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Wednesday 13 January 2016
Amherst Man Sentenced for Possession of Child PornographyRead 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 Timothy Murphy, 50, of Amherst, NY, who was convicted of possession of child pornography, was sentenced to 36 months in prison by U.S. District Judge Elizabeth A. Wolford.Assistant U.S. Attorney Scott S. Allen, Jr., who handled the case, stated that on October 15, 2014, law enforcement officers executed a search warrant at the Kings Highway residence of the defendant who worked as a technician for the Kenmore Tonawanda School District at the time. The officers recovered a computer being used by Murphy. A subsequent forensic examination determined that the computer contained approximately 123 images and one video of child pornography. Some of the images depicted children under the age of 12 years old. Some of the images also contain depictions of violence.
The sentencing is the culmination of an investigation by Immigration and Customs Enforcement, Homeland Security investigations, under the direction of Special Agent in Charge James C. Spero.
Allentown City Controller Charged in ConspiracyRead the Press Release
PHILADELPHIA – Mary Ellen Koval, 64, of Allentown, PA, was charged today by Information with conspiracy to commit honest services fraud, announced United States Attorney Zane David Memeger.
According to the information, between January 7, 2014 and at least December 8, 2015, Koval, in her position as Allentown City Controller, conspired with Public Official #3 and others to knowingly devise a scheme to defraud the City of Allentown and its citizens of the honest services of Public Official #3 and of Koval through bribery and kickbacks. Public Official #3 and Koval requested and received campaign contributions as incentives and rewards for past, continued, and future official actions that Public Official #3, Koval, and others took, attempted to take, agreed to take, and caused, attempted to cause, and agreed to cause the City of Allentown to take.
If convicted the defendant faces a statutory maximum sentence of 20 years in prison, a fine, three years of supervised release, and a $100 special assessment.
This case is being investigated by the Federal Bureau of Investigation, the Internal Revenue Service Criminal Investigations, and the Pennsylvania State Police. It is being prosecuted by Assistant United States Attorneys Joe Khan and Nancy Beam Winter.
An Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Akron man faces federal charges for firearms and FentanylRead the Press Release
A federal grand jury returned a two-count indictment charging Stuart J. Boykin, 39, of Akron, with possession with the intent to distribute fentanyl and heroin, and being a felon in possession of firearms and ammunition, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio.
Count 1 charges Boykin of possession with the intent to distribute fentanyl/heroin on November 19, 2015. Count 2 charges Boykin with possessing firearms and ammunition on that same date, after having been convicted in Summit County Court of Common Pleas Case No. CR-1995-06-1635A on November 20, 1995, of felonious assault.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal records, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigation preceding the indictment was conducted by the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Linda H. Barr.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
12 Arrested in Marijuana Trafficking RingRead the Press Release
LAREDO, Texas – A total of 12 people have been arrested in multiple cities on charges alleging their participation in a marijuana conspiracy, announced U.S. Attorney Kenneth Magidson along with Drug Enforcement Administration (DEA) Special Agent in Charge Joseph M. Arabit and Homeland Security Investigations (HSI) Special Agent in Charge Shane Folden.
The indictment, returned under seal Nov. 24, 2015, and unsealed as to each defendant upon their arrest, charges one count of conspiracy to possess with the intent to distribute marijuana and five counts of possession with intent to distribute marijuana, all dating back to July 2013.
Among those taken into custody today were Rene Armenta, 33, Yolanda Armenta, 43, and Pedro Vazquez, 33, of Laredo, Texas; Jose Luis Carvajal, 46, Juan Carlos Carvajal, 26, of San Antonio; Juan Ramon Castillo, 41, of Dallas; Isidro Cruz-Sanchez, 40, Hector Garcia-Rios, 30, Eduardo Hurtado de Anda, 39, and Ruben Rodriguez-Rodriguez, 38, of Nuevo Laredo, Mexico.
Those arrested in Laredo are expected to appear before U.S. Magistrate Judge J. Scott Hacker tomorrow morning. Those arrested in other locations will make their appearance there and later appear in Laredo federal court.
Two others - Rogelio Herrera, 20, of Laredo; and Juan Carlos Duran, 31, of Nuevo Laredo, were arrested yesterday. They made their initial appearances before Judge Hacker, at which time they were ordered temporarily into custody pending a detention hearing.
If convicted of the cocaine conspiracy charge, all defendants face a minimum of 10 years up to life imprisonment and a $10 million fine. The substantive counts carry up to 40 years in prison and a $5 million fine.
The case was result of a multi-year Organized Crime Drug Enforcement Task Force investigation conducted by the DEA, HSI and the U.S. Marshals Service Gulf Coast Fugitive Task Force. Assistant United States Attorneys Mark E. Donnelly and Arthur Jones are prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.
Tuesday 12 January 2016
Zuni Pueblo Man Pleads Guilty to Federal Murder ChargeRead the Press Release
ALBUQUERQUE – Dusty Lee Chavez, 23, a member and resident of Zuni Pueblo, N.M., pled guilty today in federal court in Albuquerque, N.M., to a second degree murder charge. Under the terms of his plea agreement, Chavez will be sentenced within the range of 228 to 276 months in federal prison followed by a term of supervised release to be determined by the court.
Chavez and his co-defendant Douglas Burt, 19, also a member and resident of Zuni Pueblo, were arrested in Nov. 2014, on a criminal complaint charging them with murdering a man on Oct. 28, 2014, in the Zuni Indian Reservation in McKinley County, N.M. Burt and Chavez were subsequently indicted on murder charges on Nov. 19, 2014.
During today’s change of plea hearing, Chavez pled guilty to a felony information charging him with second degree murder. In entering the guilty plea, Chavez admitted that he and Burt instigated a fight with the victim during which Chavez and Burt took the victim to the ground and punched and kicked the victim. Chavez further admitted that he hit the victim in the head with a rock and Burt stabbed the victim in the torso. An autopsy revealed that the victim died of blunt head trauma and stab wounds to the chest.
On Jan. 7, 2016, Burt pled guilty to a felony information and admitted that he and Chavez murdered the victim. Under the terms of his plea agreement, Burt will be sentenced within the range of 204 to 264 months in federal prison followed by a term of supervised release to be determined by the court.
Chavez and Burt have been in federal custody since their arrests. They remain detained pending sentencing hearings which have yet to be scheduled.
This case was investigated by the Gallup office of the FBI and the Zuni Pueblo Tribal Police Department. Assistant U.S. Attorneys Elaine Y. Ramirez and Kyle T. Nayback are prosecuting the case.
York City Man Sentenced to Fifteen Years for Possession of A Gun as an Armed Career CriminalRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that a York, Pennsylvania man was sentenced to 15 years in prison today by U.S. District Court Senior Judge Sylvia H. Rambo, for possessing a firearm.
According to United States Attorney Peter Smith, Charles Swan, age 35, was indicted by a federal grand jury in Harrisburg in April of 2013 and pleaded guilty to possession of a firearm by a felon in May 2014. Swan was arrested on July 12, 2012, by York City Police officers after a brief foot pursuit. During the chase, Swan threw a .40 caliber pistol onto a nearby building, which police ultimately recovered.
At the time that he possessed the gun, Swan had previously been convicted three times by local authorities for drug trafficking. Federal law requires that a convicted felon who possesses a firearm -- with three or more prior convictions for drug trafficking or crimes of violence -- receive a sentence of at least 15 years in prison.
Judge Rambo also ordered that Swan pay a fine of $1,600, and that upon his release from prison, he serve three years of supervised release under the supervision of the United States Office of Probation.
The prosecution was the result of an investigation by agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the York City Police. The case was prosecuted by Assistant United States Attorney Michael A. Consiglio.
This case is part of the Violent Crime Reduction Partnership (“VCRP”), a districtwide 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.
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Wyoming Man Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
Cheyenne – U.S. Attorney Christopher A. Crofts announced today that thirty-nine year old Casper, Wyoming resident Harold Creighton has been sentenced to life imprisonment in federal court.
Creighton was convicted on November 2, 2015 after a jury of 12 persons found him guilty of conspiracy to distribute over 500 grams of methamphetamine. During trial, the United States presented witnesses who established that Creighton purchased methamphetamine from various sources of supply outside the state of Wyoming in quantities ranging from ¼ pound to in excess of 1 pound. Creighton distributed the methamphetamine in communities throughout Wyoming (including Casper, Wyoming) between early 2014 through May of 2015. Prior to the start of trial on October 26, 2015 and during trial, Creighton made efforts to tamper with witness testimony and intimidate witnesses testifying against him.
Creighton has an extensive criminal history including four separate drug related felony offenses; one felon in possession of firearm conviction for which he served 110 months in federal custody; a variety of assault convictions, as well as a history of parole and probation violations.
The United States sought a mandatory life sentence based on Creighton’s prior drug felony convictions, his role in the offense, gun carrying and violence, as well as other aggravating factors.
This case was prosecuted by Assistant United States Attorney Stephanie Sprecher and results from an ongoing Organized Crime Drug Enforcement Task Forces (OCDETF) joint investigation conducted by the Wyoming Division of Criminal Investigation and the U.S. Drug Enforcement Administration. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
Woman Gets 10 Years After Trying to Flush CashRead the Press Release
WICHITA, KAN. - A woman who tried to flush thousands of dollars in drug funds down a cellblock toilet was sentenced Monday to 10 years in federal prison, U.S. Attorney Barry Grissom said.
Marisela Ramirez, 26, pleaded guilty to one count of conspiracy to distribute methamphetamine. In her plea, she admitted she helped arrange for 16 pounds of methamphetamine to be transported by car from California to Kansas. She had $3,880 in drug funds on her person when she was arrested. It was seized in the U.S. Marshals’ cellblock after she attempted to flush it down a toilet.
Co-defendants include:
Jorge Rodriguez-Maciel, who was sentenced to 12 years.
Victor Diaz, who is set for sentencing Jan. 15.
Manuel Torres Arevalo, who is awaiting trial.
Grissom commended the Drug Enforcement Administration and Assistant U.S. Attorney Debra Barnett for their work on the case.
Wichita Man Indicted on Federal Sex Trafficking ChargesRead the Press Release
WICHITA, KAN. - A federal grand jury in Wichita returned an indictment Tuesday charging a Wichita man with sex trafficking, U.S. Attorney Barry Grissom said.
Gerald L. Brown, Jr., 25, Wichita, Kan., is charged with one count of sex trafficking of a minor. In a second count, he is charged with sex trafficking of an adult by force, fraud or coercion.
In count one, the indictment alleges that in June and July 2015 Brown recruited a 17-year-old girl to travel from Kansas to Oklahoma and Texas to engage in prostitution. He advertised the girl’s sexual services on an adult Web site.
In count two, the indictment alleges that from August to Oct 2015 Brown used force, fraud or coercion to cause an adult victim to engage in prostitution. He advertised the woman’s sexual services on an adult Web site.
At the time of the alleged crimes, Brown was a registered sex offender as a result of a 2006 conviction in Sedgwick County District Court for indecent liberties with a child.
If convicted, Brown faces a penalty of not less than 10 years in federal prison and a fine up to $250,000 on the charge of sex trafficking of a minor, and a penalty of not less than 15 years and a fine up to $250,000 on the charge of sex trafficking by force, fraud or coercion. The Wichita Police Department investigated. Assistant U.S. Attorney Jason Hart is prosecuting.
OTHER GRAND JURY INDICTMENTS
Crystal Bayliff, 28, Wichita, Kan.; Leslie Elam, 30, Wichita, Kan.; Michael Eubanks, 32, Wichita, Kan.; and Joshua Scott, 38, Wichita, Kan., are charged with drug trafficking. The crimes are alleged to have occurred Aug. 5, 2015, in Trego County, Kan.
In count one, Bayliff, Elam and Eubanks are charged with conspiracy to distribute methamphetamine. In count two, Bayliff and Elam are charged with possession with intent to distribute methamphetamine. In count three, Scott is charged with using a phone in furtherance of drug trafficking.
