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20 November 2015
U.S. Attorney Zachary T. Fardon Hosts Third Community Roundtable to Discuss Strengthening Trust between the Public and Law EnforcementRead the Press Release
CHICAGO — Civic, religious and community leaders joined top law enforcement personnel today to continue an ongoing dialogue about building trust between law enforcement and the Chicagoland community.
The Community Roundtable was convened by Zachary T. Fardon, United States Attorney for the Northern District of Illinois. It was held in the Columbus Park Refectory in the Austin neighborhood on the city’s West Side. Today’s event was the third such discussion, following up on productive sessions in December 2014 and March 2015.
“Today’s roundtable brought together passionate leaders, adult and youth, from different backgrounds who all share the common goal of improving community trust and making Chicago an even greater and safer place for all neighborhoods,” Mr. Fardon said. “We had a forthright and stimulating conversation about policing and community trust issues.”
The U.S. Department of Justice has made the issue of community policing a top priority. The Community Roundtables focus on developing tangible initiatives for improving the relationship between law enforcement and the community.
Among the more than 50 participants in today’s meeting were Cook County State’s Attorney Anita Alvarez, Chicago Police Superintendent Garry McCarthy, and representatives from the U.S. Drug Enforcement Administration, the Federal Bureau of Investigation, the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives, the Cook County Juvenile Temporary Detention Center, the U.S. Marshal’s Service, Chicago Public Schools, KLEO Community Family Life Center, Chicago Board of Rabbis, Bowen High School, Purpose Over Pain, Apostolic Church of God, Chicago Community Trust, University of Chicago Crime Lab, YMCA, Mikva Challenge, Chicago Urban League, Bright Star Church, Chicago Violence Reduction Strategy, Westside Health Authority, Fierce Women of Faith, Bethel New Life Church, and Becoming A Man.
Two Men Sentenced to Prison Terms for Violent Home Invasion in Northeast WashingtonRead the Press Release
WASHINGTON – Rashad Hough, 25, was sentenced today to 17 years and 11 months in prison and Larnell Wilkerson, 21, was sentenced to a 14 ½-year prison term for committing a violent home invasion earlier this year in Northeast Washington in which one victim was shot, U.S. Attorney Channing D. Phillips announced.
Hough and Wilkerson, both of Washington, D.C., each pled guilty in September 2015, in the Superior Court of the District of Columbia, to armed robbery, first-degree burglary while armed, armed kidnapping, and unlawful possession of a firearm. Hough also pled guilty to aggravated assault while armed. The Honorable Patricia A. Broderick sentenced both defendants today. After their prison terms, each man will be placed on five years of supervised release.
According to the government’s evidence, on March 6, 2015, at about 10:40 p.m., Hough and Wilkerson robbed two men at gunpoint outside of an apartment building in the 1300 block of Holbrook Street NE. They then forced the two victims inside an apartment, intending to steal additional property. Two grandparents and their 12- and 14-year-old grandchildren were inside the apartment. Hough and Wilkerson demanded property from the six victims while holding them at gunpoint. Despite pleas not to hurt anyone, Hough shot one victim in the leg, causing him extreme pain and permanent disfigurement.
In announcing the sentences, U.S. Attorney Phillips praised the work of those who investigated the case from the Fifth District of the Metropolitan Police Department (MPD). He also expressed appreciation to Assistant U.S. Attorneys Kondi Kleinman, who investigated and indicted the case, and Adrienne Gurley, who also investigated the matter.
Two Men Sentenced to 8 and 10 Years in Prison for Large-Scale Drug Trafficking ConspiracyRead the Press Release
Anchorage, Alaska-U.S. Attorney Karen L. Loeffler announced today that two men have been sentenced by United States District Court Judge Sharon L. Gleason to serve 96 and 120 months in prison respectively for their roles in a conspiracy to sell large quantities of cocaine and methamphetamine to Alaska-based drug dealers.
Jorge Armando Zaragoza-Soto, a citizen of Mexico, and Geronimo Arellano Velarde, a/k/a “Negro,” of California, both previously pled guilty to conspiring with others to distribute methamphetamine. Zaragoza-Soto also pled guilty to conspiring to distribute cocaine. Together, the two men were personally responsible for the distribution or attempted distribution of nine pounds of methamphetamine and five kilograms of cocaine to Alaska based co-conspirators. Zaragoza-Soto separately admitted storing an additional ten pounds of methamphetamine on behalf of other California and Mexico-based drug dealers. Upon being released from prison, both men will be on supervised release for five years.
According to Assistant U.S. Attorney Stephanie C. Courter, who prosecuted the case, the conspiracy began in February 2013 and continued until both men were indicted in October 2014. During the course of the conspiracy, both Zaragoza-Soto and Velarde engaged in multiple drug transactions.
For example, in October 2013, after receiving cash from an Alaska-based co-conspirator, Zaragoza-Soto mailed five pounds of methamphetamine and five kilograms of cocaine from an address in Colton, California to an address in Anchorage. The drugs were later seized by law enforcement, which found Zaragoza-Soto’s fingerprints on the inside of the materials used to package and ship the drugs. Later, in July 2014, Velarde personally delivered an additional four pounds of methamphetamine to an undercover agent posing as an Alaska drug distributor. In exchange for the drugs, Velarde accepted $20,000 in cash from the agent.
During the sentencing hearings, Judge Gleason raised concerns about the large quantity of methamphetamine and cocaine involved in the conspiracy, noting that crimes like this are ruining the lives of hundreds of families here in Alaska and wreaking havoc throughout our state. Judge Gleason also emphasized the importance of handing down sentences that addressed the seriousness of the defendants’ offense, promoted respect for the law, and protected the community from future crimes committed by the men.
The two sentencing hearings are related to a string of indictments returned in late 2014 and early 2015 as part of ongoing efforts to dismantle and prosecute several large scale drug trafficking rings with ties to Alaska, California, Texas, Arizona, and Mexico. To date, the following individuals have been sentenced as part of these efforts:
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Timothy Alex, an Anchorage drug distributor, previously sentenced to 108 months in prison;
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Daniel Harris, an Anchorage drug distributor, previously sentenced to 135 months in prison;
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Jose Ramon Canales, of Texas, previously sentenced to 70 months in prison for laundering drug money out of the United States and into Mexico; and
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Genaro Gutierrez-Reyes, of California, previously sentenced to 18 months in prison for laundering drug money out of the United States and into Mexico
Several other defendants are set to be sentenced in the coming months for their roles in trafficking heroin, cocaine, and methamphetamine to Alaska and then transporting the cash proceeds of their trafficking activities back to Mexico.
This and the related cases were investigated as part of the Organized Crime Drug Enforcement Task Force (OCDETF). In announcing the sentence, U.S. Attorney Loeffler praised the work of the law enforcement agencies involved, including the Drug Enforcement Administration (DEA), the Internal Revenue Service Criminal Investigation (IRS-CI), the Federal Bureau of Investigation (FBI), the U.S. Postal Inspection Service (USPIS), U.S. Immigration and Customs Enforcement (ICE), which oversees Homeland Security Investigations (HSI), the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Anchorage Police Department (APD), the Alaska State Troopers (AST), and the Anchorage Airport Police Department. Additional assistance was provided by the U.S. Attorney’s Offices for the Western District of Texas, the Eastern and Central Districts of California, and the District of Arizona, as well as federal agents in all three states.
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Troy Man Sentenced for Distributing Crack CocaineRead the Press Release
ALBANY, NEW YORK – Anthony Redd, age 32, of Troy, New York, was sentenced today to serve 24 months of imprisonment for distributing crack cocaine, announced United States Attorney Richard S. Hartunian and Special Agent in Charge James J. Hunt, New York Division, Drug Enforcement Administration.
United States District Judge Mae A. D’Agostino also sentenced Redd to serve three years of supervised release after his release from prison.
As part of his February 2015 guilty plea, Redd admitted that on March 10, 2014, in Troy, he agreed to sell 30 grams of crack cocaine to another. Redd further admitted that he actually sold 26.1 grams of crack cocaine to that person, in exchange for $1,800.
This case was investigated by the Drug Enforcement Administration and prosecuted by Assistant U.S. Attorney Wayne A. Myers.
Three Perry County Residents Sentenced on Methamphetamine OffensesRead the Press Release
On November 17, 2015, Skyler Elder, 25, Joseph D. Smith, 42, and Jamie L. Smith, 34, all of Pinckneyville, were sentenced in United States District Court, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Elder, who had previously pled guilty to one count of conspiracy to manufacture methamphetamine, was sentenced to 100 months in federal prison, 3 years’ supervised release, and fined $725.00. Joseph and Jamie Smith had previously pled guilty to one count of conspiracy to manufacture methamphetamine and one count of possessing pseudoephedrine knowing that it would be used to manufacture methamphetamine. Joseph Smith was sentenced to 60 months in prison, 3 years’ supervised release, and fined $825.00. Jamie Smith was sentenced to 54 months in prison, 3 years’ supervised release, and fined $800.00.
The offenses occurred between 2012 and December 2014, in Perry, Jackson, Randolph, and Franklin Counties. Evidence at the plea and sentencing hearings established that Elder, Joseph Smith, and Jamie Smith were involved with others in the manufacture of methamphetamine. Elder was a methamphetamine cook. The Smiths and others provided Elder with pseudoephedrine for the production of methamphetamine. Joseph Smith also allowed co-defendant Herman Sims, Jr., to manufacture methamphetamine at the Smiths’ Pinckneyville residence. At the sentencing hearing, the district judge found that Elder was responsible for the possession of 206.56 grams of pseudoephedrine and that the Smiths were responsible for the possession of 157.6 grams of pseudoephedrine. Co-defendants Sims and Jamie Trzinski have previously been sentenced to 84 months and 57 months, respectively, for their roles in the methamphetamine conspiracy.
The ongoing investigation is being conducted by the Perry County Sheriff’s Office, Jackson County Sheriff’s Office, Perry County Drug Task Force, Murphysboro Police Department, Randolph County Sheriff’s Office, and DuQuoin Police Department. The Pinckneyville Police Department and Illinois State Police Methamphetamine Response Team assisted in the investigation.
The case was assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
Three Louisville Men Charged with Possession of A Large Heroin QuantityRead the Press Release
Drugs were packaged for distribution, more than $100,000 seized
LOUISVILLE, Ky. – Three Louisville men were charged this week by grand jury indictment with aiding and abetting and conspiring to possess with the intent to distribute heroin and methamphetamine announced United States Attorney John E. Kuhn, Jr.
Oscar Portillo, age 39, Pedro Abarca, age 23, and Jose Luis Madrigal II, age 24, residing on Bishop Lane, in Louisville, are in the custody of the United States Marshal Service.
They were arrested and charge separately by criminal complaint on October 30, 2015. According to the complaint, on October 30, 2015, in Jefferson County, Kentucky, the defendants knowingly and intentionally possessed with intent to distribute heroin, a Schedule I controlled substance.
Further, on October 30, 2015, federal officers and others executed a state search warrant at 3921 Bishop Lane in Louisville. During the execution of the warrant, officers seized a large quantity of heroin, packaged for distribution, as well as more than $100,000 in United States currency, an assault rifle, and a loaded handgun. The three defendants lived at the residence, giving them direct access to and control over the contraband.
If convicted at trial, the defendants face a mandatory minimum sentence of ten years in prison for each charge, a possible fine of up to $10,000,000 and ordered to serve a ten year period of supervised release.
This case is being prosecuted by Assistant United States Attorney Larry Fentress and is being investigated by the Federal Bureau of Investigation (FBI) and Louisville Metro Police.
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The charge of a person by Grand Jury is an accusation only and that person is presumed innocent until and unless proven guilty.
Three Indicted in Medical Equipment Kickback SchemeRead the Press Release
Pamela Gardner 53, and Torvis Gardner, 44, both of Springfield, Tennessee, and Dr. Donald Boatright, 70, of Nashville, Tenn., were indicted on November 18, 2015, by a federal grand jury on federal health care fraud charges, announced David Rivera, United States Attorney for the Middle District of Tennessee. The indictment charges the defendants with soliciting and receiving kickbacks, and conspiring to solicit and receive kickbacks, in exchange for making referrals for the purchase of medical equipment.
“Medical professionals and those engaged in the healthcare industries who receive payments from Medicare and TennCare, will continue to be held accountable when they attempt to enrich themselves by committing dishonest and illegal acts which tend to corrupt our healthcare system and place honest providers at a disadvantage,” said U.S. Attorney David Rivera.
According to the indictment, Pamela Gardner was part owner of Medical Necessities, a medical practice located in Springfield, Tennessee. Dr. Donald Boatright was a physician who practiced at Medical Necessities, and Torvis Gardner was an employee of Medical Necessities. The indictment alleges that the three defendants conspired to solicit and accept cash kickbacks in return for referring patients, who were Medicare or TennCare beneficiaries, to a particular medical equipment supplier. The indictment also charged each defendant with multiple counts of receiving cash kickbacks in exchange for medical equipment referrals.
The indictment alleges that the defendants solicited or accepted kickbacks in the following amounts: Pamela Gardner: $17,200; Torvis Gardner: $21,200; and Dr. Donald Boatright: $17,725.
“Health care fraud schemes are complex investigations and require dedicated focus on the details, especially when the facts lead to multiple wrong doers,” said A. Todd McCall, Special Agent in Charge of the Memphis Division of the Federal Bureau of Investigation. “These indictments represent the concentrated efforts of the FBI and our partners in TBI, HHS-OIG and the US Attorney’s Office, to target those who seek to defraud the government and to fight to protect taxpayer dollars designated to go to those truly in need.”
