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1 December 2015
Baltimore Drug Dealer Exiled to 10 Years in PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge William D. Quarles, Jr. sentenced Hosie Hopkins, age 49, of Baltimore, today to 10 years in prison followed by three years of supervised release for possession with intent to distribute narcotics. Judge Quarles also entered an order that Hopkins forfeit a semi-automatic handgun and ammunition which Hopkins was prohibited from possessing as a result of two previous drug convictions.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Baltimore City State’s Attorney Marilyn Mosby; and Baltimore Police Commissioner Kevin Davis.
According to his plea agreement, on April 22, 2014, Baltimore Police detectives saw Hopkins leave a dwelling in Baltimore City, go to another location in Baltimore City, remove a plastic bag from under his shirt/dip area, and place the bag under a wooden deck at a vacant house. Thereafter, officers found the plastic bag under the deck, which contained five gelatin capsules of heroin.
Police arrested Hopkins and executed a search warrant at the house Hopkins had left earlier that day. Police seized packaging material for narcotics including ziplock bags and vials; ziplock bags containing heroin cutting substances; and several gel capsules of heroin.
Additionally, the government stated at sentencing that a firearm was seized by police during the execution of the search warrant. That firearm was the subject of the Court’s forfeiture order.
United States Attorney Rod J. Rosenstein commended the ATF, Baltimore Police Department and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Michael C. Hanlon, who prosecuted the case.
Albuquerque Man Pleads Guilty to Theft of Medical Products and Firearms Charges Arising Out of Armed Robbery of Retail Pharmacy in June 2013Read the Press Release
ALBUQUERQUE – Eddie Gallegos, 39, of Albuquerque, N.M., pleaded guilty this morning in federal court to theft of medical products and firearms charges arising out of the robbery of an Albuquerque-area retail pharmacy in June 2013. Under the terms of the plea agreement, Gallegos will be sentenced to 84 months in prison followed by a term of supervised release to be determined by the court.
Gallegos was arrested in June 2015, on an indictment charging him with violating the Hobbs Act by robbing a business engaged in interstate commerce, using and carrying a firearm during a crime of violence, violating the Safe Doses Act by stealing medical products, and possession of oxycodone with intent to distribute. The charges against Gallegos arise out of the robbery of Phil’s Pills, a retail pharmacy in Albuquerque, on June 21, 2013.
During today’s proceedings, Gallegos pled guilty to brandishing a firearm in furtherance of a crime of violence and to violating the Safe Doses Act by stealing medical products. In entering his guilty plea, Gallegos admitted that on June 21, 2013, he entered the pharmacy called Phil’s Pills located at 5510 Lomas Blvd. in Albuquerque, pointed his firearm at an employee and the store owner, and demanded they fill his backpack with Oxycodone, OxyContin and Fentanyl. After the store owner complied with his demand, Gallegos fled the scene.
This case was investigated by the Albuquerque office of the FBI, the Tactical Diversion Squad of the DEA in Albuquerque and the Albuquerque Police Department. Assistant U.S. Attorneys Joel R. Meyers and Shaheen P. Torgoley are prosecuting the case.
DEA’s Tactical Diversion Squads combine DEA resources with those of federal, state and local law enforcement agencies in an innovative effort to investigate, disrupt and dismantle those suspected of violating the Controlled Substances Act or other appropriate federal, state or local statutes pertaining to the diversion of licit pharmaceutical controlled substances or listed chemicals.
The Controlled Substance Registrant Protection Act was enacted in 1984, to combat the theft of prescription drugs from individuals and businesses registered with the DEA. It created penalties for entering a pharmacy’s premises for the purpose of stealing controlled substances, and includes enhanced punishment for using a dangerous weapon. The Safe Doses Act was enacted in Oct. 2012, to fight medical theft and protect patients from unknowingly using stolen and mishandled drugs. It provides for enhanced sentences for those who rob pharmacies of controlled substances; individuals who steal medical products; and “fences” who knowingly obtain stolen medical products for resale in the supply chain.
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.
2 Sex Offenders Convicted of Online Solicitation ChargesRead the Press Release
CORPUS CHRISTI, Texas – Two men, already convicted sex offenders who resided in Corpus Christi, have both been convicted for online solicitation of a minor in separate but similar cases, announced U.S. Attorney Kenneth Magidson.
James Robert Kirkland, 48, pleaded guilty today before Senior U.S. District Hayden Head, while Taylor Alan Mills, 29, entered his guilty plea before Senior U.S. District Judge Janis Graham Jack yesterday.
At the hearings, each judge heard that in September 2015, FBI, Homeland Security Investigations (HSI) and the Corpus Christi Police Department—Internet Crimes Against Children Task Force (CCPD-ICAC) conducted a joint investigation targeting individuals involved in online solicitation of minors. Mills and Kirkland were both communicating with a person they believed was the mother of two minor female children – ages 14 and 11. In reality, they were actually talking to an undercover officer. Mills and Kirkland each made arrangements to meet and engage in sexual activity with the mother’s minor female children.
Both men were apprehended as they arrived at the designated meeting places. At the time of each man’s arrest, they both had had several condoms with them and admitted to authorities that their intentions were to engage in sexual acts with the minor children.
Mills will be sentenced Feb. 9, 2016, before Judge Jack, while Kirkland is set for Feb. 10, 2016, before Judge Head. At their hearings, Mills and Kirkland face a minimum of 10 years and up to life in federal prison. Upon completion of any prison term imposed, they also face a maximum of life on supervised release during which time the court can impose a number of special conditions designed to protect children and prohibit the use of the Internet.
Both men were arrested on the federal charges in September 2015 and have been in custody since that time where they will remain pending his sentencing hearing.
The cases, prosecuted by Assistant U.S. Attorney Hugo R. Martinez, 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."
30 November 2015
Williamson County Resident Sentenced for Drug OffenseRead the Press Release
On November 24, 2015, Corinthus Bevely, a/k/a "Rent," 45, of Marion, Illinois was sentenced for a federal drug offense, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Bevely, who had previously pled guilty to a one-count indictment charging conspiracy to distribute cocaine and crack cocaine, was sentenced to 151 months in federal prison, to be followed by 3 years of supervised release, and fined $850.00. The offense occurred between March 2014 and December 2014, in Williamson County. Evidence at the plea and sentencing hearings established that Bevely was involved with others in the distribution of cocaine and crack cocaine. On multiple occasions, Bevely sold cocaine and crack cocaine to confidential sources working for law enforcement. Bevely received an enhanced sentence based on his classification as a Career Offender.
The investigation was conducted by the Southern Illinois Enforcement Group. The Williamson County State’s Attorney’s Office assisted in the investigation.
The case was assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
Wichita Man Sentenced to 7.5 Years for Bank RobberyRead the Press Release
WICHITA, KAN. - A Wichita man was sentenced Monday to 90 months in federal prison for bank robbery, U.S. Attorney Barry Grissom said.
Myron T. Markham, 31, Wichita, Kan., pleaded guilty to one count of bank robbery. In his plea, he admitted that on March 12, 2014, he robbed the Fidelity Bank at 100 E. English in Wichita. After leaving the bank, he threw away his sweatshirt and hat and caught a bus to his brother’s house.
Grissom commended the Wichita Police Department, the FBI and Assistant U.S. Attorney Jason Hart for their work on the case.
Whitehall Man Indicted on Firearms ChargesRead the Press Release
ALBANY, NEW YORK – A federal grand jury has returned an indictment charging Shane Smith, age 18, of Whitehall, New York, with two counts of illegal possession of a machinegun and one count of possession of an unregistered firearm (silencer), announced United States Attorney Richard S. Hartunian and Andrew W. Vale, Special Agent-in-Charge of the Albany Division of the Federal Bureau of Investigation.
Smith was arraigned today before United States Magistrate Judge Christian F. Hummel, and ordered detained pending trial. On each count, Smith faces a maximum of 10 years in prison and up to 3 years of supervised release. He also faces a maximum $250,000 fine on each machinegun possession charge, and a maximum $10,000 fine on the silencer possession charge.
Smith was arrested on August 6, 2015 and charged by complaint after he acquired, from an undercover agent, a Colt M16 model A2, a military-grade assault rifle capable of firing as a machinegun; a Military Armament Corporation “MAC 10” machinegun; a silencer; a Beretta model 92FS handgun; and 120 rounds of “green-tip” ammunition with armor-piercing capability.
The charges and allegations announced today are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
This case is being investigated by the FBI Joint Terrorism Task Force in Albany, and is being prosecuted by Assistant United States Attorneys Sean O’Dowd and Solomon B. Shinerock.
Wheeling man sentenced to 12.5 years in prison for heroin traffickingRead the Press Release
WHEELING, WEST VIRGINIA – Tyrell Askerneese, 37, of Wheeling, was sentenced today to 151 months in prison for heroin trafficking, United States Attorney William J. Ihlenfeld, II, announced.
Askerneese sold heroin in May 2014 in Ohio County, West Virginia. He pled guilty in August 2015 to one count of “Aiding and Abetting the Distribution of Heroin.”
Assistant U.S. Attorney Stephen Vogrin prosecuted the case on behalf of the government. The Marshall County Drug and Violent Crime Task Force, the Ohio Valley Drug and Violent Crime Task Force, both HIDTA-funded initiatives, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the United States Marshals Service, and the Wheeling Police Department investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr. presided.
Victoria Man Heads to Prison for Possessing Child PornographyRead the Press Release
VICTORIA, Texas – A 28-year-old man residing in Victoria has been ordered to federal prison following his conviction of possession of child pornography, announced U.S. Attorney Kenneth Magidson. Sean Patrick Mciver entered a guilty plea Aug. 3, 2015.
Today, Senior U.S. District Judge John D. Rainey handed McIver a 72-month-sentence. McIver was further ordered to serve 10 years of supervised release following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the Internet. He will also be ordered to register as a sex offender.
At the time of his plea, the court heard that agents with Homeland Security Investigations (HSI), while using peer-to-peer software, were able to successfully download various files containing child pornography from an IP address that was associated with Mciver. In December 2014, agents executed a search warrant at Mciver’s residence, at which time they seized various electronic devices. Forensic analysis on those devices revealed more than 450 images and 24 videos of child pornography. Mciver admitted to using the peer-to-peer software to download the child pornography.
Mciver was arrested on the federal charges in March 2015 and has been in custody since the time where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
HSI investigated with the assistance of the Corpus Christi Police Department – Internet Crimes Against Children Task Force.
This case, prosecuted by Assistant U.S. Attorney Hugo R. Martinez, 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."
UOG Invites U.S. Attorney to Speak at Public Corruption ConferenceRead the Press Release
ALICIA A.G. LIMTIACO, U.S. Attorney for the Districts of Guam and the Northern Mariana Islands (NMI), was invited to speak at the University of Guam (UOG) School of Business and Public Administration’s Conference on November 25, 2015. The School of Business and Public Administration’s purpose for the conference was to “explore the role of government and business leaders in tackling the challenges of corruption, gaining the trust of the community to preserve confidence in our administration of government, and identifying strategies and courses of action to eliminate corruption.” The conference included sessions on improving public policy, recommending policy solutions and strategically planning for the future.
Two more defendants sentenced for roles in Detroit to Huntington heroin conspiracyRead the Press Release
HUNTINGTON, W.Va. – Two men who participated in a heroin conspiracy between 2012 and 2014 were sentenced today in federal court in Huntington, West Virginia, announced United States Attorney Booth Goodwin. Kenneth E. Baxter, 25, of Detroit, was sentenced to seven years and three months in federal prison after previously pleading guilty to distributing heroin. Coty S. Richardson, 24, of South Point, Ohio, was sentenced to five years and ten months in federal prison after previously pleading guilty to attempting to possess with intent to distribute 100 grams or more of heroin.
From November 2012 to December 8, 2014, Baxter led a conspiracy that involved the transportation of heroin from Detroit to Huntington for distribution. Once in Huntington, Baxter provided heroin to others, including Richardson, for distribution from multiple residences in the Huntington area. Baxter was also personally engaged in the drug deals, and sold heroin to confidential informants on four separate occasions between April and December of 2014.
One of the residences secured by the group was at 403 Homestead Place in Huntington. Richardson arranged for the lease of the residence, and the residence was used to prepare and distribute heroin. On December 6, 2014, a postal inspector with the United States Postal Inspection Service intercepted a package addressed to the residence containing approximately 230 grams of heroin. Agents delivered the package that day and executed a search warrant at the residence after the package was accepted. Upon entering the residence, agents observed Richardson throwing the package from a second floor window. When Richardson was arrested, agents seized heroin, paraphernalia used to package and distribute heroin, and firearms from the residence.
