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Thursday 18 June 2015
Street Gang Member Sentenced to 30 Years Imprisonment on Firearm and Drug ChargesRead the Press Release
LITTLE ROCK – Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, along with Gregory Gant, Special Agent in Charge of the Kansas City Field Office of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), announced today that Marcus Allen, aka “House,” age 39, of Little Rock, was sentenced to 30 years in federal prison for unlawful possession of firearms, possession with intent to distribute cocaine, crack cocaine, and methamphetamine, and possession of a firearm in furtherance of a drug trafficking crime. Allen, a multi-convicted firearm and drug felon, is a self-admitted member of the Bloods street gang.
On November 19, 2014, Allen was convicted following a three-day jury trial of the following offenses charged in the superseding indictment in Case No. 4:14-cr-00057 KGB:
• Count One: Felon in Possession of a Firearm, 18 U.S.C. § 922(g)(1)
• Count Two: Possession with Intent to Distribute Cocaine, Crack Cocaine, and Methamphetamine, 21 U.S.C. § 841(a)(1)
• Count Three: Possessing a Firearm in Connection with a Drug Trafficking Crime, 18 U.S.C. § 924(c)
At today’s sentencing hearing United States District Court Judge Kristine G. Baker found that Allen qualified as an Armed Career Criminal under 18 U.S.C. § 924(e) and a Career Offender under United States Sentencing Guideline § 4B1.1. Allen’s Guidelines range reflected that the offense involved a semiautomatic firearm capable of accepting a large capacity magazine. Allen also received sentencing enhancements because the offense involved three or more firearms and the offense involved a stolen firearm. Judge Baker then sentenced Allen to 300 months on Count One and 240 months 425 West Capitol Avenue, Suite 500 (501) 340-2600 Post Office Box 1229 Little Rock, Arkansas 72203-1229 on Count Two, to run concurrent to each other, and 60 months on Count Three, to run consecutive to Counts One and Two, for a total of 360 months or 30 years.
There is no parole in the federal system. When Allen is released upon completion of his 30 year sentence, he will serve six years of supervised release. As a result of Allen’s convictions, he also forfeited the following property seized from his home on March 6, 2014: four firearms and $3,443 in drug proceeds.
At trial, the evidence established that on March 6, 2014, law enforcement agents executed a search warrant at Allen’s residence at 7815 Burnelle, Little Rock, Arkansas. Allen had been distributing drugs from 7815 Burnelle since at least November 2013. Agents found 35.23 grams of cocaine with scales used for weighing the cocaine for later distribution in the kitchen. Agents found 1.5 grams of crack cocaine and 5.6 grams of methamphetamine packaged for distribution in Allen’s bedroom. Also in Allen’s bedroom agents found four firearms, namely, a Colt model M4 Carbine 5.56mm caliber semi-automatic rifle; a Taurus model PT92AFS 9mm semi-automatic pistol; a Norinco model MAK90 Sporter .762 caliber rifle; and a Charter Arms model Bulldog Pug .44 caliber revolver, along with ammunition. One of the firearms had been stolen from a residence in Carruthersville, Missouri, prior to Allen’s purchase of that firearm.
“Marcus Allen is a gang member and repeat offender whose main contribution to our community is a long history of drug trafficking, violence and illegal possession of firearms,” Thyer said. “Arkansas is a safer place with this individual in federal prison for the next thirty years.”
The case was prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” program—a nationwide gun-violence reduction strategy led by ATF, in cooperation with federal, state, and local law enforcement officials. The case was investigated by the ATF, the Carruthersville, Mo., Police Department, and the Pemiscot County, Mo., Sherriff’s Office.
Store Owners in Kansas City, Kan., Plead Guilty to Theft from Food Stamp ProgramRead the Press Release
KANSAS CITY, KAN. - The owners of a store in Kansas City, Kan., have pleaded guilty to defrauding a federal food stamp program, U.S. Attorney Barry Grissom said today. The fraud totaled more than $227,000.
Saima Sajjad, 39, Kansas City, Mo., pleaded guilty today to one count of wire fraud. Her husband, Sajjad S. Chaudhry, 47, Kansas City, Mo., pleaded guilty June 16 to one count of conspiracy to defraud the U.S. Department of Agriculture, one count of conspiracy to commit wire fraud, and two counts of aggravated identity theft.
In their pleas, they admitted the crimes occurred while they owned the KC Gas Mart at 2850 State Avenue in Kansas City, Kan. The store participated in a federal food stamp program called the Supplemental Nutrition Assistance Program (SNAP).
The store came under investigation in the summer of 2013 because it reported engaging in thousands of dollars of SNAP benefits transaction, many of which were large purchases. Undercover investigators working with the USDA exchanged SNAP benefits for cash at KC Gas Mart, receiving approximately 50 percent of the value of the SNAP benefits. The rules of the program prohibit approved vendors from trading cash for food stamps, accepting food stamps for ineligible items and accepting food stamps from people who are not authorized to use them.
In addition, Chaudhry admitted he used another person’s electronic benefits card to purchase food items at a Sam’s Club store in Kansas City, Kan.
The defendants are set for sentencing Aug. 25. They face the following penalties:
Conspiracy to defraud USDA: a maximum penalty of five years in federal prison and a fine up to $250,000.
Conspiracy to commit wire fraud: A maximum penalty of 20 years and a fine up to $250,000.
Aggravated identity theft: A mandatory two years to be served consecutively.
Grissom commended the USDA-OIG and Special Assistant U.S. Attorney Erin Tomasic for their work on the case.
Sixteen Charged in Detroit Area as Part of Largest National Medicare Fraud Takedown in HistoryRead the Press Release
DETROIT, MI – Attorney General Loretta E. Lynch and Department of Health and Human Services (HHS) Secretary Sylvia Mathews Burwell announced today a nationwide sweep led by the Medicare Fraud Strike Force in 17 districts, resulting in charges against 243 individuals, including 46 doctors, nurses and other licensed medical professionals, for their alleged participation in Medicare fraud schemes involving approximately $712 million in false billings. In addition, the Centers for Medicare & Medicaid Services (CMS) also suspended a number of providers using its suspension authority as provided in the Affordable Care Act. This coordinated takedown is the largest in Strike Force history, both in terms of the number of defendants charged and loss amount.
“This action represents the largest criminal health care fraud takedown in the history of the Department of Justice, and it adds to an already remarkable record of enforcement,” said Attorney General Lynch. “The defendants charged include doctors, patient recruiters, home health care providers, pharmacy owners, and others. They billed for equipment that wasn’t provided, for care that wasn’t needed, and for services that weren’t rendered. In the days ahead, the Department of Justice will continue our focus on preventing wrongdoing and prosecuting those whose criminal activity drives up medical costs and jeopardizes a system that our citizens trust with their lives. We are prepared – and I am personally determined – to continue working with our federal, state, and local partners to bring about the vital progress that all Americans deserve.”
“Health care fraud has been pervasive throughout metro-Detroit in recent years, at great cost to the American taxpayer. We hope that cases like these will alert doctors, pharmacists and other providers that criminal investigators are now scrutinizing billing records so that we can detect fraud and hold wrongdoers accountable,” said Barbara L. McQuade U.S. Attorney for the Eastern District of Michigan.
“The abuse of our health care system through the submission of fraudulent claims and payment of illegal kickbacks is criminal and negatively impacts each and every law abiding, taxpaying citizen,” stated Paul M. Abbate, Special Agent in Charge of the FBI Detroit Field Office. “Through the collective efforts of the Medicare Fraud Strike Force and law enforcement nationwide, the doctors, physical therapists and other licensed medical professionals charged and arrested in Michigan and around the country have been brought forward to face justice for their egregious criminal practices. The FBI, working in lockstep with its partners, remains committed to rooting out those within the medical profession who violate their patients’ trust, endanger their health, and defraud the health care system.”
