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30 October 2015
Employer Support of the Guard and Reserve (Esgr) Honors U.S. Attorney Alicia A.G. LimtiacoRead the Press Release
United States Attorney ALICIA A.G. LIMTIACO, U.S. Attorney for the Districts of Guam and the Northern Mariana Islands, was presented with the “Above and Beyond” Award on May 23, 2015, by the Employer Support of the Guard and Reserve (ESGR). The awards event was held at the Sheraton Laguna Resort & Spa in Tumon, Guam. U.S. Attorney Limtiaco and the U.S. Attorney’s Office were nominated by an employee of the U.S. Attorney’s Office presently serving in the Guam Air National Guard.
According to the ESGR website, the Above and Beyond Award is presented by ESGR State Committees to recognize employers at the local level who have gone above and beyond the legal requirements of the Uniformed Services Employment and Reemployment Rights Act (USERRA) by providing their Guard and Reserve employees additional, non-mandated benefits such as differential or full pay to offset lost wages, extended health benefits, and other similar benefits. The award is given in limited numbers by state committees to employers who have had at least one of their supervisors/managers recognized with a Patriot Award, and who have signed or agreed to sign a Statement of Support. Statements of Support pledge, among other things, to recognize, honor and enforce USERRA and to encourage opportunities to employ Guardsmen, Reservists, and Veterans.
U.S. Attorney Limtiaco expressed her appreciation to all Veterans and to all service members for their courage and fortitude and their commitment to protecting our freedoms as Americans, and to the ESGR for their continued efforts to raise awareness among employers about the significant role and responsibilities employers have in supporting and protecting the rights of employees in military service.
Student Trainee Clerk Sean Perez, former member of the
U.S. Air Force Reserve, U.S. Attorney Alicia Limtiaco and
AUSA Stephen Leon Guerrero (Major in the Guam Air
National Guard)EEOC Training Held for the Districts of Guam and the NMIRead the Press Release
U.S. Attorney Alicia A.G. Limtiaco, Districts of Guam and the Northern Mariana Islands (NMI), announced that the U.S. Attorney’s Office sponsored training by Glory Gervacio Saure, Director of the Honolulu Local Office for the U.S. Equal Employment Opportunity Commission (EEOC). In her capacity as Director, Ms. Gervacio Saure oversees the EEOC’s operations in the State of Hawaii and the U.S. Territories of Guam, American Samoa, Wake Islands and the Commonwealth of the Northern Mariana Islands.
The half-day training was held at the U.S. Attorney’s Office in Guam on September 17, 2015. The training session reviewed Equal Employment Opportunity laws and recent EEOC updates, including new developments involving sex discrimination (i.e., discrimination against pregnant women and LGBT persons) and rules and regulations on the use of arrest and conviction records in the employment process. The training was attended by approximately 30 members from various sectors of the community.
Glory Gervacio Saure during her presentation.District Man Sentenced to 40 Years in Prison for Killing Man in Northwest WashingtonRead the Press Release
WASHINGTON – Erik Postell, 27, of Washington, D.C., was sentenced today to 40 years in prison for killing a man in 2013 in Northwest Washington, U.S. Attorney Channing D. Phillips announced.
Postell was found guilty by a jury in July 2015 of first-degree murder while armed and three firearms offenses stemming from the slaying of Paul Danzo Tanoh. The verdict followed a trial in the Superior Court of the District of Columbia. Postell was sentenced by the Honorable Lynn Leibovitz. Following his prison term, he will be placed on five years of supervised release.
According to the government’s evidence, on March 21, 2013, at about 2:45 a.m., Postell fatally shot Mr. Tanoh, 24, as Mr. Tanoh sat in the driver's seat of his car, which was stopped in the 1000 block of 17th Street NW. The shooting followed a brief physical altercation between Postell and Mr. Tanoh that took place inside a nearby nightclub 15 minutes earlier.
Following the confrontation at the nightclub, Postell retrieved a .45 caliber handgun from a parked car and tracked down Mr. Tanoh. He then stood alongside Mr. Tanoh's driver's side window and fired at him nine times. Postell fled in a vehicle driven by another man, Michael Smith. Smith, 35, of Camp Springs, Md., previously pled guilty to multiple felonies for his role in the murder of Mr. Tanoh and is to be sentenced Nov. 20, 2015. Postell was taken into custody on Oct. 11, 2013, and had been held without bond ever since.
In announcing the sentence, U.S. Attorney Phillips commended the work of the detectives, officers and others who investigated the case from the Metropolitan Police Department (MPD). He also expressed appreciation for the assistance provided by the U.S. Secret Service; the District of Columbia Department of Forensic Sciences; Bode Technologies; Assistant U.S. Attorney Kellen Dwyer of the U.S. Attorney’s Office for the Eastern District of Virginia; Trial Attorney Jessica N. Moran of the Department of Justice’s Tax Division, and Assistant U.S. Attorney Ellen Chubin Epstein of the U.S. Attorney’s Office for the District of Columbia. In addition, he acknowledged the work of those who handled the murder case for the U.S. Attorney’s Office, including Paralegal Specialists Lynda Randolph, Donville Drummond, Sandra Lane, Alesha Matthews, and Kalisha Johnson-Clark; Litigation Technology Specialists Leif Hickling, Kimberly Smith, Thomas “Ron” Royal, Paul Howell, Aneela Bhatia, Anisha Bhatia, Claudia Gutierrez, Joshua Ellen, and Karen McColman; Intelligence Specialists Sharon Johnson, Zachary McMenamin, and William Hamann; Victim/Witness Advocate Marcia Rinker, and La June Thames, Katina Adams-Washington, and David Foster, all of the Victim/Witness Assistance Unit.
Finally, he commended the work of Assistant U.S. Attorney Michael C. Liebman and former Assistant U.S. Attorney Philip A. Selden, who investigated and prosecuted the case.
District Man Sentenced to 10 Years in Prison for Role in Three Robberies in Northeast WashingtonRead the Press Release
WASHINGTON - Damairzio Wells, 18, of Washington, D.C., has been sentenced to a 10-year prison term on charges stemming from three robberies in Northeast Washington during a three-month period this year, U.S. Attorney Channing D. Phillips announced today.
Wells pled guilty in September 2015, in the Superior Court of the District of Columbia, to two counts of robbery and one count of armed robbery, involving three separate crimes. He was sentenced on Oct. 29, 2015, by the Honorable Yvonne Williams. Upon completion of his prison term, he will be subject to five years of supervised release.
According to the government’s evidence, in two separate incidents, on Feb. 15, 2015 and Feb. 24, 2015, Wells placed orders at two different restaurants to lure the delivery drivers to locations in Northeast Washington. Once the drivers arrived, he robbed them at gunpoint. After the first robbery, Wells bragged in a Facebook post that “EatGood we eatin good erynight,” with a picture of the food and cash he had stolen. In the second robbery, Wells thrust the gun into the driver’s mouth, causing significant injuries. The gun used in this robbery was recovered and the muzzle of the gun contained the DNA of the delivery driver and of Wells.
In the third incident, on May 24, 2015, Wells was driving his car in the 1300 block of Monroe Street NE when he chanced upon a college student returning from a day of work. Wells pulled the car up and blocked the student’s path. Two unknown individuals jumped out of the car and demanded the student’s bag with the threat that they had a weapon. The car driven by Wells was located by officers of the Metropolitan Police Department (MPD) within minutes from where the robbery had occurred, and Wells was arrested. An imitation firearm was recovered from the car driven by Wells, along with the proceeds of the robbery.
In announcing the sentence, U.S. Attorney Phillips praised the work of those who investigated the case from the Metropolitan Police Department. He acknowledged the work of those who handled the case for the U.S. Attorney’s Office, including Paralegal Specialist Donville Drummond and Victim/Witness Coordinator Jennifer Clark. Finally, he thanked Assistant U.S. Attorneys Jennifer Kerkhoff, Nebiyu Feleke and Laura Crane, who investigated and indicted the case.
District Man Pleads Guilty to Voluntary Manslaughter for Shooting Man Following Argument About Victim's DogRead the Press Release
WASHINGTON – Rickey Jones, also known as Heritage Rickey Jones, 22, of Washington, D.C., pled guilty today to charges stemming from the shooting death of a man last year in Southeast Washington, U.S. Attorney Channing D. Phillips announced.
Jones pled guilty in the Superior Court of the District of Columbia to charges of voluntary manslaughter and carrying a pistol without a license. He is to be sentenced on Jan. 22, 2016, by the Honorable Robert E. Morin. The plea, which is contingent on the Court’s approval, calls for a sentence of ten years in prison.
According to the government’s evidence, on Sunday, Nov. 30, 2014, Jones and the victim, Kirk Perry, 50, got into verbal arguments in the 2400 block of Elvans Road SE over Mr. Perry’s dog. During those arguments, Jones said, “I got a 4-5 with an extended clip for your dog.” Mr. Perry and a family member left the area and went to a nearby laundromat.
About three hours after the argument, Mr. Perry returned to his apartment complex. While bringing laundry into the apartment, he again saw Jones outside. After a mutual associate approached Mr. Perry and suggested that he speak with Jones, Mr. Perry returned outside in hopes of settling their dispute. At approximately 12:35 a.m., on Dec. 1, 2014, Mr. Perry had a conversation with Jones that occurred in between two parked cars in a parking lot of the apartment complex on Elvans Road where they both resided. At the time of that conversation, Mr. Perry had a firearm tucked into his waistband.
Jones, armed with a pistol, fired at Mr. Perry and Mr. Perry was struck multiple times. When Mr. Perry fell to the ground face down, Jones continued firing his weapon. Mr. Perry suffered 13 gunshot wounds, including two in his back. When medical and law enforcement personnel arrived, they transported Mr. Perry to a nearby medical facility where Mr. Perry was pronounced dead.
In announcing the guilty plea, U.S. Attorney Phillips commended the work of the detectives of the Criminal Investigations Division Homicide Branch, crime scene officers, and the Seventh Police District of the Metropolitan Police Department. He also expressed appreciation for the work of the D.C. Department of Fire and Emergency Medical Services and the D.C. Office of the Chief Medical Examiner. He acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Victim/Witness Advocate Jennifer Clark; Victim/Witness Security Specialist Tanya Via; Paralegal Specialists Zekiah Wright and Debra Joyner; Investigative Analyst Zachary McMenamin, and Assistant U.S. Attorney Natalia Medina. Finally, he praised the work of Assistant U.S. Attorney Robert Eckert, who investigated and prosecuted the case.
Defendant Convicted of Three Counts of Murder in Indian CountryRead the Press Release
Today, a man was convicted of three counts of murder in Indian country after a week-long jury trial, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Mark F. Green of the Eastern District of Oklahoma.
David Brian Magnan, 53, was convicted in the shooting deaths of three victims, James Howard, Karen Wolf and Lucilla McGirt, who were all members of the Seminole Nation. U.S. District Court Judge Ronald A. White of the Eastern District of Oklahoma presided over the trial.
The evidence presented at trial established that the victims were celebrating a birthday on the evening of March 1, 2004, at Howard’s home. In the early morning hours of March 2, 2004, Magnan arrived at the home with two other men. Armed with a pistol, Magnan confronted an individual outside of the house and a fight ensued, after which Magnan shot the individual in the abdomen. Magnan then entered the home where he found the three victims asleep. He first confronted Howard, who he shot multiple times in the chest as he lay in bed. Magnan then moved to a bedroom where he found McGirt and Wolf sleeping. Magnan shot Wolf in the head and shot McGirt in the shoulder and head. McGirt survived that evening and identified Magnan as the shooter, but she ultimately succumbed to her wounds and died two weeks later. Following the shootings, Magnan and the two other men fled the scene and hid the murder weapon, which police subsequently recovered.
This case was investigated by the Oklahoma State Bureau of Investigation, the Seminole County Sheriff’s Office, the Seminole Nation Lighthorse Police and the FBI. The case is being prosecuted by Trial Attorney Mike Sheckels of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Edward Snow of the Eastern District of Oklahoma. Trial Attorney Richard Friedman of the Criminal Division’s Appellate Section handled an interlocutory appeal.
Dayton Couple Charged in Alleged $70 Million Ponzi SchemeRead the Press Release
DAYTON – A federal grand jury has charged William M. Apostelos, 54, and Connie M. Apostelos, 50, both formerly of Springboro, Ohio, with charges related to fraudulently inducing hundreds of individuals from around the country to invest $70 million collectively.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Kathy A. Enstrom, Special Agent in Charge, Internal Revenue Service Criminal Investigation, Cincinnati Field Office, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI) and Christopher White, Assistant Inspector in Charge, U.S. Postal Inspection Service, James Vanderberg, U.S. Department of Labor Office of Inspector General, the U.S. Department of Labor Employee Benefits Security Administration and Brian Peters, Enforcement Attorney, Ohio Department of Commerce Division of Securities, announced the indictment returned October 29 and unsealed today.
The indictment alleges that beginning in 2009, The indictment alleges that beginning in 2009, and continuing for at least five years, the couple and others orchestrated a Ponzi scheme in the Dayton area in which nearly 480 investors lost more than $30 million collectively. William Apostelos operated and oversaw multiple purported investment and asset management companies in the Dayton area, including WMA Enterprises, LLC, Midwest Green Resources, LLC and Roan Capital. He allegedly falsely reported that he held a degree in mathematics and was a registered securities broker.
Connie Apostelos, also known as Connie Coleman, also operated and oversaw multiple companies in the Dayton area, including Coleman Capital, Inc. and Silver Bridle Racing, LLC. These companies were allegedly operated through improper use of investor funds to William Apostelos’ companies.
The couple recruited investors from 37 states to invest in WMA and Midwest Green, telling the investors that their money would be used for acquiring stocks or securities, purchasing real estate or land, providing loans to business and buying gold and silver.
When the defendants became late on interest payments to the victims, it is alleged that they advised that their bank account had been hacked, a bank mistakenly failed to wire payment and/or the deal the victim had invested in was temporarily on hold.
A number of investors have initiated legal action against the couple.
William and Connie Apostelos are charged with one count of conspiracy to commit mail and wire fraud, eight counts of mail fraud and 13 counts of wire fraud, each crimes punishable by up to 20 years in prison. They were also charged with two counts of money laundering, which each carry a potential 10-year prison sentence. They were also charged with one count of theft or embezzlement from employee benefit plan, which carries a maximum penalty of up to five years imprisonment. Finally, Connie Apostelos is charged separately with one count of making a false statement, which carries a maximum penalty of up to five years imprisonment.
U.S. Attorney Stewart commended the investigation of this case by law enforcement, and Assistant United States Attorneys Brent G. Tabacchi and Alex R. Sistla, who are prosecuting the case.
The couple is scheduled to appear before U.S. Magistrate Judge Michael J. Newman at 1:30pm today.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
Chesapeake Man Sentenced to 30 Years for Role in Heroin Overdose DeathRead the Press Release
NEWPORT NEWS, Va. – Ronnie A. Brickhouse, 36, of Chesapeake, was sentenced today to 360 months in prison for his role in a conspiracy to distribute and possess with intent to distribute one kilogram or more of heroin, and, for his distribution of heroin which resulted in the death of Robert Joseph Mills in February 2013.