"When medical professionals sell their integrity, their actions demean the health care industry and expose the serious impact kickbacks can have on the Medicare system," said Derrick L. Jackson, Special Agent in Charge with the U.S. Department of Health and Human Services, Office of Inspector General in Atlanta.
“Health care fraud and abuse not only cost consumers and taxpayers, it also impacts the quality of health care,” said TBI Director Mark Gwyn. “We are fortunate to have a strong relationship with our federal law enforcement partners in continuing to this type of crime in Tennessee.”
Each defendant faces up to 5 years in prison on the conspiracy charge and up to 5 years in prison for each count of receiving a kickback.
An indictment is merely an accusation and is not evidence of guilt. All defendants are presumed innocent unless and until proven guilty in a court of law.
This case was investigated by the Federal Bureau of Investigation; the Tennessee Bureau of Investigation; and the U.S. Department of Health and Human Services Office of Inspector General. The case is being prosecuted by Assistant U.S. Attorneys William F. Abely and Thomas J. Jaworski.
Ten Individuals Sentenced in Stolen Identity Tax Refund SchemeRead the Press Release
GREENVILLE, Tenn. – Ten individuals indicted in February 2015 for conspiracy to commit wire fraud, theft of public money and money laundering conspiracy, have all been convicted and sentenced.
Eugene Carl Kotelman, 39, of Burtchville, Mich. was sentenced on Oct. 22, 2015, to serve 55 months in federal prison to run consecutively with any state sentence. Upon his release from prison, he will serve a term of three years supervised release.
Jamie Marie Lowery, 38, of Port Huron, Mich., was sentenced on Oct 10, 2015, to serve 27 months in federal prison to run consecutively with any state sentence. Upon her release from prison, she will serve a term of three years supervised release.
Brian Keith Elliott, 49, of Greeneville, Tenn., was sentenced on Oct. 8, 2015, to serve 27 months in federal prison consecutively to any state sentence. Upon his release from prison, he will serve a term of three years supervised release.
Bernard Erwin Goewey, 47, of Afton, Tenn., was sentenced on Aug 11, 2015, to serve three years of probation.
Michelle Goewey, 44, of Afton, Tenn., was sentenced on Aug. 11, 2015, to serve a total of six months in prison, followed by a term of six month home detention. Upon her release from prison, she will serve three years of supervised release.
Timothy Ray Groh, 46, of Port Huron, Mich., was sentenced on Oct. 6, 2015, to serve to serve 27 months in federal prison. Upon his release from prison, he will serve a term of three years supervised release.
Jake Marshall McKelvey, 53, of Atlanta, Mich., was sentenced on Oct. 8. 2015, to serve 27 months in prison to run consecutive with any sentence received in state court. Upon his release from prison, he will serve three years supervised release.
Gerald Kenneth Orshal, III, 56, of Crystal River, Fla., was sentenced on Nov. 19, 2015, to serve 12 months in prison. Upon his release from prison, he will serve three years on supervised release.
Amy Rose Peters Thompson, 33, Port Huron, Mich., was sentenced on Nov. 19, 2015, to serve 15 months in federal prison. Upon her release from prison, she will serve three years of supervised release.
Terri Lynn Worley, 52, of Port Huron, Mich., was sentenced on Oct. 6, 2015, to serve 24 months in prison and three years of supervised release upon her release from prison.
Each defendant was ordered to pay restitution to the United States in the amount of $1,249,934.00, which they owe jointly and severally. Each defendant was ordered to pay a special assessment of $100.
Between January 2008 and December 2012, these individuals conspired to obtain money from the Internal Revenue Service (IRS) by submitting fraudulent federal income tax returns that claimed false federal income tax refunds. As part of the scheme, they submitted, or caused to be submitted, a total of 150 federal income tax returns claiming false tax refunds of $1.2 million. The false returns were filed using stolen Personal Identification Information (PII) of others which was used without the individual’s authorization.
U.S. Attorney Bill Killian said, “The U.S. Attorney’s Office will continue to prosecute these types of offenders. Collectively, these 10 individuals will serve 220 months in federal prison. This sends a message to others who may consider committing identity theft and tax fraud against innocent taxpayers that they are facing serious penalties for their actions.”
“Individuals who commit identity theft and refund fraud of this magnitude deserve to be punished to the fullest extent of the law,” said Tamera Cantu, Acting Special Agent in Charge. “These individuals demonstrated a blatant disregard for the integrity of the United States tax system and caused immeasurable hardship to innocent victims. IRS Criminal Investigation remains committed to the pursuit of identity theft, and together with our partners at the U.S. Attorney’s Office, we will hold those who engage in similar conduct accountable.”
The case was investigated by Special Agents with the IRS–Criminal Investigation. Assistant U.S. Attorney Helen Smith represents the United States.
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Tampa Woman Sentenced to 12 Years in Federal Prison for Stolen Identity Refund FraudRead the Press Release
Tampa, FL – U.S. District Judge Elizabeth A. Kovachevich today sentenced Rita Girven (33, Tampa) to 12 years in federal prison for conspiracy to commit wire fraud and aggravated identity theft. She pleaded guilty on March 16, 2015.
According to court documents, from an unknown date, through at least May 2013, Girven participated in a scheme to defraud the IRS. As part of the scheme, Girven, together with others, obtained the personally identifiable information of others without their knowledge from a variety of sources, including online ancestry websites and from individuals who had access to law enforcement databases. The information was then used to file fraudulent federal income tax returns. The fraudulent tax refunds were then wired onto reloadable debit cards obtained by Girven, or to bank accounts she had opened, often in the names of others. Girven participated in the filing of false tax returns in the names of more than 500 victims, claiming more than $3.6 million in refunds that she shared with her co-conspirators.
This case was investigated by the Internal Revenue Service - Criminal Investigation, the Tampa Police Department, and the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorneys Mandy Riedel and Megan Kistler.
South Carolina Doctor Sentenced to 10 Years for Internet Enticement of A MinorRead the Press Release
Orlando, Florida – U.S. District Judge Paul G. Byron today sentenced John Francis Williams (69, Blytheville, SC) to 10 years in federal prison for using the Internet to attempt to persuade a minor to engage in sexual activity. Williams was found guilty on August 31, 2015, after a four day jury trial.
According to evidence presented at trial, in October 2012, while visiting his vacation home in Port Orange, Florida, Williams responded to a Craigslist ad. The ad had been placed by an undercover officer posing as the mother of a 14-year-old girl who was looking for a man to teach her child about sex. After a series of emails and phone calls with the “mother,” Williams drove to a house where he intended to have sex with the teen. He brought an overnight bag containing condoms, lubricants, and vibrators. At the time, Williams was a practicing cardiac anesthesiologist.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Volusia County Sheriff’s Office, the Brevard County Sheriff’s Office, and the Internet Crimes Against Children Task Force. It was prosecuted by Assistant United States Attorney Bruce S. Ambrose.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Sex Offender Living on Ft. Campbell Military Base SentencedTo 25 Years in Prison for the Production of Child PornographyRead the Press Release
PADUCAH, Ky. – Kevin Alan Lewis, a civilian formerly residing on Ft. Campbell, Kentucky military base, was sentenced to 25 years in prison, followed by a life sentence of supervised release by Senior Judge Thomas B. Russell, in U.S. District Court on November 19, 2015, for the offense of production of the sexually-explicit image of a minor, announced United States Attorney John E. Kuhn, Jr.
“Protecting the young and most vulnerable of our community is a priority of the Department of Justice and my office,” stated U.S. Attorney Kuhn. “The 25 year sentence is a just outcome as there is no parole in the federal system.”
According to the plea agreement filed July 21, 2015, Lewis admitted that on or about March 10, 2014, he persuaded and used an 11-year old male to photograph his (the minor’s) genitals, and then transmit that image to Lewis through the Internet, a facility of interstate commerce, with an electronic device. In addition, the photographic image was produced using materials that had been mailed, shipped, or transported in interstate or foreign commerce. The persuasion and use of the minor to produce the explicit image occurred on the Fort Campbell, Kentucky military base. According to three of five charges in a Superseding Indictment which were dismissed, Lewis was a registered sex offender in Christian County, Kentucky based on a 2003 conviction for Child Molestation in Georgia.
This case was prosecuted by Assistant United States Attorneys David Sparks and Marisa Ford, and was investigated by the Federal Bureau of Investigation with the assistance of the United States Army Campbell Criminal Investigation Detachment (CID) at Fort Campbell.
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This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Scranton Woman Sentenced to Two Years Probation, Ordered to Forfeit $431,500 in Currency Transaction CaseRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced that Ann Pelicci, former employee at the Pelicci Pain Center in Scranton, was sentenced to two years probation on November 18, 2015, by Senior United States District Judge Edwin M. Kosik in Scranton, for her involvement in evasion of federal currency transaction reporting requirements by structuring cash transactions at several Northeast Pennsylvania banks between 2011 and 2013.
Ann Pelicci was also ordered to pay a fine of $6,000 and to serve six months of her sentence at her residence on a monitored curfew schedule as directed by the U.S. Probation Office.
According to United States Attorney Peter Smith, the defendant was the wife of Leroy J. Pelicci, a physician and owner/operator of the “Pelicci Pain Relief Center.” An indictment filed in March 2014 alleged that the Peliccis withdrew approximately $431,500 in cash from an investment account and then deposited the cash into account at four Scranton area banks, Fidelity Bank, Citizens Bank, Penn Security Bank and FNCB, in 49 separate transactions, totaling $431,500, most of which were in $9,000 amounts, just below the amount that would trigger the reporting requirement, between January and July 2012. The accounts were opened in the name of Ann Pelicci.
In the indictment, the government sought forfeiture of $431,500, the amount seized from the Pelicci bank accounts at the time of the indictment. On July 6, 2015, Judge Kosik issued an order directing that the funds were to be forfeited to the government.
The transfer of funds took place after the patient and billing records of the Pelicci Pain Relief Center became the subject of an inquiry by agencies of the Commonwealth of Pennsylvania. Most of the transactions were made by Dr. Pelicci who died shortly after the indictment was filed. Ann Pelicci made several of the transactions and pleaded guilty to aiding and abetting the criminal activity.
“Structuring” is the conducting of transactions in currency at one or more financial institutions for the purpose of evading federal reporting requirements. Banking institutions are required to file currency transaction reports (CTRs) with the Internal Revenue Service for each deposit, withdrawal or exchange of currency or other payment that involves currency of more than $10,000. The law also prohibits evading or attempting to evade the reporting requirements or attempting to cause banks to fail to file CTRs.
The investigation was conducted by the Scranton office of the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Michelle Olshefski with the assistance of the United States Attorney’s Office’s Victim Rights and Asset Recovery Unit.
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San Angelo Man Sentenced to 235 Months in Federal Prison on Child Pornography ConvictionRead the Press Release
LUBBOCK, Texas — Justin Benedict Morales, 41, of San Angelo, Texas, was sentenced this morning by U.S. District Judge Sam R. Cummings to 235 months in federal prison, following his guilty plea in August 2015 to one count of transportation of child pornography, announced U.S. Attorney John Parker of the Northern District of Texas.
According to plea documents filed in the case, in November 2014, Morales used the Internet to send at least eight images of prepubescent child pornography via the online instant messaging client, Yahoo Messenger. Morales used several Yahoo IDs to transport and trade images and videos of child pornography. His laptop computer and hard disk drive were seized when special agents with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Texas Attorney General’s Internet Crimes Against Children (ICAC) Task Force, and the San Angelo Police Department, executed a search warrant at his residence in May 2015.
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.”
ICE HSI, the Texas Attorney General’s Internet Crimes Against Children Task Force, and the San Angelo Police Department investigated. Assistant U.S. Attorney Steven M. Sucsy was in charge of the prosecution.
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Saco Man Pleads Guilty to Pharmacy RobberyRead the Press Release
Contact: Jonathan R. Chapman
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that William C. Day, 40, of Saco, Maine pleaded guilty today in U.S. District Court to pharmacy robbery.
According to court documents, on August 10, 2015, Day entered the Community Pharmacy on Main Street in Saco, vaulted the counter at the back of the store and demanded that employees give him narcotic drugs. Officers of the Saco Police Department responding to a silent alarm spotted Day running away from the pharmacy with the drugs and chased him to a location near School Street. There, the officers arrested Day and recovered most of the stolen drugs.
Day faces up to 20 years in prison and a $250,000 fine. He will be sentenced after completion of a presentence investigation report by the U.S. Probation Office. A sentencing date has not been set. He has been held without bail since the date of his arrest.
The investigation was conducted by the Saco Police Department and the Federal Bureau of Investigation.
Rwandan national convicted of resisting deportation ordersRead the Press Release
ALEXANDRIA, La. – United States Attorney Stephanie A. Finley announced today that a federal jury found a Rwandan national guilty of refusing to leave the country after being ordered to depart.
Innocent Safari Nzambereka, 37, of Rwanda, was found guilty of two counts of failure to depart for resisting removal after final deportation orders. United States District Judge Dee D. Drell presided over the trial. The defendant’s trial started Thursday and ended today with the jury returning the guilty verdict after deliberating for approximately 45 minutes. Evidence admitted at trial revealed that on March 12, 2013 and April 11, 2013, Nzambereka refused to sign visa applications necessary for him to be sent back to the Republic of Rwanda where he had been ordered to return.
Nzambereka faces four years in prison, three years of supervised release and a $250,000 fine for each count. Sentencing has been set for February 29, 2016.
