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21 January 2016
Riverside Woman Convicted of Stealing the Identities of Residents of Medical Facility in Long BeachRead the Press Release
LOS ANGELES – A Riverside woman has been convicted on federal identity theft charges for possessing the identities of more than 50 patients of a residential medical facility in Long Beach formerly known as the Hillcrest Care Center.
Bridgette Jackson, 45, was convicted by a jury yesterday afternoon in United States District Court of conspiring to possess more than 15 identities, possessing more than 15 identities, and aggravated identity theft.
Jackson’s aunt, who testified against her at the trial, was an employee at the Hillcrest Care Center and had access to all of the patient files. According to the testimony at trial, Jackson approached her aunt and asked for personal identifying information of patients. Jackson’s aunt copied or wrote down personal identifying information and provided it to Jackson on three separate occasions. Jackson then used that information to help others file false tax returns in the names of the patients and keep the refunds for themselves. When law enforcement executed a search warrant on Jackson’s residence, officers seized approximately 56 Hillcrest medical records, along with almost 70 other identity profiles, which included names, social security numbers, and dates of birth of individuals other than Jackson. Law enforcement also seized over 50 prepaid debit cards in names of people other than Jackson.
“This identity theft scheme targeted vulnerable victims,” said United States Attorney Eileen M. Decker. “The victims included elderly patients at a convalescent home and a 28-year-old woman with a traumatic brain injury who has lived in a 24-hour nursing facility since she was 16.”
After Jackson’s conviction yesterday, United States District Judge Manuel L. Real scheduled a sentencing hearing for March 7. At that time, Jackson will face a mandatory minimum sentence of two years in federal prison and a statutory maximum sentence of 17 years.
In an unrelated case, Jackson pled guilty last year to conspiring to commit credit card fraud in the United States District Court in Riverside and faces up to five years when she is sentenced in that case on March 28.
The Los Angeles case was investigated by the United States Secret Service, and the Riverside case was investigated by the United States Postal Inspection Service.
Project Safe Childhood Initiative to Visit Smith Vocational Agricultural High SchoolRead the Press Release
BOSTON – On Thursday, January 21, 2016, the U.S. Attorney’s Office will host a presentation on Internet safety for students, parents, and members of surrounding communities at Smith Vocational Agricultural High School.
The presentation, entitled “Keeping Kids Safe and Secure Online: A Project Safe Childhood Presentation for Parents,” will include a variety of Internet safety topics including: Social Media 101; digital footprint; gaming; cyberbullying; sexting; sextortion; Internet predators; and being safe and secure online. Presenters include members of the U.S. Attorney’s Office as well as an agent from the Department of Homeland Security.
The event will be held in the Smith Vocational cafeteria located at 80 Locust Street in Northampton at 6:30 p.m. Parents and students from Northampton and surrounding communities are welcome to attend.
In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorney’s Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/
Preston County, WV man sentenced to 15 years in prison for production of child pornographyRead the Press Release
WHEELING, WEST VIRGINIA – Robert J. Gongloff, 26, of Terra Alta, West Virginia, was sentenced today to 180 months in prison after he admitted to producing child pornography, United States Attorney William J. Ihlenfeld, II, announced.
Gongloff, originally from Preston County and now a resident of Weirton, West Virginia, pled guilty in August 2015 to one count of “Production of Child Pornography.” By pleading guilty, Gongloff admitted that he had produced numerous images and videos depicting nude minors and minors engaged in sexually explicit conduct.
Authorities further discovered that Gongloff misrepresented his name and age on a website known as MeetMe.com, claiming to be 17 years old and using the name “Johnny Williamson,” in order to transmit sexually explicit photographs to multiple minor females.
"This conviction and sentence should serve as a stern warning about the consequences awaiting individuals who prey on the most vulnerable members of our communities - our children," said John Kelleghan, Special Agent in Charge of Homeland Security Investigations’ Philadelphia Field Office. "Protecting our children from predators remains an HSI priority, and we will continue to work closely with our law enforcement partners to identify, arrest and bring these predators to justice."
Assistant U.S. Attorney Stephen Vogrin prosecuted the case on behalf of the government. U.S. Immigration and Customs Enforcement's Homeland Security Investigations led the investigation with assistance from the West Virginia State Police
U.S. District Judge John Preston Bailey presided.
Portland Man Pleads Guilty to Bank Robbery ChargeRead the Press Release
Contact: James W. Chapman, Jr.
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Jimmy Odong, 25, of Portland, pled guilty yesterday in U.S. District Court to bank robbery. The charge arises out of the July 17, 2015 robbery of Key Bank in Freeport, Maine.
According to court documents, on July 17, 2015, at about 2:30 p.m., Odong stole a vehicle and cell phone from a woman in Portland. At about 3:00 p.m., he entered the Key Bank branch wearing a wig and sun glasses, pointed what appeared to be a gun at tellers and demanded cash. After tellers complied, Odong absconded with about $11,700. He drove from scene of the robbery in the stolen vehicle. Police recovered it and a forensic examination revealed the defendant’s partial palm print on the outside of the vehicle. On July 23, 2015, the defendant was arrested and found to be carrying about $1,180 in cash and the carjacking victim’s cell phone.
The defendant faces up to 20 years in jail and a $250,000 fine. He will be sentenced after completion of a presentence investigation report prepared by the U.S. Probation Office.
The investigation was conducted by Federal Bureau of Investigation (“FBI”); the Freeport, Portland and Brunswick Police Departments; the Maine State Police; and the Southern Maine Gang Task Force comprised of agents and officers from the FBI; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the U.S. Drug Enforcement Administration; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; and the Portland, South Portland, Lewiston and Biddeford Police Departments. U.S. Attorney Delahanty praised the cooperation among these law enforcement agencies noting that “this bank robbery was quickly solved because local, state, and federal law enforcement agencies worked closely together.”
Palm Beach County Resident Sentenced to Prison Following Wire Fraud and Criminal Contempt ConvictionsRead the Press Release
A Palm Beach County man was sentenced yesterday to 27 months in federal prison, following his wire fraud and criminal contempt convictions.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Danny Banks, Special Agent in Charge, Florida Department of Law Enforcement (FDLE), made the announcement.
David Lee Ortiz, 39, of Palm Beach County, was sentenced by United States District Judge Robin L. Rosenberg in Fort Pierce, following his prior plea of guilty to telemarketing wire fraud, in violation of Title 18, United States Code, Section 1343 and contempt of court, in violation of Title 18, United States Code, Section 401(3).
According to statements made in court and documents filed in the case, Ortiz committed online and telemarketing fraud in the form of fraudulent foreign exchange (forex) investment scams, via the internet and email, among other means. Ortiz collected from his victims approximately $420,000 through fraudulent websites and advertisements offering returns of 10% per month on forex contracts and currency trades. Ortiz represented that investor funds would be kept in individual investor accounts for his clients, but they were in fact aggregated and commingled. The defendant invested some of the money with losing forex positions at two licensed Futures Commission Merchants. The remainder of the money Ortiz diverted for his own personal use.
To attract investors, Ortiz established internet websites. In July 2008, Ortiz set up “forexisgreatfor.me,” on which he falsely claimed to have over thirty years in forex trading experience, as well as that he was registered with the Securities and Exchange Commission. In October 2009, Ortiz also established the website “forexfuturestrader.com,” again falsely claiming to provide daily updates accessible online for individualized investor accounts, as well as promising 100% returns within 12 months.
Ortiz misappropriated at least $232,000 by, for example, using the funds for personal shopping at retail department stores, travel, resort hotels, restaurants, utility bills, personal credit cards and car payments, and by sending, or having some customers send their funds directly, to Ortiz’s wife and her business, who also did not use those funds for forex trading. Between 2008-2011, Ortiz solicited and accepted investments from clients, placed the monies in accounts he personally controlled, invested some of it in losing forex trades, and used the remainder for personal purchases. Ortiz created false account statements, purporting to show the clients that they were making profits on imaginary forex contracts placed for them by Ortiz. When customers tried to recover all or part of their monies, usually in accordance with withdrawal provisions of a written contract which Ortiz had them sign, they regularly met evasion or delay from Ortiz.
The Commodity Futures Trading Commission (CFTC) investigated Ortiz, and filed a civil enforcement action against him in the Southern District of Florida in February 2011. The CFTC sought Court orders directing rescission of the investment contracts and return to the investors of all their monies. Chief United States District Judge K. Michael Moore signed a permanent injunction against Ortiz on June 30, 2011, directing Ortiz to return the investors’ money and rescind all the investment contracts. The injunction also forbade Ortiz from soliciting or accepting funds from any future investors.
During July and August 2011, Ortiz nonetheless continued to solicit and accept funds from investors. In particular, he met with and took $2,800 from a retired Air Force employee living in Odessa, Texas. Twice in September 2011, Ortiz emailed the investor false account statements purporting to show gains and profits from forex trades. The CFTC filed a motion for civil contempt against Ortiz for his failure to abide by the permanent injunction. On June 4, 2012, Chief Judge Moore held an evidentiary hearing on the civil contempt motion, at which Ortiz appeared pro se. Following the hearing, the CFTC filed a joint proposed agreed order (which the Court approved and entered on June 6, 2012) setting forth a timetable for Ortiz to submit a sworn accounting and repayment of monies, no later than August 6, 2012. On August 6, 2012, Ortiz filed a document with the Court, stating that he had received the $2,800 from the Texas investor, but that Ortiz was unable to comply and pay any monies to the aggrieved investors.
Mr. Ferrer commended the investigative efforts of the CFTC, FDLE, FBI, and the Palm Beach County Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorney Theodore Cooperstein.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Owner of Rhode Island Electronics Parts Company That Defrauded Customers is SentencedRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JEFFREY WARGA, 62, of North Kingstown, R.I., was sentenced today by U.S. District Judge Michael P. Shea in Hartford to three years of probation and was ordered to pay a $10,000 fine for supplying customers with falsely remarked microprocessor chips, many of which were used in U.S. Military and commercial helicopters.
According to court documents and statements made in court, Jeffrey Krantz was the CEO and an owner of Harry Krantz, LLC, a New York-based company that bought and sold, among other things, obsolete electronic parts for use by the U.S. Military and commercial buyers. In 2005, Krantz entered into a business relationship with WARGA, the president and owner of Rhode Island-based Bay Components, LLC, to sell military microprocessor chips to Bay Components, which would in turn sell them to a Connecticut company. Krantz and WARGA knew that the Connecticut company wanted new and original chips, not falsely remarked chips.
Between 2005 and 2008, Krantz purchased and sold, and caused to be purchased and sold, more than 1,000 chips to Bay Components, which, in turn sold them to the Connecticut company. The chips were marked with certain information, including a certain manufacturer’s name and trademark, a date code, and a military part number. In approximately December 2005, the first shipments of about 330 chips that Krantz had sold to Bay Components were rejected by the Connecticut company for being the wrong part because the chip contained the wrong die inside. In 2006, Krantz replaced those chips with at least some of the replacement chips bearing the date code 9832. Between 2006 and 2008, Krantz sold and caused to be sold at least 900 chips with date code 9832 to Bay Components, the majority of which were sold to the Connecticut company. The co-conspirators knew that the chips originated from a parts supplier in China, and there was a high probability that they were falsely remarked not the original chips of the certain manufacturer as represented by the markings on the chip.
The investigation revealed that many of the chips were used in the assembly of U.S. Military and commercial helicopters. The chips have been examined and determined not to be the root cause of any mechanical problems experienced by the helicopters to date.
On December 12, 2014, WARGA pleaded guilty to one count of conspiracy to commit wire a fraud.
On July 28, 2015, Krantz pleaded guilty to one count of wire fraud. On December 10, 2015, he was sentenced to three years of probation and was ordered to pay a $100,000 fine.
A restitution hearing in this matter is scheduled for March 4, 2016.
This ongoing investigation is being conducted by the Defense Criminal Investigative Service, the U.S. Department of Transportation, Office of Inspector General, and the U.S. Army CID, Major Procurement Fraud Unit. The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Office Manager Pleads Guilty to Stealing More Than $580,000 from Birmingham Surgical PracticeRead the Press Release
BIRMINGHAM -- The office manager of a Birmingham surgical practice pleaded guilty Tuesday to charges that she stole at least $580,000 from her employer, announced U.S. Attorney Joyce White Vance, FBI Special Agent in Charge Roger C. Stanton and Internal Revenue Service and Internal Revenue Service, Criminal Investigation, Special Agent in Charge Veronica Hyman-Pillot.
ANNTWINE MOSS, 49, of Bessemer, entered her plea before U.S. District Judge Karon O. Bowdre to five counts of wire fraud and four counts of tax evasion for stealing from Thoracic and Cardiovascular Surgery of Alabama between 2006 and 2013. Sentencing is scheduled June 9.
According to the indictment and Moss’ plea agreement with the government, she executed a scheme to defraud the surgical practice by using her authority as office manager to write unauthorized checks to herself, make unauthorized direct deposits into her account, and use the company's credit cards for unauthorized personal purchases. As office manager, Moss had authority over several key functions including payroll, accounting, bookkeeping and managing the office's budget. She falsified her personal tax returns for several years by failing to report to the IRS the illicit income she stole from TCVSA.
The maximum penalty for each wire fraud count is 20 years in prison and a fine of $250,000, while the tax evasion count carries a maximum penalty of 20 years in prison and a $100,000 fine.
The FBI and IRS investigated the case, which Assistant U.S. Attorney Xavier O. Carter Sr. is prosecuting.