Brickhouse, who pleaded guilty on Feb. 19, 2015, was also ordered to pay $2 million in restitution and $5,000 in funeral expenses. According to court documents, from approximately June 2010 until October 2014, Brickhouse was the leader of a large scale heroin conspiracy that supplied major drug traffickers with multiple kilogram quantities of heroin in the Eastern District of Virginia. On Feb. 1, 2013, Brickhouse provided heroin to a conspirator who then provided it to Mills. Mills injected the heroin at his parent’s house in York County and was found dead shortly thereafter.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Gregory J. Cherundolo, Assistant Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Richmond Field Division; and Richard W. Meyers, Chief of Newport News Police, made the announcement after sentencing by U.S. District Judge Arenda L. Wright Allen. Assistant U.S. Attorneys Robert E. Bradenham, II, and Kevin Hudson, and Trial Attorney Jennifer Sykes of the Criminal Division’s Organized Crime and Gang Section prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:14cr60.
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Carroll County Man Charged with Carjacking and Attempted Bank RobberyRead the Press Release
Baltimore, Maryland – Franklin Albert Johnson, age 41, of, Westminster, Maryland, has been charged with attempted bank robbery and carjacking, in connection with the July 23, 2015, attempted robbery of a bank in Mt. Airy, Maryland, in which the alleged carjacking victim was forced to wear and carry purported explosive devices. The criminal complaint was filed on October 27, 2015 and unsealed on October 29, 2015 at Johnson’s initial appearance. Johnson remains detained.
The criminal complaint 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; and Chief Gary Gardner of the Howard County Police Department.
According to the affidavit filed in support of the criminal complaint, on July 23, 2015, a man entered the bank while talking on a cell phone and carrying a briefcase. He approached a bank employee and handed the employee the cell phone. He also opened the briefcase and displayed what appeared to be a homemade explosive device. The bank employee immediately ordered the evacuation of the bank. The suspected robber remained in the bank briefly, and was seen on bank surveillance video using a pair of scissors to remove a second apparent explosive that was attached to his person with duct tape. After the man removed the device from his body, he left the bank, but stayed at the scene and surrendered to police when they arrived.
The man told law enforcement that he had been operating as a “hack” (unlicensed taxi) near Lexington Market, in Baltimore City, and had picked up an unknown male customer (“UM”), subsequently identified as Johnson, who later forced him at gunpoint to wear what he believed was an explosive device, and to carry a second purported explosive device into the bank in the briefcase. Johnson allegedly told the victim that he was going to rob a bank for him and that if he did as directed he would not be harmed. Johnson dropped the victim off at the bank, and directed him to hand the cell phone to a bank employee. The victim entered the bank and gave the phone to a bank employee, who spoke with Johnson, who was already on the line. Upon exiting the bank, the victim saw that Johnson was no longer parked in the parking lot, but was afraid he would return, so he walked across the street from the bank and waited for the arrival of the police, to whom he surrendered. The victim’s vehicle, a Gold Hyundai Elantra, was recovered a short time later, parked near the Woodbine Inn. The two purported explosive devices were recovered and found to be inert. An examination by the FBI Crime Lab found that the devices were carefully designed and constructed to look like actual explosive devices.
Johnson faces a maximum sentence of 20 years in prison for attempted bank robbery and a maximum of 20 years in prison for carjacking.
A criminal complaint is not a finding of guilt. An individual charged by criminal complaint is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein commended FBI and Howard County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney John F. Purcell, who is prosecuting the case.
California Man Sentenced to Federal Prison for Cocaine Trafficking Conviction in New MexicoRead the Press Release
ALBUQUERQUE – Gilbert Rosales, 43, of Dinuba, Calif., was sentenced yesterday in federal court in Albuquerque, N.M., to 60 months in prison followed by four years of supervised release for his cocaine trafficking conviction.
Rosales and his co-defendant Oscar Casillas-Nunez, were arrested in Oct. 2013, on a criminal complaint charging them with conspiracy to distribute cocaine after DEA agents found approximately 4.6 kilograms of cocaine in their baggage during an interdiction investigation at the Amtrak Train Station in Albuquerque on Oct. 16, 2013. Both men were indicted Oct. 30, 2013, and charged with conspiracy to distribute cocaine and possession of cocaine with intent to distribute in Bernalillo County, N.M.
On March 27, 2015, Rosales pled guilty to the indictment and admitted that on Oct. 16, 2013, he and Casillas-Nunez transported cocaine while traveling through Albuquerque on the Amtrak Train. Rosales further admitted that when the pair arrived in Albuquerque, he left the train to avoid police, and when police questioned Casillas-Nunez he abandoned the bag the cocaine was in and did not return to the train.
Casillas-Nunez has entered a plea of not guilty to the complaint and indictment and is currently scheduled for trial in Nov. 2015. Charges in criminal complaints and indictments are merely accusations and defendants are presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by the Interdiction Unit of the DEA’s Albuquerque office which focuses on disrupting the flow of narcotics, weapons, and the proceeds of illegal activities as they are smuggled into or through New Mexico in passenger buses, passenger trains, commercial vehicles and automobiles. Assistant U.S. Attorney Paul Mysliwiec is prosecuting the case.
Bridgeport Man Sentenced to 10 Years in Federal Prison for Selling Stolen FirearmsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that MICHAEL MURPHY, 27, of Bridgeport, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 120 months of imprisonment, followed by three years of supervised release, for selling numerous firearms that had been stolen from the Smith & Wesson manufacturing plant in Springfield, Mass.
According to court documents and statements made in court, on November 8, 2012, Elliot Perez, a truck driver for Pace Motor Lines, picked up five boxes of firearms from the Smith & Wesson manufacturing plant in Springfield and placed the boxes in his truck. At the same time, Perez stole three additional boxes containing a total of 111 firearms. He then drove the truck containing all the firearms to his residence in Bridgeport where he met MURPHY. Shortly thereafter, Perez delivered the original five boxes of firearms to the trucking company’s distribution center in Stratford.
Perez and MURPHY stored and ultimately sold many of the stolen guns. More than 50 of the stolen firearms have not been recovered by law enforcement.
Perez and MURPHY were originally arrested by the Stratford Police Department on state firearms charges. MURPHY has been in custody since his federal arrest on November 30, 2012.
On December 12, 2013, MURPHY pleaded guilty to one count of conspiracy to possess and sell stolen firearms, and one count of possession of firearms by a convicted felon.
Perez has been in custody since his state arrest on November 23, 2012. On February 11, 2014, he pleaded guilty to one count of conspiracy to possess and sell stolen firearms, one count of possession of firearms by a convicted felon, and one count of making a false statement to a federal law enforcement officer. On October 27, 2015, he was sentenced to 210 months of imprisonment.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Stratford Police Department and the Bridgeport Police Department. The case was prosecuted by Assistant U.S. Attorney Rahul Kale.
Asset Forfeiture Training Hosted by the U.S. Attorney’s Office for the Districts of Guam and the NMIRead the Press Release
U.S. Attorney Alicia A.G. Limtiaco, Districts of Guam and the Northern Mariana Islands, announced that the U.S. Attorney’s Office hosted an Asset Forfeiture training conducted by Scott Gilbert, Assistant U.S. Attorney of the Southern District of Mississippi, and James Curt Bohling, Assistant U.S. Attorney of the Western District of Missouri. The training was held at the U.S. Attorney’s Office in Guam on August 26 and 27, 2015, with a live feed to the Northern Mariana Islands via video teleconference, and was made available to federal and local law enforcement officers and the prosecution team of the U.S. Attorney’s Office. Approximately 75 participants attended the training.
The training topics included Forfeiture 101, Financial Investigation and Tracing of Assets, Anticipating Defenses, Forfeiting Real Property, Adoption and Structuring Orders, Equitable Sharing, Building a Federal Case from a Money Seizure, and Ethics.
From left to right: U.S. Attorney’s Office Staff from Guam and the
Northern Mariana Islands with instructors Scott Gilbert and James
Bohling, and attendees from DEA and ATF.
Allentown Man Pleads Guilty in Sex Trafficking CaseRead the Press Release
PHILADELPHIA - Corderro Cody, 28, of Allentown, PA, pleaded guilty today to charges related to his running of a sex trafficking operation. Cody pleaded guilty to conspiracy to commit sex trafficking by force, fraud or coercion, 12 counts of sex trafficking, conspiracy to transport individuals across state lines for the purpose of prostitution, and one count of sex trafficking of a minor.
Cody recruited women to work as prostitutes, referred to his prostitution business as the “program,” and advertised the women on Backpage.com. The women were sometimes driven to other states and forced to perform sexual acts. Cody recovered and kept most, if not all, of the money generated by the sexual acts, and used physical force in the form of beatings when the women did not adhere to the “program,” and to maintain the women performing commercial sexual acts.
United States District Court Judge Edward G. Smith scheduled a sentencing hearing for January 29, 2016. Cody faces a mandatory minimum prison term of 15 years up to a maximum of life, a fine of up to $3.75 million, a mandatory minimum of five years of supervised release up to lifetime supervised release, and a $1,500 special assessment.
The case was investigated by Homeland Security Investigations and the Allentown Police Department. It is being prosecuted by Assistant United States Attorney Sherri A. Stephan, and Trial Attorney Anita Channapati of the Civil Rights Division of the Department of Justice.
Agueda Johnston Middle School Invites U.S. Attorney to Youth and Parent SymposiumRead the Press Release
ALICIA A.G. LIMTIACO, U.S. Attorney for the Districts of Guam and the Northern Mariana Islands (NMI), was invited to speak on “Enhancing Community Bonds” at Agueda Johnston Middle School’s Youth and Parent “Change for the Better” Symposium, held on February 28, 2015.
U.S. Attorney Limtiaco introduced the audience to the Department of Justice’s Smart on Crime Initiative, which focuses on crime prevention, strengthening protections for vulnerable populations, and reentry of criminal offenders into the community. The U.S. Attorney spoke with students, parents/guardians, family members, school teachers, and administrators about the importance of building community relationships, as well as the value of collaboration, diversity, and cultural competency, in our efforts to foster greater understanding, appreciation and trust among the various ethnic and multicultural groups on Guam.
U.S. Attorney Limtiaco addressing the audience at Agueda
Johnston Middle School.
Picture of the students and parents attending the Symposium
Group photo of the organizers and presenters at the SymposiumAcoma Pueblo Man Sentenced for Federal Misdemeanor Assault ChargeRead the Press Release
ALBUQUERQUE – Kevin Bernard Joe, 41, a member and resident of Acoma Pueblo, N.M., was sentenced yesterday in Santa Fe, N.M., to 11 months in prison followed by one year of supervised release for his misdemeanor conviction of assaulting an Indian woman.
Joe was arrested on April 27, 2015, on a criminal complaint charging him with an assault charge. According to the complaint, on March 23, 2015, the Acoma Pueblo Tribal Police Department was notified by the victim of an assault occurring on Acoma Pueblo in Cibola County, N.M. The complaint alleged that Joe assaulted the victim, an Acoma woman, by punching her and causing the victim to sustain injuries, including a laceration above her left eye. Joe was subsequently indicted on May 12, 2015, and charged with assault of an intimate partner resulting in substantial bodily injury.
On June 29, 2015, Joe entered a guilty plea to a misdemeanor information and admitted assaulting the victim by punching her with a closed fist. He also acknowledged that his assault caused the victim to suffer a laceration to the left eye that required medical attention.
This case was investigated by the Laguna/Acoma Agency of the BIA’s Office of Justice Services and the Acoma Pueblo Tribal Police Department. Assistant U.S. Attorney Raquel Ruiz-Velez prosecuted the case.
The case was brought pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
29 Defendants Arrested for Human Trafficking Offenses Following Undercover InvestigationRead the Press Release
Federal authorities arrested 29 people in 13 cities across eight states Thursday on sex trafficking and related charges in a sweeping operation dubbed “Operation Safe Haven” announced United States Attorney, Middle District of Georgia Michael J. Moore.
The operation, led by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), began in Moultrie, Georgia and identified a loosely affiliated organization that coordinates the movement of Hispanic females throughout the southeastern United States. The traffickers within this organization work as independent operators and coordinate the movement and delivery of women for sexual purposes.
According to a five-count indictment filed in the U.S. District Court for the Middle District of Georgia, at least one of the victims identified during the investigation was a minor when she was trafficked. Law enforcement officers rescued 15 potential victims of fraud, force or coercion, in the brothels and residences searched yesterday.
“Human sex trafficking is a cancer that we must cut out, and then aggressively fight with all of our resources. Sometimes the trafficking victims are kidnapped and forced into sexual servitude through violence. Other times the victims are lured with the promise of a better life, and then held hostage by predators who literally financially imprison them or intimidate them with threats of harm or shame to them or their families. No matter the circumstances that brought these women into sexual servitude, they are victims. And whether the weapons used by the traffickers cause physical, mental or emotional harm, they are predators, and we will track them down no matter the cost. This investigation has been an example of the outstanding cooperation between federal and state agencies. I applaud their efforts. I also want to thank my colleagues, US Attorneys George Beck, Joyce Vance and Chris Canova for their partnership and assistance,” said U.S. Attorney Michael Moore.
The indictment charges six people with conspiracy to participate in the sex trafficking of a minor. 38 people are charged with conspiracy to transport a person in interstate commerce for prostitution – nine suspects remain at large after 29 were arrested Thursday. Three of the network’s customers have been charged with promoting the prostitution.
Individuals charged with conspiracy to engage in sex trafficking of a minor face up to life imprisonment and a $250,000 fine. Individuals charged with conspiracy to transport a person in interstate commerce for purposes of prostitution and individuals charged with promoting prostitution face imprisonment up to five years and a $250,000 fine. All defendants are presumed innocent until proven guilty.
The female victims’ identities are being protected while HSI ensures they receive emergency medical assistance, food and shelter. HSI provides relief to victims of human trafficking by allowing for their continued presence in the United States during criminal proceedings. Victims may also qualify for a T visa, which is issued to victims of human trafficking who have complied with reasonable requests for assistance in investigations and prosecutions.
“As previous investigations have shown, and “Operation Safe Haven” yet again confirms, the sex trafficking of foreign women in the United States is done by loosely organized criminal networks who have little, if any regard for the women they victimize,” said Special Agent in Charge Nick S. Annan, ICE Homeland Security Investigations in Atlanta. “This investigation identified women victimized through fraud, force and coercion, including underage teens. To the criminals behind these illegal enterprises, these women are just pieces of meat used to pull a quick profit and then discarded or passed on to the next trafficker down the line.”
“Operation Safe Haven” is the first major investigation supported by the Joint Task Force for Investigations (JTF-I) since it became fully operational in July 2015. JTF-I first identified this operation as a priority investigation in January. The task force directed significant funding, intelligence, and analytical support to bolster the special agents investigating this criminal network from the HSI Savannah office.
"This operation highlights exactly what the Secretary charted us to do through these task forces,” said Dave Marwell, Director of DHS Joint Task Force – Investigations. “By strategically applying the broad resources of DHS against a priority investigation, criminal organizations don't stand a chance. We will continue to focus our efforts to ensure we are dismantling criminal organizations that traffic women into the US for the purposes of sexual slavery."