Multiple defendants have been convicted of federal drug charges due to this investigation, including Paul A. Roberts, who pleaded guilty to maintaining a residence for the distribution of heroin in March 2015, Dustin S. Barton, who pleaded guilty to distributing heroin in August 2015, and Sean L. Gist, who pleaded guilty to conspiracy to distribute 100 grams or more of heroin in September 2015. This investigation has also resulted in prison sentences for additional defendants for their roles in this conspiracy, including Ramone L. Wells, who was sentenced to four years in federal prison, and Pricilla Lee Dylan, who was sentenced to two years and nine months in federal prison.
The Huntington FBI Drug Task Force, United States Postal Service, West Virginia State Police, and Huntington Police Department conducted the investigation. Assistant United States Attorney Joseph F. Adams handled the prosecution.
This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Two Sentenced to Lengthy Federal Prison Sentences for Roles in Methamphetamine Distribution ConspiracyRead the Press Release
FORT WORTH, Texas — U.S. District Judge Reed C. O’Connor sentenced two defendants to lengthy federal prison sentences today for their respective roles in a methamphetamine distribution conspiracy that operated in the Dallas – Fort Worth area since 2013, announced U.S. Attorney John Parker of the Northern District of Texas.
Andres Silva, 36, was sentenced to 210 months and Melissa Slade, 40, was sentenced to 240 months in federal prison. Each pleaded guilty in July 2015 to one count of conspiracy to possess with the intent to distribute methamphetamine.
According to documents filed in the case, since 2013, Silva supplied methamphetamine to various distributors. Slade received quantities of methamphetamine on consignment and in turn distributed it to various customers in the North Richland Hills, Haltom City and Fort Worth areas.
The Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and the Texas Department of Public Safety investigated. Assistant U.S. Attorney Shawn Smith was in charge of the prosecution.
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Two Sentenced for Obstruction of JusticeRead the Press Release
A man and a woman who attempted to obstruct a federal court proceeding by providing a false document were each sentenced on November 25, 2015, to about two years in federal prison.
Asa Adams, age 26, from Waterloo, Iowa, received the prison term after a June 29, 2015, guilty plea to one count of obstruction of justice.
Nicole Wells, age 36, also from Waterloo, Iowa, received the prison term after a July 6, 2015, guilty plea to one count of obstruction of justice.
In plea agreements, Adams and Wells admitted that they worked together to create a false letter to be presented in federal court in a failed attempt to help Adams evade a revocation of his supervised release. Adams was convicted in 2011 of being a felon in possession of a firearm. After serving a sixteen-month sentence in federal prison, Adams was placed on supervised release on October 2, 2014. One of the conditions imposed on supervised release was that Adams not use controlled substances. On December 24, 2014, Adams submitted a urine sample that tested positive for marijuana. His drug use was tested by random urinalysis. In an attempt to evade having his supervised release revoked and being sent back to prison, Adams recruited his coworker and friend, Nicole Wells, to fabricate a false letter. The letter, purportedly written by a supervisor at the restaurant where Adams and Wells worked, falsely claimed another employee had brought in marijuana-laced brownies to work. The letter was not written by the supervisor and there were no marijuana-laced brownies.
Adams provided the false and fictitious letter to his defense attorney, who unwittingly filed it with the federal court as an exhibit. At a hearing on a petition to revoke Adams’s supervised release, however, the letter was shown to be false when the supervisor and employee who allegedly brought the brownies to work testified to the contrary.
The court found Adams had tested positive for marijuana because he had used marijuana, and sentenced Adams to a year in federal prison for violating the terms of his supervised release.
Adams and Wells were sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Adams was sentenced to 27 months’ imprisonment (to run consecutively to the one-year sentence previously imposed) and Wells was sentenced to 21 months’ imprisonment. A special assessment of $100 was imposed on each of them. Each must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Adams is being held in the United States Marshal’s custody until he can be transported to a federal prison.
Wells was released on the bond previously set and is to surrender to the Bureau of Prisons on a date yet to be set.
The case was prosecuted by Assistant United States Attorney C.J. Williams and investigated by the Federal Bureau of Investigation.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 15-CR-42-LRR.
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Two L.A. Deputy Sheriffs Sentenced to Federal Prison in Civil Rights Case Stemming from Beating of Visitor at Downtown Los Angeles JailRead the Press Release
LOS ANGELES – Two former Los Angeles Sheriff’s deputies who violated the civil rights of a visitor to the Men’s Central Jail by beating him while he was restrained with handcuffs were sentenced today, each being ordered to serve at least six years in federal prison.
Fernando Luviano, 37, was sentenced to 84 months in prison, and Sussie Ayala, 30, was sentenced to 72 months in prison.
The two defendants, who were each found guilty by a federal jury in June of violating the civil rights of the beating victim and falsifying records about the incident, were sentenced today by United States District Judge George H. King.
Following the imposition of the sentences, Judge King remanded both Luviano and Ayala into custody.
Another deputy sheriff who also was found guilty at trial – former Sergeant Eric Gonzalez – was sentenced earlier this month to eight years in federal prison and also was immediately taken into custody.
The jury that convicted Luviano, Ayala and Gonzalez found that they violated the civil rights of the victim in 2011 when they beat the man and caused serious bodily injury. Ayala and Gonzalez were additionally convicted of conspiring to violate the victim’s civil rights by using unreasonable force.
“As Judge King said today, the lengthy prison sentences imposed in this case send a clear message that no law enforcement officer is above the law,” said United States Attorney Eileen M. Decker. “These two former deputy sheriffs failed to uphold their oaths and abused their positions of power when they beat and pepper sprayed a handcuffed victim. Such conduct undermines the public’s trust in law enforcement and all the good work that peace officers do every day to protect our communities.”
Two other defendants involved in the incident – Pantamitr Zunggeemoge and Noel Womack – previously pleaded guilty and are scheduled to be sentenced by Judge King on January 25.
Last month, a federal grand jury indicted a sixth deputy in relation to the incident at the Visiting Center. Former Deputy Byron Dredd has pleaded not guilty.
The evidence presented at the trial of the three deputies showed that the victim and his girlfriend went to the jail to visit the woman’s incarcerated brother on February 26, 2011. Both visitors were in the possession of cell phones, which is prohibited under jail rules. When the phones were discovered, the victim was handcuffed and brought into an employee break room, where he was beaten and sprayed with pepper spray. The victim was later transferred to the hospital by paramedics.
In court documents that argued Luviano had a reputation of being “heavy-handed” with the violent prisoners he guarded at the jail, prosecutors said that Luviano “initiated the excessive force and used the most force against” the victim. Prosecutors wrote in a brief that his “violent crime and cover-up are serious offenses that harm the specific victim and tarnish the public trust in law enforcement.” Judge King agreed, finding there was “evidence of prior violent behavior toward inmates” by Luviano at Men’s Central Jail.
In papers related to Ayala’s sentencing, prosecutors wrote that “[s]he, like the other defendants in this case, abused her power by participating in a beating of a handcuffed man, lying to cover up her and her partners’ misdeeds, jailing the victim of their abuse, and putting that victim at risk of prosecution and a significant sentence for crimes he did not commit.”
In court today, Judge King said that Ayala’s actions “demonstrates that this really was a practice” of using excessive force against people inside the jail.
This case is the result of an investigation by the FBI, and is one in a series of cases resulting from investigation into corruption and civil rights abuses at county jails in downtown Los Angeles. Fifteen current or former members of the Los Angeles Sheriff’s Department have now been convicted of federal charges.
Tucumcari Man Sentenced for Federal Methamphetamine Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Alexander Page, 28, of Tucumcari, N.M., was sentenced today in federal court in Albuquerque, N.M., to 27 months in prison followed by three years of supervised release for his methamphetamine trafficking conviction.
Page and his co-defendants, Michael Montoya, 37, Brian Acuna, 24, and Dianna Hernandez-Trujillo, 24, all of Clovis, N.M., were arrested in Nov. 2013, on a six-count indictment charging them with trafficking methamphetamine in three New Mexico counties. The indictment charged all four defendants with conspiracy to distribute methamphetamine in Curry County, N.M., between Oct. 2007 and Nov. 2013. It also charged Montoya with possession of methamphetamine with intent to distribute on Oct. 11, 2011 in Curry County; Montoya and Acuna, and Hernandez-Trujillo with possession of methamphetamine with intent to distribute on March 27, 2012, in Cibola County; and Montoya and Page with possession of methamphetamine with intent to distribute on Nov. 7, 2012, in Socorro County. Montoya was also charged with money laundering for purchasing a residence with money derived from a drug trafficking activity on Sept. 22, 2010, and Acuna was charged with using and carrying a firearm in relation to a drug trafficking crime on March 27, 2012, in Cibola County.
On July 7, 2015, Page pled guilty to a felony information charging him with possession of methamphetamine with intent to distribute. In his plea agreement, Page admitted that he was stopped for driving 85 miles per hour in a 35 mile per hour zone by a deputy of the Socorro County Sheriff’s Office on Nov. 7, 2012, while traveling near Socorro, N.M. During a search of the vehicle driven by Page, the deputy found approximately 1259 grams of methamphetamine in a hidden compartment in the vehicle. At the time, Page was transporting the methamphetamine to Clovis where the drugs were to be sold and where Page was to be paid for transporting the drugs.
On Oct. 1, 2015, Montoya pled guilty to conspiracy to distribute methamphetamine and to money laundering. Montoya admitted arranging for drivers to travel to California in vehicles he provided so that they could transport methamphetamine from his sources of supply. Montoya then distributed the methamphetamine in New Mexico. He also admitted being the owner of the 1.7 kilograms of methamphetamine seized from Acuna on March 27, 2012, and the 1.2 kilograms of methamphetamine seized from Page on Nov. 7, 2012. In entering his guilty plea, Montoya also admitted that on Sept. 22, 2010, he purchased a residence in Clovis with proceeds from his ongoing narcotics activities. Montoya is currently scheduled to be sentenced on Jan. 6, 2016.
Acuna pled guilty on June 26, 2014, to participation in a methamphetamine trafficking conspiracy, possession of methamphetamine with intent to distribute, and using and carrying a firearm in relation to and in furtherance of a drug trafficking crime. In entering his guilty plea, Acuna admitted that on March 27, 2012, he and a co-defendant were stopped by police while transporting methamphetamine from California to Clovis. At the time of the stop, Acuna and the co-defendant knew that a large quantity of methamphetamine was concealed in a secret compartment in the vehicle and that additional methamphetamine was in a backpack in the vehicle. Acuna also admitted that he had a revolver and ammunition in the vehicle for protection. At sentencing, Acuna faces a mandatory minimum of 10 years to a maximum of life imprisonment on the methamphetamine trafficking charges. On the gun charge, Acuna faces a mandatory minimum of five years in prison which must be served consecutive to any sentence imposed on the drug charges. Acuna’s sentencing hearing is currently scheduled for Jan. 12, 2016.
Hernandez-Trujillo has entered a not guilty plea to the indictment and is participating in a judicial pretrial diversion program. Charges in indictments are merely accusation and defendants are presumed innocent unless found guilty in a court of law.
This case was investigated by the Albuquerque office of the FBI and the Socorro County Sheriff’s Office. Assistant U.S. Attorneys Sean J. Sullivan and Jennifer M. Rozzoni are prosecuting this case.
Ten Individuals Convicted and Sentenced in Health Care Fraud SchemeRead the Press Release
NORFOLK, Va. – Ten former employees of Progressive Counseling Services, LLC, a Virginia Beach based counseling business, were convicted and sentenced for their roles in a scheme to defraud the Virginia Medicaid program.
The 10 convicted defendants and their respective sentencing information are listed below:
Name, Age, Hometown
Sentencing Information
David Weaver, 71, of Chesapeake
Sentenced on June 5 to 72 months in prison
Doretha Selby-Diggs, 40, of Portsmouth
Sentenced on Feb. 18 to 60 months in prison
Lisa Barrett, 49, of Norfolk
Sentenced on March 4 to 96 months in prison
Barbara Bing Banks, 34, of Hampton
Sentenced on Oct. 30 to 41 months in prison
Corey Etheridge, 42, of Chesapeake
Sentenced on July 1 to 72 months in prison
Jacqueline Harris, 34, of Portsmouth
Sentenced on March 4 to 60 months in prison
Verline Harris, 48, of Virginia Beach
Sentenced on Oct. 27 to 108 months in prison
Arlette Johnson, 58, of Virginia Beach
Sentenced on Nov. 6 to 96 months in prison
Alfreda Stallion, 52, of Virginia Beach
Sentenced on Nov. 30 to 90 months in prison
Johnny Stallion, 34, of Las Vegas
Sentenced on Nov. 16 to 60 months in prison
According to Court records, the defendants conspired to obtain reimbursement payments from the Virginia Medicaid Assistance Program by submitting false claims for mental health support services in 2011 and 2012. Mental health support services are provided to assist individuals with severe psychiatric limitations to live in the community in the least restrictive environment possible. Nine of the defendants operated as Qualified Mental Health Professionals and claimed to provide mental health support services to Medicaid-eligible clients in the Tidewater area. David Weaver operated as a Licensed Mental Health Professional and was responsible for assessing Progressive patients to ensure they required mental health services. According to Court records, Weaver and Progressive’s owner created fraudulent assessments of Progressive clients to obtain authorization to bill Medicaid for mental health support services. Once Progressive obtained this authorization, false Medicaid reimbursement claims were submitted on behalf of mental health support services purportedly provided by Selby-Diggs, Barrett, Bing Banks, Etheridge, Jacqueline Harris, Verline Harris, Johnson, Alfreda Stallion, and Johnny Stallion. These reimbursement claims were false because most of the counselors were unqualified to serve as mental health professionals, the counseling sessions never occurred, and progress notes used to document the sessions were fabricated.
