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Monday 16 November 2015
El Salvadoran Men Arrested in New Mexico on Federal Cocaine Trafficking ChargesRead the Press Release
ALBUQUERQUE – Jose Remberto Guzman-Dominguez, 33, and Miguel Angel Rodriguez-Flores, 47, both of El Salvador, made their initial appearances today in federal court in Las Cruces, N.M., on a criminal complaint charging them with possession of cocaine with intent to distribute. Both men remain in federal custody pending a preliminary hearing and a detention hearing which have not yet been scheduled.
Guzman-Dominguez and Rodriguez-Flores were arrested on Nov. 14, 2015, on a criminal complaint after officers of the New Mexico Motor Transportation Police allegedly found approximately 124 pounds (56.36 kilograms) of cocaine in their tractor trailer during a routine inspection at the port of entry on Interstate 10 near Lordsburg, N.M.
If convicted of the charge in the criminal complaint, Guzman-Dominguez and Rodriguez-Flores each face a maximum statutory penalty of not less than ten years or more than life in federal prison. Charges in criminal complaints are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
This case was investigated by the Border Enforcement Security Taskforce of Homeland Security Investigations, the New Mexico Motor Transportation Police and the New Mexico State Police. Assistant U.S. Attorney Renee L. Camacho of the U.S. Attorney’s Las Cruces Branch Office is prosecuting the case.
El Paso Man Arraigned in New Mexico on Federal Drug Trafficking ChargesRead the Press Release
ALBUQUERQUE – An El Paso, Texas, man was arraigned this morning in federal court in Las Cruces, N.M., on a 45-count indictment charging a total of 20 defendants with drug trafficking, money laundering and immigration offenses. During this morning’s proceedings, Pablo Alberto Arana-Delgado, 34, a naturalized citizen of the United States, entered a not guilty plea to the indictment and was ordered detained pending trial.
The indictment, which was filed on Oct. 14, 2015, alleges that Arana-Delgado and his 19 co-defendants were members of a major drug trafficking organization that imported large amounts of cocaine, marijuana and heroin from Mexico into the United States. It alleges that members of the conspiracy distributed the cocaine, marijuana and heroin in Albuquerque and other places in the United States, and smuggled drug proceeds from the United States to Mexico. According to the indictment, the conspiracy operated in Doña Ana, Luna and Bernalillo Counties from Oct. 2014 through Oct. 2015. The indictment also includes forfeiture provisions seeking a money judgment of $1,100,000, which represents the amount of money allegedly derived from the offenses charged in the indictment.
The indictment is the result of an investigation by the DEA, FBI and U.S. Border Patrol that was designated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program. The OCDETF program combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations. During the course of the investigation, law enforcement officers seized and purchased 6.2 kilograms of cocaine, 2.9 kilograms of methamphetamine, 1039.9 kilograms of marijuana and 351 grams of heroin. They also seized $267,030.00 in alleged drug proceeds and other assets valued at approximately $153,000.00.
To date, nine of the 20 defendants are in federal custody. The remaining 11 defendants are fugitives and presumed to be in Mexico.
The case was investigated by the Las Cruces offices of the DEA and FBI, and the U.S. Border Patrol. Assistant U.S. Attorneys Selesia L. Winston and Renee L. Camacho of the U.S. Attorney’s Las Cruces Branch Office are prosecuting the case.
Indictment in United States v. Estopellan-Torres, et al., 15-CR-33648-RB
Summary of the Charges
Count 1 of the Indictment charges all 20 defendants with conspiracy to distribute cocaine, marijuana and heroin in Doña Ana, Luna and Bernalillo Counties, N.M., and elsewhere between Oct. 2014 and Oct. 2015. For five of the defendants, the maximum statutory penalty for a conviction on this count is imprisonment for not less than ten years or more than life. For seven defendants, the maximum statutory penalty for a conviction on this count is imprisonment for not less than five years or more than 40 years. For eight of the defendants, the maximum statutory penalty for a conviction on this count is not more than 20 years of imprisonment.
Count 2 charges 14 of the defendants with conspiracy to launder money. The statutory penalty for a conviction on this count is imprisonment for 20 years.
Count 3 charges one defendant with distributing cocaine in Doña Ana County, N.M., on Oct. 9, 2014. The maximum statutory penalty for a conviction on this count is imprisonment for not less than five years and not more than 40 years.
Counts 4, 15, 22, 26-28, 33, 35 and 40-41 charge certain defendants with possession of marijuana with intent to distribute between Jan. 16, 2015 and Aug. 2015, in Luna and Bernalillo Counties, N.M. The maximum statutory penalty for a conviction on each of these counts is imprisonment for not more than five years.
Count 5 charges two defendants with possession of more than 500 grams of cocaine with intent to distribute on Jan. 16, 2015, in Luna County, N.M. The maximum statutory penalty for a conviction on this count is imprisonment for not less than five years or more than 40 years.
Counts 6-7, 25, 29, 31, 37, 39 and 43 charge certain defendants with using communications devices (telephone) to facilitate drug trafficking crimes. The maximum statutory penalty for a conviction on each of these counts is imprisonment for not more than four years.
Counts 8, 11-12, 14, 17-20, 23, 30, 34 and 38 charge certain defendants with international money laundering. The maximum statutory penalty for a conviction on each of these counts is imprisonment for 20 years.
Count 9 charges three defendants with possession of more than five kilograms of cocaine with intent to distribute in Bernalillo County, N.M., on Jan. 2, 2015. The maximum statutory penalty for a conviction on this count is imprisonment for not less than ten years or more than life.
Counts 10, 16 and 24 charge certain defendants with distribution of marijuana in Bernalillo County, N.M., on Feb. 2, 2015, March 27, 2015, and June 24, 2015. The maximum statutory penalty for a conviction on each of these counts is imprisonment for not more than five years.
Counts 13, 21, 32 and 36 charge certain defendants with possession of more than 50 kilograms of marijuana with intent distribute in Luna, Bernalillo and Doña Ana Counties, N.M., on Feb. 24, 2015, May 20, 2015, July 17, 2015, and Aug. 12, 2015. The maximum statutory penalty for a conviction on each of these counts is imprisonment for 20 years.
Count 42 charges two defendants with possession of more than 100 grams of heroin with intent to distribute in Bernalillo County, N.M., on Aug. 18, 2015. The maximum statutory penalty for a conviction on each of these counts is imprisonment for not less than five years or more than 40 years.
Counts 44 and 45 each charge a defendant with illegal reenter into the United States after having been deported. The maximum statutory penalty for a conviction on each of these counts is imprisonment for ten years.
Charges against Defendants
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Edgar Estoppellan-Torres, a Mexican national, is charged in Counts 1, 2, 21, 22, 23, 27, 28, 30 and 32.Estoppellan-Torres has yet to be arrested and is considered a fugitive.
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Ignacio Villalobos-Salinas, 29, a Mexican national, is charged in Counts 1 through 12 and 16 through 20. Villalobos-Salinas has yet to be arrested and is considered a fugitive.
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Angel Daniel Silva-Silva, 30, a Mexican national, is charged in Counts 1, 10, 15, and 31.Silva-Silva has yet to be arrested and is considered a fugitive.
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Rene Amaya-Rivas, 26, a Mexican national who was residing in Odessa, Texas, is charged in Counts 1, 2, 5, 8, 14 and 15.Amaya-Rivas was arrested in Oct. 2015, in Amarillo, Texas.
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Rigoberto Estoppellan-Torres, 34, a Mexican national, is charged in Counts 1 and 4.Estoppellan-Torres has yet to be arrested and is considered a fugitive.
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Jesus Muñoz-Lechuga, 35, a Mexican national, is charged in Counts 1, 2, 6, 7, 9, 11, 12, 16 through 23, 25, 27 through 32, 34 and 44.Muñoz-Lechuga has yet to be arrested and is considered a fugitive.
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Emilio Delgado-Olivas, 42, a Mexican national, is charged in Counts 1, 2, 22, 24, 25, 26, 33, 34, 37, 39, 40, 41, 42, 43 and 45. Delgado-Olivas has yet to be arrested and is considered a fugitive.
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Pablo Alberto Arana-Delgado, 34, a Mexican national who was residing in El Paso, Texas, is charged in Counts 1, 9, 21, 27, 32 and 36.Arana- Delgado was arrested on Oct. 23, 2015, and has been in federal custody since that time.
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Elier Gabriel Jaime-Castillo, 34, a Mexican national illegally present in the United States, is charged in Counts 1, 2, 20, 21, 30 and 39 through 43.Jaime-Castillo was arrested on Sept. 1, 2015, on a criminal complaint and has been in federal custody since that time.
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Amado Acevedo-Gonzalez, 35, a Mexican national illegally in the United States, is charged in Counts 1, 28 and 29. Acevedo-Gonzalez was arrested on Oct. 15, 2015, and has been in federal custody since that time.
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Mauricio Ledezma, 22, of Albuquerque, N.M., is charged in Counts 1, 2 and 8.Ledezma was arrested on Oct. 15, 2015, and has been in federal custody since that time.
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Cerbando Carbajal, 19, of Columbus, N.M., is charged in Counts 1, 2 and 14.Carbajal was arrested on Oct. 23, 2015, and has been in federal custody since that time.
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Emilia Quezada, 30, a U.S. citizen who was residing in Chihuahua, Mexico, is charged in Counts1, 2, 12, 17 through 20 and 23.Quezada was arrested on Oct. 23, 2015, and has been in federal custody since that time.
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George A. Taylor, 54, of Deming, N.M., is charged in Counts 1, 2 and 33 through 35.Taylor was arrested on was arrested on Oct. 20, 2015, and has been in federal custody since that time.
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Grisel H. Majalca, 31, of Columbus, N.M. is charged in Counts 1, 2, 37 and 38.Majalca was arrested on was arrested on Oct. 25, 2015, and is on conditions of release and under pretrial supervision.
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Jesus Gilberto Varela-Sanchez, 27, a Mexican national, is charged in Counts 1 and 15.Varela-Sanchez has yet to be arrested and is considered a fugitive.
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Leonardo Martinez-Olivas, 48, a Mexican national, is charged in Counts 1, 2 and 11. Martinez-Olivas has yet to be arrested and is considered a fugitive.
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Carlos Adrian Ortega-Acevedes, 24, a Mexican national, is charged in Counts 1, 2 and 11.Ortega-Acevedes has yet to be arrested and is considered a fugitive.
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Neftali Garcia-Torres, 19 a Mexican national, is charged in Counts 1 and 13.Garcia-Torres has yet to be arrested and is considered a fugitive.
Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty beyond a reasonable doubt.
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Drug Courier Sentenced to Prison After 111 MPH Chase with Highway PatrolRead the Press Release
TOPEKA, KAN. – A drug courier who was clocked at 111 miles per hour while trying to outrun the Kansas Highway Patrol was sentenced Monday to 47 months in federal prison, U.S. Attorney Barry Grissom said.
Miguel Torres, 22, Kansas City, Mo., pleaded guilty to possession with intent to distribute methamphetamine. In his plea, Torres admitted that on March 14, 2015, a Kansas Highway Patrol trooper attempted to stop his BMW as he was driving westbound on Interstate 70 in Geary County. During the chase, the trooper measured Torres’ speed as high as 111 miles per hour. After Torres stopped, the trooper found approximately 22 pounds of methamphetamine in the truck of the car. Investigators learned that Torres was paid $6,000 to drive the drugs from Riverside Calif., to the Kansas City area.
Grissom commended the Kansas Highway Patrol, the Drug Enforcement Administration and Assistant U.S. Attorney Duston Slinkard for their work on the case.
Coastesville Woman Sentenced for Using Fake Retirment Accounts to Defraud ComcastRead the Press Release
PHILADELPHIA - Laura Wayne, 38, of Coatesville, Pennsylvania, was sentenced today to 36 months in prison for seven counts of wire fraud in connection with her embezzlement from Comcast employee retirement accounts. Wayne was an administrator of the employee retirement accounts at the Comcast Corporation when she created dummy retirement accounts and used those accounts to defraud Comcast of approximately $124,876.
From April of 2013 through January of 2014, Wayne used the names, dates of birth, and social security numbers of her family and relatives, to create what appeared to be 401(k) retirement accounts managed by Fidelity Company for the benefit of Comcast employees. She used her access to Comcast records to fraudulently fund each account for the maximum amount allowed by law and to obtain the matching funds from Comcast. She then created fake user names and passwords to transfer all of the money in the dummy Fidelity accounts to her personal bank accounts. When she was caught, she lied to both Comcast and an FBI agent and falsely claimed that she had paid the money back.
In addition to the prison term, U.S. District Court Judge Wendy Beetlestone ordered restitution in the amount of $124,876, three years of supervised release, restitution, and a $700 special assessment.
The case was investigated by the Federal Bureau of Investigation and was prosecuted by Assistant United States Attorney Laurie Magid.
Centralia Woman Sentenced for Drug ConspiracyRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced that Sara Rose Davis, 34, of Centralia, Illinois, was sentenced on November 13, 2015, to 4 years in federal prison, 4 years’ supervised release, a $200 fine, and a $100 special assessment following her guilty plea in May to Conspiracy to Manufacture and Distribute Methamphetamine in violation of federal law. The offense took place in Marion and Clinton Counties. Supervised release follows service of the term of imprisonment. There is no parole in the federal system.
Court documents establish that at least from the summer of 2012, through and including October 2, 2014, Davis obtain the ingredients necessary to manufacture methamphetamine, including pseudoephedrine tablets, and provided them to others to use in the manufacture of methamphetamine.
Information leading to the charge against Davis and others was obtained in an investigation conducted by the FBI, the Marion County Sheriff’s Office, and the Clinton County Sheriff’s Department, assisted by the Illinois State Police Methamphetamine Response Team, and the Centralia Police Department. The case is being handled by Assistant United States Attorney Kit Morrissey.
Buffalo Man Pleads Guilty to Gun ChargeRead 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 Filip Caruso, 50, of Buffalo, NY, pleaded guilty to being a felon in possession of a firearm before U.S. District Judge Richard J. Arcara. The charge carries a maximum penalty of 10 years in prison and a $250,000 fine.Assistant U.S. Attorneys Caleb J. Petzoldt and George C. Burgasser, who are handling the case, stated that on February 25, 2014, a vehicle being driven by the defendant was stopped on South Division St. in the City of Buffalo. As he was being pulled over, Caruso handed a fully loaded .32 caliber revolver to a passenger riding in the car to evade detection. Officers noticed the defendant was wearing a holster which would fit the handgun. Caruso then asked the passenger to lie to a Federal Grand Jury about his possession of the revolver.