Upon conviction, the crimes carry the following penalties:
Counts one and two: Not less than 10 years and a fine up to $4 million.
Count three: A maximum penalty of four years and a fine up to $250,000.
The Drug Enforcement Administration, the Kansas Highway Patrol and the WaKeeny Police Department investigated. Special Assistant U.S. Attorney Michelle Jacobs is prosecuting.
Tarah Nietfeld, 24, Wichita, Kan., and Joshua Scott, 38, Wichita, Kan., are charged in count one with conspiracy to distribute methamphetamine, in count nine with possession with intent to distribute methamphetamine, in count 10 with possession with intent to distribute cocaine, in count eleven with possession with intent to distribute heroin, and in counts 12, 13 and 14 with unlawful possession of firearms in furtherance of drug trafficking. In addition, Scott is charged in counts 4, 6, 7, 15, 16 and 17 with unlawful possession of a firearm following a felony conviction; and Nietfeld is charged in counts 2, 3, 5, 8, 18, 19 and 20 with unlawful possession of a firearm following a felony conviction. The crimes are alleged to have occurred at various times during 2015 in Sedgwick County, Kan.
The indictment seeks to forfeit $26,703 in cash, representing proceeds of the crimes.
Upon conviction, the crimes carry the following penalties:
Count one: Not less than 10 years in federal prison and a fine up to $4 million.
Counts two through eight and 15 through 20: A maximum penalty of 10 years and a fine up to $250,000.
Counts nine through 11: A maximum penalty of 20 years and a fine up to $1 million.
Counts 12 through 14: Not less than five years, consecutive to other penalties, and a fine up to $250,000.
The Wichita Police Department, the Sedgwick County Sheriff’s Department, and the Kansas Highway Patrol investigated. Special Assistant U.S. Attorney Michelle Jacobs is prosecuting.
Azucena Garcia-Ferniza, 21, a citizen of Mexico, is charged with one count of possession of a firearm while unlawfully in the United States, one count of accessory to a crime after the fact, and one count of having knowledge of a felony that she did not report to law enforcement. The crimes are alleged to have occurred May 7, 2015, in Saline County, Kan.
If convicted, she faces a maximum penalty of 10 years in federal prison and a fine up to $250,000 on the firearm charge, and a maximum penalty of three years and a fine up to $250,000 on the misprision charge. On the charge of giving to knowingly giving aid to a person who committed a crime she faces a maximum sentence of half of the sentence for the person who committed the crime.
Immigration and Customs Enforcement’s Enforcement and Removal Operations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
Jose Alvarez-Galvan, 32, a citizen of Mexico, is charged with one count of unlawful possession of a firearm while unlawfully in the United States, one count of unlawful possession of ammunition while unlawfully in the United States, and one count of unlawfully re-entering the United States after being deported. He was found Dec. 18, 2015, in Sedgwick County, Kan.
If convicted, he faces a maximum penalty 10 years in federal prison and a fine up to $250,000 on each of the firearm charges and a maximum penalty of two years and a fine up to $250,000 on the re-entry charge. Homeland Security Investigations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
Luis Antonio Mendez-Perez, 38, a citizen of Mexico, is charged with unlawfully re-entering the United States after being deported. He was found Dec. 30, 2015, in Sedgwick County, Kan.
If convicted, he faces a maximum penalty of two years and a fine up to $250,000. Immigrations and Customs Enforcement’s Enforcement and Removal Operations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
Octavio Martinez-Rabelo, 32, a citizen of Mexico, is charged with unlawfully re-entering the United States after being deported. He was found Nov. 3, 2015, in Sedgwick County.
If convicted, he faces a maximum penalty of two years and a fine up to $250,000. Immigrations and Customs Enforcement’s Enforcement and Removal Operations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
United States to Accept Concurrent Jurisdiction over Mille Lacs Band of Ojibwe Reservation in MinnesotaRead the Press Release
Second Assumption of Federal Jurisdiction under Historic Tribal Law and Order Act
The Department of Justice has granted a request by the Mille Lacs Band of Ojibwe for the United States to assume concurrent criminal jurisdiction on the tribe’s reservation in central Minnesota, Deputy Attorney General Sally Quillian Yates announced today.
The decision was the second assumption of jurisdiction granted by the Department of Justice under the landmark Tribal Law and Order Act of 2010 (TLOA), which gave the department discretion to accept concurrent federal jurisdiction to prosecute violations of the General Crimes Act and the Major Crimes Act within areas of Indian country that are also subject to state criminal jurisdiction under Public Law 280. Public Law 280 is the 1953 law that mandated the transfer of federal law enforcement jurisdiction for certain tribes to six states, including Minnesota. The first assumption of federal jurisdiction took place on Minnesota’s White Earth Reservation in March 2013.
The decision will take effect on Jan. 1, 2017. Tribal, state and county prosecutors and law enforcement agencies will also continue to have criminal jurisdiction on the reservation.
“We believe this decision – made after a careful review of the tribe’s application and the facts on the ground – will strengthen public safety and the criminal justice system serving the Mille Lacs Band of Ojibwe,” said Deputy Attorney General Yates. “This is another step forward in the Justice Department’s commitment to serve and protect American Indian and Alaska Native communities, to deal with them on a government-to-government basis and to fulfill the historic promise of the Tribal Law and Order Act. Strong law enforcement partnerships with the Tribe, as well as state and local counterparts, will be essential to the success of this effort.”
“We want to make certain that the outcome of this decision will benefit the residents of the Mille Lacs Band and improve the safety of the community,” said U.S. Attorney Andrew M. Luger of the District of Minnesota. “As we work towards full implementation, we will work to strengthen the bonds between our tribal and local partners in pursuit of our common goal of providing a safe environment where this community can thrive.”
The Department of Justice already has jurisdiction to prosecute certain crimes, such as drug trafficking, wherever they occur in the United States – including on the Mille Lacs Reservation. The change announced today will expand this existing jurisdiction to allow federal prosecution of major crimes such as murder, rape, felony assault and felony child abuse.
The decision followed careful consideration of the request and information provided by the Mille Lacs Band Tribal government, as well as by the Justice Department’s Office of Tribal Justice, the Executive Office for U.S. Attorneys, the U.S. Attorney's Office for the District of Minnesota, the Federal Bureau of Investigation, the U.S. District Court, state and local law enforcement partners and other sources.
United States to Accept Concurrent Jurisdiction over Mille Lacs Band of Ojibwe Reservation in MinnesotaRead the Press Release
WASHINGTON – The Department of Justice has granted a request by the Mille Lacs Band of Ojibwe for the United States to assume concurrent criminal jurisdiction on the tribe’s reservation in central Minnesota, Deputy Attorney General Sally Quillian Yates announced today.
The decision was the second assumption of jurisdiction granted by the Department of Justice under the landmark Tribal Law and Order Act of 2010 (TLOA), which gave the department discretion to accept concurrent federal jurisdiction to prosecute violations of the General Crimes Act and the Major Crimes Act within areas of Indian country that are also subject to state criminal jurisdiction under Public Law 280. Public Law 280 is the 1953 law that mandated the transfer of federal law enforcement jurisdiction for certain tribes to six states, including Minnesota. The first assumption of federal jurisdiction took place on Minnesota’s White Earth Reservation in March 2013.
The decision will take effect on Jan. 1, 2017. Tribal, state and county prosecutors and law enforcement agencies will also continue to have criminal jurisdiction on the reservation.
“We believe this decision – made after a careful review of the tribe’s application and the facts on the ground – will strengthen public safety and the criminal justice system serving the Mille Lacs Band of Ojibwe,” said Deputy Attorney General Yates. “This is another step forward in the Justice Department’s commitment to serve and protect American Indian and Alaska Native communities, to deal with them on a government-to-government basis and to fulfill the historic promise of the Tribal Law and Order Act. Strong law enforcement partnerships with the Tribe, as well as state and local counterparts, will be essential to the success of this effort.”
“We want to make certain that the outcome of this decision will benefit the residents of the Mille Lacs Band and improve the safety of the community,” said U.S. Attorney Andrew M. Luger of the District of Minnesota. “As we work towards full implementation, we will work to strengthen the bonds between our tribal and local partners in pursuit of our common goal of providing a safe environment where this community can thrive.”
The Department of Justice already has jurisdiction to prosecute certain crimes, such as drug trafficking, wherever they occur in the United States – including on the Mille Lacs Reservation. The change announced today will expand this existing jurisdiction to allow federal prosecution of major crimes such as murder, rape, felony assault and felony child abuse.
The decision followed careful consideration of the request and information provided by the Mille Lacs Band Tribal government, as well as by the Justice Department’s Office of Tribal Justice, the Executive Office for U.S. Attorneys, the U.S. Attorney's Office for the District of Minnesota, the Federal Bureau of Investigation, the U.S. District Court, state and local law enforcement partners and other sources.
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United States Recovers over $133 Million for Fraudulent Nursing Home Therapy ClaimsRead the Press Release
BOSTON – United States Attorney Carmen M. Ortiz announced today settlement agreements totaling over $133 million with the nation’s largest nursing home rehabilitation therapy provider, RehabCare, now a part of Kindred Healthcare, of Louisville, Ky., and with four skilled nursing facility operators, Wingate Healthcare, Essex Group Management, Fundamental Administrative Services, and Frederick County (Maryland). The settlements resolve allegations that RehabCare and these nursing facility operators falsely inflated therapy reimbursement claims to Medicare. The false claims were based on unreasonable, unnecessary, or unskilled therapy, or on therapy that never occurred.
In conjunction with the finalization of the settlement, the government’s complaint and exhibits against RehabCare were unsealed.
“These False Claims Act settlements address allegations that RehabCare and its nursing facility customers engaged in a systematic and broad-ranging scheme to increase profits by delivering, or purporting to deliver, therapy in a manner that was focused on increasing Medicare reimbursement rather than on the clinical needs of patients,” said U.S. Attorney Ortiz. “The complaint outlines the extent and sophistication of this fraud, and the government’s continuing work to ensure that the provision of care in skilled nursing facilities is based on patients’ clinical needs.”
The complaint alleges that RehabCare’s schemes included the following:
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Presumptively placing patients in the highest therapy category, rather than relying on individualized evaluations to determine the level of care most suitable for each patient’s clinical needs;
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“Ramping,” i.e., during the period prior to October 1, 2011, boosting the amount of reported therapy during so-called “assessment reference periods,” thereby causing and enabling nursing facilities to bill for the care of their Medicare patients at the highest therapy reimbursement level, while providing materially less therapy to those same patients outside the assessment reference periods when the nursing facilities were not required to report to Medicare the amount of provided therapy;
Scheduling and reporting the provision of therapy to patients even after the patients’ treating therapists had recommended that they be discharged from therapy;
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Arbitrarily shifting the number of minutes of planned therapy between different therapy disciplines to ensure targeted therapy reimbursement levels were achieved, regardless of the clinical need for the therapy;
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Providing significantly higher amounts of therapy at the end of a therapy measurement period not due to medical necessity but to reach the minimum time threshold for the highest therapy reimbursement level and thus to cause and enable nursing facilities to bill for the care of their Medicare patients accordingly, even though the patients were receiving materially less therapy on preceding days;
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Inflating initial reimbursement levels by reporting time spent on initial evaluations as therapy time in violation of the Medicare prohibition on counting initial evaluation time as therapy time;
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Reporting that skilled therapy had been provided to patients when in fact the patients were asleep or otherwise unable to undergo or benefit from skilled therapy, e.g., when a patient had been transitioned to palliative end-of-life care; and
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Reporting estimated or rounded minutes instead of reporting the actual minutes of therapy provided.
“Medicare beneficiaries are entitled to receive care that is dictated by their clinical needs rather than the fiscal interests of healthcare providers,” said Acting Assistant Attorney General Benjamin C. Mizer for the Justice Department’s Civil Division. “All providers, whether contractors or direct billers of taxpayer-funded federal healthcare programs, must be held accountable when their actions knowingly cause bills for unnecessary services.”