Weaver, Selby-Diggs, Barrett, Etheridge, and Jacqueline Harris all pleaded guilty to various charges associated with the scheme. Bing Banks, Verline Harris, Arlette Johnson, Alfreda Stallion, and Johnny Stallion were convicted of various charges after a month long jury trial.
Dana J. Boente, United States Attorney for the Eastern District of Virginia; Mark R. Herring, Virginia Attorney General; John S. Adams, Special Agent in Charge of the Federal Bureau of Investigations’ Norfolk Field Office; Clark E. Settles, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Washington, D.C. Field Office; Thomas Jankowski, Special Agent in Charge, Internal Revenue Service-Criminal Investigations, Washington, D.C. Field Office; and Steven Anderson, Special Agent in Charge for the Washington Regional Office of the U.S. Department of Labor’s Office of Inspector General-Office of Labor Racketeering and Fraud Investigations, made the announcement after sentencing by United States Chief District Judge Rebecca Beach Smith. Assistant U.S. Attorneys Joseph L. Kosky and V. Kathleen Dougherty prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:14cr137.
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Store Owner Sentenced to 57 Months for Federal Food Stamp FraudRead the Press Release
KANSAS CITY, KAN. – A Kansas City, Kan., store owner was sentenced Monday to 57 months in federal prison for food stamp fraud, U.S. Attorney Barry Grissom said. He also was ordered to pay approximately $227,000 in restitution.
Sajjad S. Chaudhry, 47, Kansas City, Kan., pleaded guilty to one count of conspiracy to defraud the U.S. Department of Agriculture, one count of conspiracy to commit wire fraud and two counts of aggravated identity theft. In his plea, he admitted the crimes occurred while he owned the KC Gas Mart at 2850 State Avenue in Kansas City, Kan. The store participated in a federal food stamp program called the Supplemental Nutrition Assistance Program (SNAP).
The store came under investigation in the summer of 2013 because it reported engaging in thousands of dollars of SNAP benefits transaction, many of which were large purchases. Undercover investigators working with the USDA exchanged SNAP benefits for cash at KC Gas Mart, receiving approximately 50 percent of the value of the SNAP benefits. The rules of the program prohibit approved vendors from trading cash for food stamps, accepting food stamps for ineligible items and accepting food stamps from people who are not authorized to use them.
In addition, Chaudhry admitted he used another person’s electronic benefits card to purchase food items at a Sam’s Club store in Kansas City, Kan.
Grissom commended the USDA-OIG and Special Assistant U.S. Attorney Erin Tomasic for their work on the case.
Statement of Manhattan U.S. Attorney Preet Bharara on the Conviction of Former New York Assembly Speaker Sheldon SilverRead the Press Release
“Today, Sheldon Silver got justice, and at long last, so did the people of New York.”
Skilled Nursing Facility Company Agrees to Pay More Than $3 Million to Resolve Kickback AllegationsRead the Press Release
HOUSTON – Regent Management Services L.P. has agreed to pay approximately $3.199 million to settle allegations that it received kickbacks from various ambulance companies in exchange for rights to Regent’s more lucrative Medicare and Medicaid transport referrals, announced U.S. Attorney Kenneth Magidson and Gregory Demske, Chief Counsel to the Inspector General of the U.S. Department of Health and Human Services-Office of Inspector General (HHS-OIG) and Special Agent in Charge CJ Porter, of HHS-OIG, Office of Investigations, Dallas Regional Office.
Regent Management Services L.P. is headquartered in Galveston and manages 12 separately owned and operated nursing facilities including 11 in seven Texas cities.
The settlement is believed to be the first in the nation to hold accountable medical institutions (hospitals and skilled nursing facilities) rather than ambulance companies for these kind of ambulance “swapping” arrangements.
“This resolution is part of the government’s emphasis on combating health care fraud throughout the district and is an example of our determination to hold those accountable for their actions,” said Magidson. “Any type of improper behavior or arrangement in the industry is a serious allegation that we will not take lightly and we will pursue in order to protect the integrity of the health care system.”
The Anti-Kickback Statute prohibits offering, paying, soliciting or receiving remuneration to induce referrals of items or services covered by federal health care programs, including Medicare and Medicaid. The settlement announced today resolves allegations that patients at Regent facilities received free or heavily discounted ambulance transports from various ambulance companies in exchange for Regent’s referral of other lucrative Medicare and Medicaid business to those same companies. If not for this kickback arrangement, Regent would have been financially responsible for the patient transports at significantly higher rates.
“This settlement sends a message to the health care industry that both sides of a swapping arrangement can be held responsible for their improper actions, not just the entity that actually bills Medicare or Medicaid for the services,” said Demske. “Any company or individual considering entering such schemes should understand that their actions may have serious legal and financial consequences.”
Medicaid is funded jointly by the states and the federal government. The state of Texas paid for some of the Medicaid claims at issue and will receive approximately $533,000 of the settlement amount.
In connection with the settlement, Regent has also entered into a corporate integrity agreement (CIA) with HHS-OIG. The corporate integrity agreement obligates Regent to undertake substantial internal compliance reforms for the next five years.
“Swapping arrangements continue to be an area of concern throughout the ambulance industry,” said Porter. “Such improper arrangements among providers have the potential to negatively affect patient care and need to be aggressively pursued in order to protect the integrity of the federal health care programs and their beneficiaries.”
Today’s announcement also marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation.
The settlement was the result of a coordinated effort among the U.S. Attorney’s Office, HHS-OIG, HHS-OIG (Office of Counsel to the Inspector General) and the Texas Attorney General’s Office. Assistant U.S. Attorney Kenneth Shaitelman handled the case on behalf of the U.S. Attorney’s Office for the Southern District of Texas.
The claims resolved by this settlement are allegations only, and there has been no determination of liability.
Second Arrest Made in Worcester Armory Theft CaseRead the Press Release
BOSTON – A Dorchester woman was arrested late Friday afternoon for being in possession of an M-4 assault rifle that was stolen from a Worcester armory on Nov. 14, 2015, and for making false statements to federal agents.
Ashley Bigsbee, 26, has been charged with one count of unlawful possession of a machine gun and one count of false statements. Bigsbee was arrested on an outstanding state warrant on Nov. 20, 2015. According to the affidavit, at the time of her arrest on the state warrant, agents recovered her cell phone. A subsequent search of the phone pursuant to a search warrant revealed numerous photographs, including a photograph of Bigsbee with a distinctive hand tattoo, a photograph of what appears to be a stolen Sig Sauer handgun and an M-4 assault rifle. Prior to her arrest on Nov. 20, Bigsbee voluntarily spoke with FBI agents and denied knowing anything about a robbery of the armory and the guns Morales was allegedly trying to sell. She denied any knowledge of the stolen weapons.
According to the affidavit, further investigation revealed that the photographs were taken at 27 Page Street in Dorchester. A search warrant was executed at this location on Nov. 20 where agents observed distinctive items seen in the photographs. However, no weapons were recovered from this location.
In a related development, the final stolen M-4 was recovered by law enforcement agents in Dorchester on the afternoon of Nov. 27.
Bigsbee had an initial appearance today in U.S. District Court in Worcester before Magistrate Judge David Hennessey. She will remain in U.S. Marshal custody until her detention hearing scheduled for Dec. 3.
The maximum sentence under the firearms statute is 10 years in prison to be followed by three years of supervised release and a $250,000 fine. The false statement charge carries a maximum sentence of five years in prison to be followed by three years of supervised release and a $250,000 fine. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
On Nov. 19, 2015, James Morales was arrested and charged in connection with the theft of 16 weapons from a U.S. Army Reserve Center in Worcester, Mass. He was charged with one count of unlawful possession of a machine gun, one count of unlawful possession of stolen firearms and one count of theft of government property. Morales remains in U.S. Marshal custody.
United States Attorney Carmen M. Ortiz; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Daniel Kumor, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston; Colonel Richard McKeon, Superintendent of the Massachusetts State Police; Chief Gary Gemme of the Worcester Police Department; and Boston Police Commissioner William Evans made the announcement today.
The case is being prosecuted by Assistant U.S. Attorneys Mark Grady and Cory Flashner of Ortiz’s Worcester Branch Office.
The details contained in the charging document are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in the court of law.
Report Finds Meth Epidemic in Full Force in San Diego CountyRead the Press Release
Contact: Kelly Thornton, 619-546-9726
NEWS RELEASE SUMMARY – November 30, 2015
SAN DIEGO – Methamphetamine continues to be a wrecking ball in San Diego County, as Mexican Super Labs flood the market with the purest and cheapest product ever seen here, creating a perfect storm of health and public-safety consequences.
The latest Methamphetamine Strike Force Report Card, which tracks nine indicators of the meth problem in San Diego County annually, found that the meth epidemic is in full force here, as numbers of meth-related deaths, emergency room visits, arrests and border seizures remain at alarming levels.
According to the report, emergency-room visits throughout San Diego County have increased by thousands of patients – up 141 percent since 2010. Seizures of methamphetamine at the San Diego-Tijuana border have marked a dramatic 129 percent increase from 2010 to 2014. Forty-five percent of adults arrested in 2014 had meth in their systems, compared to 27 percent in 2010.
Adding to law enforcement angst is voter-approved Prop. 47, which last year made meth use and possession a misdemeanor. These offenses used to be felonies, and the courts could require drug treatment for many offenders. That has completely changed. Today, someone can get arrested, released and re-arrested many times for what are considered non-violent meth offenses.
Twenty-five years ago meth was cooked up in the U.S., in small-scale labs in motorhomes, trailers or apartments, and it was maybe 50 percent pure. Today’s meth is being manufactured in huge quantities in Mexican Super Labs supplied by Asian chemical distributors and staffed by university educated chemists and engineers.
The result: U.S. Markets are being flooded with the highest quality and lowest priced meth to date. What was once 50 percent pure is now 95 percent pure. What was $1,800 a kilogram in 2010 is now as low as $400.
“The trend lines are deeply troubling and show that we must continue to wage war against a drug that is tearing families apart,” said county Supervisor Dianne Jacob. “Make no mistake: meth is death, meth breaks lives, and we need to continue to do all we can to stem the tide of this terrible drug into our communities.”
“Meth is a quadruple threat – it’s extremely pure, inexpensive, highly addictive and widely available,” said U.S. Attorney Laura Duffy. “We are tackling this monster problem by intensifying efforts to dismantle the cartels, and by offering prevention and education programs targeting young people and medical professionals.”
“This is a perfect storm for meth addicts and those just encountering the drug for the first time,” said Sheriff Bill Gore. “We can't incarcerate our way out of this problem – it will require education at all levels as to the severe consequences of this drug. This is the essence of public safety – to educate and inform.”
Dr. Danielle Douglass, an emergency physician at Sharp Grossmont Hospital, said that long term use of meth is related to many cardiovascular problems, including cardiomyopathy. “Meth use results in both chronic and acute heart disease,” Douglass said. “A good percentage of these meth-related deaths are people who die of natural disease, where their meth use contributed to an early death. Half of all meth-detected deaths are persons aged 40 to 60 years old.”
Some other trends:
--Meth use and crime are linked. Last year 45 percent of adults arrested and taken to county jails tested positive for methamphetamine. That number comes from both jail surveys and confirmed drug tests. This is a 66 percent increase over five years ago.
-Between fiscal years 2009 and 2014, Customs and Border Protection reported a 300 percent increase in the amount of meth seized at all of California’s ports of entry.
- While this year’s Methamphetamine Strike Force Report Card found meth-related deaths showed a slight 2-percent decrease from 2013 to 2014 –from 267 to 262 – the 2014 death toll is still two-thirds higher than five years ago.
-Meth, in its ever increasing role as “grim-reaper” doesn’t discriminate. In 2014, the youngest methamphetamine-related death reported by San Diego’s Medical Examiner was a 17-year-old female who committed suicide, and the oldest was a 70-year-old woman who died of heart disease with methamphetamine toxicity. This woman was not an anomaly. We have a “Silver Tsunami” of aging meth users whose bodies are less and less able to handle this powerful drug.
-Innovative traffickers will try anything and everything to smuggle their drugs across the border by land, sea or air – in Super Tunnels, on jet skis, superlight aircraft and even drones. They are using youth as mules to walk across the borders.