U.S. Customs and Border Protection’s (CBP) Air and Marine Operations (AMO) became involved with Operation Safe Haven in July 2014. AMO’s Jacksonville Air and Marine Branch flew more than 115 flight hours and launched 38 separate missions in furtherance of this dynamic investigation, using covert aerial surveillance to track suspects and identify multiple target locations. AMO’s presence greatly increased the situational awareness of agents on the ground. Multiple air assets and crews were committed to this investigation, including crews from AMO’s Miami, New Orleans and Houston locations.
“Collaboration is crucial in a mission of this caliber,” said Director Daniel Meagher, Air Operations at the Jacksonville Air and Marine Branch. “I am proud to say that our unique capabilities contributed to both the success of this mission and to the safety of all those involved.”
Operation Safe Haven was led by HSI-Savannah with assistance from Savannah Chatham Metropolitan P.D, Savannah State University P.D., Chatham Narcotics Team, Colquitt County SO, Pierce County SO, CBP AMO, ICE Enforcement and Removal Operations, Coast Guard Investigative Service and Gwinnett County District Attorney's Office.
Anyone who suspects instances of human trafficking is encouraged to call the HSI tip line at 1-866-DHS-2-ICE (866-347-2423) or the Human Trafficking Hotline at 1-888-373-7888. Online tips can be submitted at www.ice.gov/tipline. Anonymous calls and tips are welcome.
DEFENDANTS
HOME TOWN
AGE
(1) Jose Roberto Laines a/k/a “El Viejon”
Moultrie, GA
59
(2) Galdino Benitez
Moultrie, GA
57
(3) Carmen Michelle Pecina
Moultrie, GA
42
(4) Yamileth Hernandez a/k/a “Yamileth Portillo” and “Gabby”
(5) Maria Mercado a/k/a “Marisol”
Duluth, GA
51
(6)Heriberta Caraballo a/k/a “Cristina” and “La Columbiana”
Louisiana
55
(7) Juan Ortiz Bojorquez
Louisiana
39
(8) Juan Jose Sotelo a/k/a “Don Jose”
Prairieville, LA
(9) Antonio Flores Esparza a/k/a “Tonio”
Pensacola, FL
34
(10) Jose Trujillo a/k/a “El Gordo”
Houston, TX
53
(11) Germania Guzman a/k/a “Deborah”
Houston, TX
56
(12)Flor Torres
Columbia, SC
34
(13) Uvaldo Barrioz Perez
Moultrie, GA
37
(14) John McLeod
Moultrie, GA
33
(15) Juan Gomez
Hartsfield, GA
52
(16) Evelyn Patricia Yanes, a/k/a “Patty”
Houston, TX
42
(17) Arnold Campbell
Houston, TX
29
(18) Leti LNU
Atlanta, GA
(19) Alejandro Monterrey
Norcross, GA
53
(20) Carlos Perez a/k/a “Chema”
Atlanta, GA
(21) Bernabe Carbajal, a/k/a “El Chaparro”
Montgomery, AL
36
(22) Gloria Isabel Reyes, a/k/a ”Estela Reyes,” Gloria Dominguez”, “Dona Gloria”
Forest, MS
60
(23) Milton Ivan Dominguez
Forest, MS
43
(24) Luis Roberto Dominguez
Mississippi
41
(25) Amada Garcia a/k/a “Marlene”
Taylor, SC
46
(26) Jaime Ramirez Villeda
Winston-Salem, NC
34
(27) Ernesto Trejos Villeda
Winston-Salem, NC
32
(28) Alba Blandon a/k/a “Dona Alba”
Sunset, LA
55
(29) Mauro Lira a/k/a “Chino”
Hattiesburg, MS
24
"Spice" Conspirator Sentenced in Federal CourtRead the Press Release
United States Attorney Kenyen R. Brown of the Southern District of Alabama announced that Irvin Louis Kendrick, 51, of Prichard, Alabama, was sentenced in federal court today for his role in a conspiracy to distribute synthetic marijuana, or "spice," and a conspiracy to launder drug money. Kendrick pled guilty to the charges in April of 2015.
United States District Court Judge Callie V. S. Granade imposed a sentence of 64 months in Kendrick’s cases, and ordered that the sentences run concurrently with each other. She ordered that when he is released from his prison sentence, Kendrick will serve three years of supervised release on each case, to run concurrently. The judge imposed $200 in mandatory special assessments, but did not order a fine. As a condition of his supervision, the judge ordered that Kendrick will be monitored for drug and alcohol abuse.
The case was investigated by the Mobile County Sheriff’s Office and the Department of Homeland Security Investigations. It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney Gloria Bedwell.
29 October 2015
Warner Chilcott Agrees to Plead Guilty to Health Care Fraud Scheme and Pay $125 MillionRead the Press Release
BOSTON – Pharmaceutical company Warner Chilcott has agreed to plead guilty to health care fraud and pay $125 million to resolve criminal and civil liability arising from the illegal promotion of the drugs Actonel®, Asacol®, Atelvia®, Doryx®, Enablex®, Estrace®, and Loestrin®, and various formulations of these drugs.
In a related development, former Warner Chilcott President W. Carl Reichel was arrested this morning in Boston for conspiring to pay kickbacks to physicians. Reichel will make an initial appearance in U.S. District Court in Boston today at 2:30 p.m.
In addition, in recent weeks, three former Warner Chilcott district managers pleaded guilty or agreed to plead guilty to conspiracy to commit health care fraud and criminal HIPAA violations, and a Springfield, Mass. physician was indicted for taking kickbacks, criminal HIPAA violations and obstruction of justice.
“Doctors’ medical judgment should be based on what is best for the patient, and not clouded by expensive meals and other pharmaceutical company kickbacks,” said United States Attorney Carmen M. Ortiz. “Pharmaceutical company executives and employees should not be involved with treatment decisions or submissions to a patient’s insurance company. Today’s enforcement actions demonstrate that the government will seek not only to hold companies accountable, but will identify and charge corporate officials responsible for the fraud.”
“The Justice Department is committed to protecting the integrity of physician prescribing decisions and ensuring that financial arrangements in the healthcare marketplace comply with the law,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “The Department will continue to hold companies and responsible individuals accountable when they use improper incentives, like those alleged here, to promote their products.”
“Pharmaceutical companies and their employees have a significant responsibility to sell and market drugs in an ethical and legal manner,” said Special Agent in Charge Harold H. Shaw of the FBI’s Boston Field Office. “This settlement and the related indictments reflect the commitment of the FBI and our government partners to aggressively investigate companies and individuals who fail that responsibility and seek to profit from fraudulent activities.”
“Placing financial gain above the legitimate needs of patients is deplorable,” said Inspector General Daniel R. Levinson of the U.S. Department of Health and Human Services. “Paying kickbacks and even providing instructions on how to defraud Medicare are practices that will not be tolerated.”
“These types of health care fraud investigations have great impact on VA operations because the settlement will return funds to VA for the continued care of our nation’s Veterans,” said Jeffrey G. Hughes, Special Agent in Charge, Department of Veterans Affairs, Office of Inspector General. “The VA OIG will continue to work with its law enforcement partners and the Boston U.S. Attorney’s Office to combat fraud in the health care arena.”
The Warner Chilcott Resolution
In a criminal Information filed today in U.S. District Court in Boston, the government charged that, between 2009 and 2013, Warner Chilcott employees, at the direction of members of the company’s management team, paid remuneration to physicians in order to induce those physicians to prescribe Warner Chilcott drugs. The Information alleges that Warner Chilcott employees provided payments, meals, and other remuneration associated with so-called “Medical Education Events.” These events, which were often held at expensive restaurants, frequently contained minimal or no educational component, and were instead used to pay prescribing physicians in an attempt to gain a competitive advantage over other pharmaceutical companies.
The Information also alleges that, from 2011 to 2013, Warner Chilcott employees submitted false, inaccurate, or misleading prior authorization requests to federal health care programs for the osteoporosis medications Atelvia® and Actonel®. A prior authorization request contains protected health information, including biographical data and information concerning a patient’s medical condition. The fraudulent requests were provided to certain insurance companies in order to overcome restrictions that favored less expensive osteoporosis drugs. In some instances, Warner Chilcott sales representatives submitted these prior authorizations directly to insurance companies, holding themselves out to be physicians.
In addition, the Information alleges that Warner Chilcott employees were instructed by members of the company’s management team to make unsubstantiated superiority claims when marketing the drug Actonel® even though the claim was not supported by clinical evidence. The management team instructed the sales representatives to tell physicians that Actonel® was superior to other bisphosphonates due to its supposedly unique “mechanism of action.”
Under the terms of the criminal plea agreement, Warner Chilcott will pay a fine of $22,940,000. Warner Chilcott also entered into a civil settlement agreement under which it agreed to pay $102,060,000 to the federal government and the states to resolve false claims it submitted to government health care programs. The federal share of the civil settlement is approximately $91.5 million, and the state Medicaid share of the civil settlement is approximately $10.6 million. The civil settlement was brought under the whistleblower provisions of the False Claims Act and the whistleblowers will receive approximately $22.9 million from the federal share of the civil recovery.
The civil case was investigated by the FDA’s Office of Chief Counsel, HHS Office of Counsel to the Inspector General, and the National Association of Medicaid Fraud Control Units. The civil settlement was handled by Assistant U.S. Attorneys Sonya Rao and Susan Poswistilo of Ortiz’s Civil Division and Trial Counsel Colin Huntley of the Commercial Litigation Branch of the Justice Department’s Civil Division.
The criminal case was investigated by the FBI, HHS-OIG, the Department of Defense’s Defense Criminal Investigative Service, the FDA’s Office of Criminal Investigations, the Department of Veterans Affairs and the Office of Personnel Management’s Office of Inspector General. The criminal case of the company was handled by Assistant U.S. Attorneys David Schumacher and Miranda Hooker of Ortiz’s Health Care Fraud Unit and AUSAs Rao and Poswistilo. The criminal cases of individuals are being prosecuted by AUSAs Schumacher and Hooker of Ortiz’s Health Care Fraud Unit.
Carl Reichel Indictment
The former President of Warner Chilcott, W. Carl Reichel, 57, of Chester, N.J., was indicted on one count of conspiracy to pay kickbacks. Reichel was arrested today in Boston and will make an appearance before U.S. District Court Chief Magistrate Judge Jennifer Boal at 2:30 p.m.
The indictment alleges that, between 2009 and 2012, Reichel, designed a sales and marketing strategy to provide physicians payment and other benefits, including free dinners and bogus “speaker” fees, in return for prescriptions of Warner Chilcott drugs. Reichel provided the sales force with virtually unlimited expense accounts to wine and dine physicians and other health care practitioners. These so-called “medical education programs,” in fact, contained little, if any, medical education, and a primary purpose of the program was to obtain prescriptions from the physicians.
Reichel also allegedly designed the strategy of signing up physicians who prescribed a high volume of their drugs as paid “speakers” for Warner Chilcott. According to the indictment, the “speakers” often did not speak at all, and instead enjoyed an expensive dinner with a sales representative. Reichel instructed the sales force that they should only continue to use the “speakers” if they were prescribing Warner Chilcott drugs at a high level, and that they should communicate to the “speaker” that he or she would not be used – paid – at subsequent events until their Warner Chilcott prescriptions increased.
The charging statute provides a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
The details contained in the indictment are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The District Manager Pleas
1. Timothy Garcia
Timothy Garcia, 35, of Los Gatos, Calif., pleaded guilty on Oct. 16, 2015, to one count of conspiracy to commit health care fraud. U.S. District Court Chief Judge Patti B. Saris scheduled sentencing for April 14, 2016.
From 2008 to 2011, Garcia worked for Warner Chilcott and served as a district manager in the company’s osteoporosis division in 2011, managing approximately 12 sales representatives in the San Francisco Bay area. The same year, Warner Chilcott launched Atelvia®, an osteoporosis drug, which many insurance companies around the country did not cover primarily because a generic alternative was available. Many of these insurance companies would only pay for Atelvia® if a physician submitted a prior authorization but were often hesitant to do so. Recognizing this, Garcia aggressively pushed his sales representatives to manipulate Atelvia® prior authorizations. Garcia instructed his sales representatives that, if the physicians or staff were unwilling to prepare Atelvia® prior authorizations, the sales representatives should fill them out themselves. Futhermore, Garcia stressed the importance of concealing the misconduct of his sales representatives.
In 2011, Garcia received a bonus of more than $60,000, and was promoted to senior district manager in Warner Chilcott’s most prestigious sales division. As a result of the scheme, insurance companies, including Medicare, paid Warner Chilcott at least $100,000 for Atelvia® based on prior authorizations that were manipulated by Garcia’s sales representatives.
The charging statute provides a sentence of no greater than 10 years in prison, three years of supervised release and a fine of $250,000, or twice the gross gain or loss resulting from the offense, and exclusion from the Medicare program. 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.
2. Landon Eckles
Landon Eckles, 30, of Huntersville, N.C., was charged in an Information on Oct. 16, 2015, with one count of wrongful disclosure of protected health information, in violation of the criminal provisions of the Health Insurance Portability and Accountability Act (HIPAA). A plea hearing is scheduled for Nov. 12, 2015, before U.S. District Court Judge George A. O’Toole, Jr.
According to the Information, from 2007 to 2012, Eckles worked for Warner Chilcott and served as a district manager in the company’s osteoporosis division in a mid-Atlantic district. Atelvia® had poor insurance coverage in Eckles’s district when it was launched in 2011, and many insurance companies required a prior authorization before covering Atelvia®. Eckles allegedly directed certain sales representatives that, if physicians refused to fill out Atelvia® prior authorizations, the sales representatives should fill them out themselves. By doing so, Eckles and his sales representatives accessed patients’ protected health information.
In addition, following directions from his supervisors, Eckles allegedly encouraged his sales representatives to ensure that patient medical charts in physicians’ offices were “flagged” with Atelvia® brochures, so that physicians would be reminded to prescribe Atelvia® for the patients. According to the Information, Eckles and a sales representative accessed a number of patients’ medical charts and placed Atelvia® brochures in the charts in a Philadelphia physician’s office. Eckles bragged about this tactic, stating, “I guarantee you that this is going to drive business,” and encouraged his sales representatives to follow suit. In part, as a result of his scheme, Eckles received a bonus of approximately $60,000 in 2011.
The charging statute provides a sentence of no greater than 10 years in prison, three years of supervised release and a fine of $250,000, forfeiture, and exclusion from the Medicare program. 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.
3. Jeff Podolsky
Jeff Podolsky, 49, of East Meadow, N.Y., pleaded guilty on July 7, 2015, to one count of conspiracy to commit health care fraud. U.S. District Court Chief Judge Patti B. Saris scheduled sentencing for April 8, 2016.
From 2009 to 2013, Podolsky worked for Warner Chilcott. He served as a district manager in New York City and Long Island in 2010 and 2011, during which time Atelvia®, as well as its predecessor drug, Actonel®, had poor insurance coverage. Podolsky directed the sales representatives in his district to fill out prior authorizations for physicians who prescribed Actonel® and Atelvia®, using false clinical justifications as to why the patient needed the drugs and submitted them to health insurance companies.
