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5 October 2015
2015 Social Worker’s ConferenceRead the Press Release
ALICIA A.G. LIMTIACO, United States Attorney for the Districts of Guam and the Northern Mariana Islands, was invited to be a keynote speaker at the Guam Social Work Conference 2015, “Celebrating Diversity in Micronesia: Empowering and Developing Communities Together,” held on March 18-20, 2015. U.S. Attorney Limtiaco also made a presentation, together with Karen Carpenter, a retired professor Emeritus from the University of Guam and presently a Victim Advocate, volunteering at Erica’s House, Victim Advocates Reaching Out, and the Guam Coalition Against Sexual Assault and Family Violence, and a member of the Guam Human Trafficking Task Force.
U.S. Attorney Limtiaco spoke on the topic of “Preventing Human Trafficking in the Pacific Region,” and 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 to Monitor and Combat Trafficking in Persons; 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 multidisciplinary 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, training opportunities, community outreach/ public awareness and prevention programs, and creation of human trafficking task forces and coalitions in the Pacific region island communities. The Initiative also provides fundamental training in human trafficking, including victimization, investigation and prosecution, prevention efforts, and other related topics to law enforcement, prosecution, victim service providers, social services, medical, mental and public health professionals, faith based organizations, educational institutions, Consulates, and other community stakeholders in our Pacific region island communities, which is critical to effective prevention and enforcement efforts in the region.
Victim Advocate Karen Carpenter shared information about how small jurisdictions like Guam with its limited resources can be responsive to the needs of victims of crime, including victims of human trafficking and other forms of abuse and exploitation. The workshop explored how the Initiative was organized, the importance of unique approaches to the problem depending on the jurisdiction, and the implications for other small jurisdictions.
Other keynote speakers at the conference were Kathy Jetnil-Kijiner, a poet, writer, journalist, and word-artist-empowerment activist; Francis Hezel, SJ, a prolific author of many books and articles on the region’s history and culture and founder of the Micronesian Seminar, an educational, social and research institute that engaged in a variety of public awareness programs for the indigenous population; and the Hon. Benjamin Cruz, retired Chief Justice of the Supreme Court of Guam and Vice Speaker of the 33rd Guam Legislature. There were also more than 30 other speakers at the conference.
Approximately 200 participants attended the Guam Social Work Conference 2015.
U.S. Attorney Alicia Limtiaco giving her keynote remarks at the conference
Karen Carpenter and U.S. Attorney Alicia Limtiaco presenting at the conference13 Members of Willcox Marijuana Trafficking Ring Sentenced to PrisonRead the Press Release
PHOENIX – On Sept. 28, 2015, Alma Escalante, the last of thirteen members of a Willcox drug trafficking conspiracy, was sentenced to a term of imprisonment by U.S. District Judge G. Murray Snow. Luis Cruz, 41, Escalante’s husband and the leader of the organization, was previously sentenced to 121 months’ imprisonment. All 13 defendants pleaded guilty to drug trafficking charges based on their involvement in an organization responsible for the importation and distribution of marijuana from Mexico through the Willcox area.
The evidence showed that Cruz coordinated with marijuana scouts and backpackers to illegally traffic marijuana across the border from Mexico and then arranged for its transportation to large-scale distributors in Phoenix. Those distributors, including Carlos Antonio Garcia-Hurtado, 33, then arranged for the further shipment of marijuana to East Coast and Midwestern locations. Federal law enforcement agencies, including the Drug Enforcement Administration, Internal Revenue Service-Criminal Investigation, and U.S. Border Patrol, seized more than 4,000 pounds of marijuana as part of the investigation. Law enforcement also seized and forfeited two pieces of real estate, firearms, and numerous bank accounts linked to Cruz and Garcia-Hurtado, who both pleaded guilty to money laundering charges in addition to drug trafficking crimes.
Judge Snow sentenced Garcia-Hurtado to 168 months’ imprisonment and Cruz’s stepchildren, Felipe Escalante-Reyes, 24, and Carime Itsel Reyes-Escalante, 20, received sentences of 42 and 40 months’ imprisonment, respectively. Other members of the drug trafficking organization were also sentenced as follows:
Robert Torres Luong, 27, received a sentence of 97 months’ imprisonment.
Carlos Ramirez Jr., 43, received a sentence of 57 months’ imprisonment.
Sergio Adan Garcia-Morales, 34, received a sentence of 46 months’ imprisonment.
Jeremiah Woolsey, 26, received a sentence of 30 months’ imprisonment.
Frank Ramon Hernandez, 64, received a sentence of 24 months’ imprisonment.
Sergio Robert Ramos-Moreno, 20, received a sentence of 18 months’ imprisonment.
Maxine Carter, 27, received a sentence of 13 months’ and 1 day imprisonment.
Trevon Bondae, 20, received a sentence of 8 months’ imprisonment, adjusted to account for additional time in Arizona Department of Corrections custody.
This Organized Crime Drug Enforcement Task Force investigation was conducted by the Drug Enforcement Administration and Internal Revenue Service-Criminal Investigation, with assistance from the U.S. Border Patrol and its Tactical Unit (BORTAC), U.S. Marshal’s Service, Graham County Attorney’s Office, National Drug Intelligence Center Document and Media Exploitation (DOMEX) , and SWAT Teams from the Mesa Police Department, Apache Junction Police Department, Tempe Police Department, and the Pinal County Sheriff’s Office. The prosecution was handled by Krissa Lanham, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-13-1709-PHX-GMS
RELEASE NUMBER: 2015-096_Cruz et al
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
***media Advisory***Read the Press Release
ALBUQUERQUE – As part of the Obama Administration’s commitment to improving public safety and building stronger communities, Attorney General Loretta E. Lynch, Deputy Attorney General Sally Quillian Yates and other Justice Department officials will convene a Summit on Violent Crime on WEDNESDAY, OCTOBER 7, 2015.
The summit will provide an opportunity for participants to identify and examine effective violent crime reduction strategies that have contributed to the historic decline of crime and violence, understand the nature and potential causes of recent upticks in violence in some jurisdictions, including identifying any commonalities, discuss collaborative efforts to tackle violent crime and explore potential Department of Justice resources that could be used to assist in efforts to reduce crime.
Participants will engage in discussions with Attorney General Lynch; Deputy Attorney General Yates; the heads of the Office of Justice Programs, the Office of Community Oriented Policing Services, the FBI, the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the U.S. Marshals Service; U.S. Attorneys from participating jurisdictions, including New Mexico U.S. Attorney Damon P. Martinez, and other senior Obama Administration officials.
WHAT: Department of Justice Summit on Violent Crime
WHO: Attorney General Loretta E. Lynch
Deputy Attorney General Sally Quillian Yates
New Mexico U.S. Attorney Damon P. Martinez
WHEN: WEDNESDAY, OCTOBER 7, 2015. 3:15 p.m. EDT/1:15 p.m. MDT
WHERE: Washington Plaza Hotel
10 Thomas Circle, NW
Washington, D.C. 20005
OPEN TO CREDENTIALED MEDIA
NOTE: All media must present government-issued photo I.D. (such as a driver’s license) as well as valid media credentials. Press inquiries and RSVPs should be directed to [email protected]. Additional media logistics will be available in the coming days.
2 October 2015
Wyoming Man Sentenced for Sexual Abuse of a MinorRead the Press Release
U.S. Attorney for the District of Wyoming Christopher A. Crofts announced today that on September 30, 2015, Carlos Jonas Goggles, 27, was sentenced in federal court to 37 months imprisonment on one count of sexual abuse of a minor in connection with an incident involving a minor victim on the Wind River Reservation. Goggles was recommended for sex offender specific treatment and a residential drug and alcohol treatment program while imprisoned. Following imprisonment, Goggles will be placed on five years of supervised release with special conditions that he not be allowed to associate with children or vulnerable adults. Goggles was also ordered to pay a $400.00 fine and $100.00 special assessment in addition to other terms and conditions. The case was investigated by the Bureau of Indian Affairs.
Woodbridge Man Sentenced to 5 Years in Child Pornography CaseRead the Press Release
ALEXANDRIA, Va. – Jon W. McClellan, 55, of Woodbridge, was sentenced today to 60 months in prison and five years of supervised release for charges of receipt of child pornography.
McClellan pleaded guilty on July 14, 2015. Prior to that date, McClellan worked as an intelligence analyst and held a high-level security clearance. According to court documents, from March 2010 to February 2014, McClellan used a peer-to-peer file sharing program to receive and collect child pornography videos and images, including numerous videos of children under 12 years old being sexually abused. In total, McClellan’s child pornography collection included over 1,500 images and 1,800 videos of children being sexually exploited, including numerous images and videos depicting sadistic or masochistic conduct.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Clark E. Settles, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), Washington D.C. office, made the announcement after sentencing by U.S. District Judge Gerald Bruce Lee. This case was investigated by HSI. Assistant U.S. Attorney Whitney Dougherty Russell 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. 1:15-CR-182.
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Woman Pleads Guilty for Defrauding the Internal Revenue ServiceRead the Press Release
SAN JUAN, P.R. – Today, defendant Mariely Malavet-Rivera pled guilty before United States District Judge Francisco A. Besosa to twenty-four counts of wire fraud, one count of theft of public money, and one count of aggravated identity theft, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico.
These charges stemmed from a scheme utilized by Mariely Malavet-Rivera from 2010-2013 to submit false Federal tax returns seeking the additional child tax credit (ACTC) in order to obtain fraudulent tax refunds from the Internal Revenue Service (IRS) via check and direct deposit. Personal identification information including individuals’ names, dates of birth, and social security numbers were utilized without the knowledge or consent of the individual in order to request and obtain the fraudulent tax refunds.
The false Federal tax returns contained defendant’s own postal address and bank account information so that the fraudulent refunds would be deposited via wire transfer to bank accounts Malavet-Rivera controlled and the physical checks would be mailed to her postal address. Defendant then used a fraudulent driver’s license or voter registration identification to cash the fraudulent refund checks through an intermediary company.
The fraudulent tax refund scheme had a total value of approximately $227,653.22.
The case was investigated by the Internal Revenue Service, Criminal Investigation (IRS-CI) and prosecuted by Assistant United States Attorney Seth A. Erbe. The defendant is scheduled to be sentenced on January 13, 2016.
Utah Man Sentenced to Four Years for Fraud SchemeRead the Press Release
PHILADELPHIA – Robert G. Wray, 76, of Torrey, Utah, was sentenced today to 48 months in prison for conspiring with a Lehigh County doctor of osteopathy to defraud the Department of Health and Human Service and the Internal Revenue Service. Wray conspired with Dr. Dennis Erik Fluck Von Kiel, of Macungie, Pennsylvania, to help Dr. Von Kiel evade a six-figure debt he owed to HHS for unpaid medical school loans and avoid paying personal income taxes to the IRS. The scheme defrauded the government of hundreds of thousands of dollars. On May 28, 2015, a federal jury found Wray guilty of one count of conspiracy, 30 counts of wire fraud, one count of bankruptcy fraud, and one count of failure to appear.
Wray uses many different names for himself in an attempt to evade federal and other laws by arguing that he has not been properly identified in legal documents. Wray also claims to be a “sovereign” citizen who is not subject to federal laws, including laws regarding personal income taxation. In addition to the prison term, U.S. District Court Judge Jeffrey L. Schmehl ordered restitution and forfeiture in the amount of $519,229.11 ($256,926.11 to IRS and $262,303.11 to HHS), a $3,300 special assessment and three years of supervised release.
The case was investigated by the IRS Criminal Investigations and the FBI. It is being prosecuted by Assistant United States Attorney Mark B. Dubnoff.
Update on Cape Lisburne Walrus InvestigationRead the Press Release
Anchorage, Alaska – United States Attorney Karen L. Loeffler and Ryan Noel, Special Agent in Charge, U.S. Fish and Wildlife Service, Alaska Region, announced today that the U.S. Fish and Wildlife Service Office of Law Enforcement has determined that the deaths of some walruses at a haulout near Cape Lisburne, Alaska, were human caused. The Service believes it has identified responsible individuals. However, no charges have been filed to date and the investigation continues. No further information concerning the investigation will be released at this time.
The Service has coordinated closely with the Eskimo Walrus Commission and was assisted by the North Slope Borough Department of Wildlife Management and the Alaska SeaLife Center on necropsies of the dead walruses.