-Seven to 10 percent of methamphetamine now being smuggled into the U.S. from Mexico is in liquid form, meaning finished methamphetamine that has been dissolved or suspended in a liquid solvent. Once in the United States – the meth is taken to labs at which the liquid meth is converted into crystal meth. This process requires chemicals that are highly flammable and explosive - which presents a whole host of other issues for the communities, generally in the Central Valley, in which such labs are located.
Nick Macchione, director of the county’s Health and Human Services Agency and a chair of the Meth Strike Force, emphasized that treatment works, and is available. The County contracts with residential and outpatient programs in every region in San Diego County. A 2002 California Administrative Office study estimated that every dollar spent on drug treatment avoids seven dollars in criminal justice expenses.
Residents who need treatment referrals or who want to report anonymously suspicious meth-related crime are encouraged to call the Meth Hotline at 1-877-NO-2-METH or to give anonymous reports to www.no2meth.org
Prior Sex Offender from Ohio Pleads Guilty to Federal Child Pornography Charges in New MexicoRead the Press Release
ALBUQUERQUE – Michael Glover, 36, of Canton, Ohio, pleaded guilty this morning to federal child pornography charges in federal court in Albuquerque, N.M. Under the terms of the plea agreement, Glover will be sentenced to a prison term within the range of ten to 15 years followed by a lifetime of supervised release.
Glover was arrested in April 2015, in Ohio on an indictment alleging child pornography charges that was filed in Albuquerque. Thereafter, Glover was transported to the U.S. District Court for the District of New Mexico in Albuquerque to face the charges against him. He has been in federal custody since his arrest.
The six-count indictment charged Glover, a former Albuquerque resident, with three counts of distribution of visual depictions of minors engaged in sexually explicit conduct and three counts of possession of visual depictions of minors engaged in sexually explicit conduct. The three distribution counts alleged that Glover distributed child pornography in Bernalillo County, N.M., on May 27, 2013, Aug. 11, 2013, and Aug. 12, 2013. The three possession counts alleged that Glover possessed child pornography in Bernalillo County during three periods in 2013: from May 24, 2013 to Aug. 19, 2013; from July 18, 2013 to Aug. 19, 2013; and from July 21, 2013 to Aug. 19, 2013. The indictment included forfeiture provisions that seek forfeiture of Glover’s laptop computer and computer media.
During today’s proceedings, Glover entered guilty pleas to Counts 1 and 4 of the indictment charging him with distribution and possession of child pornography. In his plea agreement, Glover admitted that he distributed child pornography in Bernalillo County on May, 27, 2014, Aug. 11, 2014, and Aug. 12, 2014, by using a peer to peer file sharing program. He also admitted possessing child pornography between May 23, 2013 and Aug. 19, 2013, on three devices (a computer, a Kindle and a flash drive).
Glover remains in federal custody pending his sentencing hearing, which has yet to be scheduled.
This case was investigated by the Albuquerque office of Homeland Security Investigations, the New Mexico Office of the Attorney General, the Bernalillo County Sheriff’s Office and the New Mexico Internet Crimes Against Children (ICAC) Task Force. Assistant U.S. Attorney Shammara H. Henderson is prosecuting the case.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
The case also was brought as a part of the New Mexico ICAC Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 80 federal, state and local law enforcement agencies associated with the New Mexico ICAC Task Force, which is funded by a grant administered by the New Mexico Office of the Attorney General. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
Glover, who has a prior sexual assault conviction and a conviction for violating the Sexual Offender Registration and Notification Act, is also being prosecuted as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible. Because New Mexico’s violent crime rates, on a per capita basis, are amongst the highest in the nation, New Mexico’s law enforcement community is collaborating to target repeat offenders from counties with the highest violent crime rates, including Bernalillo County, under this initiative.
Pleasants County, WV man sentenced for role in manufacturing methamphetamineRead the Press Release
WHEELING, WEST VIRGINIA – Travis Michael Butler, 21, of St. Marys, West Virginia, was sentenced to 30 months in prison for his role in a methamphetamine manufacturing operation based in Pleasants County, West Virginia, United States Attorney William J. Ihlenfeld, II, announced.Butler was among six individuals charged in a 19-count federal indictment in June 2015. He was discovered in Wetzel County, West Virginia in possession of pseudoephedrine, an ingredient commonly used to manufacture methamphetamine.
Butler pled guilty in August 2015 to a criminal Information charging him with one count of “Possession of Material Used in the Manufacture of Methamphetamine.”
Assistant U.S. Attorney Shawn Adkins prosecuted the case on behalf of the government. The West Virginia State Police and the Pleasants Count Sheriff’s Department investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr. presided.
Piedmont Pathology Associates, Inc., and Piedmont Pathology, P.C. Settle False Claims Act Cases for $500,000Read the Press Release
Contact Person: Beth Warren (803) 929-3000
COLUMBIA, South Carolina ---- United States Attorney for the District of South Carolina Bill Nettles announced today that Piedmont Pathology Associates, Inc. and Piedmont Pathology, P.C., a diagnostic anatomic pathology group located in Hickory, North Carolina, has agreed to pay the United States $500,000 to settle allegations that it violated the False Claims Act by engaging in improper financial relationships with referring physicians.
Mr. Nettles said, “Combatting fraud against the government is a priority in this office; and importantly, holding accountable health care providers who have improper financial relationships with referral sources has been a focus. Financial relationships between physicians for referrals can alter a physicians’ judgment as to what’s necessary and appropriate for a patient. Our goal in this settlement was not only to recover money for improper healthcare claims, but to deter similar conduct and, in turn, promote health care affordability.”
The investigation of Piedmont Pathology was prompted by a whistleblower who filed a lawsuit under the qui tam provision of the False Claims Act. The whistleblower was a former contract salesperson for the practice who witnessed a program where the practice would provide Electronic Medical Record (EMR) software licenses to various physicians’ practices in exchange for referrals. The government found that Piedmont Pathology provided EMR software licenses at little to no cost to nine physicians’ practices close in time to when those practices entered contracts to refer specimens to their pathology lab. This conduct violated the Anti-Kickback Statute. Claims submitted in violation of the Anti-Kickback Statute are considered tainted and are per se violations of the False Claims Act. The False Claim Act allows the government to recover three times the actual damages caused by the improper claims and up to $11,000 in penalties per false claim.
The False Claims Act allows individuals to file lawsuits on behalf of the government with allegations that fraud has been committed against the federal government. Whistleblowers, referred to as “relators” in the False Claims Act, are entitled to share in any recovery received by the government. In this case, the relator will receive 15% of the funds of the settlement, or $75,000. She is also entitled to her costs and attorney fees.
This case was handled by Assistant United States Attorney Beth Warren. The case was investigated by the Office of the Inspector General for the Department of Health and Human Services.
“Paying for referrals, as the government alleged, is little more than a thinly veiled bribe,” said Derrick Jackson, Special Agent in Charge with the Office of Inspector General, U.S. Department of Health and Human Services. “Patients and taxpayers deserve better, and those who would defraud the system should expect to pay for their schemes.”
If you suspect Medicare or Medicaid fraud please report it by phone at 1-800-447-8477 (1-800-HHS-TIPS), or E-Mail at [email protected].
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Petoskey Attorney, Michael Aho Kennedy, Pleads Guilty to Mail Fraud Scheme and Filing False Tax ReturnsRead the Press Release
Michael Aho Kennedy Embezzled Over One Million Dollars from Two Elderly Clients
GRAND RAPIDS, MICHIGAN — U.S. Attorney Patrick A. Miles, Jr., announced today that Michael Aho Kennedy, age 67, formerly a licensed attorney in Petoskey, Michigan, pled guilty to one count of mail fraud and one count of filing a false tax return in conjunction with an indictment filed on October 8, 2015. Kennedy’s sentencing hearing in the United States District Court for the Western District of Michigan will be scheduled in the near future before United States District Judge Janet T. Neff. At that time, Kennedy faces a maximum term of imprisonment of 20 years on the mail fraud conviction and up to 3 years’ imprisonment for filing a false tax return. The plea agreement additionally requires Kennedy to pay restitution to the victims of his mail fraud scheme and to the Internal Revenue Service in conjunction with his false tax filings.
According to the plea agreement, Kennedy drafted a trust for his long-time client and family friend and eventually became her trustee. In his role as trustee, Kennedy defrauded her of over $1,000,000.00 by regularly withdrawing more money from her investment accounts than necessary to pay her expenses, transferring this excess money to his law office’s business account, and then using the money for his own personal and business expenses. Kennedy concealed his fraud from this client by sending her false monthly statements of account that showed that the balance of her account was stable and earning interest, when in fact the balance of her account was rapidly diminishing due to his fraud. When Kennedy exhausted all of her funds, he defrauded an additional elderly client of $114,000.00 that he then used for his own benefit and to pay the continuing expenses of the initial client that he defrauded. Kennedy pled guilty to filing a false federal tax return because he originally filed federal tax returns that included all of the income that he embezzled from his clients, but when the Internal Revenue Service inquired as to why he had not paid his tax liabilities on that income, Kennedy falsely amended his returns claiming that the proceeds of his fraud scheme were loans and working capital that were not subject to income tax.
“Vigorous prosecution of fraud cases, especially those involving professionals who prey upon clients to whom they owe the highest fiduciary duties, remains a priority of this Office,” said United States Attorney Patrick A. Miles, Jr. “Unfortunately, Kennedy used his position of trust to line his own pockets, rather than to protect his clients.”
“Honest and law abiding citizens are fed up with the likes of those who use deceit and fraud to line their pockets with other people’s money, as well as skirt their tax obligations,” said Jarod J. Koopman, IRS Criminal Investigation, Special Agent in Charge. “Mr. Kennedy’s actions not only caused financial harm to his elderly clients, but also the honest taxpayer when he committed significant tax fraud violations as detailed in the indictment. Tax crimes have erroneously been referred to as victimless, but that position could not be more wrong since we all end up paying when someone attempts to dodge our tax system.”
The investigation of this case was handled by the Traverse City office of the Internal Revenue Service-Criminal Investigation Division. Assistant United States Attorney Ronald M. Stella is handling the prosecution.
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Ohio man pleads guilty to Federal gun chargeRead the Press Release
HUNTINGTON, W.Va. – A South Point, Ohio, man, who shot himself in the foot with a firearm while driving on Interstate 64, pleaded guilty today to a federal gun charge, announced United States Attorney Booth Goodwin. Bradney Allen Adkins, 31, pleaded guilty today in federal court in Huntington, West Virginia, to unlawful possession of a firearm by a convicted felon.
On February 5, 2015, Adkins was traveling westbound on Interstate 64 in Barboursville while in possession of two handguns, a Glock 21SF .45 caliber pistol and a Walther PPK/S .380 caliber pistol. While driving, Adkins accidently shot himself in the foot with one of the handguns. Adkins went to Cabell Huntington Hospital to seek treatment for the gunshot wound. Troopers with the West Virginia State Police responded to the hospital, arrested Adkins, and recovered both handguns from the hospital’s dumpster.
Adkins was prohibited from possessing any firearm under federal law because of six previous felony convictions. In 2011, he was convicted in the Court of Common Pleas in Lawrence County, Ohio, of operating a vehicle under the influence, two counts of receiving stolen property, complicity to burglary, and grand theft of an automobile. Additionally, in 2012, Adkins was convicted in the Circuit Court of Delaware County, Indiana, of theft.
Adkins faces up to 10 years in federal prison, and is scheduled to be sentenced in federal court in Huntington on February 29, 2016.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the West Virginia State Police conducted the investigation. Assistant United States Attorney Joseph F. Adams is in charge of the prosecution.
This case was brought as 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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Oil Company Charged with Multiple Felonies Related to Violations of Offshore Oil Production Safety and Environmental RegulationsRead the Press Release
The United States Attorney’s Office for the Eastern District of Louisiana announced that ENERGY RESOURCE TECHNOLOGY GOM, LLC (ERT), was charged with two felony counts of violating the Outer Continental Shelf Lands Act and two felony counts of violating the Clean Water Act related to conduct on its offshore oil production facilities in the Gulf of Mexico.
According to the Bill of Information, on or about November 26, 2012, ERT knowingly and willfully failed to comply with the regulations for hot work on its offshore production platform known as Ship Shoal 225. Specifically, it is alleged that ERT violated Title 30, Code of Federal Regulation, Section 250.113(c)(4), which mandates that welding and associated activities, also known as hot work, on offshore facilities may not take place within 10 feet of a well bay unless production in that area is shut-in.
On or about November 27, 2012, on Ship Shoal 225, ERT is further alleged to have knowingly and willfully failed to comply with the regulations for blowout preventer testing. A blowout preventer system is designed to ensure well control and prevent potential release of oil and gas and possible loss of well control.
