Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
17 November 2015
Washington Woman Sentenced in $2 Million Fraud SchemeRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that Pepe Anetipa has been sentenced by United States District Court Judge Sharon Gleason to serve 30 months in prison for filing false tax returns that cheated the United States Treasury out of more than $2 million.
Anetipa, originally of American Samoa and now a resident of Washington, previously pled guilty to 28 counts of making false, fictitious, and fraudulent claims against the government. As part of her plea, Anetipa admitted filing false tax returns on behalf of residents of American Samoa claiming thousands of dollars in refunds to which they were not entitled.
Upon being released from prison, Anetipa will be on supervised release for three years. As part of her sentence, she was ordered to pay restitution to the United States Treasury in the amount of $202,859 – the total amount of refunds corresponding to the counts of conviction. The overall amount of money paid out by the Treasury as a result of Anetipa’s scheme, however, was much higher – approximately $2 million. As part of her sentence, Anetipa will also have to complete 40 hours of community service, which Judge Gleason recommended she spend focusing on educating others in American Samoa about the illegality of tax schemes like hers.
According to Assistant U.S. Attorney Stephanie C. Courter, who prosecuted the case, Anetipa’s fraud scheme began in 2010 when she began filing false 2009 tax returns with the Internal Revenue Service (IRS). She filed on behalf of residents of American Samoa, all of whom were not required to file tax returns with the IRS but were instead required to file with the taxing authority in American Samoa. On each return, she falsely claimed that the IRS had withheld federal taxes from her clients and thus were due a refund.
In approximately July 2011, Anetipa moved from American Samoa to Anchorage, Alaska. Once in Alaska, she obtained a State of Alaska business license and opened a tax preparation business –Triple-H Tax and Services. Through her business, Anetipa continued to file false tax returns for residents of American Samoa.
Anetipa’s scheme was multi-faceted, involving much more than simply filling out a Form 1040. Before completing the returns themselves, Anetipa first took information from Forms W-2AS (forms specific to residents of American Samoa) and used it to create false Forms W-2 claiming her clients earned money outside of American Samoa. Anetipa also changed the addresses on the Forms W-2 to either a Texas or an Alaska address instead of addresses in Pago Pago, American Samoa. The altered Forms W-2 gave the tax returns the false appearance that the income was earned in the United States and that Anetipa’s clients had federal tax withholding paid into the tax system. In fact, no one earned any income in the United States, and there had been absolutely no withholding.
After creating the false Forms W-2, Anetipa then transferred the information onto tax returns on which she claimed her clients were owed significant refunds. In order to increase the refunds, Anetipa also encouraged her clients to find dependents to include on their returns. The addition of dependents allowed taxpayers to claim that they were entitled to the Earned Income Tax Credit (EITC) even though they were in fact entitled to $0 from the United States Treasury. According to testimony and evidence received at sentencing, the IRS ultimately linked Anetipa to the preparation and filing of hundreds of false returns that resulted in the payment of approximately $2 million in false refunds. For her efforts, Anetipa was either paid a flat fee of $500 per false return or, later in the scheme, began splitting the refunds between her clients’ bank accounts and her own accounts, sometimes taking thousands of dollars from a single refund.
In sentencing Anetipa, Judge Gleason focused on the seriousness of the offense and the need to promote respect for the law. She also noted the significant amount of money involved – more than $2 million – and found that greed had at some point become a factor in Anetipa continuing her scheme. Judge Gleason rejected Anetipa’s argument that the fact that some of the money went to people in need in American Samoa justified stealing from the Treasury. Ultimately, in announcing the 30-month sentence, Judge Gleason found it important to deter others in the future from committing similar crimes, stating that one way to achieve deterrence is to sentence offenders in a way that sends a message that these types of crimes will not be tolerated.
“By filing these bogus tax returns, Pepe Anetipa effectively stole from each and every honest taxpayer,” stated Special Agent in Charge Teri Alexander of IRS Criminal Investigation. “Tax refund fraud is our top priority. IRS CI is duty bound to track down anyone who prepares or files a false tax return claiming a refund to which they are not due.”
The case was prosecuted by Assistant U.S. Attorneys Stephanie Courter and Thomas Bradley of the U.S. Attorney’s Office for the District of Alaska. The case was investigated by the Internal Revenue Service Criminal Investigation (IRS-CI).
Upper Marlboro Man Pleads Guilty to Three Bank Robberies – Stealing A Total of More Than $164,000Read the Press Release
Baltimore, Maryland – Derek Lamar Tompkins, age 20, of Upper Marlboro, Maryland pleaded guilty today to bank robbery and forcing a bank employee to accompany him without the employee’s consent; and to brandishing 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 Kevin Perkins of the Federal Bureau of Investigation; Chief Timothy Bozman of the Princess Anne Police Department; Chief Mark A. Magaw of the Prince George’s County Police Department; and Chief James W. Johnson of the Baltimore County Police Department.
According to Tompkins’ plea agreement, from February through August 2014, Tompkins robbed three banks, stealing a total of $164,615.05.
Specifically, on February 11, 2014, Tompkins entered the BB&T Bank in Princess Anne, Maryland, and passed the teller a note that read, “I have been watching you, I know you have $10,000 in cash. Give me the money or I will shoot you or kill you.” Fearing for her safety, the teller emptied her drawer, handing $1,539.05 to Tompkins who fled the bank.
On May 21, 2014, Tompkins and a second robber entered the M&T Bank located in Largo, Maryland. The robbers went to the victim employee’s office and demanded money and told her that they had a weapon. After the victim told them that she did not have any money, they ordered her to open the door to the teller line. Tompkins and the other robber demanded money from two victim tellers, and ordered them to open a small safe. Tompkins and the second robber took approximately $84,120, and fled the bank.
On August 18, 2014, Tompkins and a second robber entered the First Mariner Bank in Owings Mills, Maryland, wearing masks and hoods. Tompkins was wielding a 9 mm handgun, which he and the second robber passed brandished as they passed the gun back and forth between them. The robbers ordered the tellers to open their drawers, and Tompkins ordered one of the employees, at gun point, to get the key and move to the area where the vault was located. Once at the vault, Tompkins ordered her to open the vault and then he removed cash from the vault. Tompkins and the second robber then ordered the bank employees into the vault and closed the door. The robbers fled the bank in two separate vehicles with $78,956 of the bank’s money.
Police in the area were able to identify and stop the vehicle Tompkins had fled in on August 18. From the vehicle, officers located a large amount of cash (with First Mariner straps), the 9 mm handgun used during the robbery, as well as clothes, a pair of gloves, a mask, and two hooded sweatshirts, all of which matched the description of the items worn during the armed bank robbery. After being advised of his rights, Tompkins admitted that he participated in the armed robbery of the First Mariner, that he had entered with the handgun, and that he was the one who had entered the vault with the victim employee to get the money.
A subsequent trace of the 9 mm handgun showed that it had been stolen from an off duty Metropolitan (DC) Police Officer in Washington, DC, on May 6, 2014.
Tompkins faces a minimum sentence of 17 years in prison, and up to life in prison for forcing the employee to accompany him during the bank robbery and for brandishing a firearm during the robbery. U.S. District Judge James K. Bredar has scheduled sentencing for February 16, 2016 at 11:00 a.m.
United States Attorney Rod J. Rosenstein commended the FBI, Princess Anne Police Department, Prince George’s County Police Department, and the Baltimore County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Judson T. Mihok and Aaron S. J. Zelinsky, who are prosecuting the case.
USPlabs and Corporate Officers IndictedRead the Press Release
DALLAS — An 11-count indictment has been unsealed today against USPlabs LLC, a Dallas firm that formerly manufactured highly popular workout and weight loss supplements. The indictment charges USPlabs, S.K. Laboratories Inc. and their operators with a variety of charges related to the sale of those products. The announcement was made today at a news conference in Washington, D.C. in which officials announced a nationwide sweep of dietary supplement makers and marketers.
Jacobo Geissler, 39, of University Park, Texas, the CEO of USPlabs; Jonathan Doyle, 37, of Dallas, the president of USPlabs; Matthew Hebert, 37, of Dallas, responsible for product packaging design at USPlabs; Kenneth Miles, 69, of Panama City, Florida, the quality assurance executive in charge of compliance at USPlabs; S.K. Laboratories, Inc.; Sitesh Patel, 32, of Irvine, California, the vice president of S.K. Laboratories; and Cyril Willson, 34, of Gretna, Nebraska, a consultant to USPlabs, are charged with various counts associated with the unlawful sale of dietary supplements. Additionally, USPlabs, Geissler, Doyle and Hebert are charged with obstruction of a Food and Drug Administration (FDA) proceeding and conspiracy to commit money laundering.
All defendants, with the exception of Doyle and Miles were arrested earlier today. Along with the arrests, FDA and Internal Revenue Service (IRS) Criminal Investigation (CI) special agents seized assets in dozens of investment accounts, real estate in Dallas County, and a number of luxury and sports cars.
The indictment alleges that USPlabs engaged in a conspiracy to import ingredients from China using false certificates of analysis and false labeling and then lied about the source and nature of those ingredients after it put them in its products. According to the indictment, USPlabs told some of its retailers and wholesalers that it used natural plant extracts in products called Jack3d and OxyElite Pro, when in fact it was using a synthetic stimulant manufactured in a Chinese chemical factory.
The indictment also alleges that the defendants sold some of their products without determining whether they would be safe to use. To the contrary, as the indictment notes, the defendants knew of studies that linked the products to liver toxicity.
The indictment further alleges that USPlabs and its principals told FDA in October 2013 that it would stop distribution of OxyElite Pro, once the product had been implicated in an outbreak of liver injuries. The indictment alleges that, despite this promise, USPlabs engaged in a surreptitious, all-hands-on-deck effort to sell as much OxyElite Pro as it could as quickly as possible. It was sold at dietary supplement stores across the nation.
An indictment is an accusation by a federal grand jury, and a defendant is entitled to the presumption of innocence unless proven guilty.
Upon conviction, however, the maximum statutory penalties are: conspiracy to commit wire fraud and each wire fraud count – 20 years and a $250,000 fine; conspiracy to commit money laundering – 20 years and a $500,000 fine, or twice the value of property involved in the transaction; obstruction of an agency proceeding and conspiracy to introduce misbranded food – five years and a $250,000 fine; introduction of adulterated food into interstate commerce with an intent to defraud and mislead – three years and a $10,000 fine; and introduction of misbranded food into interstate commerce and the introduction of adulterated dietary supplement into interstate commerce – one year and a $10,000 fine.
The FDA and IRS CI investigated the case. Assistant U.S. Attorneys Errin Martin and P. J. Meitl of the Northern District of Texas and Trial Attorneys David Sullivan and Patrick Runkle of the Justice Department’s Consumer Protection Branch are in charge of the prosecution.
# # #
Two plead guilty in multi-state heroin trafficking operation based in Baltimore, MarylandRead the Press Release
MARTINSBURG, WEST VIRGINIA – Jared Michael Belanger, 36, of Martinsburg, and Brandon Kidwell, 24, of Berkeley Springs, West Virginia, were convicted of heroin trafficking in federal court this week, United States Attorney William J. Ihlenfeld, II, announced.
Belanger and Kidwell each participated in a heroin trafficking scheme based in Baltimore, Maryland. As part of the operation, heroin was repeatedly transported across state lines to various locations in Maryland, West Virginia, Virginia, and Pennsylvania for redistribution and sale. The operation was interrupted by a 163-count federal indictment encompassing 41 defendants.
The defendants each pled guilty this week to “Interstate Travel in Aid of Racketeering.” They each face up to five 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. Attorneys Anna Krasinski and Paul Camilletti prosecuted the cases on behalf of the government. The Eastern Panhandle Drug and Violent Crimes Task Force, a HIDTA-funded initiative, and the Federal Bureau of Investigation led the inquiry.
U.S. Magistrate Judge Robert W. Trumble presided.
Two Drug Dealers Sentenced to Prison for Trafficking Cocaine out of Roslindale RestaurantRead the Press Release
BOSTON – Two men were sentenced on Friday, Nov. 13, 2015, for their roles in a large-scale cocaine trafficking ring run out of a Roslindale restaurant.
Iskender Kapllani, of Dedham, was sentenced by U.S. District Court Judge Richard G. Stearns to 188 months in prison and five years of supervised release, and Tony Bedini, of Rancho Cucamonga, Calif., was sentenced to 135 months in prison and three years of supervised release. The men were convicted following a three-week jury trial for conspiracy to distribute five kilograms or more of cocaine.
A two-year investigation revealed that Kapllani, an Albanian national, used his restaurant, the Arbri Café in Roslindale, as a base for his cocaine trafficking organization. Many members of the conspiracy, including Bedini who transported large quantities of cocaine from California to Kapllani ASSOCIATES in Boston, were either from or had ties to Albania.
At trial, prosecutors introduced kilograms of cocaine seized from Kapllani; recordings of Kapllani and other members of the conspiracy; video surveillance at the Arbri Café of meetings between Kapllani and members of the conspiracy; phone, travel and financial records showing that Kapllani, Bedini and other members of the conspiracy were in regular contact; drug-related intercepts from a wiretap on Kapllani’s cellphone; and the testimony of cooperating witnesses and defendants who described how for nearly two years, Bedini and his California-based partner shipped multiple kilograms of cocaine to Kapllani and other members of his crew for distribution at the Arbri Cafe.
At Friday’s sentencing hearing, the prosecutor argued the seriousness of the offense and Kapllani’s role in managing others in the conspiracy. Judge Stearns agreed and noted: “I just add one additional thought, which is, to me, puzzling, that Mr. Kapllani, having been offered asylum by this country, chose to repay the generosity by poisoning his fellow citizens with the distribution of drugs. I think that, in a sense, almost aggravates the nature of the crime itself.”
United States Attorney Carmen M. Ortiz; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police, made the announcement today. Significant assistance was also provided by the Homestead (Florida) Police Department and Drug Enforcement Administration, Los Angeles Division. The case was prosecuted by Assistant U.S. Attorney Christopher Pohl of Ortiz’s Organized Crime and Gang Unit.
Two Brooklyn, New York, Men Sentenced to Prison for Traveling to New Jersey to Violently Extort Divorce Consent from Recalcitrant HusbandRead the Press Release
TRENTON, N.J. – Two Brooklyn, New York, men were each sentenced today to more than three and a half years in prison for crossing state lines as part of a plan to violently coerce a recalcitrant husband to grant his wife a religious divorce, U.S. Attorney Paul J. Fishman announced.
David Hellman, 33, and Simcha Bulmash, 32, were sentenced to 44 and 48 months in prison, respectively. Both defendants previously pleaded guilty before U.S. District Judge Freda L. Wolfson to separate informations charging them each with one count of traveling in interstate commerce to commit extortion. Judge Wolfson imposed both sentences today in Trenton federal court.