“Today’s announcement illustrates that the Medicare Fraud Strike Force remains very active in Eastern Michigan,” said Lamont Pugh III, Special Agent in Charge, U.S. Department of Health & Human Services, Office of Inspector General – Chicago Region. “Individuals who attack federally funded health care programs should know that the Strike Force will detect and dismantle fraud operations and will ensure that perpetrators of these crimes are held accountable.”
“Health care fraud is all about the money,” said Jarod Koopman, Special Agent in Charge, Internal Revenue Service Criminal Investigation. “Our special agents bring their financial expertise to the table, teaming up with our law enforcement partners in order to help identify, investigate and dismantle these corrupt and costly schemes.”
In the Detroit area, sixteen individuals, including six doctors, a social worker, a pharmacist and two physical therapists were charged with a variety of health care fraud and kickback schemes totaling over $122 million. The schemes involved services that were medically unnecessary or never rendered, including physician visits, hospice care, home health care, and the billing but not dispensing of pharmaceuticals. In addition, law enforcement agents executed search warrants at eight locations and seizure warrants of 24 bank accounts related to the alleged schemes. The Centers for Medicare and Medicaid Services has moved to suspend 14 providers associated with the schemes.
The following charges were filed or unsealed:
United States v. Tahir, et al.
Five individuals, two physicians and three owners of hospice and home health care companies, were charged in an indictment with conspiring to commit health care fraud for their roles in a $58.3 million scheme to defraud Medicare by submitting fraudulent claims for home health care and hospice services that were medically unnecessary or not provided. The owners of the home health care and hospice companies, two of whom are also physical therapists, paid physicians and recruiters kickbacks for referring patients, then billed Medicare for medically unnecessary services, which were often never provided. The companies, located in Livonia, Michigan, are A Plus Hospice and Palliative Care, At Home Hospice, and At Home Network Inc., a home health care agency. The physicians who solicited and received kickbacks also submitted claims to Medicare for medically unnecessary physician services through their companies, Waseem Alam, M.D., P.C., Woodward Urgent Care, and Hatem Ataya, M.D., P.C. Those physicians prescribed beneficiaries medically unnecessary prescriptions, including controlled substances, for which Medicare also paid.
The defendants charged in the indictment are Shahid Tahir, 45, of Bloomfield, Michigan, Waseem Alam, 59, of Troy, Michigan, Hatem Ataya, 47, of Flushing, Michigan, Muhammad Tariq, 60, of West Bloomfield, Manawar Javed, 40, of West Bloomfield, Michigan.
United States v. Goldfein, M.D., et al.
Four individuals, a physician and three owners of home health care companies, were charged in a superseding indictment with conspiracy to commit health care and wire fraud, health care fraud, wire fraud and conspiracy to pay or receive health care kickbacks. The indictment alleges that the fraudulent claims were submitted by physicians who took kickbacks to refer home health care, then billed medically unnecessary services and prescribed unnecessary medications billed to Medicare.
The defendants charged in the indictment are William Binder, M.D., 58, Muhammad Zafar, 43, of Brownstown, Michigan, Tariq Khan, 47, of Woodhaven, Michigan, and Ghulam Shakir, 43.
United States v. Daneshvar, M.D.
Gerald Daneshvar, M.D., 39, of West Bloomfield, Michigan, was charged by indictment with his role in an over $5 million conspiracy to commit health care fraud by referring non-homebound patients for home health care services as well as billing for upcoded physician visits through Lake MI Mobile Doctors, PC (“Mobile Doctors”). The owner of Mobile Doctors and another physician employee were indicted in the Northern District of Illinois in 2013 for their roles in the same scheme.
United States v. Lerner, M.D., et al.
Laran Lerner, M.D., 59, of Northville, Michigan, a physician, and Mohamad Bazzi, 42, of Dearborn, Michigan, a licensed pharmacist and pharmacy owner, were charged by complaint with an over $24 million health care fraud scheme. Dr. Lerner provided medically unnecessary prescriptions for expensive pharmaceuticals for which Bazzi’s pharmacy, Advanced Pharmacy Services (APS) would bill Medicare, but not dispense. In addition, Dr. Lerner billed for unnecessary physician visits and referred beneficiaries for medically unnecessary home health care services through his clinic Greater Detroit Physical Therapy & Rehabilitation, located in Westland, Michigan.
United States v. Qadir, M.D.
Rizwan Qadir, M.D., 52, of Bloomfield Hills, Michigan, a physician, was charged by complaint with conspiracy to commit health care fraud and to pay or received kickbacks in a $19 million Medicare fraud scheme. Qadir paid patient recruiter Johnny Younan to bring him patients, for whom he would bill medically unnecessary tests and visits. Qadir also referred the beneficiaries for medically unnecessary home health care services.
United States v. Younan
Johnny Younan, 52, of Centerline, Michigan, was charged by complaint with conspiracy to pay or receive health care kickbacks to a physician, who would also prescribe Medicare beneficiaries controlled substances as an inducement to provide their Medicare information for billing.
United States v. Celestine Brown
Celestine Brown, 50, of Ypsilanti, Michigan, a licensed social worker, was charged by information with one count of health care fraud and one count of structuring in connection with her role in a $3.8 million scheme to defraud Medicare through the submission of false claims for psychotherapy services that were never rendered. Brown submitted the false claims through her company CBC Services, LLC located in Ypsilanti, Michigan. Brown is also alleged to have then structured cash withdrawals from her bank accounts in amounts of less than $10,000 to avoid reporting requirements.
United States v. Tamara Brown
Tamara Brown, 42, of Southfield, Michigan, was charged by complaint with her part in a $1.3 million kickback conspiracy. The complaint alleges that Brown solicited and received kickbacks from two Detroit area home health care agencies, Cherish Home Health Services, LLC, and Empirical Home Health Care, Inc., in return for providing patient referrals from a physician.
The Medicare Fraud Strike Force operations are part of the Health Care Fraud Prevention & Enforcement Action Team (HEAT), a joint initiative announced in May 2009 between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Since their inception in March 2007, Strike Force operations in nine locations have charged over 2,300 defendants who collectively have falsely billed the Medicare program for over $7 billion.
Including today’s enforcement actions, nearly 900 individuals have been charged in national takedown operations, which have involved more than $2.5 billion in fraudulent billings. Today’s announcement marks the first time that districts outside of Strike Force locations have participated in a national takedown and accounted for 82 defendants charged in the takedown.
These cases were investigated by the FBI, HHS-OIG and IRS-CI and were brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Michigan. These cases are being prosecuted by Trial Attorneys Matthew C. Thuesen, Elizabeth Young, Amy Markopoulos and Drew Bradylyons.
A complaint, indictment or information is merely a charge, and defendants are presumed innocent until proven guilty.
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Sheppard Pratt Director and Her Husband Charged in Illegal $2.5 Million Billing SchemeRead the Press Release
Baltimore, Maryland – A federal grand jury has indicted Lyneth Nyabiosi, age 49, and her husband, Willie Evans III, a/k/a “James Davies” and “James Davis,” age 53, both of Bear, Delaware, on charges arising from a scheme to falsely bill Nyabiosi’s employer, Sheppard Pratt Health Systems, for approximately $2.5 million for work purportedly performed by a company that the defendants secretly controlled. The indictment was returned on June 16, 2015 and unsealed today following the arrest of the defendants.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
Sheppard Pratt Health System is a private, non-profit health system in Maryland which offers mental health, substance use and special education services. Sheppard Pratt’s main campus is located at 6501 North Charles Street, Towson, Maryland. From November 2005 to September 2014, Nyabiosi was the director of the Health Information Management Department (HIM Department) of Sheppard Pratt. The department was responsible for receiving, organizing and storing patient medical records. As the director, Nyabsiosi was the highest ranking employee in the HIM Department.