The plea comes as jury selection was about to begin in the defendant’s trial.
The plea is the result of an investigation by the Federal Bureau of Investigation Safe Streets Task Force, under the direction Special Agent in Charge Adam S. Cohen and the Buffalo Police Department, under the direction of Commissioner Daniel Derenda. The task force includes representatives of the Amherst Police Department; the Buffalo Police Department; U.S. Border Patrol, the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Cheektowaga Police Department; the Erie County Sheriff’s Department; the Hamburg Police Department; the Lancaster Police Department; the Niagara Frontier Transportation Authority Police; the New York State Department of Correctional Services; the New York State Police; and U.S. Immigration and Customs Enforcement, Homeland Security Investigations.
Sentencing is scheduled for February 22, 2016 at 12:30 p.m. before Judge Arcara.
Brooklyn, New York, Man Sentenced to Four Years in Prison for Traveling to New Jersey to Violently Extort Divorce Consent from Recalcitrant HusbandRead the Press Release
TRENTON, N.J. – A Brooklyn, New York, man was sentenced today to 48 months in prison for crossing state lines as part of a plan to violently coerce a recalcitrant husband to grant his wife a religious divorce, U.S. Attorney Paul J. Fishman announced.
Moshe Goldstein, 32, previously pleaded guilty before U.S. District Judge Freda L. Wolfson to an information charging him with traveling in interstate commerce to commit extortion. Judge Wolfson imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
On Oct. 9, 2013, Moshe Goldstein and a group of conspirators – including his brother Avrohom Goldstein, 36, his father, Jay Goldstein, 61, David Hellman, 33, Simcha Bulmash, 32, Binyamin Stimler, 40, Sholom Shuchat, 31, all of Brooklyn, and Ariel Potash, 42, of Monsey, New York – traveled from New York to a warehouse in Edison, New Jersey, with the intent of forcing a Jewish husband to give his wife a “get,” a document which, according to Jewish Law, must be presented by a husband to his wife to effect their divorce.
During his plea hearing, Moshe Goldstein admitted that when he and the other conspirators arrived at the warehouse, they met with an individual who, unbeknownst to them, was an undercover FBI agent posing as the “husband’s” brother in law. They discussed a plan and prepared to confine, restrain and threaten the victim.
The group was then arrested by a team of FBI agents and charged by criminal complaint – along with rabbis Mendel Epstein, 70, of Lakewood, New Jersey, and Martin Wolmark, 57, of Monsey – in connection with the scheme.
Moshe Goldstein also admitted that on Aug. 22, 2011, he and others went to a residence in Brooklyn where they restrained, assaulted and injured another recalcitrant husband and his roommate in an attempt to extort a divorce from the husband.
In addition to the prison term, Judge Wolfson sentenced Moshe Goldstein to serve two years of supervised release.
Avrohom Goldstein, Hellman, Bulmash, Potash and Shuchat each pleaded guilty to one count of traveling in interstate commerce to commit extortion. Hellman and Bulmash are scheduled for sentencing on Nov. 17, 2015. Avrohom Goldstein, Potash and Shuchat are scheduled for sentencing Nov. 19, 2015. Wolmark, who pleaded guilty to conspiracy to travel in interstate commerce to commit extortion, is scheduled for sentencing on Dec. 14, 2015.
Epstein, Jay Goldstein and Stimler were all convicted at trial on April 21, 2015. Epstein, who was convicted of conspiracy to commit kidnapping, is scheduled for sentencing on Dec. 15, 2015. Stimler and Jay Goldstein, both convicted of conspiracy to commit kidnapping and attempted kidnapping, are scheduled for sentencing on Dec. 15, 2015 and Dec. 16, 2015, respectively.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark, for the investigation leading to today’s sentencing. He also thanked the Lakewood, New Jersey, Police Department for its role.
The government is represented by Assistant U.S. Attorneys R. Joseph Gribko and Sarah Wolfe of the U.S. Attorney’s Office in Trenton.
Defense counsel: Roger Stavis Esq., New York
Boone County man pleads guilty in Federal court to illegally possessing a firearmRead the Press Release
CHARLESTON, W.Va. – United States Attorney Booth Goodwin announced today that Blain Salmons, Jr., 40, of Alum Creek, West Virginia, entered a guilty plea in federal court in Charleston to being a felon in possession of a firearm. On October 29, 2015, Salmons was arrested by the Boone County Sheriff’s Department. At the time of his arrest, police determined that Salmons had been hunting out of season and was in possession of a Glenfield Model 30A, 30-30 rifle. Salmons was prohibited from possessing any firearm under federal law because of a 1997 felony conviction in Kanawha County Circuit Court for kidnapping and aggravated robbery.
Salmons faces up to ten years in federal prison and a fine of up to $250,000 when he is sentenced on February 29, 2016.
This case was investigated by the Boone County Sheriff’s Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Timothy D. Boggess is in charge of the prosecution.
The prosecution is part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by working with existing local programs that target gun crime.
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Baltimore Woman Admits to Arranging a Murder-For-HireRead the Press Release
Baltimore, Maryland – Maria Felix-Pichardo, age 25, of Baltimore, pleaded guilty today to use of an interstate commerce facility in the commission of a murder-for-hire.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division (ATF).
According to her plea agreement, in May 2015 Feliz-Pichardo contacted a confidential informant (CI) working for ATF and asked the CI to find someone who would kill the wife of her baby's father. The CI said he could refer Feliz to a professional killer, and subsequently introduced Feliz-Pichardo to an undercover ATF agent (UC) posing as the purported “hitman.”
Between June and July 2015, Feliz-Pichardo and the UC communicated via cellphone and text message about the planned murder and met in-person several times at locations in Baltimore City. During these meetings, Feliz-Pichardo promised to pay the UC $2,000 to murder the intended victim, and provided the victim’s address and license plate number. Feliz-Pichardo also provided a picture of the victim and suggested how the murder should be committed. Each of these meetings was arranged by cellphone and text messaging. Feliz-Pichardo also used her cellphone to research the victim on social media sites and to provide the pictures of the victim to the UC.
On July 13, 2015, Feliz-Pichardo met the UC, provided $700 to commit the murder and promised to provide an additional $1,300 once the murder was complete. Feliz-Pichardo was then arrested and subsequently interviewed. During that interview, Feliz-Pichardo admitted to contracting the UC to kill the intended victim.
Felix-Pichardo faces a maximum sentence of 10 years in prison. U.S. District Judge James K. Bredar has scheduled sentencing for February 18, 2016.
United States Attorney Rod J. Rosenstein commended ATF and thanked Assistant U.S. Attorney Clinton J. Fuchs, who is prosecuting the case.
Another Member of Centralia Meth Conspiracy SentencedRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced that Michael A. Flanagan, 43, of Centralia, Illinois, was sentenced today for his role in a Conspiracy to Manufacture and Distribute Methamphetamine in Clinton and Marion Counties. Flanagan was sentenced to 110 months in federal prison, to be followed by 4 years of supervised release, a $200 fine, and a $100 special assessment. There is no parole in the federal system.
Flanagan plead guilty to the charges on July 31, 2015. Flanagan has been in custody since his arrest on January 6, 2015. Also charged in the Conspiracy were Dusty Jo Gambill, James Perry Horton, David Leroy Altom, Jayme Lee Barnes and Kathy Sue Tomes. Horton, Altom, and Tomes have pleaded guilty and are awaiting sentencing. Barnes and Gambill were previously sentenced for their roles in the conspiracy.
Information leading to the charges against Flanagan and the others was obtained in an investigation conducted by the FBI, the Marion County Sheriff’s Office, and the Clinton County Sheriff’s Department, assisted by the Illinois State Police Methamphetamine Response Team, and the Centralia Police Department. The case is being handled by Assistant United States Attorney Kit Morrissey.
28 Charged in $9.5 Million Fraudulent Billing Health Care Fraud Scheme to Siphon and Steal Money from Workers' Compensation ProgramRead the Press Release
DALLAS — Twenty-eight defendants, from the Dallas-Fort Worth metroplex, have been charged with various crimes related to their roles in a massive health care fraud scheme that involved bribes, unnecessary medical treatment, fraudulent billing, and the falsification of medical documents to fraudulently bill the federal government, through the Department of Labor’s (DOL) Office of Worker Compensation Programs (OWCP), more than $9.5 million. U.S. Attorney John Parker of the Northern District of Texas made the announcement today.
The criminal felony Information filed today charges 21 claimants, four doctors or medical providers, a senior claims examiner at DOL, a claims representative, and a medical provider’s employee in the scheme. Signed plea papers were filed today for each of the 28 defendants indicating their intent to plead guilty. Arraignment dates have not yet been set for those pleas.
“These charges are the result of a two-year investigation led by special agents with the U.S. Postal Service Office of Inspector General and the Department of Labor Office of Inspector General,” said U.S. Attorney Parker. “Their dogged determination and skilled investigative techniques were crucial in exposing and dissecting this sprawling corruption scheme. This office will continue to vigorously pursue those who fraudulently obtain benefits at the expense of those who have a legitimate need.”
According to the filed Information and plea papers, the 28 below-listed defendants, and others yet uncharged, engaged in a complex and sprawling health care fraud scheme designed to improperly siphon and steal money from DOL’s OWCP:
Larry Washington, 63, of Desoto
Dr. Robert Mandell, 72, of Plano
Ifeyani “Tim” Egbuchunam, 60, of Plano
Henrietta Price, 51, of Cedar Hill
David Banda, 33, of Duncanville
Willie Atkins, 71, of Lancaster
Perry Rowell, 55, of Garland
McArthur Baker, 68, of Dallas
Doris Berry, 52, of Dallas
Byron Bonds, 43, of Mesquite
Michael Bowen, 58, of Dallas
Patricia Brown, 62, of Benbrook
Calandra Cumby, 44, of Dallas
Tonya Evans, 51, of Dallas
Darrell Glasco, 50, of Dallas
Regina Howard, 61, of Desoto
Willard Johnson, 64, of Desoto
Palante McClain, 47, of Cedar Hill
Rhonda McCoy, 47, of Arlington
Vontril McClemore, 61, of Carrollton
Regina Mitchell, 58, of Dallas
Wanda Proctor, 62, of Duncanville
Rhonda Sanders, 50, of Dallas
Clarinda Scott, 56, of Arlington
Patricia Skinner, 59, of Desoto
Janyce Ingram, 53, of Desoto
Brenda Hall, 65, of Dallas
Cassandra Sims, 60, of Dallas
In total, the defendants were able to collectively fraudulently bill the federal government through the OWCP for more than $9.5 million and receive more than $8.7 million in government payments based on their fraudulent billing. The DOL made approximately $11.4 million in payments to these claimants for their compensation and medical services. As a result of the guilty pleas associated with the Information, the government anticipates that it will prevent the payment of an estimated $11 million in future payments to the claimant defendants.
The scheme began with former or current government employees – U.S. postal employees or Veterans Affairs (VA) employees – who claimed that they had been injured during the course of their work duties. Each of these claimants claimed they had suffered an on-the-job injury, ranging from strains to trigeminal neuralgia, which prevented them from returning from work.
Under OWCP, these “claimants” could receive workers’ compensation payments (typically between 66% and 75% of pre-disability wages, tax free) and paid medical treatment, if a qualified doctor deemed the medical services necessary to treat the injury and if the injury prevented the claimant from working.
A DOL claims examiner would review the claim and its documentation, and either approve or reject the claim. In certain circumstances, if an on-the-job injury caused permanent damage, a claimant could have received a “scheduled award” – that is, a lump sum payment meant to compensate that individual for their injury. These awards often amounted to several hundred thousand dollars. Claimants often sought the help of professionals, typically former DOL claims examiners in filing their claims and in getting their claims approved. These “claims representatives” either charged claimants a percentage of any paid claim or a flat rate fee. When doctors or other medical providers treated the claimants, they could bill OWCP for their work if they submitted the proper documentation and certification.
Larry Washington was a licensed professional counselor and ran businesses known as AAA Mental Health, LLC, Mind Spa, Inc., Solutions Health and Rehabilitation, and Convergence Emergence Diversion. Through these businesses, Washington purportedly provided patients with counseling, pain management, chiropractic services, physical therapy and massage services. He sought out and recruited his patients who were former postal and VA employees who had suffered on-the-job injuries that prevented them from returning to work. Washington knew that even though these individuals had once suffered a work-related injury, their injuries were not severe enough to warrant continued OWCP payments.
Washington also billed for services that he allegedly provided to patients in Dallas when he was traveling and not even present in Dallas. He also billed for services he allegedly provided to patients while he was in the hospital during that time for his own medical treatment. Washington also asked claimants to falsify medical documentation, indicating they had received services on days when, in fact, they had not. Upon completion and submission of the forms, the claimants received $100 for each of the forms they completed.
Dr. Robert Mandell was a licensed psychologist with more than 35 years of experience in treating patients. He is also the President, CEO, Clinical Director, and part owner of AAA Mental Health, LLC, which maintained offices in Richardson, Texas. He prepared fraudulent psychological reports to be submitted to OWCP. These psychological reports were crucial to the scheme because for claimants to receive the proper upgrades and certifications, they needed a diagnosis and certification related to their mental state as it related to their physical injury. In many, the alleged mental aspect of the injury is what caused a lengthy delay to return to work.
Henrietta Price and Willie J. Atkins were licensed professional counselors and provided counseling services at Mind Spa, Inc. Price also treated patients under her own company, Lifeline Counseling. Atkins ran his own practice, Atkins Counseling Center.
Perry Rowell was a Senior Claims Examiner at the OWCP. With more than 22 years of federal government service, Rowell was assigned to the Dallas District Office. For years, he accepted monthly cash bribes, totaling $24,000, from Ifeanyi “Tim” Egbuchunam, a former DOL claims examiner who represented claimants before the OWCP. In return, Rowell expedited payments and decisions and immediately responded to Egbuchunam’s telephone calls about technical case status questions.
Defendant David Banda worked at Mind Spa, Inc. in February 2009 and served as an office administrator and biller for Washington’s businesses; he reported directly to Washington.
Washington, Mandell, Price, Banda and Atkins are each charged with one count of conspiracy to commit health care fraud. That offense, upon conviction, carries a maximum statutory penalty of 10 years in federal prison and a $250,000 fine.
