation to coerce females to engage in prostitution.
Assistant U.S. Attorney Francis P. Sempa is prosecuting the case.
Bayer-Davis faces a mandatory minimum sentence of 15-years in prison and a possible life sentence for her participation in the sex trafficking of others.
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."
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is life 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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United States Sues Iowa CAFO and its Owner for Alleged Clean Water Act Violations, including Discharging Manure into a Water of the United StatesRead the Press Release
Meadowvale Dairy, LLC (Meadowvale), and its owner, Sjerp Ysselstein, have been sued by the United States on four counts of alleged Clean Water Act violations. The claims are contained in a Civil Complaint filed on February 26, 2016, in United States District Court in Sioux City. The Complaint alleges that Ysselstein operates Meadowvale, which has concentrated animal feeding operations (CAFOs) near Rock Valley.
The Complaint alleges that Meadowvale Dairy, LLC owns and operates two National Pollutant Discharge Elimination System (NPDES) permitted, interconnected CAFOs as part of a dairy operation with a combined total of approximately 10,000 head of cattle on a combined 185 acres in northwestern Iowa.
On June 19, 2014, the Iowa Department of Natural Resources (State) conducted an inspection at one of Meadowvale’s CAFOs and observed manure and process wastewater spilling over the walls of a concrete bunker used to store manure. The manure and process wastewater then discharged into an unnamed tributary of the Big Sioux River.
Other discharges into a tributary of the Big Sioux River occurred on July 21, 2014, and July 22, 2014. Specifically, on July 21, 2014, the State received reports of an unauthorized discharge into a tributary of the Big Sioux River. Then, on July 22, 2014, the State observed manure laden process wastewater flowing into the same tributary. The State sampled the tributary at four downstream locations, and the results at all four locations showed elevated levels of Escherichia coli (E.coli), a pathogen found in manure and process wastewater.
The Complaint also alleges that Meadowvale failed to comply with certain requirements of its NPDES-permit, namely, maintaining depth-markers or emptying settled open feedlot effluent basins (SOFEBs). SOFEBs store solids and wastewater to prevent the discharge of these pollutants into surrounding waters.
Since 2001, the State has issued 12 notice-of-violations to Meadowvale for violations of its permit, including repeated failures to maintain adequate storage capacity in the facilities’ SOFEBs. The State has reported discharges from the facilities into waters of the United States on at least five separate occasions with high levels of E.coli, fecal coliform, ammonia, biochemical oxygen demand (BOD) and total suspended solids (TSS). Meadowvale’s unauthorized discharges have resulted in three penalty actions by the State in 2003, 2005 and 2010. On at least two separate dates, Meadowvale’s discharges also resulted in reported fish kills.
In the Complaint, the United States seeks civil penalties and injunctive relief. A trial date has not been set.
As with any civil case, a Complaint is merely an allegation and a defendant is presumed not liable until shown otherwise.
The case is being handled by Zachary N. Moor, Trial Attorney for the Environmental Enforcement Section of the Environment and Natural Resources Division, Christopher Muehlberger, Attorney, Office of Regional Counsel, United States Environmental Protection Agency Region 7, and Assistant United States Attorney Timothy L. Vavricek. The case was investigated by the Environmental Protection Agency.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 5:16-cv-4016-LTS.
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United States Attorney’s Office announces creation of the Women’s Leadership Initiative, 2016Read the Press Release
Indianapolis – United States Attorney Josh J. Minkler, announced the creation of a Women’s Leadership Initiative today that will bring together employees of the United States Attorney’s Office, the Indiana Federal Community Defenders, the U.S. District Court, and federal investigative agencies to encourage a spirit of leadership through bi-monthly presentations aimed at enriching the skills these public servants bring to bear. Minkler is pleased to welcome several distinguished guest speakers who have been invited to share personal insight about the value of mentor/mentee relationships, professionalism, leadership, the art of a balanced life, and effective communication, among other topical discussions.