The Immigration and Customs Enforcement - Enforcement and Removal Operations conducted the investigation. Assistant U.S. Attorneys Howard C. Parker and Dominic A. Rossetti are prosecuting the case.
Recruiters in Multi-Million Dollar Mortgage Fraud Sentenced to PrisonRead the Press Release
BOSTON – A Virginia man and woman who recruited participants into a multi-year, multi-property mortgage fraud scheme in Roxbury and Dorchester were sentenced this week in U.S. District Court in Boston.
Jerrold Fowler, 31, of Virginia, was sentenced by U.S. District Court Judge Richard G. Stearns to two years in prison, three years of supervised release, and ordered to pay restitution of $3,786,815 and to forfeit $7,413,712. In June 2015, Fowler pleaded guilty to one count of wire fraud and one count of bank fraud.
Thursa Raetz, 40, of Virginia, was sentenced by Judge Stearns to two years in prison, three years of supervised release and ordered to pay restitution of $3,099,224 and to forfeit $7,413,712. In June 2015, Raetz pleaded guilty to two counts of wire fraud and one count of bank fraud.
Between September 2006 and April 2008, Michael David Scott, a former real estate developer, arranged to purchase multi-family residences in Roxbury and Dorchester and then sold individual condominium units in the buildings to straw buyers recruited by him and his co-conspirators, Fowler and Raetz. Scott, Raetz, and Fowler recruited the straw buyers with promises that they would not have to make down payments, pay any funds at the closing, or be responsible for mortgage payments, and with assurances that they also would share in profits when the units were resold. In order to obtain mortgage loans in the names of the straw buyers, Scott, Raetz, and Fowler submitted mortgage loan applications that falsely represented key information, including the buyers’ income, personal assets, down payment, and intention to reside in the condominiums. The mortgage lenders (nine national mortgage companies and one local bank) were led to believe that the straw buyers had made substantial down payments and paid substantial sums at closings.
On Nov. 12, 2015, Scott, who also pleaded guilty to charges arising out of his role in the scheme, was sentenced to 135 months in prison, five years of supervised release and ordered to pay restitution of $11,374,201 and to forfeit $7,413,712.
United States Attorney Carmen M. Ortiz; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement today. The case was prosecuted by Assistant U.S. Attorneys Victor A. Wild of Ortiz’s Economic Crimes Unit and Ryan M. DiSantis of Ortiz’s Public Corruption Unit.
Plano Man Sentenced to 33 Months in Federal Prison for Role in Scheme to Obtain and Use Stolen Identieis to Steal Federal Income Tax RefundsRead the Press Release
DALLAS — A Plano, Texas, man who admitted his role in a stolen identity tax refund scheme was sentenced today, announced U.S. Attorney John Parker of the Northern District of Texas.
Benjamin Kinyua, who is a resident of Plano, according to the court’s order setting conditions of his release, was sentenced today by U.S. District Judge Sidney A. Fitzwater to 33 months in federal prison and ordered to pay $480,643 in restitution. Kinyua pleaded guilty to one count of theft of federal funds and aiding and abetting.
Two others charged and convicted in the case have also been sentenced. Thomas Nganga Muya is currently serving a 27-month federal prison sentence and Harry Fabrice Cheickh Amont is currently serving a 30-month federal prison sentence.
According to Kinyua’s filed factual resume, from 2012 through May 17, 2013, Kinyua regularly acquired and then cashed U.S. Treasury checks, as well as third-party tax refund checks that he knew had either been stolen or obtained by fraud. Mostly, Kinyua cashed the checks at a check-cashing business in Dallas County. From February 2013 through May 17, 2013, Kinyua also presented and participated in the presentation of 16 checks to undercover agents of the Internal Revenue Service Criminal Investigation (IRS-CI), who were posing as persons willing to pay cash for stolen tax refund checks. The factual resume outlines the fencing of a $595,901 stolen IRS refund check.
IRS-CI investigated the case. Assistant U.S. Attorney Chris Stokes was in charge of the prosecution.
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Placer County Man Sentenced to over 4 Years in Prison for Multimillion Dollar Loan FraudRead the Press Release
SACRAMENTO, Calif. — United States District Judge Morrison C. England Jr. sentenced Ryan Costo, 40, of Roseville, to four years and three months in prison for bank fraud in a scheme to defraud lenders, United States Attorney Benjamin B. Wagner announced.
According to court documents, Costo overstated his income and financial assets in connection with a $1.35 million loan from Bank of America related to the acquisition of a classic aircraft. Costo not only made false statements about his income and various bank and stock account balances on the loan application, but also caused various false and fraudulent account statements and tax returns to be given to the Bank of America in order to procure the loan. Costo made various false representations and submitted false documents to obtain three other loans: a $1.95 million loan from CitiMortgage Inc. related to a Granite Bay residence; a $3 million loan from Washington Mutual Bank, now Chase, related to another Granite Bay residence, and a $267,000 loan from San Diego Private Bank. Costo pleaded guilty to bank fraud on October 3, 2013.
This case was the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorney Shelley D. Weger prosecuted the case.
Pinon Man Sentenced to 210 Months in Prison for Second Degree MurderRead the Press Release
PHOENIX – On Nov. 2, 2015, Leland Sam Buckinghorse, 31, a member of the Navajo Nation, of Pinon, Ariz., was sentenced by U.S. District Judge Susan R. Bolton to 210 months’ imprisonment. Buckinghorse previously pleaded guilty to second degree murder.
On Dec. 11, 2014, Buckinghorse engaged in an argument with the victim outside of Buckinghorse’s house on the Navajo Nation Indian Reservation. Buckinghorse went inside his house and located a .22 caliber rifle, loaded the rifle, went back outside, and shot the unarmed victim once in the chest area. The victim, also a member of the Navajo Nation, died as a result of his injuries.
The investigation in this case was conducted by the Federal Bureau of Investigation and the Navajo Nation Police Department. The prosecution was handled by Kiyoko Patterson, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-15-8001-PCT-SRB
RELEASE NUMBER: 2015-115_ Buckinghorse
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Owner of Houston Durable Medical Equipment Health Care Companies Sentenced for $3.4 Million Medicare Fraud SchemeRead the Press Release
A Texas man was sentenced today to 63 months for his role in a $3.4 million scheme to defraud Medicare, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Kenneth Magidson of the Southern District of Texas, Special Agent in Charge CJ Porter of the U.S. Department of Health and Human Services-Office of the Inspector General (HHS-OIG) Dallas Region, Special Agent in Charge Perrye K. Turner of the FBI’s Houston Field Office and the Texas Attorney General’s Medicaid Fraud Control Unit (MFCU).
Huey P. Williams Jr., 46, of Katy, Texas, was sentenced by U.S. District Judge Melinda Harmon of the Southern District of Texas. In addition to imposing the sentence, Judge Harmon ordered Williams to pay $1.96 million in restitution. Williams owned and operated Hermann Medical Supplies Inc. and Hermann Medical Supplies II (collectively Hermann Medical), two Houston-area durable medical equipment (DME) companies.
On March 11, 2015, following a three-day trial, a jury convicted Williams of one count of healthcare fraud. According to the evidence presented at trial, from December 2006 through July 2010, Williams owned and operated Hermann Medical Supplies Inc. and Hermann Medical Supplies II (collectively Hermann Medical), two Houston-area durable medical equipment (DME) companies. Through these companies, Williams oversaw a scheme to defraud Medicare by submitting approximately $3.4 million in false and fraudulent DME claims. Specifically, Williams caused Hermann Medical to bill Medicare for components of an “arthritis kit,” which included expensive, rigid braces and orthotics with adjustable joints that required fitting and adjustment, when in reality, Williams never purchased any of the expensive braces and instead purchased and provided to beneficiaries only inexpensive, flimsy neoprene braces and equipment, to the extent he provided any equipment at all. Medicare paid Hermann Medical $1.96 million on these claims.
The FBI, HHS-OIG and Texas MFCU investigated the case. The case was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office of the Southern District of Texas. Trial Attorneys Ashlee C. McFarlane and Jason Knutson of the Criminal Division’s Fraud Section prosecuted the case.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged over 2,300 defendants who collectively have billed the Medicare program for over $7 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Team (HEAT), go to www.stopmedicarefraud.gov.
Owner and Chief Financial Officer of Healthcare Company Convicted in Fraud SchemeRead the Press Release
BATON ROUGE, LA – BARBARA A. SADLER, age 63, of Zachary, Louisiana, and SEDRIC C. BLAKES, age 42, of Zachary, Louisiana, have been convicted in federal court of conspiracy to commit health care fraud and wire fraud in connection with a multi-million dollar scheme to defraud the Louisiana Medicaid program through Extraordinary Care Network, Inc. (“Extraordinary”), an attendant care services company that SADLER and BLAKES owned and operated.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Walt Green of the Middle District of Louisiana, Special Agent in Charge CJ Porter of the Dallas Region of the U.S. Department of Health and Human Services Office of the Inspector General (HHS-OIG), Special Agent in Charge Jeff Sallet of the FBI’s New Orleans Division and Louisiana State Attorney General James Buddy Caldwell made the announcement.
SADLER and BLAKES were previously charged by a federal grand jury, in a Superseding Indictment returned on June 25, 2015, with conspiring with others to commit healthcare fraud and wire fraud, in violation of Title 18, United States Code, Section 1349. BLAKES was also charged with multiple counts of healthcare fraud and wire fraud, in violation of Title 18, United States Code, Sections 1347 and 1343. The Superseding Indictment also included a forfeiture allegation requiring SADLER and BLAKES to forfeit the proceeds of their fraud if convicted.
In connection with her guilty plea yesterday before Chief U.S. District Judge Brian A. Jackson, SADLER admitted that, beginning in or around 2006 and continuing through in or around March of 2013, she engaged in a scheme to defraud Medicaid through Extraordinary Care, which she owned, operated, and managed. During this time period, in total, Extraordinary Care submitted claims to Medicare and was paid more than $23 million. SADLER admitted, however, that she and others submitted fraudulent claims to Medicaid in which they falsely represented that Extraordinary Care had provided one-on-one attendant care services, when in fact such services had not been provided as represented. In furtherance of the scheme, SADLER admitted that she and her co-conspirators would fabricate progress notes, forge the signatures of unwitting company employees, and then use such documents as support for fraudulent claims to Medicaid for reimbursement. In her written plea agreement, SADLER admitted that the scheme caused a loss of more than $1 million.
Previously, on Thursday, November 12, 2015, BLAKES appeared before Chief Judge Jackson and entered his own guilty plea to the conspiracy charge. BLAKES admitted that he, too, engaged in a scheme to defraud Medicaid while employed as the company’s Chief Operating Officer. BLAKES admitted that he participated in submitting fraudulent claims to Medicaid and that he would also fabricate progress notes and forge signatures of other employees.
Both SADLER and BLAKES are now awaiting sentencing.
U.S. Attorney Green stated: “Our office, together with our federal, state and local partners, will continue to aggressively pursue individuals, including corporate executives, who defraud our healthcare programs. Holding individuals accountable is imperative to stemming the tide of fraud and serving as a significant deterrent to anyone inclined to engage in similar wrongdoing.”
This ongoing matter is being investigated by the Federal Bureau of Investigation (FBI) and the Medicaid Fraud Control Unit of the Louisiana State Attorney General’s Office (MFCU), and is being brought as part of the Medicare Fraud Strike Force, under the supervision of the United States Attorney’s Office and the Fraud Section of the Criminal Division of the U.S. Department of Justice. This case is being prosecuted by DOJ Trial Attorneys Dustin M. Davis and Shubhra Shivpuri and Assistant U.S. Attorney J. Brad Casey.
Omaha Couple Sentenced for Federal Prostitution Related OffensesRead the Press Release
United States Attorney Deborah R. Gilg announced that on November 20, 2015, Louis A. Venditte, 67, of Omaha, Nebraska, was sentenced for four federal felony prostitution related offenses, which include conspiracy to transport an individual in interstate commerce with intent that such individual engage in prostitution, to persuade, induce, entice, and coerce an individual to travel in interstate commerce to engage in prostitution, and to use a facility in interstate commerce in aid of a racketeering enterprise, in violation of 18 U.S.C. § 371; transportation for purposes of prostitution, in violation of 18 U.S.C. § 2421; inducement and enticement to engage in prostitution, in violation of 18 U.S.C. § 2422(a); and use of a facility in interstate commerce in aid of a racketeering enterprise, in violation of 18 U.S.C. § 1952(a)(3)(A). The Honorable Joseph F. Bataillon, Senior United States District Court Judge, sentenced Louis A.Venditte to a 1 year and 1 day term of imprisonment. There is no parole in the federal system.
On November 20, 2015, Ruby A. Venditte, 67, of Omaha, Nebraska, was sentenced for one felony count of conspiracy to transport an individual in interstate commerce with intent that such individual engage in prostitution. The Honorable Joseph F. Bataillon, Senior United States District Court Judge, sentenced Ruby A. Venditte to a 3 year term of probation.
An investigation conducted by the Federal Bureau of Investigation, Omaha Police Department, and Douglas County Sheriff’s Department determined that from at least 2003 through October, 2013, the Vendittes operated an establishment located at 623 South 16th Street, Omaha, Nebraska. The business was last identified by the name “Goodfellas.”
Goodfellas was advertised as a club featuring “exotic dancers” who appeared on stage in bikinis or similar attire, but in fact was operated as a prostitution enterprise. Goodfellas was typically open for only a few hours each evening during which time customers would engage in sex acts with female workers.