The Marine Mammal Protection Act permits the non-wasteful taking of marine mammals for subsistence and handicraft purposes by Alaska Natives living along the coast. Anyone can collect bones, teeth, and ivory of dead walrus found on a beach, however, items must be registered with the Service within 30 days of collection.
“We encourage and support all member communities from Barrow to Bristol Bay region to harvest walrus that is needed for food and creation of handicrafts in compliance with the Marine Mammal Protection Act,” said a written statement released by the Eskimo Walrus Commission to its members. “EWC’s mission is to protect the walrus population and manage it sustainably for the benefit of our hunters and well into the future.”
For more information regarding walrus and walrus research, visit:
USFWS: http://www.fws.gov/alaska/fisheries/mmm/walrus/wmain.htm
USGS: http://alaska.usgs.gov/science/biology/walrus/index.html
For updates on NOAA’s aerial surveys of Arctic marine mammals, visit:
http://www.afsc.noaa.gov/nmml/cetacean/bwasp/index.php
The U.S. Fish and Wildlife Service works with others to conserve, protect, and enhance fish, wildlife, plants, and their habitats for the continuing benefit of the American people. For more information, visit www.fws.gov, or connect with the U.S. Fish and Wildlife Service through any of these social media at http://www.fws.gov/home/socialmedia/index.html.
United States Settles False Claims Act Suit against Guardian Hospice and Related EntitiesRead the Press Release
Hospice Allegedly Knowingly Billed Medicare for Ineligible Patients
Guardian Hospice of Georgia LLC, Guardian Home Care Holdings Inc. and AccentCare Inc. (collectively Guardian) agreed to pay $3 million to resolve allegations that Guardian knowingly submitted false claims to the Medicare program for hospice patients who were not terminally ill, the Department of Justice announced today. Guardian is a for-profit hospice which provides hospice services in Atlanta.
“The Medicare hospice benefit is intended to provide comfort and care to patients nearing the end of life,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “We will continue to aggressively pursue companies that abuse the Medicare hospice benefit to improperly inflate their profits.”
The Medicare hospice benefit is available for patients who elect palliative treatment (medical care focused on providing patients with relief from pain, symptoms or stress) for a terminal illness and have a life expectancy of six months or less if their illness runs its normal course. Before billing Medicare, a hospice provider is obligated to comply with Medicare requirements and ensure that patients who are foregoing curative care are in need of end of life care.
The government alleged that Guardian submitted or caused the submission of false claims for hospice care for patients who Guardian knew were not terminally ill. Specifically, the United States contended that Guardian’s business practices contributed to its submission of claims for patients who did not have a terminal prognosis of six months or less, including failing to properly train its staff and medical directors on the hospice eligibility criteria, setting aggressive targets to recruit and enroll patients, and failing to properly oversee the Atlanta hospice.
“Medicare payments to hospices are increasing every year,” said U.S. Attorney John A. Horn of the Northern District of Georgia. “In order to preserve Medicare funds for services patients truly need, we will continue to pursue hospice providers who abuse the Medicare hospice benefit by billing Medicare for the care of patients who are not terminally ill.”
“Hospice care is only medically appropriate – and reimbursed by Medicare – for terminally ill patients who are in the last months of their lives,” said Special Agent in Charge Derrick L. Jackson of the U.S. Department of Health and Human Services-Office of Inspector General (HHS-OIG). “We will continue to vigorously investigate health care companies that put their own profits above their duty to give appropriate medical care to their patients and bill Medicare only for legitimate health care services.”
The settlement resolves allegations filed by Rose Betts and Jennifer Williams, former employees of Guardian, under the qui tam or whistleblower provisions of the False Claims Act, which authorize private parties to sue for false claims on behalf of the United States and share in the recovery. Ms. Betts and Ms. Williams will receive approximately $510,000.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $25.1 billion through False Claims Act cases, with more than $16.1 billion of that amount recovered in cases involving fraud against federal health care programs.
This matter was investigated by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office of the Northern District of Georgia, the FBI and HHS-OIG. The claims resolved by the settlement are allegations only and there has been no determination of liability.
The lawsuit is captioned U.S. ex rel. Betts, et al. v. Texas Home Health of America, L.P., et al., No. 1 12:CV-0412 (N.D. Ga.).
U.S. Attorney Polite Announces District-Wide Student Pledge Against Gun Violence DayRead the Press Release
United States Attorney Kenneth A. Polite announced that on Wednesday, November 4, 2015, members of the U.S. Attorney's Office for the Eastern District of Louisiana (the “Office”) and their law enforcement partners will meet with students across Southeast Louisiana as part of his Office’s second district-wide Student Pledge Against Gun Violence (“SPAGV”) Day.
Middle and high school students will sign a voluntary pledge promising that they will never take a gun to school, will never resolve a dispute with a gun, and will use their influence to prevent friends from using guns to resolve disputes. Elementary school children will make a simpler commitment, pledging that if they see a gun they will not touch it, they will assume that any gun they see might be loaded, and they will tell a teacher or a trusted adult.
In coordination with the Department of Justice’s Project Safe Neighborhoods program, the Student Pledge Against Gun Violence is a national program that recognizes the role that young people, through their own decisions, can play in reducing gun violence. This campaign against youth gun violence culminates each October in a Day of National Concern about Young People and Gun Violence. Students from around the country will join together in pledging to do their part to end gun violence. Over 10 million students nationwide have signed the pledge since its inception in 1996.
Last year, over 30,000 students at approximately 70 schools participated in the Office’s first SPGV Day. This year’s event is once again expected to include schools from all 13 parishes in the Eastern District of Louisiana, namely Assumption, Jefferson, Lafourche, Plaquemines, Orleans, St. Bernard, St. Charles, St. James, St. John the Baptist, St. Tammany, Tangipahoa, Terrebonne, and Washington. "Our Office is pleased to take this opportunity to reach out to students, engage in a dialogue about gun violence and the importance of making right choices, and encourage them to become peacemakers of our time," stated U.S. Attorney Polite.
In addition to providing the pledges, the U.S. Attorney’s Office will coordinate with other state, local, and federal law enforcement agencies to provide speakers at several schools to talk to students about what they can do to reduce gun violence in their communities.
If your school is interested in participating in the SPAGV Day, please contact Shane M. Jones at 504-680-3000 or [email protected], or visit our website at www.justice.gov/usao-edla.
Two Members of Camden Drug Trafficking Organization Sentenced to Prison for Roles in Conspiracy to DistributeRead the Press Release
CAMDEN, N.J. – Two Camden men were sentenced to prison in connection with their roles as set workers in a large-scale drug trafficking organization (DTO) that distributed cocaine base, cocaine, and/or heroin, U.S. Attorney Paul J. Fishman announced today.
Marqueis Thomas Randall, a/k/a “Marty,” 23, was sentenced to 100 months in prison; Elquinzie Lewis, 23, was sentenced Sept. 29, 2015, to 48 months in prison. Randall previously pleaded guilty before U.S. District Judge Robert B. Kugler in Camden federal court to a superseding information charging him with one count of conspiracy to distribute and to possess with intent to distribute 28 grams or more of cocaine base and 100 grams or more of heroin, and one count of being a previously convicted felon in possession of a firearm. Lewis previously pleaded guilty before Judge Kugler to a superseding information charging him with using a communications facility to further a drug trafficking crime.
In April 2013, seven alleged members of the drug trafficking organization were charged by criminal complaint with conspiring to distribute cocaine base, cocaine, and heroin. The five remaining defendants are scheduled for trial on Jan. 11, 2016.
According to documents filed in this case and statements made in court:
The organization controlled an area that includes the area of Eighth and Tulip Streets, a retail shopping plaza in the 700 block of Morgan Boulevard, and areas within the Crestbury Apartments public housing project, located in the 2500 block of South Eighth Street. The investigation into the organization involved physical surveillance, confidential informants, telephone wiretaps, controlled drug purchases, and record checks. In one recorded conversation from the wiretap, one of the alleged leaders told Lewis: “My thing is loyalty. You rolling with us, you got loyalty. You all right. You rolling with us that mean everybody you see got your back a hundred percent, like that’s what I mean by loyalty. It’s bigger than what’s just going on.”
In addition to the prison term, Judge Kugler sentenced Randall to five years of supervised release and sentenced Lewis to one year of supervised release.
The charges and allegations against the remaining defendants are merely accusations, and the defendants are considered innocent unless and until proven guilty.
The government is represented by Special Assistant U.S. Attorney Erin M. Fay and Assistant U.S. Attorney Jason Richardson of the Camden office.
U.S. Attorney Fishman credited special agents of the FBI’s South Jersey Violent Offender and Gang Task Force, Philadelphia Division, under the direction of FBI Special Agent in Charge William F. Sweeney Jr.; the Camden County Prosecutor’s Office, under the direction of Prosecutor Mary Eva Colalillo; the Camden City Police Department, under the direction of Chief Scott Thomson; the N.J. State Police, under the direction of Col. Rick Fuentes; and the Camden Collaborative Crime Commission (C4), with the investigation leading to today’s sentencings. He also thanked the Philadelphia Police Department, the N.J. Parole Board, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the N.J. Division of Criminal Justice, the Voorhees Police Department, the Gloucester County Prosecutor’s Office, the Salem County Prosecutor’s Office, the Camden County Sheriff’s Office, the Woodbury Police Department and the Pennsauken Police Department for their roles in the case.
This case was developed through the work of C-4. Every federal, state and local law enforcement agency and prosecutor’s office responsible for combating drug trafficking, gang activity and violent crime in Camden has come together in one location to share intelligence, develop investigative strategies and support the investigative and prosecutorial efforts of its partners. C-4 has merged the individual missions of the various law enforcement agencies into a single strategic attack on drug trafficking and drug-related violent crime. Such intense coordination greatly enhances the law enforcement community’s ability to correctly identify and successfully prosecute the most dangerous criminals in one of our nation’s most dangerous cities.
Two Lewisburg Federal Prison Inmates Charged with Assault on Another InmateRead the Press Release
WILLIAMSPORT - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that charges have been filed in U.S. District Court in Williamsport against Loren N. Smith and Jessy A. Nelson, who are currently confined at the U.S. Penitentiary, Lewisburg, Pennsylvania.
According to United States Attorney Peter Smith, Nelson, age 30, and Smith, age 36, are charged in separate one-count felony Informations with allegedly assaulting another Lewisburg inmate by punching and kicking him in the head in December 2014.
The government filed plea agreements with each defendant which are subject to approval by the court.
The investigation was conducted by the Federal Bureau of Investigation, and the Bureau of Prisons Special Investigative Service. Assistant United States Attorney Wayne P. Samuelson has been assigned to prosecute the cases.
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 guilty is imposed by the Judge after consideration of the applicable federal sentencing statues and the Federal Sentencing Guidelines.
In both cases, the maximum penalty under the federal statutes is 10 years imprisonment, a term of supervised release following imprisonment, and a fine of $250,000. 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 necessarily an accurate indicator of the potential sentence for a specific defendant.
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Two Jacksonville Men Plead Guilty to Aggravated Identity Theft, Attempted Bank Fraud, and Possession of Counterfeit SecuritiesRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces that Jacksonville residents Hezekiah Williams (59) and David Lee Mitchell (53) have pleaded guilty to attempted bank fraud, possession of counterfeit business checks, and aggravated identity theft. Each faces a maximum penalty of 30 years in federal prison for the attempted bank fraud charge and up to 10 years in prison for the possession of counterfeit securities charge, to be followed by a consecutive mandatory minimum of 2 years’ imprisonment for the aggravated identity theft offense.
According to the plea agreement, on November 23, 2014, troopers with the Florida Highway Patrol pulled over a vehicle occupied by Williams, Mitchell, and Travis Ware. During the traffic stop, the troopers observed marijuana inside the SUV. A search of the vehicle revealed 25 counterfeit business checks made out to various individuals and 15 forms of identification from 7 different people. Many of the names on the identification documents matched those printed on the counterfeit checks. Further investigation determined that Mitchell, Williams, and Ware had been driving around three days earlier attempting to fraudulently cash the counterfeit checks and recruiting others to use the ids to cash the checks.
Travis Ware is set to begin trial on November 2, 2015.
