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23 October 2015
High-Level International Drug Trafficker Sentenced to 30 Years in Prison for Long-Running Narcotics ConspiracyRead the Press Release
Defendant Operated Out of the United States, Canada, Mexico, Colombia, Bahamas, Spain, France, Italy, Panama and Luxembourg
Gregory Joel Sitzmann, 65, was sentenced today to 30 years in prison for his role as the leader of an international drug trafficking and money laundering ring that operated for at least 14 years out of the United States, Canada, Mexico, Colombia, Bahamas, France, Italy, Spain and other countries.
The sentencing was announced by U.S. Attorney Channing D. Phillips of the District of Columbia, Special Agent in Charge Clark E. Settles of U.S. Immigration and Customs Enforcement-Homeland Security Investigations (ICE-HSI) in Washington, D.C., and Chief Cathy L. Lanier of the Washington, D.C., Metropolitan Police Department (MPD).
Sitzmann, who was born in Iowa, had most recently resided in Colombia. He was found guilty by a jury on May 21, 2012, of conspiracy to distribute and possess with the intent to distribute five kilograms or more of cocaine. The verdict followed a six-week trial in the U.S. District Court for the District of Columbia. Sitzmann was sentenced by U.S. District Judge Paul L. Friedman of the District of Columbia. Upon completion of his prison term, Sitzmann will be placed on 10 years of supervised release. The judge also ordered Sitzmann to pay a $500,000 fine.
According to the government’s evidence, Sitzmann used and conspired to use numerous individuals and artifices to transport hundreds of kilograms of cocaine from Colombia and Mexico into the United States and into numerous countries around the world. For example, Sitzmann used commercial airplanes, and luggage, automobiles and trucks with secret compartments to move the drugs.
Evidence showed that Sitzmann has been involved in drug smuggling and money laundering since at least the 1980s and that he provided hundreds of kilograms of cocaine to a Hells Angels motorcycle gang in Montreal throughout the 1990s. He maintained corporations and bank accounts in Panama, Switzerland, Luxembourg and elsewhere to facilitate his money laundering and the purchase of assets.
“Gregory Joel Sitzmann was a career wholesale cocaine trafficker who operated an international drug conspiracy at the highest levels that involved over 1,300 kilograms of cocaine,” said U.S. Attorney Phillips. “He directly acquired cocaine from the drug cartels of Colombia and Mexico to transport into the United States and other countries around the world. Now, after years of eluding justice, he has been convicted and will spend an appropriately significant amount of time in prison for his crimes. This case shows our determination to combat narcotics traffickers at the highest levels in all corners of the world.”
“The strong investigative work of our HSI special agents and law enforcement partners dismantled this international drug trafficking organization – one that operated on multiple continents and supplied a significant amount of cocaine to the United States,” said Special Agent in Charge Settles. “Today’s sentence concludes Sitzmann’s long journey from drug kingpin to being just another convicted drug trafficker.”
“The defendant in this case attempted to delay justice for several years,” said Chief Lanier. “Today’s sentencing is yet another example of the resolve that we, as law enforcement, have towards following through on investigating and prosecuting drug traffickers to the greatest extent possible.”
Sitzmann was indicted on Aug. 7, 2008, by a federal grand jury in the District of Columbia for activities that took place during the 1990s and at least until 2004. The day after the indictment, Sitzmann was deported from France to the United States, where HSI special agents arrested Sitzmann. He has been in custody ever since. The defendant delayed trial for years, utilizing numerous attorneys while alternating with demands to represent himself.
The prosecution grew out of the efforts of the federal Organized Crime Drug Enforcement Task Force, a multi-agency team that conducts comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. The principal mission of the nationwide program is to identify, disrupt and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
In recent years, investigations by this task force have led to the arrests and indictments of dozens of people from drug organizations that operate in the Washington, D.C., area.
In announcing the sentence, U.S. Attorney Phillips, Special Agent in Charge Settles and Chief Lanier expressed appreciation for the work of the many dedicated people who pursued the investigation, including the HSI special agents and the investigators from the MPD. They also thanked the U.S. Drug Enforcement Administration, U.S. Customs and Border Protection, the Colombian National Police, the French National Police, French Customs, the Royal Canadian Mounted Police and the Royal Bahamas Police for assistance in the investigation. They acknowledged the work of those who handled the case for the U.S. Attorney’s Office of the District of Columbia, including Paralegal Specialists Crystal Barclay, Candice Sisco and David Hollingsworth; Legal Assistants Tammy Scott and Diane Brashears; Victim/Witness Coordinator Dawn Tolson-Hightower; and Litigation Technology Specialists Ron Royal and Joshua Ellen.
Finally, they thanked Assistant U.S. Attorneys George Eliopoulos and Sharad Khandelwal of the District of Columbia, who prosecuted the case.
High-Level International Drug Trafficker Sentenced to 30 Years in Prison for Long-Running Narcotics ConspiracyRead the Press Release
WASHINGTON - Gregory Joel Sitzmann, 65, was sentenced today to 30 years in prison for his role as the leader of an international drug trafficking and money laundering ring that operated for at least 14 years out of the United States, Canada, Mexico, Colombia, Bahamas, France, Italy, Spain and other countries.
The sentencing was announced by U.S. Attorney Channing D. Phillips; Clark E. Settles, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Washington, D.C.; and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Sitzmann, who was born in Iowa, had most recently resided in Colombia. He was found guilty by a jury on May 21, 2012, of conspiracy to distribute and possess with the intent to distribute five kilograms or more of cocaine. The verdict followed a six-week trial in the U.S. District Court for the District of Columbia. Sitzmann was sentenced by the Honorable Paul L. Friedman. Upon completion of his prison term, Sitzmann will be placed on 10 years of supervised release. The judge also ordered Sitzmann to pay a $500,000 fine.
According to the government’s evidence, Sitzmann had used and conspired to use numerous individuals and artifices to transport hundreds of kilograms of cocaine from Colombia and Mexico into the United States and into numerous countries around the world. For example, Sitzmann used commercial airplanes, automobiles and trucks with secret compartments, and luggage with secret compartments, to move the drugs.
Evidence showed that Sitzmann has been involved in drug smuggling and money laundering since at least the 1980s and that he provided hundreds of kilograms of cocaine to a Hells Angels motorcycle gang in Montreal, Canada, throughout the 1990s. He maintained corporations and bank accounts in Panama, Switzerland, Luxembourg, and elsewhere to facilitate his money laundering and the purchase of assets.
“Gregory Joel Sitzmann was a career wholesale cocaine trafficker who operated an international drug conspiracy at the highest levels that involved over 1,300 kilograms of cocaine,” said U.S. Attorney Phillips. “He directly acquired cocaine from the drug cartels of Colombia and Mexico to transport into the United States and other countries around the world. Now, after years of eluding justice, he has been convicted and will spend an appropriately significant amount of time in prison for his crimes. This case shows our determination to combat narcotics traffickers at the highest levels in all corners of the world.”
“The strong investigative work of our HSI special agents and law enforcement partners dismantled this international drug trafficking organization – one that operated on multiple continents and supplied a significant amount of cocaine to the United States,” said Special Agent in Charge Settles. “Today’s sentence concludes Sitzmann’s long journey from drug kingpin to being just another convicted drug trafficker.”
“The defendant in this case attempted to delay justice for several years,” said Chief Lanier. “Today’s sentencing is yet another example of the resolve that we, as law enforcement, have towards following through on investigating and prosecuting drug traffickers to the greatest extent possible.”
Sitzmann was indicted on Aug. 7, 2008 by a federal grand jury in the District of Columbia for activities that took place during the 1990s and at least until 2004. The day after the indictment, Sitzmann was deported from France to the United States, where HSI special agents arrested Sitzmann. He has been in custody ever since. The defendant delayed trial for years, utilizing numerous attorneys while alternating with demands to represent himself.
The prosecution grew out of the efforts of the federal Organized Crime Drug Enforcement Task Force, a multi-agency team that conducts comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. The principal mission of the nationwide program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
In recent years, investigations by this task force have led to the arrests and indictments of dozens of people from drug organizations that operate in the Washington, D.C. area.
In announcing the sentence, U.S. Attorney Phillips, Special Agent in Charge Settles, and Chief Lanier expressed appreciation for the work of the many dedicated people who pursued the investigation, including the HSI special agents and the investigators from the MPD. They also thanked the U.S. Drug Enforcement Administration, the U.S. Customs and Border Protection, the Colombian National Police, the French National Police, French Customs, the Royal Canadian Mounted Police, and the Royal Bahamas Police, for assistance in the investigation. They acknowledged the work of those who handled the case for the U.S. Attorney’s Office, including Paralegal Specialists Crystal Barclay, Candice Sisco, and David Hollingsworth; Legal Assistants Tammy Scott and Diane Brashears; Victim/Witness Coordinator Dawn Tolson-Hightower, and Litigation Technology Specialists Ron Royal and Joshua Ellen.
Finally, they thanked Assistant U.S. Attorneys George Eliopoulos and Sharad Khandelwal, who prosecuted the case.
Gun Charges Bring 15-Year Sentence to Ellaville Repeat OffenderRead the Press Release
Robert C. Brown, aged 45, of Ellaville, Georgia, was sentenced on October 22, 2015 to serve 15 years (180 months) in federal prison for possession of a firearm by a convicted felon. The sentence was handed down by U.S. District Court Judge Leslie J. Abrams in Albany, Georgia.
Mr. Brown pled guilty to the charge on April 20, 2015. As part of his plea, he admitted that he has three prior felony convictions in the State of Georgia: 1) aggravated assault in Sumter County on May 3, 1991; 2) burglary in Schley County on December 7, 2000; and 3) burglary in Schley County in a separate case on December 7, 2000.
On January 26, 2014, Mr. Brown sold a firearm to a local resident. During a subsequent parole search of Mr. Brown’s residence, conducted on January 28, 2014, seven firearms were found in a bedroom closet.
“Mr. Brown received this lengthy sentence because he is deemed a career criminal under federal law. Not only is he prohibited from owning firearms at all, he made matters worse by selling them, as well,” said United States Attorney Michael J. Moore.
The case was investigated by the Schley County Sheriff’s Office and the Georgia Department of Corrections. Assistant United States Attorney Jim Crane prosecuted the case for the Government.
Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
Greenville Man Sentenced to 108 Months for Business RobberiesRead the Press Release
ELIZABETH CITY – United States Attorney Thomas G. Walker announced that in federal court yesterday, United States District Judge Terrence W. Boyle sentenced KEITH MICHAEL JONES, 25, of Greenville, to 108 months imprisonment followed by 3 years of supervised release. On July 15, 2015, JONES pleaded guilty to 2 counts of robbery of a business in interstate commerce and 1 count of robbery of a business in interstate commerce and aiding and abetting.
An investigation initiated by the Greenville Police Department, revealed that on August 10, 2014, KEITH MICHAEL JONES entered the Wilco Hess station located on South Memorial Drive in Greenville and robbed the store of currency and cigarettes.
On August 11, 2014, JONES entered the Kangaroo Express located on Southeast Greenville Boulevard and robbed the store of currency and cigarettes.
On August 13, 2014, JONES and an unknown suspect, entered and robbed the Kangaroo Express located on Queen Street in Grifton, North Carolina. JONES took United States currency from the register.
That same evening, a detective who was conducting surveillance in Greenville due to the increasing number of armed robberies in the area, observed JONES hiding next to an abandoned building.
Investigation of this case was conducted by the Greenville Police Department, the Grifton Police Department, and the Bureau of Alcohol Tobacco Firearms and Explosives. Assistant United States Attorney S. Katherine Burnette prosecuted the case for the government.
Greenville Drug Trafficker SentencedRead the Press Release
ELIZABETH CITY - United States Attorney Thomas G. Walker announced that in federal court on October 22, 2015, United States District Judge Terrence W. Boyle sentenced BRYANT FIGUEROA, 32, of Greenville, North Carolina, to 60 months in prison followed by 5 years of supervised release for conspiracy to distribute and possess with the intent to distribute 100 grams or more of heroin. FIGUEROA previously pled guilty to this charge on July 15, 2015.
The Greenville Regional Drug Task Force used an informant to buy heroin from FIGUEROA on three occasions in October and November 2014. The investigation revealed that between June 2014 and December 9, 2014, FIGUEROA and his co-conspirators were responsible for distributing approximately 125 grams of heroin in Pitt County, North Carolina.
The investigation of this case was conducted by the Greenville Regional Drug Task Force. The federal prosecution was handled by Special Assistant United States Attorney Glenn Perry. Mr. Perry is a prosecutor with the Pitt County District Attorney’s Office. Pitt County District Attorney Kimberly Robb has assigned Mr. Perry to the United States Attorney’s Office to prosecute federal Organized Crime Drug Enforcement Task Force criminal matters. Mr. Perry’s assignment to the United States Attorney’s Office has been made possible by grants funded by the Governor’s Crime Commission.
Gibsonton Couple Indicted for Stolen Identity Refund FraudRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces the unsealing of an indictment charging Ynessa Brown and Thelonius Robertson with 10 counts of wire fraud, 1 count of conspiring to commit tax fraud, and 5 counts of aggravated identity theft. Brown is also charged with 2 counts of filing false tax returns. If convicted, they face a maximum penalty of 20 years in federal prison for each count of wire fraud, and up to 5 years’ imprisonment for each count of filing a false tax return and the conspiracy charge, to be followed by 2 years’ imprisonment on the identity theft counts. The indictment also notifies Brown and Robertson that the United States is seeking a money judgment in the amount of $767,398, the proceeds of the charged criminal conduct.
According to the indictment, from January 2012 through June 2013, Brown and Robertson possessed and used stolen identities, including those of deceased persons, to electronically file false and fraudulent tax returns. They then directed the refunds from those fraudulent filings to debit cards, many in other people’s names. The debit cards were sent directly to Brown and Robertson, as well as to their friends and family, and to vacant addresses. Brown and Robertson spent the fraudulently obtained tax refund monies at various retail locations and also obtained cash via ATM withdrawals. In addition, Brown filed fraudulent tax returns in her name for 2011 and 2012, claiming more than $18,000 in refunds to which she was not entitled.
An indictment is merely a formal charge that a defendant has committed a violation of one or more federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Hillsborough County Sheriff’s Office and the Internal Revenue Service - Criminal Investigation. It will be prosecuted by Assistant United States Attorney Kelley C. Howard-Allen.
Georgia Resident Sentenced to Prison in Connection with Fraudulent Lottery Scheme Based in JamaicaRead the Press Release
A Douglasville, Georgia, man was sentenced after pleading guilty to his role in a Jamaican-based fraudulent lottery scheme that targeted victims in the United States, the Department of Justice announced today. This prosecution is part of the Department of Justice’s effort, working with federal, state and local law enforcement, to combat lottery fraud schemes from Jamaica preying on American citizens. According to the U.S. Postal Inspection Service (USPIS), Americans have lost tens of millions of dollars to fraudulent foreign lotteries.
Dominic Hugh Smith, 27, was sentenced by U.S. District Court Judge Robert J. Conrad Jr. of the Western District of North Carolina to serve 27 months in prison and one year of supervised release. Smith was also ordered to pay $724,408.79 in restitution. In June 2014, Smith pleaded guilty to one count of conspiracy to commit wire fraud in connection with the conduct of telemarketing. Prior to pleading guilty, Smith had been employed both as a Transportation Security Administration agent and an Atlanta Police Department police officer.
“International lottery fraud aimed at stealing from elderly victims cannot, and will not, be tolerated by the Department of Justice,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “We will seek to hold accountable those who participate in illegal lottery schemes, including those in the United States who facilitate schemes directed from abroad as well as those who operate from foreign countries.”
“As these types of financial scams continue to grow in scope and sophistication, we will utilize all resources to prosecute and deter such criminal activity,” said U.S. Attorney Jill Westmoreland Rose of the Western District of North Carolina. “Now more than ever, the public needs to be mindful of these schemes to avoid falling prey to them. Greedy criminals looking to line their pockets with money stolen from our nation’s seniors will ultimately face American justice.”
As part of his guilty plea, Smith acknowledged that had the case gone to trial, the government would have proved beyond a reasonable doubt that from December 2010 through at least April 2012, he was a member of a conspiracy in which elderly victims were informed by telephone that they had won a large amount of money and prizes in a lottery and were induced to pay bogus fees in advance of receiving their purported lottery winnings. Victims sent hundreds of thousands of dollars to Smith in the United States. Smith acknowledged that the government would have proved that he knew there was no lottery, and that he, along with his coconspirators, kept the victims’ money for their own benefit.