After being hired, female workers were encouraged to engage in prostitution with customers for a monetary fee. While operating as a prostitution enterprise, the Vendittes transported at least one female to and from the State of Iowa to Goodfellas with the intent she would engage in prostitution.
Customers engaged in sex acts with female workers for prices ranging from $100 to $200. The sex acts typically occurred within the Goodfellas’ premises in the two bedrooms in the upper area of the building. Payments for sex acts were cash. At the end of the evening the Vendittes would split money made from commercial sex acts with the female workers. While operating as a prostitution enterprise, at no time did Goodfellas report earnings to the Internal Revenue Service.
The case was investigated by the Federal Bureau of Investigation, Omaha Police Department, and Douglas County Sheriff’s Department.
New York Dentist Arrested for Narcotics Trafficking and Distribution of Child PornographyRead the Press Release
A criminal complaint was unsealed today in federal court in the Eastern District of New York charging John Wolf with conspiring to possess methamphetamine with intent to distribute and possession and distribution of child pornography. The defendant was arrested earlier today at his residence, and his initial appearance is scheduled for this afternoon before United States Magistrate Judge Robert M. Levy at the U.S. Courthouse, 225 Cadman Plaza East, Brooklyn, New York.
The charges were announced by Robert L. Capers, United States Attorney for the Eastern District of New York, Diego Rodriguez, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office, and James J. Hunt, Special Agent in Charge, Drug Enforcement Administration, New York.
As set forth in the complaint, the defendant, a Manhattan dentist, provided dental services to a drug dealer in exchange for methamphetamine, some of which the defendant would use personally and some of which he would distribute to others.
The defendant also used his dental office as a place to view and distribute child pornography. In recorded conversations with an FBI undercover agent, the defendant admitted that he possessed child pornography and provided the undercover agent with a flash drive containing files depicting child pornography, including videos of children as young as toddlers being raped by adult men.
United States Attorney Capers expressed his grateful appreciation to the Federal Bureau of Investigation and the Drug Enforcement Administration, the agencies responsible for leading the investigation, and thanked the New York City Police Department and the New York State Police for their assistance.
The charges in the complaint are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being prosecuted by Assistant United States Attorney Moira Kim Penza.
The Defendant:
Name: John Wolf
Age: 59
New York, New YorkIf you have information regarding this case, or you believe you or a family member may have been a victim, please contact the FBI at 212/384-5000.
Morgantown, WV man convicted of possessing stolen firearmsRead the Press Release
CLARKSBURG, WEST VIRGINIA – William Dennison, 24, of Morgantown, West Virginia, was convicted of possessing stolen firearms today in federal court, United States Attorney William J. Ihlenfeld, II, announced.
Dennison was discovered in Monongalia County, West Virginia in possession of two stolen firearms. Those firearms included a .38 caliber revolver and a .22 caliber pistol.
Dennison pled guilty today to a criminal Information charging him with one count of “Possession of Stolen Firearms.” He faces up to 10 years in prison and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney David Perri prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Mexican national convicted of methamphetamine trafficking in Hardy County, WVRead the Press Release
CLARKSBURG, WEST VIRGINIA – Noel Barrera Silva, 26, a Mexican national living in Moorefield, West Virginia, was convicted of methamphetamine trafficking today in federal court after authorities recovered a large amount of the drug from a vehicle Silva was operating, United States Attorney William J. Ihlenfeld, II, announced.
The West Virginia State Police conducted a traffic stop in Wardensville, West Virginia in December 2014 and discovered Silva to be in possession of four pounds of methamphetamine. Silva pled guilty today to one count of “Possession with Intent to Distribute Methamphetamine.” He faces up to 20 years in prison and a fine of up to $1,000,000.
Assistant U.S. Attorney Stephen Warner prosecuted the case on behalf of the government. The West Virginia State Police and the Potomac Highlands Drug and Violent Crime Task Force investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Media Advisory: Expired, Unused and Unwanted Medicines Can KillRead the Press Release
CEDAR RAPIDS – The United States Attorney’s Office for the Northern District of Iowa together with state law enforcement agency representatives will hold a press conference on November 24th to discuss a new program begun by the Eastern Iowa Heroin Initiative. Deaths from drug overdoses in the United States surpassed deaths from either firearms or motor vehicle accidents each year since 2008, according to a newly released report. This new initiative has been developed to encourage the public to play a part in curbing prescription drug overdose deaths.
Four drug drop-off boxes will be placed in Johnson and Black Hawk County as part of the Eastern Iowa Heroin Initiative, which will provide for an anonymous, no questions asked way for people to dispose of expired, unused, or unwanted medications. A drop-off box will be on display.
U.S. Attorney Kevin Techau will be present at the press conference.
Event Details
When: Tuesday, November 24, 2015
Where: Cedar Rapids Police Department (Community Room), 505 1st Street S.W., Cedar Rapids, IA
Time: 11:00 a.m.
A press release will be provided and interview opportunities will be available after the press conference.
McAllen Area Doctor and Assistant Plead Guilty in Health Care Fraud and Illegal Kickback SchemeRead the Press Release
McALLEN, Texas ‐ A McAllen area doctor has been convicted of health care fraud and aggravated identity theft, announced U.S. Attorney Kenneth Magidson. Dr. Eduardo Carrillo, 42, of Edinburg, entered his guilty plea today before U.S. District Judge Randy Crane. Also convicted today was his assistant - Martha Uribe Medrano, 48, of Edinburg.
As part of his plea, Carrillo admitted he attempted to cause others to bill Medicare for patients who were deceased on the dates that Carrillo claimed to have provided services to the patients. Carrillo submitted fraudulent documentation to a billing company so that the company would file claims with Medicare for reimbursement of physician services. Records obtained by law enforcement show that the patients were deceased on the dates that Carrillo alleged to have provided services to the patients.
Carrillo also admitted to engaging in a scheme with his co-conspirator and assistant, Medrano, to solicit and obtain illegal kickbacks in exchange for patient referrals. Carrillo and Medrano solicited and obtained cash in exchange for referrals of Medicare beneficiaries. Carrillo admitted he used the Medicare number and personal information of a patient in the illegal kickback exchange. Medrano pleaded guilty to illegal remunerations for her role in the scheme.
Sentencing for both Carrillo and Medrano has been set for Feb. 3, 2016, at 2:00 p.m. At that time, Carrillo faces a maximum of 10 years in federal prison and a possible $250,000 fine. He also faces a mandatory two-year additional prison term which must be served consecutively to any other sentence imposed. For her conviction, Medrano faces a maximum of five years and a $25,000 possible fine.
Both were permitted to remain on bond pending that hearing.
The investigation leading to the charges was conducted by the Department of Health and Human Services‐Office of Inspector General and the FBI. Assistant United States Attorney Michael Day is prosecuting the case.
Massachusetts Man Sentenced to 30 Months for Illegal Possession of Firearm in New HampshireRead the Press Release
CONCORD, N.H. – Jeremy Robinson, 26, of Hyannis Massachusetts, was sentenced in the United States District Court for the District of New Hampshire for illegal possession of a firearm and ammunition, announced Acting United States Attorney Donald Feith. Chief U.S. District Judge Joseph Laplante imposed a sentence of 30 months imprisonment, three years supervised release, and a mandatory special assessment of $100.
On August 11, 2015, Robinson pleaded guilty to a one-count indictment charging him with illegal possession of a firearm and ammunition in violation of 18 U.S.C. § 922(g)(1).
According to the indictment and other statements made in court, Robinson travelled to New Hampshire in November 2014 and possessed an H&K 9mm pistol and ammunition manufactured by Fiocchi at a firing range in Manchester. At the time, Robinson was prohibited from possessing a firearm as a result of a prior felony conviction. Robinson subsequently posted videos and photographs of his operation of the rented firearm to social media websites.
Robinson is currently incarcerated in Massachusetts on an unrelated conviction, and Chief Judge Laplante ordered his federal sentence to run consecutive to his state incarceration.
This matter was jointly investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives, the Barnstable Police Department, and the Barnstable Sheriff's Office. The case was prosecuted by Assistant U.S. Attorney Charles L. Rombeau.
Maryland Man Sentenced to 10 Years in Prison for Traffic Fatality on Suitland ParkwayRead the Press Release
WASHINGTON – Robert Paris, 52, of Temple Hills, Md., was sentenced today to a 10-year prison term on charges of voluntary manslaughter and driving under the influence of alcohol and PCP, stemming from a crash that killed a woman who was standing beside a disabled van along the roadway of Suitland Parkway, U.S. Attorney Channing D. Phillips announced.
Paris pled guilty in September 2015, in the Superior Court of the District of Columbia, in an Alford plea. Under such a plea, the defendant does not admit the allegations but agrees that the government has enough evidence to secure a conviction; Paris entered an Alford plea because of his intoxication by alcohol and PCP at the time of the crash, and his inability to recollect events. He has been in custody since his arrest. The Honorable Jennifer Anderson sentenced him today. Following his prison term, Paris will be placed on five years of supervised release.
According to the government’s evidence, at about 10:15 p.m. on Tuesday, July 14, 2015, Paris was seen by an off-duty officer from the Metropolitan Police Department (MPD) driving a Ford Ranger truck from a ramp onto eastbound Suitland Parkway in Southeast Washington. The officer observed the Ford Ranger merge at a high rate of speed, far in excess of the 45 mph speed limit, and swerve over to the left lane.
While attempting to catch up to Paris’s truck, the officer saw the truck sideswipe a disabled van that was straddling the right lane and shoulder of Suitland Parkway. The victim, Tomika Early, 32, had been standing next to the driver’s side of the van, and was struck by Paris’s truck and thrown approximately 160 feet forward and to the right. Ms. Early was immediately killed by the extensive impact injuries.
After sideswiping the van and killing Ms. Early, Paris continued to speed eastbound on Suitland Parkway, and struck second vehicle and then a street light pole before coming to a stop.
The officer immediately stopped and approached Paris’s wrecked truck, and saw Paris in the driver’s seat. The officer attempted to talk to Paris, and it was apparent to the officer that Paris was under the influence of alcohol and/or drugs. The officer also saw an opened beer can on the floorboard of the truck, and a number of additional crushed empty beer cans in the bed of the truck. Paris was taken to Prince George’s Hospital Center to be treated for minor injuries. There, his blood was drawn. His blood was later analyzed and it was determined that Paris’s blood alcohol concentration was 0.131 g/100mL. A driver whose blood alcohol concentration is 0.08 g/100mL or greater is considered under District of Columbia law to be per se driving under the influence of alcohol. Paris’s blood was also found to contain a concentration of 25 ng/mL of PCP, which indicates that he was actively under the influence of PCP when the crash occurred.
In announcing the sentence, U.S. Attorney Phillips praised those who investigated the case for the Metropolitan Police Department, including members of the Major Crash Investigations Unit, the Driver Impairment Unit and the Seventh District. He also expressed appreciation for those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Sandra Lane and Victim/Witness Advocate Marcia Rinker. Finally, he commended the work of Assistant U.S. Attorney Edward A. O’Connell, who prosecuted the matter.
Manhattan U.S. Attorney Announces Conviction of Jamal Smalls for Murder, Narcotics Trafficking, and Firearms ChargesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that JAMAL SMALLS, a/k/a “Poo Black,” a/k/a “Machiavelli,” a/k/a “Mack,” was found guilty today of the July 26, 2012, drug-related murder of Doneil White; leading a narcotics trafficking conspiracy that distributed powder cocaine, crack cocaine, and heroin in 2012 and 2013; and using and discharging firearms in connection with that narcotics conspiracy, following a two-week jury trial before United States District Judge Naomi Reice Buchwald.
U.S. Attorney Preet Bharara said: “Jamal Smalls led a violent drug trafficking crew and, as the jury found, was responsible for murder as well as other mayhem and drug peddling. Thanks to the FBI and the NYPD, this threat to public safety is off the streets and awaiting sentencing for his crimes.”
According to the Superseding Indictment, evidence admitted at trial, and statements made at court proceedings and in court filings:
JAMAL SMALLS, a/k/a “Poo Black,” a/k/a “Machiavelli,” a/k/a “Mack,” was a high-ranking member of the Bloods. In 2012 and 2013, SMALLS ran a drug trafficking crew that operated in and around the John Adams Houses in the Bronx, New York. SMALLS and his crew sold large quantities of powder cocaine, crack cocaine, and heroin in and around the housing project, as well as in North Carolina, South Carolina, and Virginia.
In 2000, SMALLS was convicted for first degree manslaughter in New York State. Throughout SMALLS’s term of incarceration, he received narcotics from his brother and persons working on behalf of the crew to distribute within the state prison system. In April 2012, SMALLS was released from New York State prison. After his release, SMALLS began to lead the crew with his brother, participating in large-quantity narcotics transactions in the Bronx and out-of-state.
SMALLS was also involved in repeated violence committed in connection with the crew’s drug trafficking. On July 18, 2012, SMALLS tried to shoot Doneil White, a rival drug dealer, but missed; SMALLS, however, hit a bystander in the back outside of the Johns Adams Houses. A week later, on July 25, 2012, SMALLS again shot at Doneil White in the John Adams Houses, but missed. Early the next morning, on July 26, 2012, SMALLS paid a member of his crew $10,000 to shoot Doneil White in a stairwell at the John Adams Houses. White died a few days later as result of his severe injuries.
Following his arrest in August 2012, and while in pre-trial detention, SMALLS continued to lead the narcotics conspiracy, by, among other things, giving directives to members of the crew through telephone calls and in-person visits.