According to the eight count indictment, Nyabiosi and Evans controlled and operated an entity named Information Management Solutions Technology (IMST), which purported to specialize in record management. On March 7, 2007, Nyabiosi, on behalf of Sheppard Pratt, entered into a contract with IMST to manage medical records for Sheppard Pratt, in violation of Sheppard Pratt’s conflict of interest policy. From 2006 to October 2014, and to conceal the inherent conflict of interest, the defendants falsely represented to Sheppard Pratt and others that IMST was operated by an account representative named “James Davis” and “James Davies,” when in fact no such person was employed by IMST.
The indictment further alleges that from 2007 to August 2014, the defendants submitted over 150 false invoices requesting that Sheppard Pratt pay IMST approximately $2.5 million. The invoices requested payment for work which was never performed, or for excessively inflated amounts for the work that was actually performed. For example, the invoices and other documents provided to Sheppard Pratt falsely represented that IMST stored and then shredded hundreds of thousands of boxes of sensitive medical records, when in fact IMST had stored substantially less. Nyabiosi, nonetheless personally approved all of the false invoices, thus causing Sheppard Pratt to mail checks to IMST totaling approximately $2.5 million. The defendants deposited the money in their bank account and used the money for personal expenditures, including loan and mortgage payments; home renovations and upgrades; personal wire transfers to Africa; and vehicle, food, clothing and entertainment expenses.
The indictment seeks forfeiture of $2.6 million, two residences located in Bear and Newark, Delaware and three vehicles.
The defendants face a maximum sentence of 20 years in prison for each of the eight counts of conspiring to commit mail fraud and mail fraud. An initial appearance was held for Nyabiosi yesterday and for Evans today in U.S. District Court in Baltimore. The defendants were released on home confinement and under the supervision of U.S. Pretrial Services.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein praised the FBI for its work in the investigation and thanked Assistant United States Attorney David I. Sharfstein, who is prosecuting the case.
Seventy-Three Charged in Southern District of Florida as Part of Largest National Medicare Fraud Takedown in HistoryRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Attorney General Loretta E. Lynch, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Shimon R. Richmond, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), Amy L. Parker, Assistant Special Agent in Charge, Eastern Region, U.S. Office of Personnel Management, Office of Inspector General (OPM-OIG), Pam Bondi, Florida Attorney General, and, David W. Bourne, Special Agent in Charge, U.S. Food and Drug Administration’s (FDA) Office of Criminal Investigations, Miami Field Office, announce that seventy-three (73) South Florida residents were charged for their alleged participation in various schemes to defraud Medicare and Medicaid out of more than $262,567.878. The charges in South Florida are part of a nationwide takedown by Medicare Fraud Strike Force operations in 17 cities that resulted in charges against 243 individuals, including more than 46 doctors, nurses, and other licensed medical professionals, for their alleged participation in Medicare fraud schemes involving approximately $712 million in false billings. In addition, the Centers for Medicare & Medicaid Services (CMS) also suspended a number of providers using its suspension authority as provided in the Affordable Care Act. This coordinated takedown is the largest in Strike Force history, both in terms of the number of defendants and loss amount.
U.S. Attorney Wifredo A. Ferrer stated, “The Medicare fraud schemes continue to be relentless. However, the efforts discussed today demonstrate that our national law enforcement initiatives are actively combatting this problem. Here, on the home front, we have charged thirty percent of the total defendants alleged to have participated in these evolving fraud schemes. Together, we have taken a solid stance against those who rob our communities of tax dollars intended to fund government programs that provide essential, quality of life benefits to the elderly and infirm. Those who commit Medicare fraud through the filing of false claims, payment or receipt of kickbacks, or fraudulent medical practices will be held accountable for defrauding the U.S. government.”
“This action represents the largest criminal health care fraud takedown in the history of the Department of Justice, and it adds to an already remarkable record of enforcement,” said Attorney General Lynch. “The defendants charged include doctors, patient recruiters, home health care providers, pharmacy owners, and others. They billed for equipment that wasn’t provided, for care that wasn’t needed, and for services that weren’t rendered. In the days ahead, the Department of Justice will continue our focus on preventing wrongdoing and prosecuting those whose criminal activity drives up medical costs and jeopardizes a system that our citizens trust with their lives. We are prepared – and I am personally determined – to continue working with our federal, state, and local partners to bring about the vital progress that all Americans deserve.”
“Health care fraud undercuts our country by driving up health care costs, wasting taxpayer dollars, and diverting Medicare and Medicaid funds designed to pay for legitimate health services. Taxpayers expect their government to fight back hard against such fraud and today’s crackdown shows our commitment to protecting Medicare, Medicaid, and the patients served by these government programs,” said Special Agent in Charge Shimon R. Richmond of U.S. Department of Health and Human Services Office of Inspector General’s Miami regional office. “Coordinating closely with our law enforcement partners, our agents work hard and well to ensure those who steal from federal health care programs pay dearly for their crimes.”
“Health care fraud is a multi-million dollar criminal industry that is bleeding off tax payer dollars from the system leaving people with legitimate health needs to bear the burden,” said George L. Piro, Special Agent in Charge, FBI Miami. “The FBI and its partners devote vast resources to investigate, catch and prosecute those committing health care fraud. To attack the problem from both ends, tougher regulations and oversight are key to reducing the amount of fraud from occurring in the first place.”
Florida Attorney General Pam Bondi stated, “When you charge for a medical procedure you never performed, for something a patient never needed or asked for and steal millions from our taxpayers, we are coming after you. I want to thank my Medicaid Fraud Control Unit and our federal partners who worked together through the Health Care Fraud Prevention and Enforcement Action Team, for the great investigative work that lead to these arrests.”
“Patients rely on the FDA to help keep their prescription medications safe and effective. When these drugs are diverted from the legitimate supply chain, they place the patient’s health at risk,” said George M. Karavetsos, Director, FDA Office of Criminal Investigations. “We will continue to work with our law enforcement colleagues to protect the public’s health.”
Specifically, the South Florida cases announced as part of the nationwide Medicare Fraud Strike Force takedown include:
- United States v. Daniel Suarez, et al., Case No. 15-20411-CR-Middlebrooks
Daniel Suarez, 23, of Miami, Maria Echarri, 40, of North Miami Beach, Angelina Gonzalez, 47, of Miami, Odalys del Carmen Borrego, 47, of Miami, Victor Manuel Ron, 30, of Homestead, Evelyn Parrado, 26, of Homestead, Enemisis Torres, 48, of Miami, and Aimee Geada, 39, of Miami, are charged by indictment with conspiracy to commit health care fraud and wire fraud and substantive counts of health care fraud. The indictment alleges that the defendants participated in overlapping conspiracies which took place from 2010 until the end of 2014. Suarez, Echarri, Gonzalez, and Borrego owned and operated four pharmacies, Alpha Pharmacy & Discount, Inc., Galaxy Pharmacy & Discount Inc., Dixie Pharmacy Discount Inc., and Nicole Pharmacy LLC, and husband and wife, Ron and Parrado, owned and operated a fifth pharmacy, NW Pharmacy, Inc. The indictment further alleges that the defendants and their co-conspirators submitted claims to Medicare and Part D drug plan sponsors that falsely and fraudulently represented that that prescription drugs that had been filled at their pharmacies, were medically necessary, prescribed by a doctor and were actually provided to Medicare beneficiaries. The indictment alleges that the co-conspirators paid Medicare beneficiaries for their personal identification numbers that were used to file false and fraudulent claims with Medicare drug plan sponsors. The indictment further alleges that Torres, through her clinic, Palmetto Comprehensive Healthcare, Inc., with the assistance of employee Geada, forged and altered Medicare beneficiary prescriptions and sold the prescriptions to the co-conspirators, who in turn, caused false and fraudulent claims to be filed with the Medicare and Part D drug program. As a result of these false and fraudulent claims, the defendants billed a total of at least $21.2 million from Medicare.