Principal Deputy Assistant Attorney General Mizer and U.S. Attorney Rose commended the investigative efforts of the USPIS and the Internal Revenue Service. The sentencing was handled by Trial Attorney Stephen T. Descano of the Civil Division’s Consumer Protection Branch.
Gautier Man Sentenced for Aggravated Identity TheftRead the Press Release
Gulfport, Miss – Edgardo Batiz Medina, 30, a resident of Gautier and native of Puerto Rico, was sentenced on October 22, 2015, by Chief District Judge Louis Guirola, to two years in federal prison followed by one year of supervised release for his role in the sale of fraudulent birth certificates and social security cards, U.S. Attorney Gregory K. Davis announced today.
Batiz Medina was also ordered to pay a $2,000 fine as well as restitution in the amount of $1750 to Homeland Security Investigations for money paid for fraudulent identification documents in the undercover investigation.
This case was investigated by Homeland Security Investigations. The case was prosecuted by Assistant United States Attorney Annette Williams.
GSA Official Jailed for Accepting Bribes and Stealing PropertyRead the Press Release
Assistant U.S. Attorneys Phillip L.B. Halpern (619) 546-6964 and Andrew G. Schopler (619) 546-8068
NEWS RELEASE SUMMARY – October 23, 2015
Timothy Francis Cashman, a Building Manager for the General Services Administration (“GSA”), was sentenced to 16 months in custody today for accepting bribes and stealing property owned by the United States.
At a sentencing hearing today, Judge Gonzalo P. Curiel noted that Cashman was a religious man who performed many good deeds and selfless acts throughout his life. Nevertheless, he told the packed courtroom of friends, family, and supporters who requested leniency for Cashman that it was vital the general public understood that “quid pro quo is not the status quo; quid pro quo is not acceptable.”
During the sentencing, the government demonstrated how Cashman used his position with GSA (overseeing operations and maintenance at the Otay Mesa, San Ysidro, and Tecate Ports of Entry) for his personal enrichment; rather than to fulfill GSA’s core mission of delivering “the best value in real estate, acquisition, and technology services to government and the American people.”
Over a number of years, Cashman provided favorable treatment relating to the awarding of GSA contracts. For example, he demanded $10,000 in cash and thousands of dollars’ worth of construction and renovation services on Cashman’s personal residence from government contractor Hugo Alonso Inc. (“HAI”). These services included having HAI paint Cashman’s Lakeside home and replace his roof and windows free of charge.
The former GSA building manager also demanded that HAI pay another government contractor (Company “A”) $120,000 in exchange for HAI being awarded a GSA construction contract at the Otay Mesa POE. Subsequently, Cashman accepted six checks from Company “A” totaling $42,000, which he deposited into his personal account. All of the income he received from HAI was concealed from the IRS when submitting his federal income tax returns.
In addition to accepting bribes from HAI, Cashman improperly obtained thousands of dollars in valuable United States Government building materials for his own benefit by causing GSA contractors and others to remove and transport such materials away from GSA facilities where he could sell or use them without the knowledge of GSA. Among other things, Cashman instructed government contractors: (1) in March 2011, to load approximately 25 stainless steel panels located at the San Ysidro POE into his personal Ford truck; (2) in January 2012, to load 35 heavy brass letters (spelling out “United States Border Inspection Station” and weighing approximately 2,000 pounds) into his personal truck; (3) in December 2012, to collect approximately 3,000 feet of underground copper cable belonging to the United States and to deliver it to, among other places, his personal residence; and (4) in November 2013, to set aside for his personal sale a large quantity of underground copper cable and approximately 5 aluminum panels located at the Otay Mesa POE.
United States Attorney Laura E. Duffy remarked that the Cashman case demonstrates that combatting public corruption in all its forms will remain one of her office’s highest priorities. She also thanked the Special Agents with the FBI, IRS-CI and GSA-OIG whose tireless work both uncovered this corruption and resulted in removing the corrupt official from the government fisc.
In addition to his custodial sentence, Cashman was also sentenced to three years of supervised release and ordered to pay $50,057.32 in restitution. HAI, and its principal, Hugo Alonso, previously pleaded guilty and were sentenced. In total, 11 individuals have been apprehended and pleaded guilty in related corruption investigations.
DEFENDANT Criminal Case No. 14CR3621-GPC
Timothy Francis Cashman Age: 54 Lakeside, CA
SUMMARY OF CHARGES
Count 1: 18 U.S.C. § 371 - Conspiracy to commit bribery and theft of government property
Maximum Penalty: 5 years’ imprisonment and a $250,000 fine
Count 2: 26 U.S.C. § 7206(1) - Filing False Tax Return
Maximum Penalty: 3 years’ imprisonment and a $250,000 fine
AGENCIES
Federal Bureau of Investigation
Internal Revenue Service – Criminal Investigations
General Services Administration – Office of Inspector General
Former Owner of Malden Chiropractic Practice Pleads Guilty to Federal Tax FraudRead the Press Release
BOSTON – A former owner of a Malden chiropractic practice pleaded guilty in U.S. District Court in Boston today to filing fraudulent personal federal tax returns and attempting to obstruct the IRS.
Paul E. Jondle, 61, of Salem, N.H., pleaded guilty to an indictment charging him with three counts of tax evasion and one count of obstructing the IRS. U.S. District Court Judge Nathaniel M. Gorton scheduled sentencing for Jan. 29, 2016.
Jondle operated a Malden chiropractic practice called Future Health. Jondle, who was barred from working as a chiropractor, used the names and tax identification numbers of licensed chiropractors working at Future Health for billing purposes, causing the insurance company payors to report the payments to the Internal Revenue Service as income to Jondle’s subcontractors. In fact, the payments, mailed to Jondle and deposited into bank accounts that he controlled, were income to Jondle. From 2003 through 2007, Jondle deposited approximately $3 million into his bank accounts, yet he reported no taxable income for those years, and paid no federal income taxes. During those years, Jondle spent hundreds of thousands of dollars on personal expenses including mortgage payments on his home, landscaping, tuition payments and pet spas.
The charge of tax evasion provides for a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000. The charge of obstructing the IRS provides for a sentence of no greater than three years in prison, one year of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. Assistance was provided by the Massachusetts Insurance Fraud Bureau; U.S. Postal Inspection Service; and the U.S. Social Security Administration, Office of the Inspector General. The case is being prosecuted by Assistant U.S. Attorneys Lori J. Holik and Rachel Y. Hemani of Ortiz’s Major Crimes Unit and Trial Attorney Jason M. Scheff of the Department of Justice’s Tax Division.
Former Fugitive Pleads Guilty to Embezzling $8.7 Million from EmployerRead the Press Release
CINCINNATI – James T. Hammes, 53, formerly of Lexington, Kentucky, pleaded guilty in U.S. District Court to one count of wire fraud and has agreed to pay nearly $7.7 million in restitution, specifically, approximately $6.7 million to G & J Pepsi-Cola Bottlers, Inc. and $1 million to Cincinnati Insurance Company.
Carter M. Stewart, United States Attorney for the Southern District of Ohio and Angela L Byers, Federal Bureau of Investigation (FBI) Special Agent in Charge - Cincinnati Division, announced the plea entered into today before Judge Susan J. Dlott.
According to court documents, from about 1998 through February 2009, Hammes embezzled more than $8.7 million from his employer, G & J Pepsi-Cola Bottlers, Inc., a large, privately held manufacturer and distributor of Pepsi products that is headquartered in Cincinnati.
Hammes served as a controller for the company, and was responsible for all financial accounting and internal controls for his division, including supervising accounts payable to vendors for services provided to the company’s division.
The defendant set up phantom vendor accounts and manipulated monthly accounting reports, using a miscellaneous account to charge off fraudulent checks and then manipulating legitimate accounts to offset the amounts carried in the miscellaneous account.
The stolen money that Hammes invested and traded generated IRS 1099 forms. Hammes voluntarily made estimated tax payments to the IRS totaling at least $2.7 million using the funds that he stole from his employer. Despite making the estimated tax payments, he failed to file tax returns for multiple tax years.
Hammes was questioned about the issuance of possible fraudulent checks in February 2009, at which time he fled and spent the majority of six years as a fugitive hiking the Appalachian Trail and living under an alias, which belonged to a real person. Federal criminal charges were filed against Hammes and he was arrested in Virginia in May 2015.
Hammes faces a potential maximum sentence of 20 years in prison.
U.S. Attorney Stewart commended the cooperative investigation led by the FBI Cincinnati Division, with assistance from FBI- Richmond Division, FBI- Indianapolis Division, Internal Revenue Service – Criminal Investigations, and the US Marshal’s Service, as well as Assistant United States Attorney Emily N. Glatfelter and Criminal Chief Kenneth L. Parker, who are prosecuting the case.
Former Finance Director of Alaska Inter-Tribal Council Sentenced in Federal Court for Theft of FundsRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that the former Finance Director of the Alaska Inter-Tribal Council (“AITC”), a non-profit organization which advocates in support of tribal governments throughout Alaska, was sentenced in federal court in Anchorage to five years of probation, with a requirement that he serve 120 days of community confinement, for his theft of funds belonging to the organization. Thomas R. Purcell, 52, of Anchorage, who served as the Finance Director of AITC from January 2008 until February 2009, admitted to stealing or misappropriating approximately $22,270 in AITC funds while he served in that capacity. Purcell was also ordered to pay $22,270 to AITC in restitution, and was fined an additional $15,000 by United States District Judge Sharon L. Gleason.
According to Assistant U.S. Attorney Joseph Bottini, AITC received substantial federal funding in 2008 and 2009 – including a federal grant from the United States Environmental Protection Agency of in excess of a million dollars. As the Finance Director, Purcell was responsible for managing all of AITC=s financial accounts, including account reconciliation, and payroll operations. The investigation established that Purcell was able to steal the funds through an unauthorized salary increase.
Purcell was indicted by a federal grand jury in August 2013 together with co-defendant Steven Osborne, the former Executive Director of AITC. Purcell pled guilty in April 2015 to one count of Theft from an Organization Receiving Federal Funds. Osborne also pled guilty to one count of stealing approximately $145,000 from AITC, and on October 22, 2015, he was sentenced to 21 months in prison by United States District Judge Sharon L. Gleason. Purcell, who had cooperated with the government during the investigation and subsequent prosecution, received a reduced sentence in recognition of his cooperation.
Two individuals associated with AITC addressed the court at Purcell’s sentencing and noted that as a result of the thefts committed by Osborne and Purcell, AITC became ineligible for further federal funding because the organization was considered “high risk”. Without federal funding, AITC was basically rendered a defunct organization, and it remains so today.
Ms. Loeffler commends the U.S. Environmental Protection Agency, Office of Inspector General and the Federal Bureau of Investigation for the investigation of this case.
Former Federal Employee Labor Union President Indicted in White Plains Federal Court for Stealing Union FundsRead the Press Release
Preet Bharara, United States Attorney for the Southern District of New York, Andriana Vamvakas, the New York District Director of the Department of Labor’s Office of Labor-Management Standards (“DOL-OLMS”), and Jeffrey G. Hughes, Special Agent-in-Charge of the Northeast Field Office of the U.S. Department of Veterans Affairs, Office of the Inspector General (“VA OIG”), announced the indictment of WILLIAM DAVIS, a former president of the American Federation of Government Employees (“AFGE”) Local 1119 (the “Union”), for making at least $120,000 in unauthorized debit card charges and cash withdrawals from the Local’s bank account. The Indictment charges DAVIS with one count of wire fraud and two counts of false statements in forms submitted to the DOL-OLMS. DAVIS voluntarily surrendered to federal authorities yesterday morning, and was presented yesterday afternoon in White Plains federal court before United States Magistrate Judge Lisa Margaret Smith.
According to the allegations in the Indictment[1]:
The AFGE is a national labor union that represents approximately 670,000 workers employed by the federal government across all agencies and departments. The Union is a local union chapter of AFGE that represents approximately 300 employees of the Veterans Affairs Medical Center-Montrose (the “Hospital”), and maintains offices on the Hospital’s campus in Montrose, New York. At all times relevant to the Indictment, the Union maintained a checking account (the “Union Bank Account”) for Union funds, including members’ dues payments.
From at least January 2008 through in or about October 2012, DAVIS served as the elected president of the Local. As the president, it was DAVIS’s duty to preside over the Union’s meetings and conduct the day-to-day affairs of the Union. During that time period, DAVIS used a debit card for the Union Bank Account (the “Union Debit Card”) issued to a deceased former Union officer to make hundreds of charges and cash withdrawals for non-Union expenses and without the authorization of the Union. For example, DAVIS used the Union Debit Card at stores and online retailers including Apple, Best Buy, Wal-Mart, and Radio Shack, purchasing items for his personal benefit including electronics, music downloads, video games, cellphones, men’s clothing, gasoline, and cigarettes. DAVIS purchased money orders using the Union Debit Card which totaled at least $30,000 from the United States Post Office in Montrose, New York. On several occasions, DAVIS paid for rent for his residence using the money orders he purchased with the Union Debit Card. DAVIS also used the Union Debit Card to make over 900 cash withdrawals from ATM machines in the Southern District of New York and elsewhere, in the process incurring thousands of dollars of ATM fees and fees for insufficient funds. Between January 2008 and June 2012, the unauthorized purchases and cash withdrawals that DAVIS made with the Union Debit Card totaled in excess of $120,000.
In order to conceal his misuse and theft of Union funds, DAVIS also made false statements and omissions in annual DOL-OLMS reports for the fiscal years 2008, 2009, 2010, and 2011, reporting a total of only $7,000 in allowances and disbursements to himself as president.
* * *
DAVIS, 56, of Wappingers Falls, New York, is charged with one count of wire fraud, which carries a maximum sentence of 20 years in prison, and two counts of false statements, which each carry a maximum sentence of five years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Bharara thanked and praised the DOL and the VA OIG for their work in this investigation.
This case is being handled by the Office’s White Plains Division. Assistant United States Attorney Jessica K. Feinstein is in charge of the prosecution.
The charges contained in the Indictment are merely accusations and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Former Connecticut Resident Sentenced to over Eight Years in Prison for Attempting to Send U.S. Military Technology to IranRead the Press Release
Mozaffar Khazaee, 61, formerly of Manchester, Connecticut, was sentenced today to 97 months in prison and ordered to pay a $50,000 fine by U.S. District Judge Vanessa L. Bryant of the District of Connecticut for violating the Arms Export Control Act by attempting to send to Iran highly sensitive, proprietary, trade secret and export controlled material relating to U.S. military jet engines, which he had stolen from multiple U.S. defense contractors where he had previously been employed.
Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Deirdre M. Daly of the District of Connecticut, Special Agent in Charge Matthew Etre of U.S. Immigration and Customs Enforcement-Homeland Security Investigations (ICE-HSI) Boston, Assistant Director Randall C. Coleman of the FBI’s Counterintelligence Division, Special Agent in Charge Craig W. Rupert of the Defense Criminal Investigative Service (DCIS) Northeast Field Office, Special Agent in Charge Danielle Angley of the Air Force Office of Special Investigations and Special Agent in Charge John McKenna of the Department of Commerce's Office of Export Enforcement Boston Office made the announcement.
“Mozaffar Khazaee exploited his privileged access to national security assets to steal highly sensitive military technology with the intent of providing it to Iran,” said Assistant Attorney General Carlin. “Violations of the Arms Export Control Act, particularly those involving attempts to transfer sensitive defense technology to a foreign power, are among the most significant national security threats we face, and we will continue to leverage the criminal justice system to prevent, confront, and disrupt them.”
“Mozaffar Khazaee betrayed his defense contractor employers and the national security interests of the United States by stealing and attempting to send to Iran voluminous documents containing highly sensitive U.S. defense technology,” said U.S. Attorney Daly. “U.S. companies are being relentlessly targeted by those who seek to steal our intellectual property, our trade secrets and our advanced defense technology – whether through a computer hack or cyber intrusion, or through an insider or rogue employee. As this case demonstrates, we will aggressively investigate and hold accountable those who attempt to steal trade secrets and military technology from U.S. industries, whether for their own personal gain or for the benefit of foreign actors.”
“Stopping people like Mozaffar Khazaee from providing U.S. military technology to foreign powers is crucial to our national security interests,” said Special Agent in Charge Etre. “It’s abundantly clear from court records that this individual intended to harm U.S. interests both here and abroad. HSI will continue to work with our federal law enforcement partners to ensure that advanced U.S. military technology is not stolen and illegally exported for the benefit of foreign entities.”
