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Wednesday 7 October 2015
Purported Landlord Defrauded HUD's Section 8 Housing Choice Voucher ProgramRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania pleaded guilty in federal court to a charge of theft of government property, United States Attorney David J. Hickton announced today.
Julio Raf Antomachi, III, 27, of Pittsburgh, PA, pleaded guilty to one felony count before Chief United States District Judge Joy Flowers Conti.
In connection with the guilty plea, the court was advised that under the Department of Housing and Urban Development’s Section 8 Housing Choice Voucher Program, Antomachi fraudulently received federal housing subsidy monies as a purported landlord of a property located in Pittsburgh, PA. From February 2010 through February 2015, Antomachi wrongfully converted $43,054.00 in federal housing subsidy monies.
Judge Conti scheduled sentencing for Jan. 22, 2016, at 10 a.m. The law provides for a maximum total sentence of ten (10) years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentence, the court released Antomachi bond.
Assistant United States Attorney Mary McKeen Houghton is prosecuting this case on behalf of the government.
The United States Department of Housing and Urban Development, Office of the Inspector General, conducted the investigation leading to the Information in this case.
Portland Man Sentenced to 13 Months for Immigration Fraud and False StatementsRead the Press Release
Contact: Darcie N. McElwee
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Adam Mack, 39, of Portland, Maine, was sentenced today in U.S. District Court by Judge D. Brock Hornby to 13 months in prison and three years of supervised release for aiding and abetting visa and marriage fraud and making false statements. The defendant pleaded guilty on March 30, 2015. He was also sentenced to a consecutive 4 months in prison for violating the terms of supervised release imposed on him following a 2013 federal conviction for equity skimming.
According to court records, between October 2009 and January 2012, Mack unlawfully assisted foreign nationals who were seeking to become lawful permanent residents, or green card holders, by engaging in marriage and visa fraud and he made false statements regarding his employment of them to the U.S. Citizenship and Immigration Service.
In imposing sentence, Judge Hornby said: "You have been cheating the system all along consistently. It's the deterrence, both general and specific, and just punishment that I think are critical."
"It's always sad to see a former public servant fall so far from the path of public service," said Special Agent in Charge Matthew Etre of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) in Boston. "But today's sentencing shows that no matter who you are, what position in the community you've held or what influence you thought you had, we will not hesitate to bring you to justice. HSI will continue to work with our law enforcement partners to stop marriage and visa fraud."
The investigation was conducted by HSI and the U.S. Department of State, Bureau of Diplomatic Security.Parks Sentenced to 27 Months for Wire Fraud Relating to Fraudulent Refund Coal Tax Credits and Forfeits MillionsRead the Press Release
Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, David T. Resch, Special Agent in Charge of the Little Rock Field Office of the Federal Bureau of Investigation (FBI), and Christopher A. Henry, Special Agent in Charge of the IRS-Criminal Investigation Nashville Field Office; announced today that, Stephen K. Parks, 62, of Little Rock, Arkansas, was sentenced to 27 months imprisonment, three years of supervised release, and ordered to pay $845,000 in restitution to the IRS. Parks pled guilty to a Federal Information charging him with wire fraud relating to a fraudulent investment scheme involving the sale of refined coal tax credits on May 27, 2015.
In addition to serving 27 months in federal prison, Parks agreed to forfeit jewelry purchased with money obtained from the fraudulent sale of tax credits, and consented to the forfeiture of all property seized to date in Case No. 4:13-CV-00054 SWW, to include approximately $7.5 million, plus other pieces of real and personal property, with the exception of a home at 2020 N. Spruce Street, Little Rock, AR, and approximately $73,000 seized from that home.
The refined coal tax credit was added to the tax code by the American Jobs Creation Act of 2004. The credit requires that the refined coal be produced by the taxpayer at a refined coal production facility during the 10-year period beginning on the date the facility was originally placed in service, and sold by the taxpayer to an unrelated person.
On or about June 1, 2010, Parks formed Global Coal, LLC, and served as its CEO, President and Manager. He was also President of Ecotec Coal, LLC and King Coal, LLC. Global Coal has never refined any coal or sold any refined coal to an unrelated third party, as required by Title 26, United States Code, Section 45. Global Coal has never had a facility in place to refine coal, as required by 26 U.S.C. § 45. As of March 2015, Global Coal has failed to file any federal income tax returns and has never purported to create refined coal tax credits pursuant to 26 U.S.C. § 45 in any federal tax return. Despite knowledge of these facts, Parks approved and facilitated the sale of nonexistent Global Coal refined coal tax credits through a broker to the investor, representing that the tax credits were valid and available for sale. Parks subsequently used a large portion of the proceeds of that sale for his personal use and the use of his family.
In late 2011, a broker acting on behalf of Parks and Global Coal began communicating with the representative of a potential investor regarding Global Coal and Ecotec Coal refined coal tax credits. Parks represented to the broker that Global Coal tax credits were available for sale and was in communication with the broker throughout the course of the Global Coal tax credit transaction.
On January 9, 2012, the investor agreed to purchase 845,000 Global Coal tax credits and 268,000 Ecotec Coal tax credits for total payment of $723,450. On January 13, 2012, the investor wired $549,250 from a bank in Iowa into King Coal Holding LLC’s account at Delta Trust & Bank in Arkansas. A backdated invoice dated December 30, 2011, reflected the sale of 845,000 Class C Units of interest of Global Coal, LLC, the sole benefit of which is $845,000 of Refined Coal Tax Credits to the investor. The invoice reflected the total due as $549,250 to be wired to a Delta Trust & Bank account with account name "KHC, LLC c/o Global Coal". The Global Coal, LLC subscription documents reflect that Stephen Parks is the manager and CEO and contain his signature. The documents also acknowledge receipt by Global Coal of $549,250 from the investor. A separate invoice was sent for the Ecotec Coal tax credits, which directed that $174,200 be wired Ecotec Coal’s account at First Security Bank.
From the proceeds of the Global Coal tax credit sale, Parks wrote a $40,000 check to his wife for "Coal Rights Arkansas." This $40,000 was part of approximately $1.3 million paid to Parks’ wife from 2008-2012 for "advanced royalties." According to a "Royalty Agreement" backdated to December 1, 2007, Parks’ wife "controls certain mineral rights within the state of Arkansas and King Coal, LLC . . . desires to extract coal from these properties . . ." In fact, Parks’ wife had no interest in any land with coal rights in Arkansas and had no mineral rights to coal during the time she was receiving the "advanced royalties." In 2014 tax court pleadings, the explanation of Parks’ wife’s receipt of royalties was altered, alleging that Parks’ wife "assisted and facilitated the negotiations" between the parties to a lease agreement regarding coal rights.
Also from the proceeds of the Global Coal tax credit sale, a check to Delta Trust & Bank for $301,271.50 was used to purchase a cashier’s check. That cashier’s check was used to purchase 4817 Stonewall Road, Little Rock, Arkansas, a residence located behind the Parks family residence, and was purchased to be torn down and used as a back yard for the Parks family.
The case was investigated by special agents from the FBI and the IRS-Criminal Investigations.
Owner of Buffalo Deli Pleads Guilty to Food Stamp FraudRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Samir Hassan, 35, of Buffalo, NY, pleaded guilty to food stamp fraud before U.S. District Judge Frank P. Geraci. The charge carries a maximum penalty of 20 years in prison and a $250,000 fine.Assistant U.S. Attorney Marie P. Grisanti, who is handling the case, stated that Hassan was the owner and operator of City Market & Deli and City Market in Buffalo. Between November 1, 2010 and August 31, 2012, the defendant directed his employees to purchase food stamp benefits for less than their full value in exchange for cash from eligible beneficiaries.
The plea is the result of an investigation by the United States Department of Agriculture, Office of Inspector General, under the direction of Special Agent in Charge William Squires.
Sentencing is scheduled for February 17, 2016 at 10:00 a.m. before Judge Geraci.
Operator of North Jersey Tax Preparation Business Pleads Guilty to Tax FraudRead the Press Release
NEWARK, N.J. – A Kissimmee, Florida, man today admitted preparing fraudulent income tax returns for himself and his clients, resulting in tax losses of over $320,000, U.S. Attorney Paul J. Fishman announced.
Sixto Rodriguez, 52, pleaded guilty before U.S. District Judge Kevin McNulty in Newark federal court to Count 1 and Count 6 of a second superseding indictment charging him with filing a false tax return on behalf of himself for tax year 2007 and aiding and assisting in the filing of a false and fraudulent tax return on behalf of another for tax year 2009.
According to documents filed in this case and statements made in court:
From 2007 through 2012, Rodriguez operated a tax preparation business in Teaneck, New Jersey, by the name of 1-2-3 Taxes. Rodriguez personally met with clients, prepared their individual income tax returns and filed the returns with the IRS.
Rodriguez admitted to inflating education credits, charitable donations, unreimbursed business expenses and rental losses that he knew his clients had not actually incurred. Rodriguez also admitted reporting only $1,600 of the $237,179 his business made in 2007. Altogether, Rodriguez caused tax losses of $321,061.
Both the false filing charges to which Rodriguez pleaded guilty carry a maximum potential penalty of three years in prison and a $250,000 fine. Sentencing is scheduled for Feb. 8, 2016.
U.S. Attorney Fishman credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, with the investigation leading to today’s plea.
The government is represented by Assistant U.S. Attorneys Daniel Shapiro and David M. Eskew of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
Defense counsel: Miles Feinstein Esq., Clifton, New Jersey
New Indictment Adds Bank Fraud and Financial Aid Fraud Charges Against Two Orange County Men Charged with Conspiring to Provide Material Support to ISILRead the Press Release
Two Orange County men who were indicted in June 2015 for conspiracy to provide material support to the Islamic State of Iraq and the Levant (ISIL) have been indicted for additional charges involving bank fraud and financial aid fraud.
Nader Elhuzayel, 25, and Muhanad Badawi, 24, both of Anaheim, California, were named in a superseding indictment returned today by a federal grand jury in Santa Ana. Elhuzayel is charged in the indictment with 25 counts of bank fraud, and Badawi is charged with one count of federal financial aid fraud.
According to the first superseding indictment, during April and May of this year, Elhuzayel obtained cash through a scheme to defraud three different banks, by depositing stolen checks into his personal checking accounts and then withdrawing cash at Orange County branch offices and ATMs. Co-defendant Badawi is charged with using his federal financial aid to purchase a plane ticket for Elhuzayel to travel to Turkey.
The first superseding indictment reiterates the previous charges against Elhuzayel and Badawi. Both men were charged in count one with conspiring to provide material support to ISIL, in count two Elhuzayel was charged with attempting to provide material support to ISIL, and in count three Badawi was charged with aiding and abetting an attempt to provide material support to ISIL. The time of the alleged fraud and the time of the terrorist activity coincide. In June, both men entered pleas of not guilty to all charges, and they have been held in federal custody without bond since that time.
Both men were arrested on May 21, 2015, when Elhuzayel attempted to board a plane at Los Angeles International Airport to travel to Turkey to join ISIL. The affidavit in support of the criminal complaint, filed on May 22, outlined a scheme in which Badawi and Elhuzayel used social media to discuss ISIL and terrorist attacks, expressed a desire to die as martyrs, and made arrangements for Elhuzayel to leave the United States to join ISIL. In recorded conversations, Badawi and Elhuzayel “discussed how it would be a blessing to fight for the cause of Allah, and to die in the battlefield,” and they referred to ISIL as “we,” according to the complaint affidavit.
If convicted on the charges in the first superseding indictment, Elhuzayel faces a statutory maximum sentence of 30 years imprisonment on each bank fraud count, Badawi faces a statutory maximum sentence of 5 years imprisonment on the financial aid fraud count, and both men each face a statutory maximum sentence of 15 years in prison on each count of providing material support to ISIL.
Trial is scheduled for June 7, 2016, before the Honorable David O. Carter, United States District Judge, at the United States Courthouse in Santa Ana, California.
The investigation in this case was conducted by the FBI’s Joint Terrorism Task Force in Orange County, which includes the following agencies: the Anaheim Police Department, the California Highway Patrol, the Orange County Sheriff’s Department, the Orange County Intelligence Assessment Center, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the United States Secret Service, IRS – Criminal Investigation, the City of Orange Police Department, the Irvine Police Department, and the Buena Park Police Department.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Navajo Man from Sanostee Sentenced to Federal Prison for Assault ConvictionRead the Press Release
ALBUQUERQUE – Milton Washburn, 30, an enrolled member of the Navajo Nation who resides in Sanostee, N.M., was sentenced this afternoon in federal court in Albuquerque, N.M., to 46 months in prison followed by three years of supervised release for his assault conviction.
Washburn was arrested on Oct. 23, 2014, on a criminal complaint charging him with assaulting another Navajo man on Oct. 19, 2014, by running over him with a vehicle. Court filings reflect that officers of the Navajo Nation Division of Public Safety responded to a call reporting that the victim had been deliberately run over by a vehicle and was seriously injured. The victim was taken to the hospital where he received medical treatment for a number of internal injuries, including rib fractures, a collapsed lung, a damaged liver, and a spinal fracture.