According to documents filed in this case and statements made in court:
On Oct. 9, 2013, Hellman, Bulmash and a group of conspirators – including Avrohom Goldstein, 36, Moshe Goldstein, 32, Jay Goldstein, 61, Binyamin Stimler, 40, Sholom Shuchat, 31, all of Brooklyn, and Ariel Potash, 42, of Monsey, New York – traveled from New York to a warehouse in Edison, New Jersey, with the intent of forcing a Jewish husband to give his wife a “get,” a document which, according to Jewish Law, must be presented by a husband to his wife to effect their divorce.
Hellman and Bulmash admitted that when they arrived at the warehouse, the group met with an individual who, unbeknownst to them, was an undercover FBI agent posing as the husband’s brother in law. Hellman and Bulmash admitted that they discussed a plan and prepared to confine, restrain and threaten the victim.
The group was then arrested by a team of FBI agents and charged by criminal complaint – along with rabbis Mendel Epstein, 70, of Lakewood, New Jersey, and Martin Wolmark, 57, of Monsey – in connection with the scheme.
Hellman and Bulmash also admitted that on Aug. 22, 2011, they went to a residence in Brooklyn where they restrained, assaulted and injured another recalcitrant husband and his roommate in an attempt to extort a divorce from the husband.
In addition to the prison term, Judge Wolfson sentenced both Hellman and Bulmash to serve two years of supervised release.
Avrohom Goldstein, Moshe Goldstein, Potash and Shuchat each pleaded guilty to one count of traveling in interstate commerce to commit extortion. Moshe Goldstein was sentenced yesterday to four years in prison. Avrohom Goldstein, Potash and Shuchat are scheduled for sentencing Nov. 19, 2015. Wolmark, who pleaded guilty to conspiracy to travel in interstate commerce to commit extortion, is scheduled for sentencing on Dec. 14, 2015.
Epstein, Jay Goldstein and Stimler were all convicted at trial on April 21, 2015. Epstein, who was convicted of conspiracy to commit kidnapping, is scheduled for sentencing on Dec. 15, 2015. Stimler and Jay Goldstein, both convicted of conspiracy to commit kidnapping and attempted kidnapping, are scheduled for sentencing on Dec. 15, 2015 and Dec. 16, 2015, respectively.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark, for the investigation leading to today’s sentencing. He also thanked the Lakewood, New Jersey, Police Department for its role.
The government is represented by Assistant U.S. Attorneys R. Joseph Gribko and Sarah Wolfe of the U.S. Attorney’s Office in Trenton.
Defense counsel:
Hellman: Michael Bachner Esq., New York
Bulmash: Robert C. Gottlieb Esq., New York
Tuscaloosa Mail Carrier Pleads Guilty to Accepting Bribes to Deliver Drug PackagesRead the Press Release
BIRMINGHAM – A Tuscaloosa postal carrier pleaded guilty Monday in federal court to accepting bribes to deliver packages of marijuana, announced U.S. Attorney Joyce White Vance, FBI Special Agent in Charge Roger C. Stanton and U.S. Postal Inspection Service Inspector in Charge Adrian Gonzalez.
JOCELIN LATRICE BETTS, 28, of Tuscaloosa, entered her guilty plea Monday before U.S. District Judge L. Scott Coogler to one count each of conspiracy to distribute marijuana and being a public official who accepted a bribe to deliver the mail. No sentencing date has been set.
According to her plea agreement with the government, Betts provided two Northport addresses in June and July to an FBI informant for use in delivering packages containing marijuana. Betts retrieved the packages from those addresses and accepted at least $300 for delivering two of them to the informant or a drug dealer who had introduced the source to Betts.
Betts faces a maximum sentence of five years in prison and a $1 million fine on the marijuana distribution charge and a maximum sentence of two years in prison and a $250,000 fine for the bribery of a public official charge.
The U.S. Postal Inspection Service, FBI and the Tuscaloosa Police Department investigated the case, which Assistant U.S. Attorney John B. Felton is prosecuting.
Three men face cocaine distribution chargesRead the Press Release
Three men were indicted today on charges that they violated federal drug law, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio.
Indicted are: Dockery Cleveland, 36; Menford McCain, 33, and Larone Williams, 45.
Count one of the indictment charges the defendants with conspiracy to possess with the intent to distribute more than five kilograms of cocaine. County two charges Dockery Cleveland and Larone Williams with attempting to possess with the intent to distribute more than five kilograms of cocaine. Count three charges the defendants with attempting to possess with the intent to distribute more than five kilograms of cocaine.
If convicted, the defendants' sentence will be determined by the court after review of factors unique to this case, including the Defendants' prior criminal record, if any, the defendants' ro le in the offenses and the unique characteristics of the vio lations. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The case is being prosecuted by Assistant U.S. Attorney Daniel J. Riedl. The ninvestigation was conducted by the Drug Enforcement Administration, Youngstown, Ohio.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
Three Konawa Men, Seminole Woman Plead Guilty to Methamphetamine ConspiracyRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that BRODIE ROPE BOOTH, age 40, JASON PAUL NUNLEY, age 40 and MASON NUNLEY, age 23, all of Konawa, Oklahoma and BOBBI NICOLE THOMAS, age 36, of Seminole, Oklahoma, pled guilty to CONSPIRACY, in violation of Title 21, United States Code, Section 371, punishable by not more than 5 years imprisonment, up to a $250,000.00 fine or both.
The Informations filed, alleged that beginning in or about May and June, 2015, and continuing until on or about July 29, 2015, in the Eastern District of Oklahoma, the defendants, did knowingly and intentionally conspire, confederate and agree with others both known and unknown to commit offenses against the United States, namely, distribution of methamphetamine.
The charges arose from an investigation by the McAlester Police Department, District 18 District Attorney’s Drug Task Force, Seminole Nation Lighthorse Police, Oklahoma Highway Patrol, Seminole County Sheriff’s Office, Seminole Police Department, Oklahoma Bureau of Narcotics, United States Marshal Service and the Drug Enforcement Administration.
The Honorable Kimberly E. West, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the guilty pleas and ordered the completion of presentence reports. Sentencing hearings will be scheduled following their completion. The defendants will remain in the custody of the United States Marshal Service pending sentencing.
Assistant United States Attorney Shannon Henson represented the United States.
Third California Resident Sentenced to Prison for Helping to Transport Heroin Across the CountryRead the Press Release
SCRANTON--The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 27-year-old California resident was sentenced to 57 months in prison today by Senior U.S. District Court Judge Richard P. Conaboy in Scranton, for possessing with intent to distribute more than one kilogram of heroin.
According to United States Attorney Peter Smith, the defendant, Yolanda Barreto-Rincon, a Mexican national who resided in Fresno, California at the time of the offense, previously admitted to transporting heroin from California to the Mt. Pocono area of Monroe County in July 2014.
Barreto-Rincon was indicted by a federal grand jury in July 2014, as a result of an investigation by the Drug Enforcement Administration and the Pennsylvania State Police.
Judge Conaboy ordered Barreto-Rincon to serve two years on supervised release following her prison sentence. Barreto-Rincon also faces possible deportation.
Previously, Judge Conaboy sentenced co-defendants Jose Rosario Huizar-Rios to 46 months in prison and Livier Cantor-Huizar to 41 months in prison. One other defendant has entered a guilty plea in the case and is awaiting sentencing.
The case was prosecuted by Assistant U.S. Attorney Francis P. Sempa.
# # #
Suspected Gang Member Charged with Gun and Drug 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 Darmetrius Braggs, 18, of Buffalo, NY, was charged by criminal complaint with possession with intent to distribute marijuana and possession of a firearm in furtherance of drug trafficking activity. The charges carry a mandatory minimum penalty of five years, a maximum of life and a $1,000,000 fine.Assistant U.S. Attorney Brendan T. Cullinane, who is handling the case, stated that according to the complaint, Buffalo Police officers received information that the defendant robbed a Canisius College student at gun point on October 30, 2015 on Blaine Avenue in Buffalo. During the investigation, officers learned that Braggs would be at a party on Freund Avenue in Buffalo on November 7, 2015. Officers obtained an arrest warrant for Braggs charging him with Armed Robbery in the 1st Degree.
On November 7, 2015, officers contacted Braggs by cellular telephone and arranged an undercover purchase of marijuana. The defendant told the officers to meet him near Genesee Street and Freund Avenue in Buffalo to purchase the marijuana. As officers arrived at the location, Braggs fled on foot. Officers located the defendant inside 22 Freund Avenue. Officers also found a cellular telephone and multiple vials of what appeared to be marijuana near the rear entrance of the residence. In addition, officers also recovered a loaded pistol in the back yard of 22 Freund Avenue.
The pistol recovered by officers resembles a firearm the defendant posed with multiple times on social media websites.
The defendant appeared before U.S. Magistrate Judge Jeremiah J. McCarthy this afternoon for a detention hearing. He is being held pending continuation of today’s hearing on November 20, 2015. In moving for detention, the Government presented evidence that Braggs is a suspected member of the OTC (Only the Circle) Gang operating in Buffalo. If anyone has any information regarding this gang, please call police.
The complaint is the result of an investigation by the Buffalo Police Department, under the direction of Commissioner Daniel Derenda and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Delano A. Reid, New York Field Division.
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.
Smuggler Gets Enhanced SentenceRead the Press Release
McALLEN, Texas ‐ Oscar Ivan Romero-Martinez, 33, of Tamaulipas, Mexico, has been ordered to federal prison for nearly six years as a result of his conviction of harboring undocumented aliens, announced U.S. Attorney Kenneth Magidson. Romero pleaded guilty Aug. 6, 2015.
Today, U.S. District Judge Randy Crane sentenced Romero to 71 months imprisonment. The sentence was enhanced as the court took into consideration the testimony of a female undocumented alien from Guatemala whom Romero sexually assaulted on more than one occasion while he harbored her at a location in Mission. The court also considered the total number of aliens he had harbored at the apartment and that a co-conspirator had brandished a dangerous weapon while the aliens were being harbored, among other factors.
On or about June 30, 2015, Border Patrol agents were conducting surveillance at an apartment complex in Mission when they observed a parked car that had been reported stolen out of Edinburg. Consequently, they notified local authorities who responded to the location and soon encountered Romero. He fled on foot, but was subsequently apprehended. A total of 16 undocumented aliens were ultimately discovered in one of the apartments where Romero had been harboring them.
During the course of the investigation, authorities learned that Hector De Leon-Ramirez had transported the female undocumented alien from Brownsville to Mission. He was subsequently charged with harboring additional undocumented aliens in a building in Mission and pleaded guilty Sept. 2, 2015. De Leon, 44, a citizen of Mexico who held permanent resident alien status and was living in Penitas, later received a sentence of 18 months imprisonment.
The investigation leading to the charges was conducted by Homeland Security Investigations, Border Patrol and Edinburg Police Department. Assistant U.S. Attorney Linda Requénez prosecuted the case.
Seminole Man Arrested for Making Telephonic Threat to Firebomb Islamic Center of Pinellas CountyRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces the arrest and issuance of a criminal complaint charging Martin Alan Schnitzler (43, Seminole) with making a telephonic threat to kill, injure, or intimidate using fire or an explosive. If convicted, Schnitzler faces a maximum penalty of 10 years in federal prison.
According to court documents, during the evening of November 13, 2015, Schnitzler left a voicemail message at the telephone number for the Islamic Center of Pinellas County, which is located in Pinellas Park. During that voicemail, Schnitzler said he was calling in reference to the recent terrorist attacks in Paris, France, and stated, among other things, that he was going to go to the Islamic Center and “firebomb you and shoot whoever is there.” Agents with the FBI’s Joint Terrorism Task Force arrested Schnitzler earlier today.
A criminal complaint is merely a charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Federal Bureau of Investigation’s Joint Terrorism Task Force. It will be prosecuted by Assistant United States Attorney Daniel George.
Selby Man Pleads Guilty to Sexual Exploitation of a Child and Distribution of Material Involving the Sexual Exploitation of MinorsRead the Press Release
United States Attorney Randolph J. Seiler announced that Christopher R. Jansen, age 35, of Selby, South Dakota, appeared before United States District Judge Roberto A. Lange on November 17, 2015, and pled guilty to a Superseding Indictment charging him with Sexual Exploitation of a Child and Distribution of Material Involving the Sexual Exploitation of Minors.
The maximum penalty upon conviction is up to 50 years in prison and/or a $250,000 fine, a period of supervised release of five years up to life, $200 in special assessments, and restitution.
The defendant was an attorney who has worked in central South Dakota. He lived and worked in Walworth County, where he maintained a law firm in Mobridge and a residence in Selby. He was the Walworth County State’s Attorney from approximately 2009 to 2012. The defendant has had a professional attorney-client relationship with a family from central South Dakota, and the minor victims identified in the Superseding Indictment are members of that family. He represented the family on family law related matters. The defendant befriended the client’s family and developed a relationship with the minors. The defendant visited their home, the family visited the defendant’s home, and there were situations where the defendant stayed overnight with the children.
Regarding the charge of Sexual Exploitation of a Child, the defendant engaged in repeat acts of sex with one of the children. The defendant had sexual encounters with the child for approximately 2 years. The defendant videotaped about 8 of these encounters, and he maintained these videos on his media within his Selby home. The defendant also produced 6 to 7 images of these encounters and maintained those images on his computer media at his home. The defendant engaged in other sexual encounters with another minor in his client’s family, and he produced videos and images related to sexual acts and sexual contact with at least two of the minors.
The defendant refers to himself as a pedophile and indicated he has been dealing with his attraction to and acting out upon minors for a number of years. The defendant knows his attraction to minors is illegal. He loses control at times and that is when he molests minors. Sometimes he satisfies his desire for children by looking at child pornography.
Regarding the charge of Distribution of Material Involving the Sexual Exploitation of Minors, the defendant was a member of a website that is used to distribute child pornography. The website is an online bulletin board whose primary purpose is the advertisement and distribution of child pornography. The website requires its users to continually upload child pornography in order to gain and keep membership. Since at least December 2013, the defendant was a member of the website and has himself distributed materials containing child pornography, including both materials that involve the family, as well as other child pornography. On the website, the defendant indicated he was interested in boys in the age range of 5 to 12 years old. The defendant used an image of his client’s child as his avatar picture on the website. Law enforcement officers observed images available on the website which establish that the defendant shared images of his client’s child, and the distribution of those materials affected interstate and foreign commerce and were distributed by the use of a computer. The defendant came to possess other images and videos of child pornography as he liked to view images and videos of prepubescent males. The defendant last utilized this child pornography sharing website on approximately Sunday, July 27, 2014, before his arrest by state and federal law enforcement officers two days later on July 29, 2014.
“Some of the most important work we do is prosecuting child pornography cases. These are vicious and dangerous crimes, committed by dark and demonized individuals,” said Seiler. “This case was made even more disturbing by the fact that Jansen was a trusted professional who took advantage of his client’s family, and groomed those children to be his victims. His admission of guilt will take one more predator off the streets.”
The investigation is being conducted by the Federal Bureau of Investigation, the South Dakota Division of Criminal Investigation, with assistance from the Walworth County Sheriff’s Office and the Mobridge Police Department. Assistant U.S. Attorney Tim Maher and Keith Becker, a Trial Attorney with the Child Exploitation and Obscenity Section of the Department of Justice, are prosecuting the case.