Speakers include:
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The Honorable Sarah Evans Barker, U.S. District Court, SDIN
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The Honorable Tanya Walton Pratt, U.S. District Court, SDIN
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The Honorable Jane Magnus Stinson, U.S. District Court, SDIN
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John Pistole, President of Anderson University, formerly employed as the Executive Director of TSA and the Deputy Director of the FBI
The Women’s Leadership Initiative is managed and directed by a steering committee comprised of female assistant U.S. attorneys and support staff. Its members unanimously agreed to devote a significant portion of their collective time together to continue serving the community at large. To this end, in January the members donated cold medicine and cellular telephones to the Julian Center and travel-size amenities to the Centers of Hope—organizations found within hospitals that offer solace and treatment to victims of sexual assault. At the March meeting, members will be invited to attend a human trafficking workshop in Fishers, Indiana. The Women’s Leadership Initiative members are also excited to “RAISE THE BAR” in April 2016, in celebration of National Volunteer Month, when its members will participate in the following community service outreach efforts:
April 6, 13, 20, 27, 2016: Art with a Heart, Mentor/Mentee Program at Daniel Webster Elementary School, IPS #46
April 20: Gleaners Food Bank
April 28: Southeast Side Community Organization Park Clean-Up.
Minkler encourages Women’s Leadership Initiative members to continue acting as catalysts for good and challenges the legal community and community at large to continue “RAISING THE BAR” in Indianapolis, Indiana.
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USP Hazelton inmate charged with causing death of fellow prisonerRead the Press Release
CLARKSBURG, WEST VIRGINIA – A federal grand jury returned an indictment today charging Marricco Sykes, 36, an inmate at the United States Penitentiary at Hazelton, with causing the death of a fellow prisoner, United States Attorney William J. Ihlenfeld, II, announced.
Sykes is alleged to have strangled the fellow prisoner during a physical altercation in late 2015. Following an investigation by the Federal Bureau of Investigation and the USP Hazelton Special Investigative Services Unit, Sykes is charged with one count of “First Degree Murder.” He faces life imprisonment or the death penalty as well as a fine of up to $250,000.
The grand jury also returned indictments charging several other federal inmates within the Northern District of West Virginia with offenses including illegal threats, assault, and unlawful possession of weapons.
Jeremy E. Smith, 36, an inmate at the United States Penitentiary at Hazelton, is alleged to have written letters threatening to use explosives to destroy government buildings in Philadelphia, New York, Chicago, Boston and Washington, D.C. He is further alleged to have written a letter threatening the lives of President Barack Obama and former Secretary of State Hilary Clinton. Following an investigation by the United States Secret Service and the USP Hazelton Special Investigative Services Unit, Smith is charged with one count of “Threat to Damage Buildings by Use of Explosives” for which he faces up to 10 years in prison. He is further charged with one count of “Threats Against the President,” and one count of “Threats Against Member of Immediate Family of Former President.” He faces up to five years in prison on each of these counts. He also faces a fine of up to $250,000 on each of the three counts.
Antonio Lee, 33, an inmate at the Federal Correctional Institution at Hazelton, was allegedly discovered inside the prison in unlawful possession of a handcrafted weapon made from sharpened plastic. Following an investigation by the Federal Bureau of Prisons and the FCI Hazelton Special Investigative Services Unit, Lee is charged with one count of “Possession of Contraband in Prison – Weapon.” He faces up to five years in prison and a fine of up to $250,000.
Arnaldo Martinez-Gomez, 30, an inmate at the United States Penitentiary at Hazelton, is alleged to have assaulted a fellow prison during a physical altercation. Following an investigation by the Federal Bureau of Prisons and the USP Hazelton Special Investigative Services Unit, Gomez is charged with one count of “Assault with a Dangerous Weapon with Intent to Cause Bodily Harm,” and one count of “Possession of a Prohibited Object – Weapon.” He faces up to 10 years in prison on the assault charge and up to five years in prison on the prohibited object charge. He also faces a fine of up to $250,000 on each of the two counts.
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 defendants.
Assistant U.S. Attorney Sarah Montoro is prosecuting Smith, Assistant U.S. Attorney David Perri is prosecuting Lee, and Assistant U.S. Attorney Andrew Cogar is prosecuting Gomez and Sykes on behalf of the government.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
U.S. Attorney Ortiz Conducts Review of Disability Access to Polls on Super TuesdayRead the Press Release
BOSTON – United States Attorney Carmen M. Ortiz announced today that her office’s Civil Rights Unit conducted a review of all polling locations in Lawrence and Barnstable to determine whether the polls are being operated in compliance with the Americans with Disabilities Act of 1990 (ADA).
