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Friday 20 November 2015
Pinon Man Sentenced to 210 Months in Prison for Second Degree MurderRead the Press Release
PHOENIX – On Nov. 2, 2015, Leland Sam Buckinghorse, 31, a member of the Navajo Nation, of Pinon, Ariz., was sentenced by U.S. District Judge Susan R. Bolton to 210 months’ imprisonment. Buckinghorse previously pleaded guilty to second degree murder.
On Dec. 11, 2014, Buckinghorse engaged in an argument with the victim outside of Buckinghorse’s house on the Navajo Nation Indian Reservation. Buckinghorse went inside his house and located a .22 caliber rifle, loaded the rifle, went back outside, and shot the unarmed victim once in the chest area. The victim, also a member of the Navajo Nation, died as a result of his injuries.
The investigation in this case was conducted by the Federal Bureau of Investigation and the Navajo Nation Police Department. The prosecution was handled by Kiyoko Patterson, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-15-8001-PCT-SRB
RELEASE NUMBER: 2015-115_ Buckinghorse
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Owner of Houston Durable Medical Equipment Health Care Companies Sentenced for $3.4 Million Medicare Fraud SchemeRead the Press Release
A Texas man was sentenced today to 63 months for his role in a $3.4 million scheme to defraud Medicare, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Kenneth Magidson of the Southern District of Texas, Special Agent in Charge CJ Porter of the U.S. Department of Health and Human Services-Office of the Inspector General (HHS-OIG) Dallas Region, Special Agent in Charge Perrye K. Turner of the FBI’s Houston Field Office and the Texas Attorney General’s Medicaid Fraud Control Unit (MFCU).
Huey P. Williams Jr., 46, of Katy, Texas, was sentenced by U.S. District Judge Melinda Harmon of the Southern District of Texas. In addition to imposing the sentence, Judge Harmon ordered Williams to pay $1.96 million in restitution. Williams owned and operated Hermann Medical Supplies Inc. and Hermann Medical Supplies II (collectively Hermann Medical), two Houston-area durable medical equipment (DME) companies.
On March 11, 2015, following a three-day trial, a jury convicted Williams of one count of healthcare fraud. According to the evidence presented at trial, from December 2006 through July 2010, Williams owned and operated Hermann Medical Supplies Inc. and Hermann Medical Supplies II (collectively Hermann Medical), two Houston-area durable medical equipment (DME) companies. Through these companies, Williams oversaw a scheme to defraud Medicare by submitting approximately $3.4 million in false and fraudulent DME claims. Specifically, Williams caused Hermann Medical to bill Medicare for components of an “arthritis kit,” which included expensive, rigid braces and orthotics with adjustable joints that required fitting and adjustment, when in reality, Williams never purchased any of the expensive braces and instead purchased and provided to beneficiaries only inexpensive, flimsy neoprene braces and equipment, to the extent he provided any equipment at all. Medicare paid Hermann Medical $1.96 million on these claims.
The FBI, HHS-OIG and Texas MFCU investigated the case. The case was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office of the Southern District of Texas. Trial Attorneys Ashlee C. McFarlane and Jason Knutson of the Criminal Division’s Fraud Section prosecuted the case.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged over 2,300 defendants who collectively have billed the Medicare program for over $7 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Team (HEAT), go to www.stopmedicarefraud.gov.
Owner and Chief Financial Officer of Healthcare Company Convicted in Fraud SchemeRead the Press Release
BATON ROUGE, LA – BARBARA A. SADLER, age 63, of Zachary, Louisiana, and SEDRIC C. BLAKES, age 42, of Zachary, Louisiana, have been convicted in federal court of conspiracy to commit health care fraud and wire fraud in connection with a multi-million dollar scheme to defraud the Louisiana Medicaid program through Extraordinary Care Network, Inc. (“Extraordinary”), an attendant care services company that SADLER and BLAKES owned and operated.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Walt Green of the Middle District of Louisiana, Special Agent in Charge CJ Porter of the Dallas Region of the U.S. Department of Health and Human Services Office of the Inspector General (HHS-OIG), Special Agent in Charge Jeff Sallet of the FBI’s New Orleans Division and Louisiana State Attorney General James Buddy Caldwell made the announcement.
SADLER and BLAKES were previously charged by a federal grand jury, in a Superseding Indictment returned on June 25, 2015, with conspiring with others to commit healthcare fraud and wire fraud, in violation of Title 18, United States Code, Section 1349. BLAKES was also charged with multiple counts of healthcare fraud and wire fraud, in violation of Title 18, United States Code, Sections 1347 and 1343. The Superseding Indictment also included a forfeiture allegation requiring SADLER and BLAKES to forfeit the proceeds of their fraud if convicted.
In connection with her guilty plea yesterday before Chief U.S. District Judge Brian A. Jackson, SADLER admitted that, beginning in or around 2006 and continuing through in or around March of 2013, she engaged in a scheme to defraud Medicaid through Extraordinary Care, which she owned, operated, and managed. During this time period, in total, Extraordinary Care submitted claims to Medicare and was paid more than $23 million. SADLER admitted, however, that she and others submitted fraudulent claims to Medicaid in which they falsely represented that Extraordinary Care had provided one-on-one attendant care services, when in fact such services had not been provided as represented. In furtherance of the scheme, SADLER admitted that she and her co-conspirators would fabricate progress notes, forge the signatures of unwitting company employees, and then use such documents as support for fraudulent claims to Medicaid for reimbursement. In her written plea agreement, SADLER admitted that the scheme caused a loss of more than $1 million.
Previously, on Thursday, November 12, 2015, BLAKES appeared before Chief Judge Jackson and entered his own guilty plea to the conspiracy charge. BLAKES admitted that he, too, engaged in a scheme to defraud Medicaid while employed as the company’s Chief Operating Officer. BLAKES admitted that he participated in submitting fraudulent claims to Medicaid and that he would also fabricate progress notes and forge signatures of other employees.
Both SADLER and BLAKES are now awaiting sentencing.
U.S. Attorney Green stated: “Our office, together with our federal, state and local partners, will continue to aggressively pursue individuals, including corporate executives, who defraud our healthcare programs. Holding individuals accountable is imperative to stemming the tide of fraud and serving as a significant deterrent to anyone inclined to engage in similar wrongdoing.”
This ongoing matter is being investigated by the Federal Bureau of Investigation (FBI) and the Medicaid Fraud Control Unit of the Louisiana State Attorney General’s Office (MFCU), and is being brought as part of the Medicare Fraud Strike Force, under the supervision of the United States Attorney’s Office and the Fraud Section of the Criminal Division of the U.S. Department of Justice. This case is being prosecuted by DOJ Trial Attorneys Dustin M. Davis and Shubhra Shivpuri and Assistant U.S. Attorney J. Brad Casey.
Omaha Couple Sentenced for Federal Prostitution Related OffensesRead the Press Release
United States Attorney Deborah R. Gilg announced that on November 20, 2015, Louis A. Venditte, 67, of Omaha, Nebraska, was sentenced for four federal felony prostitution related offenses, which include conspiracy to transport an individual in interstate commerce with intent that such individual engage in prostitution, to persuade, induce, entice, and coerce an individual to travel in interstate commerce to engage in prostitution, and to use a facility in interstate commerce in aid of a racketeering enterprise, in violation of 18 U.S.C. § 371; transportation for purposes of prostitution, in violation of 18 U.S.C. § 2421; inducement and enticement to engage in prostitution, in violation of 18 U.S.C. § 2422(a); and use of a facility in interstate commerce in aid of a racketeering enterprise, in violation of 18 U.S.C. § 1952(a)(3)(A). The Honorable Joseph F. Bataillon, Senior United States District Court Judge, sentenced Louis A.Venditte to a 1 year and 1 day term of imprisonment. There is no parole in the federal system.
On November 20, 2015, Ruby A. Venditte, 67, of Omaha, Nebraska, was sentenced for one felony count of conspiracy to transport an individual in interstate commerce with intent that such individual engage in prostitution. The Honorable Joseph F. Bataillon, Senior United States District Court Judge, sentenced Ruby A. Venditte to a 3 year term of probation.
An investigation conducted by the Federal Bureau of Investigation, Omaha Police Department, and Douglas County Sheriff’s Department determined that from at least 2003 through October, 2013, the Vendittes operated an establishment located at 623 South 16th Street, Omaha, Nebraska. The business was last identified by the name “Goodfellas.”
Goodfellas was advertised as a club featuring “exotic dancers” who appeared on stage in bikinis or similar attire, but in fact was operated as a prostitution enterprise. Goodfellas was typically open for only a few hours each evening during which time customers would engage in sex acts with female workers.
After being hired, female workers were encouraged to engage in prostitution with customers for a monetary fee. While operating as a prostitution enterprise, the Vendittes transported at least one female to and from the State of Iowa to Goodfellas with the intent she would engage in prostitution.
Customers engaged in sex acts with female workers for prices ranging from $100 to $200. The sex acts typically occurred within the Goodfellas’ premises in the two bedrooms in the upper area of the building. Payments for sex acts were cash. At the end of the evening the Vendittes would split money made from commercial sex acts with the female workers. While operating as a prostitution enterprise, at no time did Goodfellas report earnings to the Internal Revenue Service.
The case was investigated by the Federal Bureau of Investigation, Omaha Police Department, and Douglas County Sheriff’s Department.
New York Dentist Arrested for Narcotics Trafficking and Distribution of Child PornographyRead the Press Release
A criminal complaint was unsealed today in federal court in the Eastern District of New York charging John Wolf with conspiring to possess methamphetamine with intent to distribute and possession and distribution of child pornography. The defendant was arrested earlier today at his residence, and his initial appearance is scheduled for this afternoon before United States Magistrate Judge Robert M. Levy at the U.S. Courthouse, 225 Cadman Plaza East, Brooklyn, New York.
The charges were announced by Robert L. Capers, United States Attorney for the Eastern District of New York, Diego Rodriguez, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office, and James J. Hunt, Special Agent in Charge, Drug Enforcement Administration, New York.
As set forth in the complaint, the defendant, a Manhattan dentist, provided dental services to a drug dealer in exchange for methamphetamine, some of which the defendant would use personally and some of which he would distribute to others.
The defendant also used his dental office as a place to view and distribute child pornography. In recorded conversations with an FBI undercover agent, the defendant admitted that he possessed child pornography and provided the undercover agent with a flash drive containing files depicting child pornography, including videos of children as young as toddlers being raped by adult men.
United States Attorney Capers expressed his grateful appreciation to the Federal Bureau of Investigation and the Drug Enforcement Administration, the agencies responsible for leading the investigation, and thanked the New York City Police Department and the New York State Police for their assistance.
The charges in the complaint are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being prosecuted by Assistant United States Attorney Moira Kim Penza.
The Defendant:
Name: John Wolf
Age: 59
New York, New YorkIf you have information regarding this case, or you believe you or a family member may have been a victim, please contact the FBI at 212/384-5000.
Morgantown, WV man convicted of possessing stolen firearmsRead the Press Release
CLARKSBURG, WEST VIRGINIA – William Dennison, 24, of Morgantown, West Virginia, was convicted of possessing stolen firearms today in federal court, United States Attorney William J. Ihlenfeld, II, announced.
Dennison was discovered in Monongalia County, West Virginia in possession of two stolen firearms. Those firearms included a .38 caliber revolver and a .22 caliber pistol.
Dennison pled guilty today to a criminal Information charging him with one count of “Possession of Stolen Firearms.” He faces up to 10 years in prison and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney David Perri prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Mexican national convicted of methamphetamine trafficking in Hardy County, WVRead the Press Release
CLARKSBURG, WEST VIRGINIA – Noel Barrera Silva, 26, a Mexican national living in Moorefield, West Virginia, was convicted of methamphetamine trafficking today in federal court after authorities recovered a large amount of the drug from a vehicle Silva was operating, United States Attorney William J. Ihlenfeld, II, announced.
The West Virginia State Police conducted a traffic stop in Wardensville, West Virginia in December 2014 and discovered Silva to be in possession of four pounds of methamphetamine. Silva pled guilty today to one count of “Possession with Intent to Distribute Methamphetamine.” He faces up to 20 years in prison and a fine of up to $1,000,000.
Assistant U.S. Attorney Stephen Warner prosecuted the case on behalf of the government. The West Virginia State Police and the Potomac Highlands Drug and Violent Crime Task Force investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Media Advisory: Expired, Unused and Unwanted Medicines Can KillRead the Press Release
CEDAR RAPIDS – The United States Attorney’s Office for the Northern District of Iowa together with state law enforcement agency representatives will hold a press conference on November 24th to discuss a new program begun by the Eastern Iowa Heroin Initiative. Deaths from drug overdoses in the United States surpassed deaths from either firearms or motor vehicle accidents each year since 2008, according to a newly released report. This new initiative has been developed to encourage the public to play a part in curbing prescription drug overdose deaths.