On September 25, 2015, Jansen was sentenced in Hughes County state court to serve 50 years in prison for two separate convictions of first degree rape.
A presentence investigation report was ordered and a sentencing date will be set in Pierre, South Dakota. The defendant was remanded to the custody of the U.S. Marshals Service pending further hearings.
Sandpoint Man Sentenced for Unlawful Gun PossessionRead the Press Release
COEUR D'ALENE - Thomas Wade Callen, 52, of Sandpoint, Idaho, was sentenced today in United States District Court to 24 months in prison followed by three years of supervised release for unlawful possession of firearms, U.S. Attorney Wendy J. Olson announced. Senior U.S. District Judge Edward J. Lodge also ordered Callen to serve 12 months in prison for violating his supervised release in a previous case. Callen pleaded guilty to the charge on August 18, 2015.
According to court documents, Callen admitted that although he knew he was prohibited from possessing firearms due to his previous felony convictions, he still was in possession of five firearms. Callen explained that he was teaching his girlfriend’s children gun safety when he possessed the firearms. Judge Lodge reminded Callen that as a felon he cannot possess firearms for any reason. The firearms Callen possessed will be forfeited.
The case was investigated by North Idaho Violent Crimes Task Force (NIVCTF).
The case was prosecuted as part of Idaho’s Project Safe Neighborhoods Program, which seeks to reduce gun violence in Idaho.
San Diego Pharmacy Owners Pay $750,000 to Resolve Drug Diversion AllegationsRead the Press Release
Assistant U.S. Attorney Dylan M. Aste (619) 546-7621
NEWS RELEASE SUMMARY – November 17, 2015
SAN DIEGO – United States Attorney Laura E. Duffy announced today that a group of San Diego pharmacies and their owners have paid $750,000 to the federal government to resolve allegations that they mishandled significant amounts of highly addictive and frequently abused prescription narcotics, as well as ephedrine or pseudoephedrine products.
The settlement is with Park Medical Pharmacy, Inc., and owners Joseph Grasela and John Grasela. The Graselas and Park Medical Pharmacy, Inc. do business as Medical Center Pharmacy. They operate a dozen storefront pharmacies under various names such as Galloway Medical Center Pharmacy, Community Medical Center Pharmacy, and Medical Center Pharmacy.
The settlement arises from a U.S. Drug Enforcement Agency (“DEA”) investigation into suspected illegal activity at Medical Center Pharmacy. Based on DEA’s inventory audits, inspections, and other investigative activities, the United States asserts that Medical Center Pharmacy committed multiple violations of the Controlled Substances Act (“CSA”).
The alleged violations include diversion of a significant amount of controlled substances, failure to control the pharmacies’ inventory of controlled substances, and failure to maintain required records of the pharmacies’ distribution of controlled substances. The alleged violations also include failure to obtain the proper authorization required for the sale of ephedrine and pseudoephedrine products, which can be used to produce methamphetamine.
The United States asserts that Medical Center Pharmacy was unable to account for roughly 21,000 pills at four locations over a two-year span. In some instances, two pharmacy technicians allegedly diverted thousands of pills. In others, Medical Center Pharmacy allegedly delivered drugs to a residence that pill seekers used in conjunction with their sham identities. The unaccounted-for pills were the powerful and highly addictive drugs oxycodone and hydrocodone, commonly known by their brand names OxyContin, Roxicodone, and Percocet.
The United States contends that Medical Center Pharmacy violated the Combat Methamphetamine Epidemic Act (“CMEA”) portion of the CSA. The CMEA was enacted to curtail the illicit production and use of methamphetamine by requiring pharmacies to certify that they have met CMEA requirements such as properly training their employees in the proper sale of ephedrine, pseudoephedrine, and other listed chemical products. The CMEA also requires pharmacies to keep a logbook of certain listed chemical products sold, and the logbook must contain the identity of the purchaser and the product that was purchased. This requirement, along with a cap on the amount of listed chemical products an individual may purchase, helps prevent “meth smurfing” – the purchasing of legal amounts of ephedrine products but in many separate purchases. The United States asserts that Medical Center Pharmacy unlawfully sold listed chemical products without DEA authorization, did not properly maintain logbooks, and did not train employees.
“Pharmacies that are given the commercial benefit of selling controlled substances must meet their legal burden of adhering to the strict requirements prescribed under the Controlled Substances Act. We will aggressively pursue those who violate these requirements,” stated U.S. Attorney Duffy. “Oxycodone and hydrocodone have similar chemical structures to heroin and are similarly dangerous. The United States will not tolerate drug diversion or poor inventory control of highly abused and highly addictive prescription painkillers. This settlement conveys that message.”
In addition to paying $750,000 in settlement to the government, Medical Center Pharmacy has committed to implementing new inventory control procedures to assure full accountability of all controlled substances.
“It is DEA’s responsibility to guarantee that pharmacies are held accountable for their role in ensuring powerful and potentially dangerous drugs are not diverted for illegal use,” said DEA San Diego Special Agent in Charge William R. Sherman. “DEA will continue to monitor and investigate pharmacies to ensure that they are following all federal regulations so that these potent drugs don’t end up on the streets of our communities.”
This matter was handled by Assistant U.S. Attorney Dylan M. Aste of the Affirmative Civil Enforcement Unit of the U.S. Attorney’s Office.
Sacramento Man Sentenced to 15 Years in Prison for Child Pornography OffensesRead the Press Release
SACRAMENTO, Calif. — Daniel L. Bonnett, 40, of Sacramento, was sentenced today by United States District Judge John A. Mendez to 15 years in prison, to be followed by 30 years of supervised release, United States Attorney Benjamin B. Wagner announced.
Bonnett pleaded guilty on February 10, 2015. According to court documents, between January 27, 2013, and February 14, 2013, Bonnett sent and received images depicting the sexual exploitation of children over peer-to-peer file sharing networks and by using other Internet applications. When he was arrested, he had multiple computers with thousands of images and videos of child pornography in each. When sentencing Bonnett, Judge Mendez observed that the combination of prison time and supervision will result in Bonnett effectively spending the rest of his life under observation, which Judge Mendez observed was necessary to protect the public from future crimes by Bonnett.
This case was the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant United States Attorney Matthew Morris is prosecuting the case.
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 those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about Internet safety education.
Princeton man pleads guilty to Federal drug chargeRead the Press Release
BLUEFIELD, W.Va. – United States Attorney Booth Goodwin announced today that a Princeton man pleaded guilty today to a drug charge in federal court in Bluefield, West Virginia. Albert Delorso, 51, pleaded guilty to distribution of hydromorphone, admitting that on June 30, 2015, he sold three hydromorphone pills to an informant near Bluewell. Delorso faces up to 20 years in federal prison and a $1,000,000 fine when he is sentenced on March 1, 2016.
The Southern Regional Drug and Violent Crime Task Force conducted the investigation in this matter. Assistant United States Attorney John File is handling the prosecution.
This case was prosecuted as part of the Bluefield Pill Initiative, a collaborative, multi-agency regional law enforcement effort designed to halt prescription drug trafficking in Mercer, McDowell, and Wyoming counties. The Bluefield Pill Initiative is led by the Southern Regional Drug and Violent Crime Task Force, which includes the West Virginia State Police Bureau of Criminal Investigation; the Mercer, McDowell and Wyoming County Sheriff’s Departments; and the Bluefield and Princeton Police Departments.
-
Follow us on Twitter: SDWVNews
-
Oroville Man Pleads Guilty to Aggravated Identity Theft While on Federal Supervised ReleaseRead the Press Release
SACRAMENTO, Calif. — Melvin Lee Gregory, 32, of Oroville, pleaded guilty on Tuesday to aggravated identity theft and violation the conditions of supervised release, United States Attorney Benjamin B. Wagner announced.
According to court documents, on April 2, 2015, Gregory was released from federal prison after serving a four-year sentence for a previous conviction. Between April 2, 2015, and August 22, 2015, while on probation, Gregory opened a bank account and deposited several forged checks. On August 22, 2015, Gregory was observed attempting to break into and steal U.S. Mail from a Roseville mailbox, and minutes later he successfully stole U.S. Mail from a Rocklin mailbox. When Gregory was arrested by Rocklin Police, he was in possession of stolen U.S. Mail, burglary tools, and stolen identification documents.
This case is the product of an investigation of the United States Postal Inspection Service and the Rocklin Police Department, with the assistance of the United States Probation Office in the Eastern District of California. Assistant United States Attorney Michelle Rodriguez is prosecuting the case.
Gregory is scheduled to be sentenced by United States District Judge John A. Mendez on February 23, 2016. Gregory faces at least two years in prison for his aggravated identity theft conviction and up to an additional year for his violation of conditions of federal release. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Operator of Second-Largest Music Piracy Website in the U.S. Sentenced to 3 Years for Criminal Copyright InfringementRead the Press Release
NORFOLK, Va. – Rocky P. Ouprasith, 23, of Charlotte, North Carolina, was sentenced today to 36 months in prison for reproducing and distributing without permission millions of infringing digital copies of copyrighted works, including copies of popular songs and albums before they were commercially available. Ouprasith was also sentenced to two years of supervised release, and ordered to pay restitution in the amount of $45,288.62, and forfeit $50,851.05.
This case represents the first criminal copyright infringement sentence imposed for a cyberlocker operator in the United States.
“Ouprasith operated the second largest online file sharing site in the United States, averaging nearly 4.5 million visits per month and resulting in an estimated collective loss of more than $10 million per month to the rightful owners,” said Dana J. Boente, U.S. Attorney for the Eastern District of Virginia. “I believe this sentence reflects the seriousness of the crime and will promote greater respect for the law and property rights of others. I want to thank my prosecutors and our investigative partners for their outstanding work in this case.”
“HSI is responsible for enforcing federal regulations that exist to protect American businesses from unfair trade practices and intellectual property theft,” said Clark E. Settles, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). “Online piracy has a serious financial impact to business, which is felt at every level of a transaction – from the producer to the point-of-sales clerk.”
Ouprasith pleaded guilty on Aug. 21, 2015. According to court documents, between May 2011 and October 2014, Ouprasith operated RockDizMusic.com, a website originally hosted on servers in France and later in Canada, from which Internet users could find and download infringing digital copies of popular copyrighted songs and albums. Ouprasith admitted that he obtained digital copies of copyrighted songs and albums from online sources, and that he encouraged and solicited others, referred to as “affiliates,” to upload digital copies of copyrighted songs and albums to websites, including RockDizFile.com, that were hosted on servers in Russia, France and the Netherlands, and that hosted hyperlinks to content being offered for download on RockDizMusic.com. Ouprasith further admitted that to encourage such activity, he agreed to pay the affiliates based on the number of downloads from his website.
According to the Recording Industry Association of America, in 2013, RockDizFile.com was the second-largest online file sharing website specializing in the reproduction and distribution of infringing copies of copyrighted music in the United States. Ouprasith admitted that in 2013 and 2014, he either ignored or pretended to take remedial action in response to complaints from copyright holders and their representatives that the website contained links to infringing copies protected songs and albums.
In October 2014, federal law enforcement authorities shut down RockDizMusic.com and RockDizFile.com, and law enforcement authorities in the Netherlands and France seized file-hosting servers utilized by Ouprasith.
According to court documents, the market value of Ouprasith’s illegally pirated material was more than $6 million.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Leslie R. Caldwell, Assistant Attorney General of the Justice Department’s Criminal Division; and Clark E. Settles, Special Agent in Charge of HSI Washington, D.C., made the announcement after sentencing by Chief U.S. District Judge Rebecca Beach Smith. The case was prosecuted by Randy Stoker, Assistant U.S. Attorney for the Eastern District of Virginia, and John H. Zacharia, Assistant Deputy Chief for Litigation of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS). The CCIPS Cyber Crime Lab, the Criminal Division’s Office of International Affairs, as well as Dutch, French and Canadian law enforcement officials have provided significant assistance.
The sentencing today is related to the many efforts being undertaken by the Department of Justice Task Force on Intellectual Property (IP Task Force). The IP Task Force supports prosecution priorities, promotes innovation through heightened civil enforcement, enhances coordination among federal, state, and local law enforcement partners, and focuses on international enforcement efforts, including reinforcing relationships with key foreign partners and U.S. industry leaders. To learn more about the IP Task Force, go to www.justice.gov/iptf.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:15-cr-95.
###
Operator of Second-Largest Music Piracy Cyberlocker in United States Sentenced to 36 Months in Prison for Criminal Copyright InfringementRead the Press Release
First Criminal Copyright Infringement Sentence Imposed for a Cyberlocker Operator
The operator of the RockDizMusic.com music piracy website and cyberlocker was sentenced today to serve 36 months in prison, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Dana J. Boente of the Eastern District of Virginia and Special Agent in Charge Clark E. Settles of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) in Washington, D.C.
Rocky P. Ouprasith, 23, of Charlotte, North Carolina, was sentenced by Chief U.S. District Judge Rebecca Beach Smith of the Eastern District of Virginia. In addition to his prison term, Ouprasith was sentenced to serve two years of supervised release and was ordered to forfeit $50,851.05 and pay $48,288.62 in restitution. On Aug. 21, 2015, Ouprasith pleaded guilty to one count of criminal copyright infringement.
According to admissions made in connection with his guilty plea, between May 2011 and October 2014, Ouprasith operated RockDizMusic.com, a website originally hosted on servers in France and later in Canada, from which Internet users could find and download infringing digital copies of popular, copyrighted songs and albums. Ouprasith admitted that he obtained digital copies of copyrighted songs and albums – including “pre-release” songs that were not yet commercially available to consumers – from online sources and encouraged and solicited others, referred to as “affiliates,” to upload digital copies of copyrighted songs and albums to websites, including RockDizFile.com, that were hosted on servers in Russia, France and the Netherlands, and that hosted hyperlinks to content being offered for download on RockDizMusic.com. Ouprasith further admitted that to encourage such activity, he agreed to pay the affiliates based on the number of downloads from his website.
According to the Recording Industry Association of America, in 2013, RockDizFile.com was the second-largest online file-sharing website specializing in the reproduction and distribution of infringing copies of copyrighted music in the United States. Ouprasith admitted that in 2013 and 2014, he either ignored or pretended to take remedial action in response to complaints from copyright holders and their representatives that the website contained links to infringing copies protected songs and albums.
In October 2014, federal law enforcement authorities shut down RockDizMusic.com and RockDizFile.com, and law enforcement authorities in the Netherlands and France seized file-hosting servers utilized by Ouprasith.
According to court documents, the market value of Ouprasith’s illegally-pirated material was more than $6 million.
This case is being investigated by HSI. The case is being prosecuted by Assistant Deputy Chief for Litigation John H. Zacharia of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) and Assistant U.S. Attorney Randy Stoker of the Eastern District of Virginia. The CCIPS Cyber Crime Lab and the Criminal Division’s Office of International Affairs, as well as Dutch, French and Canadian law enforcement officials have provided significant assistance.