ERT is also alleged to have violated the Clean Water Act by tampering with the method of collecting the monthly overboard produced water discharge samples to be tested for oil and grease content pursuant to its NPDES permit. As required by its NPDES Permit, ERT is prohibited from introducing into the Gulf of Mexico produced water in which the oil and grease content exceed a monthly average of 29 mg/l. Produced water is that which is brought up from the hydrocarbon-bearing strata during the extraction of oil and gas, and can include formation water, injection water, oil and any chemicals added downhole or during the oil/water separation process. ERT collects and submits monthly samples of its produced water to a laboratory for testing to determine whether the quantity of oil and grease contained in the produced water exceeds a monthly average of 29 mg/l, as required by its NPDES Permit.
The Bill of Information filed today alleges that beginning at a time unknown, but continuing to on or about March 2014, ERT tampered with the monitoring methods for the collection of the overboard water samples on nine of its offshore facilities in violation of Title 33, United States Code, Section 1319(c)(4). Most recently, on or about June 9, 2015, ERT is alleged to have knowingly discharged and caused a discharge of a pollutant from a point source into the Gulf of Mexico without a permit in violation of Title 33, United States Code, Section 1319(c)(2)(A).
If convicted, ERT faces a maximum term of probation of 5 years per count and/or a maximum fine of $500,000 per count or twice the gross gain or twice the gross loss to any person pursuant to statute.
The case was investigated by the Department of Interior-Office of Inspector General (Energy Investigations Unit) with assistance from the Investigations and Review Unit, Bureau of Safety and Environmental Enforcement and the Environmental Protection Agency-Criminal Investigation Division. The case was prosecuted by Assistant United States Attorney Emily K. Greenfield of the United States Attorney’s Office’s National Security Unit.
O.C. Man who Ran Two-Pronged Ponzi Scheme that Caused over $15 Million in Losses Sentenced to Nearly Five Years in Federal PrisonRead the Press Release
LOS ANGELES – An Orange County man who operated a Ponzi scheme that bilked victims out of more than $15 million with false promises of large returns from investments in debt obligations and distressed real estate was sentenced today to 57 months in federal prison.
William Donnelly Yotty, 69, who lived in Lodi when he was operating the scheme, and was living in Monarch Beach when he was arrested in this case in May 2014, was sentenced this afternoon by United States District Judge Margaret M. Morrow.
“It is important that people who engage in business frauds face substantial sentences,” Judge Morrow said, noting that Yotty’s victims included the elderly, teachers and law enforcement officers, many of whom earned modest salaries or had lost their retirement savings.
The daughter of an elderly couple told the judge this afternoon that her parents lost $250,000 in the fraud, they were forced to move out of their home, and her 71-year-old father could not afford to retire.
Yotty, who has been held without bond since his arrest, pleaded guilty in August to mail fraud and wire fraud charges.
“Yotty raised over $17 million from more than 240 victim-investors based on false representations about – among other things – the safety of the investors’ principal and the guaranteed rate of return on promissory notes and other financial instruments, and the surefire success of investments in a real estate venture,” prosecutors wrote in a sentencing brief filed with the court.
When he pleaded guilty, Yotty admitted that he ran several Lodi-based companies that offered bogus investments in corporate debt obligations and in distressed real estate that he and his salespeople said could be “flipped” for substantial profit.
In the first scheme, Yotty solicited nearly $11 million from investors by offering purportedly safe and lucrative investments in convertible debentures, promissory notes and other financial instruments. Using companies he operated under names such as The Money People, Inc., Yotty solicited money from victims by guaranteeing annual interest rates as high as 25 percent and promising that victims would also recoup their entire initial investments. These claims were false. Yotty started using new investor money to make required payments to prior investors in the spring of 2007 – less than a year after he started offering the investments. Yotty stopped making any payments to investors in the summer of 2009.
In the second investment scheme, which started in the summer of 2007 and was run through at least two programs – one of which he called Fortuno Millionaire Club – Yotty offered victims the opportunity to purchase foreclosed real estate at below-market prices, which would allow them to resell, or “flip,” the properties at two or three times their purchase price. At presentations, according to the sentencing memo, prospective investors were told “Our club member receives the down payment, the monthly payments from the new buyer, and all the proceeds from the sale of the Note! It’s a win…win…win!”
In fact, Yotty himself was flipping properties he purchased – many of which were in Flint, Michigan – to investors at substantial profits for himself. Because Yotty had already extracted any profit to be made from the properties, the investors were left with dilapidated real estate that they could not sell at all, let alone at the substantial profit that Yotty had promised.
As part of the scheme, Yotty concealed from the investors that the price they were paying for the properties was double or triple what Fortuno had paid, and that this inflated price would prevent the victims from realizing any profit of their own. As a further inducement to invest in Fortuno, Yotty and his salespeople also falsely promised victims that the properties were in livable condition and that Fortuno would manage the properties until the promised resale.
According to prosecutors, one victim, who was 79 when she invested in the Fortuno program, received a letter from the City of Flint that one of her two properties was condemned and going to be demolished, and the second property was in such bad shape that it could never be rented out or sold.
“This defendant stole not only his victims’ money, he stole their futures and their security,” said United States Attorney Eileen M. Decker. “This defendant’s fraud scheme has earned him a significant federal prison sentence which should stand as a warning to others that fraud does not pay.”
In addition to the prison term of nearly five years, Judge Morrow ordered Yotty to pay $15,018,822 in restitution to approximately 240 victims.
The investigation into Yotty’s Ponzi scheme was conducted by the Federal Bureau of Investigation, which received assistance from the California Department of Business Oversight, Enforcement Division.
Monroe man sentenced to 60 months in prison for possessing firearm after felony convictionsRead the Press Release
MONROE, La. – United States Attorney Stephanie A. Finley announced today that a man from Monroe was sentenced 60 months in prison for possessing a revolver after having been convicted of felonies.
Roderick Johnson, 34, of Monroe, was sentenced by U.S. District Judge Robert G. James on one count of possession of a firearm by a convicted felon. He was also sentenced to three years of supervised release. According to the June 3, 2015 guilty plea, Johnson was found to be in possession of a Rohm model RG38 .38 caliber revolver at his residence on Angela Drive in Monroe, while a Louisiana State Trooper was investigating another matter on October 17, 2014. A records check indicated that Johnson had several felony convictions and was on probation at the time the weapon was found.
This case is part of Project Safe Neighborhoods, which is a Department of Justice initiative designed to reduce firearm crimes by removing dangerous and persistent felons from the community and promote firearm safety.
The ATF and Louisiana State Police conducted the investigation. Assistant U.S. Attorney Robert W. Gillespie Jr. prosecuted the case.
Maryland man convicted of heroin traffickingRead the Press Release
MARTINSBURG, WEST VIRGINIA – John Sanders, 25, of Williamsport, Maryland, was convicted of heroin trafficking today in federal court, United States Attorney William J. Ihlenfeld, II, announced.
Sanders sold heroin in June 2014 near Martinsburg, West Virginia. He pled guilty today to a criminal Information charging him with one count of “Aiding and Abetting the Distribution of Heroin.” As a result of his guilty plea, Sanders will be sentenced to 120 months in prison.
Sanders was charged in a one count federal indictment in April 2015. Specifically, the indictment alleged that Sanders sold heroin in June 2014 in Berkeley County, West Virginia which led to the death and serious bodily injury of another individual.
Assistant U.S. Attorney Paul Camilletti prosecuted the case on behalf of the government. The Eastern Panhandle Drug and Violent Crime Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Local Man who Engaged in Sexually Explicit Conversations on Social Media Admits to Receiving Child PornographyRead the Press Release
McALLEN, Texas – A 61-year-old man has been convicted of one count of receipt of child pornography, announced U.S. Attorney Kenneth Magidson. Dennis Ray Frank, of Edcouch, admitted he engaged in inappropriate conversations with a minor female and received a sexually graphic image via email.
On Feb. 7, 2013, FBI agents received information from the National Center for Missing and Exploited Children that indicated a young female, approximately 13 years of age, could be a potential victim of sexual exploitation. Law enforcement soon uncovered the fact that Frank had engaged the minor female child in sexually explicit conversations on Facebook. Upon further investigation, it was determined that Frank had enticed the minor female child to send sexually graphic images of her genitalia to him via email.
Law enforcement executed a search warrant on Frank’s email account, at which time they discovered the image that depicted the minor child’s genitalia. Frank admitted to receiving the child pornography image via his email account on Nov. 5, 2012. He further admitted he had been engaging in those inappropriate conversations and that the young girl had sent him the image.
U.S. District Judge Randy Crane accepted the guilty plea and set sentencing for Feb. 9, 2016. At that time, Frank faces a minimum of five and up to 20 years in federal prison and a possible $250,000 fine. He will remain in custody pending that hearing.
The charges are the result of an investigation conducted by the FBI.
This case, prosecuted by Assistant U.S. Attorneys Alex Benavides and Kimberly Ann Leo, 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."
Knoxville Businessman Pleads Guilty to Operating an Illegal Gambling Operation and Money LaunderingRead the Press Release
KNOXVILLE, Tenn. – On Nov. 30, 2015, George Marcus Hall, 45, of Knoxville, Tenn., pleaded guilty in U.S. District Court to an information charging him with operating an illegal gambling operation and money laundering. He was released under the supervision of the U.S. Probation office pending his sentencing hearing set for 10:00 a.m., on Apr. 20, 2016.
Hall faces up to twenty years in federal prison as well as supervision by the U.S. Probation office upon his release. Additionally, Hall agreed to forfeit his interest in assets collectively valued at over $9 million, which were involved in and/or products of his illegal gambling operation and money laundering conspiracy. These valuable assets consist of: four vehicles, including his 2014 Porsche Panamera; 18 pieces of real property valued at over $3.3 million; over $415,000 in cash and bank accounts and an agreed monetary judgment of $5 million.
The plea agreement on file with U.S. District Court details Hall’s participation in the illegal gambling and money laundering operation. An Agreed Preliminary Order of Forfeiture is also on file with U.S. District Court and describes the assets listed above in detail.
Bill Killian, U.S. Attorney for the Eastern District of Tennessee, said, “In addition to the potential punishments that Hall is facing, as a further deterrent, the government seized and is seeking forfeiture of numerous valuable assets owned by Hall and others involved in these criminal acts, which are either the proceeds of or were purchased with the profits of this unlawful gambling and money laundering business and/or were involved in these criminal violations.” Killian added, “Assets which were retained by Hall and not forfeited were of no value or benefit to the government, including Marc Nelson Denim, LLC.”
This investigation was conducted by the Internal Revenue Service, Criminal Investigation. Assistant U.S. Attorneys Jennifer Kolman and Anne-Marie Svolto represented the United States.
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Justice Department Reaches Settlement with Sage Bank to Resolve Allegations of Mortgage Lending DiscriminationRead the Press Release
The Justice Department filed a complaint and proposed consent order today to resolve allegations that Sage Bank, headquartered in Lowell, Massachusetts, violated the Fair Housing Act and the Equal Credit Opportunity Act (ECOA) by engaging in a pattern or practice of discrimination on the basis of race and national origin in the pricing of its residential mortgage loans.
The United States’ complaint alleges that Sage Bank charged African-American and Hispanic borrowers higher prices for home loans than Sage Bank charged to similarly situated white borrowers for reasons unrelated to their creditworthiness. Specifically, under Sage Bank’s pricing policy, each of its loan officers was assigned a “target price,” which was the price a loan officer was required to achieve on each home loan, regardless of a borrower’s creditworthiness. The complaint alleges that those loan officers whom Sage Bank assigned higher target prices disproportionately served African-American and Hispanic borrowers. The complaint also alleges that loan officers had discretion to price loans above their target prices and did so to a greater extent for African-American and Hispanic borrowers than for white borrowers. The result, the complaint alleges, was that the average African-American borrower paid approximately $2,500 more for his/her loan than did a similarly qualified white borrower; the average Hispanic borrower paid approximately $1,400 more.
The consent order, which is subject to court approval, was filed in conjunction with the Justice Department’s complaint in the U.S. District Court for the District of Massachusetts. Under the consent order, Sage Bank will pay $1,175,000 into a settlement fund to compensate borrowers and applicants who were harmed by Sage Bank’s policies. The consent order also requires Sage Bank to establish a new loan pricing policy and a new loan officer compensation policy, have loan officers and bank employees undergo fair housing and fair lending training, and establish a monitoring program to detect future unlawful disparities in mortgage loan pricing.
“Sage Bank’s loan pricing policies created the risk that borrowers would be treated differently based on impermissible characteristics like race and national origin, and that was in fact the result,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division. “This settlement ensures that all potential borrowers will be treated equally, regardless of race and national origin, and Sage Bank has agreed to restructure and monitor its lending practices to ensure that it is meeting those obligations.”