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SMALLS, 39, of the Bronx, New York, was convicted of (a) conspiracy to distribute and possess with the intent to distribute 280 grams and more of crack cocaine, one kilogram and more of heroin, and five kilograms and more of cocaine; (b) using, carrying, possessing, and discharging firearms in connection with that narcotics conspiracy; and (c) the drug-related murder of Doneil White. In total, SMALLS faces a maximum sentence of life in prison and a mandatory minimum sentence of 45 years in prison. SMALLS is scheduled to be sentenced on March 10, 2016, at 2:30 p.m., before Judge Buchwald. The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
U.S. Attorney Preet Bharara thanked the Federal Bureau of Investigation and the New York City Police Department for their continued outstanding work in this investigation. Mr. Bharara also thanked the Bronx District Attorney’s Office for their valuable assistance with the investigation.
The case is being prosecuted by the Office’s Violent & Organized Crime Unit. Assistant U.S. Attorneys Kan M. Nawaday, Joshua A. Naftalis, and Drew Johnson-Skinner are in charge of the prosecution.
Manhattan U.S. Attorney Announces $370 Million Civil Fraud Settlement Against Novartis Pharmaceuticals for Kickback Scheme Involving High-Priced Prescription Drugs, Along with $20 Million Forfeiture of Proceeds from the SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Diego Rodriguez, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), Gregory E. Demske, Chief Counsel to the Inspector General of the U.S. Department of Health and Human Services (“HHS-OIG”), and Scott J. Lampert, Special Agent in Charge of HHS-OIG’s New York Regional Office, announced a $390 million settlement against NOVARTIS Pharmaceuticals Corp. (“NOVARTIS”) in a civil fraud lawsuit based on claims that NOVARTIS gave kickbacks to specialty pharmacies in return for recommending two of its drugs, Exjade and Myfortic. The settlement resolves claims under the federal False Claims Act, 31 U.S.C. § 3729 et seq., and numerous state false claims act claims. The settlement also provides for resolution of claims against NOVARTIS under the federal civil forfeiture statute, 18 U.S.C. § 981 et seq. This is the third settlement in this lawsuit – in January 2014 and April 2015, two specialty pharmacies, Bioscrip, Inc. (“Bioscrip”) and Accredo Health Group (“Accredo”), agreed to pay a total of $75 million to resolve federal and state claims against them based on the same allegations. Together with today’s settlement, the federal and state governments will recover $465 million in total based on the kickback allegations in this lawsuit.
In April 2013, the Government first intervened as to NOVARTIS in this lawsuit, which was initially filed by a whistleblower, and asserted that NOVARTIS violated the False Claims Act and the Anti-Kickback Statute, 42 U.S.C. § 1370a-7b, by giving kickbacks to specialty pharmacies in return for recommending Exjade, an iron chelation drug, and Myfortic, an anti-rejection drug for kidney transplant recipients. With respect to Exjade, the Government alleged that NOVARTIS gave kickbacks in the form of patient referrals and rebates to Bioscrip and Accredo to induce those pharmacies to recommend Exjade refills. More specifically, the Government alleged that, to increase Exjade sales, Novartis incentivized and pressured the pharmacies to emphasize Exjade’s benefits to patients while understating the drug’s serious, potentially life-threatening, side effects. With respect to Myfortic, the Government alleged that NOVARTIS gave rebate contracts to specialty pharmacies to induce the pharmacies to recommend to doctors that they switch patients to Myfortic from competitor drugs.
Today, U.S. District Judge Colleen McMahon approved a settlement to resolve the Government’s claims against NOVARTIS. Under that settlement, NOVARTIS agrees to (i) pay $370,000,000 to resolve the federal and state false claims act claims, (ii) forfeit $20 million as proceeds from the scheme under the federal civil forfeiture statute, (iii) make extensive admissions concerning its relationship with specialty pharmacies, and (iv) amend its corporate integrity agreement with HHS-OIG to subject NOVARTIS’s specialty pharmacy relationships to independent review and extend the term of that agreement by five years. Of the $370 million, $286,870,245.98 will be paid to the Government, and $83,129,754.02 will be paid to settling states.
Manhattan U.S. Attorney Preet Bharara said: “This is the third substantial settlement in connection with Novartis’s scheme to use kickbacks to co-opt healthcare providers’ independence. The Anti-Kickback Statute was enacted to ensure that the medical treatment and advice patients receive, and federal programs pay for, are free from the taint of corporate kickbacks. But that was not the case with Novartis here. Novartis gave kickbacks to influence specialty pharmacies to provide patients one-sided advice about Exjade, without disclosing the drug’s serious side effects, and to recommend switching patients who were using other drugs to Myfortic. Novartis turned pharmacies that should have been disinterested healthcare providers into a biased salesforce for the drug-maker. Drug-makers and their relationships with healthcare providers – whether they are doctors, pharmacists, or nurses – must comply with the Anti-Kickback Statute. If they don’t, we will bring all appropriate law enforcement tools to bear to ensure that they do.”
FBI Assistant Director-in-Charge Diego Rodriguez said: “In the course of our investigation with the Health and Human Services Office of Inspector General, Novartis was found to be giving incentives to pharmacies to push certain drugs to patients. Today’s settlement with Novartis should serve as a warning to companies who choose to operate their businesses with kickbacks rather than honesty – those companies will pay more in the long run. Doctors should be advising patients based on medical facts, not pharmacies based on dollar signs. The FBI is committed to working with our federal partners to protect our citizens from fraud and ensure everyone receives the quality medical care they need.”
HHS-OIG Chief Counsel Gregory E. Demske said: “Reliable information is essential for patients taking drugs on a long-term basis, and money should not distort the advice that patients receive about drugs with serious side effects. OIG will continue to investigate kickback arrangements between pharmaceutical manufacturers and specialty pharmacies.”
HHS-OIG Special Agent in Charge Scott J. Lampert said: “Novartis’s kickbacks and other aggressive sales tactics, as alleged in this case, threatened the impartiality of medical decision-making and the financial integrity of Medicare and Medicaid. Our agency will continue to investigate companies who step over the line to maximize their market share at the expense of federal health care programs.”
As the Government contended, evidence uncovered in the lawsuit shows that Exjade patient referrals were very valuable for pharmacies and that when it launched Exjade in 2005, NOVARTIS created a “closed distribution network” involving just three specialty pharmacies, BioScrip, Accredo, and US Bioservices. This gave NOVARTIS control over how many Exjade patients would be assigned to the pharmacies.
The Government also contended that evidence shows, starting in early 2007, NOVARTIS saw Exjade sales were far below internal targets because of low refill rates due, in significant part, to side effects that were more frequent and more severe than initially expected. To increase Exjade refills and hit its sales targets, NOVARTIS leveraged its control over patient referrals to pressure BioScrip, Accredo, and US Bioservices to hire or assign nurses to call Exjade patients and, under the guise of education or clinical counseling, encourage patients to order more refills.
More specifically, as the Government contended, NOVARTIS knew that, when the pharmacies called patients, they emphasized the benefits of taking Exjade – for example, by telling patients that not taking Exjade would cause damage to their organs or lead to infertility – while understating the serious, potentially life-threatening risks of taking Exjade – for example, by not mentioning potential side effects like kidney and liver failure. Indeed, NOVARTIS encouraged the pharmacies to promote Exjade refills in these ways even though FDA had characterized claims about Exjade preventing organ damage as “unsubstantiated.”
In addition, the Government contended that, to incentivize the pharmacies to intensify their efforts to promote Exjade refills, NOVARTIS devised a scheme under which it allocated more patient referrals and gave higher rebates to pharmacies that obtained higher refill rates. Indeed, NOVARTIS went forward with this scheme – which operated from 2008 to 2012 – even though it knew that the scheme presented risks of violating the Anti-Kickback Statute.
Finally, with regard to Myfortic, the Government contended evidence shows that NOVARTIS offered lucrative rebate offers to five specialty pharmacies in return for the pharmacies’ promise to recommend to doctors that they switch patients to Myfortic from competitor drugs. For example, in July 2011, NOVARTIS offered rebates to a specialty pharmacy in Mississippi once the pharmacy owner agreed to “create a letter to” doctors “with a recommendation of moving [ ] patients to Myfortic.”
As part of the settlement, NOVARTIS made extensive factual admissions about its relationships and interactions with specialty pharmacies in connection with distribution of Exjade and Myfortic and accepted responsibility for those admissions (those admissions, which are part of the settlement stipulation approved by the Court, are attached as an addendum).
* * *
The allegations of fraud stated in the Complaint were first brought to the attention of federal law enforcement by David Kester, the whistle-blower who filed a lawsuit under the False Claims Act. The False Claims Act permits the Government to recover up to three times the amount of damages incurred by the United States, plus civil penalties ranging from $5,500 to $11,000 per violation. Private parties who have knowledge of fraud committed against the Government may file suit on behalf of the Government and share in any recovery. The United States may then intervene and file its own lawsuit for treble damages and penalties, as it did in this case.
Mr. Bharara praised the investigative work of the FBI, HHS-OIG, and the Medicaid Fraud Control Units for New York, Washington, California, and Ohio. He also thanked the Commercial Litigation Branch of the U.S. Department of Justice’s Civil Division in Washington, D.C., including Laurie Oberembt, and the Office of Counsel to the Inspector General of HHS, including Mary Riordan and Geeta Kaveti, for their critical assistance in this case.
The case is being handled by the Office’s Civil Frauds Unit. Mr. Bharara established the Civil Frauds Unit in March 2010 to bring renewed focus and additional resources to combating healthcare and other types of frauds. Assistant U.S. Attorneys Li Yu, Rebecca C. Martin, David J. Kennedy, Jeffrey K. Powell, and Peter Aronoff are in charge of the case, and Assistant U.S. Attorney Alexander J. Wilson of the Money Laundering and Asset Forfeiture Unit is responsible for the forfeiture aspects of the case.
Man with Prior Convictions for Stealing Mail Sentenced Again for Mail TheftRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a man with prior federal convictions for stealing mail was again sentenced in federal court today for stealing mail, following a police chase from a bank where he was attempting to cash a fraudulent check.
Ronald L. Hines, also known as Ronald Hinds, 64, pleaded guilty to stealing mail and was sentenced by U.S. District Judge Beth Phillips to two years and six months in federal prison without parole. Today’s sentence must be served consecutively to a two-year sentence Hines received upon the revocation of his supervised release. The court also ordered Hines to pay $8,504 in restitution.
By pleading guilty today, Hines admitted that he stole outgoing mail from rural mailboxes in the Kansas City metropolitan area in both Missouri and Kansas in June 2014. Hines stole mail from at least two victims in Platte City, Mo., and at least three victims in Shawnee, Kan.
Hines used the stolen mail to write or cash $8,504 in fraudulent checks. Not all of the fraudulent checks were successfully cashed.
On June 28, 2014, Hines attempted to pass a fraudulent check at US Bank in Shawnee, Kan. Hines fled the bank when the police arrived. He led police officer on a car chase that ended when Hines’ car struck a curb and a utility pole. Hines was arrested for forgery and fleeing a law enforcement officer. His vehicle was searched and several items were recovered, including checks stolen from the mail.
Hines was interviewed on the day of his arrest by officers of the Overland Park, Kan., Police Department. He admitted his involvement in the mail theft/bank fraud scheme. Hines also admitted he used his previous criminal connections to access books of blank stolen checks or in some cases he would trade drugs and money for blank books of checks.
Hines has prior federal convictions in the Western District of Missouri for stealing mail and bank fraud in 1997 and again in 2009. Hines was still under supervised release following his five-year sentence for the 2009 convictions when he committed the thefts in this case. Hines also has a prior state conviction for stealing mail in 1977.
This case was prosecuted by Assistant U.S. Attorney Jane Pansing Brown. It was investigated by the U.S. Postal Inspection Service.
Macy Man Sentenced for Negligent Child AbuseRead the Press Release
United States Attorney Deborah R. Gilg announced today that Victor Ray Miller, age 24, Macy, Nebraska, was sentenced for his conviction for negligent child abuse. Senior United States Judge Joseph F. Bataillon sentenced Miller to serve a term of probation of five years. While on probation, Miller will be required to complete a residential program at the Nebraska Urban Indian Health Coalition in Omaha, Nebraska. He was further ordered to perform community service of 20 hours per week for any week that he remains unemployed.
On October 27, 2015, Miller was minding his 14 month old daughter at his home in Macy, Nebraska. Miller had injected some methamphetamine but left a baggie containing other methamphetamine on a stand within reach of his daughter. Miller left his daughter alone while he went to take a shower, and when he came back, he found that his daughter had ingested the methamphetamine.
The child was taken to the Indian Health Service Hospital in Winnebago, but was transferred to St. Luke’s Hospital in Sioux City and then on to Children’s Hospital in Omaha. The child initially was highly agitated and inconsolable and her EKG showed tachycardia. She was treated with a medication regimen recommended by the National Poison Control Center and was released from the hospital three days later.
This case was investigated by the Federal Bureau of Investigation.
MS-13 Member Pleads Guilty to Racketeering Conspiracy Including a Murder and Attempted MurderRead the Press Release
Greenbelt, Maryland – Aldair Garcia-Miranda, a/k/a “Callado” and “Poseido,” age 21, of Wheaton, Maryland, pleaded guilty today to conspiracy to participate in a racketeering enterprise known as La Mara Salvatrucha, or MS-13, including a murder; attempted murder in aid of racketeering; and carrying, using, brandishing, and discharging a firearm during a crime of violence.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Andre Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Chief Mark A. Magaw of the Prince George’s County Police Department; Prince George’s County State’s Attorney Angela D. Alsobrooks; Chief Douglas Holland of the Hyattsville Police Department; Chief Edward G. Hargis of the Frederick Police Department; Frederick County State’s Attorney J. Charles Smith; Chief J. Thomas Manger of the Montgomery County Police Department; and Montgomery County State’s Attorney John McCarthy.