The enforcement action announced today is related to the many efforts being undertaken by the Department of Justice Task Force on Intellectual Property (IP Task Force). The IP Task Force supports prosecution priorities, promotes innovation through heightened civil enforcement, enhances coordination among federal, state, and local law enforcement partners, and focuses on international enforcement efforts, including reinforcing relationships with key foreign partners and U.S. industry leaders. To learn more about the IP Task Force, go to www.justice.gov/iptf.
Nine Men Arrested in Binghamton Area Drug InvestigationRead the Press Release
BINGHAMTON, NEW YORK – Nine (9) Binghamton area men were arrested today on federal drug conspiracy charges following an investigation by the Federal Bureau of Investigation (“FBI”), the New York State Police and the Broome County Special Investigations Unit Task Force, announced United States Attorney Richard S. Hartunian. The charges filed in federal court allege that the nine (9) men were engaged in a conspiracy to possess with intent to distribute and distribute cocaine powder, crack cocaine, heroin, marijuana and prescription drugs as part of a drug trafficking organization known as “the Eddie Block Gang.” The criminal complaint alleges that the conspiracy operated from January 2014 to present.
The defendants are:
IZABIVONE L. HUGHES, aka “Zay” and “Baby Boy,” age 22, of Johnson City, New York
ANTHONY E. BOYD, JR., aka “Height,” age 24, of Endicott, New York
TERRILL S. COLLINS, aka “LI” and “Neva Curve,” age 23, of Binghamton, New York
JOHN P. ABBADESSA, age 21, of Binghamton, New York
JALON T. PARKER, aka “Flex” and “Slizzy” age 23, of Binghamton, New York
ANTHONY J. RANDOLPH, JR., aka “Bleach,” age 29, of Binghamton, New York
RASHAWN C. CAUTHEN, aka “Tego,” age 24, of Binghamton, New York
AALIM M. SHABAZZ, aka “Hash,” age 23, of Binghamton, New York and THEODORE J. COOK, aka “Tato,” age 27, of Binghamton, New YorkIf convicted of drug conspiracy, the defendants face maximum sentences of up to life imprisonment, minimum sentences of at least ten (10) years imprisonment, a term of supervised release of at least five (5) years following imprisonment and a fine of up to $10 million.
Anthony J. Randolph, Jr., aka “Bleach” is also charged with possession of a firearm by a convicted felon and faces a maximum sentence of up to ten (10) years imprisonment, a term of supervised release of three (3) years following imprisonment, and a fine of up to $250,000.
The defendants were arraigned today in Binghamton, New York, before United States Magistrate Judge Therese Wiley-Dancks
The charges in the complaint are merely accusations. The defendants are presumed innocent until proven guilty.
This case was investigated by The FBI, The New York State Police and the Broome County Special Investigations Unit Task Force, which is comprised of officers and detectives of the City of Binghamton Police Department, the Broome County Sheriff’s Office, the Johnson City Police Department and the Endicott Police Department, and is being prosecuted by Assistant U.S. Attorney Miroslav Lovric.
Nez Perce Man Pleads Guilty to TheftRead the Press Release
COEUR D'ALENE - Daniel Wayne Winslow, 32, of Clarkston, Washington, pleaded guilty today to theft from a tribal organization, U.S. Attorney Wendy J. Olson announced. Winslow was charged by the U.S. Attorney on October 29, 2015.
According to the plea agreement, Winslow admitted that he was a cashier at the Nez Perce Express, which is owned by the Nez Perce Tribal Enterprises, an organization of the Nez Perce Tribe, a federally recognized Indian Tribe. During the defendant’s employment, he would sell cigarettes to customers and take cash in payment. The defendant then used his cash register to void the sale and converted the money the customer paid for the cigarettes to his own use. This practice of voiding the sales allowed the defendant to show a balanced cash drawer at the end of his shift. An audit revealed the defendant has stolen approximately $199,000 of tribal funds over several years during his employment at the Nez Perce Express.
The charge of theft from a tribal organization is punishable by up to five years in prison, a maximum fine of $250,000.00, and up to three years of supervised release.
Sentencing is set for January 26, 2016, before Senior U.S. District Judge Edward J. Lodge at the federal courthouse in Coeur d'Alene.
The case was investigated by Federal Bureau of Investigation (FBI) and Nez Perce Tribal Police.
Today's announcement is part of efforts underway by President Obama's Financial Fraud Enforcement Task Force (FFETF), which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants.
New Mexico Man Pleads Guilty to Sexual Exploitation of a ChildRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that an Albuquerque, New Mexico, man pleaded guilty in federal court today to transporting a 13-year-old victim from Henry County, Mo., across state lines to engage in illicit sexual activity.
Raymond C. Vallia, III, 56, of Albuquerque, pleaded guilty before U.S. District Judge Beth Phillips to transporting a minor across state lines with the intent to engage in sexual activity.
On March 29, 2015, deputies with Henry County, Mo., Sheriff’s Department responded to a Montrose, Mo., residence regarding the report of a missing 13-year-old female, identified in court documents as MV. During the course of the investigation law enforcement agents determined that MV met Vallia through a social networking Web site and that he had picked up MV at her home with the intent that they would live in an apartment in New Mexico.
New Mexico State Police saw a vehicle matching the description of Vallia’s vehicle on Interstate 40 in New Mexico on March 30, 2015. At that time the vehicle was pulled over, MV was recovered and Vallia was arrested.
MV told investigators that she and Vallia had sent nude images of themselves to each other and had sexually explicit conversations via Internet chat services. They intended to live together in his apartment; she planned to present Vallia as her father and to attend Cibola High School.
According to today’s plea agreement, Vallia picked up MV at her home at 2 a.m. Sunday, March 29, 2015. They drove to Amarillo, Texas, where they spent the night in a motel. Vallia and MV showered together and engaged in sexual activity. The next morning, after Vallia returned from a doctor’s appointment, they left the hotel and drove towards Vallia’s apartment in Albuquerque.
Under the terms of today’s plea agreement, Vallia will be sentenced to 20 years in federal prison without parole, followed by a 10-year term of supervised release, and must pay restitution to his victim. Vallia will be required under the federal Sex Offender Registration and Notification Act (SORNA) to register as a sex offender and keep the registration current in each of the jurisdictions where he resides, is employed and is a student. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Catherine A. Connelly. It was investigated by the FBI, the Henry County, Mo., Sheriff’s Department, the New Mexico State Police and the Amarillo, Texas, Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Morris County, New Jersey, Couple Admit Falsifying Thousands of Medical Diagnostic Reports as Part of $4.3 Million Health Care Fraud SchemeRead the Press Release
NEWARK, N.J. – A Rockaway, New Jersey, husband and wife who owned a mobile diagnostic testing company today admitted receiving more than $4.3 million from Medicare and private insurance companies for diagnostic testing and reports that were never interpreted by a licensed physician, U.S. Attorney Paul J. Fishman announced.
Nita K. Patel, 53, and Kirtish N. Patel, 53, pleaded guilty today before U.S. District Judge William H. Walls in Newark federal court to separate informations charging them each with one count of health care fraud.
According to the documents filed in the case and statements made in Court:
From 2006 through June 2014, Nita and Kirtish Patel owned and operated Biosound Medical Services Inc. and Heart Solutions (collectively, “Biosound”), of Parsippany, New Jersey, which were mobile diagnostic companies and approved Medicare providers. The companies provided mobile diagnostic testing, including ultrasounds, echocardiograms and nerve conduction studies that were used to diagnose heart defects, blood clots, abdominal aortic aneurysms and other serious medical conditions.
Biosound technicians would travel to the office of a primary care physician in the New York and New Jersey area to conduct diagnostic testing. Biosound was responsible for sending the tests to a “reading physician” – an appropriate specialist who would interpret the results. After the reading physician prepared a report, Biosound was responsible for providing it to the referring physician. Biosound was paid millions of dollars by Medicare and other payors for the diagnostic testing, the reading physician’s interpretation of the results and the reports.
Kirtish Patel admitted to, from October 2008 through June 2014, fraudulently interpreting and writing diagnostic reports produced by Biosound despite having no medical license and knowing that the reports would be used by the referring physicians to make important patient treatment decisions. Nita Patel admitted assisting her husband in forging physician signatures on the fraudulently produced reports to make them appear legitimate. Nita and Kirtish Patel also admitted falsely representing to Medicare that the neurological testing performed by Biosound was being supervised by a licensed neurologist.
According to the informations, more than half of the diagnostic reports generated by Biosound between October 2008 and June 2014 were never actually reviewed or interpreted by a physician. Nita and Kirtish Patel were paid more than $4,386,133.75 by Medicare and private insurance companies for the fraudulent reports, which they used for personal expenses, including multiple residences and luxury vehicles.
The health care fraud charge to which Nita and Kirtish Patel pleaded guilty carries a maximum potential penalty of 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing for both defendants is scheduled for March 15, 2016.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark, and the U.S. Department of Health and Human Services – Office of the Inspector General, under the direction of Special Agent in Charge Scott J. Lampert, with the investigation leading to today’s pleas.
The government is represented by Assistant U.S. Attorney Danielle Alfonzo Walsman of the U.S. Attorney’s Health Care and Government Fraud Unit.
U.S. Attorney Paul J. Fishman reorganized the health care fraud practice at the New Jersey U.S. Attorney’s Office shortly after taking office, including creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered more than $640 million in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug, and Cosmetic Act and other statutes.
Defense counsel:
Kirtish Patel: Anthony Fusco Jr. Esq., Passaic, New Jersey
Nita Patel: Frank Arleo Esq., West Orange, New Jersey
Monroe County Man Pleads Guilty to Federal Heroin Trafficking OffenseRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Monroe County man pleaded guilty today before United States Magistrate Judge Karoline Mehalchick to a federal heroin trafficking charge.
According to United States Attorney Peter J. Smith, Sal DiPalma, age 45, of East Stroudsburg, Monroe County, admitted to the charge of aiding and abetting the distribution of heroin. DiPalma was indicted by a grand jury in April 2015.
The charges stem from an incident in which DiPalma helped to arrange for a sale of heroin between Eric Rabb, age 45, of East Stroudsburg, and another individual who was working for police investigators. On October 23, 2013, Rabb and DiPalma were arrested by investigators as they were about to distribute the heroin to the other individual.
The investigation was conducted by the Lackawanna County Drug Task Force, the Drug Enforcement Administration, the Lackawanna County District Attorney’s Office and the Wayne County District Attorney’s Office.
Eric Rabb previously pleaded guilty to the charge of conspiracy to distribute heroin and is awaiting sentencing.
The cases are being prosecuted by Assistant United States Attorney Robert J. O’Hara.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 20 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
###
Methuen Executive Convicted in Mortgage Fraud ConspiracyRead the Press Release
BOSTON – A Methuen business executive pleaded guilty today to participating in a conspiracy to defraud banks and mortgage companies by engaging in sham “short” sales of residential properties in the Merrimack Valley of Massachusetts.
Dahianara Moran, 40, pleaded guilty to one count of conspiracy to commit bank fraud. U.S. District Court Judge Rya W. Zobel scheduled sentencing for Feb. 17, 2016.
Moran conspired with others – including a Methuen loan officer and a Haverhill real estate agent who were not identified in the charging document – to defraud various banks via bogus short sales of homes in Haverhill, Lawrence and Methuen. A short sale is a sale of real estate for less than the value of any mortgage debt on the property. Short sales are an alternative to foreclosure that typically occur only with the consent of the mortgage lender, and that generally result in the lender absorbing a loss on the loan and releasing the borrower from the unpaid balance. By their very nature, short sales are intended to be arms-length transactions in which the buyers and sellers are unrelated, and in which the sellers cede their control of the subject properties in exchange for the short-selling bank’s agreement to release them from their unpaid debt.
The conspiracy began in approximately August 2007 and continued through June 2010, a period that included the height of the financial crisis and its aftermath. Home values in Massachusetts and across the nation declined precipitously, and many homeowners found themselves suddenly “underwater,” with their homes worth less than the mortgage debt they owed. As part of the scheme, Moran and her co-conspirators submitted materially false and misleading documents to numerous banks in an effort to induce them to permit the short-sales – and thereby to release the purported sellers from their unpaid mortgage debts – while simultaneously inducing the purported buyers’ banks to provide financing for the deals. In fact, the purported sellers simply stayed in the homes, with their debt substantially reduced. In some cases, the conspirators then re-sold the properties in genuine arms-length transactions for a profit. Meanwhile, the short-selling banks lost millions of dollars.
As part of the conspiracy:
-
The conspirators falsely led banks to believe that the sales were arms-length transactions between unrelated parties, when in fact, the transactions were not arms-length, and the sellers retained control of (and frequently continued to live in) the properties after the sale. For example, Moran purported to sell two properties she owned to third parties who were, in fact, her close relatives, while actually maintaining control of both properties.
-
The conspirators submitted phony earnings statements that Moran prepared in support of loan applications that they submitted to banks in order to obtain financing for the purported sales.
-
The conspirators submitted phony HUD-1 Settlement Statements to banks, as well as to the Federal Housing Administration, that did not accurately reflect the disbursement of funds in the transactions. (A HUD-1 Settlement Statement is a standard form, developed by the U.S. Department of Housing and Urban Development, that is used to document the flow of funds in real estate transactions.HUD-1 Settlement Statements are required for all transactions involving federally related mortgage loans, including all mortgages insured by the Federal Housing Administration.)
Hayacinth Bellerose, a real estate attorney from Dunstable, Mass., pleaded guilty last month to the same charge and is scheduled to be sentenced on Feb. 4, 2016.
The charge of conspiracy to commit bank fraud provides for a sentence of no greater than 30 years in prison, three years of supervised release and a fine of $1 million. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Christina Scaringi, Special Agent in Charge of the Department of Housing and Urban Development, Office of Inspector General, New York Field Office; and Christy Goldsmith Romero, the Special Inspector General of the Troubled Asset Relief Program, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Stephen E. Frank, Deputy Chief of Ortiz’s Economic Crimes Unit.
-
Martinsburg, WV man convicted of cocaine traffickingRead the Press Release
MARTINSBURG, WEST VIRGINIA – Theron Eugene Cobb, 32, of Martinsburg, was convicted of cocaine trafficking in federal court, United States Attorney William J. Ihlenfeld, II, announced.
Cobb, also known as “Miami,” was discovered in possession of cocaine in Berkeley County, West Virginia. He pled guilty to one count of “Possession with Intent to Distribute Cocaine Base.” He faces up to 20 years in prison and a fine of up to $1,000,000. 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.
Special Assistant U.S. Attorney Stephanie Taylor prosecuted the case on behalf of the government. The Eastern Panhandle Drug and Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Man Who Set Fire to CVS During Baltimore Unrest Sentenced to Four Years in PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Raymon Carter, age 24, of Baltimore, Maryland, today to four years in prison, followed by three years of supervised release, for the federal crime of rioting on April 27, 2015, including the arson of the CVS Pharmacy located at 2509 Pennsylvania Avenue in Baltimore. Judge Hollander also entered an order requiring Carter to pay restitution of $500,000.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Commissioner Kevin Davis of the Baltimore Police Department; and Maryland State Fire Marshal Brian Geraci.
