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Friday 14 August 2015
Doctor at Brooklyn, New York, Clinic Sentenced to Two Years in Prison for Engaging in $13 Million Health Care Fraud SchemeRead the Press Release
A doctor at a Brooklyn, New York, clinic was sentenced to two years in prison for his role in a $13 million health care fraud scheme.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Acting U.S. Attorney Kelly T. Currie of the Eastern District of New York, Special Agent in Charge Scott Lampert of the U.S. Department of Health of Human Services-Office of Inspector General (HHS-OIG) New York Region and Assistant Director in Charge Diego G. Rodriguez of the FBI’s New York Field Office made the announcement.
Okon Umana, 68, of West Haven, Connecticut, pleaded guilty on Dec. 1, 2014, to conspiracy to commit health care fraud. In addition to imposing the prison term, U.S. District Judge John Gleeson of the Eastern District of New York ordered Umana to pay $6,429,330 in restitution and to forfeit $6,550,036.
From 2009 to 2012, Umana was the medical director of Cropsey Medical Care PLLC (Cropsey), a health care clinic. In connection with his guilty plea, Umana admitted that many of Cropsey’s medical services were provided by a physician’s assistant who was acting without supervision by a medical doctor, and that Cropsey nevertheless billed Medicare and Medicaid for the services using Umana’s provider number. In addition, Umana admitted that in seeking reimbursement for costs purportedly incurred transporting certain beneficiaries to and from Cropsey by ambulette, he falsely certified that transportation by ambulette was medically necessary.
Between November 2009 and October 2012, Cropsey submitted more than $13 million in claims to Medicare and Medicaid for a wide variety of fraudulent medical services and procedures, including physician office visits, physical therapy and diagnostic tests. Medicare and Medicaid reimbursed Cropsey more than $6 million for the claimed services and procedures.
Eight other individuals charged in connection with the scheme previously pleaded guilty. To date, one other individual has been sentenced.
This case is being investigated by the FBI and HHS-OIG, and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office of the Eastern District of New York. This case is being prosecuted by Trial Attorney Sarah Hall of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Shannon C. Jones of the Eastern District of New York.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged over 2,300 defendants who collectively have billed the Medicare program for over $7 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Denver Resident Found Guilty of Escape and Failure to Register as a Sex OffenderRead the Press Release
DENVER – Eric Eugene Hartwell, age 52, of Denver, Colorado, was found guilty yesterday of escape and failure to register as a sex offender following a four-day jury trial before U.S. District Court Judge Philip A. Brimmer, the U.S. Attorney’s Office and the U.S. Marshal’s Service announced. The jury deliberated for approximately over two hours before reaching their verdicts. Hartwell, who was in custody during the trial, was remanded after the jury reached their verdicts. Judge Brimmer is scheduled to sentence the defendant on November 20, 2015. He was indicted by a federal grand jury in Denver on July 22, 2014.
According to facts presented to the jury during trial, Hartwell was convicted on March 19, 2010, in U.S. District Court for the Northern District of Texas for failure to register as a sex offender. As a result of this conviction, he was sentenced to a 60-month term of imprisonment and ordered to serve a life time of supervised release. After Hartwell served his federal prison sentence, he was transferred to Colorado to begin his term of supervised release and to begin a term of parole in conjunction with his Colorado Failure to Cancel Registration conviction. On January 6, 2014, during a meeting with a Senior U.S. Probation Officer, the defendant was provided information in relation to his federal supervised release requirements, both verbally and in writing, including his sex offender registration requirements. He signed an acknowledgement that he understood the conditions of his federal supervision, including that he was required to “register with state and local law enforcement as directed by the U.S. Probation Officer in each jurisdiction where the defendant resides, is employed, or is a student” and that he was required “no later than 3 business days after each change of name, residence, employment, or student status, appear in person in at least one jurisdiction and inform that jurisdiction of all changes in the information required in the sex offender registry.”
Additional conditions of federal supervised release included that the defendant was required to reside in a halfway house. Hartwell began residing at a residential reentry center in Denver on January 22, 2014. He updated his sex offender registration as required on January 24, 2014, to reflect his change of residence to the halfway house. On February 21, 2014, Hartwell packed his personal items and departed the halfway house without permission. A state warrant was issued in Colorado and a federal warrant was issued by the Northern District of Texas. The U.S. Marshal Service Violent Offender Task Force (COVOTF) conducted an investigation to locate Hartwell. It was confirmed that the defendant, who originally reserved his travel using the name “John Miller,” purchased an Amtrak train ticket from Denver, Colorado, to Chicago, Illinois on February 21, 2014. On that same day and before purchasing the Amtrak ticket, the defendant withdrew $3,600 from an ATM in Denver and removed and discarded a GPS-tracking ankle monitor that he was required to wear as a condition of his Colorado state-parole.
The U.S. Marshal’s investigation revealed that on February 27, 2014, Hartwell withdrew $503 from his bank account, leaving a balance of $5.87 in that account, from an ATM in Washington, DC. He then traveled on the Greyhound Bus Line under the name “John Miller” from Washington, DC to Norfolk, Virginia. On February 28, 2014, Hartwell was arrested after he was located by the U.S. Marshals in a motel in Norfolk, Virginia. The prosecution proved that on February 21, 2014, the defendant escaped the halfway house at which he was registered in Colorado, and, as of February 28, 2014, he had failed to register as a sex offender or update his sex offender registration in Colorado or any other state.
Hartwell faces not more than 5 years in prison, and up to a $250,000 fine for escape, and not more than 10 years in prison and up to a $250,000 fine for failure to register as a sex offender.
This case was investigated by the U.S. Marshals Service, including the U.S. Marshals Service Violent Offender Task Force.
Hartwell is being prosecuted by Assistant U.S. Attorneys David Tonini and Alecia Riewerts.
Del Rio Man Arrested on Federal Cyberstalking and Child Pornography ChargesRead the Press Release
In Del Rio, federal authorities arrested 26-year-old Michael Martinez on multiple charges involving online sextortion, cyberstalking and child exploitation of three female victims, including one minor, announced United States Attorney Richard L. Durbin, Jr., and Federal Bureau of Investigation Special Agent in Charge Christopher Combs, San Antonio Division.
A seven-count federal grand jury indictment, returned Wednesday and unsealed late yesterday, charges Martinez with three counts of Internet stalking; one count of production of child pornography, one count of receipt of child pornography; one count of possession of child pornography; and, one count of coercion and enticement of a minor to engage in sexual activity.
According to the indictment, from October 2013 to August 2014, Martinez caused emotional distress to his victims by using the Internet and text messages to harass and intimidate them. Furthermore, Martinez allegedly threatened to post nude photographs he had of the victims on the Internet and send them to their respective family and friends unless the victims continued to supply him with additional sexually explicit photographs.
On August 21, 2014, FBI agents executed a search warrant at the defendant’s residence. During the execution of the search warrant, investigators seized several computers, an assortment of computer related storage devices and the defendant’s cell phone. A forensics examination of the seized items revealed the presence of approximately a dozen images of the minor victim engaged in sexually explicit conduct.
Martinez, who was arrested yesterday, remains in federal custody pending a detention hearing scheduled for 9:00am on August 18, 2015, before United States Magistrate Judge Victor R. Garcia in Del Rio.
Upon conviction, Martinez faces between ten years and life in federal prison for enticement of a minor; between 15 and 30 years imprisonment for production of child porn; between five and 20 years imprisonment for receipt of child pornography; up to 10 years imprisonment for possession of child pornography; and, up to five years imprisonment for sextortion.
This case is being 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 http://www.justice.gov/psc.
The case is being investigated by the Federal Bureau of Investigation and prosecuted by Assistant United States Attorney Ralph Paradiso.
An indictment is merely a formal charge and should not be considered as evidence of guilt. The defendant is presumed innocent unless and until proven guilty in a court of law.
Covington Woman Sentenced for Student Loan FraudRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia announced Kamiecy Lashia Waller, age 33, of Covington, Georgia was sentenced August 13, 2015 by the Honorable Marc T. Treadwell, United States District Judge for the Middle District of Georgia in Macon, Georgia.
Ms. Waller was sentenced to 33 months imprisonment and ordered to pay restitution in the amount of $229,424.00 to the Department of Education for mail fraud involving a scheme to obtain Government issued student loans.
On May 16, 2012, Jasper County Sheriff’s Office executed an arrest warrant for Ms. Waller pursuant to a tip that she was committing fraudulent activity at her home in Monticello, Georgia. Ms. Waller was subsequently interviewed by the Covington Police Department and admitted to using the internet to apply for and fraudulently obtain federal student aid loans for more than thirty individuals. These individuals were not eligible for the student loans because they did not have either a GED or a high school diploma.
A search warrant of Ms. Waller’s residence uncovered state drivers licenses, tax forms, social security cards and school documents, as well as documents written by Ms. Waller detailing course information from Rio Salado College, the primary online academic institution targeted by the scheme. A subsequent investigation revealed that over the course of two years, Ms. Waller actively recruited approximately thirty-two students in furtherance of her scheme to defraud. Typically, she would charge the participant a minimum of $650 for getting them registered in college and taking the online courses for them until financial aid was paid and an overage check sent to the student or Ms. Waller.
Law enforcement determined some of the checks were deposited directly into Ms. Waller’s bank account. Other checks were sent through the U.S. Postal Service to her or to the participant. Ms. Waller’s fraudulent submissions caused the Department of Education to award $430,639.00. Of that, $229,424.00 was actually dispersed to the target college.
"Student loan programs often provide the only way for would-be college students to pursue a college degree,” U.S. Attorney Michael Moore said. “In that regard, they are almost sacred to those students who can't afford to follow their dreams without access to student loans. Through her scheme, Ms. Waller stole loan money from a program that has as its only purpose making a college education accessible. Her actions jeopardized the dreams of deserving students, and now she'll be sitting in prison for almost as long as it would take to get a college degree. There is something quite ironic in the sentence handed down by the court."
The case was investigated by the Department of Education Office of Inspector General, Special Agent Christopher Maisano. Assistant United States Attorney Sonja Profit represented the Government in the prosecution of the case.
Inquiries regarding the case should be directed to Pam Lightsey at the United States Attorney’s Office at 478-752-3511.
Collinsville Man Sent to Prison for Drug Possession and DistributionRead the Press Release
Daniel O. Lockett, 30, formerly of Collinsville, Illinois, was sentenced to a total of 151 months in prison on a two-count indictment charging him with Possession with Intent to Distribute Controlled Substances, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced. Following his prison sentence, Lockett will be on federal supervised release for 3 years. Lockett was also ordered to pay a fine of $500, as well as a $200 special assessment.
On November 5, 2013, Lockett was arrested by Collinsville Police Department for possession of cocaine, crack cocaine and heroin. Lockett has two prior drug offenses and was found to be a career offender at sentencing
This case was investigated by the Collinsville Police Department and Metropolitan Enforcement Group of Southwestern Illinois. The case was prosecuted by Assistant United States Attorney Deirdre A. Durborow.
Canadian Man Pleads Guilty to Drug ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Thomas Goodyer, 44, of Halifax, Nova Scotia, Canada, pleaded guilty to conspiracy to import 100 kilograms or more of marijuana into the United States from Canada, before U.S. District Judge Richard J. Arcara. The charge carries a minimum of 5 years and maximum of 40 years penalty of imprisonment and a $2,000,000 fine.
Assistant U.S. Attorney Mary Catherine Baumgarten, who is handling the case, stated that on or about November 5, 2005, Daniel Hebert entered the United States at the Peace Bridge port of entry in Buffalo, NY, driving a tractor trailer. Hebert and the tractor trailer were sent to secondary inspection, and a search resulted in the seizure of multiple plastic wrapped packages containing a green, leafy substance, weighing approximately 145 kilograms, inside 7 cardboard boxes hidden among boxes containing frozen waffles. After Miranda warnings were waived by Hebert, he told Immigration and Customs Enforcement (“ICE”) Agents, among other things, that the marijuana was to be delivered to a man named "Brian" at Jim's Truck Plaza in Cheektowaga, NY. Hebert agreed to cooperate, and after the marijuana was removed from the boxes, the boxes were returned to the trailer. Agents surveilled Hebert as he drove the tractor trailer to Jim's Truck Plaza, and met a white male, who then entered a white conversion van. Agents surveilled the white van and Hebert, as he drove the tractor trailer, to Pilot Air Freight on Broadway in Buffalo, where Hebert backed the tractor trailer into the rear of the parking lot. Agents observed the white van back in next to the tractor trailer, and two males (later identified as Thomas Goodyer and Brian Brady), exit the van and walk to the rear of the tractor trailer. The trailer doors were opened and Goodyer and Brady were arrested as the boxes that had contained marijuana were handed to them.