Four drug drop-off boxes will be placed in Johnson and Black Hawk County as part of the Eastern Iowa Heroin Initiative, which will provide for an anonymous, no questions asked way for people to dispose of expired, unused, or unwanted medications. A drop-off box will be on display.
U.S. Attorney Kevin Techau will be present at the press conference.
Event Details
When: Tuesday, November 24, 2015
Where: Cedar Rapids Police Department (Community Room), 505 1st Street S.W., Cedar Rapids, IA
Time: 11:00 a.m.
A press release will be provided and interview opportunities will be available after the press conference.
McAllen Area Doctor and Assistant Plead Guilty in Health Care Fraud and Illegal Kickback SchemeRead the Press Release
McALLEN, Texas ‐ A McAllen area doctor has been convicted of health care fraud and aggravated identity theft, announced U.S. Attorney Kenneth Magidson. Dr. Eduardo Carrillo, 42, of Edinburg, entered his guilty plea today before U.S. District Judge Randy Crane. Also convicted today was his assistant - Martha Uribe Medrano, 48, of Edinburg.
As part of his plea, Carrillo admitted he attempted to cause others to bill Medicare for patients who were deceased on the dates that Carrillo claimed to have provided services to the patients. Carrillo submitted fraudulent documentation to a billing company so that the company would file claims with Medicare for reimbursement of physician services. Records obtained by law enforcement show that the patients were deceased on the dates that Carrillo alleged to have provided services to the patients.
Carrillo also admitted to engaging in a scheme with his co-conspirator and assistant, Medrano, to solicit and obtain illegal kickbacks in exchange for patient referrals. Carrillo and Medrano solicited and obtained cash in exchange for referrals of Medicare beneficiaries. Carrillo admitted he used the Medicare number and personal information of a patient in the illegal kickback exchange. Medrano pleaded guilty to illegal remunerations for her role in the scheme.
Sentencing for both Carrillo and Medrano has been set for Feb. 3, 2016, at 2:00 p.m. At that time, Carrillo faces a maximum of 10 years in federal prison and a possible $250,000 fine. He also faces a mandatory two-year additional prison term which must be served consecutively to any other sentence imposed. For her conviction, Medrano faces a maximum of five years and a $25,000 possible fine.
Both were permitted to remain on bond pending that hearing.
The investigation leading to the charges was conducted by the Department of Health and Human Services‐Office of Inspector General and the FBI. Assistant United States Attorney Michael Day is prosecuting the case.
Massachusetts Man Sentenced to 30 Months for Illegal Possession of Firearm in New HampshireRead the Press Release
CONCORD, N.H. – Jeremy Robinson, 26, of Hyannis Massachusetts, was sentenced in the United States District Court for the District of New Hampshire for illegal possession of a firearm and ammunition, announced Acting United States Attorney Donald Feith. Chief U.S. District Judge Joseph Laplante imposed a sentence of 30 months imprisonment, three years supervised release, and a mandatory special assessment of $100.
On August 11, 2015, Robinson pleaded guilty to a one-count indictment charging him with illegal possession of a firearm and ammunition in violation of 18 U.S.C. § 922(g)(1).
According to the indictment and other statements made in court, Robinson travelled to New Hampshire in November 2014 and possessed an H&K 9mm pistol and ammunition manufactured by Fiocchi at a firing range in Manchester. At the time, Robinson was prohibited from possessing a firearm as a result of a prior felony conviction. Robinson subsequently posted videos and photographs of his operation of the rented firearm to social media websites.
Robinson is currently incarcerated in Massachusetts on an unrelated conviction, and Chief Judge Laplante ordered his federal sentence to run consecutive to his state incarceration.
This matter was jointly investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives, the Barnstable Police Department, and the Barnstable Sheriff's Office. The case was prosecuted by Assistant U.S. Attorney Charles L. Rombeau.
Maryland Man Sentenced to 10 Years in Prison for Traffic Fatality on Suitland ParkwayRead the Press Release
WASHINGTON – Robert Paris, 52, of Temple Hills, Md., was sentenced today to a 10-year prison term on charges of voluntary manslaughter and driving under the influence of alcohol and PCP, stemming from a crash that killed a woman who was standing beside a disabled van along the roadway of Suitland Parkway, U.S. Attorney Channing D. Phillips announced.
Paris pled guilty in September 2015, in the Superior Court of the District of Columbia, in an Alford plea. Under such a plea, the defendant does not admit the allegations but agrees that the government has enough evidence to secure a conviction; Paris entered an Alford plea because of his intoxication by alcohol and PCP at the time of the crash, and his inability to recollect events. He has been in custody since his arrest. The Honorable Jennifer Anderson sentenced him today. Following his prison term, Paris will be placed on five years of supervised release.
According to the government’s evidence, at about 10:15 p.m. on Tuesday, July 14, 2015, Paris was seen by an off-duty officer from the Metropolitan Police Department (MPD) driving a Ford Ranger truck from a ramp onto eastbound Suitland Parkway in Southeast Washington. The officer observed the Ford Ranger merge at a high rate of speed, far in excess of the 45 mph speed limit, and swerve over to the left lane.
While attempting to catch up to Paris’s truck, the officer saw the truck sideswipe a disabled van that was straddling the right lane and shoulder of Suitland Parkway. The victim, Tomika Early, 32, had been standing next to the driver’s side of the van, and was struck by Paris’s truck and thrown approximately 160 feet forward and to the right. Ms. Early was immediately killed by the extensive impact injuries.
After sideswiping the van and killing Ms. Early, Paris continued to speed eastbound on Suitland Parkway, and struck second vehicle and then a street light pole before coming to a stop.
The officer immediately stopped and approached Paris’s wrecked truck, and saw Paris in the driver’s seat. The officer attempted to talk to Paris, and it was apparent to the officer that Paris was under the influence of alcohol and/or drugs. The officer also saw an opened beer can on the floorboard of the truck, and a number of additional crushed empty beer cans in the bed of the truck. Paris was taken to Prince George’s Hospital Center to be treated for minor injuries. There, his blood was drawn. His blood was later analyzed and it was determined that Paris’s blood alcohol concentration was 0.131 g/100mL. A driver whose blood alcohol concentration is 0.08 g/100mL or greater is considered under District of Columbia law to be per se driving under the influence of alcohol. Paris’s blood was also found to contain a concentration of 25 ng/mL of PCP, which indicates that he was actively under the influence of PCP when the crash occurred.
In announcing the sentence, U.S. Attorney Phillips praised those who investigated the case for the Metropolitan Police Department, including members of the Major Crash Investigations Unit, the Driver Impairment Unit and the Seventh District. He also expressed appreciation for those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Sandra Lane and Victim/Witness Advocate Marcia Rinker. Finally, he commended the work of Assistant U.S. Attorney Edward A. O’Connell, who prosecuted the matter.
Manhattan U.S. Attorney Announces Conviction of Jamal Smalls for Murder, Narcotics Trafficking, and Firearms ChargesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that JAMAL SMALLS, a/k/a “Poo Black,” a/k/a “Machiavelli,” a/k/a “Mack,” was found guilty today of the July 26, 2012, drug-related murder of Doneil White; leading a narcotics trafficking conspiracy that distributed powder cocaine, crack cocaine, and heroin in 2012 and 2013; and using and discharging firearms in connection with that narcotics conspiracy, following a two-week jury trial before United States District Judge Naomi Reice Buchwald.
U.S. Attorney Preet Bharara said: “Jamal Smalls led a violent drug trafficking crew and, as the jury found, was responsible for murder as well as other mayhem and drug peddling. Thanks to the FBI and the NYPD, this threat to public safety is off the streets and awaiting sentencing for his crimes.”
According to the Superseding Indictment, evidence admitted at trial, and statements made at court proceedings and in court filings:
JAMAL SMALLS, a/k/a “Poo Black,” a/k/a “Machiavelli,” a/k/a “Mack,” was a high-ranking member of the Bloods. In 2012 and 2013, SMALLS ran a drug trafficking crew that operated in and around the John Adams Houses in the Bronx, New York. SMALLS and his crew sold large quantities of powder cocaine, crack cocaine, and heroin in and around the housing project, as well as in North Carolina, South Carolina, and Virginia.
In 2000, SMALLS was convicted for first degree manslaughter in New York State. Throughout SMALLS’s term of incarceration, he received narcotics from his brother and persons working on behalf of the crew to distribute within the state prison system. In April 2012, SMALLS was released from New York State prison. After his release, SMALLS began to lead the crew with his brother, participating in large-quantity narcotics transactions in the Bronx and out-of-state.
SMALLS was also involved in repeated violence committed in connection with the crew’s drug trafficking. On July 18, 2012, SMALLS tried to shoot Doneil White, a rival drug dealer, but missed; SMALLS, however, hit a bystander in the back outside of the Johns Adams Houses. A week later, on July 25, 2012, SMALLS again shot at Doneil White in the John Adams Houses, but missed. Early the next morning, on July 26, 2012, SMALLS paid a member of his crew $10,000 to shoot Doneil White in a stairwell at the John Adams Houses. White died a few days later as result of his severe injuries.
Following his arrest in August 2012, and while in pre-trial detention, SMALLS continued to lead the narcotics conspiracy, by, among other things, giving directives to members of the crew through telephone calls and in-person visits.
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SMALLS, 39, of the Bronx, New York, was convicted of (a) conspiracy to distribute and possess with the intent to distribute 280 grams and more of crack cocaine, one kilogram and more of heroin, and five kilograms and more of cocaine; (b) using, carrying, possessing, and discharging firearms in connection with that narcotics conspiracy; and (c) the drug-related murder of Doneil White. In total, SMALLS faces a maximum sentence of life in prison and a mandatory minimum sentence of 45 years in prison. SMALLS is scheduled to be sentenced on March 10, 2016, at 2:30 p.m., before Judge Buchwald. The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
U.S. Attorney Preet Bharara thanked the Federal Bureau of Investigation and the New York City Police Department for their continued outstanding work in this investigation. Mr. Bharara also thanked the Bronx District Attorney’s Office for their valuable assistance with the investigation.
The case is being prosecuted by the Office’s Violent & Organized Crime Unit. Assistant U.S. Attorneys Kan M. Nawaday, Joshua A. Naftalis, and Drew Johnson-Skinner are in charge of the prosecution.
Manhattan U.S. Attorney Announces $370 Million Civil Fraud Settlement Against Novartis Pharmaceuticals for Kickback Scheme Involving High-Priced Prescription Drugs, Along with $20 Million Forfeiture of Proceeds from the SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Diego Rodriguez, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), Gregory E. Demske, Chief Counsel to the Inspector General of the U.S. Department of Health and Human Services (“HHS-OIG”), and Scott J. Lampert, Special Agent in Charge of HHS-OIG’s New York Regional Office, announced a $390 million settlement against NOVARTIS Pharmaceuticals Corp. (“NOVARTIS”) in a civil fraud lawsuit based on claims that NOVARTIS gave kickbacks to specialty pharmacies in return for recommending two of its drugs, Exjade and Myfortic. The settlement resolves claims under the federal False Claims Act, 31 U.S.C. § 3729 et seq., and numerous state false claims act claims. The settlement also provides for resolution of claims against NOVARTIS under the federal civil forfeiture statute, 18 U.S.C. § 981 et seq. This is the third settlement in this lawsuit – in January 2014 and April 2015, two specialty pharmacies, Bioscrip, Inc. (“Bioscrip”) and Accredo Health Group (“Accredo”), agreed to pay a total of $75 million to resolve federal and state claims against them based on the same allegations. Together with today’s settlement, the federal and state governments will recover $465 million in total based on the kickback allegations in this lawsuit.
In April 2013, the Government first intervened as to NOVARTIS in this lawsuit, which was initially filed by a whistleblower, and asserted that NOVARTIS violated the False Claims Act and the Anti-Kickback Statute, 42 U.S.C. § 1370a-7b, by giving kickbacks to specialty pharmacies in return for recommending Exjade, an iron chelation drug, and Myfortic, an anti-rejection drug for kidney transplant recipients. With respect to Exjade, the Government alleged that NOVARTIS gave kickbacks in the form of patient referrals and rebates to Bioscrip and Accredo to induce those pharmacies to recommend Exjade refills. More specifically, the Government alleged that, to increase Exjade sales, Novartis incentivized and pressured the pharmacies to emphasize Exjade’s benefits to patients while understating the drug’s serious, potentially life-threatening, side effects. With respect to Myfortic, the Government alleged that NOVARTIS gave rebate contracts to specialty pharmacies to induce the pharmacies to recommend to doctors that they switch patients to Myfortic from competitor drugs.
Today, U.S. District Judge Colleen McMahon approved a settlement to resolve the Government’s claims against NOVARTIS. Under that settlement, NOVARTIS agrees to (i) pay $370,000,000 to resolve the federal and state false claims act claims, (ii) forfeit $20 million as proceeds from the scheme under the federal civil forfeiture statute, (iii) make extensive admissions concerning its relationship with specialty pharmacies, and (iv) amend its corporate integrity agreement with HHS-OIG to subject NOVARTIS’s specialty pharmacy relationships to independent review and extend the term of that agreement by five years. Of the $370 million, $286,870,245.98 will be paid to the Government, and $83,129,754.02 will be paid to settling states.