“Ordinary citizens concerned about their neighborhood helped to catch Raymon Carter after he participated in the riot on April 27, 2015,” said U.S. Attorney Rod J. Rosenstein.
According to his plea agreement, on April 27, 2015, Carter used a telephone to discuss his plans to go to the scene of the riots that erupted across Baltimore following the funeral of Freddie Gray. Carter walked to the area of North and Pennsylvania Avenues, in the vicinity of the CVS Pharmacy located at 2509 Pennsylvania Avenue, where he was captured on video watching the rioting activity around him, including rioters setting small fires.
Looters broke through the main doors of the CVS and began removing merchandise and pharmaceuticals. Surveillance video shows Carter entering the CVS at 5:28 p.m. Carter used an open flame to illuminate the pharmaceuticals on the shelves. At 5:30 p.m. the video shows Carter unsuccessfully attempting first to move, and then to open, the pharmaceutical safe.
Carter is then seen on surveillance video going to and from the southeast corner of the sales floor – which the investigation showed was the area of origin of the fire - three separate times between 6:15 p.m. and 6:19 p.m. Carter admitted that his intent was to start a fire and that he used paper products from that area of the store to set the fire. At 6:19:34 p.m., the third time Carter is seen going to that corner of the store, he moves out of camera view, behind the shelves. Carter’s efforts to light a fire were successful and at 6:19:57 p.m. a flash of light can be seen on the video. After the flash of light, Carter reappears on the surveillance video from behind the shelves and is seen running away from the area toward the CVS exit. Flames in the southeast corner of the store become visible on the surveillance video at 6:22:19 p.m. Fourteen seconds later Carter is seen walking towards the exit while looking back at the fire, and the looters are seen running toward the exit. No other individual is seen on the surveillance video in the area of the fire from the time of the flash of light until Carter exits the store.
The Baltimore Fire Department was called to the CVS at 6:28 p.m. When firefighters arrived at the store, heavy smoke was seen venting from the main entry doors and the roof. The Baltimore Police Department established riot lines in an attempt to control the crowds while the firefighters worked to extinguish the fire.
Carter was subsequently identified by citizens after the ATF released two still photographs from the surveillance videos to the media and announced a $10,000 reward for information leading to the suspect’s identification, arrest and conviction. On June 29, 2015, the ATF released a wanted poster for Carter and received a hotline tip on July 1, 2015 concerning Carter’s location. ATF agents located, and after a foot chase, arrested Carter. At the time of his arrest, Carter had little in his pockets except two black lighters. The total loss for the building alone as a result of the fire is estimated at $1.1 million.
The federal crime of rioting, governed by Section 2101 and 2102 of Title 18 of the United States Code, applies when a defendant travels across a state line or uses a facility of interstate commerce, including a telephone, to participate in a civil disturbance involving acts of violence.
The investigation into this and other arsons that occurred on April 27, 2015, is continuing. Anyone with information is urged to call the ATF hotline, 1-888-ATF-FIRE (1-888-283-3473). ATF continues to offer a reward of up to $10,000 for information leading to the arrest and conviction of any individual responsible for these incidents.
United States Attorney Rod J. Rosenstein praised the ATF, Baltimore Police Department, and Maryland State Fire Marshal’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Sandra Wilkinson, who prosecuted the case.
Man Convicted for Selling Counterfeit CigarettesRead the Press Release
Man pled guilty to trafficking in counterfeit cigarettes before U.S. District Court Judge William P. Dimitrouleas in Fort Lauderdale.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Robert J. West, Acting Special Agent in Charge, Miami Field Office, and U.S. Food & Drug Administration, Office of Criminal Investigations (FDA/OCI), made the announcement.
On November 13, 2015, Gaurav Joseph Jayaseelan, 25, a citizen of India, pled guilty to selling and dispensing and causing the sale and dispensing of a counterfeit tobacco product, cigarettes, the labeling of which bore the trade name of Newport cigarettes, a tobacco product listed with the FDA under Title 21, United States Code, Section 387(e)(i)(1), in violation of Title 21, United States Code, Sections 331(qq)(3) and 333(a)(2), and Title 18, United States Code, Section 2; and trafficking in 53,740 cartons of cigarettes, while knowingly using a counterfeit mark on and in connection with such cigarettes, the use of which was likely to cause confusion, cause mistake, and deceive. The counterfeit marks were false marks identical to and substantially indistinguishable from the marks of the legitimate manufacturer of Newport brand cigarettes, which were in use by and registered to the manufacturer on the principal register of the U.S. Patent and Trademark Office, in violation of Title 18, United States Code, Sections 2320(a) and 2.
Jayaseelan faces maximum statutory sentence of up to three years in prison, a fine of up to $250,000, and supervised release of up to three years for selling the counterfeit cigarettes. The defendant faces up to ten years in prison, a fine of up to $2,000,000, and a three year term of supervised release, for the trafficking of the cigarette cartons. The defendant is scheduled to be sentenced on January 22, 2016 at 1:15 pm.
According to the court record, including the a jointly filed factual statement, the investigation began in January 28, 2013, when a FDA/OCI undercover agent met with a third-party in Kingston, Jamaica to discuss the sale of counterfeit Marlboro brand cigarettes. Thereafter, negotiating by email, a deal to sell and ship 1,100 “master cases” of counterfeit Marlboro Reds, for a total cost of $377,300.00 was reached. To pursue the deal, agents made an initial a wire transfer in the amount of $133,190 to an account located in Dubai, United Arab Emirates for the purchase of the counterfeit cigarettes.
In August 2013, FDA/OCI undercover agents met with Jayaseelan, who travelled to Miami, FL from Dubai, as a representative of the producer, to discuss the pending sale. During the recorded meeting, Jayaseelan told the agents that he and his father, Joseph Jayaseelan were in the cigarette and alcohol business in the Middle East and India. He also claimed they owned and operated their own tobacco manufacturing plant which could manufacture any tobacco brand.
In December 2013, Jayaseelan sent an email advising they had to temporarily shut down their counterfeit Marlboro plant to avoid detection by law enforcement and offered in the interim to provide counterfeit Newport cigarettes. Subsequently, at Jayaseelan’s request, two cartons of Newport cigarettes to be used as samples for the manufacturing of the counterfeits were provided to an address in India.
In January 2014, an undercover agent was advised by Jayaseelan that the defendant would send 1,030 master cases of Newport cigarettes, for a total value of: $450,625. Later, Jayaseelan by email advised that the counterfeit Newport cigarettes had been shipped on April 7 to Port Everglades, Florida. The shipment was seized in Fort Lauderdale by Customs and Border Protection officers, in coordination with FDA/OCI and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) agents. The counterfeit cigarettes had an estimated United States street value of more than $1 million. Jayaseelan was arrested in August 2015 when he traveled to the United States in order to secure further payment on the counterfeit cigarette deal.
“This case represents our relentless commitment to stopping international rings of counterfeiters from jeopardizing products used by American consumers,” stated U.S. Attorney Ferrer.
"A key part of FDA's mission is to protect consumers from counterfeit products -- including cigarettes -- that the agency regulates," said Robert J. West, Acting Special Agent in Charge, FDA Office of Criminal Investigations' Miami Field Office. "We will continue to focus our efforts and resources on removing harmful counterfeit products from the US marketplace."
Mr. Ferrer commended the investigative efforts of the FDA/OCI, Miami Field Office, U.S. Customs and Border Protection (CBP), Port Everglades Office, ICE-HSI, Fort Lauderdale Office, and Broward Sheriff’s Office (BSO) for their assistance in the development of the case. This matter is being prosecuted by Assistant U.S. Attorney Thomas Watts-FitzGerald.
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.
Local officials discuss substance abuse, leadership with Jefferson County studentsRead the Press Release
HARPERS FERRY, WEST VIRGINIA – United States Attorney William J. Ihlenfeld, II and United States Senator Shelley Moore Capito (R-W.Va.) visited C.W. Shipley Elementary School in Harpers Ferry on Monday to speak with the school’s fifth grade class about current trends impacting young people in the Mountain State.
Ihlenfeld spoke with students about substance abuse and addiction, highlighting the power that young people have to control the trajectory of their futures by choosing to be drug free. Capito shared tips for avoiding drug encounters and reporting suspected drug abuse while also discussing the importance of leadership and community engagement.
“Addiction has established a fierce grip in our region,” noted Ihlenfeld. “We are always looking for creative ways to reduce the demand for illegal drugs in our communities. That begins with prevention efforts targeted at young people. It is important to have honest and informed conversation with our children about the science of addiction while highlighting how quickly and powerfully drugs can change their lives. We look forward to future opportunities to engage with local youth.”
“I enjoyed the opportunity to talk with our youth – the future of West Virginia – about the devastating effects of drug abuse. Today’s program is an example of the comprehensive outreach our state is undertaking to address this growing epidemic,” said Senator Capito. “Communities throughout West Virginia need to be prepared to educate our youth about the dangers of drug abuse, while we also work to address our treatment and enforcement needs.”
Students also had the opportunity to interact with local law enforcement officials. Jefferson County Sheriff Peter Dougherty joined Ihlenfeld and Capito at C.W. Shipley Elementary School to discuss his role as Sheriff with the students.
Individuals interested in scheduling presentations or interactive forums on substance abuse trends or other topics for students and community groups in the Northern District of West Virginia are encouraged to contact the United States Attorney’s Office by calling (304) 234-0100 or emailing [email protected].
C.W. Shipley Elementary School Princiapl Ian Hillman along with several students greet United States Senator Shelley Moore Capito, Jefferson County Sheriff Pete Dougherty, and United States Attorney William J. Ihlenfeld, II.
Local Musician Pleads Guilty to Stolen Identity Tax Refund SchemeRead the Press Release
St. Louis, MO – OLUFUNSHO ADESHINA, a native of Nigeria residing in St. Louis, pled guilty to charges involving his participation in a stolen identity tax fraud scheme.
According to court documents, Adeshina received $753,063 from more than fifty refunds by filing false tax returns in the name of various individuals. The refunds were sent to various financial accounts: some were in Adeshina’s name, some were in the names of businesses he controlled and some were in the names of identity theft victims whose information Adeshina used to establish additional accounts. Adeshina admitted he sought more than $3.5 million dollars in refunds, but most of the false returns were caught and not honored by the IRS.
Adeshina pled guilty to one felony count of theft of government funds before United States District Judge Rodney W. Sippel. Sentencing has been set for February 26, 2016. Adeshina will remain in federal custody until his sentencing. Adeshina has been in federal custody since April, when he was arrested at Atlanta-Hartsfield Airport returning to the United States from Nigeria.
"Investigating refund fraud and identity theft is a top priority and we will vigorously pursue those who undermine the integrity of the U.S. tax system," said Tonya L. Martin, Acting Special Agent in Charge of IRS Criminal Investigation.
Theft of government funds carries a maximum penalty of ten years in prison and/or fines up to $250,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges. In addition to the criminal penalties he faces, Adeshina acknowledged this conviction may subject him to removal from the United States, as he is not a U.S. citizen.
This case was investigated by Internal Revenue Service-Criminal Investigation. Assistant United States Attorney Tom Albus is handling the case for the U.S. Attorney’s Office.
Local Man Heads to Prison for Distributing Child PornographyRead the Press Release
CORPUS CHRISTI, Texas – A 32-year old Corpus Christi man has been ordered to federal prison following his conviction of distribution of child pornography, announced U.S. Attorney Kenneth Magidson. James Parrott pleaded guilty July 29, 2015.
Today, Senior U.S. District Judge John D. Rainey handed Parrott a term of 108 months in federal prison. The sentence will be immediately followed by a term of five years on supervised release during which time he will have to comply with numerous requirements designed to restrict his access to children and the Internet.
At the time of his guilty plea, the court heard that detectives with the Corpus Christi Police Department, while using peer-to-peer software, were able to successfully download various files containing child pornography from an IP address that was associated with Parrott. As a result of this information, the FBI office in Corpus Christi was contacted to assist in the investigation.
In January 2015, agents executed a search warrant at Parrott’s residence, at which time they seized various electronic devices. Forensic analysis on those devices revealed more than 1,000 images and more than 120 videos of child pornography. Parrott admitted to using the peer-to-peer software to download child pornography.
Parrott was arrested on the federal charges in June 2015 and has been in custody since that time where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI investigated with the assistance of the Corpus Christi Police Department.
This case, prosecuted by Assistant U.S. Attorney Hugo R. Martinez, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Lisbon man indicted for child pornography crimesRead the Press Release
Charles Lee Davis, Jr., 49, of Lisbon, was charged with receiving, distributing and possessing visual depictions of minors engaged in sexually explicit conduct, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio.
The indictment charges that from on or about November 7, 2013, through on or about January 28, 2014, Davis knowingly received and distributed, using any means and facility of interstate and foreign commerce, numerous computer files, which files contained visual depictions of real minors engaged in sexually explicit conduct, and which files had been shipped and transported in and affecting interstate and foreign commerce. The indictment also charges that on July 23, 2014, Davis possessed a computer containing child pornography.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant's role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant United States Attorney Michael A. Sullivan. The case was investigated by the Youngstown Office of the Federal Bureau of Investigation.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
KC Man Sentenced to 30 Years for Producing Child PornRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., was sentenced in federal court today for producing child pornography after recording videos of two minor victims, including a teenager who responded to his online advertisement for modeling and a minor who was secretly filmed in the shower.
Marcus S. Clarke, 43, a citizen of Jamaica residing in Kansas City, was sentenced by U.S. District Judge Dean Whipple to 30 years in federal prison without parole. The court also ordered Clarke to serve a 10-year term of supervised release following incarceration.
On June 1, 2015, Clarke pleaded guilty to one count of producing child pornography and one count of attempting to produce child pornography.
According to court documents, a 15-year-old girl, identified as Jane Doe #1, had been sending and receiving text messages on a borrowed cell phone. The cell phone’s owner notified a Prairie Village, Kan., police detective when she noticed a text conversation about a modeling photo shoot.
Jane Doe #1 told law enforcement officers that she responded to a Craigslist advertisement for models for a photo shoot. Clarke picked her up at a park in Prairie Village on Oct. 3, 2014, and drove her to his apartment in the Northland. When they arrived at the apartment, Clarke put a flash drive in his television to display photos of nude females to Jane Doe #1. MV described the images to law enforcement officers as “disturbing” because the women were nude and engaged in sexual activity. Clarke took both nude and non-nude photos and videos of Jane Doe #1 using a digital camera and digital recorder. During one of the video recordings Clarke engaged in sexual activity with Jane Doe #1.
According to court documents, Clarke had been advertising online for lingerie and nude modeling as far back as September 2012.
An FBI agent used the same cell phone that Jane Doe #1 had used to contact Clarke. Several text messages were exchanged in which Clarke made arrangements to meet Jane Doe #1 again for another photo shoot. When Clarke arrived at the Prairie Village park to meet Jane Doe #1 on Oct. 22, 2014, he was placed under arrest. Law enforcement officers executed a search warrant at Clarke’s residence and seized computers and computer storage devices that contained sexually explicit videos of Jane Doe #1.
