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1 October 2015
Sutter County Man Sentenced to 12.5 Years in Prison for Role in $14 Million Unemployment and Disability Benefits Fraud SchemeRead the Press Release
SACRAMENTO, Calif. — United States District Judge Morrison C. England Jr. sentenced Mohammad Nawaz Khan, 60, today to 12 and a half years in prison for his role in a $14 million unemployment and disability benefits fraud scheme, United States Attorney Benjamin B. Wagner announced.
In sentencing, Judge England said that this was “one of the longest-running, most sophisticated fraud schemes that I have ever seen.” Judge England ordered Khan to be taken into custody at the end of today’s hearing.
According to court documents, Mohammad Nawaz Khan and other family members operated a scheme that sold fake paystubs to other people in the community and used the companies they controlled to report false wages for the individuals who purchased those paystubs. At times the Khans instructed the purchasers how to use the fake paystubs to fraudulently claim unemployment and disability benefits. The Khans set up a storefront in Yuba City and sold the fraudulent paystubs on a walk-in basis. Purchasers found out about the opportunity to commit fraud with the Khans in a number of ways. Some purchasers approached the Khans looking for work and were told to commit fraud instead. Over the course of the conspiracy, the defendants reported wages for over 400 separate individuals that resulted in more than 2,000 fraudulent claims for unemployment and disability benefits. The loss in this case is more than $14 million.
U.S. Attorney Wagner stated: “This defendant was part of a massive and brazen fraud that corrupted many members of their community. The fraud occurred over the course of decades and involved hundreds of individuals who, but for the defendants running the scheme, would likely never have become involved in criminal conduct.”
“Khan and his co-conspirators defrauded the State of California for more than 20 years,” said Special Agent in Charge Monica Miller of the FBI's Sacramento field office. “He victimized California taxpayers and placed a burden on deserving benefits claimants. This sentence is a fitting reflection of the severity of his crimes and the efforts of the FBI and our partners to end to Khan’s scheme.”
“The Employment Development Department is proud to have partnered with the investigations that stopped this criminal defrauding of programs so vital to unemployed and disabled workers,” said EDD’s Director Patrick W Henning Jr.
“Today’s sentencing sends a powerful message that combating unemployment insurance fraud remains a high priority for the Office of Inspector General. We will continue to work with our law enforcement partners to safeguard unemployment insurance benefits from illicit enrichment schemes and conspiracies carried out against Department of Labor programs,” stated Abel Salinas, Special Agent-in-Charge, U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations in Los Angeles.
To date, 28 individuals have been charged and 24 have pleaded guilty to various offenses connected to the scheme. Last week, Judge England sentenced co-defendants Mohammad Adnan Khan, 35, of Live Oak, to nine years in prison; Iqila Begum Khan, 34, of Live Oak, to five years in prison; and Mohammad Shahbaz Khan, 50, of Yuba City, to seven years and three months in prison and a $50,000 fine. Each was also ordered to serve a term of three years of supervised release following the service of their prison terms. A hearing will be held November 5, 2015 to determine the amount of restitution owed to the California Employment Development Department. Parole has been abolished in the federal system, and each defendant will be required to serve at least 85 percent of the prison time imposed.
This case is the product of an investigation by the Federal Bureau of Investigation; the U.S. Department of Labor, Office of Inspector General; and the California Employment Development Department, Investigations Division. Assistant United States Attorneys Jared C. Dolan and Sherry D. Haus are prosecuting the case.
Suspect Charged for Arson of Liquor Store During the Baltimore RiotsRead the Press Release
Baltimore, Maryland – Darius Raymond Stewart, age 21, of Baltimore, has been charged in a federal criminal complaint with malicious destruction of a commercial building, arising from the arson of a liquor store on April 27, 2015, during the riots following the death of Freddie Gray. One victim was trapped and seriously injured inside the store, and another escaped with minor injuries. The criminal complaint was filed on September 24, 2015 and unsealed today. Stewart was arrested on September 28, on unrelated state charges. Stewart will make his initial appearance on the federal charges on Friday, October 2, 2015 at 11:00 a.m. in U.S. District Court in Baltimore, Courtroom 7B, before U.S. Magistrate Judge Stephanie A. Gallagher.
“There are recordings and other evidence of people looting businesses, starting fires and attacking innocent victims, and it is our duty to prosecute the perpetrators,” said U.S. Attorney Rod J. Rosenstein. “Citizens need to know that the rule of law will be upheld, and criminals who destroy property and jeopardize lives will be held accountable.”
The charges were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) - Baltimore Field Division; and Interim Commissioner Kevin Davis of the Baltimore Police Department.
“ATF has continuously stated that we would focus our investigative efforts to ensure that the individuals who set these fires across our city would be caught,” said ATF Special Agent in Charge William P. McMullan. “Today's arrest is another example of ATF's commitment to holding people responsible for their violent actions.”
According to the affidavit filed in support of the criminal complaint, on April 27, 2015, at approximately 8:33 p.m. Baltimore City Fire Department dispatch received a call reporting a fire at a liquor store located in the 2200 block of West North Avenue. The caller reported that looters had set the building on fire and there was at least one person inside. The Baltimore City Fire Department went to the store and discovered a small trash can on fire inside the store. Approximately 20 minutes later, the fire department was again sent to the store for another fire. They again extinguished the fire and discovered an unconscious victim in the basement of the building. The victim suffered smoke inhalation and carbon monoxide poisoning and was hospitalized for one week. The damage caused by the fire was extensive and it is estimated that it will cost approximately $350,000 to repair and restore the building.
The store’s owners reported that on the day of the incident a group of approximately 20 to 30 people entered the store and began banging on the bulletproof plexiglass window with pipes and crow bars before being chased off by a member of the community. A second wave of dozens of people then entered the business and began ransacking and looting the store. Baltimore CitiWatch surveillance footage captured individuals repeatedly assaulting and robbing one of the owners as he stood outside the store while it was being looted. He was eventually rescued by police, but suffered a head injury. The second owner hid inside the building until he became aware of a fire inside the building. He was able to escape through a back door to the roof. He jumped down off the roof, injuring his ankle, and escaped in his vehicle.
A surveillance camera recorded a man wearing camouflage pants, a dark jacket with an orange lining, and a skull cap, intentionally setting multiple fires within the store. Fire investigators discovered multiple areas of origin within the store, consistent with the locations observed on the surveillance footage.
ATF issued a reward poster with a photo of the man seen in the store surveillance video. According to the affidavit, a confidential source contacted ATF and identified the man in the photo as Darius Stewart. Other witnesses also identified Stewart from CitiWatch surveillance camera footage as well as from the store’s surveillance video.
Stewart faces a mandatory minimum sentence of five years and a maximum of 20 years in prison for malicious destruction of a commercial building by fire. Stewart remains detained.
A criminal complaint is not a finding of guilt. An individual charged by criminal complaint is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein commended ATF and the Baltimore City Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Judson T. Mihok, who is prosecuting the case.
Strata Pathology to Resolve Allegations Regarding Kickback PaymentsRead the Press Release
BOSTON – Lexington-based Strata Pathology Laboratory, Inc. (known as StrataDx), has agreed to pay $558,793 to resolve allegations that it violated the False Claims Act by inducing physicians to refer Medicare and Medicaid patients to Strata by paying kickbacks in the form of sham consulting fees and providing unlawful discounts to physicians.
“Billing arrangements like Strata’s, which provide a financial incentive to physicians to refer Medicare and Medicaid patients to a particular lab are unlawful,” said United States Attorney Carmen M. Ortiz. “When a company prioritizes profit, it disregards laws that are intended to protect patient health and the integrity of the healthcare system. Settlements like this serve to deter illicit kickback schemes.”
“When laboratory referrals are made based on the amount of kickback money physicians can make from a lab, both patients and the healthcare system suffer,” said Acting Special Agent in Charge Joseph Bonavolonta of the Federal Bureau of Investigation’s Boston Division. “Patients expect their physicians to choose laboratories based on their competent medical practices, not how much money they can pocket. The FBI will continue to aggressively investigate illegal kickback schemes designed to put profits over patient care.”
“Companies that financially reward physicians in exchange for the referral of business -- as the government contended in this case -- corrupt the physicians’ impartial medical judgment and drive up health care costs for everyone,” said Special Agent in Charge Phillip M. Coyne, U.S. Department of Health and Human Services Office of Inspector General. “We will continue to investigate such wasteful business arrangements.”
According to the settlement agreement, Strata acknowledged paying consulting fees to two referring physician practices that did not provide consulting services in exchange. Strata also acknowledged entering into “account billing” arrangements with seven referring physician practices that facilitated fee-splitting between the parties. The government alleges that, under these arrangements, Strata allowed the physician practices to bill patients’ private insurers directly for pathology services that Strata performed. Strata then charged the physician practices for its services at deeply discounted rates, allowing the physician practices to pocket the difference between Strata’s discounted price and the amount of the private insurers’ full reimbursement. All of the physician practices allegedly referred specimens of federal health care program beneficiaries to Strata, and Strata billed those programs at its full price.
The United States alleges that Strata’s claims to Medicare and Medicaid were false because they resulted from kickbacks that Strata provided the referring physicians in violation of the federal Anti-Kickback Statute. The Anti-Kickback Statute prohibits offering, paying, soliciting, or receiving remuneration to induce referrals of items or services covered by Medicare, Medicaid, and other federally funded programs. Although Strata’s account billing arrangements did not explicitly condition the discounted prices upon the physicians’ referrals of Medicare and Medicaid business to Strata, the United States alleges that Strata offered the discounts with the understanding that physicians who entered into account billing arrangements with Strata would refer virtually all of their patients, including Medicare and Medicaid patients, to Strata.
The settlement announced today stems from a complaint filed by a former Strata employee under the whistleblower provisions of the False Claims Act, which authorize private parties to sue on behalf of the United States and to receive a portion of any recovery. The settlement amount will be shared between the United States, the whistleblower, and the Commonwealth of Massachusetts.
U.S. Attorney Ortiz, Acting FBI SAC Bonavolonta, and HHS-OIG SAC Coyne, made the announcement today. The matter was handled by Assistant U.S. Attorneys Abraham George and Deana El-Mallawany in Oritz’s Civil Division, Special Assistant U.S. Attorney Joshua H. Orr, and Assistant Attorney General Angela Neal of the Medicaid Fraud Division of Massachusetts Attorney General Healey’s Office.
Statement of Department of Justice on Survey of Community Attitudes Towards Seattle Police Department Filed with U.S. District Court TodayRead the Press Release
SEATTLE – A recent survey conducted by national polling firm Anzalone Liszt Grove Research as part of the consent decree between the Department of Justice (DOJ) and the City of Seattle to measure community attitudes towards the Seattle Police Department (SPD) has found the overall approval of SPD improving, disapproval of the department decreasing, and fewer troubling interactions between officers and Seattle residents, particularly among African Americans and Latinos, notably in the area of excessive force. The scientific poll, filed with the U.S. District Court today, was commissioned by the federal Monitor with input from the parties. The poll follows a similar survey conducted in 2013.
A summary of the survey can be found here.
This poll, along with a rigorous examination of how police services are delivered in Seattle and other qualitative reviews of SPD’s community relations, including work conducted by the Community Police Commission, will inform an overall assessment of community perceptions and public confidence that will be filed by the federal Monitor with the Court in December.
The following is a statement from Annette L. Hayes, U.S. Attorney for the Western District of Washington, on behalf of the U.S. Attorney’s Office and DOJ’s Civil Rights Division:
“The goals of true and lasting police reform must include both increased public safety and public trust. They go hand in hand. According to this survey, there are positive signs that Seattle residents are giving SPD higher marks for its work, and, perhaps most encouraging, there are far fewer people reporting problematic interactions with SPD. As important, the people of Seattle continue to believe that SPD is keeping them safe. Still, this data helps identify areas where there is work to do, particularly in the African-American and Latino communities, where positive perceptions and improved interactions lag the rest of our community.”
Anzalone Liszt Grove Research conducted 692 live cellphone and landline telephone interviews with adults 18 and older in Seattle, with an additional 67 interviews among Latinos and 141 interviews among African Americans. The survey can be found here.
Six Members of Large-Scale Multi-State Methamphetamine Organization Sentenced to PrisonRead the Press Release
BOISE - Jose Luis Corrales Cruz, 58, of Romona, California; Juan Navarette, 20, of Ontario, Oregon; Jorge Sandoval, 22, of Placentia, California, Marco Antonio Tinoco, 26, of Ontario, Oregon; Hernan Arteaga-Solchaga, 23, of Nampa, Idaho; and Ruby Martinez, 41, of Nampa, Idaho were sentenced over the past week to federal prison for their role in a large-scale, multi-state methamphetamine trafficking organization, U.S. Attorney Wendy J. Olson announced. Visiting Senior United States District Judge William B. Shubb sentenced Cruz to 72 months imprisonment and ordered $100,000 in cash proceeds to be forfeited. Cruz will be deported to Mexico after serving his prison sentence. Judge Shubb sentenced Juan Navarette to 37 months imprisonment, to be followed by four years of supervised release. Navarette was also ordered to forfeit $100,000 in cash proceeds.
Earlier this week, Chief U.S. District Judge B. Lynn Winmill sentenced Jorge Sandoval to 87 months imprisonment, to be followed by 4 years of supervised release. Sandoval was ordered to forfeit $100,000 in cash proceeds. Judge Winmill sentenced Marco Tinoco to 33 months imprisonment, to be followed by four years of supervised release, and ordered cash proceeds of $4500 to be forfeited. Yesterday, Judge Winmill sentenced Hernan Arteaga-Solchaga to 30 months imprisonment, with no supervised release to follow. Arteaga-Solchaga will be deported back to Mexico after serving his prison sentence. This morning, Judge Winmill sentenced Ruby Martinez to serve 24 months imprisonment, to be followed by three years of supervised release, and ordered her to forfeit $2500 in cash proceeds.
Co-defendant’s Maribel Betancourt, 41, of Meridian, Idaho; Oscar Adan Jaimez-Munoz, 35, of Placentia, California; Ruben Rangel Perez, 34, of Placentia, California, and Andres Navarrette, Jr., 26, of Ontario, Oregon, are set for sentencing later this fall. Francisco Sandoval, 60, of Placentia, California is pending a change of plea hearing, while Horacio Linares, 47, of Anaheim, California and Rafael Sotero Lopez-Vasquez, 43, of Nampa, Idaho are set for jury trial on November 16, 2015. Carmen J. Gomez-Rangel, 49, of Nampa, Idaho, remains a fugitive.
This case was investigated by the Drug Enforcement Administration, the Ada County Sheriff’s Office, the Boise Police Department, the Meridian Police Department and the Nampa Police Department, as well as the Organized Crime and Drug Enforcement Task Force (OCDETF), which includes the cooperative law enforcement efforts of the Federal Bureau of Investigation; Drug Enforcement Administration; Bureau of Alcohol, Tobacco, Firearms and Explosives; U. S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Internal Revenue Service-Criminal Investigation; and U.S. Marshals Service. The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
Shreveport resident pleads guilty to producing child pornographyRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced today that a Shreveport resident pleaded guilty to producing child pornography.
Jason Carl Fruge, 45, of Shreveport, pleaded guilty before U.S. District Judge Elizabeth E. Foote to one count of production of child pornography. According to evidence presented at the guilty plea, during the course of investigating Fruge for other offenses, agents found a video on Fruge’s computer of a minor male child engaged in a sexually explicit sex act. Fruge pretended to be an attractive female in order to convince the minor to engage in the sexual act. Fruge directed the minor child to commit the sexual explicit act and recorded the minor using an online video chat service similar to Skype on June 9, 2014.
Fruge faces 15 to 30 years in prison, five years to life of supervised release, a $250,000 fine and mandatory registration as a sex offender. A sentencing date of January 28, 2016 was set.
This case is part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood combines federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Those concerned may leave tips with the FBI at tips.fbi.gov. Tips may be submitted anonymously. The Shreveport FBI office number is (318) 861-1890.