“Our constitution gives Americans the right to vote, but that right is meaningless if there are physical barriers that prevent people from casting their ballot,” said U.S. Attorney Ortiz. “Disability rights have been a major focus of my office’s civil rights work in recent years, and my office will continue to vigorously ensure compliance with the ADA in Massachusetts.”
The U.S. Attorney’s Office selected these locations for review to ensure that they are accessible to the large numbers of residents who are expected to vote at these polling locations during the Presidential primary election on Super Tuesday. In a study following the previous Presidential election, the Government Accountability Office found that only 27% of polling places had no potential impediments to access by people with disabilities, meaning 73% of polling locations contained architectural barriers to voting. This initiative is being conducted in accordance with the Department of Justice’s statutory responsibility to review compliance with federal law and not in response to any specific complaint against any of the polling locations.
Federal law prohibits discrimination on the basis of disability by the owners and operators of places of public accommodation, including polling locations, and the right to participate in state and local government programs and services. The U.S. Attorney’s Office periodically undertakes ADA compliance reviews to ensure equal access for people with disabilities.
As part of its Super Tuesday ADA compliance review, attorneys, architects, and staff from the U.S. Attorney’s Office and the Department of Justice surveyed every polling place in Lawrence and Barnstable. If these site visits reveal that a particular polling location is not in compliance with the ADA, the U.S. Attorney’s Office will notify the appropriate state and local official of the violation and will provide a timeframe to correct the issue(s). The goal is to ensure that all polling locations are fully compliant in time for the Presidential election on Nov. 8, 2016.
The Civil Rights Unit of the U.S. Attorney’s Office was established in 2015 with the mission of enhancing federal civil rights enforcement. For more information on the Office’s civil rights efforts, please visit www.justice.gov/usao-ma/civil-rights.
Two Sentenced in Identity Theft SchemeRead the Press Release
HOUSTON – Two men have been ordered to federal prison following their convictions in a scheme in which they used stolen personal information to purchase several high end vehicles in the Houston area, announced U.S. Attorney Kenneth Magidson.
Joel Cruz, 28, of Houston, and Darrion Wells, 27, of Beaumont, both pleaded to conspiracy to commit wire fraud and aggravated identity theft on May 28, 2015, and June 12, 2015, respectively.
Today, U.S. District Judge Nancy F. Atlas, who accepted the pleas, handed each man a sentence of 24 months for the conspiracy as well as an additional 24 months for the aggravate identity theft which must be served consecutively for a total of 48 months in federal prison. They were further ordered to pay $485,136.62 in restitution and must serve three years of supervised release following their release from prison.
Cruz and Ruffin, along with Devante Ruffin, 22, of Houston, have admitted they stole apartment complex leasing records to obtain the personal identifying information of the tenants. They then used that stolen information to make false driver’s licenses and other means of identification. Using that identification, they applied for loans to purchase high end automobiles at car dealerships in the Houston area.
The defendants took possession of the cars but never made payments on the fraudulently obtained loans. In total, the evidence demonstrated that they purchased 12 cars in this manner valued at approximately $480,000.
Cruz and Wells will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future. Ruffin, also in custody, is scheduled to be sentenced May 3, 2016.
The charges are the result of an investigation conducted by the U.S. Postal Inspection Service and the Houston Police Department. Assistant U.S. Attorney Jay Hileman is prosecuting the case.
Sugar Grove Woman Pleads Guilty to Weapons ChargeRead the Press Release
ABINGDON, VIRGINIA – United States Attorney John P. Fishwick Jr. announced today the guilty plea of a Sugar Grove, Virginia woman on an illegal weapons charge.
Toby Anne Mock, 44, of Sugar Grove, Va., waived her right to be indicted and pled guilty today in the United States District Court for the Western District of Virginia in Abingdon to a one count Information charging her with being a previously convicted felon illegally in possession of firearm.
“Keeping prohibited persons from possessing illegal firearms is a priority for this United States Attorney’s Office,” United States Attorney John P. Fishwick Jr. said today. “Keeping communities safe from violence starts with keeping illegal firearms off the streets, even if we have to do that one gun at a time.”
The investigation of the case was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Special Assistant United States Attorney Kathleen Carnell is prosecuting the case for the United States.
Stockton Bank Robber Sentenced to over 15 Years in PrisonRead the Press Release
SACRAMENTO, Calif. — Phillip Dale Selfa, 63, of Stockton, was sentenced today to 15 years and eight months in prison for six counts of bank robbery, United States Attorney Benjamin B. Wagner announced.
