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16 February 2016
Florida Man Sentenced to 25 Years in Prison for Methamphetamine and Gun ChargesRead the Press Release
BOISE – Michael Angelo Sapp, 40, of Pensacola, Florida, was sentenced today in United States District Court to 300 months in prison, followed by five years of supervised release, for possession with intent to distribute methamphetamine and unlawful possession of a firearm, U.S. Attorney Wendy J. Olson announced. Senior U.S. District Judge Edward J. Lodge also ordered Sapp to forfeit a firearm and $6,000 in drug proceeds. Sapp was convicted by a federal jury on November 20, 2015, after a three-day trial.
According to evidence presented at trial and at his sentencing hearing, Sapp, who was then living in Meridian, Idaho, was involved in a high speed chase the night of December 23, 2014. Meridian police officers attempted to stop him after he was reported as an intoxicated driver who hit a pole at the McDonald’s drive thru located at 195 E. Central in Meridian. During the chase that followed, Sapp reached speeds of 90 miles per hour, drove in the wrong lane and ran several red lights. Officers finally stopped him near Meridian and Chinden roads. The jury found that Sapp possessed with the intent to distribute 174 grams of pure methamphetamine, which was found in his vehicle. The jury also found him guilty of possessing a .380 semi-automatic pistol. Sapp had previously been convicted in the state of Florida of grand theft firearm, burglary, grand theft of more $10,000, grand theft of $300-500, possession of a firearm by convicted felon, burglary of an unoccupied conveyance, pawnbroker transaction fraud, dealing in stolen property by trafficking, fraud upon secondary metals recyclers, grand theft of a firearm, and grand theft. At the time of his arrest, he was wanted on felony warrants out of the state of Florida, and had fled the state to avoid arrest.
Judge Lodge found that Sapp obstructed justice by committing perjury at trial and by attempting to unlawfully influence witnesses. Sapp also received a sentencing enhancement for creating a substantial risk of death or serious bodily injury to other persons in the course of fleeing from law enforcement.
The case was investigated by the Meridian Police Department, the Ada County Sheriff’s Office, the Drug Enforcement Administration, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
The case was prosecuted by the Special Assistant U.S. Attorney hired by the Ada County Prosecuting Attorney’s Office and the Idaho High Intensity Drug Trafficking Area Board. The Idaho High Intensity Drug Trafficking Board is a collaboration of local law enforcement drug task forces and prosecuting agencies dedicated to addressing regional drug trafficking organizations that operate in Ada, Canyon, and Malheur County.
Federal Monitor Finds Seattle Police Department’s Crisis Intervention Efforts in Initial Compliance with Consent Decree RequirementsRead the Press Release
Federal Monitor Merrick Bobb filed an assessment today that finds that the Seattle Police Department’s (SPD) new crisis intervention policies, training and operations to engage people in crisis are in initial compliance with the crisis intervention provisions of the court-ordered agreement with the Department of Justice. The federal monitor filed the ninth of 15 formal assessments with the U.S. District Court and concluded that “there has been a real, tangible, and objective change in the way Seattle police are interacting, compassionately and with an eye towards treatment, with those in crisis.”
Specifically, the formal assessment found:
(1) SPD is dispatching its now large and trained cadre of crisis intervention-trained officers to crisis events in the great majority of instances;
(2) initial data indicates that officers use force against individuals in crisis less than two percent of the time and, when they do use force, 80 percent of the time they use the lowest level of force – and did not once use the highest level of force – even in high-risk situations;
(3) over the past two years, all officers have received some level of crisis intervention training, which has been approved by the Department of Justice, the monitor and the federal court and developed in collaboration with the Crisis Intervention Committee (CIC), an all-voluntary interagency advisory committee composed of the region’s leading mental and behavioral health experts, social service providers, clinicians, community advocates, academics, other law enforcement agencies, the judiciary and members of SPD;
(4) a sufficient number of officers appear to be stationed throughout the city, and on all watches, to provide coverage for crisis incidents;
(5) SPD has institutionalized attention to crisis intervention work by establishing and funding the CIT Program, implementing training and data collection processes, and continuing to take the lead in maintaining the CIC; and
(6) SPD is making strong efforts to guide people in crisis into the social service system, as opposed to arresting and jailing them.
“As we have seen across the country, interactions between police officers and people in crisis, particularly those with mental illness, are a critical issue facing police today,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “Without proper policies and training, these interactions have too often led to force being used against individuals in crisis, at times with disastrous results for both the officers and the individual. We have also seen that, without effective programs in place, individuals with mental illness or other disabilities are being unnecessarily arrested and jailed, impairing effective treatment and overburdening our jails. The Seattle Police Department has made tremendous progress in addressing these issues, and it is quickly becoming a model for departments across the nation.”
“Police officers in Seattle are expected to make 10,000 contacts with people in crisis this year, and each of those encounters presents real and unique challenges to public safety and officer safety,” said U.S. Attorney Annette L. Hayes of the Western District of Washington. “In the past, many interactions with people in crisis resulted in force being used, but organizational and operational changes around crisis intervention, including training officers and empowering them to use discretion and de-escalation, are making a real difference. SPD has embraced best practices and are approaching and resolving crisis situations in ways that increase safety and reduce the use of force.”
The overall purpose of the assessment was to determine whether specially trained officers are being dispatched to incidents involving individuals in crisis, appropriately leading interactions with individuals in crisis and minimizing the need to use force against these individuals (for example through de-escalation techniques). In addition, the monitoring team assessed efforts that underlie the SPD’s ability to effectively meet certain requirements of the consent decree, including: adequately training officers; providing sufficient staffing in the field; maintaining the CIC to help drive a thoughtful and collaborative crisis intervention process; ensuring the ability to properly dispose of crisis incidents, including with attempted referrals to the social service system or arrest where appropriate; and maintaining a data tracking system to provide an ongoing feedback loop to system improvement and accountability.
Contrasting the approach to policing those in crisis prior to the consent decree – when SPD, like many other departments, had “no consistent, unified approach to crisis events” – the monitor found that SPD “ha[d] created a full-fledged crisis intervention program that is successfully being woven into the SPD organization.”
The full assessment is attached.
Previous assessments
Information about the previous assessments can be found here:
- First four assessments relating to use of force reporting and investigations: http://www.justice.gov/usao-wdwa/pr/monitor-finds-seattle-police-initial-compliance-requirements-relating-reporting
- Fifth assessment covering the Force Review Board: http://www.justice.gov/usao-wdwa/pr/monitor-finds-seattle-police-department-s-force-review-board-initial-compliance-consent
- Sixth assessment concerning the Office of Professional Accountability: http://www.justice.gov/usao-wdwa/pr/assessment-seattle-police-department-s-office-professional-accountability-filed-court
- Seventh and eight assessments covering public confidence and community trust: http://www.justice.gov/usao-wdwa/pr/assessments-public-confidence-and-community-trust-seattle-police-department-filed-court
Upcoming assessments
The next assessments to be filed in March include assessments of SPD’s Early Intervention System and three uses of force-related assessments covering officer uses of force, use of force data and officer activity level.
Seattle Monitor's Assessment
Federal Monitor Finds Seattle Police Department's Crisis Intervention Efforts in Initial Compliance with Consent Decree RequirementsRead the Press Release
SEATTLE – Federal Monitor Merrick Bobb filed an assessment today that finds that the Seattle Police Department’s (SPD) new crisis intervention policies, training and operations to engage people in crisis are in initial compliance with the crisis intervention provisions of the court-ordered agreement with the Department of Justice. The federal monitor filed the ninth of 15 formal assessments with the U.S. District Court and concluded that “there has been a real, tangible, and objective change in the way Seattle police are interacting, compassionately and with an eye towards treatment, with those in crisis.”
Specifically, the formal assessment found:
(1) SPD is dispatching its now large and trained cadre of crisis intervention-trained officers to crisis events in the great majority of instances;
(2) initial data indicates that officers use force against individuals in crisis less than two percent of the time and, when they do use force, 80 percent of the time they use the lowest level of force – and did not once use the highest level of force – even in high-risk situations;
(3) over the past two years, all officers have received some level of crisis intervention training, which has been approved by the Department of Justice, the monitor and the federal court and developed in collaboration with the Crisis Intervention Committee (CIC), an all-voluntary interagency advisory committee composed of the region’s leading mental and behavioral health experts, social service providers, clinicians, community advocates, academics, other law enforcement agencies, the judiciary and members of SPD;
(4) a sufficient number of officers appear to be stationed throughout the city, and on all watches, to provide coverage for crisis incidents;
(5) SPD has institutionalized attention to crisis intervention work by establishing and funding the CIT Program, implementing training and data collection processes, and continuing to take the lead in maintaining the CIC; and
(6) SPD is making strong efforts to guide people in crisis into the social service system, as opposed to arresting and jailing them.
“As we have seen across the country, interactions between police officers and people in crisis, particularly those with mental illness, are a critical issue facing police today,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “Without proper policies and training, these interactions have too often led to force being used against individuals in crisis, at times with disastrous results for both the officers and the individual. We have also seen that, without effective programs in place, individuals with mental illness or other disabilities are being unnecessarily arrested and jailed, impairing effective treatment and overburdening our jails. The Seattle Police Department has made tremendous progress in addressing these issues, and it is quickly becoming a model for departments across the nation.”
“Police officers in Seattle are expected to make 10,000 contacts with people in crisis this year, and each of those encounters presents real and unique challenges to public safety and officer safety,” said U.S. Attorney Annette L. Hayes of the Western District of Washington. “In the past, many interactions with people in crisis resulted in force being used, but organizational and operational changes around crisis intervention, including training officers and empowering them to use discretion and de-escalation, are making a real difference. SPD has embraced best practices and are approaching and resolving crisis situations in ways that increase safety and reduce the use of force.”
The overall purpose of the assessment was to determine whether specially trained officers are being dispatched to incidents involving individuals in crisis, appropriately leading interactions with individuals in crisis and minimizing the need to use force against these individuals (for example through de-escalation techniques). In addition, the monitoring team assessed efforts that underlie the SPD’s ability to effectively meet certain requirements of the consent decree, including: adequately training officers; providing sufficient staffing in the field; maintaining the CIC to help drive a thoughtful and collaborative crisis intervention process; ensuring the ability to properly dispose of crisis incidents, including with attempted referrals to the social service system or arrest where appropriate; and maintaining a data tracking system to provide an ongoing feedback loop to system improvement and accountability.
Contrasting the approach to policing those in crisis prior to the consent decree – when SPD, like many other departments, had “no consistent, unified approach to crisis events” – the monitor found that SPD “ha[d] created a full-fledged crisis intervention program that is successfully being woven into the SPD organization.”
The full assessment is attached.
Previous assessments
Information about the previous assessments can be found here:
- First four assessments relating to use of force reporting and investigations: http://www.justice.gov/usao-wdwa/pr/monitor-finds-seattle-police-initial-compliance-requirements-relating-reporting
- Fifth assessment covering the Force Review Board: http://www.justice.gov/usao-wdwa/pr/monitor-finds-seattle-police-department-s-force-review-board-initial-compliance-consent
- Sixth assessment concerning the Office of Professional Accountability: http://www.justice.gov/usao-wdwa/pr/assessment-seattle-police-department-s-office-professional-accountability-filed-court
- Seventh and eight assessments covering public confidence and community trust: http://www.justice.gov/usao-wdwa/pr/assessments-public-confidence-and-community-trust-seattle-police-department-filed-court
Upcoming assessments
The next assessments to be filed in March include assessments of SPD’s Early Intervention System and three use of force-related assessments covering officer uses of force, use of force data and officer activity fifth_systemic_assessment-crisis_intervention.pdf (1.98 MB)level.
Federal Court Shuts Down Nationwide Tax Preparation BusinessRead the Press Release
A federal court in Chicago has ordered Servicios Latinos Inc. to close its nationwide tax preparation business, the Justice Department announced today. The order comes after the Justice Department filed a civil lawsuit against the business and its owners, Georgina Lopez, Pamela Miranda and Jorge A. Miranda, alleging that the defendants falsely understated their customers’ tax liabilities or overstated their customers’ entitlement to a tax refund. The injunction also prohibits Lopez, Pamela Miranda and Jorge Miranda from acting as federal tax preparers, owning or operating tax preparation businesses and employing tax preparers. The defendants agreed to entry of the injunction, but did not admit the allegations in the complaint.
According to the complaint, Servicios Latinos operated out of approximately 84 stores in as many as 30 states, with locations including Kennet Square, Pennsylvania; Kansas City, Missouri; and Las Vegas, Nevada. The complaint alleged that the defendants’ employees prepared income tax returns that:
- Falsely claim child tax credits;
- Falsely claim the Earned Income Tax Credit;
- Claim incorrect filing statuses; and
- Report incorrect income and expense figures.
The complaint alleges that Servicios Latinos has prepared more than 42,000 federal income tax returns since 2012. The Internal Revenue Service (IRS) has estimated that the loss to the U.S. Treasury from the defendants’ conduct exceeds $4.7 million for 2014 alone, according to the complaint.
Return preparer fraud has been named one of the Internal Revenue Service’s (IRS) Dirty Dozen Tax Scams for 2016. The IRS has some tips on their website for choosing a tax preparer and has launched a free directory of federal tax preparers. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Eighteen Individuals Sentenced for Running Stolen U.S. Treasury Checks and Identity Theft RingRead the Press Release
Eighteen defendants have been sentenced in a large, stolen U.S. Treasury check and identity theft ring. The defendants ran an elaborate scheme that obtained stolen checks, manufactured fake Georgia driver’s licenses to use in cashing the stolen checks, and opened credit card accounts in the names of unsuspecting victims.
“Fraud and identity theft crimes are a growing problem in our community,” said U.S. Attorney John Horn. “These crimes have long-lasting effects on the victims, destroy credit ratings and deprive victims of benefit checks they often desperately need. For many, it can take years to undo the damage caused by these schemes.”