The U.S. Department of Homeland Security/Homeland Security Investigations/Immigration & Customs Enforcement (ICE) also encourages the public to report suspected child predators and any suspicious activity through its toll-free hotline at (866) DHS-2ICE. Investigators are available at all hours to answer hotline calls. Tips or other information can also be submitted to ICE online by visiting their website at www.ice.gov/exec/forms/hsi-tips/tips.asp or through the Operation Predator smartphone application (http://www.ice.gov/predator/smartphone-app). Tips also may be submitted anonymously.
The FBI and ICE Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney Robert W. Gillespie Jr. is prosecuting the case.
Sentencings for September 17 - September 29, 2015Read the Press Release
Ronald Kenneth Stankus, 39, of Casper, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on September 29, 2015, for carrying a firearm during and in relation to a drug trafficking crime. Stankus was arrested in Casper, Wyoming. He received 150 months imprisonment, to be followed by five years of supervised release, and was ordered to pay a $500.00 fine and a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Louis Hoopes, 44, of Lyman, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on September 22, 2015, for conspiracy to possess with intent to distribute no less than 200 grams of a mixture or substance containing a detectable amount of methamphetamine. Hoopes was arrested in Salt Lake City, Utah. He received 70 months imprisonment, to be followed by four years of supervised release, and was ordered to pay a $400.00 fine and a $100.00 special assessment. This case results from an ongoing Organized Crime Drug Enforcement Task Forces (OCDETF) joint investigation conducted by the Wyoming Division of Criminal Investigation and the U.S. Drug Enforcement Administration. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
Beverly Hardy, 53, of Las Vegas, Nevada, was sentenced by Federal District Court Judge Scott W. Skavdahl on September 17, 2015, for distribution of methamphetamine and distribution of oxycodone. Hardy was arrested in Las Vegas, Nevada. She received 60 months imprisonment, to be followed by four years of supervised release, and was ordered to pay a $400.00 fine and a $200.00 special assessment. This case was investigated by the Washakie County Sheriff’s Office, the Wyoming Division of Criminal Investigation, and the U.S. Postal Service Inspector.
Second Conspirator Admits to Jewelry Store Heist that Included a Carjacking and KidnappingRead the Press Release
Baltimore, Maryland – Peter Aleksandrov Magnis, age 27, of Hydes, Maryland, pleaded guilty today to a robbery conspiracy in connection with the robbery of a jewelry store, including a carjacking and kidnapping.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation; Chief James W. Johnson of the Baltimore County Police Department; and Baltimore County State’s Attorney Scott Shellenberger.
According to his plea agreement, Magnis was part of a conspiracy to rob a Pikesville jewelry store. Specifically, in the fall of 2012, a co-conspirator devised a plan to commit an armed robbery of a jewelry store, known to be owned and operated by members of the Russian community of Northwest Baltimore. The co-conspirator recruited Magnis, Grigoriy Zilberman and others to participate in the robbery. Prior to the robbery, the conspirators gathered intelligence, including conducting surveillance and attaching a GPS device to the car of an employee of the jewelry store in order to learn the employee’s travel routine and habits. Zilberman also exploited his friendship with the employee to obtain information about the operation of the jewelry store and the habits of the employee.
According to Magnis’ plea agreement, on January 15, 2013, Zilberman enticed the employee to visit his home, in order to alert the other co-conspirators of the employee’s whereabouts. Early in the morning on January 16, 2013, as the employee was driving from Zilberman’s home, four co-conspirators used a law enforcement-type light bar and a loudspeaker to impersonate a police officer and pull over the employee. Brandishing firearms, the co-conspirators removed the employee from his car, bound and blindfolded the employee, put him into the trunk of his own car, and drove him to a predetermined location. According to the plea agreement, once at the location, Magnis’ co-conspirators continued to brandish firearms and threatened to kill the employee’s family if he did not comply with their demands or if he reported the incident to police. The employee complied and at approximately 3:52 a.m., two co-conspirators drove the employee’s vehicle from the remote location to the jewelry store, while other co-conspirators stayed with the employee. Additional co-conspirators were stationed near the jewelry store to act as “look-outs.” The two co-conspirators entered the jewelry store and stole jewelry, stones, and watches, valued at about $500,000. The 2 co-conspirators drove back to the remote location, where the employee was placed back into the trunk of his car and driven to another location, where he was left. The employee was able to kick his way out of the trunk through the back seat of his car.
On January 18, 2013, one of the conspirators sold a portion of the stolen jewelry for approximately $29,000 to an FBI informant. On January 19, 2013, the conspirator traveled to Brooklyn, New York to sell some of the jewelry and stones taken during the robbery, receiving over $100,000. On January 21, 2013, the conspirator returned to Maryland and divided the cash proceeds among the members of the conspiracy and others.
On November 19, 2014, during the search of Magnis’ residence and the adjacent property, a bag of guns was found buried on the adjacent property within 20 feet of Magnis’ property. Inside the bag were six firearms (all rifles and shotguns), each individually wrapped in clear plastic wrap. Two of the firearms were sawed off shotguns, and one of these had an obliterated serial number. Both of those guns were stolen during an armed home invasion of residence in Reisterstown, Maryland, on July 22, 2012.
In addition, in January and May 2013 Magnis purchased three handguns. One of those handguns was seized during a car stop and search of a co-conspirator in September 2013. The co-conspirator was prohibited from purchasing or possessing firearms due to a previous felony conviction.
Magnis faces a maximum sentence of 20 years in prison for the robbery conspiracy. U.S. District Judge J. Frederick Motz has scheduled sentencing for December 22, 2015, at 10:30 a.m.
Grigoriy (Greg) Zilberman, age 24, of Owings Mills, Maryland, previously pleaded guilty to his role in the robbery conspiracy and is scheduled to be sentenced on December 18, 2015.
United States Attorney Rod J. Rosenstein praised the FBI, Baltimore County Police Department, and Baltimore County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Paul E. Budlow and Aaron S. J. Zelinsky, who are prosecuting the case.
Sarasota Man Pleads Guilty to Making False Statements in Mortgage Loan ApplicationsRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that Randy Platfoot (54, Clearwater) today pleaded guilty to making false statements in mortgage loan applications. He faces a maximum penalty of 30 years in federal prison. His sentencing is scheduled for December 18, 2015.
According to court documents, between September 2005 and April 2007, Platfoot applied for two separate mortgage loans from Washington Mutual Bank, in connection with the purchase of properties in Myakka City and Sarasota. In the loan documents that Platfoot signed and submitted to the bank, he made false statements about his income and about the lack of subordinate financing in connection with one of the properties. Washington Mutual Bank suffered financial losses after Platfoot defaulted on both loans.
This case was investigated by the Federal Bureau of Investigation and the Federal Deposit Insurance Corporation-Office of Inspector General. It is being prosecuted by Assistant United States Attorney Jay L. Hoffer.
Rumford Woman Sentenced to Six Months of Home Confinement for Social Security FraudRead the Press Release
Contact: Halsey B. Frank
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Marie Angel Michaud, formerly Marie Angel Broad, 43, of Rumford, Maine, was sentenced in U.S. District Court by Judge Jon D. Levy to three years of probation with six months of home confinement for Social Security fraud. She was also ordered to pay $19,978 in restitution. Michaud pleaded guilty on April 22, 2015.
According to court documents, in January 2002, Michaud was granted and began receiving Social Security Supplemental Security Income ("SSI") benefits. SSI pays benefits to persons who are aged, blind or disabled and who have proven financial need. Recipients of SSI are responsible for reporting material changes in their situation such as changes in their household composition and marital status. In November of 2010, Broad married but did not report that change to the Social Security Administration ("SSA"). Thereafter, during periodic redeterminations for continued eligibility for benefits, Michaud did not disclose her marital status and falsely stated that she was not married. As a result of her concealment, Broad received benefits to which she was not entitled.
In pronouncing sentence, Judge Levy observed that Social Security fraud is a serious crime that is difficult to detect and that is costly for the public and for government.
The case was investigated by the SSA’s Office of Inspector General.Riviera Beach Resident Sentenced to 20 Years in Prison as an Armed Career CriminalRead the Press Release
A Riviera Beach man was sentenced yesterday to 20 years in prison for being a felon in possession of firearms.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, Carlos Canino, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Division, Stephen J. Stepp, Chief, Palm Beach Gardens Police Department (PBGPD) and Ric Bradshaw, Sheriff, Palm Beach County Sheriff’s Office (PBSO), made the announcement.
Joseph McDonald, 36, of Riviera Beach, was sentenced by U.S. District Judge Donald M. Middlebrooks to 240 months (20 years) in federal prison, to be followed by five years of supervised release, for being an armed career criminal in possession of a firearm.
According to evidence presented at trial, McDonald fled from the police on two separate occasions during the course of stolen vehicle investigations. On July 28, 2013, McDonald dropped a fully loaded 9 mm semi-automatic pistol during his flight from members of the Palm Beach Gardens Police Department. Then, on December 17, 2013, deputies with the Palm Beach County Sheriff’s Office recovered a fully semi-automatic pistol from McDonald’s flight path. A forensic examination report confirmed that the firearm that was recovered on December 17, 2013 had been used in a Jupiter, Florida shooting the preceding day. McDonald had previously been convicted of numerous felonies and was thereby prohibited from possessing a firearm.
McDonald was sentenced under the Armed Career Criminal Act, which provides a mandatory sentencing range of fifteen years to life for individuals who have been convicted of a federal gun offense and have at least three prior qualifying felony convictions for crimes of violence and/or serious drug offenses.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is a Department of Justice nationwide initiative that combines traditional law enforcement activities with community-based support and intervention programs. The two primary goals of the PSN initiative are to reduce and prevent violent crimes and to help past offenders adjust and re-enter the community. This program emphasizes and facilitates cooperative federal, state and local prosecution of firearm crimes, violent criminals, repeat violent offenders and gang related criminal activity.
Mr. Ferrer commended the investigative efforts of ATF, PBGPD and PBSO. The case was prosecuted by Assistant U.S. Attorneys Brandy Galler and Daniel Funk.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov
River Ridge Man Charged with Fraud in Security System ContractsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that WAYNE WILLIAMS, age 37, of River Ridge, was charged today in a two-count Bill of Information with wire fraud.
According to the Bill of Information, WILLIAMS was responsible for selling security systems and services, and also for negotiating and signing customer contracts on behalf of ADT Security and Protection One. WILLIAMS was compensated by his employers through commissions received on contracts he negotiated.
The charges filed allege that WILLIAMS forged a customer’s signature on a $466,046.18 ADT Security equipment and installation services contract. Without ADT Security’s knowledge, the defendant secretly executed a separate contract with the customer in which only $109,148.93 was charged. The defendant received approximately $73,576.72 in commissions from ADT Security as a result of the fraudulent contract.
With regard to Protection One, the charges filed allege that WILLIAMS forged a purported customer’s signature on an $80,240.48 Protection One equipment and installation services contract. The defendant received approximately $2,353.99 in commissions from Protection One as a result of this fraudulent contract.
If convicted, WILLIAMS faces a maximum term of imprisonment of twenty years incarceration, three years of supervised release after any term of imprisonment, and a $250,000 fine.
United States Attorney Polite reiterated that the Bill of Information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation in investigating this matter. Assistant United States Attorney G. Dall Kammer is in charge of the prosecution.
Rio Rancho Man Sentenced to Ten Years for Violating Federal Narcotics Trafficking and Firearms LawsRead the Press Release
ALBUQUERQUE – Christopher Mathuren, 39, of Rio Rancho, N.M., was sentenced this afternoon in federal court in Albuquerque, N.M., to 120 months in prison followed by three years of supervised release for his methamphetamine trafficking and firearms convictions.
The sentence was announced by U.S. Attorney Damon P. Martinez, 13th Judicial District Attorney Lemuel L. Martinez, Special Agent in Charge Thomas G. Atteberry of the Phoenix Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives, and Chief Michael Geier of the Rio Rancho Police Department.
Mathuren, whose prior criminal history includes convictions for possession of marijuana with intent to distribute, possession of methamphetamine, and possession of methamphetamine with intent to distribute, is prosecuted as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible. Because New Mexico’s violent crime rates, on a per capita basis, are amongst the highest in the nation, New Mexico’s law enforcement community is collaborating to target repeat offenders from counties with the highest violent crime rates, including Sandoval County, under this initiative.
Mathuren was arrested on Oct. 28, 2014, on a three-count indictment charging him with being a felon in possession of firearms and ammunition; possession of methamphetamine with intent to distribute; and using and carrying a firearm in furtherance of a drug trafficking crime. According to the indictment, Mathuren committed the three offenses on July 22, 2014, in Sandoval County, N.M. The indictment was superseded on Dec. 16, 2014, to add two additional charges of being a felon in possession of firearms and ammunition on Oct. 28, 2014 – the date on which Mathuren was arrested on the original indictment.
On June 17, 2015, Mathuren pled guilty to Counts 2 and 3 of the indictment. In entering the guilty plea, Mathuren admitted that on July 22, 2014, officers of the Rio Rancho Police Department executed a search warrant on his vehicle and seized approximately 30.3 grams of methamphetamine, drug paraphernalia, a pistol, rifle and ammunition. Mathuren further admitted that the rear stalk of the rifle had been shortened and the pistol had been reported stolen. Mathuren acknowledged that the firearms were “tools of the drug trafficking trade” and that he possessed them to assist him in his drug trafficking activities.
Mathuren previously was charged in July 2014, on related state charges. The state charges were dismissed in favor of federal prosecution after Mathuren was arrested on the federal charges in this case.
This case was investigated by the Albuquerque office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Rio Rancho Police Department with assistance from the 13th Judicial District Attorney’s Office. Assistant U.S. Attorney Rumaldo R. Armijo prosecuted the case.
Palm Coast Man Sentenced to More Than 21 Years for Possessing A Machinegun and Silencer and Assaulting A Federal OfficerRead the Press Release
Orlando, Florida – U.S. District Judge Paul G. Byron has sentenced Radbourne Mark Anthony Saleem (40, Palm Coast) to 21 years and 10 months in federal prison for possessing a machinegun and silencer and assaulting a federal officer. He pleaded guilty on November 5, 2014.
According to court documents, on November 1, 2013, Saleem, a previously convicted felon, met with a confidential informant (CI) to discuss purchasing a machinegun, a silencer, and a pistol. During the meeting, Saleem talked with the CI about the advantages of using a silencer to commit home invasion robberies. He also mentioned that he was looking for something to catch the shells. Saleem told the CI that he would sell his “soul to the devil” to get the weapons.
On November 15, 2013, Saleem met with the CI again and bought a .45 caliber pistol with a silencer and a machinegun for $1,000. As agents attempted to arrest him, Saleem began driving toward the agents at a high rate of speed. Saleem was shot several times as he fled the scene. He later hit a vehicle in Flagler County, was ejected from his vehicle, and was subsequently arrested.
“Mr. Saleem is a multi-convicted felon who will be off of our streets and unable to victimize anyone for a long time,” said Special Agent in Charge Regina Lombardo, ATF. “He will no longer be in a position to possess or use firearms. The sentence imposed by the court guarantees that our community will be safe from Mr. Saleem.”
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney James D. Mandolfo.
This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” Program - a nationwide, gun-violence reduction strategy. United States Attorney A. Lee Bentley, III, along with Regina Lombardo, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials. It is also a part of ATF’s Frontline strategy to reduce violence in our communities.
Palm Coast Man Sentenced to More Than 11 Years for Receiving Child Pornography over the InternetRead the Press Release
Jacksonville, Florida – United States District Judge Timothy J. Corrigan has sentenced Timothy Edward McDermott (61, Palm Coast) to 11 years and 3 months in federal prison for receiving child pornography over the Internet. He pleaded guilty on May 14, 2015.