On Nov. 5, 2014, Washburn was indicted and charged with assault with a dangerous weapon - a vehicle - and assault resulting in serious bodily injury. According to the indictment, Washburn committed these crimes within the Navajo Indian Reservation in San Juan County, N.M.
On April 27, 2015, Washburn pled guilty to one count of the indictment, assault resulting in serious bodily injury, and admitted that on Oct. 19, 2014, he ran over the victim with a vehicle after he engaged in an altercation with the victim. Washburn acknowledged that the victim suffered multiple injuries as a result of the assault.
This case was investigated by the Shiprock office of the Navajo Nation Division of Public Safety and the Farmington office of the FBI. Assistant U.S. Attorneys Raquel Ruiz-Velez and Elaine Ramirez prosecuted the case.Nation's Second-Largest Nursing Home Pharmacy to Pay $9.25 Million to Settle Kickback AllegationsRead the Press Release
The nation’s second-largest nursing home pharmacy, PharMerica Corp., has agreed to pay $9.25 million to resolve allegations that it solicited and received kickbacks from pharmaceutical manufacturer Abbott Laboratories in exchange for promoting the prescription drug Depakote for nursing home patients. PharMerica is headquartered in Louisville, Kentucky.
“Elderly nursing home residents suffering from dementia have little control over the medications they receive and depend on the unbiased judgment of healthcare professionals for their daily care,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “Kickbacks to entities making drug recommendations compromise their independence and undermine their role in protecting nursing home residents from the use of unnecessary drugs.”
Nursing homes rely on consultant pharmacists, such as those employed by PharMerica, to review their residents’ medical charts at least monthly and make recommendations to their physicians about what drugs should be prescribed for those residents. The settlement announced today resolves allegations that in exchange for recommending that physicians prescribe Depakote, an anti-epileptic drug manufactured by Abbott, to nursing home residents, PharMerica solicited and received kickbacks from Abbott. The government alleges that the kickbacks were disguised as rebates, educational grants and other financial support.
In May 2012, the United States, numerous individual states and Abbott entered into a $1.5 billion global civil and criminal resolution that, among other things, resolved Abbott’s liability under the False Claims Act for alleged kickbacks to nursing home pharmacies, including PharMerica. The settlement announced today resolves PharMerica’s role in that alleged kickback scheme.
“The settlement announced today should serve as a stark reminder to pharmaceutical companies and those with whom they do business that the Department of Justice and its investigative agencies will continue to monitor their activities,” said U.S. Attorney Anthony P. Giorno of the Western District of Virginia. “When those activities involve improprieties such as the payment of kickbacks, we will not hesitate to hold them accountable. We owe nothing less in fulfilling our duty to ensure that nursing home residents are provided with the appropriate drugs based upon their needs rather than the business interests of the companies providing the drugs.”
Approximately $6.75 million of the settlement will go to the United States, while $2.5 million has been allocated to cover Medicaid program claims by states that elect to participate in the settlement. The Medicaid program is jointly funded by the federal and state governments.
“Nursing home pharmacies accepting kickbacks from drug makers in exchange for prescribing certain prescription drugs puts vulnerable residents at risk for receiving unnecessary medications, corrupts medical decision making, and inflates health care costs,” said Special Agent in Charge Nick DiGiulio of the U.S. Department of Health and Human Services’ Office of Inspector General (HHS-OIG). “Our agency will continue to root out such corrosive practices from our health care system.”
The settlement partially resolves allegations in two lawsuits filed in federal court in the Western District of Virginia by Richard Spetter and Meredith McCoyd, former Abbott employees. The lawsuits were filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private individuals to sue on behalf of the government for false claims and to share in any recovery. The act also allows the government to intervene and take over the action, as it did in part in this case. As part of today’s resolution, Ms. McCoyd will receive $1 million from the federal share of the settlement amount.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) 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. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $25.2 billion through False Claims Act cases, with more than $16.1 billion of that amount recovered in cases involving fraud against federal health care programs.
This matter was jointly handled by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office of the Western District of Virginia, HHS-OIG, the commonwealth of Virginia’s Office of Attorney General and the National Association of Medicaid Fraud Control Units.
The cases are captioned United States ex rel. Spetter v. Abbott Labs., et al., Case No. 10-cv-00006 (W.D. Va.) and United States ex rel. McCoyd v. Abbott Labs., et al., Case No. 07-cv-00081 (W.D. Va.). The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Nanny Charged with Forging Dozens of Checks from Employers’ Bank AccountRead the Press Release
BOSTON – A Randolph woman who was employed as a nanny was arrested today and charged in U.S. District Court in Boston with forging 65 checks totaling over $280,000 from her employers’ bank account.
Stephanie L. Fox, 30, was arrested today and charged in a criminal complaint with three counts of bank fraud. Fox will have an initial appearance before U.S. District Court Magistrate Judge Donald L. Cabell this afternoon.
According to the complaint affidavit, Fox was employed as a nanny from about February 2013 until August 2015 when her employers discovered that for more than a year, Fox had been writing checks on one of their bank accounts and forging one of their signatures on the checks. Fox avoided detection by destroying the bank account statements when they arrived at her employers’ home. In total, it is alleged that Fox forged 65 checks totaling $281,917, using the money to purchase jewelry, including a diamond pendant necklace and three Movado watches, as well as for travel to places such as the Bahamas, Aruba, Hawaii, Newport, Disney, and Cape Cod.
The charging statute provides for a sentence of no greater than 30 years in prison, five years of supervised release, a fine of $1 million, and restitution. 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 Commissioner William Evans of the Boston Police Department, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Mark J. Balthazard of Ortiz’s Economic Crimes Unit.
The details contained in the criminal complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
More Former Stamp Farms Employees Sentenced for ConspiracyRead the Press Release
Andrew and Robert Trowbridge hid a $100,000 pulling tractor and other Stamp Farms assets from the bankruptcy trustee
GRAND RAPIDS, MICHIGAN — U.S. Attorney Patrick Miles announced today that brothers Andrew and Robert Trowbridge of South Haven, Michigan, were sentenced for conspiring to conceal assets from the Stamp Farms bankruptcy trustee. Robert Trowbridge also made a fraudulent crop insurance claim. U.S. District Judge Robert Holmes Bell sentenced each brother to one year of probation, a $10,000 fine and 200 hours of community service.
Andrew and Robert Trowbridge hid a high-performance pulling tractor from the Stamp Farms bankruptcy trustee and lied about it during bankruptcy proceedings. The pulling tractor, named "Ghost Rider," was worth more than $100,000. Robert Trowbridge also made a fraudulent claim for approximately $50,000 in crop insurance, and accepted payment of more than $22,000 that was concealed from the bankruptcy trustee. The Trowbridges ultimately returned the pulling tractor, and Robert Trowbridge repaid some of the assets he concealed from the bankruptcy trustee. The Trowbridges told Judge Bell they committed these crimes at Michael Stamp’s request.
To date, five former Stamp Farms employees have been convicted of federal felonies for their involvement in crimes arising out of their employment there, including Melissa Stamp, who is serving a twenty-one month sentence for hiding approximately $200,000 of bankruptcy assets.
The U.S. Attorney’s Office is continuing to investigate crimes arising out of the business formerly known as Stamp Farms. Anyone with knowledge of those crimes should contact the U.S. Attorney’s Office at 616-456-2404.
This case was investigated by the U.S. Bankruptcy Trustee’s Office, and agents with IRS Criminal Investigations, the U.S. Secret Service, and the USDA Office of Inspector General. Assistant U.S. Attorneys Michael A. MacDonald and Clay Stiffler prosecuted the case.
END
Minnesota Woman Sentenced for Using A Passport Secured by A False StatementRead 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 Cubtan Abdirahman Nur, 50, of Minneapolis, Minnesota, who was convicted of using a passport secured by a false statement, was sentenced to two years probation and a $1,000 fine by U.S. District Judge Richard J. Arcara.Assistant U.S. Attorney Scott S. Allen, Jr., who handled the case, stated that on April 21, 2015, the defendant attempted to enter the United States at the Rainbow Bridge Port of Entry. To gain entry, Nur used a United States passport. Authorities linked the defendant’s passport to a passport application filed in 2011 in which Nur claimed she was born in Ethiopia and only used one identity. Fingerprint analysis and a subsequent confession determined that in fact Nur reported a different name, birthdate, and country of birth when she filed for asylum in 1997.
The sentencing is the culmination of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero and the Department of State, under the direction of Resident Agent in Charge William Ferrari.
Miami Physician Indicted for Role in $20 Million Health Care Fraud SchemeRead the Press Release
A Miami physician was charged in an indictment unsealed today with participating in a Medicare fraud scheme that caused losses of more than $20 million.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office and Special Agent in Charge Shimon Richmond of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office made the announcement.
Henry Lora, M.D., 51, of Miami, was charged with one count of conspiracy to commit health care fraud and wire fraud; and one count of conspiracy to defraud the United States, receive health care kickbacks and make false statements relating to health care matters.
According to allegations in the indictment, Lora and Isabel Medina owned and operated Merfi Corporation (Merfi), a Miami-area clinic that employed physicians, physician assistants and other medical professionals. The indictment alleges that, in exchange for kickbacks and bribes, Lora and his co-conspirators wrote prescriptions for home health care and other services for Medicare beneficiaries that were not medically necessary or not provided. Lora and his co-conspirators allegedly falsified patient records to make it appear as if the beneficiaries qualified for the services for which Medicare was billed.
According to the indictment, the alleged actions of Lora and his co-conspirators prompted multiple Miami-Dade home health care agencies and other providers to bill Medicare for services that were not medically necessary or not provided. Medicare made payments on these fraudulent claims.
Medina pleaded guilty to conspiracy to commit health care fraud and was sentenced in March 2014 to nine years in prison. Medina admitted that her activities and those of her co-conspirators at Merfi caused losses to the Medicare program exceeding $20 million.
The charges and allegations contained in an indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty.
The case was investigated by the FBI and HHS-OIG, and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office of the Southern District of Florida. This case is being prosecuted by Trial Attorney A. Brendan Stewart of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged over 2,300 defendants who collectively have billed the Medicare program for over $7 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Lora Indictment
Medical Device Manufacturer Permanently EnjoinedRead the Press Release
Late yesterday, a federal judge in South Dakota issued a permanent injunction against Robert “Larry” Lytle of Rapid City, South Dakota and his medical device businesses, the Justice Department announced. Lytle marketed laser devices to treat a variety of medical conditions and diseases through several entities, including QLasers PMA and 2035 PMA, and is the owner and operator of 2035 Inc.
In October 2014, the Justice Department brought a civil action to enforce provisions of the federal Food, Drug and Cosmetic Act (FDCA). As the court found, Lytle and his businesses violated the FDCA by marketing and distributing the QLaser devices nationwide for the treatment of more than 200 different diseases and medical disorders without clearance or approval from the U.S. Food and Drug Administration (FDA).
“We brought this lawsuit because Mr. Lytle had been putting consumers at risk, while attempting to evade the FDCA – a law Congress enacted to protect public health and safety,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “It is especially noteworthy and gratifying that the Department was able to obtain some recompense for the innocent consumers whom Lytle victimized.”
According to the complaint and evidence adduced at a trial, Lytle has been distributing the QLaser devices with false and misleading labeling claims, touting their use for treating such serious conditions as cancer, HIV/AIDS and diabetes. Although two of the devices are cleared for providing temporary relief of pain associated with osteoarthritis of the hand, none of the devices have been cleared by the FDA or otherwise approved to treat any other medical conditions. Moreover, using the QLaser devices can be harmful in certain situations, and its use to treat other serious conditions, is unsupported by any published clinical studies.
The permanent injunction issued yesterday by U.S. District Court Chief Judge Jeffrey L. Viken follows a trial held in March 2015, in which the government established that the QLaser’s labeling was false and misleading and that, in fact, using the lasers according to their directions could be dangerous to health. Yesterday’s court order requires that Lytle and his businesses cease directly or indirectly manufacturing, packing, labeling and/or distributing any medical device unless and until they comply with certain terms of the injunction.
The court also ordered Lytle to refund the full amount consumers paid for their QLaser devices, whether the devices were purchased directly from Lytle’s businesses or through one of his several distributors. Depending on the specific package purchased, each consumer typically paid between $4,295 and $12,600, according to the evidence before the court. Lytle has admitted that he has sold at least 20,000 devices since 1998.
Lytle is required to pay the United States $10,000 per day for any violation of the permanent injunction, and is subject to other sanctions, including fines and imprisonment, for failing to comply.
“This ruling will help restore consumer confidence and send a strong message that a company cannot exercise blatant disregard of the law, especially when consumers’ health is at risk,” said U.S. Attorney Randolph J. Seiler of the District of South Dakota. “Justice has been served with this permanent injunction, and it will prohibit Mr. Lytle from continuing to thumb his nose at federal regulations that protect public health and safety.”
“Robert Lytle and his businesses ignored previous FDA warnings and continued to produce and distribute these devices in violation of federal law,” said Acting Director Jan Welch of the Office of Compliance in the FDA’s Center for Devices and Radiological Health. “The FDA will remain vigilant in protecting the health of the American public by ensuring that medical devices are shown to be safe and effective before being used by patients.”