Manhattan U.S. Attorney Preet Bharara said: “This is the third substantial settlement in connection with Novartis’s scheme to use kickbacks to co-opt healthcare providers’ independence. The Anti-Kickback Statute was enacted to ensure that the medical treatment and advice patients receive, and federal programs pay for, are free from the taint of corporate kickbacks. But that was not the case with Novartis here. Novartis gave kickbacks to influence specialty pharmacies to provide patients one-sided advice about Exjade, without disclosing the drug’s serious side effects, and to recommend switching patients who were using other drugs to Myfortic. Novartis turned pharmacies that should have been disinterested healthcare providers into a biased salesforce for the drug-maker. Drug-makers and their relationships with healthcare providers – whether they are doctors, pharmacists, or nurses – must comply with the Anti-Kickback Statute. If they don’t, we will bring all appropriate law enforcement tools to bear to ensure that they do.”
FBI Assistant Director-in-Charge Diego Rodriguez said: “In the course of our investigation with the Health and Human Services Office of Inspector General, Novartis was found to be giving incentives to pharmacies to push certain drugs to patients. Today’s settlement with Novartis should serve as a warning to companies who choose to operate their businesses with kickbacks rather than honesty – those companies will pay more in the long run. Doctors should be advising patients based on medical facts, not pharmacies based on dollar signs. The FBI is committed to working with our federal partners to protect our citizens from fraud and ensure everyone receives the quality medical care they need.”
HHS-OIG Chief Counsel Gregory E. Demske said: “Reliable information is essential for patients taking drugs on a long-term basis, and money should not distort the advice that patients receive about drugs with serious side effects. OIG will continue to investigate kickback arrangements between pharmaceutical manufacturers and specialty pharmacies.”
HHS-OIG Special Agent in Charge Scott J. Lampert said: “Novartis’s kickbacks and other aggressive sales tactics, as alleged in this case, threatened the impartiality of medical decision-making and the financial integrity of Medicare and Medicaid. Our agency will continue to investigate companies who step over the line to maximize their market share at the expense of federal health care programs.”
As the Government contended, evidence uncovered in the lawsuit shows that Exjade patient referrals were very valuable for pharmacies and that when it launched Exjade in 2005, NOVARTIS created a “closed distribution network” involving just three specialty pharmacies, BioScrip, Accredo, and US Bioservices. This gave NOVARTIS control over how many Exjade patients would be assigned to the pharmacies.
The Government also contended that evidence shows, starting in early 2007, NOVARTIS saw Exjade sales were far below internal targets because of low refill rates due, in significant part, to side effects that were more frequent and more severe than initially expected. To increase Exjade refills and hit its sales targets, NOVARTIS leveraged its control over patient referrals to pressure BioScrip, Accredo, and US Bioservices to hire or assign nurses to call Exjade patients and, under the guise of education or clinical counseling, encourage patients to order more refills.
More specifically, as the Government contended, NOVARTIS knew that, when the pharmacies called patients, they emphasized the benefits of taking Exjade – for example, by telling patients that not taking Exjade would cause damage to their organs or lead to infertility – while understating the serious, potentially life-threatening risks of taking Exjade – for example, by not mentioning potential side effects like kidney and liver failure. Indeed, NOVARTIS encouraged the pharmacies to promote Exjade refills in these ways even though FDA had characterized claims about Exjade preventing organ damage as “unsubstantiated.”
In addition, the Government contended that, to incentivize the pharmacies to intensify their efforts to promote Exjade refills, NOVARTIS devised a scheme under which it allocated more patient referrals and gave higher rebates to pharmacies that obtained higher refill rates. Indeed, NOVARTIS went forward with this scheme – which operated from 2008 to 2012 – even though it knew that the scheme presented risks of violating the Anti-Kickback Statute.
Finally, with regard to Myfortic, the Government contended evidence shows that NOVARTIS offered lucrative rebate offers to five specialty pharmacies in return for the pharmacies’ promise to recommend to doctors that they switch patients to Myfortic from competitor drugs. For example, in July 2011, NOVARTIS offered rebates to a specialty pharmacy in Mississippi once the pharmacy owner agreed to “create a letter to” doctors “with a recommendation of moving [ ] patients to Myfortic.”
As part of the settlement, NOVARTIS made extensive factual admissions about its relationships and interactions with specialty pharmacies in connection with distribution of Exjade and Myfortic and accepted responsibility for those admissions (those admissions, which are part of the settlement stipulation approved by the Court, are attached as an addendum).
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The allegations of fraud stated in the Complaint were first brought to the attention of federal law enforcement by David Kester, the whistle-blower who filed a lawsuit under the False Claims Act. The False Claims Act permits the Government to recover up to three times the amount of damages incurred by the United States, plus civil penalties ranging from $5,500 to $11,000 per violation. Private parties who have knowledge of fraud committed against the Government may file suit on behalf of the Government and share in any recovery. The United States may then intervene and file its own lawsuit for treble damages and penalties, as it did in this case.
Mr. Bharara praised the investigative work of the FBI, HHS-OIG, and the Medicaid Fraud Control Units for New York, Washington, California, and Ohio. He also thanked the Commercial Litigation Branch of the U.S. Department of Justice’s Civil Division in Washington, D.C., including Laurie Oberembt, and the Office of Counsel to the Inspector General of HHS, including Mary Riordan and Geeta Kaveti, for their critical assistance in this case.
The case is being handled by the Office’s Civil Frauds Unit. Mr. Bharara established the Civil Frauds Unit in March 2010 to bring renewed focus and additional resources to combating healthcare and other types of frauds. Assistant U.S. Attorneys Li Yu, Rebecca C. Martin, David J. Kennedy, Jeffrey K. Powell, and Peter Aronoff are in charge of the case, and Assistant U.S. Attorney Alexander J. Wilson of the Money Laundering and Asset Forfeiture Unit is responsible for the forfeiture aspects of the case.
Man with Prior Convictions for Stealing Mail Sentenced Again for Mail TheftRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a man with prior federal convictions for stealing mail was again sentenced in federal court today for stealing mail, following a police chase from a bank where he was attempting to cash a fraudulent check.
Ronald L. Hines, also known as Ronald Hinds, 64, pleaded guilty to stealing mail and was sentenced by U.S. District Judge Beth Phillips to two years and six months in federal prison without parole. Today’s sentence must be served consecutively to a two-year sentence Hines received upon the revocation of his supervised release. The court also ordered Hines to pay $8,504 in restitution.
By pleading guilty today, Hines admitted that he stole outgoing mail from rural mailboxes in the Kansas City metropolitan area in both Missouri and Kansas in June 2014. Hines stole mail from at least two victims in Platte City, Mo., and at least three victims in Shawnee, Kan.
Hines used the stolen mail to write or cash $8,504 in fraudulent checks. Not all of the fraudulent checks were successfully cashed.
On June 28, 2014, Hines attempted to pass a fraudulent check at US Bank in Shawnee, Kan. Hines fled the bank when the police arrived. He led police officer on a car chase that ended when Hines’ car struck a curb and a utility pole. Hines was arrested for forgery and fleeing a law enforcement officer. His vehicle was searched and several items were recovered, including checks stolen from the mail.
Hines was interviewed on the day of his arrest by officers of the Overland Park, Kan., Police Department. He admitted his involvement in the mail theft/bank fraud scheme. Hines also admitted he used his previous criminal connections to access books of blank stolen checks or in some cases he would trade drugs and money for blank books of checks.
Hines has prior federal convictions in the Western District of Missouri for stealing mail and bank fraud in 1997 and again in 2009. Hines was still under supervised release following his five-year sentence for the 2009 convictions when he committed the thefts in this case. Hines also has a prior state conviction for stealing mail in 1977.
This case was prosecuted by Assistant U.S. Attorney Jane Pansing Brown. It was investigated by the U.S. Postal Inspection Service.
Macy Man Sentenced for Negligent Child AbuseRead the Press Release
United States Attorney Deborah R. Gilg announced today that Victor Ray Miller, age 24, Macy, Nebraska, was sentenced for his conviction for negligent child abuse. Senior United States Judge Joseph F. Bataillon sentenced Miller to serve a term of probation of five years. While on probation, Miller will be required to complete a residential program at the Nebraska Urban Indian Health Coalition in Omaha, Nebraska. He was further ordered to perform community service of 20 hours per week for any week that he remains unemployed.
On October 27, 2015, Miller was minding his 14 month old daughter at his home in Macy, Nebraska. Miller had injected some methamphetamine but left a baggie containing other methamphetamine on a stand within reach of his daughter. Miller left his daughter alone while he went to take a shower, and when he came back, he found that his daughter had ingested the methamphetamine.
The child was taken to the Indian Health Service Hospital in Winnebago, but was transferred to St. Luke’s Hospital in Sioux City and then on to Children’s Hospital in Omaha. The child initially was highly agitated and inconsolable and her EKG showed tachycardia. She was treated with a medication regimen recommended by the National Poison Control Center and was released from the hospital three days later.
This case was investigated by the Federal Bureau of Investigation.
MS-13 Member Pleads Guilty to Racketeering Conspiracy Including a Murder and Attempted MurderRead the Press Release
Greenbelt, Maryland – Aldair Garcia-Miranda, a/k/a “Callado” and “Poseido,” age 21, of Wheaton, Maryland, pleaded guilty today to conspiracy to participate in a racketeering enterprise known as La Mara Salvatrucha, or MS-13, including a murder; attempted murder in aid of racketeering; and carrying, using, brandishing, and discharging a firearm during a crime of violence.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Andre Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Chief Mark A. Magaw of the Prince George’s County Police Department; Prince George’s County State’s Attorney Angela D. Alsobrooks; Chief Douglas Holland of the Hyattsville Police Department; Chief Edward G. Hargis of the Frederick Police Department; Frederick County State’s Attorney J. Charles Smith; Chief J. Thomas Manger of the Montgomery County Police Department; and Montgomery County State’s Attorney John McCarthy.
MS-13 is a national and international gang composed primarily of immigrants or descendants from El Salvador. Branches or “cliques” of MS-13, one of the largest street gangs in the United States, operate throughout Prince George’s County and Montgomery County, Maryland. MS-13 members are required to commit acts of violence both to maintain membership and discipline within the gang and against rival gangs.
According to his plea agreement and court documents, from 2013 through at least 2014, Garcia-Miranda was a member of the Normandie clique of MS-13. Garcia-Miranda and MS-13 members committed crimes to further the interests of the gang, including murder, assault, robbery, extortion by threat of violence, obstruction of justice, witness tampering, and witness retaliation.
Garcia-Miranda admitted that on November 30, 2013, he and another MS-13 member traveled to Frederick, Maryland, in order kill a person who had fled there from El Salvador when MS-13 in El Salvador had issued an order to kill that person. Garcia-Miranda and the other MS-13 member had in their possession a .380 caliber handgun that belonged to the Normandie clique. An MS-13 member who had lived in Frederick and was familiar with the victim from El Salvador, communicated with the victim and lured him to a wooded area where Garcia-Miranda and the other MS-13 member met them. The victim was killed after the MS-13 member from Frederick shot the victim with the Normandie clique’s gun and Garcia-Miranda and the other MS-13 member stabbed the victim multiple times. A .380 caliber bullet that was recovered from the victim during the autopsy matched a bullet recovered at the scene of a November 11, 2012 murder in the Hyattsville, Maryland, area.
Garcia-Miranda also admitted that on July 30, 2014, he and two other MS-13 members approached three people walking in the area of 30th Avenue in Hyattsville, Maryland. Garcia-Miranda and other MS-13 members had traveled to that area with guns to search for and shoot suspected rival gang members who had harassed and tried to steal the bicycle of a person who was a friend of MS-13. Garcia-Miranda and an MS-13 associate, each armed with a .380 caliber handgun, fired multiple shots at the three victims, striking one victim seven times and another victim once. Five shell casings collected at the scene were fired from the same gun that fired the casings recovered at other crime scenes, including murders in Hyattsville on November 11, 2012 and February 28, 2013.
Garcia-Miranda faces a maximum sentence of life in prison for the racketeering conspiracy because it included a murder; a maximum of ten years in prison for attempted murder in aid of racketeering; and a mandatory minimum of 10 years and up to life in prison, consecutive to any other sentence, for using, carrying, brandishing and discharging a firearm during a crime of violence. U.S. District Judge Peter J. Messitte has scheduled sentencing for February 24, 2016, at 9:30 a.m.