According to court documents, an FBI agent began an undercover investigation to identify individuals that were trading child pornography over the Internet. The agent determined that McDermott was hosting and trading images of child pornography using a peer-to-peer file sharing program. A search warrant was then executed at McDermott’s residence and his computer was seized. During an interview, McDermott admitted that he had downloaded child pornography from a file sharing website. Forensic analyses of McDermott’s computer revealed that it contained 310 images and 68 videos depicting child pornography, including babies being sexually exploited by adults.
This case was investigated by the Federal Bureau of Investigation in Dallas, Daytona Beach, and Jacksonville; the Flagler County Sheriff’s Office; and the Wheaton (Illinois) Police Department. It was prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, 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.justice.gov/psc.
Onondaga County Man Charged with Production of Child PornographyRead 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 a federal grand jury has returned an indictment charging Donald Gardner, Jr., 40, of Lafayette, NY, with production of child pornography, receipt of child pornography, possession of child pornography. The charges carry a mandatory minimum penalty of 15 years in prison and a maximum of 30 years.
Assistant U.S. Attorney Marie P. Grisanti, who is handling the case, stated that on February 2, 2014, the defendant used the internet to entice, and coerce a minor a 10 year old to send him to sexually explicit photos.
The defendant was arraigned today before the U.S. Magistrate Judge H. Kenneth Schreoder, Jr.
The indictment is the culmination of an investigation by agents of the Federal Bureau of Investigation and the Niagara County Sheriff’s Department.
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.
Ohio Psychologist Sentenced to 24 Months for Conspiracy to Commit Extortion and Threatening A WitnessRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Marcia J. Weber, age 46, of Loveland, Ohio was sentenced today in federal court in Harrisburg by U.S. District Court Judge John E. Jones, III to serve 24 months in prison on the charges of conspiracy to commit extortion and threatening to injure a witness.
According to United States Attorney Peter Smith, Nicholas I. Stanishia, while serving a sentence of life imprisonment plus 23 years at the Southeastern Correctional Institution in Lancaster, Ohio, for a murder conviction, developed a relationship with clinical psychologist Weber who helped orchestrate Stanishia’s release from prison by attempting to get the sole witness who identified Stanishia at his Ohio murder trial to recant his trial testimony.
The surviving witness was also shot during the murder but was able to flee. Stanishia escaped, was captured three years later and tried for the murder. He was also convicted of a rape and burglary committed while on the run. He was sentenced to 54 years’ imprisonment for this offense.
Weber and Stanishia met in an Ohio correctional facility where he was participating in a work release program. Weber hired a private investigator to help obtain information about the witness, who now lives in Central Pennsylvania, including where he and his wife lived, where he worked, and information about his children and other immediate family. Weber and Stanishia then hired Martin Jay Wilson to travel from Missouri to Pennsylvania, where Wilson rented a car, drove to the witness’s house near Harrisburg and placed a gas can filled with water at the witness’s porch.
Stanishia, with the help of Joy Six and Anthony Vaughn - both other inmates - used a smuggled-in cellular telephone to contact the witness to get the victim/witness to sign an affidavit prepared by Stanishia. Stanishia stated in the call that the next time the gas can would not be filled with water. During the call, Stanishia claimed to be a high ranking member of the Aryan Brotherhood and that his release was being orchestrated by the Aryan Brotherhood. The contacts with the witness were subsequently reported to law enforcement agencies. Many of the phone calls were recorded at the prison and played during Stanishia’s trial.
Stanishia was found guilty by a federal jury in Harrisburg of conspiracy to transmit a threat to injure a central Pennsylvania witness who had testified against him. The case was tried before Judge Jones. Sentencing of Stanishia is deferred pending preparation of a presentence report.
Six, age 40 and Vaughn, age 41, both Ohio inmates, pled guilty to the conspiracy in July 2015. Sentencing dates have not been scheduled.
Wilson, age 43, of Kansas City, Missouri, pled guilty to the conspiracy in April 2015 and was sentenced in September 2015 by Judge Jones to 18 months.
This case was a collaborative effort between the Federal Bureau of Investigation, Harrisburg, Cincinnati, and Columbus, Ohio Offices, the Hampden Township and the Lower Paxton Police Departments, the Ohio State Highway Patrol, and investigators from the Southeastern Correctional Institution in Ohio.
This case was prosecuted by Assistant United States Attorney Daryl F. Bloom.
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New York Man Found Guilty of Heroin and Crack Cocaine TraffickingRead the Press Release
Contact: David B. Joyce
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: The United States Attorney’s Office announced that James Winbrone, 32, of Brooklyn, New York, was found guilty yesterday in U.S. District Court by Judge D. Brock Hornby of possession with intent to distribute heroin and distributing cocaine base, also known as crack cocaine, following a two-day bench trial.
Court records reveal that on April 10, 2014 and October 28, 2014, the defendant was involved in the distribution of heroin and crack cocaine in Lewiston. On January 14, 2015, a search warrant executed at a Lewiston apartment used by the defendant resulted in the seizure of cocaine and heroin.
Winbrone faces up to 30 years in prison and a $2,000,000 fine. Based on prior convictions for drug trafficking, he may also be subject to an enhanced sentence as a career offender.
The investigation was conducted by the Maine Drug Enforcement Agency, the Maine State Police, and the Southern Maine Gang Task Force, which is comprised of agents and officers from the Federal Bureau of Investigation; the Portland and Biddeford Police Departments; the Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Immigration & Customs Enforcement’s Homeland Security Investigations; and the U.S. Drug Enforcement Administration. Assistance was also provided by the Lewiston and Auburn Police Departments and the Androscoggin County Sheriff’s Office.New York City Man Sentenced for Smuggling Fake Ecstasy PillsRead 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 Stevie Coates, 41, of New York, N.Y., who was convicted of smuggling goods into the United States, was sentenced to 36 months imprisonment by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Frank T. Pimentel, who handled the case, stated that in the afternoon of October 31, 2010, the defendant drove his vehicle to the Lewiston Bridge Port of Entry seeking entry into the United States from Canada. At secondary inspection, Customs and Border Protection officers discovered nearly 6,000 pills, which had the appearance of MDMA (or “ecstasy”) pills. While subsequent laboratory analysis determined that the pills only contained caffeine, the defendant admitted that he planned to sell the pills for $20 apiece on return to New York City.
The sentencing is the culmination of an investigation on the part of Special Agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Acting Special Agent in Charge J. Michael Kennedy, and U.S. Customs and Border Protection officers, under the direction of Rose Hilmey, Acting Director of Field Operations.
New Orleans Man Sentenced to 27 Years in Heroin Conspiracy Involving Overdose DeathRead the Press Release
U.S. Attorney Kenneth A. Polite announced that TERENCE TAYLOR, age 37, a resident of New Orleans, was sentenced today for distributing heroin that resulted in an overdose death and for conspiring to distribute more than a kilogram of heroin in the New Orleans area.
U.S. District Judge Kurt D. Engelhardt sentenced TAYLOR to 324 months in prison, 5 years of supervised release following his prison term, and a $200 special assessment. The judge projected a picture of the victim onto the wall of the courtroom during the sentencing, and the victim’s mother read aloud a letter that she had prepared.
According to court documents, the investigation of this trafficking organization included multiple court-authorized wiretaps by the Drug Enforcement Administration New Orleans Police Department High-Intensity Drug Trafficking Area group, including taps of cell phones used by dealers to communicate with suppliers, other co-conspirators, and customers. DEA worked together with agents of the Federal Bureau of Investigation to conduct numerous undercover purchases of heroin, surveillance operations, searches, witness debriefings, records analyses, and other investigative techniques to uncover and dismantle the heroin trafficking activities of the group.
The investigation showed that the defendants had been using a residence in New Orleans East as a base of operations to meet with heroin suppliers, maintain a heroin stash, and provide heroin to other dealers.
Numerous daily heroin customers also called the ‘dope’ phones used by these defendants every day to order heroin. Typically one of the dealers would answer these calls, ask the caller how much heroin he or she wanted to buy, and direct the caller to drive to a gas station or other commercial location in the New Orleans East neighborhood. Through subsequent calls and then visual contact between the customer and dealer, the dealer would direct the customer to rendezvous in a parking lot or on a side street near the commercial location to conduct the heroin sale.
Additionally, court records indicate that, in July 2013, a court-authorized wiretap of the ‘dope’ phone used by defendant TAYLOR intercepted a series of calls relating to the sale of heroin to a person who had recently been through treatment for heroin addiction, and who died later that day as a result of a heroin overdose. Intercepted calls helped to demonstrate that TAYLOR negotiated this particular sale of heroin and that co-defendant MALCOLM BOLDEN subsequently met with the decedent to complete the sale.
U.S. Attorney Polite praised the work of the DEA New Orleans Police Department High-Intensity Drug Trafficking Area group, the FBI, and the ATF, with the assistance of the St. Tammany Sheriff’s Office, the St. Bernard Sheriff’s Office, and the Louisiana State Police in investigating this matter. Assistant United States Attorneys Michael B. Redmann and Mark A. Miller are in charge of the prosecution.
New Jersey Man Arrested and Charged in Manhattan Federal Court with Securities FraudRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Diego Rodriguez, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today that WILLIAM J. WELLS was arrested this morning on securities fraud and wire fraud charges stemming from his scheme to defraud more than 30 investors of more than $1.5 million through a fraud scheme.
Among other false and misleading statements, WELLS lied to prospective and existing investors by representing, including in fictitious account statements, that he had achieved consistently positive trading returns, when in fact, WELLS’s trading was remarkably unsuccessful and he realized trading losses every year since 2009. Of the money WELLS did not lose in securities trading, WELLS routinely converted investor funds to his own use to pay personal expenses, and he used new investor funds to pay back other investors in a Ponzi-like fashion.
WELLS is expected to be presented today in federal court in Manhattan before United States Magistrate Judge Michael H. Dolinger.
U.S. Attorney Preet Bharara said: “As alleged, William Wells repeatedly lied to his investors, falsely claiming consistently positive returns, when in fact his trading was spectacularly unsuccessful. But his alleged lies did not stop there. He also allegedly used investor money to pay personal expenses, including for private school tuition, and used new investor money to pay back old investors.”
FBI Assistant Director-in-Charge Diego Rodriguez said: “As alleged, Wells didn’t run an investment firm, he ran a Ponzi scheme totaling more than $1.5 million from potential investors. Wells allegedly used the funds to pay some investors to hide his trading losses and to support his personal lifestyle. The FBI is committed to investigating and bringing to justice those who prey upon trusting individuals for their own personal gain.”
According to the Complaint unsealed today in Manhattan federal court[1]:
From September 2009 through the present, WELLS, through his investment firm Promitor Capital LLC (“Promitor Capital”), engaged in a fraudulent scheme to obtain investments by falsely representing that he had achieved consistently positive trading returns in the U.S. equity markets, including through the successful use of options to hedge risk. In truth, WELLS’s trading was remarkably unsuccessful. Between 2009 and the present, WELLS realized trading losses every year and, in total, trading losses in excess of $500,000. In fact, as of September 2015, Promitor Capital had less than $1,000 under management.
In connection with the scheme, WELLS made a series of false and misleading representations to investors, including: (a) that WELLS’s trading was generating consistently positive returns when, in fact, his trading was consistently unsuccessful; (b) that investors were invested in certain stocks at certain times when, in fact, none of the accounts held by Promitor or WELLS held those stocks; and (c) that WELLS had created so-called sub-accounts for clients, for which WELLS purported to execute individualized trading strategies, when, in fact, no such sub-accounts were ever funded. In addition to false and misleading representations made orally and in writing, WELLS also generated wholly fictitious account statements that he provided to his clients.
As a result of these misrepresentations, WELLS obtained more than $1.5 million in investments from more than 30 investors, many of whom were friends, colleagues, or family members. Of the money he did not lose in securities trading, WELLS routinely converted investor funds to his own use in the form of cash withdrawals and to pay personal expenses, including more than $500,000 for, among other things, credit card bills, payments for WELLS’s car, and for private school tuition. In addition, to hide his trading losses and continue to fund his personal lifestyle, WELLS used new investor funds to pay back other investors. In total, WELLS distributed less than approximately $500,000 back to investors.
* * *
WELLS, 42, was arrested this morning in Valley Cottage, New York. He is charged with one count of securities fraud and one count of wire fraud. The securities fraud count and the wire fraud count each carry a maximum sentence of 20 years in prison and the charges carry a maximum fine of $5 million, or twice the gross gain or loss from the offense. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Bharara praised the work of the FBI, and thanked the U.S. Securities and Exchange Commission for its assistance. He added that the investigation is continuing.
The charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it is 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. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Andrea M. Griswold in charge of the prosecution.
The allegations contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint, and the description of the Complaint set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
New Haven Man Pleads Guilty to Possession of a Firearm by a Convicted FelonRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that TOMMY BATTLE, 35, of New Haven, pleaded guilty today in Hartford federal court to one count of unlawful possession of a firearm by a convicted felon.
According to court documents and statements made in court, on April 22, 2015, a search was conducted at the residence of BATTLE, who was a parolee. During the search, a parole officer discovered a 9mm semi-automatic handgun, which contained a magazine that held 10 9mm rounds.
BATTLE’s criminal history includes multiple felony convictions, including a conviction for criminal possession of a weapon. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
BATTLE is scheduled to be sentenced by U.S. District Judge Michael P. Shea in Hartford on January 4, 2016, at which time he faces a maximum term of imprisonment of 10 years. BATTLE has been detained since his arrest on April 22, 2015.
This matter is being investigated by the New Haven Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case is being prosecuted by Assistant U.S. Attorneys Jennifer Laraia and Anthony Kaplan.
Moses Lake, Washington Man Sentenced to Three Years in Federal Prison for Travel with Intent to Engage in Illicit Sexual ConductRead the Press Release
Spokane – Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Michael Thomas Van Dyke, age 39, of Moses Lake, Washington was sentenced after having previously plead guilty on July 2, 2015, to Travel With Intent to Engage In Illicit Sexual Conduct. United States District Court Senior Judge Justin L. Quackenbush, sentenced Van Dyke to a three year (36 month) term of imprisonment. Van Dyke’s three year term of imprisonment is to be followed by a 10 year term of court supervision after he is released from federal prison. In addition, Van Dyke will be required to register as a sex offender.
According to information disclosed during the court proceedings, on September 9, 2013, a woman contacted the Hopewell, Virginia Police Department and reported that her13 year old daughter had been communicating online with an adult man (later identified Van Dyke). The woman also stated that another family member saw the 13 year old in the company of Van Dyke in Hopewell, Virginia on September 6, 2013. The 13 year old girl was interviewed and told police that she met Van Dyke on the Internet social network site Tumblr in August 2013. The girl reported that Van Dyke knew she was thirteen years old. The girl confirmed that she and Van Dyke had chatted online and had telephone conversations and video chats of a sexual nature. The girl described Van Dyke as disabled and in a wheelchair and confirmed that Van Dyke had traveled to meet her in Virginia and had asked her to go somewhere with him, but she had refused.
The 13 year old girl’s family provided a cell phone and computer that the young girl had used to communicate with Van Dyke. A search of the devices revealed the text of online chats that demonstrated the sexual nature of the communication between Van Dyke and the young girl and that the purpose of Van Dyke’s travel to Virginia was illicit sexual conduct with her.
On March 17, 2014, the FBI executed a search warrant at Van Dyke’s residence in Moses Lake. Computers and electronic media were recovered and Van Dyke was interviewed. Van Dyke admitted to traveling to Virginia to meet with the 13 year old girl in September 2013. Evidence consisting of phone photos and various receipts established that Van Dyke traveled from Moses Lake to Virginia on September 5, 2013. Chat logs between the young girl and Van Dyke further confirmed that the purpose for the travel was illicit sexual conduct with her.
Michael C. Ormsby said: “I commend the outstanding investigative work in this case by the Hopewell, Virginia Police Department and the FBI. This is a very serious case that requires the punishment imposed by the Court. The United States Attorney’s Office in the Eastern District of Washington is committed to aggressively prosecuting and seeking appropriate punishment for crimes against children.”