Egbuchunam is charged with one count of bribery of a public official. That offense, upon conviction, carries a maximum statutory penalty of 15 years in federal prison and a $250,000 fine.
Rowell is charged with one count of bribery received by a public official. That offense, upon conviction, carries a maximum statutory penalty of 15 years in federal prison and a $250,000 fine.
Baker, Berry, Bonds, Bowen, Brown, Cumby, Evans, Glasco, Howard, Johnson, McClain, McCoy, McClemore, Mitchell, Proctor, Sanders, Scott, Skinner, Ingram, Hall and Sims are also each charged with making a false statement or fraud to obtain federal employees’ compensation. That offense, upon conviction, carries a maximum statutory penalty of one year in federal prison and a $250,000 fine.
The investigation was led by the U.S. Postal Service Office of Inspector General, and the Department of Labor Office of Inspector General, with assistance from Internal Revenue Service Criminal Investigation, U.S. Treasury Office of Inspector General, Social Security Administration Office of Inspector General/Cooperative Disability Investigations Unit, and the U.S. Department of Veterans Affairs Office of Inspector General.
Assistant U.S. Attorney P.J. Meitl and Special Assistant U.S. Attorneys Jennifer Bray and Nicola Dana are in charge of the prosecution.
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13 Individuals Charged with Drug Trafficking in the Municipalities of Aguadilla and QuebradillasRead the Press Release
SAN JUAN, Puerto Rico – On November 12, 2015, a federal grand jury in the District of Puerto Rico returned an indictment charging 13 individuals with conspiracy to possess with intent to distribute controlled substances, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The Drug Enforcement Administration and the Puerto Rico Police Department (PRPD), Aguadilla Strike Force, are in charge of the investigation with the collaboration of the FBI.
The indictment alleges that beginning in 2009, the organization distributed heroin, crack, cocaine, and marihuana within 1,000 feet of a real property comprising the Cuesta Vieja Public Housing Project in Aguadilla and the Guarionex Public Housing Project in Quebradillas, all for financial gain and profit.
The 13 defendants are: Ariel Echevarría-Irizarry, aka “Gongo;” Ángel Ramón Serrano-Carmona, aka “Buggy;” Natanael Gómez-Willis, aka “Naty;” Pedro Bonilla-Espinosa, aka “Peter;” Jorge L. Soberal-Mercado, aka “Soberal;” Luis O. Rivera-Méndez, aka “Coco;” Mariela González-Román; Christian Jonás Acevedo-Román, aka “Pirata;” Waleska T. De Jesús, aka “Wally;” José Colón De Jesús, aka “Gandul;” Xiomara Mendoza-Canaca, aka “Xiomy;” Raymond Vega-Flores, aka “Kile;” and Walter Ferrer-Merrit.
The 13 defendants acted in different roles in order to further the goals of their organizations, to wit: leaders, drug point owners, suppliers, runners, enforcers, sellers, facilitators, and look-outs. Some defendants possessed firearms to protect the members of the drug trafficking organizations, the narcotics, the proceeds derived from the sales, and to further accomplish the goals of the conspiracies. Some of the defendants and their co-conspirators would tattoo themselves and wear clothing items with the logo of the organization.
Assistant U.S. Attorney María L. Montañez is in charge of the prosecution of the case. If convicted the defendants face a minimum sentence of 10 years, and up to life in prison. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty.
Friday 13 November 2015
Woman Sentenced to Time Served for Illegally Re-Entering the United States from MexicoRead the Press Release
A woman who used false identification documents to obtain employment was sentenced on November 9, 2015, to time served.
Ostolia Collazo-Pena, age 43, from Mexico, received the prison term after a September 1, 2015, guilty plea to one count of fraud and misuse of visas, permits, and other documents.
In a plea agreement, Collazo-Pena admitted she presented a fraudulent Green Card and Social Security Card to apply for a job in Sioux City, Iowa, on June 11, 2014. Collazo-Pena came to the attention of authorities when the victim whose social security number Collazo-Pena had been using alerted the Social Security Administration that her disability social security payments for her two disabled children had been disrupted.
Collazo-Pena was sentenced in Sioux City by United States District Court Judge Mark W. Bennett. Collazo-Pena was sentenced to time served. She must serve a 1-year term of supervised release. There is no parole in the federal system.
The case was prosecuted by Assistant United States Attorney Kevin C. Fletcher and investigated by the Office of the Inspector General, Social Security Administration and Homeland Security Investigations.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 15-CR-4002.
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Westbank Gang Members Plead GuiltyRead the Press Release
U.S. Attorney Kenneth A. Polite announced that GLEN HOUSTON, age 22; SAVANNAH HOUSTON, age 25; JARRIN HARRIS, age 21; DENVER LONDON, age 22; JOESIA WILSON, age 27, and BRITTANY CONNER, age 22, all of the Harvey/Marrero area, pled guilty today to various charges, including conspiring to distribute more than 280 grams of crack cocaine, as well as conspiracy to possess firearms in furtherance of drug trafficking.
According to court documents, all defendants were members and/or associates of the “Harvey Hustlers” gang. The Harvey Hustlers gang has been under investigation by the Federal Bureau of Investigation (“FBI”) and the Jefferson Parish Sheriff’s Office (“JPSO”) since 2009. The Harvey Hustlers operated in the Eastern District of Louisiana, primarily on the Westbank of Jefferson Parish, including in the Harvey, Scottsdale, Avondale, and Waggaman areas. Other members of the Harvey Hustlers have previously been indicted and convicted in the United District Court for the Eastern District of Louisiana in United States v. Melvin Hudson, et al., 10-329, “F,” and United States v. Harry Smoot, et al., 14-168, “I.”
All defendants pled guilty to Count 1 of the Indictment which charges participating in a conspiracy to possess with intent to distribute 280 grams or more of cocaine base (“crack cocaine”), in violation of Title 21, United States Code, Sections 841(b)(1)(A) and 846. The maximum penalties for this offense are a minimum sentence of 10 years in prison and a maximum of life imprisonment and/or a maximum fine of $10,000,000. Additionally, defendants GLEN HOUSTON, SAVANNAH HOUSTON, JARRIN HARRIS, DENVER LONDON, and JOESIA WILSON pled guilty to Count 2 of the indictment, participating in a conspiracy to use and carry, and possess firearms in furtherance of the drug conspiracy, in violation of Title 18, United States Code, Section 924(o). The maximum penalties for this offense are 20 years in prison and/or a maximum fine of $250,000. All defendants are also subject to serve a term of supervised release upon completion of their sentences.
U.S. District Judge Jane Triche Milazzo set sentencing for all six defendants on February 18, 2015.
This case was prosecuted by Assistant United States Attorney Myles Ranier and is the product of an ongoing investigation into the violent acts in furtherance of the drug trafficking by the Harvey Hustler gang and its various offshoots on the West Bank of Jefferson Parish. It represents the continued coordinated effort of the federal and state law enforcement authorities within the Multi-Agency Gang Unit (“MAG”), including the United States Attorney’s Office, the Jefferson Parish District Attorney’s Office, Special Agents of the Federal Bureau of Investigation, and officers of the Jefferson Parish Sheriff’s Office.
Watertown Man Sentenced to 130 Months in Prison for Armed RobberyRead the Press Release
SYRACUSE, NEW YORK – Robert A. Williams, 24, of Watertown, NY, was sentenced yesterday to serve 130 months imprisonment followed by 5 years of supervised release in connection with the armed robbery of a convenience store in Watertown, announced U.S. Attorney Richard S. Hartunian. On July 8, 2014 Williams pled guilty in U.S. District Court to using and carrying a sawed-off shotgun during and in relation to a crime of violence, and being a felon in possession of firearms and ammunition.
In July 2013, Robert Williams and Robert Mono stole four shotguns, a rifle, and ammunition from a residence in Lewis County. Williams and Mono used a hacksaw to cut down the barrels and stocks of the four shotguns. On July 31, 2013, Williams and Yarbrough Latulas entered a Sunoco located at 1222 Washington Street, Watertown, New York where WILLIAMS pointed one of the stolen sawed-off 12 gauge shotguns at the store clerk and stated “give me your money.” The clerk then opened the cash register and handed over $513.00 in cash. Yarbrough Latulas stole $395.00 in tobacco products from behind the counter and instructed the clerk to get on the floor.
Yarbrough Latulas was convicted after trial in U.S. District Court for interference with interstate commerce by robbery, and using and carrying a sawed-off shotgun during and in relation to a crime of violence. He was sentenced on November 5, 2015 to eighteen years in prison. Robert Mono pled guilty in U.S. District Court to being a felon in possession of firearms and ammunition and was sentenced on October 14, 2015 to nine years in prison.
This prosecution resulted from an investigation conducted by the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives, Syracuse, New York, the Watertown Police Department and the Metro-Jefferson Drug Task Force. The case was prosecuted by Assistant United States Attorneys Ransom P. Reynolds and Nicolas Commandeur.Washington, DC Man Sentenced to 15 Years in Prison for Carjacking of a Pregnant Annapolis WomanRead the Press Release
Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Cornell Louis Robinson, age 44, of Washington, D.C., today to 15 years in prison followed by three years of supervised release for charges related to the armed carjacking of a couple who were about to enter their vehicle to go to the hospital because the woman was in labor. A federal jury convicted Robinson on July 29, 2015.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation; Annapolis Police Chief Michael A. Pristoop; and Anne Arundel County State’s Attorney Wes Adams.
According to evidence presented during Robinson’s three-day trial, on March 2, 2014, at approximately 4:30 a.m. Robinson, co-defendant Devery Kelley, and others approached two individuals on Copeland Street in Annapolis, Maryland, as they were getting into their car. The victims were planning to go to the hospital because the woman was in labor. The male victim fled from the car and called the police. Witnesses testified that Robinson and Kelley were both armed and forced the woman at gunpoint to accompany them to an apartment building nearby, demanding money. The woman repeatedly told them that she was in labor and did not have the key to the apartment, only the car key. Robinson and other robbers took her, continuing to hold her at gun point, and tried to get her to open an apartment. The victim again told the robbers that she did not have a key to the apartment. When it became clear that she could not get into the apartment, Robinson took the key to the car and left in the victim’s car.
The robbers, driving the stolen car, were followed by officers from the Annapolis Police Department. Witnesses testified that at the corner of Tyler Avenue and Hilltop Lane a handgun was thrown out of the window of the car, but was recovered by police. On Tyler Avenue Robinson and Kelly both got of the car and ran away, but were arrested nearby.
Deverey Hasani-Jarod Kelley, age 25, of Glen Burnie, Maryland, pleaded guilty to his role in the crime and was sentenced to five years in prison.
United States Attorney Rod J. Rosenstein commended the FBI, Annapolis Police Department, and Anne Arundel County State’s Attorney’s Office for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant U.S. Attorneys Bonnie S. Greenberg and Patricia C. McLane, who prosecuted the case.
Washington, D.C. Area Saxophonist Sentenced for Defrauding Montana CharityRead the Press Release
MISSOULA – Donald “Ski” Johnson, 49, of Silver Spring, Maryland, was sentenced yesterday to five years of probation, with six months spent under house arrest, for wire fraud. In July, a jury convicted Johnson following a two-day federal trial in Butte, Montana and determined that Johnson had defrauded Big Brothers Big Sisters of Gallatin County, Montana, by misrepresenting himself as a Grammy-nominated artist soliciting funds for a children’s cancer foundation. In reality, Johnson was never nominated for a Grammy and used money in the foundation’s account for his personal expenses. Chief U.S. District Court Judge Dana L. Christensen issued the sentence.
At trial, Assistant United States Attorney Chad C. Spraker presented evidence that in May 2012, Johnson contacted a large Montana resort using the alias Kevin Wright. The resort was partnering with Big Brother Big Sisters to put on a charity celebrity golf tournament. “Wright” claimed he was a Sony Records representative and an agent of Grammy-nominated saxophonist Ski Johnson. He also claimed that Johnson ran a charity known as the Jazz for Life Foundation, a children’s cancer charity. “Wright” stated that Johnson would donate two Grammy tickets to Big Brothers Big Sisters with one half of the proceeds going to Big Brothers Big Sisters and the other half going to Jazz for Life. Grammy tickets may not be transferred or resold, and Grammy tickets provide that tickets obtained in contravention of their terms will not be honored, and their holders shall be deemed trespassers. Big Brothers Big Sisters paid for Johnson and his associate’s travel expenses, lodging, food, and green fees. Big Brothers Big Sisters held the tournament in July 2012 and auctioned the tickets for a bid of $6,000. Big Brothers Big Sisters stopped the transaction after learning of Johnson’s true identity.
In making its sentencing recommendations, the United States noted that Johnson had perpetrated similar frauds previously between 2011 and 2014. In one instance he organized a black-tie charity gala and promised the attendance of numerous celebrities, none of whom had ever committed to attend. Johnson ultimately canceled the event, but not before the PayPal account associated with Jazz for Life had received nearly $14,000 in proceeds. Johnson also used the approach he employed with Big Brothers Big Sisters on many other occasions. The United States urged the court to consider the losses associated with these frauds in its sentencing determination and argued that they were perpetrated as part of a common scheme. The United States pointed out that of the $120,000 deposited in the Jazz for Life Account between July 2012 and December 2013, only $20 was actually contributed to a charity. The United States also argued that losses included tens of thousands dollars expended by various charities on Johnson and his associates for travel expenses and other perks as a result of Johnson’s false representations.
Assistant U.S. Attorney Chad C. Spraker prosecuted the case, which was investigated by the Federal Bureau of Investigation and the Internal Revenue Service.
Washington Park Man Sentenced for Firearm OffenseRead the Press Release
The United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today that Devonte T. Franklin, 22, of Washington Park, Illinois, was sentenced in federal district court on November 10, 2015 to 30 months in prison, to be followed by two years of supervised release, a $150 fine, and a $100 special assessment, for unlawful possession of a firearm by a previously convicted felon.
Court proceedings revealed that on June 5, 2014, law enforcement officers conducted a traffic stop and observed the occupants not wearing their seat belts. Officers asked all passengers if guns were in the car, with no response from Franklin, who was in the back seat behind the driver. A search of Franklin subsequently revealed a Tec-22 semi-automatic pistol in Franklin’s front waistband. The firearm was loaded with one round in the chamber and had a large capacity magazine with the ability to hold thirty rounds.