“Sage Bank’s discriminatory practices were aimed at some of our most vulnerable neighborhoods and populations,” said U.S. Attorney Carmen M. Ortiz of the District of Massachusetts. “Homeownership is the foundation of the American dream, and we will continue our work to ensure that all people – regardless of their skin color or the language they speak – have equal access to that dream.”
The lawsuit originated from a referral by the Federal Deposit Insurance Corporation.
The Justice Department’s enforcement of fair lending laws and the Servicemembers Civil Relief Act is conducted by the Housing and Civil Enforcement Section in the Civil Rights Division. Since 2010, the Civil Rights Division has provided approximately $1.3 billion in monetary relief for individual borrowers and impacted communities through its enforcement of the Fair Housing Act, ECOA and the SCRA. The Attorney General’s annual reports to Congress on ECOA enforcement highlight the department’s accomplishments in fair lending and are available at www.justice.gov/crt/publications/.
Additional information about fair lending enforcement by the Justice Department can be obtained from the Justice Department’s website at http://www.justice.gov/fairhousing.
Sage Bank Complaint
Sage Bank Consent Order
Hyattsville Man Sentenced to 7 Years in Prison for Carjacking and Illegal Possession of a GunRead the Press Release
Greenbelt, Maryland – U.S. District Judge Deborah K. Chasanow sentenced Marden Gonzalez, age 20, of Hyattsville, Maryland, today to seven years in prison, followed by three years of supervised release, for carjacking and for being a felon in possession of a firearm.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Andre Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Chief Larry M. Brownlee, Sr. of the Maryland National Capital Park Police, Prince George’s County Division; and Chief Mark A. Magaw of the Prince George’s County Police Department.
According to Gonzalez=s plea agreement, on February 17, 2015, at 1:00 p.m. Gonzalez approached the victim, who was stopped at a red light at the intersection of East-West Highway and Ager Road in Hyattsville. Gonzalez pointed a loaded .380 caliber pistol at the victim and demanded the victim’s car. The victim got out of the car and Gonzalez got in and drove away in the victim’s car.
A few minutes later, a Maryland Park Police officer spotted the stolen car at the intersection of Queens Chapel and Chillum Roads in Hyattsville. Park Police and Prince George’s County Police officers pursued Gonzalez through snowy streets. After sideswiping several parked cars, Gonzalez crashed the victim’s car headfirst into a parked car. The law enforcement vehicles pursuing Gonzalez slid in the snow when they attempted to brake, resulting in a crash. Three officers were injured and one was taken to a hospital. Gonzalez bailed out of the victim’s car and ran away, still carrying the loaded pistol. Officers located and arrested Gonzalez in the semi-enclosed back porch of a nearby house, and recovered the gun.
Gonzalez had previously been convicted of a felony and as a result, was prohibited from possessing a firearm or ammunition.
United States Attorney Rod J. Rosenstein commended the HSI Baltimore, Maryland National Capital Park Police and the Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Lindsay Eyler Kaplan and William D. Moomau, who prosecuted the case.
Huntington man sentenced on Federal oxycodone chargeRead the Press Release
HUNTINGTON, W.Va. - A Huntington man who possessed and sold oxycodone was sentenced today to three years and one month in federal prison, announced United States Attorney Booth Goodwin. Tracey Lee Gibson, 36, previously pleaded guilty in August 2015 in federal court in Huntington, West Virginia, to possession with intent to distribute oxycodone.
On March 26, 2013, agents with the Drug Enforcement Administration executed a search warrant at Gibson’s residence at 1608 Madison Avenue in Huntington. During the search, agents recovered 43 oxycodone pills that Gibson intended to sell. Agents also seized over $10,000 in cash proceeds from Gibson’s drug deals. Prior to the search, Gibson was also involved as a supplier in the sale of oxycodone to a confidential informant on three occasions.
The Drug Enforcement Administration conducted the investigation. Assistant United States Attorney Joseph F. Adams handled the prosecution.
This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Huntington man pleads guilty to Federal heroin chargeRead the Press Release
HUNTINGTON, W.Va. – A Huntington man who was caught with heroin pleaded guilty today to a federal drug charge, announced United States Attorney Booth Goodwin. Andre Robert Womble, II, 26, pleaded guilty in federal court in Huntington, West Virginia, to possession with intent to distribute heroin.
On December 11, 2014, officers with the Huntington Police Department responded to a complaint on the 300 block of Marcum Terrace in Huntington. An officer observed Womble and noted that he matched the description of the suspect in the complaint. When the officer attempted to approach, Womble began running from the police. The officer chased Womble and observed him throw a cigarette box on top of the Olive Street Market. The cigarette box was found by law enforcement to contain approximately 53 grams of heroin. Officers caught and arrested Womble, at which point they found an additional 20 bags of heroin in his pocket. Womble admitted that he intended to distribute all of the heroin.
Womble faces up to 20 years in federal prison, and is schedule to be sentenced in federal court in Huntington on February 29, 2016.
The Huntington FBI Drug Task Force and Huntington Police Department conducted the investigation. Assistant United States Attorney Joseph F. Adams is in charge of the prosecution.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Gastonia Woman Sentenced to 40 Months in Prison for Embezzling More Than $590,000 from Former EmployerRead the Press Release
CHARLOTTE, N.C. – Chief U.S. District Judge Frank D. Whitney today sentenced Jennifer Ann Champagne, 40, of Gastonia, N.C. to 40 months in prison, for stealing more than $590,000 from her former employer, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Judge Whitney also ordered Champagne to serve one year of supervised release and to pay restitution in the amount of $594,208.01. Champagne pleaded guilty in July 2015 to making and possessing forged and counterfeit securities, wire fraud and access device fraud.
U.S. Attorney Rose is joined in making today’s announcement by Matthew Quinn, Assistant Special Agent in Charge of the United States Secret Service, Charlotte Field Division.
According to filed court documents and today’s sentencing hearing, from 2006 to 2013, Champagne worked as an office manager and bookkeeper at a Charlotte-based company specializing in the construction and repair of tennis courts and running tracks. In that capacity, Champagne had access to the company’s safe, computer accounting programs, online bank accounts, security passwords and other confidential information, but was not authorized to sign company checks, or use the company’s bank accounts or credit card accounts outside of the normal course of business.
According to court records, Champagne stole money from her former employer by signing the company’s President’s name on forged checks and then altering the company’s books and records to hide the theft. Among other things, court records show that Champagne embezzled over $260,000 by forging 100 company checks in her name and her husband’s landscaping business. She also used the company’s credit card to make more than 400 unauthorized charges totaling over $40,000. In total, court records show that Champagne’s scheme caused the company a loss of more than $590,000.
In handing down Champagne’s sentence, Judge Whitney said that in the interest of general deterrence he gave the defendant a tough sentence because he did not want “people taking the risk of embezzling over one-half million dollars and thinking they’re only going to do a small amount of time in prison.” Judge Whitney also noted that that a sentence involving breach of trust should reflect the amount of money taken and the length of time involved in the fraudulent scheme, in Champagne’s case, seven years.
Champagne will be ordered to report to the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
The investigation was handled by the U.S. Secret Service. The prosecution for the government was handled by Assistant U.S. Attorney Kenneth Smith of the U.S. Attorney’s Office in Charlotte.
Garden City Man Sentenced for Possession of 16,000 Child Porn ImagesRead the Press Release
TOPEKA, KAN. - A Garden City man was sentenced Monday to 78 months in federal prison for possessing more than 16,000 images of child pornography, U.S. Attorney Barry Grissom said.
James E. McGary, 43, Garden City, Kan., pleaded guilty to one count of possession of child pornography. In his plea, he admitted that in October 2012 an investigator with the Ford County Sheriff’s Office working online identified a computer sharing pornography on a file sharing network. When investigators served a search warrant at McGary’s home, they found a laptop computer containing approximately 16,000 images of child pornography.
Grissom commended the Garden City Sheriff’s Office, Homeland Security Investigations and Assistant U.S. Attorney Christine Kenney for their work on the case.
Former Wesleyan Student Admits Distributing Synthetic Drug That Caused Multiple OverdosesRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ERIC LONERGAN, 23, of Rio de Janeiro, Brazil, pleaded guilty today in New Haven federal court to one count of conspiracy to possess with the intent to distribute, and to distribute, MDMA (“Molly”). The charge stems from an investigation into the distribution of controlled substances that caused multiple Wesleyan University students to overdose earlier this year.
“This defendant trafficked in a drug that caused multiple overdoses and nearly took the life of one Wesleyan student,” said U.S. Attorney Daly. “As evidenced by this investigation and prosecution, Molly and other synthetic drugs are clearly not innocuous party drugs. Students who use synthetic drugs can never be certain what they are ingesting. Wesleyan students who bought these drugs from this dorm-room chemist literally risked their lives by relying on his purported expertise. We thank the DEA, the Middlesex State’s Attorney’s Office and the Middletown Police Department for their collaboration and diligent work in this investigation.”
According to court documents and statements made in court, LONERGAN and Zachary Kramer were students at Wesleyan in Middletown, Connecticut. Beginning in approximately November 2013, LONERGAN began selling a substance he referred to as both “Molly” and MDMA to students on or in the vicinity of the Wesleyan campus. LONERGAN regularly sold Molly from his dorm room, charging approximately $20 per .1 gram, or $200 per gram, LONERGAN also counseled students on how to ingest Molly and other psychedelic drugs. At one point in 2014, after the administration at Wesleyan sent out a campus-wide communication warning of the dangers of ingesting controlled substances like Molly, LONERGAN responded by distributing a pamphlet instructing students on the use of psychedelic drugs.
In approximately September 2014, Kramer began purchasing what he believed to be Molly from LONERGAN and distributed it to students at Wesleyan. At times, LONERGAN used a chemical test on the substance he sold Kramer to prove to him that he was selling Kramer high-quality MDMA.
In September 2014, LONERGAN was the source of Molly for several students who were planning a “rolling” party at Wesleyan, which is a party where guests ingest Molly. He provided several grams of a substance he represented to be MDMA, in bulk, and another student then distributed it to students in .1 gram capsules. At this party, which occurred on September 13, 2014, several students became ill, some seriously, after ingesting the substance provided by LONERGAN. Two of these students were transported to the hospital. After these overdoses, LONERGAN sent electronic communications to several students assuring them that the substance he provided to them was indeed MDMA. One of the students who became ill at the party saved one of the capsules she had purchased and turned it over to the Middletown Police in February 2015. A lab test on the contents of that capsule revealed that it did not contain MDMA, but contained two other controlled substances: AB Fubinaca, a Schedule I controlled substance, and 6-MAPB, an analogue of MDMA.
In approximately December 2014, Kramer became the primary supplier of MDMA at Wesleyan. Kramer typically would sell the MDMA in .1 gram quantities for $20 each or he would sell it in 5-gram and 10-gram quantities for a discount, charging $100 or more, depending on the customer and the quantity. During this time period, LONERGAN still supplied Kramer with bulk quantities of MDMA. In approximately January 2015, Kramer purchased approximately 45 grams of MDMA from LONERGAN. Kramer broke that quantity into 5 and 10-gram bags and distributed those bags to other students who planned to break down the MDMA into .1 gram capsules, sell those capsules to other Wesleyan students, and pay Kramer for the quantity of the drug he had provided to them.
On February 21, 2015, 11 individuals, including 10 Wesleyan students, overdosed on a substance they believed was MDMA, and many were transported to the hospital. Two of the students were in critical condition, and one of the students had to be revived after his heart stopped. All of these students obtained the purported MDMA through individual distributers who were supplied directly by Kramer.
Although Kramer and some of his distributers destroyed the substance identified as Molly that they had in their possession, one of the distributers did not, and that substance was seized by law enforcement officers and sent to the toxicology laboratory for testing. Laboratory analysis confirmed that the powdered substance contained AB Fubinaca.
The charge of conspiracy to possess with the intent to distribute, and to distribute, MDMA carries a maximum term of imprisonment of 20 years and a maximum fine of $1 million. LONERGAN is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant on February 25, 2016, in Hartford. He has been released on bond since his federal arrest on May 22, 2015.
On November 12, 2015, Kramer pleaded guilty to the same charge. He is scheduled to be sentenced by Judge Bryant on February 11, 2016.
This matter is being investigated by the Drug Enforcement Administration and the Middletown Police Department, with the assistance of the State of Connecticut’s Forensic Science Laboratory.
U.S. Attorney Daly acknowledged the support and assistance of the Middlesex State’s Attorney’s Office, which is prosecuting several state cases stemming from these overdose events.
The federal case is being prosecuted by Assistant U.S. Attorney Robert M. Spector and Senior Assistant State’s Attorney Eugene Calistro, who has been cross-designated as a Special Assistant U.S. Attorney in this matter.
Former Teamster Pleads Guilty to Fraud and Theft ChargesRead the Press Release
BOSTON – A former member of Boston Teamster Local 82 pleaded guilty today in connection with receiving more than $40,000 of unemployment benefits to which he was not entitled.