As a result of the scheme, Podolsky’s district was the top-grossing district in Warner Chilcott’s osteoporosis division. In 2011, Podolsky received a bonus of more than $100,000, and was promoted to senior district manager in a more prestigious sales division. Insurance companies and Medicare paid at least $200,000 for Actonel® and Atelvia® prescriptions that were based on prior authorizations that were manipulated by Podolsky’s sales representatives.
The charging statute provides a sentence of no greater than 10 years in prison, three years of supervised release and a fine of $250,000, or twice the gross gain or loss resulting from the offense, forfeiture and exclusion from the Medicare program. 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.
Rita Luthra Indictment
Rita Luthra, M.D., 64, of Longmeadow, Mass., was indicted on Oct. 21, 2015 with one count of accepting kickbacks, one count of wrongful disclosure of protected health information, and one count of obstructing a criminal investigation.
From October 2010 to November 2011, Warner Chilcott paid Luthra $23,500 to prescribe its osteoporosis drugs, Actonel® and Atelvia®. On at least 31 occasions during that period, a Warner Chilcott sales representative brought food into Luthra’s medical office for Luthra and her staff and paid Luthra $750 to talk with her for 25-30 minutes while she ate. It is alleged that Luthra’s prescriptions of Actonel® and Atelvia® increased during the time that she was paid by Warner Chilcott and precipitously declined once she stopped being paid. Luthra also allowed a Warner Chilcott sales representative to access protected health information in her patient’s medical files in order to submit prior authorizations for Atelvia®. Finally, Luthra allegedly lied to federal agents when interviewed about her relationship with Warner Chilcott, and allegedly directed one of her employees to do the same.
The charge of violating the Anti-Kickback Statute provides a sentence of no greater than five years in prison, three years of supervised release, a fine of $25,000, forfeiture and exclusion from the Medicare program. The charge of disclosure of individually identifiable health information provides a sentence of no greater than one year in prison and/or a fine of $50,000, one year of supervised release and exclusion from the Medicare program. The charge of obstructing a criminal health care investigation provides a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Warner Chilcott Agrees to Plead Guilty to Felony Health Care Fraud Scheme and Pay $125 Million to Resolve Criminal Liability and False Claims Act AllegationsRead the Press Release
Former President and Three District Managers Also Face Criminal Charges
Warner Chilcott U.S. Sales LLC, a subsidiary of pharmaceutical manufacturer Warner Chilcott PLC, has agreed to plead guilty to a felony charge of health care fraud, the Justice Department announced today. The plea agreement is part of a global settlement with the United States in which Warner Chilcott has agreed to pay $125 million to resolve its criminal and civil liability arising from the company’s illegal marketing of the drugs Actonel®, Asacol®, Atelvia®, Doryx®, Enablex®, Estrace® and Loestrin®. Prior to today’s guilty plea by Warner Chilcott, several individuals also pleaded guilty or were charged in connection with the company’s illegal activities.
Warner Chilcott agreed to plead guilty in the District of Massachusetts to criminal charges that the company committed a felony violation by paying kickbacks to physicians throughout the United States to induce them to prescribe its drugs, manipulating prior authorizations to induce insurance companies to pay for prescriptions of Atelvia® that the insurers may not have otherwise paid for and making unsubstantiated marketing claims for the drug Actonel®.
Earlier today, an indictment was unsealed in the District of Massachusetts charging former Warner Chilcott President W. Carl Reichel, 57, of Chester, New Jersey, with one count of conspiring to pay kickbacks to physicians. Reichel was arrested today in Boston and will make an initial appearance at 2:30 p.m. before U.S. District Court Magistrate Judge Jennifer C. Boal.
“The Justice Department is committed to protecting the integrity of physician prescribing decisions and ensuring that financial arrangements in the healthcare marketplace comply with the law,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “The Department will continue to hold companies and responsible individuals accountable when they use improper incentives, like those alleged here, to promote their products.”
“Doctors’ medical judgment should be based on what is best for the patient, and not clouded by expensive meals and other pharmaceutical company kickbacks,” said U.S. Attorney Carmen M. Ortiz for the District of Massachusetts. “Pharmaceutical company executives and employees should not be involved with treatment decisions or submissions to a patient’s insurance company. Today’s enforcement actions demonstrate that the government will seek not only to hold companies accountable, but will identify and charge corporate officials responsible for the fraud.”
In a criminal information filed today in the District of Massachusetts, the government charged that, between 2009 and 2013, Warner Chilcott, through its employees acting at the direction of members of the company’s management team, knowingly and willfully paid remuneration to physicians in order to induce those physicians to prescribe Warner Chilcott drugs. Under the law, it is illegal to offer or pay remuneration to physicians to induce them to refer individuals to pharmacies for the dispensing of drugs for which payments are made in whole or in part under a federal health care program. The information alleges that Warner Chilcott employees, at the direction of company management, provided payments, meals and other remuneration associated with so-called “Medical Education Events,” which included dinners, lunches and receptions. These events, which were often held at expensive restaurants, often contained minimal or no educational component and were instead used to pay prescribing physicians in an attempt to gain a “competitive advantage” over other companies. Warner Chilcott also enlisted high-prescribing physicians as “speakers” for the company. In fact, the “speakers” often did not actually speak about any clinical or scientific topics, and, instead, the payments were primarily intended to induce prescriptions. For instance, Warner Chilcott informed “speakers” who were not prescribing at a high volume that they would not be paid for subsequent events unless their prescribing habits increased.
In addition, the information alleges that from 2011 to 2013, Warner Chilcott employees knowingly and willfully submitted false, inaccurate, or misleading prior authorization requests and other coverage requests to federal health care programs for the osteoporosis medications Atelvia® and Actonel®. The false, inaccurate and misleading information was provided to certain insurance companies in order to overcome formulary restrictions that favored less expensive osteoporosis drugs. For instance, Warner Chilcott was aware that many insurers only paid for Atelvia® if a physician submitted an individualized request explaining why the patient could not be treated with less-expensive medications approved to treat the same conditions. As detailed in the information, Warner Chilcott sales representatives filled out numerous prior authorizations for Atelvia®, using “canned” medical justifications which often were inconsistent with the patients’ medical conditions. In some instances, according to the information, Warner Chilcott sales representatives submitted these prior authorizations directly to insurance companies, holding themselves out to be physicians. In other cases, sales representatives coached physicians and staff about which medical justifications would result in an approved prior authorization, whether or not the justification was true for a particular patient.
Finally, the information alleges that Warner Chilcott employees were instructed by members of the company’s management team to make unsubstantiated superiority claims when marketing the drug Actonel®. The management team instructed the sales representatives to tell physicians that Actonel® was superior to other bisphosphonates due to its supposedly unique “mechanism of action.” According to the information, Warner Chilcott managers also encouraged sales representatives to use props to visually support this false claim, including pouring water and syrup onto two sponges while telling physicians that Actonel, like water, penetrated and exited the bone more quickly than its competitors, represented by the syrup. Warner Chilcott management directed the sales representatives to make the superiority claim even though the claim was not supported by clinical evidence.
Under the terms of the plea agreement, Warner Chilcott will pay a criminal fine of $22.94 million.
Warner Chilcott also entered into a civil settlement agreement under which it agreed to pay $102.06 million to the federal government and the states to resolve claims arising from its conduct, which allegedly caused false claims to be submitted to government health care programs. The civil settlement resolved allegations that Warner Chilcott violated the federal Ant-Kickback Statute by paying illegal remuneration to prescribing physicians in connection with the so-called “Medical Education Events” and speaker programs and caused the submission of false prior authorization requests for Atelvia® and Actonel®. The federal share of the civil settlement is approximately $91.5 million, and the state Medicaid share of the civil settlement is approximately $10.6 million.
Prior to today’s guilty plea by Warner Chilcott and civil settlement, several individuals were either criminally charged or pleaded guilty to various offenses related to the company’s alleged conduct. Two former district managers, Jeffrey Podolsky, 49, of East Meadow, New York, and Timothy Garcia, 35, of Los Gatos, California, previously pleaded guilty to various charges, including conspiracy to commit health care fraud and violations of the Health Insurance Portability and Accountability Act (HIPAA). A third former district manager, Landon Eckles, 30, of Huntersville, North Carolina, was criminally charged earlier this month for alleged HIPAA violations relating to the alleged prior authorization scheme. Last week a Springfield, Massachusetts physician, Rita Luthra, M.D., 64, of Longmeadow, Massachusetts, was charged with, among other things, allegedly accepting free meals and speaker fees from Warner Chilcott in return for prescribing its osteoporosis drugs.
“Placing financial gain above the legitimate needs of patients is deplorable,” said Inspector General Daniel R. Levinson of the U.S. Department of Health and Human Services (HHS). “Paying kickbacks and even providing instructions on how to defraud Medicare are practices that will not be tolerated.”
“Pharmaceutical companies and their employees have a significant responsibility to sell and market drugs in an ethical and legal manner,” said Special Agent in Charge Harold H. Shaw of the FBI’s Boston Field Office. “This settlement and the related indictments reflect the commitment of the FBI and our government partners to aggressively investigate companies and individuals who fail that responsibility and seek to profit from fraudulent activities.”
The civil settlement resolves a lawsuit filed under the whistleblower provisions of the False Claims Act, which permit private individuals to sue on behalf of the government for false claims and to share in any recovery. The civil lawsuit was filed in the District of Massachusetts and is captioned United States ex rel. Alexander, et al. v. Warner Chilcott plc, et al., Civil Action No. 11-CA-1121 (D. Mass.). As part of today’s resolution, the whistleblowers will receive approximately $22.9 million from the federal share of the civil recovery.
The criminal case was prosecuted by the U.S. Attorney’s Office of the District of Massachusetts and the Civil Division’s Consumer Protection Branch. The civil settlement was handled by the U.S. Attorney’s Office of the District of Massachusetts and the Civil Division’s Commercial Litigation Branch. Assistance was provided by the FDA’s Office of Chief Counsel, HHS Office of Counsel to the Inspector General, and the National Association of Medicaid Fraud Control Units. This matter was investigated by the FBI, HHS Office of the Inspector General, the Department of Defense’s Defense Criminal Investigative Service, the FDA’s Office of Criminal Investigations, the Department of Veterans Affairs and the Office of Personnel Management’s Office of Inspector General.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $26.2 billion through False Claims Act cases, with more than $16.4 billion of that amount recovered in cases involving fraud against federal health care programs.
Except for the conduct admitted in connection with the criminal plea, the claims resolved by the civil agreement are allegations only, and there has been no determination of civil liability.
Waggaman Woman Sentenced After Pleading Guilty to Embezzling $208,000 from Local EmployerRead the Press Release
U.S. Attorney Kenneth A. Polite announced that DELORES TROUILLET, age 59, of Waggaman, was sentenced after previously pleading guilty to wire fraud for embezzling over $200,000 from her employer.
U.S. District Judge Carl J. Barbier sentenced TROUILLET to serve one year and one day in prison, to be followed by three years of supervised release. Additionally, TROUILLET was ordered to pay restitution in the amount of $208,082.03 to the victim.
According to court documents, from 1999 to 2014, TROUILLET was employed by a carpet, flooring, and drapery sales and installation company (“Company A”) headquartered in Gretna, where she served as a bookkeeper. In her capacity as bookkeeper, TROUILLET was responsible for overseeing the company’s finances and accounts. TROUILLET had access to Company A’s bank accounts, including the ability to conduct wire transfers from Company A’s bank accounts.
Using her access to the company’s accounts, TROUILLET stole money from Company A in five different ways, including generating checks drawing on Company A’s bank accounts to pay her personal expenses. To make the payments appear legitimate, TROUILLET listed in Company A’s internal records checks she made out to herself and deposited into her personal bank account as being made payable to entities with whom Company A engaged in business or frequently paid funds, such as “State Farm Insurance” and “IRS.” TROUILLET also paid for her personal daily expenses using Company A’s corporate credit and debit cards. Further, TROUILLET added money to her biweekly payroll in excess of her agreed upon salary. In total, TROUILLET embezzled approximately $208,082.03 from Company A.
U.S. Attorney Polite praised the work of the United States Secret Service and investigators with assistance from the Jefferson Parish Sheriff’s Office in investigating this matter. Assistant United States Attorney Jordan Ginsberg was in charge of the prosecution.
Utica Man Pleads Guilty to Three Bank RobberiesRead the Press Release
ALBANY, NEW YORK – Calvin Stephon Moore, age 50, of Utica, pleaded guilty today to three counts of bank robbery, announced United States Attorney Richard S. Hartunian and Andrew W. Vale, Special Agent in Charge of the Albany Division of the Federal Bureau of Investigation.
Moore faces up to 20 years of imprisonment, up to three years of supervised release and a maximum $250,000 fine when he is sentenced by Senior United States District Judge Thomas J. McAvoy on February 10, 2016 in Albany.
Moore committed bank robberies in Schenectady, Utica and Columbia, South Carolina.
On November 17, 2014, Moore and another man robbed a KeyBank branch in Schenectady. During the robbery, Moore stated to a teller, “this is a hold up give me money.” The two robbers fled the bank with $5,035. Schenectady Police found and arrested Moore’s accomplice near the bank; the accomplice had a backpack containing the stolen money and a copy of Moore’s birth certificate.
The following day, Moore robbed an Adirondack Bank branch in Utica. He handed the teller a demand note, which stated: “THIS IS A ROBBERY. I HAVE A GUN AND WILL SHOOT IF YOU TRY ANYTHING. PUT ALL THE LOOSE BILLS (EVERY DENOMINATION) IN THE BAG … NO DYE PACK OR TRACERS OR I WILL SHOOT!” Moore fled the bank with $1,647.
Moore then traveled to South Carolina.
On December 30, 2014, Moore entered a First Citizens Bank branch in Columbia. He approached a teller and presented a note in which he demanded money. He also told the teller he had a gun. Moore fled the bank with $1,271, into which a teller had placed an exploding dye pack.
On the evening of December 30, officers from the Cayce, South Carolina, Police Department responded to a report of a person at a motel tossing a suspicious item over a fence and into a parking lot. The item was a bank dye pack and several $20 bills.
Officers set up a perimeter near the motel and began identifying people in the area. One person they stopped was Moore, who, when his identification was checked, was found to have a federal arrest warrant for bank robberies committed in the Northern District of New York.
Officers determined that Moore was staying at the motel that had called the police, and obtained and executed a search warrant for Moore’s room. Officers recovered about $965 in U.S. currency; the serial numbers on some of this currency matched the serial numbers of some of the currency taken earlier in the day from the First Citizens Bank branch.
The investigation into the Schenectady and Utica robberies was conducted by the Albany Division of the Federal Bureau of Investigation, and the Schenectady and Utica Police Departments.
The investigation into the Columbia, South Carolina robbery was conducted by the Columbia Division of the FBI, and the Columbia and Cayce Police Departments. The case is being prosecuted by Assistant United States Attorney Michael Barnett of the Northern District of New York, and by Assistant United States Attorney Benjamin N. Garner of the District of South Carolina.
Urbandale Man Sentenced to Federal Prison for Bank RobberyRead the Press Release
DES MOINES, IA – On October 29, 2015, Hassam Fayiz Abusharkh, age 36, of Urbandale, Iowa, appeared in federal court before Senior United States District Judge Robert W. Pratt and was sentenced to 80 months in federal prison for bank robbery, announced United States Attorney Nicholas A. Klinefeldt. Abusharkh previously pleaded guilty to the offense, admitting that he robbed the Farmers and Merchants State Bank in St. Charles, Iowa, on March 25, 2015. Abusharkh will be required to serve a five-year period of supervised release after his release from prison and also was ordered to pay restitution.