On July 7, 2015, Selfa pleaded guilty to robbing the following banks:
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December 27, 2010, Bank of Stockton in Pine Grove for $2,000;
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January 13, 2011, Bank of the West in Lockeford for $4,000;
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February, 25, 2011, Farmers and Merchants Bank in Linden for $351;
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March 30, 2011, Westamerica Bank in Turlock, CA for $4,500;
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April 29, 2011, Bank of the West in Ripon for $3,050, and
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May 5, 2011, Bank of the West in Lodi for $4,037.
In each of his six robberies, Selfa carried boxes, bags, and satchels into the financial institutions. He also displayed a purported detonator during his robberies and claimed to bank personnel that he could set off explosives that were supposedly in his boxes and bags that he left in the banks as he exited. After each robbery, each bank was closed and streets neighboring the banks were barricaded for bomb squad personnel. The bombs and detonators were each determined to be fake. During his robberies, Selfa also wore various disguises and head coverings.
This case was the product of an investigation by the FBI with the assistance from the Stockton Police Department, the Modesto Police Department, the Amador County Sheriff’s Office, the San Joaquin County Sheriff’s Office, and the Stanislaus County Sheriff’s Office. Assistant U.S. Attorneys William Wong and Michelle Rodriguez prosecuted the case.
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Stamford Podiatrist Who Submitted False Claims is SentencedRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that AMIRA MANTOURA, 53, of Greenwich, was sentenced yesterday by U.S. District Judge Michael P. Shea in Hartford to three years of probation, and a fine that will result in MANTOURA paying three times the amount of money she stole by submitting false claims to Medicare and other health insurance plans. MANTOURA also will be required to perform 200 hours of community service as part of her sentence.
On October 5, 2015, MANTOURA pleaded guilty to one count of making a false statement to the Medicare program.
According to court documents and statements made in court, MANTOURA, a Doctor of Podiatric Medicine, operates a podiatry practice at 95 Morgan Street in Stamford. As a podiatrist, she was fully aware and understood the procedure to perform a “nail avulsion” and she understood that a nail avulsion was a surgical procedure to treat an ingrown toenail. Between January 2009 and August 2013, MANTOURA knowingly submitted materially false claims to the Medicare program and to private insurance companies to obtain payment for a nail avulsion when she knew that she had not performed a nail avulsion. Rather than perform a nail avulsion, in most of these instances MANTOURA had merely provided her patients with routine foot care including clipping the patients’ toenails.
As a result of submitting false claims to the Medicare and Medicaid programs and private insurance companies, MANTOURA was paid approximately $206,000.
As part of her sentence, MANTOURA was required to pay approximately $64,000 in restitution to private health insurance plans. In a related civil settlement, MANTOURA paid $288,538.24 to the government in connection with her submission of false claims to the Medicare and Medicaid program, which was twice the amount of false claims MANTOURA submitted to those programs. As part of her sentence, MANTOURA was ordered to pay an additional $266,000 fine, which will result in MANTOURA paying a total of $618,000, or three times the amount she gained from her fraud.
MANTOURA is ordered to pay the restitution within seven days and to pay her fine within 90 days.
On October 1, 2015, MANTOURA was excluded from the Medicare program and will no longer be permitted to submit federal health care claims.
This matter was investigated by the U.S. Department of Health and Human Services, Office of Inspector General. The case was prosecuted by Assistant U.S. Attorneys David J. Sheldon and Anne F. Thidemann.
U.S. Attorney Daly encourages individuals who suspect health care fraud to report it by calling the Health Care Fraud Task Force at (203) 777-6311 or. 1-800-HHS-TIPS.
St. Louis Joins Justice Department's Violence Reduction NetworkRead the Press Release
WASHINGTON – Deputy Attorney General Sally Q. Yates, Assistant Attorney General Karol V. Mason of the Office of Justice Programs (OJP) and United States Attorney Richard Callahan today announced that New Orleans, Louisiana; St. Louis, Missouri; and Milwaukee, Wisconsin, will join ten existing sites which have adopted crime-fighting strategies as part of the Violence Reduction Network (VRN). The initiative is a comprehensive approach to reducing violent crime that complements the Attorney General’s Smart on Crime Initiative and leverages existing Justice Department resources in communities around the country.