“The federal prison sentences handed down to this aggressive and organized theft ring are the direct result of the efforts of a large group of committed and dedicated investigators and prosecutors that clearly saw the level of victimization to individuals, corporations, and even the U.S. government. The FBI is proud of the role that it played in bringing this case forward for the successful prosecution that now holds these individuals fully accountable for their criminal actions,” said J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office.
According to U.S. Attorney Horn, the charges and other information presented in court: From approximately June 2012 until September 2014, the defendants worked together to obtain and cash U.S. Treasury checks stolen from the U.S. Mail. The checks were originally issued to people entitled to the federal funds, including taxpayers receiving refunds, retired federal employees receiving pension benefits, military families, and Social Security beneficiaries receiving Social Security and disability payments.
The defendants played different roles in the scheme: Defendants Erica Willis, Dexter Willis, Sayeed Valdez and Antonio Slatton sold stolen checks to other defendants. Check purchasers, including Hussain Abdullah, Asad Abdullah, Hudhayfah Abdullah and Hafid Abdur-Rabbani, were frequent customers of the check sellers and purchased checks by either paying 25% of the check’s face value or splitting the proceeds from the check with the supplier. After purchasing the stolen checks, the defendants would pay identification manufacturers like Ibrahim Abdur-Rabbani and Khalil Majeed to make fake Georgia driver’s licenses matching the names and addresses of the victims, but containing photos of “check runners.” In exchange for a fee, the “check runners” would use the fake driver’s licenses to cash the stolen checks at retail locations throughout the Atlanta metropolitan area, such as Wal-Mart and Publix.
As part of the investigation, FBI and other law enforcement agents worked with a confidential informant, which put them in a position to recover the stolen checks and false identifications. During the investigation, the government reimbursed the stores that agreed to help in the investigation by cashing the stolen checks, thus aiding law enforcement in identifying the members of the scheme.
In a separate credit card fraud scheme, defendants Asad Abdullah, Mikal Majeed, Sayeed Valdez and Billie Cosby, obtained and used counterfeit identification documents to pose as real Sam’s Club members. After presenting the fraudulent documents at various Sam’s Club locations in Georgia, Tennessee, and Alabama, the defendants obtained replacement store credit cards in the names of the victims, which the defendants then used to buy gift cards, gas, groceries, and other items at various Sam’s Club and Wal-Mart locations.
In total, the defendants defrauded the federal government, Wal‑Mart, and Sam’s Club of close to $1,000,000.
The defendants were indicted by a federal grand jury on September 11, 2014. All were convicted by either guilty plea or trial, and all but one has been sentenced. The defendants, and their charges and sentences are as follows:
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Asad Abdullah, 37, of Atlanta, Georgia, was convicted of conspiracy to commit theft of government funds, theft of government funds, aggravated identity theft and conspiracy to commit credit card fraud. He pleaded guilty and was sentenced to seven years, eight months in months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $72,182.12
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Erica Willis, 36, of Atlanta, Georgia, was convicted of conspiracy to commit theft of government funds, theft of government funds, and aggravated identity theft. She was convicted at trial and was sentenced to three years in months in prison to be followed by three years of supervised release.
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Hussain Abdullah, 34, of Atlanta, Georgia, was convicted of conspiracy to commit theft of government funds, theft of government funds, and aggravated identity theft. He pleaded guilty and was sentenced to four years, eight months, followed by three years supervised release and 100 hours of community service.
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Hudhayfah Abdullah, 32, of Atlanta, Georgia, was convicted of conspiracy to commit theft of government funds, theft of government funds, and aggravated identity theft. He pleaded guilty and was sentenced to three years, six months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $7,325.00.
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Hafid Abdur-Rabbani, 37, of Atlanta, Georgia, was convicted of conspiracy to commit theft of government funds, theft of government funds, and aggravated identity theft. He pleaded guilty and was sentenced to four years in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $2,684.30.
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Ibrahim Abdur-Rabbani, 33, of Atlanta, Georgia, was convicted of conspiracy to commit theft of government funds, theft of government funds, and aggravated identity theft. He pleaded guilty and was sentenced to three years, seven months in prison to be followed by three years of supervised release.
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Khalil Majeed, 35, of Atlanta, Georgia, was convicted of conspiracy to commit theft of government funds, theft of government funds, and aggravated identity theft. He pleaded guilty and was sentenced to four years, ten months in prison to be followed by three years of supervised release.
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Ali Al-Amin, 36, of Atlanta, Georgia, was convicted of conspiracy to commit theft of government funds, theft of government funds, and aggravated identity theft after pleading guilty. He was sentenced to three years, seven months in prison to be followed by three years of supervised release.
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Zakariyah Abdullah, 35, of Atlanta, Georgia, was convicted of aggravated identity theft and using a passport belonging to another after pleading guilty. He was sentenced to three years, two months in prison to be followed by three years of supervised release.
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Sayeed Valdez, 38, of Atlanta, Georgia, was convicted of conspiracy to commit theft of government funds after he pleaded guilty. He was sentenced to two years, nine months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $55,623.17.
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Antonio Slaton, 37, of Atlanta, Georgia, was convicted of conspiracy to commit theft of government funds after pleading guilty. He was sentenced to one year in prison to be followed by three years of supervised release.
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Cory Howell, 43, of Atlanta, Georgia, was convicted of conspiracy to commit theft of government funds after pleading guilty. He was sentenced to three months in prison to be followed by three years of supervised release.
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Damion Davis, 31, of Atlanta, Georgia, was convicted of conspiracy to commit theft of government funds after entering a guilty plea. His sentencing is scheduled for April 8, 2016.
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Dexter Willis, 36, of Atlanta, Georgia, was convicted of conspiracy to commit theft of government funds after pleading guilty. He was sentenced to five years in prison, to be followed by three years of supervised release, and ordered to pay restitution in the amount of $118,199.16
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JoAnn Drigo, 37, of Atlanta, Georgia, was convicted of conspiracy to commit theft of government funds after pleading guilty. She was sentenced to three years’ probation.
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Muhajid Ahmad, 33, of Atlanta, Georgia, was convicted of conspiracy to commit theft of government funds after pleading guilty. He was sentenced to three years of probation.
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Billee Cosby, 34, of Atlanta, Georgia, was convicted of conspiracy to commit credit card fraud after pleading guilty. She was sentenced to four months of a combination of community and home confinement, three years of probation and ordered to pay restitution in the amount of $5,635.47.
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Mikal Majeed, 33, of Atlanta, Georgia, was convicted of aggravated identity theft after pleading guilty. He was sentenced to three years in prison to be followed by one year of supervised release, and ordered to pay restitution in the amount of $50,929.34.
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Jasmine Proctor, 20, of Atlanta, Georgia, was convicted of interfering with the U.S. Mail after pleading guilty. She was sentenced to 18 months of probation.
This case was investigated by the Federal Bureau of Investigation. Investigative assistance in this case was provided by the following federal agencies: Federal Air Marshal Service; United States Customs and Border Protection; Bureau of Alcohol, Tobacco, Firearms, and Explosives; IRS-Criminal Investigations; United States Secret Service; United States Postal Service; and the Department of Homeland Security. The following state and local agencies also assisted: Georgia Bureau of Investigation; Georgia Office of Consumer Protection; Georgia Department of Corrections; Atlanta Police Department; Woodstock Police Department; Fulton County Sheriff’s Office; Henry County Police Department; Gwinnett County Police Department; Dunwoody Police Department; Brookhaven Police Department; Sandy Springs Police Department; DeKalb County Police Department, and Chamblee Police Department.
Assistant U.S. Attorneys Nekia Hackworth and Kim S. Dammers, along with DOJ Trial Attorney Hans Miller prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
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Chiropractor Sentenced for Obstructing Investigation of Health Care Fraud Involving D.C. Medicaid ProgramRead the Press Release
WASHINGTON – Rehman Mirza, 43, a chiropractor who practiced in Suitland, Md., was sentenced today to seven months in prison and an additional six months in home confinement after earlier pleading guilty to obstructing a criminal health care fraud investigation, announced U.S. Attorney Channing D. Phillips and Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office.
Mirza, of Woodbridge, Va., pled guilty in May 2015 in the U.S. District Court for the District of Columbia. He was sentenced by the Honorable Ketanji Brown Jackson, who found Mirza’s conduct “egregious” and held that he had “abused a position of public trust.” In addition to prison and home confinement, the Court ordered Mirza to pay $48,450 in restitution to the D.C. Medicaid program and to perform 40 hours of community service.
The underlying fraud involved D.C. Medicaid payments for home care services to be performed by personal care aides, working for home care agencies. Personal care aides, also known as PCAs, are supposed to assist Medicaid beneficiaries in performing activities of daily living, such as getting in and out of bed, bathing, dressing, keeping track of medication, and so forth. In order to be covered for such benefits, the beneficiaries must get prescriptions from physicians or advanced practice registered nurses. D.C. Medicaid only reimburses for home care services if a physician determines after a physical examination that the beneficiary has functional limitations impairing activities of daily living. The prescriptions, also known as “intakes,” dictate the frequency and duration of the services to be provided. The prescriptions are translated later into plans of care, which also must be signed by the physician.
In the District of Columbia, a typical prescription, or “intake,” calls for eight hours of personal care services per day for five days per week, or eight hours per day for seven days per week. Over the six-month time span authorized by such a prescription, D.C. Medicaid would pay between $16,952 and $23,732 for personal care services provided to one beneficiary.
Mirza is licensed as a chiropractor in Maryland and Virginia, but is not licensed as a chiropractor in the District of Columbia, and is not licensed as a physician. He worked at Capital Health LLC, d/b/a Capitol Health Chiropractic in Suitland, Md. He was not authorized to prescribe personal care services, and he was not enrolled as a provider in D.C. Medicaid.
The scheme: According to a statement of offense, signed by the government as well as the defendant, Mirza and others carried out a scheme to defraud the D.C. Medicaid program from approximately November 2012 through at least June 2013. Personal care aides, working for at least seven home care agencies, brought hundreds of D.C. Medicaid beneficiaries to Mirza, and after brief examinations, Mirza wrote prescriptions and plans of care, listing himself and signing as the “ordering physician” even though he was not a physician and was not legally or medically qualified and could not determine whether the services were medically necessary.
Seeing D.C. Medicaid beneficiaries and signing their intakes and plans of care became Mirza’s primary source of income. Mirza initially was paid $125 for each D.C. Medicaid beneficiary brought to his office by a personal care aide, but he later increased the size of the cash payments to $200. Mirza’s prescriptions, or “intakes,” typically included a diagnosis such as “chronic severe back pain” and called for services for eight hours a day, seven days a week, for six months. The personal care aides would insist that Mirza write the name of the PCA on the intake before it was sent to the home care agency; it was understood this was so the personal care aides would receive their kickback from the home care agency for each D.C. Medicaid beneficiary the PCA brought to Mirza and then to the home care agency.
During the course of the fraud scheme, Mirza signed hundreds of prescriptions and plans of care, and in exchange collected at least $48,450 in cash payments from personal care aides. Home care agencies used Mirza’s prescriptions and plans of care to support and justify their claims for payment to Medicaid – even though the paperwork was invalid on its face because it was not prescribed or signed by a physician as required.
The obstruction: When Mirza was approached by the FBI in his office and questioned about his role, he denied he had any involvement with Medicaid. After the agents served Mirza with a subpoena for his patient files and other documents, the agents told Mirza they planned to interview his office assistant. After the agents left, Mirza offered to drive his assistant home. During that car ride, Mirza attempted to obstruct the government’s investigation, by attempting to influence his 22-year-old assistant’s statements to the FBI, telling the assistant not to use certain words, encouraging and suggesting that she not be fully truthful, and ensuring that their stories would match so that Mirza would not be “implicated” by his assistant. For example, Mirza tried to convince his assistant they had nothing to do with Medicaid and instructed the assistant not to say the word “Medicaid” at least ten times during the course of their 45-minute conversation.
This investigation was conducted by the FBI’s Washington Field Office.
This case is being prosecuted by Assistant U.S. Attorney Ted Radway, and was investigated by Assistant U.S. Attorney Radway and former Special Assistant U.S. Attorney Dangkhoa Nguyen. Assistance was provided by Paralegal Specialist Corinne Kleinman.
The FBI has set up a hotline number to report suspected incidents of Medicaid fraud: 855-281-1242. People can also provide information by e-mail to [email protected].
Numerous agencies are participating in the broader investigation into Medicaid fraud, including the U.S. Department of Health and Human Services, Office of Inspector General; the U.S. Secret Service; the Medicaid Fraud Control Unit of the District of Columbia’s Office of the Inspector General; the Social Security Administration, Office of Inspector General; the Internal Revenue Service-Criminal Investigation; the U.S. Immigration and Customs Enforcement (ICE) Office of Homeland Security Investigations (HSI); the Office of Labor Racketeering and Fraud Investigations, Office of Inspector General, Department of Labor; and the Medicaid Fraud Control Unit of the Maryland Attorney General’s Office.
Cary Man Sentenced to 84 Months for Interstate Transportation of Women in Support of ProstitutionRead the Press Release
GREENVILLE – The United States Attorney’s Office for the Eastern District of North Carolina announced TONY OBRIEN WILLIAMS, 29, of Cary, was sentenced by Senior United States District Judge Malcolm J. Howard to 84 months imprisonment followed by 10 years of supervised release.
On November 9, 2015, WILLIAMS pleaded guilty to Interstate Transportation for Prostitution and Use of the Internet to Promote Prostitution. According to the investigation, in January 2013, following the receipt of information that individuals in the Cary, North Carolina, area
were utilizing ads in the escort section on www.backpage.com (Backpage) to promote prostitution, the Cary Police Department (CPD) began conducting undercover operations in an effort to identify the individuals responsible. The investigation determined that from at least February 2012 to January 2015, WILLIAMS ran a prostitution operation from various hotels in North Carolina, Virginia, and Georgia. During this time frame, WILLIAMS recruited and employed several women whose prostitution services were advertised on Backpage. WILLIAMS used verbal threats, violence, and narcotics to maintain control over the women working for him and to force them to continue in prostitution. To limit their contact with family and friends and other external influences, WILLIAMS took away their identification cards and cell phones.