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the United States 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. The Project Safe Childhood Initiative (“PSC”) has five major components:
· Integrated federal, state, and local efforts to investigate and prosecute child
exploitation cases, and to identify and rescue children;
· Participation of PSC partners in coordinated national initiatives;
· Increased federal enforcement in child pornography and enticement cases;
· Training of federal, state, and local law enforcement agents; and
· Community awareness and educational programs.
For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
This investigation was conducted by the Hopewell, Virginia Police Department and the FBI. The case was prosecuted by James A. Goeke, an Assistant United States Attorney for the Eastern District of Washington.
- Minot Man Sentenced for Possession of Child Pornography
Miami-Dade County Resident Sentenced in Identity Theft Tax Fraud Scheme Involving Deceased and Other Individuals' Personal Identifying InformationRead the Press Release
A Miami-Dade County resident was sentenced to 44 months in prison, followed by three years of supervised release, for his participation in an identity theft tax fraud scheme using deceased and other individuals' personal identifying information (PII).
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Robert C. Hutchinson, Acting Special Agent in Charge, U.S. Immigration and Customs Enforcement's Homeland Security Investigations (ICE-HSI), Miami Field Office, and J. Scott Dennis, Chief, North Miami Beach Police Department (NMBPD), made the announcement.
Joshua Chikudo, 40, previously pled guilty to one count of wire fraud conspiracy, in violation of Title 18, United States Code, Section 1349, and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A.
Co-defendant Curtis Joseph, a/k/a "CJ," 36, of Miami-Dade, pled guilty to one count of wire fraud conspiracy. Sentencing for defendant Joseph is scheduled for October 6, 2015 at 1:00 p.m. before Judge Beth Bloom.
According to court documents, Joseph met with an IRS confidential informant (CI) and discussed a scheme to cash tax refund checks involving PII stolen from a medical clinic. The CI introduced Joseph to an undercover IRS agent. During three separate meetings, Joseph gave the undercover agent a total of thirteen tax refund checks for the undercover agent to cash. In exchange, the undercover agent gave Joseph approximately sixty-five percent (65%) of the check amounts as payment for his participation in the illicit scheme.
Court documents also state that at another meeting, the undercover agent provided Joseph with five IRS-controlled identities, consisting of fictitious PII - names, social security numbers, and dates of birth - to be used by a tax preparer in order to file fraudulent federal tax returns. During a separate meeting, the undercover agent gave Chikudo seven additional IRS-controlled identities that Chikudo intended to include in fraudulent tax return filings. Chikudo asked the undercover agent if he could obtain a business bank account for the purpose of depositing the fraudulent tax refunds into that account to avoid detection. The defendants and the undercover agent agreed that they would split all of the tax refunds equally amongst themselves and a fictitious undercover partner. The undercover agent provided Chikudo with IRS-controlled bank account information to be included on the fraudulent tax returns. The defendants caused six fraudulent federal income tax returns to be filed. The majority of the filings designated the IRS-controlled bank account as the intended recipient of the fraudulent refunds.
Furthermore, court documents state that between April and August of 2013, the defendants filed thirty-two fraudulent federal income tax returns using eleven IRS-controlled identities, to request refunds totaling $197,688. Twenty-one of the returns were joint returns that included the PII of deceased individuals.
During the sentencing, Judge Bloom specifically referenced that back in 2007, Chikudo and been previously enjoined in a $1 million civil action initiated by the IRS for filing fraudulent tax returns claiming fuel tax credits and telephone excise tax credits on behalf of his clients that they were not entitled to claim. The resulting injunction order entered by United States District Court Judge James I. Cohn barred Chikudo from acting as a return preparer, preparing or filing federal tax returns, assisting taxpayers in understating their tax liabilities or evading taxes, and engaging in other conduct that interfered with the administration or enforcement of the internal revenue laws.
Mr. Ferrer commended the investigative efforts of IRS-CI, ICE-HSI and NMBPD. This case is being prosecuted by Assistant U.S. Attorney Alicia E. Shick
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Miami-Dade County Resident Sentenced for Filing More Than $3.4 Million in False Refund Claims with the IRSRead the Press Release
A Miami-Dade County resident was sentenced to 24 months in prison, followed by three years of supervised release, for filing false refund claims with the Internal Revenue Service.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.
Mavys Galvez, 32, of Miami, Florida, previously pled guilty to one count of making a false, fictitious, and fraudulent claim against the United States, in violation of Title 18, United States Code, Section 287.
According to court documents, Galvez filed false 2006, 2007, 2008 and 2009 amended federal income tax returns with the IRS claiming fraudulent refunds. In the returns, Galvez falsely asserted that she and her husband were owed millions of dollars in income from various entities, and that those entities had withheld the money as federal income tax paid to the IRS. In fact, the entities owed no such income to Galvez or her husband, and withheld no such taxes on their behalf. Specifically, Galvez filed a 2006 amended tax return with her husband claiming a tax refund of $1,049,270 based in large part on claimed income and $810,224 of tax withheld by a bank. The tax return also attached a Form 1099-OID purportedly from the bank reflecting those totals, as well as 1099-OID forms from other entities. The filed 1099-OID forms were false.
Court documents indicate that Galvez had previously filed legitimate tax returns for tax years 2006 through 2009, knew that she and her husband had not received the income from the various entities reported on the fraudulent returns, knew that the taxes claimed had not been withheld, and knew that the 1099-OID forms were false. The total amount of fraudulent refunds claimed by Galvez for tax years 2006 through 2009 is $3,424,834.
Mr. Ferrer commended the investigative efforts of IRS-CI. This case is being prosecuted by Assistant U.S. Attorney John P. Gonsoulin.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Mexico Man Sentenced to More Than Ten Years for Conspiracy and Possession with Intent to Distribute MethRead the Press Release
MISSOULA – A federal judge sentenced Angel Iturbe-Gonzales, 37, of Mexico, to 151 months in federal prison, followed by five years supervised release for conspiracy and possession with intent to distribute methamphetamine. The sentences for both counts will run concurrently. Chief U.S. District Court Judge Dana Christensen issued the sentence.
The indictment and eventual conviction that gave rise to the sentence was initiated by a traffic stop of Gonzales by the Montana Highway Patrol in Gallatin County in April of 2014. During the stop, Gonzales consented to a dog being run around his vehicle. The dog alerted for the presence of narcotics. Two search warrants were obtained and a trap in the vehicle was discovered, which contained approximately 16 pounds of cocaine and more than four pounds each of methamphetamine and heroin. Gonzales was indicted by a grand jury in September of 2014 and arrested in California in January of 2015. He was convicted of both counts in April of 2015 following a jury trial in Butte, Montana.
“The Missouri River Drug Task Force, and similar task forces across the state expand the law enforcement resources that can be brought to bear against the scourge of meth in Montana,” said Montana U.S. Attorney Mike Cotter. “Working together, law enforcement partners have more tools to bring to bear against the social and economic toll Meth takes here. A sentence like this sends a pointed message to the criminals who come to this state with the goal of distributing poisonous wares; that such activity will not be tolerated in Montana.”
“HSI aggressively pursues international organized crime globally and here in Montana,” said David A. Thompson, special agent in charge of HSI Denver. “Bringing Gonzalez to justice to face a significant prison sentence was a collaborative partnership among HSI, the U.S. Attorney’s office, the Missouri River Drug Task Force, the Montana Highway Patrol and the Drug Enforcement Administration. The strength of these law enforcement partnerships makes our communities safer for everyone.
Assistant U.S. Attorney Tara Elliot prosecuted the case. The Case was investigated by the Missouri River Drug Task Force, Homeland Security Investigations (HSI) and the Montana Highway Patrol. The defendant will have to serve at least 85% of his sentence before being released from federal prison.
Manchester Man Sentenced for Making False Statement After Previous Conviction for Possession of Child PornographyRead the Press Release
CONCORD, NEW HAMPSHIRE – Acting United States Attorney Donald Feith announced today that Keith Bilodeau, 48, of Manchester, New Hampshire, was sentenced to a total of eight years in federal prison after pleading guilty to making a false statement to a United States Probation Officer.
Bilodeau was convicted of possession of child pornography in 2011 and sentenced to three years in prison. In August, 2014, while being supervised by U.S. Probation, he was suspected of being dishonest with his probation officer regarding ongoing criminal activity. A subsequent search of his residence by United States Probation Officers revealed numerous electronic devices which contained sexually explicit images of minor children.
Bilodeau’s supervised release was revoked in February of this year and he was sentenced at that time to two years in prison. He pled guilty to the charge of Making a False Statement to his probation officer on June 25, 2015 and today was sentenced to an additional six years in prison. When released from prison, Bilodeau will continue to be supervised by U.S. Probation for life.
The case was investigated by the U.S. Department of Homeland Security and the Office of United States Probation. This case was prosecuted by Assistant U.S. Attorney Helen White
Major Fertilizer Producer Mosaic Fertilizer, LLC to Ensure Proper Handling, Storage and Disposal of 60 Billion Pounds of Hazardous WasteRead the Press Release
The Department of Justice and the Environmental Protection Agency (EPA) today announced a settlement with Mosaic Fertilizer LLC that will ensure the proper treatment, storage and disposal of an estimated 60 billion pounds of hazardous waste at six Mosaic facilities in Florida and two in Louisiana. The settlement resolves a series of alleged violations by Mosaic, one of the world’s largest fertilizer manufacturers, of the federal Resource Conservation and Recovery Act (RCRA), which provides universal guidelines for how hazardous waste must be stored, handled and disposed. The 60 billion pounds of hazardous waste addressed in this case is the largest amount ever covered by a federal or state RCRA settlement and will ensure that wastewater at Mosaic’s facilities is properly managed and does not pose a threat to groundwater resources.
At Mosaic’s eight facilities in Florida and Louisiana, hazardous waste from fertilizer production is stored in large piles, tanks, ditches and ponds; the piles can reach 500 feet high and cover more than 600 acres, making them some of the largest manmade waste piles in the United States. The piles can also contain several billion gallons of highly acidic wastewater, which can threaten human health and cause severe environmental damage if it reaches groundwater or local waterways.
Under the settlement, Mosaic Fertilizer will establish a $630 million trust fund, which will be invested until it reaches full funding of $1.8 billion. These funds will cover the future closure of four Mosaic facilities—the Bartow, New Wales and Riverview plants in Florida and the Uncle Sam plant in Louisiana—and also be put toward the treatment of hazardous wastewater at and long-term care of those facilities and two additional facilities which are already undergoing closure. The Mosaic Company, Mosaic Fertilizer’s parent company, will provide financial guarantees for this work, and the settlement also requires Mosaic Fertilizer to submit a $50 million letter of credit.
Mosaic will also spend $170 million on projects to reduce the environmental impact of manufacturing and waste management programs at its facilities and $2.2 million on two local environmental projects. Mosaic will also pay a $5 million civil penalty to the United States and $1.55 million to the State of Louisiana and $1.45 million to the State of Florida, who joined the Department of Justice and EPA as plaintiffs in this case.
“This settlement represents our most significant enforcement action in the mining and mineral processing arena, and will have a significant impact on bringing all Mosaic facilities into compliance with the law,” said Assistant Attorney General John C. Cruden for the Justice Department’s Environment and Natural Resources Division. “Moreover, through this settlement, we establish critical financial assurance to cover the enormous closure and care costs at all these facilities. This sets the standard for our continuing enforcement of RCRA in the entire phosphoric acid industry. And, it reflects our emphasis on working jointly with impacted states.”
“This case is a major victory for clean water, public health and communities across Florida and Louisiana,” said Assistant Administrator Cynthia Giles for EPA’s Office of Enforcement and Compliance Assurance. “Mining and mineral processing facilities generate more toxic and hazardous waste than any other industrial sector. Reducing environmental impacts from large fertilizer manufacturers operations is a national priority for EPA, as part of our commitment to pursuing cases that have the biggest impact on protecting public health.”
The alleged violations in this case stem from storage and disposal of waste from the production of phosphoric and sulfuric acids, key components of fertilizers, at Mosaic’s facilities in Bartow, Lithia, Mulberry and Riverview, Florida, and St. James and Uncle Sam, Louisiana. Mosaic failed to properly treat, store, and dispose of hazardous waste, and also failed provide adequate financial assurance for closure of its facilities.
As part of EPA’s National Enforcement Initiative for mining and mineral processing, the agency has required phosphate fertilizer production facilities to reduce the storage volumes of hazardous wastewaters, ensure that waste piles and ponds have environmentally-protective barriers installed and verify the structural stability of waste piles and ponds.
Mosaic has committed to spending approximately $170 million over the next several years to implement an innovative reconfiguration of their current operations and waste management systems. The development of these of industry-leading technologies will optimize resource efficiency and decrease the amount of raw materials required to produce fertilizer. This case spurred Mosaic to develop advanced engineering controls and practices to recover and reduce some types of acid wastes that result from fertilizer production, which will reduce the amount and toxicity of the waste materials stored at Mosaic’s facilities and the severity of potential spills while cutting Mosaic’s costs for treating material at closure, which would otherwise have been categorized as hazardous waste.
Under the settlement, Mosaic will also fund a $1.2 million environmental project in Florida to mitigate and prevent certain potential environmental impacts associated with an orphaned industrial property located in Mulberry, Florida. In Louisiana, Mosaic will spend $1 million to fund studies regarding statewide water quality issues.
Mosaic produces phosphorus-based fertilizer that is commonly applied to corn, wheat and other crops across the country. Sulfuric acid is used to extract phosphorus from mined rock, which produces large quantities of a solid material called phosphogypsum and wastewater that contains high levels of acid. EPA inspections revealed that Mosaic was mixing certain types of highly-corrosive substances from its fertilizer operations, which qualify as hazardous waste, with the phosphogypsum and wastewater from mineral processing, which is a violation of federal and state hazardous waste laws.
A consent decree formalizing the settlement was lodged today in the U.S. District Courts for the Middle District of Florida and the Eastern District of Louisiana and is subject to a 45-day public comment period and approval by the federal court.
For a copy of the consent decree, visit www.justice.gov/enrd/consent-decrees.
Lynn Tax Preparer Charged with Federal Tax FraudRead the Press Release
BOSTON – A Lynn tax preparer was charged yesterday in U.S. District Court in Boston for filing fraudulent personal federal tax returns and attempting to obstruct the Internal Revenue Service (IRS).
Arismendy Ramos, a/k/a Arismendi Ramos, a/k/a Aris Almonte, was charged in an Information with four counts of filing false tax returns and two counts of obstructing the IRS.
According to the Information, Ramos owned and operated Almonte Tax, a tax preparation service in Lynn, and personally prepared tax returns for numerous clients. From 2008 through 2013, Ramos allegedly filed false forms with the IRS claiming that he paid clients to work for him when in fact they had never been employed or paid by him. Ramos then claimed the bogus wages as business expenses on his own tax returns, thereby reducing his personal tax liabilities. Furthermore, Ramos instructed two clients that they should lie if they were asked about the false wages.
The charging statutes provide a sentence of no greater than three years in prison, one year of supervised release, and a fine of $250,000 on each count. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Victor A. Wild of Ortiz’s Economic Crimes Unit.
The details contained in the Information are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Los Departamentos de Justicia y Trabajo de y el Departamento de Trabajo e Industria del Estado de Washington Realizaron un Acuerdo para Mejorar el Acceso para Trabajadores con Conocimientos Limitados del Idioma InglésRead the Press Release
WASHINGTON – Los Departamentos de Justicia y Trabajo de EE.UU. han realizado un acuerdo con el Departamento de Trabajo e Industrias [Department of Labor and Industries (L&I)] del Estado de Washington en resolución de demandas de derechos civiles entabladas por trabajadores con conocimientos dominio limitado del Inglés [limited English proficient (LEP)] que alegaron que fueron objeto de discriminación por origen nacional en el programa de compensación del trabajador del estado. Los trabajadores alegaron que se les negó acceso a intérpretes y a información vital en sus idiomas principales. El acuerdo exige mejoras importantes en los servicios de asistencia idiomática para trabajadores LEP.
