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19 August 2015
Bullhead City Physician to Pay $207,000 to Resolve False Claims AllegationsRead the Press Release
PHOENIX – Dr. Bashir Azher, M.D., 69, an Arizona-licensed physician practicing in Bullhead City, Ariz., has agreed to pay the United States $207,988 to resolve civil allegations that he violated the federal False Claims Act by submitting false bills to Medicare for prostate laser ablation procedures, commonly known as Green Light prostatectomies.
“This settlement is the latest of our office’s longstanding and ongoing efforts to protect taxpayer dollars and recoup them when misappropriated,” said United States Attorney John S. Leonardo.
“When physicians fail to meet professionally recognized standards of care while providing medically unnecessary procedures, taxpayers’ dollars are wasted and the public’s trust in the medical profession is at risk,” said Timothy B. DeFrancesca, Acting Special Agent in Charge for the Los Angeles Region of the United States Department of Health and Human Services, Office of Inspector General. “Our agents will continue to hold health care providers accountable for improper claims.”
The settlement agreement resolves allegations that from February 2006 through July 2014, Dr. Azher knowingly submitted materially false claims for reimbursement for prostate laser ablation procedures that were too short to generate a therapeutic benefit, failed to meet professionally recognized standards of care, were medically unnecessary, and/or violated applicable Medicare regulations. The settlement is neither an admission of liability by Dr. Azher nor a concession by the United States that its claims are unfounded.
The settlement resolves a lawsuit filed in June 2014 by Dr. Arnaldo Trabucco, M.D., under the qui tam, or whistleblower, provisions of the False Claims Act, which allow private citizens to bring civil actions on behalf of the United States and share in any recovery obtained. The case was filed in the United States District Court for the District of Arizona and is captioned United States ex rel. Trabucco v. PHC Fort Mohave, Inc., et al. (CV-14-8094-PCT-DGC). Dr. Trabucco will receive a share of the settlement payment that resolves the qui tam suit he filed.
The case was investigated by the United States Attorney’s Office for the District of Arizona and the United States Department of Health and Human Services, Office of Inspector General.
CASE NUMBER: CV-14-8094-PCT-DGC
RELEASE NUMBER: 2015-061_ Azher
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Buffalo Man Found Guilty of Murdering Girlfriend and Setting Fires for Insurance BenefitsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y. - U.S. Attorney William J. Hochul, Jr. announced today that a federal jury has returned a guilty verdict on all ten counts against Ronald Epps, 47, of Amherst, N.Y., The charges included wire fraud, mail fraud, arson, possession of Molotov Cocktails, maintaining a premises for drug trafficking, felon in possession of a firearm and possession of a firearm in furtherance of drug trafficking. The charges carry a mandatory minimum penalty of 35 years in prison, a maximum of life, a $1,500,000 fine or both.“Today’s verdict is believed to be the first instance where this Office has used the federal fraud laws to convict a murderer,” said U.S. Attorney Hochul. “This Office will continue to use all of the resources at our disposal to rid our streets of dangerous predators.”
Assistant U.S. Attorney Melissa M. Marangola, who is handling the case, stated that the defendant was accused of murdering his fiancée, Angela Moss, on August 27, 2009 in order to collect on the victim=s life insurance policy which listed Epps as the sole beneficiary. Ronald Epps and Angela Moss were engaged to be married and lived together on Cascade Drive in the Town of Amherst. Previously, on July 2, 2009, Epps and Moss went to a State Farm Insurance branch to make changes to Moss= life insurance policy. At the time, Epps was a minor beneficiary. The $100,000 policy was changed, making the defendant the sole beneficiary.On August 27, 2009, Moss left her place of employment at Absolut Care on Armor Road in Orchard Park at 11:00 p.m. The victim was last seen getting into the passenger seat of her car. Moss= body was discovered at 6:00 a.m. the following morning on California Road by colleagues heading into work. The prosecution argued that the defendant waited in the victim=s car then drove to California Road where Epps shot Moss once in the back of her head and left her body on the side of the road. The victim=s car was also found abandoned nearby.
On September 1, 2009, Epps filed a claim with State Farm Insurance, attempting to collect on Moss=s life insurance policy. To date, the defendant has not received any insurance money related to the policy on the late Ms. Moss.
Following Moss=s murder, the defendant remained in the apartment the two had lived in together. On August 1, 2010, Epps obtained a renter=s insurance policy from State Farm Insurance. The jury found that on October 13, 2010, Epps set fire to the vacant apartment next door with Molotov Cocktails. On this occasion, the damage to the defendant=s apartment was minimal. On October 15, the defendant also fire to his own apartment. On May 31, 2011, Epps received $3,769 from State Farm Insurance for damages to his property.
The jury also found the defendant guilty of using his apartment for distributing cocaine. Several witnesses testified that they purchased cocaine and marijuana from the defendant at 21 Cascade Drive. Amherst police officers testified that they seized cocaine, pills, and drug paraphernalia from the defendant’s residence on August 25, 2010.
The case was the culmination of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Resident Agent in Charge Steven Dickey, the Orchard Park Police Department, under the direction of Chief Michael Pacholec, and the Amherst Police Department, under the direction of Chief John Askey.
Sentencing is scheduled for December 10, 2015, at 12:30 p.m. before Judge Richard J. Arcara.
Brockport Man Arrested for Witness Tampering While Awaiting Sentencing for Mail Fraud and Forging Treasury ChecksRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y. - U.S. Attorney William J. Hochul, Jr. announced today that STEVEN RAY, 49, of Brockport, NY, was arrested and charged by indictment with tampering with a witness. The charge carries a maximum penalty of 20 years in prison, a $250,000 fine or both.
Assistant U.S. Attorney Craig R. Gestring, who is handling the case, stated that the indictment charges RAY with knowingly intimidating, threatening, and corruptly persuading a witness to prepare and sign an affidavit containing what the defendant knew to be false statements with the intent to influence, delay, and prevent the testimony of that witness in RAY’S pending sentencing in Federal Court.In February, RAY pleaded guilty to one count of mail fraud and one count of forging treasury checks. At that time, RAY admitted to cashing more than 120 forged United States Treasury Checks worth more than $400,000. The checks were stolen from the New York City Area as well as from other parts of the United States. Ray would get the stolen checks mailed to him via the United States Postal Service at his Brockport home.
During that investigation, federal agents identified at least 13 area bank accounts controlled by the defendant under various names. The defendant would take the stolen Treasury Checks he received by mail and then deposit them across these accounts. Many of the checks belonged to people who received Social Security payments, tax refunds, and other money drawn from the United States Treasury to help the intended recipients. As a result of the defendant’s scheme to defraud, Ray obtained more than $405,000 to which he was not otherwise entitled.
The conduct in the new indictment is alleged to have occurred while RAY was out of custody awaiting sentencing.
The indictment is the culmination of an investigation on the part of Inspectors from the United States Postal Inspection Service, under the direction of Shelly Binkowski, Inspector In Charge of the Boston Division, and Special Agents of the Internal Revenue Service, Criminal Investigation Division, under the Direction of Special Agent in Charge of the New York Field Office, Shantelle P. Kitchen.
The defendant was arraigned yesterday afternoon before U.S. Magistrate Judge Marian W. Payson and was ordered held pending a detention hearing. The hearing is scheduled for August 21, 2015 at 2:30 p.m. before U.S. Magistrate Judge Marian W. Payson.
The fact that the defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Barbour County man convicted of marijuana traffickingRead the Press Release
CLARKSBURG, WEST VIRGINIA – Charles Shawn Shannon, 54, of Belington, West Virginia, was convicted today of marijuana trafficking, United States Attorney William J. Ihlenfeld, II, announced.Shannon was one of four individuals charged in March 2015 in a 16-count federal indictment with participating in an extensive oxycodone and marijuana trafficking operation. Specifically, Shannon distributed marijuana in Barbour County, West Virginia.
Shannon pled guilty today to one count of “Distribution of Marijuana.” He faces up to five years in prison and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Defendants Roy Melvin Isner, 62, and Mark Wesley Lambert, 39, both of Elkins, West Virginia, were each pled guilty to marijuana trafficking charges in April 2015. The fourth defendant, Chad Allen Workman, 37, of Beverly, West Virginia is currently scheduled for trial in September 2015.
Assistant U.S. Attorney Stephen Warner prosecuted the case on behalf of the government. The Mountain Region Drug and Violent Crime Task Force led the investigation. The Greater Harrison County Drug and Violent Crime Task Force, a HIDTA-funded initiative, the Internal Revenue Service – Criminal Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives also investigated.
U.S. Magistrate Judge John S. Kaull presided.
Baltimore Man Sentenced to 9 Years in Prison for a Drug Distribution Conspiracy and for Bribing Letter Carriers to Divert Packages Containing MarijuanaRead the Press Release
Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Gary Coleman, a/k/a “Short,” age 44, of Baltimore, today to nine years in prison, followed by five years of supervised release, in connection with a bribery and drug conspiracy in which he bribed letter carriers to divert packages of marijuana sent through the mail and deliver the packages to Coleman and other co-conspirators. Judge Motz also ordered Coleman to forfeit $14,700.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Postal Inspector in Charge David G. Bowers of the U.S. Postal Inspection Service - Washington Division; Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration, Baltimore District Office; Colonel William M. Pallozzi, Superintendent of the Maryland State Police; Interim Commissioner Kevin Davis of the Baltimore Police Department; and Baltimore City Sheriff John Anderson.
“Today’s sentencing confirms that anyone using the U.S. mail to distribute marijuana or any other illegal narcotics will be brought to justice and held accountable,” said David Bowers, Acting Inspector in Charge, U.S. Postal Inspection Service-Washington Division. “We’re grateful to our law enforcement partners who helped with this investigation and look forward to their continued support to protect America’s postal system from criminal activity.”
According to his plea agreement, Coleman and others conspired with letter carriers Antoinette McDaniels and Hilary Gainey, paying them bribes in exchange for diverting packages containing marijuana and delivering those packages to Coleman and other co-conspirators.
Specifically, Coleman admitted that in February 2014 and April 2014, he was introduced to Antoinette McDaniels and Hilary Gainey, respectively, while they were employed by the U.S. Postal Service as letter carriers. A co-conspirator told Coleman that McDaniels and Gainey would divert specific packages sent through the U.S. mail that contained marijuana, and deliver those packages to co-conspirators, in exchange for a bribe of $100 per parcel. Coleman, McDaniels and Gainey agreed to this arrangement and Coleman paid them up to $100 for each parcel diverted and delivered to him or a co-conspirator. According to court documents the packages were sent via the U.S. mail from Arizona, California, Florida, and elsewhere, to addresses along McDaniels’ route in Baltimore and Gainey’s route in Columbia, Maryland.
According to their plea agreements, Gainey and McDaniels delivered approximately 100 packages and 30 packages, respectively, to Coleman and other co-conspirators. Gainey was paid a total of $10,000 by the co-conspirators and McDaniels was paid a total of $4,700 by the co-conspirators. Coleman admitted that during his participation in the conspiracy, between 100 and 400 kilograms of marijuana were distributed.
McDaniels and Gainey previously pleaded guilty to their roles in the conspiracy. They each face a maximum sentence of five years in prison for the bribery conspiracy and two years in prison for bribery. McDaniels faces a maximum of 20 years in prison and Gainey faces a mandatory five years and up to 40 years in prison, for conspiracy to distribute and possess with intent to distribute marijuana. U.S. District Judge J. Frederick Motz has scheduled sentencing for McDaniels on August 28, 2015, and for Gainey on August 21, 2015.
United States Attorney Rod J. Rosenstein praised the U.S. Postal Inspection Service, DEA, Maryland State Police, Baltimore City Police Department and Baltimore City Sheriff’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Jason D. Medinger, who is prosecuting the case.
Baltimore Man Pleads Guilty to Sex Trafficking ConspiracyRead the Press Release
Baltimore, Maryland – Gerald Lee Banks, age 40, of Baltimore, pleaded guilty today to conspiracy to commit sex trafficking by force, fraud and coercion.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Andre Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Chief James W. Johnson of the Baltimore County Police Department.
According to Banks’ plea agreement, from September through May 2013, Banks conspired with Travis Lamont Foote, a/k/a “Cash,” to commit sex trafficking by force fraud and coercion.