Clarke also admitted that he secretly recorded video of a second victim, identified as Jane Doe #2, to produce child pornography between Jan. 1, 2007, and Dec. 13, 2010. According to court documents, investigators discovered an SD card in Clarke’s apartment that contained video recordings in which Clarke appeared to secretly film the 13-year-old female while she took a shower.
This case was prosecuted by Assistant U.S. Attorney Teresa A. Moore. It was investigated by the FBI and the Prairie Village, Kan., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
KC Man Indicted for Armed Bank Robbery, Illegal FirearmRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man who was arrested last week after being tackled by a security guard was indicted by a federal grand jury today for armed bank robbery and illegally possessing a firearm.
Sidney A. Williams, 62, of Kansas City, was charged in a three-count indictment returned by a federal grand jury in Kansas City, Mo. Today’s indictment replaces a federal criminal complaint that was filed against Williams on Nov. 12, 2015.
The federal indictment alleges that Williams used a firearm to steal $5,493 from Bank Midwest, 7904 Ward Parkway, Kansas City, Mo., on Nov. 10, 2015.
According to an affidavit filed in support of the original criminal complaint, Williams was wearing a black ski mask and pointing a handgun at bank employees, including the security guard. When Williams ran out the door of the bank after the robbery, the affidavit says, the security guard chased Williams, tackled him across the street from the bank and a struggle ensued. Williams allegedly pointed the revolver at the security guard before he was able to disarm him. The security guard received assistance from a passerby in subduing Williams. Law enforcement officers recovered a blue canvas bag of cash, a handgun and a black ski mask from the area where Williams was taken into custody.
Williams is also charged with brandishing a firearm – an Iver Johnson .38-caliber revolver – during a crime of violence.
The indictment also charges Williams with being a felon in possession of a firearm. Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Williams has prior federal felony convictions for armed bank robbery and for being a felon in possession of a firearm; he has prior state felony convictions for robbery, burglary and assault.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorneys Patrick C. Edwards and Jeff Q. McCarther. It was investigated by the FBI and the Kansas City, Mo., Police Department.
Justice Department and Federal Partners Announce Enforcement Actions of Dietary Supplement CasesRead the Press Release
Criminal Charges Brought against Bestselling Supplement Manufacturer
As part of a nationwide sweep, the Department of Justice and its federal partners have pursued civil and criminal cases against more than 100 makers and marketers of dietary supplements. The actions discussed today resulted from a year-long effort, beginning in November 2014, to focus enforcement resources in an area of the dietary supplement market that is causing increasing concern among health officials nationwide. In each case, the department or one of its federal partners allege the sale of supplements that contain ingredients other than those listed on the product label or the sale of products that make health or disease treatment claims that are unsupported by adequate scientific evidence.
Among the cases announced today is a criminal case charging USPlabs LLC and several of its corporate officers. USPlabs was known for its widely popular workout and weight loss supplements, which it sold under names such as Jack3d and OxyElite Pro.
The sweep includes federal court cases in 18 states and was announced today by Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division; Deputy Commissioner for Global Regulatory Operations and Policy Howard Sklamberg J.D. of the Food and Drug Administration (FDA); Acting Deputy Director J. Reilly Dolan of the Federal Trade Commission (FTC)’s Bureau of Consumer Protection; Acting Deputy Chief Inspector Gary Barksdale of the U.S. Postal Inspection Service (USPIS); and Chief Richard Weber of the Internal Revenue Service’s (IRS) Criminal Investigation (CI) Division. The Department of Defense (DoD) and the U.S. Anti-Doping Agency (USADA) are also participating in the sweep to unveil new tools to increase awareness of the risks unlawful dietary supplements pose to consumers and, in particular, to assist service members targeted by illegitimate athletic performance supplements.
“The Justice Department and its federal partners have joined forces to bringing to justice companies and individuals who profit from products that threaten consumer health,” said Principal Deputy Assistant Attorney General Mizer. “The USPlabs case and others brought as part of this sweep illustrate alarming practices the department found—practices that must be brought to the public’s attention so consumers know the serious health risks of untested products.”
During the period of the sweep, 117 individuals and entities were pursued through criminal and civil enforcement actions. Of these, 89 were the subject of cases filed since November 2014.
Criminal Matters
An 11-count indictment was unsealed earlier today against USPlabs LLC, a Dallas firm, which formerly manufactured highly popular workout and weight loss supplements. The indictment charges USPlabs, S.K. Laboratories Inc., based in Anaheim, California, and their operators with a variety of charges related to the sale of those products. Jacobo Geissler, 39, of University Park, Texas, the CEO of USPlabs; Jonathan Doyle, 37, of Dallas, the president of USPlabs; Matthew Hebert, 37, of Dallas, responsible for product packaging design at USPlabs; Kenneth Miles, 69, of Panama City, Florida, the quality assurance executive in charge of compliance at USPlabs; S.K. Laboratories Inc.; Sitesh Patel, 32, of Irvine, California, the vice president of S.K. Laboratories; and Cyril Willson, 34, of Gretna, Nebraska, a consultant to USPlabs, are charged with various counts associated with the unlawful sale of dietary supplements. Additionally, USPlabs, Geissler, Doyle and Hebert are charged with obstruction of an FDA proceeding and conspiracy to commit money laundering.
Four of the defendants were arrested earlier today and the other two will self-surrender. Along with the arrests, FDA and IRS-CI special agents seized assets in dozens of investment accounts, real estate in Texas and a number of luxury and sports cars.
The indictment alleges that USPlabs engaged in a conspiracy to import ingredients from China using false certificates of analysis and false labeling and then lied about the source and nature of those ingredients after it put them in its products. According to the indictment, USPlabs told some of its retailers and wholesalers that it used natural plant extracts in products called Jack3d and OxyElite Pro, when in fact it was using a synthetic stimulant manufactured in a Chinese chemical factory.
The indictment also alleges that the defendants sold some of their products without determining whether they would be safe to use. In fact, as the indictment notes, the defendants knew of studies that linked the products to liver toxicity.
The indictment also alleges that in October 2013, USPlabs and its principals told the FDA that it would stop distribution of OxyElite Pro after the product had been implicated in an outbreak of liver injuries. The indictment alleges that, despite this promise, USPlabs engaged in a surreptitious, all-hands-on-deck effort to sell as much OxyElite Pro as it could as quickly as possible. It was sold at dietary supplement stores across the nation.
“This joint agency effort is a testament to our commitment to protecting consumers from potentially unsafe dietary supplements and products falsely marketed as dietary supplements,” said Deputy Commissioner Sklamberg. “The criminal charges against USPlabs should serve as notice to industry that if products are a threat to public health, the FDA will exercise its full authority under the law to bring justice.”
Today’s criminal charges are among 14 criminal cases prosecuted by the Civil Division’s Consumer Protection Branch and U.S. Attorney’s Offices across the country from November 2014 to November 2015. See this chart. Of the 14 criminal cases prosecuted during this timeframe, 11 cases against 29 individuals and entities have been filed since November 2014.
The charges and allegations in the indictments are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Civil Cases
The Department of Justice also filed in the past week five civil cases seeking injunctive relief against a number of businesses and individuals that allegedly sold supplements as disease cures or that were otherwise in violation of the law. These matters, investigated by USPIS and the FDA, include the following:
- United States v. Clifford Woods LLC, doing business as Vibrant Life, and Clifford Woods. A complaint, filed in the U.S. District Court for the Central District of California, alleges that the defendants unlawfully sold Taheebo Life Tea, Life Glow Plus, Germanium and Organic Sulfur (identified as methyl sulfonyl methane) as treatments for various diseases including Alzheimer’s disease and cancer. The complaint alleges that the defendants’ conduct defrauded consumers through the sale of unapproved new and misbranded drugs.
- United States v. James R. Hill, doing business as Viruxo. A complaint, filed in the U.S. District Court for the Middle District of Florida, alleges that the defendants unlawfully sold a dietary supplement called Viruxo as a treatment for herpes. The complaint alleges that the defendants’ conduct defrauded consumers through the sale of unapproved new and misbranded drugs.
- United States v. Lehan Enterprises, Inc., doing business as Optimum Health, and Lesa Sverid. A complaint, filed in the U.S. District Court for the District of Massachusetts, alleges that the defendants unlawfully sold products called DMSO Cream, DMSO Cream with Aloe and DMSO Roll On as treatments for conditions and diseases including arthritis and cancer. The complaint alleges that defendants sold unapproved new and misbranded drugs.
- United States v. Bethel Nutritional Consulting, Felix Ramirez, and Kariny Ramirez. A complaint, filed in U.S. District Court for the District of New Jersey, alleges that the defendants distribute dietary supplements in a manner that does not conform to current good manufacturing practice for dietary supplements and that they are making claims about the uses for many of the products that render them unapproved and misbranded drugs. Furthermore, FDA testing has revealed that some of defendants’ products contain active pharmaceutical ingredients that are not listed on the products’ labels, including one ingredient that was withdrawn from the market in 2010 because of safety concerns. The defendants in this matter have agreed to be bound by a consent decree of permanent injunction banning them from selling dietary supplements until they come into compliance with the law.
- United States v. VivaCeuticals, Inc., doing business as Regeneca Worldwide, and Matthew Nicosia. A complaint filed in U.S. District Court for the Central District of California alleges that dietary supplements sold by the defendants are adulterated because they are not manufactured in accordance with the FDA’s current good manufacturing practice regulations. One of the dietary supplements, a product called RegeneSlim Appetite Control (RegeneSlim), contains the ingredient 1, 3 dimethylamylamine (DMAA), an unsafe food additive under the federal Food, Drug and Cosmetic Act, but does not declare DMAA as an ingredient. In addition, the defendants market RegeneSlim to be used as a disease cure.
“Postal Inspectors have a long history of effectively enforcing the mail fraud statute to halt snake oil salesmen and medical quacks from using the mails to purvey their wares upon unsuspecting citizens,” said Acting Deputy Chief Postal Inspector Barksdale. “We look at these latest misrepresentations and frauds as ‘old wine in a new bottle.’ Working with our law enforcement and regulatory partners, we hope to protect American consumers by keeping these scams ‘bottled up’.”
Civil actions brought by the FTC as part of the sweep to combat unsubstantiated supplement claims include the following:
- Sunrise Nutraceuticals, LLC. According to the FTC’s complaint, Sunrise, based in Boca Raton, Florida, deceptively claims that its dietary supplement Elimidrol, a “proprietary blend” of herbs and other compounds, alleviates opiate withdrawal symptoms and increases a user’s likelihood of overcoming opiate addiction. The FTC’s complaint alleges, however, that Sunrise’s ads for Elimidrol are deceptive because they are false or unsubstantiated.
- Health Nutrition Products. The FTC’s complaint charged Crystal Ewing, five other individuals and five companies with making false and misleading health and efficacy claims in direct mail ads and on a website owned by Ewing. In ads for W8-B-Gone, CITRI-SLIM 4 and Quick & Easy diet pills, the defendants featured bogus weight-loss experts. Citing fake scientific studies, the defendants also deceptively claimed to have clinical proof that consumers would experience a “RAPID FAT meltdown diet program” that lets them shed five pounds in four days with one pill, or up to 20 pounds in 16 days with four pills. The proposed court orders announced today will settle the FTC’s charges against three defendants involved in the scheme. The order against repeat offender Ewing and her company Classic Productions LLC requires them to admit liability in the case, bans them from selling weight-loss programs, products and services, and imposes a non-suspended judgment of $2.7 million.
- NPB Advertising, Inc. According to the FTC’s complaint filed in the U.S. District Court for the Middle District of Florida’s Tampa Division, Florida-based NPB and others capitalized on the green coffee bean diet fad by using false weight-loss claims and fake news websites to market a dietary supplement called Pure Green Coffee. The proposed court order announced today settles the FTC’s charges, bars the defendants from the deceptive acts and practices described in the complaint and imposes a $30 million judgment that will be suspended upon the sale of certain assets, payment of $160,800, and the collection and turnover of an additional $155,760 that was lent to a third party.
“People looking for a dietary supplement to improve their health have to wade through a swamp of misleading ads,” said Director Jessica Rich of the FTC’s Bureau of Consumer Protection. “Be skeptical of ads for supplements that claim to cure diseases, reverse the signs of aging or cause weight loss without diet or exercise.”
Today’s cases are among 25 civil actions pursued by the Civil Division’s Consumer Protection Branch, U.S. Attorney’s Offices and the FTC from November 2014 to November 2015. Of the 25 actions, 22 civil cases against 60 individuals and entities have been filed since November 2014. To date, courts have entered judicial orders in 11 cases, requiring dietary supplement makers to change their business practices to ensure that they are selling their products in compliance with the law.
Educational materials
As part of today’s sweep, the Uniformed Services University of the Health Sciences’ Consortium for Health and Military Performance partnered, through its Human Performance Resource Center (HPRC), with the USADA to develop educational resources for service members to protect them from risky dietary supplements. Through this partnership, the organizations will jointly launch an online interactive educational module called “Get the Scoop on Supplements: Realize, Recognize, and Reduce Your Risk.” Also launching today are two mobile applications: the HPRC’s Operation Supplement Safety (OPSS) High-Risk Supplement List mobile application for Service members and USADA’s Supplement 411 mobile application for athletes (both accessible via the Google Play and Apple App stores and available to the general public).
These educational products will augment the important information available on USADA’s Supplement411.org website and the OPSS website, including the OPSS High-Risk Supplement List which was launched in February 2015. To access more information available to service members, consult the OPSS website and a recently released video at http://hprc-online.org/blog/decoding-the-dietary-supplement-industry. To access the educational resources USADA provides for athletes and general consumers to help realize, recognize and reduce the risks associated with using supplement products visit USADA’s website http://www.supplement411.org.
“Ensuring readiness of the force is one of the Department of Defense’s top goals,” said Deputy Assistant Secretary of Defense for Health Affairs Dr. Dave Smith of DoD’s Military Health System. “Unsafe dietary supplements are a threat to readiness in DoD.”
“A combined effort like this is vitally important to protecting the health and safety of athletes at every level,” said USADA CEO Travis T. Tygart. “We work to educate athletes on the risks associated with choosing to use supplements, and we will continue to support further action at a national level to prevent dangerous substances and products from being allowed in the marketplace where they can easily be attained by unsuspecting athletes and other consumers.”
To promote today’s joint sweep, the FTC created an infographic to help consumers understand the range of dietary supplement products and claims, the potential risks of taking supplements and questions to ask a health professional before taking any supplements. The FTC also published blogs for consumers and businesses, and has articles and videos with more information at ftc.gov/dietary supplements.
The FDA continues to warn consumers about the risks associated with some over-the-counter products, falsely marketed as dietary supplements, which contain hidden active ingredients that could be harmful. In the last year, the agency has warned of more than 100 products found to contain hidden active ingredients. These products are most frequently marketed for sexual enhancement, weight loss and body building.
Within the last year, the FDA also sent warning letters to manufacturers selling dietary supplements that contain BMPEA and DMBA, two ingredients that do not meet the statutory definition of a dietary ingredient as well as to several companies selling pure powdered caffeine products that the agency determined to be dangerous and present a significant or unreasonable risk of illness or injury to consumers.