Mr. Ferrer commended the investigative efforts of HHS-OIG. This case is being prosecuted by Assistant U.S. Attorney Roger Cruz.
- United States v. Eklis Almanza, Juan E. Diaz Gonzalez, and Andres Rojas,Case No. 15-20412-CR-Williams
Eklis Almanza, 42, Juan E. Diaz Gonzalez, 47, both of Hialeah, and Andres Rojas, 56, of Miami, are charged by indictment with conspiracy to commit health care fraud and wire fraud and six counts of substantive health care fraud. The indictment alleges that Almanza, her husband Gonzalez, and their partner Rojas owned and operated Endless Medical Services, Corp., a/k/a “E-Z Pharmacy.” The indictment further alleges that the defendants conspired to commit health care and wire fraud from 2008 to May of 2014 by submitting claims to Medicare and Part D drug plan sponsors that falsely and fraudulently represented that prescription drugs were medically necessary, prescribed by a doctor and actually provided to Medicare Beneficiaries, when in fact this was not true. As a result of these false claims, the defendants received approximately $4,787,343 in overpayments from Medicare.
Mr. Ferrer commended the investigative efforts of HHS-OIG. This case is being prosecuted by Assistant U.S. Attorney Roger Cruz.
- United States v. Jose Pando, Magaly Gonzalez, and Daysi Sanchez,Case No. 14-20398-CR-Cooke
Jose Pando, 62, Magaly Gonzalez, 60, and Daysi Sanchez, 51, all of Hialeah, are charged by indictment with conspiracy to commit health care fraud and wire fraud, four counts of substantive health care fraud, and conspiracy to defraud the United States and pay health care kickbacks. The indictment alleges that the defendants submitted claims to Medicare and Medicare Part D drug plan sponsors that falsely and fraudulently represented that prescription drugs were medically necessary, prescribed by a doctor and actually provided to Medicare beneficiaries when, in fact, the drugs were not medically necessary and not provided. The Indictment also alleges that in furtherance of the conspiracy the co-conspirators submitted false and fraudulent prescription drug wholesaler invoices to conceal from PBMs auditing their operations that they had not purchased sufficient quantities of prescription drugs. As a result of these false and fraudulent claims to Medicare Part D drug plan sponsors made overpayments to Phrma Services, a company controlled by the defendants in the approximate amount of $2.7 million.
Mr. Ferrer commended the investigative efforts of the FBI and HHS-OIG. This case is being prosecuted by Assistant U.S. Attorney James Hayes.
- United States v. Jorge Collazo, Case No. 15-20426-CR-Middlebrooks
Jorge Collazo, 30, of Miami, an owner of Sonic Pharmacy, is charged by indictment with conspiracy to commit health care fraud and wire fraud and four counts of substantive health care fraud. The indictment alleges that the defendant and his co-conspirators submitted claims to Medicare and Medicare Part D drug plan sponsors that falsely and fraudulently represented that prescription drugs were medically necessary, prescribed by a doctor and actually provided to Medicare beneficiaries when, in fact, the drugs were not medically necessary and not provided. As a result of these false and fraudulent claims, Medicare drug plan sponsors made approximately $1.3 million dollars in overpayments to Sonic Pharmacy.
Mr. Ferrer commended the investigative efforts of the FBI and HHS-OIG. This case is being prosecuted by Assistant U.S. Attorney James Hayes.
- United States v. Yamille Duain Porro, Case No. 15-20426-CR-Williams
Dr. Yamille Duain Porro, 69, of Hialeah, is charged by indictment with conspiracy to commit health care fraud and wire fraud, two counts of substantive health care fraud, conspiracy to defraud the United States by paying and receiving health care kickbacks, and four substantive counts of receiving health care kickbacks. The indictment alleges that the defendant and her co-conspirators submitted claims to Medicare via interstate wire which fraudulently and falsely represented that home health care services were medically necessary, prescribed by a doctor, and provided to Medicare beneficiaries when, in fact, they were not medically necessary and not provided. The indictment further alleges that health care kickbacks were paid to patients, patient recruiters, and to the defendant in order to further the scheme. As a result of these false and fraudulent claims, Medicare paid Suncare Home Health and other Miami-based Home Health Agencies.
Mr. Ferrer commended the investigative efforts of the FBI, HHS-OIG and the United States Postal Inspection Service (USPIS). This case is being prosecuted by Assistant U.S. Attorney James Hayes.
- United States v. Adrian Armas and Asley Del Sol Fernandez,Case No. 15-20442-CR-Dimitrouleas
Adrian Armas, 27, and Asley Del Sol Fernandez, 34, both of Miami, are charged by indictment with conspiracy to commit health care fraud and wire fraud and four substantive health care fraud. The indictment alleges that the defendants and their co-conspirators submitted claims to Medicare and Medicare Part D drug plan sponsors that falsely and fraudulently represented that prescription drugs were medically necessary, prescribed by a doctor and actually provided to Medicare beneficiaries when in fact the drugs were not medically necessary and not provided. The indictment also alleges that in furtherance of the conspiracy the co-conspirators submitted false and fraudulent prescription drug wholesaler invoices to conceal from pharmacy benefit managers (PBMs) auditing their operations that they had not purchased sufficient quantities of prescription drugs. As a result of these false and fraudulent claims, Medicare Part D drug plan sponsors made overpayments to Astra Pharmacy in the approximate amount of $1.1 million.
Mr. Ferrer commended the investigative efforts of the HHS-OIG. This case is being prosecuted by Assistant U.S. Attorney James Hayes.
- United States v. Laura Ledesma, Case No. 15-20441-CR-Zloch
Laura Ledesma, 31, Hialeah, the president, director and registered agent of EDI Pharmacy, is charged by indictment with six counts of substantive health care fraud. The indictment alleges that the defendant submitted claims to Medicare and Medicare Part D drug plan sponsors that falsely and fraudulently represented that prescription drugs were medically necessary, prescribed by a doctor and actually provided to Medicare beneficiaries, when in fact the drugs were not medically necessary and not provided. As a result of the false and fraudulent claims, Medicare drug plan sponsors made approximately $3.3 million in overpayments to EDI Pharmacy.
Mr. Ferrer commended the investigative efforts of HHS-OIG. This case is being prosecuted by Assistant U.S. Attorney James Hayes.
- United States v. Odette Sanchez and Roque Garcia, Case No. 15-20396-CR-King
Odette Sanchez, 37, and Roque X. Garcia, 62, both of Miami Lakes, are charged by indictment with conspiracy to commit health care fraud and wire fraud and three counts of substantive health care fraud. The indictment alleges that Sanchez was the former owner of Limited Home Health Care, Inc., and Garcia was the former director of nursing for the company. The indictment further alleges that Sanchez and Garcia submitted and caused the submission of false and fraudulent claims to Medicare and Florida Medicaid for home health services that were neither medically necessary or actually provided by creating and causing the creation of false and fraudulent patient assessment forms which stated that Medicare and Medicaid beneficiaries were qualified to receive home health services, when in fact, they were not qualified.
Mr. Ferrer commended the investigative efforts of the HHS-OIG and the State of Florida Medicaid Fraud Control Unit (MFCU). This case is being prosecuted by Special Assistant U.S. Attorney Hagerenesh Simmons from the Florida Attorney General MFCU.