For example, in September 2012, Jane Doe 1, an 18 year old woman living in Florida, had dropped out of high school and was trying to get back into school or find employment. Foote contacted Jane Doe 1 on Facebook, using a female online identity he created, “Cash Treasure,” and told Jane Doe 1 that “she” knew someone who would be able to assist her. Foote then reached out to Jane Doe 1, as a friend of “Cash Treasure,” and lured her to Baltimore stating that he could help Jane Doe 1 to get back into high school and get a diploma. After Jane Doe 1 agreed, Foote paid for an airline ticket for Jane Doe 1 to fly from Florida to Baltimore sometime in September.
Banks and Foote met Jane Doe 1 at the airport and drove her to a motel in Catonsville, where they had rented four rooms, three of which were occupied by other females. It was then that Jane Doe 1 learned that Banks and Foote were running a prostitution business and that they expected Jane Doe 1 to work for them. At first Jane Doe 1 refused, but eventually she began having sex with men for money, with all of the proceeds going to Banks and Foote.
During this time of the conspiracy, Banks and Foote used internet websites to advertise the women who worked for them, including Jane Doe 1, as available for prostitution. All of the proceeds were paid to Banks and Foote. On November 14, 2012, an undercover detective from the Baltimore County Police Department Vice Unit scheduled a “date” with one of the prostitutes advertised by Banks and Foote. The undercover detective met the woman at the agreed upon time and place and she was arrested. Jane Doe 1 was also arrested and officers located and attempted to arrest Foote but he struggled and ran away.
On May 16, 2013, a Baltimore County Police officer conducted a traffic stop of a vehicle being operated by Banks, with Foote and an 18 year old female, Jane Doe 2, as passengers in the car. Banks, Foote and Jane Doe 2 were arrested when officers recovered a plastic bag containing 16 smaller bags of crack cocaine. Jane Doe 2 was listed in police records as a possible runaway and investigation showed that Jane Doe 2 began working as a prostitute for Banks and Foote in April 2013. As a result of internet advertisements placed by Banks and Foote, Jane Doe 2 had approximately 100 “dates” with men to engage in commercial sex acts and all of the proceeds were paid to Banks. Jane Doe 2 told law enforcement that earlier in May 2013, Foote beat and choked her when she tried to leave the motel after refusing a request from one of the men. Banks stopped Foote from choking her, but was aware that Foote physically forced Jane Doe 2 back to the hotel room.
Shortly after his arrest on May 16, 2013, Banks made bail and was released. Banks did not attend further court proceedings and an arrest warrant was issued in October 2013. On January 9, 2014, federal charges were filed against Banks, who evaded authorities until his arrest in October 2014.
Banks faces a maximum sentenced of life in prison, and will also be required to register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA). U.S. District Judge James K. Bredar has scheduled sentencing for November 18, 2015, at 3:00 p.m. Banks remains detained.
Travis Lamont Foote, a/k/a “Cash,” age 31, of Baltimore, previously pleaded guilty to his role in the sex trafficking conspiracy and was sentenced to 12 years in prison.
This case was investigated by the Maryland Human Trafficking Task Force, formed in 2007 to discover and rescue victims of human trafficking while identifying and prosecuting offenders. Members include federal, state and local law enforcement, as well as victim service providers and local community members. For more information about the Maryland Human Trafficking Task Force, please visit http://www.justice.gov/usao/md/priorities_human.html.
Report suspected instances of human trafficking to HSI's tip line at 866-DHS-2ICE (1-866-347-2423) or by completing its online tip form. Both are staffed around the clock by investigators.
United States Attorney Rod J. Rosenstein commended HSI Baltimore and the Baltimore County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Judson T. Mihok, who is prosecuting the case.
Bainbridge Drug Dealer Sentenced to 25 YearsRead the Press Release
Leonard Hoskins, aged 42, of Bainbridge, Georgia, was sentenced on August 18, 2015 to serve 25 years (300 months) in federal prison for possessing methamphetamine with the intent to distribute it. The sentence was handed down by the Honorable Leslie J. Abrams, United States District Court Judge, in Albany, Georgia.
Mr. Hoskins entered a plea of guilty to the charge on March 26, 2015. As a part of his plea agreement, Mr. Hoskins admitted that during 2013 and 2014, he obtained multiple ounces of methamphetamine “Ice” from a source in the Atlanta, Georgia area and distributed it in Bainbridge, Georgia. During a traffic stop for speeding on I-75 on June 6, 2014, Mr. Hoskins was found to be in possession of one pound of methamphetamine and $3,433.00 in U.S. currency.
“Methamphetamine has become a modern scourge in South Georgia, the Middle District of Georgia, and the country as a whole. A pound of methamphetamine is a large amount, and merits the equally large sentence of 25 years meted out to Mr. Hoskins. I commend the local, state and federal law enforcement authorities whose good work prevented the distribution of this significant quantity of illegal drugs into our community as well as removing Mr. Hoskins from the drug business for the next quarter century,” said United States Attorney Michael J. Moore.
“The success of this investigation speaks of the continued collaboration between our local, state and federal law enforcement partners in targeting and dismantling meth distribution rings that profit by spreading their poison in our communities. Strong partnerships such as this one underscore the power of our combined forces and demonstrate our collective impact on the war against meth,” said Daniel R. Salter, Special Agent in Charge of the U.S. Drug Enforcement Administration’s Atlanta Field Division.”
The case was investigated by the Bainbridge Department of Public Safety, Crisp County Sheriff’s Office, the Georgia State Patrol and the U.S. Drug Enforcement Administration. Assistant United States Attorney Leah E. McEwen represented the Government in the prosecution of the case.
Inquiries regarding this case should be directed to Pamela Lightsey, United States Attorney’s Office, at (478) 621-2603.
Atlanta Man Convicted of Meth ConspiracyRead the Press Release
Contact Person: Jim May (803) 929-3000
Columbia, South Carolina. United States Attorney Bill Nettles announced today that a federal jury convicted Alfredo De Jusus Ramirez this afternoon of conspiracy to possess with intent to distribute and distribution of 50 grams or more of actual methamphetamine and 500 grams or more of a mixture containing methamphetamine. United States District Judge J. Michelle Childs had the U.S. Marshal take Mr. Ramirez into custody after the jury returned its verdict, and will sentence Mr. Ramirez after a presentence investigation report has been prepared by the United States Probation Office.
Witnesses testified that Mr. Ramirez was the source of supply for a group of Bamberg meth dealers, who supplied cohorts including members of a motorcycle gang. One witness testified that Mr. Ramirez brought the meth from the Texas area in sealed bean cans. The Drug Enforcement Administration tested the methamphetamine at 96 to 100 percent pure, which reflects that the meth was made in a “super lab” south of the Texas border. The street-name for meth of this purity is “ICE.”
The case was investigated by the Drug Enforcement Administration. The case was prosecuted by Assistant United States Attorneys Jim May and Beth Drake.
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Associate of Decavalcante Crime Family Admits Distribution of Cocaine, Running A Prostitution Operation & Possessing Weapon as Convicted FelonRead the Press Release
NEWARK, N.J. – An associate of the DeCavalcante crime family of La Cosa Nostra today admitted his role in distributing more than 500 grams of cocaine, running a prostitution operation and possessing a shotgun as a convicted felon, U.S. Attorney Paul J. Fishman announced.
Anthony Stango, 34, of Brick, New Jersey, pleaded guilty before U.S. District Judge William H. Walls in Newark federal court to an information charging him with: the sale of between 500 grams to 1.5 kilos of cocaine; use of the telephone in interstate commerce to conduct a prostitution operation; and possession of a firearm by a convicted felon.
According to documents filed in this case and statements made in court:
Stango was arrested March 12, 2015, as part of a sweep of 10 members of the DeCavalcante crime family, which operated in New Jersey and elsewhere. The crime family engaged in numerous offenses, including fraud, distribution of controlled substances, prostitution, gambling, the sale of stolen and contraband goods, murder, assault, extortion, and other crimes of violence.
Stango admitted conducting a drug operation that, on eight separate occasions from December 2014 to March 2015, sold between 500 grams to 1.5 kilos of cocaine to an undercover law enforcement officer. During that same time period, Stango worked to set up a prostitution operation in New Jersey. Recorded conversations reflected discussions he had with a conspirator (identified as “CS”) who at the time was living in Nevada. Stango advised CS that he had already talked to one or more prostitutes about the details of the operation, their fees and the conditions under which the women would be providing services. Stango also admitted possessing an H&R Pardner 12 gauge pump action shotgun, while being a convicted felon.
The count of sale of 500 grams to 1.5 kilos of cocaine carries a mandatory minimum of five years in prison and a maximum potential penalty of 40 years in prison and a $5 million fine; the count of use of the telephone in interstate commerce to conduct a prostitution operation carries a maximum potential penalty of five years in prison and a $250,000 fine; and the count of possession of a firearm by a convicted felon carries a maximum potential penalty of 10 years in prison and a $250,000 fine. Sentencing is scheduled for Nov. 26, 2015.
U.S. Attorney Fishman credited the members of the FBI’s Organized Crime Task Force under the direction of Special Agent in Charge Richard M. Frankel in Newark; the Waterfront Commission of New York Harbor, under the direction of Executive Director Walter Arsenault; the Bayonne Police Department, under the direction of Chief Drew Niekrasz; and the N.J. State Commission of Investigation, under the direction of Chairman Joseph F. Scancarella, with the investigation leading to today’s guilty plea. He also thanked the FBI’s Las Vegas office and the Union County Prosecutor’s Office for their roles in the investigation.
The government is represented by Senior Litigation Counsel V. Grady O’Malley Sr. and Assistant U.S. Attorney James Donnelly of the Organized Crime/Gangs Strike Force.
Defense counsel: Gary Mizzone Esq., Little Falls, New Jersey
Download Stango Anthony Information
Artesia Man Pleads Guilty to Violating Federal Narcotics Trafficking and Firearms LawsRead the Press Release
ALBUQUERQUE – Joe Anthony Reza, 33, of Artesia, N.M., pled guilty this morning in federal court in Las Cruces, N.M., to violating federal firearms and drug trafficking laws. Under the terms of his plea agreement, Reza will be sentenced to 120 months in prison followed by a term of supervised release to be determined by the court.
Reza was arrested on June 6, 2015, on a criminal complaint charging him with distribution of methamphetamine and possession of a firearm in furtherance of a drug trafficking crime on Feb. 24, 2015, in Eddy County, N.M. According to the complaint, agents with the Pecos Valley Drug Task Force executed a search warrant at Reza’s residence on Feb. 24, 2015, and seized approximately 117.93 grams of methamphetamine, three firearms, a marijuana plant and digital scales. At the time, Reza was arrested on state charges which were later dismissed in favor of federal prosecution.
During today’s proceedings, Reza pled guilty to a felony information charging him with possessing methamphetamine with intent to distribute and possessing a firearm in furtherance of a drug trafficking crime. In entering his guilty plea, Reza admitted that on Feb. 24, 2015, law enforcement officers seized 117 grams of methamphetamine and a handgun from his residence. Reza further admitted that he possessed the handgun for protection of his drug trafficking activities.
Reza remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Las Cruces office of the DEA and the Pecos Valley Drug Task Force with assistance from the 5th Judicial District Attorney’s Office. The case is being prosecuted by Assistant U.S. Attorney Brock Taylor of the U.S. Attorney’s Las Cruces Branch Office 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.
The Pecos Valley Drug Task Force is comprised of officers from the Eddy County Sheriff’s Office, Carlsbad Police Department and Artesia Police Department and is part of the HIDTA Region VI Drug Task Force. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Ardmore Woman Sentenced to 60 Months Probation, $86,000 Restitution for Theft of Government FundsRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that PATRICIA ANN RABORN age 56, of Ardmore, Oklahoma, was sentenced to 5 years of probation and ordered to pay $86,289.50 in restitution for Theft of Government Funds, in violation of Title 18, United States Code, Sections 641 and 2.
The charge arose from an investigation by the Social Security Administration, Office of Inspector General. The defendant pled guilty in January, 2015.
The Indictment alleged that beginning in or around July 2006, and continuing until in or around February, 2014, within the Eastern District of Oklahoma, the defendant did knowingly and willfully embezzle, steal, and purloin money of the Social Security Administration, namely, Social Security Disability Income payments to which she knew she was not entitled, having a value in excess of $1,000.00. The Indictment further alleged that beginning in or around March 2005, and continuing until in or around October, 2012, the defendant had knowledge of the occurrence of an event affecting the right to receive or continue to receive Social Security Disability Income payments.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing.