United States Attorney Rod J. Rosenstein commended the HSI Baltimore, Prince George’s County Police Department, Frederick Police Department, Hyattsville Police Department, Montgomery County Police Department, Prince George’s County State’s Attorney’s Office and its Strategic Investigations Unit, Frederick County State’s Attorney’s Office and Montgomery County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein also recognized the Prince George’s County Sheriff’s Office, Prince George’s County Department of Corrections, HSI Baltimore’s Operation Community Shield Task Force, and the Maryland Department of Corrections Intelligence Unit for their assistance. Mr. Rosenstein thanked Assistant United States Attorneys William D. Moomau and Lindsay Eyler Kaplan, who are prosecuting this case.
Local Businessman and Associate Indicted on Fraud and Money Laundering ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that a federal grand jury has returned a 19 count indictment charging Frank R. Parlato, Jr., 60, and Chitra Selvaraj, 41, with a conspiracy to defraud the United States and certain members of the public, to obstruct the function of the Internal Revenue Service, wire fraud and wire fraud conspiracy, money laundering, and corrupt interference with the administration of the IRS laws. The charges carry a maximum penalty of 20 years in prison and a $250,000 fine.Assistant U.S. Attorneys Anthony M. Bruce and Elizabeth R. Moellering, who are handling the case, stated that according to the indictment, the defendants stand accused of orchestrating a scheme to defraud the Internal Revenue Service and others. The scheme involved more than 15 shell companies, 50 bank accounts, and multiple attorney trust accounts.
The defendants will be arraigned on November 23, 2015 at 3:30 p.m. before U.S. Magistrate Judge Jeremiah J. McCarthy.
The indictment is the culmination of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent in Charge Adam S. Cohen and the Internal Revenue Service, Criminal Investigation Division, under the direction of Special Agent-In-Charge Shantelle P. Kitchen.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Lehigh County Couple Convicted in Scheme to Defraud NASARead the Press Release
A federal jury today convicted Yujie Ding, 53, and Yuliya Zotova, 41, of Center Valley, Pennsylvania, of six counts of wire fraud for defrauding NASA’s Small Business Innovation Research (SBIR) Program. U.S. District Court Judge Harvey Bartle III scheduled sentencing hearings for March 2, 2016.
In August 2009 and July 2010, Ding and Zotova submitted proposals to NASA, seeking funding for scientific research. The defendants’ proposals claimed that Zotova would serve as principal investigator for research that would be conducted at their business, ArkLight. The defendants’ proposals claimed further that Arklight would subcontract some of the work to Lehigh University, where Ding was employed. Instead, the defendants used ArkLight as a front to funnel federal grant money to themselves for research performed by students and others working in Ding’s university lab who were not supervised by Zotova. The defendants sent invoices to NASA, via interstate electronic transmissions, for research in which the jury found that ArkLight had not participated.
The case was investigated by the National Aeronautics and Space Administration's Office of Inspector General, the Defense Criminal Investigative Service, and the United States Air Force Office of Special Investigations. It is being prosecuted by Assistant United States Attorneys Elizabeth F. Abrams and Gregory B. David.
Leader of North Shore Heroin Trafficking Ring Sentenced to PrisonRead the Press Release
BOSTON – Jason Melchionda, 35, of Chelsea, was sentenced by U.S. District Court Judge F. Dennis Saylor to 108 months in prison and four years of supervised release. In May 2015, Melchionda pleaded guilty to distributing over 1 kilogram of heroin between March 2013 and August 2013.
In 2013, Melchionda was the leader of a criminal conspiracy responsible for distributing heroin in the North Shore. In March 2013, federal agents began investigating members of the criminal conspiracy and intercepted telephone calls to and from several cellphones used by members of the group. Agents determined that Melchionda was the leader, and that the group had at least two sources of supply for heroin. Through intercepted telephone calls and surveillance, agents also determined that Melchionda directed others to distribute heroin on his behalf to at least 30 individuals in the North Shore area.
In August 2015, co-defendant Senny Arias, one of Melchionda’s heroin suppliers, was sentenced to 66 months in prison following a one week jury trial.
This case was brought as part of the federal response to the growing opioid abuse epidemic in Massachusetts and other New England states. Heroin is highly addictive, and users can quickly develop a tolerance, prompting them to seek higher potencies and greater quantities of the narcotic. Between 2000 and 2014, opioid overdose deaths have more than tripled with a spike in recent years in Massachusetts.
United States Attorney Carmen M. Ortiz and Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division, made the announcement today. The case was investigated with the assistance of the Revere, Chelsea, Methuen and Saugus Police Departments. The case was prosecuted by Assistant U.S. Attorneys Carlos A. López, Theodore B. Heinrich, and David J. D’Addio of Ortiz’s Criminal Division.
Leader of Little Haiti Based Crack Cocaine Trafficking and Identity Theft Tax Fraud Organization Sentenced to 22 Years’ ImprisonmentRead the Press Release
A leader of a Little Haiti based drug trafficking organization and identity theft tax fraud scheme was sentenced to 22 years’ imprisonment by Senior United States District Judge Donald L. Graham.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Carlos A. Canino, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office, and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.
Espere Desmond Pierre, 33, of Miami, previously pled guilty to conspiracy to possess with intent to distribute over two hundred eighty (280) grams of crack cocaine, in violation of Title 21, United States Code, Sections 846 and 841(b)(1)(A); possession with intent to distribute over 28 grams of crack cocaine, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(B); possession of a firearm in furtherance of a drug-trafficking crime, in violation of Title 18, United States Code, Section 924(c)(1)(A); conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 1349; and aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1).
The Court sentenced Pierre to be imprisoned for a total term of 264 months (22 years). The Court further ordered that Pierre serve a five year term of supervised release, following his release from custody, and that Pierre pay a special assessment of $500.
According to court documents, Pierre and co-defendant Markentz Blanc, 34, of Miami, conspired as supervisors and directors of a drug-trafficking organization that distributed cocaine base (commonly referred to as “crack” cocaine) through multiple storage and retail distribution locations in the Little Haiti area of Miami-Dade County. Pierre and Blanc also conspired to obtain the personal identifying information (PII), including the names, dates of birth, and Social Security numbers, of various persons. Pierre and Blanc then used the unauthorized information to submit fraudulent tax returns in order to claim income tax refunds to which they were not entitled.
Earlier this year, Blanc and another co-defendant, Willis Maxi, 33, of Miami, were each convicted following a jury trial and sentenced to 300 and 312 months’ imprisonment, respectively. Five additional co-defendants – including Meluin Jermaine Braynen, 21, Wisvelt Voltaire, 33, Alex Bermudez, 26, Sanders Bermudez, 23, and Kervens Lalanne, 25, all of Miami, previously pled guilty and were sentenced to terms of imprisonment ranging from 18 to 188 months.
Through its Violence Reduction Partnership, the U.S. Attorney’s Office and its federal and local law enforcement allies have sought to dismantle the most violent criminal networks in various neighborhoods in the Southern District of Florida, while simultaneously working with community leaders and concerned citizens to mentor at-risk youth, provide job training, coordinate social services and support the reintegration of ex-offenders (returning citizens) to the community.
Mr. Ferrer thanked FBI, ATF, IRS-CI, the Miami-Dade Police Department, and the City of Miami Police Department for their work on this case. The case is being prosecuted by Assistant U.S. Attorneys Seth M. Schlessinger and Olivia S. Choe.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. 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.
Las Vegas Scammer Sentenced for Timeshare Resale FraudRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that Patrick A. Nosack, 34, of Henderson, Nevada, was sentenced yesterday afternoon to thirty months in federal prison in connection with his role in a multi-million dollar timeshare resale scam that operated out of Las Vegas. Nosack was also ordered to pay restitution to his victims and serve five years of supervised release when he is released from federal prison.
The sentence arose out of a telemarketing scam which operated in Las Vegas, Nevada. The scheme bilked over 3,000 victims of approximately 10 million dollars. Consumers were victimized in all fifty states, the District of Columbia and Puerto Rico, all ten Canadian provinces and the Northwest Territory of Canada, as well as Australia, Israel and the United Kingdom. There were at least twelve victims in nine of the thirty-eight counties comprising the Southern District of Illinois.
Evidence revealed that Nosack was a telemarketer at a telemarketing company, called Vacation Max, which operated a timeshare resale scam. The company purported to be a Georgia corporation located in Delaware, but actually operated in Las Vegas, Nevada in office space leased in the name of "Hot Girls Entertainment." The company falsely represented that they had found corporate buyers interested in acquiring blocks of timeshare units including the consumer's timeshare unit for purported business and tax purposes. The company solicited fees of up to several thousand dollars from each timeshare owner in purported pre-paid closing costs and related expenses. The purported sales did not occur and Vacation Max did not successfully sell any consumer’s timeshare interest except a relatively small number at fire sale prices.
This prosecution is one of nearly 100 timeshare resale fraud prosecutions brought in the Southern District of Illinois over the past four years. The case is part of an ongoing investigation by the St. Louis Field Office of the Chicago Division of the United States Postal Inspection Service. The prosecution of this case was handled by Assistant United States Attorneys William E. Coonan and Michael Hallock.
Kodiak Man Sentenced to 5 Years in Prison for Drug TraffickingRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that a Kodiak man was sentenced in federal court in Anchorage for one count of trafficking narcotics. Teodoro Berdan, 55, of Kodiak, Alaska, had previously pled guilty on July 20, 2015, to one count of possession with intent to distribute over 100 grams of a mixture and substance containing methamphetamine.
Berdan was sentenced today by United States District Court Judge Sharon L. Gleason, to 60 months in prison.
According to Assistant U.S. Attorney Bryan Schroder, in early February 2015, the U.S. Postal Inspection Service intercepted a package addressed to Teodoro Berdan in Kodiak. The package contained over 100 grams of methamphetamine. The Postal Inspectors replaced the bulk of the methamphetamine with a small, representative sample of meth, and a larger amount of a sham substance. The Postal Service then delivered the package to the residence in Kodiak where Berdan rented a room. Soon after the package was delivered, Postal Inspectors, supported by FBI agents and officers from the Kodiak Police Department, entered Berdan’s room and discovered him hiding the now-open box of drugs. Berdan later admitted he intended to distribute the drugs.
Ms. Loeffler commends the U.S. Postal Inspection Service, the FBI, and the Kodiak Police Department for the investigation of this case. Seattle Division Inspector in Charge, Anthony Galetti, of the U.S. Postal Inspection Service stated, “Postal Inspectors worked closely with the U.S. Attorney’s Office and our partners in law enforcement in Alaska and Guam on this investigation and will continue to vigorously protect the U.S. Mail and U.S. Postal Service employees and customers against all forms of criminal attack and misuse.”
Jury Convicts Former City of Houston Doctor of Health Care FraudRead the Press Release
HOUSTON – A jury has returned a guilty verdict against a former staff physician for the City of Houston of 14 counts of health care fraud in a $1 million health care fraud scheme, announced U.S. Attorney Kenneth Magidson. Jocelyn Pyles, M.D., 58, was convicted today following a 3 ½ day trial in Houston.
The jury heard that Pyles worked full-time for the City of Houston and had entered into various agreements with the owner of Elite P. Medical Clinic that resulted in $1 million in health care claims being billed under her Medicare and Medicaid provider numbers.
The jury found Pyles guilty of 14 individual health care fraud counts that related to physician office visits and physical therapy services that she did not provide because she was actually working for the City of Houston at the time. In actuality, an unlicensed foreign medical graduate, who did not have a license, saw all the patients at the clinic alone. He was instructed not to sign patient progress notes at those visits. Pyles would come to the Houston location of the clinic after hours, when there were no patients present and then sign the treatment notes to make it appear she saw the patients when she did not.
The jury also heard that Pyles occasionally went to the Port Arthur location of the Elite clinic on Fridays during business hours, but still did not see patients. Again, the unlicensed foreign medical graduate saw the patients alone.
That individual testified at trial, identifying his handwriting and explaining what he did with the patients. The owner of the clinic, who had previously pleaded guilty for her role in the scheme testified that Pyles received $135,000 from her during the criminal activity.
Pyles is scheduled for sentencing on Feb. 1, 2016, at which time she faces up to 10 years in prison and a possible $250,000 fine on each count of conviction.
The conviction was the result of a joint investigation conducted by agents from the Department of Health and Humans Services – Office of Inspector General, FBI, and the Texas Attorney General’s Office - Medicaid Fraud Control Unit with assistance of Medicare Zone Program Integrity Contractor, Health Integrity LLC. Assistant U.S. Attorney Julie Redlinger and Special Assistant U.S. Attorney Rodolfo Ramirez prosecuted the case.
Joint Statement on the Release of EvidenceRead the Press Release
Joint Statement from the United States Attorney for the District of Minnesota Andrew M. Luger, Assistant Attorney General for Civil Rights Vanita Gupta and Special Agent in Charge of the FBI Minneapolis Division Richard T. Thornton:
“The U.S. Attorney’s Office for the District of Minnesota, Department of Justice’s Civil Rights Division and FBI Minneapolis Division are conducting an independent investigation into whether the death of Jamar Clark violated any federal criminal statutes. As is our practice in conducting investigations into allegations of constitutional violations committed under color of law, experienced federal prosecutors and FBI agents are conducting a thorough review of all evidence in this case. That includes interviewing relevant witnesses, reviewing relevant information, and pursuing leads. We are doing so in a manner that ensures the integrity of the investigation and the reliability of the information obtained.