“Mr. Khazaee abused a position of trust and responsibility by stealing trade secrets and sensitive information belonging to defense contractors developing some of our most advanced aircraft,” said Assistant Director Coleman. “His actions could have put our national security at risk. Stopping his plan and holding him accountable for his betrayal was a whole-of-government effort. We will use all available legal means to pursue individuals willing to help our adversaries by stealing our technical know-how.”
“The evidence developed during this investigation and today’s sentencing of Mr. Khazaee illustrate the potential for harm to the U.S. through illegal exportation of sensitive documents and technology,” said Special Agent in Charge Rupert. “DCIS, along with our partner agencies, continues to prioritize and pursue these investigations to curtail any adverse impact to America's warfighters and shield America's investment in national defense.”
“This case was enabled by the outstanding teamwork amongst the many federal law enforcement agencies and U.S. Attorney’s office,” said Special Agent in Charge Angley. “Critical was the ability to leverage subject matter experts from the Air Force’s acquisition community who provided the technical assessments of the high value technology. While the conclusion of this case neutralized the threat of this particular person, it also highlights the need for continued and ever more vigilant protection of our critical technologies.”
“Today's sentencing demonstrates the ongoing cooperation between the U.S. Department of Commerce and other federal law enforcement partners working together in unison to prevent sensitive U.S. origin technology from falling into the wrong hands,” said Special Agent in Charge McKenna.
According to court documents and statements made in court, at different times between 2001 and 2013, Khazaee, a dual citizen of Iran and the United States with a Ph.D. in mechanical engineering, was employed by three separate defense contractors. From at least 2009 through late 2013, Khazaee offered to provide trade secret, proprietary and export controlled defense technology that he had stolen from his U.S. employers to gain employment with state-controlled technical universities in Iran.
Beginning in late 2009, Khazaee corresponded by email with an individual in Iran to whom he attempted to send and in some cases did send documents containing trade secret, proprietary and export controlled material relating to the Joint Strike Fighter (JSF) Program. In one email Khazaee stated that the material he had attached was “very controlled . . . and I am taking [a] big risk.” Khazaee instructed the individual in Iran, “after downloading,” he should “delete everything immediately.”
Analysis of Khazaee’s computer media also revealed cover letters and application documents, dating from 2009 through late 2013, which Khazaee sent to multiple state-controlled technical universities in Iran. In those materials, Khazaee stated that as “lead engineer” in various projects with U.S. defense contractors, he had learned “key technique[s] that could be transferred to our own industry and universities.” Khazaee stated that he wanted to “move to Iran,” that he was “looking for an opportunity to work in Iran,” and that he was interested in “transferring my skill and knowledge to my nation.”
In or about November 2013, while residing in Connecticut, Khazaee attempted to send a large shipping container to Iran. The shipment included, in numerous boxes and on computer media, thousands of highly sensitive technical manuals, specification sheets, test results, technical drawings and data and other proprietary material relating to U.S. military jet engines, including those relating to the U.S. Air Force’s F35 JSF program and the F-22 Raptor. The materials in the interdicted shipment had been stolen from U.S. defense contractors where Khazaee had worked and many documents were prominently labeled with strict export control warnings. Khazaee did not apply for nor did he obtain any license to export any of the documents and the export or attempted export of such material to Iran is illegal.
On Jan. 9, 2014, Khazaee was arrested at the Newark Liberty International Airport before boarding a flight to Iran. Search warrants executed on Khazaee’s checked and carry-on luggage revealed additional hard copy documents and computer media containing sensitive, proprietary, trade secret and export controlled documents relating to U.S. military jet engines. Khazaee was also found in the possession of $59,945.00 in as-yet undeclared cash, which he had split up into increments of approximately $5,000 and secreted in multiple bank envelopes in various places in his carry-on luggage.
The hard copy and electronic material that Khazaee stole and sought to transfer to Iran totaled some 50,000 pages and was reviewed by experts from both the U.S. Air Force and the victim defense contractors. In addition to the materials relating to the JSF Program and the F-22 Raptor, Khazaee also had documents from numerous other U.S. military engine programs, including the V-22 Osprey, the C130J Hercules and the Global Hawk engine programs. In total, Khazaee sought to export approximately 1,500 documents containing trade secrets and approximately 600 documents containing highly sensitive defense technology.
According to analyses by the U.S. Air Force and victim defense contractors, the technical data that Khazaee stole would have helped Iran “leap forward” ten years or more in academic and military turbine engine research and development, reducing their investment in such technology by one to two billion dollars and potentially enhancing the development and effectiveness of their weapon systems.
Khazaee has been detained since his arrest on Jan. 9, 2014. On Feb. 25, 2015, he pleaded guilty to one count of unlawful export and attempted export of defense articles from the U.S. in violation of the Arms Export Control Act.
This case was investigated by the ICE-HSI’ New England Division, the FBI’s New Haven Division, the Defense Criminal Investigative Service in New Haven, the U.S. Air Force’s Office of Special Investigations in Boston and the Department of Commerce’s Office of Export Enforcement in Boston.
Assistant Attorney General Carlin and U.S. Attorney Daly also commended the efforts of the many other agencies and offices that were involved in this investigation, including the U.S. Attorney’s Offices of the Central District of California, the Southern District of Indiana and the District of New Jersey; ICE-HSI in Los Angeles; the U.S. Customs and Border Protection Service (CBP) in Los Angeles; the U.S. Air Force’s Office of Special Investigations in Los Angeles; as well as ICE-HSI, CBP and FBI in New Jersey; and HSI, FBI and DCIS in Indianapolis.
This case is being prosecuted by Assistant U.S. Attorney Stephen Reynolds of the District of Connecticut and Trial Attorney Brian Fleming of the Justice Department’s Counterintelligence and Export Control Section.
Former Connecticut Resident Sentenced to 97 Months for Attempting to Send U.S. Military Technology to IranRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Assistant Attorney General for National Security John P. Carlin announced that MOZAFFAR KHAZAEE, 61, formerly of Manchester, Connecticut, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 97 months of imprisonment, followed by three years of supervised release, for attempting to send to Iran voluminous hard copy documents, computer media and electronic data containing highly sensitive, proprietary, trade secret and export controlled material relating to U.S. military jet engines, which he had stolen from multiple U.S. defense contractors where he had previously been employed. KHAZAEE also was ordered to pay a $50,000 fine.
“Mozaffar Khazaee betrayed his defense contractor employers and the national security interests of the United States by stealing and attempting to send to Iran voluminous documents containing highly sensitive U.S. defense technology,” said U.S. Attorney Daly. “U.S. companies are being relentlessly targeted by those who seek to steal our intellectual property, our trade secrets and our advanced defense technology – whether through a computer hack or cyber intrusion, or through an insider or rogue employee. As this case demonstrates, we will aggressively investigate and hold accountable those who attempt to steal trade secrets and military technology from U.S. industries, whether for their own personal gain or for the benefit of foreign actors.”
“Mozaffar Khazaee exploited his privileged access to national security assets to steal highly sensitive military technology with the intent of providing it to Iran,” said Assistant Attorney General Carlin. “Violations of the Arms Export Control Act, particularly those involving attempts to transfer sensitive defense technology to a foreign power, are among the most significant national security threats we face, and we will continue to leverage the criminal justice system to prevent, confront, and disrupt them.”
“Stopping people like Mozaffar Khazaee from providing U.S. military technology to foreign powers is crucial to our national security interests,” said Matthew Etre, Special Agent in Charge of Homeland Security Investigations (HSI) Boston. “It’s abundantly clear from court records that this individual intended to harm U.S. interests both here and abroad. HSI will continue to work with our federal law enforcement partners to ensure that advanced U.S. military technology is not stolen and illegally exported for the benefit of foreign entities.”
“Mr. Khazaee abused a position of trust and responsibility by stealing trade secrets and sensitive information belonging to defense contractors developing some of our most advanced aircraft,” said Assistant Director Randall C. Coleman of the FBI’s Counterintelligence Division. “His actions could have put our national security at risk. Stopping his plan and holding him accountable for his betrayal was a whole-of-government effort. We will use all available legal means to pursue individuals willing to help our adversaries by stealing our technical know-how.”
“The evidence developed during this investigation and today’s sentencing of Mr. Khazaee illustrate the potential for harm to the U.S. through illegal exportation of sensitive documents and technology,” said Special Agent in Charge Craig W. Rupert, Defense Criminal Investigative Service (DCIS), Northeast Field Office. “DCIS, along with our partner agencies, continues to prioritize and pursue these investigations to curtail any adverse impact to America's warfighters and shield America's investment in national defense.”
“This case was enabled by the outstanding teamwork amongst the many federal law enforcement agencies and U.S. Attorney’s office,” said Danielle Angley, Special Agent-in-Charge with the Air Force Office of Special Investigations. “Critical was the ability to leverage subject matter experts from the Air Force’s acquisition community who provided the technical assessments of the high value technology. While the conclusion of this case neutralized the threat of this particular person, it also highlights the need for continued and ever more vigilant protection of our critical technologies.”
“Today's sentencing demonstrates the ongoing cooperation between the U.S. Department of Commerce and other federal law enforcement partners working together in unison to prevent sensitive U.S. origin technology from falling into the wrong hands,” said John McKenna, Special Agent in Charge of the Department of Commerce’s Boston Office of Export Enforcement.
According to court documents and statements made in court, at different times between 2001 and 2013, KHAZAEE, a dual citizen of Iran and the United States with a Ph.D. in mechanical engineering, was employed by three separate defense contractors. From at least 2009 through late 2013, KHAZAEE offered to provide trade secret, proprietary and export controlled defense technology that he had stolen from his U.S. employers to gain employment with state-controlled technical universities in Iran.
Beginning in late 2009, KHAZAEE corresponded by email with an individual in Iran to whom he attempted to send, and in some cases did send, documents containing trade secret, proprietary and export controlled material relating to the Joint Strike Fighter Program. In one email KHAZAEE stated that the material he had attached was “very controlled . . . and I am taking [a] big risk.” KHAZAEE instructed the individual in Iran, “after downloading,” he should “delete everything immediately.”
Analysis of KHAZAEE’s computer media also revealed cover letters and application documents that KHAZAEE sent to multiple state-controlled technical universities in Iran. In those materials, KHAZAEE stated that as “lead engineer” in various projects with U.S. defense contractors, he had learned “key technique[s] that could be transferred to our own industry and universities.” KHAZAEE stated that he wanted to “move to Iran,” that he was “looking for an opportunity to work in Iran,” and that he was interested in “transferring my skill and knowledge to my nation.”
In approximately November 2013, while residing in Connecticut, KHAZAEE attempted to send a large shipping container to Iran. The shipment included, in numerous boxes and on computer media, thousands of highly sensitive technical manuals, specification sheets, test results, technical drawings and data, and other proprietary material relating to U.S. military jet engines, including those relating to the U.S. Air Force’s F35 Joint Strike Fighter (“JSF”) program and the F-22 Raptor. The materials in the interdicted shipment had been stolen from U.S. defense contractors where KHAZAEE had worked, and many documents were prominently labeled with strict export control warnings. KHAZAEE did not apply for nor did he obtain any license to export any of the documents, and the export or attempted export of such material to Iran is illegal.
On January 9, 2014, KHAZAEE was arrested at the Newark Liberty International Airport before boarding a flight to Iran. Search warrants executed on KHAZAEE’s checked and carry-on luggage revealed additional hard copy documents and computer media containing sensitive, proprietary, trade secret and export controlled documents relating to U.S. military jet engines. KHAZAEE also was found in the possession of $59,945 in as-yet undeclared cash, which he had split up into increments of approximately $5,000 and secreted in multiple bank envelopes in various places in his carry-on luggage.
The hard copy and electronic material that KHAZAEE stole and sought to transfer to Iran totaled some 50,000 pages and was reviewed by experts from both the U.S. Air Force and the victim defense contractors. In addition to the materials relating to the JSF Program and the F-22 Raptor, KHAZAEE also had documents from numerous other U.S. military engine programs, including the V-22 Osprey, the C130J Hercules and the Global Hawk engine programs. In total, KHAZAEE sought to export approximately 1,500 documents containing trade secrets and approximately 600 documents containing highly sensitive defense technology.
According to analyses by the U.S. Air Force and victim defense contractors, the technical data that KHAZAEE stole would have helped Iran “leap forward” 10 years or more in academic and military turbine engine research and development, reducing their investment in such technology by one to two billion dollars, and potentially enhancing the development and effectiveness of their weapon systems.
KHAZAEE has been detained since his arrest On January 9, 2014. On February 25, 2015, he pleaded guilty to one count of unlawful export and attempted export of defense articles from the U.S. in violation of the Arms Export Control Act.
This matter has been investigated by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in New Haven, the New Haven Division of the Federal Bureau of Investigation, the Defense Criminal Investigative Service in New Haven, the U.S. Air Force’s Office of Special Investigations in Boston, and the Department of Commerce’s Office of Export Enforcement in Boston.
U.S. Attorney Daly and Assistant Attorney General Carlin also commended the efforts of the many other agencies and offices that were involved in this investigation, including the U.S. Attorney’s Offices for the Central District of California, the Southern District of Indiana and the District of New Jersey, HSI in Los Angeles, the U.S. Customs and Border Protection Service in Los Angeles, the U.S. Air Force’s Office of Special Investigations in Los Angeles, as well as HSI, CBP, and FBI in New Jersey, and HSI, FBI and DCIS in Indianapolis.
This case was prosecuted by Assistant U.S. Attorney Stephen Reynolds of the National Security and Major Crimes Unit of the U.S. Attorney’s Office for the District of Connecticut, and Trial Attorney Brian Fleming of the Justice Department’s Counterintelligence and Export Control Section (CES).
Former Assistant Band Director Sentenced for Identity Theft Tax Fraud Scheme Involving Former Students and Other Individuals’ Personal Identifying InformationRead the Press Release
A former assistant band director was sentenced today to 61 months in prison, followed by three years of supervised release, and was ordered to pay restitution in the amount of $129,321 for his participation in an identity theft tax fraud scheme involving former Broward County students and other individuals’ personal identifying information (PII).
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Brian Swain, Special Agent in Charge, U.S. Secret Service (USSS), Miami Field Office, made the announcement.
Delvis Demaine Rogers, 27, of Hollywood, Florida, previously pled guilty to one count of possession of fifteen or more unauthorized access devices, in violation of Title 18, United States Code, Section 1029(a)(3), and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1). As part of his plea agreement, the defendant agreed to pay restitution in the amount of $129,321.
According to court documents, IRS-CI investigators noticed that 419 suspicious tax returns claiming refunds totaling $754,470 were filed from Rogers’ residential address from January 25, 2014 to April 20, 2014. Based on this information, a search warrant was executed at Rogers’ residence and agents discovered and seized papers, notes, and documents containing thousands of PII (including names, dates of birth, and social security numbers) including PII contained in records of more than a dozen Broward County School District students, some dating back to the late 1990s and others into the late 2000s. Agents also seized numerous printed 2013 tax returns.
Agents interviewed Rogers during the execution of the search warrant and he admitted to having prepared and filed hundreds of fraudulent tax returns without the permission of the people in whose names they were filed. Rogers further admitted that he electronically submitted the filings from his apartment. Rogers advised that he was employed as the band director at a school in Opa Locka, Florida, and that he previously was the assistant band director at a high school in Plantation, Florida.
Mr. Ferrer commended the investigative efforts of IRS-CI and the USSS. This case is being prosecuted by Assistant U.S. Attorneys Brooke C. Watson and Daya Nathan.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Federal Jury Convicts Dinuba Man of Bank Fraud, Possession of Stolen Mail and Aggravated Identity TheftRead the Press Release
FRESNO, Calif. — After a three–day trial, a federal jury found Shannon Lester Sorrells, 37, of Dinuba, guilty Thursday of five counts of bank fraud, one count of possession of stolen mail, and one count of aggravated identity theft, United States Attorney Benjamin B. Wagner announced. The trial was held before United States District Judge Lawrence J. O'Neill.
According to court documents, Sorrells was indicted in July 2014 and charged with theft of mail from neighborhood delivery collection boxes. He was released on his own recognizance and a trial date was set for August 4, 2015. While awaiting trial, Sorrells committed new offenses and was arrested for violating the conditions of his release. A grand jury brought a superseding indictment charging him with bank fraud, possession of stolen mail, and aggravated ID theft, all committed while Sorrells was on pretrial release.