The government’s case is being handled by Trial Attorney Ross S. Goldstein of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Camela C. Theeler of the District of South Dakota. Sonia Nath, with the FDA’s Office of Chief Counsel, is assisting with this case.
QLasers PMA and Robert Lytle Order of Permanent Injunction (399.06 KB)
Media advisoryRead the Press Release
CHARLESTON, W.Va. – Pursuant to the Court’s directive in the case of United States v. Blankenship, all government exhibits admitted into evidence and published to the jury will be made available to the press and the public no later than 9:00 a.m., the day after admission and publication of the exhibits. The exhibits will be posted to a link on the website of United States Attorney Booth Goodwin at http://www.justice.gov/usao-sdwv.
Maryland Man Sentenced to Prison for Role in Massive Identity Theft and Tax Fraud SchemeRead the Press Release
A resident of Capitol Heights, Maryland, was sentenced today to serve 46 months in prison for his involvement in a far-reaching identity theft and tax fraud scheme in which he and others working with him filed fraudulent federal income tax returns seeking more than $2.5 million in refunds, the Justice Department announced.
Alvalonzo Graham, 30, is among approximately 12 people who have pleaded guilty to charges in the U.S. District Court for the District of Columbia. According to court documents, the overall case involves the filing of at least 12,000 fraudulent federal income tax returns using stolen identifying information that sought refunds of at least $40 million from the U.S. Treasury.
The sentencing was announced by Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division, Acting U.S. Attorney Vincent H. Cohen Jr. of the District of Columbia, Special Agent in Charge Thomas Jankowski of the Internal Revenue Service-Criminal Investigation (IRS-CI), Inspector in Charge David G. Bowers of the U.S. Postal Inspection Service’s (USPIS) Washington, D.C., Division and Assistant Inspector General for Investigations John L. Phillips of the U.S. Department of the Treasury.
On March 18, 2014, Graham pleaded guilty to conspiracy to defraud the United States through the filing of false income tax returns. He was sentenced by U.S. District Judge Ellen S. Huvelle of the District of Columbia. Upon completion of his prison term, he will be placed on three years of supervised release. In addition, as part of his plea agreement, Graham must pay $424,017.35 in restitution to the IRS.
“Today’s sentence is a warning to those who think they can profit from stealing identities and filing false claims for refund,” said Acting Assistant Attorney General Ciraolo. “The department has made it a priority to work with the IRS and other federal and state law enforcement agencies to fully investigate and prosecute stolen identity refund fraud and see that these offenders pay for their crimes with significant jail terms.”
“The theft of identities and taxpayer dollars has become a nationwide epidemic, and this case shows the lengths that criminals will go in pursuit of cashing in,” said Acting U.S. Attorney Cohen. “Unfortunately for Alvalonzo Graham and his co-conspirators, this case also shows the lengths that law enforcement will go to protect taxpayers’ dollars and to prosecute those who try to scam the system.”
“Perpetrators of identity theft schemes are motivated by greed, acting as if they are above the law and with total disregard for the consequences to the victims,” said Special Agent in Charge Jankowski. “The actions of criminals such as Mr. Graham, create distressing hardships for many innocent taxpayers and have a devastating impact on the entire community.”
“This case serves as yet another example of the significant results that can be achieved when law enforcement agencies partner, share information, and collaborate,” said Inspector in Charge Bowers. “Identity theft is an increasing problem. Today’s sentence shows that this type of criminal conduct, especially when it involves the U.S. mail, will not be ignored or go unpunished.”
“Today’s sentencing reflects the Treasury Office of Inspector General and our law enforcement partners continuing focus and efforts to protect both the Treasury and the hard-working American taxpayers from offenders who fraudulently conspire to obtain improper payments from the Treasury,” said Assistant Inspector General for Investigations Phillips.
According to the government’s evidence, Graham participated in a massive and sophisticated identity theft and false tax refund scheme that involved an extensive network of more than 130 people, many of whom were receiving public assistance. The refunds were sought for tax years 2005 through 2012, often in the names of people whose identities had been stolen, including the elderly, people in assisted living facilities, drug addicts and incarcerated prisoners. In other cases, the refunds were sent to people who were willing participants in the scheme. The refunds listed more than 400 “taxpayer” addresses located in the District of Columbia, Maryland and Virginia.
According to documents filed with the court, from January 2011 through July 2012, Graham prepared and mailed fraudulent federal income tax returns, deposited the fraudulently-obtained tax refund checks into his own bank account and recruited, coordinated, directed and compensated others in the execution of the scheme, including a bank teller. Graham’s actions and those of the people he directed and paid resulted in the filing of approximately 492 fraudulent income tax returns claiming $2,552,740 in refunds. He maintained a bank account into which he deposited approximately 97 fraudulently obtained U.S. Treasury checks that totaled approximately $424,017. Graham kept portions of these fraudulently obtained refunds.
In announcing the sentence, Acting Assistant Attorney General Ciraolo, Acting U.S. Attorney Cohen, Special Agent in Charge Jankowski, Inspector in Charge Bowers and Assistant Inspector General Phillips commended those who investigated the case. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office of the District of Columbia, including former Assistant U.S. Attorney Sherri L. Schornstein and Paralegal Specialists Donna Galindo and Ida Anabarian. Finally, they expressed appreciation for the work of Assistant U.S. Attorney Ellen Chubin Epstein of the District of Columbia’s Fraud and Public Corruption Section and Trial Attorneys Jeffrey B. Bender and Thomas F. Koelbl and former Trial Attorney Jessica Moran of the Tax Division, who prosecuted the case.
Maryland Man Sentenced to 46 Months in Prison for Role in Massive Identity Theft and Tax Fraud SchemeRead the Press Release
WASHINGTON – A resident of Capitol Heights, Maryland, was sentenced today to serve 46 months in prison for his involvement in a far-reaching identity theft and tax fraud scheme in which he and others working with him filed fraudulent federal income tax returns seeking more than $2.5 million in refunds, the Justice Department announced.
Alvalonzo Graham, 30, is among approximately 12 people who have pleaded guilty to charges in the U.S. District Court for the District of Columbia. According to court documents, the overall case involves the filing of at least 12,000 fraudulent federal income tax returns using stolen identifying information that sought refunds of at least $40 million from the U.S. Treasury.
The sentencing was announced by Acting U.S. Attorney Vincent H. Cohen, Jr. of the District of Columbia, Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division, Special Agent in Charge Thomas Jankowski of the Internal Revenue Service-Criminal Investigation (IRS-CI), Inspector in Charge David G. Bowers of the U.S. Postal Inspection Service’s (USPIS) Washington, D.C., Division and Assistant Inspector General for Investigations John L. Phillips of the U.S. Department of the Treasury.
On March 18, 2014, Graham pleaded guilty to conspiracy to defraud the United States through the filing of false income tax returns. He was sentenced by U.S. District Judge Ellen S. Huvelle of the District of Columbia. Upon completion of his prison term, he will be placed on three years of supervised release. In addition, as part of his plea agreement, Graham must pay $424,017 in restitution to the IRS.
“The theft of identities and taxpayer dollars has become a nationwide epidemic, and this case shows the lengths that criminals will go in pursuit of cashing in,” said Acting U.S. Attorney Cohen. “Unfortunately for Alvalonzo Graham and his co-conspirators, this case also shows the lengths that law enforcement will go to protect taxpayers’ dollars and to prosecute those who try to scam the system.”
“Today’s sentence is a warning to those who think they can profit from stealing identities and filing false claims for refund,” said Acting Assistant Attorney General Ciraolo. “The department has made it a priority to work with the IRS and other federal and state law enforcement agencies to fully investigate and prosecute stolen identity refund fraud and see that these offenders pay for their crimes with significant jail terms.”
“Perpetrators of identity theft schemes are motivated by greed, acting as if they are above the law and with total disregard for the consequences to the victims,” said Special Agent in Charge Jankowski. “The actions of criminals such as Mr. Graham create distressing hardships for many innocent taxpayers and have a devastating impact on the entire community.”
“This case serves as yet another example of the significant results that can be achieved when law enforcement agencies partner, share information, and collaborate,” said Inspector in Charge Bowers. “Identity theft is an increasing problem. Today’s sentence shows that this type of criminal conduct, especially when it involves the U.S. mail, will not be ignored or go unpunished.”
“Today’s sentencing reflects the Treasury Office of Inspector General and our law enforcement partners continuing focus and efforts to protect both the Treasury and the hard-working American taxpayers from offenders who fraudulently conspire to obtain improper payments from the Treasury,” said Assistant Inspector General for Investigations Phillips.
According to the government’s evidence, Graham participated in a massive and sophisticated identity theft and false tax refund scheme that involved an extensive network of more than 130 people, many of whom were receiving public assistance. The refunds were sought for tax years 2005 through 2012, often in the names of people whose identities had been stolen, including the elderly, people in assisted living facilities, drug addicts and incarcerated prisoners. In other cases, the refunds were sent to people who were willing participants in the scheme. The refunds listed more than 400 “taxpayer” addresses located in the District of Columbia, Maryland and Virginia.
According to documents filed with the court, from January 2011 through July 2012, Graham prepared and mailed fraudulent federal income tax returns, deposited the fraudulently-obtained tax refund checks into his own bank account and recruited, coordinated, directed and compensated others in the execution of the scheme, including a bank teller. Graham’s actions and those of the people he directed and paid resulted in the filing of approximately 492 fraudulent income tax returns claiming $2,552,740 in refunds. He maintained a bank account into which he deposited approximately 97 fraudulently obtained U.S. Treasury checks that totaled approximately $424,017. Graham kept portions of these fraudulently obtained refunds.
In announcing the sentence, Acting U.S. Attorney Cohen, Acting Assistant Attorney General Ciraolo, Special Agent in Charge Jankowski, Inspector in Charge Bowers and Assistant Inspector General Phillips commended those who investigated the case. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office of the District of Columbia, including former Assistant U.S. Attorney Sherri L. Schornstein and Paralegal Specialists Donna Galindo and Ida Anbarian. Finally, they expressed appreciation for the work of Assistant U.S. Attorney Ellen Chubin Epstein of the District of Columbia’s Fraud and Public Corruption Section and Trial Attorneys Jeffrey B. Bender and Thomas F. Koelbl and former Trial Attorney Jessica Moran of the Tax Division, who prosecuted the case.
Manhattan U.S. Attorney Announces Charges Against Four Prominent Honduran Businessmen for Laundering the Proceeds of Narcotics and Bribery Offenses Through Accounts Located in the United StatesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Mark Hamlet, the Special Agent in Charge of the Special Operations Division of the United States Drug Enforcement Administration (“DEA”), announced today that Honduran bankers JAIME ROLANDO ROSENTHAL OLIVA, YANI BENJAMIN ROSENTHAL HIDALGO, YANKEL ROSENTHAL COELLO, and ANDRES ACOSTA GARCIA were charged in connection with a multi-year scheme to launder the proceeds of narcotics trafficking offenses and foreign bribery offenses through accounts located in the United States. ROSENTHAL COELLO was arrested last night in Miami, Florida, and will appear this afternoon before United States Magistrate Judge Chris M. McAliley in Miami federal court. The remaining three defendants are at large.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, Yankel Rosenthal Coello and his co-defendants used the banking system and their businesses to launder proceeds of narcotics trafficked to the U.S. Thanks to the outstanding investigative work of the DEA, these alleged criminals now face U.S. charges.”
In a separate action today, the U.S. Department of the Treasury’s Office of Foreign Assets Control (“OFAC”) designated ROSENTHAL OLIVA, ROSENTHAL HIDALGO, and ROSENTHAL COELLO as Specially Designated Narcotics Traffickers pursuant to the Foreign Narcotics Kingpin Designation Act (“Kingpin Act”) for playing a significant role in international narcotics trafficking. OFAC also designated several of the businesses associated with the defendants as Specially Designated Nationals under the Kingpin Act, including Inversiones Continental (Panama), S.A. de C.V., known as Grupo Continental, the parent company of a conglomerate of businesses in Honduras involved in banking, financial services, real estate, agriculture, construction, tourism, and media; Grupo Continental’s agricultural arm, Empacadora Continental S.A de C.V. (now known as Alimentos Continental); Inversiones Continental, S.A. (a.k.a. Grupo Financiero Continental); and the Honduran bank Banco Continental S.A.
According to the allegations in the Indictment,[1] which was previously unsealed in Manhattan federal court, the defendants conspired with others from 2004 through September 2015 to commit money laundering offenses in violation of Title 18, United States Code, Sections 1956 and 1957. Specifically, the Indictment charges the defendants with conspiring to conduct financial transactions occurring in whole or in part in the United States and involving the proceeds of (i) narcotics offenses and (ii) offenses against a foreign nation involving bribery of public officials and the misappropriation, theft, or embezzlement of public funds.
ROSENTHAL COELLO, 46, ROSENTHAL OLIVA, 79, ROSENTHAL HIDALGO, 50, and ACOSTA GARCIA, 40, all of Honduras, are each charged with one count of money laundering, which carries a maximum penalty of 20 years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentence will be determined by a judge.