ICE agents administered Miranda warnings to Thomas Goodyer, which he said he understood and waived, both orally and in writing, before agreeing to be interviewed. Among other things, Goodyer stated that: he received a call from Brian Brady within the week before the date of arrest and was asked whether he wanted to make “some quick cash;” Brady did not tell Goodyer how much he was going to make; Goodyer asked what he had to do to make the money and Brady said that Goodyer would have to ride along as they drove 150 pounds of marijuana to Boston, MA; Goodyer was going to be paid part of the money Brady made for delivering the marijuana; Goodyer crossed into the United States at the Peace Bridge on November 5, 2005 at approximately 10:13 p.m. and met Brady at a Citgo station near the Peace Bridge; Goodyer followed Brady to his ex-wife’s trailer in Cheektowaga, where Goodyer left his vehicle; and Goodyer stayed overnight with Brady while arrangements were made with Hebert, and then got into the van with Brady.
On November 7, 2005, a criminal complaint was filed in United States District Court for the Western District of New York charging Goodyer with offenses related to the importation and possession with intent to distribute marijuana that occurred on November 5, 2005. On November 9, 2005, Goodyer appeared before a federal Magistrate Judge, who ordered Goodyer released with various conditions, including that he post $10,000 bail and attend all court proceedings. Goodyer signed an acknowledgement of the conditions of his release and an appearance bond. Goodyer was required to attend a plea proceeding scheduled to occur before the District Court on December 21, 2006; however, he failed to appear, and an arrest warrant was issued for the defendant.
Approximately 145 kilograms (over 310 pounds) of marijuana is the amount involved in the defendant’s relevant conduct encompassed in the Indictment that could be readily proven by the government against the defendant.
The plea is the result of an investigation by Special Agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Acting Special Agent in Charge J. Michael Kennedy, and United States Customs & Border Protection under the direction of Rose Hilmey, Acting Director of Field Operations.
Goodyer is scheduled for sentencing on November 19, 2015 at 1:00 p.m. before Judge Arcara.
Camp Counselor Charged with Production, Possession and Receipt of Child PornographyRead the Press Release
A 21-year-old West Bloomfield man was charged in a criminal complaint with production, possession and receipt of child pornography, United States Attorney Barbara L. McQuade announced today. McQuade was joined in the announcement by Special Agent in Charge Marlon Miller, Immigration and Customs Enforcement, Homeland Security Investigations (HIS) and Police Chief Michael Patton, West Bloomfield Police Department. According to court records, Matthew David Kuppe, a camp counselor at the Jewish Community Center (JCC) day camp, photographed young boys in a locker room setting and posted those photographs on a foreign image sharing website. The photographs depicted the prepubescent boys’ genitalia. Kuppe was arrested on August 12, 2015, and appeared in federal court in Detroit before United States Magistrate Judge R. Steven Whalen on August 13. Kuppe was ordered temporarily detained pending a hearing on August 18, 2015. If convicted of these offenses, Kuppe faces a term of 15-30 years in custody for the production of child pornography charge, up to 20 years in custody for the possession and receipt of child pornography charges. Kuppe was an employee at JCC for the past two summers. McQuade praised the work of the West Bloomfield Police Department and agents of ICE-HSI for their thorough investigation of this case. An information line, e-mail address and website have been established on behalf of the West Bloomfield Police Department, Department of Homeland Security, and the United States Attorney’s Office. Parents and guardians of children who attended the Jewish Community Center (JCC) day camp who would like additional information should send an e-mail to [email protected]. Please include your name and contact information in your request. A response to your inquiry, via telephone call and/or e-mail, will be returned to you as quickly as possible. Further information can be obtained from the web page at www.justice.gov/usao-edmi or the information line at 1-888-702-0553 Assistant United States Attorneys Matt Roth and Sara Woodward are prosecuting this case for the United States.Buffalo Woman Pleads Guilty to Access Device FraudRead 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 Jennifer Konidis, 47, of Buffalo, N.Y., pleaded guilty to access device fraud on August 13, 2015 before U.S. District Judge Elizabeth Wolford. The charge carries a maximum penalty of 10 years imprisonment and a $250,000 fine.Assistant U.S. Attorney MaryEllen Kresse, who is handling the case, stated that the defendant, who had over 15 years of experience in the banking industry, authorized a man she met online to send credit cards to her home even though she knew that the credit cards had been obtained by fraud and without the true account holder’s knowledge or authority. Between July 17, 2013 and October 28, 2013, the defendant allowed thirty-one unauthorized access devices to be sent to her home and used nine of them to obtain or attempt to obtain things of value in excess of $20,000.
The plea is the result of an investigation by the United States Postal Inspection Service, Boston Division, under the direction of Inspector in Charge Shelly A. Binkowski.
Sentencing is scheduled for November 12, 2015 at 10:00 a.m. before Judge Wolford.Brownwood, Texas, Man Sentenced to 121 Months in Federal Prison for Possessing Prepubescent Child PornographyRead the Press Release
LUBBOCK, Texas — Robert Lawrence Noll, 40, of Brownwood, Texas, was sentenced today by U.S. District Judge Sam R. Cummings to 121 months in federal prison, following his guilty plea in April 2015 to one count of possession of prepubescent child pornography, announced John R. Parker, U.S. Attorney for the Northern District of Texas. Noll was ordered to pay restitution in the amount of $27,500.
Noll, who had been on pretrial release, was ordered to surrender to the Bureau of Prisons on September 18, 2015.
According to documents filed in the case, Noll used a laptop computer at his residence to search the Internet for images and videos of child pornography. In the course of searching for this material, Noll located, downloaded, and viewed numerous images and videos constituting child pornography, and some of those images involved prepubescent minors engaging in sexually explicit conduct.
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.”
U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Brown County Sheriff’s Office investigated. Assistant U.S. Attorney Steven M. Sucsy prosecuted the case.
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Brooklyn, New York, Resident Pleads Guilty to Conspiring to Provide Material Support to TerroristsRead the Press Release
Defendant Purchased Ticket to Travel to Turkey to Join ISIL
Abdurasul Hasanovich Juraboev, 25, a citizen of Uzbekistan and resident of Brooklyn, New York, pleaded guilty today to conspiring to provide material support to a designated foreign terrorist organization, the Islamic State in Iraq and the Levant (ISIL).
The guilty plea was announced by Assistant Attorney General for National Security John P. Carlin, Acting U.S. Attorney Kelly T. Currie of the Eastern District of New York, Assistant Director in Charge Diego G. Rodriguez of the FBI New York Field Office, Acting Special Agent in Charge Glenn Sorge of the Homeland Security Investigations (HIS) New York Field Office and Commissioner William J. Bratton of the New York City Police Department (NYPD).
According to previous court filings, in August 2014, Juraboev posted a threat on an Uzbek-language website to kill President Obama in an act of martyrdom on behalf of ISIL. In subsequent interviews by federal agents, Juraboev stated his belief in ISIL’s terrorist agenda, including the establishment by force of an Islamic caliphate in Iraq and Syria. Juraboev stated that he wanted to travel to Syria to fight on behalf of ISIL but lacked the means to travel. He stated that if he were unable to travel, he would engage in an act of martyrdom on U.S. soil if ordered to do so by ISIL, such as killing the President or planting a bomb on Coney Island, New York. During the next several months, Juraboev and a co-conspirator discussed plans to travel to Syria to fight on behalf of ISIL, culminating in Juraboev’s purchase on Dec. 27, 2014, of a ticket to travel from John F. Kennedy International Airport in Queens, New York, to Istanbul, departing on March 29, 2015.
Juraboev pleaded guilty before U.S. District Court Judge William F. Kuntz II of the Eastern District of New York. At sentencing, Juraboev faces up to 15 years in prison.
“Abdurasul Hasanovich Juraboev admitted that he conspired to provide material support to ISIL and that he was prepared to commit violence overseas or here in the United States,” said Assistant Attorney General Carlin. “The National Security Division’s highest priority is counterterrorism, and this case reflects our commitment to finding those who wish to provide material support to ISIL and to fight on behalf of the terrorist organization, either at home or abroad, and preventing them from doing so.”
“The defendant planned to travel to Syria to wage jihad on behalf of ISIL, and was prepared to commit a terrorist attack on American soil if he were not able to make that trip,” said Acting U.S. Attorney Currie. “The defendant’s guilty plea today is a testament to the hard work of the FBI’s Joint Terrorism Task Force in New York to prevent local residents from becoming foreign fighters in Syria or launching terrorist attacks at home.”
“Juraboev clearly expressed the desire to commit violence, either domestically or abroad, on behalf of a terrorist organization,” said Assistant Director in Charge Rodriguez. “His failure to carry out this desire is a testament to the tireless efforts of FBI New York’s Joint Terrorism Task Force. We will continue to work day and night, with our law enforcement partners, to ensure the safety of all Americans.”
“Today’s guilty plea is the culmination of just one of many efforts to arrest and prosecute individuals who wish to join terrorist organizations in order to do harm to Americans both here and abroad,” said Acting Special Agent in Charge Sorge. “As a member of the Joint Terrorism Task Force, HSI will continue to use its unique customs and immigration authorities to root out these evil individuals and bring them to justice.”
“Abdurasul Juraboev was quite clear that he wanted to provide material support to ISIL by fighting in Syria, if not, by his offer to assassinate the President of the United States, or by carrying out a terrorist attack in Coney Island,” said Commissioner Bratton. “This case is another example of the reach that ISIL has within the United Sates through social media, and the fact that some are willing to follow that call. I commend the work of the agents and detectives of the Manhattan based Joint Terrorism Task Force.”
The case is being investigated by the FBI’s Joint Terrorism Task Force in New York. The case is being prosecuted by Assistant U.S. Attorneys Alexander Solomon, Douglas M. Pravda and Peter W. Baldwin of the Eastern District of New York, with assistance provided by Trial Attorney Danya Atiyeh of the National Security Division’s Counterterrorism Section.
Juraboev Plea Agreement
Brooklyn Doctor Sentenced to 24 Months in Prison for Engaging in A $13 Million Health Care Fraud SchemeRead the Press Release
BROOKLYN, NY – Earlier today, defendant Dr. Okon Umana, 68, was sentenced to 24 months in prison for his role as the “no show” doctor in a $13 million health care fraud scheme. Umana previously pleaded guilty to health care fraud conspiracy on December 1, 2014. As part of the sentence, the court entered an order directing Umana to pay $6,429,330 in restitution and to forfeit $6,550,036. The sentencing proceeding was held before U.S. District Judge John Gleeson.
The sentence was announced by Kelly T. Currie, Acting United States Attorney for the Eastern District of New York; Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division; Scott Lampert, Special Agent-in-Charge, Health of Human Services, Office of Inspector General (HHS-OIG), New York Region; and Diego Rodriguez, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI).
From 2009 to 2012, Umana was the medical director of Cropsey Medical Care PLLC (Cropsey), a health care clinic located in Bensonhurst, Brooklyn. In connection with his guilty plea, Umana admitted that many of Cropsey’s medical services were provided by a physician’s assistant who was acting without supervision by a medical doctor, and that Cropsey nevertheless billed Medicare and Medicaid for the services using Umana’s provider number. In addition, Umana admitted that in seeking reimbursement for costs purportedly incurred transporting certain beneficiaries to and from Cropsey by ambulette, he falsely certified that transportation by ambulette was medically necessary.
Between November 2009 and October 2012, Cropsey submitted more than $13 million in claims to Medicare and Medicaid for a wide variety of fraudulent medical services and procedures, including physician office visits, physical therapy and diagnostic tests. Medicare and Medicaid reimbursed Cropsey more than $6 million for the claimed services and procedures. Eight other individuals charged in connection with the scheme previously pleaded guilty. To date, one other individual has been sentenced.
“Rather than using his license to practice medicine, Dr. Umana used it to fraudulently bill Medicare and Medicaid for services he did not provide,” stated Acting United States Attorney Currie. “Protecting taxpayer funded programs such as Medicaid and Medicare is a priority of this Office and the Department of Justice.” Mr. Currie extended his grateful appreciation to HHS-OIG and the FBI for their work on the investigation.
The government’s case is being prosecuted by Assistant U.S. Attorney Shannon C. Jones of the Eastern District of New York and Trial Attorney Sarah M. Hall of the Criminal Division’s Fraud Section.
This case is being investigated by the FBI and HHS-OIG, and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of New York.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged over 2,300 defendants who collectively have billed the Medicare program for over $7 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
The Defendant:
OKON UMANA
Age: 68
West Haven, ConnecticutE.D.N.Y. Docket No. 12 CR 617 (S-1)(JG)
Ashburn Woman Sentenced to 5 Years for Mortgage and Tax FraudRead the Press Release
ALEXANDRIA, Va. – Charise Stone, 46, of Ashburn, Virginia, was sentenced today to 60 months in prison, followed by three years of supervised release for her role in a real estate short sale scheme that included tax and mortgage fraud, and passing fraudulent financial documents. Stone was also ordered to forfeit $721,552, and ordered to pay restitution of $2,441,174 to the victim financial institutions and the IRS.