Assistant United States Attorney Rob Wallace represented the United States.
Ambulance Company Owner, Operator and Managers Found Guilty in Medicare Fraud ConspiracyRead the Press Release
A federal jury in Los Angeles late yesterday convicted the former owner, operator and managers of a Southern California ambulance company of health care fraud charges in connection with a Medicare fraud scheme of at least $2.4 million.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Eileen M. Decker of the Central District of California, Acting Special Agent in Charge Steve Ryan of the U.S. Department of Health and Human Services Office of the Inspector General (HHS-OIG) Los Angeles Region and Assistant Director in Charge David Bowdich of the FBI’s Los Angeles Division made the announcement.
Yaroslav Proshak, aka Steven Proshak, 47, of Valley Village, California; Emilia Zverev, 58, of Van Nuys, California; and Sharetta Michelle Wallace, 37, of Inglewood, California, each were convicted of one count of conspiracy to commit health care fraud and five counts of health care fraud following a two-week trial. Proshak’s sentencing is scheduled for Nov. 24, 2015, and Zverev’s and Wallace’s sentencing is scheduled for Nov. 30, 2015, all before U.S. District Judge S. James Otero of the Central District of California, who presided over the trial.
Proshak owned and operated ProMed Medical Transportation, an ambulance transportation company in the greater Los Angeles area that provided non-emergency ambulance transportation services to Medicare beneficiaries, many of whom were dialysis patients. Zverev was the billing manager, and Wallace supervised ProMed’s emergency medical technicians (EMTs).
The evidence at trial demonstrated that, between May 2008, and October 2010, the defendants conspired to bill Medicare for ambulance transportation services for individuals whom the defendants knew did not need such services. In addition, the evidence showed that the defendants instructed EMTs who worked at ProMed to conceal the true medical conditions of patients they were transporting by altering requisite paperwork and creating fraudulent documents to justify the transportation services.
According to evidence admitted at trial, during the course of the conspiracy, ProMed submitted at least $2.4 million in false and fraudulent claims to Medicare for medically unnecessary transportation services. Medicare paid at least $1.2 million of those claims.
The case was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Central District of California. The case was investigated by the FBI and HHS-OIG. The case was prosecuted by Trial Attorneys Blanca Quintero, Fred Medick and Ritesh Srivastava of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 2,300 defendants who have collectively billed the Medicare program for more than $7 billion. In addition, HHS’s Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Albuquerque Man Pleads Guilty to Armed Robbery of a McDonald’s RestaurantRead the Press Release
ALBUQUERQUE – Pablo Salgado-Cervantes, 25, of Albuquerque, N.M., pleaded guilty today in federal court to violating the Hobbs Act and the federal firearms laws by brandishing a firearm during an armed robbery of a McDonald’s restaurant on Sept. 3, 2014.
Salgado-Cervantes was charged on Sept. 4, 2014, in a criminal complaint with robbing the McDonald’s restaurant located at 5900 Menaul NE in Albuquerque at gunpoint on three separate occasions: July 1, 2014, July 9, 2014 and Sept. 3, 2014. The criminal complaint also charged him with robbing the McDonald’s restaurant located at 8315 Montgomery Blvd. NE in Albuquerque at gunpoint on July 9, 2014.
On Jan. 21, 2015, Salgado-Cervantes was charged in a five-count indictment with four counts of violating the Hobbs Act by robbing a business involved in interstate commerce and one count of brandishing firearms during crimes of violence.
Salgado-Cervantes was arrested on the federal charges on Feb. 9, 2015, after he was transferred into federal custody from state custody where he was facing related state charges. The state charges were subsequently dismissed in favor of federal prosecution.
During today’s proceedings, Salgado-Cervantes pled guilty to Counts 4 and 5 of the indictment. In entering his guilty plea, Salgado-Cervantes admitted that on Sept. 3, 2014, he robbed the McDonald’s restaurant located at 5900 Menaul NE. He also admitted brandishing a firearm to coerce an employee to give him money from the safe. Salgado-Cervantes further admitted hitting the employee with the butt of his firearm before fleeing from the restaurant with the cash he stole.
At sentencing, Salgado-Cervantes faces a maximum penalty of 20 years in prison for the Hobbs Act violation. He faces a mandatory minimum of seven years in prison on the firearms charge which must be served consecutive to any sentence imposed on the Hobbs Act charge. Salgado-Cervantes remains in custody pending sentencing which has yet to be scheduled.
This case was investigated by the Albuquerque office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Albuquerque Police Department with assistance from the 2nd Judicial District Attorney’s Office. Assistant U.S. Attorney Presiliano Torrez is prosecuting the case.
Albuquerque Man Charged with Violating the Hobbs Act and Federal Firearms LawsRead the Press Release
ALBUQUERQUE – Raiff Hayes, 24, of Albuquerque, N.M., made his initial appearance in federal court this morning on a criminal complaint charging him with violating the Hobbs Act and federal firearms laws by robbing a commercial business at gunpoint. Hayes remains in federal custody pending a detention hearing scheduled for tomorrow morning.
The criminal complaint, which was filed on Aug. 5, 2015, alleges that Hayes robbed ABQ Interlock, a business located at 2444 Menaul Blvd. NE in Albuquerque on the afternoon of July 27, 2015. According to surveillance video from ABQ Interlock, Hayes allegedly pointed a firearm at two employees, fired a shot into the ceiling, placed a bag on the counter, and demanded that the employees place cash into his bag. On July 28, 2015, one of the employees allegedly identified Hayes as the robber from a photo array.
Hayes was arrested on the federal charges on Aug. 18, 2015, after he was transferred to federal custody from state custody where he was being held on related state charges.
If convicted on the Hobbs Act charge, Hayes faces a statutory maximum penalty of 20 years in federal prison. If convicted of discharging a firearm during a crime of violence, Hayes faces a statutory mandatory minimum of ten years that must be served consecutive to any sentence imposed on the Hobbs Act charge. Defendants are presumed innocent unless found guilty in a court of law.
This case was investigated by the ATF office in Albuquerque and the Albuquerque Police Department with assistance from the 2nd Judicial District Attorney’s Office. Assistant U.S. Attorney Norman Cairns is prosecuting the case.
Alabama Woman Pleads Guilty for Role in Multimillion-Dollar Stolen Identity Refund Fraud ConspiracyRead the Press Release
A Phenix City, Alabama, resident pleaded guilty today in the Middle District of Alabama to conspiracy and aggravated identity theft for her role in a multimillion-dollar stolen identity tax refund fraud (SIRF) scheme, Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney George L. Beck Jr. of the Middle District of Alabama announced.
According to court documents, between 2011 and June 2014, Talashia Hinton, also known as LayLay and LaLa, participated in a large-scale stolen identity tax refund conspiracy. The indictment alleges that the co-conspirators filed more than 3,000 false tax returns for 2012 and 2013 that falsely claimed more than $7.5 million in federal income tax refunds from the Internal Revenue Service (IRS). Hinton worked with Keisha Lanier, who supplied her with IRS electronic filing identification numbers in the names of sham tax businesses and stolen identities that included personal information so that Hinton could prepare and file false tax returns to claim refunds using the stolen identities. At the direction of Lanier, Hinton also obtained identities from Tamika Floyd, who stole names from databases maintained by the state of Alabama. The false returns directed the IRS to pay the refunds by issuing U.S. Treasury checks and direct deposits onto prepaid debit cards.
Tamika Floyd was sentenced to serve 87 months in prison on May 19. Lanier is scheduled to be sentenced on Aug. 24 and other defendants involved in the scheme were sentenced on Aug. 7. A sentencing date for Hinton has not been scheduled.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Beck Jr. commended special agents of IRS-Criminal Investigation, who investigated the case, and Trial Attorneys Michael C. Boteler and Gregory P. Bailey of the Tax Division and Assistant U.S. Attorney Jonathan Ross of the Middle District of Alabama, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
18 August 2015
‘Dirty Block’ Gang Leader and His Brother Convicted on Drug Conspiracy and Weapons ChargesRead the Press Release
CAMDEN, N.J. – Two members of a criminal street gang that used threats, intimidation and violence to maintain control of the illegal drug trade in Atlantic City, New Jersey, were convicted at trial today on drug conspiracy and weapons charges, U.S. Attorney Paul J. Fishman announced.
Mykal Derry, a/k/a “Koose,” 35, and his brother Malik Derry, a/k/a “Lik, ” 24, both of Atlantic City, were convicted following a six-week trial before U.S. District Judge Noel L. Hillman in Camden federal court. Mykal Derry was convicted of conspiracy to distribute one kilogram or more of heroin, distributing heroin, maintaining a place for the purposes of storing and distributing heroin, possessing, brandishing and discharging firearms in furtherance of the drug conspiracy and using a communications device in furtherance of a drug trafficking crime. Malik Derry was convicted of conspiracy to distribute one kilogram or more of heroin, possessing and discharging firearms in furtherance of the conspiracy and using a communications device in furtherance of a drug trafficking crime. The jury deliberated approximately seven hours before returning the verdicts.
According to documents filed in this case and the evidence presented at trial:
The men are members of a gang known as “Dirty Block,” a/k/a “Crime Fam,” “3.6.6.12,” or “3.6,” which operated in a geographic area of Atlantic City that includes the public housing apartment complexes of Stanley Holmes Village Public Housing Complex, Renaissance Plaza and Schoolhouse Apartments.
The defendants participated in a violent street-level drug trafficking organization that controlled heroin sales through the possession of dozens of firearms and the use of gun violence, including at least one homicide and several non-fatal, drug-related shootings. Twenty-three loaded firearms were seized from the defendants and dozens of conspirators during the time frame of the indictment and presented in court as evidence.
Mykal Derry, a Dirty Block leader, directed the gang’s drug distribution activities. Malik Derry carried a firearm and acted as a gang “enforcer.” After acquiring heroin from other suppliers, Mykal Derry distributed “bricks” and “bundles” of heroin to gang members for resale to their customers, including other heroin dealers in the Atlantic City area. This heroin was marketed using numerous “stamps” that suppliers, distributors and dealers use to brand their product.
The conspiracy to distribute a kilogram or more of heroin carries a maximum potential penalty of life in prison. The possession and discharge of firearms in furtherance of the conspiracy carries a statutory minimum of 10 years in prison, to be served consecutively to the drug conspiracy charge. Each substantive distribution count carries a maximum potential penalty of 30 years in prison. Maintaining a place to store and distribute heroin carries a maximum potential penalty of 20 years in prison. Sentencing for Mykal Derry is scheduled for Dec. 1, 2015. Sentencing for Malik Derry is Dec. 2, 2015.
U.S. Attorney Fishman credited special agents of the FBI’s Newark Division, Atlantic City Resident Agency, under the direction of Special Agent in Charge Richard M. Frankel; the Atlantic County Prosecutor’s Office, under the direction of Prosecutor James P. McClain; the Atlantic City Police Department, under the direction of Chief Henry White; and the South Jersey Safe Streets Violent Incident and Gang (Safe Streets) Task Force, with the investigation leading to today’s verdict.
He also thanked the N.J. State Police; the Atlantic County Sheriff’s Office; the Northfield Police Department; the Vineland Police Department; the Brigantine Police Department; and the Millville Police Department for their contributions.
The government is represented by Assistant U.S. Attorneys Patrick Askin and Justin Danilewitz of the U.S. Attorney’s Office in Camden and Special Assistant U.S. Attorney Edmund Mallqui-Burgos of the Atlantic County Prosecutor’s Office.
Defense Counsel:
Mykal Derry: Robert E. Madden Esq., Jenkintown, Pennsylvania
Malik Derry: Joshua L. Markowitz Esq., Lawrenceville, New JerseyYuma Receives Nearly $43,000 in Federal Grant Money to Promote Law Enforcement EffortsRead the Press Release
PHOENIX – Today, U.S. Attorney John S. Leonardo announced that $42,924 in additional grant funds would be made available to law enforcement offices in Yuma to support internet access, with the goal of reducing crime and increasing officer safety. The grant funds were awarded by the Bureau of Justice Assistance (“BJA”), which is a component of the Department of Justice’s Office of Justice Programs (“OJP”).
“Supporting our local law enforcement agencies throughout Arizona is a primary goal of our office,” said U.S. Attorney John S. Leonardo. “We encourage all agencies to be proactive and apply for future grant funding through our Office of Justice Programs.”