According to evidence presented at trial, Sorrells passed numerous altered and forged checks at federally insured banking institutions in the Central Valley. In some cases, he presented altered checks using his own identity. In other cases, he used the identity of others. In February 2015, while Sorrells was on pretrial release, agents conducted a search warrant at his residence and recovered stolen mail, counterfeit checks and account information on an account he had opened using the identity of a victim.
San Francisco Division Inspector in Charge Rafael Nuñez of the U.S. Postal Inspection Service stated, “Protecting the U.S. Mail from theft and criminal misuse is a critical component of our agency's mission. We are proud to work closely with the U.S. Attorney’s Office and our law enforcement partners to fully investigate and prosecute anyone who dares to steal the mail.”
This case is the product of an investigation by the United States Postal Inspection Service, the Visalia Police Department and the Tulare County Sheriff’s Office. Assistant United States Attorneys Megan A.S. Richards and Jeffrey A. Spivak are prosecuting the case.
Sorrells is scheduled to be sentenced by Judge O'Neill on January 11, 2016. Sorrells faces a maximum statutory penalty of 40 years in prison and a $1 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Federal Indictment: Topeka Man and Associates Operated Interstate Sex Trafficking BusinessRead the Press Release
TOPEKA, KAN. - A Topeka man who was part owner of a Lawrence night club and six of his associates are charged with sex trafficking in an indictment unsealed today, U.S. Attorney Barry Grissom said.
The indictment alleges the defendants provided female commercial sex workers – including a 17-year-old girl – to clients in Kansas, Missouri, Nebraska, Iowa, Arkansas, Tennessee and Texas. The indictment alleges the defendants recruited females who needed money and a place to live from various places -- including homeless shelters -- to be commercial sex workers.
On Oct. 21, 2015, a federal grand jury returned a sealed indictment against the following defendants:
Frank Boswell, 41, Topeka, Kan., who was part owner of Club Magic in Lawrence and Magic Lawn Care in Topeka. (Club Magic is now closed.) Boswell is charged in count one (conspiracy to commit sex trafficking of a minor), count two (conspiracy to operate an interstate prostitution business), count three (sex trafficking of a minor), counts 4, 5, 6 and 7 (using a phone in furtherance of an interstate prostitution business), count 8 (transporting a person from Kansas to Nebraska for prostitution), count 9 (enticing a person to travel from Kansas to Nebraska for prostitution) and count 10 (transporting a minor from Kansas to Missouri for prostitution).
Rachel Flenniken, 33, Topeka, Kan., worked for Boswell as a commercial sex worker and also managed his business operations, including Club Magic until it closed. She is charged in count one (conspiracy to commit sex trafficking of a minor), count two (conspiracy to operate an interstate prostitution business), count three (sex trafficking of a minor), counts 4 and 5 (using a phone in furtherance of an interstate prostitution business).
Michaela Hekekia, 35, Topeka, Kan., worked for Boswell as a commercial sex worker. She recruited and trained new commercial sex workers, including at least one who was younger than 18.
Shannon Nelson, 22, Topeka, Kan., who worked for Boswell as a commercial sex worker and who filled a trusted role in Boswell’s prostitution organization. She is charged in count one (conspiracy to commit sex trafficking of a minor), count two (conspiracy to operate an interstate prostitution business), count 8 (transporting a person from Kansas to Nebraska for prostitution) and count 9 (enticing a person to travel from Kansas to Nebraska for prostitution).
Sean P. Hall, 46, Topeka, Kan., who worked for Boswell. He set up Web site advertisements and on-line reviews for commercial sex workers. He also transported sex workers to and from jobs. He In addition, he worked as a manager at Club Magic. He is charged in count one (conspiracy to commit sex trafficking of a minor), count two (conspiracy to operate an interstate prostitution business) and count three (sex trafficking of a minor).
Andre C. Rhoiney, 47, Topeka, Kan. worked as an enforcer to keep sex workers under control. He is charged in count one (conspiracy to commit sex trafficking of a minor) and count two (conspiracy to operate an interstate prostitution business).
Barry M. Johnson, 39, Topeka, Kan., recruited sex workers. He is charged in count one (conspiracy to commit sex trafficking of a minor) and count two (conspiracy to operate an interstate prostitution business).
The indictment alleges Boswell relied on the Internet to promote his sex workers and kept in touch with them via mobile phones. At times while they were out of state commercial sex workers wired their earnings back to Boswell in Kansas.
Upon conviction, the crimes charged carry the following penalties:
Count one, conspiracy to commit sex trafficking: Any term of years up to life.
Count two, conspiracy to engage in interstate prostitution: A maximum penalty of five years.
Count three, sex trafficking of a minor: Not less than 10 years.
Counts 4, 5, 6 and 7: Using a phone in furtherance of interstate prostitution: A maximum penalty of five years.
Count 8: Interstate transportation for the purpose of prostitution: A maximum penalty of 10 years.
Count 9: Enticing a person to travel interstate for prostitution: A maximum penalty of 10 years.
Count 10: Transporting a minor for prostitution: Not less than 10 years.
The Topeka Police Department, Homeland Security Investigations and the FBI investigaged. Assistant U.S. Attorney Christine Kenney and Assistant U.S. Attorney Rich Hathaway are prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Federal Government Contractor Pleads Guilty to Accepting Kickbacks and Tax EvasionRead the Press Release
An Enterprise, Alabama, resident pleaded guilty today in U.S. District Court for the Southern District of Florida to accepting unlawful kickbacks and tax evasion, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division.
According to court documents and statements made in open court, Victor Villalobos, 47, worked for a federal prime contractor at Fort Rucker in Alabama. In 2009, Villalobos approached a subcontractor for this company and solicited illegal kickbacks on the federal subcontracts the subcontractor held in connection with the federal prime contractor. Villalobos agreed that in exchange for kickback payments he would refrain from conduct that would unfavorably affect the subcontractor’s business relationship with the federal prime contractor and help ensure that the subcontractor obtained additional business.
As part of his plea, Villalobos admitted that from June 2009 to December 2014, he received approximately 57 separate wire transfers totaling more than $1.9 million in kickback payments from various foreign and domestic bank accounts controlled by the subcontractor. At two separate meetings in 2015, Villalobos met with the subcontractor and accepted an envelope containing $5,000 in cash and a bag containing $55,000 in cash as kickback payments. Between June 2009 and February 2015, Villalobos attempted to conceal his receipt of the kickbacks by incorporating nominee entities and opening nominee bank accounts. Villalobos also admitted that he attempted to evade income taxes on the kickback payments by causing false federal income tax returns to be filed.
Villalobos faces a statutory maximum sentence of 10 years in prison for accepting the kickbacks and a statutory maximum sentence of five years in prison for tax evasion. He could also be fined up to $500,000 or twice the gain from his crimes.
Acting Assistant Attorney General Ciraolo commended special agents of IRS-Criminal Investigation, the U.S. Air Force’s Office of Special Investigations and the Department of Defense’s Office of the Inspector General, who investigated this case, and Trial Attorneys Charles M. Edgar Jr. and Jason H. Poole of the Tax Division, who are prosecuting this case. Ciraolo also thanked the U.S. Attorney’s Office of the Southern District of Florida for their substantial assistance.
El Paso Man Sentenced to 20 Years in Federal Prison for Online Enticement and Production of Child PornographyRead the Press Release
In El Paso, 42–year-old Antonio Escobedo was sentenced to 20 years in federal prison for enticement of a minor to engage in sexually explicit conduct and production of child pornography announced United States Attorney Richard L. Durbin, Jr., and Federal Bureau of Investigation (FBI) Special Agent in Charge Douglas E. Lindquist, El Paso Division.
In addition to the prison term, Senior United States District Judge David Briones ordered that Escobedo placed on supervised release for a period of ten years after completing his prison term.
On July 7, 2015, Escobedo pleaded guilty to two enticement charges and two child pornography production charges. By pleading guilty, Escobedo admitted that on two separate occasions--December 5, 2103, and August 13, 2014--he produced visual depictions of a minor engaged in sexually explicit conduct. Escobedo also admitted that from December 2014 to March 2015, he used email and texting applications, including his online Kik account, in an attempt to entice or coerce two individuals, whom Escobedo believed to be minors, into engaging in sexual activity.
Escobedo has remained in federal custody since his arrest by FBI agents on March 24, 2015.
This case was investigated by the FBI and prosecuted by Assistant U.S. Attorney Rifian Newaz.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
East Alton Man Sentenced to Seven Years in Prison for Receipt of Child PornographyRead the Press Release
Shaun C. Meyer, 33, of East Alton, Illinois, was sentenced Thursday, October 22, 2015, in federal court to seven years in prison for Receipt of Child Pornography, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois announced today. Following his prison sentence, Meyer will be on federal supervised release for 5 years and will be required to register as a sex offender for the remainder of his life. Meyer was also ordered to pay $6,000 in restitution to the victims and a special assessment of $100.
Court documents establish that during an authorized undercover Internet operation, a U.S. Secret Service Task Force Officer identified a computer in the Southern District of Illinois with a certain IP address offering to participate in the distribution of child pornography through an Internet peer to peer network. Subsequently, the Task Force Officer completed a direct download of three different video files that contained child pornography from the IP address. The three video files downloaded contained depictions of prepubescent and infant female children engaged in acts of sexual penetration with adult males. The investigation further revealed that the computer was located at a certain address in East Alton, Illinois.
A federal search warrant was obtained and executed at the address in East Alton, Illinois. Meyer was present in the residence at the time the search warrant was executed. Meyer admitted to downloading and possessing child pornography.
During a forensic examination of Meyer’s computer, law enforcement agents recovered 171 video files which contained child pornography. 98 of the video files contained sexual acts involving penetration of toddler and prepubescent minors by adult males, as well as bondage or other sadistic or masochistic acts. The videos were from one minute to 53 minutes in length.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
This investigation was conducted by the U.S. Secret Service Cyber Crimes Task Force and the Greenville Police Department. The case was prosecuted by United States Attorney Stephen R. Wigginton and Assistant United States Attorney Ali Summers.
Drumlummon Mine and Operator Guilty of Safety Violations: Will Pay $36,750 in Fines and Community ServiceRead the Press Release
HELENA – Drumlummon Gold Corporation (DGC) and its operator, Seibert Smith, 74, of Helena, MT, pleaded guilty yesterday to failing to comply with a U.S. Department of Labor Mine Safety and Health Administration (MSHA) order. The charge stemmed from a superseding information filed in late September by the United States. Smith and a representative of the Corporation appeared before District Court Judge Charles Lovell in Helena to enter the guilty pleas. Judge Lovell ordered DGC to pay a $17,500 fine and a $17,500 community service payment to the State Department of Labor, Mine Safety Bureau. Smith must pay a $1,750 fine.
The sentences were a result of a plea agreement entered into by the United States and the defendants. Had the case proceeded to trial, the United States was prepared to prove that DGC, the operator of an underground gold mine at Marysville, Montana, operated in such a way and produced products that affected interstate commerce from 2011 to 2013. During this period, Smith was a manager or agent of DGC and served as the mine’s safety supervisor. The maximum penalty for failure to comply with an MSHA order is one year imprisonment and $250,000 in fines for individuals, and $250,000 in fines for an organization.
Acting on an anonymous complaint about an unreported accident at the mine involving a utility vehicle, MSHA sent an inspector to investigate and interview the mine superintendent alleged to be responsible for the accident. Smith was initially unable to supply the superintendent’s training records but subsequently provided records indicating that the superintendent had been trained on the utility vehicle in September of 2011. Upon further inspection, the MSHA inspector noted that the records appeared to have been falsified. MSHA determined that the equipment-specific training allegedly provided to the Superintendent could not have occurred in 2011 as indicated by the training records, because the utility vehicle did not arrive on mine property until March of 2012. The United States was prepared to demonstrate that Smith was aware of the fact that the superintendent could not have received the training on the date indicated in the training record he provided to MSHA.
Smith and DGC were originally indicted in May 2015 on two counts of false statements and falsification of mine records. Smith and DGC ultimately pleaded guilty to the superseding information filed by the United States on September 28th, alleging failure to comply with an MSHA order. In briefing provided to the court, the United States supported a sentence requiring payment of community service to the State Department of Labor and Industry Mine Safety Bureau. That agency administers grants for mine safety training. The community service payment by DGC will provide safety training to Montana miners required by both state and federal law.
“This is the first criminal case prosecuted under the Mine Safety and Health Act in Montana” said U.S. Attorney Mike Cotter. “The decision to pursue criminal sanctions is symbolic of the United States’ commitment to stringently protect the safety of workers in this industry.” MSHA Assistant Secretary Joseph A. Main stated: "Mine operators are responsible for training their miners so that they can work safely in the mining environment, and when they don’t, they will be held accountable. It’s an investment that will help ensure these men and women return home to their families after every shift."
The case was investigated by the U.S. Department of Labor Mine Safety and Health Administration and was prosecuted by Assistant U.S. Attorney Kris McLean.
Defendant Sentenced to 12 Months in Prison for Credit Card FraudRead the Press Release
BOISE - Carlos Javier Miranda-Molina, 23, of Sonora, Mexico, was sentenced today in United States District Court to 12 months in prison followed by one year of supervised release, U.S. Attorney Wendy J. Olson announced. Visiting U.S. District Judge Dee V. Benson also ordered Miranda-Molina to pay restitution in the amount of $13,301.64. Miranda-Molina pleaded guilty to one count each of wire fraud and possession of fifteen or more unauthorized access devices on August 4, 2015.
According to the plea agreement, Miranda-Molina admitted that in March of 2015, he and two co-defendants traveled together from Mexico, through Montana, to Idaho in a vehicle rented in Sonora, Mexico, for the purpose of using counterfeit credit cards to make fraudulent purchases of merchandise and gift cards. In Montana, each defendant engaged in a number of transactions, using credit cards that the defendants knew to be counterfeit, at stores such as Auto Zone, TJ Maxx, Home Depot, Ulta, and others. The defendants jointly and fraudulently obtained merchandise valued at approximately $8,184.01. In Boise, the defendants again engaged in a number of transactions, using credit cards the defendants knew to be counterfeit, at stores such as Lowe’s, Sports Authority, Barnes and Noble, Nordstrom Rack, JC Penney, and others. The defendants fraudulently obtained merchandise valued at approximately $5,117.63. The defendants were arrested in possession of approximately 84 counterfeit credit cards embossed with their names, but encoded with victims’ credit card numbers, as well as merchandise purchased with the counterfeit credit cards, including GoPro Hero 4 Cameras, Samsung Galaxy Nooks, and video game systems.
The case was investigated by the United States Secret Service and the Boise Police Department.
Danbury Man Charged with MurderRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that a federal grand jury sitting in Bridgeport has returned a three-count indictment charging ALEX GARCIA, 37, of Danbury, with murder, assault and a firearms offense related to the January 17, 2000 murder of Mark Rebong in Danbury.
The indictment was returned on October 22, 2015. GARCIA is in custody serving an unrelated state sentence.
On January 17, 2000, at approximately 11:02 p.m.., Mark Rebong was discovered in the driver’s seat of an idling vehicle in the vicinity of Exit 2 off of I-84 in Danbury. Mr. Rebong had had been shot once in the head and died as a result of his injuries.
The indictment alleges that, on January 17, 2000, GARCIA, who was then a member of the Almighty Latin King and Queen Nation (“Latin Kings”), murdered Mr. Rebong in order to maintain or increase his position in the Latin Kings and for pecuniary gain.
“In a tragic case of mistaken identity, Mark Rebong, who was neither a member of a gang nor engaged in any criminal activity, was shot and killed as he drove to work,” said U.S. Attorney Daly. “I want to commend the dedicated law enforcement investigators for their relentless search for those responsible for this senseless murder. Although over 15 years have passed, the law enforcement team never forgot Mark. We hope that this indictment brings his family some small measure of solace.”
The indictment charges GARCIA with the murder in aid of racketeering of Mark Rebong. If convicted of this offense, GARCIA faces either a mandatory lifetime term of imprisonment or the death penalty, should the government seek the death penalty in this matter.
The indictment also charges GARCIA with assault resulting in serious bodily injury in aid of racketeering of Mark Rebong. If convicted of this offense, GARCIA faces a maximum term of imprisonment of 20 years.
Finally, the indictment charges GARCIA with use of a firearm during and in relation to a crime of violence resulting in Mark Rebong’s death. If convicted of this offense, GARCIA faces either a mandatory lifetime term of imprisonment or the death penalty, should the government seek the death penalty in this matter.