This case was investigated by the Madison County Sheriff’s Office and the Federal Bureau of Investigation and was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Two Illegal Aliens Indicted with Immigration ViolationsRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Sebastian Gonzalez-Delgado, age 27, of Guanajuato, Mexico, and Jose Ramos, age 33, a native and citizen of Guatemala, were indicted separately yesterday by a federal grand jury in Harrisburg on charges of illegally re-entering the United States after having been previously deported.
According to United States Attorney Peter Smith, Gonzalez-Delgado, was indicted on a charge of illegally re-entering the United States on an unknown date in February of 2015. The grand jury charged that Gonzalez-Delgado had previously been deported from the United States at the San Luis, Arizona Port of Departure on July 19, 2013. It is further alleged that Gonzalez-Delgado failed to get permission for re-entry into the United States as required by law.
Prosecution has been assigned to Assistant U.S. Attorney William H. Behe.
The maximum penalty under federal law is 10 years of imprisonment, a term of supervised release following imprisonment, and a fine.
Jose Ramos was indicted on a charge of illegally re-entering the United States. The grand jury charged Ramos was previously convicted of an aggravated felony offense and removed from the United States in 2010.
Prosecution has been assigned to Assistant U.S. Attorney James T. Clancy.
The maximum penalty under federal law is 20 years of imprisonment, a term of supervised release following imprisonment, and a fine.
Both matters were investigated by the U.S. Immigration and Customs Enforcement (ICE) Enforcement and Removal Operations (ERO).
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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.
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.
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Two Cedar Rapids Brothers Convicted of Drug Trafficking and Witness TamperingRead the Press Release
Two brothers who conspired to distribute methamphetamine were convicted by a jury on October 28, 2015, after a three-day jury trial in federal court in Cedar Rapids.
Martin Lawrence, 52 and Troy Lawrence, 54, both from Cedar Rapids, Iowa, were convicted of conspiracy to distribute ice methamphetamine, distribution of ice methamphetamine, possession with intent to distribute ice methamphetamine, and witness tampering. The verdict was returned following approximately three hours of jury deliberations.
The evidence at trial showed that Martin Lawrence headed a drug trafficking organization responsible for distributing pounds of ice methamphetamine, a highly pure, crystalized form of methamphetamine, in Eastern Iowa. His brother, Troy Lawrence, assisted the organization by distributing ice methamphetamine in the Cedar Rapids area. Investigators learned of the organization after Martin Lawrence’s step-son brought a stuffed animal containing methamphetamine to his elementary school. The evidence at trial also established that Martin Lawrence obtained ice methamphetamine from Omaha and transported it back to the Cedar Rapids area where he relied on a network of individuals who distributed it on his behalf. In addition, after their arrest on federal charges, both defendants instructed government witnesses to avoid contact with law enforcement in order to prevent these witnesses from testifying at trial.
Sentencing before United States District Court Judge Mark W. Bennett will be set after the preparation of the presentence reports. Martin and Troy Lawrence remain in custody of the United States Marshal. Both brothers face a mandatory minimum sentence of ten years’ imprisonment and a possible maximum sentence of life imprisonment, over $10,000,000 in fines, $300 in special assessments, and at least five years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Lisa C. Williams and was investigated by the Cedar Rapids Police Department, Drug Enforcement Administration, Linn County Sheriff’s Office, and the Dubuque Drug Task Force.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 15-CR-0069.
Follow us on Twitter @USAO_NDIA.
Three Waterbury Men Indicted for Trafficking "Black Tar" HeroinRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration for New England, today announced that on October 28, 2015, a federal grand jury in Bridgeport returned a four-count indictment charging HUGO TEJEDA, 23, IVAN LERMA, also known as “Aurelia Llano” and “Miguel Cardona,” 24, and VLADIMIR RODRIGUEZ-LARA, 35, all of Waterbury, with trafficking “black tar” heroin.
As alleged in court documents, in August 2015, the Drug Enforcement Administration received information that an individual was in possession of approximately 1.5 kilograms of “black tar” heroin from Mexico and was searching for a buyer. The DEA subsequently identified the individual as TEJEDA, and LERMA and RODRIGUEZ-LARA as his associates. On August 10 and August 20, TEJEDA drove LERMA to meetings at which LERMA supplied black tar heroin to confidential informants working for the DEA. On August 13, 2015, TEJEDA drove LERMA to a meeting during which LERMA agreed to sell 1.5 kilograms of heroin to a confidential informant in exchange for $76,000.
On August 27, 2015, TEJEDA, LERMA and RODRIGUEZ-LARA were arrested when they attempted to sell the 1.5 kilograms of heroin to the confidential informants.
The indictment charges TEJEDA, LERMA and RODRIGUEZ-LARA with conspiracy to possess with intent to distribute one kilogram or more of heroin, and possession with intent to distribute, and distribution of, one kilogram or more of heroin, offenses that carry a mandatory minimum term of imprisonment of 10 years and a maximum term of life in prison. The indictment also charges TEJEDA and LERMA with possession with intent to distribute, and distribution of, a mixture and substance containing a detectable amount of heroin, offenses that carry a maximum term of imprisonment of 20 years.
The defendants were originally arrested on federal criminal complaints. LERMA has been detained since his arrest, and TEJEDA and RODRIGUEZ-LARA are each released on a $50,000 bond.
This investigation has been conducted by the Bridgeport High Intensity Drug Trafficking Area Task Force, which includes personnel from the DEA, Connecticut State Police and the Norwalk, Stamford, Stratford and Milford Police Departments. The case is being prosecuted by Assistant U.S. Attorney Amy C. Brown.
Three New Mexicans Charged with Fraudulently Selling Filipino-Made Jewelry as Native American-MadeRead the Press Release
Sixteen Search Warrants Executed in New Mexico and California as Part of Continuing Investigation into Alleged Violations of the Indian Arts and Crafts Act
Three New Mexicans have been charged with violating the Indian Arts and Crafts Act (IACA) by conspiring to import and fraudulently sell Filipino-made jewelry as Native American-made. The indictment charging the three defendants is the result of an ongoing federal investigation led by the U.S. Fish and Wildlife Service into an international scheme to violate the IACA that included a law enforcement operation yesterday during which 16 search warrants were executed in New Mexico and California and related investigative activity took place in the Philippines.
The IACA prohibits the offer or display for sale, or the sale of any good in a manner that falsely suggests that it is Indian produced, an Indian product, or the product of a particular Indian and Indian tribe. The law is designed to prevent products from being marketed as “Indian made,” when the products are not, in fact, made by Indians. It covers all Indian and Indian-style traditional and contemporary arts and crafts produced after 1935 and broadly applies to the marketing of arts and crafts by any person in the United States. IACA provides critical economic benefits for Native American cultural development by recognizing that forgery and fraudulent Indian arts and crafts diminish the livelihood of Native American artists and craftspeople by lowering both market prices and standards.
“American Indian and Alaska Native people have contributed tremendously to the cultural and artistic heritage of our nation and they have an important future that must be protected,” said Acting Associate Attorney General Stuart F. Delery. “This case demonstrates our willingness to prosecute those who falsely market products as ‘Indian Made’ and thus undermine the livelihoods of Native American artists and craftspeople, many of whom are responsible for carrying precious spiritual and artistic knowledge from one generation to another.”
“The indictment announced today and yesterday’s enforcement operation are not only about enforcing the law but also about protecting and preserving the cultural heritage of Native Americans,” said U.S. Attorney Damon P. Martinez for the District of New Mexico. “The cultural heritage of American Indians is a precious national resource and it is critically important that we provide the proper respect to those whose creations are seen by some as simple retail commodities to be exploited for profit.”
“As Chairman of the Indian Arts and Crafts Board, U.S. Department of the Interior, I want to convey the Board’s deep appreciation for the outstanding leadership and contributions provided by the U.S Attorney’s Office for the District of New Mexico and the U.S. Fish and Wildlife Service, along with the other agency partners who participated in bringing this landmark enforcement action under the Indian Arts and Crafts Act,” said Chairman Harvey Pratt of the Indian Arts and Crafts Board. “By requiring truth-in-marketing of Indian art and craftwork, the Act is intended to protect Native American artists and artisans who rely heavily on the production and sale of traditional and contemporary art and craftworks to provide their economic livelihood, preserve their rich heritage and pass along their unique culture from generation to generation. Unfair competition from counterfeit Native American art and craftwork seriously erodes the sustainability, vitality and economic well-being of Indian tribes and their members and businesses. The Act is also intended to protect the consumers who purchase Native American art, bringing much needed financial resources to Indian communities in the Southwest and across the country. Eliminating the flow of counterfeit Native American art and craftwork provides a level playing field for the highly talented, dedicated, and hard-working producers of genuine Native American art. We must protect these authentic American Treasures.”
“Under our 2012 cooperative agreement with the Indian Arts and Crafts Board, the U.S. Fish and Wildlife Service has investigated numerous potential violations of the Indian Arts and Crafts Act,” said Special Agent in Charge Nicholas E. Chavez for U.S. Fish and Wildlife Service’s Office of Law Enforcement for the Southwest Region. “Our investigations primarily have focused on identifying fraudulent schemes where jewelry is marketed and sold as authentic Native American adornments to defraud tourists and other consumers. Through these investigations, the U.S. Fish and Wildlife Service endeavors to protect and preserve the authenticity of jewelry produced by our country’s Native American artisans.”
The four-count indictment that was unsealed earlier today charges Nael Ali, 51, and Mohammad Abed Manasra, 53, both of Albuquerque, New Mexico, and Christina Bowen, 41, of Los Lunas, New Mexico, with conspiracy to violate IACA and three substantive violations of the Act. Ali is the owner of two jewelry stores, Gallery 8 and Galleria Azul, in Albuquerque’s Old Town that purport to specialize in the sale of Native American jewelry. Bowen was formerly employed as a store manager by Ali. Manasra holds himself out as a wholesaler of Native American jewelry.
Ali was arrested in Albuquerque yesterday and Bowen surrendered to the U.S. Marshals Service this morning. Both made their initial appearances in federal court in Albuquerque this morning and were released pending trial. Manasra was arrested yesterday in La Habra, California, and will be transferred to the District of New Mexico to face the charges against him. If convicted of the charges against them, the defendants each face a statutory maximum penalty of five years in prison and a $250,000.00 fine. Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
During yesterday’s law enforcement operation and as part of the continuing investigation, federal agents executed 15 search warrants in New Mexico and one in California. Eight of the search warrants were executed in Albuquerque including four at retail and wholesale jewelry businesses. In addition, search warrants were executed at three jewelry stores in Gallup, three jewelry stores in Santa Fe and a jewelry production shop in Zuni. Federal agents also executed a search warrant at a jewelry store in Calistoga, California. Three federal seizure warrants also were executed on bank accounts in a Charlotte, North Carolina, bank and a San Francisco, California, bank. In addition, the Philippines National Bureau of Investigations conducted a series of investigative interviews at two factories in Cebu City, Philippines.
The case was investigated by the Office of Law Enforcement for the Southwest Region of the U.S. Fish and Wildlife Service with assistance from the FBI, Homeland Security Investigations (HSI), U.S. Marshals Service, DEA and New Mexico Department of Game and Fish. The U.S. Fish and Wildlife Service’s Office of Law Enforcement for Region Eight and California Department of Fish and Wildlife provided support in Calistoga, California, and HSI provided support in La Habra, California. The U.S. Fish and Wildlife Service Attaché for Southeast Asia and the Philippine National Bureau of Investigations provided support in Cebu City, Philippines. Assistant U.S. Attorney Kristopher N. Houghton is prosecuting the case.
Three New Mexicans Charged with Fraudulently Selling Filipino-Made Jewelry as Native American-MadeRead the Press Release
ALBUQUERQUE – Three New Mexicans have been charged with violating the Indian Arts and Crafts Act (IACA) by conspiring to import and fraudulently sell Filipino-made jewelry as Native American-made. The indictment charging the three defendants is the result of an ongoing federal investigation led by the U.S. Fish and Wildlife Service into an international scheme to violate the IACA that included a law enforcement operation yesterday during which 16 search warrants were executed in New Mexico and California and related investigative activity took place in the Philippines.
The IACA prohibits the offer or display for sale, or the sale of any good in a manner that falsely suggests that it is Indian produced, an Indian product, or the product of a particular Indian and Indian tribe. The law is designed to prevent products from being marketed as “Indian made,” when the products are not, in fact, made by Indians. It covers all Indian and Indian-style traditional and contemporary arts and crafts produced after 1935, and broadly applies to the marketing of arts and crafts by any person in the United States. IACA provides critical economic benefits for Native American cultural development by recognizing that forgery and fraudulent Indian arts and crafts diminish the livelihood of Native American artists and craftspeople by lowering both market prices and standards.
“American Indian and Alaska Native people have contributed tremendously to the cultural and artistic heritage of our nation and they have an important future that must be protected,” said Acting Associate Attorney General Stuart F. Delery. “This case demonstrates our willingness to prosecute those who falsely market products as ‘Indian Made’ and thus undermine the livelihoods of Native American artists and craftspeople, many of whom are responsible for carrying precious spiritual and artistic knowledge from one generation to another.”
“The indictment announced today and yesterday’s enforcement operation are not only about enforcing the law but also about protecting and preserving the cultural heritage of Native Americans,” said U.S. Attorney Damon P. Martinez. “The cultural heritage of American Indians is a precious national resource and it is critically important that we provide the proper respect to those whose creations are seen by some as simple retail commodities to be exploited for profit.”
“As Chairman of the Indian Arts and Crafts Board, U.S. Department of the Interior, I want to convey the Board’s deep appreciation for the outstanding leadership and contributions provided by the U.S Attorney’s Office for the District of New Mexico and the U.S. Fish and Wildlife Service, along with the other agency partners who participated in bringing this landmark enforcement action under the Indian Arts and Crafts Act,” said Chairman Harvey Pratt of the Indian Arts and Crafts Board. “By requiring truth-in-marketing of Indian art and craftwork, the Act is intended to protect Native American artists and artisans who rely heavily on the production and sale of traditional and contemporary art and craftworks to provide their economic livelihood, preserve their rich heritage, and pass along their unique culture from generation to generation. Unfair competition from counterfeit Native American art and craftwork seriously erodes the sustainability, vitality, and economic well-being of Indian tribes and their members and businesses. The Act is also intended to protect the consumers who purchase Native American art, bringing much needed financial resources to Indian communities in the Southwest and across the country. Eliminating the flow of counterfeit Native American art and craftwork provides a level playing field for the highly talented, dedicated, and hard-working producers of genuine Native American art. We must protect these authentic American Treasures.”
“Under our 2012 cooperative agreement with the Indian Arts and Crafts Board, the U.S. Fish and Wildlife Service has investigated numerous potential violations of the Indian Arts and Crafts Act,” said Nicholas E. Chavez, Special Agent in Charge for the United States Fish and Wildlife Service, Office of Law Enforcement for the Southwest Region. “Our investigations primarily have focused on identifying fraudulent schemes where jewelry is marketed and sold as authentic Native American adornments to defraud tourists and other consumers. Through these investigations, the U.S. Fish and Wildlife Service endeavors to protect and preserve the authenticity of jewelry produced by our country’s Native American artisans.”