Mr. Bharara praised the outstanding investigative work of the DEA’s Special Operations Division, New York Strike Force, and New York Task Force. Mr. Bharara also thanked the U.S. Department of Justice’s Office of International Affairs, OFAC, the U.S. Attorney’s Office for the Southern District of Florida, and the United States Department of the Treasury’s Financial Crimes Enforcement Network for their ongoing assistance.
This prosecution is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys Emil J. Bove III, Adam Fee, Michael D. Lockard, and Matthew Laroche are in charge of the prosecution.
The charges contained in the Indictment are merely accusations and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth below constitute only allegations, and every fact described should be treated as an allegation.
Medical Device Manufacturer Permanently EnjoinedRead the Press Release
WASHINGTON – Late yesterday, a federal judge in South Dakota issued a permanent injunction against Robert “Larry” Lytle of Rapid City, South Dakota and his medical device businesses, the Justice Department announced. Lytle marketed laser devices to treat a variety of medical conditions and diseases through several entities, including QLasers PMA and 2035 PMA, and is the owner and operator of 2035 Inc.
In October 2014, the Justice Department brought a civil action to enforce provisions of the federal Food, Drug and Cosmetic Act (FDCA). As the court found, Lytle and his businesses violated the FDCA by marketing and distributing the QLaser devices nationwide for the treatment of more than 200 different diseases and medical disorders without clearance or approval from the U.S. Food and Drug Administration (FDA).
“We brought this lawsuit because Mr. Lytle had been putting consumers at risk, while attempting to evade the FDCA – a law Congress enacted to protect public health and safety,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “It is especially noteworthy and gratifying that the Department was able to obtain some recompense for the innocent consumers whom Lytle victimized.”
According to the complaint and evidence adduced at a trial, Lytle has been distributing the QLaser devices with false and misleading labeling claims, touting their use for treating such serious conditions as cancer, HIV/AIDS and diabetes. Although two of the devices are cleared for providing temporary relief of pain associated with osteoarthritis of the hand, none of the devices have been cleared by the FDA or otherwise approved to treat any other medical conditions. Moreover, using the QLaser devices can be harmful in certain situations, and its use to treat other serious conditions, is unsupported by any published clinical studies.
The permanent injunction issued yesterday by U.S. District Court Chief Judge Jeffrey L. Viken follows a trial held in March 2015, in which the government established that the QLaser’s labeling was false and misleading and that, in fact, using the lasers according to their directions could be dangerous to health. Yesterday’s court order requires that Lytle and his businesses cease directly or indirectly manufacturing, packing, labeling and/or distributing any medical device unless and until they comply with certain terms of the injunction.
The court also ordered Lytle to refund the full amount consumers paid for their QLaser devices, whether the devices were purchased directly from Lytle’s businesses or through one of his several distributors. Depending on the specific package purchased, each consumer typically paid between $4,295 and $12,600, according to the evidence before the court. Lytle has admitted that he has sold at least 20,000 devices since 1998.
Lytle is required to pay the United States $10,000 per day for any violation of the permanent injunction, and is subject to other sanctions, including fines and imprisonment, for failing to comply.
“This ruling will help restore consumer confidence and send a strong message that a company cannot exercise blatant disregard of the law, especially when consumers’ health is at risk,” said U.S. Attorney Randolph J. Seiler of the District of South Dakota. “Justice has been served with this permanent injunction, and it will prohibit Mr. Lytle from continuing to thumb his nose at federal regulations that protect public health and safety.”
“Robert Lytle and his businesses ignored previous FDA warnings and continued to produce and distribute these devices in violation of federal law,” said Acting Director Jan Welch of the Office of Compliance in the FDA’s Center for Devices and Radiological Health. “The FDA will remain vigilant in protecting the health of the American public by ensuring that medical devices are shown to be safe and effective before being used by patients.”
The government’s case is being handled by Trial Attorney Ross S. Goldstein of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Camela C. Theeler of the District of South Dakota. Sonia Nath, with the FDA’s Office of Chief Counsel, is assisting with this case.
Jury Convicts Former Fox 40 Web Producer for Conspiring to Hack into and Alter Los Angeles Times ServersRead the Press Release
SACRAMENTO, Calif. — A former web producer for KTXL FOX40, a Tribune Company-owned television station in Sacramento, was convicted today for his role in a conspiracy to hack into the servers of the Los Angeles Times and the Tribune Company, following an eight-day trial before U.S. District Judge Kimberly J. Mueller, United States Attorney Benjamin B. Wagner and FBI Special Agent in Charge Monica M. Miller announced.
Matthew Keys, 28, of Vacaville, was found guilty by a federal jury in Sacramento of one count of conspiracy to make unauthorized changes to the Tribune Company’s websites, and damage its computer systems; one count of transmitting malicious code; and one count of attempted transmission of malicious code.
“Although this case has drawn attention because of Matthew Keys’ employment in the news media, this was simply a case about a disgruntled employee who used his technical skills to taunt and torment his former employer,” said U.S. Attorney Wagner. “Although he did no lasting damage, Keys did interfere with the business of news organizations, and caused the Tribune Company to spend thousands of dollars protecting its servers. Those who use the Internet to carry out personal vendettas against former employers should know that there are consequences for such conduct.”
“This case demonstrates the FBI’s commitment to identify and investigate those who harass former employers by using insider knowledge to intentionally exploit computer systems—whether directly or by proxy—to damage the reputation and operations of a business,” said Special Agent in Charge Monica M. Miller of the Federal Bureau of Investigation’s Sacramento field office. “Individuals who use ‘bully’ tactics to attack computer networks will face justice for their actions.”
According to evidence presented at trial, in December 2010, Keys provided members of the hacker group Anonymous with login credentials for a computer server belonging to FOX40’s corporate parent, the Tribune Company. Keys identified himself on an Internet chat forum as a former Tribune Company employee and provided members of Anonymous with a login and password to the Tribune Company server. After providing login credentials, Keys encouraged the Anonymous members to disrupt several Tribune companies and urged that the Los Angeles Times should be “demolished.” According to the evidence at trial, at least one of the computer hackers used the credentials provided by Keys to log in to the Tribune Company server and make changes to the web version of a Los Angeles Times news feature. In addition, according to the trial evidence, Keys changed the access credentials of FOX40 employees, interfering with their ability to access company servers, and obtained email addresses for FOX40 viewers, to whom he sent disparaging emails about the company. Keys’ actions caused the defaced story to be on the mobile version of the L.A. Times for a day, and resulted in thousands of dollars in costs for the Tribune Company in responding to the breach of its systems by shutting backdoor access credentials and assessing the full extent of the damage.
The case is the product of an investigation by the Federal Bureau of Investigation. Deputy Chief James A. Silver of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) and Assistant U.S. Attorneys Matthew D. Segal and Paul A. Hemesath of the Eastern District of California are prosecuting the case.
Keys is scheduled to be sentenced on January 20, 2016 by Judge Mueller. The sentence will be determined at the discretion of the court after consideration of any applicable statutory sentencing factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Jackson CEO Pleads Guilty to Embezzling Funds of Employees’ Health Care Benefit ProgramRead the Press Release
SACRAMENTO, Calif. — Cory Kasinger, 42, of Jackson, the Chief Operating Officer of Mariah Resources Inc., pleaded guilty today to one misdemeanor count of embezzling funds from a health care benefit program and agreed to pay $36,980 in restitution, United States Attorney Benjamin B. Wagner announced.
According to court documents, between March 1, 2010, and May 31, 2010, Kasinger withheld approximately $19,628 from the paychecks of Mariah Resources employees, which was to be applied towards the premiums of their health care benefit program. Instead of Kasinger paying the premiums, he returned these funds to the company’s general fund. As a result, the employees’ health care benefit program was terminated. The termination date was retroactive to March 1, 2010, which caused Mariah Resources employees to incur approximately $16,569 in out-of-pocket medical costs. Additionally, when the insurer sent $782 to Mariah Resources to reimburse former employees who were paying into the company’s COBRA program, Kasinger put the money into the general fund and did not pass it back to the former employees as he should have.
This case is the product of an investigation by the Department of Labor, Employee Benefits Security Administration. Special Assistant United States Attorney Elliot Wong is prosecuting the case.
Kasinger is scheduled to be sentenced on January 6, 2016 by United States Magistrate Judge Kendall J. Newman. Kasinger faces a maximum sentence of one year in prison, a fine of $100,000, and a one-year term of supervised release. The actual sentence will be determined at the discretion of the court after consideration of any applicable statutory sentencing factors and the Federal Sentencing Guidelines, which take into account a number of variables.
International Money Launderer Pleads GuiltyRead the Press Release
PHILADELPHIA- Miguel Amaris-Caviedes, 37, of Costa Rica, pleaded guilty today to two counts of knowingly conducting financial transactions that involved purported drug proceeds. A sentencing hearing is scheduled for January 7, 2016.
Amaris-Caviedes was laundering purported drug proceeds through Costa Rican bank accounts. In 2013, Amaris-Caviedes met with individuals to discuss money laundering and drug trafficking methods from Costa Rica. Amaris-Caviedes agreed to launder what he believed to be drug proceeds through four Costa Rican bank accounts and then wire transfer the proceeds, minus his commission, to any country requested. In November 2013, Amaris-Caviedes laundered more than $100,000 of purported drug proceeds through his bank accounts in Costa Rica to a bank account in Puerto Rico. Amaris-Caviedes believed that this money would be used to purchase drugs from a source of supply in Puerto Rico. Amaris-Caviedes was arrested in Spain on November 16, 2014 by INTERPOL agents.
The case was investigated jointly by the Drug Enforcement Administration, the Internal Revenue Service Criminal Investigations, and Homeland Security Investigations. It is being prosecuted by Assistant United States Attorneys Karen S. Marston and Kevin R. Brenner.
Hyattsville Man Sentenced to Two Years in Prison for Fraudulent Tax Refund SchemeRead the Press Release
Greenbelt, Maryland – U.S. District Judge Deborah K. Chasanow sentenced Norman D. West, age 48, of Hyattsville, Maryland and Washington, D.C. today to two years in prison, followed by three years of supervised release, for conspiracy to commit theft of public money in connection with a fraudulent tax refund scheme. Judge Chasanow also entered an order requiring West to pay restitution of $408,221.30, the total amount of the tax loss.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Thomas Jankowski of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; Jeffrey S. DeWitt, Chief Financial Officer for the District of Columbia; Gilbert Garza, Chief of the D.C. Office of Tax and Revenue, Criminal Investigation Division; and John L. Phillips, Assistant Inspector General for Investigations, U.S. Department of the Treasury - Office of Inspector General.
“Conspiring to defraud the government through filing false tax returns is unlawful.” said Thomas Jankowski, Special Agent in Charge, IRS Criminal Investigation, Washington DC Field Office. “Bringing individuals to justice, such as Norman West, who intentionally engage in defrauding the IRS and taxpayers is a priority for IRS-CI.”
John L. Phillips, Assistant Inspector General for Investigations, Treasury Office of Inspector General, said, “The sentencing today demonstrates the continued efforts of the Treasury Office of Inspector General and our law enforcement partners to protect our nation and the hard working taxpayers money from offenders who commit fraud against the Treasury Department by fraudulently obtaining improper payments.”
According to West’s plea agreement, West is a musician and operated a putative tax preparation business known as “Flash Cash Financial,” or “Flash Cash,” which had a purported business address in Baltimore, Maryland.
From August 2011 through January 2013, West and his co-conspirators obtained the personal information of “recruits” which West used to file false tax returns in order to generate a fraudulent refund. West relied largely upon word of mouth to market his scheme. West paid a co-conspirator a $100 referral fee per recruit. West and his co-conspirators obtained the identities of at least 197 individuals. West used the personal information of those individuals and made up the rest of the tax returns in order to generate refunds. West listed false wages, falsely claimed educational tax credits, and falsely claimed earned income tax credit.
West filed 197 federal tax returns that claimed $391,553 in fraudulent tax refunds, all of which was issued by the IRS. In addition, West filed 28 fraudulent returns with the District of Columbia, which generated an additional $16,668.30 in fraudulent refunds. All of the refunds were deposited in bank accounts opened by West in the name of Flash Cash. West paid the recruits a small portion of the fraudulent refunds, usually about $500, and kept the rest for himself and his co-conspirators.
United States Attorney Rod J. Rosenstein commended the IRS-CI, the Washington, D.C. Office of the Chief Financial Officer and Office of Tax and Revenue, Criminal Investigation Division, and the Department of Treasury Office of Inspector General, for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Kathleen O. Gavin, who prosecuted the case.
Husband and Wife Sentenced for Tax FraudRead the Press Release
ATLANTA - Kenneth Horner and Kimberly Horner have each been sentenced to one year, six months in federal prison following a jury’s guilty verdict in February 2015, on tax fraud charges stemming from the defendants skimming money from their towing business.
“Small business owners should take note of this case,” said U.S. Attorney John Horn. “Skimming cash from your business account and intentionally failing to report that money to the IRS, as a federal jury concluded these defendants did, is illegal. Community services and all other benefits of government depend upon citizens paying their fair share of taxes.”