“Este acuerdo simboliza cómo el gobierno federal y estatal pueden trabajar juntos en mejorar el acceso a servicios gubernamentales para comunidades con conocimientos limitados del inglés”, señaló la Procuradora General Adjunta Suplente Principal Vanita Gupta, líder de la División de Derechos Civiles del Departamento de Justicia de EE.UU. “El Departamento de Justicia seguirá adelante con su labor de garantizar que estas comunidades tengan acceso igualitario a servicios gubernamentales”.
“La comprensión de un sistema de beneficios gubernamentales puede resultarle sobrecogedor a cualquiera”, dijo la Fiscal Federal Annette L. Hayes del Distrito Oeste de Washington. “Esto es especialmente así para los miembros de nuestra comunidad que solicitan beneficios de compensación del trabajador y cuyo idioma principal no es el inglés. Los cambios a las prácticas de Trabajo e Industrias de Washington establecidos en este acuerdo conciliatorio garantizarán que se protejan los derechos de todos los trabajadores, independientemente de su país de origen”.
“Felicito a L&I por su compromiso de trabajar con el Centro de Derechos Civiles y el Departamento de Justicia para eliminar las barreras idiomáticas para trabajadores con conocimientos limitados del inglés", dijo la Directora Naomi M. Barry-Pérez del Centro de Derechos Civiles del Departamento de Trabajo de EE.UU.”
Los Departamentos de Justicia y Trabajo trabajaron con L&I en el desarrollo de un memorando de acuerdo [memorandum of agreement (MOA)] que documenta el compromiso de L&I de desarrollar e implementar un programa de acceso idiomático que asegure que las personas LEP tengan acceso significativo a programas, actividades e información de L&I. El MOA y la nueva Política de acceso idiomático de L&I incluyen los siguientes compromisos:
- Todo el personal de L&I se asegurará de que las personas LEP reciban servicios de asistencia idiomática sin cargo.
- L&I desarrollará un Plan de Acceso Idiomático que establezca las acciones de gestión necesarias para implementar la Política de Acceso Idiomático y asegure el cumplimiento de las leyes federales de derechos civiles, incluidas las tareas a realizarse, la asignación de responsabilidades, plazos, procesos, recursos, controles de calidad y actualizaciones periódicas.
- L&I traducirá a idiomas extranjeros sus formularios de reclamación y solicitud, formularios de quejas y consentimiento, cartas y avisos y materiales electrónicos.
- L&I agregará miembros asesores al Comité Directivo de Acceso Idiomático para que representen los intereses de los trabajadores LEP y a la comunidad de empleadores de Washington.
- L&I presentará informes de monitoreo detallados que documenten su implementación del MOA.
La investigación fue realizada en forma conjunta por la Sección de Coordinación y Cumplimiento Federal [Federal Coordination and Compliance Section (FCS)] de la División de Derechos Civiles del Departamento de Justicia, la Fiscalía Federal para el Distrito Oeste de Washington y el Centro de Derechos Civiles [Civil Rights Center (CRC)] del Departamento de Trabajo de EE.UU. El Título VI de la Ley de Derechos Civiles de 1964, Sección 188 de la Ley de Inversión en Fuerza Laboral de 1998, y sus reglamentaciones correspondientes prohíben la discriminación por origen nacional y exigen que los beneficiarios de asistencia financiera federal brinden acceso significativo a programas y actividades a las personas LEP por medio de servicios de asistencia idiomática gratuitos.
La FCS ha trabajado con una serie de tribunales, agencias de fuerzas del orden público, agencias correccionales estatales y otras entidades gubernamentales para garantizar el cumplimiento del Título VI y el acceso a servicios de asistencia idiomática para personas LEP. Haga clic aquí para más información sobre la FCS. Para más recursos relacionados con las personas LEP, diríjase a LEP.gov, el portal de Internet Interagencias Federal.
El CRC hace valer las leyes antidiscriminatorias aplicables a beneficiarios de asistencia federal del Departamento de Trabajo de EE.UU. y, en algunas circunstancias, de otros departamentos y agencias federales. Para obtener más información sobre el CRC, llame al 202-693-6500 (voz) o 800-877-8339 (‘relay’) o visite el portal en Internet del CRC.
- Información para clientes con un dominio limitado del inglés (Limited English Proficient, LEP) que participan en programas y actividades del Departamento de Trabajo e Industrias del Estado de Washington
- Washington State Department of Labor and Industries Memorandum of Agreement
Lexington Home Health Agency and Estate of Deceased Owner Agree to Judgment of $16 Million to Resolve Allegations of Health Care FraudRead the Press Release
LEXINGTON – Nurses’ Registry and Home Health Corporation (“Nurses’ Registry”) and the Estate of its former owner, the deceased Lennie House, have agreed to the entry of a judgment against them for $16,000,000 to resolve allegations of widespread healthcare fraud.
This civil judgment ends an investigation and False Claims Act litigation alleging that Nurses’ Registry, at the direction of Lennie House, fraudulently billed Medicare for medically unnecessary home health services, as well as services tainted by kickbacks provided by the company and House to local physicians and others who referred patients to Nurses’ Registry.
“For years, Nurses’ Registry abused its privileges as a provider in the Medicare program, and the trust of the medical community and general public,” said United States Attorney Kerry B. Harvey. “This settlement returns ill-gotten gains to the Medicare Trust Fund and ensures that Nurses’ Registry will have no further opportunity to defraud federal health care programs. Our office will continue to vigorously pursue health care fraud in this district, against companies and individuals, no matter how difficult or protracted the litigation may be.”
Under House’s direction, Nurses’ Registry engaged in systematic false billing that allowed them to wrongfully obtain millions of dollars from the Medicare program between 2004 and 2011. Medicare pays for home health services only when a physician signs a plan of care certifying that the patient is homebound and has a reasonable need for skilled nursing care or certain therapy services.
To advance its health care fraud, Nurses’ Registry falsified medical records to make it appear as if patients had a medical need for skilled nursing or therapy services, or appear as if the patients were homebound. At times, Nurses’ Registry employees even forged physician signatures on medical records to falsely “certify” that the patient required Nurses’ Registry’s services. Nurses’ Registry, at the direction of House, frequently re-certified patients for more and more home health services – and billed such services to Medicare – long after the patient ceased to meet Medicare’s eligibility requirements.
In addition to billing Medicare for unnecessary or non-reimbursable home health services, Nurses’ Registry and House provided tickets to athletic events and concerts, and provided other things of value, to doctors and referral sources in order to induce or reward patient referrals. This practice was so commonplace that physicians would contact the home health agency to ask for tickets to popular events, such as Taylor Swift concerts or the Kentucky Derby.
House instructed the company’s marketing employees to deliver bottles of liquor and other enticements to referral sources in order to ensure more valuable patient referrals that could be billed to Medicare. These transactions violated the federal Anti-Kickback Statute as well as the Stark Law, which prohibits home health agencies from billing for services referred to them by physicians with whom they have a financial relationship.
“We are focused on combatting fraud in the home health arena,” said Derrick L. Jackson, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General in Atlanta. “Settlements like this one send a clear message that false claims to Medicare will not be tolerated.”
The United States filed a complaint against Nurses’ Registry, Lennie House, and Vicki S. House, House’s wife, in September 2011, following an investigation into a whistleblower lawsuit filed by former employees Alisia Robinson-Hill and David Price. After several years of litigation, this settlement, in conjunction with a prior settlement with Vicki House for $1,082,416, fully resolves that action in favor of the government. Under the terms of the settlement agreement, Nurses’ Registry will be sold to an independent third party within 90 days, and 70 percent of the net sale proceeds will be remitted to the federal government. In addition, the Estate of Lennie House will have one year to sell off all of its assets and will turn over 75 percent of those net sale proceeds to the government.
Ms. Robinson-Hill and Mr. Price will receive a share of the settlement proceeds pursuant to the qui tam provisions of the False Claims Act.
The investigation conducted prior to the government filing its complaint was conducted by the Department of Health and Human Services, Office of the Inspector General; the Office of the Kentucky Attorney General, Medicaid Fraud and Abuse Control Unit (“MFCU”); the Federal Bureau of Investigation; and the U.S. Attorney’s Office. The litigation was handled by Assistant United States Attorneys Christine Corndorf and Paul McCaffrey, with assistance from the Commercial Litigation Branch of the Department of Justice’s Civil Division.
Laguna Pueblo Man Sentenced for Conviction on Assault by Strangulation and Attempted Manslaughter ChargesRead the Press Release
ALBUQUERQUE – Duane Day, 25, a member and resident of Laguna Pueblo, N.M., was sentenced yesterday afternoon in federal court in Albuquerque, N.M., to 51 months in prison followed by three years of supervised release for his assault by strangulation and attempted manslaughter charges.
Day was arrested on May 22, 2014, on a criminal complaint charging him with attempted manslaughter, assault of an intimate partner by strangling, and child abuse. According to the complaint, on May 12, 2014, in Laguna Pueblo within Cibola County, N.M., Day assaulted the victim, a Laguna Pueblo woman, by strangling her and causing her to lose consciousness. Day fled the scene of the assault with the victim’s two young children, an 11-month-old and a two-year-old, to a nearby mesa. Court documents indicate that the victim suffered a severe stroke as a result of the strangulation which required her to undergo emergency brain surgery to relieve swelling and bleeding in the brain.
Day subsequently was indicted on June 11, 2014, and charged with (1) assaulting an intimate partner by strangling; (2) attempted manslaughter; and (3) endangering the lives and health of two children.
On March 11, 2015, Day pled guilty to Counts 1 and 2 of the indictment. In entering his guilty plea, Day admitted that on May 12, 2014, he assaulted the victim by placing his knee on her neck and placing his hand over her mouth causing her to suffocate. Day acknowledged that he attempted to kill the victim by impeding the victim’s breathing causing her to lose consciousness.
U.S. Attorney Damon P. Martinez commended the FBI, BIA and Pueblo of Laguna Tribal Police Department on their outstanding investigation of this case and also noted the invaluable work of the Victim Advocates who assisted the victim to reclaim her life as she recuperated from the life threatening injuries she sustained at the hands of her intimate partner. “Victim Advocates play a critically important role in violent crime cases. In addition to assisting victims to obtain the services they require to ease the impact of victimization and to assert their rights in the criminal justice system, they often speak on behalf of victims,” said U.S. Attorney Martinez. “The Victim Advocates from the BIA, FBI, Laguna Pueblo and the U.S. Attorney’s Office did all that and more in this case. In this case, the Victim Advocates helped the victim find her own voice so that she no longer views herself as a victim. Today she is a survivor who is using her voice to help other women who are victims of domestic violence.”
This case was investigated by the Albuquerque office of the FBI, the Laguna/Acoma Agency of the BIA Office of Justice Services, and the Pueblo of Laguna Tribal Police Department. Assistant U.S. Attorney David Adams prosecuted the case.
The case was brought pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
KC Man Sentenced for Tax Fraud SchemeRead 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 his role in a fraudulent tax return preparation scheme that claimed $433,365 in fraudulent income tax refunds.
Demichael A. Johnson, 37, of Kansas City, was sentenced by U.S. District Judge Beth Phillips to two years in federal prison without parole. Today’s sentence will run consecutively to the seven-year sentence Johnson is currently serving in federal prison for drug trafficking. The court also ordered Johnson to pay $67,281 in restitution to the government.
On June 3, 2015, Johnson pleaded guilty to making a false claim. Co-defendant Mika Francis, 40, of Lee’s Summit, Mo., has pleaded guilty to the same offense and is scheduled to be sentenced on Feb. 4, 2016.
Johnson and Francis, along with others, participated in a scheme using false IRS Form W-2s. They solicited friends and acquaintances to file their tax returns using false W-2 information. These “taxpayers” had little to no legitimate income and would not otherwise have to file tax returns. According to court documents, the scheme resulted in a total actual loss to the government of $329,000.
Johnson admitted that he caused a tax return to be filed in his name for tax year 2010 that claimed a refund of $13,184. Johnson claimed income that he did not actually receive and falsely claimed two dependents. The government has evidence of seven other instances of Johnson’s involvement in false claims, with a total criminal tax loss of $75,928.
Francis admitted that she caused a tax return to be filed in her name for the tax year 2010 that claimed a refund of $8,048. Francis falsely claimed income that she did not receive.
This case is being prosecuted by Senior Litigation Counsel Gregg Coonrod. It was investigated by IRS-Criminal Investigation.
Justice Department Announces BHF-Bank (Schweiz) AG Reaches Resolution under Swiss Bank ProgramRead the Press Release
The Department of Justice announced today that BHF-Bank (Schweiz) AG (BHF) has reached a resolution under the department’s Swiss Bank Program.
The Swiss Bank Program, which was announced on Aug. 29, 2013, provides a path for Swiss banks to resolve potential criminal liabilities in the United States. Swiss banks eligible to enter the program were required to advise the department by Dec. 31, 2013, that they had reason to believe that they had committed tax-related criminal offenses in connection with undeclared U.S.-related accounts. Banks already under criminal investigation related to their Swiss-banking activities and all individuals were expressly excluded from the program.
Under the program, banks are required to:
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Make a complete disclosure of their cross-border activities;
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Provide detailed information on an account-by-account basis for accounts in which U.S. taxpayers have a direct or indirect interest;
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Cooperate in treaty requests for account information;
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Provide detailed information as to other banks that transferred funds into secret accounts or that accepted funds when secret accounts were closed;
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Agree to close accounts of accountholders who fail to come into compliance with U.S. reporting obligations; and
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Pay appropriate penalties.
Swiss banks meeting all of the above requirements are eligible for a non-prosecution agreement.
According to the terms of the non-prosecution agreement signed today, BHF agrees to cooperate in any related criminal or civil proceedings, demonstrate its implementation of controls to stop misconduct involving undeclared U.S. accounts and pay penalties in return for the department’s agreement not to prosecute this bank for tax-related criminal offenses.
BHF was established in 1974 as a wholly-owned Swiss subsidiary of BHF-BANK Aktiengesellschaft (BHF-BANK AG), a private bank located in Germany. Deutsche Bank AG purchased BHF-BANK AG in 2010, and in 2014, BHF-BANK AG was sold to a consortium of investors. BHF is headquartered in Zurich and has a branch in Geneva. The name of the group is now BHF Kleinwort Benson Group.
BHF opened and maintained undeclared accounts for U.S. taxpayers. It chose to continue to service U.S. customers without disclosing their identities to the Internal Revenue Service (IRS) or taking steps to ensure that clients were compliant with U.S. tax laws and without considering the impact of U.S. criminal law on that decision.
BHF offered a variety of traditional Swiss banking services that it knew could assist, and did assist, U.S. clients in the concealment of assets and income from the IRS, such as “hold mail” services, which minimized the paper trail between the U.S. clients and undeclared assets and income, and debit cards, which allowed U.S. clients to access their undeclared accounts without having to visit BHF.
In 1982, Plinius Management Limited, Zurich (Plinius), a trust company, was formed as a wholly-owned subsidiary of BHF to provide special services for wealthy clients, which included advice regarding trusts, foundations, fiduciary agreements and holding companies in order to protect assets and minimize tax liability. Plinius had no employees, and BHF provided it with staff and infrastructure.
Plinius also assisted with referrals to establish various types of structures, including Liechtenstein Anstalten and Stiftungen, and British Virgin Islands and Panamanian entities. Plinius did not create the structures; instead, it would contact an external trust company or law firm in Liechtenstein to set up the entity within the agreed-upon jurisdiction. While Plinius’ relationship managers did not have access to the Forms A held by BHF that identified the beneficial owners, in some cases they were aware of the ultimate beneficial owner(s) of the accounts. Four subsidiary-related structured accounts were established for U.S. persons, which improperly sheltered U.S. taxpayer-clients and hid their assets from the IRS.