An indictment is merely a formal charge that a defendant has violated one or more federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Florida Highway Patrol and the United States Secret Service, Jacksonville Field Office. It will be prosecuted by Assistant United States Attorney Kevin C. Frein.
Twin Brothers Sentenced for Wire Fraud, Conspiring to Hack into U.S. Department of State and Private CompanyRead the Press Release
Twin brothers Muneeb and Sohaib Akhter, 23, of Springfield, Virginia, were sentenced today for conspiracy to commit wire fraud, conspiracy to access a protected computer without authorization and conspiracy to access a government computer without authorization. Muneeb Akhter was also sentenced for accessing a protected computer without authorization, making a false statement and obstructing justice. Muneeb Akhter was sentenced to 39 months in prison and Sohaib Akhter was sentenced to 24 months in prison. Each man was also sentenced to three years of supervised release.
“The Akhter brothers’ misuse of their computer skills harmed numerous individuals and companies, and their efforts to gain clandestine access to State Department systems represented a threat to national security,” said U.S. Attorney Dana J. Boente for the Eastern District of Virginia. “Electronic barriers are no less real, or legitimate, than physical ones. This prosecution sends a clear message to anyone else attempting to weaken the cybersecurity of institutions or use computers to commit crimes.”
The Akhter twins were indicted by a federal grand jury on April 30, 2015, and pleaded guilty on June 26, 2015. According to court documents, beginning in or about March 2014, Muneeb Akhter hacked into the website of a cosmetics company and stole thousands of its customers’ credit card and personal information. The Akhter brothers and co-conspirators used the stolen information to purchase goods and services, including flights, hotel reservations and attendance at professional conferences. Muneeb Akhter also provided stolen information to an individual he met on the “dark net,” who sold the information to other dark-net users and gave Akhter a share of the profits.
In a separate scheme, the Akhter brothers and co-conspirators engaged in a series of computer intrusions and attempted computer intrusions against the U.S. Department of State to obtain sensitive passport and visa information and other related and valuable information about State Department computer systems. In or around February 2015, Sohaib Akhter used his contract position at the State Department to access sensitive computer systems containing personally identifiable information belonging to dozens of co-workers, acquaintances, a former employer and a federal law enforcement agent investigating his crimes.
Sohaib Akhter later devised a scheme to ensure that he could maintain perpetual access to desired State Department systems. Sohaib Akhter, with the help of Muneeb Akhter and co-conspirators, attempted to secretly install an electronic collection device inside a State Department building. Once installed, the device could have enabled Sohaib Akhter and co-conspirators to remotely access and collect data from State Department computer systems. Sohaib Akhter was forced to abandon the plan during its execution when he broke the device while attempting to install it behind a wall at a State Department facility in Washington, D.C.
Furthermore, beginning in or about November 2013, Muneeb Akhter was performing contract work for a private data aggregation company located in Rockville, Maryland. He hacked into the company’s database of federal contract information so that he and his brother could use the information to tailor successful bids to win contracts and clients for their own technology company. Muneeb Akhter also inserted codes onto the victim company’s servers that caused them to vote for Akhter in an online contest and send more than 10,000 mass emails to students at George Mason University, also for the purpose of garnering contest votes.
In or about October 2014, Muneeb Akhter lied about his hacking activities and employment history on a government background investigation form while successfully obtaining a position with a defense contractor. Furthermore, in or about March 2015, after his arrest and release pending trial, Muneeb Akhter obstructed justice by endeavoring to isolate a key co-conspirator from law enforcement officers investigating the conspirators’ crimes. Among other acts, Muneeb Akhter drove the co-conspirator to the airport and purchased a boarding pass, which the co-conspirator used to travel out of the country to the Republic of Malta. When the co-conspirator returned to the United States, Muneeb Akhter continued to encourage the co-conspirator to avoid law enforcement agents.
U.S. Attorney Dana J. Boente for the Eastern District of Virginia; Acting Chief Security Officer Charles R. Taylor for Department of Homeland Security (DHS); Assistant Secretary Gregory B. Starr for the U.S. Department of State’s Bureau of Diplomatic Security; and Assistant Director in Charge Paul M. Abbate of the FBI’s Washington Field Office, made the announcement after sentencing by U.S. District Judge T.S. Ellis, III.
This case was investigated by the Internal Security and Investigations Division of the Office of the Chief Security Officer, DHS Headquarters; the U.S. Department of State’s Bureau of Diplomatic Security, and FBI’s Washington Field Office. Special Assistant U.S. Attorneys John Taddei and Jennifer Clarke 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. 1:15-cr-124.
Twin Brothers Sentenced for Wire Fraud, Conspiring to Hack into U.S. Department of State and Private CompanyRead the Press Release
ALEXANDRIA, Va. – Twin brothers Muneeb and Sohaib Akhter, 23, of Springfield, were sentenced today for conspiracy to commit wire fraud, conspiracy to access a protected computer without authorization, and conspiracy to access a government computer without authorization. Muneeb Akhter was also sentenced for accessing a protected computer without authorization, making a false statement, and obstructing justice. Muneeb Akhter was sentenced to 39 months in prison, and Sohaib Akhter was sentenced to 24 months in prison. Each man was also sentenced to three years of supervised release.
“The Akhter brothers’ misuse of their computer skills harmed numerous individuals and companies, and their efforts to gain clandestine access to State Department systems represented a threat to national security,” said Dana J. Boente, U.S. Attorney for the Eastern District of Virginia. “Electronic barriers are no less real, or legitimate, than physical ones. This prosecution sends a clear message to anyone else attempting to weaken the cybersecurity of institutions or use computers to commit crimes.”
The Akhter brothers were indicted by a federal grand jury on April 30, 2015, and pleaded guilty on June 26, 2015. According to court documents, beginning in or about March 2014, Muneeb Akhter hacked into the website of a cosmetics company and stole thousands of its customers’ credit card and personal information. The Akhter brothers and co-conspirators used the stolen information to purchase goods and services, including flights, hotel reservations, and attendance at professional conferences. Muneeb Akhter also provided stolen information to an individual he met on the “dark net,” who sold the information to other dark-net users and gave Akhter a share of the profits.
In a separate scheme, the Akhter brothers and co-conspirators engaged in a series of computer intrusions and attempted computer intrusions against the U.S. Department of State to obtain sensitive passport and visa information and other related and valuable information about State Department computer systems. In or around February 2015, Sohaib Akhter used his contract position at the State Department to access sensitive computer systems containing personally identifiable information belonging to dozens of co-workers, acquaintances, a former employer, and a federal law enforcement agent investigating his crimes.
Sohaib Akhter later devised a scheme to ensure that he could maintain perpetual access to desired State Department systems. Sohaib Akhter, with the help of Muneeb Akhter and co-conspirators, attempted to secretly install an electronic collection device inside a State Department building. Once installed, the device could have enabled Sohaib Akhter and co-conspirators to remotely access and collect data from State Department computer systems. Sohaib Akhter was forced to abandon the plan during its execution when he broke the device while attempting to install it behind a wall at a State Department facility in Washington, D.C.
Furthermore, beginning in or about November 2013, Muneeb Akhter was performing contract work for a private data aggregation company located in Rockville, Maryland. He hacked into the company’s database of federal contract information so that he and his brother could use the information to tailor successful bids to win contracts and clients for their own technology company. Muneeb Akhter also inserted codes onto the victim company’s servers that caused them to vote for Akhter in an online contest and send more than 10,000 mass emails to students at George Mason University, also for the purpose of garnering contest votes.
In or about October 2014, Muneeb Akhter lied about his hacking activities and employment history on a government background investigation form while successfully obtaining a position with a defense contractor. Furthermore, in or about March 2015, after his arrest and release pending trial, Muneeb Akhter obstructed justice by endeavoring to isolate a key co-conspirator from law enforcement officers investigating the conspirators’ crimes. Among other acts, Muneeb Akhter drove the co-conspirator to the airport and purchased a boarding pass, which the co-conspirator used to travel out of the country to the Republic of Malta. When the co-conspirator returned to the United States, Muneeb Akhter continued to encourage the co-conspirator to avoid law enforcement agents.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Charles R. Taylor, Acting Chief Security Officer, Department of Homeland Security (DHS); Gregory B. Starr, Assistant Secretary for the U.S. Department of State’s Bureau of Diplomatic Security; and Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after sentencing by U.S. District Judge T.S. Ellis, III.
This case was investigated by the Internal Security and Investigations Division of the Office of the Chief Security Officer, DHS Headquarters; the U.S. Department of State’s Bureau of Diplomatic Security, and FBI’s Washington Field Office. Special Assistant U.S. Attorneys John Taddei and Jennifer Clarke 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. 1:15-cr-124.
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Ten Charged in Cocaine and Crack Cocaine Distribution ConspiracyRead the Press Release
LUBBOCK, Texas — Ten defendants have been charged in a federal indictment with felony offenses stemming from their role in a cocaine and crack cocaine distribution conspiracy, announced U.S. Attorney John Parker of the Northern District of Texas.
Most of the defendants, from the Lubbock, Texas, area were arrested last week in a joint operation led by the Texas Department of Public Safety, with assistance from the Drug Enforcement Administration, the U.S. Marshals Service, the Lubbock and Terry County Sheriff’s Offices, the Lubbock Police Department, and the Hockley, Lamb, and Lubbock County District Attorney’s Offices. The U.S. Marshals Service arrested Tabatha Williams in Fort Myers, Florida. Two defendants, Joshua Cubit and Mackie Washington, were in state custody on unrelated charges.
Some detention hearings are set for Wednesday, October 7, 2015. A November 2, 2015, trial date, before U.S. District Judge Sam R. Cummings, has been set.
The 24-count indictment, just unsealed, charges each of the following with one count of conspiracy to possess with intent to distribute controlled substances:
Timothy Paul Adame, 28
Jaime Lee Escalante, 33
Jerry Don Watley, II, 37
Joshua Deshawn Cubit, 27
Freddrick Lamont Huey, 33
Tyrone Bernard Williams, 32
Dianne M. Winn, 40
Mackie Lee Washington, Sr., 58
Tabatha Roxana Williams, 44
Juan Bernard Ledesma, 27In addition, Adame is charged with one count of distribution and possession with intent to distribute 28 grams or more of cocaine base; one count of possession with intent to distribute 500 grams or more of cocaine; and one count of possessing a firearm in furtherance of a drug trafficking crime.
Watley is also charged with one count of distribution and possession with intent to distribute cocaine; nine counts of distribution and possession with intent to distribute cocaine base; one count of possession with intent to distribute 280 grams or more of cocaine base; and one count of possession with intent to distribute cocaine.
Huey is also charged with two counts of distribution and possession with intent to distribute cocaine base.
Tyrone Williams is also charged with one count of possession with intent to distribute cocaine.
Winn is also charged with one count of distribution and possession with intent to distribute cocaine and one count of possession with intent to distribute cocaine base.
Washington is also charged with one count of possession with intent to distribute cocaine base.
Tabatha Williams is also charged with three counts of distribution and possession with intent to distribute cocaine base and one count of possession with intent to distribute cocaine base.
A federal indictment is an accusation by a grand jury. A defendant is entitled to the presumption of innocence unless proven guilty. If convicted, however, the conspiracy count carries a maximum statutory penalty of 20 years in federal prison and a $1 million fine. The other drug counts carry a maximum statutory penalty ranging from 20 years to life imprisonment. The firearm count carries a statutory penalty of not less than five years or more than life in federal prison and a $250,000 fine.
Assistant U.S. Attorney Jeffrey Haag is in charge of the prosecution.
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Stamford Attorney Sentenced to Prison for Role in Mortgage Fraud SchemeRead the Press Release
The United States Attorney for the District of Connecticut today announced that CHRISTOPHER BRECCIANO, 37, of Stamford, was sentenced yesterday by Chief U.S. District Judge Janet C. Hall in New Haven to 14 months of imprisonment, followed by five years of supervised release, for conspiring to defraud financial institutions through an extensive mortgage fraud scheme that involved dozens of properties in Fairfield County.
According to court documents and statements made in court, between 2006 and 2010, BRECCIANO, while working as an associate at a Stamford law firm, participated in mortgage fraud conspiracy that involved the purchase of numerous single and multi-family properties, primarily in Bridgeport, Norwalk and Stamford. BRECCIANO acted as a closing attorney for at least 50 mortgage loan transactions in which materially false information was provided to mortgage lenders by BRECCIANO or his co-conspirators. The fraudulent information included false verifications of down payments for real estate transactions, false deeds, and false HUD-1 Forms. In many of the transactions, BRECCIANO knew that the borrower was a “straw buyer,” and that other individuals intended to control the property and collect rent from the property. In many transactions, BRECCIANO distributed mortgage loan funds to the straw buyer and other co-conspirators at the closing.