The four-count indictment that was unsealed earlier today charges Nael Ali, 51, and Mohammad Abed Manasra, 53, both of Albuquerque, N.M., and Christina Bowen, 41, of Los Lunas, N.M., with conspiracy to violate IACA and three substantive violations of the Act. Ali is the owner of two jewelry stores, Gallery 8 and Galleria Azul, in Albuquerque’s Old Town that purport to specialize in the sale of Native American jewelry. Bowen was formerly employed as a store manager by Ali. Manasra holds himself out as a wholesaler of Native American jewelry.
Ali was arrested in Albuquerque yesterday and Bowen surrendered to the U.S. Marshals Service this morning. Both made their initial appearances in federal court in Albuquerque this morning and were released pending trial. Manasra was arrested yesterday in La Habra, Calif., and will be transferred to the District of New Mexico to face the charges against him. If convicted of the charges against them, the defendants each face a statutory maximum penalty of five years in prison and a $250,000.00 fine. Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
During yesterday’s law enforcement operation and as part of the continuing investigation, federal agents executed 15 search warrants in New Mexico and one in California. Eight of the search warrants were executed in Albuquerque including four at retail and wholesale jewelry businesses. In addition, search warrants were executed at three jewelry stores in Gallup, three jewelry stores in Santa Fe, and a jewelry production shop in Zuni. Federal agents also executed a search warrant at a jewelry store in Calistoga, Calif. Three federal seizure warrants also were executed on bank accounts in a Charlotte, N.C., bank and a San Francisco, Calif., bank. In addition, the Philippines National Bureau of Investigations conducted a series of investigative interviews at two factories in Cebu City, Philippines.
The case was investigated by the Office of Law Enforcement for the Southwest Region of the U.S. Fish and Wildlife Service with assistance from the FBI, Homeland Security Investigations (HSI), U.S. Marshals Service, DEA and New Mexico Department of Game and Fish. The U.S. Fish and Wildlife Service’s Office of Law Enforcement for Region Eight and California Department of Fish and Wildlife provided support in Calistoga, Calif., and HSI provided support in La Habra, Calif. The U.S. Fish and Wildlife Service Attaché for Southeast Asia and the Philippine National Bureau of Investigations provided support in Cebu City, Philippines. Assistant U.S. Attorney Kristopher N. Houghton is prosecuting the case.
Three More Arrested in $12 Million Health Care Fraud ConspiracyRead the Press Release
HOUSTON – Three more Houston residents, including a man who was practicing medicine without a license, have been arrested on wide-ranging charges involving a $12 million conspiracy to commit health care fraud and to pay kickbacks to patients, announced U.S. Attorney Kenneth Magidson.
Bompa Mbokosa Mompiere, 56, Ann Marie Rocha, 48, and Eddie Wayne Taylor, 56, are charged in a 30-count superseding indictment with conspiracy to commit health care fraud. Taylor is additionally charged with health care fraud. They were all taken into custody today. They all appeared this morning before U.S. Magistrate Judge Mary Milloy. Mompiere and Taylor will be in court again today at 2:00 p.m. to complete the initial proceedings.
The original 25-count indictment charged Mktrich “Mike” Yepremian, 58, Dr. Harding Ross, 61, Dr. Faiz Ahmed, 63, Jermaine Doleman, 38, Michael Wayne Wilson, 46, and Eric Johnson, 61. They were arrested in July 2015 in conjunction with a search warrant executed at a downtown office building where several clinics and a blood testing laboratory were located. With the exception of Doleman who is in custody on unrelated health care fraud charges, all were released upon posting bond.
Yepremian was the owner and operator of the clinics and lab. The indictment alleges Yepremian paid Doleman, Wilson, Johnson and Taylor to bring Medicare and Medicaid patients to his clinics so they could be billed for multiple, medically unnecessary diagnostic tests and for unnecessary blood tests. In turn, the patients were allegedly paid by Yepremian, Doleman, Wilson, Johnson and Taylor to attend the clinics.
The indictment alleges this scheme began in 2006 and involved clinics that were held in the names of “straw owners,” although Yepremian controlled all funds from the false billing. The clinics were named Crawford Medical Services, Mid City Healthcare, Care Family Practice, Arca Medical Clinic, while the lab was named Empire Clinical Laboratory.
Yepremian is additionally charged with two additional money laundering counts for allegedly funneling money to relatives. The superseding indictment seeks to forfeit a Houston home purchased in the name of one of Yepremian’s relatives.
The statutory maximum penalty for conspiracy, money laundering or health care fraud is up to 10 years in prison as well as a maximum $250,000 fine, while a conviction for a violation of the anti-kickback statute could result in a five-year maximum term of imprisonment.
The charges are the result of the investigative efforts of the Texas Attorney General’s Medicaid Fraud Control Unit, FBI and the Department of Health and Human Services - Office of Inspector General, Office of Investigations. Special Assistant United States Attorney Suzanne Bradley and Assistant United States Attorney Tina Ansari are prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Stearns County Man Charged with Receipt and Possession of Child PornographyRead the Press Release
United States Attorney Andrew M. Luger, FBI Special Agent in Charge for the Minneapolis Division Richard T. Thornton, Minnesota Bureau of Criminal Apprehension (BCA) Superintendent Drew Evans and Stearns County Sheriff John Sanner today announced a federal criminal complaint charging DANIEL JAMES HEINRICH, 52, with receipt and possession of child pornography. HEINRICH made an initial appearance today in U.S. District Court in St. Paul, Minn., before Magistrate Judge Jeffrey J. Keyes. A detention hearing is expected to be held on Monday, November 2, 2015.
According to the federal criminal complaint and documents filed in state court, a search warrant was executed on July 28, 2015, at the Annandale, Minn., home of the defendant, seeking evidence related to the January 13, 1989, kidnapping and sexual assault of a Cold Spring, Minn., juvenile male and the October 22, 1989, abduction of a St. Joseph Township, Minn., juvenile male. During the execution of the search warrant, officers recovered numerous images of suspected child pornography from the residence. Those images were maintained in multiple three-ring binders and on the hard drive of a desktop computer.
“The charges against Mr. Heinrich result from a long-term child exploitation investigation,” said U.S. Attorney Luger. “Every image of child pornography victimizes a young person. Their lives and those of their families are never the same. This investigation wasn’t initiated to pursue those who trade in child pornography, but that’s what it uncovered and that’s what we’ve charged. The Stearns County Sheriff, Minnesota Bureau of Criminal Apprehension and the FBI continue the relentless pursuit of justice through this ongoing investigation for those who have lost loved ones.”
“This arrest sends a clear message to those who would exploit children: Law enforcement is actively pursuing you,” said Special Agent in Charge Thornton. “Children are the most innocent among us and there is no greater cause than their safety and protection. The FBI, in conjunction with our law enforcement partners, will continue to aggressively seek those who would victimize children.”
“An investigation of this length and nature requires an unwavering commitment dedicated to ensure that in the end justice is served,” said Stearns County Sheriff John L. Sanner. “The Stearns County Sheriff’s Office is grateful for and appreciates this level of commitment from our partners, the BCA, the FBI and the community as a whole.”
“Our pursuit of predators who target our children will never stop,” said BCA Superintendent Drew Evans. “It doesn’t matter how long ago it happened. In fact, as the science and the tools we use improve year after year, so does our ability to solve these crimes.”
According to the criminal complaint, among the suspected child pornography images stored in three-ring binders in HEINRICH’s home were more than 100 images that appear to depict child pornography, some of which depict known child victims, based on a review of national database of known victims of sexual abuse. In addition to the printed images, digital images of suspected child pornography were recovered from the defendant’s computer hard drive. Investigators also recovered hours of videos, apparently surreptitiously recorded by HEINRICH, of neighborhood children delivering newspapers, riding bicycles, playing in public playgrounds and participating in sporting activities.
In addition to the suspected child pornography discovered in HEINRICH’s home, and according to the criminal complaint, a recently-tested article of clothing worn by the juvenile male during a 1989 Cold Spring abduction and sexual assault was found to contain the defendant’s DNA. According to the BCA laboratory report, the predominant male DNA profile matches a known sample of the defendant. The predominant profile match to the defendant’s DNA would not be expected to occur more than once among unrelated individuals in the world population.
If you have information about this case, please contact the Stearns County Sheriff’s Office at 1-320-656-6625 or the National Center for Missing and Exploited Children at 1-800-THE-LOST.
This case is the result of an investigation conducted by the FBI, Minnesota Bureau of Criminal Apprehension and the Stearns County Sheriff’s Office.
This case is being prosecuted by Assistant United States Attorneys Steven L. Schleicher and Julie Allyn of the U.S. Attorney’s Office’s Special Prosecutions Unit.
Defendant Information:
DANIEL JAMES HEINRICH, 52
Annandale, Minn.
Charges:
- Possession of child pornography, 4 counts
- Receipt of child pornography, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
The charges contained in the criminal complaint are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
Statesboro Man Convicted on Identity Theft ChargesRead the Press Release
Jai Devon Lee, age 39, of Statesboro, Georgia, was convicted on October 27, 2015 of identity theft, aggravated identity theft and fraud in connection with access devices following a two-day jury trial in Valdosta. Senior U.S. District Court Judge Hugh Lawson presided over the trial.
Evidence presented at trial showed that in June 2014, Mr. Lee possessed documents containing personal identifying information, including names, social security numbers, and dates of birth of more than 1000 individuals, intended to be used for fraudulent purposes. A tip was made to the U.S. Secret Service office in Albany, Georgia on June 19, 2014 informing the agency that Mr. Lee was trying to arrange to sell the personal identifying information (PII) through the source for $50 each. A meeting was arranged at a Valdosta restaurant on June 25, 2014 between Mr. Lee and a Lowndes County Sheriff’s Office detective posing as a buyer who would purchase 900 of the documents for $45,000.00. Mr. Lee arrived with a backpack containing a shoebox filed with the stolen identifying information he intended to sell, as well as a folder containing more stolen identifying information, including some personal credit reports. Mr. Lee was taken into custody at that time and charged.
U.S. Attorney Michael Moore said, “This conviction in this case is the result of the good work and cooperation between the Lowndes County Sheriff’s Office and the Secret Service. Identity theft crimes wreak havoc for those whose information is stolen. The frustration that these victims suffer in having to monitor their credit reports and request new credit cards and checking accounts is not lost on federal law enforcement agencies. We’ll continue to pursue those who commit these crimes. As we prepare for sentencing, I expect that the only number Mr. Lee has on his mind is the number of years he can expect to spend in federal prison.”
“Identity theft is an ever-increasing problem throughout the country. The U.S. Secret Service remains committed to aggressively investigating those responsible for committing identity theft for the purpose of defrauding the nation’s financial system. Victims that have their personally identifiable information (PII) stolen have their lives invaded in a way that often causes long lasting financial consequences. Along with our law enforcement partners we will continue to pursue those committing these crimes,” said Clint A. Bush, Resident Agent in Charge, Albany, Georgia Resident Office, United States Secret Service.
Sentencing will take place on February 24, 2015 at 9:30 am in Valdosta. Mr. Lee has an extensive criminal record, including nine (9) prior felony convictions, and faces a possible maximum sentence of twenty-two (22) years imprisonment.
The case was investigated by the United States Secret Service and the Lowndes County Sheriff’s Office. Assistant United States Attorney Robert D. McCullers is prosecuting the case on behalf of the Government.
Statement by U.S. Attorney Damon P. Martinez on Assassination of Albuquerque Police Officer Daniel Webster in Line of DutyRead the Press Release
ALBUQUERQUE – U.S. Attorney Damon P. Martinez released the following statement regarding the death of Albuquerque Police Officer Daniel Webster:
“We were deeply saddened to learn that Officer Daniel Webster did not survive the senseless act of violence he suffered in the line of duty on the evening of October 21, 2015. We offer our deepest condolences to Michelle Carlino-Webster, the widow of this fallen hero, and the rest of his family and loved ones, and we condemn the despicable act that took Officer Webster from us in the strongest possible terms.
“Officer Webster was a dedicated law enforcement officer and a true patriot who served his country in the U.S. Army for 20 years. He leaves behind an enduring legacy that will live on in the lives he touched; in the work that the men and women of the Albuquerque Police Department continue to perform; and in a city and world that are safer because of his devoted service. His loss underscores the real dangers that are routinely faced by those who protect and serve their fellow citizens, and will be a constant reminder that we are deeply indebted to our law enforcement officers for placing their lives on the line each and every day in order to preserve public safety.
“The thoughts and prayers of the entire federal law enforcement community are with Officer Webster’s family and loved ones during this very difficult time. As we go forward, the Justice Department will honor Officer Webster’s service and his sacrifice by fighting for the values he protected every day, and by safeguarding the community for which he gave his life.”
South Jersey Man Sentenced to 15 Years in Prison for Conspiracy to Traffic Guns from South Carolina to New JerseyRead the Press Release
CAMDEN, N.J. – A Camden man was sentenced today to 180 months in prison for his role in a conspiracy to sell 22 guns without a license, U.S. Attorney Paul J. Fishman announced.
Joseph Rutling, 24, previously pleaded guilty before U.S. District Judge Renée Marie Bumb to an information charging him with one count of conspiring to deal firearms without a license and one count of possession of a firearm by a previously convicted felon. Judge Bumb imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
Between April 8, 2013, and July 28, 2014, Joseph Rutling and his brother, Marcus Rutling, a/k/a “Fresh,” 33, of Camden, and Saluda, South Carolina, conspired with others to illegally sell firearms without a license, including handguns, shotguns and an assault rifle. They obtained the firearms from pawn shops, gun stores and other sources in South Carolina and brought them to New Jersey, at times using Amtrak trains to transport the guns. Marcus Rutling personally sold or participated in the sale of at least seven firearms, including handguns and shotguns, to a witness cooperating with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Joseph Rutling personally sold or participated in the sale of at least 15 firearms, including handguns, shotguns and an assault rifle, also to an ATF cooperating witness. On at least five occasions, Joseph Rutling sold ammunition with the firearms.
In addition to the prison term, Judge Bumb sentenced Joseph Rutling to three years of supervised release. Marcus Rutling also pleaded guilty to his role in the conspiracy and was sentenced to 14 years in prison on Oct. 8, 2015.
U.S. Attorney Fishman credited special agents of the ATF, under the direction of Special Agent in Charge George P. Belsky, with the investigation leading to today’s sentencing. He also thanked special agents from the Drug Enforcement Administration, under the direction of Special Agent in Charge Carl J. Kotowski, as well as officers from the Winslow Township and Clementon, New Jersey, police departments, for their work in the case.
The government is represented by Assistant U.S. Attorney Matthew T. Smith of the U.S. Attorney’s Office in Camden.