Stone was found guilty by a federal jury on May 27, 2015. According to court documents, from 2007 to 2010 Stone targeted distressed homeowners who owed more on their mortgage loan than the market value of the home with false promises of financial recovery. Stone acquired distressed homeowners’ properties in her own name or under entities she controlled, made false representations to mortgage lenders in order to induce approval of the short sales, and then re-sold the properties – often the same day or the next – to new buyers at a price above the short sale amount, in violation of agreements made with mortgage lenders.
Jose Marinay owned a settlement company that closed every short sale transaction for Stone. Marinay pleaded guilty to wire-fraud conspiracy on May 27, 2014. At his and Stone’s direction, fraudulent HUD-1 settlement statements were prepared to facilitate the transactions, and Stone destroyed some of the incriminating documents after closings. Financial institutions suffered losses of at least $2.2 million from the scheme, while Stone profited more than $720,000 from these transactions but failed to file individual income tax returns. She also sent fictitious bonds to the IRS in an attempt to pay off her tax liability, and she sent fake international promissory notes to creditors purporting to satisfy her credit card debt as well as her mortgage loan.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Caroline D. Ciraolo, Acting Assistant Attorney General of the Justice Department’s Tax Division; Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office; and Thomas Jankowski, Special Agent in Charge of IRS-Criminal Investigation’s (IRS-CI) Washington, D.C. Field Office, made the announcement after sentencing by U.S. District Judge Claude M. Hilton.
This case was investigated by the FBI’s Washington Field Office and IRS–CI. Assistant U.S. Attorney Uzo Asonye and Assistant Chief Todd Ellinwood of the Justice Department’s Tax Division are prosecuting 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. 1:14-cr-127.
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Albany County Man Pleads Guilty to Receipt and Possession of Child PornographyRead the Press Release
ALBANY, NEW YORK – Nelson E. Ferguson, age 48, of Albany County, New York, pled guilty today in Albany before United States District Judge Mae D’Agostino to one count of receipt of child pornography, and four counts of possession of child pornography, announced United States Attorney Richard S. Hartunian and Andrew W. Vale, Special Agent in Charge of the Albany Division of the Federal Bureau of Investigation.
Ferguson faces at least 5 years and up to 20 years of imprisonment, as well as a term of supervised release of at least 5 years and up to life. He also faces a maximum fine of $250,000 and mandatory registration as a sex offender. Nelson will be sentenced in Albany, New York on December 15, 2015 at 10 AM in United States District Court.
As part of his guilty plea, Ferguson admitted that between December 26, 2008 and June 15, 2010, he knowingly received child pornography and that on June 16, 2010, he possessed child pornography involving prepubescent minors and minors who had not attained 12 years of age.
This case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Emily T. Farber and former Special Assistant United States Attorney Amanda W. Cox.
Abilene Man Pleads Guilty to Federal Child Pornography OffensesRead the Press Release
ABILENE, Texas — Paul Joseph Koestle, 33, of Abilene, Texas, appeared yesterday before U.S. Magistrate Judge E. Scott Frost in Abilene, Texas, and pleaded guilty to child pornography offenses, announced U.S. Attorney John Parker of the Northern District of Texas.
Specifically, Koestle, who remains in custody, pleaded guilty to one count of production of child pornography and one count of receipt of child pornography. On the production conviction, he faces a statutory penalty of not less than 15 years or more than 30 years in federal prison and a $250,000 fine. On the receipt conviction, he faces a statutory penalty of not less than five years or more than 20 years in federal prison and a $250,000 fine. A sentencing date was not set.
According to documents filed in the case, earlier this year the Abilene Police Department (APD) began investigating Koestle based on information they received from the National Center for Missing and Exploited Children (NCMEC) indicating he had uploaded an image of child pornography to a Google account. The APD executed a search warrant at his home in late April 2015.
Koestle, who was home during the execution of the warrant, admitted to downloading child pornography and producing child pornography of a minor child, “Jane Doe.” A forensic evaluation of electronic equipment seized from his residence pursuant to the search revealed hundreds of images of child pornography located on a cellphone, a laptop computer and hard drive. In addition, multiple images of “Jane Doe” engaging in sexually explicit conduct were found.
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.”
U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Abilene Police Department are investigating. Assistant U.S. Attorney Myria Boehm is in charge of the prosecution.
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Thursday 13 August 2015
Welfare Fraud Probe Nets Prison Time for Three Karaein Brothers and Orders to Pay Back over A Million DollarsRead the Press Release
Emad, Jawad and Khader Karaein Sentenced for Role in Multiple Welfare Fraud Schemes
GRAND RAPIDS, MICHIGAN — U.S. Attorney Patrick Miles announced today that brothers Emad, Jawad and Khader Karaein were sentenced by U.S. District Judge Janet T. Neff for their roles in multiple schemes to defraud the federal government in connection with subsistence benefits.
On August 5, 2014, the three defendants, along with other family members, were charged with multiple federal offenses alleging that they engaged in fraud while operating the Middle Eastern Market ("MEM") in Grand Rapids, Michigan. One fraudulent scheme alleged against them was that they allowed customers receiving federal subsistence benefits to obtain cash and other prohibited items in exchange for the federal funds allotted to the customers. This fraudulent activity resulted in a large amount of federal welfare money being deposited into the MEM bank account. The charges further alleged that the Karaein brothers individually signed up for federal welfare benefits for themselves and their families. They did not disclose the MEM bank account and other sources of income that would have disqualified them from receiving the benefits and therefore fraudulently obtained food assistance, cash assistance and Medicaid benefits.
During December, 2014, Emad, Jawad and Khader Karaein each entered a guilty plea to one of the charges pending against them. In each case, the defendants agreed that the sentencing judge could consider all of the fraudulent conduct charged in arriving at the appropriate sentence. In exchange for these guilty pleas, the government agreed to dismiss the charges pending against their wives and other family members.
On June 2, 2015, Judge Neff sentenced Emad Karaein to a prison term of 34 months, to be followed by 36 months of supervision after release from prison. Emad Karaein was also ordered to pay restitution totaling $1,271,983 to the state and federal governments. Judge Neff sentenced Jawad Karaein on July 13, 2015. He received a prison term of 30 months, to be followed by supervised release of 24 months and restitution of $1,271,983. Khader Karaein was sentenced on August 13, 2015 and received a prison term of 12 months, to be followed by supervised release of 2 years and restitution of $1,272,713.
U.S. Attorney Pat Miles stated, "We work hard to stamp out fraud involving welfare benefits whenever we see it, because the taxpayers have the right to demand that the money they provide for these programs goes to those who are in need. Any unscrupulous person thinking of illegally taking advantage of the public welfare system should take notice—if you do it, you will find out the hard way that it is not worth it."
USDA Office of Inspector General, Special Agent-in-Charge Anthony V. Mohatt stated: "The Supplemental Nutrition Assistance Program and Women, Infant, and Children program were created to provide food and nutrition to those who truly need this assistance. Those who are involved in fraud and abuse of SNAP, WIC, and other USDA programs will be aggressively pursued by our office. Our joint investigation with the Federal Bureau of Investigation (FBI) and Michigan Department of Health and Human Services (MDHHS) has brought to justice Emad Karaein, Jawad Karaein, and Khader Karaein from Middle Eastern Market who obtained approximately $1.2 million from the SNAP and WIC programs through illegal schemes. The USDA Office of Inspector General will continue to dedicate resources and work with our federal and state law enforcement partners in order to protect the integrity of these programs and to prosecute those who commit fraud."
This case was investigated by the Department of Agriculture, Office of Inspector General, the Federal Bureau of Investigation, and the Michigan Department of Health and Human Services, Office of Inspector General. The case was prosecuted by AUSA Timothy VerHey.
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Washington Men Sentenced for Unauthorized Possession of over 17,000 Electronically Stored Credit and Debit Card Account NumbersRead the Press Release
United States Attorney Deborah R. Gilg announced that on August 13, 2015, Senior United States District Court Judge Lyle E. Strom sentenced Herman A. Fessehai, Bellevue, Washington, age 31, to a sentence of 27 months imprisonment, following his conviction for unauthorized possession of over 17,000 electronically stored credit and debit card account numbers not belonging to Fessehai. After his release from prison, Fessehai will begin a term of supervised release of 3 years. Fessehai was ordered to pay restitution in the amount of $815.87 and has also agreed to the forfeiture of over $25,000 in seized cash and money orders.
August 13, 2015, Senior United States District Court Judge Lyle E. Strom sentenced Emanuel Haile, Lynnwood, Washington, age 25, to a sentence of 11 months and 22 days, which term of imprisonment has already been served, following his conviction for possession of in excess of 17,000 electronically stored credit and debit card account numbers not belonging to Haile. Haile will immediately begin a term of supervised release of 3 years. Haile was ordered to pay restitution in the amount of $815.87 and has also agreed to the forfeiture of over $25,000 in seized cash and money orders.
On August 22, 2014, an officer with the La Vista Police Department conducted a traffic stop on a Chevy Tahoe traveling eastbound on Interstate 80 for speeding. During the traffic stop, a search of the vehicle and its contents was conducted by law enforcement officers. Officers located numerous fraudulent identification cards as well as fraudulently altered credit cards associated with Haile and Fessehai. Officers also located electronic equipment, which included a computer and instructions for software to read and write credit and debit card magnetic strips. A search of the computer revealed in excess of 17,000 unauthorized electronically stored debit card and credit card account numbers not belonging to Haile or Fessehai.
During search of the vehicle officers also located Federal Express receipts in the name of Fessehai. Officers were able to intercept the Federal Express packages sent by Haile and Fessehai prior to reaching their final destination. Those packages contained two credit card skimmers used to read and write credit and debit card magnetic strips as well as a card embosser used to imprint new credit cards.
Officers also located within the vehicle two bundles of U.S. currency as well as numerous money orders. The total amount of U.S. currency and money orders found was in excess of $25,000.
This case was investigated by the La Vista Police Department and United States Secret Service.
U.S. Attorney's Office participates in backpack drive at Sunset Middle SchoolRead the Press Release
LAFAYETTE, La. – This year the U.S. Attorney’s Office participated in a back-to-school backpack drive at Sunset Middle School. Staff members of the U.S. Attorney’s Office in Lafayette and Shreveport and federal courthouse employees in Lafayette collected school supplies and 20 backpacks for this school year that included spiral notebooks, loose leaf paper, construction paper, journals, pens, pencils, glue sticks, colored pencils, erasers, scissors, markers, pencil pouches and hand sanitizer.
The school is led by Principal Marquet Rideau, who along with staff members, accepted the backpacks on Monday and will distribute them among the students. The school’s mission statement is “Teacher, Parents and Community Working Together to Ensure That All Students Will Learn.” Sunset Middle School has been recognized by the Louisiana Department of Education as being a Top Gains School.
“This is just a little something to show support for a school, like so many others, that has young people who are eager and excited to learn,” Finley stated. “Sunset Middle School is working to keep children on track for academic success. A special thank you to everyone in the federal courthouse who participated in this project, and thank you to the staff at Sunset Middle for all of your hard work throughout the year. Our wish is that all schools across the nation and within the Western District of Louisiana will have a successful and rewarding school year.”
The U.S. Attorney’s Office is active with community outreach, to include educating youth in middle schools and high schools on social media and cyberbullying, mentoring high school and college students during back-to-school and career day events, supporting law enforcement during National Night Out events, serving meals during Thanksgiving at St. Joseph Diner, participating in events such as the Alzheimers’ Walk and Susan G. Komen Race for the Cure, and hosting annual drives for Coats for Kids, Dress for Success and Feds Feed Families.
Finley is the first female U.S. Attorney to serve in Louisiana. She was selected by President Barack Obama in January of 2010, after being recommended by U.S. Senator Mary Landrieu, and confirmed by the U.S. Senate in June of 2010. United States Attorney Finley was sworn into office on June 2, 2010, to serve as the Western District of Louisiana’s chief law enforcement officer for 42 of the 64 parishes in the state. In addition to her duties as the U.S. Attorney, Finley is a Lieutenant Colonel in the U.S. Air Force and currently serves as Co-Chair of the U.S. Attorney’s Office of Management and Budget Committee.
Two Del Rio Residents Sentenced to Federal Prison for Role in Scheme to Smuggle Grenades into the Republic of MexicoRead the Press Release
In Del Rio today, 28-year-old Noe Ramirez and 28-year-old Juliette Ramirez (no relation) were sentenced to 97 months and 60 months in federal prison, respectively, for their roles in a scheme to smuggle three dozen grenades into Acuna, Mexico, announced United States Attorney Richard L. Durbin, Jr., and Homeland Security Investigations (HSI) Special Agent in Charge James Spero, San Antonio Division.
In addition to the prison sentences, United States District Judge Alia Moses ordered that Noe Ramirez pay a $2,000 fine and Juliette Ramirez pay a $500 fine. Judge Moses further ordered that the defendants be placed on supervised release for a period of three years after completing their prison terms.
On November 6, 2014, both defendants entered guilty pleas: Juliette Ramirez, to one count of exportation of a military grade sub-munition (grenade); and Noe Ramirez, one count of aiding and abetting the exportation of a military grade sub-munition (grenade).