“Release of any evidence, including any video, during an ongoing investigation would be extremely detrimental to the investigation. We are conducting our investigation in a fair, thorough, and expeditious manner.”Jackson Man Pleads Guilty to Possession of a Firearm by a Convicted FelonRead the Press Release
Jackson, Miss. – Delace Johnson, 27, of Jackson, entered a guilty plea on November 19, 2015, before Senior U.S. District Judge Tom S. Lee, to possession of a firearm after having previously been convicted of a felony, U.S. Attorney Gregory K. Davis announced.
On July 31, 2015, officers with the Mississippi Department of Corrections searched a house located on Oak Grove Lane in Jackson and located a shotgun which Johnson admitted he purchased off-the-street shortly after having been released from prison. His previous felony conviction was in Hinds County Circuit Court for house burglary.
Johnson was indicted as part of the Jackson Violent Crime Initiative, a joint initiative between federal, state and local law enforcement agencies worked together to reduce violent crime in the city of Jackson and to remove violent offenders from the streets of this community. Jackson Violent Crime Initiative partners include the Jackson Police Department, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Federal Bureau of Investigations (FBI), Drug Enforcement Administration (DEA), U.S. Marshals Service, Homeland Security Investigations, U.S. Postal Inspection Service, and U.S. Secret Service.
Johnson will be sentenced on February 4, 2016, and faces a maximum sentence of 10 years in federal prison and a $250,000.00 fine.
This case was investigated by the Bureau of ATF and the Mississippi Department of Corrections. It was prosecuted by Assistant U.S. Attorney Patrick Lemon.
Irondale Man Gets Seven Years in Federal Prison for Identity Theft and Stealing $1.7 Million in U.S. Treasury ChecksRead the Press Release
BIRMINGHAM – A federal judge today sentenced an Irondale man to seven years in prison for identity theft and stealing about $1.7 million in U.S. Treasury checks, announced U.S. Attorney Joyce White Vance, FBI Special Agent in Charge Roger C. Stanton and Internal Revenue Service Criminal Investigation Special Agent in Charge Veronica Hyman-Pillot.
CRAIG MONTRAIL EATMON, 47, pleaded guilty late last year to one count each of theft of government funds and aggravated identity theft. U.S. District Judge Karon O. Bowdre sentenced Eatmon to five years in prison for the theft of treasury checks and two years for the identity theft. The sentence for aggravated identity theft must be served after completion of any other sentence imposed in the case. The judge also ordered Eatmon to pay $1.02 million in restitution to the U.S. Treasury, and to forfeit $442,127 to the government as proceeds of illegal activity.
“Mr. Eatmon deposited 44 fraudulent or stolen U.S. Treasury checks in his bank account within less than a year to steal more than $1 million from the government and delay rightful tax returns to legitimate tax payers,” Vance said. “He also stole an individual’s identity and created a bank account in the victim’s name so he could deposit a $151,000 stolen tax-refund check and access the money. The FBI, IRS-CI and the U.S. Attorney’s Office have shut off his criminal activity and, today, the prison door swings shut on Mr. Eatmon for a long time.”
“The FBI will continue to work cooperatively to investigate stolen identity tax refund fraud,” Stanton said. “These crimes not only victimize law-abiding individuals, but all honest U.S. taxpayers who ultimately foot the bill for this stolen revenue.”
“Craig Eatmon perpetrated a scheme that was fueled by greed, deceit, dishonesty and theft,” Hyman-Pillot said. “He made a profit at the expense of the United States Treasury and other taxpayers. However, it didn’t pay dividends. The penalty for his deception and theft is imprisonment.”
Eatmon has two prior convictions in federal court in the Northern District of Alabama for bank fraud, unauthorized use of an access device and fraud with identification documents. He also pleaded guilty to conspiracy to possess with intent to distribute cocaine in a second case before Judge Bowdre. She sentenced him today to five years in prison on that case, with the sentence to be served at the same time as his sentence for theft of government funds.
According to documents filed with the court, Eatmon conducted the government funds and identity thefts as follows:
He was the sole signatory on accounts for Executive Investors Group at Wells Fargo Bank. Between May 2011 and July 2012, about $1.7 million in U.S. Treasury checks were deposited into the EIG accounts. Wells Fargo seized $633,573 of that money in October 2011 and returned it to the treasury. The deposited checks were a combination of tax refund checks issued as a result of false federal income tax returns that had been filed, or legitimate but stolen refund checks.
Eatmon also sold two treasury checks to an undercover FBI agent. One of the checks was for $9,001 and the other for $11,330 and both were made payable to individuals other than Eatmon.
Eatmon obtained a $151,000 tax refund check made payable to a South Florida resident. He enlisted the help of a Wells Fargo employee to open an account in the name of an existing bank customer whose last name matched the name on the check. Eatmon had the check deposited into the new account and, after it cleared, either he or someone acting on his behalf, withdrew $87,240 from the account.
The FBI, IRS-CI and the Etowah County Drug Enforcement Unit investigated the cases, which Assistant U.S. Attorneys Davis Barlow and John B. Felton prosecuted.
Investment Advisor Sentenced to 20 Years in PrisonRead the Press Release
ALBANY, NEW YORK – Scott Valente, age 58, of East Greenbush, New York, was sentenced today to 20 years in prison, and ordered to pay about $8.2 million in restitution, after being convicted in May of securities fraud, mail fraud, and obstructing and impeding the internal revenue laws.
The announcement was made by United States Attorney Richard S. Hartunian; Shantelle P. Kitchen, Special Agent-in-Charge of the Internal Revenue Service-Criminal Investigation’s New York Field Office; and Andrew W. Vale, Special Agent-in-Charge of the Albany Division of the Federal Bureau of Investigation.
United States District Judge Gary L. Sharpe also ordered Valente, formerly of Schenectady, to serve 3 years of supervised release following his release from prison. The Securities and Exchange Commission (SEC) has also filed a civil enforcement action against Valente and his company The ELIV Group LLC in the United States District Court for the Southern District of New York.
“What Scott Valente did was terrible, both in terms of the financial ruin he caused and the emotional anguish he inflicted on his victims,” stated U.S. Attorney Richard S. Hartunian. “He stole several million dollars, improperly invested millions more, and lied to people who put their trust in him and gave him their life savings. These people are devastated. My Office and our agency partners are working hard to recoup as much money as possible for them. And as we have done for many years, we will continue to investigate and prosecute investment advisors who steal from their clients.”
“Today, Mr. Valente was held accountable for the harm he inflicted on the many investors who trusted him,” said Special Agent-in-Charge Shantelle P. Kitchen of IRS-Criminal Investigation. “Ultimately, this investigation succeeded in preventing Mr. Valente’s victims from sustaining additional losses and protecting potential investors from harm. Additionally, through his representations that he and ELIV were authorized to accept, hold and manage IRA accounts, Mr. Valente made the Internal Revenue Service an unwilling part of his investment fraud scheme. He subsequently learned how seriously IRS-Criminal Investigation takes attempts to impede and obstruct the tax laws.”
“This kind of fraud is an insidious act that involves not only criminality but a willingness to prey on others for personal gain,” said FBI Special Agent in Charge Andrew W. Vale. “The FBI is committed to working with its law enforcement partners to ensure people like Mr. Valente are held accountable for their misdeeds. The FBI is pleased to see justice for Mr. Valente’s victims.”
Valente, working out of Albany, Schenectady and Warwick, New York, operated an investment fraud scheme that began in December 2010 and ended on June 16, 2014.
Through his investment company The ELIV Group, LLC, Valente received more than $10.6 million from more than 100 individual investors, many of them residing in Upstate New York. He told them that he had achieved annual investment returns of 36.38%, 48.27%, 44.56% and 45.11% for the years 2010 through 2013, respectively. In fact, Valente lost money in each of those years.
Valente also took about $2.2 million in unauthorized management fees, which he used to enrich himself through cash withdrawals totaling $230,000, personal credit card payments totaling $443,000, and the purchases of real estate (including a $117,000 condominium in Vermont), $424,000 in home improvements, $35,000 worth of jewelry, and $20,000 worth of liquor. In addition to taking $2.2 million, Valente made substantial investments in non-public companies that will be difficult to liquidate, contrary to what he told investors he would do with their money.
Valente also falsely represented to more than 30 ELIV investors that he or his company were authorized to accept, hold and manage Individual Retirement Accounts (IRA), which get preferential treatment under U.S. tax law. In fact, neither Valente nor ELIV was authorized by the IRS to accept, establish or maintain IRA accounts. In an effort to obstruct and impede the IRS by preventing the IRS from learning of his unauthorized acceptance, holding and management of IRA accounts, Valente altered ELIV investment statements to make it appear as though ELIV had properly received certain investors’ IRA rollover investments, that ELIV was holding the investments as an IRA, and that there should be no taxable distributions to the ELIV investors.
ELIV ceased operations on June 16, 2014, when the SEC, in a separate civil proceeding, obtained a preliminary injunction enjoining ELIV’s operations and freezing its assets.
This case was investigated by Internal Revenue Service-Criminal Investigation and the Federal Bureau of Investigation, and was prosecuted by Assistant United States Attorney Rick Belliss.
Information: Federal Court ArraignmentsRead the Press Release
The United States Attorney’s Office announced that those persons listed below were arraigned before the U.S. Magistrate and the indictments handed down by the Grand Jury unsealed.
Appearing before U.S. Magistrate Ostby in Billings, on November 19, 2015 and entering pleas of Not Guilty were:
- CLAY DOUGLAS SIEMSEN, a 55-year-old resident of Lockwood, appeared on charges of conspiracy to possess with intent to distribute and to distribute methamphetamine, possession with intent to distribute methamphetamine, and distribution of methamphetamine. If convicted of the most serious charges contained in the indictment, SIEMSEN faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by the Federal Bureau of Investigation Task Force. PACER Case Reference. 15-138
- NOEL THOMAS WHITEMAN, a 38-year-old resident of Lodge Grass, appeared on charges of failure to register as a sexual offender. If convicted of the charge contained in the indictment, WHITEMAN faces 10 years in prison, $250,000 in fines and lifetime supervised release. The case was investigated by the United States Marshals Service. PACER Case Reference. 15-135
Appearing before U.S. Magistrate Ostby in Billings, on November 17, 2015 and entering pleas of Not Guilty were:
- RACHAEL RUIZ, a 30-year-old resident of Kalispell, appeared on charges of conspiracy to possess with intent to distribute methamphetamine and possession with intent to distribute methamphetamine. If convicted of the most serious charge contained in the indictment, RUIZ faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by the Federal Bureau of Investigation and the Drug Enforcement Administration. PACER Case Reference. 15-133
Appearing before U.S. Magistrate Ostby in Billings, on November 13, 2015 and entering pleas of Not Guilty were:
- BRUCE ROBERT LEWIS, JR., a 46-year-old resident of Pasadena, Texas, appeared on charges of felon in possession of a firearm. If convicted of the charge contained in the indictment, LEWIS faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. PACER Case Reference. 15-106
Appearing before U.S. Magistrate Johnston in Great Falls, on November 12, 2015 and entering pleas of Not Guilty were:
- SAUL VALENCIA, a 39-year-old resident of Mexico, appeared on charges of conspiracy to possess with intent to distribute and to distribute methamphetamine and possession with intent to distribute methamphetamine. If convicted of the most serious charge contained in the indictment, VALENCIA faces 40 years in prison, $5,000,000 in fines and 4 years supervised release. The case was investigated by the Russell Country Drug Task Force and the Havre Tri-Agency Task Force. PACER Case Reference. 15-78
Appearing before U.S. Magistrate Lynch in Missoula, on November 12, 2015 and entering pleas of Not Guilty were:
- MATTHEW ERIC BOUDREAU, a 21-year-old resident of Victor, appeared on charges of theft from a federal firearms licensee, possession of stolen firearms, and possession of a firearm not registered in the national firearms registration and transfer record. If convicted of the most serious charge contained in the indictment, BOUDREAU faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Ravalli County Sheriff’s Office. PACER Case Reference. 15-26
Appearing before U.S. Magistrate Lynch in Missoula, on November 9, 2015 and entering pleas of Not Guilty were:
- RICHARD WAYNE STROH, a 35-year-old resident of Missoula, appeared on charges of conspiracy to distribute methamphetamine and possession with intent to distribute methamphetamine. If convicted of the most serious charge contained in the indictment, STROH faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by the Federal Bureau of Investigation and the Montana Regional Violent Crime Task Force. PACER Case Reference. 15-31
Appearing before U.S. Magistrate Johnston in Great Falls, on November 2, 2015 and entering pleas of Not Guilty were:
- JOSEPH DEAN LEE, a 27-year-old resident of Wolf Point, appeared on charges of aggravated sexual abuse, assault with the intent to commit aggravated sexual abuse, and assault with the intent to commit abusive sexual contact. If convicted of the most serious charges contained in the indictment, LEE faces life in prison, $250,000 in fines and lifetime supervised release. The case was investigated by the Federal Bureau of Investigation and the Fort Peck Tribes Department of Law and Justice. PACER Case Reference. 15-63
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system so that you stay current and not miss any important developments in the case.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
Indiana man sentenced to 35 years in prison for producing child pornographyRead the Press Release
WASHINGTON – An Indiana man was sentenced today to 35 years in prison for producing child pornography, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Josh Minkler of the Southern District of Indiana.