Investigation of this case was conducted by the Cary Police Department, and U.S. Immigrations and Customs Enforcement Homeland Security Investigations. Assistant United States Attorneys Barbara Kocher and Erin Blondel prosecuted the case of the government.
British Virgin Islands Man Arrested on Charges of Alien SmugglingRead the Press Release
St. Thomas, USVI - Ashemba Frett, 22, of Tortola, British Virgin Islands, made his initial appearance before U.S. Magistrate Judge Ruth Miller after being charged in a complaint with encouraging and inducing aliens to illegally enter the United States, United States Attorney Ronald W. Sharpe announced today. Judge Miller released Frett to the custody of a third-party custodian and ordered him to post a $10,000 unsecured bond.
According to the complaint, on February 14, 2016, the United States Coast Guard (USCG) conducted a safety stop on a vessel in U.S. waters. The vessel was operated by Frett and an unidentified individual who jumped overboard prior to the vessel being stopped. A Haitian national and a national from the Dominican Republic were on-board the vessel. Neither the Haitian nor the Dominican Republic national possessed documents to lawfully enter the United States.
Under federal law if convicted of illegally encouraging and inducing aliens to enter the United States, Frett faces a maximum of five years in prison and a $250,000 fine, and in the case of a violation in which the offense was done for the purpose of private financial gain, not more than 10 years’ imprisonment. This case is being investigated by U.S. Customs and Border Protection (CBP) Air and Marine Operations (AMO), the USCG and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). It is being prosecuted by Assistant United States Attorney Sigrid M. Tejo-Sprotte.
United States Attorney Sharpe reminds the public that a complaint is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless proven guilty.
Albuquerque Woman Pleads Guilty to Federal Methamphetamine Trafficking ChargeRead the Press Release
ALBUQUERQUE – Amanda Andrea Wyatt, 26, of Albuquerque, N.M., pleaded guilty today in federal court to a methamphetamine trafficking charge.
Wyatt was arrested on a criminal complaint after the DEA seized approximately 2.9 kilograms (6.38 pounds) of methamphetamine from her during an interdiction investigation at the Amtrak Train Station in Albuquerque on Oct. 18, 2015. The methamphetamine was contained in a large bundle that was concealed underneath Wyatt’s clothing. Wyatt was subsequently indicted on Nov. 5, 2015, and charged with possession of methamphetamine with intent to distribute.
During today’s hearing, Wyatt pled guilty to a felony information charging her with possession of methamphetamine with intent to distribute. In entering the guilty plea, Wyatt admitted that on Oct. 18, 2015, she possessed methamphetamine, which was wrapped in bundles and strapped to her midsection while traveling through Albuquerque on the Amtrak train. She further admitted that she was to be paid $3,000.00 to transport the narcotics to Kansas City, Mo.
At sentencing, Wyatt faces a maximum penalty of 20 years in federal prison. Her sentencing hearing has not yet been scheduled.
This case was investigated by the Albuquerque office of the DEA and is being prosecuted by Assistant U.S. Attorney Edward Han.
Albuquerque Man Sentenced to Ten Years for Armed Robbery Spree of Albuquerque-Area Businesses in Summer of 2014Read the Press Release
ALBUQUERQUE – Jose Rodriguez, 23, of Albuquerque, N.M., was sentenced today in federal court for violating the Hobbs Act and firearms laws by robbing eight businesses involved in interstate commerce at gunpoint. Rodriguez was sentenced to ten years in prison followed by three years of supervised release.
The sentence was announced by U.S. Attorney Damon P. Martinez, 2nd Judicial District Attorney Kari E. Brandenburg, Special Agent in Charge Terry Wade of the FBI’s Albuquerque Division, and Chief Gorden Eden, Jr., of the Albuquerque Police Department.
Rodriguez was charged in March 2015, in a four-count indictment alleging that he robbed two Albuquerque-area businesses that were engaged in interstate commerce. It further alleged that Rodriguez brandished firearms during each of the two robberies. Rodriguez was arrested on April 22, 2015, after he was transferred to federal custody from state custody where he was being held on related state charges which were later dismissed in favor of federal prosecution.
Rodriguez entered a guilty plea on October 1, 2015, to a nine-count felony information charging him with violating the Hobbs Act and federal firearms laws. The first eight counts of the information charged Rodriguez with interfering with interstate commerce by robbing the following eight businesses between June 2014 and Aug. 2014:
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Papa John’s Pizza on Gibson Blvd. SE in Albuquerque on June 29, 2014;
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Twisters on Gibson Blvd SW in Albuquerque on July 5, 2014;
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Flowers Bakery on Gibson Blvd. SE in Albuquerque on July 14, 2014;
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Pump-N-Save gas station on Menaul Blvd. NE in Albuquerque on July 17, 2014;
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Krispy Kreme on Wyoming Blvd NE in Albuquerque on July 30, 2014;
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M&M Gas Station on Coors Blvd. NW in Albuquerque on Aug. 5, 2014;
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Phillips 66 Gas Station on Coors Blvd. NW in Albuquerque on Aug. 6, 2014;
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Church’s Chicken on Central Ave NW in Albuquerque on Aug. 7, 2014.
The ninth count of the information charged Rodriguez with brandishing a firearm during a crime of violence, specifically, the robbery of the Church’s Chicken on Aug. 7, 2014. In addition, in his plea agreement, Rodriguez admitted that he used a firearm, which he brandished at employees of the businesses he robbed, during seven of the eight robberies.
According to court filings, Rodriguez is addicted to heroin and claimed that he robbed people at gunpoint to feed his addiction.
This case was investigated by the Albuquerque office of the FBI and the Albuquerque Police Department with assistance from the 2nd Judicial District Attorney’s Office.
The case was prosecuted by Assistant U.S. Attorney Nicholas Jon Ganjei Rodriguez as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on their prior felony convictions for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible. Because New Mexico’s violent crime rates, on a per capita basis, are amongst the highest in the nation, New Mexico’s law enforcement community is collaborating to target repeat offenders from counties with the highest violent crime rates, including Bernalillo County, under this initiative.
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Albany County Man Sentenced to 80 Years for Sexually Exploiting A MinorRead the Press Release
ALBANY, NEW YORK - Robert C. McCoy, age 56, of Glenmont and Selkirk, NY, was sentenced today to 80 years in prison following his conviction in August 2015 for sexual exploitation of a minor and other child exploitation crimes.
The announcement was made by United States Attorney Richard S. Hartunian and Andrew W. Vale, Special Agent in Charge of the Federal Bureau of Investigation, Albany Division.
On August 6, 2015, a jury found McCoy guilty after a four-day trial. The evidence demonstrated that between 2012 and 2014, McCoy produced sexually explicit images of a minor. McCoy was also found guilty of possessing child pornography and committing a felony offense involving a minor while already a registered sex offender.
"McCoy’s sentence reflects the heinousness of his crimes," stated U.S. Attorney Richard S. Hartunian. "His prosecution is the result of the work we do every day with our federal agencies and the police to investigate and prosecute those who prey on our community’s children."
"Predators like Mr. McCoy endanger our community," said Special Agent in Charge Andrew Vale. "The damage inflicted on their victims can never be undone. While we do not have the power to restore a child’s innocence, we do have the power to ensure that Mr. McCoy and those of his ilk are held accountable for their unspeakable crimes."
In addition to imposing a sentence of 80 years of imprisonment, U.S. District Judge Mae A. D’Agostino also ordered McCoy to serve a lifetime term of supervised release, to begin after his release from prison.
This case was investigated by the Town of Bethlehem Police Department and the FBI, with assistance from the New York State Police. The case was prosecuted by Assistant United States Attorney Lisa Fletcher, Project Safe Childhood Coordinator for the Northern District of New York, and Assistant United States Attorney Emily Farber.
Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc.
15 Charged in Federal Gun CasesRead the Press Release
CINCINNATI – A federal grand jury has charged 15 individuals with federal gun charges in separate indictments returned in Cincinnati. The cases are part of an anti-violence initiative involving a focus from local, state and federal law enforcement to combat gun violence in the city.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Donald J. Soranno, Special Agent in Charge, ATF, Columbus Field Division, Cincinnati Police Chief Eliot Isaac, Hamilton County Sheriff Jim Neil, Hamilton County Prosecutor Joseph T. Deters, Hamilton Police Chief Craig Bucheit, Lockland Police Chief Jim Toles, Norwood Police Chief William Kramer, Harrison Police Chief Charles Lindsey and Springfield Township Police Chief Robert Browder announced the indictments.
The 15 defendants represent the first group of alleged habitual offenders indicted as part of the initiative. The strategy includes a committed focus from federal, state and local law enforcement agencies to identify those individuals who consistently use firearms to commit crimes, who habitually possess illegal firearms, and who present a clear threat to the safety of the community.
A list of those charged is attached.
U.S. Attorney Stewart commended the investigation of this case by law enforcement, and Assistant United States Attorneys Christy Muncy, Timothy Oakley and Anthony Springer, who are prosecuting the cases.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
Name
Age
City of Residence
Charges
Dennis Hicks
30
Cincinnati
1 count possession of firearm as a convicted felon
Steven Ivery
30
Cincinnati
1 count possession of firearm as a convicted felon
Willie Jackson
25
Hamilton
1 count possession of firearm as a convicted felon
Jarvis Levy, Jr.
35
Cincinnati
5 counts possession with intent to distribute heroin and cocaine, 2 counts possession of a firearm as a convicted felon, 1 count possession of firearm in furtherance of an offense
Donte Martin
28
Cincinnati
1 count possession of firearm as a convicted felon
Donell McCreagh
55
Cincinnati
1 count possession of firearm as a convicted felon
Nicholas Metz
34
Cincinnati
1 count possession of firearm as a convicted felon
Jeno Moore
25
Cincinnati
1 count of possession with intent to distribute heroin, 1 count of possession of firearm in furtherance of an offense, 1 count possession of firearm as convicted felon
Alvin Palmer
25
Cincinnati
1 count possession of firearm as a convicted felon
Keno Phillips
41
Cincinnati
1 count possession with intent to distribute cocaine, 1 count possession of firearm as a convicted felon, 1 count possession of firearm in furtherance of an offense
Brian Simms
33
Hamilton
1 count possession of firearm as a convicted felon
Ronald Steele
25
Cincinnati
1 count possession of stolen firearm, 1 count possession of firearm as a convicted felon
Oscar Torbert
27
Cincinnati
1 count of possession with intent to distribute heroin, 1 count of possession of firearm in furtherance of an offense, 1 count possession of firearm as convicted felon
Terrance Williams
28
Cincinnati
1 count possession of stolen firearm, 1 count possession of firearm as a convicted felon
Steven Young
31
Cincinnati
1 count possession of firearm as a convicted felon
Possession of a firearm by a convicted felon
18 U.S.C. § 922(g)
5-20 years in prison
$250,000 fine
Up to a lifetime of supervised release
18 U.S.C. § 922(g)(1)
Up to 10 years in prison
$250,000 fine
Up to 3 years supervised release
Possession with intent to distribute
21 U.S.C §§ 841(a)(1) and 841(b)(1)(C)
Up to 20 years in prison
At least 3 years supervised release
$1 million fine
Possession of a firearm in furtherance of an offense
18 U.S.C. § 924(c)(1)
At least 5 years consecutive in prison
$250,000 fine
5 years supervised release
Possession of a stolen firearm
18 U.S.C. § 922(j)
Up to 10 years in prison
$250,000 fine
Up to 3 years supervised release
13 February 2016
Two Mail Thieves Sentenced to 34 Months and 12 Months, Respectively, forRead the Press Release
ALICIA A.G. LIMTIACO, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that JON MICHAEL MAPOTE VILLENA, age 29, of Mangilao, and ANNALIN MARIE PEREZ ALDAN, age 20, of Dededo, were sentenced on February 12, 2016, before District Judge Alex R. Munson, in the U.S. District Court of Guam. VILLENA received 34 months imprisonment with a three year supervised release term. ALDAN received 12 months and one day imprisonment with a three year supervised release term. The pair were also ordered to pay over $12,000 in restitution to their victims and ordered to forfeit proceeds of their crimes. Their sentences follow convictions for access device fraud and aggravated identity theft.
In June and July 2015, VILLENA and ALDAN, engaged in a crime spree, burgling several United States Post Offices in Guam. The defendants stole undelivered United States Mail from over
30 different post office boxes. A First Hawaiian Bank MasterCard debit card belonging to a postal customer was among the items of stolen United States Mail. VILLENA and ALDAN then used that debit card to purchase goods, including Apple electronics, at local and national retailers all over Guam.U.S. Attorney Alicia A.G. Limtiaco stated, “The United States Attorney’s Office, along with our law enforcement partners, will vigorously pursue those who vandalize and obstruct the operations of the United States Postal Service. We will also aggressively pursue and prosecute those who would victimize the residents of Guam through identity theft.”
This incident was investigated by the United States Postal Inspection Service. The case was prosecuted by Assistant United States Attorney Mohammad Khatib.
Attorney General Lynch and Solicitor General Verrilli Statements on the Passing of Supreme Court Justice Antonin ScaliaRead the Press Release
Attorney General Loretta E. Lynch and Solicitor General Donald B. Verrilli Jr. released the following statements regarding the passing of Supreme Court Justice Antonin Scalia:
“Justice Antonin Scalia was, and will always be remembered as, one of the most influential and eloquent Justices ever to serve on the U.S. Supreme Court,” said Attorney General Lynch. “His indomitable conviction and his fierce intelligence left a lasting imprint – not just on the way the Supreme Court resolves cases, but on the legal landscape that he helped to transform. A lion of American law has left the stage, and it is up to all of us – every American – to keep our national constitutional dialogue as lively and as learned as he left it.”
“I am saddened by the passing of Justice Antonin Scalia,” said Solicitor General Verrilli. “He was a great jurist and a great man who served the Court and the country with honor and distinction. We will miss him very much. On behalf of my colleagues in the Office of the Solicitor General, I extend our deepest condolences to Mrs. Scalia and to the rest of his family.”