According to court records, on August 2, 2014, U.S. Customs and Border Protection (CBP) officers at the Del Rio Port of Entry arrested Juliette Ramirez. At the time, CBP agents discovered her to be in possession of a single grenade while she was attempting to walk from the United States into the Republic of Mexico. Subsequently, HSI agents executed a search warrant at the residence of Noe Ramirez where they discovered the remaining 35 grenades.
This case was investigated by Homeland Security Investigations together with U.S. Customs and Border Protection and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The Laredo Police Department Bomb Squad also assisted with the disposal of the ordinance. Assistant United States Attorney Matthew Watters prosecuted this case on behalf of the Government.
Two Charged in Large Scale Indoor Marijuana GrowRead the Press Release
PROVIDENCE, R.I. – Two Providence men charged by way of federal criminal complaints appeared in U.S. District Court in Providence today in connection with an ongoing FBI investigation into an alleged large scale indoor marijuana growing operation inside a converted mill building at 725 Branch Avenue in Providence and inside a Providence residence, announced United States Attorney Peter F. Neronha, Vincent B. Lisi, Special Agent in Charge of the Boston Field Office of the FBI, Michael Ferguson, Special Agent in Charge of the Drug Enforcement Administration’s New England Field Division and Colonel Steven G. O’Donnell, Superintendent of the Rhode Island State Police and Providence Police Chief Colonel Hugh T. Clements, Jr.
On Wednesday, FBI agents, assisted by DEA agents and members of the Rhode Island State Police and Providence Police Department, executed nine federal court authorized search warrants in and around 725 Branch Avenue in Providence where it is alleged that law enforcement discovered approximately 1,400 marijuana plants in various stages of growth inside numerous otherwise vacant apartments and offices inside the converted mill building.
A tenth federal search warrant was executed at a Providence residence at 60 Valley Street where agents and officers allegedly discovered approximately 100 marijuana plants in various stages of growth.
Also seized by law enforcement was a .22 caliber firearm and ammunition, and approximately $14,000 in cash.
Richard L. Yang, 35, was released to home confinement and electronic monitoring by U.S. District Court Magistrate Judge Lincoln D. Almond following his initial appearance in federal court on charges of manufacturing over 100 marijuana plants and conspiracy to manufacture marijuana.
William L. Ricci, 69, the owner and a resident of the 725 Branch Avenue facility, was released by U.S. District Court Magistrate Judge Lincoln D. Almond following his initial appearance on a charge of being a felon in possession of a firearm.
A criminal complaint is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
A third defendant has been arrested and charged in state court in connection with the investigation.
The matter is being prosecuted in federal court by Assistant U.S. Attorney William J. Ferland.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Two Canadians Appear in Court on Alien Smuggling ChargeRead the Press Release
The United States Attorney for the District of Vermont announced that Junior Alcantara-Ramirez, 29, of Quebec City, and Ginna Reyes-Santos, 31, of Montreal, appeared today in United States District Court in Burlington following their arrest on a charge of alien smuggling. U.S. Magistrate Judge John M. Conroy ordered that both defendants be detained pending further proceedings.
According to the criminal complaint filed today, Border Patrol agents encountered the defendants near Highgate, Vermont at about 3 a.m. on August 12. The defendants were in a car parked by the side of the road with its lights off. In the back seat of the car, agents identified two Indian nationals who had no permission to be in the United States. Records checks showed that the car the defendants were driving had entered the United States from Canada lawfully about one hour earlier. At the time of entry, Alcantara-Ramirez and Reyes-Santos were the only occupants of the car.
According to the complaint, during a subsequent interview with Border Patrol agents, one of the aliens admitted that an unidentified Canadian female had driven the two aliens from Montreal to the border area, let them out and directed them to walk across the border into Vermont. The aliens were given directions where to rendezvous with another driver on the U.S. side of the border. The second driver would transport the aliens to New York City in exchange for a total of $4000.
The smuggled aliens are currently in custody and are being held as material witnesses.
The United States Attorney emphasizes that the charge in the complaint is merely an accusation and that the defendants are presumed innocent unless and until they are proven guilty.
If convicted, the defendants face up to ten years of imprisonment and a fine of up to $250,000. The actual sentence would be determined with reference to federal sentencing guidelines.
Alcantara-Ramirez is represented by Assistant Federal Public Defender Liz Quinn. Reyes-Santos is represented by Katina Francis Ready. The prosecutor is Assistant U.S. Attorney Gregory Waples.
Town and Country Woman Pleads Guilty to Filing a False Tax ReturnRead the Press Release
St. Louis, MO – GWENDOLYN BROWN, of Town & Country, Missouri, admitted to filing a false income tax return in violation of 26 USC 7206(1), a felony. Brown appeared this afternoon before U.S. District Court Judge Ronnie L. White in St. Louis.
Brown faces up to three years imprisonment, a fine of up to $100,000 or both at her sentencing which is set for November 13, 2015. According to her plea agreement, Brown admitted to looting the coffers of the Church of Jesus Christ, a congregation in the City of St. Louis, of which her husband Alfred Brown is pastor, since 2008. Brown also admitted to taking considerable income from a daycare facility - which is a ministry of the Church - while its director. In addition to taking unreported cash, Brown admitted to not reporting payments towards luxury automobiles driven by her and her husband on her 2008, 2009 and 2010 taxes.
Alfred Brown has previously pleaded guilty to the same offense and was ordered to serve one year and one day in prison on Tuesday by Judge White.
Three Defendants Sentenced in Manatee County Stolen Identity Refund Fraud SchemeRead the Press Release
Tampa, Florida – Senior U.S. District Judge James S. Moody, Jr. has sentenced three individuals for their roles in a conspiracy to commit stolen identity refund fraud in the Manatee County area between 2012 and 2013. Among those sentenced were Marcus Lowe (32, Tampa) to three years and six months’ imprisonment, Tedrick Randall (44, Bradenton) to three years and one month in federal prison, and Rachel Kerley (36, Bradenton) to a term of 6 months’ imprisonment. As part of each defendant’s sentence, the Court also entered a money judgment in the amount of $15,457, representing the proceeds of the charged criminal conduct. Randall and Kerley pleaded guilty in April 2015, and Lowe was found guilty on May 1, 2015, after a jury trial.
According to court documents, Lowe worked for the Manatee County Parole Services Division at the Manatee County Jail and, as such, had access to the jail booking sheets. These booking sheets contained personal identification information relating to the inmates, including their names, dates of birth, and Social Security numbers. Lowe provided that information to Randall and Kerley, who then used the data to file false and fraudulent income tax returns seeking tax refunds in the names of those inmates. The conspirators filed income tax returns seeking a total of approximately $72,254 in tax refunds from the Internal Revenue Service.
This case was investigated by the Internal Revenue Service-Criminal Investigation Division, with assistance from the Manatee County Sherriff’s Office. It is being prosecuted by Assistant United States Attorney Jay L. Hoffer.
Taxicab Operator Pleads Guilty to Falsifying Titles of Salvaged Cars and Re-Using Them as Taxis on Chicago StreetsRead the Press Release
CHICAGO — A Northbrook man pleaded guilty Thursday to charges he illegally obtained clean titles for salvaged and rebuilt vehicles and put them to use as taxicabs on the streets of Chicago.
As the owner of Seven Amigos Used Cars Inc., ALEXANDER IGOLNIKOV fraudulently obtained paperwork to conceal the history of the damaged cars in order to bypass City of Chicago laws that prohibit the use of salvaged and rebuilt vehicles as taxicabs, according to a written plea agreement. Federal prosecutors contend that Igolnikov, who also served as vice president of Chicago Elite Cab Corp., caused approximately 180 impaired vehicles to be used as taxicabs on Chicago streets after they were falsely given clean titles in Indiana and Illinois, according to the plea agreement.
Igolnikov’s scheme, which spanned from 2007 through April 2010, was uncovered in an investigation by federal authorities and the City of Chicago Inspector General’s Office.
Igolnikov, 68, of Northbrook, pleaded guilty to one count of conspiracy to transport, receive and possess a counterfeit security. He faces a maximum sentence of 5 years in prison and a maximum fine of $250,000 or twice the gross gain or gross loss from the offense. U.S. District Judge Edmond E. Chang scheduled a sentencing hearing for November 19, 2015, at 10:00 a.m. As part of the plea agreement, Igolnikov reserved the right to dispute the total number of vehicles involved in the scheme.
After procuring from online auction sites significantly damaged cars with salvage titles, Igolnikov and his associates fraudulently obtained “rebuilt” titles for those damaged vehicles by submitting false paperwork– including affidavits with the forged signature of an Indiana law enforcement officer – to the Indiana Bureau of Motor Vehicles, the plea agreement states. The vehicles were then transported to the Chicago business of Chicago Carriage Taxi Company, which was also used by Seven Amigos Used Cars. After obtaining the Indiana rebuilt title for a salvaged vehicle, Igolnikov and his associates placed a sticker over the “rebuilt” section of the Indiana certification and then used that title to obtain a clean Illinois title from the Illinois Secretary of State’s Office, according to the plea agreement. Igolnikov purchased the newly certified vehicles in the names of Seven Amigos Used Cars, Chicago Elite Cab and other related corporate entities, the plea agreement states.
Igolnikov and his business associates, including Chicago Elite Cab, operated the fraudulently certified vehicles as taxicabs in Chicago – in violation of the city’s medallion laws, which prohibit any vehicle that was ever issued a “salvage” or “rebuilt” title in any state from being used as a taxicab, the plea agreement states.
The guilty plea was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; and Joseph M. Ferguson, Inspector General for the City of Chicago.
The government is represented by Assistant United States Attorneys Margaret Schneider and Steven Dollear.
Plea Agreement
Springfield Man Indicted for Distributing Crack CocaineRead the Press Release
BOSTON – A Springfield man was indicted today in U.S. District Court in Springfield for distributing crack cocaine.
Larry Smith, Jr., 28, was indicted on two counts of distribution of crack cocaine and one count of possession with intent to distribute crack cocaine.
According to the indictment, on Feb., 18, 2015 and March 5, 2015, Smith distributed crack cocaine. On April 3, 2015, he possessed crack cocaine with the intent to distribute it.
The charging statutes provide a sentence of no greater than 30 years in prison, a minimum of six years and up to a lifetime of supervised release, and a fine of $1 million. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and Daniel J. Kumor, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Katharine A. Wagner of Ortiz’s Springfield Office.
The details contained in the indictment are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Sierra National Forest Marijuana Cultivators IndictedRead the Press Release
FRESNO, Calif. — A federal grand jury returned an indictment today against Francisco Javier Gomez-Rodriguez, 37, Alejandro Ramirez-Rojo, aka Alejandro Ramires, 30, and Humberto Ceballos-Rangel, 37, all citizens of Mexico, and Anthony Isaac Santibanez, 19, of Woodlake, Calif., charging them in connection with their involvement in a large marijuana cultivation in the Sierra National Forest in Madera County, United States Attorney Benjamin B. Wagner announced.
The men were each charged with conspiracy, manufacturing marijuana, distributing marijuana, possessing marijuana with intent to distribute, and damaging public land and natural resources. According to court documents, Ceballos-Rangel was found at a campsite within the marijuana cultivation site, where agents found 5,904 marijuana plants and a loaded firearm. Gomez-Rodriguez, Ramirez-Rojo, and Santibanez were found a short time later approaching the grow site in a vehicle previously identified as a load vehicle used for the delivery of supplies to the grow site. A .22 caliber rifle was also found in the load vehicle, along with .40 caliber rounds of ammunition.
The cultivation operation caused significant harm to the environmental landscape. Native vegetation was cut to accommodate the marijuana plants, foot trails, and cooking and sleeping areas. Water was also diverted from a nearby creek to irrigate the marijuana plants. A large quantity of trash was also found in trash pits and throughout the site.
This case is the product of an investigation by the U.S. Forest Service, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), California Department of Justice’s Campaign Against Marijuana Planting (CAMP), California Department of Fish and Wildlife, and Madera County Narcotic Enforcement Team (MADNET). Assistant United States Attorney Karen A. Escobar is prosecuting the case.
All but Santibanez have been ordered detained pending trial. The defendants are scheduled to appear in federal court on August 14, 2015, for arraignment on the indictment.
If convicted the defendants face, as to each drug count, a maximum penalty of up to 20 years in prison and up to a $1 million fine. As to the environmental charge, the defendants face a maximum penalty of 10 years in prison and a fine of up to $250,000. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; each defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Selkirk Man Indicted on Drug and Money Laundering ChargesRead the Press Release
ALBANY, NEW YORK – Jeremey VanWormer, 28, of Selkirk, was arrested this morning on federal drug trafficking and money laundering charges, announced United States Attorney Richard S. Hartunian and Inspector in Charge Shelly Binkowski, U.S. Postal Inspection Service, Boston Division.