New Orleans Woman Sentenced for Heroin ConspiracyRead the Press Release
U.S. Attorney Kenneth A. Polite announced that BETH MARIE NGUYEN, age 38, of New Orleans, was sentenced today after having previously pled guilty to one count of conspiring to distribute and to possess with intent to distribute one kilogram or more of heroin.
U.S. District Judge Carl J. Barbier sentenced NGUYEN to 36 months of incarceration, to be followed by 3 years of supervised release.
NGUYEN was one of twelve defendants charged in a 23-count indictment on July 25, 2014. According to court documents, this indictment sprung from an investigation into a heroin-trafficking organization operating in New Orleans East. This organization was responsible for distributing at least 15 kilograms of heroin in the New Orleans area. As part of the arrests in this case, federal agents have seized from the twelve defendants approximately $1,200,000 in assets (a combination of vehicles, currency, jewelry, and real property) as proceeds made from the sale of heroin.
U.S. Attorney Polite praised the work of the Drug Enforcement Administration in investigating this matter. Assistant United States Attorney Brandon S. Long was in charge of the prosecution.
New Orleans Man Pleads Guilty for Failure to Register as a Convicted Sex OffenderRead the Press Release
U.S. Attorney Kenneth A. Polite announced that BENIAIH LEWIS, age 26, a resident of New Orleans, pled guilty today to failure to register as a sex offender in violation of the Sex Offender Registration and Notification Act.
According to court records, LEWIS was convicted of Possession of Child Pornography in violation of California Penal Code Section 311.11(a) on October 3, 2012, and, because of his conviction, LEWIS was required to register as a sex offender for life pursuant to the Sex Offender Registration and Notification Act. LEWIS completed his last known sex offender registration form with the Fresno Police Department in California in 2013. At some time after August 2013, LEWIS moved from California to Louisiana and failed to notify law enforcement authorities of his move to Louisiana. On July 29, 2015, LEWIS was arrested at his residence by special agents with the U.S. Department of Homeland Security, Homeland Security Investigations and the U.S. Marshals Service. LEWIS has been in federal custody since his arrest.
If convicted of the failure to register charge, LEWIS faces a maximum term of imprisonment of ten years, a fine of $250,000 and up to five years of supervised release. U.S. District Judge Eldon Fallon will sentence LEWIS on April 28, 2016.
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.
U.S. Attorney Polite praised the work of the U. S. Department of Homeland Security-HSI, the U.S. Marshals Service, and the Fresno California Police Department in investigating this matter. Project Safe Childhood Coordinator and Fraud Unit Chief, Assistant U. S. Attorney Brian M. Klebba is in charge of the prosecution.
Navajo Man Pleads Guilty to Federal Assault ChargesRead the Press Release
ALBUQUERQUE – Gregory Secatero, 32, an enrolled member of the Navajo Nation who resides in Albuquerque, N.M., pleaded guilty this morning in federal court to assault charges under a plea agreement with the U.S. Attorney’s Office.
Secatero was arrested on Feb. 12, 2015, on a criminal complaint charging him with assault resulting in serious bodily injury and child abuse in Indian Country. Court documents indicate that on Jan. 17, 2015, Secatero was involved in a car crash that seriously injured two passengers, a female and a child, in Secatero’s vehicle. Both victims were ejected from the vehicle; the female suffered a punctured left lung and seven left rib fractures and the child suffered a small subdural hematoma and left femur spiral fracture. Two other children were in the vehicle, but were not seriously injured. Secatero was intoxicated at the time of the crash.
Secatero was subsequently indicted on March 10, 2015, and charged with two counts of assault resulting in serious bodily injury and one count of child abuse for endangering the lives of three children. According to the indictment, Secatero committed the crimes in Indian Country in Bernalillo County, N.M.
During today’s proceedings, Secatero pled guilty to two counts of assault resulting in serious bodily injury. In entering his guilty plea, Secatero admitted assaulting the victims, causing them to sustain serious bodily injuries, by driving under the influence of alcohol.
At sentencing, Secatero faces a maximum sentence of ten years in federal prison followed by up to three years of supervised release. A sentencing hearing has yet to be scheduled.
This case was investigated by the Crownpoint office of the Navajo Nation Division of Public Safety and is being prosecuted by Assistant U.S. Attorney Shammara Henderson.
Moscow Man Pleads Guilty to Interstate Communication of ThreatsRead the Press Release
COEUR D'ALENE - Paul Jens Suggs, 19, of Moscow, Idaho, pleaded guilty yesterday to interstate communication of threats, U.S. Attorney Wendy J. Olson announced. Suggs was indicted by a federal grand jury in Coeur d'Alene on December 15, 2015.
According to the plea agreement, Suggs admitted that in September 2015, he made several posts on Facebook threatening to shoot a man in Moscow and to shoot law enforcement officers in Moscow and Pullman, Washington. Additionally Suggs posted that he was going to kill the family members of the officers.
The charge of interstate communications of threats is punishable by up to five years in prison, a maximum fine of $250,000.00, and up to three years of supervised release.
Sentencing is set for April 5, 2016, before U.S. District Judge Candy W. Dale at the federal courthouse in Coeur d'Alene.
The case was investigated by the Pullman Police Department, Moscow Police Department and the Federal Bureau of Investigation (FBI).
More Than 50 Individuals Charged in Massive Corruption, Fraud and Money Laundering Schemes Operated from inside Georgia State PrisonsRead the Press Release
ATLANTA – Numerous Georgia Department of Corrections employees, inmates and individuals outside the prison system have been charged federally with conspiring to commit wire fraud, conspiring to commit money laundering, and accepting bribes to smuggle contraband into Georgia prisons. Much of the alleged criminal activity was committed inside Georgia state prisons and was initiated by inmates.
“The indictments allege that inmates managed and directed a number of elaborate fraud schemes that victimized citizens from across the country from within the Georgia prison system using contraband cell phones,” said U.S. Attorney John A. Horn. “Since September 2015, we have charged 75 people with criminal conduct that is initiated from within state prisons. The unfortunate common denominator to this criminal conduct is the pervasive availability of contraband cell phones, which allows too many prison inmates to continue victimizing our communities while serving their sentences.”
“Prisons should be a deterrent for individuals on both sides of its walls. Acquiring cell phones and smart phones have, however, emboldened current and former inmates and their associates to engage in criminal conduct with a perceived impunity from law enforcement officials. In many of these cases, the corrections officers themselves facilitated the introduction of the prohibited cell phones into the prisons, thereby allowing these criminal enterprises to continue and even expand. The FBI will continue to pursue investigations involving public corruption as seen here and will continue to work with its Georgia Department of Corrections partners in addressing these and other problems posed by the illegal introduction of cell phones within the confines of prison walls,” said J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office.
According to U.S. Attorney Horn, the indictment, and other information presented in court: The Georgia Department of Corrections (“GA DOC”) is the agency responsible for overseeing the operations of the Georgia state prison system and its more than 50,000 inmates. Jimmy Autry State Prison (“Autry”) is a GA DOC prison located in Pelham, Georgia. Autry is a medium security prison that houses approximately 1,700 adult male inmates.
Under the Official Code of Georgia § 42-5-18, it is unlawful to give an incarcerated GA DOC inmate a cellular telephone and it is unlawful for a GA DOC inmate to possess a cellular telephone while incarcerated. Accordingly, within the GA DOC prison system, cellular telephones are considered to be contraband.
Nevertheless, GA DOC inmates regularly obtained cellular telephones while incarcerated. For example, from 2014 to 2015, GA DOC officials seized more than 23,500 cellular telephones from inside Georgia state prisons. Many of the seized cellular telephones possessed Internet capabilities and the latest smartphone features. Frequently, the seized cellular telephones were smuggled into GA DOC prisons by correctional officers or other prison employees. The possession of cellular telephones by GA DOC inmates creates a significant risk to prison security and to public safety, as GA DOC inmates used contraband cellular telephones to commit various criminal acts while incarcerated. The indictments also allege that correctional officers smuggled other contraband into Autry, such as tobacco products and drugs in exchange for bribes.
Inmates allegedly used contraband cellular telephones from inside Autry to access Internet websites to identify the names, addresses, and telephone numbers of potential fraud victims. Using the cellular telephones, inmates called the victims whose names and numbers had been obtained. During these calls, the inmates made certain false representations to the victims, including: (a) that the inmates were law enforcement officials; (b) that the potential victims had unlawfully failed to appear for jury duty; (c) that because the potential victims had failed to appear for jury duty, warrants had been issued for the victims’ arrest; and (d) that the potential victims had a choice of being arrested on the warrants or pay fines to have the arrest warrants dismissed. To make the calls seem real, the inmates created fictitious voicemail greetings on their contraband cellular telephones, identifying themselves as members of legitimate law enforcement agencies.
For those victims who wanted to pay a fine, the inmates instructed them to purchase pre-paid cash cards and provide the account number of the cash card or wire money directly into a pre-paid debit card account held by the inmates. Based on these false representations, the victims electronically transferred money to the inmates because they believed that the funds would be used to pay the fine for failing to appear for jury duty and would result in the dismissal of the arrest warrant.
After a victim provided an inmate with the account number of the pre-paid cash card, the inmates then used their contraband cellular telephones to contact co-conspirators, who were not incarcerated, to have those individuals transfer the money from the cash card purchased by the victims to a pre-paid debit card possessed by the co-conspirators. Next, the co-conspirators withdrew the victim’s money, which had been transferred to the pre-paid debit card they controlled, via an automated teller machine or at a retail store. Typically, the co-conspirators then laundered the stolen money by purchasing a new cash card so that the victims’ funds could be transferred back to the inmates.
In connection with these schemes, a federal grand jury has returned multiple indictments charging the following individuals:
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Shalonda Baker, 33, of Bainbridge, Georgia, formerly a Correctional Officer at Autry State Prison, has been charged with conspiring to accept bribe payments to smuggle contraband into the prison.
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Leanna Bearden, 25, of Cairo, Georgia, has been charged with conspiring to commit money laundering.
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Iesha Bell, 25, of Waco, Texas, has been charged with conspiring to commit money laundering.
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Austin Bradley, a/k/a “Red,” 22, formerly an inmate at Autry State Prison, has been charged with conspiring to commit wire fraud and money laundering.
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Ashley Butler, 28, of Macon, Georgia, has been charged with conspiring to commit money laundering.
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Karhary Campbell, 37, formerly an inmate at Autry State Prison, has been charged with conspiring to commit wire fraud, to commit money laundering, and to bribe correctional officers to smuggle contraband into the prison.
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Toccara Cantrell, 30, of Gainesville, Georgia, has been charged with conspiring to commit money laundering.
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Cellie Clark, 35, of Lynchburg, Virginia, has been charged with conspiring to commit money laundering, and money laundering.
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Jokelera Copeland, 28, of Doerun, Georgia, a Correctional Officer at Autry State Prison, has been charged with conspiring to accept bribe payments to smuggle contraband into the prison.
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Jonathan Jamaal Daniels, 22, of Camilla, Georgia, formerly a Correctional Officer at Autry State Prison, has been charged with accepting bribe payments to smuggle contraband into the prison.
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Willa Davis, 60, of Las Vegas, Nevada, has been charged with conspiring to commit money laundering.
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Tyler Dickens, 22, of Bainbridge, Georgia, formerly a Correctional Officer at Autry State Prison and formerly an Early County Sheriff’s Deputy, has been charged with conspiring to accept bribe payments to smuggle contraband into the prison.
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Renaldo Freeman, 30, of Pelham, Georgia, a Correctional Officer at Autry State Prison, has been charged with conspiring to accept bribe payments to smuggle contraband into the prison.
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Caeser Futch, 36, of Lithonia, Georgia, a paroled inmate from Autry and Phillips State Prisons, has been charged with conspiring to commit money laundering.
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Dayia Gilbert, 23, Camilla, Georgia, formerly a Correctional Officer at Autry State Prison, has been charged with conspiring to accept bribe payments to smuggle contraband into the prison.
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Keri Hatcher, 29, of Aurora, Colorado, has been charged with conspiring to commit money laundering.
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Chameta Isom, 32, of Camilla, Georgia, a Correctional Officer at Autry State Prison, has been charged with conspiring to accept bribe payments to smuggle contraband into the prison.
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Bettie Jones, 53, of Dawson, Georgia, has been charged with conspiring to bribe correctional officers at Autry State Prison to smuggle contraband into the prison.
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Brian Kennedy, 25, of Thomasville, Georgia, formerly a Correctional Officer at Autry State Prison, has been charged with accepting bribe payments to smuggle contraband into the prison.
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Laporshia Knight, 40, of Macon, Georgia, has been charged with conspiring to commit money laundering.
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Ricky Knight, a/k/a “Slick,” 36, formerly an inmate at Autry State Prison, has been charged with conspiring to commit wire fraud, to commit money laundering, and to bribe correctional officers to smuggle contraband into the prison.
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Melissa Lloyd, 35, of Lawrenceville, Georgia, has been charged with conspiring to commit money laundering.
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Jessee Lopez, a/k/a “Loco,” 37, formerly an inmate at Autry State Prison, has been charged with conspiring to commit wire fraud, to commit money laundering, and to bribe Correctional Officers to smuggle contraband into the prison.
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Calvin Martin, 21, of Albany, Georgia, formerly a Correctional Officer at Autry State Prison, has been charged with conspiring to accept bribe payments to smuggle contraband into the prison.
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Amber Mayes, 29, of Dublin, Georgia, has been charged with conspiring to commit money laundering.
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Sharron McCoy, a/k/a “Ron G,” 26, formerly an inmate at Autry State Prison, has been charged with conspiring to commit wire fraud, to commit money laundering, and to bribe correctional officers to smuggle contraband into the prison.