“Businesses are required to honestly report and pay taxes due, and should expect the same of their competitors,” said Acting Assistant Attorney General Ciraolo. “Those business owners who evade these obligations not only steal from the U.S. Treasury, but gain an unfair competitive advantage, and the department is committed to holding them accountable.”
“IRS Criminal Investigation is sworn to protect the tax system and bring to justice those who steal from the Treasury,” stated Veronica F. Hyman-Pillot, Special Agent in Charge. “In today’s economic environment, it’s more important than ever that the American people feel confident that everyone is paying their fair share. Today’s sentence demonstrates that our largest enforcement program is directed at the portion of American taxpayers, who willfully and intentionally violate their known legal duty of filing and paying their fair share of taxes.”
According to U.S. Attorney Horn, the charges and other information presented in court: Kenneth and Kimberly Horner owned Topcat Towing and Recovery, Inc. (“Topcat Towing”), a towing business in Lithonia, Georgia. Between 2005 and 2008, Topcat Towing had an exclusive contract with DeKalb County, Georgia, for all county car tows needed from the south precinct of the county.
Between 2005 and 2008, the defendants skimmed more than $1.5 million in cash receipts from their towing business and deposited those cash receipts into their personal bank account without disclosing the income to their tax return preparer or on corporate and personal tax returns filed with the IRS. The defendants tried to conceal their cash deposits from the government by “structuring” their deposits, which is the act of splitting up cash deposits so that none of them exceed $10,000, for the purpose of evading a Currency Transaction Report from being filed.
Most financial institutions, including banks, are generally required to file Currency Transaction Reports (CTRs) for cash transactions that exceed $10,000. CTRs are submitted to the U.S. Department of Treasury. In 2007 and 2008, the defendants used their unreported cash, in part, to build a custom home in Conyers that was appraised at more than $900,000.
Kenneth Horner, 59, and Kimberly Horner, 54, both of Milledgville, Georgia, have each been sentenced to one year, six months in federal prison, three years of supervised release, and ordered to pay restitution in the amount of $144,455 to the IRS. The Horners were found guilty by a jury on February 20, 2015.
This case was investigated by the Internal Revenue Service Criminal Investigation.
DOJ Criminal Tax Division Trial Attorney Christopher J. Maietta and Assistant U.S. Attorney Steven D. Grimberg prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Georgia Couple Sentenced to Prison for Tax FraudRead the Press Release
A Milledgeville, Georgia, couple was sentenced to prison today for skimming more than $1.5 million in cash from their business without disclosing the income on their tax returns, Acting Assisting Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney John A. Horn of the Northern District of Georgia announced.
Kenneth Horner, 59, and his wife, Kimberly Horner, 54, were each sentenced to serve 18 months in prison followed by three years of supervised release, and ordered to pay restitution in the amount of $ 144,455 to the Internal Revenue Service (IRS). The Horners were found guilty of filing false corporate tax returns and false individual income tax returns following a four-day trial in February 2015.
“Businesses are required to honestly report and pay taxes due, and should expect the same of their competitors,” said Acting Assistant Attorney General Ciraolo. “Those business owners who evade these obligations not only steal from the U.S. Treasury, but gain an unfair competitive advantage, and the department is committed to holding them accountable.”
“Small business owners should take note of this case,” said U.S. Attorney John Horn. “Skimming cash from your business account and intentionally failing to report that money to the IRS, as a federal jury concluded these defendants did, is illegal. Community services and all other benefits of government depend upon citizens paying their fair share of taxes.”
“IRS Criminal Investigation is sworn to protect the tax system and bring to justice those who steal from the Treasury,” said Special Agent in Charge Veronica F. Hyman-Pillot of IRS-Criminal Investigation (CI). “In today’s economic environment, it’s more important than ever that the American people feel confident that everyone is paying their fair share. Today’s sentence demonstrates that our largest enforcement program is directed at the portion of American taxpayers, who willfully and intentionally violate their known legal duty of filing and paying their fair share of taxes.”
According to the indictment and other information presented in court, Kenneth and Kimberly Horner owned Topcat Towing and Recovery Inc. (Topcat Towing), a towing business in Lithonia, Georgia. Between 2005 and 2008, Topcat Towing had an exclusive contract with DeKalb County, Georgia, for all county car tows needed from the south precinct of the county. Between 2005 and 2008, the defendants skimmed more than $1.5 million in cash receipts from their towing business and deposited those cash receipts into their personal bank account without disclosing the income to their tax return preparer or on the corporate and personal tax returns filed with the IRS.
The defendants tried to conceal their cash deposits from the government by “structuring” their deposits, which is the act of splitting up cash deposits that exceed $10,000 for the purpose of avoiding the filing of a Currency Transaction Report (CTR) by the financial institution. Most financial institutions, including banks, are generally required to file CTRs for cash transactions that exceed $10,000, and the CTRs are submitted to the U.S. Department of Treasury.
In 2007 and 2008, the defendants used their unreported cash, in part, to build a custom home in Conyers, Georgia, that was appraised at more than $900,000.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Horn commended special agents of IRS-CI, who investigated the case, and Assistant U.S. Attorney Steven D. Grimberg of the Northern District of Georgia and Trial Attorney Christopher Maietta of the Tax Division, who prosecuted the case.
Former Youth Minister Sentenced to 264 Months in Federal Prison on Child Enticement ConvictionRead the Press Release
DALLAS — A former youth minister in Garland, Texas, Derek Hutter, 38, was sentenced this morning by U.S. District Judge Barbara M. G. Lynn to 264 months in federal prison, following his guilty plea in June 2015 to one count of enticement of a minor, announced U.S. Attorney John Parker of the Northern District of Texas.
Hutter has been in custody since his arrest in December 2014.
According to plea documents filed in the case, Hutter worked as a youth minister at the South Garland Baptist Church. He used the Internet, his cell phone and email, as well as person-to-person contact at youth group, to communicate with Jane Doe, a minor girl in his youth group. During these conversations, he convinced Jane Doe to have a sexual relationship with him. Hutter sexually assaulted Jane Doe on several occasions between January 1, 2014, through approximately September 15, 2014.
In addition, according to the filed factual resume, Hutter emailed Jane Doe and asked that she send him explicit and lewd photos of herself.
Hutter admitted that he knew Jane Doe was between 13 and 14-years old.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The Sachse Police Department, the Garland Police Department and the FBI investigated. Assistant U.S. Attorney Camille Sparks prosecuted.
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Former Union County Official Sentenced to 70 Months in Prison for Defrauding Union County of More Than $120,000Read the Press Release
NEWARK, N.J. – The former Director of the Division of Facilities Management for Union County, New Jersey, was sentenced today to 70 months in prison for his role in defrauding the county of more than $120,000 in connection with the purchasing of supplies, U.S. Attorney Paul J. Fishman announced.
Aniello Palmieri, 59, of Toms River, New Jersey, previously pleaded guilty before U.S. District Judge William H. Walls to an information charging him with one count of honest services mail fraud. Judge Walls imposed the sentence today in Newark federal court.
According to documents in this case and statements made in court:
From January 2006 to September 2010, Palmieri was the Director of the Division of Facilities Management for Union County, overseeing the purchasing of building materials, tools, hardware, janitorial supplies and other supplies used by the various Bureaus of the Division of Facilities Management.
During the same time period, his codefendant, Frank Donald Vicendese, III, 50, of Berkeley Heights, New Jersey, owned and operated Viva Group LLC, a commercial maintenance and construction business that sold, among other products, hardware, tools and accessories to counties in New Jersey.
Vicendese generated fictitious invoices to Union County through Palmieri for many hardware items. Palmieri then provided county payment vouchers to Vicendese, who signed and returned the vouchers to Palmieri. Palmieri approved the vouchers for payment by falsely verifying that the products were received by Union County, when in fact, the products were not received. Vicendese then compensated Palmieri with cash, gift cards and valuable items, including a Bowflex physical fitness machine, Panasonic Hard Drive Camcorder, and a Canon PowerShot Digital Camera, in exchange for Palmieri’s official action and assistance in the scheme. Viva Group received between $120,000 and $200,000 in fraudulent proceeds from the fictitious invoices.
In addition to the prison term, Judge Walls sentenced Palmieri to three years of supervised release. Vicendese, who pleaded guilty in October 2013, is scheduled to be sentenced on Oct. 21, 2015.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel; and the N.J. State Police, under the direction of Col. Rick Fuentes, superintendent, with the investigation leading to today’s sentencing. He also thanked the N.J. Attorney General’s Office under the direction of Acting Attorney General John J. Hoffman, and Eli Honig, Director of the New Jersey Division of Criminal Justice, for their work in this investigation.
The government is represented by Assistant U.S. Attorney Mark McCarren of the U.S. Attorney’s Office Special Prosecutions Division in Newark.
Defense counsel:
Palmieri: Anthony Iacullo Esq., Nutley, New Jersey
Vicendese: John P. McDonald Esq., Somerset, New Jersey
Former Ithaca Accountant and Florida Man Arrested for Investment Fraud ConspiracyRead the Press Release
SYRACUSE, NEW YORK – Bruce Kane, 60, a former resident of Ithaca, New York who currently resides in Fort Lauderdale, Florida, and Burton Greenberg, 75, of Plantation, Florida were arrested today in Florida on a Northern District of New York indictment charging them with conspiracy to commit wire fraud, announced United States Attorney Richard S. Hartunian and FBI Special Agent In Charge Andrew W. Vale.
As alleged in the Indictment, Bruce Kane is the Managing Partner, Treasurer and Secretary of an investment partnership, Global Financial Fund 8, LLP, that solicited and received over $10 million from investors located throughout the United States, including residents of the Northern District of New York. The indictment alleges that Burton Greenberg, President/CEO of M&P Global Financial Services, Incorporated, a Florida based corporation, entered into agreements in 2001 with Kane and others to invest the $10 million on behalf of investors. The indictment further alleges that rather than investing the money in a secure investment as promised, the defendants instead used the funds to pay off personal debts, cover rent on a waterfront condominium, purchase a boat and make separate investments of their own. According to the indictment, in an effort to avoid detection and allow them to continue to improperly use the investors $10 million, the Defendants sent investors phony "profit" payments in 2004 and 2005 which were in reality a partial return of their principal investment. Further, the indictment alleges that from 2004 to 2013 the Defendants repeatedly assured the investors via e-mail that their investments were secure and profitable when they knew that was not the case.
Burton Greenberg appeared today in federal court in Ft. Lauderdale, Florida where he pled not guilty. Bruce Kane is scheduled to appear in court tomorrow. The case will be prosecuted in the Northern District of New York. If convicted, they face a maximum term of imprisonment of twenty years, a maximum fine of $250,000 and a potential forfeiture money judgment of $10 million.
The case was investigated by the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Geoffrey Brown.
The charges are merely accusations and the defendants are presumed innocent until and unless proven guilty.
Former Correctional Officer at FCI Fort Worth Faces up to 15 Years in Federal Prison After Pleading Guilty to Sexual Abuse with a WardRead the Press Release
FORT WORTH, Texas — A former correctional officer at the Federal Bureau of Prisons (BOP) Federal Correctional Institute (FCI) Fort Worth pleaded guilty this morning in federal court to one count of sexual abuse with a ward, announced U.S. Attorney John Parker of the Northern District of Texas.
Rudy Ramon, 54, of Grand Prairie, Texas, entered his plea before U.S. Magistrate Judge Jeffrey L. Cureton. He faces a maximum statutory penalty of 15 years in federal prison and a $250,000 fine. Ramon will remain on bond pending sentencing, which is set for February 18, 2016, before U.S. District Judge Terry R. Means.
According to documents filed in the case, on the first or second Sunday of November 2014, Ramon engaged in a sex act with an individual who was an inmate assigned to FCI Fort Worth. At the time of the sex act, the inmate was under the custodial, supervisory, or disciplinary authority of Ramon, a BOP Correctional Officer.
The Department of Justice Office of the Inspector General is conducting the investigation. Assistant U.S. Attorney Brian Poe is prosecuting.
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Former Billings Basketball Coach Sentenced to 10 Years in Prison for Coercion and Enticement and Distribution of Child PornRead the Press Release
BILLINGS – A 42-year-old Lockwood man was sentenced today to 120 months in federal prison followed by 15 years supervised release, for two counts of coercion and enticement of a minor, two counts of attempted coercion and enticement of a minor, and one count of distribution of child pornography. Scott James Nichols, a former Billings West High School basketball coach, pleaded guilty to all five counts in June of this year. U.S. District Court Judge Susan Watters handed down the sentence.
In an Offer of Proof filed by Montana Special Assistant U.S. Attorney Ole Olson, the government stated that if the case had proceeded to trial, the government was prepared to prove that Nichols engaged in multiple Facebook chats with at least four adolescent girls ranging in age from 13 to 15 years old. Nichols posed as a high-school aged student or an adolescent girl during these chats. Using an alias, he requested that the girls send sexually explicit pictures of themselves to his cell phone, or, in one case, expose their genitalia to him on a web cam. Two of the victims were identified and the government was prepared to present their testimony at trial. The Facebook accounts associated with Nichols’ aliases were accessed from IP addresses associated with the Billings Public Schools and Nichols’ home computer. The Government would additionally have proven that Nichols sent images of minors engaged in sexually explicit conduct from the same aliases he used to request images from underage girls. The Government was prepared to present at least 16 emails with attached images. Finally, the Government would have offered expert testimony that a forensic analysis of multiple electronic devices owned or used by Nichols, including his personal and work computers and his cell phone, were used to engage in the prohibited activity.