“Patients and taxpayers rightly expect nothing less than suitable, high-quality health care,” said Phillip M. Coyne, Special Agent in Charge, Office of Inspector General of the U.S. Department of Health and Human Service’s Boston Regional Office. “Providers more concerned with increasing Medicare profits, though, can expect an aggressive investigation and prosecution.”
"Whether it’s false billing or unnecessary medical treatments, the FBI will continue to aggressively investigate healthcare providers that fraudulently bill Medicare,” said Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division. “Together, with our law enforcement partners, we’ll pursue those individuals and institutions that look to abuse the healthcare system in favor of their bottom line."
The settlements announced today include: a $125 million settlement with RehabCare; a $3.9 million settlement with Wingate Healthcare and 16 of its nursing facilities in Massachusetts and New York; a $1.375 million settlement with Essex Group Management and two of its Massachusetts nursing facilities, Brandon Woods of Dartmouth and Blaire House of Milford; a $2.2 million settlement with Fundamental and two of its nursing facilities, Broomall (Pennsylvania) Rehabilitation and Nursing Center and The Courtyards at Fort Worth (Texas); and a $750,000 settlement with Frederick County, Maryland, which formerly operated the Citizens Care nursing facility in Frederick, Md.
Several other nursing facility operators previously settled with the United States for their role in submitting to Medicare claims that were false because of RehabCare’s alleged misconduct:
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Life Care Services LLC and CoreCare V LLP
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Episcopal Ministries to the Aging Inc.
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Catholic Health Care System
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Ross Manor
HHS Hotline. The government encourages anyone with information about the practices described in the government’s complaint, or similar practices involving rehabilitation therapy in nursing facilities, to contact the Department of Health and Human Services, Office of Inspector General hotline via telephone, 1-800-HHS-TIPS (1-800-447-8477), or in writing via https://oig.hhs.gov/fraud/report-fraud/.
The settlements with RehabCare and Wingate Healthcare arise from a lawsuit filed under the qui tam, or whistleblower, provisions of the False Claims Act. See United States ex rel. Halpin and Fahey v. Kindred Healthcare, Inc., No. 11-12139-RGS (D. Mass.). The False Claims Act permits private parties to sue on behalf of the government for false claims for government funds and to receive a share of any recovery.
This matter was investigated by the U.S. Department of Health and Human Services, Office of the Inspector General and the Federal Bureau of Investigation. It was handled by Assistant U.S. Attorneys Gregg Shapiro, Patrick Callahan, and Kriss Basil of Ortiz’s Civil Division and Department of Justice Trial Attorneys Christelle Klovers and Rohith Srinivas.
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Two Women Indicted in $254,000 Tax Refund SchemeRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Texas woman and an Alabama woman were indicted in federal court today for their roles in a conspiracy to claim more than $254,000 in fraudulent tax refunds.
Kalena LaToya Winston, 39, of Killeen, Texas, and Shree C. Furby, 39, of Talladega, Ala., were charged in a 22-count indictment returned by a federal grand jury in Kansas City, Mo.
Today’s indictment alleges that Winston and Furby participated in a conspiracy to file false claims for federal income tax refunds from January 2011 to April 12, 2012. According to the indictment, the tax refund scheme resulted in a criminal tax loss of at least $254,893.
Winston allegedly prepared fraudulent 2010 and 2011 tax returns that included false information in order to increase the taxpayers’ earned income credit. Furby allegedly assisted Winston by filing two false tax returns and allowing Winston to use her address on 11 tax returns in order to receive the refunds.
In addition to the conspiracy, Winston and Furby are charged together in two counts of making fraudulent claims to the IRS in order to receive a tax refund to which the individual was not entitled. Winston is charged in an additional 19 counts of making false claims.
All of the federal tax returns were filed at the Internal Revenue Service Center located in Kansas City, Mo.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Paul S. Becker. It was investigated by IRS-Criminal Investigation.
Two Sussex County Men Sentenced for Home InvasionRead the Press Release
WILMINGTON, Del. – Dalton R. Truitt, 32, of Bridgeville, Del., and Kentae D. Watts, 29, of Bridgeville, Del., were each sentenced to seven (7) years of imprisonment for their roles in in a Seaford, Del. home invasion committed on May 1, 2014, announced Charles M. Oberly, III, United States Attorney for the District of Delaware. Truitt and Watts were also sentenced to five (5) years of supervised release following their prison sentences.
According to statements made at the sentencing hearings and other documents filed in court, shortly after midnight on May 1, 2014, Truitt, Watts, and two other men went to the Seaford, Delaware residence of Kevin Barnes and his girlfriend Laura Taylor with the intent to steal Barnes’ heroin stash and money at gunpoint.
Through a window, Barnes caught a glimpse of one of the robbers outside his house, carrying an assault-type rifle. He told his girlfriend to call 911 (which she did, from the bedroom closet), and he armed himself with a handgun. Watts then kicked down the door, at which point Barnes opened fire. All four robbers fled. At least one of them returned fire towards the house.
Police arrived shortly thereafter and pulled over Watts and Truitt in a car nearby. The other two robbers got away. Inside the car that Watts and Truitt were in, officers found two 9mm magazines and black clothing. Inside Barnes’ residence, officers found three handguns, as well as over 100 grams of heroin and $5,000 in cash – all of which Barnes admitted belonged to him. An assault-type rifle, handgun, and machete were discarded by the fleeing robbers and later recovered in the area.
Barnes pleaded guilty to drug and gun charges related to the incident, for which he was sentenced on October 15, 2015, to 80 months of imprisonment, to be followed by four (4) years of supervised release.
The case is the product of an investigation conducted by the Wilmington Office of the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Delaware State Police, and the Dover Police Department. Assistant United States Attorney Elizabeth L. Van Pelt and former Assistant United States Attorney Mark M. Lee prosecuted the case on behalf of the United States.
Two South Texas School Board Members and Middleman Plead Guilty to Attempted ExtortionRead the Press Release
Two elected members of the School Board of Donna, Texas, pleaded guilty today in the Southern District of Texas for accepting bribes in connection with a services contract held by the Donna Independent School District (DISD). A private citizen who served as a middleman in the scheme also pleaded guilty, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Kenneth Magidson of the Southern District of Texas.
Eloy Infante, 54; Elpidio Yanez Jr., 45; and Adrian Guerrero, 50, all from Donna, pleaded guilty today to attempted interference with commerce by extortion. Infante and Yanez are both members of the Donna School Board and Guerrero is a private citizen. Sentencing is set for March 22, 2016.
In connection with their pleas, the defendants admitted that from February to May 2015, they attempted to extort, and solicited and accepted bribes from, an individual whose company provided services to the DISD. Specifically, the defendants informed the individual that in order for his company to keep its services contract with the DISD, he needed to pay Infante and Yanez $10,000 each. Both Infante and Yanez admitted that they accepted partial payment of the bribes, and Guerrero admitted that he served as the middleman for one of the payments.
The FBI investigated this case. Trial Attorney Monique Abrishami of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Leo J. Leo III of the Southern District of Texas are prosecuting the case.
Two Shenandoah Men Plead Guilty to Heroin Trafficking ConspiracyRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that two Shenandoah residents connected to a large-scale heroin trafficking ring that operated in Schuylkill County during 2012 through September 2015, pleaded guilty today before Senior U.S. District Court Judge James M. Munley in Scranton.
According to United States Attorney Peter Smith, Rhashean Strange, age 30, who used the street name “Chicago,” pleaded guilty to conspiracy to distribute more than one kilogram of heroin. Strange admitted to being a leader and manager of the drug conspiracy, and to possessing a firearm in connection with the conspiracy.
In a separate proceeding, Carlos Correa, age 27, pleaded guilty to conspiracy to distribute more than 100 grams of heroin. Correa also admitted to possessing a firearm in connection with the drug conspiracy.
Strange and Correa were indicted by a federal grand jury in Scranton in September 2015, as a result of an investigation by agents of the Federal Bureau of Investigation, investigators from the Pennsylvania State Police, and local police in Schuylkill County.
Judge Munley in each case ordered a presentence investigation to be completed, and scheduled sentencing for Strange on April 15, 2016, and for Correa on April 14, 2016. Strange faces a mandatory minimum sentence of 10 years in prison and a potential maximum sentence of life in prison. Correa faces a mandatory minimum sentence of five years in prison and a potential maximum sentence of 40 years in prison.
Assistant U.S. Attorney Francis P. Sempa is prosecuting the cases.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the heroin initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
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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Two Donna School Board Members and Middleman Plead Guilty to Attempted ExtortionRead the Press Release
McALLEN, Texas - Two elected members of the School Board of Donna pleaded guilty today for accepting bribes in connection with a services contract held by the Donna Independent School District (DISD). A private citizen who served as a middleman in the scheme also pleaded guilty, announced U.S. Attorney Kenneth Magidson and Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division.
Eloy Infante, 54, Elpidio Yanez Jr., 45, and Adrian Guerrero, 50, all from Donna, pleaded guilty today to attempted interference with commerce by extortion. Infante and Yanez are both members of the Donna School Board and Guerrero is a private citizen. Sentencing is set for March 22, 2016.
In connection with their pleas, the defendants admitted that from February to May 2015, they attempted to extort, and solicited and accepted bribes from, an individual whose company provided services to the DISD. Specifically, the defendants informed the individual that in order for his company to keep its services contract with the DISD, he needed to pay Infante and Yanez $10,000 each. Both Infante and Yanez admitted that they accepted partial payment of the bribes, and Guerrero admitted that he served as the middleman for one of the payments.
The charges are the result of an investigation by the FBI. Assistant U.S. Attorney Leo J. Leo III and Trial Attorney Monique Abrishami of the Criminal Division’s Public Integrity Section are prosecuting the case.
Tulsa Physician Pleads Guilty to Producing Child PornRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Tulsa, Okla., physician pleaded guilty in federal court today to using a minor to produce child pornography.
Shelby J. Coleman, 38, of Tulsa, pleaded guilty before U.S. Magistrate Judge David P. Rush to the sexual exploitation of a child. Coleman, a medical doctor and partner of Tulsa Women’s Health Center, has been in federal custody since his arrest in September 2013.
By pleading guilty today, Coleman admitted that he communicated with a 16-year-old minor in Laclede County, Mo., identified as John Doe, via cell phone texts. At Coleman’s request, John Doe sent him multiple sexually explicit images of himself.
When John Doe’s father discovered the text messages, he contacted the Missouri State Highway Patrol. A state trooper assumed the identity of John Doe for the purpose of the investigation.
On Sept. 28, 2013, Coleman was apprehended by investigators after he traveled to Springfield, Mo., in order to meet John Doe for a sexual liaison.
Under federal statutes, Coleman is subject to a mandatory minimum sentence of 15 years in federal prison without parole, up to a sentence of 30 years in federal prison without parole, plus a fine up to $250,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the FBI, the Joplin, Mo., Police Department, the Southwest Missouri Cyber Crimes Task Force and the Missouri State Highway Patrol.
Tonawanda Man Sentenced for Methylone ConspiracyRead 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 Alexander R. Filippone, 24, of Tonawanda, NY, who was convicted of conspiracy to possess with intent to distribute, and to distribute, methylone, was sentenced to 30 months in prison by U.S. District Judge Richard J. Arcara.Assistant U.S. Attorney Frank T. Pimentel, who handled the case, stated that on three dates in February, March, and April 2013 the defendant sold methylone, which is sometimes sold on the street as “molly,” to an undercover police officer in commercial parking lots in Tonawanda and Amherst, NY. Methylone can cause violent and self-destructive behavior, seizure, paranoia, hallucinations, and death in some cases.