Justice Department Settles with McLennan County, Texas, Regarding Accessibility of County Services Under the Americans with Disabilities ActRead the Press Release
The Justice Department announced today an agreement with McLennan County, Texas, to improve access to all aspects of civic life for people with disabilities. McLennan County and the Department of Justice reached an agreement under Project Civic Access (PCA), the department’s wide-ranging initiative to ensure that cities, towns and counties throughout the country comply with the Americans with Disabilities Act (ADA). Under the agreement, the county is required to ensure that people with disabilities can take full advantage of the county’s services, programs and activities. This year, as we celebrate the 25th anniversary of the ADA, it is an ideal time to highlight the impact that the enforcement of this statute has made in the lives of people with disabilities.
“Twenty-five years after the passage of the ADA, we have seen tremendous strides in accessibility nationwide,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division. “Because of the ADA, local governments like McLennan County are taking responsibility to provide citizens with access to programs, services and activities. Agreements such as this one will have a remarkable impact on the everyday lives of individuals with disabilities and allow them to fully participate as citizens of McLennan County.”
Under the agreement, McLennan County will develop and implement a new county website that is compliant with the web content accessibility guidelines (WCAG) version 2.0; the county will also designate a web accessibility coordinator who will be responsible for coordinating the county’s web accessibility compliance. The county will also ensure that its polling locations are accessible to persons with disabilities. In addition, the county will modify its emergency operations plan to ensure that it is accessible to all persons with disabilities in the event of an emergency. McLennan County will also adopt and implement its Sheriff’s Department Effective Communication Policy for People Who are Deaf or Hard of Hearing. Finally, the agreement requires the county to ensure that its courthouses, buildings, parking lots, parks and toilet rooms are accessible to persons with disabilities.
This agreement was reached under Title II of the ADA, which prohibits discrimination against individuals with disabilities by state and local governments. The three-year agreement will remain in effect until Nov. 16, 2018. The department will actively monitor compliance with the agreement.
For more information about the ADA, today’s agreement, the Project Civic Access initiative or the ADA Best Practices Tool Kit for state and local governments, individuals may access the ADA Web page at http://www.ada.gov/civicac.htm or call the toll-free ADA Information Line at (800) 514-0301 or (800) 514-0383 (TTY).
McLennan County Settlement Agreement
Justice Department Settles Americans with Disabilities Act Employment Discrimination Case Against Bolivar County, MississippiRead the Press Release
The Justice Department filed a proposed consent decree today with Bolivar County, Mississippi, resolving claims that the county violated Title I of the Americans with Disabilities Act (ADA). The complaint, also filed today, alleges that the county violated the ADA by terminating a correctional officer with the Bolivar County Regional Correctional Facility one day after he disclosed in a post-hire physical examination that he previously had diabetes. The county terminated the employee, who had nearly 20 years of prior experience as a correctional officer and was qualified to perform the position, because he had a record of a disability and/or was regarded as having a disability.
The consent decree, which must be approved by the court, requires the county to pay the employee nearly $100,000 in back pay and compensatory damages, offer to reinstate him to the correctional officer position, provide training on the ADA and file reports on its compliance with the decree and ADA with the Justice Department.
“Employers may not terminate employees based on erroneous assumptions about individuals with diabetes or other disabilities,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division. “This agreement is another step towards eliminating employment barriers for people with disabilities, and we applaud the county for working cooperatively with the department to resolve this matter.”
Title I of the ADA prohibits employers from discriminating against a qualified individual on the basis of disability in regard to job application procedures, the hiring, advancement or discharge of employees, employee compensation, job training and other terms, conditions and privileges of employment. An employer may also not deny employment opportunities to a job applicant or employee who is otherwise qualified if the denial is based on the need to make reasonable accommodations for the applicant or employee. This matter was based on a referral from the Jackson, Mississippi, Area Office of the Equal Employment Opportunity Commission who completed the initial investigation of the facts.
Those interested in finding out more about federal disability rights statutes can call the Justice Department’s toll-free ADA Information Line at (800) 514-0301 or (800) 514-0383 (TDD), or access the ADA website at www.ada.gov.
Bolivar County Complaint
Bolivar Consent Decree
Justice Department Announces Maerki Baumann & Co. AG Reaches Resolution Under Swiss Bank ProgramRead the Press Release
The Department of Justice announced today that Maerki Baumann & Co. AG (Maerki Baumann) reached a resolution under the department’s Swiss Bank Program. Maerki Baumann will pay a penalty of more than $23 million.
“Maerki Baumann willfully and actively helped U.S. taxpayers evade their tax obligations and cheat the American public,” said Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division. “Today’s agreement reveals the extent of such conduct and holds Maerki Baumann accountable, requiring the bank to make a detailed disclosure of its cross-border activities, pay an appropriate penalty, and provide continuing and extensive cooperation against its representatives, accountholders and other institutions.”
The Swiss Bank Program, which was announced on Aug. 29, 2013, provides a path for Swiss banks to resolve potential criminal liabilities in the United States. Swiss banks eligible to enter the program were required to advise the department by Dec. 31, 2013, that they had reason to believe that they had committed tax-related criminal offenses in connection with undeclared U.S.-related accounts. Banks already under criminal investigation related to their Swiss-banking activities and all individuals were expressly excluded from the program.
Under the program, banks are required to:
-
Make a complete disclosure of their cross-border activities;
-
Provide detailed information on an account-by-account basis for accounts in which U.S. taxpayers have a direct or indirect interest;
-
Cooperate in treaty requests for account information;
-
Provide detailed information as to other banks that transferred funds into secret accounts or that accepted funds when secret accounts were closed;
-
Agree to close accounts of accountholders who fail to come into compliance with U.S. reporting obligations; and
Pay appropriate penalties.
Swiss banks meeting all of the above requirements are eligible for a non-prosecution agreement.
According to the terms of the non-prosecution agreement signed today, Maerki Baumann agrees to cooperate in any related criminal or civil proceedings, demonstrate its implementation of controls to stop misconduct involving undeclared U.S. accounts and pay a penalty in return for the department’s agreement not to prosecute this bank for tax-related criminal offenses.
Maerki Baumann is a family-owned private bank organized under the laws of Switzerland. It is headquartered in Zurich, Switzerland, and has a branch office in Lugano, Switzerland. In the 1990s, Maerki Baumann developed a relationship with a Swiss referral source that introduced clients to Maerki Baumann primarily from the United States. This source was affiliated with an insurance company that also deposited with Maerki Baumann pooled assets from its insurance customers. Maerki Baumann understood that most were U.S. persons. At some point in the late 1990s or early 2000s, Maerki Baumann also began receiving referrals of U.S. clients from an external asset manager based in the United States. These referrals included clients with undeclared accounts.
Although Maerki Baumann had long had U.S. clients, it had no formal U.S. desk or team until 2001, when it consolidated responsibility for U.S. clients into what had been the “Swiss team” and renamed it the “Swiss/U.S. team.” Maerki Baumann increased its focus on its U.S. cross-border business from 2003 to 2005. In 2003, Maerki Baumann hired a relationship manager (RM-1) from the U.S./Canada desk at another bank.
RM-1 introduced Maerki Baumann to another relationship manager (RM-2), with whom RM-1 had previously worked at another bank and who had significant experience servicing U.S. accounts. Maerki Baumann hired RM-2 in 2005 with the expectation that RM-2 would provide expertise to the U.S. side of Maerki Baumann’s Swiss/U.S. team and actively recruit additional U.S. clients. By the end of 2005, in addition to the head of the Swiss/U.S. team, the U.S. component of Maerki Baumann’s Swiss/U.S. team consisted of three relationship managers, including RM-1 and RM-2. The client base of these relationship managers consisted largely of U.S. clients. Later, these relationship managers were assisted by three junior members of the Swiss/U.S. team. On approximately 35 occasions, relationship managers traveled to the United States to meet with U.S. clients for the purpose of building and maintaining relationships with these clients.
Maerki Baumann terminated RM-2’s employment in 2008. In 2011, RM-2 was charged in a federal court in the United States with conspiring to impede and impair the Internal Revenue Service (IRS) in the ascertainment, computation, assessment and collection of U.S. income taxes, in connection with RM-2’s activities at a bank other than Maerki Baumann.
Maerki Baumann opened, maintained and serviced accounts for U.S. persons that it knew or had reason to know were likely not declared as required by U.S. law. Maerki Baumann also offered a variety of traditional Swiss banking services, including hold mail instructions and numbered accounts, that it knew could assist, and did in fact assist, U.S. clients in the concealment of assets and income from the IRS. The combination of hold mail instructions and numbered accounts on undeclared accounts significantly reduced the ability of the IRS to learn the identities of the U.S. persons.
Maerki Baumann also allowed U.S. persons to maintain accounts held in the name of non-operating non-U.S. corporations or other legal entities that were beneficially owned by these U.S. persons. The jurisdictions in which the entities were incorporated or formed included Liechtenstein, Panama and the British Virgin Islands. On at least two occasions, relationship managers met directly with the beneficial owners of the Maerki Baumann accounts held by the entities.
Between 2004 and 2008, on approximately a monthly basis (but sometimes more often), RM-1 received from U.S. clients checks ranging from just under $10,000 to $85,000, which were drawn on U.S. company accounts in California, for deposit into accounts beneficially owned by those U.S. clients or their designees. The correspondence accompanying the checks stated that the checks were for “materials purchased” and instructed the relationship manager to “process the purchase orders as needed,” and many of the checks themselves bore the notation “see purchase order.” However, there were no purchase orders attached, and Maerki Baumann was never provided with any purchase orders. Additionally, RM-1’s notes state that certain checks were for under $10,000 “in order to avoid any unnecessary attention.” Likewise, with respect to at least two U.S.-related accounts, relationship managers knew between 2003 and 2005 that the client was structuring the transactions to avoid currency transaction reporting requirements.
Relationship managers communicated or discussed communicating with U.S. clients by confidential means. For example, in October 2006, one relationship manager advised a client that if there was a need for urgent contact, he would send the client a card stating “Greetings from [relationship manager].” In another instance, in June 2009, a client’s correspondence to a relationship manager stated, “If there are any questions, please phone me on my cell phone or email me with our usual confidentiality.” In some instances, the accountholders had disclosed to relationship managers that their accounts were undeclared.
Maerki Baumann and its relationship managers also:
-
Permitted assets in an account held by a known U.S. person to be transferred in 2006 to a new account held by a life insurance company, known as an “insurance wrapper”;
-
Processed requests from U.S. taxpayers for cash or precious metal withdrawals, thus not triggering any transaction reporting requirements;
-
Permitted a withdrawal of approximately one million Swiss francs from a U.S. client’s account after the client refused to declare money in the account in the United States;
-
Delivered cash withdrawals to U.S. clients in Switzerland; and
- Offered credit, debit or travel cash cards, which facilitated the access to or use of undeclared funds on deposit at Maerki Baumann.
By participating in the Swiss Bank Program, Maerki Baumann has committed to cooperate with the U.S. government in its efforts to identify U.S. persons who engaged in tax evasion and/or fraud. Among other actions, Maerki Baumann has provided full cooperation to allow the United States to be able to request and obtain from Switzerland through the 1996 Convention and the 2009 Protocol, once ratified, the bank files of non-tax compliant U.S. persons. This will result in the United States receiving files identifying U.S. persons who previously held undeclared accounts at Maerki Baumann, directly or through entities.
Since Aug. 1, 2008, Maerki Baumann had 571 U.S.-related accounts, comprising maximum assets under management of approximately $790 million, including assets of declared accounts. Maerki Baumann will pay a penalty of $23.92 million.
In accordance with the terms of the Swiss Bank Program, Maerki Baumann mitigated its penalty by encouraging U.S. accountholders to come into compliance with their U.S. tax and disclosure obligations. While U.S. accountholders at Maerki Baumann who have not yet declared their accounts to the IRS may still be eligible to participate in the IRS Offshore Voluntary Disclosure Program, the price of such disclosure has increased.
Most U.S. taxpayers who enter the IRS Offshore Voluntary Disclosure Program to resolve undeclared offshore accounts will pay a penalty equal to 27.5 percent of the high value of the accounts. On Aug. 4, 2014, the IRS increased the penalty to 50 percent if, at the time the taxpayer initiated their disclosure, either a foreign financial institution at which the taxpayer had an account or a facilitator who helped the taxpayer establish or maintain an offshore arrangement had been publicly identified as being under investigation, the recipient of a John Doe summons or cooperating with a government investigation, including the execution of a deferred prosecution agreement or non-prosecution agreement. With today’s announcement of this non-prosecution agreement, noncompliant U.S. accountholders at Maerki Baumann must now pay that 50 percent penalty to the IRS if they wish to enter the IRS Offshore Voluntary Disclosure Program.
“Today’s resolution with Maerki Baumann & Co. continues our effort to turn the corner on undisclosed offshore accounts,” said acting Deputy Commissioner International David Horton of the IRS Large Business & International Division. “U.S. taxpayers cannot evade their taxes by hiding their assets in offshore accounts. In partnership with the Department of Justice, we continue to track these taxpayers and their hidden accounts down.”
Acting Assistant Attorney General Ciraolo thanked the IRS and in particular, IRS-Criminal Investigation and the IRS Large Business & International Division for their substantial assistance. Acting Assistant Attorney General Ciraolo also thanked Tracy L. Gostyla and Kimberly M. Shartar, who served as counsel on this matter, as well as Senior Counsel for International Tax Matters and Coordinator of the Swiss Bank Program Thomas J. Sawyer, Senior Litigation Counsel Nanette L. Davis and Attorney Kimberle E. Dodd of the Tax Division.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
-
Joint Statement of 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 Minneapolis Division of the FBI Richard T. ThorntonRead the Press Release
Joint Statement of 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 Minneapolis Division of the FBI Richard T. Thornton:
“The Department received a request yesterday from Minneapolis Mayor Betsy Hodges asking the FBI and Department of Justice to initiate a criminal civil rights investigation into the police-involved shooting of Jamar Clark. This federal investigation will be conducted by the FBI and will be concurrent to the state’s investigation. The United States Attorney’s Office for the District of Minnesota and prosecutors with the Department of Justice’s Civil Rights Division will independently review all evidence to determine if Mr. Clark’s death involved any prosecutable violations of federal criminal civil rights statutes. We ask for cooperation from any witnesses who believe they have information about the shooting and we urge calm throughout our community while investigators seek to determine the facts. As the investigation is ongoing the Department will have no further comment.”
Jamaican National Indicted on Drug Trafficking, Bribery, and False Statement 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 five-count indictment charging Damion Christopher Alexander Brown, 40, of Buffalo, NY, with conspiracy to distribute 1,000 kilograms or more of marijuana, possession with intent to distribute, and distribution of 1,000 kilograms or more of marijuana, maintaining dug involved premises, bribery of a public official, and material false statement. The charges carry a minimum penalty of 10 years in prison, a maximum of life and a $10,000,000 fine.Assistant U.S. Attorney Wei Xiang, who is handling the case, stated that according to the indictment, over a nine month period between 2012 and 2013, Brown trafficked 1,000 kilograms or more of marijuana. In addition the defendant is accused of maintaining a stash house on East Delavan Avenue in Buffalo and bribing a United States postal carrier for help receiving drug shipments. The indictment further states that Brown made false statements regarding his citizenship.