This matter is being investigated by Drug Enforcement Administration New Haven District Office, the Danbury Police Department and the Connecticut State Police Western District Major Crime Squad, with assistance from the Connecticut Department of Correction and the Danbury State’s Attorney’s Office. The case is being prosecuted by Assistant U.S. Attorney Tracy Lee Dayton.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
Court of Appeals Upholds 210-Year Sentence for Child-Sex OffenderRead the Press Release
Orlando, FL - United States Attorney A. Lee Bentley III announces that the United States Court of Appeals for the Eleventh Circuit today upheld a 210-year sentence of imprisonment for Matthew Graziotti—a former elementary-school teacher, summer-camp director, and youth pastor—for producing, distributing, and possessing child pornography.
According to court documents, Graziotti had distributed images and videos depicting the sexual abuse and exploitation of children to an undercover FBI agent. During the execution of a search warrant, agents had located an enormous collection of photographs and videos showing the rape and exploitation of thousands of children. One computer folder, titled, “personally known,” had contained sexually explicit photographs and videos of 29 children whom Graziotti personally had sexually abused when they were under the age of 12 and had been entrusted to him in his various positions of authority. Graziotti had stored those sexually explicit photographs and videos in subfolders bearing each child-victim’s name. He had produced these images from 2010 through 2014.
Graziotti argued that his 210-year sentence is unreasonable because it is several times greater than his remaining life expectancy and therefore is, by definition, greater than necessary to serve any legitimate sentencing purpose. The Court of Appeals stated that the sentence is not unreasonable simply because it is physically impossible for Graziotti to serve it, observing that child-sex offenses are among the most “egregious and despicable of societal and criminal offenses.”
This case was investigated by the Federal Bureau of Investigation and prosecuted in the district court by Assistant United States Attorney Karen L. Gable. The appeal was handled by Assistant United States Attorney Susan H. Rothstein-Youakim and Assistant United States Attorney Linda Julin McNamara, Deputy Chief of the Appellate Division.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals, who sexually exploit children, and to identify and rescue victims.
For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Coral Springs Resident Sentenced for Stealing Government MoneyRead the Press Release
A Coral Springs resident was sentenced to 18 months in prison, followed by two years of supervised release for stealing government money.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Tony Pustizzi, Chief, Coral Springs Police Department, made the announcement.
Lenord Williams, 28, previously pled guilty to one count of theft of government money, in violation of Title 18, United States Code, Section 641.
According to court documents, on August 25, 2012, probation officers conducted a planned compliance search of Williams’ residence and discovered eight United States Treasury checks, worth $41,638.40, in Williams’ nightstand in other individuals’ names. Seven of the checks were payments of tax refunds, and the other check was a monthly Social Security payment. The defendant admitted that he has someone cash the unauthorized checks for him.
Mr. Ferrer commended the investigative efforts of IRS-CI and the Coral Springs Police Department. This case is being prosecuted by Assistant U.S. Attorney Jared M. Strauss.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Convicted Felon Sentenced to Almost 17 Years in Prison for Illegal Possession of FirearmsRead the Press Release
CHARLOTTE, N.C. – A Charlotte gang member of the United Blood Nation, also known as “UBN” or “the Bloods,” was sentenced in federal court today for illegally possessing and selling stolen firearms, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Robert J. Conrad ordered Dominic Xavier McDonald a/k/a “Bombay,” 28, to serve 188 months in prison, followed by five years of supervised release. McDonald committed this offense while on supervised release for a previous federal gun conviction. McDonald received fifteen months imprisonment to run consecutively for his supervised release violations for a total of 203 months imprisonment.
U.S. Attorney Rose is joined in making today’s announcement by C.J. Hyman, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, and Chief Kerr Putney of the Charlotte Mecklenburg Police Department (CMPD).
“Convicted felons who possess firearms pose a great threat to the community,” said U.S. Attorney Rose. “McDonald stole and sold firearms while he was still under court supervision for previous gun crimes. With today’s outcome, we’ve put an end McDonald’s continued disregard for the law and removed this brazen criminal from the community.”
“ATF is committed to keeping our communities safe by reducing firearms and violent crimes. This case is another example of how ATF actively investigates and apprehends individuals who acquire firearms through burglaries and subsequently sell them to criminals in the Charlotte Metro area. Today’s result could not have occurred without the outstanding partnership between ATF and the Charlotte Mecklenburg Police Department,” stated ATF Special Agent in Charge Hyman.
In December 2014, a criminal indictment charged McDonald with four counts of possession of a firearm by a convicted felon. According to filed documents and statements made in court, between October 15, 2014 and October 28, 2014, McDonald illegally obtained six firearms, which he then sold to other individuals. According to court records, the firearms included two pistols, two rifles, and two revolvers, one of which McDonald bragged about taking from the home of a Charlotte-Mecklenburg police officer. The two rifles McDonald sold were among several stolen from a residence McDonald and his conspirators burglarized during the relevant time period. McDonald pleaded guilty to the charges in March 2015.
McDonald has been in custody since January 2015. He will be transferred to the custody of the Federal Bureau of Prisons upon the designation of a federal facility. All federal sentences are served without the possibility of parole.
The investigation was handled by the ATF and CMPD. The case was prosecuted by Assistant United States Attorney Jennifer L. Dillon of the U.S. Attorney’s Office in Charlotte.
Chicago Man Sentenced to More Than 17 Years in Prison for Plotting to Kill Two Potential Witnesses in His Son's Murder TrialRead the Press Release
CHICAGO — A Chicago father who offered to hire a hit man to execute two potential witnesses in his son’s murder trial was sentenced today to 17 and a half years in federal prison.
EURIPIDES CAGUANA, 61, sought the killings of two men he believed would testify against his son in his upcoming murder trial. Caguana paid $500 to an undercover individual to purchase a gun, and he offered the individual up to $7,500 to have the two witnesses killed.
A jury in May convicted Caguana on four counts of murder for hire. U.S. District Judge Thomas M. Durkin imposed the 210-month sentence in federal court in Chicago.
“The defendant’s conduct strikes at the heart of the criminal justice system,” Assistant U.S. Attorney Peter S. Salib argued in the government’s sentencing memorandum. “Without witnesses, criminal cases can never be judged on the merits of the evidence.”
Caguana’s son, Travis Caguana, is charged with murder in the Circuit Court of Cook County in connection with a fatal drive-by shooting of a man on June 8, 2011. In October 2013, a cooperating individual notified law enforcement that Euripides Caguana had called him seeking to have two men killed to prevent them from testifying against Travis Caguana. Over the course of a few days, the cooperating individual and an undercover police officer – posing as a hit man – engaged in a series of secretly recorded meetings and conversations with Euripides Caguana.
During one of the meetings, Euripides Caguana provided the cooperating individual with $500 to purchase a gun, and he offered to pay up to $7,500 to have the two potential witnesses killed. He is heard on a recording telling the individual, “I want both of them, both of them.”
Caguana was arrested on Oct. 17, 2013, and the murders for hire were never carried out.
A trial date in the state murder case against Travis Caguana has not yet been set.
The sentence was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Michael J. Anderson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; and Chicago Police Superintendent Garry F. McCarthy.
The government is represented by Mr. Salib and Assistant U.S. Attorney Derek Owens.
Cherry Hill Drug Dealer Sentenced to 10 Years in PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell III sentenced Ernest Thomas, a/k/a “EJ,” age 27, of Baltimore, Maryland, today to 10 years in prison, followed by five years of supervised release, for conspiracy to distribute and possess with intent to distribute heroin and cocaine, in connection with his membership in a group known as “Coppin Court” which operated in the Cherry Hill section of Baltimore.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Commissioner Kevin Davis of the Baltimore Police Department; and Baltimore City State’s Attorney Marilyn J. Mosby.
According to his plea agreement, Thomas is a long-time drug distributor who has distributed heroin and crack cocaine with members of the Coppin Court group in the down the hill section of Cherry Hill. Thomas obtained some of his narcotics from fellow Coppin Court member including one of the main narcotics suppliers, Nathaniel Lightford.
For example, on December 5, 2012, Thomas was observed on CCTV running in the down the hill section of Cherry Hill. Thomas ran down to an area near the playground, removed a plastic bag from the ground, took out small objects, and handed them to an individual who was subsequently stopped by police. The police told the individual that he had just been observed buying drugs, and the individual removed a gel cap of heroin from his jacket. Similar events took place with a second drug purchaser, who possessed two gel caps of suspected heroin.
During his participation in the drug conspiracy Thomas admitted to distributing between three and 10 kilograms of heroin, and between 840 grams and 2.8 kilograms of crack cocaine.
Nathaniel Lightford, a/k/a “Taboo,” age 35, of Windsor Mill, Maryland; Robert Sanders, a/k/a “Man,” age 28, and Danna Fraser, age 26, a/k/a “Stroke,” both of Baltimore, previously pleaded guilty to their roles in the conspiracy and were sentenced to 135 months in prison, 132 months in prison, and 70 months in prison, respectively.
United States Attorney Rod J. Rosenstein praised the ATF, Baltimore Police Department, and Baltimore City State’s Attorney’s Office for their work in the investigation and thanked the FBI, Baltimore County Police Department, Anne Arundel County Police Department and Baltimore City Sheriff’s Office for their assistance. Mr. Rosenstein thanked Assistant United States Attorneys Andrea L. Smith, Seema Mittal and Patricia McLane, who prosecuted this Organized Crime Drug Enforcement Task Force case.
California Man Sentenced to 110 Months in Prison for Drug ChargeRead the Press Release
BOISE – Kenny P. Breedlove, 35, of Porterville, California, was sentenced yesterday to 110 months for possession of methamphetamine with intent to distribute, U.S. Attorney Wendy J. Olson announced. Visiting U.S. District Judge Dee V. Benson also ordered Breedlove to serve four years of supervised release following his release from prison. Breedlove pleaded guilty to the charge on May 12, 2015.
According to the plea agreement, Nampa police officers stopped a vehicle driven by Breedlove on October 6, 2014. The officer saw that Breedlove was wearing a shoulder holster for a firearm, but there was no firearm in the holster. Breedlove acknowledged the vehicle belonged to him and denied there was a firearm in the vehicle. A police drug-detection dog alerted to the odor of illegal drugs in the vehicle. During a search of the vehicle, officers located a loaded 9 millimeter Taurus pistol, 337 grams of methamphetamine, and a digital scale. Breedlove admitted that he possessed the pistol in connection with the drug offense.
Breedlove’s case is part of a larger long-term investigation by the Treasure Valley Metro Violent Crimes Task Force. The investigation focused on the “Norteno” Northside gang, which is active in Nampa and other parts of the Treasure Valley. Fourteen individuals were indicted on drug and gun charges as a result of the investigation. To date, eight defendants have been sentenced. In addition to Breedlove, Michael David Bradshaw, 31, of Nampa, was sentenced on August 6, 2015, to 66 months in prison for distributing methamphetamine. Guadalupe Serrano, 35, of Caldwell, was sentenced on April 21, 2015, to 75 months in prison for possession of methamphetamine with intent to distribute and for possessing firearms in furtherance of the drug trafficking crime. Nicole Danelle Nieto, 31, of Nampa, was sentenced on May 26, 2015, to 41 months in prison for distributing methamphetamine. Jose Manuel Menchaca, 35, of Nampa, was sentenced May 28, 2015, to 60 months in prison for distributing methamphetamine. On June 17, 2015, Brandi Larrea, 31, of Nampa, was sentenced to 48 months in prison for distributing methamphetamine and Tara Noelle Rivera, 30, of Nampa, was sentenced to 24 months in prison for distributing methamphetamine. Johnny Lee Martinez, 33, of Nampa, was sentenced on July 20, 2015, to 57 months in prison for distributing methamphetamine. Guillermo Farias Jr., 29, of Nampa, is scheduled to be sentenced on October 26, 2015 and Richard Lobato, 51, of Nampa, is scheduled to be sentenced on November 19, 2015. Two others are scheduled for trial including Jose Enrique Olvera Jr., 51, of Nampa, and Isaac Bright, 21, of Caldwell. Two defendants have outstanding warrants, including Ruben Rodriguez, 36, and Veronica Cantu, 26, both of Nampa.
This case and the other related cases are the result of a joint investigation by theTreasure Valley Metro Violent Crime Task Force and the Organized Crime and Drug Enforcement Task Force (OCDETF). The Treasure Valley Metro Violent Crime Task Force is comprised of federal, state and local agencies, including the Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; Boise Police Department; Ada County Sheriff’s Office; Caldwell Police Department; Nampa Police Department; Meridian Police Department; Canyon County Sheriff’s Office; and Idaho Department of Probation and Parole. The Organized Crime and Drug Enforcement Task Force (OCDETF), includes the cooperative law enforcement efforts of the Federal Bureau of Investigation; Drug Enforcement Administration; Bureau of Alcohol, Tobacco, Firearms and Explosives; U. S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Internal Revenue Service-Criminal Investigation; and U.S. Marshals Service. The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
The case was prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
CEO of Chicago Healthcare Company Pleads Guilty to Fraudulently Billing Medicare in $1.8 Million SchemeRead the Press Release
CHICAGO — The chief executive of Chicago-based Mobile Doctors pleaded guilty today to charges that he fraudulently increased Medicare bills for in-home treatment that was shorter and less complicated than the claims indicated.
DIKE AJIRI, 44, of Wilmette, admitted in a plea agreement that he personally altered patient files so that the now-defunct company could fraudulently bill several patient visits to Medicare at the highest possible level. The improper billing – known as “upcoding” – defrauded Medicare and the Railroad Retirement Board of approximately $1,854,000, according to the plea agreement.
Ajiri pleaded guilty to one count of health care fraud. He faces a maximum sentence of ten years in prison when U.S. District Judge John J. Tharp Jr. sentences him on April 19, 2016, at 2:00 p.m.
Mobile Doctors, which closed in 2013 after Ajiri was arrested, had been located at 3319 N. Elston Ave., in Chicago. The company contracted with physicians to arrange in-home visits for patients in Illinois, Michigan, Indiana and other states. For an in-home visit with an established patient to be billed properly at the highest level, the visit must involve at least two of the following components as defined by the American Medical Association: a comprehensive interval history, a comprehensive examination, and/or medical decision-making process of moderate to high complexity. According to the AMA, such a visit usually involves problems of moderate to high severity, with the physician typically spending 60 minutes face-to-face with the patient and/or the patient’s family.
According to the plea agreement, Ajiri personally altered Mobile Doctors’ billing forms – and instructed Mobile Doctors’ personnel to do the same – so that many of the in-home visits were fraudulently billed to Medicare and the Railroad Retirement Board at the highest level. Ajiri knew that these visits did not qualify for the maximum payment, and that it was unlawful for him to submit the false claims.
The investigation was carried out by the Medicare Fraud Strike Force, which consists of agents from the Federal Bureau of Investigation and the U.S. Department of Health and Human Services, and prosecutors from the U.S. Attorney’s Office and the Justice Department’s Fraud Section. The strike force is part of the Health Care Fraud Prevention & Enforcement Action Team (HEAT), a joint initiative between the Department of Justice and HHS to prevent fraud and to enforce anti-fraud laws around the country.
The investigation also resulted in charges against BANIO KOROMA, a Mobile Doctors physician. The indictment against Koroma charges that he falsely certified patients as confined to their homes when they were not actually home-bound and did not require specialized care. Koroma, of Tinley Park, is scheduled to proceed to trial on Dec. 7, 2015, before Judge Tharp.
Ajiri’s guilty plea was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Michael J. Anderson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; and Lamont Pugh III, Special Agent-in-Charge of the Chicago Region of the U.S. Department of Health and Human Services Office of Inspector General. The Railroad Retirement Board Office of Inspector General is also participating in the case.
The government is represented by Assistant United States Attorneys Stephen Chahn Lee and Eric Pruitt.
To report health care fraud or to learn more about the Health Care Fraud Prevention & Enforcement Action Team (HEAT), logon to: StopMedicareFraud.gov.
Plea Agreement
22 October 2015
Women’s Equality Day CelebratedRead the Press Release
ALICIA A.G. LIMTIACO, U.S. Attorney for the Districts of Guam and the Northern Mariana Islands (NMI), was invited to speak at the Women’s Equality Day 2015 event coordinated by the U.S. Citizenship and Immigration Services, Guam Field Office and held on August 26, 2015, at the Guam Field Office in Tiyan. The theme of the event was “95th Anniversary of Women Winning the Vote,” which acknowledged and celebrated the 1920 passage of the 19th Amendment of the Constitution, granting women the right to vote, as well as women’s continuing efforts toward full equality.