Additional information about BJA and its programs is available at: https://www.bja.gov/Default.aspx
Information about OJP and its programs can be found at: http://www.ojp.usdoj.gov.
RELEASE NUMBER: 2015-058_YUMA GRANT (2015-DJ-BX-0578)
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Three Sentenced for Stealing Millions from MedicaidRead the Press Release
CHARLOTTE, N.C. – Three Charlotte women were sentenced today for conspiring to steal millions from Medicaid, announced Jill Westmoreland Rose, Acting U.S. Attorney for the Western District of North Carolina. All three defendants appeared before Chief U.S. District Judge Frank D. Whitney and were sentenced as follows: Aliya Boss, 36, of Charlotte, was sentenced to 44 months in prison, followed by three years of supervised release and was ordered to pay $1,135,302.27 as restitution to Medicaid; Sakeenah David Davis, 38, of Charlotte, was sentenced to 42 months in prison, three years of supervised release and was ordered to pay restitution in the amount of $506,124; and Kino Legette Williams, 37, of Charlotte, was handed down a 35-month sentence, was ordered to serve three years under court supervision and to pay $506,124 as restitution to Medicaid.
Acting U.S. Attorney Jill Westmoreland Rose is joined by John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division.
According to filed court documents in each case and today’s sentencing hearings:
From 2012 to June 2013, Boss was involved in a scheme to defraud Medicaid of more than $4.3 million by submitting false reimbursement claims for mental and behavioral health services that she did not provide. Boss, a licensed social worker and owner of “Boss Counseling and Consulting, LLC.,” was approved by Medicaid to bill for and receive reimbursement for therapy services provided to Medicaid recipients. Boss conspired with others and agreed to allow at least two mental health companies to submit fraudulent reimbursement claims to Medicaid using her provider number for sham mental and behavioral health services that Boss never provided.
Court documents indicate that, in some instances, the fraudulent reimbursement claims submitted to Medicaid claimed that Boss had provided as many as 140 hours of therapy during a single 24-hour day. In exchange for lending her Medicaid provider number Boss received monthly payments from the companies, even though she knew she never provided those services. In addition to “renting out” her provider number, Boss also submitted false claims to Medicaid for fraudulent counseling services through her own company, using the Medicaid numbers of beneficiaries collected by another member of the conspiracy working as a “patient recruiter.”
Boss and her conspirators filed fraudulent claims, in some instances claiming that therapy services were provided to more than 200 Medicaid recipients in a single day or billing for more than 64 hours of therapy over the course of a 24-hour period. Of the fraudulent claims filed, $306,965.56 of the reimbursement funds was paid out directly to Boss.
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From October 2012 to July 2013, Sakeenah Davis and Kino Williams were involved in a scheme to defraud Medicaid of more than $1.6 million by submitting fraudulent reimbursement claims for mental and behavioral health services that were not provided. Davis and Williams owned and operated “New Choices Youth and Family Services,” (New Choices), a Medicaid-approved company that purportedly provided outpatient mental and behavioral therapy services. During the relevant time period, Davis, Williams and others hired a conspirator as the director of New Choices and agreed to pay her $4,000 per month for her services. Court records show that the director-conspirator billed Medicaid for fraudulent services that never provided by New Choices. Court records show that all the fraudulent claims listed “S.B.” as the attending clinician, even though S.B. did not provide the claimed services. In some instances, New Choices’ billing claimed that the hours of therapy S.B. had provided over the course of a single day far exceeded a 24-hour period, in one instance claiming more than 77 hours of therapy in one day. As a result of the fraudulent claims, over the course of the conspiracy Medicaid paid out $506,124 to Williams and Davis. The two women used some of the stolen funds to pay for personal expenses, including jewelry and to pay for Davis’s wedding.
All three defendants previously pleaded guilty to one count of health care fraud conspiracy. They will be ordered to report to the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
The FBI conducted the investigations with the assistance of MID. The prosecution of the cases is handled by Assistant U.S. Attorney Kelli Ferry of the U.S. Attorney’s Charlotte Office.
The investigation and charges are the work of the Western District’s joint Health Care Fraud Task Force. The Task Force is multi-agency team of experienced federal and state investigators, working in conjunction with criminal and civil Assistant United States Attorneys, dedicated to identifying and prosecuting those who defraud the health care system, and reducing the potential for health care fraud in the future. The Task Force focuses on the coordination of cases, information sharing, identification of trends in health care fraud throughout the region, staffing of all whistle blower complaints, and the creation of investigative teams so that individual agencies may focus their unique areas of expertise on investigations. The Task Force builds upon existing partnerships between the agencies and its work reflects a heightened effort to reduce fraud and recover taxpayer dollars.
If you suspect Medicare or Medicaid fraud please report it by phone at 1-800-447-8477 (1-800-HHS-TIPS), or E-Mail at [email protected].
Third Conspirator Sentenced to 13 Years in Prison for Armed RobberyRead the Press Release
Greenbelt, Maryland – U.S. District Judge Theodore D. Chuang sentenced Joel Varela Linares, age 25, of Washington, D.C., to 13 years in prison, followed by five years of supervised release, for conspiring to commit the robbery of a person he believed to be a drug dealer, for using and brandishing a firearm during a crime of violence, and for conspiring to possess with intent to distribute more than a kilogram of heroin.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Andre Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Chief Mark A. Magaw of the Prince George’s County Police Department.
According to his plea agreement, on April 11, 2014, Linares and his co-conspirators Shawn Delonte Allen and Evan Anthony Peek-Austin, entered the victim’s residence and awaited his arrival. As the victim arrived home, Allen approached the victim from behind and forced him at gunpoint into the residence. After zip-tying the victim’s hands, Linares, Austin, and Allen questioned the victim about the location of drugs and drug proceeds. The robbers thought the victim was in possession of heroin imported from Guatemala or proceeds from heroin sales. Linares, Austin, and Allen each had a handgun and threatened to kill the victim if he did not produce the drugs or drug proceeds. While questioning the victim, Allen brandished his gun. When the victim claimed that he did not have drugs or drug proceeds, Linares placed a knife to the victim’s neck and Allen struck the victim in the head with a handgun. Allen also heated a metal spoon and placed the hot spoon on the victim’s wrists, demanding the victim tell them the location of the drugs and money.
Linares and his co-conspirators move the victim to the basement where Austin secured the victim’s feet with plastic zip ties. Allen again heated a metal spoon and placed the hot spoon on the victim’s hands and face, while Linares, Austin, and Allen continued to demand that the victim tell them the location of the drugs and money. The victim finally told Linares and his co-conspirators that his American friend had the drugs and money and the robbers allowed the victim to call his friend, who was, in fact, a Special Agent with Homeland Security Investigations. The victim arranged to meet with the agent and told Austin and his co-conspirators that his friend would have approximately 10 kilograms of heroin.
Linares and Allen instructed the victim to drive them to the meeting location in Beltsville, Maryland. Linares told the victim that Austin would remain at the victim’s home to wait for the victim’s family and that Austin would harm the victim’s family if the victim did not comply with their instructions. Austin later met up with Linares, Allen, and the victim at the meeting location. Once the HSI agent arrived, the victim met the agent and told him that Linares and his co-conspirators were going to kill him. As the HSI agent and the victim left, Allen got out of the car and brandished his gun. Linares entered another vehicle and pursued the agent’s car until he was stopped by Prince George’s County Police officers. Meanwhile, Austin and Allen fled the meeting location in a Honda Prelude and were pursued by law enforcement. They eventually ran away and Allen was subsequently apprehended by police. Austin approached two people in a pick-up truck, brandished his gun and carjacked the truck. Austin drove away in the truck, but was shortly trapped in the area by a gate. Austin then got out of the truck and ran. Austin was later caught by police.
A subsequent search of the Honda Prelude, which was registered to Austin, recovered $5,000 in cash, a black ski mask, black hat, black pellet gun, black single strap backpack containing zip ties and white gloves, and a wallet containing Austin’s identification documents.
Shawn Delonte Allen, age 40, of Waldorf, Maryland and Evan Anthony Peek-Austin, age 39, of Landover, Maryland previously pleaded guilty to their roles in the robbery. Allen was sentenced to 150 months in prison and Peek-Austin was sentenced to 11 years in prison.
United States Attorney Rod J. Rosenstein praised HSI Baltimore and the Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Kelly O. Hayes and Daniel C. Gardner, who prosecuted the case.
Sykesville Business Owner Pleads Guilty to $11 Million Fraud SchemeRead the Press Release
Baltimore, Maryland – Rolf Ramelmeier, age 78, of Sykesville, Maryland pleaded guilty today to mail fraud and money laundering in connection with a scheme to defraud Northrop Grumman Corporation of more than $11 million.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Acting Special Agent in Charge Scott Hinckley of the Federal Bureau of Investigation.
According to Ramelmeier’s plea agreement, he owned and operated JADM. Inc., which was in the business of selling or brokering natural gas sales, out of his residence. Ramelmeier exercised complete control and authority over the company. JADM’s sole client for many years was the Northrop Grumman Corporation. JADM supplied natural gas to several Northrop Grumman Corporation facilities that were located in Linthicum, Maryland. Ramelmeier obtained the gas from a supplier, such as UGI Energy Services (UGI) or Potomac Electric Power Company (PEPCO) and Baltimore Gas and Electric Company (BG&E) transported the gas from UGI or PEPCO to the Northrop Grumman facilities. JADM would then issue monthly invoices to Northrop Grumman which specified the units, known as “decatherms,” of gas delivered and the cost per decatherm. In turn, Northrop Grumman would issue payment to JADM on the invoices.
Ramelmeier admitted that beginning in at least 2003 and continuing until December 2013, he engaged in a scheme to defraud Northrop Grumman by overcharging for the amount of natural gas delivered to the Linthicum facilities. Ramelmeier executed and concealed this scheme by, among other things, falsifying invoices and other documents and by using a false corporate identity and bank accounts that he maintained in the names of shell entities.
Specifically, Ramelmeier represented himself as a gas broker and led the UGI or PEPCO personnel to believe that their company was entering into a sales contract directly with Northrop Grumman when, in fact, Northrop Grumman had no knowledge of these agreements. Under the agreements, UGI and PEPCO were required to submit their invoices to Northrop Grumman by mailing them to a post office box in Roanoke Rapids, North Carolina and by e-mailing a copy of each invoice to Ramelmeier at JADM. In fact, Northrop Grumman had no such post office box. Rather, at Ramelmeier’s direction, an associate opened that post office box using the name “Northrup Sensors.” The associate regularly retrieved the mail from the post office box, including the invoices from PEPCO and UGI, and forwarded that mail to Ramelmeier. Ramelmeier created invoices on JADM letterhead which charged the real Northrop Grumman for more than the amount of natural gas that UGI or PEPCO had invoiced. Northrop Grumman then paid JADM on the inflated JADM invoices, first by check and then, in more recent years, by wire transfer to JADM’s bank account.
Ramelmeier transferred those Northrop Grumman payments from the JADM account into a bank account that he held in the name of Consolidated Fuel Atlantic (Consolidated), a shell company with no assets or business. Ramelmeier then transferred all or most of the funds out of the Consolidated bank account and into an account Ramelmeier had opened in the name of Northrop Group Sensor Division (NGS Div.) with an address at the post office box in Roanoke Rapids. Ramelmeier used NGS Div. checks to pay UGI or PEPCO for the amount of their original invoices, deceiving those companies into believing that they were being paid by Northrop Grumman. Ramelmeier kept the difference between the original amount invoiced by UGI and PEPCO and the amount that Northrop Grumman paid based on JADM’s inflated invoice, for his own personal use and benefit.
As a result of the fraudulent scheme Ramelmeier caused Northrop Grumman to pay him at least $11,238,519 for natural gas that was never actually provided.
In December 2013, Northrop Grumman noticed some unusual charges by JADM for natural gas purportedly used at one of the Linthicum locations, which Ramelmeier falsely claimed was a JADM billing error. Ramelmeier offered to credit Northrop Grumman for the overcharge. Suspicious of Ramelmeier’s explanation, Northrop Grumman hired a consulting firm to conduct an analysis to determine if there had been any other overcharges. The consulting firm compared the amount of gas delivered, per JADM’s invoices, to the amount of gas delivered, per BG&E’s records. That analysis revealed that JADM routinely charged Northrop Grumman and specifically, that between 2003 and 2013 JADM overcharged Northrop Grumman by $11,238,519.