Defense counsel: Mark W. Catanzaro Esq., Mount Holly
Somerset County, New Jersey, Builder Admits Bank Fraud Associated with Bogus Sale of Irvington, New Jersey, PropertyRead the Press Release
NEWARK, N.J. – A Neshanic Station, New Jersey, man today admitted his role in a scheme that used straw buyers and phony loan documents to fraudulently obtain a $400,500 loan on a property in Irvington, New Jersey, U.S. Attorney Paul J. Fishman announced.
Antonio Pimenta, 47, pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to Count Two of an indictment charging him with bank fraud.
According to documents filed and statements made in court:
Pimenta owned and managed Kelmar Construction Co. (“Kelmar”). Kelmar built multiple properties in Irvington, New Jersey. These properties were sold to straw buyers utilizing fraudulent mortgage loans brokered by loan officer, Klary Arcentales, 47, of Lyndhurst, New Jersey, and closed by settlement agent Linda Cohen, 57, of Orange, New Jersey, who used fraudulent settlement statements (HUD-1s) to hide the true sources and destinations of the mortgage funds. The straw buyers had no means of paying the mortgages, and many of the properties entered into foreclosure proceedings.
One such transaction took place in September 2007 on a property located at 97 22nd Street in Irvington, New Jersey, which was built by Kelmar. The mortgage loan application contained false and fraudulent information concerning the straw buyer’s income, employment and rental history. The application also falsely represented that the straw buyer intended to reside in the property as his primary residence. The straw buyer also represented to JP Morgan Chase that he would make a down payment of $44,500. Based on the bogus information, JP Morgan Chase agreed to fund a mortgage loan of approximately $400,500.
Pimenta admitted that despite the fact that he never received a down payment, he knowingly signed a settlement statement that falsely indicated that the payment was made. Afterwards, Pimenta and Kelmar received approximately $381,000 from the fraudulent transaction. No payments were ever made to JP Morgan Chase for this mortgage loan.
The charge to which Pimenta pleaded guilty carries a maximum potential penalty of 30 years in prison and a $1 million fine. Sentencing is scheduled for Feb. 16, 2016.
Arcentales and Cohen have both pleaded guilty to related charges and await sentencing.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel; special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen; and special agents of the Federal Housing Finance Agency, Office of the Inspector General, under the direction of Special Agent in Charge Steven Perez, for the investigation leading to today’s plea. Fishman also thanked the Social Security Administration, Office of the Inspector General, under the direction of Special Agent in Charge Edward J. Ryan, for its role in the investigation.
The government is represented by Special Assistant U.S. Attorney Sean M. Farrell and Assistant U.S. Attorneys Zach Intrater and Rahul Agarwal of the U.S. Attorney’s Office Criminal Division in Newark.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. The task force was established 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 nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.stopfraud.gov.
Defense counsel: Alain Leibman Esq., Princeton, New Jersey
Seven Individuals Indicted for Conspiracy, Mail and Wire Fraud, and Identity Theft in Connection with Laswuit Against BPRead the Press Release
Gulfport, Miss – Mikal C. Watts, 48, David Watts, 50, Wynter Lee, 37, of San Antonio, Texas, Gregory P. Warren a/k/a Greg Warren, 51, of Lafayette, Louisiana, Hector Eloy Guerra, 48, of Harlingen, Texas, Thi Houng Le a/k/a Kristy Le, 48, of Pascagoula, Mississippi, and Thi Hoaug Nguyen a/k/a Abbie Nguyen, 30, of Grand Bay, Alabama, were indicted on September 15, 2015 by a federal grand jury on 95 counts of Conspiracy, Mail and Wire Fraud, Identity Theft, and Aggravated Identity Theft, announced U.S. Attorney Gregory K. Davis and U.S. Secret Service Special Agent in Charge Craig Caldwell.
The indictment, unsealed today, alleges that the defendants conspired to defraud numerous victims from Mississippi, Louisiana, Texas, Alabama, and elsewhere, as well as the Gulf Coast Claims Facility and BP. As set forth in the indictment, the defendants, without contacting the individuals, would obtain names, addresses, dates of birth, and social security numbers from any source available to create "clients" for anticipated litigation as a result of the Deepwater Horizon Oil Spill. The indictment further alleges that the defendants fraudulently submitted names of over 40,000 individuals as plaintiffs represented by defendant Mikal C. Watts in litigation related to the Deepwater Horizon/BP oil spill, knowing that the individuals had not consented to be represented by the firm, and/or that stolen and false social security numbers, dates of birth, addresses, and occupations were claimed. According to the indictment, the defendants attempted to obtain payments from the Gulf Coast Claims Facility for persons Mikal C. Watts claimed to represent and ultimately submitted "Presentment Forms" to BP for each of the 40,000 plus individuals Mikal C. Watts claimed to represent. The indictment alleges that the total amount of claims submitted by the defendants to BP was in excess of $2 billion.
"The defendants in this case are accused of exploiting a disaster relief program set up to help those who were injured or suffered an economic loss as a result of the BP Oil spill – the worst environmental disaster in American history," said U.S. Attorney Davis. "The indictment alleges that the defendants carried out mail and wire fraud schemes using stolen identities of coastal residents in order to enrich themselves." Davis praised the outstanding investigative work of the U.S. Secret Service in their investigation of this complex case.
"This indictment represents the largest disaster fraud identity theft case to date, associated with the Deepwater Horizon Oil Spill Trust. This case highlights the Secret Service’s investigative expertise in combatting some of the most sophisticated, prolific financial crimes over our 150 year history," said Craig S. Caldwell, Special Agent in Charge of the United States Secret Service Birmingham Field Office. "This investigation serves as a great example of the steps the Secret Service will undertake to relentlessly defend the Nation’s financial infrastructure."
Conspiracy carries a maximum sentence of 5 years in prison and a $250,000 fine. Each count of Mail and Wire Fraud carries a maximum sentence of 20 years in prison and a $250,000 fine. Each count of Identity Theft carries a maximum sentence of 5 years in prison and a $250,000 fine. Each count of Aggravated Identity Theft carries a two year mandatory sentence and a $250,000 fine.
The defendants are scheduled to appear before U.S. Magistrate Judge John Gargiulo on Thursday, October 29, 2015 at 1:30 p.m. for their initial appearance and arraignment. Assistant U.S. Attorneys John Dowdy and Jerry Rushing are prosecuting the case for the government.
The public is reminded that an indictment is a formal charge that a defendant has committed a violation of the federal criminal laws. All defendants are presumed innocent unless and until proven guilty.
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If you believe you were a victim of identity theft in connection with this case or if you have any knowledge of fraudulent claims or schemes to obtain funds intended for the victims of the Deepwater Horizon Oil Spill, please contact the Gulf Coast Disaster Fraud Hotline at (877)NCDF GCF (623-3423).
Sentencings for October 23 - October 29, 2015Read the Press Release
Roberto Crispin Salinas-Garcia, 34, of Mexico, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on October 29, 2015, for illegal re-entry of a previously deported alien into the United States. Salinas-Garcia was arrested in Gillette, Wyoming. He received time served, plus ten days, was ordered to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Dale Peden, 52, was sentenced by Federal District Court Judge Scott W. Skavdahl on October 28, 2015, for conspiracy to distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine. Peden was arrested in Gillette, Wyoming. He received 180 months imprisonment, to be followed by five years of supervised release, and was ordered to pay a $1,000.00 fine and a $100.00 special assessment. This case results from an ongoing Organized Crime Drug Enforcement Task Forces (OCDETF) joint investigation conducted by the Wyoming Division of Criminal Investigation and the U.S. Drug Enforcement Administration. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
Stacy Amanda Deming, 31, of Sparks, Nevada, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on October 26, 2015, for possession with intent to distribute 50 grams or more of methamphetamine and aiding and abetting. Deming was arrested in Rawlins, Wyoming. She received 120 months imprisonment, to be followed by four years of supervised release, and was ordered to pay a $500.00 fine and a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation.
Dylan Lee Smith, 21, of Modesto, California, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on October 26, 2015, for simple possession of marijuana. Smith was arrested in Rawlins, Wyoming. He received time served, placed on six months supervised release, and was ordered to pay a $100.00 fine and a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation.
Katie Collins, 35, of Gillette, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on October 23, 2015, for conspiracy to distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine. Collins was arrested in Casper, Wyoming. She received 57 months imprisonment, to be followed by four years of supervised release, and was ordered to pay a $400.00 fine and a $100.00 special assessment. This case results from an ongoing Organized Crime Drug Enforcement Task Forces (OCDETF) joint investigation conducted by the Wyoming Division of Criminal Investigation and the U.S. Drug Enforcement Administration. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
Schuylkill County Man Sentenced to 27 Months in Prison for Illegal Possession of Unregistered MachinegunsRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 51-year-old Schuylkill County man was sentenced today to 27 months in prison by U.S. District Court Judge Malachy E. Mannion in Scranton, for his illegal possession of a fully functional unregistered machinegun, and an unmarked and unregistered drop in auto sear—which is a specific part that makes a semi-automatic rifle fire fully automatic when placed into the weapon.
According to United States Attorney Peter Smith, the defendant, James Augustus Brauer, previously pleaded guilty in April 2015, at which time he admitted to possession of the machineguns at his home on January 24, 2012.
The conviction is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Pennsylvania State Police.
Judge Mannion also ordered that Brauer serve three years on supervised release following his prison sentence.
Assistant U.S. Attorney John Gurganus prosecuted the case.
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Previously Deported Alien Charged with Illegal Re-EntryRead the Press Release
HARRISBURG- The United States Attorney’s Office for the Middle District of Pennsylvania announced that yesterday a federal Grand Jury in Harrisburg charged Manuel Zarate-Palomares with illegal re-entry into the United States by a previously deported alien.
According to United States Attorney Peter Smith, Zarate-Palomares, age 34, a native and citizen of Mexico, was arrested by the Border Patrol in New York and was extradited to Adams County, Pennsylvania on a bench warrant related to a traffic offense. He was previously deported from the United States on at least six occasions.
This matter was investigated by the U.S. Immigration and Customs Enforcement (ICE) Enforcement and Removal Operations (ERO). Prosecution has been assigned to Assistant U.S. Attorney Chelsea Schinnour.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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 2 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.
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Porcupine Woman Sentenced for False StatementRead the Press Release
United States Attorney Randolph J. Seiler announced that a Porcupine, South Dakota, woman convicted of False Statement was sentenced on October 28, 2015, by U.S. District Chief Judge Jeffrey L. Viken.
Danishia Marshall, age 20, was sentenced to 10 months in custody, followed by 2 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Marshall was indicted by a federal grand jury on December 16, 2014. She pled guilty on June 11, 2015.
The conviction stemmed from an incident on September 27, 2013, when a call came into the Pine Ridge Police Department indicating that Marshall was intoxicated and would not allow relatives to care for her infant baby. An officer responded and upon investigation, Marshall was placed under arrest on a tribal charge.
The officer arrived at the Kyle jail with Marshall, and during the booking process, she appeared to have an asthma attack. The officer then transported Marshall to the Indian Health Services hospital in Pine Ridge, and while enroute, Marshall slumped over in the back seat. The officer was concerned for her health, and radioed for an ambulance. The ambulance took custody of Marshall, and the officer followed the ambulance to the hospital.
While in the ambulance, Marshall made an allegation of sexual assault against the officer. She reported it to tribal police and had a sexual assault examination at the hospital.
On October 3, 2013, Marshall was interviewed by a Federal Bureau of Investigation (FBI) agent. During the interview, Marshall falsely told the agent she was raped and sodomized by the officer. When Marshall made these statements to the ambulance crew, medical staff, tribal police, and the FBI, Marshall knew the statements were false. She knew that the officer had not sexually assaulted her, and that she had falsely accused an innocent man of a crime.
This case was investigated by the FBI. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Marshall was immediately turned over to the custody of the U.S. Marshals Service.
Pittsburgh Man Pleads Guilty to Counterfeit Currency ChargesRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, pleaded guilty in federal court to charges of conspiracy, making counterfeit currency and passing counterfeit money, United States Attorney David J. Hickton announced today.
Robert W. Jackson, Jr., a/k/a Flace Rob, a/k/a Black Rob, 26 of Pittsburgh, PA pleaded guilty to six counts before Chief United States District Judge Joy Flowers Conti.
In connection with the guilty plea, the court was advised that in and around May 2013, Jackson and others conspired to make and pass counterfeit currency, and from on or about January 14, 2014, January 23, 2014, and January 26, 2014, Jackson passed counterfeit money.
Judge Conti scheduled sentencing for Feb.5, 2016 at 3:30 p.m. The law provides for a total sentence of 105 years in prison, a fine of $1,500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Shardul S. Desai is prosecuting this case on behalf of the government.
The United States Secret Service conducted the investigation that led to the prosecution of Jackson.
Philadelphia Man Sentenced to Prison for Drug Law ViolationsRead the Press Release
JOHNSTOWN, Pa. - A resident of Philadelphia, Pa., has been sentenced in federal court to 30 months in prison and three years’ supervised release on his conviction of violating federal narcotics laws, United States Attorney David J. Hickton announced today.
United States District Judge Kim R. Gibson imposed the sentence on Paul A. Robinson, Jr., 33, of Philadelphia, Pa.
According to information presented to the court, from Jan. 31, 2013, to April 23, 2013, Robinson conspired to distribute less than 28 grams of cocaine base, in the form commonly known as “crack.” Robinson also distributed less than 28 grams of cocaine base on Jan. 31, 2013, and Feb. 12. 2013.
Assistant United States Attorney John J. Valkovci, Jr., prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Cambria County Drug Task Force for the investigation leading to the successful prosecution of Robinson.
Philadelphia Man Charged with Setting Fire That Damaged Apartment Buildings and Construction SiteRead the Press Release
PHILADELPHIA – Stephen Gregory Pettiway, 50, of Philadelphia, PA, was charged today by indictment with setting a fire on September 15, 2015, that damaged three properties in Philadelphia, announced United States Attorney Zane David Memeger. According to the indictment, Pettiway started a fire that caused damage to equipment and buildings that included Chancellor Apartments at 206 South 13th Street, a construction site at 208 South 13th Street owned by Maze Hospitality Group, and Gramercy Building at 210 South 13th Street. He is charged with one count of malicious damage by means of fire of a building used in interstate commerce.
If convicted the defendant faces a mandatory-minimum term of 60 months in prison with a possible guideline sentencing range of up to 71 months in prison without the possibility of parole, a fine of up to $250,000, a $100 special assessment, and up to three years of supervised release.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Philadelphia Fire Department. It is being prosecuted by Assistant United States Attorneys José R. Arteaga and Thomas M. Zaleski.
Philadelphia Man and Linden Woman Indicted for Conspiracy to Distribute Heroin Following Arrest in Loyalsock TownshipRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that a federal grand jury in Harrisburg returned an Indictment yesterday charging a Philadelphia man and a Linden, Pennsylvania woman with conspiracy to distribute and distribution of heroin in Loyalsock Township, Lycoming County.
According to U.S. Attorney Peter Smith, the grand jury alleged that Timothy Moses, age 34, and Marissa Copen, age 26, conspired to distribute and distribution of heroin on or about October 2015. The indictment alleges that they utilized rental vehicles and hotel rooms to facilitate the distribution of heroin in the Williamsport area to carry out their activities. Moses and Copen were arrested on October 21, 2015.