VanWormer is charged by indictment with one count of participating in a conspiracy to distribute more than 100 kilograms of marijuana and four counts of participating in a conspiracy to launder drug trafficking proceeds. VanWormer was arraigned today in Albany before the Honorable Randolph F. Treece, United States Magistrate Judge, and released under pretrial supervision and secured bond pending a trial scheduled for October 13, 2015 before the Honorable Mae D’Agostino, United States District Court Judge.
On the drug trafficking conspiracy charge, VanWormer faces at least 10 years of imprisonment and up to life, a maximum fine of $8 million, and a term of supervised release of 8 years to life.
On each of the money laundering conspiracy charges, VanWormer faces a maximum imprisonment term of 20 years, a maximum fine of $500,000, and a maximum term of supervised release of 3 years.
According to the indictment, VanWormer participated in a marijuana trafficking conspiracy from about January 1, 2013 to November 14, 2014, and also participated in 4 separate money laundering conspiracies during that time. The indictment also seeks forfeiture of assets, including real properties in Troy and Watervliet.
The charges in the indictment are merely accusations. The defendant is presumed innocent until proven guilty.
This case is being investigated by the United States Postal Inspection Service, Homeland Security Investigations and the Drug Enforcement Administration, and is being prosecuted by Assistant U.S. Attorney Michael Barnett.
Second Trafficker Targeting Eastern North Carolina Sentenced for Methampthetamine ConspiracyRead the Press Release
NEW BERN - United States Attorney Thomas G. Walker announced that in federal court today, United States District Judge Louise W. Flanagan sentenced LESLIE FAVIOLA-ALVARADO, 22, of Lawrenceville, Georgia, to 56 months in prison and 5 years of supervised release for conspiracy to distribute and possess with the intent to distribute 500 grams or more of methamphetamine. FAVIOLA-ALVARADO previously pled guilty to this charge on May 13, 2015. On June 9, 2015, Judge Flanagan sentenced FAVIOLA-ALVARADO’S co-defendant, FELIPE DE JESUS JARAMILLO-ROSAS, 29, of Gwinnett County, Georgia, to 56 months in prison and 5 years of supervised release.
The investigation revealed that on June 25, 2013, JARAMILLO-ROSAS and FAVIOLA-ALVARADO took possession of 907 grams of methamphetamine from a source of supply in the Atlanta, Georgia, area and began driving to Johnston County, N.C., to deliver the methamphetamine to drug traffickers. JARAMILLO-ROSAS and FAVIOLA-ALVARADO arrived in Johnston County on June 26, 2013. However, the drug traffickers decided not to accept the methamphetamine. As JARAMILLO-ROSAS and FAVIOLA-ALVARADO were attempting to deliver the methamphetamine back to the suppliers in Atlanta, the North Carolina Highway Patrol stopped their car in Graham, N.C. The trooper discovered that the driver, JARAMILLO-ROSAS, did not have a valid driver’s license and smelled a strong odor of marijuana from the car. The trooper asked for and received consent to search the car. Troopers located the methamphetamine in two plastic containers in the back seat of the car during the consent search.
This case was part of the Organized Crime Drug Enforcement Task Force (OCDETF) Operation “Smokin’ Aces”. Operation “Smokin’ Aces” was designed to attack the infrastructure of Mexican Drug Trafficking Organizations operating not only in the Eastern District of North Carolina, but throughout North Carolina, the United States and Mexico. These organizations are responsible for the importation of large quantities of cocaine, marijuana, and methamphetamine into the United States, as well as the related remittance of illegal drug proceeds back into Mexico.
The investigation of this case was conducted by the United States Drug Enforcement Administration, the Johnston County Sheriff’s Office, the North Carolina Highway Patrol, the Lenoir County Sheriff’s Office and the Greenville Police Department. The federal prosecution was handled by Special Assistant United States Attorney Glenn Perry. Mr. Perry is a prosecutor with the Pitt County District Attorney’s Office. Pitt County District Attorney Kimberly Robb has assigned Mr. Perry to the United States Attorney’s Office to prosecute federal Organized Crime Drug Enforcement Task Force criminal matters. Mr. Perry’s assignment to the United States Attorney’s Office has been made possible by grants funded by the Governor’s Crime Commission.
Rochester Woman Pleads Guilty to Sex TraffickingRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y.--U.S. Attorney William J. Hochul Jr. announced today that Kasandra Weeks, of Rochester, NY, pleaded guilty to sex trafficking using coercion, before U.S. District Judge David G. Larimer. The charge carries a minimum penalty of 15 years in prison, a maximum of life, and a $250,000 fine.Assistant U.S. Attorney Melissa Marangola, who is handling the case, stated that between June and August of 2013, Weeks and co-defendant Steven Jones approached an adult female while she was walking down Jay Street in Rochester. Weeks and Jones offered her drugs and drove her to a hotel in Henrietta. When the female victim asked for a ride home, Weeks and Jones agreed but instead drove her to Lancaster, NY. While in Lancaster, the two coerced the victim to engage in prostitution by refusing to drive her back to Rochester.
Weeks posted ads for the victim as an escort using the internet classified advertising website, Backpage.com. The victim engaged in commercial sex acts and gave the proceeds to Weeks and Jones. Eventually, the victim was able to escape.
Weeks was arrested along with Jones and five others in February 2015. She is the first to be convicted. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The plea is the result of an investigation by the Federal Bureau of Investigation Child Exploitation Task Force which includes the Monroe County Sheriff’s Office, the Rochester Police Department, and U.S. Immigration and Customs Enforcement-Homeland Security Investigations.
Sentencing will be scheduled at a later date.
Preston Man Pleads Guilty to Receiving Child PornographyRead the Press Release
POCATELLO - D. Gregory Schvaneveldt, 40, of Preston, Idaho, pleaded guilty yesterday to receipt of child pornography, U.S. Attorney Wendy J. Olson announced. Schvaneveldt was indicted by a federal grand jury in Pocatello on November 25, 2014.
According to the plea agreement, an undercover special agent with Homeland Security Investigations was able to download 48 images and four videos of child pornography from Schvaneveldt’s shared computer files, after Schvaneveldt shared the password protecting the files with the agent during an online chat. This led to a federal search warrant for Schvaneveldt’s residence, where law enforcement agents seized two computers, an external hard drive, and related equipment. On the computers and external hard drive, law enforcement agents discovered approximately 1,638 images and 409 video files of suspected child pornography. The National Center for Missing and Exploited Children identified victims in 502 of the images and in 57 documented “Series” of child pornography.
When interviewed by law enforcement, Schvaneveldt admitted that there was child pornography on the computers in his residence and “hundreds” of images on the external hard drive. He stated that he had found child pornography on the Internet about a year prior and admitted saving images of child pornography from the Interne to his computer. He also admitted to receiving child pornography through an online chat function.
The charge of receipt of child pornography is punishable by not less than five, and up to 20, years in prison, a maximum fine of $250,000.00, and up to a life term of supervised release.
Sentencing is set for October 27, 2015, before Senior U.S. District Judge Edward J. Lodge at the federal courthouse in Pocatello.
The case was investigated by U.S. Immigration and Custom Enforcement’s (ICE) Homeland Security Investigations (HSI) and 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.”
Pawn Shop Owner Indicted in Scheme to Sell Stolen Goods on eBayRead the Press Release
Baltimore, Maryland – A federal grand jury has indicted Noel Eric Anshel, age 48, of Owings Mills, Maryland for selling stolen goods and fraudulently obtained gift cards on eBay. The indictment was returned on August 11, 2015 and unsealed today.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Brian Murphy of the United States Secret Service - Baltimore Field Office; Interim Commissioner Kevin Davis of the Baltimore Police Department; and Chief Gary Gardner of the Howard County Police Department.
According to the one count indictment, Anshel operated Hilltop Cellular, a pawnshop located at 5450 Reisterstown Road in Baltimore. From no later than September 1, 2013 to April 1, 2015, Anshel paid cash to “boosters,” a common term for shoplifters, in exchange for items that he knew to be stolen property. This stolen property included faucets, garbage disposal units, drills, saws, digital cameras and televisions sets. Anshel allegedly sold the stolen property over eBay, often for less than the wholesale price for the items.
The indictment further alleges that boosters would also steal items from a store and return the stolen items to another location of the same chain in order to receive store credit in the form of gift cards. Anshel bought these cards knowing that the gift cards had been obtained by fraud. He then sold the gift cards over eBay.
The indictment seeks forfeiture of $1 million, the proceeds of the fraud scheme.
Anshel faces a maximum sentence of 10 years in prison for transporting stolen goods. An initial appearance was held this afternoon in U.S. District Court in Baltimore. Anshel was released under the supervision of U.S. Pretrial Services.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein praised the U.S. Secret Service and the Baltimore City Police Department and Howard County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Aaron S. J. Zelinsky, who is prosecuting the case.
Ozark Man Pleads Guilty to Conspiracy to Avoid Paying $585,000 in Federal TaxesRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that an Ozark, Mo., man pleaded guilty in federal court today to his role in a conspiracy to avoid paying $585,000 he owed in federal taxes.
Wesley Vernon Delport, 69, of Ozark, Mo., pleaded guilty before U.S. District Judge M. Douglas Harpool to participating in a conspiracy to defraud the United States by impeding the lawful government functions of the Internal Revenue Service in the ascertainment, computation, assessment, and collection of federal taxes.
Delport was the owner of Abundant Health & Wellness, a business described as a holistic health clinic, located in Springfield. Between Jan. 1, 2004, and Dec. 31, 2013, Delport received a total of approximately $4.7 million in gross receipts for Abundant Health & Wellness, which he did not report to the IRS as required by law and upon which he did not pay taxes.
Delport conspired with co-defendant Alton Louis Vaughn, Sr., 58, of Greene County, in an attempt to avoid paying taxes on approximately $4.7 million in business receipts. Vaughn, who is self-employed, derived a portion of his income from assisting in the preparation of federal income tax returns, advising taxpayers regarding their dealings with the IRS, and representing others in their dealings with the IRS. Vaughn has pleaded guilty to participating with Delport in the conspiracy.
In order to avoid paying taxes on his income, Delport purported to create an entity called The Shammah Foundation in the state of Washington on May 7, 2001. Delport described the purpose of The Shammah Foundation as “to do whatever will promote the Kingdom Of God, All Righteousness and the principles of Liberty and Justice.” Delport transferred a total of approximately $382,000 over a four-year period from Abundant Health & Wellness accounts to a bank account he controlled, held in the name The Shammah Foundation. Delport used The Shammah Foundation bank account to pay his personal expenses, without reporting those funds used for his personal expenses to the IRS as income, or paying any taxes.
Delport admitted that, on several occasions, he submitted documents to the IRS consisting of lengthy and frivolous arguments in order to impede and delay an IRS examination of his tax liability. Delport also admitted that he attempted to place his funds and assets beyond the reach of IRS collection efforts.
To impede a criminal investigation of Delport, Vaughn and Delport falsely reported to the Treasury Inspector General for Tax Administration that an IRS Revenue Officer and an IRS criminal investigator had coerced, intimidated and threatened Delport.
Delport and Vaughn also attempted to impede a federal grand jury in its investigation of Delport by refusing to comply with federal grand jury subpoenas for tax and business records, by sending correspondence to the U.S. Attorney’s Office falsely stating that an IRS Revenue Officer had personally seized and collected all of Delport’s original income documents for the years 2003 through 2009, and by Vaughn falsely testifying before the grand jury.
Delport and Vaughn admitted that they also attempted to impede a federal grand jury in its investigation by counseling an employee of Abundant Health & Wellness to refuse to testify before the grand jury, and by providing her with a written statement (which contained an inaccurate statement of the law) to read to the grand jury in lieu of complying with her legal obligation to testify.
Under the terms of today’s plea agreement, Delport must pay the government approximately $585,710 in restitution, which is the amount of taxes he attempted to avoid.
Under federal statutes, Delport and Vaugh are each subject to a sentence of up to five years in federal prison without parole, plus a fine up to $250,000. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Steven M. Mohlhenrich. It was investigated by IRS-Criminal Investigation and the Treasury Inspector General for Tax Administration.
Owner of CT Media Agency that Advertised Mortgage Assistance Pleads Guilty to False Advertising ChargeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that MATTHEW GOLDREICH, 46, of East Lyme, pleaded guilty today in New Haven federal court to a false advertising offense stemming from his production and dissemination of false advertisements for mortgage modification services.
According to court documents and statements made in court, GOLDREICH used his New London-based media agency, National Media Connection, LLC, to produce and air television, radio, and Internet advertisements for the National Mortgage Help Center, LLC (“NMHC”), a shell company incorporated by GOLDREICH. The advertisements falsely claimed that NMHC could help struggling homeowners obtain home mortgage loan modifications. For example, one advertisement that aired in 2010 stated: “Attention homeowners. We know it’s tough out there. And while America’s homeowners are facing more challenges than ever before, the National Mortgage Help Center is ready to help.” The same advertisement also stated: “We may be able to lower your rate to as low as 1% and cut your mortgage payment in half. Our trained specialists know all the new regulations to get you quick relief. We help thousands of homeowners every day.”