This investigation was conducted by the Metropolitan Enforcement Group of Southwestern Illinois (MEGSI) and was prosecuted by Assistant United States Attorney Jonathan Drucker.
Washington Man Sentenced on Drug and Prostitution ChargesRead the Press Release
MISSOULA – Frederick Glen Johnson, 47, of Spokane Valley, Washington, was sentenced today in Missoula federal court for drug and prostitution-related racketeering crimes. In June, Johnson pleaded guilty to one count of conspiracy to possess with the intent to distribute methamphetamine and heroin and one count of interstate travel in aid of racketeering before U.S. Magistrate Judge Jeremiah Lynch. Chief U.S. District Court Judge Dana Christensen Sentenced Johnson to 120 months in prison on the conspiracy to distribute charge and 60 months on the racketeering charge. The sentences will run concurrently. Following his release, Johnson will be subject to five years of supervised release for the drug charge and three years for the racketeering charge, also to run concurrently.
In an offer of proof filed by Assistant U.S. Attorney Cyndee Peterson, the government stated that if the case had proceeded to trial, the government would have demonstrated that between February and November of 2014, Johnson possessed and entered into an agreement with co-conspirators to distribute 50 grams or more of methamphetamine and 100 grams or more of heroin. During these transactions, Johnson brandished a .25 caliber semi-automatic handgun. In addition, between June and August of 2014, Johnson traveled in interstate commerce with the intent to promote, manage, establish, carry on or facilitate prostitution. The government was prepared to prove that during this time period, Johnson traveled between Spokane, Washington, and Missoula, Montana, with five women. While in Missoula, Johnson drove the women to meet customers and would ensure their safety during the meetings, in order to facilitate the crime of prostitution. Johnson is the third of four co-conspirators to be sentenced in this prostitution and drug-running operation.
This case was prosecuted by Assistant U.S. Attorney Cyndee Peterson and investigated by the Federal Bureau of Investigation, Montana Violent Crime Task Force, Missoula Street Crimes Unit, Drug Enforcement Administration, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Veterans’ Cemetery Worker Ordered to Serve Veterans, Probation for Stealing GravestonesRead the Press Release
PROVIDENCE, R.I. – Kevin Maynard, 59, of Charlestown, R.I., a former employee at the Rhode Island Veteran’s Memorial Cemetery in Exeter, was ordered today to perform 200 hours of community service in the service of veterans as part of his sentence of 12 months’ probation for stealing granite gravestones and other items from the Veterans’ Memorial Cemetery, announced United States Attorney Peter F. Neronha; Jeffrey Hughes, Special Agent in Charge, Department of Veterans Affairs, Office of Inspector General (VA OIG), Northeast Field Office; and Colonel Steven G. O’Donnell, Superintendent of the Rhode Island State Police.
The sentence was imposed by U.S. District Court Chief Judge William E. Smith. Maynard pleaded guilty on July 28, 2015, to theft of government property.
According to court documents, over a lengthy period of time, Maynard removed worn or broken grave markers from the cemetery and brought them to his Charlestown residence. On April 23, 2015, a VA-OIG agent and a Rhode Island State Police detective accompanied Maynard to his home where investigators discovered at least 150 veterans’ grave markers being used as flooring for a shed and two make-shift garages. Investigators also located additional markers on the property and a box of American flags belonging to the Veterans’ Cemetery.
According to Government regulations, all Government-furnished headstones/markers/ medallions remain the property of the United States Government in perpetuity and that the “destruction, mutilation, defacement, injury, or removal of any monument, gravestone, or other structure within the limits of any national cemetery is prohibited.”
The case was prosecuted by Assistant U.S. Attorney John P. McAdams.
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U.S. Attorney’s Office Adopts New Policy Aimed at Seeking Greater Penalties in Prosecution of Heroin CasesRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania today announced a new policy for bringing more severe charges against persons who distribute heroin in Central Pennsylvania and for tougher sentencing recommendations by federal prosecutors in heroin cases.
U.S. Attorney Peter Smith said that, “heroin today is not a life style or a business – it is a killer. The steep increase in heroin trafficking and the alarming rise in deaths due to heroin overdoses, particularly in young people, are a state-wide and national problem, but also a deep personal tragedy for many families. Much of what must be done will be through education, additional funding, medical help, counseling and rehabilitation. But those who sell or otherwise put heroin in the hands of others, are knowingly dealing in possible death or serious harm to users and should pay heavily for their greed and callous indifference. The new policy is intended to emphasize that point.”
The guidance to Assistant U.S. Attorneys in the District’s three offices (Harrisburg, Scranton and Williamsport) for heroin cases includes the following:
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In heroin cases, all available charges should be considered.In addition to charges under the Controlled Substance laws and firearms charges, particular attention should be paid to statutes relating to continuing criminal enterprises; maintaining drug-involved premises; endangering human life while illegally manufacturing controlled substances; distribution to persons under age 21; distribution or manufacturing in or near schools and colleges and employing children to distribute drugs near schools or playgrounds and other prohibited places; and employment or use of persons under 18 years of age in drug operations.
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Money laundering charges and forfeiture allegations should be part of all charges where there is evidence of substantial proceeds from the illegal activity and/or assets that can be seized and forfeited.
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Many heroin cases involve defendants with ties to large-scale drug trafficking organizations, gangs, or cartels.Many defendants in heroin cases are leaders, organizers, managers, or supervisors of others within an organization.Other defendants have significant criminal histories or use violence, weapons, and minors in the operation of their business.These factors indicate that a drug weight should be charged that will trigger a mandatory minimum sentence when a reasonable argument can be made that it applies.
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The evidence must be analyzed as to each defendant individually.A defendant is responsible for drugs involved in his own activities or those he encouraged others to undertake.A defendant is also responsible for drugs involved in the activities of co-conspirators if those acts are "reasonably foreseeable."We will charge defendants in heroin cases accordingly when the argument can be made that reasonable foreseeability applies to the scope of that particular defendant’s responsibility.
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Repeat offenders, particularly those involved in heroin trafficking, are appropriate candidates for sanctions which generally double any applicable mandatory minimum sentence.When a defendant involved in heroin trafficking is a repeat offender and the conduct falls within the sanctions, we should not hesitate to seek the enhancement.
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Because of the seriousness of heroin-related offenses, plea agreements that call for dismissal of the most serious charges in heroin cases are highly disfavored and will only be approved in the most extraordinary circumstances.Defendants who wish to reduce their sentence must fully cooperate and then they should not expect a sentencing reduction of more than fifty percent from the otherwise applicable mandatory minimum sentence or guideline range, whichever is higher.
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Because heroin cases present a greater risk of harm to individuals and the community, we will advocate for applicable guidelines enhancements that will increase the sentence.These include possession of a dangerous weapon; use of violence; maintaining drug premises; aggravating role; use of a minor; obstruction of justice; commission of offense while on release; and criminal livelihood.
In addition to seeking enhancements, there may be heroin cases where a sentence at the high end of the applicable guideline range or even an upward departure above the guideline range is called for.
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Under the federal sentencing guidelines, the decision to recommend a guideline departure based upon a defendant's "substantial assistance" to law enforcement is one of the most significant judgments facing any prosecutor.Heroin cases should be treated no differently than any other cases in this respect.We should make an assessment of the significance and usefulness of the defendant's assistance in making our recommendation to the court for a sentence departure on this basis.When defense counsel seeks a variance below the applicable guideline range in a heroin case, we will generally oppose that request unless extraordinary circumstances exist.
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A sentencing memorandum should be filed by the prosecution in heroin cases, particularly when we are advocating for a sentence more serious than otherwise would be imposed if another drug was involved in the offense of conviction.In order to support and strengthen our approach to these cases, when appropriate we will include the grim statistics and other information that reflect the current nationwide heroin epidemic.
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U.S. Attorney Departure AnnouncementRead the Press Release
Michael J. Moore has announced his resignation as the United States Attorney for the Middle District of Georgia. Mr. Moore submitted his resignation to the President on Monday, November 9, 2015.
Mr. Moore was appointed to the position by President Barack Obama on October 6, 2010. Mr. Moore served on the Terrorism and National Security Subcommittee, the White Collar/Fraud Subcommittee, the Criminal Practice Subcommittee, and the Health Care Fraud Working Group of the Attorney General’s Advisory Committee.
As United States Attorney, Mr. Moore oversaw the prosecution of several matters involving national security, including export cases involving individuals who were selling military parts and supplies to terrorist organizations. He oversaw the prosecution against Con Agra, resulting in the largest criminal fine ever imposed for food safety violations. He also oversaw the prosecution of Stewart and Michael Parnell for their involvement in the deadly salmonella outbreak in connection with Peanut Corporation of America, resulting in record-setting prison sentences for their roles as corporate executives. Mr. Moore recently announced the indictment of 37 individuals for their involvement in a multi-state sex trafficking ring, an investigation that freed 15 women from sexual slavery. During his tenure, he took an aggressive approach to prosecuting violent criminals as well as corrupt public officials.
Mr. Moore was responsible for the Middle District of Georgia’s dramatic increase in health care fraud investigations and the successful pursuit of those making false or inflated claims to the United States.
Mr. Moore took an active role in civil rights matters and investigations. He oversaw numerous cases involving the brutal mistreatment of arrestees and prison inmates. He helped bring to conclusion a longstanding school desegregation order and personally mediated a landmark settlement guaranteeing adequate representation for children and individuals in the Superior Courts.
“As U.S. Attorney for the Middle District of Georgia, Michael J. Moore has been a faithful advocate for the people of his district and an outstanding guardian of our nation’s laws,” said Attorney General Loretta Lynch. “During his tenure, Michael helped lead the successful prosecution of a multi-state sex trafficking ring; held food companies accountable for knowingly selling dangerously tainted products; made Georgia’s Middle District a leader in combatting health care fraud; and promoted civil rights and equal opportunity, both within his office and in his district at large. He has fulfilled his responsibilities with tireless devotion, unimpeachable integrity, and exemplary skill, and his leadership and commitment have made a significant contribution to the cause of justice and the rule of law. I thank him for his distinguished service, and I look forward to all he will achieve in the years to come.”
“Even now, as I prepare for what is to come, I am overwhelmed with gratitude for the incredible honor of representing the United States of America. I want to thank the President for the trust he placed in me. I also thank both Attorney General Lynch and former Attorney General Holder for their leadership and friendship over these last five years. I have had the great pleasure of working alongside a staff of outstanding and dedicated public servants. I want to thank our federal, state, and local law enforcement partners. Together we have accomplished much; together we have made a difference. I will forever be grateful for the honor of serving the nation as the United States Attorney,” said United States Attorney Michael J. Moore.
U.S. Attorney Alicia Limtiaco Attends 2015 NAPABA ConventionRead the Press Release
ALICIA A.G. LIMTIACO, U.S. Attorney for the Districts of Guam and the Northern Mariana Islands (NMI), was invited to participate as a panel member at the 2015 National Asian Pacific American Bar Association (NAPABA) Convention which was held on November 3-6, 2015 in New Orleans. U.S. Attorney Florence Nakakuni for the District of Hawaii and U.S. Attorney Carter Stewart for the Southern District of Ohio were also invited as panel members. The panel was entitled, “U.S. Attorney Roundtable: Understanding The Federal Prosecutor,” and described as follows: Post-financial crisis, government regulators have placed renewed focus on criminal and civil enforcement. Federal prosecutions and regulatory actions are among the most challenging matters affecting your company or law firm. Successful resolution of these cases requires an understanding of the thinking and motivation of the federal regulator prosecuting your case. In an inaugural panel for NAPABA, U.S. Attorneys Carter Stewart (S.D. Ohio), Florence Nakakuni (D. Hawaii) and Alicia Limtiaco (D. Guam, D. NMI) will discuss the process, and the factors they consider, in initiating and resolving cases handled in their district. The panelists will also discuss their backgrounds, management policies, and developments at the Department of Justice.
NAPABA is the national voice for the Asian Pacific American legal profession. They promote justice, equity, and opportunity for Asian Pacific Americans. They foster professional development, legal scholarship, advocacy and community involvement. Since its inception in 1988, NAPABA has been at the forefront of national and local activities in the areas of civil rights, combating anti-immigrant backlash and hate crimes, increasing the diversity of the federal and state judiciaries, and professional development.
NAPABA represents the interests of over 40,000 attorneys and approximately 70 national, state, and local bar associations. Its members include solo practitioners, large firm lawyers, corporate counsel, legal services and non-profit attorneys, and lawyers serving at all levels of government. NAPABA engages in legislative and policy advocacy, promotes APA political leadership and political appointments, and builds coalitions within the legal profession and the community at large. NAPABA also serves as a resource for government agencies, members of Congress, and public service organizations about APAs in the legal profession, civil rights, and diversity in the courts.
Photos taken at the Convention:
U.S. Attorney Alicia Limtiaco with U.S. Attorney Carter Stewart from the Southern District of Ohio and U.S. Attorney Florence Nakakuni from the District of Hawaii U.S. Attorney Alicia Limtiaco with NAPABA 2015 President Jin Y. Hwang U.S. Attorney Alicia Limtiaco with U.S. Department of Justice Community Relations Service Director Grand H. LumU.K. Man Arraigned on Conspiracy to Illegally Export Restricted Chemical Laboratory Equipment to SyriaRead the Press Release
Ahmad Feras Diri, 42, of London, was arraigned today on charges alleging a conspiracy to illegally export laboratory equipment, including items used to detect chemical warfare agents, from the United States to Syria.
The announcement was made by Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Peter J. Smith of the Middle District of Pennsylvania, Special Agent in Charge John Kelleghan of the U.S. Immigration and Customs Enforcement-Homeland Security Investigations (ICE-HSI) Philadelphia Office and Special Agent in Charge Sidney Simon of the U.S. Commerce Department’s Office of Export Enforcement (OEE) New York Field Office.
The indictment was returned by a Scranton, Pennsylvania, grand jury on Nov. 20, 2012, and charges Diri; Mowea Diri, Ahmad’s brother and a citizen of Syria; d-Deri Contracting & Trading, a business located in Syria; and Harold Rinko, a U.S. citizen, with criminal conspiracy, wire fraud, illegal export of goods, money laundering and false statements. On Sept. 16, 2014, Rinko pleaded guilty to the criminal conspiracy charge before U.S. District Judge Edwin M. Kosik of the Middle District of Pennsylvania.