On May 16, 2014, Northrop Grumman representatives confronted Ramelmeier about the $11 million in overcharges. Ramelmeier falsely claimed, among other things that the billing errors occurred because corrupt employees doing the billing for JADM had engaged in embezzlement, when in fact, JADM had no employees; and that he could not provide Northrop Grumman with his billing records because his company computer files were corrupted.
On May 19, 2014, the first business day following his confrontation with the Northrop Grumman representatives, Ramelemeier used $82,626.54 of the fraud proceeds to pay off the entire mortgage balance on his residence, and the next day the post office box in Roanoke Rapids was closed.
Ramelmeier faces a maximum sentence of 20 years in prison each for mail fraud and for money laundering. U.S. District Judge J. Frederick Motz has scheduled sentencing for November 2, 2015 at 10:00 a.m.
United States Attorney Rod J. Rosenstein commended the FBI for its work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Kathleen O. Gavin, who is prosecuting the case.
Sex Trafficker of Teen Girls Sentenced to over 12 Years in PrisonRead the Press Release
FRESNO, Calif. — Michael Anthony Andrade, 34, of Fresno, was sentenced today by Senior United States District Judge Anthony W. Ishii to 12 years and seven months in prison for sex trafficking of a minor, United States Attorney Benjamin B. Wagner announced. Andrade’s co-defendant Javier Solis is scheduled to be sentenced August 24, 2015.
According to court documents, Andrade and Solis forced two girls, ages 15 and 17, to perform sex acts for money first in Fresno and then in San Luis Obispo. In addition, the 15‑year-old girl was taken to a tattoo parlor in Fresno where the defendants’ nicknames were tattooed on her, one name on each shoulder.
Court documents further reflect the 17-year-old, a runaway, spoke with Fresno Police officers on October 24, 2013, after her mother brought her home from San Luis Obispo. While being interviewed, she told officers about the 15-year-old who was still in San Luis Obispo under the control of the defendants as well as the motel where she was staying. In response, the San Luis Obispo Police Department was contacted, and officers were able to successfully remove her from that location.
“Collaboration, such as occurred here between federal, state, and local agencies, is the key to stopping human trafficking networks. We are pleased with the guilty pleas and the message that this tough sentence sends to anyone involved in sex trafficking of minors. We will continue to be vigilant to seek out and take down the perpetrators of human trafficking by using the collaboration of our anti-human trafficking task force,” stated Dan Dow, San Luis Obispo County District Attorney.
This case is the product of an investigation by the Federal Bureau of Investigation, the Fresno Police Department, the San Luis Obispo Police Department and the San Luis Obispo District Attorney’s Office. Assistant United States Attorneys Michael Frye and Mia Giacomazzi are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about Internet safety education.
San Antonio Duo Arrested in Connection with Sex Trafficking of a Minor SchemeRead the Press Release
In San Antonio this morning, FBI agents arrested 25–year-old Valentin Renko and 31–year-old Karen Lee in connection with a sex trafficking of a minor scheme announced United States Attorney Richard L. Durbin, Jr., and Special Agent in Charge Christopher Combs of the FBI’s San Antonio Division.
A federal criminal complaint unsealed today charges Renko and Lee with one count of conspiracy to engage in sex trafficking of a minor and one count of production of child pornography.
According to the criminal complaint, on or about July 1, 2015, Renko provided methamphetamine to Lee and a 12-year-old female, who had been reported missing to the Kirby Police Department. Renko, Lee and the minor subsequently smoked the methamphetamine. Furthermore, Renko and Lee discussed and planned ways of providing the minor female to adult males for sexual purposes in exchange for money. Lee, subsequently, took digital photos of Renko engaged in sexually explicit conduct with the minor female. The complaint also alleges that Lee insisted the minor female make money in order to continue to reside with Lee and encouraged the victim to make dates with males using a social networking website. During those dates, between July 2 and July 6, 2015, the victim engaged in sexual activity in exchange for U.S. currency and/or narcotics.
Both defendants remain in federal custody. Upon conviction, the defendants face between ten years and life in federal prison on the sex trafficking of a minor charge and between 15 years and 30 years in federal prison for production of child pornography charge.
It is important to note that a criminal complaint is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
This case resulted from a South Texas Officers and Prosecutors Human Trafficking Task Force (STOP HTTF) investigation led by the FBI together with the Texas Department of Public Safety and the Kirby Police Department. Assistant United States Attorney Bettina Richardson is prosecuting this case on behalf of the Government.
Sagle Man Pleads Guilty to Violating Sex Offender Registration and Notification ActRead the Press Release
COEUR D'ALENE - Jeremy Arthur Bolish, 48, of Missoula, Montana, pleaded guilty today to failure to register as a convicted sex offender , U.S. Attorney Wendy J. Olson announced. Bolish was indicted by a federal grand jury in Coeur d'Alene on May 19, 2015.
According to the plea agreement, in April 2008, Bolish was convicted of sexual intercourse without consent in Montana. Because of this crime, Bolish was required to register and update his registration pursuant to the Sex Offender Registration and Notification Act (SORNA). Bolish admitted that by August 2014, he moved from Montana to Idaho and did not register or update his sex offender registration as required by SORNA. Bolish was arrested in May 2015, and has been in federal custody since.
The charge of failure to register as a convicted sex offender is punishable by up to ten years in prison, a maximum fine of $250,000, and a term of supervised release of not less than five years and up to life.
Sentencing is set for November 16, 2015, before Senior U.S. District Judge Edward J. Lodge at the federal courthouse in Coeur d'Alene.
The case was investigated by U.S. Marshals Service and the Kootenai County Prosecutor’s Office.
Jeremy Arthur Bolish was prosecuted for a violation of the Sex Offender Registration and Notification Act (SORNA) passed by Congress in 2006. The Act requires sex offenders to register and keep their registration current in each jurisdiction where they reside. Violations of SORNA can be prosecuted in federal court.
Rio Rancho Man Pleads Guilty to Violating Federal Firearms LawsRead the Press Release
ALBUQUERQUE – Trevor Bianchini, 24, of Rio Rancho, N.M., pleaded guilty today in federal court in Albuquerque, N.M., to violating the federal firearms laws. The guilty plea was entered without the benefit of a plea agreement.
Bianchini was arrested in March 2015, on a two-count indictment charging him with (1) being a felon in possession of firearms and ammunition, and (2) possession of body armor by a person who had been convicted of a felony violent crime offense. According to the indictment, Bianchini committed the offenses on May 24, 2014, in Bernalillo County, N.M. At the time, Bianchini was prohibited from possessing firearms, ammunition, or body armor because he previously had been convicted of burglary of a vehicle, conspiracy to commit burglary of a vehicle, and two counts of residential burglary.
During today’s proceedings, Bianchini pled guilty to both counts of the indictment. At sentencing, he faces a statutory maximum of ten years in prison for being a felon in possession of firearms and ammunition, and a maximum of three years in prison for being a felon in possession of body armor. Bianchini remains detained pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Albuquerque office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Albuquerque Police Department. Assistant U.S. Attorney Jacob Wishard is prosecuting the case.
Randolph County man convicted for role in manufacturing methamphetamineRead the Press Release
CLARKSBURG, WEST VIRGINIA – Vincent Paul Gibson, 29, of Coalton, West Virginia, was convicted today for his role in manufacturing methamphetamine, United States Attorney William J. Ihlenfeld, II, announced.
Gibson was discovered in Randolph County, West Virginia, in possession of materials commonly used to manufacture methamphetamine. Those materials included plastic bottles, batteries, rubber tubing, empty packages of medication containing pseudoephedrine, coffee filters, drain cleaner, mason jars, and instant ice compresses.
Gibson pled guilty today to one count of “Possession of Material used in the Manufacture of Methamphetamine.” He faces up to four years in prison and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen Warner prosecuted the case on behalf of the government. The Mountain Region Drug and Violent Crime Task Force investigated.
U.S. Magistrate Judge John S. Kaull presided.
Raleigh Real Estate Developer Sentenced to 30 Months in Prison for His Role in Mortgage Fraud SchemeRead the Press Release
RALEIGH – United States Attorney Thomas G. Walker announced that in federal court today before Chief United States District Judge James C. Dever, III, HOWARD GOLDSMITH, 41, of Raleigh, was sentenced to a 30 month term of imprisonment, and followed by 3 years of supervised release, on a charge of Conspiracy to Commit Wire and Bank Fraud. GOLDSMITH was also ordered to pay $808,025 in restitution and to forfeit $1,050,400.50 and 9 properties located in Wake and Durham counties.
Count One of the Criminal Information charged that between August of 2006 and February of 2009, GOLDSMITH and his conspirators carried out a fraud upon various banks and lenders using entities GOLDSMITH owned or controlled, including Ganyard Farm Construction and Baldwin Estates. After developing various properties through Ganyard Farm Construction and Baldwin Estates, GOLDSMITH and others fraudulently supplied down payment funds to unqualified buyers on numerous loans. The fraudulent down payments were not identified on the HUD-1 Settlement Statements that were supplied to the lenders at the time of closing. GOLDSMITH and others also paid kickbacks to various individuals who assisted in orchestrating the transactions.
Investigation of this case was conducted by the Internal Revenue Service - Criminal Investigation, the Federal Bureau of Investigation, and the United States Department of Housing and Urban Development Office of the Inspector General, with the assistance of the Raleigh Police Department. Assistant United States Attorney William M. Gilmore represented the United States.
Pocatello Man arrested for Using Interstate Communication to Hire Someone to Harm His Ex-WifeRead the Press Release
POCATELLO - John Kent Davis, 65, of Pocatello, Idaho, was arraigned today by United States Magistrate Judge Larry M. Boyle on charges of interstate communication of a threat of bodily injury, U.S. Attorney Wendy J. Olson announced. A federal complaint was filed in United States District Court on August 13, 2015. Davis was arrested at his home on August 17, 2015, in Pocatello without incident.
The complaint alleges that on July 29 and August 3, 2015, the defendant used a form of interstate communication to try and hire someone to harm his ex-wife. The individual the defendant hired was actually an undercover FBI agent. The defendant met with the undercover agent telephonically and in person and paid money to the undercover agent while directing the undercover agent to where his ex-wife lived in northern Idaho, and telling him how badly he wanted her hurt.
The case is being investigated by Federal Bureau of Investigation (FBI) and North Idaho Violent Crimes Task Force (NIVCTF).
A complaint is a means of charging a person with criminal activity. It is not evidence. The person is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The maximum penalty, upon conviction, for charges of interstate communication of a threat of bodily injury is up to five years imprison, and a $250,000 fine.
Palm Bay Man Sentenced to 30 Years for Internet Solicitation of A MinorRead the Press Release
Orlando, Florida – Senior U.S. District Judge John Antoon, II has sentenced Jean Roussel Eloi (30, Palm Bay) to 30 years in federal prison for Internet solicitation of a minor. The court also ordered Eloi to forfeit a cell phone that he had used as part of the offense. A federal jury found him guilty on February 3, 2015.
According to testimony presented at trial, on the night of July 20, 2014, Eloi started an online chat session with an 11-year-old girl who lived in Palm Bay. The next day, the girl reported the chats to her mother. After the mother contacted law enforcement, an undercover detective began engaging in a series of chats with Eloi, who explicitly detailed the sexual acts he wanted to perform with the “girl.” Eloi eventually asked the “girl” to meet him. When he arrived at the prearranged location, deputies arrested him.
According to evidence presented during the sentencing hearing, in 2006, Eloi admitted to and was charged with having sex with a 13-year-old girl in Palm Beach County.
Brevard County Sheriff Wayne Ivey stated, "I applaud this partnership and the agencies involved who stand between our most defenseless citizens and those who wish to harm them. Through their outstanding efforts, an individual who actively participated in the exploitation of our children has been removed from our communities.”
"This sentencing emphasizes that child exploitation is one of the most heinous crimes we investigate," said Susan L. McCormick, special agent in charge of HSI Tampa. "We will continue to work tirelessly to protect our children."
This case was investigated by the Brevard County Sheriff’s Office - U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Task Force, This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Owner of Three Los Angeles Clinics Pleads Guilty to $4.5 Million Medicare Fraud SchemeRead the Press Release
The owner and operator of three medical clinics located in Los Angeles pleaded guilty today to submitting more than $4.5 million in fraudulent claims to Medicare.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Eileen M. Decker of the Central District of California, Acting Special Agent in Charge Steve Ryan of the U.S. Department of Health and Human Services’ Office of Inspector General of the (HHS-OIG) Los Angeles Region and Assistant Director in Charge David Bowdich of the FBI’s Los Angeles Division made the announcement.