MS-13 is a national and international gang composed primarily of immigrants or descendants from El Salvador. Branches or “cliques” of MS-13, one of the largest street gangs in the United States, operate throughout Prince George’s County and Montgomery County, Maryland. MS-13 members are required to commit acts of violence both to maintain membership and discipline within the gang and against rival gangs.
According to his plea agreement and court documents, from 2013 through at least 2014, Garcia-Miranda was a member of the Normandie clique of MS-13. Garcia-Miranda and MS-13 members committed crimes to further the interests of the gang, including murder, assault, robbery, extortion by threat of violence, obstruction of justice, witness tampering, and witness retaliation.
Garcia-Miranda admitted that on November 30, 2013, he and another MS-13 member traveled to Frederick, Maryland, in order kill a person who had fled there from El Salvador when MS-13 in El Salvador had issued an order to kill that person. Garcia-Miranda and the other MS-13 member had in their possession a .380 caliber handgun that belonged to the Normandie clique. An MS-13 member who had lived in Frederick and was familiar with the victim from El Salvador, communicated with the victim and lured him to a wooded area where Garcia-Miranda and the other MS-13 member met them. The victim was killed after the MS-13 member from Frederick shot the victim with the Normandie clique’s gun and Garcia-Miranda and the other MS-13 member stabbed the victim multiple times. A .380 caliber bullet that was recovered from the victim during the autopsy matched a bullet recovered at the scene of a November 11, 2012 murder in the Hyattsville, Maryland, area.
Garcia-Miranda also admitted that on July 30, 2014, he and two other MS-13 members approached three people walking in the area of 30th Avenue in Hyattsville, Maryland. Garcia-Miranda and other MS-13 members had traveled to that area with guns to search for and shoot suspected rival gang members who had harassed and tried to steal the bicycle of a person who was a friend of MS-13. Garcia-Miranda and an MS-13 associate, each armed with a .380 caliber handgun, fired multiple shots at the three victims, striking one victim seven times and another victim once. Five shell casings collected at the scene were fired from the same gun that fired the casings recovered at other crime scenes, including murders in Hyattsville on November 11, 2012 and February 28, 2013.
Garcia-Miranda faces a maximum sentence of life in prison for the racketeering conspiracy because it included a murder; a maximum of ten years in prison for attempted murder in aid of racketeering; and a mandatory minimum of 10 years and up to life in prison, consecutive to any other sentence, for using, carrying, brandishing and discharging a firearm during a crime of violence. U.S. District Judge Peter J. Messitte has scheduled sentencing for February 24, 2016, at 9:30 a.m.
United States Attorney Rod J. Rosenstein commended the HSI Baltimore, Prince George’s County Police Department, Frederick Police Department, Hyattsville Police Department, Montgomery County Police Department, Prince George’s County State’s Attorney’s Office and its Strategic Investigations Unit, Frederick County State’s Attorney’s Office and Montgomery County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein also recognized the Prince George’s County Sheriff’s Office, Prince George’s County Department of Corrections, HSI Baltimore’s Operation Community Shield Task Force, and the Maryland Department of Corrections Intelligence Unit for their assistance. Mr. Rosenstein thanked Assistant United States Attorneys William D. Moomau and Lindsay Eyler Kaplan, who are prosecuting this case.
Local Businessman and Associate Indicted on Fraud and Money Laundering ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that a federal grand jury has returned a 19 count indictment charging Frank R. Parlato, Jr., 60, and Chitra Selvaraj, 41, with a conspiracy to defraud the United States and certain members of the public, to obstruct the function of the Internal Revenue Service, wire fraud and wire fraud conspiracy, money laundering, and corrupt interference with the administration of the IRS laws. The charges carry a maximum penalty of 20 years in prison and a $250,000 fine.Assistant U.S. Attorneys Anthony M. Bruce and Elizabeth R. Moellering, who are handling the case, stated that according to the indictment, the defendants stand accused of orchestrating a scheme to defraud the Internal Revenue Service and others. The scheme involved more than 15 shell companies, 50 bank accounts, and multiple attorney trust accounts.
The defendants will be arraigned on November 23, 2015 at 3:30 p.m. before U.S. Magistrate Judge Jeremiah J. McCarthy.
The indictment is the culmination of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent in Charge Adam S. Cohen and the Internal Revenue Service, Criminal Investigation Division, under the direction of Special Agent-In-Charge Shantelle P. Kitchen.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Lehigh County Couple Convicted in Scheme to Defraud NASARead the Press Release
A federal jury today convicted Yujie Ding, 53, and Yuliya Zotova, 41, of Center Valley, Pennsylvania, of six counts of wire fraud for defrauding NASA’s Small Business Innovation Research (SBIR) Program. U.S. District Court Judge Harvey Bartle III scheduled sentencing hearings for March 2, 2016.
In August 2009 and July 2010, Ding and Zotova submitted proposals to NASA, seeking funding for scientific research. The defendants’ proposals claimed that Zotova would serve as principal investigator for research that would be conducted at their business, ArkLight. The defendants’ proposals claimed further that Arklight would subcontract some of the work to Lehigh University, where Ding was employed. Instead, the defendants used ArkLight as a front to funnel federal grant money to themselves for research performed by students and others working in Ding’s university lab who were not supervised by Zotova. The defendants sent invoices to NASA, via interstate electronic transmissions, for research in which the jury found that ArkLight had not participated.
The case was investigated by the National Aeronautics and Space Administration's Office of Inspector General, the Defense Criminal Investigative Service, and the United States Air Force Office of Special Investigations. It is being prosecuted by Assistant United States Attorneys Elizabeth F. Abrams and Gregory B. David.
Leader of North Shore Heroin Trafficking Ring Sentenced to PrisonRead the Press Release
BOSTON – Jason Melchionda, 35, of Chelsea, was sentenced by U.S. District Court Judge F. Dennis Saylor to 108 months in prison and four years of supervised release. In May 2015, Melchionda pleaded guilty to distributing over 1 kilogram of heroin between March 2013 and August 2013.
In 2013, Melchionda was the leader of a criminal conspiracy responsible for distributing heroin in the North Shore. In March 2013, federal agents began investigating members of the criminal conspiracy and intercepted telephone calls to and from several cellphones used by members of the group. Agents determined that Melchionda was the leader, and that the group had at least two sources of supply for heroin. Through intercepted telephone calls and surveillance, agents also determined that Melchionda directed others to distribute heroin on his behalf to at least 30 individuals in the North Shore area.
In August 2015, co-defendant Senny Arias, one of Melchionda’s heroin suppliers, was sentenced to 66 months in prison following a one week jury trial.
This case was brought as part of the federal response to the growing opioid abuse epidemic in Massachusetts and other New England states. Heroin is highly addictive, and users can quickly develop a tolerance, prompting them to seek higher potencies and greater quantities of the narcotic. Between 2000 and 2014, opioid overdose deaths have more than tripled with a spike in recent years in Massachusetts.
United States Attorney Carmen M. Ortiz and Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division, made the announcement today. The case was investigated with the assistance of the Revere, Chelsea, Methuen and Saugus Police Departments. The case was prosecuted by Assistant U.S. Attorneys Carlos A. López, Theodore B. Heinrich, and David J. D’Addio of Ortiz’s Criminal Division.
Leader of Little Haiti Based Crack Cocaine Trafficking and Identity Theft Tax Fraud Organization Sentenced to 22 Years’ ImprisonmentRead the Press Release
A leader of a Little Haiti based drug trafficking organization and identity theft tax fraud scheme was sentenced to 22 years’ imprisonment by Senior United States District Judge Donald L. Graham.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Carlos A. Canino, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office, and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.
Espere Desmond Pierre, 33, of Miami, previously pled guilty to conspiracy to possess with intent to distribute over two hundred eighty (280) grams of crack cocaine, in violation of Title 21, United States Code, Sections 846 and 841(b)(1)(A); possession with intent to distribute over 28 grams of crack cocaine, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(B); possession of a firearm in furtherance of a drug-trafficking crime, in violation of Title 18, United States Code, Section 924(c)(1)(A); conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 1349; and aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1).
The Court sentenced Pierre to be imprisoned for a total term of 264 months (22 years). The Court further ordered that Pierre serve a five year term of supervised release, following his release from custody, and that Pierre pay a special assessment of $500.
According to court documents, Pierre and co-defendant Markentz Blanc, 34, of Miami, conspired as supervisors and directors of a drug-trafficking organization that distributed cocaine base (commonly referred to as “crack” cocaine) through multiple storage and retail distribution locations in the Little Haiti area of Miami-Dade County. Pierre and Blanc also conspired to obtain the personal identifying information (PII), including the names, dates of birth, and Social Security numbers, of various persons. Pierre and Blanc then used the unauthorized information to submit fraudulent tax returns in order to claim income tax refunds to which they were not entitled.
Earlier this year, Blanc and another co-defendant, Willis Maxi, 33, of Miami, were each convicted following a jury trial and sentenced to 300 and 312 months’ imprisonment, respectively. Five additional co-defendants – including Meluin Jermaine Braynen, 21, Wisvelt Voltaire, 33, Alex Bermudez, 26, Sanders Bermudez, 23, and Kervens Lalanne, 25, all of Miami, previously pled guilty and were sentenced to terms of imprisonment ranging from 18 to 188 months.
Through its Violence Reduction Partnership, the U.S. Attorney’s Office and its federal and local law enforcement allies have sought to dismantle the most violent criminal networks in various neighborhoods in the Southern District of Florida, while simultaneously working with community leaders and concerned citizens to mentor at-risk youth, provide job training, coordinate social services and support the reintegration of ex-offenders (returning citizens) to the community.
Mr. Ferrer thanked FBI, ATF, IRS-CI, the Miami-Dade Police Department, and the City of Miami Police Department for their work on this case. The case is being prosecuted by Assistant U.S. Attorneys Seth M. Schlessinger and Olivia S. Choe.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Las Vegas Scammer Sentenced for Timeshare Resale FraudRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that Patrick A. Nosack, 34, of Henderson, Nevada, was sentenced yesterday afternoon to thirty months in federal prison in connection with his role in a multi-million dollar timeshare resale scam that operated out of Las Vegas. Nosack was also ordered to pay restitution to his victims and serve five years of supervised release when he is released from federal prison.
The sentence arose out of a telemarketing scam which operated in Las Vegas, Nevada. The scheme bilked over 3,000 victims of approximately 10 million dollars. Consumers were victimized in all fifty states, the District of Columbia and Puerto Rico, all ten Canadian provinces and the Northwest Territory of Canada, as well as Australia, Israel and the United Kingdom. There were at least twelve victims in nine of the thirty-eight counties comprising the Southern District of Illinois.
Evidence revealed that Nosack was a telemarketer at a telemarketing company, called Vacation Max, which operated a timeshare resale scam. The company purported to be a Georgia corporation located in Delaware, but actually operated in Las Vegas, Nevada in office space leased in the name of "Hot Girls Entertainment." The company falsely represented that they had found corporate buyers interested in acquiring blocks of timeshare units including the consumer's timeshare unit for purported business and tax purposes. The company solicited fees of up to several thousand dollars from each timeshare owner in purported pre-paid closing costs and related expenses. The purported sales did not occur and Vacation Max did not successfully sell any consumer’s timeshare interest except a relatively small number at fire sale prices.
This prosecution is one of nearly 100 timeshare resale fraud prosecutions brought in the Southern District of Illinois over the past four years. The case is part of an ongoing investigation by the St. Louis Field Office of the Chicago Division of the United States Postal Inspection Service. The prosecution of this case was handled by Assistant United States Attorneys William E. Coonan and Michael Hallock.
Kodiak Man Sentenced to 5 Years in Prison for Drug TraffickingRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that a Kodiak man was sentenced in federal court in Anchorage for one count of trafficking narcotics. Teodoro Berdan, 55, of Kodiak, Alaska, had previously pled guilty on July 20, 2015, to one count of possession with intent to distribute over 100 grams of a mixture and substance containing methamphetamine.
Berdan was sentenced today by United States District Court Judge Sharon L. Gleason, to 60 months in prison.
According to Assistant U.S. Attorney Bryan Schroder, in early February 2015, the U.S. Postal Inspection Service intercepted a package addressed to Teodoro Berdan in Kodiak. The package contained over 100 grams of methamphetamine. The Postal Inspectors replaced the bulk of the methamphetamine with a small, representative sample of meth, and a larger amount of a sham substance. The Postal Service then delivered the package to the residence in Kodiak where Berdan rented a room. Soon after the package was delivered, Postal Inspectors, supported by FBI agents and officers from the Kodiak Police Department, entered Berdan’s room and discovered him hiding the now-open box of drugs. Berdan later admitted he intended to distribute the drugs.
Ms. Loeffler commends the U.S. Postal Inspection Service, the FBI, and the Kodiak Police Department for the investigation of this case. Seattle Division Inspector in Charge, Anthony Galetti, of the U.S. Postal Inspection Service stated, “Postal Inspectors worked closely with the U.S. Attorney’s Office and our partners in law enforcement in Alaska and Guam on this investigation and will continue to vigorously protect the U.S. Mail and U.S. Postal Service employees and customers against all forms of criminal attack and misuse.”