- United States v. Emilio Almuina, Case No. 15-20440-CR-Cohn
Emilio Almuina, 46, of Miami, the owner of Little Havana Drug Store, Inc., is charged by indictment with six counts of health care fraud. The indictment alleges that the defendant defrauded the Medicare program out of more than $1.1 million dollars by submitting claims to Medicare and Part D drug plan sponsors which falsely and fraudulently represented that prescription drugs were medically necessary, prescribed by a doctor and actually provided to Medicare beneficiaries, when, in fact, they were not medically necessary and not provided. The indictment also alleges that the defendant paid Medicare beneficiaries to obtain prescriptions for pharmaceutical items to be used in connection with the filing of the false claims. The indictment alleges that as a result of these false and fraudulent claims, Medicare made payments in the approximate amount of $1,161,446.
Mr. Ferrer commended the investigative efforts of FBI and HHS-OIG. This case is being prosecuted by Assistant U.S. Attorney Kevin J. Larsen.
- United States v. Ivan Fonseca and Ivon Fonseca, Case No. 15-20387-CR-Dimitrouleas
Ivan Fonseca, 51, of Palmetto Bay, and Ivon Fonseca, 53, of Miami, are charged by indictment with conspiracy to commit health care fraud and wire fraud, conspiracy to defraud the United States and receive health care kickbacks, and receipt of kickbacks. The indictment alleges that the defendants allegedly paid the owner of a clinic kickbacks in exchange for home health care service prescriptions. The defendants then used the purchased prescriptions to bill Medicare for physical therapy services that were not medically necessary and never rendered to Medicare beneficiaries. The indictment further alleges that the defendants paid the owner of a physical therapy staffing services agency to provide them with documentation that falsely and fraudulently represented that physical therapy had been rendered to Medicare beneficiaries, when such services were never, in fact rendered. The defendants, through their home health agency, RPH Home Health, fraudulently sought reimbursement from the Medicare program. The indictment also charges the defendants in a second conspiracy related to a scheme to defraud the United States and to receive health care kickbacks. In connection with this scheme, the defendants are charged with allegedly recruiting and referring Medicare beneficiaries to the owner of a Miami, Florida home health agency in exchange for kickbacks. As the result of the defendants’ fraudulent schemes, the Medicare program purportedly sustained losses of approximately $2.2 million.
Mr. Ferrer commended the investigative efforts of FBI and HHS-OIG. This case is being prosecuted by Assistant U.S. Attorney Kevin J. Larsen.
- United States v. James Bailey, Case No. 15-20425-CR-Ungaro
Jason Bailey, 39, of Opa Locka, is charged by indictment with ten counts of mail fraud, five counts of wire fraud, and one count of aggravated identity theft. The indictment alleges that the defendant was employed by a health care provider to submit claims on their behalf and while submitting claims for payment for services, the defendant caused insurance carriers to send payments to his own address. The defendant then allegedly deposited the checks into bank accounts he controlled.
Mr. Ferrer commended the investigative efforts of FBI and HHS-OIG. This case is being prosecuted by Assistant U.S. Attorney Christopher J. Clark.
- United States v. Jesus Martinez, Case No. 15-20448-CR-Martinez
Jesus Martinez, 52, Miami, is charged by Information with conspiracy to commit money laundering. According to the Information, the defendant and his co-conspirators allegedly agreed to engage in a series of financial transactions through American Master Trading, LLC, a Florida corporation. These financial transactions were undertaken in order to conceal the nature, location, source, and ownership of the proceeds of a specified unlawful activity. According to the allegations, the specified unlawful activity was the payment of kickbacks in connection with a Federal health care program, in violation of Title 42, United States Code, Section 1320a-7b(b)(2)(A).
Mr. Ferrer commended the investigative efforts of FBI and HHS-OIG. This case is being prosecuted by Assistant U.S. Attorney James Hayes.
- United States v. Dean Butler, et al., Case No. 15-20438-CR-Bloom
Dean Butler, 42, of Broward County, Nery Cowan, 53, of Miami, and Irina Mora, 47, of Miami, are charged with conspiracy to defraud the United States and pay and receive health care kickbacks, seven counts of substantive health care fraud, conspiracy to commit money laundering, and five counts of substantive money laundering. In addition, Cowan and Butler are charged with conspiracy to commit health care fraud and wire fraud. The indictment alleges that Butler, the owner, administrator, and director for Greater Miami Behavioral Healthcare, along with his associates Cowan and Mora paid kickbacks to patient brokers who, in turn, paid kickbacks to patient recruiters and assisted living facility owners located throughout the Southern District of Florida. The indictment further alleges that as a result of the defendants conduct, the Medicare program sustained losses of approximately $63.9 million.
Mr. Ferrer commended the investigation efforts of the FBI and HHS-OIG. This case is being prosecuted by DOJ Attorney Allan J. Medina of the Criminal Division’s Fraud Section.
- United States v. Otto Egea, Case No. 15-20449-CR-Lenard
Otto Egea, 57, of Miami, is charged by Information with conspiracy to defraud the United States and accept health care kickbacks. The Information filed against Egea, who served as a patient broker for Greater Miami Behavioral Healthcare, alleges that the defendant received kickbacks in exchange for recruiting patients.
Mr. Ferrer commended the investigation efforts of the FBI and HHS-OIG. This case is being prosecuted by DOJ Attorney Allan J. Medina of the Criminal Division’s Fraud Section.
- United States v. Nayra Nario, Case No. 15-20450-CR-Moore
Nayra Nario, 48, of Monroe County, is charged by Information with conspiracy to defraud the United States and accept health care kickbacks. The Information filed against Nario, who served as a patient broker for Greater Miami Behavioral Healthcare, alleges that the defendant received kickbacks in exchange for recruiting patients.
Mr. Ferrer commended the investigation efforts of the FBI and HHS-OIG. This case is being prosecuted by DOJ Attorney Allan J. Medina of the Criminal Division’s Fraud Section.
- United States v. Santiago Borges, et. al., Case No. 15-20383-CR-Ungaro
Santiago Borges, 50, Erik Alonso, 44, Cristina Alonso, 43, and Damian Mayol, 43, all of Miami, each face various charges from among the following offenses included in the indictment: conspiracy to commit health care fraud and wire fraud, conspiracy to defraud the United States and pay health care kickbacks, payment of kickbacks in connection with a federal health care program, and conspiracy to make false statements relating to health care matters. The indictment alleges that the four defendants caused the submission of false and fraudulent claims to Medicare for partial hospitalization program (“PHP”) services which were not medically necessary and not provided. As a result of this conduct, the Medicare program sustained losses of approximately $65 million.
Mr. Ferrer commended the investigation efforts of the FBI. This case is being prosecuted by DOJ Attorney A. Brendan Stewart of the Criminal Division’s Fraud Section.
- United States v. Lourdes Mora, Case No. 15-20416-CR-King
United States v. Osnier Pupo, Case No. 15-20417-CR-King
Lourdes Mora, 59, a licensed mental health counselor, and Osnier Pupo, 38, both of Miami, are charged by Information with conspiracy to commit health care fraud and conspiracy to defraud the United States and pay and receive health care kickbacks, respectively. The Information filed against Mora alleges that she was a licensed mental health counselor who worked as a therapist at R&S, St. Theresa, and New Day where she fabricated patient records, including group therapy session notes, to make it appear that patients qualified for and received legitimate partial hospitalization program (“PHP”) services when, in fact, such services were not medically necessary and/or were not provided. The Information alleges that Pupo was paid for recruiting patients for the clinics, and in turn paid kickbacks to other patient recruiters for patient referrals and directly to beneficiaries to induce them to serve as patients at the clinics.
Mr. Ferrer commended the investigation efforts of the FBI. This case is being prosecuted by DOJ Attorney A. Brendan Stewart of the Criminal Division’s Fraud Section.