Many of these properties ended up in foreclosure, or in short sale transactions. BRECCIANO also was involved in many short sale transactions in which he knew that the buyer and seller were working together to retain control of the property while representing to the lender that the sale was an arm’s length transaction.
Through this scheme, lenders suffered losses of more than $8 million.
BRECCIANO was ordered to pay restitution in the amount of $8,406,638.
On February 12, 2014, BRECCIANO pleaded guilty to one count of conspiracy to commit wire fraud and bank fraud.
This investigation is being conducted by the Federal Bureau of Investigation and the Federal Housing Finance Agency – Office of Inspector General. The criminal case is being prosecuted by Assistant U.S. Attorneys Heather Cherry and Avi Perry, and the parallel civil forfeiture cases are being handled by Assistant U.S. Attorney Julie G. Turbert.
Six Individuals Indicted for Conspiracy to Distribute Controlled SubstancesRead the Press Release
CONCORD, N.H. – Acting United States Attorney Donald Feith announced today that a federal Grand Jury has returned an indictment against six individuals:
Mara Morillo (40) of Haverhill, Massachusetts
Franklyn Morillo (40) of Haverhill, Massachusetts
Juan Rojas (31) of Haverhill, Massachusetts
Justin Bartimus (34) of Methuen, Massachusetts
Jorge Medina (24) of Brentwood, New Hampshire
Michael Lally (27) of Salem, New Hampshire
All six individuals have been charged with conspiring to distribute, and possess with intent to distribute, oxycodone and cocaine. Bartimus is also charged with distributing oxycodone. Rojas also is charged with possessing a firearm in furtherance of a drug trafficking crime.
Rojas is currently detained in Massachusetts. The other defendants were arrested on October 1, 2015, and are being held pending detention hearings next week.
The drug conspiracy and distribution charges are punishable by up to 20 years in prison, a fine of $1 million and at least three years of supervised release. The firearm charge is punishable by a minimum of five years in prison and as much as life imprisonment, as well as a $250,000 fine, and up to five years of supervised release.
The charges and allegations contained in an indictment are merely accusations. A defendant is presumed innocent until and unless proven guilty.
This investigation was the product of an investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). 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. This particular investigation involved cooperative efforts of federal and local law enforcement entities, including the Drug Enforcement Administration, the Haverhill, Massachusetts Police Department, the Massachusetts State Police, the New Hampshire State Police, and the Essex County District Attorney’s Office. The case is being prosecuted by Assistant U.S. Attorneys John J. Farley.
Six Cuban Nationals Indicted for Conspiracy to Commit Access Device Fraud, Access Device FraudRead the Press Release
U.S. Attorney Kenneth A. Polite announced today that six Cuban nationals who reside in Florida were indicted today for conspiracy to commit access device fraud and two counts of access device fraud today.
JULIET ESTRADA PEREZ, age 22; LUIS RIVERA GARCIA, age 26, JESUS ENRIQUE GONZALES TORRES, age 23, ORLANDO GUILLEN DIAZ, age 29, YOETNIS VAZQUEZ PEDROSA, age 31, and YILIAM TORRES, age 23, were charged with possessing fifteen or more unauthorized and counterfeit access devices, as well as producing, possessing, and trafficking device-making equipment. According to the indictment, the defendants traveled from Florida in late July of this year and conspired to place card skimming devices on gas pumps in the New Orleans area. The conspirators are further charged with, among other things, possessing a card encoding machine and a card embossing machine.
On the conspiracy charge, each defendant faces a maximum penalty of not more than five years of imprisonment. For possessing more than fifteen unauthorized and counterfeit access devices, each defendant faces a maximum of ten years in prison. In addition, the count related to device-making equipment carries a maximum penalty of fifteen years imprisonment. The defendants further face terms of supervised release, fines, and restitution obligations upon conviction.
U. S. Attorney Polite reiterated that the Indictment is merely a charge and that the guilt of the defendants must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of Jefferson Parish Sheriff’s Office, the United States Secret Service, and Homeland Security Investigations in investigating this matter. Assistant U.S. Attorney Hayden Brockett is in charge of the prosecution.
Previously Removed Alien Pleads Guilty to Illegal Re-EntryRead the Press Release
ALBANY, NEW YORK – Rafael Zapata, age 67, of the Dominican Republic, pleaded guilty today to illegally re-entering the United States following removal, announced United States Attorney Richard S. Hartunian and Border Patrol Chief Patrol Agent John C. Pfeifer.
Zapata faces a maximum of 20 years in prison, a maximum $250,000 fine, and a term of supervised release of up to 3 years when he is sentenced on February 3, 2016 by United States District Judge Mae A. D’Agostino.
Zapata pleaded guilty to a violation of the Immigration and Nationality Act (INA), which prohibits previously removed aliens from entering, attempting to enter, or being found in the United States without permission.
Zapata was encountered on July 28, 2015 by St. Regis Mohawk Tribal Police officers after crossing the border on the Akwesasne Reservation near Hogansburg, New York. Border Patrol agents responded and arrested Zapata when they determined that he was an alien unlawfully present in the United States. A check of Zapata’s fingerprints by Border Patrol indicated that he had been deported and removed from the United States to the Dominican Republic in 2008 after being convicted of a drug trafficking crime in 2003 in the United States District Court for the Southern District of New York.
This case was investigated by the United States Border Patrol with assistance from the St. Regis Mohawk Tribal Police Department, and is being prosecuted by Assistant U.S. Attorney Edward P. Grogan.
Pope County Man Sentenced on Methamphetamine Related ChargesRead the Press Release
A Pope County man was sentenced on October 1, 2015, to 16 years in federal prison on methamphetamine related charges, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today.
Colt V. Lynn, 30, of Golconda, Illinois, was convicted on June 23, 2015, following a two day jury trial on a two-count indictment alleging he conspired with others to manufacture methamphetamine. Count 1 charged that from January 11, 2013, until on or about January 15, 2013, in Pope, Union, and Saline Counties, Lynn knowingly conspired to manufacture methamphetamine. Count 2 charged that from January 11, 2013, until on or about January 15, 2013, in Pope, Union, and Saline Counties, Lynn knowingly and intentionally possessed pseudoephedrine pills knowing they would be used to manufacture methamphetamine.
The investigation in this case was conducted by the Pope County, Illinois, Sheriff’s Department, the Pope County, Illinois, State’s Attorney’s Office, the Pope County, Illinois, Probation Office, the Golconda, Illinois, Police Department, the Massac County, Illinois, Sheriff’s Department, and the Illinois State Police.
The case was prosecuted by Assistant United States Attorney Thomas E. Leggans.
Pennsylvania Man Charged with “Sextorting” Massachusetts College StudentRead the Press Release
BOSTON – A Pennsylvania man who threatened to publicly disseminate sexually explicit images of a Boston-area college student unless she provided him with additional images was arrested yesterday and charged with extortion.
James F. Connor V, 19, of West Chester, Pa., was charged with one count of extortion. He was ordered detained during an initial appearance yesterday in U.S. District Court in Philadelphia.
According to the criminal complaint, Connor engaged in a version of blackmail, called “sextortion,” which involves threats to publicly release revealing images of a person in order to extort sexual favors. Connor and the victim, a student at a Boston-area university, met through social media and developed a relationship in 2012. In the course of that relationship, the victim sent Connor naked pictures through Snapchat, a video messaging app, and engaged in sexually explicit video chats with Connor using FaceTime. Connor allegedly preserved these images without her consent. After the relationship ended, Connor began blackmailing the victim by threatening to release the sexually explicit images to her parents and Twitter followers if she did not continue sending naked pictures and engaging in sexually explicit video chats with him. Connor also insisted that she break up with her current boyfriend.
The charging statute provides a sentence of no greater than two years in prison, one year 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 Joseph R. Bonavolonta, Acting Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Jordi de Llano of Ortiz’s Major Crimes Unit.
Operator of $228 Million Fraudulent Tax Refund Scheme Sentenced to Prison and Ordered to Pay $1.7 Million in Restitution to Internal Revenue ServiceRead the Press Release
A resident of Reseda, California, was sentenced to prison today for conspiring to submit false claims, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and Acting U.S. Attorney Brian J. Stretch of the Northern District of California.
Duffy R. Dashner, aka Kevin Dashner, 42, was sentenced to serve 57 months in prison to be followed by three years of supervised release and ordered to pay $1,769,418 in restitution to the Internal Revenue Service (IRS). He was detained following today’s sentence. On June 18, Dashner pleaded guilty to one count of conspiracy to submit false claims.
According to court documents, Dashner and his co-conspirators, including Mark R. Maness, operated a business called O.I.D. Process through which they helped others to prepare and file individual federal income tax returns that claimed false Original Issue Discount (OID) interest income and federal tax withholdings, resulting in fraudulent claims for tax refunds (OID returns). Dashner and Maness charged clients of O.I.D. Process a non-refundable registration fee to join the organization, and a 20 percent “refund acquisition fee” for any refund check issued by the IRS. Dashner and Maness also operated a website and conducted weekly conference calls with clients to promote their business and to assist clients in preparing and filing OID returns.
Dashner and Maness required clients of O.I.D. Process to change their mailing address with the IRS to the address of another co-conspirator who was an attorney in San Francisco. As a result, all correspondence from the IRS to the clients and the clients’ O.I.D. refund checks were sent to the attorney’s address rather than the clients’ home addresses. In this way, Dashner and Maness ensured they would receive a 20 percent refund acquisition fee. O.I.D. Process’s clients filed approximately 200 OID returns claiming refunds that totaled approximately $228 million.
Maness, who previously pleaded guilty to conspiracy to submit false claims against the United States, was sentenced in February 2015 to serve 41 months in prison and ordered to pay $1,176,668 in restitution to the IRS.
Acting Assistant Attorney General Ciraolo and Acting U.S. Attorney Stretch commended the efforts of special agents of IRS-Criminal Investigation, who investigated the case, and Assistant U. S. Attorney Michael G. Pitman of the Northern District of California and Trial Attorney Matthew J. Kluge of the Tax Division, who prosecuted the case.
Operator of $228 Million Fraudulent Tax Refund Scheme Sentenced to 57 Months’ ImprisonmentRead the Press Release
SAN FRANCISCO – Duffy R. Dashner (a/k/a Kevin Dashner) was sentenced to 57 months’ imprisonment for conspiring to submit false claims and ordered to pay restitution of $1,769,418 to the Internal Revenue Service announced Acting United States Attorney Brian J. Stretch, Acting Assistant Attorney General for the Tax Division Caroline D. Ciraolo, and Internal Revenue Service, Criminal Investigation, Acting Special Agent in Charge Thomas P. McMahon.
According to court documents, Dashner, 42, of Reseda, Calif., and his co-conspirators, including Mark R. Maness, operated a business called O.I.D. Process through which they helped others prepare and file individual federal income tax returns. In the returns, the filers claimed false Original Issue Discount (OID) interest income and federal tax withholdings resulting in fraudulent claims for tax refunds (OID returns). Dashner and Maness charged clients of O.I.D. Process a non-refundable registration fee to join the organization and a 20 percent “refund acquisition fee” for any refund check issued by the Internal Revenue Service (IRS). Dashner and Maness also operated a website and conducted weekly conference calls with clients to promote their business and to assist clients in preparing and filing OID returns.
Dashner and Maness required clients of O.I.D. Process to change their mailing address with the IRS to the address of another co-conspirator who was an attorney in San Francisco. As a result, all correspondence from the IRS to the clients and the clients’ refund checks were sent to the attorney’s address rather than to the clients’ home address. In this way, Dashner and Maness ensured they would receive a 20 percent refund acquisition fee. O.I.D. Process clients filed approximately 200 OID returns claiming refunds that totaled approximately $228 million.
Dashner was charged by indictment with one count of conspiracy to submit false claims, in violation of 18 U.S.C. § 286, and two counts of aiding and assisting in the presentation of a false income tax return, in violation of 26 U.S.C. § 7206(2). On June 18, 2015, Dashner pleaded guilty to one count of conspiracy to submit false claims, in violation of 18 U.S.C § 286.