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Cassaundra McGhee, 45, of McDonough, Georgia, has been charged with conspiring to bribe correctional officers to smuggle contraband into the prison.
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Tadia Mercer, 41, of Leesburg, Georgia, formerly a Correctional Officer at Autry State Prison, has been charged with extortion under color of official right.
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Kiatya Milton, 42, of Sylvester, Georgia, formerly a Correctional Officer at Autry State Prison, has been charged with conspiring to commit wire fraud and money laundering.
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Tangela Parks, 33, of Lithonia, Georgia, has been charged with conspiring to commit money laundering.
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Steven Patterson, 29, formerly an inmate at Autry State Prison, has been charged with conspiring to commit wire fraud and money laundering.
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Reginald Perkins, 35, of Atlanta, Georgia, a paroled inmate from Autry State Prison, has been charged with conspiring to commit money laundering.
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David Pinder, a/k/a “Wolf,” 30, formerly an inmate at Autry State Prison, has been charged with conspiring to commit wire fraud and money laundering.
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Anthony Powell, a/k/a “Bo,” 39, formerly an inmate at Autry State Prison, has been charged with wire fraud, conspiring to commit money laundering, and money laundering.
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Aida Rosa, 27, of Virginia Beach, Virginia, has been charged with conspiring to commit money laundering.
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Anthony Sanders, a/k/a “Stick ‘em Up,” 25, formerly an inmate at Autry State Prison, has been charged with conspiring to commit wire fraud and money laundering.
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Terrance Shields, a/k/a “DK,” 41, formerly an inmate at Autry State Prison, has been charged with conspiring to commit wire fraud and money laundering.
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Clifford Smalls, a/k/a “D Boy,” 31, formerly an inmate at Autry State Prison, has been charged with wire fraud and money laundering.
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Shameik Spinks, 22, formerly an inmate at Autry State Prison, has been charged with conspiring to bribe correctional officers to smuggle contraband into the prison.
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Shebrikia Stewart, 28, of Albany, Georgia, formerly a Correctional Officer at Autry State Prison, has been charged with conspiring to accept bribe payments to smuggle contraband into the prison.
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Joseph Tate, Jr., a/k/a “Cool,” 34, formerly an inmate at Autry State Prison, has been charged with conspiring commit wire fraud and money laundering.
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Edward Townsend, 40, formerly an inmate at Autry State Prison, has been charged with conspiring to commit money laundering.
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Derrick Watson, 36, formerly an inmate at Autry State Prison, has been charged with conspiring to smuggle contraband into the prison.
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Veronica Watters, 38, Atlanta, was charged with conspiring to have contraband smuggled into the prison.
Douglas Welch, 34, of Cordele, Georgia, has been charged with conspiring to commit money laundering and conspiring to bribe correctional officers to smuggle contraband into the prison.
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Benjamin Williams, a/k/a “Ohio,” 24, formerly an inmate at Autry State Prison, has been charged with conspiring to commit wire fraud and money laundering.
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Quintavious Williams, 20, of Dawson, Georgia, has been charged with conspiring to bribe corrections officers to smuggle contraband into the prison.
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Shameka Williams, 31, of Albany, Georgia, a Correctional Officer at Autry State Prison, has been charged with accepting bribe payments in exchange for not reporting criminal acts of other Corrections Officers.
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Christina Wilson, 34, of Albany, Georgia, formerly a Correctional Officer at Autry State Prison, has been charged with conspiring to accept bribe payments to smuggle contraband into the prison.
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Ermesha Wingfield, 25, of Albany, Georgia, formerly a Correctional Officer at Autry State Prison, has been charged with conspiring to bribe Correctional Officers to smuggle contraband into the prison.
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Rokei Winston, a/k/a “Double R,” 32, formerly an inmate at Autry State Prison, has been charged with conspiring to commit wire fraud and money laundering.
In total, 15 current or former Autry correctional officers, 19 current or former GA DOC inmates, and 17 individuals have been charged by the grand jury in the fraud and bribery schemes.
Members of the public are reminded that the indictments only contains charges. The defendants are presumed innocent of the charges and it will be the government’s burden to prove the defendants’ guilt beyond a reasonable doubt at trial.
These cases are being investigated by the Federal Bureau of Investigation the Georgia Bureau of Investigation and the Georgia Department of Corrections Office of Professional Standards.
Assistant United States Attorneys Brent Gray, Shanya Dingle, John Ghose, Steven Grimberg, Nicolas Hartigan, Christopher Huber, Jennifer Keen, Brian Pearce, William Traynor, and Mary Webb are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
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Modesto Felon Faces Charges for Illegal Firearms PossessionRead the Press Release
FRESNO, Calif. — A federal grand jury returned an indictment today charging Reyes Lopez Magana, 37, of Modesto, with being a felon in possession of a firearm and ammunition, United States Attorney Benjamin B. Wagner announced.
According to the indictment, on July 27, 2015, Magana, a previously convicted felon, was in possession of a Jimenez Arms 9 millimeter handgun that was loaded with 9 millimeter ammunition.
This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Modesto Police Department. Assistant United States Attorney Daniel Griffin is prosecuting the case.
If convicted, Magana faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case was brought as part of Project Safe Neighborhoods (PSN), an initiative that brings together federal, state and local law enforcement to combat gun and gang crime. At the core of PSN is increased federal prosecution to incapacitate chronic violent offenders as well as to communicate a credible deterrent threat to potential gun offenders.
Middlesex County, New Jersey, Man Charged with Transporting More Than $200,000 Worth of Stolen Barnes & Noble MerchandiseRead the Press Release
NEWARK, N.J. – A Middlesex County, New Jersey, man will appear in federal court today to face charges that he used eBay to sell more than $200,000 worth of Barnes and Noble merchandise he shoplifted using a “booster bag,” U.S. Attorney Paul J. Fishman announced.
Dominick James Izzo, 49, of Piscataway, New Jersey, and Port Orange, Florida, is charged by criminal complaint with one count of transportation of stolen goods. He appeared this afternoon before U.S. Magistrate Judge Joseph A. Dickson in Newark federal court and was released on a $250,000 unsecured bond.
According to the complaint:
Izzo allegedly stole merchandise from Barnes & Noble stores in New Jersey, Florida and elsewhere using a “booster bag” to evade anti-theft alarms. He then listed the stolen merchandise on eBay using nominee seller accounts to conceal his identity. Izzo accepted payment for the stolen merchandise from purchasers via nominee PayPal accounts. Once Izzo received funds via domestic wire transfer from the purchasers, he shipped the stolen merchandise from New Jersey and Florida to the purchasers in several different states.
The transportation of stolen goods charge is punishable by a maximum potential penalty of 10 years in prison and a $250,000 fine.
U.S. Attorney Fishman credited postal inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates, and special agents of IRS–Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, with the investigation.
The government is represented by Assistant U.S. Attorney Lakshmi Srinivasan Herman of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
Defense Counsel: Patrick McMahon Esq., Assistant Federal Public Defender, Newark
Miami Resident Pleads Guilty in Stolen Identity Tax Fraud SchemeRead the Press Release
A Miami resident pled guilty for his participation in a stolen identity tax fraud scheme.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Delany De-Leon Colon, Inspector in Charge, United States Postal Inspection Service, Miami Division, made the announcement.
Ronel Junior Lamour, 25, pled guilty to one count of possession of fifteen or more counterfeit access devices, in violation of Title 18, United States Code, Section 1029(a)(3), and one count of aggravated identity theft, in violation of Title 18, United States Code, Sections 1028A(a)(1) and 2. At sentencing, Lamour faces a maximum statutory sentence of ten years in prison for the access device charge, and a mandatory term of two years’ imprisonment, consecutive to any other prison term, for the aggravated identity theft charge.
According to court documents, in 2013, Lamour used names, dates of birth and Social Security numbers of other people to file 2012 tax returns. As part of the scheme, Lamour set up bank accounts using unauthorized debit cards in the names of the filers and had the refunds wired into the accounts.
Court documents state that Lamour also fraudulently used debit card account numbers, issued to other persons, to purchase United States Postal Service (USPS) money orders. On two separate occasions, Lamour deposited these USPS money orders into a bank account.
Federal law enforcement conducted an electronic search of Lamour’s cell phone pursuant to a warrant. The phone contained copies of passports, driver’s licenses and Social Security cards of over fifty (50) individuals. This information was forwarded to the IRS Scheme Development Center and twenty-five (25) of those individuals were found to have had false 2012 tax returns filed in their names.
Mr. Ferrer commended the investigative efforts of IRS-CI and the USPIS. The case is being prosecuted by Assistant U.S. Joshua S. Rothstein.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Mexican Cartel Member Sentenced to Prison for Conspiracy Involving over 400 Kilograms of MethamphetamineRead the Press Release
ATLANTA - Israel Garcia-Villanueva has been sentenced to over 17 years in prison for his involvement in a conspiracy to traffic over 400 kilograms of methamphetamine. He received shipments of methamphetamine and coordinated its delivery in Atlanta, Georgia, and throughout the Southeast.
“The Mexican cartel that employed Garcia-Villanueva shipped massive amounts of methamphetamine into the Atlanta area from the Mexican border,” said U.S. Attorney John Horn. “Garcia-Villanueva was this cartel’s point of contact, coordinating drug shipments for distribution in this country. We are committed to disrupting these sophisticated drug organizations by seizing their shipments of narcotics and getting their members off the streets.”
Daniel R. Salter, the Special Agent in Charge of the DEA Atlanta Field Division said of the sentencing, “Mexican drug cartels are the source of so many dangerous drugs destined for our country and are responsible for much of the violence in Mexico today. This sentencing illustrates how DEA and its law enforcement counterparts will not allow these drug traffickers to wreak havoc on our society.”
According to U.S. Attorney Horn, the charges and other information presented in court: From at least April 2014 through the November 2014, Israel Garcia-Villanueva coordinated large shipments of methamphetamine into the Atlanta metro-area on behalf of a group affiliated with the Knights Templar drug cartel in Mexico. His co-conspirators sent methamphetamine from Mexico into the United States in a variety of ways, including hiding it in cars with sophisticated, hidden electronic traps, car batteries, diesel fuel tanks, and even statue molds. Garcia-Villanueva also coordinated delivery of the methamphetamine throughout the Southeast.
As part of his drug trafficking operations, Garcia-Villanueva used multiple residential homes as methamphetamine “stash houses,” including one house in the Lawrenceville, Georgia area. The houses were used to safeguard methamphetamine shipments, process the drugs for redistribution, and store drug proceeds. Garcia Villanueva was also tasked with sending drug proceeds back to Mexico and did so by sending cash with people who drove it over the U.S.-Mexico border and by wiring money to a number of individuals in Mexico. Although Garcia-Villanueva executed orders given by members of his organization in Mexico, he supervised and managed a crew in the United States that assisted him with his methamphetamine distribution operations.
Israel Garcia-Villanueva, 22, of Guerrero, Mexico, has been sentenced to 17 years, six months in prison to be followed by five years supervised release. Garcia-Villanueva was convicted on these charges on June 8, 2015, after he pleaded guilty.
This case was investigated by the Drug Enforcement Administration.
Assistant U.S. Attorney Kamal Ghali prosecuted the case.
The U.S. Attorney’s Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.com.
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.
Methamphetamine Dealer Sentenced to Federal PrisonRead the Press Release
BOISE – Clifford R. Crabtree, 32, of Caldwell, Idaho, was sentenced today in United States District Court to 46 months in prison for distributing methamphetamine, U.S. Attorney Wendy J. Olson announced. Senior U.S. District Judge Edward J. Lodge also ordered Crabtree to serve three years of supervised, during which he will be prohibited from associating with gang members.
According to court records and information presented in court, law enforcement officers received information that Crabtree, a documented Southside gang member, was engaged in the sale of methamphetamine. Officers utilized a confidential human source to purchase methamphetamine from Crabtree on two occasions. On June 24, 2014, the confidential human source traveled to a residence in Caldwell, Idaho to purchase methamphetamine from Crabtree. Crabtree introduced the confidential human source to co-defendant Efren Garcia Jr. who was sitting in a parked vehicle a short distance down the road. Garcia provided methamphetamine to the confidential human source and Crabtree was paid for facilitating the transaction at the direction of Garcia. The second controlled purchase occurred on August 5, 2014. During the transaction, Crabtree sold one-quarter ounce of methamphetamine to the confidential human source. Crabtree and Garcia were indicted by a federal grand jury on April 14, 2015. Crabtree pleaded guilty on November 12, 2015. Garcia pleaded guilty on October 29, 2015, and is currently awaiting sentencing.
This case was the result of an investigation by the Treasure Valley Metro Violent Crime Task Force. The Treasure Valley Metro Violent Crime Task Force is comprised of federal, state and local agencies, including the Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; Boise Police Department; Ada County Sheriff’s Office; Caldwell Police Department; Nampa Police Department; Meridian Police Department; Canyon County Sheriff’s Office; and Idaho Department of Probation and Parole.
These cases are being prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
Medical Reimbursement Systems, Inc. to Pay $500,000 to Resolve Allegations That It Submitted False Claims to Military Health InsurerRead the Press Release
ALBANY, NEW YORK: Medical Reimbursement Systems, Inc., a Massachusetts-based company that provides billing, coding, compliance and revenue cycle services to hospitals and physician practices, will pay $500,000 under the False Claims Act to resolve allegations that it submitted false claims to the TRICARE Program regarding a client’s eligibility to receive bonuses intended for providers who render care in qualifying Health Professional Shortage Areas (“HPSAs”), announced United States Attorney Richard S. Hartunian.