Jury Convicts Former City of Houston Doctor of Health Care FraudRead the Press Release
HOUSTON – A jury has returned a guilty verdict against a former staff physician for the City of Houston of 14 counts of health care fraud in a $1 million health care fraud scheme, announced U.S. Attorney Kenneth Magidson. Jocelyn Pyles, M.D., 58, was convicted today following a 3 ½ day trial in Houston.
The jury heard that Pyles worked full-time for the City of Houston and had entered into various agreements with the owner of Elite P. Medical Clinic that resulted in $1 million in health care claims being billed under her Medicare and Medicaid provider numbers.
The jury found Pyles guilty of 14 individual health care fraud counts that related to physician office visits and physical therapy services that she did not provide because she was actually working for the City of Houston at the time. In actuality, an unlicensed foreign medical graduate, who did not have a license, saw all the patients at the clinic alone. He was instructed not to sign patient progress notes at those visits. Pyles would come to the Houston location of the clinic after hours, when there were no patients present and then sign the treatment notes to make it appear she saw the patients when she did not.
The jury also heard that Pyles occasionally went to the Port Arthur location of the Elite clinic on Fridays during business hours, but still did not see patients. Again, the unlicensed foreign medical graduate saw the patients alone.
That individual testified at trial, identifying his handwriting and explaining what he did with the patients. The owner of the clinic, who had previously pleaded guilty for her role in the scheme testified that Pyles received $135,000 from her during the criminal activity.
Pyles is scheduled for sentencing on Feb. 1, 2016, at which time she faces up to 10 years in prison and a possible $250,000 fine on each count of conviction.
The conviction was the result of a joint investigation conducted by agents from the Department of Health and Humans Services – Office of Inspector General, FBI, and the Texas Attorney General’s Office - Medicaid Fraud Control Unit with assistance of Medicare Zone Program Integrity Contractor, Health Integrity LLC. Assistant U.S. Attorney Julie Redlinger and Special Assistant U.S. Attorney Rodolfo Ramirez prosecuted the case.
Joint Statement on the Release of EvidenceRead the Press Release
Joint Statement from the United States Attorney for the District of Minnesota Andrew M. Luger, Assistant Attorney General for Civil Rights Vanita Gupta and Special Agent in Charge of the FBI Minneapolis Division Richard T. Thornton:
“The U.S. Attorney’s Office for the District of Minnesota, Department of Justice’s Civil Rights Division and FBI Minneapolis Division are conducting an independent investigation into whether the death of Jamar Clark violated any federal criminal statutes. As is our practice in conducting investigations into allegations of constitutional violations committed under color of law, experienced federal prosecutors and FBI agents are conducting a thorough review of all evidence in this case. That includes interviewing relevant witnesses, reviewing relevant information, and pursuing leads. We are doing so in a manner that ensures the integrity of the investigation and the reliability of the information obtained.
“Release of any evidence, including any video, during an ongoing investigation would be extremely detrimental to the investigation. We are conducting our investigation in a fair, thorough, and expeditious manner.”Jackson Man Pleads Guilty to Possession of a Firearm by a Convicted FelonRead the Press Release
Jackson, Miss. – Delace Johnson, 27, of Jackson, entered a guilty plea on November 19, 2015, before Senior U.S. District Judge Tom S. Lee, to possession of a firearm after having previously been convicted of a felony, U.S. Attorney Gregory K. Davis announced.
On July 31, 2015, officers with the Mississippi Department of Corrections searched a house located on Oak Grove Lane in Jackson and located a shotgun which Johnson admitted he purchased off-the-street shortly after having been released from prison. His previous felony conviction was in Hinds County Circuit Court for house burglary.
Johnson was indicted as part of the Jackson Violent Crime Initiative, a joint initiative between federal, state and local law enforcement agencies worked together to reduce violent crime in the city of Jackson and to remove violent offenders from the streets of this community. Jackson Violent Crime Initiative partners include the Jackson Police Department, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Federal Bureau of Investigations (FBI), Drug Enforcement Administration (DEA), U.S. Marshals Service, Homeland Security Investigations, U.S. Postal Inspection Service, and U.S. Secret Service.
Johnson will be sentenced on February 4, 2016, and faces a maximum sentence of 10 years in federal prison and a $250,000.00 fine.
This case was investigated by the Bureau of ATF and the Mississippi Department of Corrections. It was prosecuted by Assistant U.S. Attorney Patrick Lemon.
Irondale Man Gets Seven Years in Federal Prison for Identity Theft and Stealing $1.7 Million in U.S. Treasury ChecksRead the Press Release
BIRMINGHAM – A federal judge today sentenced an Irondale man to seven years in prison for identity theft and stealing about $1.7 million in U.S. Treasury checks, announced U.S. Attorney Joyce White Vance, FBI Special Agent in Charge Roger C. Stanton and Internal Revenue Service Criminal Investigation Special Agent in Charge Veronica Hyman-Pillot.
CRAIG MONTRAIL EATMON, 47, pleaded guilty late last year to one count each of theft of government funds and aggravated identity theft. U.S. District Judge Karon O. Bowdre sentenced Eatmon to five years in prison for the theft of treasury checks and two years for the identity theft. The sentence for aggravated identity theft must be served after completion of any other sentence imposed in the case. The judge also ordered Eatmon to pay $1.02 million in restitution to the U.S. Treasury, and to forfeit $442,127 to the government as proceeds of illegal activity.
“Mr. Eatmon deposited 44 fraudulent or stolen U.S. Treasury checks in his bank account within less than a year to steal more than $1 million from the government and delay rightful tax returns to legitimate tax payers,” Vance said. “He also stole an individual’s identity and created a bank account in the victim’s name so he could deposit a $151,000 stolen tax-refund check and access the money. The FBI, IRS-CI and the U.S. Attorney’s Office have shut off his criminal activity and, today, the prison door swings shut on Mr. Eatmon for a long time.”
“The FBI will continue to work cooperatively to investigate stolen identity tax refund fraud,” Stanton said. “These crimes not only victimize law-abiding individuals, but all honest U.S. taxpayers who ultimately foot the bill for this stolen revenue.”
“Craig Eatmon perpetrated a scheme that was fueled by greed, deceit, dishonesty and theft,” Hyman-Pillot said. “He made a profit at the expense of the United States Treasury and other taxpayers. However, it didn’t pay dividends. The penalty for his deception and theft is imprisonment.”
Eatmon has two prior convictions in federal court in the Northern District of Alabama for bank fraud, unauthorized use of an access device and fraud with identification documents. He also pleaded guilty to conspiracy to possess with intent to distribute cocaine in a second case before Judge Bowdre. She sentenced him today to five years in prison on that case, with the sentence to be served at the same time as his sentence for theft of government funds.
According to documents filed with the court, Eatmon conducted the government funds and identity thefts as follows:
He was the sole signatory on accounts for Executive Investors Group at Wells Fargo Bank. Between May 2011 and July 2012, about $1.7 million in U.S. Treasury checks were deposited into the EIG accounts. Wells Fargo seized $633,573 of that money in October 2011 and returned it to the treasury. The deposited checks were a combination of tax refund checks issued as a result of false federal income tax returns that had been filed, or legitimate but stolen refund checks.
Eatmon also sold two treasury checks to an undercover FBI agent. One of the checks was for $9,001 and the other for $11,330 and both were made payable to individuals other than Eatmon.
Eatmon obtained a $151,000 tax refund check made payable to a South Florida resident. He enlisted the help of a Wells Fargo employee to open an account in the name of an existing bank customer whose last name matched the name on the check. Eatmon had the check deposited into the new account and, after it cleared, either he or someone acting on his behalf, withdrew $87,240 from the account.
The FBI, IRS-CI and the Etowah County Drug Enforcement Unit investigated the cases, which Assistant U.S. Attorneys Davis Barlow and John B. Felton prosecuted.
Investment Advisor Sentenced to 20 Years in PrisonRead the Press Release
ALBANY, NEW YORK – Scott Valente, age 58, of East Greenbush, New York, was sentenced today to 20 years in prison, and ordered to pay about $8.2 million in restitution, after being convicted in May of securities fraud, mail fraud, and obstructing and impeding the internal revenue laws.
The announcement was made by United States Attorney Richard S. Hartunian; Shantelle P. Kitchen, Special Agent-in-Charge of the Internal Revenue Service-Criminal Investigation’s New York Field Office; and Andrew W. Vale, Special Agent-in-Charge of the Albany Division of the Federal Bureau of Investigation.
United States District Judge Gary L. Sharpe also ordered Valente, formerly of Schenectady, to serve 3 years of supervised release following his release from prison. The Securities and Exchange Commission (SEC) has also filed a civil enforcement action against Valente and his company The ELIV Group LLC in the United States District Court for the Southern District of New York.
“What Scott Valente did was terrible, both in terms of the financial ruin he caused and the emotional anguish he inflicted on his victims,” stated U.S. Attorney Richard S. Hartunian. “He stole several million dollars, improperly invested millions more, and lied to people who put their trust in him and gave him their life savings. These people are devastated. My Office and our agency partners are working hard to recoup as much money as possible for them. And as we have done for many years, we will continue to investigate and prosecute investment advisors who steal from their clients.”
“Today, Mr. Valente was held accountable for the harm he inflicted on the many investors who trusted him,” said Special Agent-in-Charge Shantelle P. Kitchen of IRS-Criminal Investigation. “Ultimately, this investigation succeeded in preventing Mr. Valente’s victims from sustaining additional losses and protecting potential investors from harm. Additionally, through his representations that he and ELIV were authorized to accept, hold and manage IRA accounts, Mr. Valente made the Internal Revenue Service an unwilling part of his investment fraud scheme. He subsequently learned how seriously IRS-Criminal Investigation takes attempts to impede and obstruct the tax laws.”
“This kind of fraud is an insidious act that involves not only criminality but a willingness to prey on others for personal gain,” said FBI Special Agent in Charge Andrew W. Vale. “The FBI is committed to working with its law enforcement partners to ensure people like Mr. Valente are held accountable for their misdeeds. The FBI is pleased to see justice for Mr. Valente’s victims.”
Valente, working out of Albany, Schenectady and Warwick, New York, operated an investment fraud scheme that began in December 2010 and ended on June 16, 2014.
Through his investment company The ELIV Group, LLC, Valente received more than $10.6 million from more than 100 individual investors, many of them residing in Upstate New York. He told them that he had achieved annual investment returns of 36.38%, 48.27%, 44.56% and 45.11% for the years 2010 through 2013, respectively. In fact, Valente lost money in each of those years.
Valente also took about $2.2 million in unauthorized management fees, which he used to enrich himself through cash withdrawals totaling $230,000, personal credit card payments totaling $443,000, and the purchases of real estate (including a $117,000 condominium in Vermont), $424,000 in home improvements, $35,000 worth of jewelry, and $20,000 worth of liquor. In addition to taking $2.2 million, Valente made substantial investments in non-public companies that will be difficult to liquidate, contrary to what he told investors he would do with their money.
Valente also falsely represented to more than 30 ELIV investors that he or his company were authorized to accept, hold and manage Individual Retirement Accounts (IRA), which get preferential treatment under U.S. tax law. In fact, neither Valente nor ELIV was authorized by the IRS to accept, establish or maintain IRA accounts. In an effort to obstruct and impede the IRS by preventing the IRS from learning of his unauthorized acceptance, holding and management of IRA accounts, Valente altered ELIV investment statements to make it appear as though ELIV had properly received certain investors’ IRA rollover investments, that ELIV was holding the investments as an IRA, and that there should be no taxable distributions to the ELIV investors.
ELIV ceased operations on June 16, 2014, when the SEC, in a separate civil proceeding, obtained a preliminary injunction enjoining ELIV’s operations and freezing its assets.
This case was investigated by Internal Revenue Service-Criminal Investigation and the Federal Bureau of Investigation, and was prosecuted by Assistant United States Attorney Rick Belliss.
Information: Federal Court ArraignmentsRead the Press Release
The United States Attorney’s Office announced that those persons listed below were arraigned before the U.S. Magistrate and the indictments handed down by the Grand Jury unsealed.