The advertisements included toll-free telephone numbers for mortgage borrowers to call for help modifying their mortgages. In truth, NMHC did not provide mortgage modification services for any homeowners, and operated only as a front. Homeowners who called the toll-free telephone numbers advertised by NMHC were routed to National Media Connection’s clients. The clients, in turn, paid National Media Connection for these “leads.” Under the pretense of helping homeowners modify their mortgages, certain National Media Connection clients then charged the homeowners fees and provided no services whatsoever in return.
GOLDREICH pleaded guilty to one count of false advertising, an offense that carries a maximum term of imprisonment of one year and a fine of up to $100,000. He is scheduled to be sentenced by Chief U.S. District Judge Janet C. Hall on November 5, 2015.
This ongoing investigation is being conducted by the U.S. Postal Inspection Service, Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), U.S. Department of Housing and Urban Development – Office of Inspector General, and Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorneys Avi Perry and Liam Brennan.
Nursing Facility Chain Agrees to Repay $415,000 to Resolve Civil Overpayment AllegationsRead the Press Release
Signature Care Centers, LLC, and its seven related nursing facilities – Gowrie Care Center, Lake Park Care Center, Perry Health Care Center, Primghar Rehabilitation and Care Center, Rosewood Manor, Woodlands Rehabilitation Center, and Sutherland Care Center – agreed to pay $415,044.46 to resolve civil allegations that the facility submitted inaccurate cost reports for Medicaid payments for the 2008 and 2010 fiscal years. As part of the investigation, the government did not allege any patient harm or jeopardy to patients’ conditions, and there was no admission of liability or wrongdoing as part of the settlement.
“This agreement signifies both the importance our office places on ensuring that all providers play by the rules and our office’s dedication to ensuring no federal money is misspent,” said Kevin W. Techau, United States Attorney for the Northern District of Iowa. “We appreciate the cooperation we received throughout the investigation and the willingness to resolve our concerns without the needless expense of additional resources.”
The matter was jointly pursued by the United States Attorney’s Office for the Southern and Northern Districts of Iowa. Of the total amount recovered, approximately $231,000 related to conduct associated with facilities in the Southern District of Iowa and the remaining $184,000 related to conduct associated with facilities in the Northern District of Iowa. The districts worked cooperatively during the investigation with Iowa Medicaid Enterprise, Iowa’s Medicaid Fraud Control Unit, and the Iowa Attorney General’s Office.
Non-Indian Physician Employed by Indian Health Services Pleads Guilty to Federal Child Pornography ChargeRead the Press Release
ALBUQUERQUE – Thomas Murray, 62, a non-Indian who resides in Acoma Pueblo, N.M., pleaded guilty today in federal court in Albuquerque, N.M., to a federal child pornography charge.
Murray is a physician who relocated to New Mexico in Oct. 2014, from Ohio to take a position as a general practitioner with Indian Health Services at the Acoma-Canoncito-Laguna Service Unit located in Acoma Pueblo. Murray was charged in a criminal complaint with transporting, distributing and possessing visual depictions of minors engaged in sexually explicit conduct.
According to the criminal complaint, the FBI initiated the federal investigation leading to Murray’s arrest on Dec. 19, 2014, after receiving a report from the New Mexico Attorney General’s Office. The report alleged that investigation by an investigation by the New Mexico Internet Crimes Against Children (ICAC) Task Force revealed that an IP Address subscribed to Murray’s residential address in Acoma was being used to download and distributing images consistent with child pornography. According to the criminal complaint, the FBI arrested Murray and executed a federal search warrant at his residence on Jan. 5, 2015.
Murray was subsequently indicted on Jan. 21, 2015, and charged with receiving and possessing child pornography from Oct. 19, 2014 through Jan. 5, 2015, in Cibola County, N.M.
During today’s change of plea hearing, Murray pled guilty to possession of child pornography under a plea agreement with the U.S. Attorney’s Office.
At sentencing, Murray faces a maximum penalty of 20 years in federal prison. Murray will be required to register as a sex offender after completing his prison sentence.
This case was investigated by the Albuquerque office of the FBI, the New Mexico Attorney General’s Office, the New Mexico ICAC Task Force and the New Mexico Regional Computer Forensic Laboratory. The case is being prosecuted by Assistant U.S. Attorney Jacob A. Wishard as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
The case also was brought as a part of the New Mexico ICAC Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 82 federal, state and local law enforcement agencies associated with the New Mexico ICAC Task Force, which is funded by a grant administered by the NMAGO. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
New Jersey Man Faces Heroin ChargesRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that, on August 12, 2015, Jonathan Nisbett, age 23, of Newark, New Jersey, was charged via federal criminal complaint with possessing with intent to distribute heroin. Nisbett made his initial appearance in federal court on August 12, 2015 before U.S. Magistrate Judge John M. Conroy. At that hearing, Judge Conroy scheduled a detention hearing for Monday, August 17, 2015. At the detention hearing, the Court will decide whether Nisbett will be detained pending trial or released to the supervision of the U.S. Probation Office. The U.S. Attorney’s Office has filed a motion asking the Court to detain Nisbett.
According to court records, the Vermont State Police Drug Task Force conducted a lengthy investigation into potential heroin distribution by Nisbett. On the evening of August 11, 2015, Vermont State Police officers arrested Nisbett at the Amtrak train station in Essex Junction, Vermont after Nisbett arrived in a train from New York City. In Nisbett’s bag, officers found approximately 2,250 bags of heroin. Colonel Matthew Birmingham of the Vermont State Police praised the work of the Drug Task Force, noting that Nisbett’s arrest was the culmination of many months of work by the local, state, and federal agents and officers assigned to the Task Force.
If convicted on the current charge, Nisbett would face a statutory maximum term of 20 years in prison. His actual sentence would be determined with reference to the federal sentencing guidelines. United States Attorney Eric Miller emphasized that the charge in the criminal complaint is only an accusation and Nisbett is presumed innocent unless and until he is proven guilty.
United States Attorney Miller added, “This case is a perfect example of federal, state, and local law enforcement agencies working hand-in-hand to combat heroin distribution in Vermont.” Miller commended the efforts of the agencies involved in investigating heroin crimes, which include the Drug Enforcement Administration, the Bureau of Alcohol Tobacco Firearms and Explosives, the Federal Bureau of Investigation, Homeland Security Investigations, the Vermont State Police Drug Task Force, and the Burlington Police Department.
The prosecution is being handled by Assistant U.S. Attorney Timothy C. Doherty, Jr. Nisbett is represented by David McColgin of the Federal Public Defender’s Office.
Nevada Man Pleads Guilty to Aggravated Identity TheftRead the Press Release
SACRAMENTO, Calif. —Glenn Litton, 47, of Carson City, Nevada, pleaded guilty today to aggravated identity theft arising from false statements he made in an application for a United States Passport, United States Attorney Benjamin B. Wagner announced.
According to court documents, on November 19, 2014, Litton submitted an application for a U.S. passport to a passport acceptance officer in Sacramento. In the application, Litton presented a number of false statements, including a false name, birthdate, and Social Security number that belonged to a real individual. Litton also presented a birth certificate, a debit card, and employment ID card all bearing the false name that he used in the passport application. As a result of the application, Litton was issued a U.S. passport in a false name.
This case is the product of an investigation by the U.S. State Department’s Diplomatic Security Service with assistance from the Federal Bureau of Investigation, the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and the Nevada Department of Motor Vehicles. Assistant United States Attorney Shelley D. Weger is prosecuting the case.
Litton remains in custody awaiting sentencing. He is scheduled to be sentenced by Judge Morrison C. England Jr. on November 12, 2015 at 9:00 a.m. Litton faces a statutory penalty of two years in prison and up to a maximum $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Native of Mexico Charged with Illegal ReentryRead the Press Release
Antonio Carrillo-Ortiz, 53, a native of Mexico, was charged today by indictment with illegal reentry after deportation, announced United States Attorney Zane David Memeger.
If convicted, the defendant faces a statutory maximum sentence of 10 years in prison, a fine of up to $250,000, up to three years of supervised release, and a $100 special assessment.
The case was investigated by Homeland Security Investigations and is being prosecuted by Assistant United States Attorney Nancy Rue.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Naperville Businessman Sentenced to Seven Years in Federal Prison for Defrauding Investors of More Than $3 MillionRead the Press Release
CHICAGO — A Naperville businessman who fraudulently coaxed his clients into investing millions of dollars in bogus Turkish bonds was sentenced Thursday to seven years in federal prison.
JOHN T. BURNS III persuaded a dozen clients of USA Retirement Management Services to invest more than $3.3 million in Turkish bonds on the promise of lucrative returns. Burns fraudulently told his clients, many of whom were retirees, that he had substantial experience investing money on behalf of clients, that he and his parents were personally invested in the bonds, and that the profitable returns in those investments were providing financial security to him and his family. In reality, Burns was a mortgage salesman with no professional investment experience, and his family hadn’t invested in the Turkish bond program because it didn’t exist.
“You were a good salesman, and they bought it,” U.S. District Judge Charles P. Kocoras said in pronouncing the 84-month sentence. Judge Kocoras also ordered Burns, 56, of Naperville, to pay $3,383,113 in restitution.
A jury in November convicted Burns on two counts of wire fraud and three counts of mail fraud. His scam was part of a larger Ponzi-type scheme involving two principal members of USA Retirement Management Services – ROBERT PRIBILSKI and MAHMUT ERHAN DURMAZ, according to a federal indictment returned against the trio. Taken together, the total scheme defrauded 120 defendants out of $28 million, according to the indictment.
Pribilski, 57, of Lisle, pleaded guilty last year to one count of wire fraud and is awaiting sentencing. Durmaz, 45, formerly of Streamwood and Los Angeles, Calif., fled the United States in 2010 and is a fugitive believed to be residing in Turkey. USA Retirement Management Services, which had offices in Oak Brook Terrace and southern California, was shut down by the U.S. Securities and Exchange Commission in 2010.
“Despite having no prior experience in estate planning or handling investments for clients, the defendant held himself out as an experienced, certified estate planner” to gain access to financial records and to pitch the Turkish bond investment to clients, Assistant U.S. Attorney Ryan S. Hedges argued in the government’s sentencing memorandum. “The defendant’s motive to lie was greed; pure and simple,” argued Hedges, noting that Burns received substantial commissions from USA Retirement Management Services for each client who pledged funds into the bogus bonds.
Evidence at Burns’ week-long trial revealed that he identified potential investors by purporting to provide estate planning seminars in Illinois and California. Burns sent out mass mailings to lure people to the seminars, including a postcard that promoted his presentation and offered a free meal to attendees. Burns then used the seminars to schedule follow up interviews with prospective clients, during which he pitched what he claimed was a uniquely profitable investment opportunity in the Turkish bonds. What Burns didn’t tell the clients is that the Turkish bonds didn’t exist, and that their investments were being used to pay other investors in a Ponzi-type scheme.
The sentence was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; and Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation. The government is being represented by Mr. Hedges and Assistant U.S. Attorney Matthew F. Madden.
The investigation falls under the umbrella of the Financial Fraud Enforcement Task Force, which includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement. The task force is working to investigate and prosecute significant financial crimes, and to combat discrimination in the lending and financial markets. For more information on the task force, visit: www.StopFraud.gov.
Missouri Hospital Agrees to Pay United States $5.5 Million to Settle Alleged False Claims Act ViolationsRead the Press Release
Two Southwest Missouri health care providers have agreed to pay the United States $5.5 million to settle allegations that they violated the False Claims Act by engaging in improper financial relationships with referring physicians, the Justice Department announced today. The two providers are Mercy Health Springfield Communities, formerly known as St. John’s Health System Inc., which owns and operates a hospital in Springfield, Missouri, and its affiliate, Mercy Clinic Springfield Communities, formerly known as St. John’s Clinic, which operates health care facilities in southwest Missouri.
“Financial relationships between heath care providers and their referral sources must be structured to comply with all applicable laws,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, the head of the Justice Department’s Civil Division. “When physicians are rewarded financially for referring patients to hospitals or other health care providers, it can affect their medical judgment, resulting in overutilization of services that drives up health care costs for everyone. In addition to yielding a recovery for taxpayers, this settlement should deter similar conduct in the future and help make health care more affordable.”
“This settlement protects patients and the public by enforcing the federal protections against illegal profit incentives for physicians,” said U.S. Attorney Tammy Dickinson of the Western District of Missouri. “A bonus structure that rewards physicians based on the value of their referrals is detrimental to both the quality and the cost of health care. Patients deserve assurances that they are receiving appropriate medical care, unbiased by hidden incentives. And taxpayers deserve assurances that the cost of public health care programs is not inflated by unnecessary procedures and services.”
“Health care organizations paying physicians based on referrals – as alleged in this case – undermines public trust in medical institutions and the financial integrity of federal health care programs,” said Special Agent in Charge Gerald T. Roy of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “We will aggressively pursue organizations that engage in conduct detrimental to taxpayers and government health programs.”