TRICARE is the uniformed health care program for active duty and retired service members, National Guard and Reserve members, family members, survivors and other eligible beneficiaries. HPSAs are geographic areas, population groups, or facilities that lack sufficient health care providers to meet the health care needs of the area or population. The federal government has implemented various reimbursement policies designed to encourage providers to treat beneficiaries in these underserved areas. Physicians who provide covered services in areas designated as geographic HPSAs are entitled to receive 10-percent bonus payments above the amount ordinarily reimbursed for Medicare-covered professional services. These “HPSA bonuses” are also available to providers who treat TRICARE beneficiaries in geographic areas that qualify for the bonus from Medicare. To obtain HPSA bonuses from TRICARE, billers must certify to the government that services were rendered in a qualifying HPSA.
In May 2009, Medical Reimbursement Systems, Inc. (“the Company”) entered into a billing services agreement with a physician group (“the Practice”) in Watertown, New York. Under that agreement, the Company agreed to provide coding, billing, physician education, and data entry services for the Practice. In exchange, the Company was paid a percentage of its net collections from the Practice.
Shortly after the Company and the Practice entered into that agreement, they began discussions about the Practice’s eligibility to receive HPSA bonuses from TRICARE. Despite the Company being informed that the Practice was not in a qualifying HPSA and therefore not entitled to the bonuses, the Company, at the Practice’s request, continued to certify to TRICARE that services were rendered in a qualifying HPSA. Significantly, according to the settlement agreement, a Company employee wrote the Company’s vice-president in 2009 to explain that they were billing TRICARE as if the Practice was in a “geographical area and they should not be.” The following week, that same employee reiterated that the Practice does not qualify for the HPSA bonus, and warned the Company’s vice president: “We need to stop billing this before we get in trouble.” The Company continued to bill TRICARE for HPSA bonuses on the Practice’s behalf through October 2014.
The Company, which accepted responsibility for the facts set forth in the settlement agreement, acknowledged that it was inappropriate under the circumstances for it to have sought HPSA bonuses from TRICARE for the Practice. It also agreed to hire an outside consultant to conduct TRICARE-specific billing training for its staff, and to appoint a new compliance officer with appropriate training or certification who will report directly to the Chief Executive Officer and whose responsibilities will include ensuring compliance with the statutes, regulations, and guidelines applicable to federal healthcare programs.
United States Attorney Hartunian said: “Healthcare providers rely on billing companies to assist them in processing claims in accordance with applicable statutes and regulations. While Medical Reimbursement Systems, Inc. should not have submitted claims for HPSA bonuses on its client’s behalf in these circumstances, I commend the Company and its management for accepting responsibility for this issue and for agreeing to implement forward-looking compliance measures to assure adequate systems are in place to facilitate and promote ethical and legal conduct.”
“This civil settlement demonstrates the continued commitment of the Defense Criminal Investigative Service (DCIS), partnering with the Defense Health Agency (DHA) and the United States Attorney’s Office for the Northern District of New York, to protect military members and their families and every other American taxpayer from those who seek to exploit our nation’s healthcare programs, including TRICARE,” said Craig W. Rupert, Special Agent in Charge, DCIS Northeast Field Office, United States Department of Defense Office of the Inspector General. “A company’s organized false and inappropriate billing, either through fraudulent schemes or willful ignorance, steals away hard-earned tax dollars, erodes public confidence, and undermines the mission of our military. We will continue to tirelessly pursue and investigate healthcare fraud allegations in order to shield America’s investment in national defense.”
Today’s settlement marks the fourteenth matter that this office, working in partnership with DCIS and DHA, has resolved since July 2015 involving improper claims for HPSA bonuses from TRICARE. Combined, these cases have returned $2,947,322.41 to TRICARE to continue to provide health care to members of our Nation’s armed services and their families. The United States was represented in each of these cases by Assistant United States Attorney Adam J. Katz.
Massachusetts Company Charged in Connection with Disadvantaged Business Enterprise FraudRead the Press Release
BOSTON – Transit Safety Management, Inc., a Georgetown, Mass. consulting company, was charged today with making a false statement in connection with its certification for favored contracting status.
Transit Safety Management, Inc. (TSM), was charged by an Information with one count of making a false statement to a state agency in order to maintain its status as a "disadvantaged business enterprise" (DBE).
In order to qualify as a DBE, a company’s management must be controlled by a socially or economically disadvantaged individual such as a woman or minority. The purpose of the program is to give an economic advantage to minorities and women who run their own companies. However, the manager of the DBE cannot also engage in employment that would prevent her from devoting sufficient attention to the affairs of the DBE. In this case investigators discovered that TSM’s purported owner was a full-time employee of a federal agency and the business was really operated by her husband making it ineligible for certification as a DBE.
TSM provided consulting services to the railroad industry, focusing on safety and operations management. Shortly after it was founded in 1999, TSM's owner certified the company as a "disadvantaged business enterprise" (DBE). As such, TSM was able to take advantage of federal regulations aimed at promoting the participation of minority and disadvantaged businesses in federally-funded public construction contracts. Under the DBE regulations, a contractor to transportation projects must either subcontract a percentage of its work to a DBE or show that it made a good faith effort to subcontract work to a DBE but was unable to do so. This requirement makes the DBE status a valuable and potentially lucrative designation.
In order to maintain its DBE certification, TSM had to make yearly affirmations that it was still eligible and that nothing had changed that would affect its eligibility for the favored DBE status. Despite this, TSM lied about whether it met the criteria for DBE status. According to court documents, TSM’s owner was hired as a full-time employee with a federal agency in 2005. As a full time federal employee, TSM’s purported manager could not control TSM under the regulations. Nevertheless, TSM failed to disclose this change and continued to make its yearly affirmations to maintain is DBE status.
As part of its plea agreement, TSM has agreed to pay a fine of $84,000 and dissolve its operations.
United States Attorney Carmen M. Ortiz; Todd Damiani, Special Agent in Charge of the U.S. Department of Transportation, Office of Inspector General, Office of Investigations; and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Eugenia M. Carris of Ortiz’s Public Corruption Unit.
The details contained in the Information are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Manhattan U.S. Attorney Announces $46.7 Million Settlement of Civil Fraud Claims Against Centerlight Healthcare for Enrollment of Ineligible Individuals in Medicaid Managed Long-Term Care PlanRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Scott J. Lampert, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General’s New York Region (“HHS-OIG”), announced today that the United States has settled civil fraud claims under the False Claims Act against CenterLight Healthcare, Inc., and CenterLight Health System, Inc. (collectively, “CenterLight”), for the enrollment of ineligible members in the CenterLight Healthcare managed long-term care plan (“CenterLight MLTCP”). CenterLight improperly billed the Medicaid program for 1,241 members who attended or were referred by social adult day care centers (“SADCCs”) and whose needs did not meet the criteria of the managed care plan. The settlement resolves claims that CenterLight engaged in improper marketing practices to enroll members through SADCCs and induced such members to use SADCCs as the members’ primary source of personal care services. CenterLight continued to seek and obtain monthly capitation payments for members well after the New York State Department of Health issued guidance in early 2013 explicitly stating that an individual’s attendance at SADCCs does not satisfy the MLTCP eligibility standard.
Under the terms of the settlement approved yesterday by United States District Judge Lewis A. Kaplan, CenterLight must pay a total of $46,751,086.74 to the Medicaid Program, $18,700,434.70 of which will go to the United States. In addition, CenterLight is required to:
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Comply with all contractual and regulatory requirements governing the enrollment, assessment, re-assessment, and dis-enrollment of CenterLight MLTCP members.
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Credential only SADCCs that are properly certified and capable of providing community-based personal care services consistent with regulatory requirements.
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Monitor SADCCs in its provider network to ensure that they furnish the community-based personal care services called for under CenterLight MLTCP member care plans and operate in compliance with applicable regulations.
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Prohibit marketing practices that are directed at enrolling CenterLight MLTCP members through SADCCs.
Manhattan U.S. Attorney Preet Bharara said: “CenterLight Healthcare improperly received millions of Medicaid dollars by enrolling ineligible members into its managed care plan. With this settlement, CenterLight now has admitted to its conduct and will pay over $46 million. We are committed to holding health care providers accountable if they wrongfully seek and receive federal funds, and we thank HHS’s Office of the Inspector General and the New York State Attorney General’s Office for their assistance.”
HHS-OIG Special Agent in Charge Scott J. Lampert said: “CenterLight’s conduct compromised the integrity of the Medicaid program by enrolling beneficiaries in a plan for which they were not eligible. HHS-OIG is committed to holding providers accountable for their practices, and the manner in which care is provided.”
Pursuant to the Medicaid managed long-term care program, health care providers, such as CenterLight, are responsible for arranging and managing long-term health care services offered to Medicaid beneficiaries. In exchange, providers receive a monthly capitation payment of approximately $3,800 for each beneficiary enrolled in the health care plan. MLTCPs offer a variety of services, including assistance with activities of daily living, care management services, skilled nursing services, physical therapy, occupational therapy, speech therapy, nursing home care, and preventive services. In order to qualify for enrollment in an MLTCP, Medicaid beneficiaries need to, among other things, be eligible for a nursing home level of care and require at least 120 days of community-based long-term care, which includes a wide range of health care services such as personal care services. CenterLight contracted with SADCCs to provide care, including personal care services, to CenterLight MLTCP members.
In the settlement agreement, CenterLight admits that 1,241 CenterLight MLTC members who had been referred by SADCCs or had used SADCC services were not eligible to be members of the managed care plan. Many of these ineligible members were not eligible at the time of their initial enrollment, while others were ineligible to remain in the managed care plan at the time of their re-assessment but were not dis-enrolled in a timely manner. Although the SADCCs were supposed to be providing care to CenterLight members, CenterLight admits that various SADCCs in its provider network did not provide services that qualified as personal care services under the terms of its Medicaid contract or were not legally permitted to provide such services.
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Mr. Bharara thanked HHS’s Office of the Inspector General for its assistance with the case. Mr. Bharara also thanked the Medicaid Fraud Control Unit of the New York State Attorney General’s Office for its investigative efforts and assistance.
The case is being handled by the Office’s Civil Frauds Unit. Assistant U.S. Attorney Jeffrey K. Powell is in charge of the case.
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Louisville Man Charged with Stealing United States Postal Service Parcels from Porches of Metro Louisville ResidencesRead the Press Release
LOUISVILLE, Ky. – A Louisville man was charged this week by federal grand jury indictment, with two counts of theft of United States Postal Service (USPS) parcels, which had been left for collection with other mail matter, on December 3, 2015, announced U.S. Attorney John E. Kuhn, Jr.
Joseph L. Carr, 48, is charged with stealing a Hot Wheels Airbrush Auto Designer Kit from mail left at a home on Larchmont Avenue in Louisville, and stealing a coat, blanket, and rug from mail at another home located on Larchmont Avenue.
According to an Affidavit attached to a Criminal Complaint, Carr was seen by construction workers carrying a package from a Larchmont Avenue home. The workers reported that the male (Carr) opened the package, removed the contents and placed the packaging in a trash can on the street. Carr was later stopped by Louisville Metro Police carrying a Kohl’s merchandise bag, and consented to a search. The Kohl’s merchandise included a black Warm-Tek coat (still in plastic wrapping and bearing a $100.00 price tag), a Sonoma Lifestyle throw blanket (still in plastic wrapping and bearing a $44.99 price tag, and an Estate rug (still in plastic wrapping and bearing a $34.99 price tag). CARR also had a Hot Wheels Airbrush Auto Designer kit (still in box). An opened USPS Priority Mail box was recovered from the garbage can and was addressed to Larchmont Ave in Louisville, KY.
A year prior to Carr’s arrest on these federal charges, Carr was arrested by LMPD for similar charges including multiple counts of mail theft and receiving stolen property which took place on December 4, 2014. According to those charges, several USPS customers had packages stolen from their residences. Several of the customers turned over surveillance videos from their homes showing a male, later identified as Carr, stealing packages. Carr was sentenced for those charges on December 14, 2015.
If convicted at trial, Carr could be sentenced to no more than five years in prison, fined $250,000 and be required to serve one year of supervised release. Carr is currently in the custody of the U.S. Marshals Service.
This case is being prosecuted by Assistant United States Attorney Daniel P. Kinnicutt and is being investigated by the United States Postal Inspection Service and the Metro Louisville Police Department.
The indictment of a person by a Grand Jury is an accusation only and that person is presumed innocent until and unless proven guilty.
Local Doctor and Pharmacist Arrested in Pill Mill InvestigationRead the Press Release
DALLAS — A local doctor and pharmacist were arrested yesterday morning on federal charges stemming from their respective roles in a conspiracy to distribute controlled substances illegally, including oxycodone and hydrocodone, in a pill mill operation, announced U.S. Attorney John Parker of the Northern District of Texas.
Special agents with the Drug Enforcement Administration arrested Dr. Richard Andrews, 63, of Dallas; Muhammad Faridi, 39, of Murphy, Texas; Adrian Banks, 22, of Dallas; and pharmacist Ndufola Kigham, 44, of Arlington, Texas. Each is charged in a just-unsealed second superseding indictment with one count of conspiracy to distribute a controlled substance.
Each made his initial appearance yesterday afternoon in federal court in Dallas. After agreeing to surrender their DEA registration numbers, Dr. Andrews and pharmacist Kigham were released on bond. Surrendering their registration numbers prevents Dr. Andrews from issuing prescriptions for controlled substances and pharmacist Kigham from dispensing controlled substances. Faridi and Banks were detained pending hearings set for tomorrow, Friday, January 22, at 1:00 p.m.