The sentencing is the result of an investigation on the part of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero, and the New York State Police, under the direction of Major Steven Nigrelli.Three Self-Admitted Denver Gang Members Arrested by ATF for Firearms TraffickingRead the Press Release
DENVER – Three Denver self-admitted gang members were arrested late last night in an operation led by the ATF, U.S. Attorney John Walsh and ATF Denver Division Special Agent in Charge Ken Croke announced. Two of the three men appeared in U.S. District Court in Denver this afternoon, where they were advised of their rights, as well as the charges pending against them. The third will appear tomorrow afternoon. A detention hearing has been scheduled for Friday, January 15, 2016 at 2:00 p.m. All three defendants will remain in custody, held without bond, prior to that hearing.
Arrested were Mychael Eitwan Thomas, age 29, Deondrey Brandon, age 21, and Jasirii Quadami Thomas, age 20, all of Denver. The three face Conspiracy charges. Mychael Thomas also faces five counts of being a felon in possession of firearms, and one count of sale of a stolen firearm. Brandon also faces two counts of sale of a stolen firearm. Finally, Jasirii Thomas also faces one count of sale of a stolen firearm. .
According to the indictment, defendants Brandon and Jasirii Thomas acquired and delivered firearms, including stolen firearms, to Mychael Thomas, who was prohibited from possessing firearms as a result of a prior conviction for a crime punishable by imprisonment for a term exceeding one year. The defendants, Mychael Thomas, Brandon, and Jasirii Thomas, concealed firearms in containers when transporting them. The defendants would then sell the firearms for cash. Firearms included a Glock 26, a Smith & Wesson .38 caliber revolver, an AR-15, a Jimenez Arms .380 caliber handgun, and a Mac 11, among others. The defendants alleged one was a machine gun.
“Many of the firearm sold by the defendants were stolen during residential burglaries throughout Metro Denver,” said U.S. Attorney John Walsh. “Thanks to the ATF, working closely with state and local partners, we were able to identify the three culprits, which resulted in their indictment and arrest.”
“The 17 firearms recovered in this investigation are 17 fewer guns in the hands of gangs; the three suspects in jail are three less criminals preying on our communities,” said ATF Special Agent in Charge Ken Croke. “Disrupting gang activities prevents further crimes and puts all criminals on notice. Their lawless acts do not go undetected or uninvestigated.”
If convicted of Conspiracy, each defendant faces not more than 5 years in federal prison, and up to a $250,000 fine. If convicted of being a felon in possession of a firearm, each count carries a penalty of not more than 10 years in federal prison, and up to a $250,000 fine. Finally, if convicted of sale of a stolen firearm, each count carries a penalty of not more than 10 years in federal prison, and up to a $250,000 fine.
This case was investigated by the ATF, Denver Police Department, Aurora Police Department, the Lakewood Police Department, and the Department of Corrections Division of Adult Parole.
The defendants are being prosecuted by Assistant U.S. Attorney Beth Gibson.
The charges contained in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty.
Three Individuals Indicted for Laundering Fraudulent Tax Refunds Using Stolen IdentitiesRead the Press Release
ATLANTA – Anthony Alika, Sonia Alika, and Rapheal Atebefia, all residents of Austell, Georgia, have been indicted for laundering fraudulent tax refunds using stolen identities. The charges include money laundering, conspiracy to money launder, structuring monetary transactions, access device fraud, and aggravated identity theft.
“These defendants allegedly received hundreds of thousands of dollars in fraudulent tax refunds using stolen identities,” said U.S. Attorney John A. Horn. “Stolen-identity tax return fraud unfortunately is a growing problem, and the perpetrators are becoming more sophisticated at concealing the proceeds of their crimes.”
“A vital element in this investigation was following the flow of money being received by the defendants in order to determine the true source of the funds,” stated Veronica F. Hyman-Pillot, Special Agent in Charge. “These defendants conduct cost the U.S. Treasury thousands of dollars, and IRS Criminal Investigation will continue to utilize every tool necessary to unravel financial transactions related to fraudulently obtained tax refunds and the theft of innocent individual’s identities.”
“This investigation was an excellent example of a partnership between federal law enforcement agencies working together to dismantle a fraud conspiracy,” said Thomas Noyes II, U.S. Postal Inspector in Charge of the Charlotte Division. “I fully commend the hard work and countless hours put forth by all agencies involved including the U.S. Attorney’s Office, which resulted in bringing the individuals in this case to justice.”
According to U.S. Attorney Horn, the charges, and other information presented in court: The indictment charges that these defendants conspired together to launder the proceeds from a stolen identity refund fraud scheme, according to allegations in the indictment. It is alleged that the defendants and others obtained means of identification of actual individuals, including their names and social security numbers and used this information to access the Internal Revenue Service’s (IRS) “Get Transcript” database.
Anthony Alika, Atebefia and others are also alleged to have obtained prepaid debit cards from stores located in multiple states, registered the cards in the names of the stolen identities and then filed false income tax returns using the stolen identities and directed the IRS to deposit the tax refunds onto these cards. To conceal their fraud, Anthony Alika, Atebefia and others allegedly used the prepaid debit cards to purchase money orders, which Anthony Alika, Sonia Alika and Atebefia deposited into bank accounts and then structured cash withdrawals of the proceeds in order to prevent the bank from filing Currency Transaction Reports.
Anthony Alika, 42, Sonia Alika, 27, and Rapheal Atebefia, 33, all of Austell, Georgia, were indicted by a federal grand jury on January 5, 2016. Atebefia was arraigned before U.S. Magistrate Judge Linda T. Walker.
Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Internal Revenue Service – Criminal Investigation and the United States Postal Inspection Service.
DOJ Criminal Tax Division Trial Attorneys Michael Boteler and Charles Edgar, Jr., and Assistant United States Attorney Shanya J. Dingle are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Three Georgia Residents Indicted for Laundering Proceeds from a Stolen Identity Refund Fraud SchemeRead the Press Release
A federal grand jury sitting in Atlanta, Georgia, returned an indictment, which was unsealed today, against three residents of an Atlanta suburb for conspiracy to commit money laundering, money laundering, access device fraud, aggravated identity theft and structuring, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney John A. Horn of the Northern District of Georgia.
Anthony Alika, his wife, Sonia Alika and Rapheal Atebefia, residents of Austell, Georgia, conspired together to launder the proceeds from a stolen identity refund fraud scheme, according to allegations in the indictment. It is alleged that the defendants and others obtained means of identification of actual individuals, including their names and social security numbers and used this information to access the Internal Revenue Service’s (IRS) “Get Transcript” database. Anthony Alika, Atebefia and others are also alleged to have obtained prepaid debit cards from stores located in multiple states, registered the cards in the names of the stolen identities and then filed false income tax returns using the stolen identities and directed the IRS to deposit the tax refunds onto these cards. To conceal their fraud, Anthony Alika, Atebefia and others allegedly used the prepaid debit cards to purchase money orders, which Anthony Alika, Sonia Alika and Atebefia deposited into bank accounts and then structured cash withdrawals of the proceeds in order to prevent the bank from filing Currency Transaction Reports.
If convicted, the defendants face a statutory maximum sentence of 20 years in prison for each count of money laundering, 10 years in prison for each count of access device fraud, 10 years in prison for structuring more than $100,000 or five years in prison for structuring less than $100,000 and a mandatory sentence of two years in prison for aggravated identity theft, which will run consecutive to any other prison term they receive. They also face substantial monetary penalties, restitution and forfeiture.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Horn commended special agents of IRS-Criminal Investigation and the U.S. Postal Inspection Service, who investigated the case and Trial Attorneys Michael C. Boteler and Charles M. Edgar Jr. of the Tax Division and Assistant U.S. Attorney Shanya Dingle, who are prosecuting this case.
An indictment merely alleges that crimes have been committed. The defendants are presumed innocent until proven guilty beyond a reasonable doubt.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Tennessee Man Pleads Guilty for Ebay SchemeRead 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 Joshua B. Abernathy, 30, of Pulaski, Tennessee, pleaded guilty before U.S. District Judge Richard J. Arcara, to wire fraud. The charge carries a maximum penalty of 20 years in prison, a fine of $250,000 or both.Assistant U.S. Attorney Russell T. Ippolito, Jr., who is handling the case, stated that Abernathy advertised electrical devices for sale on eBay to convince prospective purchasers to wire transfer funds to bank accounts he controlled. The prospective buyers thought they purchased “vibration analyzers” which are designed to detect defects in manufacturing equipment but the defendant had no such devices to sell. Two victims, one of whom lived in Erie County, lost a total of more than $48,000 as a result of the scheme.
The plea is the culmination of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent in Charge Adam S. Cohen.
Sentencing is scheduled on April 20, 2016, before Judge Arcara.Spring Hill Man Pleads Guilty to Making A False StatementRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that Jason Pond (38, Spring Hill) today pleaded guilty to making a false statement in an application to obtain a United States Department of Housing and Urban Development (HUD) loan. He faces a maximum penalty of five years in federal prison. A sentencing date has not yet been scheduled.
According to the plea agreement, on September 28, 2010, Pond purchased his home in Spring Hill for $110,000. Along with his wife, they received a loan of $49,650 from HUD’s Neighborhood Stabilization Program (NSP), as a second mortgage on the home. The NSP was established by HUD to provide emergency assistance to stabilize communities with high rates of abandoned and foreclosed homes. The NSP was designed to assist households whose annual incomes are up to 120 percent of the area median. This loan program would not have required Pond to repay the loan if he lived in the home for 15 years.
In an application to participate in the program, Pond provided false and incomplete information related to his debts, assets, employment, income, and tax returns. One example of a debt that he failed to disclose was a loan that he had received from another government program to obtain a different home. He also did not disclose income he earned from his DJ business, or that he owned certain assets, including two cars and a boat.
This case was investigated by the HUD Office of Inspector General and the Hernando County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Adam M. Saltzman.
Resident of Barrington, New Hamsphire Sentenced for Stealing Labor Union FundsRead the Press Release
CONCORD, N.H. – After pleading guilty to a federal offense that involved the theft of money from a labor union, Gregory Paradis, a 37-year-old resident of Barrington, New Hampshire, was sentenced to two years of probation, announced United States Attorney Emily Gray Rice.
Paradis was elected president and senior steward of the Seabrook Nuclear Security Officers Association in May 2011. As president and senior steward, Paradis had control of the union’s checking account. In January 2013, the union’s vice president notified the Seabrook, New Hampshire Police Department that he suspected that Paradis was stealing money from the account.
An investigation of the allegations by the police department and the U.S. Department of Labor, Office of Management Standards, revealed that between May 2011 and December 2012, Paradis stole $13, 493.90 from the union. Paradis accomplished the thefts by using a debit card assigned to the account to make cash withdrawals at ATM machines and to purchase items for his personal benefit.
Paradis resigned from the union and voluntary terminated his employment as a security guard at the nuclear power plant in December 2012. When confronted by the union’s vice-president about the discrepancy in the union’s account, Paradis initially denied committing the thefts and blamed the account deficiency on an error by the bank maintaining the account. After an extensive investigation by law enforcement, Paradis eventually admitted he stole the funds and helped the law enforcement agencies determine the amount of money he stole.
Paradis was also ordered to repay $13,493.90 to the union.
The sentence was imposed by United States District Court Judge Landya B. McCafferty.
The case was investigated by the Seabrook Police Department and the U.S. Department of Labor, Office of Management Standards. It was prosecuted by AUSA Robert Kinsella.
Readout of Attorney General Lynch's Meeting with State of the Union GuestsRead the Press Release
Earlier today, Attorney General Loretta Lynch hosted Sue Ellen Allen, Mayor of Shelby County, Tennessee, Mark Luttrell, and Seattle Police Chief Kathy O’Toole for a conversation about criminal justice reform. They were joined by Deputy Attorney General Sally Yates. Ms. Allen, Mayor Luttrell and Chief O’Toole will be seated in the box with First Lady Michelle Obama, Dr. Jill Biden and Valerie Jarrett during the State of the Union Address tonight. Their conversation focused on the importance of investing in rehabilitation and reentry programs that can reduce the likelihood of recidivism, supporting vulnerable communities to prevent them from being caught up in the criminal justice system and the collaborative work that can be done on criminal justice reform when officials from the federal, state, and local level work with community leaders.