James Deamicis, 52, of Quincy, pleaded guilty to three counts of mail fraud and one count of theft of government property. Earlier this month, Deamicis was convicted by a federal jury of three counts of extorting businesses in Boston. U.S. District Court Judge Denise J. Casper scheduled sentencing for all seven counts on March 23, 2016.
From 2008 to 2011, Deamicis received $41,391 in unemployment insurance benefits that he was not entitled to receive because he was collecting a paycheck while working as a member of Local 82. Deamicis’s bank records as well as employment and unemployment insurance records revealed that he failed to report his weekly earnings or significantly under-reported his earnings so that it appeared to the Massachusetts Department of Unemployment Insurance that he was eligible to receive full or at least partial unemployment insurance when, in fact, he was employed nearly full-time and was not eligible.
Deamicis made several misrepresentations in the course of the three-year scheme. First, Deamicis applied for benefits over a recorded automated telephone system and in doing so, affirmed that he was not working. In reality, over that three-year period, Deamicis was working for Local 82 and earned $126,423. During the same time period, he also falsely reported to the Department of Unemployment Insurance that he earned only $22,249. Second, Deamicis certified under penalties of perjury that he had no earnings for work during the time period in which he was receiving benefits. Although Deamicis was employed, he endorsed each of the 73 unemployment insurance checks he received and thereby falsely certified that he had no earnings except as reported in his benefit claim certification.
The charge of mail fraud provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $250,000 on each count. The charge of theft of government property provides for a sentence of no greater than 10 years in prison, three years of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Scott S. Dahl, Inspector General of the U.S. Department of Labor, Office of Inspector General; Jonathan Russo, District Director of the U.S. Department of Labor, Office of Labor-Management Standards; and Susan A. Hensley, Regional Director of the U.S. Department of Labor, Employee Benefits Security Administration, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Laura J. Kaplan of Ortiz’s Organized Crime and Gang Unit.
Former Stockbroker Charged in Fraud SchemeRead the Press Release
BOSTON – A previously convicted former stockbroker was charged yesterday in U.S. District Court in Springfield in connection with an investment scheme which defrauded victims of more than $600,000.
Jeffrey Eldred Gallagher, 72, of Bradenton Beach, Fla., was charged in an Information with one count of wire fraud, three counts of engaging in an illegal monetary transaction and two counts of tax evasion. As alleged in the Information, in 1989, Gallagher was convicted of one count of mail fraud and three counts of interstate transportation of stolen property in connection with illegal options trading while he was a stockbroker at Paine Webber, Inc. Gallagher is scheduled to plead guilty to the current charges on Dec. 14, 2015 before U.S. District Court Judge Mark G. Mastroianni.
According to court documents, it is alleged that from at least 2008 through approximately early 2012, Gallagher persuaded friends and associates to pay him money to invest on their behalf, and made promises that the investments would yield guaranteed returns of 10 to 15 percent. Gallagher then commingled investor funds with his own personal funds, and paid some investors with monies given to him by other investors. When investors asked Gallagher for the return of their investments, Gallagher allegedly provided numerous false explanations concerning his attempts to repay them. In a similar effort to stall for time, Gallagher wrote investors more than 40bad checks totaling $1,783,375. In sum, 23 investors lost a total of approximately $617,475.
As part of the scheme, in 2009 and 2010, Gallagher allegedly used approximately $249,703 of investor monies for his personal benefit, but did not report any of this income on his federal income tax returns for those years.
The charges of wire fraud and engaging in an illegal monetary transaction provide for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $250,000. The charge of tax evasion provides for a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000 on each count. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Steven H. Breslow of Ortiz's Springfield Branch Office.
Former Mount Vernon Commissioner and Her Associate Found Guilty in White Plains Federal Court on Fraud ChargesRead the Press Release
Preet Bharara, United States Attorney for the Southern District of New York, announced that Constance Post, former Commissioner of the Mount Vernon Department of Planning and Community Development as well as Executive Director of the Mount Vernon Urban Renewal Agency (“MVURA”), and Wayne Charles were found guilty today in White Plains federal court on charges stemming from their diversion of more than $1.2 million in federal funds from the U.S. Department of Housing and Urban Development (“HUD”) that were administered by the MVURA.
U.S. Attorney Preet Bharara said: “As the jury unanimously found, Constance Post abused her position of public trust to conspire with Wayne Charles to enrich themselves. Their corruption victimized the citizens of Mount Vernon, HUD, and U.S. taxpayers. Now, the defendants await sentencing for their crimes.”
As established by the evidence at trial:
Post and Charles, who had a romantic relationship, arranged to steer a computer services contract to a company secretly owned by Charles. Using the name of a defunct computer services company that a friend had operated, Charles concealed from the City of Mount Vernon that he had no computer expertise, no employees, and no ability to perform under the contract. Post hired and directed people to work for Charles’s company, which enriched Charles, between 1998 and 2002, but ultimately cost the City and HUD more than twice what it would have paid if the employees had worked directly for the City. Post also disregarded the monetary restrictions placed upon her by the MVURA board that approved the computer services contract, and she steered hundreds of thousands of dollars to Charles beyond her authorization.
Separately, in connection with a $500,000 loan of HUD funds awarded by the MVURA Board to renovate property in Mt. Vernon, Charles, with the approval of Post, falsely stated that he had not used any other names, and falsely certified that he had no other business with the City of Mount Vernon and the MVURA. In fact, Charles used several false names with the approval and assistance of Post in order to conceal his involvement with the computer services contract. Then, after renovations were complete on the property in 2003, another lender, in accordance with the terms of the MVURA=s loan, repaid $250,000 of the loan, leaving an unpaid balance of $250,000. Post took steps to conceal the existence of the loan and the fact that Charles still owed the MVURA the $250,000, ensuring that Charles was not required to repay the loan to Mount Vernon. In 2005, when federal investigators were examining the MVURA=s financial records, Post retroactively recorded the unpaid balance of the Charles loan on the books of the MVURA. Shortly thereafter, Charles made a few payments on the loan, which otherwise remains unpaid.
The evidence also established that, during the course of their scheme, Charles paid Post $30,000.
Post and Charles were each convicted of one count of conspiracy to commit mail fraud and one count of mail fraud. Charles was also previously convicted at an earlier trial of making false statements to federal agents who interviewed him in 2006 about the subject matter of this case.
Sentencing is scheduled for March 1, 2016, before United States District Judge Kenneth M. Karas. Post and Charles each face up to 20 years in prison on the conspiracy charge and up to 20 years in prison on the mail fraud charge of the Indictment. Charles also faces up to five years in prison on the false statement charge. The statutory maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Bharara praised the joint efforts of the United States Department of Housing and Urban Development - Inspector General and the Federal Bureau of Investigation.
The prosecution is being handled by the Office's White Plains Division. Assistant U.S. Attorneys Andrew Dember and Daniel Filor are in charge of the prosecution.
Former Carnival Worker Pleads Guilty to Felony Murder for Role in Burglary Which Led to Death of Medina Comic Book Collector; Conviction Brings to A Close First of Its Kind Racketeering ProsectuionRead 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 Albert Parsons, 46, of Rochester, NY, pleaded guilty to committing a violent crime, an assault resulting in serious bodily injury, in aid of a racketeering enterprise, before U.S. District Judge Richard J. Arcara.“Similar to operations of old, the defendants in this case employed various street level criminals to steal,” said U.S. Attorney Hochul. Unlike past criminal organizations, however, Rico Vendetti and his cohorts used the power and anonymity of the internet to thereafter dispose of their ill-gotten gains, in effect creating a high-tech fencing operation in which unwitting purchasers could be located anywhere in the world. As this case – the first of its kind in the District - demonstrates, the federal racketeering laws are more than capable of dismantling both old fashioned, and modern day criminal operations.”
Assistant U.S. Attorney’s Anthony M. Bruce and Scott S. Allen, Jr., who are handling the case, said that in the early morning hours of July 5, 2010 the defendant and co-defendants Donald Griffin and Juan Javier burglarized the Medina, NY home of 78 year old Homer Marciniak. The three men were hired by Rico Vendetti and Arlene Combs to steal Marciniak’s valuable comic book collection. During the course of the burglary, Marciniak, who had a serious heart condition, awoke and confronted the burglars. Griffin struck Marciniak and then, along with Javier, tied him up. Marciniak was also repeatedly threatened by Javier. Parsons, Griffin and Javier ultimately located the comic book collection along with several strong boxes containing cash, coins and other valuables.
After Parsons, Griffin and Javier fled the scene, Marciniak freed himself and was taken to Medina Memorial Hospital for treatment of the facial injuries he suffered when struck by Griffin. However, after Marciniak was treated and released, he suffered a heart attack and died shortly after being re-admitted to the hospital. Medical evidence that the Government was prepared to offer at trial demonstrated that the blow Griffin struck, as well as the emotional trauma caused by the burglary, directly contributed to Marciniak’s cardiac arrest and resulting death.
Parsons, Griffin and Javier gave the comic books to Combs who, along with another co-defendant, Terry Stewart, took the comic books to Vendetti later in the day on July 5. However, once Vendetti learned that the burglary resulted in Marciniak’s death, Vendetti disposed of the comic books.
The burglary grew out of an organized shoplifting ring that stole millions of dollars in merchandise from big box stores such as Walmart, Sears, Home Depot, JoAnn Fabrics, Tops and Wegmans. The merchandise was sold to Rico Vendetti for 25¢ on the dollar. The merchandise was then sold by Vendetti on eBay for about half of its retail value, primarily to out-of-state customers.
Parsons is the last of seven defendants to be convicted federally in this case. He will be sentenced on April 1, 2016 at 12:30 p.m. before Judge Arcara.
Donald Griffin will be sentenced on February 3, 2016. Juan Javier, who was 17 at the time of the burglary of Marciniak’s home, was prosecuted as an adult in Orleans County and sentenced to seven years in state prison.
Also convicted in connection with this case:• Rico Vendetti was convicted of racketeering and will be sentenced on January 22, 2016.
• Brandon Meade was convicted of conspiring to traffic in stolen goods across state lines and is scheduled to be sentenced on January 21, 2016.
• Terry Stewart was convicted of racketeering and was sentenced to 55 months in federal prison.
• Dayon Shaver was convicted of conspiring to traffic in stolen goods across state lines and will be sentenced on March 21, 2016.
• Arlene Combs was convicted of racketeering and will be sentenced on February 24, 2016.Today’s plea is the result of an investigation on the part of Special Agents from the Federal Bureau of Investigation, under the direction of Special Agent in Charge Adam S. Cohen, the New York State Police, under the direction of Major Craig Hanesworth, the Orleans County Sheriff’s Department, under the direction of Sheriff Scott Hess, the Monroe County Sheriff’s Office, under the direction of Sheriff Patrick O’Flynn, the Medina Police Department, under the direction of Chief Jose Avila and Officers from the Rochester Police Department, under the direction of Chief Michael Ciminelli. Special assistance was provided by Orleans County District Attorney Joseph Cardone.
Florida Man Sentenced to Probation for Failure to Pay Child SupportRead the Press Release
Contact: Benjamin M. Block
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Glen S. Caristinos, 49, of Safety Harbor, Florida, was sentenced today in U.S. District Court by Chief Judge Nancy Torresen to five years of probation for failure to pay child support. He was also ordered to pay $117,601.38 in restitution. Caristinos pled guilty on July 3, 2015.
According to court documents, on October 31, 2001, the Maine Department of Health and Human Services ordered Caristinos to pay his ex-wife $248.16 per week toward the support of their minor child. That support order was increased to $303.20 per week on October 10, 2003. The court ordered that such payments continue until the minor reached the age of 18. The defendant made inconsistent payments between 2001 and 2005. In December 2005, he moved to Florida and virtually ceased making payments. The court-ordered restitution amount represents his total arrearage to date.
The conditions of Caristinos' probation include that he pay his restitution obligation and his court-ordered child support. In explaining the sentence, Chief Judge Torresen observed that Caristinos had obtained full-time employment enabling him to make his payments through a wage garnishment and explained that the statutory purposes of criminal punishment include getting defendants to pay restitution and getting parents to pay child support.
The case was investigated by the U.S. Department of Health and Human Services, Office of Inspector General and the Maine State Department of Health and Human Services, Child Support Enforcement Unit.
El Departamento de Justicia Realiza un Acuerdo Conciliatorio con Sage Bank en Resolución de Alegatos de Discriminación en el Otorgamiento de Préstamos HipotecariosRead the Press Release
WASHINGTON – Hoy, el Departamento de Justicia entabló una demanda y una orden de consentimiento propuesta en resolución de alegatos de que Sage Bank, con sede en Lowell, Massachusetts, violó la Ley de Vivienda Justa y la Ley de Igualdad de Oportunidades de Crédito [Equal Credit Opportunity Act (ECOA)] al exhibir un patrón o práctica discriminatoria debido a raza y origen nacional en el precio de sus préstamos hipotecarios residenciales.