In his proclamation for Women’s Equality Day, President Barack Obama stated, “Women’s equality is a core civil and human rights principle in the United States and around the world. Across America, women are contributing to our economy and our Nation in innovative and exciting ways. From businesses to battlefields, women are vital to the prosperity and security of our country. As we celebrate the last 95 years of progress in advancing women’s rights, let us rededicate ourselves to the idea that our Nation is not yet complete: there is still work to do to secure the blessings of our country for every American daughter.”
U.S. Attorney Limtiaco shared information on the Pacific Regional Response to Combat Human Trafficking Initiative (the “Initiative”), which is a collaborative effort among the U.S. Attorney’s Office for the Districts of Guam and the NMI; the U.S. Department of State Office’s Office to Monitor and Combat Trafficking in Persons; the U.S. Department of the Interior, Office of Insular Affairs; the U.S. Department of Labor; the Guam Human Trafficking Task Force; the NMI Human Trafficking Intervention Coalition; and other community partners. U.S. Attorney Limtiaco also discussed the intersection and relationship between human trafficking, sexual assault, child abuse and domestic and family violence, and prevention and enforcement efforts in the Pacific region.
The Initiative employs a multi-disciplinary model, including participation, coordination, and collaboration among law enforcement, prosecution, victim service providers, social services, medical, mental and public health professionals, faith based organizations, educational institutions, Consulates, and other community stakeholders. The Initiative calls for the establishment and provision of victim services, investigation and prosecution of human trafficking, community outreach/public awareness and prevention programs, and the creation of human trafficking task forces and coalitions in the Pacific region island communities. The Initiatives also provides fundamental training in human trafficking, including victimization, investigation and prosecution, prevention efforts, and other related topics to government and community partners in our Pacific region island communities, which is critical to effective prevention and enforcement efforts in the region.
U.S. Attorney Alicia Limtiaco addressing the attendees at the
Women’s Equality Day Event
Field Office Director Stephen P. Green presenting a certification of appreciation to U.S. Attorney Alicia Limtiaco.
Williamsport Man Indicted for Firearms ViolationRead the Press Release
WILLIAMSPORT - The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Williamsport man was indicted today by a federal grand jury for the prohibited possession of a firearm.
According to United States Attorney Peter Smith, the grand jury alleges that Robert Cormier, age 32, possessed a semiautomatic handgun near 500 Fifth Avenue in Williamsport in February 2015. Police were called to the area based on reports of a shooting. Later police determined that Cormier was prohibited under Federal law from possessing a firearm based on his alleged criminal history. Cormier faces a single count of Possession of a Firearm by a Felon.
The charges stem from an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Williamsport Bureau of Police, and the Lycoming County District Attorney’s Office. The case is being prosecuted by Assistant U.S. Attorney Geoffrey MacArthur.
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 from 10 years up to life imprisonment, a term of 3 years supervised release following imprisonment, and a $250,000 dollar 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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U.S. Attorney John Walsh Participates in Panel Discussion with President Obama Regarding Criminal Justice ReformRead the Press Release
DENVER – Following on the heels of the announcement of the foundation of Law Enforcement Leaders to Reduce Crime and Incarceration, U.S. Attorney John Walsh, District of Colorado, today participated in a panel discussion at the White House with President Barack Obama and Los Angeles Police Chief Charles Beck regarding Criminal Justice Reform. The panel discussion was moderated by Bill Keller, editor-in-chief of the Marshall Project.
Walsh said, “Today I had the honor of discussing potential common sense reforms of our criminal justice system with President Obama and Los Angeles Police Chief Charles Beck. I participated as a representative of the prosecution component of our justice system – those who make criminal charging decisions on a daily basis which determine what potential prison sentences defendants will face. I look forward to continuing to work with the President, the Attorney General, and those involved in Criminal Justice Reform to ensure that the recommendations recently released by a thorough reform committee continue to be refined and get implemented as appropriate.”
President Barack Obama joins, left to right, Bill Keller, Editor-in-Chief of The Marshall Project, Los Angeles Police Chief Charlie Beck and U.S. Attorney John Walsh, Colo., for a panel discussion on criminal justice reform with law enforcement leaders in the South Court Auditorium of the White House, Oct. 22, 2015. (Official White House Photo by Lawrence Jackson)
To view the panel discussion go to: https://www.themarshallproject.org/2015/10/22/watch-president-obama-and-the-marshall-project-in-a-conversation-today-about-criminal-justice?ref=hp-1-100
U.S. Attorney General Honors Detroit Legal Assistant at Awards CeremonyRead the Press Release
A legal assistant at the U.S. Attorney's Office in Detroit was among 279 employees recognized by Attorney General Loretta E. Lynch today for their distinguished public service at the 63nd Annual Attorney General’s Awards Ceremony. Thirty-three other individuals outside of the department were also honored for their work. This annual ceremony recognizes individuals for their outstanding service and dedication to carrying out the missions of the Department of Justice. The department also presented one posthumous award in honor of Deputy U.S. Marshal Josie Wells for his exceptional heroism in the line of duty. Among the employees recognized this year was Beryl A. Robbins, Senior Legal Assistant Coordinator for the U.S. Attorney’s Office of the Eastern District of Michigan. Robbins was presented with the Award for Excellence in Legal Support. Robbins, a 30-year veteran of the Eastern District of Michigan, is responsible for creating, updating and maintaining all forms used by the office in criminal case filings and training all legal assistants about proper case filing practices. She also serves as office liaison to the Clerk of the U.S. District Court. “The individuals being honored today stand out within a department that holds all of its employees and partners to an extremely high standard of excellence,” said Attorney General Lynch. “They have put in long hours, made immense sacrifices and, in some cases, placed themselves in harm’s way. They have taken on issues that once seemed intractable, and made progress on problems that once seemed impossible. And their outstanding work is an inspiration to public servants everywhere.” "Beryl Robbins represents the very best in public service," McQuade said. "She works diligently on behalf of the people of the Eastern District of Michigan, and is constantly striving to find ways to improve the work of our office."Two Psychologists Charged in $25.2 Million Fraud Scheme Involving Psychological Testing in Gulf Coast StatesRead the Press Release
Two clinical psychologists were charged today with participating in a $25 million Medicare fraud scheme involving psychological testing in nursing homes in Gulf Coast states.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Kenneth A. Polite of the Eastern District of Louisiana, Special Agent in Charge Michael J. Anderson of the FBI’s New Orleans Field Office and Special Agent in Charge C.J. Porter of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Dallas Regional Office made the announcement.
Beverly Stubblefield, Ph.D., 62, of Slidell, Louisiana, and John Teal, Ph.D., 46, of Jackson, Mississippi, were charged by a superseding indictment with conspiracy to commit health care fraud and conspiracy to make false statements related to health care matters. Two other defendants, Rodney Hesson, Psy.D., 46, and Gertrude Parker, 62, both of Slidell, were charged in the initial indictment returned in June 2015 in connection with a large-scale Medicare Fraud takedown, and were also charged in today’s superseding indictment.
According to the superseding indictment, Hesson and Parker owned and controlled Nursing Home Psychological Service (NHPS) and Psychological Care Services (PCS), each of which operated in Louisiana, Mississippi, Florida and Alabama. The superseding indictment alleges that NHPS and PCS contracted with nursing homes in these states to allow NHPS and PCS clinical psychologists, including Stubblefield, Teal and Hesson, to administer to nursing home residents psychological tests and related services that were not necessary and, in some instances, never provided.
According to the superseding indictment, between 2009 and 2015, NHPS and PCS submitted more than $25.2 million in claims to Medicare. Medicare paid approximately $17 million on those claims.
The charges and allegations contained in an indictment are merely accusations. The defendants are presumed innocent unless and until proven guilty.
The case is being investigated by the FBI and HHS-OIG, and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office of the Eastern District of Louisiana. The case is being prosecuted by Trial Attorneys William Kanellis and Antonio Pozos of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Patrice Harris Sullivan of the Eastern District of Louisiana.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged over 2,300 defendants who collectively have billed the Medicare program for over $7 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Two Miami Residents Sentenced in Social Security Fraud Scheme Involving Stolen IdentitiesRead the Press Release
Two Miami-Dade County residents were sentenced to prison yesterday, for their involvement in a social security fraud scheme.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida and Margaret Moore-Jackson, Special Agent in Charge, Social Security Administration, Office of Inspector General (SSA-OIG), made the announcement.
Jeffrey Joseph, 26, and Rosetta Latricia Tooks, 25, both of Miami, were sentenced to 65 months and 42 months in prison, respectively, for their participation in a scheme to defraud the Social Security Administration. Upon completion of their period of incarceration, the defendants will be on supervised release for two years. Joseph and Tooks previously pled guilty to access device fraud, in violation of Title 18, United States Code, Section 1029 and aggravated identity theft, in violation of Title 18, United States Code, Section 1028A.
According to court documents, Joseph and Tooks used stolen identities to file fraudulent Social Security Retirement Income Benefit (RIB) claims. The illicit scheme resulted in the payment of $81,124.90 in fraudulent RIB claims.
Mr. Ferrer commended the investigative efforts of SSA-OIG. The case is being prosecuted by Assistant U.S. Attorneys Timothy Abraham and Frank Maderal.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Two Men Plead Guilty to Health Care Fraud SchemeRead the Press Release
WASHINGTON – Russell J. Sveda, 69, and Richard V. Schachter, 56, most recently of Alexandria, Va., and Lauderdale by the Sea, Fla., pled guilty today to charges of health care fraud stemming from a scheme to submit false claims for non-existent medical reimbursements through the U.S. Office of Personnel Management’s Foreign Service Benefit Plan.
The guilty pleas were announced by U.S. Attorney Channing D. Phillips, Patrick E. McFarland, Inspector General for the Office of Personnel Management (OPM), Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office, and Inspector in Charge David G. Bowers of the U.S. Postal Inspection Service’s (USPIS) Washington, D.C., Division.
Sveda and Schachter, who were indicted in July 2015, pled guilty in the U.S. District Court for the District of Columbia. They are to be sentenced on Jan. 20, 2016, by the Honorable Senior Judge Thomas F. Hogan. Under the advisory sentencing guidelines, they face a possible sentence of 18 to 24 months. They also agreed to pay $257,000 in restitution and to forfeit an identical amount in a money judgment.
According to a statement of offense signed by the government as well as both defendants, Sveda is a former U.S. State Department employee, now retired. He is entitled to participate in the Federal Employee Health Benefit Program, the federally-funded health benefit program provided by the U.S. government for federal employees, retirees, and their eligible spouses and dependents. State Department Foreign Service employees and retirees, like Sveda, and federal employees living overseas, have the option of choosing the Foreign Service Benefit Plan of Washington, D.C., as their health insurance plan. Participants of this plan, like Sveda, pay for medical services and medications up front and then submit claims via facsimile or mail and are reimbursed by a check sent through the U.S. Postal Service or a payment electronically transferred into their bank account.
Schachter is Sveda’s spouse and has acted on behalf of Sveda in demanding payments for medical insurance claims. Between February 2007 and October 2010, Sveda and Schachter submitted to the insurance carrier for Foreign Service Benefit Plan claims for pharmaceutical items and services purportedly obtained from a German pharmacy, Stadt-Apotheke Fussen, located in Fussen, Germany. Similarly, from May 2007 through October 2012, Sveda and Schachter submitted claims for medical services Sveda allegedly obtained from various German doctors, clinics, and hospitals. Sveda’s claims used the names and addresses of various doctors, clinics, hospitals, and pharmacies, and other health care service providers, located in Germany.
Since at least 2007, Sveda and Schachter have engaged in extensive foreign travel and extended stays at spas. Government travel records — such as passport stamps and the U.S. government’s records of border crossings — as well as documents obtained from airlines, ocean line operators, credit and debit card payments, and a major spa company, establish that Sveda was traveling across the Atlantic, receiving spa treatments in Massachusetts, or otherwise traveling outside of Germany on the dates when Sveda and Schachter claimed Sveda was in Germany receiving medical services from doctors, clinics, hospitals, or other health care providers. Based on information the government has received to date, $257,000 of those claimed medical services, purportedly performed in Germany, are known to be false based on dates when travel and other records establish that Sveda was not in Germany.
In announcing the guilty pleas, U.S. Attorney Phillips, Inspector General McFarland, Assistant Director in Charge Abbate, and Inspector in Charge Bowers expressed appreciation for the work performed by Special Agents and analysts from OPM’s Office of Inspector General and the FBI, as well as by Postal Inspectors and analysts with the U.S. Postal Inspection Service. They also acknowledged the efforts of those who are working on the case from the U.S. Attorney’s Office, including Paralegal Specialists Donna Galindo, Kristy Penny, John Lowell, Jessica Mundi, and Corinne Kleinman, Assistant U.S. Attorneys Ted Radway and Diane Lucas, and Assistant U.S. Attorney Virginia Cheatham, who is prosecuting the case.
Two Indian Nationals Arrested, Charged with Smuggling Foreign Nationals into the United States via Commercial FlightsRead the Press Release
NEWARK, N.J. – Two Indian nationals will appear in federal court today to face charges that they conspired to use commercial airline flights to smuggle foreign nationals into the United States, U.S. Attorney Paul J. Fishman announced.
Nileshkumar Patel, 41, and Harsad Mehta, 65, both of India, are charged by criminal complaint with one count of conspiracy to bring in and harbor aliens. In addition, Patel is charged with six counts and Mehta is charged with four counts of smuggling foreign nationals into the United States for private financial gain.
Both were arrested yesterday by special agents of the U.S. Department of Homeland Security, Homeland Security Investigations (HSI) upon their arrival at Newark Liberty International Airport and are expected to appear this afternoon before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court.
According to the complaint:
HSI received information that a smuggling operation run by Patel and Mehta was attempting to find methods to illegally smuggle foreign nationals from India into the United States. The investigation revealed that the smuggling organization recruited Indian nationals and others to pay fees in exchange for passage to the United States.
Beginning in April 2014, an undercover law enforcement officer posing as a smuggler began meeting with Patel and Mehta in Bangkok, Thailand. Patel and Mehta stated that they were involved in the smuggling business and had multiple Indian nationals that they were looking to smuggle into the United States. Mehta and Patel agreed to transport the Indian nationals from India to Thailand, at which point the undercover law enforcement officer would presumably use contacts to smuggle them into the United States via commercial airline flights. Patel and Mehta agreed to wire a $10,000 down payment for each individual to be smuggled into the United States and to pay a balance of tens of thousands of dollars for each individual once the foreign nationals arrived in the United States.
Over the ensuing months, Patel and Mehta arranged for six Indian nationals to be brought to Thailand for smuggling into the United States via Newark Liberty International Airport.
The conspiracy charge carries a maximum potential penalty of 10 years in prison. Each substantive charge of smuggling carries a maximum potential penalty of five years in prison.
The charges and allegations contained in the complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
U.S. Attorney Fishman credited special agents of HSI, under the direction of Acting Special Agent in Charge Kevin Kelly in Newark, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Francisco J. Navarro of the U.S Attorney’s Office National Security Unit in Newark.
Two Defendants Sentenced for their Participation in a Stolen Identity Tax Refund SchemeRead the Press Release
Two defendants were sentenced for their participation in a stolen identity tax refund scheme.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Steve Steinberg, Chief, Aventura Police Department, made the announcement.
Adrian Claude Green, Jr., 24, of Miami Gardens, was sentenced on October 22, 2015 to 34 months in prison, followed by three years of supervised release, and was ordered to pay restitution to the IRS in the amount of $34,000. Aquil Emmons, 25, of Marietta, GA, was sentenced on September 22, 2015 to one year and a day in prison, followed by two years of supervised release, and was ordered to pay restitution to the IRS in the amount of $31,600. Green and Emmons previously pled guilty to one count of using one or more unauthorized access devices to obtain goods worth $1,000 or more, in violation of Title 18, United States Code, Sections 1029(a)(2) and 2, and one count of aggravated identity theft, in violation of Title 18, United States Code, Sections 1028A(a)(1) and 2.
According to court documents, from March 17, 2012 through April 12, 2012, Emmons and Green used a number of prepaid debit cards, loaded with illicit federal tax refunds and registered in the names of various individuals, to purchase a 2007 BMW and a 2009 Mercedes Benz at a car dealership in Broward County.