Sue Ellen Allen
Sue Ellen Allen knows the difficulties that formerly incarcerated individuals face after prison – both as the co-founder of a nonprofit helping inmates reenter society and as a former inmate starting over after her release in 2009. Her organization, Gina’s Team, supports women in Arizona prisons and upon release, gives them the resources they need and teaches them how give back to the community. Named for her cellmate in prison who died in incarceration, Sue Ellen started Gina’s Team with Gina’s parents in an effort to provide women a path out of prison, back into the community and out of additional trouble with the law. She wrote the President to thank him for the launch of a new pilot program that enables incarcerated Americans to receive Pell Grants and to encourage a national dialog that includes women in prison reform. Sue Ellen is proud to be accompanied to Washington by Gina’s mother, Diane, whose daughter gave her a renewed purpose in life.
Mayor Mark Luttrell
Throughout his career in public service, Republican Mayor Mark Luttrell has built partnerships with local, state and federal agencies, and his unique background has focused him on criminal justice reform. As mayor of Shelby County, Tennessee, he helped create specialty courts for drug, mental health, and veterans’ cases to provide resources for effective rehabilitation instead of ineffectual incarceration. The county also put in place measures to reduce recidivism by streamlining and pooling resources to better provide formerly incarcerated individuals with the tools they need to re-enter society. Afterward, he was appointed as Director of Corrections for Shelby County, Tennessee and served there until he was elected Sheriff in 2002 and subsequently as Mayor in 2010. Mayor Lutrell and his wife, Pat, have three children and six grandchildren.
Chief Kathleen O’Toole
Since 2014, Chief Kathleen O’Toole has led the Seattle Police Department in developing its approach to community policing, and her focus on improving officer morale, implementing new policies and optimizing department resources has received national attention. Under her leadership, the department tested a six-month pilot program for body-worn police cameras focused on public transparency, and the Department of Justice awarded the department a $600,000 grant to expand the program. Last year, the Seattle Police Department presented its policies at the White House Police Data Initiative as part of its renewed emphasis on accountability and transparency. Prior to Kathleen’s role as Chief, she served as Chief Inspector of the Gardia Síochána Inspectorate in Ireland, responsible for developing best practices of the Irish police service and rose the ranks of Massachusetts law enforcement, finishing as the first female Boston police commissioner in 2004. Chief O’Toole is married to a retired police detective, Dan O’Toole, and they have a daughter, Meghan.
Raytown Man Indicted for Child PornRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Raytown, Mo., man was indicted by a federal grand jury today for possessing and distributing child pornography over the Internet.
James Anthony Bee, 48, of Raytown, was charged in a two-count indictment returned by a federal grand jury in Kansas City, Mo. Today’s indictment replaces a federal criminal complaint that was filed against Bee on Monday, Jan. 11, 2016.
Today’s indictment alleges that Bee distributed child pornography over the Internet on Oct. 31, 2015. The indictment also charges Bee with possessing child pornography on Aug. 5, 2015.
According to an affidavit filed in support of the original criminal complaint, a search warrant was executed at Bee’s residence on Aug. 3, 2015, in response to evidence that Bee was part of a large network of individuals accessing, distributing, receiving and possessing child pornography. Law enforcement officers seized numerous computers, computer hard drives and computer peripherals from Bee’s residence.
Due to the volume of items seized from Bee’s residence, the affidavit says, these computers and computer peripherals are still being analyzed by the FBI’s Regional Computer Forensics Laboratory. Preliminary examination results have identified in excess of 1,000 videos and image files of child pornography, including 437 video files and 722 image files.
In November 2015, the affidavit says, law enforcement officers learned that Bee was continuing to access, receive, and distribute child pornography over the Internet with a number of new computer and computing devices he obtained after the search warrant was executed. A detective with the Independence, Mo., Police Department had identified Bee’s new computer as requesting video files of child pornography via a peer-to-peer file-sharing network. Another search warrant was executed at Bee’s residence on Monday, Jan. 11, 2016.
When officers entered Bee’s residence, according to the affidavit, he was immediately combative and refused to respond to any commands issued by the FBI or the Raytown, Mo., police officers. Bee was advised that he would be placed under arrest, and he continued to resist the FBI and police officers. Bee continued to pull his arms away from the officers, the affidavit says, attempted to kick these officers, and screamed and threatened physical harm to the officers. Bee kicked a police officer as he attempted to gain control over Bee and place him under arrest. According to the affidavit, Bee was transported to the Raytown Police Department’s detention facility, and, while there, continued his resistance to officers’ commands and damaged the cell where he was being kept.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Patrick D. Daly. It was investigated by the Kansas City, Mo., Police Department, the FBI, the Independence, Mo., Police Department and the Raytown, Mo., Police Department.
Randolph County Residents Sentenced for Methamphetamine OffensesRead the Press Release
On January 5, 2016, and January 7, 2016, Michael A. Boyt, Jr., 20, and Russell A. Stokes, 24, both of Sparta, were sentenced for methamphetamine offenses, Acting United States Attorney for the Southern District of Illinois James L. Porter announced today.
Boyt, Jr., who had previously pled guilty to conspiracy to distribute methamphetamine, was sentenced to 60 months in federal prison, 3 years’ supervised release, and fined $725.00. Stokes, who had previously pled guilty to conspiracy to manufacture methamphetamine and possessing pseudoephedrine knowing that it was going to be used to manufacture methamphetamine, was sentenced to 100 months in prison, 3 years’ supervised release, and fined $825.00. Evidence at the plea and sentencing hearings established that Boyt, Jr., and Stokes were involved with co-defendant Jonathan Haslett and others in the manufacture of methamphetamine. Stokes provided pseudoephedrine to multiple other persons, including Boyt, Jr., to use to manufacture methamphetamine. Boyt, Jr. manufactured and distributed methamphetamine. At the sentencing hearings, the district court found that Boyt, Jr. was responsible for the possession of 125.28 grams of pseudoephedrine, while Stokes was responsible for the possession of 222.48 grams of pseudoephedrine. The offenses occurred from 2013 to January 2015, in Perry, Randolph, Williamson, Jackson, and Franklin Counties. Co-defendant Haslett has pled guilty and is currently being held without bond pending a February 2, 2016, sentencing hearing.
The ongoing investigation is being conducted by the Randolph County Sheriff’s Office, Jackson County Sheriff’s Office, Steeleville Police Department, Coulterville Police Department, Sparta Police Department, Perry County Drug Task Force, and Illinois State Police Methamphetamine Response Team. The Randolph County State’s Attorney’s Office also assisted in the investigation.
The case is assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
Raleigh Attorney Pleads Guilty to Federal Fraud ChargesRead the Press Release
GREENSBORO, N.C. – Raleigh attorney Joseph Lee Levinson pleaded guilty to conspiracy to make false statements to federally insured financial institutions, announced Ripley Rand, United States Attorney for the Middle District of North Carolina. He will be sentenced by United States District Judge James A. Beaty, Jr., in Winston-Salem on May 19, 2016.
Joseph Lee Levinson pleaded guilty to one count of conspiracy to make false statements to federally insured financial institutions in violation of Section 1014 of Title 18 of the United States Code. This charge carries a maximum sentence of five years in prison and a $250,000 fine. Levinson remains out of custody on pretrial release pending sentencing.
From 2005 until 2010, Jotham Walker Pruitt and other individuals operated a marijuana “grow” operation in Orange County, North Carolina. The operation involved the production of marijuana inside houses in the vicinity of the Town of Hillsborough, Orange County, North Carolina. Levinson is a licensed attorney practicing in Raleigh and is a college friend of Jotham Pruitt. Levinson conspired with Jotham Pruitt to obtain mortgage funding for properties to be used as “grow houses,” knowing full well that banks would not loan money to Jotham Pruitt if they knew that the houses were to be used for illegal purposes. Levinson and Jotham Pruitt prepared loan applications to Long Beach Mortgage Corporation and SunTrust Bank falsely representing that the properties would be used for legal purposes, such as a residence or as rental property, when in fact both knew that the houses would be used to grow marijuana. Levinson acted as closing attorney for purchase of the first two grow houses used in the operation.
Levinson also conspired with Jotham Pruitt to present false leases to Countrywide Bank, N.A., to support Pruitt’s application for mortgage funding to purchase a third grow house. Levinson provided Jotham Pruitt with a sample lease to use as a template in creating false leases to present to Countrywide Bank, N.A., showing that previous properties purchased by Jotham Pruitt were rental properties occupied by tenants. In fact, these properties were being used to grow marijuana.
The grow operation ceased in December 2010. Upon completion of the business, Jotham Pruitt ceased making payments on the mortgages on the grow houses, including those he had purchased with the aid of Levinson. The houses were foreclosed on by the lending banks at a total loss of over $250,000.
Jotham Pruitt has pleaded guilty in the United States District Court for the Middle District of North Carolina to related charges. Charges remain pending against other individuals indicted in connection with the scheme.
The case was investigated by the Orange County Sheriff’s Office and Internal Revenue Service - Criminal Investigations in conjunction with the United States Attorney’s Office for the Middle District of North Carolina.
Case Number 1:15CR413-1
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Prattville Man Pleads Guilty to Copyright InfringementRead the Press Release
Montgomery, Alabama– Ivory Vernell Nevels, 53, entered a plea of guilty to criminal copyright infringement and possession of counterfeit currency, announced George L. Beck, Jr., United States Attorney for the Middle District of Alabama. Nevels entered the plea of guilty before United States District Judge Carlos Eduardo Mendoza visiting from the Middle District of Florida.
Nevels, who referred to himself as “Mr. Everything,” had a store in Prattville, Alabama, known as Stack A Dollar. At Stack A Dollar, Nevels sold counterfeit handbags, purses, wallets, watches, and other goods which bore counterfeit marks registered with the United States Patent and Trademark Office. During the investigation, federal agents executed a search warrant at Stack A Dollar and seized approximately $160,000 in counterfeit goods.
Nevels also illegally copied copyrighted music and movies, in violation of federal copyright laws. Theses counterfeit recordings were sold at his store.
As to the Criminal Copyright Infringement charge, Nevels now faces up to five years imprisonment and a fine of $250,000. He faces up to twenty years imprisonment and a $250,000 fine for possession of the counterfeit currency.
A date has not yet been set for his sentencing.
This case was investigated by the United States Secret Service, Department of Homeland Security, Millbrook Police Department, and Prattville Police Department. It was prosecuted by Assistant United States Attorneys Curtis Ivy and Bradley Bodiford.
Physician Assistant, Kyle D. Gandy, Sentenced to Fourteen Months in Prison for Accepting Illegal KickbacksRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney Patrick Miles announced today that Kyle D. Gandy, age 37, a physician assistant who formerly resided in Mt. Pleasant, Michigan, was sentenced to 14 months in prison and two years of supervised release for accepting $1,000.00 in illegal kickbacks for referring patients to medical clinics, physical therapy clinics, and a home health care agency. Gandy is the tenth person, and the fourth physician assistant, convicted of felony charges in connection with a joint federal-state investigation into a kickback scheme initiated by Babubhai Rathod. As part of this felony conviction, Gandy was ordered to pay $18,030.17 in restitution, representing the amount of the referred services paid by Medicare and Medicaid. Gandy will be excluded from participating with the Medicare and Medicaid programs for at least five years.
In sentencing Gandy, U.S. District Judge Janet T. Neff stated that accepting kickbacks is "a very serious crime" that "take[s] advantage of government programs that help so many people." Judge Neff emphasized that receiving illegal kickbacks in any amount is a "strike at the whole [health care] system." Judge Neff further noted the need to punish and deter those who have "the education and opportunity to work in a dignified profession," but use such opportunities "to commit fraud and theft."
In its sentencing memorandum, the Government cited Gandy’s acknowledgements that the subject kickback payments influenced his referral patterns and resulted in services that were not medically necessary. U.S. Attorney Miles reiterated that, "Paying kickbacks for patient referrals distorts the motives of health care professionals. The U.S. Attorney’s Office will continue to aggressively investigate and prosecute all kickback schemes using the available criminal and civil remedies, including felony prosecutions, treble civil damages, monetary penalties, and program exclusions."