U.S.-related accounts, including offshore structured accounts, came into BHF through its relationship managers, through external asset managers or otherwise. For example, one account in the name of an offshore entity was referred to a BHF manager from a U.S.-based structuring lawyer prior to 2008, and transferred to BHF from another Swiss bank. The file contained a Form W-8BEN and certification of non-U.S. persons for the offshore corporate accountholder. BHF’s management approved opening the account even though the account also held U.S. securities. There was no Form W-9 completed or provided to BHF for the U.S. beneficial owner. BHF did not confirm that the U.S. beneficial owner was compliant with U.S. tax obligations.
In the fourth quarter of 2000, BHF signed a Qualified Intermediary (QI) Agreement with the IRS. The QI regime provided a comprehensive framework for U.S. information reporting and tax withholding by a non-U.S. financial institution with respect to U.S. securities. The QI Agreement was designed to help ensure that, with respect to U.S. securities held in an account at BHF, non-U.S. persons were subject to the proper U.S. withholding tax rates and that U.S. persons were properly paying U.S. tax.
BHF implemented a policy that every client had to sign either a Form W-9 or a Declaration of Non-U.S. Person Status, which required the customer to declare whether he or she was a U.S. person for tax purposes. Some U.S. clients who did not want to have their identities disclosed to the IRS could avoid detection by declining U.S. securities. Approximately five clients refused to sign a Form W-9, but BHF nevertheless continued to service these clients’ accounts and kept them open.
While participating in the Swiss Bank Program, BHF encouraged existing and prior accountholders and beneficial owners of U.S.-related accounts to provide evidence of tax compliance or of participation in any of the IRS Offshore Voluntary Disclosure Programs or Initiatives or to disclose their accounts to the IRS through such a program. BHF sought waivers of Swiss bank secrecy from all accountholders and obtained waivers for more than 50 percent of its accounts. BHF has also provided certain account information related to U.S. taxpayers that will enable the government to make requests under the 1996 Convention between the United States of America and the Swiss Confederation for the Avoidance of Double Taxation with respect to Taxes on Income for, among other things, the identities of U.S. accountholders.
Since Aug. 1, 2008, BHF held a total of 125 U.S.-related accounts, comprising total assets under management of approximately $202,964,006. BHF will pay a penalty of $1.768 million.
While U.S. accountholders at BHF who have not yet declared their accounts to the IRS may still be eligible to participate in the IRS Offshore Voluntary Disclosure Program, the price of such disclosure has increased.
Most U.S. taxpayers who enter the IRS Offshore Voluntary Disclosure Program to resolve undeclared offshore accounts will pay a penalty equal to 27.5 percent of the high value of the accounts. On Aug. 4, 2014, the IRS increased the penalty to 50 percent if, at the time the taxpayer initiated their disclosure, either a foreign financial institution at which the taxpayer had an account or a facilitator who helped the taxpayer establish or maintain an offshore arrangement had been publicly identified as being under investigation, the recipient of a John Doe summons or cooperating with a government investigation, including the execution of a deferred prosecution agreement or non-prosecution agreement. With today’s announcement of this non-prosecution agreement, noncompliant U.S. accountholders at BHF must now pay that 50 percent penalty to the IRS if they wish to enter the IRS Offshore Voluntary Disclosure Program.
Acting Assistant Attorney General Ciraolo thanked the IRS, and in particular, IRS-Criminal Investigation and the IRS Large Business & International Division for their substantial assistance. Ciraolo also thanked Charles M. Duffy, who served as counsel on this matter, as well as Senior Counsel for International Tax Matters and Coordinator of the Swiss Bank Program Thomas J. Sawyer, Attorney Kimberle E. Dodd and Senior Litigation Counsel Nanette L. Davis of the Tax Division.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
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Justice Department Announces $53 Million in Grant Awards to Reduce Recidivism Among Adults and YouthRead the Press Release
New Second Chance Grants Announcement Will Impact Nearly 45 Jurisdictions around the Country
The Justice Department announced today that it will award grants totaling $53 million to 45 jurisdictions, to reduce recidivism among adults and youth returning to their communities after confinement.
The Second Chance Act (SCA) programs, administered through the Office of Justice Programs’ (OJP’s) Bureau of Justice Assistance (BJA) and Office of Juvenile Justice and Delinquency Prevention (OJJDP) support state, local and tribal community organizations in their efforts to reduce recidivism, provide reentry services and support research programs.
SCA funding covers a broad range of services, training, mentorship and technical assistance programs.
BJA grant awards:
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SCA Two-Phase Adult Reentry Demonstration, 10 awards totaling $7,774,158;
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SCA Reentry Program for Adults with Co-Occurring Substance Abuse and Mental Disorders, 10 awards totaling $5,989,258;
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SCA Mentoring, six awards totaling $5,983,401;
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National Reentry Resource Center (supplement), one award totaling $5,281,751
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SCA Statewide Recidivism Reduction (supplements), four awards totaling $3,995,861;
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SCA Technology Career Training Program, four awards totaling $2,949,536;
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SCA Statewide Recidivism Reduction Planning, seven awards totaling $594,222;
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SCA and Corrections Visiting Fellows, two awards totaling $487,551; and
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Vera Institute of Justice Postsecondary Education/Pell Experiment (supplement), one award totaling $200,000.
OJJDP grant awards:
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SCA Supporting Latino/a Youth from Out-of-Home Placement to the Community, six awards totaling $2,900,000;
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SCA Strengthening Relationships Between Young Fathers and Their Children: A Reentry Mentoring Project, seven awards totaling $2,939,067;
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SCA Strengthening Families and Children of Incarcerated Parents, three awards totaling $1,239,276;
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SCA Comprehensive Statewide Juvenile Reentry System Reform Implementation, three awards totaling $2,196,894;
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SCA Smart of Juvenile Justice: Enhancing Youth Access to Justice Initiative, Training and Technical Assistance (to provide legal services to youth reentering the community), one award totaling, $708,106;
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SCA Smart on Juvenile Justice: Community Supervision, six awards totaling $1,000,000;
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SCA Smart on Juvenile Justice: Community Supervision Training and Technical Assistance, one award totaling $650,000; and
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Initiative to Develop Juvenile Reentry Measurement Standards, one award totaling $750,000.
These programs include training and job placement for incarcerated or detained adults and juveniles in technology-related jobs; training for mentors to assist pre- and post-release; screening and assessments pre-release and evidence-based treatment after incarceration to improve outcomes for incarcerated individuals with substance abuse and mental disorders; and assistance for jurisdictions providing reentry services to members of Native American tribes.
These grants also provide supplemental funding to improve existing reentry research and programs, including ongoing data-driven assessments of the needs, policy barriers and resource gaps for successful reentry. Additional funding will enable the Vera Institute to deliver technical assistance in post-secondary education and corrections and to share best practices through its resource center.
In addition, the Justice Department awarded two fellowships: its first-ever Second Chance Visiting Fellow, Daryl Vincent Atkinson, who will engage formerly incarcerated individuals to gather what is needed for successful reentry; and a Corrections Visiting Fellow, Dr. Emily Wang of Yale University, who will measure the risk of hospitalization following prison release among Medicaid beneficiaries and the impact of community primary care on patient recidivism.
Lastly, the National Reentry Resource Center (NRRC) will continue to offer training and technical assistance for grantees and administer the What Works in Reentry Clearinghouse, a “one-stop shop” for research on the effectiveness of a wide variety of reentry programs and practices. The NRRC collaborates with the Attorney General’s Federal Interagency Reentry Council (FIRC), and other federal agencies.
For more information on the NRRC, please visit: www.nationalreentryresourcecenter.org.
For more information on FIRC, please visit: csgjusticecenter.org/nrrc/projects/firc/.
About OJP
OJP, headed by Assistant Attorney General Karol V. Mason, provides federal leadership in developing the nation’s capacity to prevent and control crime, administer justice and assist victims. OJP has six components: BJA; the Bureau of Justice Statistics; the National Institute of Justice; OJJDP; the Office for Victims of Crime and the Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering and Tracking. More information about OJP can be found at www.ojp.gov.
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Joint Investigation Dismantles Violent New Haven Street Gang; Members Charged with 6 MurdersRead the Press Release
New Haven – U.S. Attorney Deirdre M. Daly, ATF Special Agent in Charge Daniel J. Kumor and New Haven Police Chief Dean Esserman today announced federal murder, racketeering, firearms, narcotics and money laundering charges against several members and associates of the Red Side Guerilla Brims, a violent New Haven street gang. In 2011 and early 2012, members and associates of the gang are alleged to have committed six murders and four attempted murders.
According to court documents and statements made in court, in January 2014, ATF and the New Haven Police Department began “Operation Red Side” through a series of controlled narcotics purchases and firearms seizures. The investigation revealed that members and associates of the Red Side Guerilla Brims (“RSGB”), a sect of the Bloods street gang based in New Haven, were engaged in narcotics trafficking and related acts of violence, including murder, attempted murder, assaults and armed robberies. In addition to distributing crack cocaine and other narcotics in and around New Haven, the investigation indicated that members and associates of the RSGB, under the direction of one of its alleged leaders, JEFFREY BENTON, transported crack cocaine and heroin to Bangor, Maine, and sold the drugs in Bangor and its surrounding communities. The RSGB also traded narcotics for firearms, brought the firearms back to New Haven and distributed them to gang members.
“The Red Side Guerilla Brims were a plague on the streets of New Haven,” said U.S. Attorney Daly. “This indictment charges six members of this violent New Haven street gang with racketeering to include murders, shootings, armed robberies and assaults, as well as firearms and narcotics offenses. Other Red Side gang members and associates have or are expected to plead guilty to similar charges shortly. We thank our law enforcement partners, particularly the ATF and New Haven Police Department, for their tireless dedication to this long-term investigation. We are confident that these prosecutions targeting our most violent offenders, together with our anti-violence program Project Longevity which calls upon gang members to give up their violent lifestyle, have reduced the number of murders and shootings in New Haven making New Haven a safer and better place to live.”
“Today’s announcement demonstrates ATF’s commitment to working with its federal, state and local law enforcement partners to combat violent gun crime and to dismantle criminal street gangs and their ongoing criminal enterprise,” said ATF Special Agent in Charge Kumor. “Moreover, it shows that these criminal street gangs will not get away with such acts of violence, which wreak fear and havoc on the citizens of our communities.”
“Cooperation between all levels of law enforcement and the community are what’s required to achieve progress, and this impressive collaboration between the New Haven Police, ATF, U.S. Attorney’s Office and other valuable partners has solved many violent crimes,” said Chief Esserman. “Too many young men in our community have been lost to gun violence, and too many family members and friends are grieving. Violence in our city will not be tolerated. I’m proud of those who’ve put in the long hours to see this operation through. The City of New Haven is safer for it.”
The Victims
- On February 23, 2011, an individual was shot and wounded in New Haven.
- On March 18, 2011, Derrick Suggs was shot and killed in New Haven.
- On March 29, 2011, and individual was shot and wounded in New Haven.
- On April 20, 2011, Kevin Lee was shot and killed in New Haven.
- On June 24, 2011, Donell Allick was shot and killed in New Haven.
- On September 19, 2011, Darrick Cooper was shot and killed in Hamden.
- On October 21, 2011, an individual was shot in the face in New Haven.
- On December 22, 2011, an individual was shot in the face in New Haven.
- On December 23, 2011, Joseph Zargo was shot and killed in New Haven.
- On March 19, 2012, Donald Bolden was shot and killed in New Haven.
- On December 23, 2014, an individual was assaulted with a firearm in New Haven.
The Connecticut Indictment
On September 30, 2015, a federal grand jury in New Haven returned a 34-count indictment charging the following six individuals with engaging in a pattern of racketeering activity, including murder and other violent offenses:
JEFFREY BENTON, a.k.a. “Tall Man” and “Fresh,” 30, of New Haven
KEITH YOUNG, a.k.a. “Capo,” “Bapo” and “Poncho,” 25, of Hamden
ROBERT SHORT, a.k.a. “Santana,” 29, of New Haven
TREVOR MURPHY, a.k.a. “Snookie,” 27, of West Haven
ROBERT HARRIS, a.k.a. “Skully Mack,” 19, of New Haven
CHRISTOPHER GRAHAM, a.k.a. “Ugg,” 28, of New Haven
As alleged in the indictment:
On February 23, 2011, BENTON and LUIS PADILLA, who is charged separately, conspired to murder an individual.
On April 20, 2011, BENTON, PADILLA and others, including RODRIGO RAMIREZ and MILES PRICE, who are charged separately, murdered Kevin Lee while attempting to rob marijuana from Lee.
On June 24, 2011, BENTON, YOUNG, PADILLA and KAVON ROGERS, who is charged separately, murdered Donell Allick.
On September 19, 2011, YOUNG and SHORT murdered Darrick Cooper.
On October 21, 2011, BENTON and HARRY ANDERSON, who is charged separately, conspired to murder an individual.
On December 23, 2011, MURPHY murdered Joseph Zargo.
On March 20, 2012, BENTON and another individual, who has since been murdered, murdered Donald Bolden.
On December 23, 2014, HARRIS and GRAHAM used a firearm to assault an individual
In addition to the racketeering charge, the indictment charges BENTON and YOUNG with engaging in a racketeering conspiracy; BENTON, YOUNG, SHORT and MURPHY with committing a violent crime in aid of racketeering (VCAR) related to one or more of the charged murders; HARRIS and GRAHAM with VCAR related to a charged assault with a dangerous weapon; BENTON, SHORT, MURPHY, HARRIS and GRAHAM with firearms offenses; HARRIS and GRAHAM with narcotics offenses; and BENTON and YOUNG with money laundering offenses related to wire transfers of narcotics proceeds from Maine to Connecticut.
YOUNG and MURPHY were arrested yesterday, and HARRIS was arrested this morning. They appeared today before U.S. Magistrate Judge Joan G. Margolis in New Haven and are presently detained.
BENTON has been in federal custody since May 17, 2012, and is serving a 108-month sentence for trafficking narcotics. SHORT is in state custody on a parole violation.
GRAHAM is currently being sought by law enforcement.
As to BENTON, YOUNG, SHORT and MURPHY, if convicted of the charge of VCAR murder, each defendant faces a mandatory term of life imprisonment or death if the government seeks the death penalty in this case. The most serious charge against HARRIS and GRAHAM, brandishing a firearm in relation to a crime of violence, carries a mandatory term of imprisonment of seven years and a maximum term of imprisonment of life.
Previously-charged RSGB Members and Associates
On September 29, 2015, LUIS PADILLA, a.k.a. “Chewie,” 22, of New Haven, pleaded guilty to engaging in a pattern of racketeering activity, VCAR murder, and possession of a firearm by a previously convicted felon. In pleading guilty, PADILLA admitted his involvement in the murders of Derrick Suggs, Kevin Lee and Donell Allick, and the attempted murders of two others. PADILLA also admitted his involvement in a home invasion robbery in New Haven in May 2012, as well as his role in the trafficking of narcotics in Connecticut and Maine.
On June 16, 2015, RODRIGO RAMIREZ, a.k.a “Rico,” 34, of New Haven, pleaded guilty to racketeering and admitted his involvement in the murder of Kevin Lee and in a conspiracy to distribute crack cocaine in Maine.
On July 1, 2014, a grand jury returned an indictment charging MILES PRICE, a.k.a. “Molly Rock,” 27, of New Haven, with possession with intent to distribute and distribution of crack cocaine, and possession of a firearm by a previously convicted felon.
On May 6, 2015, KAVON ROGERS, 28, of New Haven, pleaded guilty to possession of a firearm by a previously convicted felon.
On May 20, 2015, a grand jury returned an indictment charging HARRY ANDERSON, a.k.a. “Ace,” 22, of New Haven, with one count of VCAR related to the attempted murder of an individual, and one count of discharging a firearm in furtherance of a crime of violence.