Hovik Simitian, 48, of Los Angeles, pleaded guilty before U.S. District Court Judge Beverly Reid O’Connell of the Central District of California to one count of conspiracy to commit health care fraud. Sentencing has been scheduled for Nov. 16, 2015.
Simitian owned and operated three medical clinics that were located in the Los Angeles area: Columbia Medical Group Inc., Life Care Medical Clinic and Safe Health Medical Clinic. In connection with his guilty plea, Simitian admitted that, from approximately February 2010 through June 2014, he and his co-conspirators paid cash kickbacks to patient recruiters who brought Medicare beneficiaries to the clinics. Simitian also admitted that he and his co-conspirators billed Medicare for lab tests and other services that either were not medically necessary or were not actually provided to the Medicare beneficiaries, and that, to support the bills to Medicare, he and others created false documentation reflecting that the services had been provided.
Simitian further admitted that, between February 2010 and June 2014, he and his co-conspirators submitted approximately $4,526,791 in false and fraudulent claims to Medicare.Medicare paid approximately $1,668,559 of those claims.
The case was investigated by the FBI and HHS-OIG, and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Central District of California. This case is being prosecuted by Trial Attorneys Blanca Quintero and Alexander F. Porter of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged over 2,300 defendants who collectively have billed the Medicare program for over $7 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Simitian Plea Agreement
Northeastern University to Pay $2.7 Million for Failing to Account for Federal Research FundsRead the Press Release
BOSTON – The United States reached a settlement today with Northeastern University resolving allegations that, over a period of nine years, Northeastern failed to properly account for federal research funds that it received from the National Science Foundation (NSF). NSF awarded the funds to support high-energy particle physics research under the direction of Stephen Reucroft, formerly a Northeastern physics professor, at the European Organization for Nuclear Research (CERN) in Geneva, Switzerland.
According to the settlement agreement, Northeastern University agreed to pay $2.7 million and to submit to a five-year compliance agreement to ensure that proper oversight and safeguards are in place for future research awards.
“Universities that receive federal research funds have a duty to ensure that their researchers use those funds only for their intended purposes,” said United States Attorney Carmen M. Ortiz. “In this matter, Northeastern failed to adequately safeguard National Science Foundation grant money that had been awarded for the sole purpose of supporting important scientific research.”
Allison Lerner, Inspector General of the National Science Foundation, said, “Recipients of government funds to support scientific research have both a financial responsibility and a public trust responsibility. In this case, Northeastern failed to protect the government’s interest and lacked adequate control over a researcher’s ability to spend millions of taxpayer dollars. I commend the U.S. Attorney’s Office for this settlement agreement, which will recover $2.7 million for the U.S. Treasury.”
The federal government’s grant regulations require universities to exercise control and oversight over the NSF award funds they receive. Among other things, a recipient of NSF award funds must have documentation of salary payments, purchases of equipment, travel, expenses, and all other items charged to the awards. The regulations limit cash advances to the recipient’s immediate cash needs. Additionally, the regulations require universities to notify NSF of any significant problems relating to financial management of the awards.
The United States alleged that, from 2001 to 2010, Northeastern repeatedly violated these requirements by approving and disbursing numerous advances and other payments of NSF award funds to accounts that Professor Reucroft controlled at CERN without proper justification or requisite verification. Northeastern also failed, for more than two years, to notify NSF when it discovered significant problems with the accounting for award funds paid and knew that at least some of the funds were used to pay Professor Reucroft’s personal expenses.
U.S. Attorney Ortiz and Inspector General Lerner, made the announcement today. This matter was handled by Assistant U.S. Attorney Anita Johnson of Ortiz’s Civil Division.
North Pole Man Indicted on Postal Embezzlement ChargesRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced that the federal Grand Jury has indicted a North Pole man on a charge of theft of mail for embezzling prescription drugs from the United States Mail.
James H. Dzimitrowicz, Jr., 47, of North Pole, was indicted for taking packages out of the mail while employed at the Fairbanks main post office as a mail clerk. The packages are alleged to have contained prescription drugs being sent from pharmacies to patients in the Fairbanks area who had been prescribed those medications. The Indictment alleges the embezzlement continued from 2011 to 2014.
Dzimitrowicz is set to be arraigned on the charge on August 27, in the U. S. District Court in Fairbanks. An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Ms. Loeffler commends the U. S. Postal Service Office of Inspector General for the investigation of this case.
North Miami Brothers Sentenced to Four Years in Prison for Identity Theft Tax Fraud Scheme Involving Students and Other Individuals’ Personal Identifying InformationRead the Press Release
Two North Miami brothers were sentenced for an identity theft tax fraud scheme involving students and other individuals’ personal identifying information. Rigo Octavio Lopez, 25, and Luis Daniel Lopez Morales, 19, were each sentenced to 48 months in prison, followed by three years of supervised release, and were ordered to pay restitution in the amount of $49,902.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Neil Melofchik, Acting Special Agent in Charge, U.S. Secret Service (USSS), Miami Field Office, made the announcement.
Each defendant previously pled guilty to one count of using one or more unauthorized access devices, in violation of Title 18, United States Code, Section 1029(a)(2), and one count of aggravated identify theft, in violation of Title l8, United States Code, Section 1028A(a)(1).
According to court documents, between January 31, 2014 and July 8, 2014, a total of 494 fraudulent income tax returns for tax year 2013 were filed with the IRS from the defendants’ home in North Miami. The fraudulent returns claimed approximately $237,092 in tax refunds. The IRS paid out approximately $49,902 for the fraudulent returns.
On February 11, 2015, a federal search warrant was executed at the home of Lopez and Lopez Morales. Federal agents recovered dozens of items containing personal identifying information (PII), including handwritten ledgers with account and PIN numbers, handwritten documents with names and dollar amounts, numerous pre-paid debit cards, lists from the Florida Department of Motor Vehicles, and printouts of “Student Information” from the Miami-Dade Public School system. The school printouts contained the names, dates of birth, and social security numbers of current or former Miami-Dade students. Some of the PII listed in the printouts corresponded with fraudulent income tax returns that had been filed from the defendants’ residence.
Both Lopez and Lopez Morales admitted to law enforcement that they filed fraudulent income tax returns from their home.
Mr. Ferrer commended the investigative efforts of IRS-CI and the USSS. The case is being prosecuted by Assistant U.S. Attorneys Daya Nathan and Brooke C. Watson.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov
North Attleboro Woman Sentenced for Stealing Benefits from Disabled ManRead the Press Release
BOSTON – A North Attleboro woman was sentenced today for stealing $32,439 in government benefits from a disabled man whose financial affairs she was managing.
Wendy Mairle, 49, was sentenced by U.S. District Court Senior Judge Mark L. Wolf to 24 months of probation, with the first six months to be served in home confinement, and ordered to pay restitution of $32,439. In April 2015, Mairle pleaded guilty to converting Social Security payments.
In 2012, Mairle became the representative payee for the monthly Social Security disability payments of a man who was in full-time residential treatment at a local hospital. As a representative payee, Mairle was required to spend the Social Security payments on the man’s behalf. From May 2012 to May 2014, Mairle received $45,255 from the Social Security Administration, but she only spent $12,816 on the disabled man’s behalf and spent the remaining $32,439 on herself, including a vacation to Myrtle Beach, S.C., retail and restaurant purchases, and more than $17,000 in cash withdrawals. Meanwhile, she failed to pay most of the victim’s hospital bills, leaving him more than $20,000 in debt to the hospital.
United States Attorney Carmen M. Ortiz and Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division, made the announcement today. The case was prosecuted by Special Assistant U.S. Attorney Timothy Landry of Ortiz’s Major Crimes Unit.
New Smart on Crime Program Aids Recently Released Offenders to Reenter the CommunityRead the Press Release
The U.S. Attorney’s Office for the Middle District of Pennsylvania announced today that a unique partnership has been formed consisting of local, regional and national private business entities to aid moderate to high-risk offenders in the federal criminal justice system, who have been recently released into the community.
The U.S. District Court for the Middle District of Pennsylvania operates the Court Assisted Re-Entry (CARE) Program, which is a four-phase program designed to aid in the rehabilitation and re-integration of recently released federal inmates. The members of the program include the U.S. District Court, U.S Attorney’s Office, U.S. Probation, Federal Public Defenders Office and county volunteers.
A new partnership between ESSA Bank & Trust, Northampton Community College, Pyramid Healthcare Inc. and the CARE Program institutes a precedent setting program whereby CARE participants will team with a bank, community college and healthcare officials to help them get back on their feet.
ESSA Bank & Trust will institute a Financial Literacy Program where CARE participants will be instructed by bank officials on money management issues. In addition, it will institute a CARE Loan Program that would provide loans up to $15,000 to qualifying active CARE participants and CARE graduates for housing, education/training, or transportation. On Aug. 12, 2015, the official launch of the program, ESSA Bank & Trust announced its first loan in the amount of $13,750 for a CARE participant to purchase a car as transportation to her employment.
Northampton Community College will provide educational opportunities including a G.E.D. program and adult basic education courses.
Pyramid Healthcare Inc. will administer a drug and alcohol treatment and counseling program and perform a Level of Care Assessment for each participant entering into the CARE program.
The combined partnership of the CARE Program will assist individuals under federal supervision to successfully re-enter their communities and become responsible, self-sufficient, contributing and law-abiding citizens.
In early 2013, the Justice Department launched a comprehensive review of the criminal justice system in order to identify reforms that will ensure felony laws are enforced more fairly and more efficiently.
This review led to the Smart on Crime initiative announced by Attorney General Eric Holder in August 2013, which maps a way forward for meeting our criminal justice challenges, including bolstering prevention and reentry efforts to deter crime and reduce recidivism. The new CARE partnership with ESSA Bank & Trust, Northampton Community College and Pyramid Healthcare is a step forward in the “Smart on Crime” initiative and reinforces the Justice Department’s commitment to making the criminal justice system work more efficiently.
New Smart on Crime Program Aids Recently Released Offenders to Reenter the CommunityRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a unique partnership has been formed consisting of local, regional, and national private business entities to aid moderate to high-risk offenders in the federal criminal justice system, who have been recently released into the community.
The U.S. District Court for the Middle District of Pennsylvania operates the Court Assisted Re-Entry (CARE) Program, which is a four-phase program designed to aid in the rehabilitation and re-integration of recently released federal inmates. The members of the program include the U.S. District Court, U.S Attorney’s Office, U.S. Probation, Federal Public Defenders Office, and county volunteers.
A new partnership between ESSA Bank & Trust, Northampton Community College, Pyramid Healthcare, Inc., and the CARE Program institutes a precedent setting program whereby CARE participants will team with a bank, community college and healthcare officials to help them get back on their feet.
ESSA Bank & Trust will institute a Financial Literacy Program (FLP) where CARE participants will be instructed by bank officials on money management issues. In addition, it will institute a CARE Loan Program that would provide loans up to $15,000 to qualifying active CARE participants and CARE graduates for housing, education/training, or transportation. On August 12, 2015, the official launch of the program, ESSA Bank & Trust announced its first loan in the amount of $13,750 for a CARE participant to purchase a car as transportation to her employment.
Northampton Community College will provide educational opportunities including a G.E.D. program and adult basic education courses.
Pyramid Healthcare, Inc. will administer a drug and alcohol treatment and counseling program and perform a Level of Care Assessment for each participant entering into the CARE program.
The combined partnership of the CARE Program will assist individuals under federal supervision to successfully re-enter their communities and become responsible, self-sufficient, contributing, and law-abiding citizens.
In early 2013, the Justice Department launched a comprehensive review of the criminal justice system in order to identify reforms that will ensure felony laws are enforced more fairly and more efficiently.
This review led to the “Smart on Crime” initiative announced by Attorney General Eric Holder in August 2013, which maps a way forward for meeting our criminal justice challenges, including bolstering prevention and reentry efforts to deter crime and reduce recidivism. The new CARE partnership with ESSA Bank & Trust, Northampton Community College and Pyramid Healthcare is a step forward in the “Smart on Crime” initiative and reinforces the Department’s commitment to making the criminal justice system work more efficiently.