"Paying kickbacks for the referral of Medicare or Medicaid patients is a serious crime," said Lamont Pugh III, Special Agent in Charge, U.S. Department of Health & Human Services, Office of Inspector General – Chicago Region. "Kickbacks inappropriately influence health care practitioners’ medical decision making process, lead to overutilization and/or up-coding of services, and further increase program costs. The OIG will continue to aggressively pursue kickback allegations to ensure the integrity of the Medicare and Medicaid programs and protect vital taxpayer dollars."2
This case was the result of a coordinated effort by the U.S. Attorney’s Office for the Western District of Michigan, the Michigan Attorney General’s Office, the Federal Bureau of Investigation, the U.S. Department of Health and Human Services, Office of Inspector General, and Blue Cross Blue Shield of Michigan. Assistant U.S. Attorneys Raymond E. Beckering III and Adam B. Townshend prosecuted this matter.
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Penn Hills Man Conspired to Distribute Cocaine Shipped from CaliforniaRead the Press Release
PITTSBURGH – An Allegheny County resident pleaded guilty in federal court to a charge of conspiracy to possess with intent to distribute and distribute 500 grams or more of cocaine, United States Attorney David J. Hickton announced today.
Aaron Atkins, 34, Penn Hills, Pa., pleaded guilty to one count before United States District Judge Mark R. Hornak.
In connection with the guilty plea, the court was advised that in 2013, the Federal Bureau of Investigation and other agencies joined forces in a multi-agency wiretap investigation of drug trafficking and violence in the Homewood section of Pittsburgh. The interception of wire and electronic communications began in December 2013 and continued through the end of August 2014. During that timeframe, Aaron Atkins was intercepted over the wire conspiring with others to possess with intent to distribute and distribute cocaine, which was shipped from California to the Western District of Pennsylvania through the United States Postal Service or commercial carrier.
Judge Hornak scheduled sentencing for May 16, 2016. The law provides for a minimum sentence of five years in prison, a maximum sentence of 40 years in prison, a fine of not more than $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history of the defendant.
Pending sentencing, the court continued the defendant’s detention.
Assistant United States Attorney Tonya Sulia Goodman is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Greater Pittsburgh Safe Streets Task Force, Wilkinsburg Police Department, Allegheny County Sheriff’s Office, Pennsylvania Office of the Attorney General, Munhall Police Department, Duquesne Police Department, Monroeville Police Department, Allegheny County Police Department, West Mifflin Police Department, Bellevue Police Department, and the Pittsburgh Bureau of Police conducted the investigation that led to the prosecution of Aaron Atkins.
Owner of Bowling Green Market Sentenced to 37 Months in Prison for Weapons ChargesRead the Press Release
BOWLING GREEN, Ky. – The owner of a Bowling Green, Kentucky, market was sentenced today in United States District Court, by United States District Judge Greg N. Stivers, to 37 months in prison and three years of supervised release for multiple weapons charges, announced United States Attorney John E. Kuhn, Jr.
Baraa Fadil Aldabse, 41, of Bowling Green, and owner of Noor Market located on Old Morgantown Road, pleaded guilty in United States District Court on August 25, 2015, to possession of an unregistered short barrel shotgun and possession of firearms (including the short barrel shotgun, an SKS assault rifle, a Rohm .38 caliber revolver, and ammunition), by a person convicted of a misdemeanor crime of domestic violence.
According to the plea agreement, Bowling Green Police received information that Aldabse was selling packages of synthetic marijuana from his business. Based on the information, law enforcement officials obtained and executed a search warrant for the market, where several packages of synthetic marijuana were seized as well as a .38 special caliber revolver. Aldabse admitted to selling synthetic marijuana from his business.
Aldabse gave law enforcement officials permission to search his home on Clearview Avenue and admitted to owning the weapons found there. The weapons found and seized from his home included an SKS rifle located in the closet of the back bedroom as well as a loaded magazine, containing 20 rounds of 7.62 x 39 ammunition lying on top of the rifle. The officers also found a sawed-off shotgun next to the SKS rifle. The Harrington Richardson, Model Topper 158, .16 gauge, single shot shotgun, had a modified barrel length of 9¼ inches and an overall length of 14 inches with no visible serial number. The officers located 20 Remington .16 gauge shotgun shells next to the sawed-off shotgun. Additionally, the officers located a black bag which contained 272 rounds of 7.62 x 39 ammunition. The modified Harrington and Richardson .16 gauge shotgun was not registered to Aldabse in the National Firearm Registration and Transfer Record.
On August 31, 2012, Aldabse was convicted of Assault 4th Degree, Domestic Violence (spouse) Minor Injury (Enhanceable) in Warren District Court Case number 12-M-01797, a misdemeanor crime of domestic violence. He had also previously been convicted of trafficking in synthetic marijuana. He is currently charged in Warren Circuit Court with trafficking in synthetic marijuana (a felony due to the fact that it is his second offense) and possession of drug paraphernalia.
Assistant United States Attorney Jo E. Lawless prosecuted the case. The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) conducted the investigation in connection with the Bowling Green Police Department.
Orlando Woman Sentenced to Three Years in Federal Prison for Stolen Identity Refund FraudRead the Press Release
Orlando, Florida – U.S. District Judge Roy B. Dalton, Jr. yesterday sentenced Shantrell Sharae Stephenson to three years in federal prison for stolen identity refund fraud. She was also ordered to pay $92,532 in restitution to the Internal Revenue Service. She pleaded guilty on August 26, 2015.
According to court documents, Lori Ann Dilworth, a contract employee who worked in the inmate records section at the Orange County Jail, stole the personal identification information of 36 inmates and provided that information to Stephenson and others to use to file false tax returns. Another co-conspirator, Richard Damarick Mitchell, served as an intermediary between Dilworth and Stephenson. In total, more than $100,000 in fraudulent tax returns were filed with the IRS as part of the conspiracy.
Mitchell and Dilworth were also prosecuted for their roles in this conspiracy. On October 26, 2015, Mitchell was sentenced to three years and six months in federal prison. Dilworth was sentenced to two years and one month in federal prison on November 2, 2015.
This case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation. It was prosecuted by Assistant United States Attorney Roger B. Handberg.
Ocean County, New Jersey, Couple Sentenced for Roles in Conspiracy to Kidnap Jewish Husband, Force Him to Give His Wife Religious DivorceRead the Press Release
TRENTON, N.J. - A husband and wife from Lakewood, New Jersey, were sentenced today for their roles in a conspiracy to kidnap a Jewish man and force him to give his wife a religious divorce, known as a “get,” U.S. Attorney Paul J. Fishman announced.
David Wax, 53, who previously pleaded guilty before U.S. District Judge Freda L. Wolfson to an information charging him with conspiracy to commit kidnapping, was sentenced to 84 months in prison. Judy Wax, 51, who previously pleaded guilty before Judge Wolfson to an information charging her with misprision of a felony, was sentenced to two years of probation. Judge Wolfson imposed both sentences today in Trenton federal court.
According to documents filed in this case and statements made in court:
David Wax admitted that in October 2010, he and his conspirators agreed to force a Jewish man to give his wife a get, a document which, according to Jewish law, must be presented by a husband to his wife to effect their divorce.
David Wax lured the victim from Brooklyn, New York, to Wax’s home in Lakewood on Oct. 17, 2010, under the pretense that the victim would work on Talmudic books that David Wax was publishing. When the victim arrived, he was brought upstairs, blindfolded, handcuffed and bound. The victim was then assaulted by Wax and his conspirators until he provided the get.
Judy Wax admitted that she and her husband later replaced a blood-soaked carpet in their home in order to conceal the kidnapping. She also admitted to knowingly failing to notify the authorities of the kidnapping.
The family of the victim’s wife paid David Wax approximately $100,000 to obtain the forced get. His conspirators received approximately $50,000.
In addition to the prison term, Judge Wolfson sentenced David Wax to two years of supervised release.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark, with the investigation.
The government is represented by Assistant U.S. Attorneys R. Joseph Gribko and Sarah Wolfe of the U.S. Attorney’s Office in Trenton.
Defense counsel:
David Wax: Mitchell J. Ansell Esq., Ocean, and Edward Dauber Esq., Newark, New Jersey
Judy Wax: Steven Secare Esq., Toms River, New Jersey.
Non-Native Man from Dulce, N.M., Pleads Guilty to Assaulting Native American WomanRead the Press Release
ALBUQUERQUE – Deandre Lamont Brown, 29, a non-Native man who resides in Dulce, N.M., pleaded guilty today in federal court in Albuquerque, N.M., to an assault of an intimate partner charge.
Brown was arrested on April 17, 2015, on an indictment charging him with assaulting an Indian woman and intimate partner by strangling or suffocating on Oct. 3, 2014, in Indian Country in Rio Arriba County, N.M.
During today’s proceedings, Brown pled guilty to the indictment and admitted to assaulting the victim, a Native American woman who was his intimate partner, by strangling and suffocating her. Under the terms of his plea agreement, Brown will be sentenced within the range of 12 to 36 months in federal prison. A sentencing hearing has yet to be scheduled.
This case was investigated by the Jicarilla Apache Tribal Police Department and is being prosecuted by Assistant U.S. Attorney Novaline D. Wilson.
This case was brought as part of the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native American women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Newport News Men Sentenced for Participation in Scheme to Defraud Hampton Roads Financial InstitutionsRead the Press Release
NEWPORT NEWS, Va. – Preston Frazier, 22, and Keandre Williams, 25, of Newport News, were sentenced today to 64 and 75 months in prison, respectively, for conspiracy to commit bank fraud and aggravated identity theft. They were ordered to pay restitution in the amount of $103,463.11.
Frazier and Williams pleaded guilty on Sept. 28, 2015. According to court documents, beginning in August 2014, Frazier and Williams, along with co-conspirators Shameek Owens, Kendall Anderson, and others, undertook a scheme to defraud financial institutions in Hampton and Newport News, including Wells Fargo, Langley Federal Credit Union, Bayport Credit Union and Navy Federal Credit Union. All four individuals recruited account holders of these financial institutions to provide their debit cards and personal identification numbers (PIN), for a period of time in exchange for monetary payment. Members of the conspiracy would then deposit worthless and stolen checks, and altered money orders into the compromised accounts using various ATM’s located throughout Hampton Roads. Policies of the targeted financial institutions authorized immediate access to funds deposited by check in this manner. Following the deposits, members of the conspiracy would withdraw the maximum allowable amount from the ATM’s during the initial transaction and then conduct additional withdrawals at other ATM’s in order to obtain the maximum daily withdrawal amount. They would also use the compromised debit cards to conduct large purchases at local retailers and later return the items for cash. Frazier and Williams were identified, alone and with others, conducting the fraudulent deposits and withdrawals through video recordings captured by the targeted financial institutions.
Owens pleaded guilty on Oct. 5, 2015, and will be sentenced on Jan. 25, 2016. Anderson pleaded guilty on Oct. 20, 2015, and will be sentenced on Feb. 10, 2016.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, made the announcement after sentencing by U.S. District Judge Mark S. Davis. This investigation was coordinated by the Newport News Financial Crimes Task Force, an interagency partnership between Federal, State and local investigators to investigate and prosecute financial fraud cases in Virginia. The task force is comprised of several agencies, including the United States Postal Inspection Service, the Internal Revenue Service, U.S. State Department, Newport News Police Department, Hampton Police Department and the United States Attorney’s Office. Assistant U.S. Attorneys Kaitlin C. Gratton and Brian J. Samuels 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. 4:15cr43.
Nebraska Woman Sentenced for Bank TheftRead the Press Release
United States Attorney Deborah R. Gilg announced that on January 11, 2016, Chief United States District Court Judge Laurie Smith Camp sentenced Margaret Cherovsky of Wahoo, Nebraska, age 65, to a term of time served and a five (5) year term of supervised release, following her conviction for theft by a bank employee.