This case was initiated under the Department of Justice’s Project Safe Childhood initiative which was launched in 2006 to combat the proliferation of technology-facilitated crimes involving the sexual exploitation of children. Through a network of federal, state and local law enforcement agencies and advocacy organizations, Project Safe Childhood attempts to protect children by investigating and prosecuting offenders involved in child sexual exploitation. It is implemented through partnerships including the Montana Internet Crimes Against Children (ICAC) Task Force. The ICAC Task Force Program was created to assist state and local law enforcement agencies by enhancing their investigative response to technology facilitated crimes against children. Investigative agencies involved in this case include the FBI, the Montana Division of Criminal Investigation, and the Bozeman and Billings Police Departments.
Special Assistant United States Attorney Ole Olson prosecuted this case. Because there is no parole in the federal system, Nichols will have to serve at least 85% of his sentence before he is released from prison.
Filipino National Admits Conspiring to Export Firearms Parts from the United StatesRead the Press Release
A Filipino national today admitted his role in a conspiracy to smuggle more than $200,000 worth of firearms parts out of the United States.
Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Paul J. Fishman of the District of New Jersey, Special Agent in Charge George P. Belsky of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Newark Field Division and Acting Special Agent in Charge Kevin Kelly of the U.S. Immigration and Customs Enforcement-Homeland Security Investigations (ICE-HSI) Newark Field Office made the announcement.
Kirby Santos, 38, of the Republic of the Philippines, pleaded guilty before U.S. District Judge Noel L. Hillman of the District of New Jersey to an information charging him with one count of conspiracy to violate the Arms Export Control Act and U.S. anti-smuggling laws.
According to the documents filed in this case, other cases and statements made in court:
Santos admitted that from 2008 through October 2013, he and co-conspirators he met in the Philippines or through an online forum agreed to ship firearms parts from the United States to the Philippines. Santos and others used credit cards and other forms of payment to purchase firearms parts from suppliers in the United States. Knowing that they would not ship to the Philippines, Santos arranged for the suppliers to send the firearms parts to the addresses of conspirators in Toms River, New Jersey, and Lynwood, Washington, in order to make the purchases appear to be domestic sales.
At the direction of Santos, the co-conspirators, including Abelardo Delmundo, 53, of Toms River, would then repackage the firearms parts, falsely label the contents of the package and export the firearms parts to the Philippines for ultimate delivery to Santos. To disguise their role in the conspiracy, the conspirators used aliases when sending the packages containing prohibited items. Upon receiving the firearms parts, Santos paid Delmundo and other conspirators in the form of cash or wire transfers to others at their direction.
During the course of the nearly five-year long conspiracy, Santos and others purchased and directed the unlawful exportation of more than $200,000 worth of defense articles from the United States to the Philippines without the required export license.
Santos made his initial appearance in federal court on April 22, 2015, after being charged by criminal complaint with one count of conspiracy to violate the Arms Export Control Act and U.S. anti-smuggling laws. Santos was arrested in Guam on March 31, 2015, by special agents of ICE-HSI and ATF.
The conspiracy charge to which Santos pleaded guilty is punishable by a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for Jan. 20, 2016.
Delmundo pleaded guilty to his role in the conspiracy on Apr. 30, 2015, and sentencing is scheduled for Dec. 10, 2015.
The case was investigated by ICE-HSI and ATF. The case is being prosecuted by Assistant U.S. Attorney Matthew T. Smith of the District of New Jersey and Trial Attorney Nathan M. F. Charles of the National Security Division’s Counterintelligence and Export Control Section.
Santos Plea Agreement
Filipino National Admits Conspiring to Export Firearms Parts from the United StatesRead the Press Release
CAMDEN, N.J. – A Filipino national today admitted his role in a conspiracy to smuggle more than $200,000 worth of firearms parts out of the United States, U.S. Attorney Paul J. Fishman announced.
Kirby Santos, 38, of the Republic of the Philippines, pleaded guilty before U.S. District Judge Noel L. Hillman in Camden federal court to an information charging him with one count of conspiracy to violate the Arms Export Control Act and U.S. anti-smuggling laws.
According to the documents filed in this case, other cases and statements made in court:
Santos admitted that from 2008 through October 2013, he and conspirators he met in the Philippines or through an online forum agreed to ship firearms parts from the United States to the Philippines. Santos and others used credit cards and other forms of payment to purchase firearms parts from suppliers in the United States. Knowing that they would not ship to the Philippines, Santos arranged for the suppliers to send the firearms parts to the addresses of conspirators in Toms River, New Jersey, and Lynwood, Washington, in order to make the purchases appear as domestic sales.
At the direction of Santos, the conspirators, including Abelardo Delmundo, 53, of Toms River, New Jersey, would then repackage the firearms parts, falsely label the contents of the package and export the firearms parts to the Philippines for ultimate delivery to Santos. To disguise their role in the conspiracy, the conspirators used aliases when sending the packages containing prohibited items. Upon receiving the firearms parts, Santos paid Delmundo and other conspirators in the form of cash or wire transfers to others at their direction.
During the course of the nearly five-year long conspiracy, Santos and others purchased and directed the unlawful exportation of more than $200,000 worth of defense articles from the United States to the Philippines without the required export license.
Santos made his initial appearance in federal court on April 22, 2015, after being charged by criminal complaint with one count of conspiracy to violate the Arms Export Control Act and U.S. anti-smuggling laws. Santos was arrested in Guam on March 31, 2015, by special agents of the U.S. Department of Homeland Security-Homeland Security Investigations (DHS-HSI) and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
Delmundo pleaded guilty to his role in the conspiracy on Apr. 30, 2015 and is scheduled for sentencing on Dec. 10, 2015.
The conspiracy charge to which Santos pleaded guilty is punishable by a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for Jan. 20, 2016.
The Arms Export Control Act prohibits the export of defense articles and defense services without first obtaining a license from the U.S. Department of State and is one of the principal export control laws in the United States.
U.S. Attorney Fishman credited special agents of DHS-HSI Cherry Hill, New Jersey, under the direction of Acting Special Agent in Charge Kevin Kelly, and ATF special agents, under the direction of Special Agent in Charge George P. Belsky, with the investigation leading to today’s plea.
The government is represented by Assistant U.S. Attorney Matthew T. Smith of the U.S. Attorney’s Office Criminal Division in Camden and Trial Attorney Nathan M. F. Charles of the National Security Division’s Counterintelligence and Export Control Section.
Defense counsel: Timothy Anderson Esq., Red Bank, New Jersey
Federal Grand Jury Indicts Watuga, TX, Man in Connection with an Alleged Alien Smuggling SchemeRead the Press Release
In San Antonio today, a federal grand jury indicted a Watuga, TX, man for his alleged role in an undocumented alien smuggling conspiracy announced United States Attorney Richard L. Durbin, Jr., and Homeland Security Investigations (HSI) Acting Special Agent in Charge Mark Dawson.
The federal indictment charges 33–year-old Drew Christopher Potter with one count of conspiracy to commit alien smuggling for financial gain and three substantive counts of transportation of undocumented aliens. According to the indictment, Potter conspired to transport undocumented aliens for private financial gain.
On September 18, 2015, Frio County Sheriff’s deputies along with U.S. Border Patrol agents from the Cotulla Border Patrol Station responded to a 911 call from someone who witnessed multiple subjects exiting a semi-tractor-trailer parked at a local convenience store along Interstate 35 South. At the scene, authorities encountered the alleged driver, Potter, and 39 undocumented aliens including 28 adult males, 7 adult females and four minors from Guatemala, El Salvador and Mexico.
Potter remains in federal custody. Upon conviction of each count, he faces up to ten years in federal prison and a maximum $250,000 fine.
“HSI is dedicated to working closely with its law enforcement partners in all arenas in pursuit of identifying, arresting and prosecuting individuals involved in human smuggling,” said Acting Special Agent in Charge Mark Dawson, HSI San Antonio.
This case was investigated by HSI, U.S. Border Patrol and the Frio County Sheriff’s Office. Assistant United States Attorney Matthew Lathrop is prosecuting this case on behalf of the Government.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendant is presumed innocent until proven guilty in a court of law.
Federal Authorities Dismantle Drug Trafficking Organization Responsible for Transporting Cocaine and Money Between Puerto Rico-Florida-ConnecticutRead the Press Release
SAN JUAN, PR – This morning, the Organized Crime Drug Enforcement Task Force (OCDETF) dismantled a drug trafficking organization responsible for the transportation of multi-kilogram quantities of cocaine and drug money between Puerto Rico and the Continental United States, announced United States Attorney Rosa Emilia Rodríguez-Vélez. The Drug Enforcement Administration (DEA) is in charge of the investigation with the collaboration of Immigration and Customs Enforcement, Homeland Security Investigations (ICE-HSI) and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
On September 30, 2015, a federal grand jury returned a three-count indictment charging 37 individuals with participating in a conspiracy to possess with intent to distribute cocaine and conspiracy to tamper with a witness. The defendants are: Luis Rivera-Ramos, aka “Luigi;” Rubén Barceló-Severino, aka “Chucky;” Jesús M. Vázquez-Rivera; Glarivy Rivera-Huertas; Luis Pintor; Antonio Llano-Mulley, aka “Pupolo;” Valeria Ramos-Ruiz; Ashley Flores-Carter; Kenneth Rivera-Ramos, aka “Gazu;” Kelvin Collazo-Rodríguez, aka “Pirulo;” Eddie Fernández-Ruiz; Carmen Yaritza Povez-James; Xavier Camacho-Valdés; Carmen Odalis Flores-Dávila; Valeria Mojica-De Jesús; José Burgos-Estrada; Joselyn Alicea-Villegas; David Reyes-Santiago; Deyaneira Reyes-Santiago; Kevin Reyes-Santiago; Jonathan Reyes-Santiago; Pedro Ramos-Ruiz; Lynn Ramos; Alba Torres-Suárez; Aníbal Torres-Pérez; Ayleen Santana-Gómez; Blanca Calo-Vázquez; Dariana Santiago-Falcón; Esteban A. Rivera-Guzmán; Gilberto Villegas; Joson F. Abreu; Jessica Martínez-Alfaro; Juan Figueroa-Cabrera; Kacsy Maldonado-Giegel; Liliana Geigel-Rivera; Llinozca Delgado-Ríos; and Nayad Pujols-Noboa.
The investigation leading to today’s arrests uncovered that members of this organization utilized drug mules to smuggle kilograms of cocaine hidden in suitcases on airplanes flying out of the Luis Muñoz Marín International Airport (LMMIA). The kilograms of cocaine were vacuum sealed and pressed into the approximate width of a magazine and were then wrapped in carbon paper. The suitcases were altered to contain a hidden compartment in the bottom, where the kilograms of cocaine were concealed. The suitcases typically contained two kilograms each and the mules would travel with one or two suitcases at a time.
The organization instructed the mules on how to handle law enforcement in the event that they were arrested for smuggling. The organization’s leadership would provide the mules with a story to tell law enforcement to lead them in the wrong direction and away from the organization. The organization also utilized intimidation and threats of violence to prevent the mules from cooperating with law enforcement.
“These arrests are a clear indication of the success of the OCDETF in the fight against drug trafficking. Today’s arrests dismantle an organization that coordinated not only the traffic of cocaine between Puerto Rico and the Continental United States, but also the movement of drug money, essential to the success of these illegal activities,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. “We will continue maximizing all of our combined resources to investigate and prosecute those who disregard our laws and try to smuggle illegal contraband into our jurisdiction.”
The case is being prosecuted by Assistant United States Attorney Aaron Howell.
If found guilty, the defendants are facing terms of imprisonment from 10 years to life. Criminal indictments are only charges and not evidence of guilt. A defendant is presumed to be innocent until and unless proven guilty.
The case was investigated by agents from the Organized Crime Drug Enforcement Task Force (OCDETF) that investigates South American-based drug trafficking organizations responsible for the movement of multi-kilogram quantities of narcotics using the Caribbean as a transshipment point for further distribution to the United States. The initiative is composed of DEA, HSI, FBI, US Coast Guard, US Attorney’s Office for the District of Puerto Rico and PRPD's Joint Forces for Rapid Action.
The Airport Investigations and Tactical Team (AirTAT) operates in the District of Puerto Rico as an OCDETF strategic initiative that is part of the National Airport Initiative. It is a multi-agency, co-located task force that includes DEA, HSI, FBI, USPIS, CBP - Office of Field Operations and ATF. AirTAT also works closely with the Police of Puerto Rico. AirTAT’s mission is to identify, locate, disrupt, dismantle and prosecute TCOs and their operatives using the Luis Muñoz Marín International Airport (LMMIA), the Fernando Luis Rivas Dominicci Airport (FLRDA) and airport peripherals as platforms to smuggle narcotics, weapons, human cargo, counterfeit documents, illicit proceeds and other contraband through these critical airport infrastructures.