Todd Chambers, 28, of Batesville, Indiana, pleaded guilty to nine counts of production of child pornography. U.S. District Judge Tanya Walton Pratt of the Southern District of Indiana presided over the change of plea hearing and sentencing.
In connection with his guilty plea, Chambers admitted that he produced and distributed via the Internet a series of images of child exploitation. Metadata in the images showed that Chambers produced them over the course of three months. In addition to these images, Chambers possessed thousands of other images of child exploitation on his digital camera, laptop computer, cell phone and other electronic devices.
The FBI and the Indiana State Police investigated the case, with assistance from the Batesville Police Department. Trial Attorney Leslie Williams Fisher of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Steve DeBrota of the Southern District of Indiana prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Indiana Man Sentenced to 35 Years in Prison for Producing Child PornographyRead the Press Release
An Indiana man was sentenced today to 35 years in prison for producing child pornography, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Josh Minkler of the Southern District of Indiana.
Todd Chambers, 28, of Batesville, Indiana, pleaded guilty to nine counts of production of child pornography. U.S. District Judge Tanya Walton Pratt of the Southern District of Indiana presided over the change of plea hearing and sentencing.
In connection with his guilty plea, Chambers admitted that he produced and distributed via the Internet a series of images of child exploitation. Metadata in the images showed that Chambers produced them over the course of three months. In addition to these images, Chambers possessed thousands of other images of child exploitation on his digital camera, laptop computer, cell phone and other electronic devices.
The FBI and the Indiana State Police investigated the case, with assistance from the Batesville Police Department. Trial Attorney Leslie Williams Fisher of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Steve DeBrota of the Southern District of Indiana prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
In Second Phase of Investigation, Law Enforcement Arrests 52 Additional Members and Associates of Various White Supremacist OrganizationsRead the Press Release
DALLAS — Following a law enforcement operation led by the Texas Department of Public Safety Criminal Investigations Division (DPS-CID) and the Dallas Police Department Criminal Intelligence Unit, 54 individuals, members and associates of various white supremacist organizations, have been charged with federal offenses stemming from their respective roles in a drug distribution conspiracy that operated in North Texas and elsewhere from January 2013 to November 2015. U.S. Attorney John Parker of the Northern District of Texas made the announcement today. Two of the 54 defendants remain fugitives.
This second phase of the investigation follows a related operation in 2014 in which 37 members and associates of various white supremacist organizations were arrested and charged with similar federal offenses, stemming from their role in a methamphetamine distribution conspiracy. All of those defendants were convicted; one remains a fugitive.
Defendants, all Texas residents, who are charged in this superseding indictment and who are in custody include:
Ramon Aguilar, III, aka “Nelson,” 26, of Dallas
Christopher Alexander, aka “Bear,” 43, of Dallas
William Lee Benham, 32, of Mesquite
Eric Scott Benson, aka “ESB,” 29, of Mesquite
Ronnie Mikel Brown, 39, of Dallas
Jonas Carrera, 36, of Dallas
Hugo Ivan Castaneda, aka “Takua,” 25, of Dallas
John Anthony Chavez Jr., aka “BJ,” 27, of Dallas
Justo Salvador Chavez Jr., aka “Junior,” 39, of Dallas
Micah Torrence Dees, 26, of Sherman
Abraham Dimas Jr., 41, of Dallas
Tina Wynette Easley, aka “Tina Wynette Fields” aka “Big Tina,” 43, of Seagoville
Crissy Lynn Evans, 28, of Richardson
Taylor Maxlynn Fletcher, 26, of Point
Joe Lee Foard, Jr., 46, of Denison
Michael William Getsinger, 30, of Rockwall
Alejandro Gonzalez, 20, of Dallas
Quincy John Goodson, aka “Kidd,” 34, of Scurry
Michael Thor Guinn, 28, of Jacksonville
Tommy Dare Hancock, aka “Big Tom,” 49, of Beaumont
David Lesley Holt, 54, of Mesquite
David Wayne Holt, 28, of Dallas
Brennan Nicole House, 22, of Sherman
Desirae Ann Houser, 24, of Princeton
Beau James Jarnagin, aka “Beau Jamey,” 39, of Dallas
Jeff Jeremy Johnston, aka “Slowpoke,” 42, of Mesquite
Kory Wade Kloecker, aka “Crawl,” 32, of Mesquite
Jimmy David Lance, 54, of Dallas
Samantha Ladell Largent, 25, of Cumby
Blake Allen Long-Rockey, 27, of Dallas
Ricardo Garcia Medina, 31, of Dallas
Benjamin Matthew Melton, 31, of Mesquite
Craig Don Mueller, 34, of Dallas
Brian Casey Mullins, 35, of Rockwall
Stacy Wayne Myers, 48, of Dallas
James Marshall Nation, 39, of Cumby
Wendy Renee Neal, 37, of Princeton
Mackenzie Nelson, 31, of Greenville
Raymond Anthony Nichols, aka “Ant,” 35, of Mesquite
Shanna Lynn Palmer, 32, of Seagoville
Christian Perez, 23, of Dallas
Francisco Manuel Radamez-Nava, aka “Ghost,” 31, of Mesquite
Jorge Ramirez, aka “Gucci,” “Jorge Ramirez-Martinez,” and “Jorge Alejandro” 31, of Mesquite
Bruce Chance Rash, aka “Chaos,” 37, of Dallas
John James Rumfield, 34, of Dallas
Jackie Lemonds Segura, 32, of Dallas
Brandon Kyle Smith, 31, of Mineola
Alicia Gale Tambourine, aka “Slimm,” 31, of Balch Springs
Jamie Lynn Tucker, 49, of Dallas
Troy Anthony Wallace, 46, of Mesquite
Roger Wayne Whitworth Jr., aka “Peanut,” 42, of Mesquite
John Fitzgerald Yates, aka “Po Boy,” 51, of Tyler (deceased)
This just-unsealed superseding indictment charges all of the above-listed defendants, with the exception of Benjamin Matthew Melton and Jorge Ramirez, with one count of conspiracy to possess with intent to distribute 500 grams or more of methamphetamine and one substantive count of possession of methamphetamine with the intent to distribute. Ronnie Mikel Brown, Tina Wynette Easley, Michael Thor Guinn, Tommy Dare Hancock, David Wayne Holt, Jeff Jeremy Johnston, and Benjamin Matthew Melton are also each charged with one count of felon in possession of a firearm. Jorge Ramirez is charged with one count of being an illegal alien in possession of a firearm.
According to the superseding indictment, the defendants were members of, associated with, or performed drug transactions with, various white supremacists organizations or individuals including the “Aryan Brotherhood of Texas” (ABT), the “Aryan Circle,” the “White Knights,” and the “Peckerwoods,” and they engaged in a conspiracy to distribute methamphetamine and other illegal narcotics throughout North Texas and elsewhere. Certain defendants used firearms to further their drug trafficking activities.
Despite their differences, the ABT, Aryan Circle, and White Knights gangs, along with the Peckerwoods, often collaborated with each other and with Mexican gangs and cartels for purposes of drug distribution or other illegal ventures. Peckerwood is a term used to describe an individual who, although not a member, shared a white supremacist ideology or aligned his or herself with these white supremacist gangs.
Up to 20 of the above-listed defendants were members or close associates of the ABT. Up to eight were members or close associates of the Aryan Circle. One was a member of the White Knights and one was a Peckerwood. Two were members of the La Familia drug cartel. Some of the defendants had familial relationships, some were engaged in romantic relationships, and some resided together, as outlined in the indictment.
The indictment alleges that from approximately January 2013 to November 2015, the defendants conspired together, and with others, to possess with intent to distribute 500 grams or more of methamphetamine. According to the indictment, the defendants arranged for the acquisition of methamphetamine and its distribution and delivery. They used stash houses or other locations to store the methamphetamine and acted as intermediaries and brokers to negotiate the acquisition, price, delivery and payment for the quantities of methamphetamine.
Each of the co-conspirators was linked to one another either directly or through another co-conspirator. Certain co-conspirators acted as hubs for narcotics trafficking, supplying methamphetamine to numerous other co-conspirators. Throughout the investigation, 40 pounds of methamphetamine and 22 firearms were seized.
A federal 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 each count of the drug trafficking conspiracy is life in federal prison and millions of dollars in fines. The statutory maximum penalty for each substantive count of possession of methamphetamine is 20years in federal prison. The maximum statutory penalty for being a felon in possession of a firearm or for being an illegal alien in possession of a firearm is 10 years in federal prison. The indictment also includes a forfeiture allegation that would require the defendants, upon conviction, to forfeit all real or personal property derived from the proceeds of their offense.
The investigation is being led by the DPS-CID Gang Unit and the Dallas Police Department Criminal Intelligence Unit with assistance from the Garland Police Department Neighborhood Police Officer Unit, the Collin County Sheriff’s Office, the Mesquite, Sherman, Denison and Sulphur Springs Police Departments and U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI).
Assistant U.S. Attorney P. J. Meitl is prosecuting.
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Husband and Wife Indicted for Filing False Retaliatory Liens Against Two Federal Judges and Other Government EmployeesRead the Press Release
A federal grand jury sitting in Eugene, Oregon, returned a superseding indictment yesterday against a couple previously residing in Coquille, Oregon, charging them with one count of conspiracy to file false retaliatory liens and four counts of filing false retaliatory liens against government employees for performing their official duties, Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division announced. The original indictment was returned on March 18.
According to the superseding indictment, Ronald D. Joling and Dorothea Joling were convicted in October 2014 on various criminal charges related to their federal income taxes. While on pretrial release in that case, the Jolings filed false retaliatory liens claiming that multiple federal employees each owed the Jolings $100.003 million. The federal employees against whom these false liens were filed included two federal judges assigned to the criminal tax case, the clerk of the court for the U.S. District Court for the District of Oregon and the Assistant U.S. Attorney who prosecuted the criminal tax case. The liens were publicly filed with the Secretary of State for the state of California.
The Jolings were scheduled to be sentenced in the criminal tax case on April 22, but failed to appear in court. They were fugitives until arrested on Oct. 5, in Flagstaff, Arizona. The Jolings are currently in the custody of the U.S. Marshals Service. Arraignment in the retaliatory lien case is scheduled for Nov. 23, before Judge Michael J. McShane. Sentencing in the criminal tax case is scheduled for Dec. 10, before Chief Judge Ann L. Aiken. If convicted in the retaliatory liens case, the Jolings each face a statutory maximum sentence of 40 years in prison and a $1 million in fines.
An indictment merely alleges that a crime has been committed and a defendant is presumed innocent until proven guilty beyond a reasonable doubt.
This case is being investigated by the Internal Revenue Service–Criminal Investigation, and prosecuted by Senior Litigation Counsel Jen E. Ihlo and Trial Attorney Thomas A. Agnello of the Tax Division.
Hartford Man Sentenced to Federal Prison for Illegally Possessing FirearmRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JOSE SERRANO, 30, of Hartford, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 12 months and one day imprisonment, followed by two years of supervised release, for illegally possessing a firearm.
According to court documents and statements made in court, in February 2015, during an ongoing investigation into drug trafficking activities in Hartford, the Federal Bureau of Investigation (“FBI”) obtained information that an individual, later identified as SERRANO, was seeking to sell a handgun. On February 11, 2015, SERRANO sold a Kel-Tec, Model P-11, 9mm handgun, which was loaded with nine rounds of ammunition, to an individual who was cooperating with law enforcement, in exchange for $750.
SERRANO was arrested at his residence on June 15, 2015. A subsequent search of his residence revealed approximately 300 rounds of assorted .380 and 9mm caliber ammunition, approximately five pounds of “Kisha Kole” synthetic marijuana packages, approximately 4.6 grams of marijuana and $6,523 in cash. Following SERRANO’s arrest, he and his wife forfeited two additional handguns.
In 2007, SERRANO was convicted of a felony offense involving unlawful possession of a handgun. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
SERRANO has been detained since his arrest. On September 3, 2015, he pleaded guilty to one count of possession of a firearm by a convicted felon.
State charges related to the possession of synthetic marijuana are pending against SERRANO.