Between 1969 and 2014 Cherovsky was an employee of FirstBank of Nebraska, Wahoo branch, within the District of Nebraska. In April, 2014, Cherovsky reported to FirstBank of Nebraska representatives that she had taken cash from FirstBank of Nebraska over the last 20 years. A cash count by a bank employee revealed a shortfall of $323,036.00. Cherovsky immediately repaid $323,036.00 to FirstBank of Nebraska after admitting that she had improperly taken the money.
An investigation revealed that the cash shortfall was the result of Cherovsky depositing "mutilated currency" received by the bank into bank accounts managed or owned by Cherovsky. Cherovsky falsified bank records to conceal the theft. Cherovsky admitted she did not take money from the vault every day but did it "sporadically" to ensure it wasn't discovered.
This case was investigated by the Federal Bureau of Investigation.
Nation’s Largest Nursing Home Therapy Provider, Kindred/Rehabcare, to Pay $125 Million to Resolve False Claims Act AllegationsRead the Press Release
Four Nursing Homes Using Kindred/RehabCare to Pay an Additional $8.225 Million
Contract therapy providers RehabCare Group Inc., RehabCare Group East Inc. and their parent, Kindred Healthcare Inc., have agreed to pay $125 million to resolve a government lawsuit alleging that they violated the False Claims Act by knowingly causing skilled nursing facilities (SNFs) to submit false claims to Medicare for rehabilitation therapy services that were not reasonable, necessary and skilled, or that never occurred, the Department of Justice announced today.
RehabCare Group Inc. and RehabCare Group East Inc. were purchased by the Louisville, Kentucky-based Kindred Healthcare Inc. in 2011 and they now operate under the name RehabCare as a division of Kindred. RehabCare is the largest provider of therapy in the nation, contracting with more than 1,000 SNFs in 44 states to provide rehabilitation therapy to their patients.
“Medicare beneficiaries are entitled to receive care that is dictated by their clinical needs rather than the fiscal interests of healthcare providers,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “All providers, whether contractors or direct billers of taxpayer-funded federal healthcare programs, will be held accountable when their actions cause false claims for unnecessary services.”
The government’s complaint alleged that RehabCare’s policies and practices, including setting unrealistic financial goals and scheduling therapy to achieve the highest reimbursement level regardless of the clinical needs of its patients, resulted in Rehabcare providing unreasonable and unnecessary services to Medicare patients and led its SNF customers to submit artificially and improperly inflated bills to Medicare that included those services. Specifically, the government’s complaint alleged that RehabCare’s schemes included the following:
- Presumptively placing patients in the highest therapy reimbursement level, rather than relying on individualized evaluations to determine the level of care most suitable for each patient’s clinical needs;
- During the period prior to Oct. 1, 2011, boosting the amount of reported therapy during “assessment reference periods,” thereby causing and enabling SNFs to bill for the care of their Medicare patients at the highest therapy reimbursement level, while providing materially less therapy to those same patients outside the assessment reference periods, when the SNFs were not required to report to Medicare the amount of therapy RehabCare was providing to their patients (a practice known as “ramping”);
- Scheduling and reporting the provision of therapy to patients even after the patients’ treating therapists had recommended that they be discharged from therapy;
- Arbitrarily shifting the number of minutes of planned therapy among different therapy disciplines (i.e., physical, occupational and speech therapy) to ensure targeted therapy reimbursement levels were achieved, regardless of the clinical need for the therapy;
- Especially after Oct. 1, 2011 and continuing through Sept. 30, 2013, providing significantly higher amounts of therapy at the very end of a therapy measurement period not due to medical necessity but rather to reach the minimum time threshold for the highest therapy reimbursement level, to enable SNFs to bill for the care of their Medicare patients accordingly, even though the patients were receiving materially less therapy on preceding days;
- Inflating initial reimbursement levels by reporting time spent on initial evaluations as therapy time rather than evaluation time;
- Reporting that skilled therapy had been provided to patients when in fact the patients were asleep or otherwise unable to undergo or benefit from skilled therapy (e.g., when a patient had been transitioned to palliative end-of-life care); and
- Reporting estimated or rounded minutes instead of reporting the actual minutes of therapy provided.
“This False Claim Act settlement addresses allegations that RehabCare and its nursing facility customers engaged in a systematic and broad-ranging scheme to increase profits by delivering, or purporting to deliver, therapy in a manner that was focused on increasing Medicare reimbursement rather than on the clinical needs of patients,” said U.S. Attorney Carmen M. Ortiz for the District of Massachusetts. “The complaint outlines the extent and sophistication of this fraud, and the government’s continuing work to ensure that the provision of care in skilled nursing facilities is based on patients’ clinical needs.”
“Health providers seeking to increase Medicare profits, rather than providing suitable, high-quality care, will be investigated and prosecuted,” said Inspector General Daniel R. Levinson for the U.S. Department of Health and Human Services (HHS). “Under our robust compliance agreement, an outside review organization will scrutinize a random sample of medical records annually to assess the medical necessity and reasonableness of therapy services provided by RehabCare.”
In addition to RehabCare, the Department of Justice also announced settlements today with four SNFs for their role in submitting claims to Medicare that were false because they were based in part on therapy provided by RehabCare that was not reasonable, necessary and skilled, or that did not occur. These settlements include: A $3.9 million settlement with Wingate Healthcare Inc. and 16 of its facilities in Massachusetts and New York; A $2.2 million settlement with THI of Pennsylvania at Broomall LLC and THI of Texas at Fort Worth LLC; A $1.375 million settlement with Essex Group Management and two of its Massachusetts facilities, Brandon Woods of Dartmouth and Blaire House of Milford and a $750,000 settlement with Frederick County, Maryland, which formerly operated the Citizens Care skilled nursing facility. The department had previously reached settlements with a number of other SNFs for similar conduct. See http://www.justice.gov/opa/pr/two-companies-pay-375-million-allegedly-causing-submission-claims-unreasonable-or-unnecessary; http://www.justice.gov/opa/pr/episcopal-ministries-aging-inc-pay-13-million-allegedly-causing-submission-claims; http://www.justice.gov/usao-ma/pr/new-york-catholic-nursing-chain-pay-35-million-resolve-allegations-concerning-claims; http://www.justice.gov/usao-ma/pr/maine-nursing-home-pay-12-million-resolve-allegations-concerning-rehabilitation-therapy.
The settlement with RehabCare resolves allegations originally brought in a lawsuit filed under the qui tam, or whistleblower, provisions of the False Claims Act by Janet Halpin, a physical therapist and former rehabilitation manager for RehabCare and Shawn Fahey, an occupational therapist who worked for RehabCare. The act permits private parties to sue on behalf of the government for false claims for government funds and to receive a share of any recovery. The government may intervene and file its own complaint in such a lawsuit, as it has done in this case. The whistleblowers will receive nearly $24 million as their share of the recovery from RehabCare.
The settlements announced today illustrate 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 $27.1 billion through False Claims Act cases, with more than $17.1 billion of that amount recovered in cases involving fraud against federal health care programs. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, including the conduct described in the United States’ complaint, can be reported to the Department of Health and Human Services, at 800-HHS-TIPS (800-447-8477).
This matter was handled by the Civil Division’s Commercial Litigation Branch; the U.S. Attorney’s Office for the District of Massachusetts; HHS Office of Inspector General and the FBI.
The case is captioned United States ex rel. Halpin and Fahey v. Kindred Healthcare, Inc., et al., Case No. 1:11cv12139-RGS (D. Mass.).
The claims settled are allegations only, and there has been no determination of liability.
Modesto Man Sentenced to Prison for Stealing More Than $316,000 of Government Property from the Tracy DLA DepotRead the Press Release
SACRAMENTO, Calif. — Eric M. Shaffer, 42, of Modesto, was sentenced today by United States District Judge John A. Mendez to one year and a day in prison for theft of Department of Defense property worth more than $316,000, United States Attorney Benjamin B. Wagner announced.
According to court documents, Shaffer was an employee at the Department of Defense Logistics Agency, San Joaquin Distribution Center, in Tracy, (Tracy DLA Depot). Shaffer regularly had access to new goods delivered by venders that were stored at the Tracy DLA Depot before being shipped to military bases in the Pacific Ocean region and elsewhere.
Between February 2011, and January 2015, Shaffer stole from the Tracy DLA Depot at least 660 items of government property and resold them in approximately 365 transactions, including 325 auctions on a popular online auction website. Shaffer’s scheme generated approximately $238,000 in illicit revenue. The approximate replacement value of the property Shaffer stole and resold exceeded $316,000. In addition to the prison sentence today, Judge Mendez ordered Shaffer to pay $316,557 in restitution.
This case was the product of an investigation by the General Services Administration, Office of Inspector General; the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and the Department of Defense, Defense Criminal Investigative Service. Assistant U.S. Attorney André M. Espinosa prosecuted the case.
Michigan Residents Sentenced to Prison for Mortgage Fraud SchemeRead the Press Release
Recruited Straw Buyers to Purchase Homes and Submit Fraudulent Mortgage Applications
Five residents of the Detroit, Michigan, area were sentenced to prison this week for their roles in a multi-year mortgage fraud conspiracy, Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division announced today.
Between January 2006 and December 2008, the perpetrators of the scheme purchased single-family homes in Detroit for approximately $5,000 to $40,000 each and re-sold the homes to third party individuals, referred to as “straw buyers,” that they recruited. The co-conspirators then caused fraudulent mortgage loan applications in the names of the straw buyers to be submitted to financial institutions.
On July 16, 2014, a grand jury returned a superseding indictment charging seven defendants with conspiracy to commit bank fraud, bank fraud, aiding and assisting in the filing of false tax returns and bankruptcy fraud. All of the defendants named in the superseding indictment pleaded guilty to conspiracy to commit bank fraud for their role in the scheme.
On Jan. 11 and 12, U.S. District Judge Bernard A. Friedman of the Eastern District of Michigan announced the following sentences:
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Jason Najor, 39, of West Bloomfield Township, Michigan, was sentenced to 16 months in prison, followed by four years of supervised release, and ordered to pay restitution to the affected financial institutions in the amount of $705,900.
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Jeffrey Najor, 32, of Wixom, Michigan, was sentenced to 24 months in prison, followed by four years of supervised release, and ordered to pay restitution to the affected financial institutions in the amount of $1,707,200.
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Suhail Hallak, 59, of Oak Park, Michigan, was sentenced to 15 months in prison, followed by three years of supervised release, and ordered to pay restitution to the affected financial institutions in the amount of $759,804.
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Joey Murad, 37, of Old Shelby Township, Michigan, was sentenced to 33 months in prison, followed by four years of supervised release, and ordered to pay restitution to the affected financial institutions in the amount of $188,904.
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Al Karana, 46, of Old Sterling Heights, Michigan, was sentenced to one day in jail, followed by three years of supervised release to include one year of home confinement, and ordered to pay restitution to the affected financial institutions in the amount of $204,600.
Two of the defendants named in the superseding indictment were previously sentenced to prison. In January 2015, Wasseem Shamoun, 50, of Northville, Michigan, was sentenced to 15 months in prison and ordered to pay restitution to the in the amount of $394,000, following his plea of guilty to conspiracy to commit bank fraud. In September 2014, Peter Allen, 44, of Southfield, Michigan, was sentenced to 21 months in prison and ordered to pay restitution in the amount of $194,300, for his role in the bank fraud scheme.
In addition to the seven defendants named in the superseding indictment, two other individuals connected to the scheme have pleaded guilty and been sentenced to prison. In September 2015, Mary Ann Paschal, who served as a straw buyer for multiple properties and received substantial fees for her participation, was sentenced to one year and one day in prison and ordered to pay restitution in the amount of $523,750. Also in September 2015, Shawn Alexander Reed, a mortgage broker who assisted in the preparation of false mortgage loan applications, pleaded guilty and was sentenced to 15 months in prison.