This indictment also charges Brandon Dunbar, 32, of Houston; Kumi Frimpong, 55, of Grand Prairie, Texas; and Lee Robertson, 31, presently in state custody in Louisiana; with the same offense. In addition, Banks, Dunbar and Robertson are also each charged with one count and Frimpong with two counts, of unlawful use of a communication facility.
Numerous other defendants were charged in the conspiracy in previous indictments. Five have pleaded guilty, and the remainder are set for trial on June 16, 2016.
According to the second superseding indictment, returned earlier this month by a grand jury in Dallas, Andrews is a doctor of osteopathy and co-owner and supervising physician of McAllen Medical Clinic, located on South Hampton in Dallas. Frimpong and Kigham are licensed pharmacists. Frimpong is the owner, operator, and pharmacist in charge of Cornerstone Pharmacy, located on Bolton Boone in Desoto, Texas. Kigham is the owner, operator, and pharmacist in charge of GenPharm Pharmacy, located on Wheatland Road in Desoto.
The indictment alleges that from approximately January 2013 through July 2014, Andrews, Banks, Dunbar, Faridi, Frimpong, Kigham, Robertson, and others previously charged in the indictment, conspired to possess with intent to distribute, distribute, and cause to be distributed, oxycodone, a Schedule II controlled substance, and hydrocodone, a Schedule III controlled substance, without a legitimate medical purpose and not in the usual course of professional practice.
As part of the conspiracy, individuals who were homeless, or of limited means, were recruited to pose as patients at certain medical clinics to obtain prescriptions for oxycodone and hydrocodone and fill those prescriptions at designated pharmacies. The recruits were typically paid a fee, such as $30. Recruiters would organize the recruits so that another individual would pick them up and transport them to and from the clinics. The drivers or the script ringleader would typically pay the recruiters a small fee, such as $15, for each person they recruited. Drivers or script ringleaders would coach recruits on what to say inside the clinic to obtain the specified prescription. Drivers or script ringleaders paid for the recruits’ clinic visits.
Further, the indictment alleges as part of the conspiracy, that specific clinics attempted to minimize the possibility of detection by law enforcement by limiting patients to recruits accompanied by known and trusted drivers, and the clinics attempted to maximize their profits by providing the prescriptions sought by the script ringleaders, such as 30mg oxycodone. The clinics provided the oxycodone prescriptions by hiring medical practitioners willing to write them even though the clinic owners, managers, and practitioners knew they were not issued for a legitimate medical purpose in the usual course of professional practice. To avoid detection by law enforcement, clinic owners and managers, script ringleaders, drivers, and recruits, concealed and assisted others in concealing the illicitly issued nature of the prescriptions, the quantities of controlled substances obtained and distributed and the amount of the drug proceeds.
The driver or script ringleader transported the recruits and prescriptions, or just the prescriptions, to designated pharmacies to be filled and paid for the prescriptions. Drivers would then deliver the controlled substances to the script ringleaders who distributed and dispensed, and possessed with intent to distribute and dispense, oxycodone and hydrocodone.
Dr. Andrews wrote and issued prescriptions for 30mg oxycodone pills without conducting medical exams, and for which he knew there was not legitimate medical purpose and outside the usual course of professional practice. Faridi ensured script ringleaders had access to McAllen and could obtain the prescriptions they sought. Faridi also filled out prescriptions for 30mg oxycodone pills and obtained Andrews’s signature on them.
The indictment also alleges that between January 2013 and July 2014:
Dr. Andrews and Faridi distributed and caused to be distributed at least 150,000 30mg oxycodone pills by issuing prescriptions knowing that the prescriptions had not been issued for a legitimate medical purpose by a medical practitioner acting in the usual course of professional practice;
Frimpong distributed and dispensed from Cornerstone Pharmacy at least 40,000 30mg oxycodone pills by filling prescriptions written by Dr. Andrews, knowing the prescriptions had not been issued for a legitimate medical purpose by a medical practitioner acting in the usual course of professional practice; and
Kigham distributed and dispensed from GenPharm Pharmacy at least 70,000 30mg oxycodone pills by filling prescriptions written by Dr. Andrews, knowing the prescriptions had not been issued for a legitimate medical purpose by a medical practitioner acting in the usual course of professional practice.
An indictment is an accusation by a grand jury. A defendant is entitled to the presumption of innocence unless proven guilty. If convicted, however, the statutory maximum penalty for the conspiracy offense is 20 years in federal prison and a $1 million fine. The statutory maximum penalty for each of the unlawful use of a communication facility counts is four years in federal prison and a $250,000 fine. The indictment also includes a forfeiture allegation that would require the defendants, upon conviction, to forfeit approximately $20,000 seized by the Drug Enforcement Administration.
The Drug Enforcement Administration is conducting the investigation. Assistant U.S. Attorney Mary Walters is in charge of the prosecution.
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Las Cruces Man Sentenced to Prison for Violating Federal Firearms LawsRead the Press Release
ALBUQUERQUE – Michael Paul Astorga, 30, of Las Cruces, N.M., was sentenced this morning in federal court to 41 months in prison followed by three years of supervised release for violating the federal firearms laws.
Astorga was arrested on Nov. 20, 2014, on an indictment charging him with being a felon in possession of firearms and ammunition on Aug. 31, 2012, in Doña Ana County, N.M. At the time, Astorga was prohibited from possessing firearms or ammunition because he previously had been convicted of robbery.
Astorga pled guilty to the indictment on Feb. 26, 2015, and admitted that on Aug. 31, 2012, he sold two firearms and ammunition to an undercover law enforcement agent and a person working with law enforcement. He also acknowledged that as a convicted felon, he was prohibited from possessing firearms or ammunition.
This case was investigated by the Las Cruces office of the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Maria Y. Armijo of the U.S. Attorney’s Las Cruces Branch Office prosecuted the case.
Landlord Sentenced to Probation with Home Detention for Fraud SchemeRead the Press Release
PITTSBURGH – A Pittsburgh resident was sentenced today in federal court to five years probation with six months home confinement, and restitution of $43,054, on his conviction of theft of government property, United States Attorney David J. Hickton announced today.
United States Chief District Court Judge Joy Flowers Conti imposed sentence upon Julio Rafael Antomachi, III, 28, of Pittsburgh, Pa.
According to information presented to the court, under the Department of Housing and Urban Development’s Section 8 Housing Choice Voucher Program, Antomachi fraudulently received federal housing subsidy monies as a purported landlord of the property located at on Friday Road, Pittsburgh, Pennsylvania. From February 2010 through February 2015, Antomachi wrongfully converted $43,054.00 in federal housing subsidy monies.
Assistant United States Attorney Mary McKeen Houghton prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the United States Department of Housing and Urban Development, Office of the Inspector General, for the investigation leading to the successful prosecution of Antomachi.
Kearney Psychiatrist Sentenced for Failure to Pay TaxesRead the Press Release
United States Attorney Deborah A. Gilg announced that a Kearney, Nebraska, psychiatrist was sentenced Wednesday, January 20, 2016, to serve five years of probation for failing to pay over more than $131,000 in federal payroll taxes. In addition, Dr. Reynaldo De Los Angeles, age 70, was ordered to provide free psychiatric services to residents of Buffalo County for one day per month for the term of his probation. Senior United States District Judge Richard G. Kopf sentenced Dr. De Los Angeles in Lincoln, Nebraska.
According to court documents, Dr. De Los Angeles was indicted in December 2014, and charged with nine counts of failure to pay over Social Security, Medicare and federal income taxes withheld from employees of his Kearney and Grand Island mental health clinics between 2008 and 2012. The indictment alleged Dr. De Los Angeles, as president of his company and the individual responsible for the corporate financial business affairs, withheld $131,775.28 from the employees’ paychecks but failed to pay the payroll taxes to the Internal Revenue Service as required. Dr. De Los Angeles pled guilty on October 22, 2015. Dr. De Los Angeles will be required to spend eight weekends in the Dawson County jail. Judge Kopf cited Dr. De Los Angeles’s age and health as partial reasons for sentencing him to probation.
Dr. De Los Angeles is also required to pay $131,775.28 in restitution to the Internal Revenue Service, provide access to his financial records to his probation officer to assess his ongoing ability to pay restitution and to monitor his lifestyle, and successfully complete a cognitive-behavioral based program to assist him continue to be a productive citizen.
“Business owners have a responsibility to withhold income taxes for their employees and remit those taxes to the Internal Revenue Service,” said Karl Stiften, Special Agent in Charge of IRS Criminal Investigation. “Employment tax fraud impacts employees, who may see future benefits such as Social Security or Medicare reduced or eliminated because their employers failed to comply with the law.”
This case was investigated by IRS Criminal Investigation.
KCK Man Pleads Guilty to Airport Bomb HoaxRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Kan., man pleaded guilty in federal court today to conveying false information as part of a bomb hoax at Kansas City International Airport in August 2014.
David James Cain, 35, of Kansas City, Kan., pleaded guilty before U.S. Chief District Judge Greg Kays to one count of conveying false information.
At approximately 5:30 p.m. on Aug. 31, 2014, Cain parked the truck he was driving in front of Terminal B at Kansas City International Airport. The truck remained parked along the curb in front of the terminal for approximately one hour. A KCI traffic control officer had the truck ticketed, and announcements were made over the loud speaker inside the terminal that the owner of truck needed to report or the truck would be towed.
After approximately one hour, Cain approached the Southwest Airlines ticket counter and told a ticket agent that there was a bomb in the truck. Cain repeated that there was a bomb in the truck, and then twice told the ticket agent’s supervisor the same thing. The customer service supervisor contacted law enforcement. The KCPD Bomb Squad and an FBI bomb technician searched the truck, and no bomb or explosive material was located.
As a result of Cain’s false statements, KCI evacuated and closed Terminal B for approximately two hours. Shutting down the terminal caused significant flight delays throughout the rest of the day.
If the terms of today’s plea agreement are accepted by the court at the sentencing hearing, Cain will be sentenced to 18 months in federal prison, followed by three years of supervised release. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Brian Casey. It was investigated by the FBI and the Missouri State Highway Patrol.
Jury Convicts Columbus Man of Illegally Gaining CitizenshipRead the Press Release
COLUMBUS, Ohio – A United States District Court jury convicted Maqsood Haroon, 41, of Columbus, Ohio, of unlawful procurement of citizenship or naturalization.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, and Marlon V. Miller, Special Agent in Charge, Homeland Security Investigations, announced the verdict reached today which was returned following a trial that began on Wednesday before U.S. District Judge Gregory L. Frost.
According to court testimony, Haroon traveled from Pakistan to America on a visitor’s visa before marrying a U.S. citizen. He then completed the naturalization process to become a United States Citizen.
Throughout that process, Haroon made false statements that he had no other wife or children, when in fact, he was previously married in Pakistan and had children.
"Committing fraud to obtain citizenship or any U.S. immigration benefit represents an egregious breach of the nation's legal system and is a blatant affront to those who play by the rules," said Miller. "HSI will continue to aggressively move against those engaged in such criminal acts."
Procurement of citizenship or naturalization unlawfully is a crime punishable by up to 15 years in prison.
U.S. Attorney Stewart commended the investigation by HSI and U.S. Citizenship and Immigration Services, as well as Assistant United States Attorneys David DeVillers and Jessica Kim, who prosecuted the case.
Jacksonville, Illinois Man Sentenced for Methamphetamine OffenseRead the Press Release
James L. Porter, Acting United States Attorney for the Southern District of Illinois, announced today that Kenneth A. Stephenson, age 43, of Jacksonville, Illinois was sentenced to 30 months imprisonment on January 20, 2016 for Possession with Intent to Distribute Methamphetamine.
Stephenson pled guilty to the federal charge on September 16, 2015. At his change of plea hearing, Stephenson admitted that he had possessed about 40 grams of methamphetamine in Venice, Illinois on February 16, 2015. The methamphetamine which Stephenson possessed has a street value of about $5,000.00. Stephenson admitted that he intended to sell the methamphetamine which police recovered from his car.
The investigation which resulted in Stephenson’s arrest and conviction was conducted by the Illinois State Police Metropolitan Enforcement Group of Southwestern Illinois and by the Venice, Illinois Police Department. The investigation was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF initiative is designed to bring federal, state, and local law enforcement agencies and resources together to identify, target and dismantle large national and international drug trafficking organizations.
The case was prosecuted by Assistant United States Attorney Robert L. Garrison.
Honduran National Sentenced for Illegal ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that CARLOS BINDEL, age 30, a citizen of Honduras, was sentenced today after previously pleading guilty to a one-count Bill of Information for illegal reentry of removed alien.
U.S. District Judge Eldon E. Fallon sentenced BINDEL to time served, and ordered him to serve one year of supervised release and to pay a $100 special assessment. BINDEL will be surrendered to the custody of the U.S. Immigration & Customs Enforcement for removal proceedings.
According to court documents, on or about October 20, 2015, BINDEL was found in the United States after having been officially deported and removed on or about February 21, 2008.
U.S. Attorney Polite praised the work of the United States Department of Homeland Security, Immigration Enforcement in investigating this matter. Assistant United States Attorney Irene González is in charge of the prosecution.
Harrisburg Man Convicted of Heroin TraffickingRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Daleo G. Powell, age 32, of Harrisburg, was convicted yesterday of possession with intent to distribute heroin after a two-day jury trial in Harrisburg before Senior U.S. District Court Judge William W. Caldwell.