"It has been only a year-and-a-half since we launched the first Violence Reduction Network," said Deputy Attorney General Sally Quillian Yates. "In just that short period of time, the partnerships we have built through VRN have helped to reduce crime rates. These results could only have happened through the kind of creative collaboration promoted through the VRN."
Today’s announcement was made before an audience of U.S. Attorneys, police chiefs, local leaders from the new and existing VRN sites and department officials. Through VRN, the Justice Department enlists tactical and operational expertise available from the Bureau of Justice Assistance, the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the United States Marshals Service, the Drug Enforcement Administration, the Executive Office of the United States Attorneys, the Office of Community Oriented Policing Services and the Office on Violence Against Women.
In 2014, VRN was launched in Camden, Chicago, Detroit, Wilmington, and Oakland and Richmond, California. In September 2015, VRN was expanded to Compton, California; Flint, Michigan; Little Rock and West Memphis, Arkansas; and Newark, New Jersey.
VRN’s core components include customized training and technical assistance; a strategic site liaison to guide the coordination of Justice Department resources; tools to enhance information sharing, including peer-to-peer exchanges; community practice collaboration among existing sites and an annual summit in September.
Shad Huston Sentenced for Corruption on the Rocky Boy's Indian ReservationRead the Press Release
GREAT FALLS - The United States Attorney’s Office announced that Shad James Huston, 40, of Havre, Montana, was sentenced on February 29, 2016, before U.S. District Judge Brian M. Morris. Huston was sentenced to 41 months of prison for Bribery, False Claims Act Conspiracy, and failure to file Currency Transaction Reports as required by law. In addition, the district court ordered Huston to pay $500,000 in restitution.
The Chippewa Cree Tribe of the Rocky Boy’s Indian Reservation is located in north-central Montana and has a population of 2,500 members. Between October 2007 and September 2012, the Chippewa Cree Tribe received $420,439,495 in federal funding. In addition, the Tribe received a $25,000,000 insurance payment after the flooding of 2010, and $8,400,000 under the Cobell v. Salazar settlement in July of 2012. The total money received by the Tribe, during this five-year time period, was over $450,000,000.
Huston became associated with a local trucking operation, known as K Bar K Trucking. While operating the company, Huston engaged in a “pay-to-play” scheme, where he was awarded no-bid, sole-source hauling contracts with the Tribe. In exchange for the contracts, Huston paid Tim Rosette, Director of the Roads Branch, cash kick-backs of $100 to $200 on a per truck, per trip basis. The financial records confirm this pattern, showing that Huston companies withdrew approximately $238,000 in cash, in close proximity to contract payments. When questioned by business partners, Huston explained he would falsely inflate invoices in order to pay bribes to Rosette, and others, in exchange for contracts with the Tribe. Rosette was previously sentenced to prison in December of 2015.
In addition to submitting false claims and bribing Tim Rosette, Huston also operated various businesses, including Leon’s Buy and Sell in Havre, Montana. These businesses were registered as Money Service Businesses with the Financial Crimes Enforcement Network (FinCEN), of the U.S. Department of Treasury. FinCEN’s mission is to safeguard the financial system from illicit use and combat money laundering and promote national security through the collection, analysis, and dissemination of financial intelligence and strategic use of financial authorities.
In order for FinCEN to track money laundering and other fraud, Huston, as a money service business, was required to file Currency Transaction Reports (“CTRs”) when cashing checks for others in excess of $10,000. Huston cashed checks in excess of $10,000 for Hailey Belcourt, who was previously indicted and convicted for fraud, and other individuals implicated in fraud on the Rocky Boy’s Indian Reservation. All total, Huston cashed 19 checks that should have been reported, but were not. This failure to report the transactions was done with the deliberate intent to avoid exposing the transactions to FinCEN.
Huston’s convictions for corruption and failing to file CTRs is the latest in a series of prosecutions and convictions relating to public corruption, fraud, and theft in federal grants, contracts, and programs brought by the investigators and prosecutors of the U.S. Attorney’s Guardians Project, an anti-corruption strike force created in 2011. The Huston case was investigated by the Department of Interior Office of Inspector General and the Internal Revenue Service, Criminal Division.