Mr. Ferrer commended the investigative efforts of the IRS-CI and the Aventura Police Department. The case is being prosecuted by Assistant United States Attorney Tonya R. Long.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Twice Convicted Child Sex Offender Found Guilty by Federal Jury of Child Pornography ChargesRead the Press Release
United States Attorney Andrew M. Luger and Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division today announced the conviction of REX LEE FURMAN, 52, of Federal Dam, Minnesota, to all counts of the indictment against him. The jury found FURMAN guilty of producing, receiving, distributing and possessing child pornography, as well as committing a felony offense while being required to register as a sex offender. After a three-day trial before Senior U.S. District Judge David S. Doty, the jury returned the guilty verdict in less than two hours. A sentencing date has not been set, however due to his prior convictions, FURMAN is subject to a mandatory life sentence.
As proven at trial, in August 2013 a special agent with the Minnesota Bureau of Criminal Apprehension (BCA) began an internet investigation using peer-to-peer (P2P) software. An officer with the Minneapolis Police Department began a separate and independent investigation in October 2013. During these investigations, both law enforcement officers obtained child pornography videos from the same internet protocol (IP) address linked to the defendant’s home.
As proven at trial, on February 13, 2014, BCA executed a search warrant at FURMAN’s residence in Federal Dam with the assistance of the Cass County Sherriff’s Office. FURMAN acknowledged at that time that he looked for and downloaded child pornography. FURMAN also informed a Special Agent that he had produced images depicting the genitalia of two girls who were in his care at the time. A full forensic analysis of FURMAN’s computers and digital media revealed two sets of child pornography that he produced in August and September of 2012 that included graphic photos and a video of the girls’ genitalia. At the time of the production, one girl turned four-years-old and the other was five-years-old. Investigators also found hundreds of images and videos of child pornography depicting prepubescent children engaged in sex acts with adults.
The defendant has two prior state court convictions for engaging in sex acts with minors. In December 1981, Furman pled guilty to fourth degree criminal sexual conduct in Wright County, Minnesota, for sexually abusing a five-year-old girl who was in his care. On January 13, 1999, the defendant was convicted of first degree criminal sexual conduct in Hennepin County, Minnesota, for sexually abusing a ten-year-old girl in his care. As a result of the second conviction, the defendant was required to register as a sex offender until 2021.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case is the result of an investigation conducted by the Minnesota Bureau of Criminal Apprehension, which leads the Minnesota Internet Crimes Against Children Task Force, the Minneapolis Police Department, which is a member of the FBI Child Exploitation Task Force and the Cass County Sheriff’s Office.
This case is being prosecuted by Assistant U.S. Attorney Melinda A. Williams of the District of Minnesota and Assistant Deputy Chief Alexandra R. Gelber from the Criminal Division’s Child Exploitation and Obscenity Section.
Defendant Information:REX LEE FURMAN, 52
Federal Dam, Minn.Convicted: • Production of child pornography, 13 counts
• Distribution of child pornography, 2 counts
• Receipt of child pornography, 1 count
• Possession of child pornography, 1 count
• Commission of a felony offense involving a minor when required to register as a sex offender, 1 countTwenty-Five Individuals Indicted for Wire FraudRead the Press Release
Defendants Defrauded the U.S. Army National Guard Recruiting Assistance Program
Twenty-five individuals have been charged in 14 separate indictments for their alleged participation in a conspiracy to defraud the United States and the National Guard Bureau of money and property, wire fraud and aggravated identity theft, announced U.S. Attorney Rosa Emilia Rodríguez-Vélez of the District of Puerto Rico. The U.S. Secret Service is in charge of the investigation, with the collaboration of the U.S. Army Criminal Investigation Command, the U.S. Postal Service Office of Inspector General, the Department of Defense-Defense Criminal Investigative Service and the Puerto Rico Police Department. The indictments were unsealed today upon the arrest of the defendants.
A federal grand jury in the District of Puerto Rico returned the indictments yesterday, Oct. 21, 2015, which include the following individuals: recruiters Cristobal Colón-Colón, Ángel D. Rivera-Rodríguez, Enrique Costas-Torres, Gregorio Quiñones-Pacheco, Guillermo Cruz-García, Edwin Izquierdo-Montañez, Luis De Jesús-Negrón, Gabriel González-Franco, Gilberto Rivera-Quiñones, Juan Rivera-Rivera and Héctor Rodríguez-Colón; and recruiter assistants Axel Aponte-García, Gilberto Gierbolini-Emanuelli, Freddie García-Ruiz, Félix González-Rodríguez, Radamés Robles-Meléndez, Emilio Rivera-Maldonado, Carlos Meléndez-González, Natalio Soto-Rivera, José Rivera-Pereles, Félix Lasen-Nieves, Ángel Perales-Muñoz, Alexis Betancourt-Jiménez, José Velázquez-Lugo and Garby Ruiz-Rosado.
These charges stem from a scheme utilized by the defendants from 2007 through 2011. In or about September 2005, the National Guard Bureau, located in Arlington, Virginia, entered into a contract with Document and Packaging Broker Inc. (Docupak), located in Pelham, Alabama, to administer the Guard Recruiting Assistance Program (G-RAP). The G-RAP was a recruiting program designed to offer referral bonus payments to Army National Guard soldiers to recruit civilians to serve in the Army National Guard. As part of the G-RAP, the National Guard Bureau reimbursed Docupak for the recruiting referral bonus payments that Docupak paid to participating soldiers. The National Guard Bureau also paid Docupak an administrative fee for disbursing each of the referral bonus payments.
The program had two primary participants: recruiters, whose job it was to assist the Docupak subcontractors in enlisting new members into the Army National Guard; and recruiter assistants, who were Docupak subcontractors, whose job it was to identify and assist recruit new potential members into the Army National Guard and assist recruiters with other related duties. Under the contract specifications of the program, only recruiter assistants were eligible for recruiting referral bonuses.
The program required recruiter assistants to establish an online account in their name to record their referral and recruitment efforts. The recruiter assistant would input the personal identifying information of each recruit into the account. A recruiter assistant could receive a bonus between $500 and $1,000 for every referred soldier that enlisted in the Army National Guard, and an additional bonus between $500 and $1,000 once the referred soldier was sent to basic training. If the referred soldier had previously served in a different military branch, did not need to attend basic training or joined the Army National Guard as an officer, the recruiter assistant could receive a bonus between $2,000 and $8,500. The recruiter assistant could receive the referral bonus payments either through direct deposit in a bank account or a VISA account.
It was the goal of the conspiracy for the recruiters to unlawfully enrich themselves by defrauding the United States and performing acts in violation of their official duties, in exchange for things of value. The recruiter assistants provided things of value to the recruiters in exchange for their assistance in defrauding the U.S. National Guard.
The defendants’ scheme knowingly caused the transfer, possession and use without lawful authority of a means of identification of another person, which contained the name, date of birth and social security number of potential soldiers; and by submitting the personal identifying information (PII) for unauthorized purposes, they generated a fraudulent referral bonus of the G-RAP program that would then create an interstate wire transfer to the co-conspirator’s different bank accounts.
An example of the scheme, as alleged in one of the indictments, is as follows: the defendants allegedly cheated the program, known as G-RAP, by having the recruiter assistants create a G-RAP account and or allow the recruiters to use the recruiter assistants’ G-RAP account to enter all information necessary to claim recruiting bonuses that the recruiter assistants had not earned. The defendants applied for the G-RAP bonuses using PII given to the recruiters by enlistees who would go to the recruitment office seeking orientation to enlist in the Puerto Rico Army National Guard (PRANG). The recruiters would obtain the PII in their official capacity as a recruiter and would use the recruiter assistants’ G-RAP accounts to apply for fraudulent recruiting bonuses. The recruiter assistants were paid bonuses that would be deposited by Docupak in their personal bank accounts or a VISA Card that was given to them by Docupak, based on the misrepresentations made by the defendants of the recruitment process. Some recruiter assistants withdrew a cash amount from each bonus and paid a kickback of approximately half of the bonus to the recruiters, and in some cases the recruiters kept the bonuses for themselves.
“These charges clearly demonstrate that we will take firm action against those who choose to exploit our military system for personal and criminal gain,” said U.S. Attorney Rodríguez-Vélez. “We remain committed to investigating and apprehending those who cheat the system for personal gain, and will continue to work towards the eradication of this type of fraud in Puerto Rico.”
“The U.S. Secret Service will continue to aggressively pursue those that commit fraud and identity theft for their own enrichment,” said Resident Agent in Charge Carlos Colón of the U.S. Secret Service Office in Puerto Rico. “These crimes remain a top investigative priority for our agency.”
“We should expect honesty and integrity from our military personnel,” said Special Agent in Charge John F. Khin of the Defense Criminal Investigative Service. “This case demonstrates the commitment of DCIS, along with our investigative partners, to relentlessly pursue and bring to justice those who commit fraud and violate positions of trust for personal enrichment.”
“The conduct alleged in the criminal Indictments is beyond disgraceful,” said Special Agent in Charge Eileen Neff of the USPS Office of Inspector General (OIG). “The USPS-OIG, along with our law enforcement partners, will continue to aggressively investigate those who seek to defraud our government programs.”
If found guilty, the defendants face a maximum penalty of 10 years in prison for the conspiracy, 20 years in prison for wire fraud and a mandatory two-year consecutive term in prison for aggravated identity theft.
The case is being investigated by the U.S. Secret Service. The case is being prosecuted by Assistant U.S. Attorney Olga B. Castellón-Miranda and Special Assistant U.S. Attorney Amanda C. Soto-Ortega of the District of Puerto Rico.
Indictments contain only charges and are not evidence of guilt. The defendants are presumed to be innocent unless and until proven guilty. The investigation is ongoing.
Twenty-Five Individuals Indicted for Wire FraudRead the Press Release
SAN JUAN, Puerto Rico – Twenty-five individuals have been charged in fourteen separate indictments for their alleged participation in a conspiracy to defraud the United States and the National Guard Bureau of money and property, wire fraud, and aggravated identity theft, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The United States Secret Service is in charge of the investigation with the collaboration of the U.S. Army Criminal Investigation Command, the U.S. Postal Service Office of Inspector General, the Department of Defense- Defense Criminal Investigative Service, and the Puerto Rico Police Department. The indictments were unsealed today upon the arrest of the defendants.
The indictments, returned yesterday, October 21, 2015, by a federal grand jury in the District of Puerto Rico, include the following individuals: Recruiters Cristobal Colón-Colón; Ángel D. Rivera-Rodríguez; Enrique Costas-Torres; Gregorio Quiñones-Pacheco; Guillermo Cruz-García; Edwin Izquierdo-Montañez; Luis De Jesús-Negrón; Gabriel González-Franco; Gilberto Rivera-Quiñones; Juan Rivera-Rivera; and Héctor Rodríguez-Colón; and Recruiter Assistants Axel Aponte-García; Gilberto Gierbolini-Emanuelli; Freddie García-Ruiz; Félix González-Rodríguez; Radamés Robles-Meléndez; Emilio Rivera-Maldonado; Carlos Meléndez-González; Natalio Soto-Rivera; José Rivera-Pereles; Félix Lasen-Nieves; Ángel Perales-Muñoz; Alexis Betancourt-Jiménez; José Velázquez-Lugo and Garby Ruiz-Rosado.
These charges stem from a scheme utilized by the defendants from 2007 through 2011. In or about September 2005, the National Guard Bureau, located in Arlington, Virginia, entered into a contract with Document and Packaging Broker, Inc. (“Docupak”), located in Pelham, Alabama, to administer the G-RAP. The G-RAP was a recruiting program designed to offer referral bonus payments to Army National Guard soldiers to recruit civilians to serve in the Army National Guard. As part of the G-RAP, the National Guard Bureau reimbursed Docupak for the recruiting referral bonus payments that Docupak paid to participating soldiers. The National Guard Bureau also paid Docupak an administrative fee for disbursing each of the referral bonus payments.
The Program had two primary participants: (1) Recruiters: whose job it was to assist the Docupak subcontractors in enlisting new members into the Army National Guard; and (2) Recruiter Assistants, who were Docupak subcontractors: whose job it was to identify and assist recruit new potential members into the Army National Guard, and assist Recruiters with other related duties. Under the contract specifications of the Program, only Recruiter Assistants were eligible for recruiting referral bonuses.
The Program required Recruiter Assistants to establish an online account in their name to record their referral and recruitment efforts. The Recruiter Assistant would input the personal identifying information of each recruit into the account. A Recruiter Assistant could receive a bonus between $500 and $1,000 for every referred soldier that enlisted in the Army National Guard, and an additional bonus between $500 and $1,000 once the referred soldier was sent to Basic Training. If the referred soldier had previously served in a different military branch, did not need to attend Basic Training, or joined the Army National Guard as an officer, the Recruiter Assistant could receive a bonus between $2,000 and $8,500. The Recruiter Assistant could receive the referral bonus payments either through direct deposit in a bank account, or a VISA account.
It was the goal of the conspiracy for the Recruiters to enrich themselves unlawfully by defrauding the United States and performing acts in violation of their official duties, in exchange for things of value. The Recruiter Assistants provided things of value to the Recruiters, in exchange for their assistance in defrauding the U.S. National Guard.
Defendants’ scheme knowingly caused the transfer, possession, and use without lawful authority, of a means of identification of another person, which contained the name, date of birth and social security number of potential soldiers; and by submitting the Personal Identifying Information (PII) for unauthorized purposes, they generated a fraudulent referral bonus of the G-RAP program, that would then create an interstate wire transfer to the coconspirator’s different bank accounts.
An example of the scheme, as alleged in one of the indictments, is as follows: The defendants allegedly cheated the program, known as the U.S. Army National Guard Recruiting Assistance Program, or “G-RAP,” by having the Recruiter Assistants create a G-RAP account and or allow the Recruiters to use the RA’s G-RAP account to enter all information necessary to claim recruiting bonuses that the RA’s had not earned. Defendants applied for the G-RAP bonuses using personal identifying information (PII) given to the Recruiters by enlistees who would go to the recruitment office seeking orientation to enlist in the Puerto Rico Army National Guard (PRANG). The Recruiter’s would obtain the PII in their official capacity as a Guard recruiter and would use the RA’s G-RAP account to apply for fraudulent recruiting bonuses. The RA’s were paid bonuses that would be deposited by Docupak in their personal bank accounts or a VISA Card that was given to them by Docupak, based on the misrepresentations made by the defendants of the recruitment process. Some RA’s withdrew a cash amount from each bonus and paid a kick-back of approximately half of the bonus to the Recruiters and in some cases the Recruiter’s kept the bonuses for themselves.
“These charges clearly demonstrate that we will take firm action against those who choose to exploit our military system for personal and criminal gain. We remain committed to investigating and apprehending those who cheat the system for personal gain, and will continue to work towards the eradication of this type of fraud in Puerto Rico,” said U.S. Attorney Rosa Emilia Rodríguez-Vélez.
“The U.S. Secret Service will continue to aggressively pursue those that commit fraud and identity theft for their own enrichment. These crimes remain a top investigative priority for our agency,” said Carlos Colón, Resident Agent in Charge of the Secret Service Office in Puerto Rico.
“We should expect honesty and integrity from our military personnel,” said Defense Criminal Investigative Service Special Agent in Charge John F. Khin. “This case demonstrates the commitment of DCIS, along with our investigative partners, to relentlessly pursue and bring to justice those who commit fraud and violate positions of trust for personal enrichment.”
“The conduct alleged in the criminal Indictments is beyond disgraceful,” stated USPS-OIG Special Agent-in-Charge Eileen Neff. “The USPS-OIG, along with our law enforcement partners, will continue to aggressively investigate those who seek to defraud our government programs.”
If found guilty, defendants face a maximum penalty of ten years in prison for the conspiracy, 20 years in prison for wire fraud, and a mandatory two year consecutive term in prison for aggravated identity theft.
The case is being investigated by the U.S. Secret Service. The case is being prosecuted by Assistant U.S. Attorney Olga B. Castellón-Miranda and Special Assistant U.S. Attorney Amanda C. Soto-Ortega.
Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent unless and until proven guilty. The investigation is ongoing.
Swansea Brothers Sentenced in $1.6 Million FraudRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that Qais Hussein, 43, and Majdi Odeh, 45, both of Swansea, Illinois, were sentenced on related charges in the United States District Court in East St. Louis, Illinois.
Hussein and Odeh were returned by a Federal Grand Jury sitting in East Saint Louis, Illinois on October 22, 2014. In addition to Odeh and Hussein, the owners of the Garden Grill stores, five employees had also been charged. Elsayed Hassan and Hossam Ahmed were charged along with Hussein and Odeh in the indictment with Conspiracy to Unlawfully Acquire SNAP Stamps. Albraa K. Sabrah, Alaa K.A. Jaber and Rami M. Abou Amra were all indicted separately on October 23, 2013, and charged with Unauthorized Acquisition of SNAP Benefits.