Dashner’s sentencing hearing took place before the Honorable Susan Illston, United States District Judge, in San Francisco. In addition to the prison term, Dashner was ordered to pay $1.7 million in restitution to the IRS. Dashner will begin serving his prison term immediately.
Maness previously pleaded guilty to conspiracy to submit false claims against the United States and was sentenced in February 2015 to serve 41 months in prison, and ordered to pay $1,176,668 in restitution to the IRS.
United States Department of Justice Tax Division Trial Attorney Matthew J. Kluge and Assistant United States Attorney Michael G. Pitman are prosecuting the case. The prosecution is the result of an investigation by IRS-CI.
Ohio Lobbyist Agrees to Plead Guilty to ExtortionRead the Press Release
An Ohio lobbyist agreed today to plead guilty to extortion in connection with a bribery and fraud scheme involving conduit contributions to the campaigns of elected officials, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Carter M. Stewart of the Southern District of Ohio and Special Agent in Charge Angela L. Byers of the FBI’s Cincinnati Division.
John P. Raphael, 60, of Columbus, Ohio, agreed to plead guilty to a one-count information charging him with a violation of the Hobbs Act.
Raphael was a consultant and lobbyist based in Columbus. From March 2005 to February 2013, a red light camera enforcement company engaged Raphael to seek and obtain lucrative contracts with the cities of Columbus and Cincinnati. During that time, according to admissions made in his plea, which was filed today, Raphael conveyed to the company specific solicitations for campaign contributions on behalf of elected officials in Columbus and Cincinnati, and repeatedly pressured and induced the company to make contributions by advising the company that it would lose its contracts if it did not.
Raphael admitted that, as a result of his actions, the red light camera enforcement company made over $70,000 in campaign contributions, which were funneled through Raphael in his own name and in the names of his family members, friends and business associates.
The former chief executive officer of the red light camera vendor, Karen L. Finley, previously pleaded guilty to conspiracy to commit federal programs bribery and honest services wire and mail fraud.
The case is being investigated by the FBI’s Cincinnati Division, Columbus Resident Agency, with the assistance of IRS-Criminal Investigations and the Ohio Bureau of Criminal Investigation. The case is being prosecuted by Assistant U.S. Attorney J. Michael Marous of the Southern District of Ohio and Trial Attorney Edward P. Sullivan of the Criminal Division’s Public Integrity Section.
Norristown Bookmaker Gets Prison Term for Tax ChargesRead the Press Release
PHILADELPHIA - Jacob Corropolese, Sr., 65, of Norristown, PA, was sentenced today to 12 months and a day in prison for tax charges in connection with his sports bookmaking operation. On May 6, 2015, Corropolese pleaded guilty to two counts of filing false tax returns. Corropolese received more than $500,000 in proceeds from bettors when he ran a sports bookmaking operation but did not report any of the income on his federal income tax returns for 2010 and 2011. As a result he substantially underreported his income resulting in a total tax loss of $120,002.
In addition to the prison term, U.S. District Court Judge Jan E. DuBois ordered the defendant to cooperate with the IRS in its collection of $238,000 in taxes, interest, and penalties, including $50,000 paid today, a special assessment of $200, and one year of supervised release. Corropolese was ordered to report to prison by November 30, 2015.
This case was investigated by the Internal Revenue Service Criminal Investigations and the FBI. It was prosecuted by Assistant United States Attorney Nancy E. Potts.
New Orleans Man Indicted After Violating Federal Firearms LawsRead the Press Release
U.S. Attorney Kenneth Polite announced that JOSHUA JOHNSON, age 35, of New Orleans, was charged today in a one-count Indictment alleging violations of federal firearms laws.
JOHNSON was arrested by personnel of the New Orleans Police Department on July 9, 2015, and charged by the state for illegally carrying a weapon and possession of a firearm or weapon by a felon. At the time of his arrest, JOHNSON was under supervised release for a 2009 federal conviction for violations of federal narcotics laws.
The U.S. Attorney’s office adopted the case and a federal grand jury has returned an indictment against JOHNSON charging him with being a felon in possession of a firearm.
If convicted of the gun offense, JOHNSON faces at least ten years in prison, followed by three years of supervised release, and a $250,000 fine.
U.S. Attorney Polite reiterated that the Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S Attorney Polite praised the work of the Bureau of Alcohol, Tobacco, Firearms and Explosives with assistance of the New Orleans Police Department in investigating this matter. Assistant United States Attorney Elizabeth Privitera is responsible for the prosecution.
New Haven Man Sentenced to 10 Years in Federal Prison for Distributing Crack CocaineRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JAMES BOWMAN, also known as “Jimmy Jam,” 36, of New Haven, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 120 months of imprisonment, followed by five years of supervised release, for distributing crack cocaine.
BOWMAN is one of more than 100 individuals charged as a result of “Operation Bloodline,” a joint law enforcement investigation targeting narcotics trafficking and gang violence in the Dwight-Kensington and Fair Haven sections of New Haven. Led by the DEA New Haven Task Force and the New Haven and Hamden Police Departments, the year-long investigation included the use of court-authorized wiretaps on numerous telephones, extensive physical surveillance, controlled purchases of narcotics, execution of search warrants, and seizures of narcotics and firearms. The investigation revealed that BOWMAN operated a large-scale cocaine and crack cocaine trafficking operation in the greater New Haven area.
BOWMAN has been detained since his arrest on May 17, 2012. On December 2, 2014, he pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, 280 grams or more of cocaine base (“crack cocaine”).
This matter has been investigated by the Drug Enforcement Administration’s New Haven Task Force, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the New Haven, Hamden, West Haven, North Haven, Branford, Ansonia and Meriden Police Departments. The United States Marshals Service, the Connecticut State Police, the Connecticut Department of Correction, Parole and Community Services and the Milford, Hartford, New Britain, North Branford and Stratford Police Departments have provided valuable assistance to the investigation.
This case is being prosecuted by Assistant U.S. Attorneys S. Dave Vatti and Marc Silverman.
Michael DePalma, Louis Turcio, and Andrew Darling Indicted in Bath Salts ConspiracyRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Michael DePalma, 56, of Plainfield, New Hampshire, Louis Turcio, 51, of Springfield, Vermont, and Andrew Darling, 52, of North Walpole, New Hampshire, appeared today in United States District Court in Burlington following their arrests on a charge of conspiracy to distribute alpha-pyrrolidinopentiophenone, or a-PVP, commonly known as “flakka” or “bath salts.” In addition to the conspiracy charge, the September 24, 2015 indictment charged Turcio with possession with intent to distribute a-PVP on April 14, 2015, and possession of a firearm as a convicted felon. U.S. Magistrate Judge John M. Conroy ordered that Michael DePalma’s arraignment and detention hearing will occur on October 2, 2015. Judge Conroy also ordered that Darling and Turcio’s detention hearing will take place on October 6, 2015. All three defendants were ordered detained pending their detention hearings. If convicted of the drug conspiracy offense, DePalma, Turcio, and Darling face a maximum possible penalty of 20 years in prison and fines of up to $1,000,000. If convicted of the firearms charge, Turcio faces a maximum possible penalty of 10 years in prison.
According to court records, as part of a long-term investigation into bath salts distribution in the Springfield, Vermont area, law enforcement gathered evidence indicating that DePalma, Turcio, and Darling participated in a months-long enterprise involving the importation of bath salts for distribution in Springfield and neighboring areas. The alleged conspiracy involved the on-line ordering of substantial amounts of bath salts from a supplier in China, wiring of thousands of dollars overseas to purchase the product, and arranging for delivery of the bath salts to locations in Vermont and New Hampshire.
On April 14, 2015, law enforcement seized from Turcio approximately one kilogram of a-PVP in Springfield, Vermont. During the execution of a March 9, 2015 search warrant at Turcio’s residence, law enforcement recovered several handguns.
The United States Attorney’s Office emphasizes that the charges against DePalma, Darling, and Turcio are only accusations and they are presumed innocent unless and until they are proven guilty. Any sentences imposed in this case will be advised by the U.S. Sentencing Guidelines. U.S. Attorney Eric Miller commended the efforts of the agencies involved in this investigation, which include the Federal Bureau of Investigation, the Vermont Drug Task Force, the Springfield, Vermont Police Department, the U.S. Postal Inspection Service, the New Hampshire Drug Task Force, Homeland Security Investigations, and the Plainfield, New Hampshire Police Department.
The prosecution is being handled by Assistant U.S. Attorney Kevin J. Doyle. DePalma is represented by Jordana Levine, Esq., Darling is represented by Lisa B. Shelkrot, Esq., and Turcio is represented by Frank J. Twarog, Esq.
Media advisoryRead the Press Release
Indianapolis—United States Attorney Josh J. Minkler invites members of the Indianapolis media to join he and Marion County Juvenile Magistrate Judge Geoffrey Gaither at a rally at the Tindley Preparatory Academy. Recently, several young children in our city have lost their lives to senseless gun violence. Violence that seems to have a ripple effect in our communities, schools and families. The violence must stop!
Minkler and Gaither are calling for “all men” with an investment in this great city to join them before school starts on Monday, October 5, 2015 at 7:15am to greet and encourage the young men and demonstrate that our community cares about them. All in attendance will show their support by forming an Indy’s High-Five Line to greet these young men to start their school day.
All Indianapolis residents are encouraged to attend.
WHERE: Charles A. Tindley Preparatory Academy,
4010 North Sherman Drive, Indianapolis, Indiana 46226.
7:15 am
Media Advisory: Charges Against Former Prison GuardsRead the Press Release
Cedar Rapids, Iowa – The United States Attorney’s Office for the Northern District of Iowa and the Iowa Department of Corrections will hold a press conference on October 6th to discuss recent charging decisions involving four former Anamosa State Penitentiary correctional officers and one other individual.
U.S. Attorney Kevin Techau and IDOC Director Jerry Bartruff will be present at the press conference along with representatives from the Iowa Division of Criminal Investigation, Federal Bureau of Investigation and the North Liberty Police Department.
Event Details
When: Tuesday, October 6, 2015
Where: United States Federal Courthouse, 111 7th Avenue S.E., Cedar Rapids, Iowa
Time: 3:00 p.m. (Those expecting to attend should contact Assistant U.S. Attorney and Public Information Officer Steve Young no later than Monday, October 5th. His contact information is provided in this advisory.)
A press release will be provided and interview opportunities will be available after the press conference.
MedFast Pharmacy Manager Pleads Guilty in Misbranded Drug SchemeRead the Press Release
PITTSBURGH - A resident of Beaver County, Pennsylvania, pleaded guilty in federal court to a charge of conspiracy, United States Attorney David J. Hickton announced today.
Correna Pfeiffer, 37, of Monaca, PA, pleaded guilty to one count before United States District Judge Arthur J. Schwab.
In connection with the guilty plea, the court was told that Pfeiffer is a pharmacist who was the manager of the MedFast Institutional Pharmacy located at 2003 Sheffield Road, Aliquippa, in Beaver County. As manager she prepared and oversaw employees who prepared prescription medications for residents of nursing homes. MedFast had its delivery drivers pick up unused medications from the nursing homes and return them to the institutional pharmacy where employees unpackaged them and returned them to stock to be re-used in other prescriptions in violation of state law and federal law. As a result, drugs from different manufacturers with different lot numbers and different expiration dates were commingled in stock bottles. When it was necessary for employees to place lot numbers and expiration dates on prescriptions, the employees were instructed to use inaccurate and false information rendering the drugs “misbranded.” In addition, Medicare, Medicaid and other insurers were not reimbursed for the unused drugs, but they were billed for illegal, “misbranded” drugs.
Judge Schwab scheduled sentencing for Feb. 2, 2016. The law provides for a maximum sentence of five years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Nelson P. Cohen is prosecuting this case on behalf of the government.
The U.S. Food and Drug Administration-OCI, the Drug Enforcement Administration-Diversion Investigators, the Health and Human Service-OIG and the Office of Personnel Management-OIG conducted the investigation leading to the information in this case.
Man Sentenced for Failure to Register as A Sex OffenderRead the Press Release
United States Attorney Deborah R. Gilg announced today that Charles M. Perkins, Jr., age 50, was sentenced today by Senior United States District Judge Joseph for his conviction for failure to register as a sex offender. Perkins was sentenced to 18 months imprisonment to be followed by five years of supervised release.