According to United States Attorney Peter Smith, the jury returned with the verdict of guilty to the drug trafficking after approximately 3 hours of deliberation. The charges were the result of an initial investigation by Harrisburg Bureau of Police in December 2014 that resulted in Powell being found in possession of a loaded firearm and nine bundles of heroin on 15th Street in Harrisburg. The jury acquitted Powell of a related firearms charge. No sentencing date was set for Powell.
This case was investigated by the Federal Bureau of Investigation and the Harrisburg Bureau of Police. The case is being prosecuted by Assistant United States Attorney Meredith A. Taylor.
This case is part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the heroin initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is twenty years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Gwynn Oak Man Admits Conspiring to Commit Sex Trafficking of a ChildRead the Press Release
Baltimore, Maryland - Jonathan M. Went, a/k/a “Jon Maxx,” and “Max Out,” age 31, of Massachusetts and Gwynn Oak, Maryland, pleaded guilty today to conspiracy to commit sex trafficking of a child.
The guilty plea 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 James W. Johnson of the Baltimore County Police Department; Colonel William M. Pallozzi, Superintendent of the Maryland State Police; and Baltimore County State’s Attorney Scott Shellenberger.
According to Went’s guilty plea and other court documents, on March 5, 2014, co-defendant Rayvon O. Archibald encountered a girl under the age of 14 in New York City and provided her with alcohol and drugs. The next day, Archibald transported the girl by bus from New York to White Marsh, Maryland, then by taxi to Went’s apartment in Gwynn Oak. Before they left New York, Archibald called Went to let him know that he and another woman were with the girl and would arrive in Baltimore later that day. That same day, Archibald and Went posted an ad on a commercial sex website soliciting customers for the girl which listed the number for a phone used by Went. They also instructed the girl on pricing for commercial sex acts and provided her with a document that included prices. After the ad was posted, customers responded to the ad on that phone through at least midnight.
At approximately 10:30 p.m. on March 6, 2014, the girl used Went’s phone to secretly send a message to her mother advising that she was not able to leave. After receiving the message, the girl’s mother reported her daughter missing to the police. The next morning, the girl secretly left Went’s apartment and called 911 from Went’s phone. The police found the girl at a nearby intersection. The girl gave police the address of Went’s apartment and told police that there were two men and a woman inside the location. The girl reported that she was held against her will inside Went’s apartment building. The girl identified Archibald as her captor and stated that he had assaulted her.
Police went to the apartment and arrested Went, Archibald and a woman. A search warrant was executed and police seized electronic devices, including the phone the girl used to contact her mother and the device used to place the ad on the commercial sex website. Both the girl and the woman who was arrested independently told police that one customer who came to the apartment demanded his money back because the girl was too young. The woman and the girl gave the money back to the customer, and when they told Archibald what happened, he slapped them both.
Rayvon O. Archibald, a/k/a “P Money,” “Keyvon M. Malone,” “Keyvon Smith,” and “Scoobie,” age 25, of Boston, Massachusetts, previously pleaded guilty to sex trafficking of a child and faces up to life in prison. He is awaiting sentencing
Went faces up to life in prison for conspiracy to commit sex trafficking of a child. U.S. District Judge George L. Russell III has scheduled his sentencing for April 15, 2016, at 2:00 p.m. Went and Archibald remain detained.
The case was investigated by the FBI-led Maryland Child Exploitation Task Force (MCETF), created in 2010 to combat child prostitution, with members from10 state and federal law enforcement agencies. The Task Force coordinates with the National Center for Missing and Exploited Children and the Maryland State Police Child Recovery Unit to identify missing children being advertised online for prostitution.
MCETF partners with the Maryland Human Trafficking Task Force, formed in 2007 to discover and rescue victims of human trafficking while identifying and prosecuting offenders. Members include federal, state and local law enforcement, as well as victim service providers and local community members. For more information about the Maryland Human Trafficking Task Force, please visit http://www.justice.gov/usao/md/priorities_human.html.
United States Attorney Rod J. Rosenstein commended the FBI, Baltimore County Police Department, Maryland State Police and the Baltimore County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Zachary A. Myers and Sandra Wilkinson, who are prosecuting the case.
Guilty Plea in Heroin and Methamphetamine SeizureRead the Press Release
EUGENE, Ore. – Miguel Angel Reyna-Ramos, 37, pled guilty today in U. S. District Court to possession with intent to distribute 50 grams or more of a mixture and substance containing methamphetamine. The defendant is facing a maximum sentence of 40 years in prison and a mandatory minimum sentence of five years.
A stipulation filed with the court states that on May 29, 2015, an Oregon State Police (OSP) trooper stopped a car driven by Reyna near milepost 35 on Interstate Highway 5. Reyna did not possess a driver’s license but produced an expired Oregon ID Card which the trooper could not authenticate. The car Reyna was driving was not registered to him and Reyna declined consent to search the car, so the OSP trooper deployed a narcotics detection dog. The dog alerted to four pounds of heroin and nineteen pounds of methamphetamine in the luggage compartment of the vehicle. Reyna was arrested and the car was impounded.
The defendant remains in federal custody pending a sentencing hearing on May 5, 2016, before U. S. District Judge Michael McShane.
This case was investigated by the Oregon State Police and the DEA. Assistant U.S. Attorney William “Bud” Fitzgerald is prosecuting the case.
Granite Bay Man Sentenced for Defrauding Investors in a “Green” Cleaning Product CompanyRead the Press Release
SACRAMENTO, Calif. — Brent Lee Newbold, 58, of Granite Bay, was sentenced today to four years and three months in prison and ordered to pay more than $2.9 million in restitution for defrauding 13 individuals and a corporate investor, United States Attorney Benjamin B. Wagner announced.
Newbold was the chief executive officer of Holy Cow, a Rocklin-based business that produced a “green” cleaning product, marketed to stores such as Wal‑Mart, ACE Hardware, and Bed, Bath & Beyond. On September 3, 2015, he pleaded guilty to a scheme to defraud investors that ran from October 2007 to January 2010.
In sentencing, U.S. District Judge Morrison C. England Jr. noted that this was a classic “Ponzi scheme” in which Newbold regularly took money from investors and “used it to pay other investors, his wife, and his mortgage.” One victim who spoke at sentencing noted that Newbold was able to gain her trust, but in the end turned out to be “nothing more than a common thief.” Another victim who spoke at sentencing told the court that the financial hardships he suffered at Newbold’s hands played a role in ending his marriage.
“Brent Newbold lied not only to gain the trust of investors; he twisted the truth to use investor money for his personal expenses and conceal his scheme,” said FBI Special Agent in Charge Monica Miller of the Federal Bureau of Investigation's Sacramento field office. “Newbold's lies caused significant personal and financial hardship for his victims. Today's sentencing demonstrates to Newbold and would-be fraudsters that such lies have consequences. By working with partners such as IRS Criminal Investigation, the FBI continues its work to protect the investing public and uphold the integrity of the U.S. financial system.”
“Mr. Newbold raised money from investors through misrepresentations and false promises,” said Michael Batdorf, Special Agent in Charge, IRS Criminal Investigation. “Then, without authorization, he diverted investor funds to himself and others for his own personal benefit. This chain of events led the company into bankruptcy and to Mr. Newbold’s sentence today. Those who line their pockets with profits from these schemes should know they will not go undetected and will be held accountable for their actions.”
According to court documents, Newbold made a variety of misrepresentations to investors about the financial health of the company, including the company’s debt levels and how invested funds would be used. Based on Newbold’s claims, a corporate investor, Spence Enterprises, invested $2 million in Holy Cow.
Between July 2008 and January 2010, Newbold solicited 13 individual investors that were not disclosed to Spence Enterprises. Newbold falsely claimed that he was authorized to act on behalf of Holy Cow; that he owned Holy Cow; that he owned the majority of Holy Cow stock; and that Holy Cow was financially sound, stable and profitable. In some cases, Newbold provided his individual investors with false Holy Cow stock certificates, false Holy Cow purchase order reports, and corporate promissory notes.
In fact, Holy Cow bore a significant amount of debt, and Newbold continued to take additional debt related to Holy Cow. Newbold used investor funds for nonbusiness purposes, diverting it to himself and his wife, paying his mortgage, and paying previous investors. By December 2009, Spence Enterprises put Holy Cow into bankruptcy as a result of the unauthorized and undisclosed debt. The loss amount was over $2.9 million.
This case was the product of an investigation by the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation. Assistant United States Attorney Michael M. Beckwith prosecuted the case.
Grand Jury Indicts Herlong Prisoner for Assaulting Another PrisonerRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a one-count indictment today against Willie James McNeal, 59, a prisoner at the Federal Correctional Institution located in Herlong, California, United States Attorney Benjamin B. Wagner announced.
According to the indictment, McNeal assaulted another prisoner who suffered serious bodily injury as a result.
This case was the product of an investigation by the Federal Bureau of Investigation and Bureau of Prisons. Assistant United States Attorney Amanda Beck is prosecuting the case.
If convicted, McNeal faces a maximum statutory penalty of up to an additional 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Four charged with lying to unlawfully procure firearmsRead the Press Release
MARTINSBURG, WEST VIRGINIA – A federal grand jury returned indictments on Wednesday charging four individuals with lying to unlawfully obtain firearms, United States Attorney William J. Ihlenfeld, II, announced.
Curtessa Monet Franklin, 21, of Canton, Massachusetts, is alleged to have traveled to West Virginia and conspired with Deven Deloreece Johnson, 21, and Ashanta Renea Marshman, 22, both of Martinsburg, to provide false information in order to unlawfully purchase firearms. On at least two occasions in December 2015, the defendants allegedly attempted to purchase firearms in Berkeley County, West Virginia by falsely claiming that Johnson and Marshman were purchasing the firearms for themselves. In fact, they were attempting to purchase the firearms for Franklin.
Franklin, Johnson, and Marshman are charged with “Conspiracy to Provide a False Statement During the Attempted Purchase of a Firearm.” Franklin is also charged with two counts of “False Statement During the Attempted Purchase of a Firearm.” Johnson and Marshman are also charged with one count of “False Statement During the Attempted Purchase of a Firearm.” The defendants face up to 10 years in prison and a fine of up to $250,000 on each count. The ATF and West Virginia State Police investigated.In a separate matter, Christopher Lee Linn, 29, of Maryland, was indicted on one count of “False Statement in Acquisition of a Firearm,” one count of “Aggravated Identity Theft,” and two counts of “Felon in Possession of a Firearm.” Linn is alleged to have stolen the identity of another individual and used that information to unlawfully pawn and then re-acquire a firearm in Berkeley County. Linn was previously convicted of a felony in Allegany County, Maryland and therefore is prohibited from possessing firearms.
Linn faces up to 10 years in prison and a fine of up to $250,000 for each of the three firearms charges and an additional two years in prison for the aggravated identify theft charge. The matter was investigated by the ATF, the West Virginia State Police, and the Allegany County, Maryland Combined County Criminal Investigation Unit.
“The ATF Washington Field Division is dedicated to making the community safer by preventing criminals from illegally obtaining firearms,” said ATF Special Agent in Charge Michael Boxler. “These investigations, in conjunction with the West Virginia State Police, show our commitment to prosecuting those who seek to purchase firearms unlawfully or on behalf of prohibited persons in West Virginia."
U.S. Attorney Ihlenfeld met this week with prosecutors from Berkeley, Jefferson and Morgan County to encourage the continued collaboration between state and federal authorities in the investigation of firearms-related offenses.
Assistant U.S. Attorney Paul Camilletti is prosecuting Linn and Assistant U.S. Attorney Shawn Adkins is prosecuting Franklin, Johnson and Marshman on behalf of the government.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.Former prison employee sentenced for witness tamperingRead the Press Release
BECKLEY, W.Va. – Physician’s assistant and former prison employee Scotty Rose was sentenced today to two years in federal prison for witness tampering, announced Acting United States Attorney Carol Casto. A federal jury convicted Rose after a two day jury trial in May of 2015.
Rose, 42, of Beaver, worked in the Federal Correctional Institution in Beckley as a physician’s assistant. On February 6, 2013, Rose told a prisoner that another inmate was wearing a recording device and working for the FBI as an informant. The informant identified by Rose was, in fact, working with the FBI on a large scale methamphetamine trafficking investigation and wearing a recording device as part of that investigation. After Rose revealed the identity of the FBI informant, this news quickly spread throughout the correctional facility. As a result, the FBI informant was placed at great risk of retaliation by other prisoners. The informant was subsequently moved from the prison for his own safety, and the methamphetamine trafficking investigation was abruptly terminated. The FBI investigated the leak of the information and determined that Scotty Rose was the source of the leak.
The investigation was conducted by the FBI, assisted by investigators from the Federal Bureau of Prisons. Assistant United States Attorneys Erik S. Goes and Timothy D. Boggess were responsible for the prosecution. United States District Judge Irene C. Berger sentenced the defendant and presided over the trial.
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Former Waipahu Man Sentenced to 30 Years in Prison for Producing Child PornographyRead the Press Release
HONOLULU -- Derek West, 33, formerly of Waipahu, Hawaii, was sentenced yesterday to 30 years in prison for producing child pornography. West, who had previously pled guilty to the offense, must also serve a lifetime term of supervised release following his jail term.