The settlement announced today resolved allegations that the defendants submitted false claims to the Medicare program for services rendered to patients referred by physicians who received bonuses based on a formula that improperly took into account the value of the physicians’ referrals of patients to the clinic. Federal law restricts the financial relationships that hospitals and clinics may have with doctors who refer patients to them.
The allegations settled today arose from a lawsuit filed by a whistleblower, Dr. Jean Moore, a physician who is employed by one of the defendants, under the qui tam provisions of the False Claims Act. Under the act, private citizens can bring suit on behalf of the government for false claims and share in any recovery. Dr. Moore will receive $825,000 from the recovery announced today.
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 $24.9 billion through False Claims Act cases, with more than $15.9 billion of that amount recovered in cases involving fraud against federal health care programs.
The case, United States ex rel. Moore v. Mercy Health Springfield Communities f/k/a St. John’s Health System, Inc., et al., Case No. 13-3019-CV (W.D. Mo.), was handled by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office of the Western District of Missouri and HHS-OIG. The claims settled by this agreement are allegations only, and there has been no determination of liability.
Metro Denver Bank Senior Vice President Pleads Guilty to EmbezzlementRead the Press Release
DENVER – Candice L. White, age 43, of Centennial, Colorado, pled guilty yesterday before U.S. District Court Judge Raymond P. Moore to two counts of embezzlement by a bank officer or employee, the U.S. Attorney’s Office, the Federal Bureau of Investigation (FBI) and the Special Inspector General of Troubled Asset Relief Program (SIGTARP) announced. White, who is free on bond, is scheduled to be sentenced by Judge Moore on November 3, 2015 at 4:00 p.m. White was first indicted by a federal grand jury in Denver on March 24, 2015.
According to the stipulated facts contained in the plea agreement, from at least July 2009 through March 2011, White, a Senior Vice President of Front Range Bank, knowingly and intentionally embezzled $92,930.27 from client accounts at the Bank. The plea agreement calls for White to pay restitution in this amount back to the Bank, which has already reimbursed its clients for their losses. The defendant accomplished her embezzlement by requesting cashier’s checks and withdrawing cash from escrow accounts and other accounts that were not closely monitored by the victim account holders. She would then use the embezzled money for her own personal use.
White was familiar with the victim accounts because she was the bank representative assigned to the accounts. To carry out her embezzlement, the defendant approached a teller at the bank with a type of withdrawal slip and falsely informed the teller that she needed the cashier’s check or cash for the client or to pay a bill on the client’s behalf. Due to her status as a Senior Vice President at the Bank, the tellers trusted that White was telling the truth and had the required supporting documentation for the transactions.
“Americans do not tolerate bank officials stealing money from bank customers. It’s that simple,” said U.S. Attorney John Walsh.
“Candice White’s guilty plea should send a strong message to anyone considering embezzling funds from banking institutions,” said FBI Denver Special Agent in Charge Thomas Ravenelle. “The FBI will continue to work with our law enforcement partners to protect financial institutions from those engaged in these types of schemes."
“As a senior executive at a TARP bank, the American taxpayers placed their trust in White,” said Christy Goldsmith Romero, Special Inspector General for TARP (SIGTARP). “White not only abused that trust, she also took advantage of her position within the bank to deceive her co-workers for her own personal gain. SIGTARP and our law enforcement partners will aggressively investigate allegations of crime undertaken at the expense of taxpayers' TARP investments and bring perpetrators to justice.”
Because Front Range Bank received TARP funds, the Special Inspector General (SIGTARP) assisted the FBI in the investigation.
The defendant faces not more than 30 years in federal prison, and up to a $250,000 fine, per count of conviction.
White is being prosecuted by Assistant U.S. Attorney Pegeen Rhyne.
Member of 19-Block Dipset Gang Sentenced to 87 Months in Prison for Possession of A FirearmRead the Press Release
United States Attorney Andrew M. Luger today announced the sentencing of MARTEL JAVELL EINFELDT, a/k/a “Peanut,” 26, to 87 months in federal prison, the top of the federal guideline range, for illegally possessing a firearm after having been previously convicted of two felonies in Hennepin County. The defendant, who was indicted on September 16, 2014, entered a guilty plea on January 21, 2015. EINFELDT was sentenced on August 12, 2015, before Judge Susan R. Nelson in U.S. District Court in St. Paul, Minn.
According to the defendant’s guilty plea and documents filed in court, on June 25, 2014, EINFELDT was found in possession of a Smith and Wesson, semi-automatic pistol. EINFELDT is a confirmed member of the 19-Block Dipset gang, whose members individually and collectively have engaged in patterns of violent criminal activity from 2006 until the present. EINFELDT warned law enforcement that members of a rival gang, the Taliban/Y.N.T. gang, would “get theirs,” for killing Tyrone Washington in 2013, the leader of the 19-Block Dipset gang. EINFELDT was previously convicted in Hennepin County for aggravated robbery and simple robbery, both felonies.
Assistant U.S. Attorney David Steinkamp said: “The defendant has personally suffered for being a member of the 19-Block Dipset. He has been shot twice, in the chest and in the face, lost his half-sister to gang violence, and has predicted he will be dead in three years. Hopefully, this lengthy prison sentence will give the defendant the chance to change the course of his life and prevent his prediction from becoming a reality.”
This case is part of a continuing effort by state and federal law enforcement to focus prosecutive resources on violent gang members who terrorize neighborhoods filled with law abiding, hard working citizens. This case was investigated by the Brooklyn Park Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Assistant United States Attorney David Steinkamp prosecuted this case.
Defendant Information:
MARTEL JAVELL EINFELDT, 26
Brooklyn Park, Minn.
Convicted:
- Felon in Possession of a Firearm, 1 count
Sentenced:
- 87 months in federal prison
- Three years supervised release
###
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Maryland Owner of Loan Brokerage Firms Pleads Guilty to Fraud and Obstruction of Justice ChargesRead the Press Release
Baltimore, Maryland – Jeong Joon Moon, a/k/a Patrick Moon, age 47, of Germantown, Maryland, pleaded guilty today to charges arising from a scheme to defraud financial institutions who loaned money to small businesses.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Small Business Administration (SBA) Inspector General Peggy E. Gustafson; Acting Postal Inspector in Charge David G. Bowers of the U.S. Postal Inspection Service - Washington Division; Assistant Director in Charge Andrew G. McCabe of the Federal Bureau of Investigation - Washington Field Office; and Acting Inspector General Fred W. Gibson, Jr. of the Federal Deposit Insurance Corporation.
Moon owned and operated JM Capital Solutions, Inc. and RNB Consulting, Inc., which were loan brokerage firms with offices located in Annandale and Springfield, Virginia. These firms specialized in securing loans for individuals interested in purchasing or refinancing small businesses in Maryland, Virginia, the District of Columbia and elsewhere.
Moon encouraged prospective borrowers to apply for business loans through the SBA’s Section 7(a) program, which authorizes SBA to help small businesses obtain financing by guaranteeing 75 to 90 percent of qualified loans made by commercial lenders. Small business owners are required to invest a certain amount of their own money into the business before they can qualify for the loan. Moon compiled and submitted to lenders the documentation necessary to substantiate the borrowers’ equity injection and ability to repay loans guaranteed by SBA, as well as documentation needed for other commercial loans.
According to his agreement to plead guilty to the indictment, from 2006 to April 2014, Moon and others defrauded financial institutions by submitting false copies of the borrowers’ monthly bank statements to reflect more money than was actually in the borrowers’ bank accounts. Moon and others also prepared and submitted false tax returns for the borrowers which inflated the borrowers’ income. The financial institutions relied on the false information to lend funds to the borrowers, which resulted in loan broker commissions being paid to JM Capital and RNB Consulting.
On July 12 and 15, 2013, Moon altered, destroyed or concealed documents relating to six loans guaranteed by SBA for six small businesses, intending to impede the federal investigation of such loans.
Moon has agreed to forfeit $14,708,000, the amount of fraudulently obtained loans.
Moon faces a maximum sentence of 30 years in prison for conspiracy to commit bank fraud, and for each of the 18 counts of bank fraud; and 20 years in prison on each of six counts for destruction of records in a federal investigation. U.S. District Judge William D. Quarles, Jr. scheduled sentencing for November 24, 2015 at 1:00 p.m.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein praised the SBA - OIG, U.S. Postal Inspection Service, FBI and FDIC - OIG for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Leo J. Wise and Marty Clarke, who are prosecuting the case.
MS-13 Member Sentenced to over 15 Years for Leadership Role in Violent Racketeering ConspiracyRead the Press Release
Greenbelt, Maryland – U.S. District Judge Roger W. Titus sentenced Wilmer Argueta, a/k/a “Chengo,” age 23, of Hyattsville, Maryland, today to 188 months in prison followed by five years of supervised release for conspiracy to participate in a racketeering enterprise known as La Mara Salvatrucha, or MS-13.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division; Special Agent in Charge Andre Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Chief Mark A. Magaw of the Prince George’s County Police Department; Prince George’s County State’s Attorney Angela D. Alsobrooks; Chief J. Thomas Manger of the Montgomery County Police Department; Chief Alan Goldberg of the Takoma Park Police Department; and Montgomery County State’s Attorney John McCarthy.
MS-13 is a national and international gang composed primarily of immigrants or descendants from El Salvador. Branches or “cliques” of MS-13, one of the largest street gangs in the United States, operate throughout Prince George’s County and Montgomery County, Maryland. MS-13 members are required to commit acts of violence both to maintain membership and discipline within the gang and against rival gangs.
According to his plea agreement, from 2009 until at least 2012, Argueta was a member and leader of the Peajes Locos Salvatrucha clique of MS-13. He and members of the Peajes and other MS-13 cliques committed crimes to further the interests of the gang, including murder, assault, robbery, extortion by threat of violence, obstruction of justice, witness tampering and witness retaliation.
On January 3, 2010, Argueta and other MS-13 members attempted to kidnap and assault two individuals with weapons because Argueta and his co-conspirators believed one of the individuals was associating with a rival gang. After the individuals fled in different directions, several MS-13 members caught one of the victims and sexually assaulted her as retribution for associating with a rival gang.
In addition on January 13, 2011, Argueta attended a Peajes clique meeting during which another MS-13 member criticized members of the clique for not committing enough violent crimes and encouraging clique members to target rival gang members with acts of violence. After the meeting, Argueta and other MS-13 members strangled and stabbed an individual whom the clique members believed to be a member of a rival gang. Although the MS-13 members left the victim for dead, he survived.
Argueta also admitted that between March and November 2011, he and other members of the Peajes clique extorted a former MS-13 associate under the threat of a “greenlight” (an order to kill). Argueta ordered other MS-13 associates to relay the death threats to the victim, and he contacted the victim himself on multiple occasions to arrange extortion payments.
Between September and November 2011, Argueta conspired to kill an individual who had been assaulted by Argueta and other MS-13 members and who had agreed to testify as a witness against Argueta in state court. Specifically, Argueta admitted that, while incarcerated in the Prince George’s County Corrections Facility, he ordered the “greenlight” by contacting a co-conspirator who then relayed the instruction to other MS-13 members. On Nov. 15, 2011, three MS-13 members drove to the victim/witness’ home, and one of the co-conspirators shot at the victim from a moving vehicle, striking the victim in the chest. The victim survived.
To date, five of the 14 defendants charged in this case have pleaded guilty to participating in the racketeering conspiracy.
United States Attorney Rod J. Rosenstein commended HSI Baltimore, the Prince George’s County and Montgomery County Police Departments, the Prince George’s County and Montgomery County State’s Attorney’s Offices, and the Takoma Park Police Department for their work in the investigation. Mr. Rosenstein also recognized the Prince George’s County Sheriff’s Office, HSI Baltimore’s Operation Community Shield Task Force and the Maryland Department of Corrections Intelligence Unit for their assistance. Mr. Rosenstein thanked Assistant United States Attorneys William D. Moomau, Lindsay Eyler Kaplan, and Trial Attorney Kevin L. Rosenberg with the Justice Department Criminal Division’s Organized Crime and Gang Section, who prosecuted this case.
MS-13 Member Sentenced to over 15 Years for Leadership Role in Violent Racketeering ConspiracyRead the Press Release
Participated in Assault, Kidnapping and Attempted Murder of a State’s Witness
A Maryland gang member was sentenced to 188 months in prison today for conspiring to participate in a racketeering enterprise known as La Mara Salvatrucha, or MS-13.
The sentence was announced by Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division; U.S. Attorney Rod J. Rosenstein of the District of Maryland; Special Agent in Charge Andre Watson of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI); Chief Mark A. Magaw of the Prince George’s County, Maryland Police Department; Prince George’s County State’s Attorney Angela D. Alsobrooks; Chief J. Thomas Manger of the Montgomery County, Maryland, Police Department; Chief Alan Goldberg of the Takoma Park, Maryland, Police Department; and Montgomery County State’s Attorney John McCarthy.