On March 14, 2013, Diri was arrested by the Metropolitan Police in London in connection with the charges in the Middle District of Pennsylvania, and was extradited to the United States by the United Kingdom on Nov. 12, 2015. Diri appeared before U.S. Magistrate Judge Karoline Mehalchick of the Middle District of Pennsylvania today and pleaded not guilty to the indictment.
The indictment alleges that from 2003 until Nov. 20, 2012, the three men conspired to export items from the United States through third party countries to customers in Syria without the required U.S. Commerce Department licenses.
According to the indictment, the conspirators prepared false invoices that undervalued and mislabeled the goods being purchased and listed false information regarding the buyers’ identity and geographic location. The indictment alleges that the items were to be shipped from the United States to Jordan, the United Arab Emirates and the United Kingdom, and thereafter transshipped to Syria.
According to the indictment, the items allegedly included: a portable gas scanner used for detection of chemical warfare agents by civil defense, military, police and border control agencies; a handheld instrument for field detection and classification of chemical warfare agents and toxic industrial chemicals; a laboratory source for detection of chemical warfare agents and toxic industrial chemicals in research, public safety and industrial environments; a rubber mask for civil defense against chemicals and gases; a meter used to measure chemicals and their composition; flowmeters for measuring gas streams; a stirrer for mixing and testing liquid chemical compounds; industrial engines for use in oil and gas field operations; and a device used to accurately locate buried pipelines.
“According to the charges in the indictment, Ahmad Feras Diri conspired with his brother and others to evade U.S. export laws and illegally send chemical laboratory equipment to Syria,” said Assistant Attorney General Carlin. “These violations of U.S. export law threaten our national security, and we will continue to hold accountable those who seek to circumvent restrictions. I want to thank the agents, analysts, prosecutors and our U.K. law enforcement counterparts who are responsible for the arrest and charges in this case.”
“This extradition demonstrates HSI’s commitment to use all its resources to prevent sensitive and restricted technology from being exported to Syria through the black market,” said Special Agent in Charge Kelleghan. “No good comes of illegal exports to Syria, especially during this time of gross misgovernment and civil strife. As the principal enforcer of export controls, HSI will continue to do everything in its power to ensure that sensitive technology doesn't fall into the wrong hands in Syria. I applaud our colleagues at the Department of Commerce, the U.S. Attorney’s Office for the Middle District of Pennsylvania, along with our law enforcement counterparts in the United Kingdom. This coordinated effort helped us make this complex investigation a success.”
“I commend our colleagues from HSI and the United Kingdom, and the U.S. Attorney’s Office, for their outstanding work with the Commerce Department on this case,” said Special Agent in Charge Simon. “Our special agents work tirelessly every day to pursue those who flout our export control laws and attempt to supply rogue regimes with technology that threatens our national security. OEE will seek and arrest violators wherever located, worldwide, and we will continue to leverage our unique authorities as the only federal law enforcement agency exclusively dedicated to enforcing dual-use export violations.”
Pursuant to regulations of the U.S. Department of Commerce’s Export Administration, a license is required to export goods and services from the United States to Syria, excepting limited and certain categories of humanitarian food and medicine.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
The case is being investigated by ICE-HSI and U.S. Commerce Department’s OEE New York Field Office. The Justice Department’s Office of International Affairs also provided significant assistance. The case is being prosecuted by Assistant U.S. Attorney Todd K. Hinkley of the Middle District of Pennsylvania and Trial Attorney Mariclaire Rourke of the National Security Division’s Counterintelligence and Export Control Section.
Diri Indictment
Two Plead Guilty in Lucrative Kickback and Medicare Fraud SchemeRead the Press Release
Jackson, TN – A married couple has pled guilty to partaking in a scheme to defraud Medicare of more than $400,000 by making fraudulent medical equipment orders and paying illegal kickbacks. Four defendants were previously indicted in the scheme — three in February 2015 and one in October 2015. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the guilty pleas today.
According to evidence presented in court, Dennis Sensing, 62, and Brenda Sensing, 45, both of New Albany, Mississippi partook in a lucrative health care and kickback fraud scheme between 2011 and 2013. The conspiracy also involved another married couple, Sandra and Calvin Bailey, as well as their son, Bryan Bailey, and accomplice, Cindy Mallard.
According to the charging documents, the Sensings operated the Adult and Children Medical Clinic in Guntown, Mississippi while also working as salespersons for Jaspan Medical Systems, a durable medical equipment company with an office in Jackson, Tennessee. Although Brenda Sensing was listed as a Jaspan employee paid via sales commissions, the commissions paid to her were actually for sales by Dennis Sensing. Pay was arranged to go to Brenda Sensing to avoid tax obligations incurred by her husband.
In their pleas, the Sensings admitted to paying illegal referral fees to Guntown, Mississippi residents, labeled "runners," to identify Medicare cardholders. Dennis Sensing would then market power wheelchairs and back braces to the cardholders. The Sensings also admitted to forging medical records and signatures of a nurse practitioner on medical records to create the appearance that cardholders had been evaluated by a medical provider for medical equipment when, in fact, no provider evaluated the cardholder. Some of the cardholders had no need for the medical equipment.
Nevertheless, the Sensings sent the forged records to Jaspan, which later used the records to obtain payments from Medicare for the equipment.
In February 2015, Calvin Bailey, Sandra Bailey, and Mallard were indicted for conspiracy to commit health care fraud and to pay illegal kickbacks in connection with health care services. Sandra Bailey was also indicted on multiple counts of health care fraud and paying illegal kickbacks to health care providers and patient-referral sources.
In October 2015, the indictment was superseded to add the Baileys’ son, Bryan Bailey, as a fourth defendant, and name the Sensings as persons involved in the conspiracy. Bryan Bailey was indicted for conspiracy to commit health care fraud and to pay illegal kickbacks in connection with health care services. He was also charged with wire fraud.
According to plea agreements entered by the Sensings, medical equipment orders resulting from illegal kickbacks and fraud made by the Sensings resulted in payments by Medicare in an amount between $400,000 and $1,000,000.
On Thursday, the Sensings individually pled guilty before Chief Judge J. Daniel Breen to one count of conspiracy to commit health care fraud and pay illegal kickbacks.
The defendants face individual sentences of up to five years imprisonment and a fine of up to $250,000.
Both defendants are scheduled to be sentenced on February 11th at 10 a.m. before Chief Judge Breen.
The case is being investigated by the Department of Health and Human Services - Office of the Inspector General, Federal Bureau of Investigation, and Tennessee Bureau of Investigation.
The case is being prosecuted by Assistant U.S. Attorney John Fabian on the government’s behalf.
Two Donna, Texas, School Board Members Indicted on Bribery and Attempted Extortion ChargesRead the Press Release
The U.S. District Court for the Southern District of Texas unsealed an indictment today charging two elected members of the School Board of Donna, Texas, with bribery and attempted extortion in connection with a services contract held by the Donna Independent School District (DISD). A private citizen who served as a middleman in the scheme also was charged.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Kenneth Magidson of the Southern District of Texas made the announcement.
Eloy Infante, 53, Elpidio Yanez Jr., 45, and Adrian Guerrero, 50, all from Donna, were charged in a four-count indictment returned on Oct. 27, 2015, in the Southern District of Texas with one count of conspiracy, one count of attempted extortion and two counts of federal programs bribery. Infante and Yanez are both members of the Donna School Board and Guerrero is a private citizen.
According to the indictment, from February 2015 through May 2015, the defendants allegedly attempted to extort, and solicited and accepted bribes from, an individual whose company provided services to the DISD. Specifically, the indictment alleges that the defendants informed the individual that, in order for his company to keep its contract with the DISD, he needed to pay Infante and Yanez $10,000 each. The indictment alleges that both Infante and Yanez accepted partial payment of the $10,000, and that Guerrero served as the middleman for one of the payments.
The charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
This case was investigated by the FBI. The case is being prosecuted by Trial Attorney Monique Abrishami of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Leo J. Leo III of the Southern District of Texas.
Two Donna School Board Members Indicted on Bribery and Attempted Extortion ChargesRead the Press Release
McALLEN, Texas - The U.S. District Court for the Southern District of Texas unsealed an indictment today charging two elected members of the School Board of Donna with bribery and attempted extortion in connection with a services contract held by the Donna Independent School District (DISD). A private citizen who served as a middleman in the scheme also was charged.
U.S. Attorney Kenneth Magidson and Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division made the announcement.
Eloy Infante, 53, Elpidio Yanez Jr., 45, and Adrian Guerrero, 50, all from Donna, were charged in a four-count indictment returned Oct. 27, 2015, with one count of conspiracy, one count of attempted extortion and two counts of federal programs bribery. Infante and Yanez are both members of the Donna School Board and Guerrero is a private citizen.
According to the indictment, from February 2015 through May 2015, the defendants allegedly attempted to extort, and solicited and accepted bribes from, an individual whose company provided services to the DISD. Specifically, the indictment alleges that the defendants informed the individual that, in order for his company to keep its contract with the DISD, he needed to pay Infante and Yanez $10,000 each. The indictment alleges that both Infante and Yanez accepted partial payment of the $10,000, and that Guerrero served as the middleman for one of the payments.
This case was investigated by the FBI. Assistant U.S. Attorney Leo J. Leo III and Trial Attorney Monique Abrishami of the Criminal Division’s Public Integrity Section are prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Two Charged with Hiding a FugitiveRead the Press Release
ERIE, Pa. - Two former residents of Erie, Pennsylvania have been indicted by a federal grand jury in Erie on charges of concealing a person from arrest and accessory after the fact, United States Attorney David J. Hickton announced today.
The two-count indictment, returned on Nov. 10 and unsealed today, named Damonique Shakara Henderson, 23, and Sasia V. Jones, 28, as defendants.
According to the indictment presented to the court, between Feb. 26, 2015 and May 20, 2015, Henderson and Jones harbored and concealed Ricky Rashad Pullium, a person who had an outstanding arrest warrant for a charge of possession of a firearm by a convicted felon, in order to prevent the discovery and arrest of Pullium. Henderson and Jones are also charged with being accessories after the fact by receiving, relieving, comforting and assisting Pullium in order to hinder and prevent Pullium’s apprehension, trial and punishment. According to information presented to the Court, the defendants are alleged to have harbored Pullium fully knowing that he was wanted on the federal charges, in part, by renting a vehicle for him, transporting him out of the Erie area to prevent his discovery and arrest, and by providing further assistance to Pullium in order to hinder his apprehension.
The law provides for a maximum total sentence of 10 years in prison, a fine of $375,000, or both. 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 defendants.
Assistant United States Attorney Marshall J. Piccinini is prosecuting this case on behalf of the government.
The United States Marshals Service, the Federal Bureau of Investigation, and the Pennsylvania State Police conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Texas Resident Convicted of Tax FraudRead the Press Release
Manager of North Carolina Tax Preparation Business Underreported Net Profits
A Fulshear, Texas, woman was convicted yesterday in the U.S. District Court for the Southern District of Texas, after a four-day trial, of three counts of filing false federal tax returns and one count of corruptly endeavoring to obstruct the Internal Revenue Service (IRS), announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division.
According to the evidence presented at trial, Tamny Denise Westbrooks, 52, was the day-to-day manager of JATS Tax Service, a tax preparation business located in Charlotte, North Carolina. Westbrooks, who worked for JATS as an independent contractor, underreported her net profits by inflating her business expenses for tax years 2007, 2008 and 2009. She also obstructed and impeded the IRS by filing false tax returns for herself and others and by paying workers in cash while failing to file the required W-2 or 1099 forms reporting their compensation.
U.S. District Judge Ewing Werlein Jr. of the Southern District of Texas set Westbrooks’ sentencing for March 18, 2016. Westbrooks faces a statutory maximum sentence of three years in prison and a fine of up to $250,000 for each count of conviction.
Acting Assistant Attorney General Ciraolo commended special agents of IRS-Criminal Investigation, who investigated the case and Trial Attorneys Sean P. Beaty and Mara A. Strier of the Justice Department’s Tax Division, who are prosecuting the case. Acting Assistant Attorney General Ciraolo also thanked the U.S. Attorney’s Office of the Southern District of Texas for their substantial assistance.
State of Alabama Agrees to Resolve Claims of National Voter Registration Act ViolationsRead the Press Release
The Department of Justice announced today that it has entered an agreement with the state of Alabama and state officials to resolve claims that Alabama failed to provide voter registration opportunities required by Section 5 of the National Voter Registration Act of 1993 (NVRA).
Section 5 of the NVRA, also known as the “motor voter” provision, requires states to provide voter registration opportunities for federal elections when people apply for or seek to renew driver’s licenses or other identification documents through state motor vehicle offices.
The department’s investigation, conducted by the Civil Rights Division, found widespread noncompliance with the requirements of Section 5 of the NVRA in the state of Alabama. Applications for Alabama driver’s licenses, learner’s licenses, identification cards and vessel licenses did not serve as applications for voter registration with respect to elections for federal office, as required by the NVRA. Moreover, the procedures by which citizens notify motor vehicle authorities that their address has changed did not serve as notification of a change of address for voter registration purposes, as the NVRA requires.
“Voting is the cornerstone of our democracy,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division. “We commend the state of Alabama for working quickly and cooperatively with the department to ensure that eligible Alabama citizens can register to vote and update their registration information through motor vehicle agencies, with the convenience they deserve and the ease of access the law requires.”
Under the terms of the settlement, Alabama will fully integrate a voter registration opportunity into all applications for driver’s licenses and other identification documents, including renewal applications, both in person and online. Alabama will also ensure that change of address information submitted for driver’s license purposes will be used to update voters’ address information unless the voter declines to update her voter registration. In order to provide a voter registration opportunity for Alabama residents who did not receive the opportunity to register when last applying for or renewing a driver’s license or other identification document, Alabama will contact all eligible voters who are not currently registered to vote at the address associated with a driver’s license or other identification document. Alabama is beginning to implement interim procedures that will increase voter registration opportunities while the state integrates voter registration into its electronic motor vehicle systems.
“It is essential for every citizen in our democracy to have a full opportunity to exercise his or her right to vote,” said U.S. Attorney Joyce White Vance of the Northern District of Alabama. “The agreement concluded today between the Justice Department and the state of Alabama moves our state forward towards compliance with the ‘motor-voter’ Act, which was enacted in 1993, and will make it easier for citizens to register and maintain their voter registration while applying for and renewing drivers' licenses. We appreciate the dedication from our colleagues in the Civil Rights Division as well as Alabama Attorney General Luther Strange’s commitment to achieving compliance with section 5 of the NVRA.”