Perkins, a transient, was originally convicted of first degree rape in Ohio in 1988. In 2006, he was convicted in Ohio of failure to register as a sex offender. In November of 2014, Perkins came to Nebraska and began living at the Sienna Francis House in Omaha. However, he failed to register as a sex offender with the Douglas County Sheriff’s Office.
This case was investigated by the United States Marshal’s Office.
Male Tourist from Wisconsin Arrested for Sex TraffickingRead the Press Release
SAN JUAN, P.R. – United States Magistrate Judge Marcos E. López authorized a criminal complaint charging Joseph Neil Bronson, Jr. with one count of Attempted Sex Trafficking of Children, announced United States Attorney Rosa Emilia Rodríguez-Vélez. Immigration and Customs Enforcement, Homeland Security Investigations (ICE-HSI) is in charge of the investigation.
According to the information contained in the affidavit submitted in support of the criminal complaint, on September 30th, 2015, the defendant responded to an advertisement on an internet-based classified website. The advertisement was listed as an “escort service” specializing in “young girls” in Puerto Rico. Bronson wrote that he liked girls with smaller bodies, who were between the ages of 10 and 12 years of age, for “full service,” and who were clean and shaved. In the communications, Bronson agreed to pay $200.00 an hour for sex with a 12 year old female and offered the place he was staying as the location in which the sex encounter would occur.
On October 1, 2015, HSI agents approached the defendant and placed him under arrest. Bronson possessed $300.00 in cash and the phone he used to communicate with the person whom he thought was in charge of the minor he was going to have sex with.
“The sexual exploitation of vulnerable individuals is an affront to fundamental rights and will not be tolerated on our Island. The defendant came to Puerto Rico thinking that he could have a sexual rendezvous with a minor. Our attorneys and law enforcement partners will vigorously investigate and prosecute the trafficking of human beings, and will uphold the rights of those subjected to modern-day slavery, whether for labor or for sexual exploitation. The children of Puerto Rico deserve no less,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico.
The case is being prosecuted by Assistant United States Attorney Elba Gorbea. If convicted, the defendant is facing a 15 years to life in prison. A criminal complaint contains only charges and is not evidence of guilt. A defendant is presumed to be innocent unless and until proven guilty.
If you have information about any sexual predators in your community or any child exploitation activity call 1-866-347-2423. For more information, visit: www.ICE.gov.
MS-13 Gang Leader Sentenced to 30 Months in PrisonRead the Press Release
ALEXANDRIA, Va. – Jose Eduardo Avalos, 30, of Charlotte, North Carolina, was sentenced today to 30 months in prison, followed by two years of supervised release for illegal re-entry into the United States after conviction of an aggravated felony.
Avalos, an El Salvadoran national, pleaded guilty on May 21, 2015. According to court documents, Avalos joined the Mara Salvatrucha (MS-13) criminal gang at age 13, and has identified his rank within the gang as a “nation leader”. He has illegally entered the United States three times, and has twice been removed following criminal convictions. His first removal in 2004 came after a being convicted of carnal knowledge of a child 13 to 15 years old; while his second removal came in 2011 after being convicted of illegal re-entry and possession of a stolen firearm. Avalos will be removed from the U.S. for a third time following the completion of his prison sentence.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Yvonne Evans, Field Office Director of U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations (ERO), made the announcement after sentencing by U.S. District Judge Gerald Bruce Lee. Special Assistant U.S. Attorneys William A. Glaser and Nima R.T. Binara 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. 1:15-cr-138
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Lubbock Man Who Admitted Possessing Child Pornography Involving a Prepubescent Child is Sentenced to 121 Months in Federal PrisonRead the Press Release
LUBBOCK, Texas — Michael Dennis Powers, 47, of Lubbock, Texas, was sentenced this morning by U.S. District Judge Sam R. Cummings to 121 months in federal prison, following his guilty plea June 2015 to one count of possession of prepubescent child pornography, announced U.S. Attorney John Parker of the Northern District of Texas.
Judge Cummings remanded Powers, who had been on bond, into custody.
According to documents filed in the case, Powers admitted using a computer at his residence to, among other things, search the Internet for child pornography. In the course of searching for this material, Powers located, downloaded, and viewed numerous files containing child pornography. Powers knew that some of those files were produced using prepubescent minors engaging in sexually explicit conduct. On April 9, 2015, Powers was in possession of three computer disks containing the child pornography.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The FBI and the Lubbock Police Department investigated. Assistant U.S. Attorney Steven M. Sucsy prosecuted.
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Lone Tree businessman sentenced for conspiracy involving false statements to SBA and false income tax returnsRead the Press Release
DENVER – Hemal Ramesh Jhaveri, the owner and former CEO of SofTec Solutions Inc. of Englewood, Colorado, was sentenced in federal court in Denver earlier this week to six months in prison. Jhaveri pleaded guilty earlier this year to conspiring to commit the crimes of making false statements to influence the Small Business Administration (SBA) and of filing false federal income tax returns. The conspiracy began in 2006 and continued to 2013.
Chief Judge Marcia Krieger of the U.S. District Court, who imposed the sentence, ordered Jhaveri to serve a two-year term of supervised release following his release from incarceration, perform one thousand hours of community service, and pay a fine of $250,000. Prior to the sentencing hearing, Jhaveri paid restitution to the Internal Revenue Service in the amount of $1,171,179. Jhaveri, age 52, is a resident of Lone Tree, Colorado.
A Plea Agreement and other documents that were filed in the case described the factual basis for Jhaveri’s guilty plea:
The SBA’s 8(a) Business Development Program is available to small businesses that are owned by socially and economically disadvantaged individuals. A business ad- mitted to the program receives various benefits, including sole-source, or non-competitive, government contracts.
The SBA admitted SofTec Solutions to the program in 2001, and the company thereafter received sole-source contracts under which it provided clerical and administrative support and other services to federal departments and agencies. Following the start of the conspiracy in 2006, those departments and agencies paid SofTec Solutions more than seventeen million dollars pursuant to the contracts.
The SBA required SofTec Solutions to annually provide Jhaveri’s financial statements and other information, which the agency used to determine whether the company met the requirements to remain in the program. One requirement was that Jhaveri’s net worth remain under $750,000. Another was that his withdrawals from his company not exceed $300,000 in any fiscal year. In order to circumvent those rules, Jhaveri, with the assistance of his chief financial officer and others, diverted money from SofTec Solutions to bank accounts that Jhaveri controlled, to bank accounts of associates, and to other places for his personal use and benefit. The government took the position in court that the amount diverted was $4,494,305.79.
Some of the diverted funds were transferred to accounts in California, India, Hong Kong, and Singapore. At Jhaveri’s direction, SofTec Solutions’ CFO misrepresented in the company’s accounting records that those transfers were payments of business expenses, making it appear that those to whom the money was sent had provided services. The money in fact went to accounts controlled by Jhaveri’s associates, who deducted commissions and then, at his direction, passed on the remaining funds to his bank accounts. Jhaveri created false invoices and agreements to make it appear that there was support for the recording of the transfers as expenses.
Much of the other money diverted from SofTec Solutions was used for expenses related to a restaurant in Lone Tree in which Jhaveri had an interest. In January 2007, Jhaveri used $300,000, which was transferred from SofTec Solutions to his personal bank account, to make a partial payment for the purchase of the property where the restaurant was located. In 2008 and 2009, another $984,194.40 moved from SofTec Solutions to accounts of Jhaveri and related entities and used to pay restaurant ex- penses. And, in late 2009, after the restaurant had closed, $116,000 was moved out of SofTec Solutions to make mortgage payments and pay other expenses related to the restaurant property.
The remaining diverted funds included $40,000, which was wire transferred in March 2008 from SofTec Solutions to an account in Jhaveri’s name at ABN AMRO Bank in India. One year later, Jhaveri diverted $558,590.39 from his company and used it to make a partial payment for the purchase of his residence in Lone Tree. Also in March 2009, a SofTec Solutions check in the amount of $177,240 was made payable to the Internal Revenue Service to pay Jhaveri’s personal taxes. In late 2009, funds were transferred from SofTec Solutions to the account of a dormant Jhaveri-controlled company. Jhaveri used that money to make three alimony payments, each in the amount of $15,000.
As part of the conspiracy, the CFO of SofTec Solutions kept track of two different profit figures: “Profit per Books” and “True Profit.” The former was based on the company’s books, where the CFO had falsely classified the diverted money as expenses. The latter was a larger number, representing the profit the company would have recorded if the diverted money had not been booked falsely as expenses. In emails and memoranda, the CFO informed Jhaveri of the two numbers and explained the differences between the two.
Jhaveri never informed the SBA that money had been diverted from SofTec Solutions for his use and benefit. If he had provided that information, the government maintained, the SBA would have seen that his withdrawals from the company exceeded $300,000 in each of the years 2006 through 2009.
Beginning in 2006 and continuing to 2009, the annual financial statements that Jhaveri submitted to the SBA were, as he knew, false. They underreported the amounts of his cash on hand and in bank accounts, and they failed to report a condominium in Vail, Colorado, which he had bought for $740,000 in January 2006. The financial statements for the four years represented that Jhaveri’s net worth amounts were $186,000, $202,000, $218,000, and $587,942, respectively. If, however, the financial statements had included the value of the condominium and Jhaveri’s true bank-account balances, the SBA would have seen that each year the value of his assets was more than reported and his net worth was greater.
For each of the years 2006 through 2009, Jhaveri willfully filed federal income tax returns that were false in that they failed to report much of the diverted money as in- come. Because the diverted money was mischaracterized on SofTec Solutions’ books as expenses, it was not passed on to Jhaveri’s returns, as it should have been. The government took the position that the total amount of diverted money that was un- reported on Jhaveri’s returns for the four years was $3,349,111.39 and his failure to re- port it as such caused a tax loss of $1,171,179.
The investigation was conducted by special agents of the IRS Criminal Investigation division, the Offices of Inspectors General of the Small Business Administration and the General Services Administration, the Defense Criminal Investigative Service, and the Major Procurement Fraud Unit of the Army Criminal Investigation Command.
The defendant was prosecuted by the Economic Crime Section of the Colorado U.S. Attorney’s Criminal Division.
Lithuanian Woman Sentenced to 10 Years for Sex Trafficking of a ChildRead the Press Release
ALEXANDRIA, Va. – Giedre Ruseckaite, 24, a Lithuanian citizen who has resided in Nevada, was sentenced today to 120 months in prison for sex trafficking of a child.
Ruseckaite pleaded guilty on June 26, 2015. According to court documents, Ruseckaite was the girlfriend and most trusted assistant of Lenny Paul Haskins, 34, of Las Vegas, who was recently sentenced to 40 years in prison for sex trafficking of a child. She assisted Haskins in sex trafficking and prostituting two teenage girls, one of whom was 15 years old and the other was 17 years old. Haskins frequently provided women and girls who were prostituted with various drugs, including marijuana, ecstasy, liquor, a drug known as “molly,” a drug concoction known as “lean,” and other controlled substances so that they could work longer without sleep.
While Haskins was incarcerated he continued to run his sex trafficking business from jail. With the assistance of Ruseckaite, proceeds from the sex trafficking conspiracy were forwarded to Haskins while he was in jail so that he could purchase items and make telephone calls. Because jail calls are monitored, Haskins would give instructions via code words. Ruseckaite helped Haskins operate his venture in numerous ways, including assisting in the rental of hotel rooms where victims were prostituted; assisting in the collection of prostitution proceeds from victims; transporting victims; purchasing and distributing condoms to victims; advising the victims on how to perform sex acts; and assisting in the creation and posting of prostitution advertisements on Internet websites.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office; and Colonel Edwin C. Roessler, Jr., Chief of the Fairfax County Police Department, made the announcement after sentencing by U.S. District Judge Claude M. Hilton.
This case was investigated by the FBI’s Washington Field Office with substantial assistance from the Fairfax County Police Department and the Herndon Police Department. Assistant U.S. Attorney Michael Frank 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. 1:15-CR-157.