12 February 2016
Windermere Man Sentenced for Stealing Money from Former NBA Basketball Player and Defrauding the IRSRead the Press Release
Orlando, Florida – U.S. District Judge Carlos E. Mendoza has sentenced John A. White (40, Windermere) to four years and nine months in federal prison for wire fraud and filing a false tax-related document. A federal jury found him guilty on September 2, 2015. The Court will decide at a later date the amount of restitution White owes and the proceeds he must forfeit.
According to evidence presented at trial, from 2006 through 2012, White was employed as the personal assistant to NBA basketball player Gilbert J. Arenas, who has since retired from professional basketball. During calendar years 2008 through 2011, White stole approximately $2,188,170 from Arenas by making unauthorized online banking money transfers from one of Arenas’s bank accounts, into three different bank accounts that White controlled. White spent these funds on his own personal expenses, including mortgage payments for his home in Windermere, and the purchase of a Ferrari and a Range Rover. White also filed false joint income tax returns with the IRS for each of these years. In these tax returns, he and his wife never reported more than $60,000 in gross income, when in fact their joint income was significantly greater, due to the money White had stolen from Arenas.
White’s false tax returns caused a tax loss of approximately $621,144 to the IRS.
This case was investigated by the Internal Revenue Service - Criminal Investigation, with assistance from the United States Secret Service. It was prosecuted by Assistant United States Attorney Andrew C. Searle.
Wichita Massage Parlor Owner Charged in Sex Trafficking CaseRead the Press Release
WICHITA, KAN. – The owner of a Wichita massage parlor was charged Friday in federal court with harboring a Chinese woman who worked as a prostitute, U.S. Attorney Barry Grissom said.
Samir F. Elias, 60, Wichita, Kan., is charged with one count of transporting an alien who is in the United States unlawfully, one count of harboring an alien who is in the United States unlawfully, one count of harboring an alien for the purpose for prostitution and two counts of money laundering.
The charges allege Elias was the owner of GiGi’s Elite Massage, which operated at 357 N. Hillside in Wichita after moving from a previous location at 6611 E. Central. Elias employed a Chinese woman who used the name Angel. An undercover vice detective with the Wichita Police Department arrested the woman after she offered to perform sexual services during a massage.
Investigators learned that:
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The woman lived at the massage parlor or at times at Elias’ home.
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She usually worked seven days a week.
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She had no formal training in how to give a massage.
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Patrons paid $40 for 30 minutes and $60 for an hour of massage. She paid Elias $10 of the fee for the $40 massage and $20 of the fee for the $60 massage. She was allowed to keep her tips.
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The woman was convicted in Wichita municipal court on a charge of sale of sexual relations. She is appealing the conviction.If convicted, she faces a maximum penalty of 10 years in federal prison and a fine up to $250,000 on counts 1, 2 and 3, and a maximum penalty of 20 years and a fine up $500,000 on counts 4 and 5.
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The Wichita Police Department and Homeland Security Investigations (HSI) investigated. Assistant U.S. Attorney Jason Hart is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
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Utica Woman Pleads Guilty to Marriage FraudRead the Press Release
SYRACUSE, NEW YORK – Emina Baltic, 27, of Utica, New York, pled guilty today in federal court in Syracuse to marriage fraud, announced United States Attorney Richard S. Hartunian and Brian Devine, Resident Agent in Charge, Homeland Security Investigations (HSI), Syracuse, New York.
As part of her guilty plea, Baltic admitted that she married a citizen of Serbia on December 22, 2011, for the purpose of assisting him in obtaining permanent residency in the United States. Baltic further admitted that she never intended to establish a life with her husband and that she was paid more than $17,000 for entering into the fraudulent marriage.
Emina Baltic will be sentenced on June 17, 2016 in federal court in Syracuse by Chief District Judge Glenn T. Suddaby. She faces a maximum sentence of up to five years in prison and a fine of up to $250,000. Sentences are imposed by a judge based upon the particular statute the defendant is charged with violating, the United States Sentencing Guidelines and other factors.
This case was investigated by HSI, and is being prosecuted by Assistant U.S. Attorney Michael F. Perry.
United States Reaches $8 Million Settlement Agreement with CVS for Unlawful Distribution of Controlled SubstancesRead the Press Release
Baltimore, Maryland – CVS Pharmacy, Inc. (CVS) has agreed to pay $8 million to the United States to resolve allegations that its Maryland pharmacies violated the Controlled Substances Act (CSA) by dispensing controlled substances pursuant to prescriptions that were not issued for a legitimate medical purpose.
The settlement agreement was announced today by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division.
“Pharmacies that dispense controlled substances have a duty ensure that prescriptions they fill were issued for legitimate medical purposes,” said U.S. Attorney for the District of Maryland Rod J. Rosenstein. “Doctors and pharmacists are the gatekeepers of the effort to prevent the abuse and diversion of pharmaceutical drugs for non-medical purposes.”
“The abuse of prescription drugs has rampantly spread throughout our communities,” stated DEA Special Agent in Charge Karl C. Colder. “This abuse has directly resulted in the escalation of heroin addiction and related overdoses. Today’s settlement sends a clear message to all pharmacies that it is essential to dispense controlled substances in compliance with DEA’s record keeping requirements. DEA is dedicated to combat the prescription drug abuse problem in Maryland and throughout the country and to hold nationwide chains, like CVS, accountable.”
The CSA authorizes the United States to seek civil penalties for a pharmacy’s failure to fulfill its corresponding responsibility to dispense only those prescriptions that have been issued for a legitimate medical purpose by a health care provider acting in the usual course of professional practice. Knowingly filling an illegitimate prescription subjects a pharmacy to civil penalties under the CSA.
According to the settlement agreement, CVS acknowledged that between 2008 and 2012 certain CVS pharmacy stores in Maryland dispensed controlled substances, including oxycodone, fentanyl and hydrocodone, in a manner not fully consistent with their compliance obligations under the CSA and related regulations. This included failing to comply with a pharmacist’s liability to ensure the controlled substance prescriptions were issued for a legitimate medical purpose. This settlement caps off an investigation that began as part of the DEA’s crackdown on prescription drug abuse in Maryland.
U.S. Attorney Rod J. Rosenstein commended the DEA’s Office of Diversion Control, Baltimore Division for its work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Thomas F. Corcoran, who handled the case.
U.S. Attorney Alicia Limtiaco Guest Speaker at PATA MeetingRead the Press Release
ALICIA A.G. LIMTIACO, United States Attorney for the Districts of Guam and the Northern Mariana Islands (NMI), was invited to be the guest speaker at the Pacific Asia Travel Association (PATA) meeting, which was held on December 2, 2015, at the office of the Guam Visitors Bureau. U.S. Attorney Limtiaco presented information to the PATA membership about our Pacific Regional Response to Combat Human Trafficking Initiative, how human trafficking relates to the visitor and tourism industry, and what the tourism industry can do to prevent human trafficking and identify and support victims of trafficking.
The Pacific Regional Response to Combat Human Trafficking Initiative (the “Initiative”), which is a collaborative effort of the U.S. Attorney’s Office for the Districts of Guam and the NMI; the U.S. Department of State, Office to Monitor and Combat Trafficking in Persons; the U.S. Department of Labor; the U.S. Department of Interior, Office of Insular Affairs; the Guam HTTF; the NMI HTIC; and other community partners. U.S. Attorney Limtiaco also elaborated on the intersection and relationship between human trafficking, sexual assault, child abuse and domestic and family violence, and prevention and enforcement efforts in the Pacific region.
The Initiative employs a multidisciplinary model, including participation, coordination, and collaboration among law enforcement, prosecution, victim service providers, social services, medical, mental and public health professionals, faith based organizations, educational institutions, Consulates, and other community stakeholders. The Initiative calls for the establishment and provision of victim services, investigation and prosecution of human trafficking, training opportunities, community outreach/ public awareness and prevention programs, and creation of human trafficking task forces and coalitions in the Pacific region island communities. The Initiative also provides fundamental training in human trafficking, including victimization, investigation and prosecution, prevention efforts, and other related topics to law enforcement, prosecution, victim service providers, social services, medical, mental and public health professionals, faith based organizations, educational institutions, Consulates, and other community stakeholders in our Pacific region island communities, which is critical to effective prevention and enforcement efforts in the region.
As taken from their website, PATA was founded in 1951, and “is a not-for profit association that is internationally acclaimed for acting as a catalyst for the responsible development of travel and tourism to, from and within the Asia Pacific region. Its member organizations comprise of 88 government, state and city tourism bodies, nearly 22 international airlines, airports and cruise lines, 62 educational institutions, and hundreds of travel industry companies in Asia Pacific and beyond. Thousands of travel professionals belong to 43 active PATA chapters worldwide.”
Monty McDowell, Member, PATA Board of Directors/Assistant Secretary Education Committee Co-Chair, U.S. Attorney Alicia Limtiaco and Pilar Laguana, President of PATATwo More Defendants Charged in Interstate Armed Jewelry Robbery CaseRead the Press Release
PANAMA CITY, FLORIDA – Larry Bernard Gilmore, 43, and Michael Bernard Gilmore, 46, both of Atlanta, GA, were charged by criminal complaint on Thursday with conspiracy to interfere with commerce by threats or violence. The criminal complaint was announced by Christopher P. Canova, Acting United States Attorney for the Northern District of Florida.
The charging documents allege that the Gilmores conspired with Abigail Lee Kemp, 24, of Smyrna, GA, and Lewis Jones III, 35, of Atlanta, GA, to commit armed robberies of six jewelry stores in Panama City Beach, Florida; Woodstock and Dawsonville, Georgia; Bluffton, South Carolina; Sevierville, Tennessee; and Mebane, North Carolina. It is further alleged that, in each robbery, the robber brandished a firearm and ordered the employees to the back of the store where they were forced to lie face down on the ground with their hands zip tied behind their backs. Hundreds of thousands of dollars-worth of jewelry was then removed from the jewelry display cases.
The punishment for the alleged crime is a maximum of 20 years in prison. The initial appearance is expected to take place at 3:30 p.m. today in Judge Vineyard’s courtroom in the Northern District of Georgia in Atlanta. Future court appearances will take place in the U.S. District Court in Panama City, Florida, in the Northern District of Florida, on a date to be determined.
This case resulted from an investigation by the Federal Bureau of Investigation. Assistant United States Attorney Kathryn D. Risinger is prosecuting the case.
A criminal complaint is merely an allegation that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt at trial.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. The office strives to protect and serve the citizens of the Northern District of Florida through the ethical, vigorous, and impartial enforcement of the laws of the United States, to defend the national security, to improve the safety and quality of life in our communities through the protection of civil rights, and to protect the public funds and financial assets of the United States. To access available public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact: Amy Alexander, Public Information Officer
(850) 216-3854, [email protected]Two Judges, Three Trials, Four GuiltyRead the Press Release
LAREDO, Texas – After a busy week in Laredo federal court, a total of four people residing in varying Texas communities have been found guilty as charged, announced U.S. Attorney Kenneth Magidson. A mother and daughter and another man were convicted in cocaine conspiracies before U.S. District Judge Marina Garcia Marmolejo, while a truck driver was convicted of alien smuggling before U.S. District Judge Diana Saldana.
Feather J. Saldana, 65, and her daughter Shawna P. Johnson, 41, both of Gatesville, were convicted late yesterday after a day and a half trial. According to witnesses, the women drove to a Laredo port of entry on Dec. 5, 2014, in Johnson’s vehicle which was loaded with 38 kilograms of cocaine in the gas tank and center console areas. Saldana and Johnson initially denied any involvement in the importation of cocaine, continued to do so at trial and further denied any involvement in a known drug smuggling organization. However, several witnesses testified otherwise, claiming that Johnson had made several successful narcotics crossings in the past and that Saldana was being trained for an upcoming solo crossing.
The jury deliberated for approximately an hour before finding the mother and daughter guilty of conspiring to import and importing cocaine as charged.
In a separate trial that commenced immediately prior, a jury also found Enrique Fernando Salazar-Valencia, 51, guilty of conspiring to import cocaine. During that two-day trial, the jury heard that
a commercial bus registered to Salazar-Valencia, of Austin, attempted to enter a Laredo port of entry on Sept. 7, 2015. The bus was found to contain 51 kilograms of cocaine in a hidden compartment at the back of the bus. Salazar-Valencia also denied any involvement in the importation of cocaine. However, witnesses at trial testified that he was in fact a recruiter for a drug smuggling organization and was also responsible for the organization’s use of commercial buses in narcotics smuggling.
The jury deliberated for two hours before convicting him.
All of these defendants face a face a mandatory minimum of 10 years and up to life in prison. They all have been and will remain in custody pending their sentencing hearings.
Both cases were the result of the investigative efforts of Homeland Security Investigations with the assistance of Customs and Border Protection. Assistant U.S. Attorney (AUSA) Christopher A. dos Santos and Special AUSA Lisa Ezra prosecuted both of these cases.
In another Laredo courtroom, a federal jury convicted Jorge Miguel Pedro-Fernandez, 26, of Houston, on three counts related to alien smuggling. Pedro-Fernandez attempted to smuggle aliens concealed in his tractor past the U.S. Border Patrol checkpoint on Interstate 35 on Nov. 24, 2015. At that time, a Border Patrol canine alerted to the defendant’s tractor. A subsequent search uncovered six undocumented aliens hiding in the cab of the tractor. The jury heard that Pedro-Fernandez had initially given a statement admitting he had agreed to smuggle the aliens past the checkpoint.
At trial, the jury also heard from two of the illegal aliens that Pedro-Fernandez attempted to drive them past the checkpoint. One them also noted that the defendant had told him where to hide.
However, Pedro-Fernandez testified and claimed the aliens had snuck on his tractor without his knowledge. He also denied ever confessing that he knowingly transported aliens. Upon cross-examination, the government demonstrated numerous inconsistencies in the defendant’s story.