“I would like to commend the state of Alabama for their good faith negotiations and for ensuring full implementation of the ‘motor voter’ provision,” said U.S. Attorney George L. Beck Jr. of the Middle District of Alabama. “I would also applaud the commitment by the Secretary of State, the Alabama Law Enforcement Agency, the Alabama Attorney General and the Governor for their diligent efforts, committing resources and designing software to provide access to voter registration through the driver’s license process.”
“There is no more fundamental right of citizenship in our democracy than the right to vote,” said U.S. Attorney Kenyen R. Brown of the Southern District of Alabama. “I am pleased that the state of Alabama has taken steps to come into compliance with the requirements of the law as it relates to the National Voter Registration Act.”
More information about the NVRA and other federal voting laws is available on the Department of Justice website at www.justice.gov/crt/about/vot/. Complaints about voter registration practices may be reported to the Civil Rights Division’s Voting Section at 1-800-253-3931.
Alabama MOU
Springfield, Missouri, Woman Pleads Guilty to Heroin DistributionRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that AMBER LYNN BRAKE, age 24, of Springfield, Missouri, pled guilty to POSSESSION WITH INTENT TO DISTRIBUTE HEROIN, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(B), punishable by not less than 5 years or more than 40 years imprisonment, up to a $5,000,000.00 fine or both.
The Indictment alleged that on or about December 2, 2014, within the Eastern District of Oklahoma, the defendant did knowingly and intentionally possess with intent to distribute 100 grams or more of a mixture or substance containing a detectable amount of Heroin, a Schedule I Controlled Substance.
The charges arose from an investigation by the Atoka County Sheriff’s Department and the Drug Enforcement Administration.
The Honorable Steven P. Shreder, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the guilty plea and ordered the completion of a presentence report. Sentencing will be scheduled following its completion. The defendant will remain in the custody of the United States Marshal Service pending sentencing.
Assistant United States Attorney Shannon Henson represented the United States.
Six Tulare County Residents Indicted on Drug Trafficking and Firearms ChargesRead the Press Release
FRESNO, Calif. — A federal grand jury returned a 20-count indictment today against Rudolfo Delgadillo, 35, of Woodlake; Alejandro Zavala, 22, of Cutler; and Fabian Magana, 24, of Orosi, charging them with conspiracy to distribute and possess with intent to distribute methamphetamine and various other drug trafficking and firearms offenses. The grand jury also returned a separate eight-count indictment against Josh Soto, 34, of Salinas Valley Prison; Desarae Granillo, 22, and Salina Granillo, 24, both of Visalia, charging them with conspiring to distribute methamphetamine, distribution of methamphetamine and possession with intent to distribute methamphetamine, United States Attorney Benjamin B. Wagner announced.
The cases are the product of an investigation of the Federal Bureau of Investigation, the United States Postal Inspector Service, California Department of Justice Special Operations Unit, the Tulare County Sheriff’s Office, the Tulare Police Department, the Visalia Police Department, the Tulare Area Regional Gang Enforcement Team (TARGET), and the California Highway Patrol (CHP). Assistant United States Attorney Kimberly A. Sanchez is prosecuting both cases.
Rudolfo Delgadillo, Alejandro Zavala, Josh Soto, and Desarae Granillo are in custody. Fabian Magana and Salina Granillo have been ordered released.
If convicted, Delgadillo, Zavala, and Magana face a maximum sentence of life in prison. If convicted, Soto faces a maximum penalty of 80 years in prison, Desarae Granillo faces a maximum penalty of 220 years in prison, and Salina Granillo faces a maximum penalty of 40 years in prison. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
San Diego Federal Court Enjoins Man Posing as Attorney and CPA from Promoting Bogus Tax Schemes, Preparing ReturnsRead the Press Release
A federal court in San Diego, California, has permanently barred Lawrence Preston Siegel from preparing federal tax returns for others, providing tax advice for compensation or any promise of compensation and working for any business that provides tax advice or prepares tax returns, the Justice Department announced. Siegel is also a fugitive from the State of California, wanted on a 20-count criminal complaint, filed in 2014, charging him with Medi-Cal fraud, grand theft, forgery, identity theft, financial dependent adult abuse and tax evasion.
Judge Gonzalo P. Curiel of the U.S. District Court for the Southern District of California entered the permanent injunction on Nov. 9, after Siegel failed to appear to defend the civil case.
The civil complaint alleges that Siegel impersonated licensed California attorneys and used multiple aliases, including Larry Lave and Yehuda Lave, to falsely represent that he is a licensed attorney and CPA in order to recruit customers and implement his tax fraud schemes. According to the complaint, Siegel resigned from the California bar in 1994 and lost his CPA license in 1997 after he was convicted of federal crimes, including tax evasion. Siegel allegedly never regained either accreditation.
The complaint alleges that among his tax fraud schemes, Siegel falsely advised his customers, typically high earners who own profitable businesses, that they can establish companies in another state, usually Nevada, then treat their California home as an out-of-state corporate office. Siegel claimed that doing so would transform a vast array of non-deductible personal expenses into tax deductible business expenses, according to the complaint. The complaint details how Siegel boasted about this tax fraud scheme in e-mails, including one where Siegel falsely claimed that his customers are entitled to free housing as tax-free compensation from their out-of-state companies and that “[t]he housing can [b]e luxurious and cost thousands a month” because “[t]here is an assumption that corporations don’t waste money.”
In conjunction with his tax fraud schemes, Siegel allegedly prepared customer tax returns. In some instances, Siegel filed tax returns without reviewing them with his customers or obtaining their permission to file them, according to the complaint. Siegel is alleged to have fraudulently claimed customers’ personal purchases as deductible business expenses on tax returns he prepared. For example, the complaint states that Siegel deducted on one couple’s tax returns purchases at Tiffany & Company, Royal Caribbean Cruise Lines, Louis Vuitton and Princess Cruise Lines. Siegel allegedly attempted to conceal these fraudulent deductions from the Internal Revenue Service (IRS) by lumping them together and reporting them as large expenses for “supplies” or “medical records and supplies.”
According to the complaint, Siegel also attempted to delay and obstruct IRS examinations of his customers who entered into Siegel’s tax fraud schemes. Siegel allegedly provided false corporate documents to the IRS in order to deceive auditors, produced bogus contracts to IRS auditors and lied to IRS officials during U.S. Tax Court litigation when asked to confirm information on behalf of his customers.
Return preparer fraud is one of the IRS’s Dirty Dozen Tax Scams for 2014. The IRS has some tips on their website for choosing a tax preparer. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers and tax scheme promoters. Information about these cases is available on the Justice Department website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Roswell Man Pleads Guilty to Federal Heroin Trafficking ChargeRead the Press Release
ALBUQUERQUE – Cecil Edward Sexton, 73, of Roswell, N.M., pleaded guilty today in federal court in Las Cruces, N.M., to a heroin trafficking charge under a plea agreement with the U.S. Attorney’s Office.
Sexton and his co-defendant Cheryl Ann Gruette, 51, also of Roswell, were arrested on June 16, 2015, on a criminal complaint charging them with conspiracy and possession of heroin with intent to distribute in Chaves County, N.M., on Jan. 2, 2015. According to the complaint, Chaves County Metro Narcotics Task Force Agents executed a state search warrant on Sexton’s vehicle and residence in Roswell where they seized a total of 273.6 grams of heroin, $1,352.00 in cash, pill bottles, prescription slips in Sexton’s name, drug paraphernalia, and two rifles.
Sexton and Gruette were subsequently indicted on Sept. 16, 2015, and charged with conspiracy to distribute heroin from Sept. 25, 2014 through Jan. 2, 2015, and possession of heroin with intent to distribute on Jan. 2, 2015. Both offenses alleged took place in Chaves County.
During today’s plea hearing, Sexton pled guilty to conspiracy to possess heroin with intent to distribute. Sexton admitted that on Jan. 2, 2015, he and Gruette traveled to Albuquerque, N.M., to obtain 179.3 grams of heroin from their source of supply and then returned to Roswell. In Roswell, law enforcement agents found the 179.3 grams of heroin while executing a state search warrant, they also found an additional 94.3 grams of heroin inside Sexton’s residence. Sexton admitted that he and Gruette intended to distribute the 273.6 grams of heroin to others.
At sentencing Sexton faces a maximum of 20 years in prison followed by not less than three years of supervised release. He remains in custody pending a sentencing hearing which has yet to be scheduled.
Gruette has entered a not guilty plea to the complaint and indictment. Charges in indictments and criminal complaints are only accusations. All criminal defendants are presumed innocent unless proven guilty beyond a reasonable doubt. Gruette is currently scheduled for trial on Dec. 14, 2015.
This case was investigated by the Las Cruces office of the DEA, the Chaves County Metro Narcotics Task Force and the Roswell Police Department. Assistant U.S. Attorney Anna R. Wright of the U.S. Attorney’s Las Cruces Branch Office is prosecuting the case.
The HIDTA Chaves County Metro Narcotics Task Force is comprised of investigators from the Roswell Police Department, Bureau of Alcohol, Tobacco, Firearms and Explosives, the FBI and the Chaves County Sherriff’s Office. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
This case is being prosecuted pursuant to the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative is a collaborative effort between the U.S. Attorney’s Office and the University of New Mexico Health Sciences Center that is partnering with the Bernalillo County Opioid Accountability Initiative with the overriding goal of reducing the number of opioid-related deaths in the District of New Mexico. The HOPE Initiative comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. The law enforcement component of the HOPE Initiative is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative.
Providence Felon Detained on Drug Trafficking, Firearms ChargesRead the Press Release
PROVIDENCE, R.I. - Thealeah Duopu, 39, of Providence, was ordered detained in federal custody today following an initial appearance in federal court in Providence on charges of trafficking crack cocaine, and for being a felon in possession of a firearm and for using the firearm in furtherance of his alleged drug trafficking activities.
United States Attorney Peter F. Neronha and Daniel J. Kumor, Special Agent in Charge of the Boston Field Division of ATF, announced the arrest and detention of Duopu, which comes following a nearly month-long investigation of Duopu’s alleged drug trafficking and gun crime related activities. The investigation allegedly included several purchases of crack cocaine by an undercover ATF agent from Duopu and a court authorized search of Duopu’s residence.
Duopu was ordered detained by U.S. District Court Magistrate Judge Patricia A. Sullivan following an initial appearance on a criminal complaint charging Duopu with possession of 28 grams or more of cocaine base with intent to distribute, distribution of 28 grams or more of cocaine base, distribution of cocaine base, possession of firearms in furtherance of a drug trafficking crime and being a felon in possession of firearms.
A complaint 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.
According to court documents, beginning on October 19, 2015, and continuing until yesterday, an ATF undercover agent allegedly arranged on at least four occasions for the purchase of varying amounts of crack cocaine from Duopu. In each alleged instance, the amount of crack cocaine allegedly ordered from Duopu and delivered to the agent by Duopu increased substantially from the previous transaction. The alleged purchases and deliveries ranged from approximately 8 grams on October 20, 2015, to approximately 52 grams on November 3, 2015. Each alleged transaction occurred at an agreed upon location in a parking lot in Pawtucket.
According to court documents, on Tuesday of this week, an ATF undercover agent allegedly arranged with Duopu to again purchase crack cocaine. They allegedly agreed to meet in Pawtucket on Thursday to complete the transaction. On Thursday, as Duopu left his residence allegedly to meet with the agent, he was detained by members of the ATF Task Force. A court authorized search of Duopu’s alleged stash house and of his person resulted in the seizure of crack cocaine, a loaded firearm, cash, and items used in the packaging and distribution of crack cocaine.
As a result of the alleged undercover purchases of crack cocaine from Duopu, the court authorized search of his alleged stash house and of his person, law enforcement seized 233.3 grams of crack cocaine, a loaded semi-automatic handgun and $20,538 in cash.
According to court records, Duopu was previously convicted in Rhode Island state court on firearm and drug charges.
The case is being prosecuted by Assistant U.S. Attorneys Milind M. Shah and Paul F. Daly, Jr.
Pawtucket Police and the Providence Arson Squad assisted the ATF Task Force in the investigation of this matter. The ATF Task Force consists of agents and officers from ATF; Providence, Cranston and Central Falls Police Departments; and the Special Investigations Unit at the Rhode Island Department of Corrections.
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Jim Martin (401) 709-5357
email: [email protected]
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Photographer Charged with Manufacturing Child PornographyRead the Press Release
PHILADELPHIA - Mark Wilkens, 57, of Philadelphia, PA, was charged by indictment, unsealed today, with manufacturing child pornography and possession of child pornography, United States Attorney Zane David Memeger. According to the indictment, Wilkens was working as a volunteer photographer for WXPN radio station when, on various dates from August 2010 through July 4th, he photographed prepubescent children at public events to capture and attempt to capture sexually explicit images. Wilkens was arrested this morning.
The indictment charges five counts of manufacturing and attempting to manufacture child pornography and one count of possession of child pornography which Wilkens allegedly downloaded from the Internet. If convicted of all charges, Wilkens faces a mandatory minimum sentence of 15 years with a possible advisory sentencing guideline range 210 to 262 months in prison.
This case was investigated by the Philadelphia Police Department and the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorney Michelle Rotella.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
An indictment is an accusation. A defendant is presumed innocent until proven guilty.
Owner of Wheaton Financial Firm Indicted on Federal Charges of Fraud and Misappropriation of FundsRead the Press Release
CHICAGO — The owner of a Wheaton financial firm misused more than $1.2 million in client money to fund his company’s payroll and business obligations, according to a ten-count indictment returned in federal court in Chicago.
ROBERT PEARSON, the owner and chief executive of Illinois Stock Transfer Co., took the money out of a client fund account the company maintained at BMO Harris Bank, the indictment alleges. Pearson allegedly used the money to meet his company’s payroll and tax commitments from February 2012 until approximately February 2014. He tried to conceal the scheme by fraudulently representing to customers, the U.S. Securities and Exchange Commission and an outside accountant that the funds were secure, the indictment states.
The indictment, which was returned Thursday, charges Pearson, 58, of Winfield, with ten counts of wire fraud. An arraignment hearing is set for Nov. 19, 2015, at 2:30 p.m. before U.S. District Judge Edmond E. Chang in Chicago.