The federal investigation was conducted by the Federal Bureau of Investigation with the assistance of the Pennsylvania State Police. Assistant United States Attorney George J. Rocktashel has been assigned to the prosecution of this matter.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the sentencing judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 40 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the sentencing 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.
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Owners of Danbury Flooring Company Plead Guilty to Federal Tax ChargesRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and William P. Offord, Special Agent in Charge of IRS Criminal Investigation in New England, today announced that DAVID BENINCASA, 34, and SCOTT BENINCASA, 32, both of Danbury, waived their right to indictment and pleaded guilty yesterday in Hartford federal court to federal tax offenses.
According to court documents and statements made in court, DAVID BENINCASA and his brother, SCOTT BENINCASA, were 50 percent owners in Goodhouse Flooring, LLC, a business that provides floor installation and flooring products to retail and commercial customers. DAVID BENINCASA assisted SCOTT BENICASA with the daily operations of the business, but had primary responsibility for the financial aspects of the business. For the 2008 through 2010 tax years, DAVID and SCOTT BENINCASA intentionally understated gross receipts from their business on the Schedule C attached to their respective federal personal income tax filings. During those years, the brothers failed to accurately report the expenses incurred in running their business, as they paid certain laborers who worked for their business in cash and then failed to reflect the cash payments on their filed returns.
The additional tax due and owing attributable to DAVID and SCOTT BENINCASA’s criminal conduct is $238,274 and $47,076, respectively.
In pleading guilty, SCOTT BENINCASA also admitted that, during an IRS civil audit, he submitted a false real estate log and business schedule in an effort to improperly justify previously taken deductions on his 2009 federal personal income tax return.
DAVID BENINCASA pleaded guilty to one count of tax evasion, which carries a maximum term of imprisonment of five years. He is scheduled to be sentenced by U.S. District Judge Robert N. Chatigny on January 25, 2016. SCOTT BENINCASA pleaded guilty to one count of filing a false tax return, which carries a maximum term of imprisonment of three years. He is scheduled to be sentenced by Judge Chatigny on January 21, 2016. Both defendants also will be ordered to pay full restitution, plus applicable interest and penalties.
This matter is being investigated by the Internal Revenue Service – Criminal Investigation Division and is being prosecuted by Assistant U.S. Attorney Christopher W. Schmeisser.
North Bergen, New Jersey, Compliance Officer Indicted for Rigging Contractor Selection Process for Community Development ProjectsRead the Press Release
NEWARK, N.J. – A compliance officer with the Union City Community Development Agency (UCCDA) was indicted today for allegedly manipulating the contractor selection process for federally-funded residential rehabilitation and sidewalk replacement projects, causing losses of at least $250,000, U.S. Attorney Paul J. Fishman announced.
Washington Borgono, 64, of North Bergen, New Jersey, was charged with one count of obtaining by fraud, converting and misapplying government funds provided by the UCCDA and one count of conspiring with others to do the same. The indictment was returned today by a federal grand jury sitting in Newark.
According to the indictment:
From April 2007 through February 2013, Borgono was a compliance officer at the UCCDA, a local government agency that receives grant funds from the U.S. Department of Housing and Urban Development (HUD) for home improvement projects, sidewalk replacement and other projects.
From 2007 through 2013, Borgono conspired with Johnny Garces, 52, of Union City, New Jersey, a UCCDA inspector, and contractors Joseph Lado, 67, of Fort Lee, New Jersey, Leovaldo Fundora, 54, of Guttenberg, New Jersey, and others to use false and misleading bids to rig the selection process for HUD-funded projects. In addition to instructing Lado, Fundora and other contractors to submit phony higher bids from competitors or their own companies, Borgono and Garces used fabricated higher bids or threw out lower bids in order to secure certain UCCDA projects for Lado, Fundora and others.
The charge of obtaining by fraud, converting and misapplying government funds 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. The conspiracy charge carries a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gross gain or loss from the offense.
The charges and allegations contained in the indictment are merely accusations, and Borgono is presumed innocent unless and until proven guilty.
Garces, Lado and Fundora previously pleaded guilty to their roles in the scheme and await sentencing.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel, and special agents of the U.S. Department of Housing and Urban Development, Office of Inspector General, under the direction of Special Agent in Charge Christina Scaringi, for their work in the investigation.
The government is represented by Assistant U.S. Attorney Barbara R. Llanes of the U.S. Attorney’s Office Special Prosecutions Division in Newark.
Defense counsel: Louis A. Zayas Esq., North Bergen, New Jersey
Norristown Man Charged with Bank RobberyRead the Press Release
PHILADELPHIA – Shawn LaSalle Harris, 37, of Norristown, PA, was charged today by Indictment with armed bank robbery and a weapons offense, announced United States Attorney Zane David Memeger. According to the indictment, on June 3, 2015, Harris held up the Bank of America branch at 420 Plymouth Road, in Plymouth Meeting, PA. He allegedly brandished and discharged a .380 caliber Ruger handgun.
If convicted, Harris faces a mandatory minimum term of 10 years in prison with a statutory maximum sentence of life, up to five years of supervised release, a $200 special assessment and a possible fine.
The case was investigated by the FBI and the Plymouth Township Police Department. It is being prosecuted by Assistant United States Attorney José R. Arteaga.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
New Jersey Man Admits Conspiring to Provide Material Support to ISILRead the Press Release
A West New York, New Jersey, man today admitted that he conspired to provide material support to the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization. The announcement was made by Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Paul J. Fishman of the District of New Jersey and Special Agent in Charge Richard M. Frankel of the FBI’s Newark, New Jersey, Division.
Alaa Saadeh, 24, pleaded guilty before U.S. District Judge Susan D. Wigenton of the District of New Jersey to an information charging him with one count of conspiring with others to provide material support to ISIL. He remains detained without bail.
“Saadeh conspired with his brother and others to travel overseas to join ISIL,” said Assistant Attorney General Carlin. “The National Security Division’s highest priority is counterterrorism and we will continue to pursue justice against those who seek to provide material support to designated foreign terrorist organizations.”
“Alaa Saadeh is the second defendant in this case who has admitted trying to provide material support to a known terrorist organization,” said U.S. Attorney Fishman. “That organization, and others who share its goals, are intent on recruiting people in this country and around the world to join their campaign against our security. The fight against these kinds of groups is going on around the world, but is also being waged here at home. They are intent on threatening the safety of Americans here and abroad, and we and our law enforcement partners are intent on stopping them.”
“Today in the U.S. District Court of New Jersey Alaa Saadeh admitted he planned to travel to Syria to join ISIL along with others,” said Special Agent in Charge Frankel. “Now, thanks to the efforts of Newark FBI’s Joint Terrorism Task Force, Saadeh will go to prison rather than take up arms overseas.”
According to documents filed in this and related cases and statements made in court:
Saadeh admitted that prior to his arrest on June 29, 2015, he planned to travel overseas to join ISIL along with others. Saadeh discussed the plans to join ISIL with his brother, Nader Saadeh, Samuel Rahamin Topaz and Munther Omar Saleh, and told the judge today that each of them indicated that they wanted to join ISIL at various times. Saadeh also admitted that he watched ISIL-related videos with Nader Saadeh and Topaz, some of which depicted the execution of individuals – both Muslim and non-Muslim – regarded by ISIL as enemies.
On May 5, 2015, Nader Saadeh, departed the United States with plans to travel overseas to join ISIL as part of the conspiracy, according to Saadeh’s statements in court today. Saadeh further admitted assisting Nader Saadeh with these plans by letting him purchase airline tickets using Saadeh’s credit card, removing the SIM card from Nader’s smartphone and resetting the smartphone in an effort to avoid detection. Saadeh admitted that Saleh assisted Nader Saadeh by giving him a contact that would facilitate Nader’s travel from Turkey to ISIL in Syria. Saadeh further admitted that after his brother left the United States, Saleh and Topaz intended to travel overseas to join ISIL. After becoming aware that the FBI was investigating this matter, Saadeh instructed an individual who knew of Nader Saadeh’s support for ISIL to lie if questioned by the FBI on the subject. Saadeh further admitted telling this individual to “just play stupid,” “pretend it never happened” and “keep it honest up to a point.”
Saadeh admitted to knowing that ISIL was a designated terrorist organization and was taking over territory overseas, expelling non-Muslims from their homes and executing individuals who did not obey ISIL’s commands.
The count of conspiracy to provide material support to a designated foreign terrorist organization carries a maximum potential penalty of 15 years in prison and a fine of $250,000. Sentencing is scheduled for Feb. 16, 2016.
Saadeh’s alleged co-conspirators are being prosecuted and are currently in federal custody. On Sept. 9, 2015, Topaz pleaded guilty before Judge Wigenton to conspiring to provide material support to ISIL. Nader Saadeh has been charged in a criminal complaint with conspiring to provide material support to ISIL, among other charges. Saleh has been indicted on terrorism-related charges in the Eastern District of New York. The charges and allegations against Nader Saadeh and Saleh are merely accusations, and they are presumed innocent unless and until proven guilty.
Assistant Attorney General Carlin and U.S. Attorney Fishman credited special agents of the FBI’s Newark Division, under the direction of Special Agent in Charge Frankel, and the Joint Terrorism Task Force with the investigation leading to today’s guilty plea.
The case is being prosecuted by Assistant U.S. Attorneys L. Judson Welle, Dennis C. Carletta and Francisco J. Navarro of the District of New Jersey, with assistance from Trial Attorney Robert Sander of the National Security Division’s Counterterrorism Section.
Alaa Saadeh Information
Alaa Saadeh Plea Agreement
Nebraska Man Pleads Guilty to Unauthorized Access to BVU ComputersRead the Press Release
A man who was upset at being passed over for an IT position at Buena Vista University and gained unauthorized access to several BVU computers, pled guilty on October 28, 2015, in federal court in Sioux City.
David Boyer, age 46, from Nebraska, was convicted of one count of unauthorized access to a protected computer.
In a plea agreement, Boyer admitted that from October 2009, through June 4, 2010, he intentionally accessed protected computers belonging to Buena Vista University without authorization. Boyer accessed the computers and email accounts of the President, Vice President and other employees of Buena Vista University because he was angry at University for failing to promote him to be the head of the IT department, and hiring another individual for that position. As part of the plea agreement Boyer agreed to pay $100,000 in restitution, and signed a written apology to the University.
Sentencing before United States District Court Judge Mark W. Bennett will be set after a presentence report is prepared. Boyer remains free on bond previously set pending sentencing. Boyer faces a term of imprisonment of not more than 1 year, a $10,000 fine, a $25 special assessment, and at least 1 year of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Timothy T. Duax and was investigated by the Iowa Department of Criminal Investigations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 15-CR-4109.
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Missoula Tax Preparer Sentenced for Tax FraudRead the Press Release
MISSOULA – Roy Eugene Baker, Jr., 71, of Missoula, MT, was sentenced today in Missoula federal court. In July, Baker pleaded guilty before U.S. Magistrate Jeremiah Lynch to one count of Aiding or Advising a False Tax Return. Chief U.S. District Court Judge Dana Christensen Sentenced Baker to five years’ probation and the payment of $11,768.24 in restitution. Baker was initially charged by indictment with six counts of Aiding or Advising a False Tax Return and one count of False Statements to a Government Agency.
The IRS began investigating Baker and his tax preparation company, Bak-Tax Management Service, following a complaint by one of Baker’s clients that Baker had falsely inflated business expenses on the client’s tax return. Two undercover IRS agents went to Bak-Tax to have tax returns prepared. Baker prepared a return for one of the agents that included false business expenses in the amount of $4,433. When the agent questioned Baker about the figure, Baker responded, “I gave you a few more supplies there.”
When subsequently questioned by the IRS about the cost of goods figure reported on the undercover agent’s tax return, Baker lied, stating that the figure had been supplied by the client. An audit of all of Baker’s clients revealed $467,737 in underreported tax to the IRS. The Government charged Baker based on $59,789 of criminal loss to the IRS from those clients whose records and testimony could prove beyond a reasonable doubt that Baker falsified their tax returns. Baker’s methods included creating false schedule C businesses, inflating business expenses, and omitting income reported to him by his clients. When some of Baker’s clients confronted him, he claimed ignorance and refused to help them with the audit process. In its recommendation for sentencing, the United States noted that Baker’s actions resulted in a significant fraud against both the United States Treasury and his own clients, many of whom owed substantial amounts to the IRS as a result of Baker’s actions.
This case was prosecuted by Assistant U.S. Attorney Chad Spraker and investigated by the Internal Revenue Service.
Michigan Ferrari Mechanic Sentenced to Prison for Tax FraudRead the Press Release
A Smith’s Creek, Michigan resident, who specialized in repairing classic and rare cars was sentenced today to two years in prison, followed by two years of supervised release, for tax evasion and failure to file income tax returns, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division.
On April 29, Terry Myr, 71, was convicted by a jury on one count of attempted tax evasion and four counts of failure to file tax returns. According to the evidence presented at trial and court documents, the Internal Revenue Service (IRS) assessed Myr approximately $195,000 in taxes, interest and penalties for his failure to report all of his income for the tax years 2000 through 2003. In 2009, when his tax liabilities remained unpaid, Myr sold a rare Ferrari engine for $610,000. To prevent the IRS from collecting the taxes he owed, Myr transferred property that he owned to a third party, used nominee companies to conceal his income and assets and otherwise dealt in cash. Myr used some of the Ferrari engine proceeds to purchase more than $360,000 in gold and silver coins. Myr also attempted to evade the payment of his taxes by asking his customers to pay him in cash, money orders, or prepaid debit cards. The evidence also showed that although Myr was required to file individual income tax returns, he had not filed a tax return or paid federal income taxes since 2001. The government estimated that Myr’s actions caused a total tax loss of $738,904.
U.S. District Court Judge Nancy G. Edmunds in the Eastern District of Michigan also ordered Myr to pay his back taxes, penalties and interest.
Acting Assistant Attorney General Ciraolo commended the special agents of IRS-Criminal Investigation who investigated the case, and Trial Attorneys Tiwana Wright and Kenneth C. Vert of the Tax Division, who are prosecuting the case.
Mexican National Convicted of Importing Nearly $2 Million in MethRead the Press Release
McALLEN, Texas – A 43-year-old Mexican national has entered a guilty plea to importing 75 kilograms of methamphetamine into the country hidden within a load of squash and cactus, announced U.S. Attorney Kenneth Magidson.
On March 31, 2015, Daniel Salvador Gomez-Reyes was intercepted by federal agents while was driving a semi-truck loaded with squash and cactus into the Pharr port of entry from Mexico. Upon investigation, federal agents soon discovered 75 kilograms of methamphetamine hidden within false compartments in the pallets under the produce. Gomez-Reyes admitted he picked up the narcotics-laden produce under suspicious circumstances in Mexico and that he knew he was importing controlled substances into the U.S.
The estimated value of the load of methamphetamine is estimated to be approximately $1.98 million.
U.S. District Judge Randy Crane, accepted the plea and has sentencing for Jan. 14, 2016. At that time, Gomez-Reyes faces up to life in federal prison. He will remain in custody pending that hearing.
The charges are the result of an investigation conducted by Homeland Security Investigations and Customs and Border Protection. Assistant U.S. Attorneys David A. Lindenmuth and Alexandro Benavides are prosecuting the case.