After approximately two hours of deliberation, the jury convicted Pedro-Fernandez of conspiracy to smuggle aliens and two counts of smuggling aliens.
U.S. District Judge Diana Saldana will set sentencing at a later date, at which time the defendant faces up to 10 years in prison and a $250,000 fine. He was taken into custody immediately after the verdict where he will remain pending that hearing.
Homeland Security Investigations also investigated this case along with Border Patrol. Assistant U.S. Attorneys Alfredo De La Rosa and Jorge Vela are prosecuting.
Two Columbia Men Sentenced for Distributing Crack CocaineRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that two Columbia, Mo., men were sentenced in federal court today in separate and unrelated cases related to distributing crack cocaine.
USA v. Jennings
Robert Jennings, 52, of Columbia, was sentenced by U.S. District Judge Stephen R. Bough to five years in federal prison without parole. The court also ordered Jennings to forfeit $4,626 to the government, which was the proceeds of illegal drug trafficking.
On Oct. 20, 2015, Jennings pleaded guilty to participating in a conspiracy to distribute crack cocaine and to being a felon in possession of a firearm. His co-defendant, Brittany Michelle Doxley, 29, of Columbia, also has pleaded guilty to her role in the drug-trafficking conspiracy and was sentenced on Aug. 12, 2015, to five years in federal prison without parole.
Jennings admitted that he conspired with Doxley to distribute crack cocaine from their shared residence from March 21 to July 11, 2013. Jennings, while on probation for an earlier state drug-trafficking conviction, was involved in several drug transactions with a law enforcement informant. The informant told investigators that Jennings was distributing approximately 2.5 ounces of crack cocaine every couple of days. In violation of his parole, Jennings repeatedly traveled to New Orleans to acquire some of the crack cocaine involved in this case.
On July 11, 2013, law enforcement officers executed a search warrant at the residence shared by Jennings and Doxley. Officers seized 83.23 grams of crack cocaine, $4,616 and a Kel-Tec 9mm semi-automatic pistol that belonged to Jennings.
Under federal law, it is illegal for anyone who has been convicted of a felony to possess a firearm or ammunition. Jennings has a prior felony conviction for drug trafficking.
This case was prosecuted by Assistant U.S. Attorney Anthony P. Gonzalez. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Columbia, Mo., Police Department and the Boone County, Mo., Sheriff’s Department.
USA v. Carter
Branon Jay Carter, also known as “Ball,” 31, of Columbia, was sentenced by U.S. District Judge Stephen R. Bough to five years in federal prison without parole.
On Sept. 8, 2015, Carter pleaded guilty to participating in a conspiracy to distribute crack cocaine.
From February through April 2012, Carter sold cocaine and crack cocaine to a Missouri State Highway Patrol trooper, working as an undercover officer and utilizing the assistance of a confidential informant, on several occasions. On April 16, 2012, for example, Carter sold the undercover officer 28.5 grams of crack cocaine for $1,250. Four buys of crack cocaine were made, which totaled 32.85 grams. Four purchases of cocaine powder were also made, which totaled 32.94 grams.
This case was prosecuted by Assistant U.S. Attorney Jim Lynn. It was investigated by the Drug Enforcement Administration, the Columbia, Mo., Police Department and the Missouri State Highway Patrol.
Three Individuals, Including Madison Business Owner, Plead Guilty to Participating in Stolen Property RingRead the Press Release
James L. Porter, Acting United States Attorney for the Southern District of Illinois, announced that three individuals pled guilty this morning in Federal Court in Southern Illinois to charges arising from their participation in a large stolen property ring. The individuals who pled guilty this morning are James D. Litchfield, 58, owner of Big Jim’s Autorama in Madison, IL, his brother, Ryan P. Litchfield, 37, of O’Fallon, MO, and Benedict G. Pellerito, 55, of Troy, MO.
Evidence revealed in Court showed that the leader of this stolen property fraud ring, Jason J. Parmeley, 42, formerly of O’Fallon, MO, conducted the scheme from Mexico. According to the indictment, Parmeley used the internet to obtain credit account numbers that individuals and businesses had with retail stores, such as Home Depot, Lowe’s, Menard’s, and rental stores, such as SunBelt Rentals. Using this information, Parmeley placed orders with the stores in the names of, and under the credit accounts, of the individuals and businesses. The items Parmeley ordered frequently consisted of appliances, expensive tools, and construction equipment. The indictment charges that, after he placed the orders, Parmeley dispatched drivers to go to the stores and pick up the items. According to the indictment, the items were then sold at prices substantially below retail. The profits were then wire transferred to Parmeley in Mexico.
During the plea hearing today, James D. Litchfield admitted that he received numerous truckloads of items which he knew had been obtained by fraud. This fraudulently obtained property included construction equipment, such as Skid Steer Loaders, appliances, such as washing machines, dryers, and refrigerators, as well as assorted other merchandise, including paint, flooring, and siding. These items were delivered to Big Jim’s Autorama in Madison, IL. James Litchfield admitted that he kept some of these items for his own personal use, but sold other items at prices far below their retail value. James Litchfield also admitted that he provided two trucks that were used by the co-conspirators to pick up fraudulently ordered items. Finally, James Litchfield admitted that he engaged in money laundering by wire transferring payments for the merchandise to Parmeley in Mexico under fake names.
During his plea hearing, Ryan P. Litchfield admitted that he received approximately 20 to 25 truckloads of property and merchandise that had been obtained by fraud. Ryan Litchfield sold the majority of that merchandise to his friends and business associates. On occasion, Ryan Litchfield sold the items by placing advertisements on websites such as Craig’s List. Ryan Litchfield sold these items for substantially less than their retail value. He also admitted that he occasionally allowed Parmeley to store items that had been obtained by fraud at his house and that he rented storage lockers that were used to store property obtained by fraud.
Benedict G. Pellerito admitted that he worked as a driver for the conspiracy on at least 12 occasions. Pellerito acknowledged that he picked up fraudulently ordered merchandise at various retail stores in Illinois, Missouri, and Kansas, and then delivered those items to Parmeley’s customers. Pellerito also admitted that he engaged in money laundering by wire transferring money to Parmeley in Mexico under fake names.
In late August of this year, Mexican Immigration Authorities deported Parmeley from Mexico. Parmeley is currently in federal custody in Alabama on an unrelated bank fraud charge. It is expected that he will be transferred to the Southern District of Illinois in the near future to stand trial on the charges in this indictment. As to Parmeley, please remember that he is presumed innocent until proven guilty beyond a reasonable doubt.
The sentencing hearings for James Litchfield and Ryan Litchfield will be conducted on June 7, 2016 at 10:30 a.m. and 1:30 p.m., respectively; the sentencing hearing for Benedict Pellerito will be conducted on June 14, 2016, at 9:30 a.m. at the Federal Courthouse in Benton, IL. The trial of the remaining defendants is scheduled for April 18, 2016.
The charges contained in the indictment include conspiracy to commit wire fraud, conspiracy to transport property obtained by fraud in interstate commerce, wire fraud, interstate transportation of property obtained by fraud, possession of property obtained by fraud, money laundering, and aggravated identity theft. The indictment also seeks forfeiture of the proceeds of the fraud scheme.
The investigation is being conducted by agents from the St. Louis Division of the Federal Bureau of Investigation ("FBI"). The FBI has received substantial assistance from many state and local police departments in numerous jurisdictions, including the Metro East Auto Theft Task Force. The case is being prosecuted by Assistant United States Attorneys Scott A. Verseman and Jonathan Drucker.
Tampa Man Pleads Guilty to Credit Card FraudRead 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 Jose Valdivia Quinones, 41, a Cuban National of Tampa, Florida, who was convicted of bank fraud, was sentenced to 10 months in prison by U.S. District Judge Richard J. Arcara. The defendant was also ordered to pay $1,642.51 in restitution.Assistant U.S. Attorney Russell T. Ippolito, Jr., who handled the case, stated that Quinones fraudulently obtained the credit/debit card numbers of actual people and then encoded counterfeit cards with the information illegally obtained. The defendant then used the counterfeit cards to purchase merchandise at Tops Markets stores in the Towns of Hamburg and East Aurora.
Quinones was arrested along with five other defendants, Eduardo Quinones Hernandez, Yasser Carrillo Chartrand, Yaily Santurio Milian, Claudia Diaz Diaz, and Misael Toledo Rios. Hernandez, Milian, Diaz and Rios have all been convicted; charges are still pending against Chartrand. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The sentencing is the culmination of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero, the U.S. Secret Service, under the direction of C. Todd Laster, and the New York State Police, under the direction of Major Steven Nigrelli.
Tallahassee Man Sentenced to Ten Years in Prison for Firearm PossessionRead the Press Release
TALLAHASSEE, FLORIDA – Isaac Dillard Wilson, 35, of Tallahassee, was sentenced to 120 months in federal prison today for possession of a firearm by a convicted felon. The sentence was structured so that 84 months (seven years) would run consecutively to state prison sentences, which Wilson is already serving, and the remainder would run concurrently with the state sentences. Wilson pled guilty to this charge last November, reserving the right to appeal the denial of his motion to suppress evidence, according to Christopher P. Canova, Acting United States Attorney for the Northern District of Florida.
Court records showed that the Tallahassee Police Department (TPD) stopped Wilson for speeding at about 10:30 p.m. on July 19, 2013. After a police canine alerted to the presence of odors associated with narcotics, Wilson’s rental vehicle was searched. TPD recovered a stolen and loaded 9 millimeter pistol from the front console, and a loaded SKS assault rifle, from the trunk. A small amount of marijuana and Wilson’s personal items were found in the vehicle as well. Wilson had paid $850 cash to rent the vehicle twelve hours earlier. He was the sole occupant of the vehicle.
At the time of arrest, Wilson was on probation from a 2008 conviction for fleeing or attempting to elude. That probation was revoked and a fifteen-year state prison sentence was imposed in January 2014. In July 2015, Wilson was convicted of attempted felony murder, based upon a shooting during a 2008 robbery, and received a life sentence. The federal sentence runs partially consecutive to these sentences.
Acting United States Attorney Canova praised the work of the Tallahassee Police Department, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the State Attorney’s Office for the Second Judicial Circuit, whose joint investigation led to the convictions in this case. This case was prosecuted by Assistant United States Attorney Michael T. Simpson.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. The office strives to protect and serve the citizens of the Northern District of Florida through the ethical, vigorous, and impartial enforcement of the laws of the United States, to defend the national security, to improve the safety and quality of life in our communities through the protection of civil rights, and to protect the public funds and financial assets of the United States. To access available public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact: Amy Alexander, Public Information Officer
(850) 216-3854, [email protected]St. Thomas Man Pleads Guilty to Bribing Public OfficialRead the Press Release
St. Thomas, USVI –On Friday, February 12, 2016, Miguel Rodriguez Ramirez, 45, pleaded guilty in District Court to bribery of a public official, United States Attorney Ronald W. Sharpe announced.
According to the plea agreement filed with the court, between July 2015 and December 2015, Ramirez bribed an undercover public official by paying the undercover public official to smuggle illegal aliens into the United States. Ramirez paid the undercover public official a total of $12,080 to shepherd the illegal aliens through customs at the Cyril E. King Airport. District Judge Curtis V. Gomez continued Ramirez’s status in official detention. A sentencing date has been set for June 16, 2016.
Ramirez faces a maximum of 15 years in prison and a $250,000 fine.
The case is the result of investigative work by Customs and Border Protection Office of Internal Affairs, the U.S. Immigration and Customs Enforcement Office of Professional Responsibility and Immigration and Customs Enforcement’s Homeland Security Investigations. The case is being prosecuted by Assistant U.S. Attorney Sigrid Tejo-Sprotte.
St. Croix Man Sentenced for Murder and Related Firearm OffensesRead the Press Release
St. Croix, USVI – Chief District Court Judge Wilma A. Lewis on February 11, 2016, sentenced Craig Muller, 31, to 5 years in federal prison for a possession of a firearm in a school zone, United States Attorney Ronald W. Sharpe announced. Additionally, the court imposed a sentence of life in prison without parole for first degree murder and 20 years in prison on a local firearms offense to be served after the federal sentences. Chief Judge Lewis also sentenced Muller to a 1-year term of supervised release, pay a fine of $25,000, pay $6,360 in restitution, and pay a special assessment of $25.
After a two-week trial, on March 24, 2015, a federal jury on St. Croix convicted Muller and co-defendant, Elvin Wrensford. Evidence presented at trial established that during the afternoon on May 10, 2012, the defendants argued with a male individual at Ben’s Car Wash in Estate Princesse. The defendants left and later returned to the car wash in a red truck. A second male, Gilbert Hendricks, Jr., walked out of the car wash, observed the defendants in the truck and began running. The defendants chased Hendricks while in the truck and Wrensford began firing at him as Muller drove. Hendricks fell to the ground and Wrensford continued to shoot at him. Hendricks died as a result of the gunshot wounds. On May 16, 2012, law enforcement stopped Muller at the San Juan International Airport in Puerto Rico on his way to New York. He voluntarily returned to St. Croix and was arrested. Through eyewitness testimony, the government established that Muller was the driver of the red truck.
This case was investigated by the Virgin Islands Police Department. It was prosecuted by Assistant United States Attorneys Alphonso Andrews, Jr., and Rhonda Williams-Henry.
St. Croix Man Sentenced for Possession of Prison ContrabandRead the Press Release
St. Croix, USVI – Senior District Court Judge Raymond L. Finch on February 11, 2016, sentenced Delroy Woods, 25, of St. Croix, to 21 months of imprisonment for possession of prison contraband, United States Attorney Ronald W. Sharpe announced. Judge Finch also ordered Woods to serve two years of supervised release, pay a $250 fine and pay a $100 mandatory assessment.
On October 9, 2015, Woods pleaded guilty to one count of possession of prison contraband. As part of his plea, Woods admitted that on May 7, 2013, while he was an inmate at the Golden Grove Adult Correctional Facility, he possessed a shank or homemade knife which was hidden in the head of his mattress inside his cell.