Pearson’s Wheaton-based company, which did business under the name IST Shareholder Services, functioned as a transfer agent to repurchase shares of securities as a result of companies merging or being acquired. IST also reinvested dividends for shareholders of certain IST customers, recorded changes of ownership in securities, and maintained records of issuers.
According to the indictment, Pearson told his clients that IST complied with the rules and guidelines of the SEC, which mandated that transfer agents safeguard their customers’ funds. In reality, Pearson knew that his company did not comply with the SEC rules because he was misappropriating certain client funds, the indictment states. As a result of the scheme, Pearson misappropriated more than $1.2 million, according to the indictment.
The indictment was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Michael J. Anderson, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation; and Antonio Gómez, Inspector-in-Charge of the U.S. Postal Inspection Service in Chicago. The SEC assisted in the investigation.
Each count of wire fraud carries a maximum penalty of 20 years in prison and restitution to be determined by the Court, plus a maximum fine of $250,000 or twice the gross gain or gross loss resulting from the offense, whichever is greater.
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. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory U.S. Sentencing Guidelines.
The government is represented by Assistant United States Attorney Jacqueline Stern.
Indictment
Orlando Man Pleads Guilty to Passing Counterfeit Federal Reserve NotesRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces that Leon White (30, Orlando) has pleaded guilty to passing counterfeit Federal Reserve notes. He faces a maximum penalty of 20 years in federal prison.White has also agreed to forfeit the monetary proceeds he obtained by passing the counterfeit notes, as well as the computer media he used to manufacture them. A sentencing date has not yet been set.
According to the plea agreement, in January 2015, White and his co-defendants, Marcos Rogelio Blake (24, New York) and Ralph Darel Lipsey (28, Miramar), passed or attempted to pass counterfeit bills at multiple businesses in Nassau County. Law enforcement officers subsequently issued an alert for the three individuals’ vehicle. On January 17, 2015, a deputy from the Nassau County Sheriff’s Office stopped the vehicle with the three men inside. Blake, who was driving the vehicle, was detained due to a suspended license. During a search, the deputy found genuine and counterfeit bills on Blake. An inventory search of the vehicle yielded additional counterfeit notes and a lock box containing computer equipment used to manufacture counterfeit bills. A follow-up investigation connected White and Lipsey to more than $1,600 in counterfeit Federal Reserve notes.
On September 30, 2015, Blake pleaded guilty to manufacturing and passing counterfeit Federal Reserve notes, and possessing counterfeit business checks. Lipsey pleaded guilty to manufacturing and passing counterfeit Federal Reserve notes on October 26, 2015.
This case was investigated by the Nassau County Sheriff’s Office and the United States Secret Service, Jacksonville Field Office. It is being prosecuted by Assistant United States Attorney Kevin C. Frein.
Oregon Man Sentenced for Traveling to Missouri to Engage in Illicit SexRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a LaGrande, Ore., man has been sentenced in federal court for traveling across states lines to Missouri to engage in illicit sexual activity with two minors, whom he believed were the daughters of an undercover law enforcement officer.
Abdul Lamont Gamble, 41, of LaGrande, Ore., was sentenced by U.S. Chief District Judge Greg Kays on Thursday, Nov. 12, 2015, to five years in prison without parole.
Gamble, who pleaded guilty on May 18, 2015, admitted that he traveled from Oregon to Missouri between March 25 and April 9, 2014, to engage in illicit sexual conduct with a minor.
Gamble contacted an undercover law enforcement officer through an online social media site in October 2013 and offered to have sex with her fictitious 12-year-old and 15-year-old daughters. Gamble engaged in numerous conversations with the undercover detective through late 2013 and early 2014 via this social media site, email and text messages. Gamble described the specific sexual acts he intended on performing with and on the two minor females, for which he agreed to pay $250.
Gamble traveled to Kansas City, Mo., on a Greyhound bus and arrived on April 9, 2014. The undercover officer met him at the bus station. Gamble reconfirmed the sexual acts he intended on performing on and with the two minor girls.
Gamble and the undercover officer stopped at a CVS on Independence Avenue. Police officers arrested Gamble when he exited the car and began to approach the CVS.
This case was prosecuted by Assistant U.S. Attorney Patrick D. Daly. It was investigated by the Kansas City, Mo., Police Department and the FBI.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Miami-Area Pharmacy Owner Sentenced to 42 Months in Prison for Role in $1.5 Million Medicare Part D Fraud SchemeRead the Press Release
A Miami-area pharmacy owner was sentenced today to 42 months in prison for her role in the submission of more than $1.5 million in fraudulent claims to Medicare Part D.
U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office and Special Agent in Charge Shimon R. Richmond of the U.S. Department of Health and Human Services-Office of Inspector General’s (HHS-OIG) Miami Regional Office made the announcement.
Tamara Esponda, 48, of Miami, pleaded guilty to one count of health care fraud on Aug. 7, 2015. In addition to imposing the prison sentence, U.S. District Judge James I. Cohn of the Southern District of Florida ordered Esponda to pay $1,583,976 in restitution.
Esponda owned Biomax Pharmacy Inc. According to admissions made in connection with Esponda’s guilty plea, between October 2012 and September 2013, Biomax Pharmacy submitted fraudulent claims to Medicare for prescription drugs that were not prescribed by physicians, not medically necessary and not provided to Medicare beneficiaries. Esponda further admitted that in perpetrating this fraud she and her accomplices used the beneficiaries’ and doctors’ Medicare identification numbers without their consent. During the course of the scheme, Biomax received more than $1.5 million in payments from Medicare Part D, the prescription drug benefit, based on those false claims.
The case was investigated by the FBI and HHS-OIG, and 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 Florida. The case was prosecuted by Trial Attorney Timothy P. Loper of the Criminal Division’s Fraud Section.
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.
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.
Miami-Area Pharmacy Owner Sentenced to 42 Months in Prison for Role in $1.5 Million Medicare Part D Fraud SchemeRead the Press Release
A Miami-area pharmacy owner was sentenced today to 42 months in prison for her role in the submission of more than $1.5 million in fraudulent claims to Medicare Part D.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office and Special Agent in Charge Shimon R. Richmond of the U.S. Department of Health and Human Services-Office of Inspector General’s (HHS-OIG) Miami Regional Office made the announcement.
Tamara Esponda, 48, of Miami, pleaded guilty to one count of health care fraud on Aug. 7, 2015. In addition to imposing the prison sentence, U.S. District Judge James I. Cohn of the Southern District of Florida ordered Esponda to pay $1,583,976 in restitution.
Esponda owned Biomax Pharmacy Inc. According to admissions made in connection with Esponda’s guilty plea, between October 2012 and September 2013, Biomax Pharmacy submitted fraudulent claims to Medicare for prescription drugs that were not prescribed by physicians, not medically necessary and not provided to Medicare beneficiaries. Esponda further admitted that in perpetrating this fraud she and her accomplices used the beneficiaries’ and doctors’ Medicare identification numbers without their consent. During the course of the scheme, Biomax received more than $1.5 million in payments from Medicare Part D, the prescription drug benefit, based on those false claims.
The case was investigated by the FBI and HHS-OIG, and 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 Florida. The case was prosecuted by Trial Attorney Timothy P. Loper of the Criminal Division’s Fraud Section.
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.
Maryland Man Sentenced to 45 Years in Prison for 2012 Killing of Taxicab Driver in Northeast WashingtonRead the Press Release
WASHINGTON – Joshua Mebane, 20, of Waldorf, Md., was sentenced today to 45 years in prison for the November 2012 killing of a taxicab driver in Northeast Washington, U.S. Attorney Channing D. Phillips announced.
Mebane was found guilty by a jury in September 2015, following a trial in the Superior Court of the District of Columbia, of first-degree murder while armed and nine other charges, including conspiracy, assault with intent to commit robbery while armed, and firearms offenses. He was sentenced by the Honorable Jennifer Anderson.
A co-defendant, Linda Bury, also 20, earlier pled guilty to charges of second-degree murder while armed and conspiracy to commit armed robbery. She is awaiting sentencing.
According to the government’s evidence, Mebane and Bury, both 17 years old at the time, met online in October of 2012. Dissatisfied with their respective home environments, they made a plan to run away together. On Nov. 1, 2012, Mebane took a taxi from his family home in Waldorf, Md., to Bury’s family home in Parkton, Md. They then took a cab into the District of Columbia, and they stayed at a motel in Northeast Washington from Nov. 2 to Nov. 7, 2012.
In light of a dwindling money supply, Mebane and Bury devised a plan to commit a robbery of a taxicab driver on the evening of Nov. 7, 2012. A few minutes before 9 p.m., they randomly hailed a taxicab and instructed the driver, Muhammad Quadeer, to drive them to the rear of Hamilton Junior High School in the 1400 block of Brentwood Parkway NE. Once in the rear of the building, Mebane put on a black latex glove, pulled a 9mm pistol from a nylon bag, and fatally shot Mr. Quadeer, 44, once to the back of his head.
In announcing the sentence, U.S. Attorney Phillips commended the work of those who investigated the case from the Metropolitan Police Department (MPD). He also expressed appreciation for the assistance provided by the District of Columbia Department of Forensic Sciences; Bode Technologies; the Charles County, Md. Sheriff’s Department; the Baltimore County, Md. Police Department, and the Gallaudet University Department of Public Safety. In addition, he acknowledged the efforts of those who handled the case for the U.S. Attorney’s Office, including Assistant U.S. Attorney Sharon Donovan; Litigation Technology Specialist Leif Hickling; Paralegal Specialists Kwasi Fields and Benjamin Kagan-Guthrie; Investigative Analyst Zachary McMenamin; Victim/Witness Advocate Marcia Rinker, and Victim/Witness Security Specialist David Foster. Finally, he commended the work of Assistant U.S. Attorney George A. Pace, who investigated and prosecuted the case.
Manhattan U.S. Attorney Announces Charges Against Former Sec Compliance Examiner for Making False Statements Related to Prohibited Financial HoldingsRead the Press Release
Preet Bharara, United States Attorney for the Southern District of New York, and Carl W. Hoecker, Inspector General of the United States Securities and Exchange Commission, Office of the Inspector General (“SEC-OIG”), announced charges against former SEC Compliance Examiner EUGENIA CANTIELLO for making false statements to the SEC regarding her and her husband’s ownership of various stocks they were prohibited from holding under SEC ethical rules. It is alleged that CANTIELLO, while a Compliance Examiner in the SEC’s New York Regional Office, made false statements to the SEC in order to conceal her ownership of stocks that she, as an SEC employee, was prohibited from holding. The Government and defendant have entered into a deferred prosecution agreement, which was approved in Manhattan Federal Court by U.S. Magistrate Judge James L. Cott today.
According to the allegations in the Criminal Complaint[1] unsealed today:
CANTIELLO was, until 2014, a Compliance Examiner in the SEC’s New York Regional Office. Among other duties, she was responsible for overseeing broker-dealers, investment advisers, investment companies, clearing agencies, and others in their compliance with the nation’s securities laws. As an SEC employee, CANTIELLO was subject to rules issued by the SEC (“SEC Ethics Rules”) designed to prevent conflicts of interest that could arise when SEC employees hold stock in entities subject to routine SEC examinations.
The SEC Ethics Rules prohibit SEC employees from owning stock in entities directly regulated by the SEC, and require employees to submit any proposed personal transactions in such securities to the SEC prior to executing them. The prohibited securities include those of several banks and broker-dealers, including banks with broker-dealer subsidiaries. Individuals who owned stock at the time the changes were implemented were directed to divest their holdings, and provided with instructions on how to do so. The SEC Ethics Rules apply, with equal force, to securities holdings in the names of spouses and immediate family members of SEC employees.
CANTIELLO and her husband held approximately $50,000 in stock in one such prohibited company. Despite warnings and reminders provided by the SEC, CANTIELLO did not divest her and her husband’s holdings as required. Instead, she held on to much of the stock past deadlines imposed by the SEC and later, when the SEC-OIG investigated her holdings, she lied about her conduct in an investigation under oath, falsely claiming – among other things – that she had not been aware that her holdings were prohibited under the SEC Rules.
CANTIELLO, 46, of New Rochelle, New York, is charged with one count of making false statements, which carries a maximum sentence of five years in prison. The statutory maximum penalty is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge.
CANTIELLO has entered into a deferred prosecution agreement which provides that the charges against her will be dismissed in three months if CANTIELLO complies with certain conditions and commits no further offenses.
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Mr. Bharara praised the investigative work of the Securities and Exchange Commission, Office of the Inspector General, and the Criminal Investigators of the United States Attorney’s Office for the Southern District of New York.
The case is being prosecuted by the Office’s Public Corruption Unit. Assistant United States Attorney Martin S. Bell is in charge of the prosecution.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Man Sentenced to Time Served for Illegally Re-Entering the United States from MexicoRead the Press Release
A man who illegally re-entered the country was sentenced on November 9, 2015, to time served.
Isaias Zavala-Aguilar, age 27, from Mexico, received the prison term after an August 24, 2015, guilty plea to one count of illegal re-entry of a removed alien.
At the guilty plea, Zavala-Aguilar admitted he illegally re-entered the United States after being deported on April 26, 2008. Zavala-Aguilar came to the attention of Immigration and Customs Enforcement (ICE) officials on July 16, 2015, after his arrest for soliciting prostitution in Sioux City.
Zavala-Aguilar was sentenced in Sioux City by United States District Court Judge Mark W. Bennett. Zavala-Aguilar was sentenced to time served. He must serve a 1-year term of supervised release.
The case was prosecuted by Assistant United States Attorney Kevin C. Fletcher and investigated by Immigration and Customs Enforcement (ICE) and the Enforcement and Removal Office of the Immigration and Customs Enforcement Bureau.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 15-CR-4049.
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Los Angeles Area Woman Charged with Methamphetamine Trafficking and Firearm OffenseRead the Press Release
BAKERSFIELD, Calif. — A federal grand jury returned a two-count indictment today against Manuela Guadalupe Lizarraga-Hernandez, 32, of Downey, charging her with possession with intent to distribute methamphetamine and possessing a firearm in furtherance of that crime, United States Attorney Benjamin B. Wagner announced.
According to court documents, on February 15, 2015, Lizarraga-Hernandez possessed 440.9 grams of 97 percent pure methamphetamine along with a pink 9 millimeter handgun in the car that she was driving northbound through Kern County on the SR-99 highway.