Acting Assistant Attorney General Ciraolo thanked special agents of the FBI, Internal Revenue Service-Criminal Investigation and the Drug Enforcement Administration, who investigated the case and Senior Litigation Counsel Corey Smith and Trial Attorney Mark McDonald of the Tax Division, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division website.
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Michigan Man Sentenced on Identity Theft ChargesRead the Press Release
St. Louis, MO – SHAUN VASSER, of Detroit, Michigan, was sentenced to 24 months in prison Monday afternoon for his role in a four-person identity theft ring which was disrupted in St. Louis County this summer. He appeared for sentencing before United States District Judge Henry Autrey.
Vasser had pleaded guilty to aggravated identity theft for his role in a ring that possessed a credit card encoder and names and identities of multiple individuals. The group used the names and information to create counterfeit gift cards and other access devices, which were successfully passed at area stores.
In addition to his prison term, Vasser was ordered to remain on court supervision for one year after his release from prison and further ordered to pay restitution to the credit card companies victimized by his crime. Vasser’s three co-defendants, Jazmine Farmer, Amber Lindsay and Shukree Melton have all also pleaded guilty and await sentencing later this year.
The case was investigated by the St. Louis County Police Department and the St. Louis Office of the U.S. Secret Service. Assistant United States Attorney Tom Albus handled the case for the U.S. Attorney’s Office.
McKees Rocks Man Pleads Guilty in FBI Wiretap Investigation in Drug TraffickingRead the Press Release
PITTSBURGH - A McKees Rocks resident pleaded guilty in federal court to a charge of conspiracy to possess with intent to distribute and distribute 500 grams or more of cocaine, United States Attorney David J. Hickton announced today.
Ellis Harris, 45, pleaded guilty to one count before United States District Judge Mark R. Hornak.
In connection with the guilty plea, the court was advised that in 2013, the Federal Bureau of Investigation and other agencies joined forces in a multi-agency wiretap investigation of drug trafficking and violence in the Homewood section of Pittsburgh. The interception of wire and electronic communications began in December 2013 and continued through the end of August 2014. During that timeframe, Ellis Harris was intercepted over the wire conspiring with others to possess with intent to distribute and distribute cocaine, which was shipped from California to the Western District of Pennsylvania through the United States Postal Service or commercial carrier, and heroin, which the conspirators obtained in Cleveland, Ohio, and transported to the Western District of Pennsylvania for further distribution.
Judge Hornak scheduled sentencing for May 16, 2016. The law provides for a minimum sentence of five years in prison, a maximum sentence of 40 years in prison, a fine of not more than $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history of the defendant.
Pending sentencing, the court continued the defendant’s detention.
Assistant United States Attorney Tonya Sulia Goodman is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Greater Pittsburgh Safe Streets Task Force, Wilkinsburg Police Department, Allegheny County Sheriff’s Office, Pennsylvania Office of the Attorney General, Munhall Police Department, Duquesne Police Department, Monroeville Police Department, Allegheny County Police Department, West Mifflin Police Department, Bellevue Police Department, and the Pittsburgh Bureau of Police conducted the investigation that led to the prosecution of Ellis Harris.
Mark Olson Was Sentenced to 135 Months ImprisonmentRead the Press Release
HAMMOND – United States Attorney for the Northern District of Indiana, David Capp, announced that Mark H. Olson, age 39, of Chesterton, Indiana, was sentenced Monday, January 11, 2016, in federal court by Chief Judge Philip Simon after pleading guilty to one count of distribution of child pornography.
Olson was sentenced to 135 months imprisonment, 10 years supervised release and ordered to pay restitution in the amount of $12,000.
According to documents filed in the case, between May and September of 2013, Olson used his work computer at his place of employment to send and receive child pornography with numerous individuals he met through a foreign website. The images depicted actual minors under the age of eighteen, including prepubescent minors, engaging in sexually explicit conduct.
This case was the result of an investigation by Homeland Security Investigations. The case was handled by Assistant United States Attorney Abizer Zanzi.
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Luzerne County Man Sentenced to 78 Months in Prison for Heroin Trafficking and Illegal ReentryRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that a citizen of the Dominican Republic who reentered the United States after being deported and resided in Luzerne County, was sentenced to 78 months in prison today by Senior U.S. District Court Judge Richard P. Conaboy in Scranton, for distributing large quantities of heroin in the summer of 2014, and illegally reentering the country.
According to United States Attorney Peter Smith, the defendant, Edwin Guerrero-Guerrero, age 35, who resided in Hazleton under a false name and identity, pleaded guilty to the charges on September 15, 2015. Guerrero-Guerrero admitted to distributing and possessing with intent to distribute in excess of 500 grams of heroin, which is the equivalent of approximately 17,000 retail bags of heroin, after he had illegally reentered the United States.
Guerrero-Guerrero was charged in a criminal Information in August 2015, as a result of an investigation by agents of the Federal Bureau of Investigation (FBI), immigration enforcement agents with the Department of Homeland Security, and Scranton Police.
Judge Conaboy also ordered Guerrero-Guerrero to be placed on four years of supervised release following his prison sentence. Guerrero-Guerrero also faces possible deportation.
Assistant U.S. Attorney Francis P. Sempa prosecuted the case.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the heroin initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies.
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Logan County Home Care Giver Sentenced to 24 Months in Prison for Aggravated Identity TheftRead the Press Release
Ordered to pay $56,543.93 in restitution
BOWLING GREEN, Ky. – A Logan County, Kentucky home care giver was sentenced today in U.S. District Court by U.S. District Judge Greg N. Stivers to 24 months in prison, followed by a one year period of supervised release and ordered to pay restitution in the amount of $56,543.93 for committing identity theft announced United States Attorney John E. Kuhn, Jr.
Crystal Hullett, age 39, of Russellville, pleaded guilty to five counts of aggravated identity theft before District Judge Stivers on September 2, 2015.
According to the plea agreement, Hullett was a home care giver to 92-year-old R.W. between June 2012 and January 2014. During that time, Hullett defrauded R.W. of money and property by making unauthorized purchases of personal items and gift cards at various merchants in Russellville, Kentucky by using R.W.’s debit card. Further, Hullett knowingly possessed and used the name, signature, and debit card of R.W. without lawful authority.
During sentencing, the United States moved for the dismissal of counts 1,2,3,4, and 5 of the indictment and agreed that the sentence of 24 months was appropriate. The restitution order of $56,543.93 was due at sentencing.
This case was prosecuted by Assistant United States Attorney Joshua Judd and was investigated by United States Secret Service, United States Postal Inspection Service and the Russellville Police Department.
Local Dermatologist, Cordova-based Medical Practice to Pay $450,000 for Overbilling MedicareRead the Press Release
Memphis, TN – A doctor and his Cordova-based medical practice will pay $450,000 to the government to resolve allegations that it billed Medicare for unnecessary dermatological surgical procedures and office visits. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the settlement today.
Under federal law, Medicare reimburses medical providers only for procedures that are medically necessary. The United States contends that from 2008 to 2011, Dr. George R. Woodbury and his medical practice, Rheumatology & Dermatology Associates, P.C., billed Medicare for multiple medically unnecessary procedures. Specifically, the complaint alleged that Woodbury billed for tissue rearrangement surgeries; excisions which were larger than actually performed; benign excisions as malignant; overstated repair or closure sizes; and for unnecessary office visits.
In October 2014, the allegations resolved in this settlement were first raised in a lawsuit filed against the defendant under provisions of the False Claims Act. The law provides the United States with a cause of action against any person who knowingly presents or causes to be presented a false or fraudulent claim for payment or approval. Damages for liability under the False Claims Act are up to triple the amount of actual damages suffered by the United States, plus a mandatory civil penalty of $5,500 to $11,000 for each claim.
"Billing Medicare for dermatological surgical procedures that are not necessary or appropriate contributes to the soaring costs of health care and harms patients," said U.S. Attorney Stanton. "Settlements like this protect public funds and safeguard the beneficiaries of federal health care programs."
The investigation was conducted by the United States Department of Health and Human Services – Office of the Inspector General, along with the Federal Bureau of Investigation.
Assistant U.S. Attorneys Stuart J. Canale and David Brackstone represented the United States in this matter.
The claims settled by this agreement are allegations only, and there has been no determination of liability.
Leader of Meth Ring Sentenced to 170 MonthsRead the Press Release
COLUMBUS, Ohio – Simon Velazquez-Gonzalez, 27, formerly of Hilliard, Ohio was sentenced in U.S. District Court to 170 months in prison for his role in trafficking more than nine kilograms of methamphetamine. Agents seized more than 20 pounds of “ice” – a form of methamphetamine of 98 to 100 percent purity – in this case.
Carter M. Stewart, United States Attorney for the Southern District of Ohio and Joseph P. Reagan, Special Agent in Charge, Drug Enforcement Administration (DEA) Detroit Field Division announced the sentence handed down today by U.S. District Judge Gregory L. Frost.
In February and March 2015, through the use of an undercover officer, law enforcement agents made methamphetamine purchases from Velazquez-Gonzalez and his co-conspirators. They discovered a substantial quantity of the drug, over $11,000 in cash and three firearms when executing search warrants at locations used by the narcotics trafficking operation, including at Velazquez-Gonzalez’s residence in Hilliard, Ohio.
Velazquez-Gonzalez pleaded guilty on July 30, 2015 to one count of conspiracy to possess with intent to distribute 500 grams or more of methamphetamine.
A co-conspirator in this case, Marcelino Montoya-Sanchez, remains a fugitive. If you have information regarding his whereabouts, please contact the DEA.
U.S. Attorney Stewart commended the cooperative investigation by the DEA, as well as Assistant United States Attorneys Brian J. Martinez and Michael J. Hunter, who are representing the United States in this case.
Lafayette man sentenced to 10 years in prison for shooting at postal workerRead the Press Release
LAFAYETTE, La. – United States Attorney Stephanie A. Finley announced that a Lafayette man was sentenced Monday to 120 months in prison for firing a gun at a postal worker.
David C. Sonnier, 41, of Lafayette, was sentenced by U.S. District Judge Richard T. Haik on one count of discharging a firearm during commission of a crime of violence. He was also sentenced to two years of supervised release and ordered to pay $1,178 restitution. According to the September 16, 2015 guilty plea, Sonnier admitted that on March 27, 2014 he shot a Hi Point 9 mm semi-automatic pistol at the door of the postal worker’s vehicle, which was passing in front of Sonnier’s home. The bullet passed through the driver’s side door and the postal worker’s pant leg before becoming lodged in the opposite side of the vehicle, which caused approximately $1,178 of damage.
The U.S. Postal Inspection Service, the FBI and the Lafayette Police Department investigated the case. Assistant U.S. Attorney Joseph T. Mickel prosecuted the case.
Kansas Couple Sentenced for Fraud on SBA LoansRead the Press Release
KANSAS CITY, KAN. – A Kansas couple was sentenced Monday for fraudulently obtaining loans from the Small Business Administration, U.S. Attorney Barry Grissom said.
Justin Johnson, 40, Wellsville, Kan., was sentenced to six months house arrest, followed by three years supervised release, and restitution of $53,000. His wife, Penny Johnson, 39, Wellsville, Kan., was sentenced to three years on probation and $53,000 restitution.
The defendants pleaded guilty to one count each of making false statements to the Small Business Administration and one count each of money laundering. Justin Johnson owned and operated several construction–related businesses including J-Right, Midland Concrete, A-Vision Landscape, Stucco Masters, Kingdom Homes and Timberview Construction. Penny Johnson was the bookkeeper for her husband’s businesses.
In their pleas, the Johnsons admitted they received a loan through the SBA Express loan program they claimed was for the purchase of equipment. In fact, the loan funds were used to pay off equipment loans and to make payments on construction loans held by Johnson’s various businesses. Loan funds also were used by the Johnsons for their personal use.
Grissom commended the Small Business Administration, the FBI, the Internal Revenue Service and Assistant U.S. Attorney Jabari Wamble for their work on the case.