The defendant was arraigned this afternoon before U.S. Magistrate Judge Jeremiah J. McCarthy. He is being held pending a detention hearing on November 19, 2015, at 2:00 p.m.
The indictment is the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero, the Federal Bureau of Investigation, under the direction of Special Agent in Charge Adam S. Cohen, the United States Postal Inspection Service, under the direction of Acting Inspector in Charge James Buthorn, the United States Postal Service, Office of the Inspector General, under the direction of Special Agent in Charge Monica Weyler, Eastern Area Field Office, Philadelphia, PA, and the Amherst Police Department, under the direction of Chief John Askey.
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.
Houston contractor indicted for making false statements about paying prevailing wage on CMHA jobsRead the Press Release
A 61-count indictment was filed charging Marcus Butler, of Houston, with making multiple false statements to the United States Department of Housing and Urban Development and the United States Department of Labor while defrauding the Cuyahoga Metropolitan Housing Authority and several of his former employees, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio, announced that.
The indictment alleges that Butler ran an electrical company called LB Electric of Northeast Ohio in the Cleveland area. Butler and his company agreed to work as subcontractors on a number of CMHA construction projects, including projects at the Riverside Park, Union Square and Delaney Village properties.
Butler, as a subcontractor on the CMHA project, agreed to pay his employees a prevailing wage while they worked on these CMHA projects and further agreed to provide certified weekly payrolls to CMHA. Although Butler submitted numerous certified payrolls claiming that he paid a prevailing wage to his employees, he did not in fact make such payments to his employees and instead submitted false certified payrolls to conceal this conduct. As a result of his conduct, Butler overstated the amount of wages paid to his employees, and thus underpaid his employees, by approximately $126,514, according to the indictment.
If convicted, the defendant’s sentence will be determined by the court after review of the factors unique to this case, including the defendant’s prior criminal record, the defendant’s role in the offense and the characteristics of the criminal conduct. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant U.S. Attorney Om Kakani, following an investigation by the United States Department of Housing and Urban Development, Office of Inspector General, the United States Department of Labor, Office of Inspector General, and CMHA.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove the defendant guilty beyond a reasonable doubt.
Houston Man Sentenced for Importing MethamphetamineRead the Press Release
BROWNSVILLE, Texas – A 35-year-old Houston man has been ordered to federal prison following his conviction related to the trafficking of 4.99 kilograms of methamphetamine, announced U.S. Attorney Kenneth Magidson. A federal jury sitting in Brownsville convicted Derrick Hargrove on all four counts as charged following a three-day trial in March 2015.
Today, U.S. District Judge Andrew S. Hanen, who presided over the trial, handed Hargrove a 180-month sentence to be immediately followed by five years of supervised release.
The jury heard that Hargrove crossed from Mexico into the U.S. on Oct. 9, 2014, at the Gateway Port of Entry pedestrian lane with a suitcase. Upon inspection, a Customs and Border Protection (CBP) officer felt something in the suitcase, x-rayed it and observed two packages inside. A search revealed 4.99 kilograms of pure crystal methamphetamine.
Hargrove initially claimed ownership of the suitcase, but later claimed a stranger in Mexico gave it to him on the streets of Mexico. He claimed the stranger asked him to deliver the suitcase to a person he knew who was helping Hargrove get a liquor license for a nightclub he was allegedly opening in Matamoros.
Hargrove is from Houston but had been living in Matamoros after losing his job.
He will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The case was investigated by Homeland Security Investigations and CBP. Assistant U.S. Attorneys Karen Betancourt and Justin Dinsdale prosecuted the case.
Houston Man Charged in Stolen Identity Tax Refund Fraud SchemeRead the Press Release
A Houston, Texas, man was arrested Friday after a federal grand jury sitting in Houston indicted him for three counts of wire fraud, four counts of theft of public money and seven counts of aggravated identity theft, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Department of Justice’s Tax Division and U.S. Attorney Kenneth Magidson of the Southern District of Texas.
According to the allegations in the indictment, during 2015, Denzel Roberts was part of a stolen identity refund fraud (SIRF) scheme that used stolen personal identification information, including names and social security numbers, to file false federal income tax returns for tax year 2014. Roberts and others used this stolen information to access the Internal Revenue Service’s (IRS) “Get Transcript” web application to obtain tax information of their identity theft victims and filed fraudulent tax returns in those names. Roberts also opened several bank accounts using a fraudulent passport, directed that the fraudulent tax refunds be deposited into those accounts and withdrew the illicit proceeds.
If convicted, Roberts faces a statutory maximum sentence of 20 years in prison for each count of wire fraud, 10 years in prison for each count of theft of public money and a mandatory sentence of two years in prison for aggravated identity theft. He also faces substantial monetary penalties and restitution.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Magidson commended special agents of IRS-Criminal Investigation and the FBI’s Houston Cyber Task Force, who investigated the case and Trial Attorneys Michael C. Boteler and Grace E. Albinson of the Tax Division, who are prosecuting this case with assistance from Assistant U.S. Attorney Jimmy Sledge of the Southern District of Texas.
An indictment merely alleges that crimes have been committed. The defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
HCA Settles Allegations of Billing for Unnecessary Lab Tests and Double Billing for Fetal Testing for $2,000,000Read the Press Release
Contact Person: Jennifer Aldrich (803) 929-3000
COLUMBIA, South Carolina ---- United States Attorney Bill Nettles announced today that the United States Attorney's Office for the District of South Carolina with the State of Florida, settled claims of health care fraud with HCA Holdings, Inc. f/d/b/a HCA, Inc. f/d/b/a HCA – Hospital Corporation of America f/d/b/a Hospital Corporation of America and Parallon Business Solutions, LLC, West Florida Regional Medical Center, Inc. d/b/a West Florida Hospital; HCA Health Services of Florida, Inc. d/b/a Regional Medical Center Bayonet Point; HCA Health Services of Florida, Inc. d/b/a Oak Hill Hospital; and New Port Richey Hospital, Inc. d/b/a Medical Center of Trinity (“HCA”).
The United States and the State of Florida contended that HCA submitted laboratory claims for direct count low density lipids (LDL) when the tests were not ordered and/or not medically necessary at four hospitals in Florida: West Florida Hospital; Oak Hill Hospital; Regional Medical Center Bayonet Point; and Community Hospital of New Port Richie (Trinity Hospital). The United States and the State of Florida also contended that HCA submitted claims for fetal biophysical profiles with non-stress tests (CPT code 76818) and additionally submitted another claim for a standalone non-stress test (CPT code 59025) at Community Hospital of New Port Richie (Trinity Hospital) during the period from January 1, 2007 through September 26, 2014.
The investigation began with the filing of a whistleblower lawsuit called a qui tams lawsuit under the False Claims Act. The suit was filed by an employee of HCA and was captioned United States, the District of Columbia, the States of Florida, California, Colorado, Georgia, Indiana, Louisiana, Nevada, Oklahoma, Tennessee, Texas and Virginia ex rel. Kelly Oxendine v. HCA Holdings, Inc. f/d/b/a HCA, Inc. f/d/b/a HCA-Hospital Corporation of America f/d/b/a Hospital Corporation of America, and Parallon Business Solutions, LLC. The False Claims Act allows the government to recover actual damages and penalties of three times the actual damages and up to $11,000 per false claim. This settlement includes repayment of actual damages and penalties.
The False Claims Act allows individuals to file lawsuits with allegations that fraud has been committed against the federal government on behalf of the government. Whistleblowers, referred to as Relators in the False Claims Act, are entitled to share in any recovery received by the government. In this case, the relator will receive 20% of the funds of the settlement or $400,000 plus she is entitled to her costs and attorney fees.
Mr. Nettles said “This office has made a substantial commitment to combating fraud. Our commitment has made this district one of the leaders on behalf of the whistleblowers. We hope that those who commit fraud will recognize that it is our goal to make the consequences more than just the cost of doing business.”
This case was investigated by agents from U.S. Health and Human Resources Office of the Inspector General and the Defense Criminal Investigative Service.
If you suspect Medicare or Medicaid fraud please report it by phone at 1-800-447-8477 (1-800-HHS-TIPS), or E-Mail at [email protected].
#####
Government Files Lawsuit against Hyannis Company Selling Unapproved “Medical Treatments”Read the Press Release
BOSTON – The U.S. Attorney’s Office announced today that it has sued to enjoin Hyannis-based Lehan Enterprises, Inc., doing business as Optimum Health Services, and its principal, Lesa Sverid, for violating the Food, Drug and Cosmetic Act in connection with their marketing and sale of purported medical treatments containing dimethyl sulfoxide (DMSO), a solvent derived from wood pulp.
The injunction is part of a coordinated nationwide sweep by the Department of Justice and federal partners pursuing civil and criminal cases against more than 100 makers and marketers of dietary supplements. The actions are the result of a year-long effort, begun in November 2014, to focus enforcement resources in the dietary supplement market which is causing increasing concern among health officials.
“Marketing products as treatments for disease when those products lack FDA approval presents potential health risks to consumers because the products may not be safe or effective,” said United States Attorney Carmen M. Ortiz. “Consumers seeking relief from diseases and medical conditions should review FDA-approved products with a medical professional to avoid gambling with their health.”
The complaint filed on behalf of the Food and Drug Administration (FDA) in the District of Massachusetts, alleges that Optimum and Sverid have been marketing their products—DMSO Cream, DMSO Cream with Aloe Vera, and DMSO Roll On—as topical treatments for diseases and medical conditions such as arthritis, cancer, herpes, and cataracts, even though the FDA has not approved the products. The government further alleges that the products do not bear adequate instructions for use by consumers.
The Food, Drug and Cosmetic Act authorizes the federal courts to enjoin permanently the introduction of unapproved new drugs or misbranded drugs into the market. The FDA drug approval process and labeling requirements are designed to ensure that drugs are safe and effective and that they bear adequate instructions for health care professionals and patients to use the products and understand the risks.
This case is among 25 civil actions pursued by the Justice Department’s Consumer Protection Branch, U.S. Attorney’s Offices and the Federal Trade Commission between November 2014 and November 2015. To date, courts have entered judicial orders in 11 cases, requiring dietary supplement makers to change their business practices to ensure that they are selling their products in compliance with the law.
For more information for athletes and general consumers to help realize, recognize and reduce the risks associated with using supplement products, visit the U.S. Anti-Doping Agency’s website. To better understand the range of dietary supplement products and claims, the potential risks of taking supplements and questions to ask a health care professional before taking any supplements, visit the Federal Trade Commission’s website.
U.S. Attorney Ortiz and Antoinette V. Henry, Special Agent in Charge of the U.S. Food and Drug Administration, Office of Criminal Investigations, Metro Washington Field Office, made the announcement today. This case is being handled by Assistant U.S. Attorney Deana El-Mallawany of Ortiz’s Civil Division and Daniel Zytnick of the Justice Department’s Consumer Protection Branch.
Ghanaian man charged with bank fraud and credit card fraudRead the Press Release
A federal grand jury returned a 15-count indictment charging Emmanuel Antwi, a Ghanaian national, with credit card fraud and bank fraud, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment alleges that Antwi defrauded Fifth Third Bank, First Merit Bank, and Key Bank through misrepresentations relating to numerous cash advances.
If convicted, the defendants’ sentence will be determined by the court after review of the factors unique to this case, including the defendants’ prior criminal records, the defendants’ roles in the offense and the characteristics of the criminal conduct. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum
Assistant United States Attorney Matthew J. Cronin is prosecuting the case following an investigation by the Federal Bureau of Investigation and the Elyria Police Department.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove the defendant guilty beyond a reasonable doubt.
Fresno Man Found Guilty of Filing False Liens on Federal Bankruptcy JudgesRead the Press Release
FRESNO, Calif. — After a one-day bench trial, Barry Halajian, 56, of Fresno, was found guilty of two counts of filing false liens on federal bankruptcy judges, United States Attorney Benjamin B. Wagner announced.
The District and Magistrate Judges in the Eastern District of California were recused and U.S. District Judge Stanley A. Bastian from the Eastern District of Washington heard the case. Halajian waived his right to a jury trial, and after hearing the evidence, Judge Bastian returned his verdict late Tuesday afternoon.
According to court documents and evidence presented at trial, in 2010, Halajian initiated a Chapter 7 bankruptcy proceeding in the U.S. Bankruptcy Court in Fresno. Two years later, he initiated a Chapter 9 bankruptcy proceeding in the same court. On June 29, 2012, the Chapter 9 bankruptcy was dismissed. On July 17, 2012, Halajian filed with the California Secretary of State a series of liens on the personal property of two federal bankruptcy judges in the Eastern District of California, listing them as debtors and himself as the secured party
“Filing bogus liens against federal officials for purposes of harassment is a crime,” said U.S. Attorney Wagner. “Those who commit it are asking to be prosecuted.”
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorneys Patrick Delahunty and Duce Rice are prosecuting the case.
Halajian will be scheduled for sentencing by Judge Bastian in February or March of 2016. Halajian faces a maximum statutory penalty on each count of 10 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Fort Myers Man Pleads Guilty to Check-Kiting Bank Fraud SchemeRead the Press Release
Fort Myers, Florida – United States Attorney A. Lee Bentley, III announces that Roger Eugene Hagood (44, Fort Myers) today pleaded guilty to four counts of bank fraud. He faces a maximum penalty of 30 years in federal prison on each count.
According to the plea agreement, Hagood operated Coral Palm Auto Sales, a used car dealership. Coral Palm Autos Sales received financing through a third-party lender to purchase automobiles. Vehicle titles were provided as security to procure the loans, and loan payments were made using proceeds from the vehicle sales. Once each loan was paid in full, the third-party lender would release the vehicle titles used to secure the loan back to Coral Palm Auto Sales.
In November and December 2011, Hagood engaged in a check-kiting scheme by writing 13 checks, totaling $1,592,121.00, on his business checking account, made payable to the third-party lender, knowing that the account lacked sufficient funds to cover the checks. As a result, the third-party lender wrote new loan checks on its account, made payable to Coral Palm Auto Sales, based on Hagood’s worthless checks. According to the plea agreement, Hagood’s scheme caused federally insured financial institutions to suffer significant financial losses.
On March 29, 2015, Hagood attempted to surreptitiously dispose of 20 banker’s boxes of records and documents pertaining to Coral Palm Auto Sales by throwing them in a dumpster located about a mile and a half from his residence. A video surveillance camera partially captured Hagood attempting to dispose of the boxes. These boxes were retrieved by the Lee County Sheriff’s Office and turned over to the FBI. A portion of the records and documents Hagood tried to destroy were responsive to a federal subpoena previously served on him on March 24, 2015.
This case was investigated by the Federal Bureau of Investigation and the Florida Department of Law Enforcement. It is being prosecuted by Assistant United States Attorney Jeffrey F. Michelland.