On September 8, 2015, DELTON PYLES, a.k.a. “Koolie,” 26, of New Haven, pleaded guilty to attempted assault with a dangerous weapon in aid of racketeering, brandishing a firearm in furtherance of a crime of violence, and conspiracy to distribute 28 grams or more of crack cocaine.
The Maine Indictment
On February 12, 2015, a grand jury in the District of Maine returned an indictment charging JEFFREY BENTON and ten other individuals, including RSGB members and associates, with offenses related to the distribution of crack cocaine, the illegal purchase of more than 20 firearms, and the transportation of firearms and drug proceeds to Connecticut. BENTON is awaiting trial in Maine.
On July 30, 2015, WILLIE GARVIN, a.k.a. “Tank” and “Black,” 22, of New Haven, pleaded guilty in the District of Connecticut to possession of a firearm by a previously convicted felon, conspiracy to interfere with commerce by robbery, and discharging a firearm in furtherance of a crime of violence in relation to the shooting of an individual on December 22, 2011. GARVIN also agreed to have his Maine case transferred to Connecticut and pleaded guilty to conspiracy to distribute crack cocaine and conspiracy to violate federal firearms laws.
On September 2, 2015, CHRISTIAN TURNER, a.k.a. “P,” 29, of New Haven, pleaded guilty in the District of Maine to conspiracy to distribute crack cocaine and conspiracy to violate federal firearms laws.
On August 17, 2015, TORRENCE BENTON a.k.a. “T-Black” and “Scotty,” 28, of New Haven, pleaded guilty in the District of Maine to one count of conspiracy to distribute crack cocaine.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This ongoing investigation is being conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the New Haven Police Department, the Connecticut Department of Correction, the Connecticut State Police, the U.S. Drug Enforcement Administration, the Maine Drug Enforcement Agency and the Hamden Police Department. The New Haven State’s Attorney’s Office also provided critical assistance in the investigation.
An instrumental component of the investigation has been the work of the Connecticut State Crime Laboratory in utilizing the National Integrated Ballistic Information Network (NIBIN) to analyze ballistics evidence.
These cases are being prosecuted in the District of Connecticut by Assistant U.S. Attorneys Robert M. Spector and Peter D. Markle. The District of Maine case is being prosecuted by Assistant U.S. Attorney Joel Casey.
Jaime Dávila Reyes, aka “Peluche” Sentenced to 21 Years in PrisonRead the Press Release
SAN JUAN, Puerto Rico – Today, Jaime Dávila-Reyes, aka “Peluche,” was sentenced to 21 years in prison for drug trafficking and firearm violations, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. On June 12, 2015, the defendant plead guilty to four counts from three separate indictments, charging conspiracy to possess with intent to distribute controlled substances. He also plead guilty to using and carrying firearms during and in relation to a drug trafficking crime.
Since the year 2006, and continuing up to and until the return of the Indictment in Criminal Case 09-390(ADC), Jaime Dávila-Reyes and others, did knowingly and intentionally, combine, conspire, and agree with each other and with diverse other persons known and unknown to knowingly and intentionally possess with intent to distribute, heroin, cocaine, cocaine base, and marihuana in protected locations throughout the Municipality of Naguabo and Caguas, Puerto Rico, specifically in Ignacio Morales-Dávila Public Housing Project in Naguabo and Jose Gautier-Benítez in Caguas, Puerto Rico.
In the second indictment, Criminal Case 13-435(FAB), the object of the conspiracy was to distribute controlled substances at the Gautier Benitez Public Housing Project for financial gain and profit. Dávila-Reyes was a leader of the drug trafficking organization and controlled the drug distribution points located at the Gautier Benitez Public Housing Project.
In the third indictment, Criminal Case 13-534(CCC), the object of the conspiracy was to distribute controlled substances at the Morales Ward, in the Municipality of Caguas for significant financial gain and profit. As a leader in Barriada Morales, Dávila-Reyes was in control of the drug distribution points. He directly supervised the operations at Barriada Morales, received the proceeds from the distribution of narcotics sold during the span of his leadership in the conspiracy and was in charge of maintaining control of all the drug distribution activities. He also received payment or “rent” from other drug point owners in Barriada Morales. He also acted as an enforcer and supplier within the conspiracy.
“The U.S. Attorney’s Office will continue working along with state and federal law enforcement agencies to investigate and prosecute criminals who deprive our communities of a peaceful and safe environment,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. “I commend our prosecutors and investigative agencies who did not rest until they were able to arrest Davila-Reyes and successfully bring him to justice.”
The defendant was sentenced by United States District Court Chief Judge Aida Delgado-Colón. The cases were being prosecuted by Assistant U.S. Attorneys César Rivera-Giraud, Alberto López-Rocafort and Teresa Zapata-Valladares.
Harrold Man Sentenced for Domestic Assault by an Habitual OffenderRead the Press Release
Acting United States Attorney Randolph J. Seiler announced that a Harrold, South Dakota, man convicted of Domestic Assault by an Habitual Offender was sentenced on September 28, 2015, by U.S. District Judge Roberto A. Lange.
Lonnie Patrick Big Eagle, age 39, was sentenced to 33 months in custody, followed by 2 years of supervised release, $78.20 in restitution, and a $100 special assessment to the Federal Crime Victims Fund.
Big Eagle was indicted by a federal grand jury on January 14, 2015. He pled guilty on July 6, 2015.
The conviction stemmed from an incident between August 9, 2014, and August 10, 2014, when the victim, who had been in a relationship with Big Eagle for several years and has five children with him, went to the pow wow in Lower Brule. She took four of her five children with her and left her youngest son with Big Eagle. She started receiving phone calls that Big Eagle was drunk and she returned home. Once she got there, the victim went inside the house, and Big Eagle came in after her and started telling her she was not going anywhere. He also made accusations against her and called her names. Big Eagle threatened to break the windows of the victim’s vehicle and knocked her phone out of her hand. She tried to get in her car, but Big Eagle struck the window with a lawn chair, so she went around her car in order to avoid getting hit by Big Eagle.
Big Eagle started kicking the victim, who then fell, stood back up, and went around the vehicle. Big Eagle continued to follow her and grabbed her shirt. She tripped and fell to the ground, and Big Eagle got on top of her and hit her in the face multiple times, causing blood to run down her face. The assault ended when Big Eagle’s brother intervened to help the victim. The victim then went to her aunt’s house to get help, and was seen by an ambulance attendant.
Big Eagle has several prior arrests and two prior convictions for domestic violence.
This case was investigated by the Bureau of Indian Affairs, Crow Creek Agency. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Big Eagle was immediately turned over to the custody of the U.S. Marshals Service.
Guardian Industries Corp. to Cut Harmful Air Pollution at Flat Glass Manufacturing Plant in TexasRead the Press Release
DALLAS —The Department of Justice and the Environmental Protection Agency (EPA) have announced a settlement with Guardian Industries Corp. that will resolve alleged violations of the Clean Air Act at Guardian’s flat glass manufacturing facilities throughout the U.S. One of those facilities is located in Corsicana, Texas, noted U.S. Attorney John Parker of the Northern District of Texas.
Under the proposed settlement, Guardian will invest more than $70 million to control emissions of nitrogen oxide (NOX), sulfur dioxide (SO2), particulate matter (PM) and sulfuric acid mist (H2SO4) from all of its flat glass manufacturing facilities. Guardian will also fund an environmental mitigation project valued at $150,000 to reduce particulate matter pollution in the San Joaquin Valley in California and pay a civil penalty of $312,000.
Guardian has operated its flat glass manufacturing facility in Corsicana since 1980. The EPA alleged that major facility modifications undertaken by the company beginning in 1993 led to a production increase at the Corsicana facility, and consequently, significant net emissions increases of air pollutants that occurred without Guardian obtaining the required Clean Air Act permits and without complying with the Act’s requirements regarding the installation of pollution control technology, emission limits, monitoring, record-keeping, and reporting.
“We commend Guardian Industries for its commitment to reduce emissions of harmful air pollutants from its Corsicana facility and others it operates in the United States,” said U.S. Attorney Parker. “By requiring phased-in pollution control and emissions monitoring equipment at Guardian’s Corsicana facility, this agreement appropriately balances the promotion of manufacturing and the protection of clean air for all Texas residents.”
“This settlement is a great example of a cooperative, company-wide effort to reduce air pollution and will mean cleaner air for communities across the country, where glass manufacturing is currently a significant source of the air pollutants that cause serious lung and heart problems,” said Attorney General John C. Cruden for the Justice Department’s Environment and Natural Resources Division. “We are also particularly grateful to the states of Iowa and New York, as well as the San Joaquin Valley Air Pollution Control District, all of whom were active partners in achieving this important outcome for the American people.”
“Air pollution from flat glass facilities can impact communities hundreds of miles away, which is why today’s announcement is so crucial to address pollution at the source and protect public health,” said Assistant Administrator Cynthia Giles for EPA’s Office of Enforcement and Compliance Assurance. “By investing in pollution control equipment and funding a mitigation project that will protect the health of low-income residents, Guardian is setting an example for the flat glass industry for how to control harmful air emissions at its facilities.”
The settlement resolves allegations that Guardian violated the Clean Air Act and state air pollution control plans when it made major modifications to its flat glass furnaces that significantly increased harmful air emissions. This settlement is part of EPA’s ongoing National Enforcement Initiative addressing Clean Air Act New Source Review and Prevention of Significant Deterioration program violations and is the agency’s first settlement involving the flat glass manufacturing sector. Flat glass, also known as float glass, is used as windows for office buildings and homes as well as for automobile windshields.
The $150,000 mitigation project with the San Joaquin Air Pollution Control District will provide incentives to low-income residents living in the San Joaquin Valley to replace or retrofit inefficient, higher-polluting wood-burning appliances with cleaner-burning, more energy-efficient appliances. The San Joaquin Valley is an area with poor air quality.
EPA expects that the pollution controls required by the settlement will reduce harmful emissions by 7,300 tons per year, including approximately 6,400 tons per year of NOx, 550 tons per year of SO2, 200 tons per year of PM and 140 tons of H2SO4. The mitigation project in California will yield additional reductions of PM. These emissions reductions will result in significant human health and environmental benefits for communities. In addition to the Corsicana plant, Guardian’s flat glass manufacturing facilities are also located in Kingsburg, California, DeWitt, Iowa, Carleton, Michigan, Geneva, New York, Floreffe, Pennsylvania, and Richburg, South Carolina.
SO2 and NOX have numerous adverse effects on human health and are significant contributors to acid rain, smog and haze. Once airborne, these pollutants can also convert into particulate matter. PM, especially the fine particles, can travel deep into a person’s lungs causing severe respiratory impacts, such as coughing, decreased lung function, and chronic bronchitis. Fine PM is also associated with cardiovascular impacts and even premature death. H2SO4 irritates the skin, eyes, nose and throat and lungs, and exposure to high concentrations can lead to more severe health impacts.
The states of Iowa and New York actively participated in the settlement and will each receive $78,000 of the total penalty. The United States will receive $156,000. The San Joaquin Valley Air Pollution Control District also actively participated in the settlement.
The proposed consent decree was lodged Tuesday in U.S. District Court for the Eastern District of Michigan and is subject to a 30-day public comment period and final court approval.
For more information on the settlement and to read the proposed settlement, visit http://www2.epa.gov/enforcement/guardian-industries-corp-clean-air-act-settlement.
For more information on the settlement or to read a copy of the consent decree, visit
http://www.justice.gov/enrd/consent-decrees.# # #
Grocery Store Owner Charged with Trafficking SNAP BenefitsRead the Press Release
PHILADELPHIA - Mohammed Uddin, 51, of Philadelphia, PA, was charged by indictment, unsealed today, with defrauding a government assistance program, announced United States Attorney Zane David Memeger. Uddin is charged with 15 counts of wire fraud and 13 counts of trafficking in SNAP benefits. SNAP is the Supplemental Nutrition Assistance Program, formerly known as the federal Food Stamp program, run by the United States Department of Agriculture’s Food and Nutrition Service to reduce and end hunger in the United States.
Uddin owned and operated Al Madina Halal Meat & Grocery, a retail grocery store, located at 6637 Castor Avenue in Philadelphia. According to the indictment, the defendant trafficked SNAP benefits by purchasing those benefits from customers of Al Madina Halal Meat & Grocery in exchange for cash, which is illegal. It is further alleged that between January 2012 and September 2015, as a result of his trafficking activities, defendant sought and received from USDA, redemption of more than $1 million in SNAP benefits.
If convicted, defendant Uddin faces a substantial period of incarceration, restitution to the program, a $2,800 special assessment, up to three years of supervised release, and possible fines.
The case was investigated by the United States Department of Agriculture Office of Inspector General and Homeland Security Investigations (HSI). It is being prosecuted by Assistant United States Attorney Joan E. Burnes.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Former State Fraud Enforcement Official is SentencedRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that LYNWOOD PATRICK, JR., 40, of East Hartford, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to three years of probation, the first six months of which PATRICK must serve in home confinement, for submitting a fraudulent application for a personal mortgage modification.
According to court documents and statements made in court, from approximately October 2012 through May 2013, while he was employed as the Director of Investigations for the State of Connecticut Department of Social Services (DSS), Office of Quality Assurance, PATRICK applied for a mortgage modification through JP Morgan Chase under the Making Home Affordable program, a federal initiative designed to assist homeowners who have experienced a decline in income access secure loans at lower rates. The application requested assistance in connection with a property PATRICK owned in East Hartford.
During the application process, PATRICK represented that the East Hartford property was his primary residence and was owner occupied when, in fact, the property was not his primary residence and he did not occupy it. PATRICK also fabricated State of Connecticut paystubs and lied about his assets in order qualify for the program. Specifically, PATRICK claimed total assets of $500 in one checking account to show that he had experienced a loss of income causing a hardship when, in fact, he had thousands of dollars spread out over multiple accounts at several institutions and his rate of pay had not diminished.
The investigation revealed that, in connection with the loan application, PATRICK faxed fraudulent documents to JP Morgan Chase from DSS offices and used a DSS fax coversheet.
In his capacity as the Director of Investigations, PATRICK was responsible for coordinating and conducting activities to prevent, detect and investigate fraud, waste, abuse and overpayments in the Connecticut Medicaid, Care4Kids, Supplemental Nutritional Assistance and Connecticut Energy Assistance Programs. PATRICK’s salary was partially paid for by the federal Centers for Medicare and Medicaid Services, which is a federal agency within the U.S. Department of Health and Human Services.
On June 8, 2015, PATRICK pleaded guilty to one count of mail fraud.
This matter was investigated by the Connecticut Public Corruption Task Force, which includes the U.S. Department of Health and Human Services – Office of Inspector General, U.S. Department of Housing and Urban Development – Office of Inspector General, Federal Bureau of Investigation, U.S. Postal Inspection Service and Internal Revenue Service – Criminal Investigation Division. The case was prosecuted by Assistant U.S. Attorney Christopher M. Mattei.
Citizens are encouraged to report corruption to the Connecticut Public Corruption Task Force by calling 203-238-0505.
Former School Bus Driver Indicted for Child PornRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a former school bus driver has been indicted by a federal grand jury for receiving and possessing child pornography.
Shawn Allen Swan, 39, of Eugene, Mo., was charged in a two-count indictment returned under seal by a federal grand jury in Jefferson City, Mo., on Sept. 28, 2015. That indictment was unsealed and made public today upon Swan’s arrest and initial court appearance. Swan remains in federal custody pending a detention hearing on Tuesday, Oct.6, 2015.
Swan was employed as a school bus driver by a contractor for the Jefferson City School District.
The federal indictment alleges that Swan received and distributed child pornography over the Internet on Sept. 29, 2013. Swan is also charged with possessing child pornography between Sept. 17, 2013, and April 30, 2015.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Lawrence E. Miller. It was investigated by the FBI, the Boone County Cybercrimes Task Force and the Cole County, Mo., Sheriff’s Department.