The case was investigated by the Virgin Islands Bureau of Corrections and the U.S. Drug Enforcement Administration. The case is being prosecuted by Assistant U.S. Attorney Rami S.Badawy.
South Dallas DTO Member Sentenced to 30 Years in Federal Prison on Drug Distribution Conspiracy and Kidnapping ConvictionsRead the Press Release
DALLAS — Patrick D. Lenard, 34, of Pleasant Grove, South Dallas, was sentenced this afternoon by U.S. District Judge Jane J. Boyle to 30 years in federal prison following his guilty plea last year to one count of conspiracy to possess with intent to distribute cocaine, heroin and marijuana and one count of kidnapping, announced U.S. Attorney John Parker of the Northern District of Texas.
A federal grand jury indicted Lenard and ten others in November 2014 on various conspiracy, drug trafficking, kidnapping, firearm, witness intimidation/tampering, and records destruction charges stemming from their involvement in a violent drug trafficking organization (DTO) that operated out of both the Pleasant Grove area of South Dallas and the Dallas County Jail. All eleven defendants have been convicted, and all but two have been sentenced.
In November 2015, co-defendant Selena Ball, 30, of Desoto, Texas, was sentenced to 97 months in federal prison following her guilty plea to one count of conspiracy to possess with the intent to distribute cocaine. She worked for the Dallas County Probation Department, and part of her job involved monitoring inmates, including Lenard, with whom she had a romantic relationship despite her position and the clear conflict the relationship created. Because of that relationship, Ball changed or purposefully failed to report violations of Lenard’s conditions of release.
At various times between November 2012 and November 2014, Lenard conducted and managed drug-trafficking activities from his Dallas County Jail cell. He used jail phones to call co-conspirators and on several of those phone calls, Lenard instructed another co-conspirator to conference in a third co-conspirator so that Lenard could give instructions or obtain information from that individual related to Lenard’s drug-trafficking activities. On one occasion, in August 2014, Lenard engaged in a phone conversation with Ball, another co-conspirator, and an unindicted co-conspirator, about illegal narcotics transactions, including one planned for that day, and money obtained from these transactions. These conversations included discussions regarding approximately $66,000 obtained from these transactions.
Lenard also admitted to his role in a brutal kidnapping in which Lenard and co-conspirators carjacked and kidnapped a victim in broad daylight at a gas station on Stemmons Freeway in Dallas. They ran over the victim twice, taking him by force and at gunpoint, carried him to another location where he was then beaten and tortured, as Lenard and his crew sought to locate drug money they believed the victim had stolen. Several surveillance cameras recorded the kidnapping.
The Texas Department of Public Safety (DPS), the Drug Enforcement Administration, the FBI and the Dallas Police Department led the investigation.
Deputy Criminal Chief Assistant U.S. Attorney Rick Calvert and Assistant U.S. Attorneys Errin Martin and P. J. Meitl prosecuted the case.
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Sedalia Man Sentenced for Distributing MethRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Sedalia, Mo., man was sentenced in federal court today for distributing methamphetamine.
Arnulfo Alejandro Lopez, 36, of Sedalia, was sentenced by U.S. District Judge Stephen R. Bough to seven years in federal prison without parole.
On Oct. 6, 2015, Lopez pleaded guilty to distributing methamphetamine.
On Sept. 26, 2014, Lopez sold one ounce of methamphetamine for $1,200 to a confidential informant who was working with an undercover Missouri State Highway Patrol trooper. The informant told law enforcement officers that Lopez, who was on probation for a state drug trafficking conviction, was selling methamphetamine on a regular basis. The informant called Lopez and asked to purchase methamphetamine for a good friend. The informant and the undercover officer then met Lopez at a hotel parking lot in Sedalia for the transaction.
The confidential informant told officers that, during a three-month period earlier that year, s/he had purchased 1 to 2 ounces of methamphetamine two or three times a week from Lopez. The informant also told investigators that s/he had seen two firearms in Lopez’s possession.
Lopez had two addresses in Sedalia – one residence where he lived with his wife and children, and another residence where he stored drugs and a firearm. The informant told officers that s/he had purchased 3.5 grams of methamphetamine from Lopez a week prior, and at that time had seen bricks of marijuana in the stash house.
Lopez was indicted by a federal grand jury on June 10, 2015.
On June 11, 2015, officers saw Lopez leave his stash house and travel to a hotel. They arrested him at the hotel on a federal arrest warrant. Inside Lopez’s car, officers found a .22-caliber revolver, approximately 5.4 pounds of marijuana, and $4,459. Officers executed a search warrant at the stash house and found more drugs; specifically, six bags containing methamphetamine in various amounts (10.2 grams, 26 grams, .25 grams, .8 grams, 1.4 grams and 3.5 grams). They also recovered a bag containing 11.2 grams of cocaine, two digital scales, a .22-caliber Marlin rifle, ammunition and $720.
Based on the amount of drugs seized, and the informant’s statements regarding the amounts of methamphetamine s/he had purchased, Lopez is accountable for at least 24 ounces of methamphetamine. An additional 4.2 ounces of methamphetamine can be included by converting the amount of cash seized to methamphetamine, so Lopez is responsible for a total of 28.2 ounces of methamphetamine.
This case was prosecuted by Assistant U.S. Attorney Anthony P. Gonzalez. It was investigated by the Missouri State Highway Patrol and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Schuele Boys Gang Associate Pleads Guilty to Drug ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. — U.S. Attorney William J. Hochul, Jr. announced today that Eric Sears, 48, of Buffalo, pleaded guilty to conspiracy to distribute cocaine before U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorney George C. Burgasser, who is handling the case, stated that between June 2013 and July 2014, Sears conspired with other Schuele Boys associates and gang members including Michael Robertson to distribute cocaine in the City of Buffalo.
The Schuele Boys Gang, which operated in the Schuele Street area of the East Side of Buffalo, is believed to be responsible for multiple acts of violence and the distribution of illegal narcotics including cocaine, crack cocaine and marijuana.
Sears is one of 28 Schuele Boys Gang members, associates and other individuals arrested in this case. To date, 18 of the defendants have been convicted. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Today’s sentenced and plea are the culmination of an investigation on the part of the FBI's Safe Streets Task Force which includes representatives of the Amherst Police Department; the Buffalo Police Department; U.S. Border Patrol, the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Cheektowaga Police Department; the Erie County Sheriff’s Department; the Hamburg Police Department; the Lancaster Police Department; the Niagara Frontier Transportation Authority Police; the New York State Department of Correctional Services; the New York State Police; and U.S. Immigration and Customs Enforcement, Homeland Security Investigations. Additional assistance was provided by the Drug Enforcement Administration; U.S. Customs and Border Protection, the United States Marshal Service, the Lackawanna Police Department, and the Niagara County Sheriff’s Department.
Sears will be sentenced on May 18, 2016 at 10:00 a.m. before Judge Arcara.
Savannah-Chatham Reentry Council to Host Discussion withRead the Press Release
SAVANNAH, GA – The Savannah-Chatham Reentry Council, in collaboration with the Savannah Area Chamber of Commerce, Dismas Charities Inc. and the United States Attorney’s Office for the Southern District of Georgia are hosting a conference for local business leaders. The discussions will educate attendees on the incentives, strategies and solutions surrounding the employment of returning citizens (individuals recently released from incarceration). The conference will feature remarks from state, local and federal government officials, employers, and community leaders. A Q&A session will follow the presentations.
Event: Savannah-Chatham Reentry Council Conference
Date/Time: February 17, 2016
9 a.m. – 12:30 p.m.
Location: Savannah Civic Center
3rd Floor Ballroom
301 W. Oglethorpe Ave.
Savannah, GA 31401
Participants: Mayor Eddie DeLoach
District Attorney Meg Heap
U.S. Attorney Edward J. Tarver
Bill Hubbard, Savannah Area Chamber of Commerce President
Van Johnson, Alderman
Miscellaneous: Press should arrive by 8:30 a.m.
San Angelo Man Sentenced to 10 years in Federal Prison for Transporting Child PornographyRead the Press Release
LUBBOCK, Texas — Robert Mark Haugland, II, 25, of San Angelo, Texas, was sentenced today by Senior U.S. District Judge Sam R. Cummings to 10 years in federal prison, following his guilty plea in October 2015 to one count of transportation of child pornography. Today’s announcement was made by U.S. Attorney John Parker of the Northern District of Texas.
Judge Cummings remanded Haugland into custody at the conclusion of the sentencing hearing. Haugland had been on bond since his initial appearance on the charges in August 2015.
According to documents filed in his case, in approximately 2014, Haugland began using Kik, a social networking application, to communicate with various persons about child pornography and to transport and receive images of child pornography.
One such transaction occurred on July 9, 2014, when Haugland used his cell phone and Kik to send an image of prepubescent child pornography to another person.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Tom Green County Sheriff’s Office investigated the case. Assistant U.S. Attorney Steven M. Sucsy was in charge of the prosecution.
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Repeat Bank Robber Sentenced to Seven Years in PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge J. Frederick Motz, sentenced Tony Linn Smith, age 56, of Silver Spring, Maryland, today to seven years in prison, followed by three years of supervised release, immediately after Smith entered his guilty plea to bank robbery. Judge Motz also entered a forfeiture order requiring Smith to pay a money judgment in the amount of $4,775.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation, Baltimore Field Office; Chief J. Thomas Manger of the Montgomery County Police Department; and Captain Paul “Joey” Kifer, Acting Chief of the Hagerstown Police Department.
According to his plea agreement, Smith committed three bank robberies between July 17 and July 25, 2015. In each robbery Smith entered the bank, presented the teller with a note demanding money and stating that he had a gun. Specifically, Smith robbed the M&T Bank on North Potomac Street in Hagerstown, Maryland on July 17th; the Sun Trust Bank located at 8700 Georgia Avenue in Silver Spring, Maryland on July 23rd; and the M&T Bank at 51 W. Edmonston Drive in Rockville, Maryland on July 25th. Smith stole a total of $5,100 from the three robberies.
In December 2001, Smith pleaded guilty to bank robbery and was sentenced to five years in prison, followed by three years of supervised release. After serving his prison term in federal custody, Smith served approximately eight years in state custody in connection with a Virginia bank robbery. Smith was released from state custody on June 30, 2014 and was required to be on federal supervised release until June 29, 2017. As a result, Smith was on supervised release at the time of the bank robberies described above.
United States Attorney Rod J. Rosenstein praised the FBI, Montgomery County Police Department, and Hagerstown Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Nicolas A. Mitchell, who prosecuted the case.
Philadelphia Attorney Indicted for Conspiring to Launder Drug Proceeds Involving a Major Drug Distribution OrganizationRead the Press Release
Greenbelt, Maryland – Philadelphia attorney James Michael Farrell, age 63, of Wenonah, New Jersey, had his initial appearance and arraignment today in U.S. District Court in Greenbelt, Maryland, on charges related to his activities on behalf of members of an extensive drug trafficking operation. Mr. Farrell pleaded not guilty to the charges and was released under the supervision of U.S. Pretrial Services. On October 26, 2015, a federal grand jury returned a sealed indictment charging Farrell with conspiracy, money laundering, tampering with an official proceeding, and witness tampering. The indictment was unsealed on January 28, 2016.
The initial appearance and indictment were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; Special Agent in Charge Thomas Jankowski of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; Chief J. Thomas Manger of the Montgomery County Police Department; Interim Chief Henry P. Stawinski of the Prince George’s County Police Department; Chief James W. Johnson of the Baltimore County Police Department; and Commissioner Kevin Davis of the Baltimore Police Department.
According to the 12-count indictment, Farrell was admitted to practice law in Pennsylvania and New Jersey, and maintained a law office in Philadelphia, Pennsylvania. Matthew Nicka, his wife Gretchen Peterson, David D’Amico, and others were part of an extensive drug trafficking operation which was discovered by the DEA when they executed a search warrant at a residence in the 3500 block of Hickory Avenue in Baltimore on March 18, 2009. The residence was a center of operation for the group. Agents seized more than 80 pounds of marijuana, $20,000 in cash, 31 cell phones, documents regarding a plane purchased for $450,000, and tally sheets showing over $14.5 million in marijuana sales, among other items.
The indictment alleges that beginning in 2009 and continuing through at least April 2013, Farrell conspired with Nicka, D’Amico, Peterson and others to conduct financial transactions using the proceeds of the Nicka Organization in order to conceal the source, location, ownership and control of the drug proceeds. Specifically, the indictment alleges that the drug conspirators would deliver funds, usually in the form of cash to Farrell. Farrell deposited some of the cash into his commercial bank accounts, recording the deposits as payments in the names of individuals who had not retained Farrell as their attorney. In addition, Farrell wrote checks and disbursed cash to pay for the legal representation of grand jury witnesses or individuals charged or under investigation in Maryland in connection with the activities of the Nicka Organization, including legal representation by two Baltimore area attorneys. According to the indictment, Farrell also used drug proceeds to obtain money orders and deposit them into the inmate accounts of incarcerated individuals with knowledge of the drug conspiracy. Farrell and his co-conspirators structured financial transactions to evade IRS filing requirements for transactions involving $10,000 or more in cash, thereby further concealing from the government large cash transactions by members of the Nicka Organization and it suppliers and customers.
The indictment further alleges that in February 2011, Farrell met with a drug dealer to discuss filing a claim with the DEA to seek the return of certain property DEA had seized from the drug dealer. Farrell allegedly advised that individual not to disclose to DEA who had given the drug dealer the property. On February 28, 2011, Farrell caused affidavits in support of the forfeiture of the property to be filed with DEA that contained the purported notarized signature of the drug dealer, when in fact the drug dealer had not appeared before the notary public.
On July 11, 2012, Farrell allegedly met with another drug dealer, knowing that person was represented by other counsel, and agreed to contact the Nicka Organization to obtain funds to assist with the drug dealer’s legal expenses. Farrell directed the drug dealer to meet with federal law enforcement officers and federal prosecutors, but to only tell them what they already knew, rather than sharing all the information the drug dealer knew about the drug and money laundering conspiracy charged in the Nicka indictment. On July 31, 2011, Farrell again met with the drug dealer and allegedly paid him $19,800 in cash.