El Paso Area Man Sentenced to 20 Years Imprisonment for Sex Trafficking of MinorsRead the Press Release
In El Paso this morning, 42-year-old Adam Deswan Guzman of Socorro, TX, was sentenced to 18 years imprisonment followed by ten years of supervised release for federal sex trafficking violations involving minors announced United States Attorney Richard L. Durbin, Jr., and Federal Bureau of Investigation (FBI) Special Agent in Charge Douglas E. Lindquist, El Paso Division.
On June 26, 2015, Guzman pleaded guilty to two counts of sex trafficking of children. By pleading guilty, Guzman admitted that between November 2013 and December 2013, he coerced two minor females into engaging in sexually explicit activity in the El Paso area for financial gain.
Guzman has remained in federal custody since being arrested by FBI agents on April 2014.
This case was investigated by the Federal Bureau of Investigation (FBI) together with the Texas Department of Public Safety. Assistant United States Attorneys Robert Almonte and Anna Arreola prosecuted this case on behalf of the Government.
Eastern Oregon Ranchers Convicted of Arson Resentenced to Five Years in PrisonRead the Press Release
EUGENE, Ore. – Dwight Lincoln Hammond, Jr., 73, and his son, Steven Dwight Hammond, 46, both residents of Diamond, Oregon in Harney County, were sentenced to five years in prison by Chief U.S. District Judge Ann Aiken for arsons they committed on federal lands.
A jury sitting in Pendleton, Oregon found the Hammonds guilty of the arsons after a two-week trial in June 2012. The trial involved allegations that the Hammonds, owners of Hammond Ranches, Inc., ignited a series of fires on lands managed by the U.S. Bureau of Land Management (BLM), on which the Hammonds had grazing rights leased to them for their cattle operation.
The jury convicted both of the Hammonds of using fire to destroy federal property for a 2001 arson known as the Hardie-Hammond Fire, located in the Steens Mountain Cooperative Management and Protection Area. Witnesses at trial, including a relative of the Hammonds, testified the arson occurred shortly after Steven Hammond and his hunting party illegally slaughtered several deer on BLM property. Jurors were told that Steven Hammond handed out “Strike Anywhere” matches with instructions that they be lit and dropped on the ground because they were going to “light up the whole country on fire.” One witness testified that he barely escaped the eight to ten foot high flames caused by the arson. The fire consumed 139 acres of public land and destroyed all evidence of the game violations. After committing the arson, Steven Hammond called the BLM office in Burns, Oregon and claimed the fire was started on Hammond property to burn off invasive species and had inadvertently burned onto public lands. Dwight and Steven Hammond told one of their relatives to keep his mouth shut and that nobody needed to know about the fire.
The jury also convicted Steven Hammond of using fire to destroy federal property regarding a 2006 arson known as the Krumbo Butte Fire located in the Malheur National Wildlife Refuge and Steen Mountain Cooperative Management and Protection Area. An August lightning storm started numerous fires and a burn ban was in effect while BLM firefighters fought those fires. Despite the ban, without permission or notification to BLM, Steven Hammond started several “back fires” in an attempt save the ranch’s winter feed. The fires burned onto public land and were seen by BLM firefighters camped nearby. The firefighters took steps to ensure their safety and reported the arsons.
By law, arson on federal land carries a five-year mandatory minimum sentence. When the Hammonds were originally sentenced, they argued that the five-year mandatory minimum terms were unconstitutional and the trial court agreed and imposed sentences well below what the law required based upon the jury’s verdicts. The Ninth Circuit Court of Appeals, however, upheld the federal law, reasoning that “given the seriousness of arson, a five-year sentence is not grossly disproportionate to the offense.” The court vacated the original, unlawful sentences and ordered that the Hammonds be resentenced “in compliance with the law.” In March 2015, the Supreme Court rejected the Hammonds’ petitions for certiorari. Today, Chief Judge Aiken imposed five year prison terms on each of the Hammonds, with credit for time they already served.
“We all know the devastating effects that are caused by wildfires. Fires intentionally and illegally set on public lands, even those in a remote area, threaten property and residents and endanger firefighters called to battle the blaze” stated Acting U.S. Attorney Billy Williams.
“Congress sought to ensure that anyone who maliciously damages United States’ property by fire will serve at least 5 years in prison. These sentences are intended to be long enough to deter those like the Hammonds who disregard the law and place fire fighters and others in jeopardy.”
Assistant U.S. Attorneys Frank R Papagni, Jr., AnneMarie Sgarlata and Kelly Zusman handled the prosecution of this case.
District Man Sentenced to 55 Months in Prison for Stabbing Near Downtown LibraryRead the Press Release
WASHINGTON – Darryl Green, 49, of Washington, D.C., was sentenced today to a 55-month prison term for stabbing a man last spring in front of the Martin Luther King Jr. Memorial Library, Acting U.S. Attorney Vincent H. Cohen, Jr. announced.
Green pled guilty in June 2015, in the Superior Court of the District of Columbia, to the felony charge of assault with a dangerous weapon. He was sentenced by the Honorable Milton C. Lee. Following his prison term, Green will be placed on three years of supervised release.
According to the government’s evidence, on May 13, 2015, at about 4:55 p.m., members of the Metropolitan Police Department (MPD) located the victim at 901 G Street NW, suffering from five stab wounds. The victim had been standing by a fire hydrant in front of the Martin Luther King Jr. Memorial Library, when he was attacked from the rear side. The victim felt multiple stab wounds, with the first wound to his back, and subsequent stab wounds to his face, stomach, right hip and leg area. When he turned around, he saw his attacker, and he provided police with a description. The assault was recorded on video-surveillance tape, and the subsequent investigation led to the identification of Green as the suspect.
In announcing the sentence, Acting U.S. Attorney Cohen commended the work of the officers, detectives, and others who worked on the case from the Metropolitan Police Department. He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorney Vivien Cockburn, who investigated and prosecuted the case.
Curry County Man Sentenced to Prison for Federal Methamphetamine Trafficking ConvictionRead the Press Release
ALBUQUERQUE – John Jesse Perez, Jr., 46, of Clovis N.M., was sentenced today in Albuquerque, N.M., to 36 months in prison for his methamphetamine trafficking conviction, and to 24 months for violating his supervised release on an earlier conviction. Because 10 months of the 24 month sentence must be served consecutive to his 36 month sentence with the remaining 14 months to be served concurrently, Perez was sentenced to a total of 46 months in prison. Perez will be on supervised release for five years after completing his prison sentence.
Perez and his three co-defendants, Christopher Jason Kidd, 38, and Tina Tafoya, 33, of Clovis, and Jeanette Driever, 38, of Grady, N.M., were indicted in Feb. 2014, on federal methamphetamine trafficking charges. Count 1 of the three-count indictment charged the four defendants with conspiring to distribute methamphetamine in Curry County, N.M., between Sept. 2013 and Nov. 2013. Count 2 charged Kidd and Tafoya with possession of methamphetamine with intent to distribute on Nov. 6, 2013. Count 3 charged Driever and Perez with possession of methamphetamine with intent to distribute also on Nov. 6, 2013.
Perez and Driever entered guilty pleas to federal drug trafficking charges on Nov. 20, 2014. Each pled guilty to participating in a conspiracy to distribute methamphetamine in Curry County. Perez acknowledged participating in a methamphetamine trafficking conspiracy that involved Driever, Kidd, Tafoya and others. Driever admitted that she and Perez obtained quantities of methamphetamine from Kidd and Tafoya and then distributed the methamphetamine to others.
Tafoya entered a guilty plea on Dec. 17, 2014, and admitted conspiring with Kidd, Driever and Perez to distribute methamphetamine in Curry County in fall of 2013. Kidd entered a guilty plea on Nov. 17, 2014, and admitted that he conspired with his co-defendants to distribute methamphetamine in Curry County. More specifically Kidd admitted that he and Tafoya supplied quantities of methamphetamine to others, including Driever and Perez, who resold the methamphetamine in smaller quantities to users. According to Kidd’s plea agreement, on Nov. 9, 2013, Kidd and Tafoya supplied a pound of methamphetamine to Driever and Perez. On that day, Kidd and Tafoya possessed another half-pound of methamphetamine at their residence. The methamphetamine was seized later that day pursuant to search warrants.
Kidd was sentenced on June 16, 2015, to 78 months in prison followed by five years of supervised release. Tafoya was sentenced on July 23, 2015, to 78 months in prison followed by five years of supervised release. Driever was sentenced on Aug. 26, 2015 to 60 months in prison followed by five years of supervised release.
This case was investigated by the Roswell Agency Office of the FBI’s Albuquerque Division, the Region V Drug Task Force and the New Mexico State Police, with assistance from the Ninth Judicial District Attorney’s Office. The Region V Drug Task Force is comprised of the Clovis Police Department, the Portales Police Department, Curry County Sheriff’s Office and the Roosevelt County Sheriff’s Office. Assistant U.S. Attorney Nicholas Jon Ganjei prosecuted the case.
Cleveland woman charged for heroin distributionRead the Press Release
A federal grand jury today returned an indictment in U.S. District Court charging Stacey R. Carlton, 36, of Cleveland, with possessing with intent to distribute approximately three kilograms of heroin, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The Drug Enforcement Administration conducted the investigation. The case is being prosecuted by Assistant United States Attorney Marisa T. Darden.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial, in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Buffalo Man Pleads Guilty to Stealing MailRead 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 Michael Lamacchia, 48, of Buffalo, NY, who was convicted of theft of mail, was sentenced to one year probation by U.S. District Judge Elizabeth A. Wolford.Assistant U.S. Attorney Elizabeth R. Moellering, who handled the case, stated that the defendant, who worked as a mail carrier for the U.S. Postal Service, took a letter containing New York State Safety Inspection Certificate stickers and used the stickers on vehicles owned by him or members of his family. Lamacchia did so in order to avoid having the vehicles inspected or repaired to pass inspection.
The sentencing is the culmination of an investigation by Special Agents of The United States Postal Service, Office of the Inspector General, under the direction of Monica Weyler, the New York State University Police at the University at Buffalo, under the direction of Chief Gerald Schoenle Jr., and the New York State Department of Motor Vehicles, Division of Field Investigation, under the direction of Executive Deputy Commissioner Theresa Egan.
Buffalo Man Pleads Guilty to Heroin DistributionRead 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 Raul Matos, 49, of Buffalo, NY pleaded guilty before U.S. District Judge Elizabeth A. Wolford to distributing heroin. The charge carries a maximum penalty of 20 years in prison and a $1,000,000 fine.Assistant U.S. Attorney Frank T. Pimentel, who is handling the case, stated that on three occasions in June and July 2014, the defendant sold heroin to an individual in Buffalo.
The plea is the result of an investigation on the part of the Federal Bureau of Investigation, under the direction of Adam S. Cohen, Special Agent in Charge, Buffalo Division.
Sentencing is scheduled for January 13, 2016, at 11:00 a.m. before Judge Wolford.
Brooke County, WV man charged with unlawful possession of firearmsRead the Press Release
WHEELING, WEST VIRGINIA – A federal grand jury has returned an indictment charging Frank Boatrite, 42, of Follansbee, West Virginia, with unlawful possession of firearms, United States Attorney William J. Ihlenfeld, II, announced.
Boatrite was previously convicted of the felony offenses of “Burglary” in the Court of Common Pleas of Clermont County, Ohio, and “Possession of Controlled Substance with Intent to Sell” in the District Court of Clark County, Nevada. As a result of these convictions, he is prohibited form possessing a firearm. He was discovered in April 2015 in possession of a .25 caliber pistol and a .22 caliber revolver.
Boatrite is charged with one count of “Prohibited Person in Possession of a Firearm.” He faces up to 10 years in prison and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen Vogrin is prosecuting the case on behalf of the government. The Hancock, Brooke, Weirton Drug and Violent Crime Task Force, a HIDTA-funded initiative, is investigating.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.Brian Michael Burton Pleads Guilty to Attempted Enticement of A Minor for Illegal Sexual ActivityRead the Press Release
KNOXVILLE, Tenn.- On Oct. 7, 2015, Brian Michael Burton, 40, of Fayetteville, pleaded guilty before the Honorable Thomas A. Varlan, Chief U.S. District Judge, to attempting to entice a minor via the Internet to engage in unlawful sexual activity. Sentencing was set for Feb. 25, 2016, in U.S. District Court.
Burton faces a minimum of 10 years up to life in prison, a $250,000 fine, supervised release of five years up to life following his prison term, and asset forfeiture. He will also be required to register with the state sex offender registry in any state in which he resides, works, or attends school.
The plea agreement, signed by Burton and on file with the U.S. District Court, explains that he corresponded via the Internet with an undercover law enforcement officer about having sex with a 12-year-old male. Burton also corresponded with the undercover officer who posed as the 12-year-old male and discussed the sexual acts in which Burton wanted to engage with the minor. Burton was arrested when he arrived at a hotel where the meeting with the minor male had been arranged to take place.