- United States v. Ana Ibis Rumbaut, Carlos Medina and Sheyla Diaz,Case No. 15-20424-CR-Altonaga
Ana Ibis Rumbaut, 44, of Hialeah, Carlos Medina, 63, of Miami, and Sheyla Diaz, 35, of Miami, are charged by indictment with conspiracy to commit health care fraud and wire fraud, conspiracy to defraud the United States and pay and receive health care kickbacks, and substantive kickback counts. The indictment alleges that the defendants and their co-conspirators participated in multi-million dollar health care fraud and kickback schemes involving a medical clinic, a fraudulent therapy staffing company, and multiple South Florida home health agencies. The indictment also alleges that Rumbaut was a patient recruiter who ran a fraudulent therapy staffing company that purportedly provided home health services to Medicare beneficiaries at these home health agencies, but in reality, often did not. The indictment further alleges that Medina was an owner of Doral Community Clinic, Inc. (“Doral”), a medical clinic that sold fraudulent home health prescriptions which were used by these home health agencies to fraudulently bill Medicare. The indictment alleges that Diaz worked at Doral and also sold fraudulent home health prescriptions. Through these home health agencies, the defendants and their co-conspirators allegedly submitted millions of dollars in false and fraudulent claims to Medicare for purported home health services.
Mr. Ferrer commended the investigation efforts of the FBI and HHS-OIG. This case is being prosecuted by DOJ Attorneys A. Brendan Stewart and Anne P. McNamara of the Criminal Division’s Fraud Section.
- United States v. Yovani Suarez, Case No. 15-20429-CR-Altonaga
Yovani Suarez, 48, of Miami, is charged by Information with conspiracy to commit health care fraud. The Information alleges that Suarez was a patient recruiter who worked closely with the owners and operators of several South Florida home health agencies. According to the Information, Suarez allegedly was paid kickbacks by the owners and operators of these agencies in return for referring beneficiaries to serve as patients at these agencies. The Information further alleges that the defendant bought fraudulent home health prescriptions from individuals at South Florida medical clinics and acted as a go-between for these home health agencies and other patient recruiters. Allegedly, in this role, the defendant offered other patient recruiters kickbacks for referring patients to these home health agencies.
Mr. Ferrer commended the investigation efforts of the FBI and HHS-OIG. This case is being prosecuted by DOJ Attorneys A. Brendan Stewart and Anne P. McNamara of the Criminal Division’s Fraud Section.
- United States v. Vladimir Prieto, et. al., Case No. 15-20385-CR-Middlebrooks
Vladimir Prieto, 52, of Miami, Ruben Maranges, 62, of Miami, Javier Paulino, 26, of Miami, Armando Lugo, 48, of Miami, and Mario Izquierdo, 57, of Hialeah, are charged by indictment with conspiracy to commit health care fraud and wire fraud, conspiracy to commit money laundering, conspiracy to defraud the United States and pay and receive health care kickbacks, and substantive kickback and money laundering counts. The indictment alleges that for several years the defendants participated in health care fraud, money laundering and kickback schemes involving USA Home Care Solution Agency, Corp. (“USA Home Care”). The indictment further alleges that patient recruiters provided non-homebound beneficiaries to owners and operators at this South Florida home health agency, in exchange for illegal kickbacks and bribes. The indictment alleges that the defendants laundered money, in order to help obtain cash used to pay many of these kickbacks. The indictment further alleges that the fraudulent therapy staffing companies documented home health services purportedly provided to beneficiaries at USA Home Care, but in reality, the services were often not provided. The indictment alleges that the estimated loss to the Medicare program from these activities is $8.7 million.
Mr. Ferrer commended the investigation efforts of the FBI and HHS-OIG. This case is being prosecuted by DOJ Attorney Anne P. McNamara of the Criminal Division’s Fraud Section.
- United States v. Milka Alvarez, et. al., Case No. 15-20436-CR-Gayles
Milka Alvarez, 42, of Miami, Jesus Miguel Perez, 50, of Miami, Joel Alvarez, 42, of Miami, Sandra Jaramillo, 39, of Miami, Adolfo Larrea, 53, of Miami, and Maria Teresa Pupo, 50, of Opa Locka, are charged by indictment with criminal offenses. Alvarez, Jaramillo, Alvarez, and Perez are all charged with conspiracy to commit health care fraud, and conspiracy to defraud the United States and pay health care kickbacks, and substantive counts of paying or receiving health care kickbacks. Larrea is charged with conspiracy to defraud the United States and pay and receive health care kickbacks and two substantive counts of payment of health care kickbacks. The indictment alleges that for more than five years, the defendants participated in health care fraud and kickback schemes involving the Yava Medical Office Inc. (“Yava”) clinic and several South Florida home health agencies, including D&D&D Home Health Care, Inc. (“D&D&D”) and Mercy Home Care Inc. (“Mercy”). The indictment further alleges that Alvarez was the longtime owner and operator of the Yava clinic. In this role, Alvarez allegedly conspired with others to sell fraudulent home health prescriptions which were used by the home health agencies to fraudulently bill Medicare for millions of dollars. Pupo was allegedly a patient recruiter who bought fraudulent prescriptions, and referred beneficiaries to D&D&D and Mercy. The indictment further alleges that Perez, Alvarez, Jaramillo, and Larrea were all owners, operators or employees of these home health agencies, and participated in the health care fraud and kickback schemes. Through these home health agencies, the defendants and their co-conspirators allegedly submitted false and fraudulent claims to Medicare for home health services purportedly provided to recruited Medicare beneficiaries.
Mr. Ferrer commended the investigation efforts of the FBI and HHS-OIG. This case is being prosecuted by DOJ Attorney Anne P. McNamara of the Criminal Division’s Fraud Section.
- United States v. Lazaro Del Rio, et. al., Case No. 15-20409-CR-Ungaro
Lazaro Del Rio, 55, of Miami, Hector Anzardo, 42, of Miami, Yanella Nunez, 41, of Hialeah, and Yocis Nunez, 42, of Hialeah, are charged by indictment with conspiracy to commit health care fraud and wire fraud, and with multiple counts of health care fraud. The indictment alleges that the defendants filed false and fraudulent prescription drug claims to Medicare and Part D drug plan sponsors through Vivi Pharmacy.
Mr. Ferrer commended the investigation efforts of the FBI and HHS-OIG. This case is being prosecuted by DOJ Attorney Anne P. McNamara of the Criminal Division’s Fraud Section.
- United States v. Alfredo Ramos, Case No. 15-20430-CR-Lenard
Alfredo Ramos, 48, of Miami, is charged by Information with conspiracy to defraud the United States and receive health care kickbacks. The Information alleges that Ramos was a patient recruiter for Professional Medical Home Health LLC, USA Home Care Solution Agency Corp., and Longcare Home Health Corporation, all of which were Miami home health care agencies that purported to provide home health and therapy services to Medicare beneficiaries. The Information alleges that Ramos referred Medicare beneficiaries to these agencies in exchange for kickback payments. As a result, Ramos and his co-conspirators allegedly caused false and fraudulent claims to be submitted to Medicare for home health services purportedly provided by these agencies.
Mr. Ferrer commended the investigation efforts of the FBI and HHS-OIG. This case is being prosecuted by DOJ Attorney Anne P. McNamara of the Criminal Division’s Fraud Section.
- United States v. Luis Toledo, Case No. 15-20407-CR-Cooke
Luis Toledo, 49, of Hialeah, is charged by indictment with conspiracy to defraud the United States and pay and receive health care kickbacks, conspiracy to commit money laundering, and substantive money laundering counts. The indictment alleges that Toledo paid kickbacks to patient recruiters in exchange for the referral of Medicare beneficiaries to Renovation Health Care, a Miami-Dade home health care agency. The indictment further alleges that the defendant and his co-conspirators engaged in a money laundering conspiracy to conceal the proceeds of the kickback scheme.