This case was investigated by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force, which includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The case was prosecuted by Assistant U.S. Attorneys Michael J. Gustafson and Gabriel J. Vidoni.
Harpswell Woman Pleads Guilty to Bank EmbezzlementRead the Press Release
Contact: Michael J. Conley
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Cecile Roux, 38, of Harpswell, Maine, pled guilty today in U.S. District Court to embezzling bank funds.
According to court records, between April 12, 2012 and August 14, 2015, Roux, while serving as the head bank teller at the Bank of Maine in Brunswick, Maine, transferred $107,000 in a series of transactions from a customer’s account into her own account without authority.
Roux faces up to 30 years in prison and a $1,000,000 fine. She will be sentenced after completion of a presentence investigation report by the U.S. Probation Office.The investigation was conducted by the Federal Bureau of Investigation and the Brunswick Police Department.
Hardin County and Grayson County, Kentucky Bank Robbers Sentenced to Prison TermsRead the Press Release
LOUISVILLE, Ky. – A Hardin County, Kentucky, man and a Grayson County, Kentucky, man were sentenced today by Senior Judge Charles R. Simpson III, to multiple years in prison for their roles in the December 23, 2014 robbery of the Westport Bank in Glendale, Kentucky announced United States Attorney John E. Kuhn, Jr.
Leonard Duane Sisk, age 55, of Cecilia, in Hardin County, Kentucky, was sentenced to 33 months in prison, followed by three years of supervised release and ordered to pay a $100 fine. Justin Matthew Collinge, age 33, of Leitchfield, in Grayson County, Kentucky, was sentenced to 30 months in prison, followed by a three year period of supervised release and ordered to pay a $100 fine. They were both ordered to pay restitution. Sisk was ordered jointly and severally liable for the full stolen amount of $8,815.00 and Collinge was ordered jointly and severally liable for half the stolen cash in the amount of $4,407.00.
Both defendants pleaded guilty to the single charge of bank robbery by force or violence on June 26, 2015 in U.S. District Court. Both defendants remain in the custody of the U.S. Marshals Service.
According to the plea agreements, on December 23, 2014, defendant Sisk, knowingly aided and abetted by defendant Collinge, who acted as the getaway driver, robbed the West Point Bank. Sisk admitted to wearing a disguise while inside the bank, to demanding money from the teller, and to pointing a toy pistol at the teller which was painted black. The teller handed Sisk $8,815.00. Collinge admitted to driving a vehicle provided by Sisk, to the bank and to waiting for the robbery to occur, before acting as the getaway driver subsequent to the robbery.
This case was prosecuted by Assistant United States Attorney Randy Ream and was investigated by the Federal Bureau of Investigation (FBI) with assistance from the Kentucky State Police.
Gloucester Seafood Executive Indicted on Tax ChargesRead the Press Release
BOSTON – The president of a major seafood processing company in Gloucester was arrested today in connection with failing to pay taxes on more than $2 million in income he earned from 2006 to 2009.
Jack Ventola, 68, of Ipswich, was indicted on three counts of filing false tax returns and one count of conspiracy to defraud the Internal Revenue Service (IRS).
The indictment alleges that Ventola was the president and part owner of a major seafood processor that utilized the services of a temporary labor company called Continental Labor Team, Inc., which Ventola and a co-conspirator, who was also an executive of the seafood processor, controlled. Ventola and his co-conspirator allegedly worked together to channel money out of Continental and into their personal bank accounts, tax free. To do this, the co-conspirator allegedly prepared fraudulent invoices for work supposedly done for Continental by a shell company Ventola controlled called International Freezing Systems (IFS). Ventola and his co-conspirator allegedly used the fake IFS invoices to obtain payments from Continental, which they deposited into one of Ventola’s personal bank accounts. From there, Ventola used the funds to pay personal expenses and also wrote his co-conspirator personal checks approximately monthly. Although the checks from Continental totaled more than $2 million between 2006 and 2009, neither Ventola nor his co-conspirator reported the income on their tax returns.
The indictment also alleges that Ventola failed to report approximately $149,000 of other income he received in 2008 and 2009.
The charge of filing a false tax return provides for a penalty of no greater than three years in prison, one year of supervised release and a fine of $100,000. The conspiracy charge provides for a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss from the offense. Actual sentences for federal crimes are typically less than maximum penalties. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations, made the announcement today. This case is being prosecuted by Assistant U.S. Attorneys Stephen E. Frank and Brian A. Pérez-Daple of Ortiz’s Economic Crimes Unit.
The details contained in the indictment are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Glenview Man Indicted for Lying to Federal Grand Jury Investigating Possible Hiring Violations in Cook County Circuit Court Clerk's OfficeRead the Press Release
CHICAGO — A Glenview man who was hired by the Cook County Circuit Court Clerk’s Office after purportedly loaning $15,000 to a company controlled by the Clerk’s husband lied under oath when testifying about it before a grand jury, according to a federal indictment announced today.
In August 2014, SIVASUBRAMANI RAJARAM purportedly loaned $15,000 to Goat Masters Corporation, whose president was the husband of the Cook County Circuit Court Clerk. The following month, Rajaram was hired by the Clerk’s Office as a level four Senior Clerk. Rajaram had previously worked in the Clerk’s Office but had been living in India for several years.
On or about Oct. 1, 2015, Rajaram testified before a federal grand jury that was conducting an investigation of possible criminal violations in connection with the purchasing of jobs and promotions within the Clerk’s Office. During his testimony, Rajaram said he had not spoken to the Circuit Court Clerk after his 2014 hiring. He also testified he had only spoken to another high-ranking employee of the Clerk’s Office “three or four times” since returning to Chicago from India, and that the conversations were not by phone.
The indictment alleges that both statements were false. According to the indictment, Rajaram spoke with both the Clerk and the high-ranking employee after being re-hired in 2014. His conversations with the high-ranking employee occurred dozens of times via cell phone, according to the indictment.
The indictment was returned Thursday in U.S. District Court in Chicago. Rajaram, 48, of Glenview, was charged with one count of making false declarations before a grand jury. The charge carries a maximum sentence of five years in prison. The Court has not yet scheduled an arraignment hearing.
The indictment was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Anita Alvarez, Cook County State’s Attorney; Patrick M. Blanchard, Cook County Inspector General; and Michael J. Anderson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The government is represented by Assistant United States Attorneys Heather McShain and Ankur Srivastava.
Indictment
Glen Burnie Man Sentenced to over Seven Years in Prison for Drug Distribution ConspiracyRead the Press Release
Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced James Maurice McCants, age 42, of Baltimore, today to 92 months in prison, followed by four years of supervised release, for conspiracy to distribute and possess with intent to distribute crack cocaine. Co-defendants Eddie Eusebio Mateo, age 31, of Pikesville, Maryland, cocaine and Robert Bookhamer, age 37, of Baltimore, pleaded guilty to conspiracy to distribute and possess with intent to distribute cocaine. Mateo entered his plea today and Bookhamer entered his plea on November 17, 2015.
The sentence and guilty pleas were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration, Baltimore District Office; and Anne Arundel County Police Chief Tim Altomare.
According to McCants’ and Mateo’s plea agreements, from at least May 2013 through July 23, 2014, they were members of a conspiracy to distribute cocaine and crack cocaine in Baltimore and Anne Arundel County, Maryland. Bookhamer was a member of the conspiracy from March to June 2014. Other members of the conspiracy included Alex Raymond Valerio, Moises Rosario, Joseph Melendez, Keith Joseph Herring, Dartanon Antione Gaines, and others.
According to their plea agreements McCants, Mateo and Bookhamer obtained cocaine from Valerio, Rosario and others. McCants also obtained heroin from Valerio. McCants and Bookhamer sold the drugs obtained from Valerio to their own customers, while Mateo distributed the drugs on behalf of Valerio to several of the conspiracy’s customers on behalf of Valerio. The conspirators were intercepted in telephone calls and text messages discussing their drug trafficking activities. Law enforcement also observed the defendants meeting with Valerio to conduct drug transactions.
On May 20, 2014, investigators conducted a traffic stop of McCants’ vehicle after he had met with Valerio at Valerio’s residence. Law enforcement recovered approximately 42.2 grams of crack cocaine from McCants’ front waistband area, which he admitted purchasing from Valerio.
On July 23, 2014, investigators executed a search warrant at Bookhamer’s home in Baltimore and recovered: $7,108 in cash; plastic bags with approximately 22 grams of cocaine; drug paraphernalia and packaging materials; a .45 caliber handgun with two magazines; a rifle with a large capacity magazine; a box of .45 caliber ammunition; and multiple cell phones.
On that same day investigators also executed a search warrant at Mateo and Rosario’s home in Pikesville, as well as a home in Glen Burnie, frequented by Mateo and utilized by Valerio to store and distribute drugs to other members of the conspiracy. At the Pikesville home investigators located: a six ton shop press, a dye press, five bundles of heroin (totaling approximately 11.7 grams), scales with cocaine reside, marijuana seeds, and twenty marijuana plants. In the Glen Burnie home law enforcement recovered: two hydraulic presses; spoons with cocaine residue; drug paraphernalia including cutting agent and packaging material; a hand press; approximately 30.9 grams of cocaine; and $24,000 in cash.
McCants admitted that during his participation in the conspiracy, he conspired to distribute between 280 and 840 grams of crack cocaine. Mateo and Bookhamer admitted that they were responsible for the distribution of between 500 grams and two kilograms of cocaine.
Co-defendants Alex Raymond Valerio, age 35, of Glen Burnie; Moises Rosario, age 33, of Pikesville, Maryland; Joseph Melendez, age 28, of Brooklyn, New York; Keith Joseph Herring, age 27, of White Marsh, Maryland; and Dartanon Antione Gaines, age 36, of Owings Mills, Maryland, previously pleaded guilty to their roles in the drug conspiracy. Rosario was sentenced to two years in prison and the others are awaiting sentencing. Three other defendants are pending trial.
Bookhamer and Mateo each face a maximum sentence of 20 years in prison. Judge Motz has scheduled sentencing for Mateo on February 2, 2016 and for Bookhamer on March 11, 2016.
United States Attorney Rod J. Rosenstein commended the DEA and Anne Arundel County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Kenneth S. Clark, who is prosecuting this Organized Crime Drug Enforcement Task Force case.
Four People Charged in Tax Fraud ConspiracyRead the Press Release
TALLAHASSEE, FLORIDA – Jorge Maldonado, 51, was arraigned today in the U.S. District Court in Tallahassee after a federal grand jury returned a 21 count indictment charging him and his daughter, Jennifer Maldonado, 28, both of Oviedo, Florida, and co-conspirators Sharon Glover, 53, and Diane White, 54, both of Sanford, Florida, with conspiracy, wire fraud, theft of government property, and aggravated identity theft. Jennifer Maldonado, Glover, and White were arraigned in federal court on November 16. The indictment was announced by Christopher P. Canova, Acting United States Attorney for the Northern District of Florida.
The indictment alleges that, between February 2009 and October 2011, the Maldonados, who were both tax preparers, together with Glover and White, conspired to obtain more than $815,000 in tax refunds issued on fraudulent income tax returns. The trial is scheduled for January 11, 2016, at 8:15 a.m.
This case resulted from an investigation by the Internal Revenue Service – Criminal Investigation. Assistant United States Attorney Herbert S. Lindsey is prosecuting the case.
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt at trial.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. The office strives to protect and serve the citizens of the Northern District of Florida through the ethical, vigorous, and impartial enforcement of the laws of the United States, to defend the national security, to improve the safety and quality of life in our communities through the protection of civil rights, and to protect the public funds and financial assets of the United States. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact:
Amy Alexander, Public Information Officer
(850) 216-3854, [email protected]Four Missouri Men Charged with Illegally Cutting Down Trees in Mark Twain National ForestRead the Press Release
St Louis, MO – MELVIN L. ARGANBRIGHT IV, Salem, Missouri, and CODY D. WOFFORD, Salem, Missouri, were indicted by a federal grand jury Wednesday, November 18, for allegedly cutting down over 300 trees on Mark Twain National Forest land in Dent County between June 1 and August 15, 2015.
In a separate unrelated case, WAYNE MESSEX and JOHN TURMAN were indicted for allegedly cutting down over 50 white oak trees in the Mark Twain National Forest between October and December 2014. Messex, Richwoods, Missouri, and Turman, St. Clair, Missouri, were each indicted by a federal grand jury earlier this month on one felony count of theft of government property.
If convicted, this charge carries a maximum penalty of ten years in prison and/or a fine up to $250,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by agents from U.S. Forest Service. Assistant United States Attorneys Gwen Carroll and Gilbert Sison are handling the cases for the U.S. Attorney’s Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Four Charged with Violating Federal Drug LawsRead the Press Release
PITTSBURGH – Two Pennsylvania residents and two New Yorkers have been charged in an Indictment by a federal grand jury in Pittsburgh with violations of federal narcotics laws, United States Attorney David J. Hickton announced today.