This investigation was conducted by the Knoxville Police Department Internet Crimes Against Children Task Force and U.S. Homeland Security Investigations. Assistant U.S. Attorney Matthew Morris represented the United States.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Ayad Al-Shaibani Sentenced in Food Stamp CaseRead the Press Release
FORT WAYNE – The United States Attorney for the Northern District of Indiana, David Capp, announces that on October 6, 2015, Ayad Al-Shaibani, 44, of Fort Wayne, Indiana was sentenced to 3 years’ probation with 6 months’ home detention and was ordered to pay $1,714,207.10 following his plea of guilty for food stamp benefits fraud.
U.S. Department of Agriculture, Office of Inspector General, Special Agent-in-Charge Anthony V. Mohatt said: The Supplemental Nutrition Assistance Program (SNAP) was created to provide food and nutrition to those who truly need this assistance. Those who are involved in fraud and abuse of SNAP and other USDA programs will be aggressively pursued by our office. Our joint effort in this investigation helps brings to justice individuals who sought to profit from the SNAP program through illegal schemes. The USDA Office of Inspector General will continue to dedicate resources and work with our local law enforcement partners in order to protect the integrity of this and other USDA programs and to pursue prosecution of those who commit fraud.
According to documents filed in the case, on or about February 6, 2013, Al-Shaibani did knowingly acquire and possess United States Department of Agriculture food stamp benefits from an Electronic Benefit Transfer (EBT) Card for a transaction in excess of $100 in a manner not authorized by the Food Stamp Program. By swiping and accepting an EBT card for $128.00 from a customer for the purchase of some eligible food items (4 Energy Drink cans), Al-Shaibani violated 7 U.S.C. 2024(b)(1) .
In his plea agreement he agreed to repay restitution to the United States Department of Agriculture, Food and Nutrition Service and to forfeiture of a personal money judgment in the amount of $1,714.207.10. This sum represented the count of conviction and all relevant conduct between 2008 and 2013 for food stamp trafficking at his store, the Calhoun Market, S. Calhoun Street, Fort Wayne Indiana. Calhoun Market had been authorized in 2007 to accept Supplemental Nutrition Assistance Program (SNAP) benefits for eligible food items. The SNAP benefits were provided to eligible recipients by virtue of an electronic benefit transfer (EBT) device in Indiana called the Hoosier Works card.
This investigation was conducted by the United States Department of Agriculture, Office of Inspector General, Investigations and was assisted by the Federal Bureau of Investigation. This case was prosecuted by Assistant United States Attorney Tina Nommay.
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Assistant United States Attorney Donald R. Wolthuis Inducted into America College of Trial LawyersRead the Press Release
ROANOKE, VIRGINIA – United States Attorney Anthony P. Giorno announced today that Assistant United States Attorney Donald R. Wolthuis has been inducted as a Fellow of the American College of Trial Lawyers, one of the premier legal associations in North America.
The induction ceremony at which AUSA Wolthuis became a Fellow took place during the recent Annual Meeting of the College in Chicago, Illinois.
Founded in 1950, the College is composed of the best of the trial bar from the United States and Canada. Fellowship in the College is extended by invitation only and only after careful investigation, to those experienced trial lawyers who have mastered the art of advocacy and whose professional careers have been marked by the highest standards of ethical conduct, professionalism, civility and collegiality. Lawyers must have a minimum of fifteen years trial experience before they can be considered for Fellowship.
Donald R. Wolthuis has been an Assistant United States Attorney for the Western District of Virginia in Roanoke since 1990, where he currently serves as the Senior Litigation Counsel and the lead attorney for the Organized Crime and Drug Enforcement Task Force. Prior to joining the USAO, Mr. Wolthuis was an associate and later a partner at the law firm of Martin, Hopkins, Lemon & Carter, P.C. from 1984-1990. From 1980-1984, Mr. Wolthuis served as an Assistant Commonwealth Attorney for the City of Roanoke. He earned a B.A. in Political Science from Mary Washington College where he graduated Phi Beta Kappa. He later earned a J.D. from the College of William and Mary, Marshall-Wythe School of Law.
Membership in the College cannot exceed one percent of the total lawyer population of any state or province. There are currently approximately 5,800 members in the United States and Canada, including active Fellows, Emeritus Fellows, Judicial Fellows (whose who have ascended to the bench) and Honorary Fellows. The College strives to improve and elevate the standards of trial practice, the administration of justice and the ethics of the trial profession. Qualified lawyers are called to Fellowship in the College from all branches of practice. They are carefully selected from among those who customarily represent plaintiffs in civil cases and those who customarily represent defendants, those who prosecute individuals accused of crime and those who defend them. The College is thus able to speak with a balanced voice on important issues affecting the legal profession and the administration of justice.
Aspiring Rap Artist Charged with Producing Child Pornography in Music VideosRead the Press Release
COLUMBUS, Ohio – A federal grand jury has charged Eric D. Chavis, 23, of Columbus, with conspiracy to produce and production of child pornography in an indictment returned in Columbus.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Ohio Attorney General Mike DeWine and members of the Central Ohio Human Trafficking Task Force, including Marlon V. Miller, Special Agent in Charge, U.S. Homeland Security Investigations, announced the indictment that was unsealed yesterday.
The indictment alleges that Chavis recruited minor victims to engage in sexually explicit conduct in his rap music videos. Chavis then posted those videos via the Internet on websites including Facebook.com, Pornhub.com, Youtube.com and Instagram.com.
Chavis is charged with one count of conspiracy to produce child pornography, and three counts of production of child pornography, each punishable by up to 30 years in prison.
Co-defendants Lamont D. Abbington, 29, of Kissimmee, Fla., Carlton S. Jackson, 30, of Toledo, and Mareekus E. Davis, 22, of Columbus, are each also charged with one count of conspiracy to produce child pornography, for their roles in recruiting, directing or engaging in sexually explicit conduct with the minor victims in the rap videos.
U.S. Attorney Stewart commended the cooperative investigation by the Central Ohio Human Trafficking Task Force, which was formed in 2012 and is part of the Ohio Attorney General’s Ohio Organized Crime Investigations Commission, and which also includes authorities from the Attorney General's Bureau of Criminal Investigation (BCI), U.S. Homeland Security Investigations, Columbus Division of Police, Ohio State Highway Patrol, Powell Police Department, Federal Bureau of Investigation and the Delaware County Prosecutor's Office. Assistant U.S. Attorney Heather Hill and Special Assistant U.S. Attorney Brant Cook, director of the Ohio Attorney General’s Crimes Against Children Initiative, are representing the government in this case.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
Arizona Women’s Education and Employment Receives $1,000,000 in Federal Grant Money to Promote Community Based Reentry EffortsRead the Press Release
PHOENIX – Today, U.S. Attorney John S. Leonardo announced that $1,000,000 in grant funds have been awarded to Arizona Women’s Education and Employment to promote effective and successful reentry into the community by those who are being released from custody. These efforts include support with housing, employment, substance abuse counseling, and mental health assistance to high risk female offenders to assist them in becoming contributing members of the community and avoiding reincarceration. The grant funds were awarded by the Bureau of Justice Assistance (“BJA”), which is a component of the Department of Justice’s Office of Justice Programs (“OJP”).
Additional information about BJA and its programs is available at: https://www.bja.gov/Default.aspx
Information about OJP and its programs can be found at: http://www.ojp.usdoj.gov.
RELEASE NUMBER: 2015-098_AZ_ED_EMPLY_ GRANT (2015-CY-BX-0018)
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Anniversary of the Americans with Disabilities Act Highlights School Districts’ Obligation to Effectively Communicate with Those with Hearing, Vision, and Speech ImpairmentsRead the Press Release
HARRISBURG - In its ongoing effort to mark the 25th Anniversary of the Americans' with Disabilities Act (ADA), the United States Attorney’s Office for the Middle District of Pennsylvania is calling attention to the obligation of public schools to effectively communicate with individuals with hearing, vision, and speech impairments. We have sent a brochure to public schools in the Middle District reminding them of their responsibility to provide auxiliary aids and services to those that need them and to provide notification to the public on how to request those aids and services.
Under the ADA, public school districts must ensure that communication with students with hearing, vision, or speech disabilities is as effective as communication with individuals without disabilities. The obligations are not limited just to students - schools are obligated to provide effective communication to parents, relatives, guardians, and other members of the public who seek to participate in or benefit from a school district’s services, programs, or activities. This is especially true in regard to student registration, parent-teacher conferences, meetings, ceremonies, performances, open houses, and field trips.
Schools must not charge for these auxiliary aids and services and must evaluate which aids or services will provide the effective communication on an individual basis (providing primary consideration to the request of the individual with the impairment). Schools should also proactively notify parents, students, and the community about the right to effective communication, provide training to staff on the federal and state laws, and place information on the district’s public accessible website on how to request auxiliary aids and services.
The brochure describes the ADA requirements, as well as requirements of section 504 of the Rehabilitation Act, and the Individuals with Disabilities Education Act. The brochure also list helpful tips for schools and provides examples of auxiliary aids and services.
Additional information about the ADA is available at www.ada.gov, or through contacting the ADA information line at (800) 514-0301 (voice) or (800) 514-0383 (TTY).
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Amherst Man Pleads Guilty to Possession of Child PornographyRead 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 Timothy Murphy, 49, of Amherst, NY, pleaded guilty to possession of child pornography before U.S. District Judge Elizabeth A. Wolford. The charge carries a maximum penalty of 20 years in prison and a $250,000 fine.Assistant U.S. Attorney Scott S. Allen, Jr., who is handling the case, stated that on October 15, 2014, law enforcement officers executed a search warrant at the Kings Highway residence of the defendant who worked as a technician for the Kenmore Tonawanda School District at the time. The officers recovered a computer being used by Murphy. A subsequent forensic examination determined that the computer contained approximately 123 images and one video of child pornography. Some of the images depicted children under the age of 12 years old. Some of the images also contain depictions of violence.
Murphy has been in custody since his arrest on April 28, 2015. Sentencing is scheduled for January 13, 2016 before Judge Wolford.
The plea is the culmination of an investigation by Immigration and Customs Enforcement, Homeland Security investigations, under the direction of Special Agent in Charge James C. Spero.
Albuquerque Man Sentenced to Federal Prison for Trafficking Methamphetamine in Lea CountyRead the Press Release
ALBUQUERQUE – Michael Asa Boyd, 40, of Albuquerque, N.M., was sentenced today in federal court in Las Cruces, N.M., to 60 months in prison followed by four years of supervised release for trafficking methamphetamine in Lea County, N.M.
Boyd was arrested in Hobbs, N.M., on Feb. 20, 2015, after law enforcement officers seized 174 grams of methamphetamine, 110 grams of marijuana, 70 grams of heroin, drug paraphernalia and a handgun from the vehicle Boyd was driving.
On April 27, 2015, Boyd pled guilty to a felony information charging him with possession of methamphetamine with intent to distribute. In entering his guilty plea, Boyd admitted that on Feb. 20, 2015, officers found 174 grams of methamphetamine, 70 grams of heroin and a firearm in the rental car he was driving. Boyd also admitted that he intended to distribute the methamphetamine and heroin in Hobbs.
This case was investigated by the Las Cruces office of the DEA, the Lea County Drug Task Force and was prosecuted by Assistant U.S. Attorney Terri J. Abernathy of the U.S. Attorney’s Las Cruces Branch Office.
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 trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative.
The Lea County Drug Task Force is comprised of officers from the Lea County Sheriff’s Office, Hobbs Police Department, Lovington Police Department, Eunice Police Department the Tatum Police Department and the Jal Police Department, and is part of the NM HIDTA Region VI Drug Task Force. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Tuesday 6 October 2015
ew Hampshire Man Sentenced to 10 Years for Three November 2014 RobberiesRead the Press Release
Concord, New Hampshire—JAMES WHINNEM, 35, formerly of Manchester and Somersworth, was sentenced today by United States District Judge Landya B. McCafferty for committing three robberies in November 2014, Acting United States Attorney Donald Feith announced. The Court imposed a term of 10 years’ imprisonment, to be followed by a 3 year term of supervised release, and ordered WHINNEM to pay restitution in the amount of $11,419.
In June 2015, WHINNEM pleaded guilty to a three count information charging him with one count of robbery affecting interstate commerce in violation of Title 18, United States Code, Section 1951, and two counts of bank robbery in violation of Title 18, United States Code, Section 2113(a).
According to court documents and statements made in court, WHINNEM robbed a gas station convenience store at knife point in Manchester, New Hampshire on November 16, 2014. Two days later, while apparently unarmed, WHINNEM then robbed a bank in Manchester by passing a demand note to the teller. Two days after that, he robbed another bank, this time in Dover, also while unarmed and by passing a demand note to the teller. Following the wide-spread publication of bank video surveillance footage on local New Hampshire news, authorities identified WHINNEM from multiple sources. New Hampshire State Police located and arrested WHINNEM on November 30, 2014 in the area of Claremont, NH. He has remained in custody on a New Hampshire state parole violation since that date.
This matter was investigated by the Federal Bureau of Investigation, the Manchester Police Department, and the Dover Police Department. The case was prosecuted by Assistant U.S. Attorney Charles L. Rombeau.