Mr. Ferrer commended the investigation efforts of the FBI and HHS-OIG. This case is being prosecuted by DOJ Attorney Kelly Graves of the Criminal Division’s Fraud Section.
- United States v. Idelia Florat Viamontes, Case No. 15-20432-CR-Ungaro
Idelia Florat Viamontes, 55, of Miami, is charged by Information with conspiracy to defraud the United States and receive health care kickbacks. The Information alleges that the defendant was a patient recruiter who referred Medicare beneficiaries to multiple Miami-Dade home health care agencies in exchange for bribes and kickbacks.
Mr. Ferrer commended the investigation efforts of the FBI and HHS-OIG. This case is being prosecuted by DOJ Attorney Kelly Graves of the Criminal Division’s Fraud Section.
- United States v. Khaled Elbeblawy, Case No. 15-20546-CR-Bloom
Khaled Elbeblawy, 38, of Broward County, is charged by Information with one count of conspiracy to commit health care fraud. The indictment alleges that the defendant was an employee of Willsand Home Health agency and Owner of JEM Home Health Care Inc. From 2006 through 2011, the defendant submitted and caused the submission of false claims to Medicare for home health services that were not medically necessary and not provided. The defendant also paid kickbacks to patient recruiters in return for referring Medicare beneficiaries to Willsand and JEM. As a result of the submission of false claims, Medicare made payments in the approximate amount of $37 million.
Mr. Ferrer commended the investigation efforts of the FBI and HHS-OIG. This case is being prosecuted by DOJ Attorneys Lisa H. Miller and Assistant Chief Joseph S. Beemsterboer of the Criminal Division’s Fraud Section.
- United States v. Jose Ramos, Case No. 15-20435-CR-King
Jose Ramos, 42, of Miami, is charged by indictment with health care fraud. The indictment alleges that Ramos was the owner of Garcia Pharmacy, located in Miami-Dade County. The indictment further alleges Ramos used Garcia Pharmacy to submit claims to Medicare Part D drug plan sponsors for purportedly providing prescription drugs to Medicare beneficiaries when in fact, the beneficiaries were not prescribed and did not receive the medication.
Mr. Ferrer commended the investigation efforts of the FBI and HHS-OIG. This case is being prosecuted by DOJ Attorney Shubhra Shivpuri of the Criminal Division’s Fraud Section.
- United States v. Evelio Fernandez Penaranda, Case No. 15-20399-CR-Moore
Evelio Fernandez Penaranda, 47, of Miami, is charged by indictment with health care fraud. The indictment alleges that Fernandez Penaranda owned and operated Naranja Pharmacy and that from approximately May of 2013 until March of 2014, the defendant used the pharmacy to submit claims for prescription drugs to Medicare Part D and other Medicare Drug Sponsors, which were unnecessary, not prescribed and not provided.
Mr. Ferrer commended the investigation efforts of the FBI and HHS-OIG. This case is being prosecuted by DOJ Attorney Shubhra Shivpuri of the Criminal Division’s Fraud Section.
- United States v. James Banner, Case No. 15-20408-CR-Martinez
James Banner, 47, of Miami, is charged by indictment with conspiracy to defraud the United States and pay and receive health care kickbacks. The indictment alleges that Banner, who owned and operated Oracle Diagnostic Laboratories, had Oracle perform drug tests at several facilities in Southern Florida in exchange for a percentage of Oracle’s billings for these services to Medicare.
Mr. Ferrer commended the investigation efforts of the FBI and HHS-OIG. This case is being prosecuted by DOJ Attorney Nicholas E. Surmacz of the Criminal Division’s Fraud Section.
- United States v. Tamara Esponda, Case No. 15-20439-CR-Cohn
Tamara Esponda, 47, of Hialeah, is charged by indictment with healthcare fraud. The indictment alleges that Esponda, owner and operator of Biomax Pharmacy, caused the pharmacy to bill Medicare Part D drug plan sponsors for prescription drugs that it never dispensed, and never purchased from wholesalers. The indictment alleges that the estimated loss to the Medicare program as a result of Esponda’s actions is approximately $1,582,976 million.
Mr. Ferrer commended the investigation efforts of the FBI and HHS-OIG. This case is being prosecuted by DOJ Attorney Timothy Loper of the Criminal Division’s Fraud Section.
- United States v. Tomas Garcia Torres, Case No. 15-20346-CR-Lenard
Tomas Garcia Torres, 44, of Hialeah, is charged by indictment with healthcare fraud. The indictment alleges that Torres, owner and operator of San Nicolas Pharmacy caused the pharmacy to bill Medicare Part D drug plan sponsors for prescribing drugs that it never dispensed and never purchased. The indictment alleges that the estimated loss to the Medicare program as a result of Torres’ actions is approximately $1,680,127 million.
Mr. Ferrer commended the investigation efforts of the FBI and HHS-OIG. This case is being prosecuted by DOJ Attorney Timothy Loper of the Criminal Division’s Fraud Section.
- United States v. Raynel Soto-Rivera, Case No. 15-2740-mj-CMM
Raynel Soto-Rivera, age 39, of Hialeah, is charged by complaint with money laundering. According to allegations contained in the complaint, principals of Gold Care Home Health Services caused the submission of fraudulent claims to Medicare seeking payment for home health services that were not legitimately prescribed or provided. The complaint alleges that Medicare paid over $2.4 million to Gold Care Home Health Services based on these fraudulent claims. The complaint further alleges that Soto-Rivera assisted with laundering $50,000 in fraud proceeds he received from Gold Care Home Health Services.
Mr. Ferrer commended the investigation efforts of the FBI, HHS-OIG, and DHS-HSI. This case is being prosecuted by DOJ Attorney Christopher Hunter of the Criminal Division’s Fraud Section.
- United States v. Gustavo Castillo, Case No. 15-2783-CMM-Torres
Gustavo Castillo, 42, of Hialeah, is charged by complaint with laundering the proceeds of a conspiracy that attempted to defraud Medicare of almost $24 million by submitting false claims for durable medical equipment. The complaint alleges that as a result of the fraudulent conspiracy Medicare paid approximately $3.5 million. The complaint further alleges that the defendant owned and operated Castillo Transportation Services, which received approximately $140,000 from the members of the Medicare conspiracy.
Mr. Ferrer commended the investigation efforts of the FBI and HHS-OIG. This case is being prosecuted by DOJ Attorney Timothy Loper of the Criminal Division’s Fraud Section.
- United States v. Jorge Moreno and Luis Antony Rivera, Case No. 15-2806-mj-Torres
Jorge Moreno, 50, of Tampa, and Luis Antony Rivera, 50, of Punta Gorda, are charged by complaint prescription drug diversion, by selling prescription drugs, with the intent to defraud and mislead, not as a wholesale distributor, and without transaction history, transaction information, and transaction statements as required by Title 21, United States Code, Section 360eee-1(c)(1)(A)(iii), in violation of Title 21, United States Code Sections 331(t) and 333(a)(2). The complaint alleges that between April 6, 2015, and June 15, 2015, the defendants and their co-conspirators improperly sold diverted prescription drugs to undercover agents on three separate occasions during buy operations recorded and controlled by law enforcement. The complaint alleges that the drugs sold on these three occasions were worth, in the aggregate, approximately $200,000.
Mr. Ferrer commended the investigative efforts of the FDA-OCI and HHS-OIG.This case is being prosecuted by Assistant U.S. Attorney James Hayes.