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Lisa Crinel, Abide Home Health, Inc., and Three Others Plead Guilty to Health Care Fraud-Related ChargesRead the Press Release
U.S. Attorney Kenneth A. Polite announced that LISA CRINEL, age 52; THREASA ADDERLEY, age 64; RHONDA MABERRY, age 48; SHEILA MATHIEU, age 46, all of New Orleans, and PCAH, INC. a/k/a PRIORITY CARE AT HOME, INC. d/b/a ABIDE HOME CARE SERVICES INC. pled guilty today to health care fraud-related charges.
LISA CRINEL pled guilty to Count 1 of the Indictment charging her with conspiracy to commit health care fraud and Count 2 of the Indictment charging her with conspiracy to pay and receive illegal kickbacks. CRINEL faces a maximum term of imprisonment of 10 years, a $250,000 fine, and 3 years of supervised release following imprisonment, as to Count 1 of the Indictment. As to Count 2, CRINEL faces a maximum term of 5 years imprisonment, a fine of $250,000, and a term of supervised release of up to three years. CRINEL owes restitution in the amount of $16,088,222 jointly and severally with her co-defendants. U.S. District Judge Susie Morgan set sentencing for January 13, 2016.
THREASA ADDERLEY pled guilty to Count 2 of the Indictment charging her with conspiracy to pay and receive illegal kickbacks. ADDERLEY faces a maximum term of 5 years imprisonment, a fine of $250,000, a term of supervised release of up to 3 years and owes any applicable restitution. ADDERLEY’s sentencing date is January 13, 2016
RHONDA MABERRY pled guilty to a one-count Superseding Bill of Information filed on October 1, 2015, charging her with conspiracy to commit health care fraud. MABERRY faces a maximum term of 5 years imprisonment, a fine of $250,000, a term of supervised release of up to 3 years, and owes restitution in the amount of not less than $272,982.61, as to Count 1 of the Superseding Bill of Information filed against her. U.S. District Judge Susie Morgan set sentencing for January 27, 2016.
SHEILA MATHIEU pled guilty to a one-count Superseding Bill of Information filed on October 1, 2015, charging her with aiding and abetting the theft of Government money or property. MATHIEU faces a maximum term of 1 year imprisonment, a fine of $100,000, a term of supervised release of up to 1 year, and owes any applicable restitution, as to Count 1 of the Superseding Bill of Information. MATTIEU’s sentencing date is January 27, 2016.
PCAH, INC. a/k/a PRIORITY CARE AT HOME, INC. d/b/a ABIDE HOME CARE SERVICES INC. (“ABIDE”) pled guilty to Count 1 of the Indictment, charging the company with conspiracy to commit health care fraud. ABIDE faces a maximum fine of $500,000, as to Count 1 of the Indictment, and agreed that restitution in the amount of $16,088,222 is jointly and severally due by ABIDE and its co-defendants. Sentencing is scheduled for January 16, 2016.
“Today’s guilty pleas are further evidence of our commitment to fighting health care fraud in our region,” stated U.S. Attorney Polite. “Those engaged in similar criminality should take note: our investigation in this case, and other related matters, is on-going.”
According to Court documents, CRINEL was the owner and operator of ABIDE, a business that provided home health care services to homebound individuals who were primarily Medicare beneficiaries. As the owner and Chief Operating Officer of ABIDE, CRINEL took a “100 percent hands on approach” that extended to “almost every aspect of the operation” of the business. Home health experts trained CRINEL and her staff on who qualified for home health and how home health services should be documented. Evidence seized at the search of ABIDE’s office established that CRINEL maintained ABIDE’s Medicare Provider Number and routinely certified on behalf of ABIDE that she would not knowingly present or cause to be presented false or fraudulent claims for payment by Medicare. Nevertheless, CRINEL instructed her staff not to discharge patients, even those who did not require home health services. ABIDE, under CRINEL’s direction also routinely falsified diagnoses codes and medical records to cause inflated reimbursements from Medicare. CRINEL and ABIDE created an atmosphere where RNs and other health care professionals would compromise their medical and ethical judgment in order to defraud Medicare. Court documents also show that CRINEL and ABIDE entered into sham employment contracts and medical director contracts with doctors and others to cover up the illegal kickback relationship between CRINEL, ABIDE, and those doctors and other individuals.
According to Court documents, ADDERLEY, was one of the physicians who entered into a sham contract with ABIDE to act as a medical consultant for the home health care agency. As such, she was required to submit monthly documentation detailing the services she provided to or on behalf of ABIDE. The agreements called for ADDERLEY to meet with ABIDE supervisors, at least annually, and to measure and evaluate overall performance of ABIDE. Quarterly meetings were also to be held to evaluate and discuss the ongoing home health program. ADDERLEY was also to perform in-services or educational programs to ABIDE and to review charts to determine if ABIDE was meeting expected outcomes. According to court documents, ADDERLEY didn’t give any in-service of any kind at ABIDE nor did she meet with ABIDE supervisors to measure and evaluate the performance of ABIDE personnel. ADDERLEY routinely compromised her medical judgment by certifying ineligible Medicare beneficiaries for home health provided by ABIDE who did not meet requirements for services because the patients were neither homebound nor medically in need of the services. Over the period covered by the Indictment, ABIDE paid ADDERLY more than $48,000 of Medicare funds for medically unnecessary home health billing.
According to Court documents, MABERRY worked as an Advanced Practice Registered Nurse who practiced under a collaborative agreement with a charged co-defendant/conspirator, DR. SHELTON BARNES. DR. BARNES, like ADDERLY, operated under sham contracts with ABIDE to perform medical director services. MABERRY was required to collaborate with DR. BARNES to initiate appropriate referrals for home health care based on current standards of practice and keep appropriate patient files. Both MABERRY and DR. BARNES were enrolled Medicare providers. Evidence establishes that ABIDE paid MABERRY for seeing patients that ABIDE sent MABERRY and that MABERRY approved every patient ABIDE referred to her for home health, whether or not medically necessary. Court documents also show that DR. BARNES signed the plans of care approving medically unnecessary home health services. MABERRY knew that at least half of the patients she saw for ABIDE or DR. BARNES were not homebound and did not qualify for home health. MABERRY received payments totaling approximately $272,982.61 from Medicare from January 2006 until December 2012, for home visits and care plan oversight for beneficiaries referred to ABIDE and certified as medically necessary for home health by DR. BARNES. The trial for DR. BARNES is presently scheduled for August 1, 2016, before U.S. District Judge Susie Morgan.
According to Court documents, MATHIEU worked as an RN for ABIDE, beginning in June 2012. Her duties included assessing the status of her patients, initiating a plan of care, evaluating patient needs, providing comprehensive nursing care, among other things. Payroll records would demonstrate that between July 5, 2012, and March 18, 2014, ABIDE paid MATHIEU approximately $48,794.69 for performing false and fraudulent home health certifications for episodes of home health which were largely medically unnecessary.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation in investigating this matter. Assistant U.S. Attorneys Patrice Harris Sullivan, Sharan Lieberman and Andre Lagarde are in charge of the prosecution.
Las Vegas Man Sentenced to over Nine Years in Prison for Receiving Videos and Images of Child RapeRead the Press Release
LAS VEGAS, Nev. – A Las Vegas man has been sentenced to 112 months in prison for receiving and possessing over 200 images and videos of child pornography, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.
“Many of the images and videos possessed and shared by the defendant depicted child rape,” said U.S. Attorney Bogden. “The images and videos were shared online through the use of a peer-to-peer network, which results in the re-victimization of the victims over and over again.”
Gregory Akel, 31, was sentenced on Oct. 1, by Senior U.S. District Judge Lloyd D. George. Akel was also placed on supervised release for the rest of his life and must pay $3,000 in restitution to one of the victims used in the pornographic images. Under the Sex Offender Registration and Notification Act, Akel will also be required to register as a sex offender where he lives, works, and goes to school. Akel pleaded guilty in March to one count of receipt of child pornography.
According to the court records, in March 2013, Las Vegas Metropolitan Police Department investigators working on the Internet Crimes Against Children Task Force (ICAC) determined that Las Vegas resident Akel was sharing child pornography on the file sharing network known as ARES. In August, investigators executed a search warrant at his apartment, and seized computers and equipment containing 39 images and 107 videos of child pornography. In early 2014, Special Agents with Homeland Security Investigations also determined that Akel was a source for child pornography on the ARES network, and that Akel had moved to a new residence in Las Vegas. In April 2014, a search warrant was executed at Akel’s new residence, and investigators seized computers and other equipment containing more videos and images of child pornography. Ultimately, investigators determined that Akel possessed a combined total of 149 videos and 54 images of child pornography as a result of both searches. Some of the files depicted prepubescent children or children under the age of 12 crying and being raped.
The case was investigated by Las Vegas Metropolitan Police Department, Internet Crimes Against Children Task Force, and Homeland Security Investigations, and prosecuted by Special Assistant United States Attorney Allison L. Herr of the Nevada Attorney General’s Office.
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 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."
Kane County Awarded Department of Justice Grant to Enhance Court Operations; Expand Court ServicesRead the Press Release
SALT LAKE CITY – The U.S. Department of Justice has awarded Kane County a $194,006 grant to implement or enhance local drug court programs. The funding is a part of the Bureau of Justice Assistance’s Adult Drug Court Discretionary Grant Program.
The Drug Court Discretionary Grant Program provides financial and technical assistance to states, state courts, local courts, units of local government, and Indian tribal governments to develop and implement treatment drug courts that effectively integrate substance abuse treatment, mandatory drug testing, sanctions and incentives, and transitional services in a judicially supervised court setting with jurisdiction over nonviolent, substance-abusing offenders.
“Using the authority of the court, drug court programs work to reduce crime by changing defendants’ drug-using behavior. Although there are common elements to many drug programs, each court and the stakeholders working with the court, can design a program that addresses its unique needs for participant eligibility and program requirements,” U.S. Attorney John W. Huber said today. “This substantial grant should be a big boost to Kane County’s efforts to expand its services, and I am pleased that county officials sought the assistance of the U.S. Department of Justice.”
Kane County will use the grant funds to establish new services for target populations not currently being served, enhance existing court operations, expand court services, and improve the quality or intensity of offender services. These services could include health care, including mental health services; educational, vocational and job training; and childcare or other family support services for each adult participant who requires such services.
Justice Department Announces New Strategy to Combat Intellectual Property Crimes and $3.2 Million in Grant Funding to State and Local Law Enforcement AgenciesRead the Press Release
Attorney General Loretta E. Lynch announced today that the Justice Department will launch a new collaborative strategy to more closely partner with businesses in intellectual property enforcement efforts and will award over $3.2 million to ten jurisdictions to support state and local task forces in the training, prevention, enforcement and prosecution of intellectual property theft and infringement crimes.
“The digital age has revolutionized how we share information, store data, make purchases and develop products, requiring law enforcement to strengthen our defenses against cybercrime – one of my top priorities as Attorney General,” said Attorney General Lynch. “High-profile instances of hacking – even against large companies like Sony and Target – have demonstrated the seriousness of the threat all business face and have underscored the potential for sophisticated adversaries to inflict real and lasting harm.”
The new FBI collaborative strategy builds upon the work previously done by the department while also working with industry partners to make enforcement efforts more effective. As part of the strategy, the FBI will partner with third-party marketplaces to ensure they have the right analytical tools and techniques to combat intellectual property concerns on their websites. The bureau also will serve as a bridge between brand owners and third-party marketplaces in an effort to mitigate instances of the manufacture, distribution, advertising and sale of counterfeit products. This new strategy will help law enforcement and companies better identify, prioritize and disrupt the manufacturing, distribution, advertising and sale of counterfeit products. Crimes will then be investigated by the FBI and other partners of the National Intellectual Property Rights Coordination Center and finally prosecuted by the Department of Justice.
Additionally, the Office of Justice Program’s Intellectual Property Enforcement Program (IPEP) will award $3.2 million in grants to aid state and local law enforcement in addressing intellectual property crimes.
Local award recipients announced today include the following:
City of Austin Police Department
$400,000
City of Hartford Police Department
$399,545
Cook County State Attorney's Office
$400,000
Baltimore County Police Department
$120,174
North Carolina Department of Secretary of State
$367,076
New Jersey State Police
$269,619
City of Phoenix Police Department
$253,129
City of Portland Police Department
$373,569
Virginia State Police
$253,128
City of San Antonio Police Department
$400,000
Since IPEP’s establishment in 2009, the department has invested nearly $14.8 million for 41 task forces across the country. These grants have supported the arrest of 3,522 individuals, the dismantling of 1,882 piracy or counterfeiting organizations and the seizure of $266,164,989 in counterfeit property, other property and currency in conjunction with IP enforcement operations.