Florence T. Nakakuni, United States Attorney for the District of Hawaii, said that according to a December 16, 2014 complaint, the case began with a report to the Honolulu Police Department (HPD) that child pornography had been found on West’s cellular telephone. HPD detectives obtained a search warrant for the telephone, and found approximately 482 images that depicted children engaged in sexually explicit conduct. HPD detectives then contacted the Federal Bureau of Investigation (FBI). FBI and Homeland Security Investigations (HSI) agents later determined that 52 of the images were of a two year- old girl, some of which showed her engaged in sexual acts with West. During court proceedings, West admitted taking those pictures and sharing them over the internet.
In imposing the maximum terms of imprisonment and supervised release, United States District Judge Derrick K. Watson noted that the damage done to the two year-old victim was "immeasurable and enduring." West has been in custody since his arrest on December 16, 2014.
The case was investigated by the FBI, HSI, and HPD. The prosecution was handled by Assistant U.S. Attorney Larry Tong.
Former Tribal Officer Sentenced to Federal Prison for Misdemeanor AssaultRead the Press Release
COEUR D'ALENE - Ramon L. Garcia, 31, of Plummer, Idaho, was sentenced yesterday in United States District Court to four months in prison for assault, U.S. Attorney Wendy J. Olson announced. Garcia pleaded guilty to the charge on October 20, 2015.
According to the plea agreement, Garcia admitted that he was heavily intoxicated when he pointed a firearm at a man at a party. Garcia was a Coeur d’Alene Tribal Police Officer and off duty at the time of the June 20, 2014 incident. The Coeur d’Alene Tribe released Garcia from employment after the incident. At sentencing Garcia took responsibility for his actions and told the court he would no longer use alcohol. Judge Dale noted that the maximum punishment for a misdemeanor assault was six months in custody and that Garcia had no prior criminal history. In sentencing Garcia to the Bureau of Prisons, Judge Dale told Garcia he had betrayed the public trust given to him. In addition to the prison sentence Garcia was ordered to surrender his Idaho POST accreditation and certification.
The case was investigated by Coeur d’Alene Tribal Police and Federal Bureau of Investigation (FBI).
Former Sailor Sentenced to Prison for Smuggling Heroin Aboard USS Bush That Led to OverdoseRead the Press Release
NORFOLK, Va. – Donald G. McManus, 22, of Wallingford, Connecticut, was sentenced today to 18 months in prison for distribution of heroin aboard the USS George H.W. Bush aircraft carrier that led to the overdose of an active duty sailor. McManus was also sentenced to three years of supervised release.
McManus pleaded guilty on Oct. 14, 2015. According to court documents, Donald McManus was an active duty sailor in the United States Navy assigned to the USS George H.W. Bush aircraft carrier in February 2015. While in a restricted status on-board the USS Bush, Donald McManus had his wife smuggle heroin and syringes aboard the aircraft carrier. The McManus couple sold heroin to another sailor who was later found unresponsive on the floor in the ship’s berthing area. The USS Bush’s medical personnel immediately responded and worked with emergency medical technicians in an attempt to save the sailor’s life. The overdose victim was without a detectable pulse until medical personnel were able to resuscitate the sailor.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Mark R. Herring, Attorney General of Virginia; and Timothy R. Quick, Special Agent in Charge of NCIS’s Norfolk Field Office, made the announcement after sentencing by U.S. District Judge Raymond A. Jackson.
This case was investigated by NCIS’s Norfolk Field Office, and was prosecuted by Special Assistant U.S. Attorneys Alyssa Nichol and John F. Butler, and Assistant U.S. Attorney Andrew C. Bosse.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:15-cr-109.
Former Pratt Mayor sentenced for selling oxycodoneRead the Press Release
CHARLESTON, W.Va. – The former mayor of Pratt was sentenced today to three years of probation for a federal drug crime, announced Acting United States Attorney Carol Casto. Gary Fields, 68, previously pleaded guilty to distribution of oxycodone in September of 2015.
Fields admitted that on April 23, 2015, he sold six 15 mg oxycodone pills to a confidential informant working with law enforcement. The drug deal took place at the defendant’s residence in Pratt.
The investigation was conducted by the Kanawha County Sheriff’s Department. Assistant United States Attorney Haley Bunn handled the prosecution. The sentence was imposed by United States District Judge Thomas E. Johnston.
This prosecution is part of an ongoing effort by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Former Pilot for Alaska Airlines Arrested on Federal Charges of Flying Passenger Aircraft while under the Influence of AlcoholRead the Press Release
LOS ANGELES – Federal authorities have arrested a former captain with Alaska Airlines on federal charges of piloting a plane with passengers while under the influence of alcohol.
David Hans Arntson, 60, a resident of Newport Beach, was arrested yesterday morning and was arraigned on the felony charge yesterday afternoon in federal court in Los Angeles.
Arntson was released on a $25,000 bond and was ordered to appear for an arraignment on February 10.
According to a criminal complaint filed Tuesday in United States District Court, Arntson was the pilot of two Alaska Airlines flights on June 20, 2014. The first flight was from San Diego International Airport to Portland, Oregon. He then flew a plane from Portland, Oregon, to John Wayne Airport in Orange County.
After landing at John Wayne Airport, Arntson was selected for random drug and alcohol testing by Alaska Airlines. A technician for Alaska Airlines performed two tests on Arntson and received results that the pilot had a blood alcohol concentration of 0.134 percent and 0.142 percent. After the technician informed Alaska Airlines of the test results, it removed Arntson from all safety-sensitive duties.
According to federal law, a person operating a “common carrier,” such as a commercial airliner, is presumed to be under the influence of alcohol when his or her blood alcohol content is 0.10 percent or higher.
Arntson’s co-pilot on the two flights on June 20 remembered seeing the drug tester when the plane landed at John Wayne Airport and recalled Arntson say “I bet it’s for me,” according to the complaint.
Following the June 20, 2014, incident, Arntson retired from Alaska Airlines.
“Those in command of passenger jets, or any other form of public transportation, have an obligation to serve the public in the safest and most responsible way possible,” said United States Attorney Eileen M. Decker. “We cannot and will not tolerate those who violate the trust of their passengers by endangering lives.”
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
The charge of operating a common carrier while under the influence of alcohol or drugs carries a statutory maximum penalty of 15 years in federal prison.
The investigation into Arntson was conducted by the United States Department of Transportation, Office of Inspector General.
Former Officer and Co-Defendant Sentenced in Conspiracy to Traffic CocaineRead the Press Release
McALLEN, Texas – A former Rio Grande City Police investigator and another man have been ordered to federal prison following their conviction of conspiracy to possess with intent to distribute cocaine, announced U.S. Attorney Kenneth Magidson along with Special Agent in Charge Shane M. Folden of Homeland Security Investigations in San Antonio. Noel Pena, 29, of Rio Grande City was assigned to the Starr County High Intensity Drug Trafficking Aare Task Force. Also sentenced today was Hector Salinas-Hinojosa, 21, of Roma.
At the hearing, Chief Judge Ricardo Hinojosa ordered Pena to serve a total of 84 months in federal prison, while Salinas will serve a 60-month term. The sentences will be followed by five years of supervised release. In handing down the sentence, the court took into consideration not only their illicit activity but also the fact that each, independent of each other, had cooperated with authorities after their respective arrest.
“The court's sentence appropriately punished the two defendants in this case for their involvement in a major drug trafficking organization that had a negative impact on the Rio Grande Valley and other surrounding communities,” said Folden. “HSI will continue to utilize its broad authorities to dismantle criminal organizations who blatantly ignore the laws of this nation.”
Both men were arrested in mid-April after they conspired to provide a fake police report to an undercover officer acting as a cocaine trafficker. Per the criminal complaint issued at the time, on April 9, 2015, Salinas and Pena met with the undercover officer and agreed to provide a fake police report to make it appear that 10 kilograms of cocaine has been seized by law enforcement in exchange for $10,000. At the time of the meeting, the undercover officer provided $5,000 as a down payment for the report.
As part of the undercover operation, on April 11, 2015, two kilograms of cocaine were left a stash house location in Garceno. After being “tipped” off the location, Pena proceeded to the residence, “found” the cocaine and then obtained a state search warrant to seize it.
As part of the agreement, the undercover officer had provided two of the eight kilograms to establish an actual seizure. A week later, Salinas provide the report to officer and was paid the remaining $5,000.
At the time of his plea, Pena agreed that after Salinas provided the fake report, Pena met with him in the early evening hours at a cemetery in Rio Grande City. Salinas then paid Pena $1,500 for his services. Salinas had been able to provide the fake report based on the details in the search warrant provided by Pena earlier.
Both have been in custody since the day of their respective arrests where they will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The charges were the result of an investigation conducted by HSI, Drug Enforcement Administrations, Texas Department of Public Safety and the FBI with assistance from the Texas Rangers. Assistant U.S. Attorneys Juan F. Alanis and Ted Imperato are prosecuting the case.
Former NYPD Detective Sentenced to 72 MonthsRead the Press Release
Earlier today, Rafael Astacio, a former detective with the New York City Police Department, was sentenced to 72 months of imprisonment by United States District Judge Joseph F. Bianco, to be followed by three years of supervised release. As part of the sentence, the court entered a $200,000 forfeiture money judgment and restitution in the amount of $1.8 million. Previously, Astacio pleaded guilty to conspiracy to commit interstate transportation of stolen property and filing a fraudulent tax return.
The sentence was announced by Robert L. Capers, United States Attorney for the Eastern District of New York.
According to court filings and statements at today’s court proceeding, between 2010 and 2012, Astacio was a member of a burglary crew that committed approximately three dozen commercial burglaries and ten residential burglaries in the Eastern District of New York stealing approximately $8,000,000 in cash and property. Astacio personally participated in six of the commercial burglaries and five residential burglaries stealing more than $5.3 million in cash and property. The crew used traditional burglary tools, such as blow torches, crowbars, wire cutters, and sledge hammers, as well as cell phone jammers, police scanners, and an automobile tracking device to commit these crimes. Astacio also used his position with the NYPD to locate potential burglary targets’ home addresses.
“For years, Astacio and his crew invaded Long Island homes and businesses and stole money and property. By victimizing the very same people he took an oath to serve and protect, the defendant compounded his criminal acts,” stated United States Attorney Capers. Mr. Capers extended his grateful appreciation to the Nassau County District Attorney’s Office; the Federal Bureau of Investigation, New York Field Office; the Nassau County Police Department; the Internal Revenue Service-Criminal Investigation, New York; and New York City Police Department for their assistance in this case.
The government’s case is being prosecuted by the Office’s Long Island Criminal Division. Assistant United States Attorney Christopher C. Caffarone and Special Assistant United States Attorney Rick Whelan are in charge of the prosecution.
The Defendant:
RAFAEL ASTACIO
Age: 43
Copiague, New YorkE.D.N.Y. Docket No. 13-CR-640 (JFB)
Former NBA Player and CEO of the George Group Sentenced to Nine Years in Prison for Role in a $2 Million Ponzi SchemeRead the Press Release
C. Tate George, former NBA basketball player and the CEO of purported real estate development firm The George Group, was sentenced today to 108 months in prison for his role in orchestrating a $2 million investment fraud scheme, announced U.S. Attorney Paul J. Fishman for the District of New Jersey.
After a three-week trial before U.S. District Judge Mary L. Cooper September 2013, a jury deliberated for four hours before convicting George, 47, of Newark, New Jersey, of all of four counts of the indictment. Judge Cooper imposed the sentence today in Trenton federal court.
“Those who perpetrate Ponzi schemes shamelessly trade on relationships with those who trust them,” U.S. Attorney Fishman said. “In this case, George relied on his sports stardom to attract unwitting investors. His crimes justified today’s lengthy sentence.”
“By shamelessly cashing in on his celebrity C. Tate George stole $2 million from investors who trusted him as a former NBA athlete,” said Special Agent in Charge Richard M. Frankel for the FBI’s Newark Division. “George used the money to pay other investors in the Ponzi-style scheme and lined his pockets with the rest, funding extensive renovations on his home, paying for his daughter’s sixteenth birthday party and producing a reality video about himself.”
According to documents filed in this case and evidence presented at trial:
George, a former player for the New Jersey Nets and Milwaukee Bucks professional basketball teams, held himself out as the CEO of The George Group and claimed to have more than $500 million in assets under management. He pitched prospective investors, including several former professional athletes, to invest with the firm and told them their money would be used to fund The George Group’s purchase and development of real estate development projects, including projects in Connecticut and New Jersey. George represented to some prospective investors that their funds would be held in an attorney trust account and personally guaranteed the return of their investments, with interest.
Based on George’s representations, investors invested more than $2 million in The George Group between 2005 and 2011, which he deposited in both the firm’s and his personal bank account. Instead of using investments to fund real estate development projects as promised, George used the money from new investors to pay existing investors in Ponzi-scheme fashion, as well as paying for his daughter’s sixteenth birthday party, extensive renovations on his New Jersey home (that has since been foreclosed), the mortgage on a New Jersey home, the mortgage on a Florida home, taxes to the Internal Revenue Service (IRS) and traffic tickets. The defendant gave money to family members and friends. He also spent $2,905 for a reality video about himself – a “sizzle reel” for “The Tate Show” – which was made available on YouTube. The George Group had virtually no income-generating operations.
During the sentencing proceeding, prosecutors asserted George had presented the court with fraudulent character witness letters. The defendant claimed the letters, which contained suspicious similarities, were sent to the court in support of a more lenient sentence. Some of the individuals who purportedly sent the letters signed declarations stating that they did not write the letters nor did they authorize the letters to be sent to the court on their behalf.
In addition to prison time, Judge Cooper also sentenced George to three years of supervised release, ordered him to $2.55 million in restitution and entered a forfeiture money judgment of $2.55 million.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel; postal inspectors of the U.S. Postal Inspection Service, under the direction of Postal Inspector in Charge Maria L. Kelokates; and criminal investigators with the U.S. Attorney’s Office, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorneys Joseph B. Shumofsky and Zach Intrater of the U.S. Attorney’s Office Criminal Division in Newark.