San Francisco Resident Pleads Guilty to “Straw Hat Bandit” Bank RobberiesRead the Press Release
SAN FRANCISCO - Richard Laurence Stewart pleaded guilty today to robbing four San Francisco banks announced Acting United States Attorney Brian J. Stretch and Federal Bureau of Investigation Special Agent in Charge David J. Johnson. As part of the plea agreement, Stewart acknowledged his role in committing a string of additional bank robberies throughout San Francisco.
Stewart, 52, of San Francisco, was indicted on October 27, 2015, and charged with four counts of bank robbery or attempted bank robbery, in violation of 18 U.S.C. § 2113(a).
According to today’s plea agreement, Stewart admitted robbing San Francisco banks on May 12, 2015; May 13, 2015; October 14, 2015; and October 16, 2015. The agreement also describes Stewart’s robberies of an additional eight banks in San Francisco from October 27, 2014, through February 27, 2015.
According to papers filed by the government, the FBI was investigating the bank robberies of the so-called Straw Hat Bandit since October of 2014. The government documents describe the FBI’s investigation of the person who wore a number of different disguises during bank robberies. The disguises included glasses, hats, a black curly wig, a fake beard and mustache, and a single surgical glove. According to these documents, Stewart eventually was identified as the bandit after a witness saw him leaving the scene of one of the robberies in a taxicab. Stewart was arrested on October 18, 2015, after authorities linked him to the taxicab request.
Stewart faces a maximum sentence of 20 years’ imprisonment and $250,000 on each of the bank robbery counts. Further, additional terms of supervised release, penalties, and restitution may be ordered upon conviction. However, any sentence following this conviction will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553. Sentencing is scheduled to take place before the Honorable William Alsup on June 14, 2016.
The case is being prosecuted by Assistant U.S. Attorney Shailika Kotiya with the assistance of Patricia Mahoney. The prosecution is the result of an investigation by the FBI and the San Francisco Police Department.
San Antonio Doctor Found Guilty of Failure to Pay Withholding Taxes and Tax EvasionRead the Press Release
Fifty-nine-year old Anthony P. Sertich, Jr., faces up to 55-years in federal prison after a jury in San Antonio convicted him today of ten counts of failure to truthfully account for and pay withholding taxes and one count of tax evasion, announced United States Attorney Richard L. Durbin, Jr., and Internal Revenue Service-Criminal Investigation (IRS-CI) Special Agent in Charge William Cotter.
According to court documents, Sertich was a medical doctor who was the Member, Director and President of Advanced Artistic Facial Plastic Surgery of Texas, PA (hereinafter AAFPST) and South Texas Otorhinolaryngology, PA (hereinafter STO). During the calendar years 2008 through 2010, Sertich failed to pay over $226,000.78 to the Internal Revenue Service in payroll taxes withheld from AAFPST’s employees’ paychecks.
In addition, Sertich was found guilty of tax evasion. Between 2002 and 2010, Sertich accrued $2,927,366.45 in unpaid payroll taxes penalties and interest for AAFPST and STO. Sertich evaded paying the taxes by withholding and keeping money, which should have been paid to the IRS, and by repeatedly filing bankruptcy to take unfair advantage of the automatic stay of creditors.
Instead of paying the payroll taxes, Sertich paid himself millions of dollars in salary, which in turn paid for personal expenses such as a large mortgage and interest payments, real estate tax payments and alimony payments. Sertich also filed four personal and one corporate bankruptcy petitions, all but one of which was subsequently dismissed by the court.
“Dr. Anthony P. Sertich, Jr., deliberately evaded paying federal payroll taxes for over eight years, cheating the tax system and ultimately, all other taxpayers. He withheld money from his employees’ pay, which he applied to his own use, and abused the bankruptcy process to defeat possible collection efforts. Today’s verdict holds him accountable for his criminal conduct,” said U.S. Attorney Durbin.
“The jury’s guilty verdict of Dr. Anthony P. Sertich Jr. represents IRS Criminal Investigation's continued commitment to identifying and prosecuting those individuals who evade the tax laws,” said Special Agent in Charge William Cotter of the Internal Revenue Service - Criminal Investigation, San Antonio. “The tax law is very clear – every employer is responsible for withholding employment taxes from the salaries of their employees. Those employers who do not withhold employment taxes are breaking the law.”
Sertich remains on bond pending sentencing set for May 23, 2016.
This case was investigated by special agents with the Internal Revenue Service-Criminal Investigation. Assistant United States Attorney William R. Harris prosecuted this case on behalf of the Government.
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