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New Jersey Men Sentenced for Production of Child PornographyRead the Press Release
PHILADELPHIA - Burton Gersh, 69, and Les Sidweber, 73, both of Cherry Hill, NJ, were sentenced today for production of child pornography. U.S. District Court Judge Paul S. Diamond sentenced Gersh to 60 months in prison and Sidweber to 48 months in prison. The defendants pleaded guilty on May 19, 2015.
According to court documents, Gersh and Sidweber transported two minors, ages 16 and 17, from the Philadelphia area, on multiple occasions, to their homes in Cherry Hill, NJ, where both men photographed the juveniles engaging in sexually explicit conduct. Minor 1 was orphaned and had been living in the Philadelphia foster care system when a man approached her and asked asked her if she would like to go to a fancy house in Cherry Hill, New Jersey in order to have photographs taken that could be used to launch a modeling career. He eventually took Minor 1 to Gersh’s home, and she brought along her 16 year-old friend, Minor 2, whom she knew from foster care. The defendant plied the minors with alcohol and promises of a modeling career if they would pose for a photo shoot. He enlisted the help of Sidweber, a hobbyist photographer, and both defendants took provocative pictures of the two girls.
In addition to the prison term, Gersh must serve seven years of supervised release, pay a $150,000 fine and a $200 special assessment; Sidweber must serve five years of supervised release, pay a $50,000 fine and a $200 special assessment.
The case was investigated by the Federal Bureau of Investigation with assistance from the Cherry Hill, New Jersey Police Department and was prosecuted by Assistant United States Attorney Michelle Morgan.
Middleburg Heights man charged with tax fraud conspiracyRead the Press Release
A Middleburg Heights man was charged with operating a tax fraud conspiracy in which he and others knowingly and willingly prepared and filed dozens of inflated tax returns, sometimes in return for cash kickbacks, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio, and Kathy Enstrom, IRS-Criminal Investigation Special Agent in Charge.
Towhidul Hussain, 36, was charged via criminal information with one count of conspiracy to defraud the United States and three counts related to assisting with the preparation of false tax returns.
Hussain operated a tax-preparation business operating as Liberty Tax at 6410 Harvard Ave. in Cleveland. His business operated through a franchise agreement with Liberty Tax Services, and Hussain had no training or experience in tax return preparation before buying the franchise, according to the information.
Hussain hired a woman identified in the charges as Co-Conspirator 1 to help with daily operation of the business. She showed Hussain how to add false information to tax returns to artificially inflate his clients’ tax refunds, including false medical expenses, false education credits and other false deductions. This took place between 2011 and 2014, according to the information.
Hussain and his co-worker directed some clients to take their tax refund checks to a neighborhood check-cashing store. Once the check was cashed, Hussain and the co-worker received a portion of the refund as payment. In 2012, Hussain received more than $20,000 in kickbacks from clients who received artificially inflated tax returns, according to the information.
This case is being prosecuted by Assistant U.S. Attorney Adam Hollingsworth following an investigation by IRS-Criminal Investigations.
If convicted, the defendant’s sentence will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendant’s prior criminal record (if any), the defendant’s role in the offense and the characteristics of the violation.
A charge is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Mexican National Sentenced to 20 Years for Meth ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that an Independence, Mo., man was sentenced in federal court today for his role in a drug-trafficking conspiracy that smuggled methamphetamine from Mexico to the Kansas City, Mo., area.
Marcelino Ruiz-Reyes, 37, a citizen of Mexico residing in Independence, was sentenced by U.S. District Judge Fernando J. Gaitan to 20 years and eight months in federal prison without parole.
On Aug. 13, 2014, Ruiz-Reyes pleaded guilty to participating in a conspiracy to distribute methamphetamine, to possessing a firearm in furtherance of a drug-trafficking crime, and to participating in a money-laundering conspiracy.
Ruiz-Reyes is among nine co-defendants charged in a May 2, 2013, federal indictment. Ruiz-Reyes admitted that he participated in the drug-trafficking and money-laundering conspiracies from Jan. 1 to Dec. 4, 2012. Ruiz-Reyes also admitted that the amount of methamphetamine distributed during this conspiracy is 1.5 kilograms or more.
Ruiz-Reyes ordered methamphetamine from a co-conspirator in Sinaloa, Mexico. The drugs were delivered via a tractor trailer driven by co-defendant Gerardo Millan-Sanchez, 56, of San Jose, Calif. Ruiz-Reyes then provided Millan-Sanchez with bulk cash to be paid to his Mexican contact upon his return. Ruiz-Reyes then utilized other co-conspirators to distribute the methamphetamine to numerous customers within the Kansas City metro and surrounding areas. Millan-Sanchez has pleaded guilty and awaits sentencing.
Ruiz-Reyes admitted that he arranged for co-conspirators to bury 3.5 kilograms of methamphetamine on the grounds of his residence. A couple of weeks later, upon learning the methamphetamine had been stolen, he and co-defendant Jaime Reyes-Orosco, also known as “Jaimito,” 31, of Kansas City, Mo., aiding and abetting each other, possessed a Tanfoglio 9mm handgun with the intent to locate and intimidate an unknown subject in retaliation for the theft of the methamphetamine. Reyes-Orosco has pleaded guilty and awaits sentencing.
This case is being prosecuted by Assistant U.S. Attorney Catherine Connelly. It was investigated by Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).
Mexican Citizen Sentenced for Possession of Child PornographyRead the Press Release
CORPUS CHRISTI, Texas – A Mexican citizen residing in Aransas Pass has been ordered to prison following his conviction of possessing child pornography, announced U.S. Attorney Kenneth Magidson. Jose Fernando Cardenas-Lira, 52, pleaded guilty to the charges in May 2015.
Today, U.S. District Judge Hayden Head ordered he serve an 84-month prison sentence to be followed by 10 years of supervised release. In handing down the sentence, Judge Head stated that “children deserve to be provide protection of the law and this sentence is intended to do just that.
Cardenas-Lira came to the attention of law enforcement after agents used peer-to-peer software and were able to successfully download various files containing child pornography from an IP address that was associated with Cardenas-Lira. Agents initiated surveillance on his residence and followed him to the North Beach area in Corpus Christi. Agents then watched as Cardenas-Lira sat inside his vehicle for more than three hours appearing to be watching families on and around the beach. On several occasions, Cardenas-Lira raised a camera and appeared to be photographing children and families.
In August 2013, agents executed a search warrant at his residence, at which time they seized various electronic devices. Forensic analysis on those devices revealed more than 90 videos of child pornography.
Cardenas-Lira will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The charges against Cardenas-Lira were the result of an investigation conducted by Homeland Security Investigations with the assistance of the Corpus Christi Police Department-Internet Crimes Against Children Task Force.
This case, prosecuted by Assistant U.S. Attorney Hugo R. Martinez, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Metairie Man Charged with Trafficking of Counterfeit GoodsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that BOUBACAR DIALLO, age 35, of Metairie, was charged in a one-count Bill of Information with trafficking in counterfeit goods.
According to the Bill of Information, on March 12, 2015, DIALLO trafficked and attempted to traffic in a variety of counterfeit goods, including approximately 111 pairs of “True Religion” blue jeans, 166 “Michael Kors” purses, 67 “Michael Kors” pocketbooks, 87 “Michael Kors” watches, 6 pair of “Nike” tennis shoes, 9 pair of “Polo” pants, and 8 pair of “Polo” shirts.
If convicted, DIALLO faces a maximum term of imprisonment of not more than ten years, followed by up to three years of supervised release, 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 Louisiana Department of Justice / Office of the Attorney General Investigation Division and Immigration and Customs Enforcement, Homeland Security Investigations in investigating this matter. Assistant United States Attorney Jordan Ginsberg is in charge of the prosecution.
Media AdvisoryRead the Press Release
WHO:
U.S. Attorney George L. Beck, Jr.; Alabama Attorney General Luther Strange;
Drug Enforcement Administration (DEA) ASAC Clay Morris; Alcohol, Tobacco,
Firearms, and Explosives (ATF) RAC William Bass; Chief Deputy U.S. Marshal
Thomas Hession; Montgomery County District Attorney Daryl Bailey;
Montgomery County Sheriff Derrick Cunningham; Montgomery Public Safety
Director Christopher Murphy; Montgomery Police Chief Ernest Finley; and
Prattville Police Chief Mark Thompson.
WHAT:
Joint Press Conference to announce numerous arrests.
WHEN:
Tuesday, August 18, 2015 at 2:30 p.m. (CDT)
WHERE:
U.S. Attorney’s Office, 131 Clayton Street, Montgomery, Alabama 36104
NOTE:
All media members must have credentials and a government issued photo ID.
Please arrive at least 20 minutes before the scheduled conference start time. A
press release and interview opportunities will be available at the end of the press
conference.
Man Charged in District Court with Firearm OffensesRead the Press Release
NEWS RELEASE
FOR IMMEDIATE RELEASE
Tuesday, August 18, 2015
Man Charged in District Court with Firearm Offenses
St. Thomas, USVI – Tashimo Scatliffe, 33, made his initial appearance in District Court Tuesday before U.S. Magistrate Judge Ruth Miller after being charged with two counts of Possession of a Firearm with an Obliterated Serial Number, two counts of Possession of a Firearm by a Convicted Felon, Possession of Ammunition by a Convicted Felon, Possession of an Unlicensed Firearm and Reckless Endangerment, United States Attorney Ronald W. Sharpe announced. Scatliffe is in custody pending a detention hearing scheduled for August 20, 2015.
According to the Indictment, which was filed August 6, 2015 in District Court on St. Thomas, Scatliffe was found in possession of a firearm and ammunition after he was convicted in the Superior Court of first-degree assault-larceny.
Scatliffe is charged with violations of both federal and Virgin Islands law. For the federal charges, the maximum sentence for Possession of a Firearm with an Obliterated Serial Number is five years in prison and a $250,000 fine. For Possession of a Firearm by a Convicted Felon or Possession of Ammunition by a Convicted Felon, t h e m a x i m u m s e n t e n c e i s 10 years in prison and a $250,000 fine.
Under Virgin Islands law, the maximum sentence for Possession of a Firearm by a Convicted Felon is 20 years in prison and a $25,000 fine. For Possession of an Unlicensed Firearm, the maximum sentence is five years in prison and a $15,000 fine; for Reckless Endangerment, the maximum sentence isfive years in prison. For Possession of a Firearm with an Obliterated Serial Number, there is a minimum mandatory sentence of 15 years.
United States Attorney Sharpe reminds the public that an indictment is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless proven guilty.
This case is the result of a joint investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Virgin Islands Police Department. It is being prosecuted by Assistant United States Attorney Sigrid M. Tejo-Sprotte.
MEDIA ADVISORY -- Goodwin to Join State and Federal Officials at Press ConferenceRead the Press Release
CHARLESTON, W.Va. – U.S. Attorney Booth Goodwin, along with other federal and state law enforcement officials, will hold a press conference in Charleston on WEDNESDAY, AUGUST 19, 2015 at noon to discuss cases and events stemming from the investigation of the January 2014 Elk River chemical spill in Charleston.
WHO: U.S. Attorney Booth Goodwin, along with other state and federal law enforcement officials
WHAT: Press conference concerning investigation and prosecutions arising from January 2014 Elk River chemical spill in Charleston
WHERE: Robert C. Byrd U.S. Courthouse, 300 Virginia Street, East, Fifth Floor, Charleston, WV 25301
WHEN: WEDNESDAY, August 19, 2015 at noon
Lummi Tribal Member Sentenced to Prison for Being Habitual Domestic AbuserRead the Press Release
A 50-year-old enrolled member of the Lummi Tribe was sentenced today in U.S. District Court in Seattle to two years in federal prison for his assault on his estranged wife, announced U.S. Attorney Annette L. Hayes. LONNIE JESS JAMES, Sr., of Bellingham and the Lummi Reservation, was found to be a habitual offender based on three prior domestic violence assaults that were prosecuted in Lummi Tribal Court. U.S. District Judge John C. Coughenour imposed three years of supervised release to follow the prison term.
“Domestic violence destroys families and can do serious long-term damage to victims,” said U.S. Attorney Annette L. Hayes. “This defendant was prosecuted multiple times by Lummi Tribal authorities and did not get the message that he had to stop. The federal sentence imposed in this case makes clear – we will not tolerate intimate partner violence in our tribal communities.”