The department also launched a new intellectual property website http://www.justice.gov/iptf to serve as a both a resource to companies facing intellectual property challenges as well as a mechanism to educate the public on how intellectual property theft is a growing threat to the country’s public safety and economic well-being.
Intellectual property theft refers to the violation of criminal laws that protect copyrights, patents, trademarks and other forms of intellectual property and trade secrets both in the United State and abroad. Faulty and counterfeit products are often sold to unsuspecting consumers and pose a severe threat to their health and safety. In a few circumstances, these activities are used to fund dangerous or violent criminal enterprises or organized crime networks.
Information: Federal Court ArraignmentsRead the Press Release
The United States Attorney’s Office announced that those persons listed below were arraigned before the U.S. Magistrate and the indictments handed down by the Grand Jury unsealed.
Appearing before U.S. Magistrate Johnston in Great Falls on September 28, 2015 and entering pleas of Not Guilty were:
- BRIDGETTE MARIE BLACKCROW, a 26-year-old resident of Lodge Pole, appeared on charges of felony child abuse. If convicted of the charge contained in the indictment, BLACKCROW faces 5 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference. 15-47
Appearing before U.S. Magistrate Johnston in Great Falls on September 23, 2015, and entering pleas of Not Guilty were:
- NATHAN MOUNTAIN CHIEF, a 32-year-old resident of Browning, appeared on charges of burglary. If convicted of the charge contained in the indictment, MOUNTAIN CHIEF faces 20 years in prison, $50,000 in fines and 3 years supervised release. The case was investigated by the Bureau of Indian Affairs. PACER Case Reference. 15-60
Appearing before U.S. Magistrate Ostby in Billings on September 22, 2015, and entering pleas of Not Guilty were:
- JOSE ISIDRO OROZCO-HERRERA, a 29-year-old resident of Jerome, Idaho, appeared on charges of possession with intent to distribute methamphetamine, possession of a firearm in furtherance of a drug trafficking crime, and illegal alien in possession of firearm and ammunition. If convicted of the most serious charges contained in the indictment, OROZCO-HERRERA faces life in prison, $1,000,000 in fines and 5 years supervised release. The case was investigated by the Bureau of Indian Affairs. PACER Case Reference. 15-87
- ARTIE LEWIS SMELLS, a 50-year-old resident of Pryor, appeared on charges of felon in possession of firearms and ammunition. If convicted of the charge contained in the indictment, SMELLS faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. PACER Case Reference. 15-117
Appearing before U.S. Magistrate Ostby in Billings on September 21, 2015, and entering pleas of Not Guilty were:
- ROBERT ALLEN ROMO, a 41-year-old resident of Billings, appeared on charges of felon in possession of a firearm. If convicted of the charge contained in the indictment, ROMO faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. PACER Case Reference. 15-115
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system so that you stay current and not miss any important developments in the case.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
Houlton Man Pleads Guilty to Threatening a Foreign Official and is Sentenced to Six MonthsRead the Press Release
Contact: Andrew McCormack
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Dushko Venelinov Vulchev, 38, of Houlton, Maine, and originally from Bulgaria, pleaded guilty today in U.S. District Court to threatening a foreign official and was sentenced by U.S. Magistrate Judge John C. Nivison to time-served. The defendant was arrested on March 29, 2015 and has been detained since that date.
According to court records, on February 5, 2015, the defendant sent an email from his home in Houlton to a Bulgarian Vice-President of the European Commission, and others at the European Commission. The European Commission is located in Brussels, Belgium. The email was written in Bulgarian and made certain demands. The defendant wrote that if those demands were not met he would physically harm the Bulgarian Vice-President of the European Commission and others at the European Commission.
The case was investigated by the Federal Bureau of Investigation and the Houlton Police Department. The Justice Department's Office of International Affairs and the government of Bulgaria provided substantial assistance.Holyoke Man Pleads Guilty to Federal Firearms ChargesRead the Press Release
BOSTON – Joshua Marrero, 28, of Holyoke, Mass., pleaded guilty today to being a convicted felon in possession of a firearm and ammunition and to possessing a firearm with an obliterated serial number. U.S. District Judge Timothy S. Hillman scheduled sentencing for Jan. 22, 2016.
At his plea hearing, Marrero admitted that on April 19, 2014, he possessed a Lorcin Model L 380 .380 caliber firearm with an obliterated serial number and seven rounds of .380 caliber ammunition. After being spotted with the firearm by law enforcement officers, Marrero ran into an alley in South Holyoke and was caught after he tripped.
The charge of being a felon in possession of a firearm provides a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of $250,000. The charge of possessing a firearm with an obliterated serial number 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; Daniel J. Kumor, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and Holyoke Police Chief James M. Neiswanger, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Deepika Bains Shukla of Ortiz’s Springfield Branch Office.
Gun Felon Sentenced in Federal CourtRead the Press Release
United States Attorney Kenyen R. Brown of the Southern District of Alabama announced that James Browder Horn, II, 37, of Troy, Alabama, was sentenced in federal court this morning for being a felon in possession of a firearm and using and carrying a firearm during a drug trafficking felony. United States District Court Judge William H. Steele imposed a total sentence of 90 months imprisonment, consisting of 30 months on the felon in possession charge followed by 60 months mandatory consecutive time on the second gun count. The judge ordered that Horn undergo drug abuse treatment. The judge also ordered that when Horn is released from jail, he will serve a five year term of supervised release, during which he will undergo additional testing and treatment for drug and alcohol abuse. Horn was also ordered to pay $200 in special mandatory assessments, but no fine was imposed.
The case was investigated by the Mobile County Police Department, the Mobile County Sheriff’s Office, the Mobile County Street enforcement Narcotics Team, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney Gloria Bedwell.
Guardian Hospice and Related Entities to Pay $3 Million to Resolve False Claims Act AllegationsRead the Press Release
ATLANTA – The United States Attorney’s Office for the Northern District of Georgia announced that Guardian Hospice of Georgia, LLC, Guardian Home Care Holdings, Inc., and AccentCare, Inc., (collectively Guardian) agreed to pay $3 million to resolve allegations that Guardian knowingly submitted false claims to the Medicare program for hospice patients who were not terminally ill. Guardian is a for-profit hospice that provides hospice services in the Atlanta, Georgia, area.
“Medicare payments to hospices are increasing every year,” said U.S. Attorney John Horn. “In order to preserve Medicare funds for services patients truly need, we will continue to pursue hospice providers who abuse the Medicare hospice benefit by billing Medicare for the care of patients who are not terminally ill.”
““The Medicare hospice benefit is intended to provide comfort and care to patients nearing the end of life,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “We will continue to aggressively pursue companies that abuse the Medicare hospice benefit to improperly inflate their profits.”
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “The FBI is proud of the role that it played in bringing forward today’s settlement in this matter. The FBI will continue to provide significant investigative resources toward combating Medicare fraud in order to not only protect the limited federal funds dedicated to that program but also to protect the end users that rely and depend on the services that it provides.”
“Hospice care is only medically appropriate – and reimbursed by Medicare – for terminally ill patients who are in the last months of their lives,” said Special Agent in Charge Derrick L. Jackson of the U.S. Department of Health and Human Services-Office of Inspector General. “We will continue to vigorously investigate health care companies that put their own profits above their duty to give appropriate medical care to their patients and bill Medicare only for legitimate health care services.”
The Medicare hospice benefit is available for patients who elect palliative treatment (medical care focused on providing patients with relief from pain, symptoms, or stress) for a terminal illness and who have a life expectancy of six months or less if their illness runs its normal course. Before billing Medicare, a hospice provider is obligated to comply with Medicare requirements and ensure that patients who are foregoing curative care are in need of end of life care.
The government alleges that Guardian submitted or caused the submission of false claims for hospice care for patients who Guardian knew were not terminally ill. These claims were submitted for services provided between December 1, 2009 and March 31, 2012. Specifically, the United States contends that Guardian’s business practices contributed to its submission of claims for patients who did not have a terminal prognosis of six months or less, including failing to properly train its staff and medical directors on the hospice eligibility criteria, setting aggressive targets to recruit and enroll patients, and failing to properly oversee the Atlanta hospice.
The settlement resolves allegations filed by Rose Betts and Jennifer Williams, former employees of Guardian, under the qui tam or whistleblower provisions of the False Claims Act, which authorize private parties to sue for false claims on behalf of the United States and share in the recovery. Ms. Betts and Ms. Williams will receive approximately $510,000. The lawsuit was filed in the Northern District of Georgia and is captioned U.S. ex rel. Betts v. Texas Home Health of America, L.P., No. 12-cv-0412.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $25.14 billion through False Claims Act cases, with more than $16.1 billion of that amount recovered in cases involving fraud against federal health care programs.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
This case was investigated by the U.S. Attorney’s Office for the Northern District of Georgia, the U.S. Department of Justice Civil Division’s Commercial Litigation Branch, the Federal Bureau of Investigation, and the U.S. Department of Health & Human Services, Office of Inspector General.
The civil settlement was reached by Assistant United States Attorney Lena Amanti.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Gray Man Pleads Guilty to Making False Entries in Credit Union RecordsRead the Press Release
Contact: Donald E. Clark
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that WILLIAM J. MURPHY, 75, of Gray, Maine, pled guilty today in U.S. District Court to making false entries in credit union records.
According to court records, the defendant was the chief financial officer, a loan officer, the bookkeeper and an employee of the Portland Police Department Federal Credit Union ("PPDFCU"), a federal credit union whose deposits were federally insured. In that capacity, the defendant had access to PPDFCU bank accounts and was responsible for drafting and auditing the general ledger and preparing and submitting certified quarterly call reports to the National Credit Union Administration ("NCUA"). Between 2009 and 2013, the defendant filed false quarterly call reports in which he overstated the PPDFCU’s net worth to make it appear that PPDFCU was sufficiently capitalized, when in truth and in fact, as he well knew, the PPDFCU was not sufficiently capitalized. As a result, on December 1, 2014, the NCUA facilitated the acquisition of the PPDFCU by a much larger federal credit union.
Murphy faces up to 30 years in prison, five years of supervised release and a $1,000,000 fine. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.The investigation was conducted by the Federal Bureau of Investigation.
Grants Awarded to South Dakota Law EnforcementRead the Press Release
Acting United States Attorney Randolph J. Seiler announced that the Office of Community Oriented Policing Services (COPS) has funded three awards in the District of South Dakota. In FY 2015, approximately $107 million was awarded nationally through the COPS Hiring Program, including $662,005 for the District of South Dakota.
The list of FY 2015 grantees includes: City of Sioux Falls Police Department awarded $375,000 to fund 3 officers; City of Eagle Butte awarded $171,000 to fund 1 officer; and Sisseton Wahpeton Law Enforcement awarded $116,005 to fund 1 officer.
The COPS Hiring Program provides grants to state, local and tribal law enforcement agencies to hire or rehire community policing officers. The program provides salaries and benefits for officer and deputy hires for three years.
The COPS Office is a federal agency responsible for advancing community policing nationwide. Since 1995, COPS has invested over $14 billion to advance community policing, including grants awarded to more than 13,000 state, local, and tribal law enforcement agencies to fund the hiring and redeployment of approximately 127,000 officers, and provide a variety of knowledge resource products including publications, training, and technical assistance.
For the entire list of grantees and additional information about the 2015 COPS Hiring Program, visit the COPS website at www.cops.usdoj.gov.
Georgia Man Pleads Guilty to Bank LarcenyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Damian Linton, 35, of Atlanta, Georgia, pleaded guilty to bank larceny before U.S. Magistrate Judge H. Kenneth Schroeder. The charge carries a maximum penalty of one year in prison and a fine of $100,000.Assistant U.S. Attorney Maura K. O'Donnell, who is handling the case, stated that Linton operated a business that created fraudulent pay stubs and other fraudulent documents. Some of those documents were then submitted to various lenders in support of fraudulent loan applications, causing lenders to release funds, under fraudulent pretenses.
The plea is the culmination of an investigation by Special Agents of the FBI, under the direction of .
Sentencing for Linton is scheduled for January 7, 2016 before Judge Schroeder.