After a two-day hearing, on October 20, 2015, the district court sentenced Hussein and Odeh, each, to 85 months in federal prison, to be followed by three years of supervised release. The court also ordered both Hussein and Odeh to each pay $12,500 in fines, $1,682,604.38 in restitution for the loss to the SNAP program, and $400 in special assessments.
Previously, Hussein and Odeh pled guilty, on May 11, 2015, to a four-count indictment charging that they along with others engaged in a conspiracy from January 2010 through July of 2012, to Unlawfully Acquire Supplemental Nutrition Assistance Program (SNAP) Benefits (formerly known as Food Stamp benefits), Aiding and Assisting in the Preparation and Presentation of False Tax Returns, and Trafficking in Counterfeit Goods.
During their plea hearing, Hussein and Odeh, brothers who operated businesses in East Saint Louis, Illinois, known as Garden Grill Market, Inc. and Garden Grill Market II, Inc., admitted to conspiring together and with others to fraudulently traffic in and acquire over $1 million dollars in federal SNAP benefits (the exact amount, which was ultimately determined by the district court, was found to be 1,682,604.38).
Additionally, the five employees of the business, who also pled guilty, were sentenced as follows:
-- Hossam Ahmed, 25, of Saint Louis, Missouri, pled guilty on April 28, 2015, to the charge that he along with others engaged in a conspiracy from January 2010 through July of 2012, to Unlawfully Acquire Supplemental Nutrition Assistance Program (SNAP) Benefits (formerly known as Food Stamps benefits). The district court sentenced Ahmed to three years of probation with the first 30 days being in home confinement. The court also ordered Ahmed to pay $250.81 in restitution for the loss to the SNAP program and a $100 special assessment.
-- Alaa Jaber, 29, of Jersey City, New Jersey, pled guilty on April 28, 2015, to five counts of stealing SNAP benefits. The district court sentenced Jaber to 30 days in jail, to be followed by three years of supervised release. The court also ordered Jaber to pay $2,500 in fines, $1,422.36 in restitution for the loss to the SNAP program, and $500 in special assessments.
-- Elsayed Hassan, 25, of East Saint Louis, Illinois, pled guilty on May 7, 2015, to one count of the indictment for Conspiracy to Unlawfully Acquire SNAP Benefits. Hassan was sentenced to time served, three years supervised release, $675.13 in restitution, and a $100 special assessment.
-- Rami Abou Amra, 37, of Troy, Illinois, pled guilty on January 9, 2015, to three counts of the indictment for Unauthorized Acquisition of SNAP Benefits. Abou Amra was sentenced to two years’ probation, $328.40 in restitution, a $100 fine and a $300 special assessment.
-- Albraa Sabrah, 27, of Hazelwood, Missouri, pled guilty on March 20, 2015, to 3 counts of the indictment for Unauthorized Acquisition of SNAP Benefits. Sabrah was sentenced to three years’ probation, $798.48 restitution, a $200 fine, and a $300 special assessment.
United States Attorney Stephen R. Wigginton stated, "This successful investigation and prosecution is yet another step in the combined efforts of State and Federal law enforcement to unmask those who enrich themselves while others in our community, who are in desperate need of assistance, suffer from reduced benefits because of the fraud that is literally pillaging assistance programs. As I have said before, my office, the attorneys who prosecute these cases, and the agents who work tirelessly to investigate them, simply will not stop. If you defraud the government, we are looking, we will find you, and you will be prosecuted, and you will wind up in a federal jail far from your home."
SNAP benefits are similar to United States currency in that SNAP recipients can purchase food from grocery retailers at the face value of their SNAP benefits. In most states, SNAP benefits are provided to recipients on an Electronic Benefits Transfer (EBT) card that is used like a bank Automated Teller Machine (ATM) card. The food stamp recipients in Illinois receive an EBT card known as an "Illinois Link" card. Illinois SNAP recipients can use their Illinois Link card at an authorized retailer in any state.
The defendants admitted that as part of the conspiracy, they would use Garden Grill Market Inc. and Garden Grill Market II, Inc., to unlawfully acquire SNAP benefits from customers by offering and unlawfully giving cash payments to those customers in return for the electronic transfer of SNAP benefits for well in excess of the cash amount given, normally giving the recipients cash in the amount of 50 to 60 percent of the value received by the store. In addition, the defendants fraudulently accepted SNAP benefits for ineligible items such as tobacco, cellular phones, and purses/handbags. The defendants also admitted to buying Woman, Infant and Children (WIC) vouchers by giving cash amounts less than the face value of the voucher.
As to the tax charges, the defendants admitted that they had assisted in the preparation of two false 2010 tax returns by underreporting income generated by Garden Grill Market Inc. and Garden Grill Market II, Inc.
As to the Trafficking in Counterfeit Goods, the defendants admitted that from January of 2010, through July 2012 they trafficked in counterfeit goods, including watches, hats, DVDs and other items.
The case was investigated by agents of the U.S. Department of Agriculture - Office of Inspector General; the Internal Revenue Service - Criminal Investigation; and the U.S. Department of Homeland Security - Homeland Security Investigations. The case is being prosecuted by Assistant United States Attorneys Ranley R. Killian and William E. Coonan.
Statement of U.S. Attorney Preet Bharara on Dismissal of Charges Against Michael Steinberg and Six Other Insider Trading DefendantsRead the Press Release
“Today, this Office will move to dismiss charges against Michael Steinberg, who was previously convicted at trial, and six cooperating witnesses who pled guilty, all in connection with the same insider trading scheme charged in United States v. Newman and Chiasson. The decision to dismiss these charges follows the Second Circuit’s Newman decision, and also reflects determinations, after careful consideration of all of our prior insider trading prosecutions, that insisting on maintaining guilty pleas in these cases would not be in the interests of justice. These prosecutions were all undertaken in good faith reliance on what this Office and others, including able defense counsel for all those who pled guilty, understood to be the well-settled law before Newman.”
Springfield Doctor Indicted in Anti-Kickback CaseRead the Press Release
BOSTON – A Springfield gynecologist was arrested today in connection with allegedly accepting free meals and speaker fees from a pharmaceutical company in return for prescribing its osteoporosis drugs, allowing pharmaceutical sales representatives to access patient records and lying to federal investigators.
Rita Luthra, M.D., 64, of Longmeadow, was indicted on one count of violating the Anti-Kickback Statute, one count of wrongful disclosure of individually identifiable health information and one count of obstructing a criminal health care investigation by lying to federal agents and directing an employee to do the same. The indictment also seeks $23,500 in criminal forfeiture.
According to court documents, from October 2010 through November 2011, Warner Chilcott, a pharmaceutical company based in Rockaway, N.J., allegedly paid Luthra $23,500 to prescribe its osteoporosis drugs, Actonel® and Atelvia®. On 31 occasions, a Warner Chilcott sales representative allegedly brought food to Luthra’s medical office for her and her staff, and paid Luthra $750 to talk with her for 25-30 minutes while she ate. On another occasion, Warner Chilcott paid to cater a barbeque that Luthra hosted at her home for her friends. Warner Chilcott also paid Luthra $250 for speaker training, despite the fact that she never spoke to any other physicians. It is alleged that Luthra’s prescriptions of Warner Chilcott's osteoporosis drugs increased during the time that she was paid by the company, and precipitously declined once she stopped being paid. Luthra also allowed a Warner Chilcott sales representative to access protected health information in her patients’ medical files. She further provided false information to federal agents when interviewed about her relationship with Warner Chilcott, and allegedly directed one of her employees to also lie.
The charge of violating the Anti-Kickback Statute provides a sentence of no greater than five years in prison, three years of supervised release and a fine of $25,000. 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 and one year of supervised release. 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.
United States Attorney Carmen M. Ortiz and Phillip Coyne, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of the Inspector General, Office of Investigations, made the announcement today. The case is being prosecuted by Assistant United States Attorneys Miranda Hooker and David S. Schumacher of Ortiz’s Health Care Fraud Unit.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
South Florida Resident Who Was Wanted in Connection with A Drug Trafficking Conspiracy Arrested in ArkansasRead the Press Release
A Palm Beach County resident, wanted on charges out of the Southern District of Florida for his alleged participation in a drug trafficking conspiracy, was arrested yesterday in Arkansas.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Amos Rojas, Jr., United States Marshal, United States Marshals Service, Carlos Canino, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), George L. Piro, Special Agent in Charge, FBI, Miami Field Office, and Ric Bradshaw, Sheriff, Palm Beach County Sheriff’s Office (PBSO), made the announcement.
On February 5, 2015, Samuel David Alvarado, a/k/a “Wham,” 35, of Lake Worth, and thirty-eight co-defendants were charged in a fourteen count indictment with participating in a conspiracy to possess with intent to distribute various narcotics, including cocaine base, heroin, and/or cocaine hydrochloride, in violation of Title 21, United States Code, Sections 841(a)(1), and 846. If convicted, Alvarado faces a maximum sentence of life in prison. Alvarado allegedly fled the Southern District of Florida prior to his arrest on the indictment. A warrant was subsequently issued for his arrest.
Following his initial appearance in the Eastern District of Arkansas, Alvarado will be returned to the Southern District of Florida to face all charges contained in the indictment.
U.S. Attorney Wifredo Ferrer commended the investigative efforts of the United States Marshals Service in Florida and Arkansas, ATF, FBI and the Palm Beach County Sheriff’s Office. This case is being prosecuted by Assistant United States Attorneys Rinku Tribuiani and Robert Waters.
An indictment is only an accusation and the defendants are presumed innocent until proven guilty.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov
South Florida Man Who Engaged in “Sextortion” Sentenced to 139 Years in PrisonRead the Press Release
After having been convicted at trial of producing child pornography, a Miami-Dade County resident was sentenced today to 139 years in prison, to be followed by a lifetime of supervised release by U.S. District Court Chief Judge K. Michael Moore.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Special Agent in Charge George Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
Patrick Killen, Jr., 22, of Hialeah, was convicted on July 13, 2015, by a Miami jury of fifteen federal charges, including: three counts of production of child pornography, in violation of Title 18, United States Code, Section 2251(a); two counts of distribution of child pornography, in violation of Title 18, United States Code, Section 2252(a)(2); four counts of receipt of child pornography, in violation of Title 18, United States Code, Section 2252(a)(2); four counts of possession of child pornography, in violation of Title 18, United States Code, Section 2252(a)(4)(B); and two counts of transmission of interstate threats, in violation of Title 18, United States Code, Section 875(d). Killen was acquitted of destruction of evidence, in violation of Title 18, United States Code, Section 1519.
According to the court records and trial testimony, beginning at least as early as November of 2012, Killen created fraudulent social media accounts using assumed identities of teenage girls. Killen stole photographs of minor females from Facebook, Instagram and other sources that he used in support of his falsified accounts. Using the assumed female identities, Killen would search social media websites and engage teenage boys, generally between 11 and 14 years of age, in conversation using internet chat applications such as Kik, Skype, and Omegle. Over the course of these conversations, some of which lasted hours and others months, Killen falsely presented himself as teenage girls. Killen would beg, bribe, and cajole the unsuspecting boys to send him sexually explicit pictures of themselves. In response to Killen’s fraudulent representations, hundreds of teenage boys sent Killen sexually explicit photographs and videos identified as child pornography. When many of these young boys expressed reticence in sending additional sexually explicit photographs, Killen would blackmail them by threatening to post the previously provided material on Instagram and other social media sites. Killen collected, catalogued, and traded the child pornography photographs and videos with other individuals around the world using peer-to-peer file sharing programs. Killen produced, possessed, distributed and received thousands of images and video of children engaged in sexually explicit conduct.
“The lengthy sentence handed down today sends a message to those who use the Internet to target and extort children through sexual exploitation (“sextortion”) and pornographic offenses” stated U.S. Attorney Ferrer. “We implore the community to protect our children by being vigilant and reporting all suspected offenses to law enforcement.”
"The conduct of Patrick Killen, Jr., is as appalling as it is inexcusable, said George L. Piro, Special Agent in Charge, FBI Miami. Taking the identities of minor females online, Killen would persuade teenage boys to send him sexually explicit photographs of themselves which Killen later used to extort these teenage boys. Known as sextortion, online predators use this type of behavior to produce child pornography and take advantage of children through terror and manipulation. The FBI and its Child Exploitation Task Force aggressively investigates allegations of sextortion and other online offenses against children."
Mr. Ferrer commended the investigative efforts of the FBI and Norwood New Jersey Police Department. The case was prosecuted by Assistant U.S. Attorneys Robb Emery and Ben Widlanski.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
South Florida Man Who Engaged in “Sextortion” Sentenced to 139 Years in PrisonRead the Press Release
After having been convicted at trial of producing child pornography, a Miami-Dade County resident was sentenced today to 139 years in prison, to be followed by a lifetime of supervised release by U.S. District Court Chief Judge K. Michael Moore.
U.S. Attorney Wifredo A. Ferrer for the Southern District of Florida and Special Agent in Charge George Piro for the Federal Bureau of Investigation’s (FBI) Miami Field Office made the announcement.
Patrick Killen Jr., 22, of Hialeah, Florida, was convicted on July 13, 2015, by a Miami jury of 15 federal charges, including: three counts of production of child pornography; two counts of distribution of child pornography; four counts of receipt of child pornography; four counts of possession of child pornography; and two counts of transmission of interstate threats. Killen was acquitted of destruction of evidence.
According to the court records and trial testimony, beginning at least as early as November of 2012, Killen created fraudulent social media accounts using assumed identities of teenage girls. Killen stole photographs of minor females from Facebook, Instagram and other sources that he used in support of his falsified accounts. Using the assumed female identities, Killen would search social media websites and engage teenage boys, generally between 11 and 14 years of age, in conversation using internet chat applications such as Kik, Skype and Omegle. Over the course of these conversations, some of which lasted hours and others months, Killen falsely presented himself as teenage girls. Killen would beg, bribe and cajole the unsuspecting boys to send him sexually explicit pictures of themselves. In response to Killen’s fraudulent representations, hundreds of teenage boys sent Killen sexually explicit photographs and videos identified as child pornography. When many of these young boys expressed reticence in sending additional sexually explicit photographs, Killen would blackmail them by threatening to post the previously provided material on Instagram and other social media sites. Killen collected, catalogued and traded the child pornography photographs and videos with other individuals around the world using peer-to-peer file sharing programs. Killen produced, possessed, distributed and received thousands of images and video of children engaged in sexually explicit conduct.
“The lengthy sentence handed down today sends a message to those who use the Internet to target and extort children through sexual exploitation ‘sextortion’ and pornographic offenses,” said U.S. Attorney Ferrer. “We implore the community to protect our children by being vigilant and reporting all suspected offenses to law enforcement.”
“The conduct of Patrick Killen Jr., is as appalling as it is inexcusable,” said Special Agent in Charge George L. Piro. “Taking the identities of minor females online, Killen would persuade teenage boys to send him sexually explicit photographs of themselves which Killen later used to extort these teenage boys. Known as sextortion, online predators use this type of behavior to produce child pornography and take advantage of children through terror and manipulation. The FBI and its Child Exploitation Task Force aggressively investigates allegations of sextortion and other online offenses against children.”
U.S. Attorney Ferrer commended the investigative efforts of the FBI and Norwood New Jersey Police Department. The case was prosecuted by Assistant U.S. Attorneys Robb Emery and Ben Widlanski.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
South Carolina Woman Sentenced for Prostituting MinorRead the Press Release
NORFOLK, Va. – Doriean Barberi, 37, of Greenville, South Carolina, was sentenced today to 188 months in prison for transporting a minor across state lines for prostitution purposes.
Barberi pleaded guilty on May 7, 2015. According to court documents, Barberi was first identified by the Virginia Beach Police Department in September 2014 after Barberi had posted advertisements on the Internet for herself and a 17 year old minor offering their sexual services at a local hotel. Upon being interviewed, Barberi and the minor confirmed that they drove into Virginia several days earlier and first worked in Suffolk before moving to Virginia Beach. Barberi set up the appointments for the minor and the minor gave Barberi all of the money she was paid for having sex with customers. Barberi used the money, in part, to promote her aspiring rap music career.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; John S. Adams, Special Agent in Charge of the FBI’s Norfolk Field Office; and James A. Cervera, Chief of Virginia Beach Police, made the announcement after sentencing by Senior U.S. District Judge Henry Coke Morgan, Jr. Assistant U.S. Attorney Elizabeth M. Yusi prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:14-cr-162.
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