If convicted, Farrell faces a maximum sentence of 20 years in prison for conspiracy to engage in money laundering and each of six counts of money laundering; a maximum of 20 years in prison for each of three counts of tampering with an official proceeding; and a maximum of 20 years in prison for each of two counts of tampering with a witness.
David D’Amico, age 49, of Baltimore, Matthew Nicka, age 43, of Baltimore and his wife, Gretchen Peterson, age 34, of Kennett Square, Pennsylvania, pleaded guilty on January13, 2016, to conspiracy to distribute at least 1,000 kilograms of marijuana and conspiracy to commit money laundering. D’Amico, Nicka and Peterson had been fugitives since the indictment was returned in December 2010. Nicka and Peterson were arrested in Canada in early August 2013, and D’Amico was extradited from Colombia, South America. U.S. District Judge Roger W. Titus has scheduled sentencing for D’Amico and Peterson on May 2, 2016, and for Nicka on May 9, 2016.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein praised the DEA, IRS-CI, and the Montgomery County, Prince George’s County, Baltimore County and Baltimore City Police Departments for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Deborah A. Johnston, who is prosecuting this Organized Crime Drug Enforcement Task Force case.
Orathay Sims Sentenced to 210 Months for Methamphetamine DistributionRead the Press Release
SOUTH BEND – United States Attorney for the Northern District of Indiana, David Capp, announced that Orathay Sims, 31, of Logansport, Indiana was sentenced on February 11, 2016, before Judge Jon E. DeGuilio, for distribution of methamphetamine.
Sims was sentenced to 210 months imprisonment and 4 years of supervised release.
According to documents in the case, on June 2015 Sims entered a plea of guilty for distribution of methamphetamine weighing in excess of 50 grams in Cass County Indiana.
This case was prosecuted as a result of an investigation by the Drug Enforcement Administration. This case was prosecuted by Assistant United States Attorney Frank E. Schaffer.
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Oneida County Woman Charged with Federal Disability FraudRead the Press Release
SYRACUSE, NEW YORK – Lynn M. Allen, 47, of Marcy, New York, appeared today in federal court in Syracuse on charges stemming from a scheme to defraud the United States Postal Service and the U.S. Department of Labor of more than $94,000 in federal disability compensation payments, announced United States Attorney Richard S. Hartunian and Eileen Neff, Special Agent in Charge, United States Postal Service Office of Inspector General (USPS OIG), Northeast Area Field Office.
Allen was arrested earlier today in Utica, New York, while at work at the New York State Workers’ Compensation Board. Following her court appearance before United States Magistrate Judge David E. Peebles, she was released pending trial.
The five-count indictment charges Allen with wire fraud, theft of government money, federal employees’ compensation fraud and includes a forfeiture allegation seeking a money judgment in the amount of $94,253.95. The indictment alleges that Allen received federal disability benefits after claiming that she injured her shoulder, back, and neck while working for the Postal Service. According to the indictment, Allen supported her disability claim by reporting that her injuries prevented her from grasping objects or reaching above the shoulder and that she could not engage in any repetitive reaching, bending, stooping, or movements of the wrists and elbows. The indictment further alleges that Allen continued to certify that she was disabled and unable to work for the Postal Service while playing in several recreational softball leagues in Rome, New York, and that in one instance, she played in a competitive softball game hours after claiming that she could not reach above her shoulder at all. If convicted, Allen faces up to 20 years in prison and a maximum fine of $250,000. Sentences are imposed by a judge based upon the particular statute the defendant is charged with violating, the United States Sentencing Guidelines and other factors.
The charges in the indictment are merely accusations. The defendant is presumed innocent until proven guilty. This case is being investigated by USPS OIG and is being prosecuted by Assistant U.S. Attorney Michael F. Perry.
Omaha Man Sentenced to 5 Years in Prison for Receiving Child PornographyRead the Press Release
Jason M. Wilds, 34, was sentenced in federal court in Omaha, Nebraska, for receiving child pornography. The Honorable Joseph F. Bataillon, Senior United States District Court Judge sentenced Wilds to a five year term of imprisonment. There is no parole in the federal prison system. After his release from prison, Wilds will begin a 10 year term of supervised release and will be required to register as a sex offender. Wilds was also ordered to pay restitution totaling $10,000 to four victims whose images were among those in Wilds’ collection.
Investigators with the FBI Cyber Crimes Task Force were conducting undercover investigations looking for individuals sharing child pornography. Three videos of child pornography, each involving children as young as 3 and no older than 8 involved in sexual acts with adults, were found to be available for sharing on Wilds’ computer.
On March 20, 2013, a federal search warrant was executed at Wilds’ apartment. A video of child pornography was found on his cell phone. A search of his computer revealed more than 300 images of child pornography and four videos that had recently been deleted.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys= Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Novi Restaurant Owner Arrested for Harboring Undocumented Immigrants following Deaths of WorkersRead the Press Release
The owner of a Novi, Michigan, restaurant was taken into custody after a criminal complaint was filed in federal court charging him with harboring undocumented immigrants, announced United States Attorney Barbara L. McQuade.
McQuade was joined in the announcement by Special Agent in Charge Marlon Miller, U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) and Chief David Molloy, Novi Police Department.
Roger Tam, 55, and his wife, Ada Lei, 48, of Novi were charged in the complaint.
The arrest is the latest development in an ongoing probe by the Novi Police Department and HSI with assistance from ICE’s Enforcement and Removal Operations (ERO), U.S. Customs and Border Protection’s Border Patrol and the Oakland County Sherriff’s Office.
An investigation was launched after HSI special agents and officers with the Novi Police executed federal and state search warrants at the Novi residence, where five Mexican nationals died as a result of a Jan. 31 fire. Department of Homeland Security databases revealed that all five men were illegally present in the United States and had entered in the last six months.
The criminal complaint alleges that Tam hired five Mexican nationals to work at Kim’s Garden in Novi. The Mexican nationals were provided housing in the Novi home owned by Tam and Lei, and were transported to and from the restaurant, as a condition of their employment. The criminal complaint further alleges Tam told a Novi detective at the scene of the fire that the deceased individuals were employees at Kim’s Garden whom he paid in cash and allowed to reside in the home’s basement, where smoke detectors had been disabled.
“I am proud of the efforts and professionalism of our investigative team who worked selflessly with our federal partners in bringing this case to fruition,” said David Molloy, City of Novi’s public safety director and chief of police. “What warranted this investigation was senseless on so many counts; from the tragic loss of five lives to the skirting of our nation’s immigration system. In all my years of law enforcement, I have never witnessed such blatant disregard for respect of human life. As the health, safety and welfare of Novi residents and businesses is our main concern, activities such as this will not be tolerated and will be prosecuted to the full extent the law.”
"My immediate sense is that this extremely tragic loss of life could have been avoided," said Marlon Miller, special agent in charge of HSI Detroit. "HSI is committed to aggressively investigating those who harbor undocumented immigrants and place personal profit ahead of public safety. HSI simply will not turn a blind eye to employers who shirk their responsibility to maintain a legal workforce."
“This case is a sobering reminder of the dangers employers create when they harbor undocumented immigrants,” McQuade said. “In order to obtain a competitive advantage by paying lower wages and evading taxes, some employers will subject undocumented workers to poor living conditions and even dangerous situations.”
According to the complaint, employment and financial records for Kim’s Garden revealed no indication that the five individuals were legally employed at the restaurant.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty.
If found guilty, Tam and Lei face up to 10 years in prison and a $250,000 fine.
New York Man Pleads Guilty to Pharmacy RobberyRead the Press Release
Contact: Michael J. Conley
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Scott McMahon, 32, of Orchard Park, New York, pled guilty today in U.S. District Court before Judge Jon D. Levy to pharmacy robbery.
According to court records and evidence introduced at the plea hearing, on September 10, 2014, McMahon entered the Rite Aid pharmacy located at 461 Main Street in Saco and approached the pharmacy counter. Upon arriving at the counter, McMahon told a Rite Aid pharmacy employee, “I’m watching you” and then handed the employee a note which read, “Give me oxycontin. If you don’t it will get ugly.” The employee then placed OxyContin pills into a plastic bag and handed the bag to McMahon, who fled the store.
McMahon faces up to 20 years in prison and a $250,000 fine. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The investigation was conducted by the Saco Police Department.
New Jersey Stock Promoter Identified in Undercover Operation Sentenced to PrisonRead the Press Release
BOSTON – A New Jersey stock promoter was sentenced today in U.S. District Court in Boston for his involvement in a scheme to artificially manipulate the stock price of Massachusetts-based company, Amogear Inc.
Michael Affa, 36, of Toms River, NJ, was sentenced by U.S. District Court Judge William G. Young to 33 months in prison and ordered to pay a fine of $1 million. In September 2015, Affa pleaded guilty to conspiracy, securities fraud, and wire fraud.
In 2013 and 2014, a federal undercover operation monitored in real-time, Affa’s participation in the scheme to manipulate the stock price of Amogear. In February 2014, the SEC suspended trading in the securities of Amogear as the attempted manipulation of its stock was underway. Prior to the suspension, Affa and his co-conspirators, who were all stock promoters, carried out a scheme to create a false appearance of an active market in the stock, including a false media campaign designed to increase the price of the stock, knowing that Amogear was a shell company without any real operations. Affa and his co-conspirators planned to sell the stock into the market at artificially inflated prices from which they would profit. What Affa did not know was that Amogear was controlled by the FBI and used to obtain evidence of their attempt to manipulate the market.
The case arises from a multi-year investigation focusing on preventing fraud in the microcap stock markets. Microcap companies are small, publicly-traded companies whose stock often trades at pennies per share. Fraud in the microcap stock markets is of increasing concern to regulators as such markets have proven to be fertile grounds for fraud and abuse. This is, in part, because accurate information about microcap stocks may be difficult for the average investor to find, since many microcap companies do not file financial reports with the SEC.
United States Attorney Carmen M. Ortiz and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The case was prosecuted by Assistant U.S. Attorney Vassili Thomadakis of Ortiz’s Criminal Division and Special Assistant U.S. Attorneys Eric Forni and Andrew Palid of the Securities and Exchange Commission.
New Jersey Doctor, Two Companies Agree to Pay $5.25 Million for Allegedly Submitting Bogus Claims to Federal Health Care ProgramsRead the Press Release
NEWARK, N.J. – Dr. Labib E. Riachi, 47, of Westfield, New Jersey, and two companies that he owns and operates, Riachi, Inc. and Center for Advanced Pelvic Surgery, LLC, both based in Westfield, have agreed to pay $5.25 million to resolve allegations that they falsely billed federal health care programs for tests that were never provided, among other claims, U.S. Attorney Paul J. Fishman announced today.
The settlement resolves allegations that the defendants routinely billed Medicare and Medicaid for anorectal manometry, an invasive diagnostic test, and electromyography, another diagnostic test, even though most of the tests were never performed. In addition, the settlement resolves claims that the defendants submitted claims to Medicare for physical therapy services that should not have been paid because they were not performed by a qualified therapist.
The allegations resolved by today’s settlement were raised in a civil lawsuit that the government filed on Feb. 10, 2016, in Newark federal court charging the defendants with violating the False Claims Act, among other illegal conduct.
U.S. Attorney Fishman credited special agents of the U.S. Department of Health and Human Services, Office of the Inspector General, under the direction of Special Agent in Charge Scott J. Lampert, and the FBI, under the direction of Acting Special Agent in Charge Andrew Campi in Newark, with the investigation leading to the settlement.
The government is represented by Assistant U.S. Attorneys Bernard J. Cooney and Lucy Muzzy of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark.
U.S. Attorney Fishman reorganized the health care fraud practice at the New Jersey U.S. Attorney’s Office shortly after taking office, including creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered more than $645 million in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act and other statutes.
The claims settled by this agreement are allegations only, and there has been no determination of liability. The case is captioned United States v. Riachi, et al. (D.N.J.).
Defense counsel: Bruce Levy Esq. and Larry Lustberg Esq., Newark
Matthew McCray Indicted for Possession and Production of Child PornographyRead the Press Release
SOUTH BEND – United States Attorney for the Northern District of Indiana, David Capp, announced that Matthew McCray, 36, of South Bend, Indiana was indicted on February 10, 2016 with 4 counts of producing and 1 count of possession of child pornography.
According to documents in the case, McCray is accused of using a minor, Jane Doe, to produce child pornography on four occasions from October 25, 2013 to January 28, 2016, and with possession of child pornography on January 28, 2016. McCray is currently being held without bond.
This case was prosecuted as a result of an investigation by the Federal Bureau of Investigation and St. Joseph County Sheriff’s Department. This case will be prosecuted by Assistant United States Attorney John Maciejczyk.
The United States Attorney's Office emphasized that an Indictment is merely an allegation and that all persons charged are presumed innocent until and unless proven guilty in court.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
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Maryland Man Sentenced to 28 Months in Prison for Traveling to Engage in Illicit Sexual Conduct with a MinorRead the Press Release
WASHINGTON – Ravi Singit, 41, of Rockville, Md., has been sentenced to 28 months in prison after earlier pleading guilty to a charge of traveling interstate to engage in illicit sexual conduct with a minor, announced U.S. Attorney Channing D. Phillips, Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office, and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Singit pled guilty in November 2015 in the U.S. District Court for the District of Columbia. He was sentenced on Feb. 11, 2016, by the Honorable Senior Judge John D. Bates. Following his prison term, he will be placed on five years of supervised release. He also will be required to register as a sex offender for a minimum of 15 years upon his release from prison.
According to the government's evidence, on Aug. 26, 2015, Singit contacted an undercover officer with the FBI's Child Exploitation Task Force, who had posted an ad on a social network site. Over the next several days, Singit engaged in e-mail, phone, and text message conversations with the undercover officer, whom the defendant believed had access to a purported under-age girl. During this period of time, Singit arranged with the undercover officer to meet for the purpose of engaging in sexual acts with the child.