This case is the product of an investigation by the Drug Enforcement Administration and the California Highway Patrol. Assistant United States Attorney Angela Scott is prosecuting the case.
If convicted, Lizarraga-Hernandez faces a maximum statutory penalty of life in prison and a $5 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Lewis County, WV man convicted of synthetic drug traffickingRead the Press Release
CLARKSBURG, WEST VIRGINIA – John R. Burrows, 54, of Weston, West Virginia, was convicted of synthetic drug trafficking today in federal court, United States Attorney William J. Ihlenfeld, II, announced.
In April 2014, Burrows sold a synthetic cannabinoid known as AM-2201 in a package labeled “Crown Worthy.” When depositing proceeds from the sale of these drugs into his bank accounts, he structured those deposits so as to avoid the reporting requirements of the Internal Revenue Service.
Burrows pled guilty today to a criminal Information charging him with one count of “Distribution of a Schedule I Drug – Controlled Substance” for which he faces up to 20 years in prison and a fine of up to $1,000,000, and one count of “Structuring Transactions to Evade Reporting Requirement” for which he faces up to 10 years in prison and a fine of up to $500,000. 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 Robert McWilliams prosecuted the case on behalf of the government. The West Virginia State Police and the Internal Revenue Service Criminal Investigations led the inquiry.
U.S. Magistrate Judge Michael John Aloi presided.
Leader of “Scheme Team” Gang Sentenced to 20 Years for Sex TraffickingRead the Press Release
ALEXANDRIA, Va. – Alexis Rahkeem Carter, aka Bishop, 25, of Fairfax, was sentenced today to 20 years in prison for sex trafficking of a child.
Carter pleaded guilty on Aug. 31, 2015. According to court documents, Carter was a leader of a gang known as “Scheme Team.” In addition to robbery, narcotics, and weapons trafficking, Carter and Scheme Team generated revenue by sex trafficking teenage girls and adults. One of the girls sex trafficked by Carter was 15 years old. Carter instructed victims to lie to customers by telling them that they were over 18 years old, unless a customer requested an underage girl. Despite their youth, Carter instructed the victims to submit to any sex acts that customers demanded. In addition to exploiting these minors for profit, Carter also used these victims for his own sexual gratification.
Carter sex trafficked women and girls in 2014 and 2015 in Maryland, West Virginia, Pennsylvania, and Virginia. Carter set a monetary quota of $1,000 per day, which victims were required to earn, and the victims generally met this quota. Carter received nearly all of the commercial sex proceeds earned by the girls he sex trafficked, and he sometimes required victims to submit to searches to ensure they were not keeping any of the prostitution proceeds from Carter.
To keep victims compliant, Carter frequently provided them with alcoholic beverages and controlled substances, including OxyContin, Percocet, molly, spice (also known as “K2”), Xanax, Roxicodone, and marijuana. Carter also told victims that he had guns, threatened victims with violence, and used physical force on victims, including pulling their hair and shoving them.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Clark E. Settles, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington; and Charles E. Jett, Stafford County Sheriff, made the announcement after sentencing by U.S. District Judge Claude M. Hilton. Assistant U.S. Attorney Michael J. Frank is prosecuting the case and was assisted by the Stafford County Commonwealth’s Attorney’s Office.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:15-cr-256.
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Kern County Man Indicted for Illegal Possession of a Destructive Device and FirearmsRead the Press Release
FRESNO, Calif. — A federal grand jury returned a four-count indictment today against Kenneth William Kirkland, 47, of California City, charging him with being a felon in possession of firearms, a destructive device and explosives, and failing to register a destructive device in the National Firearms Registry, United States Attorney Benjamin B. Wagner announced.
According to court documents, Kirkland possessed a bomb, various explosives, and three firearms at his residence in California City.
This case is the product of an investigation by the Federal Bureau of Investigation, the California City Police Department, the Kern County Sheriff’s Office and the California Highway Patrol. Assistant United States Attorney Angela Scott is prosecuting the case.
If convicted, Kirkland faces a maximum statutory penalty of 20 years in prison and a $260,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Justice Department Requires Springleaf to Divest 127 Branches in 11 States in Order to Complete Acquisition of OneMain FinancialRead the Press Release
The Department of Justice announced today that it will require Springleaf Holdings, Inc. (Springleaf) to divest 127 branches with over $600 million in loan receivables in order for Springleaf to proceed with its proposed $4.25 billion acquisition of OneMain Financial Holdings, LLC (OneMain) from CitiFinancial Credit Company, a wholly owned subsidiary of Citigroup, Inc.
The Antitrust Division, along with the offices of seven state attorneys general, filed a civil antitrust lawsuit today in the U.S. District Court for the District of Columbia to block the proposed transaction. At the same time, the department filed a proposed settlement that, if approved by the court, would resolve the competitive concerns alleged in the lawsuit. The participating state attorneys general offices represent Colorado, Idaho, Pennsylvania, Texas, Virginia, Washington and West Virginia.
“Personal installment loans are often a critical lifeline for borrowers with limited credit options, allowing them to pay for unexpected expenses or to consolidate debts,” said Assistant Attorney General Bill Baer, of the Justice Department’s Antitrust Division. “Today’s proposed settlement will ensure that subprime borrowers in over 100 local markets across the United States continue to enjoy the benefits of competition when they seek these important loan products.”
Without the divestiture, subprime borrowers seeking personal installment loans would face fewer choices for these important loan products in local markets located in Arizona, California, Colorado, Idaho, North Carolina, Ohio, Pennsylvania, Texas, Virginia, Washington and West Virginia.
Personal installment loans to subprime borrowers are fixed-rate, fixed-term and fully amortized loan products that are marketed to consumers who have limited access to credit from traditional banking institutions. According to the complaint, Springleaf and OneMain are the two largest providers of personal installment loans to subprime borrowers in the United States. Springleaf and OneMain specialize in the same products (large installment loans typically ranging from $3,000 to $6,000), target the same customer base, and have a large degree of geographic overlap between their branch networks.
Specifically, the complaint alleges that in local markets within and around 126 towns and municipalities in eleven states, Springleaf and OneMain operate branches in close proximity to one another – often within five miles – and face few, if any, other competitors. According to the complaint, the loss of head-to-head competition between Springleaf and OneMain would result in a reduction of consumer choice that likely would drive subprime borrowers to much more expensive forms of credit or leave them with no reasonable alternative.
Under the terms of the proposed consent decree, Springleaf must divest 127 branches in eleven states to Lendmark Financial Services or to an alternative buyer approved by the United States. The divestiture includes all active loans originated or serviced at the divested branches and other assets associated with the branches. Divestiture of the branches to Lendmark will create a new competitor in the provision of personal installment loans to subprime borrowers in Arizona, California, Colorado, Idaho, Ohio, Texas, and Washington. In North Carolina, Pennsylvania, Virginia, and West Virginia, the divestiture will establish Lendmark as a new competitor in some local areas and enhance its competitive presence in others. Taken together, the divestitures will remedy the loss of competition alleged in the department’s complaint.
Springleaf is a Delaware corporation with its headquarters in Evansville, Indiana. Springleaf operates approximately 830 branches in 27 states. Springleaf has a consumer loan portfolio that totals $4 billion.
OneMain is a Delaware limited liability company with its headquarters in Baltimore. OneMain operates approximately 1,139 branches in 43 states. OneMain is a subsidiary of CitiFinancial Credit Company, a holding company that is a wholly-owned subsidiary of Citigroup. OneMain has a consumer loan portfolio that totals $8.4 billion.
As required by the Tunney Act, the proposed consent decree, along with the department’s competitive impact statement, will be published in the Federal Register. Any person may submit written comments concerning the proposed settlement within 60 days of its publication to Maribeth Petrizzi, Chief, Litigation II Section, Antitrust Division, U.S. Department of Justice, 450 Fifth Street, N.W., Suite 8700, Washington, D.C. 20530. At the conclusion of the 60-day comment period, the court may enter the final judgment upon a finding that it serves the public interest.
Springleaf Complaint (596.89 KB)
Springleaf APSO (352.74 KB)
Springleaf CIS (634.75 KB)
Springleaf PFJ (735.57 KB)
Justice Department Announces Standard Chartered Bank (Switzerland) SA Reaches Resolution Under Swiss Bank ProgramRead the Press Release
The Department of Justice announced today that Standard Chartered Bank (Switzerland) SA, en liquidation (SCB Switzerland), reached a resolution under the department’s Swiss Bank Program.
The Swiss Bank Program, which was announced on Aug. 29, 2013, provides a path for Swiss banks to resolve potential criminal liabilities in the United States. Swiss banks eligible to enter the program were required to advise the department by Dec. 31, 2013, that they had reason to believe that they had committed tax-related criminal offenses in connection with undeclared U.S.-related accounts. Banks already under criminal investigation related to their Swiss-banking activities and all individuals were expressly excluded from the program.
Under the program, banks are required to:
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Make a complete disclosure of their cross-border activities;
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Provide detailed information on an account-by-account basis for accounts in which U.S. taxpayers have a direct or indirect interest;
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Cooperate in treaty requests for account information;
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Provide detailed information as to other banks that transferred funds into secret accounts or that accepted funds when secret accounts were closed;
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Agree to close accounts of accountholders who fail to come into compliance with U.S. reporting obligations; and
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Pay appropriate penalties.
Swiss banks meeting all of the above requirements are eligible for a non-prosecution agreement.
According to the terms of the non-prosecution agreement signed today, SCB Switzerland agrees to cooperate in any related criminal or civil proceedings, demonstrate its implementation of controls to stop misconduct involving undeclared U.S. accounts and pay penalties in return for the department’s agreement not to prosecute this bank for tax-related criminal offenses.
SCB Switzerland is a private bank with a single office located in Geneva, Switzerland. It is a wholly owned subsidiary of Standard Chartered PLC, a British multinational banking and financial services company headquartered in London. SCB Switzerland joined the Standard Chartered group of entities (the Standard Chartered Group) in May 2008 when Standard Chartered PLC acquired American Express Bank Ltd. As part of that acquisition, Standard Chartered Group acquired American Express Bank (Switzerland) SA, a private bank incorporated in Switzerland in 1987, which thereafter operated under the name SCB (Switzerland) SA.
In early 2014, the Standard Chartered Group decided to cease its Swiss private banking operations for commercial reasons. SCB Switzerland is now in voluntary formal liquidation. Subject to Swiss regulatory approval, SCB Switzerland expects to return its banking license at the end of 2015, and then the entity will continue to exist as a corporation in liquidation until at least the end of 2018, without banking status or supervision by Swiss Financial Market Supervisory Authority FINMA and with no operations other than completing the wind down.
Through its employees and others, SCB Switzerland knew or should have known that some of the U.S. persons who opened or maintained accounts at SCB Switzerland may not have complied with their U.S. income tax and reporting obligations. By establishing and maintaining such accounts, SCB Switzerland provided assistance to certain U.S. persons in evading their U.S. tax obligations. Among other things, SCB Switzerland:
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Agreed to hold account statements and other mail relating to some U.S.-related accounts;
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Provided account statements and other documentation to the accountholder which contained only the account number in order to further insure the secrecy of the identity of the accountholder; and
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Accepted and included in its account records Internal Revenue Service (IRS) Forms W-8BEN (or equivalent documents) provided by the directors of the offshore companies that falsely represented that such companies were the beneficial owners of the assets in those accounts for U.S. federal income tax purposes.
SCB Switzerland opened and maintained accounts for certain U.S. persons in the name of structures, including trusts created by American Express and inherited and maintained by affiliates of SCB Switzerland, which served as the nominal accountholders of bank accounts that held assets that, in reality, belonged to U.S. persons. SCB Switzerland adopted the Advisory Center/Booking Center Model from American Express Bank. This method allowed clients to book and hold accounts in any of Standard Chartered Group’s booking centers, including Geneva, while working with relationship managers at other locations throughout the world. The Group also acquired a trust center from American Express Bank. Trust services were available to eligible clients who wished to set up trusts or private investment companies. The trust centers were located in Guernsey, Singapore and the Cayman Islands. A client could create a trust structure in any one of the trust centers while opening an account in another booking center and working with a relationship manager in another advisory center.
SCB Switzerland maintained one account held by a British Virgin Islands private investment company, of which the beneficial owner was a U.S. citizen. The beneficial owner had provided SCB Switzerland with a false W-8BEN, and SCB Switzerland was unaware of the U.S. citizenship of the beneficial owner until 2010. In 2010, a compliance officer discovered the beneficial owner’s U.S. citizenship through a periodic review of the account that included an Internet search. Nevertheless, SCB Switzerland maintained the account for approximately two years after discovering that the beneficial owner was a U.S. citizen.
Since Aug. 1, 2008, SCB Switzerland held 22 U.S.-related accounts, comprising a peak of aggregated assets under management of $33.1 million. SCB Switzerland will pay a penalty of $6.337 million.
In accordance with the terms of the Swiss Bank Program, SCB Switzerland mitigated its penalty by encouraging U.S. accountholders to come into compliance with their U.S. tax and disclosure obligations. While U.S. accountholders at SCB Switzerland who have not yet declared their accounts to the IRS may still be eligible to participate in the IRS Offshore Voluntary Disclosure Program, the price of such disclosure has increased.
Most U.S. taxpayers who enter the IRS Offshore Voluntary Disclosure Program to resolve undeclared offshore accounts will pay a penalty equal to 27.5 percent of the high value of the accounts. On Aug. 4, 2014, the IRS increased the penalty to 50 percent if, at the time the taxpayer initiated their disclosure, either a foreign financial institution at which the taxpayer had an account or a facilitator who helped the taxpayer establish or maintain an offshore arrangement had been publicly identified as being under investigation, the recipient of a John Doe summons or cooperating with a government investigation, including the execution of a deferred prosecution agreement or non-prosecution agreement. With today’s announcement of this non-prosecution agreement, noncompliant U.S. accountholders at SCB Switzerland must now pay that 50 percent penalty to the IRS if they wish to enter the IRS Offshore Voluntary Disclosure Program.
Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division thanked the IRS and in particular, IRS-Criminal Investigation and the IRS Large Business & International Division for their substantial assistance. Ciraolo also thanked Lisa L. Bellamy, who served as counsel on this matter, as well as Senior Counsel for International Tax Matters and Coordinator of the Swiss Bank Program Thomas J. Sawyer, Senior Litigation Counsel Nanette L. Davis and Attorney Kimberle E. Dodd of the Tax Division.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
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