Wilmer Argueta, aka Chengo, 23, of Hyattsville, Maryland, pleaded guilty on April 20, 2015, before U.S. District Judge Roger W. Titus of the District of Maryland to one count of Racketeer Influenced and Corrupt Organizations Act (RICO) conspiracy.
According to the stipulated facts agreed to in connection with Argueta’s guilty plea, MS-13 is an international criminal organization and one of the largest street gangs in the United States with branches or “cliques” operating throughout Prince George’s and Montgomery Counties in Maryland. Both to maintain membership in the gang and to enforce internal discipline, members are required to engage in acts of intimidation and violence, including against members of rival gangs.
In connection with his plea, Argueta admitted that from 2009 until at least 2012, he was a member and leader of the Peajes Locos Salvatrucha clique of MS-13, and that he and members of the Peajes and other MS-13 cliques committed crimes to further the interests of the gang, including murder, assault, robbery, extortion by threat of violence, obstruction of justice, witness tampering and witness retaliation.
Argueta admitted that on Jan. 3, 2010, he and other MS-13 members attempted to kidnap and assault two individuals with various weapons because Argueta and his co-conspirators believed one of the individuals was associating with a rival gang. After the individuals fled in different directions, several MS-13 members caught one of the victims and sexually assaulted her as retribution for associating with a rival gang.
In addition, according to the plea agreement, on Jan. 13, 2011, Argueta attended a Peajes clique meeting during which another MS-13 member criticized members of the clique for not committing enough violent crimes and encouraging clique members to target rival gang members with acts of violence. After the meeting, Argueta and other MS-13 members strangled and stabbed an individual whom the clique members believed to be a member of a rival gang. Although the MS-13 members left the victim for dead, he survived.
Argueta also admitted that between March and November 2011, he and other members of the Peajes clique extorted a former MS-13 associate under the threat of a “greenlight” (an order to kill). Argueta admitted that he ordered other MS-13 associates to relay the death threats to the victim, and he contacted the victim himself on multiple occasions to arrange extortion payments.
According to admissions made in connection with his plea, between September and November 2011, Argueta conspired to kill an individual who had been assaulted by Argueta and other MS-13 members and who had agreed to testify as a witness against Argueta in state court. Specifically, Argueta admitted that, while incarcerated in the Prince George’s County Corrections Facility, he ordered the “greenlight” by contacting a co-conspirator who then relayed the instruction to other MS-13 members. On Nov. 15, 2011, three MS-13 members drove to the victim/witness’ home, and one of the co-conspirators shot at the victim from a moving vehicle, striking the victim in the chest. The victim survived.
To date, five of the 14 defendants charged in this case have pleaded guilty to participating in the racketeering conspiracy.
The case is being investigated by HSI Baltimore, the Prince George’s County and Montgomery County Police Departments, the Prince George’s County State’s Attorney’s Office, the Takoma Park Police Department and the Montgomery County State’s Attorney’s Office. The Prince George’s County Sheriff’s Office, HSI Baltimore’s Operation Community Shield Task Force and the Maryland Department of Corrections Intelligence Unit also provided assistance.
The case is being prosecuted by Trial Attorney Kevin L. Rosenberg of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys William D. Moomau and Lindsay Eyler Kaplan of the District of Maryland.
Leader of Methamphetamine Trafficking Conspiracy Sentenced to 18 Years in PrisonRead the Press Release
HONOLULU - United States District Judge Derrick K. Watson sentenced Serafine Magallon, 41, to 225 months imprisonment on August 11, for conspiracy to distribute and possess with intent to distribute more than five hundred grams of methamphetamine. In sentencing Magallon, a San Jose, California resident, Judge Watson found that he held a leadership role in the conspiracy.
United State Attorney Florence T. Nakakuni said that according to information produced in court, the case involved undercover and wiretap investigations and the coordinated efforts of law enforcement agents in Honolulu, Nevada, and California. The information reflected that in August 2012, an express mail parcel containing nine pounds of methamphetamine ("ice") was seized in Honolulu after it was sent from Las Vegas to Honolulu. The seizure resulted in the arrests of Honolulu and Las Vegas residents. Those arrests in turn led to additional arrests, including that of Magallon, and the seizure of approximately 20 more kilograms of "ice" in Las Vegas, Sacramento and Honolulu as a result of searches in all three locations.
The case resulted from an investigation by the Federal Bureau of Investigation and the Drug Enforcement Administration in the judicial districts of Hawaii, Nevada, and Eastern California, as well as the United States Postal Inspection Service. Assistant United States Attorney Beverly Wee Sameshima handled the prosecution.
KC Man Sentenced for Robbing Raytown BankRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was sentenced in federal court today for robbing a Raytown, Mo., bank.
Anthony Beeks, 53, of Kansas City, was sentenced by U.S. District Judge Beth Phillips to six years and six months in federal prison without parole. The court also ordered Beeks to pay $2,025 in restitution to the bank.
Co-defendant Robert T. Morris, 32, of Kansas City, was sentenced on Aug. 4, 2015, to 19 months in federal prison without parole and is jointly and severally liable for the restitution.
Beeks and Morris each pleaded guilty to stealing $2,025 from First Federal Bank, 9330 E. Gregory, Raytown.
On April 24, 2014, Morris entered the bank, approached the teller counter and provided the teller with a demand note, which was similar in verbiage to the following, “YOU KNOW WHAT THIS IS, HURRY UP, PUT THE MONEY IN THE BAG, NO FUNNY BUSINESS, HURRY UP.” The teller did not have access to any money, but walked over to another teller and showed her the demand note. The second teller then provided Morris with $2,025. Morris put the stolen money in a manila envelope and fled from the bank. Beeks drove the getaway vehicle during the bank robbery.
A witness told law enforcement officers that Morris had admitted his role in the robbery to him. The witness also recognized Morris from bank surveillance photos that were posted on a media Web site. According to this witness, Morris and Beeks were planning to commit another bank robbery in the near future.
Over the course of several days, law enforcement officers conducted surveillance on Morris and Beeks. During this time frame, officers observed what they believed to be multiple “casings” of various banks in the Kansas City metropolitan area. On May 22, 2014, a federal search warrant was executed on the vehicle Morris and Beeks had been driving. Morris was arrested the same day.
This case was prosecuted by Special Assistant U.S. Attorney Adam Caine. It was investigated by the FBI and the Kansas City, Mo., Police Department.
Justice Department Intervenes in Private Discriminatory Policing Lawsuit Against Maricopa County, Arizona, Sheriff Joseph ArpaioRead the Press Release
Today, U.S. District Court of the District of Arizona granted a motion by the Department of Justice’s Civil Rights Division to intervene in a private lawsuit, Melendres v. Arpaio, brought against Maricopa County Sheriff Joseph M. Arpaio. In Melendres, the federal court found in May 2013 that the Maricopa County Sheriff’s Office (MCSO) had engaged in unlawful discrimination against Hispanic persons in its traffic enforcement operations in violation of the Fourth and 14th Amendments to the U.S. Constitution and Title VI of the Civil Rights Act of 1964. Last month, the department reached a partial settlement in a lawsuit against Maricopa County and Sheriff Arpaio, resolving claims not addressed in this intervention. Moving forward, the department, court, plaintiffs and independent monitor can work to ensure the Sheriff’s office implements the court-ordered reforms.
In October 2013, the court issued an injunction setting forth specific reforms for MCSO’s law enforcement practices and appointed an independent monitor to oversee implementation of the injunction. In June, the U.S. District Court of the District of Arizona granted the department’s motion for summary judgment on its discriminatory policing claim, based on the court’s findings in Melendres. The department filed for intervention in Melendres so that it may enforce the court’s injunction and any future remedies ordered by the court to address Sheriff Arpaio’s and MCSO’s alleged violations of the court’s orders.
“As a party in the Melendres case, the Department of Justice can now work together with the court, the plaintiffs and the independent monitor to ensure that the Maricopa County Sheriff’s Office meaningfully implements the court-ordered reforms so that the constitutional rights of all people of Maricopa County are protected,” said Deputy Assistant Attorney General Mark Kappelhoff of the Civil Rights Division. “The Constitution guarantees that all people receive the equal protection of the law, and the department is now positioned to ensure that this important right is upheld.”
The department has had an ongoing parallel lawsuit against Sheriff Arpaio and Maricopa County since May 2012. That lawsuit alleged four patterns or practices of unconstitutional conduct: discriminatory policing against Hispanic persons in MCSO’s saturation patrols, general traffic enforcement and worksite operations targeting Hispanic immigrants; detentions in violation of the Fourth Amendment during MCSO’s worksite raids targeting Hispanic immigrants; failures in the provision of language access to Hispanic limited English proficient jail inmates; and retaliatory police action against critics of Sheriff Arpaio and MCSO.
Last month, on July 17, the department entered into settlement agreements to resolve the claims in its lawsuit that were not addressed by the summary judgment–one agreement addressing MCSO’s unlawful detentions and retaliation, and a separate agreement addressing MCSO’s language access policies and practices in its jails. On the same date, the parties filed a joint motion requesting that the U.S. District Court of the District of Arizona approve and agree to enforce the settlement agreement concerning MCSO’s unlawful detentions and retaliation. That motion is still pending before the court.
The injunction in Melendres, the settlement agreements in the Justice Department’s separate case and a description of the department’s previous investigation of and litigation against the Maricopa County Sheriff Arpaio and Maricopa County, will be available at: http://www.justice.gov/crt/about/spl/
Judge Sentences Pittsburgh Man to 5+ Years in Prison for Robbing 6 Area BanksRead the Press Release
PITTSBURGH - A former Allegheny County resident has been sentenced in federal court on his conviction for six counts of bank robbery, United States Attorney David J. Hickton announced today. Furay received a sentence of 64 months imprisonment, followed by three years supervised release, and Furay was ordered to pay restitution in the amount of $16,645.80, of which $4,990.00 shall be paid through forfeiture of funds recovered from Furay.
United States District Judge Gustave Diamond imposed the sentence yesterday on Christopher Furay, 33, formerly of Pittsburgh, Pennsylvania.
According to information presented to the court, between Dec. 1, 2014, and Jan. 16, 2015, Furay robbed six different banks in the Pittsburgh area including a First Commonwealth Bank located in Dormont, Pa.; a First National Bank located in Castle Shannon, Pa.; a PNC Bank located in Bethel Park, Pa.; a Citizens Bank located in Bethel Park, Pa.; a First Commonwealth Bank located in West Mifflin, Pa.; and a Citizens Bank in Brentwood, Pa. All of the banks are insured by the Federal Deposit Insurance Corporation.
Assistant United States Attorney Cindy K. Chung prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation, Dormont Borough Police Department, Castle Shannon Police Department, Bethel Park Police Department, West Mifflin Police Department, and Brentwood Police Department for conducting the investigation leading to the successful prosecution of Furay.
Johnstown Couple Sentenced for Under-reporting Income TaxesRead the Press Release
JOHNSTOWN, Pa. - Two residents of Johnstown, Pa., have each been sentenced in federal court to four years’ probation, the first 12 months of which must be satisfied by a condition of home detention; 100 hours of community service; $25,000 fine and to pay full restitution, including back taxes, penalties and interest to the Internal Revenue Service, on their convictions of filing false income tax returns, United States Attorney David J. Hickton announced today.
United States District Judge Kim R. Gibson imposed the sentences on David J. Murphy and Joyce Murphy.
According to information presented to the court, the Murphys filed individual income tax returns for the calendar years 2008, 2009, 2010 and 2011 failing to report $431,073 in taxable income, resulting in an underpayment of $140,834 in income tax owed to the United States.
Assistant United States Attorney John J. Valkovci, Jr., prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Internal Revenue Service-Criminal Investigation for the investigation leading to the successful prosecution of the Murphys.
Jefferson City Man Pleads Guilty to Child PornRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Jefferson City, Mo., man pleaded guilty in federal court today to receiving and attempting to distribute child pornography over the Internet.
Dustin Clay Trail, 34, of Jefferson City, pleaded guilty before U.S. Magistrate Judge Matt J. Whitworth to all three of the counts contained in a Feb. 12, 2014, federal indictment.
By pleading guilty today, Trail admitted that he received child pornography over the Internet on Sept. 3, 2013. Trail also pleaded guilty to attempting to distribute child pornography over the Internet on Sept. 4, 2013, and to possessing child pornography from May 2013 to Oct. 31, 2013.
The investigation began in May 2013 when the National Center for Missing and Exploited Children received CyberTip report regarding child pornography being sent by e-mail. Law enforcement officers executed a search warrant at Trail’s residence and seized a desktop computer, three hard drives and compact discs, which Trail must forfeit to the government.
Under federal statutes, Trail is subject to a mandatory minimum sentence of five years in federal prison without parole, up to a sentence of 50 years in federal prison without parole, plus a fine up to $750,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Jim Lynn. It was investigated by the FBI, the Boone County Cyber Crimes Task Force and U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."