La demanda de los Estados Unidos alega que Sage Bank le cobró a prestatarios afroestadounidenses e hispanos precios más altos por préstamos hipotecarios residenciales que los que Sage Bank cobraba a prestatarios de raza blanca en situación similar por motivos no relacionados con su solvencia. Específicamente, de acuerdo con la política de precios de Sage Bank, se le asignó a cada uno de sus agentes de préstamos un “precio objetivo”, que era el precio que el agente de préstamos debía lograr en cada hipoteca residencial, independientemente de la solvencia del prestatario. La demanda alega que los agentes de préstamos a quienes Sage Bank asignó precios objetivos más altos atendían desproporcionalmente a prestatarios afroestadounidenses e hispanos. La demanda también alega que los agentes de préstamos podían, a su criterio, establecer precios de préstamos superiores a su precio objetivo y que, efectivamente, lo hacían en mayor medida para prestatarios afroestadounidenses e hispanos que para los prestatarios blancos. El resultado, alega la demanda, fue que el prestatario afroestadounidense medio pagó alrededor de $2.500 más por su préstamo que un prestatario blanco con calificaciones similares; el prestatario medio hispano pagó alrededor de $1.400 más.
La orden por consentimiento, que está sujeta a aprobación del tribunal, fue presentada junto con la demanda del Departamento de Justicia en el Tribunal Federal de Distrito del Distrito de Massachusetts. Bajo la orden por consentimiento, Sage Bank pagará $1.175.000 a un fondo de acuerdo conciliatorio para indemnizar a prestatarios y solicitantes perjudicados por las políticas de Sage Bank. La orden por consentimiento también exige que Sage Bank establezca una nueva política de precios de préstamos y una nueva política de remuneración de agentes de préstamos, que los agentes de préstamos y empleados bancarios reciban capacitación en vivienda justa y otorgamiento justo de préstamos, y que Sage Bank establezca un programa de monitoreo para detectar futuras disparidades ilícitas en el establecimiento de precios de préstamos hipotecarios.
“Las políticas de precios de préstamos de Sage Bank crearon el riesgo de que los prestatarios recibieran tratamiento distinto con base en características no permitidas, tales como raza y origen nacional, y, de hecho, fue lo ocurrió,” dijo Secretaria de Justicia Auxiliar Adjunta Principal Vanita Gupta, líder de la División de Derechos Civiles. “Este acuerdo conciliatorio asegura que todos los potenciales prestatarios serán tratados de manera igualitaria, independientemente de su raza y origen nacional, y Sage Bank ha acordado restructurar y monitorizar sus prácticas de otorgamiento de préstamos de modo a asegurar el cumplimiento de sus obligaciones”.
“Las prácticas de Sage Bank estuvieron dirigidas a algunos de nuestros vecindarios y poblaciones más vulnerables”, dijo la Fiscal Federal Carmen M. Ortiz del Distrito de Massachusetts. “La vivienda propia es la base del sueño estadounidense, y seguiremos trabajando para asegurar que todas las personas, independientemente del color de su piel o del idioma que hablen, tengan acceso igualitario a dicho sueño”.
La demanda surgió de una remisión de la Federal Deposit Insurance Corporation.
La coacción asociada a las leyes de otorgamiento justo de préstamos y de la Ley de Reparación Judicial Civil para los Miembros de las Fuerzas Armadas [Servicemembers Civil Relief Act (SCRA)] es llevada a cabo por la Sección de Vivienda y Cumplimiento de la Ley Civil de la División de Derechos Civiles. Desde 2010, la División de Derechos Civiles ha provisto alrededor de $1,3 mil millones en reparación monetaria para prestatarios individuales y comunidades afectadas al hacer valer la Ley de Vivienda Justa, la ECOA y la SCRA. Los informes anuales del Secretario de Justicia de EE.UU. al Congreso sobre la acción coactiva asociada a la ECOA destacan los logros del Departamento en el otorgamiento de préstamos justos y están disponibles en www.justice.gov/crt/publications/.
Para obtener información adicional sobre la labor del Departamento de Justicia para hacer valer las leyes de otorgamiento justo de préstamos, visite el portal del Departamento de Justicia en http://www.justice.gov/fairhousing.
Domestic Violence Offender in Washington Park Sentenced for Firearm OffenseRead the Press Release
Mario B. Taylor, 42, of Washington Park, Illinois, was sentenced in federal district court on November 19, 2015, to 117 months in prison, to be followed by three years of supervised release, a $750 fine, and a $100 special assessment, for unlawful possession of a firearm by a previously convicted felon, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Facts presented in court revealed that on February 22, 2015, the Washington Park Police Department received a domestic battery report stemming from an argument between Taylor and his girlfriend at their residence in Washington Park, where he threatened her with a knife and gun, and family members who escorted her with a gun, as she tried to retrieve her belongings from the home. When officers escorted the girlfriend to the home to gather her things, they could hear the two arguing loudly and heard the girlfriend say "don’t touch me" and "get off me." Officers then entered the residence, observing the girlfriend pinned up against a doorway. A search of the home uncovered a total of 10 guns located in various places inside the residence. Taylor was previously sentenced for Aggravated Battery on May 25, 2000, in St. Clair County, Illinois.
This investigation was conducted by the Federal Bureau of Investigation and was prosecuted by Assistant United States Attorney Jonathan Drucker.
Des Moines Woman Sentenced to Prison for Filing a False Tax ReturnRead the Press Release
DES MOINES, IA – Julilath Kouangvan, 46, of Des Moines, Iowa, was sentenced by Chief Judge John A. Jarvey on November 23, 2015, to 14 months’ in federal prison for filing a false tax return, announced Acting United States Attorney Kevin E. VanderSchel. Kouangvan also was ordered to serve one year of supervised release following her term of incarceration.
According to the Indictment, from approximately 2006 until at least 2009, Kouangvan solicited investment funds from individuals by promising a high rate of return. Unbeknownst to the individuals, the money was not invested by Kouangvan. Kouangvan admitted in her plea agreement that she failed to account in her 2009 tax return for the funds provided to Kouangvan. As part of her sentence, Kouangvan was also ordered to pay restitution in the amounts of $522,233.34 to the victims and $199,042 to the Internal Revenue Service.
This case was investigated by the Internal Revenue Service – Criminal Investigation, and the case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa
Defendant Sentenced to 18 Months in Prison for Credit Card FraudRead the Press Release
BOISE - Irving Gonzalez-Bocanegra, 25, of Sonora, Mexico, was sentenced today to 18 months in prison for wire fraud and possession of fifteen or more unauthorized access devices, U.S. Attorney Wendy J. Olson announced. Chief U.S. District Judge B. Lynn Winmill also ordered Gonzalez-Bocanegra to pay restitution in the amount of $13,301.64. Gonzalez-Bocanegra pleaded guilty on August 6, 2015.
According to the plea agreement, Gonzalez-Bocanegra admitted that in March 2015, he and two co-defendants traveled together from Mexico, through Montana, to Idaho in a vehicle rented in Sonora, Mexico, for the purpose of using counterfeit credit cards to make fraudulent purchases of merchandise and gift cards. In Montana, each defendant engaged in a number of transactions, using credit cards that the defendants knew to be counterfeit, at stores such as Auto Zone, TJ Maxx, Home Depot, Ulta, and others. The defendants jointly and fraudulently obtained merchandise valued at approximately $8,184.01 in Montana. In Boise, the defendants again engaged in a number of transactions, using credit cards the defendants knew to be counterfeit, at stores such as Lowe’s, Sports Authority, Barnes and Noble, Nordstrom Rack, JC Penney, and others. The defendants fraudulently obtained merchandise valued at approximately $5,117.63 in Boise. The defendants were arrested in possession of approximately 84 counterfeit credit cards embossed with their names, but encoded with victims’ credit card numbers, as well as merchandise purchased with the counterfeit credit cards, including GoPro Hero 4 Cameras, Samsung Galaxy Nooks, and video game systems.
The case was investigated by the United States Secret Service and the Boise Police Department.
Convicted Felon Sentenced to 7 Years in Prison on Firearm ChargeRead the Press Release
PROVIDENCE, R.I. – Momoh Fahnbulleh, 38, of Providence, was sentenced today to 84 months in federal prison for being a felon in possession of a firearm, announced United States Attorney Peter F. Neronha and Providence Police Chief Colonel Hugh T. Clements, Jr.
At sentencing, U. S. District Court Chief Judge William E. Smith also ordered Fahnbulleh to serve three years supervised release upon completion of his prison term. Fahnbulleh pleaded guilty on March 2, 2015, to a single-count indictment charging him with being a felon in possession of a firearm.
According to court records and information presented to the court, in October 2013, as a result of information developed during an investigation into Fahnbulleh’s alleged drug trafficking activities, Providence Police sought and executed a court authorized search warrant at Fahnbulleh’s residence. During the search, detectives and officers seized a loaded 9mm semi-automatic handgun. There were 15 rounds of ammunition in the magazine and one in the pistol’s firing chamber.
Additionally, law enforcement seized numerous items used in the packaging and distribution of cocaine.
Fahnbulleh has been detained since his arrest on October 3, 2013.
According to court records, Fahnbulleh was previously convicted in Rhode Island state court on multiple felony charges, including drug trafficking and firearm charges.
The case was prosecuted by Assistant U.S. Attorney Milind M. Shah.
Agents from ATF assisted Providence Police in the investigation of this matter.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Convicted Felon Pleads Guilty to Elaborate Tax Fraud SchemeRead the Press Release
RICHMOND, Va. – David Solomon, aka David Chityal, 39, of Budapest, Hungary, pleaded guilty today to charges of conspiracy to commit mail and wire fraud for his role in an elaborate tax fraud scheme he designed with a co-conspirator while in prison.
In a statement of facts filed with the plea agreement, Solomon admitted that he was incarcerated in a federal correctional facility with an individual identified as Conspirator 1 from approximately September 2009 and March 8, 2010. Conspirator 1 previously was convicted in the Eastern District of Virginia of a $126 million fraud scheme and sentenced to 100 years of imprisonment. Conspirator 1 also was ordered to pay approximately $128 million in restitution to victims of his fraud. Conspirator 1 previously had conveyed certain assets to his Bankruptcy Estate for this restitution, including approximately $2 million in tax refunds. When Solomon was released from prison and deported to his native Canada, he remained in touch with Conspirator 1. Together they engaged in a scheme to obtain these approximately $2 million in tax refunds so that Conspirator 1 could obtain a particular New York attorney for his criminal appeal. Using this attorney, Solomon and Conspirator 1 changed the Internal Revenue Service (IRS) power of attorney forms so that the tax refund checks would be sent to the New York attorney, not Conspirator 1’s Bankruptcy Estate for his victims. In September 2010, the IRS sent the $2 million tax refund checks to the New York attorney, who in turn sent the checks to an attorney in Canada. The Canadian attorney flew to the federal correctional facility in which Conspirator 1 was incarcerated and Conspirator 1 endorsed the checks. The Canadian attorney then flew with the negotiated checks to the Turks and Caicos Islands to deposit them in a trust account. He was within hours of depositing the checks when the lawyer for Conspirator 1’s Bankruptcy Estate trustee learned what had happened and contacted the Canadian attorney. The tax refunds were returned to the Bankruptcy Estate and paid to Conspirator 1’s fraud victims.
Solomon was indicted by a federal grand jury on March 20, 2012, and was extradited from Hungary on Oct. 26, 2015. Solomon faces an agreed-upon maximum penalty of five years in prison when sentenced on Feb. 8, 2016. The maximum statutory sentence is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, made the announcement after the plea was accepted by Senior U.S. District Judge Robert E. Payne. Assistant U.S. Attorneys Thomas A. Garnett and Jessica D. Aber are prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:12-cr-44.
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Cleveland man sentenced to 55 years in prison for armed robberiesRead the Press Release
A Cleveland man was sentenced to 55 years in prison for committing three armed robberies, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI's Cleveland Office.
Eric Gooch, 24, was convicted by a jury this summer on multiple counts, including conspiracy to commit Hobbs Act robbery, use of a firearm during commission of a felony, armed bank robbery and Hobbs Act robbery.
Gooch conspired with others to rob Rose's Discount Store in Cleveland, Ohio. On January 21, 2013, Gooch and others entered and robbed the Rose's Discount Store, and during the robbery, a firearm was brandished. Gooch robbed the PNC Bank at 16614 Harvard Avenue in Cleveland on Feb. 22, 2013, and the PNC Bank at 2771 South Moreland Boulevard in Cleveland on March 13, 2013. A firearm was brandished during each bank robbery, according to trial testimony.
The case was prosecuted by Assistant United States Attorneys Michelle M. Baeppler and M. Kendra Klump following an investigation by the FBI and Cleveland Division of Police.