The indictment, returned on Nov.19, named the following people:
- Forrest Gilmore, 20, of New Castle, PA;
- Rondell Evans, 22, of Buffalo, NY;
- Melvin Dorsey-Pace, 23, of New Castle, PA; and
- Jada Davis, 21, of Buffalo, NY.
According to the Indictment, from in and around January, 2015, and continuing thereafter to in and around November, 2015, in the Western District of Pennsylvania and elsewhere, Gilmore, Evans, and Dorsey-Pace conspired with one another and others to possess with intent to distribute and distribute 28 grams or more of cocaine base. Additionally, on or about November 2, 2015, in the Western District of Pennsylvania, Evans and Davis possessed with intent to distribute a sum of cocaine base.
The law provides for a maximum total sentence of not less than five years and up to 40 years in prison, a fine of $5,000,000, or both for defendants Gilmore, Evans, and Dorsey-Pace. The provides for a maximum total sentence of not more than twenty (20) years, a fine of $1,000,000.00, or both for defendant Davis. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Jonathan B. Ortiz is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, the New Castle Police Department, and the Lawrence County Drug Task Force conducted the investigation leading to the Indictment in this case. These defendants were prosecuted through a multi-agency federal effort within the Organized Crime Drug Enforcement
Task Force (OCDETF) program. The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
An indictment is an accusation. The defendants are presumed innocent unless and until proven guilty.
Former Treasurer of Henderson, Kentucky, Church Charged with Embezzling FundsRead the Press Release
BOWLING GREEN, Ky. – The former treasurer of Greater Norris Baptist Church, located in Henderson County, Kentucky, was charged by grand jury indictment this week, with eleven counts of wire fraud announced United States Attorney John E. Kuhn, Jr.
According to the indictment, Delanie L. Tillman, of Henderson County, devised a scheme to defraud and obtain money and property by means of false pretenses, from the Greater Norris Baptist Church, between November 23, 2010 and June 5, 2014.
Specifically, Tillman is charged with making unauthorized wire transfers and writing unauthorized checks to pay for personal expenses using the church’s funds for a loss of $9,764.24.
If convicted at trial, Tillman could be sentenced to no more than 20 years in prison, ordered to pay a fine of up to $250,000 and serve a three year period of supervised release.
This case is being prosecuted by Assistant United States Attorney David Weiser and is being investigated by the Federal Bureau of Investigation.
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The charging of a person by a Grand Jury Indictment is an accusation only and that person is presumed innocent until and unless proven guilty
Former Smith County Insurance Agent Guilty in $5.4 million Fraud SchemeRead the Press Release
TYLER, Texas – A 64-year-old former insurance agent has pleaded guilty to wire fraud and money laundering in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Robert B. Hahn, of Tyler, pleaded guilty to an information charging him with wire fraud and money laundering on Nov. 19, 2015 before U.S. Magistrate Judge John D. Love.
According to information presented in court, from January 2007 to February 2015, Hahn devised and executed a scheme in which he claimed to represent a group of doctors, in Tyler, Texas, who were raising capital for debt retirement, construction of, or improvements to, health care facilities, and medical equipment purchases. Hahn led approximately 100 potential investors to believe this group of doctors would pay an annual interest rate of 20% on their loans or investments. Hahn then collected funds from these individuals and deposited them into his insurance business or personal checking accounts. Hahn would periodically make “interest” payments, in cash, to said individuals, representing a 20% return on said fictitious loans or investments, utilizing funds he had derived from earlier investors. Upon request, Hahn would return principle loan or investment funds to said individuals in the form of a check drawn on his insurance or personal checking accounts, using funds he had received from other investors. Hahn admitted that in truth and in fact, there never was a group of doctors raising capital for debt retirement, construction of, or improvements to, health care facilities, and medical equipment purchases. Hahn admitted he simply made up this story to obtain and maintain funds for his personal use.
As a result of the scheme, Hahn collected approximately $5,479,600.00 from individual investors. In furtherance of the scheme, during the relevant time period, Hahn returned or distributed approximately $4,072,470.00, in proceeds from the fraud scheme to some of the individuals in the form of returned “principle” and “interest” or “earnings”.
Hahn faces up to 20 years in federal prison at sentencing. A sentencing date has not been set.
This case was investigated by the Federal Bureau of Investigation, Tyler Office, the Internal Revenue Service, Criminal Investigations Division, the Texas State Securities Board, and prosecuted by Assistant U.S. Attorney Jim Noble.
Former Secretary-Treasurer of Labor Union Charged with Filing False Report with Department of LaborRead the Press Release
Joshua Lewis, 33, of St. Louis, Missouri, was indicted by a federal grand jury in East St. Louis, Illinois, on November 19, 2015, for filing a false report with the Department of Labor, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. The indictment alleges that Lewis was the secretary-treasurer for the Brotherhood of Maintenance of Way Employees Division (BMWED) Lodge 212 from December 2011 until September 2012. The indictment alleges that during the time that Lewis served as Treasurer he converted to his own use, without authority, union funds in excess of $3,000. The indictment alleges that Lewis filed a false annual report for the union with the Department of Labor that falsely reported that he did not receive any union funds during the fiscal year ending March 31, 2014. The submission of the false annual financial report concealed the funds Lewis converted from the union. Lewis faces a prison sentence of up to 1 year, a fine of up to $100,000, and up to 1 year supervised release if convicted of the charge.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
The prosecution is the result of an investigation by the U.S. Department of Labor, Office of Labor Management Standards, with the assistance of the labor union. The case is being prosecuted by Assistant United States Attorney Norman R. Smith.
Former Scott Credit Union Loan Officer Indicted for FraudRead the Press Release
Theodore J. Longust, 50, formerly from Columbia, Illinois, was indicted on November 18, 2015, by a federal grand jury in East St. Louis, Illinois, in a nine count Indictment charging: Count 1: Financial Institution Fraud; Counts 2 - 5: Misapplication of Funds; Counts 6 - 8: Money Laundering; and Count 9: Making a False Record to Scott Credit Union With The Intent to Deceive, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
The indictment alleges that Longust was an employee and officer of Scott Credit Union in the commercial loan department from November 7, 2005, continuing through December 8, 2014, and held the title of Business Relationship Manager. The indictment further alleges that he executed a scheme to defraud through the embezzlement of credit union funds, the creation of fraudulent loans, the payment of loans through the misapplication of funds from other loans, the increase of credit limits on loans that did not have the requisite board approval, the issuance of business loans without the required documentation or security and the issuance of letters of credit without the required documentation and security. The indictment also alleges that Longust knowingly submitted a false report to Scott Credit Union for the 3rd quarter of 2014 that misstated loan balances and omitted loan amounts and underreported loans of over $12,000,000.
If convicted, Longust faces a prison sentence of up to 240 years, a fine of up to $4,500,000, and up to 5 years supervised release, and mandatory restitution. The safety and soundness of Scott Credit Union has not been adversely affected by the criminal conduct. Employees of Scott Credit Union cooperated in the federal investigation.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
The prosecution is the result of an investigation by the Federal Bureau of Investigation and the Internal Revenue Service/Criminal Investigations, with the assistance of Scott Credit Union. The case is being prosecuted by Assistant United States Attorney Norman R. Smith.
Former Labor Union Treasurer Charged with EmbezzlingRead the Press Release
Jeffrey Magelitz, 44, of Chester, Illinois, was indicted by a federal grand jury in East St. Louis, Illinois, on November 18, 2015, for embezzlement and theft from a labor union and for filing a false report with the Department of Labor, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
The indictment alleges that Magelitz was the former treasurer of the American Federation of State, County and Municipal Employees, Local 415, in Vienna, Illinois, from January of 2012 through June of 2013. AFSCME Local 415 represents employees at the Vienna Correction Center, located in Vienna, IL. The indictment alleges that Magelitz embezzled $30,811.96 and prepared and cashed unauthorized checks for himself and forged the signatures of the president and vice-president of the union on the checks. The indictment also alleges that Magelitz submitted a false annual report for the union which contained the forged signature of the president and falsely reported the amount of money that he received during the year. If convicted Magelitz faces a prison sentence of up to 6 years, a fine of up to $350,000, and up to 3 years’ supervised release.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
The prosecution is the result of an investigation by the U.S. Department of Labor, Office of Labor Management Standards, with the assistance of the labor union. The case is being prosecuted by Assistant United States Attorney Norman R. Smith.
Former Federal Correctional Officer Sentenced to Prison for Accepting BribesRead the Press Release
Ocala, Florida – Senior United States District Judge Wm. Terrell Hodges has sentenced Robert Lawrence Brown (32, Clermont) to two years in federal prison for accepting a bribe as a public official. He pleaded guilty on September 4, 2015.
According to court documents, beginning in January 2015, Brown used his position as a Correctional Officer at the Coleman Federal Correctional Complex to smuggle contraband to inmates in exchange for monetary payments. On June 18, 2015, federal agents monitored a meeting between Brown and a cooperating witness. During that meeting, Brown accepted $2,600 for items that he had already smuggled into the prison. When confronted by investigators, Brown admitted that he had illegally negotiated $7,100 in cash payments in return for smuggling cellphones, prescription pills, tobacco, and other items to federal inmates.
This case was investigated by the Department of Justice Office of the Inspector General and the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Robert E. Bodnar, Jr.
Former Business Executive Indicted for Failing to Pay More than $250,000 in Child Support ObligationsRead the Press Release
PROVIDENCE, R.I. – A federal grand jury in Providence returned a two-count indictment on Thursday charging Christopher Carroll, 47, formerly of Jamestown, R.I., with allegedly travelling in interstate and outside the country to evade paying more than $250,000 in child support payments for his three minor children, age 9, 11 and 14, announced United States Attorney Peter F. Neronha and Phillip Coyne, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General.
According to court documents, it is alleged that Carroll, a former senior marketing executive with an international energy management company based in Paris, France, and which operates a facility in West Kingston, R.I., ceased paying Rhode Island Family Court ordered child support payments of $6,000 per month in January 2013, two years after the court ordered the payments to begin. On June 17, 2013, a Rhode Island Family Court judge ruled that Carroll was in contempt of court for failing to meet his child support obligations, which to date totals more than $250,000.
According to court documents, during the pendency of his child support obligations, Carroll, who has had numerous investment accounts, withdrew at least $369,329.31 from those accounts.
The indictment charges Christopher Carroll with interstate travel to avoid child support obligation and failure to pay child support. An arrest warrant has been issued for Carroll, who is believed to be traveling abroad.
According to court documents, in May 2012, Carroll relocated to his employer’s Paris headquarters where he was employed until October 2012. Since that time, according to court documents, Carroll remarried, renounced his U.S. Citizenship and has been traveling abroad utilizing a Republic of Ireland passport. According to court documents, Carroll and his current wife identify themselves as being semi-retired, and have stated that they have spent the past year traveling in Europe, Central and South America, Canada and the United States.
An indictment is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The case is being prosecuted by Assistant U.S. Attorney Richard W. Rose. The matter was investigated by the U.S. Department of Health and Human Services, Office of Inspector General, with the assistance of the Rhode Island Child Support Enforcement Office.
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Former Belleville Doctor's Office Manager Indicted for FraudRead the Press Release
Jerry L. Akin, 60, formerly from Belleville, Illinois, was indicted by a federal grand jury in East St. Louis, Illinois, on November 19, 2015, for two counts of wire fraud involving a scheme to embezzle funds from the doctor's office, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
The indictment alleges that Jerry L. Akin charged personal purchases to the company's credit card that included Cardinal baseball season tickets, concert tickets, medical bills and personal travel expenses. The indictment further alleges that Akin paid personal credit card bills using the business checking account and that he attempted to conceal the payments by altering the payee of the checks in the business' QuickBooks accounting software. The indictment also alleges that he paid himself excess salary. If convicted, Akin faces a prison sentence of up to 40 years, a fine of up to $500,000, and up to 3 years supervised release.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
The prosecution is the result of an investigation by the Federal Bureau of Investigation, with the assistance of the doctor's office. The case is being prosecuted by Assistant United States Attorney Norman R. Smith.
Former Beaver County Woman Embezzled from Employer to Pay for Personal ExpensesRead the Press Release
PITTSBURGH - A former resident of Beaver County, Pennsylvania, pleaded guilty in federal court to a charge of mail fraud, United States Attorney David J. Hickton announced today.
Maria P. Makozy, 47, of Port St. Lucie, FL, pleaded guilty to one count before United States District Judge Arthur J. Schwab.
In connection with the guilty plea, Maria Makozy embezzled from her former employer, Keymax Settlement Services, to pay for personal credit card expenses using company checks.
Judge Schwab scheduled the sentencing for March 16, 2016, at 9 a.m. The law provides for a total sentence of 20 years in prison, a fine of $250,000.00, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the criminal history, if any, of the defendant.
Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.
The United States Postal Inspection Service and the Internal Revenue Service-Criminal Investigation conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.