This case is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorney’s offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
Former NBA Player and CEO of the George Group Sentenced to Nine Years in Prison for Role in A $2 Million Ponzi SchemeRead the Press Release
TRENTON, N.J. – C. Tate George, former NBA basketball player and the CEO of purported real estate development firm The George Group, was sentenced today to 108 months in prison for his role in orchestrating a $2 million investment fraud scheme, U.S. Attorney Paul J. Fishman announced.
After a three-week trial before U.S. District Judge Mary L. Cooper September 2013, a jury deliberated for four hours before convicting George, 47, of Newark, New Jersey, of all of four counts of the indictment. Judge Cooper imposed the sentence today in Trenton federal court.
“Those who perpetrate Ponzi schemes shamelessly trade on relationships with those who trust them,” U.S. Attorney Fishman said. “In this case, George relied on his sports stardom to attract unwitting investors. His crimes justified today’s lengthy sentence.”
“By shamelessly cashing in on his celebrity C. Tate George stole $2 million from investors who trusted him as a former NBA athlete,” FBI-Newark Special Agent in Charge Richard M. Frankel said. “George used the money to pay other investors in the Ponzi-style scheme and lined his pockets with the rest, funding extensive renovations on his home, paying for his daughter’s sixteenth birthday party and producing a reality video about himself.”
According to documents filed in this case and evidence presented at trial:
George, a former player for the New Jersey Nets and Milwaukee Bucks professional basketball teams, held himself out as the CEO of The George Group and claimed to have more than $500 million in assets under management. He pitched prospective investors, including several former professional athletes, to invest with the firm and told them their money would be used to fund The George Group’s purchase and development of real estate development projects, including projects in Connecticut and New Jersey. George represented to some prospective investors that their funds would be held in an attorney trust account and personally guaranteed the return of their investments, with interest.
Based on George’s representations, investors invested more than $2 million in The George Group between 2005 and 2011, which he deposited in both the firm’s and his personal bank account. Instead of using investments to fund real estate development projects as promised, George used the money from new investors to pay existing investors in Ponzi-scheme fashion, as well as paying for his daughter’s sixteenth birthday party, extensive renovations on his New Jersey home (that has since been foreclosed), the mortgage on a New Jersey home, the mortgage on a Florida home, taxes to the IRS, and traffic tickets. The defendant gave money to family members and friends. He also spent $2,905 for a reality video about himself – a “sizzle reel” for “The Tate Show” – which was made available on YouTube. The George Group had virtually no income-generating operations.
During the sentencing proceeding, prosecutors asserted George had presented the court with fraudulent character witness letters. The defendant claimed the letters, which contained suspicious similarities, were sent to the court in support of a more lenient sentence. Some of the individuals who purportedly sent the letters signed declarations stating that they did not write the letters nor did they authorize the letters to be sent to the court on their behalf.
In addition to prison time, Judge Cooper also sentenced George to three years of supervised release, ordered him to $2.55 million in restitution and entered a forfeiture money judgment of $2.55 million.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel; postal inspectors of the U.S. Postal Inspection Service, under the direction of Postal Inspector in Charge Maria L. Kelokates; and criminal investigators with the U.S. Attorney’s Office, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorneys Joseph B. Shumofsky and Zach Intrater of the U.S. Attorney’s Office Criminal Division in Newark.
This case is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorney’s offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
Defense counsel: Pro se; John A. Azzarello Esq., Morristown, standby counsel
Fitchburg Woman Charged with Embezzling over $1.3 Million from EmployerRead the Press Release
BOSTON – An office manager for a Woburn life science technology firm was charged today with embezzling over $1.3 million dollars from her employer.
Dawnmarie Prince, 47, was indicted on eight counts of bank fraud and one count of aggravated identity theft.
According to the indictment, Prince worked as an office manager at a Woburn-based life science technology firm where she was responsible for handling the firm’s accounts payable. Since at least 2005 through May 2015, Prince allegedly used her position as office manager to steal hundreds of the company’s checks, which she made payable to herself or to her son. Prince then allegedly forged her boss’s signature on the stolen checks, and deposited them into her personal bank accounts.
To conceal her criminal conduct and avoid detection, it is alleged that Prince removed copies of the negotiated checks when sent back by the bank, and she falsified entries into the bookkeeping software program to make it appear as if the stolen checks had been used to pay legitimate vendors. In total, Prince is alleged to have embezzled over $1.3 million which she spent on personal expenses.
In 2001, Prince was convicted of mail fraud for defrauding another previous employer and sentenced to three years of probation and ordered to pay restitution. Prince was employed as a claims analyst for a subsidiary company of a Boston-based health plan. Shortly after starting that job, Prince created and submitted numerous false medical provider claims to the health plan. As a result, Prince received almost $50,000 in claims checks, which she endorsed and deposited into her personal bank account.
The charge of bank fraud provides for a sentence of no greater than 30 years in prison, three years of supervised release, and a fine of $1million on each count. The charge of aggravated identity theft provides for a mandatory consecutive term of two years in prison, one year of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Jordi de Llano of Ortiz’s Major Crimes Unit.
Executive Assistant Sentenced for Stealing over $150,000 from EmployerRead the Press Release
Greenbelt, Maryland – U.S. District Judge Peter J. Messitte sentenced Diane Jensen, age 54, of Frederick, Maryland today to 15 months in prison followed by three years of supervised release for wire fraud in connection with a scheme to embezzle at least $151,026.36 from her employer. Judge Messitte also entered an order that Jensen forfeit and pay restitution of $151,026.36.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation, Baltimore Field Office.
According to her plea agreement, from 2008 to 2012, Jensen was the executive assistant to the chief executive officer (CEO) of a company headquartered in Montgomery County, Maryland. During that time, Jensen, without authorization, would use an American Express card linked to the CEO’s American Express account to purchase expensive items and Green Dot Moneypaks for her personal use. She then obtained reimbursement for those personal purchases from the company, claiming they were legitimate purchases for the CEO or the CEO’s family members. Jensen purported to authorize the expenditures using the CEO’s signature stamp. Jensen also stole tens of thousands of dollars from one of the CEO’s bank accounts to which she had access.
Jensen admitted that the total amount of loss resulting from her conduct was at least $151,026.36.
United States Attorney Rod J. Rosenstein commended the FBI for its work in the investigation and thanked Assistant U.S. Attorneys Thomas P. Windom and David I. Salem, who prosecuted the case.
Eddy County Resident Sentenced to 168 Months for Federal Methamphetamine Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Rodrigo Ivan Cazares, 34, a legal permanent resident from Zamora, Michoacan, Mexico who resides in Artesia, N.M., was sentenced today in federal court in Las Cruces, N.M., for a narcotics trafficking conviction involving more than 4.5 kilograms (ten pounds) of pure methamphetamine. Cazares was sentenced to 168 months in prison, and will be deported after he completes his term of incarceration. Cazares was also ordered to forfeit the $48,389.00 seized from him during the investigation leading to his conviction.
The sentence was announced by U.S. Attorney Damon P. Martinez, Special Agent in Charge Will R. Glaspy of the DEA’s El Paso Division, and Commander James McCormick of the HIDTA Pecos Valley Drug Task Force.
U.S. Attorney Damon P. Martinez said that Cazares was prosecuted as part of the federal “worst of the worst” anti-violence initiative. 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. U.S. Attorney Martinez said that Cazares was prosecuted under the initiative even though he has no prior criminal convictions because the significant quantities and the purity of the methamphetamine trafficked by Cazares demonstrated that he posed a serious danger to residents of Eddy County.
“Taking drug dealers like Mr. Cazares off the streets is DEA’s top priority, and our partnership with the Pecos Valley Drug Task Force demonstrates our ongoing commitment to investigating and prosecuting those who sell these dangerous and addictive drugs in our local communities,” said DEA Special Agent in Charge Will R. Glaspy.
“This case is a perfect example of the mission and goals of the HIDTA program coming to fruition; local, state and federal agencies working together to remove the ‘worst of the worst’ criminals like Cazares from our community for as long as possible,” said Commander James McCormick of the HIDTA Pecos Valley Drug Task Force. “The incarceration of Cazares and others involved in his criminal enterprise will have a direct impact on the residents of Eddy County, in a positive light. Basically this is a ‘win-win’ for not only the residents of Eddy County but for all New Mexicans.”
Cazares was arrested in Oct. 2013, on a criminal complaint charging him with distribution of approximately 2.8 kilograms of methamphetamine to an undercover law enforcement officer on Oct. 15, 2013, in Eddy County, N.M. He subsequently was charged in a five-count indictment with distributing large quantities of methamphetamine on four occasions between Aug. 2013 and Oct. 2013, and possessing methamphetamine with intent to distribute on Oct. 15, 2013. The indictment alleged that Cazares committed the five methamphetamine trafficking offenses in Eddy County.
On May 28, 2014, Cazares pled guilty to all five-counts of the indictment and admitted that he committed the following crimes:
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Distribution of an ounce of methamphetamine to a confidential source working with law enforcement that on Aug. 15, 2013;
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Distribution of eight ounces of methamphetamine to the confidential source on Sept. 9, 2013;
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Distribution of five pounds of methamphetamine to the confidential source and an undercover law enforcement agent on Oct. 8, 2013;
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Distribution of five pounds of methamphetamine to the undercover law enforcement agent on Oct. 15, 2013; and
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Possession of two ounces of methamphetamine and an ounce of cocaine on Oct. 15, 2013.
In entering his guilty plea, Cazares admitted that law enforcement officers seized $48,389.00 in cash from Cazares and his residence when he was arrested on Oct. 15, 2013. Cazares admitted that the cash and two vehicles seized by law enforcement agents on Oct. 15, 2013 were proceeds of his drug trafficking activities.
This case was investigated by the Las Cruces office of the DEA and the Pecos Valley Drug Task Force. Assistant U.S. Attorney Renee L. Camacho of the U.S. Attorney’s Las Cruces Branch Office prosecuted the case.
The Pecos Valley Drug Task Force is comprised of officers from the Eddy County Sheriff’s Office, Carlsbad Police Department and Artesia Police Department and is part of the HIDTA Region VI Drug Task Force. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
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Danbury Flooring Company Owner who Filed False Tax Returns is SentencedRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that SCOTT BENINCASA, 32, of Danbury, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to three years of probation, the first six months of which BENINCASA must serve in home confinement, for filing false tax turns. Judge Chatigny also ordered BENINCASA to perform 120 hours of community service, pay a $15,000 fine and make full restitution to the IRS.
According to court documents and statements made in court, SCOTT BENINCASA and his brother, David Benincasa, were 50 percent owners in Goodhouse Flooring, LLC, a business that provides floor installation and flooring products to retail and commercial customers. David Benincasa assisted SCOTT BENINCASA with the daily operations of the business, but had primary responsibility for the financial aspects of the business. For the 2008 through 2010 tax years, the brothers intentionally understated gross receipts from their business on the Schedule C attached to their respective federal personal income tax filings. During those years, the brothers failed to accurately report the expenses incurred in running their business, as they paid certain laborers who worked for their business in cash and then failed to reflect the cash payments on their filed returns.
In addition, during an IRS civil audit, SCOTT BENINCASA submitted a false real estate log and business schedule in an effort to improperly justify previously taken deductions on his 2009 federal personal income tax return.
BENINCASA was ordered to pay $47,076 in back taxes, plus applicable interest and penalties.
On October 28, 2015, SCOTT BENINCASA pleaded guilty to one count of filing a false tax return, and David Benincasa, 35, of Danbury, pleaded guilty to one count of tax evasion. David Benincasa faces a maximum term of imprisonment of five years when he is sentenced on January 25. He also has agreed to pay $238,274 in back taxes, plus applicable interest and penalties.
This matter was investigated by the Internal Revenue Service – Criminal Investigation Division and is being prosecuted by Assistant U.S. Attorney Christopher W. Schmeisser.
Cuban National Sent to Prison for Role in $200k Credit Card Fraud SchemeRead the Press Release
McALLEN, Texas – A Cuban citizen who was residing in McAllen has been ordered to federal prison for trafficking in access devices, announced U.S. Attorney Kenneth Magidson. Alexis Acosta-Guzman, 40, pleaded guilty Nov. 3, 2015.
Today, U.S. District Judge Micaela Alvarez, who accepted the guilty plea, handed Acosta-Guzman a 100-month sentence. He was further ordered to pay restitution in the amount of $211,311.15 to five financial institutions that absorbed the loss of more than 1,000 victims. In handing down the sentence, Judge Alvarez noted that the defendant had prior similar criminal conduct. Not a U.S. citizen, he is expected to face deportation proceedings following his release from prison.
From March 2013 through August 2015, Acosta-Guzman wired thousands of dollars in funds to individuals in China, Russia and the Ukraine. In return, he received more than 1,000 credit card numbers and other personal information that had been stolen from individuals in the United States. Acosta-Guzman transferred that information to others using various email accounts.
He and co-conspirators would then use special devices and the stolen information to create physical credit cards. They used the fraudulent credit cards to make purchases throughout Texas at different retailers and convenience stores.
As a result of the scheme, hundreds of people lost more than $211,000 for the fraudulent charges.
He will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The charges are the result of an investigation conducted by the Secret Service, FBI and the McAllen Police Department. Assistant U.S. Attorneys David A. Lindenmuth and Joseph T. Leonard prosecuted the case.