On Aug. 31, 2015, Singit traveled from Maryland to a pre-arranged meeting place in Washington, D.C. When he arrived at the meeting place, he was arrested.
This case was brought as part of the Department of Justice's Project Safe Childhood initiative and investigated by the FBI's Child Exploitation Task Force, which includes members of the FBI's Washington Field Office and MPD. In February 2006, the Attorney General created Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney's Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov
In announcing the sentence, U.S. Attorney Phillips, Assistant Director in Charge Abbate, and Chief Lanier praised the work of the MPD Detectives and Special Agents of the FBI Child Exploitation Task Force. They also commended the efforts Assistant U.S. Attorney Cassidy Kesler Pinegar, who prosecuted the case.
Manhattan U.S. Attorney Files Civil Rights Suit and Enters Settlement with Developer to Enhance Accessibility at More Than 2,500 Rental ApartmentsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that it has settled a federal civil rights lawsuit against GLENWOOD MANAGEMENT CORPORATION (“GLENWOOD”) and GLENWOOD’S affiliate, LIBERTY STREET REALTY, LLC, by consent decree. Under the settlement, GLENWOOD agrees to make retrofits at three residential rental complexes in Manhattan – Liberty Plaza, Hawthorne Park, and The Sage – to make them more accessible to individuals with disabilities. GLENWOOD further agrees to inspect six other residential rental complexes in Manhattan and, where necessary, make retrofits at those buildings as well. Additionally, GLENWOOD must establish procedures to ensure that its ongoing and future development projects will comply with the accessibility requirements of the federal Fair Housing Act (“FHA”). Finally, GLENWOOD agrees to provide up to $900,000 to compensate aggrieved persons and pay a civil penalty of $50,000. The consent decree was approved yesterday by U.S. District Judge J. Paul Oetken.
Manhattan U.S. Attorney Preet Bharara said: “This is the tenth lawsuit that this Office has brought to ensure that the promise of the Fair Housing Act – that newly built residential buildings are accessible to people with disabilities – is being fulfilled in New York City. This settlement shows our enforcement efforts have motivated major developers like Glenwood to embrace their obligations under the law by making retrofits in thousands of apartments, compensating aggrieved parties, and establishing procedures to ensure accessibility at ongoing and future development projects.”
The FHA’s accessible design and construction provisions require new multifamily housing complexes constructed after January 1993 to have basic features accessible to persons with disabilities. According to the allegations in the Complaint, Liberty Plaza, a 287-unit rental complex located in Manhattan, was designed and constructed with numerous inaccessible features, including excessively high thresholds interfering with accessible routes into and within individual units, insufficient spaces in bathrooms and kitchens for people in wheelchairs, and bathroom configurations preventing installation of grab bars. These inaccessible conditions at Liberty Plaza were first brought to the attention of the United States by testing performed by the Fair Housing Justice Center.
Under the settlement, GLENWOOD agrees to make extensive retrofits at Liberty Plaza and to commit to make retrofits at two other rental complexes that have been inspected, The Hawthorne and The Sage, to make them accessible. GLENWOOD also agrees to arrange for inspection at its six other rental complexes in Manhattan and, where necessary, to make retrofits at those properties as well. Together, the nine buildings covered by the consent decree contain more than 2,500 rental apartments.
The settlement also requires GLENWOOD to establish procedures to ensure FHA compliance at its ongoing and future development projects. These include retaining an FHA compliance consultant to ensure each residential building developed by GLENWOOD will, as constructed, comply with the FHA’s accessibility requirements. The FHA consultant also will conduct a site visit to identify non-compliant conditions and recommend appropriate solutions prior to the completion of construction. In addition, GLENWOOD agrees to institute policies and training to ensure that its own employees and agents will comply with the FHA’s accessibility requirements.
Finally, the settlement requires GLENWOOD to provide up to $900,000 in funds to compensate aggrieved persons. GLENWOOD also agrees to pay a civil penalty of $50,000.
The government’s lawsuit also asserted claims against the architect of Liberty Plaza, STEPHEN B. JACOBS GROUP, PC. The United States is currently engaged in negotiations with that architect regarding a potential settlement.
Aggrieved individuals may be entitled to monetary compensation from the fund created through today’s settlement. Aggrieved individuals may include those who were:
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Injured by a lack of accessible features at Liberty Plaza or the other properties constructed by GLENWOOD;
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Discouraged from living at Liberty Plaza or the other properties constructed by GLENWOOD because of the lack of accessible features;
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Required to pay to have an apartment at Liberty Plaza or the other properties constructed by GLENWOOD made accessible;
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Prevented from having visitors because of a lack of accessible features at Liberty Plaza or the other properties constructed by GLENWOOD; or
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Otherwise injured or discriminated against on the basis of disability as a result of the design or construction of Liberty Plaza or the other properties constructed by GLENWOOD.
People who may be entitled to compensation should file a claim by contacting the Civil Rights Complaint Line at (212) 637-0840, using the Civil Rights Complaint Form available on the United States Attorney’s Office’s website http://www.justice.gov/usao/nys/civilrights.html, or by sending a written claim to:
U.S. Attorney’s Office, Southern District of New York
86 Chambers Street, 3rd Floor
New York, New York 10007
Attention: Chief, Civil Rights Unit
The case is being handled by the Office’s Civil Rights Unit. Assistant U.S. Attorneys Li Yu, Jessica Jean Hu, and Jacob Lillywhite are in charge of the case.
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Law Enforcement Sensitive Training Conducted by IRS-Criminal Investigation in the Districts of Guam and the NMIRead the Press Release
Alicia A.G. Limtiaco, United States Attorney for the Districts of Guam and the Northern Mariana Islands (NMI), announced that the U.S. Attorney’s Office sponsored law enforcement sensitive training on Guam on February 3, 2016, and in Saipan, Northern Mariana Islands, on February 5, 2016. The presenters at the training were Teri Alexander, Special Agent in Charge, IRS-Criminal Investigation (IRS-CI); Jean Song, IRS Attorney; Ryan Thompson, Special Agent from the Seattle IRS Office; IRS-CI Special Agents Todd Peterson and Sith Khamvongsa from the Guam IRS Office; and Guam Department of Revenue and Taxation (DRT) Special Agents Carolyn Aguon Rivera and Jerome Aguon.
The law enforcement sensitive training topics included an Overview of IRS-CI; Money Laundering; Bank Secrecy Act; Financial Crimes (Ponzi Schemes, Bank Fraud, Investment Fraud); Mirror System of Taxation; Tax Crimes (Dual Filers, Identity Theft, Law Enforcement Assistance Program, Employment Tax, FBAR); and case studies. The Special Agents from DRT provided an overview of the DRT Criminal Investigation Branch (CIB), DRT and Identity Theft, and DRT and Dual Filer Issues.
The trainings in Guam and the NMI were attended by over 80 law enforcement officers. The IRS-CI trainers also presented at the U.S. District Conference held on February 4, 2016 in Guam, and the U.S. District Conference held on February 6, 2016 in Saipan, NMI.
Photos taken at both training events.
Participants at the law enforcement sensitive training in Guam IRS-CI Special Agent in Charge Teri Alexander, U.S. Attorney Alicia Limtiaco and Special Agent Carolyn Aguon from the Department of Revenue and Taxation in Guam at a media event in Guam Participants at the law enforcement sensitive training in Saipan, NMI Presenters from the IRS-CI pictured here with U.S. Attorney Alicia Limtiaco in the center Participants at the law enforcement sensitive training in Saipan, NMI U.S. Attorney Alicia Limtiaco and IRS-CI Special Agent in Charge Teri Alexander at a media event in Saipan, NMIKearney Credit Union Robbery Suspect SentencedRead the Press Release
United States Attorney Deborah R. Gilg announced the sentencing of one of the men responsible for the October 17, 2014, robbery of the Kearney Eaton Employees Credit Union. On Friday, February 12, 2016, Senior United States District Judge Richard G. Kopf sentenced Patrick Wigley to the custody of the Bureau of Prisons for 212 months (17.6 years) for his involvement in the robbery. On January 5, 2016, Judge Kopf sentenced a co-defendant, Thomas Dunlap, to the Bureau of Prisons for 136 months (11.3 years) for his involvement in the robbery. As part of the sentences, Dunlap and Wigley were also ordered to pay restitution of $122,891.15.
On October 17, 2014, Dunlap and Wigley, dressed in work clothes and wearing white hard hats, entered the Kearney Eaton Employees Credit Union. Dunlap brandished what employees believed to be a small caliber revolver, and Dunlap and Wigley jumped over the teller counter, gathered the credit union employees into an interior office, had them lay face down on the floor and bound their hands with zip ties. Dunlap and Wigley then emptied one teller’s drawer and took the money from the drawer, together with money from the vault, totaling $122,891.15 and left the premises.
A third co-defendant, Clifton Hudson, is awaiting trial.
This case was investigated by the Kearney Police Department, Buffalo County Sheriff’s Office, the Nebraska State Patrol and the Federal Bureau of Investigation.
Jury Convicts Former IRS Revenue Agent of Accepting BribeRead the Press Release
A former Internal Revenue Service Revenue Agent was convicted today in U.S. District Court in Seattle of two felony counts related to receipt of a bribe, announced U.S. Attorney Annette L. Hayes. PAUL G. HURLEY, 43, of Seattle, was convicted following a two day trial. The jury deliberated for three days in reaching its verdict. U.S. District Judge John C. Coughenour scheduled sentencing for May 13, 2016.
According to testimony at trial and records filed in the case, in the summer of 2015 HURLEY was randomly assigned to audit the corporate taxes of Have a Heart Compassion Care, Inc., a medical marijuana dispensary. In a meeting at one of the dispensary locations, HURLEY presented the owner of the dispensary with the findings of the audit. HURLEY indicated to the business owner that he had ‘saved the owner millions’ during the audit and that he lived paycheck to paycheck. HURLEY asked the business owner for $20,000. The business owner and his attorney reported the bribe request to the FBI. Working with law enforcement, the business owner met twice with HURLEY and in recorded conversations delivered cash in marked bills. Some of this cash was seized from HURLEY at the time of his arrest following the second meeting with the business owner.
At the trial, prosecutors noted that HURLEY had written on the audit paperwork that the business owner had no money to pay on his tax bill following the audit, even as HURLEY sought $20,000 to personally benefit from his work as a public employee. “This is a case about what he didn’t do,” prosecutors told the jury, noting that HURLEY had failed to fulfill his duties as a revenue agent during the audit.
HURLEY had been a revenue agent with the IRS since 2009. Receiving a Bribe by a Public Official is punishable by up to 15 years imprisonment and a $250,000 fine.
The case was investigated by the FBI and by the Treasury Inspector General for Tax Administration (“TIGTA”).
The case was prosecuted by Assistant United States Attorneys Justin W. Arnold and Francis Franze-Nakamura. Press contact for the U.S. Attorney’s Office is Public Affairs Officer Emily Langlie at (206) 553-4110 or [email protected].
Jefferson County Woman Pleads Guilty to $133,000 Theft at Fort DrumRead the Press Release
SYRACUSE, NEW YORK – Nancy E. Campany, 69, of Carthage, New York, pled guilty today in federal court in Syracuse to the theft of more than $133,000 related to contracts she held with the Army & Air Force Exchange Service ("AAFES"), announced United States Attorney Richard S. Hartunian and Craig W. Rupert, Special Agent in Charge, Defense Criminal Investigative Service ("DCIS"), Northeast Field Office, U.S. Department of Defense, Office of Inspector General.
Campany operated an alteration and dry cleaning business known as "Nancy’s Alteration" at Fort Drum, New York, between 2005 and 2011. Her contract with AAFES required payment to AAFES of approximately 23% of the gross sales and receipts generated by "Nancy’s Alteration." Over a nearly six-year period, Campany intentionally failed to record hundreds of thousands of dollars in sales by instructing her employees to process credit card transactions without ringing them through the cash register in order to conceal them from AAFES. Campany then created and submitted false and fraudulent reports to AAFES regarding her gross sales and gross receipts, thereby concealing what she owed under her contracts. In doing so, Campany defrauded AAFES out of $133,769.64 in fees. As part of her guilty plea, Campany agreed to make full restitution to AAFES.
Nancy E. Campany will be sentenced on June 17, 2016 in federal court in Syracuse by Chief District Judge Glenn T. Suddaby. She faces a maximum sentence of up to ten years in prison and a fine of up to $250,000. Sentences are imposed by a judge based upon the particular statute the defendant is charged with violating, the United States Sentencing Guidelines and other factors.
This case was investigated by DCIS, AAFES Loss Prevention, and the AAFES Business Law Division, Office of the General Counsel, and it is being prosecuted by Assistant U.S. Attorney Michael F. Perry.
Jacksonville Man Sentenced to 20 Years for Transporting and Possessing Child PornographyRead the Press Release
Tampa, Florida – U.S. District Judge Susan Bucklew has sentenced James Dale Little (43, Jacksonville) to 20 years in federal prison for transporting and possessing child pornography. The Court also ordered him to serve a life term of supervision and to register as a sex offender upon his release. A federal jury found him guilty on October 21, 2015.
According to evidence presented during the three-day trial, law enforcement officers identified Little while investigating another individual with whom Little had been trading child pornography via email. The agents discovered that Little had received and sent images of prepubescent minors engaging in sexually explicit conduct and materials portraying children engaged in sadistic conduct and violence.
Little had a prior conviction in 1996 for injury to a child in Galveston, Texas. Evidence at sentencing showed that this prior conviction involved Little’s molestation and sexual abuse of a 4-year-old child.
"Protecting our children from these heinous crimes is one of the top priorities of Homeland Security Investigations," said Susan L. McCormick, special agent in charge of HSI Tampa. “This sentencing is one more step in making our communities safer.”
The case was investigated by the U.S. Immigration and Customs Enforcement's Homeland Security Investigations. It was prosecuted by Assistant United States Attorneys Kelly S. Karase and Gregory Nolan.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.