Appearing before U.S. Magistrate Ostby in Billings, on November 19, 2015 and entering pleas of Not Guilty were:
- CLAY DOUGLAS SIEMSEN, a 55-year-old resident of Lockwood, appeared on charges of conspiracy to possess with intent to distribute and to distribute methamphetamine, possession with intent to distribute methamphetamine, and distribution of methamphetamine. If convicted of the most serious charges contained in the indictment, SIEMSEN faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by the Federal Bureau of Investigation Task Force. PACER Case Reference. 15-138
- NOEL THOMAS WHITEMAN, a 38-year-old resident of Lodge Grass, appeared on charges of failure to register as a sexual offender. If convicted of the charge contained in the indictment, WHITEMAN faces 10 years in prison, $250,000 in fines and lifetime supervised release. The case was investigated by the United States Marshals Service. PACER Case Reference. 15-135
Appearing before U.S. Magistrate Ostby in Billings, on November 17, 2015 and entering pleas of Not Guilty were:
- RACHAEL RUIZ, a 30-year-old resident of Kalispell, appeared on charges of conspiracy to possess with intent to distribute methamphetamine and possession with intent to distribute methamphetamine. If convicted of the most serious charge contained in the indictment, RUIZ faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by the Federal Bureau of Investigation and the Drug Enforcement Administration. PACER Case Reference. 15-133
Appearing before U.S. Magistrate Ostby in Billings, on November 13, 2015 and entering pleas of Not Guilty were:
- BRUCE ROBERT LEWIS, JR., a 46-year-old resident of Pasadena, Texas, appeared on charges of felon in possession of a firearm. If convicted of the charge contained in the indictment, LEWIS faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. PACER Case Reference. 15-106
Appearing before U.S. Magistrate Johnston in Great Falls, on November 12, 2015 and entering pleas of Not Guilty were:
- SAUL VALENCIA, a 39-year-old resident of Mexico, appeared on charges of conspiracy to possess with intent to distribute and to distribute methamphetamine and possession with intent to distribute methamphetamine. If convicted of the most serious charge contained in the indictment, VALENCIA faces 40 years in prison, $5,000,000 in fines and 4 years supervised release. The case was investigated by the Russell Country Drug Task Force and the Havre Tri-Agency Task Force. PACER Case Reference. 15-78
Appearing before U.S. Magistrate Lynch in Missoula, on November 12, 2015 and entering pleas of Not Guilty were:
- MATTHEW ERIC BOUDREAU, a 21-year-old resident of Victor, appeared on charges of theft from a federal firearms licensee, possession of stolen firearms, and possession of a firearm not registered in the national firearms registration and transfer record. If convicted of the most serious charge contained in the indictment, BOUDREAU faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Ravalli County Sheriff’s Office. PACER Case Reference. 15-26
Appearing before U.S. Magistrate Lynch in Missoula, on November 9, 2015 and entering pleas of Not Guilty were:
- RICHARD WAYNE STROH, a 35-year-old resident of Missoula, appeared on charges of conspiracy to distribute methamphetamine and possession with intent to distribute methamphetamine. If convicted of the most serious charge contained in the indictment, STROH faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by the Federal Bureau of Investigation and the Montana Regional Violent Crime Task Force. PACER Case Reference. 15-31
Appearing before U.S. Magistrate Johnston in Great Falls, on November 2, 2015 and entering pleas of Not Guilty were:
- JOSEPH DEAN LEE, a 27-year-old resident of Wolf Point, appeared on charges of aggravated sexual abuse, assault with the intent to commit aggravated sexual abuse, and assault with the intent to commit abusive sexual contact. If convicted of the most serious charges contained in the indictment, LEE faces life in prison, $250,000 in fines and lifetime supervised release. The case was investigated by the Federal Bureau of Investigation and the Fort Peck Tribes Department of Law and Justice. PACER Case Reference. 15-63
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system so that you stay current and not miss any important developments in the case.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
Indiana man sentenced to 35 years in prison for producing child pornographyRead the Press Release
WASHINGTON – An Indiana man was sentenced today to 35 years in prison for producing child pornography, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Josh Minkler of the Southern District of Indiana.
Todd Chambers, 28, of Batesville, Indiana, pleaded guilty to nine counts of production of child pornography. U.S. District Judge Tanya Walton Pratt of the Southern District of Indiana presided over the change of plea hearing and sentencing.
In connection with his guilty plea, Chambers admitted that he produced and distributed via the Internet a series of images of child exploitation. Metadata in the images showed that Chambers produced them over the course of three months. In addition to these images, Chambers possessed thousands of other images of child exploitation on his digital camera, laptop computer, cell phone and other electronic devices.
The FBI and the Indiana State Police investigated the case, with assistance from the Batesville Police Department. Trial Attorney Leslie Williams Fisher of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Steve DeBrota of the Southern District of Indiana prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Indiana Man Sentenced to 35 Years in Prison for Producing Child PornographyRead the Press Release
An Indiana man was sentenced today to 35 years in prison for producing child pornography, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Josh Minkler of the Southern District of Indiana.
Todd Chambers, 28, of Batesville, Indiana, pleaded guilty to nine counts of production of child pornography. U.S. District Judge Tanya Walton Pratt of the Southern District of Indiana presided over the change of plea hearing and sentencing.
In connection with his guilty plea, Chambers admitted that he produced and distributed via the Internet a series of images of child exploitation. Metadata in the images showed that Chambers produced them over the course of three months. In addition to these images, Chambers possessed thousands of other images of child exploitation on his digital camera, laptop computer, cell phone and other electronic devices.
The FBI and the Indiana State Police investigated the case, with assistance from the Batesville Police Department. Trial Attorney Leslie Williams Fisher of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Steve DeBrota of the Southern District of Indiana prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
In Second Phase of Investigation, Law Enforcement Arrests 52 Additional Members and Associates of Various White Supremacist OrganizationsRead the Press Release
DALLAS — Following a law enforcement operation led by the Texas Department of Public Safety Criminal Investigations Division (DPS-CID) and the Dallas Police Department Criminal Intelligence Unit, 54 individuals, members and associates of various white supremacist organizations, have been charged with federal offenses stemming from their respective roles in a drug distribution conspiracy that operated in North Texas and elsewhere from January 2013 to November 2015. U.S. Attorney John Parker of the Northern District of Texas made the announcement today. Two of the 54 defendants remain fugitives.
This second phase of the investigation follows a related operation in 2014 in which 37 members and associates of various white supremacist organizations were arrested and charged with similar federal offenses, stemming from their role in a methamphetamine distribution conspiracy. All of those defendants were convicted; one remains a fugitive.
Defendants, all Texas residents, who are charged in this superseding indictment and who are in custody include:
Ramon Aguilar, III, aka “Nelson,” 26, of Dallas
Christopher Alexander, aka “Bear,” 43, of Dallas
William Lee Benham, 32, of Mesquite
Eric Scott Benson, aka “ESB,” 29, of Mesquite
Ronnie Mikel Brown, 39, of Dallas
Jonas Carrera, 36, of Dallas
Hugo Ivan Castaneda, aka “Takua,” 25, of Dallas
John Anthony Chavez Jr., aka “BJ,” 27, of Dallas
Justo Salvador Chavez Jr., aka “Junior,” 39, of Dallas
Micah Torrence Dees, 26, of Sherman
Abraham Dimas Jr., 41, of Dallas
Tina Wynette Easley, aka “Tina Wynette Fields” aka “Big Tina,” 43, of Seagoville
Crissy Lynn Evans, 28, of Richardson
Taylor Maxlynn Fletcher, 26, of Point
Joe Lee Foard, Jr., 46, of Denison
Michael William Getsinger, 30, of Rockwall
Alejandro Gonzalez, 20, of Dallas
Quincy John Goodson, aka “Kidd,” 34, of Scurry
Michael Thor Guinn, 28, of Jacksonville
Tommy Dare Hancock, aka “Big Tom,” 49, of Beaumont
David Lesley Holt, 54, of Mesquite
David Wayne Holt, 28, of Dallas
Brennan Nicole House, 22, of Sherman
Desirae Ann Houser, 24, of Princeton
Beau James Jarnagin, aka “Beau Jamey,” 39, of Dallas
Jeff Jeremy Johnston, aka “Slowpoke,” 42, of Mesquite
Kory Wade Kloecker, aka “Crawl,” 32, of Mesquite
Jimmy David Lance, 54, of Dallas
Samantha Ladell Largent, 25, of Cumby
Blake Allen Long-Rockey, 27, of Dallas
Ricardo Garcia Medina, 31, of Dallas
Benjamin Matthew Melton, 31, of Mesquite
Craig Don Mueller, 34, of Dallas
Brian Casey Mullins, 35, of Rockwall
Stacy Wayne Myers, 48, of Dallas
James Marshall Nation, 39, of Cumby
Wendy Renee Neal, 37, of Princeton
Mackenzie Nelson, 31, of Greenville
Raymond Anthony Nichols, aka “Ant,” 35, of Mesquite
Shanna Lynn Palmer, 32, of Seagoville
Christian Perez, 23, of Dallas
Francisco Manuel Radamez-Nava, aka “Ghost,” 31, of Mesquite
Jorge Ramirez, aka “Gucci,” “Jorge Ramirez-Martinez,” and “Jorge Alejandro” 31, of Mesquite
Bruce Chance Rash, aka “Chaos,” 37, of Dallas
John James Rumfield, 34, of Dallas
Jackie Lemonds Segura, 32, of Dallas
Brandon Kyle Smith, 31, of Mineola
Alicia Gale Tambourine, aka “Slimm,” 31, of Balch Springs
Jamie Lynn Tucker, 49, of Dallas
Troy Anthony Wallace, 46, of Mesquite
Roger Wayne Whitworth Jr., aka “Peanut,” 42, of Mesquite
John Fitzgerald Yates, aka “Po Boy,” 51, of Tyler (deceased)
This just-unsealed superseding indictment charges all of the above-listed defendants, with the exception of Benjamin Matthew Melton and Jorge Ramirez, with one count of conspiracy to possess with intent to distribute 500 grams or more of methamphetamine and one substantive count of possession of methamphetamine with the intent to distribute. Ronnie Mikel Brown, Tina Wynette Easley, Michael Thor Guinn, Tommy Dare Hancock, David Wayne Holt, Jeff Jeremy Johnston, and Benjamin Matthew Melton are also each charged with one count of felon in possession of a firearm. Jorge Ramirez is charged with one count of being an illegal alien in possession of a firearm.
According to the superseding indictment, the defendants were members of, associated with, or performed drug transactions with, various white supremacists organizations or individuals including the “Aryan Brotherhood of Texas” (ABT), the “Aryan Circle,” the “White Knights,” and the “Peckerwoods,” and they engaged in a conspiracy to distribute methamphetamine and other illegal narcotics throughout North Texas and elsewhere. Certain defendants used firearms to further their drug trafficking activities.
Despite their differences, the ABT, Aryan Circle, and White Knights gangs, along with the Peckerwoods, often collaborated with each other and with Mexican gangs and cartels for purposes of drug distribution or other illegal ventures. Peckerwood is a term used to describe an individual who, although not a member, shared a white supremacist ideology or aligned his or herself with these white supremacist gangs.
Up to 20 of the above-listed defendants were members or close associates of the ABT. Up to eight were members or close associates of the Aryan Circle. One was a member of the White Knights and one was a Peckerwood. Two were members of the La Familia drug cartel. Some of the defendants had familial relationships, some were engaged in romantic relationships, and some resided together, as outlined in the indictment.
The indictment alleges that from approximately January 2013 to November 2015, the defendants conspired together, and with others, to possess with intent to distribute 500 grams or more of methamphetamine. According to the indictment, the defendants arranged for the acquisition of methamphetamine and its distribution and delivery. They used stash houses or other locations to store the methamphetamine and acted as intermediaries and brokers to negotiate the acquisition, price, delivery and payment for the quantities of methamphetamine.
Each of the co-conspirators was linked to one another either directly or through another co-conspirator. Certain co-conspirators acted as hubs for narcotics trafficking, supplying methamphetamine to numerous other co-conspirators. Throughout the investigation, 40 pounds of methamphetamine and 22 firearms were seized.
A federal indictment is an accusation by a grand jury. A defendant is entitled to the presumption of innocence unless proven guilty. If convicted, however, the statutory maximum penalty for each count of the drug trafficking conspiracy is life in federal prison and millions of dollars in fines. The statutory maximum penalty for each substantive count of possession of methamphetamine is 20years in federal prison. The maximum statutory penalty for being a felon in possession of a firearm or for being an illegal alien in possession of a firearm is 10 years in federal prison. The indictment also includes a forfeiture allegation that would require the defendants, upon conviction, to forfeit all real or personal property derived from the proceeds of their offense.
The investigation is being led by the DPS-CID Gang Unit and the Dallas Police Department Criminal Intelligence Unit with assistance from the Garland Police Department Neighborhood Police Officer Unit, the Collin County Sheriff’s Office, the Mesquite, Sherman, Denison and Sulphur Springs Police Departments and U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI).
Assistant U.S. Attorney P. J. Meitl is prosecuting.
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Husband and Wife Indicted for Filing False Retaliatory Liens Against Two Federal Judges and Other Government EmployeesRead the Press Release
A federal grand jury sitting in Eugene, Oregon, returned a superseding indictment yesterday against a couple previously residing in Coquille, Oregon, charging them with one count of conspiracy to file false retaliatory liens and four counts of filing false retaliatory liens against government employees for performing their official duties, Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division announced. The original indictment was returned on March 18.
According to the superseding indictment, Ronald D. Joling and Dorothea Joling were convicted in October 2014 on various criminal charges related to their federal income taxes. While on pretrial release in that case, the Jolings filed false retaliatory liens claiming that multiple federal employees each owed the Jolings $100.003 million. The federal employees against whom these false liens were filed included two federal judges assigned to the criminal tax case, the clerk of the court for the U.S. District Court for the District of Oregon and the Assistant U.S. Attorney who prosecuted the criminal tax case. The liens were publicly filed with the Secretary of State for the state of California.
The Jolings were scheduled to be sentenced in the criminal tax case on April 22, but failed to appear in court. They were fugitives until arrested on Oct. 5, in Flagstaff, Arizona. The Jolings are currently in the custody of the U.S. Marshals Service. Arraignment in the retaliatory lien case is scheduled for Nov. 23, before Judge Michael J. McShane. Sentencing in the criminal tax case is scheduled for Dec. 10, before Chief Judge Ann L. Aiken. If convicted in the retaliatory liens case, the Jolings each face a statutory maximum sentence of 40 years in prison and a $1 million in fines.
An indictment merely alleges that a crime has been committed and a defendant is presumed innocent until proven guilty beyond a reasonable doubt.
This case is being investigated by the Internal Revenue Service–Criminal Investigation, and prosecuted by Senior Litigation Counsel Jen E. Ihlo and Trial Attorney Thomas A. Agnello of the Tax Division.