According to records filed in the case, JAMES was convicted in Lummi Tribal Court of assaulting his wife on March 4, 2014, September 1, 2011, and September 11, 2007. On November 14, 2014, JAMES entered the home of his estranged wife in violation of a no contact order and assaulted her. He struck her repeatedly and slammed her head against the floor. When she tried to call 9-1-1 for help, JAMES grabbed the phone and threw the victim against the wall so hard that her head made a hole in the drywall. Fortunately another person in the home intervened and stopped JAMES.
JAMES is the third person prosecuted by the office for Domestic Abuse by a Habitual Offender.
The case was investigated by the Lummi Tribal Police Department and the FBI. The case was prosecuted by Assistant United States Attorney J. Tate London.
Leader of Little Haiti Based Crack Cocaine Trafficking and Identity Theft Tax Fraud Organization Pled GuiltyRead the Press Release
A leader of a Little Haiti based drug trafficking organization and identity theft tax fraud scheme pled guilty today before Senior United States District Judge Donald L. Graham.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Hugo J. Barrera, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office, and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.
Espere Desmond Pierre, 33, of Miami, pled guilty to conspiracy to possess with intent to distribute over two hundred eighty (280) grams of crack cocaine, in violation of Title 21, United States Code, Sections 846 and 841(b)(1)(A); possession with intent to distribute over 28 grams of crack cocaine, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(B); possession of a firearm in furtherance of a drug-trafficking crime, in violation of Title 18, United States Code, Section 924(c)(1)(A); conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 1349; and aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1).
Pierre is scheduled to be sentenced in early November 2015, at a date and time to be announced shortly by the Court.
According to court documents, Pierre and co-defendant Markentz Blanc, 34, of Miami, conspired as supervisors and directors of a drug-trafficking organization that distributed cocaine base (commonly referred to as “crack” cocaine) through multiple storage and retail distribution locations in the Little Haiti area of Miami-Dade County. Pierre and Blanc also conspired to obtain the personal identifying information (including the names, dates of birth, and Social Security numbers) of various persons. Pierre and Blanc then used the unauthorized information to submit fraudulent tax returns in order to claim income tax refunds to which they were not entitled.
Earlier this year, Blanc and another co-defendant, Willis Maxi, 33, of Miami, were each convicted following a jury trial and sentenced to 300 and 312 months’ imprisonment, respectively. Five additional co-defendants – including Meluin Jermaine Braynen, 21, Wisvelt Voltaire, 33, Alex Bermudez, 26, Sanders Bermudez, 23, and Kervens Lalanne, 25, all of Miami, previously pled guilty and were sentenced to terms of imprisonment ranging from 18 to 188 months.
Through its Violence Reduction Partnership, the U.S. Attorney’s Office and its federal and local law enforcement allies have sought to dismantle the most violent criminal networks in various neighborhoods in the Southern District of Florida, while simultaneously working with community leaders and concerned citizens to mentor at-risk youth, provide job training, coordinate social services and support the reintegration of ex-offenders (returning citizens) to the community.
Mr. Ferrer thanked FBI, ATF, IRS-CI, the Miami-Dade Police Department, and the City of Miami Police Department for their work on this case. The case is being prosecuted by Assistant U.S. Attorneys Seth M. Schlessinger and Olivia S. Choe.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Lake City Man Pleads Guilty to Manufacturing and Passing Counterfeit Federal Reserve NotesRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces that James Steven Hall (47, Lake City) has pleaded guilty to manufacturing and passing counterfeit Federal Reserve notes. He faces a maximum penalty of 20 years in federal prison for each charge. A sentencing date has not yet been set. Hall was indicted on May 13, 2015.
According to court documents, in March 2015, law enforcement received information that Hall had possessed counterfeit currency inside his hotel room in Columbia County. On March 25, 2015, officers from the Columbia County Sheriff’s Office and the U.S. Secret Service went to the hotel and made contact with Hall, who allowed the officers to search his room. The search revealed counterfeit $10 and $20 bills that had been hidden between the mattress and box spring. Supplies for manufacturing counterfeit Federal Reserve notes, including a paper cutter, an ink-jet printer, blank paper, a laptop, and used ink-jet cartridges were also found in the room. Hall later admitted to manufacturing a few thousand dollars in counterfeit notes and to passing some of them at local businesses in the Lake City area.
This case was investigated by the Columbia County Sheriff’s Office and the U. S. Secret Service - Jacksonville Field Office. It is being prosecuted by Assistant United States Attorney Kevin C. Frein.
Kamiah Man Admits to Threat with GunRead the Press Release
COEUR D'ALENE - Norton Wesley Blackeagle, Jr., 33, of Kamiah, Idaho, pleaded guilty today to assault with a dangerous weapon, U.S. Attorney Wendy J. Olson announced. Blackeagle was indicted by a federal grand jury in Coeur d'Alene on March 17, 2015.
According to the plea agreement, Blackeagle admitted that on August 12, 2014, he went into a home located on the Nez Perce Indian Reservation and pointed a pistol at the male occupant of the home and threatened to shoot him.
The charge of assault with a dangerous weapon is punishable by up to 10 years in prison, a maximum fine of $250,000.00, and up to three years of supervised release.
Sentencing is set for November 16, 2015, before Senior U.S. District Judge Edward J. Lodge at the federal courthouse in Coeur d'Alene.
The case was investigated by the Federal Bureau of Investigation (FBI) and the Nez Perce Tribal Police.
Jury Convicts Laredoan of Transporting AliensRead the Press Release
LAREDO, Texas – A 35-year-old Laredo man has been convicted of transportation of illegal aliens, announced U.S. Attorney Kenneth Magidson. The jury returned its verdicts against Guadalupe Medellin Jr. following a one-day-trial and approximately 25 minutes of deliberations.
At trial, the jury heard from a witness who had been detained in connection with the case. According to him, Medellin attempted to transport four undocumented aliens in a commercial tractor truck by driving them through the U.S. Border Patrol Checkpoint on Interstate 35 north of Laredo. Upon arrival at the checkpoint, a U.S. Border Patrol canine alerted to the presence of concealed persons within the vehicle, which was not pulling a trailer.
Border Patrol agents soon discovered four undocumented aliens in the sleeper compartment of the vehicle.
During trial, Medellin attempted to convince the jury he had no involvement in the crime. The jury was not convinced and found him guilty as charged.
U.S. District Judge Marina Garcia Marmolejo, who presided over the trial, has set sentencing for Dec. 3, 2015. At that time, he faces up to 10 years in federal prison and a possible $250,000 fine. Medellin will remain in custody pending that hearing.
The charges are the result of an investigation conducted by Homeland Security Investigations with the assistance of the U.S. Border Patrol. Assistant U.S. Attorneys Jorge Vela and Christopher dos Santos are prosecuting the case.
Jury Convicts KC Man of Illegal FirearmRead 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 convicted in federal court today of illegally possessing a firearm.
Wesley Wyatt, 59, of Kansas City, was found guilty of being a felon in possession of a firearm.
Evidence introduced during the trial indicated that Wyatt was in possession of a Davis Industries .38-caliber two-shot derringer pistol on Sept. 18, 2013.
Kansas City police officers responded to a domestic violence call at Wyatt’s apartment on Sept. 18, 2013. The victim of the assault, Wyatt’s girlfriend, told officers that she and Wyatt were arguing when he pulled out a gun, pointed it at her, and said “If you don’t get out of my house I will kill you!” Wyatt was not in the residence when officers arrived, but returned a short time later and was arrested for domestic assault. A firearm was not located at that time.
While Wyatt was being held in the Kansas City detention unit, he called another person to go retrieve his gun from the mailbox. That person, instead, called Wyatt’s girlfriend, who then called the police to come retrieve the loaded gun.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Wyatt has two prior felony convictions for robbery, two prior felony convictions for distributing a controlled substance and prior felony convictions for trafficking in a controlled substance and for possessing a controlled substance.
Following the presentation of evidence, the jury in the U.S. District Court in Kansas City, Mo., deliberated for about 22 minutes before returning the guilty verdict to U.S. District Judge Gary A. Fenner, ending a trial that began Monday, Aug. 17, 2015.
Under federal statutes, Wyatt is subject to being sentenced as an armed career offender to a mandatory minimum sentence of 15 years in federal prison without parole, up to a sentence of life in federal prison without parole. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorneys Justin G. Davids and Jeffrey Q. McCarther. It was investigated by the Kansas City, Mo., Police Department.
Indictment: Crystal Meth Was Shipped FedExRead the Press Release
WICHITA, KAN. - Three people living in Wichita were indicted Tuesday on federal charges they used FedEx to smuggle a pound of crystal methamphetamine to Wichita, U.S. Barry Grissom said.
Mario Murillo-Arteaga, 20, Wichita, Kan.; Marcela Acuna-Ramirez, 30, Wichita, Kan.; and Elisa Anchondo-Loya, 25, Wichita, Kan., were charged with one count of possession with intent to distribute crystal meth.
In court documents, prosecutors alleged that on Aug. 11, 2015, agents of the Drug Enforcement Administration kept the three defendants under surveillance while FedEx delivered a parcel to an apartment at 2715 S. Topeka in Wichita. When no one answered the door, the driver left the parcel at the apartment complex office. After picking up the package, Murillo-Arteaga left in one vehicle and the two women left in another vehicle.
Police stopped the women’s car, where they found the parcel, which contained approximately a pound of crystal meth. When police stopped Murillo-Arteaga’s vehicle they found $2,000 in cash in the console. Investigators learned that the women were being paid $1,000 each to pick up the parcel for Murillo-Arteaga.
If convicted, the defendants face a penalty of not less than five years and not more than 40 years in federal prison and a fine up to $2 million. The Wichita Police Department and the DEA investigated. Special Assistant U.S. Attorney Michelle Jacobs is prosecuting.
OTHER INDICTMENTS
Anthony G. Moore, 50, Wichita, Kan., and Randy L. Perry, 54, Wichita, Kan., are charged with one count of possession with intent to distribute approximately a pound of methamphetamine. The crime is alleged to have occurred Aug. 13, 2015, in Wichita, Kan.
If convicted, they face a penalty of not less than 10 years in federal prison and a fine up to $4 million. The Wichita Police Department and the Drug Enforcement Administration investigated. Special Assistant U.S. Attorney Michelle Jacobs is prosecuting.
Miguel Concepcion, 25, Wichita, Kan., is charged with one count of counterfeiting a $970 postal money order and one count of possessing a stolen blank money order. The crimes are alleged to have occurred in October 2014 in Sedgwick County, Kan.
If convicted, he faces a maximum penalty of five years in federal prison and a fine up to $250,000 on each count. The U.S. Postal Inspection Service investigated. Assistant U.S. Attorney Aaron Smith is prosecuting.
Ismael Saldana-Vasquez, 45, a citizen of Mexico, is charged with unlawfully re-entering the United States after being deported. He was found July 30, 2015, in Sedgwick County, Kan.
If convicted, he faces a maximum penalty of two years in federal prison and a fine up to $250,000. Immigration and Custom Enforcement’s Enforcement and Removal Operations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
Luis Felipe Lopez-Vivas, 27, a citizen of Mexico, is charged with unlawfully re-entering the United States after being deported. He was found Aug. 10, 2015, in Sedgwick County, Kan.
If convicted, he faces a maximum penalty of two years in federal prison and a fine up to $250,000. Immigration and Custom Enforcement’s Enforcement and Removal Operations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
Jesus Reyes, 40, Wichita, Kan., is charged with one count of possession with intent to distribute methamphetamine and two counts of unlawful possession of a firearm following a felony conviction. The crimes are alleged to have occurred May 29, 2015 in Sedgwick County, Kan.
If convicted, he faces a maximum penalty of 20 years in federal prison and a fine up to $1 million on the drug charge, and a maximum penalty of 10 years and a fine up to $250,000 on each of the firearm charges. The Wichita Police Department investigated. Special Assistant U.S. Attorney Michelle Jacobs is prosecuting.
Maria S. Alvidrez, 30, Plains, Kan., is charged with two counts of theft of mail while she was employed as a postal worker at the post office in Kismet, Kan. The crimes are alleged to have occurred in April and May 2015.
If convicted, she faces a maximum penalty of five years in federal prison and a fine up to $250,000 on each count. The U.S. Postal Service – Office of Inspector General investigated. Assistant U.S. Attorney Alan Metzger is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.