Former Peanut Company Officials Sentenced to Prison for Their Roles in Salmonella-Tainted Peanut Product OutbreakRead the Press Release
Two former officials of the Peanut Corporation of America (PCA) were sentenced to prison today in Albany, Georgia, for their roles in a conspiracy to defraud their customers by shipping salmonella-positive peanut products before the results of microbiological testing were received and falsifying microbiological test results, the Department of Justice announced today. Last week, PCA’s former president received 28 years in prison, the largest criminal sentence ever given in a food safety case.
Samuel Lightsey, 50, of Blakely, Georgia, a former operations manager at PCA’s Blakely plant, was sentenced by Senior U.S. District Court Judge W. Louis Sands of the Middle District of Georgia to serve 36 months in prison to be followed by three years of supervised release. Daniel Kilgore, 46, also of Blakely, and a former operations manager at PCA’s Blakely plant, was sentenced to serve 72 months in prison to be followed by three years of supervised release.
Both Lightsey and Kilgore pleaded guilty to conspiracy, mail and wire fraud, and the sale of misbranded and adulterated food. Additionally, both Lightsey and Kilgore served as witnesses in the 2014 trial of Stewart Parnell, 61, of Lynchburg, Virginia, the former owner and president of PCA; Michael Parnell, 56, of Midlothian, Virginia, Stewart Parnell’s brother, who worked at P.P. Sales and was a food broker who worked on behalf of PCA; and Mary Wilkerson, 41, of Edison, Georgia, who held various positions at PCA’s Blakely plant, including receptionist, office manager and quality assurance manager. Lightsey was on the witness stand during nine trial days and Kilgore testified as a witness during five trial days.
The trial, which led to the convictions of Stewart Parnell, Michael Parnell and Mary Wilkerson, established that tainted food led to a salmonella outbreak in 2009 with more than 700 reported cases of salmonella poisoning in 46 states. According to the Centers for Disease Control and Prevention, based on epidemiological projections, that number translates to more than 22,000 total cases, including nine deaths. During the sentencing phase of the case, the court found that the evidence presented at trial linked PCA’s contaminated peanut products to the victims’ illnesses.
“Today’s sentences are a just result,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “They reflect the roles that the defendants played in these terrible acts, their acceptance of responsibility for those roles, and their willingness to assist the government, albeit after the fact, in ensuring that all of those who engaged in criminal activity were held accountable. The Department of Justice will continue to work aggressively with its partners to ensure that the American people are protected from food that is adulterated or misbranded.”
The government presented evidence at trial to establish that Stewart Parnell and Michael Parnell, with Lightsey and Kilgore, participated in several schemes by which they defrauded PCA customers and jeopardized the quality and purity of their peanut products. Specifically, the government presented evidence that the defendants misled customers about the presence of salmonella in their products. For example, the Parnells, Lightsey and Kilgore fabricated certificates of analysis (COAs) that accompanied various shipments of peanut products. COAs are documents that summarize laboratory results, including test results concerning the presence or absence of pathogens in food. According to the evidence, on several occasions, the Parnells, Lightsey and Kilgore participated in a scheme to fabricate COAs that stated that the food at issue was free of pathogens when in fact there had been no testing of the food or tests had revealed the presence of pathogens.
The government also presented evidence that demonstrated that when the U.S. Food and Drug Administration (FDA) officials visited PCA’s Blakely plant to investigate the outbreak, Stewart Parnell, Lightsey and Wilkerson gave untrue or misleading answers to questions posed by those officials.
“By making sure that the individuals involved in the corporate fraud at PCA were held accountable, I am confident that the message to other executives is clear,” said U.S. Attorney Michael J. Moore of the Middle District of Georgia. “Because we all know that it is people who make decisions about what goes on behind the corporate curtain, we'll be looking to hold those individuals personally accountable when they steer their businesses down the path of fraud. Mr. Kilgore and Mr. Lightsey acknowledged their wrongdoing, and today their sentences reflect not only their acceptance of that responsibility, but also the requirement of accountability.”
“Today’s sentencing in federal court will afford these defendants, former corporate officers at Peanut Corporation of America, plenty of time to reflect on their roles in the fatal 2009 salmonella outbreak as a result of their criminal conduct,” said Special Agent in Charge J. Britt Johnson of the FBI Atlanta Field Office. “It is the FBI’s hope that this will provide some solace to the families of those that died and the many more that suffered as a result of this outbreak.”
On Sept. 21, Judge Sands sentenced Stewart Parnell to serve 336 months in prison to be followed by three years of supervised release, Michael Parnell to serve 240 months in prison to be followed by three years of supervised release and Mary Wilkerson to serve 60 months in prison to be followed by two years of supervised release.
The case was prosecuted by Trial Attorneys Patrick Hearn and Mary M. Englehart of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Alan Dasher of the Middle District of Georgia. Principal Deputy Assistant Attorney General Mizer and U.S. Attorney Moore thank the investigative efforts of the FBI and the FDA’s Office of Criminal Investigations.
Former Oregon Woman Pleads Guilty for Conspiring to File Fraudulent Income Tax Returns Claiming More than $1 Million in RefundsRead the Press Release
A former resident of Portland, Oregon, pleaded guilty today to conspiring to file fraudulent income tax returns claiming more than $1 million in refunds, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and Acting U.S. Attorney Billy J. Williams of the District of Oregon.
According to the plea agreement, Tataneisha White, 42, admitted that during 2010, she conspired with other individuals to prepare and file more than 227 fraudulent income tax returns. The false information on the tax returns included fictitious wage and withholding information and fraudulent refundable credits. White has agreed to pay $626,750 in restitution to the Internal Revenue Service (IRS), which is the amount of fraudulent claims for refunds that were deposited into bank accounts under her control.
White also pleaded guilty to one count of theft of government funds and one count of filing a false claim.
White faces a statutory maximum sentence of 10 years in prison for the theft of government funds count, a statutory maximum sentence of 10 years in prison for the conspiracy count and a statutory maximum sentence of five years in prison for the false claims count. White also faces a maximum potential sentence of three years of supervised release and a fine of up to $250,000 for each count of conviction.
Acting Assistant Attorney General Ciraolo commended the special agents of IRS-Criminal Investigation, who investigated the case, and Trial Attorneys Lori Hendrickson and Ryan Raybould of the Tax Division, who are prosecuting the case. Ciraolo also thanked the U.S. Attorney’s Office in Portland for their valuable assistance in this case.
Former Nashville Airport Official Pleads Guilty to $1.1 Million Fraud and Bribery Scheme Involving Airport ContractorsRead the Press Release
John T. Howard, Jr., 45, of Nashville, Tenn., pleaded guilty today to three felony charges resulting from his role in a fraudulent invoice scheme and his solicitation and receipt of a bribe, announced David Rivera, United States Attorney for the Middle District of Tennessee. Howard was formerly an Assistant Vice President of the Metropolitan Nashville Airport Authority (“MNAA”), a public entity responsible for the operation of the Nashville International Airport.
Howard was charged in a criminal information on September 25, 2015, and pleaded guilty today to one count of conspiring to commit wire fraud, one count of soliciting and receiving a bribe, and one count of money laundering.
“Persons who hold a position of public trust and abuse their position to enrich themselves with taxpayer money will be held strictly accountable,” said U.S. Attorney David Rivera. “The United States Attorney’s Office and our law enforcement partners will aggressively pursue public corruption at all levels.”
In a hearing before U.S. District Court Judge Aleta A. Trauger, Howard admitted conspiring with certain MNAA contractors to submit fraudulent invoices to MNAA for construction and repair work that they had not performed, overseen, or verified. Howard instructed one contractor to submit fraudulent invoices to MNAA, and also agreed that this contractor would recruit other contractors to submit fraudulent invoices. Howard approved these fraudulent invoices and then accepted cash payments from the contractors. Howard acknowledged that the total amount paid by MNAA in connection with these fraudulent invoices was more than $1.1 million.
Howard also admitted asking a contractor to purchase more than $49,000 in airline tickets to Las Vegas for players, coaches, and others affiliated with a youth basketball organization run by Howard. In return, Howard awarded an MNAA cleaning job to this contractor.
Howard faces up to 20 years in prison on the conspiracy count and up to 10 years in prison on the counts of bribery and money laundering. Howard will also be ordered to pay restitution to MNAA, and will face forfeiture of the proceeds of his offense. Howard will be sentenced by Judge Trauger on January 28, 2016.
The case was investigated by the Federal Bureau of Investigation, the Internal Revenue Service- Criminal Investigation and the Office of the District Attorney General for Davidson County. The case is being prosecuted by Assistant U.S. Attorney William F. Abely.
Former Harrison County Supervisor Kim Savant Sentenced for Conspiracy to Commit BriberyRead the Press Release
Gulfport, Miss - Former Harrison County supervisor Kim Savant, 65, of Gulfport, was sentenced by U.S. District Judge Sul Ozerden today to sixty months in federal prison followed by two years of supervised release for conspiracy to commit bribery, announced U.S. Attorney Gregory K. Davis, IRS - Criminal Investigation Special Agent in Charge Jerome McDuffie and FBI Special Agent in Charge Donald Alway. Savant was also ordered to pay a $20,000 fine.
Savant previously pled guilty to a criminal information charging him with conspiracy to commit bribery in connection with his role as a board member of the Harrison County Utility Authority. Savant admitted that, from January 2011 through January 2013, while he was a supervisor for Harrison County and a member of the board of the Harrison County Utility Authority, he conspired with the owner of a company that performed work for the utility authority and accepted bribe payments in the amount of $1,500 per month in exchange for his official actions such as voting on the awarding of contracts, payments, emergency work, and other items.
U.S. Attorney Davis praised the efforts of special agents with the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigation for their work on the case, and Assistant U.S. Attorney Ruth Morgan who prosecuted the case.
Former Employee Steals Nearly $200,000 from Employer: Heading to Prison for more than Two YearsRead the Press Release
A former employee of Crossroads Mobile Maintenance in Williamsburg, Iowa, who stole nearly $200,000 was sentenced today to more than two years in federal prison.
Jeremy Murphy, age 33, from Marion, Iowa, received the prison term after a June 16, 2015, guilty plea to one count of wire fraud.
In a plea agreement, Murphy admitted that while working for Crossroads Mobile Maintenance, he made fraudulent charges on a company credit from April 2013 through August 2014. Murphy further admitted that he had set up a fake company and then used his company credit card to make charges purporting to be in payment to that company for work performed for Crossroads. In fact, the payments eventually went into Murphy’s personal bank account. Over the course of the scheme, he made $195,375.27 in fraudulent charges on the company credit card.
Murphy was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. He was sentenced to twenty-seven months’ imprisonment. A special assessment of $100 was imposed and he was ordered to make $187,241.87 in restitution to Crossroads’ insurance companies. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Murphy was released on conditions previously set and is to surrender to the Bureau of Prisons on a date yet to be set.
The case was prosecuted by Assistant United States Attorney Anthony Morfitt and investigated by Williamsburg Police Department and the Federal Bureau of Investigation.
Court file information is available at https://ecf.iand.uscourts.gov. The case file number is 15-CR-00052.
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Former Carnival Worker Pleads Guilty to Felony Murder for Role in Death of Medina Comic Book CollectorRead 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 Donald R. Griffin, 37, of Rochester, NY, pleaded guilty to committing a murder in aid of a racketeering enterprise, before U.S. District Judge Richard J. Arcara. The charge carries a penalty of life in prison and a $250,000 fine.
Assistant U.S. Attorney Anthony M. Bruce, who is handling the case, stated that Griffin was one of three individuals who broke into the Medina, NY home of 78 year old Homer Marciniak in the early morning hours of July 5, 2010. The intent of the burglary was to steal Marciniak’s valuable collection of comic books with an estimated value of $30,000. During the course of the burglary, Marciniak woke up and stumbled into the hallway where he encountered Griffin and the others. The defendant struck Marciniak in the face causing lacerations. After Griffin and the others left, Marciniak was transported by ambulance to Medina Memorial Hospital where his lacerations were sutured. However, following his release from the hospital’s emergency room, Marciniak went into cardiac arrest and died a short time later.
Medical evidence that the government was prepared to offer at trial demonstrated that the blow Griffin struck, as well as the emotional trauma caused by the burglary, directly contributed to Marciniak’s cardiac arrest and resulting death.
Rico Vendetti, the former owner of the East Side Gold and Audio Pawn Shop and Al’s Green Tavern on North Goodman Street in Rochester, engineered the burglary. He was convicted of Racketeering Influenced Corrupt Organization (RICO) Conspiracy and is awaiting sentencing.
Defendants Terry Stewart and Brandon Meade were also convicted in connection with this case.
The two other individuals involved in the burglary were Juan Javier, a juvenile at the time of the burglary who was convicted of robbery in Orleans County Court, and Albert Parsons who will be tried in federal court beginning on December 8, 2015 along with co-defendants Arlene Combs and Dayon Shaver.
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 on the part of Special Agents from the Federal Bureau of Investigation, the New York State Police, under the direction of Major Craig Hanesworth, the Orleans County Sheriff’s Department, under the direction of Sheriff Scott Hess, the Monroe County Sheriff’s Office, under the direction of Sheriff Patrick O’Flynn, the Medina Police Department, under the direction of Chief Jose Avila and Officers from the Rochester Police Department, under the direction of Chief Michael Ciminelli.
Sentencing is scheduled for February 3, 2016 at 1:00 p.m. before Judge Arcara.Family Members Arrested on Federal ChargesRead the Press Release
DALLAS — Four members of an Arlington, Texas, family were arrested earlier this week on charges outlined in a federal criminal complaint, unsealed late yesterday, stemming from their alleged conspiracy to defraud the Social Security Administration (SSA) by feigning mental illnesses to fraudulently collect Social Security benefits, announced U.S. Attorney John Parker of the Northern District of Texas.
Charged in the criminal complaint are Doreen Mitchell, 53, and her two sons, Michael Mitchell, 29, and Sonny Mitchell, 27, and her cousin, John Mitchell, a/k/a “Patrick Rena,” 58. Each defendant made an initial appearance in federal court before U.S. Magistrate Judge Paul Stickney, who ordered that all four remain in custody pending detention hearings set for tomorrow, Friday, October 2, 2015, and Monday, October 5, 2015.
According to the complaint, beginning in 1978 and continuing through the present, Doreen Mitchell, John Mitchell, Michael Mitchel and Sonny Mitchell conspired together to conceal, or fail to disclose, the true activity level and medical condition of Doreen Mitchell, Michael Mitchell and Sonny Mitchell, which would have affected each person’s continued entitlement to Supplemental Security Income (SSI) payments. This was done to secure benefits in a greater amount or quantity than was due or when no such benefit was authorized.
The SSA’s ability to determine an applicant’s medical and financial eligibility for the SSI program is directly dependent upon the SSA’s access to accurate and current information regarding that applicant. If an applicant is initially found to be eligible, and therefore becomes an SSI recipient, the SSA’s ability to determine that recipient’s continuing eligibility, and the correct monthly benefit due that recipient, is directly dependent upon the SSA’s ongoing access to accurate and current information regarding that recipient. The SSA requires disabled SSI recipients to advise the SSA of any improvements in their medical condition, their return to work of any kind, and any changes in their income, resources, address, living arrangements, family size or composition, or family income or resources.
Over the 37-year period beginning in 1978 and continuing to the present, SSA paid and continues to pay SSI benefits each month to Doreen Mitchell, Michael Mitchell and Sonny Mitchell. As of August 31, 2015, the SSA has paid approximately $461,913 in benefits based on the representation that these three individuals were disabled.
A federal complaint is a written statement of the essential facts of the offenses charged and must be made under oath before a magistrate judge. The government has 30 day to present the matter to a federal grand jury for indictment. A defendant is entitled to the presumption of innocence until proven guilty. The maximum statutory penalty for this offense as charged is five years in federal prison and a $250,000 fine.
The SSA’s Office of the Inspector General/Cooperative Disability Investigations Unit is investigating. Special Assistant U.S. Attorney Nicole Dana is in charge of the prosecution.
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