- United States v. Miriam Valdez, Case No. 15-2833-mj-JG
Miriam Valdez, 62, of Miami, is charged by complaint with prescription drug diversion, by selling prescription drugs, with the intent to defraud and mislead, not as a wholesale distributor, and without transaction history, transaction information, and transaction statements as required by Title 21, United States Code, Section 360eee-1(c)(1)(A)(iii), in violation of Title 21, United States Code Sections 331(t) and 333(a)(2). The complaint alleges that on June 16, 2015, the defendant and her co-conspirator improperly sold diverted prescription drugs during a recorded law enforcement operation. The complaint alleges that the drugs sold on these three occasions were worth, in the aggregate, approximately $100,000.
Mr. Ferrer commended the investigative efforts of the FDA-OCI and HHS-OIG. This case is being prosecuted by Assistant U.S. Attorney James Hayes.
- United States v. Indira Martell, Case No. 15-2805-mj-TORRES
Indira Martell, 48, of Miami, an owner of Martell Pharmacy, is charged by complaint with health care fraud. The complaint alleges that the defendant and her accomplices submitted claims to Medicare and Medicare Part D drug plan sponsors and to Medicaid that falsely and fraudulently represented that prescription drugs were medically necessary, prescribed by a doctor and actually provided to Medicare beneficiaries when, in fact, the drugs were not medically necessary and were not provided. As a result of these false and fraudulent claims, Medicare Part D drug plan sponsors and Medicaid made approximately $4.9 million dollars in overpayments to Martell Pharmacy.
Mr. Ferrer commended the investigative efforts of HHS-OIG. This case is being prosecuted by Assistant U.S. Attorney James Hayes.
If convicted of a charged offense, a defendant faces a possible maximum statutory sentence of five years in prison for conspiracy to defraud the United States by paying and receiving health care kickbacks, in violation of Title 18, United States Code, Section 371; five years in prison for payment and receipt of kickbacks in connection with a federal health care program, in violation of Title 42, United States Code, Section 1320a; twenty years in prison for mail or wire fraud, in violation of Title 18, United States Code, Section 1341; ten years in prison for health care fraud, in violation of Title 18, United States Code, Section 1347; twenty years for conspiracy to commit health care fraud and wire fraud, in violation of Title 18, United States Code, Section 1349; twenty years for money laundering or conspiracy to commit money laundering, in violation of Title 18, United States Code, Section 1956; and two years in prison consecutive to any other term for aggravated identity theft, in violation of Title 18, United States Code, Section 1028A.
The Medicare Fraud Strike Force operations are part of the Health Care Fraud Prevention & Enforcement Action Team (HEAT), a joint initiative announced in May 2009 between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Since their inception in March 2007, Strike Force operations in nine locations have charged over 2,300 defendants who collectively have falsely billed the Medicare program for over $7 billion.
Including today’s enforcement actions, nearly 900 individuals have been charged in national takedown operations, which have involved more than $2.5 billion in fraudulent billings. Today’s announcement marks the first time that districts outside of Strike Force locations have participated in a national takedown and accounted for 82 defendants charged in the takedown.
The cases announced today are being prosecuted and investigated by Medicare Fraud Strike Force teams from the Fraud Section of the Justice Department’s Criminal Division and from the U.S. Attorney’s Offices for the Southern District of Florida, Eastern District of Michigan, Eastern District of New York, Southern District of Texas, Central District of California, Eastern District of Louisiana, Northern District of Texas, Northern District of Illinois and the Middle District of Florida; and agents from the FBI, HHS-OIG, OPM, and state Medicaid Fraud Control Units (MFCU).
In addition to the Strike Force, today’s enforcement actions include cases brought by the U.S. Attorney’s Offices for the Southern District of Illinois, Northern District of Ohio, Western District of Pennsylvania, Western District of Kentucky, Southern District of New York, Alaska and the Southern District of Georgia.
A complaint, information or indictment is merely a charge, and defendants are presumed innocent until proven guilty.
To learn more about HEAT, go to: www.stopmedicarefraud.gov.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov
Seven Charged in North Texas as Part of Largest National Medicare Fraud Takedown in HistoryRead the Press Release
DALLAS – Attorney General Loretta E. Lynch and Department of Health and Human Services (HHS) Secretary Sylvia Mathews Burwell announced today a nationwide sweep led by the Medicare Fraud Strike Force in 17 districts, resulting in charges against 243 individuals, including 46 doctors, nurses and other licensed medical professionals, for their alleged participation in Medicare fraud schemes involving approximately $712 million in false billings. In addition, the Centers for Medicare & Medicaid Services (CMS) also suspended a number of providers using its suspension authority as provided in the Affordable Care Act. This coordinated takedown is the largest in Strike Force history, both in terms of the number of defendants charged and loss amount.
“This action represents the largest criminal health care fraud takedown in the history of the Department of Justice, and it adds to an already remarkable record of enforcement,” said Attorney General Lynch. “The defendants charged include doctors, patient recruiters, home health care providers, pharmacy owners, and others. They billed for equipment that wasn’t provided, for care that wasn’t needed, and for services that weren’t rendered. In the days ahead, the Department of Justice will continue our focus on preventing wrongdoing and prosecuting those whose criminal activity drives up medical costs and jeopardizes a system that our citizens trust with their lives. We are prepared – and I am personally determined – to continue working with our federal, state, and local partners to bring about the vital progress that all Americans deserve.”
Acting U.S. Attorney John Parker of the Northern District of Texas announced that as part of the nationwide takedown, seven individuals, including two physicians and one registered nurse, were indicted in the district.
“This district will continue to focus all the tools and resources of the Medicare Fraud Strike Force on those who cheat not only Medicare and Medicaid, but all taxpayers and vulnerable patients as well,” said Acting U.S. Attorney Parker. “When these schemes are uncovered, and they will be, this office will not hesitate to bring indictments, such as the two that were unsealed this week in Dallas, against those who defraud these essential health care programs.”
One indictment charges each of the below-listed defendants with one count of conspiracy to commit health care fraud:
Noble U. Ezukanma, 56, of Fort Worth, Texas
Myrna S. Parcon, a/k/a “Merna Parcon,” 62, of Dallas, Texas
Lita S. Dejesus, 70, of Allen, Texas
Oliva A. Padilla, 57, of Garland, Texas
Ben P. Gaines, 55, of Plano, Texas
These five defendants were arrested on Tuesday, June 16, 2015. Each made their initial appearance in federal court and was released on bond. A sixth defendant is expected to surrender to federal authorities tomorrow in Dallas.
Defendants Ezukanma, Parcon, and Dejesus owned/operated US Physician Home Visits (USPHV), a/k/a “Healthcare Liaison Professionals, Inc.” located on Viceroy Drive in Dallas. Parcon was the owner/manager and Ezukanma was a licensed medical doctor who had an ownership interest in USPHV. Both Ezukanma and another physician provided their Medicare number to the company to use to submit Medicare claims. Dejesus served in various roles at USPHV, including overseeing Medicare billing.
Gaines formed A Good Homehealth (A Good), a/k/a “Be Good Healthcare, Inc.,” which was located in the same office as USPHV. Parcon, who owned and operated A Good, purchased the company through a “straw” buyer; both Gaines and Parcon concealed Parcon’s ownership.
Parcon and Padilla formed Essence Home Health (Essence), a/k/a “Primary Angel, Inc.,” located on Midway Road in Addison, Texas.
While the three companies appeared to be set up as three separate entities, the companies worked as one; the same employees often worked for all three companies and were often paid by all three companies.
According to the indictment, from January 1, 2009 to approximately June 9, 2013, the defendants ran a conspiracy to defraud Medicare. As part of the fraudulent business model, Ezukanma and another physician certified 94% of the Medicare beneficiaries receiving home health services from A Good, and 65% of the Medicare beneficiaries receiving home health services from Essence. Had Medicare known of the true ownership and improper relationship between the three companies, Medicare would not have allowed these companies to enroll in the program and bill for services.
The indictment alleges that USPHV submitted billing primarily under Dr. Ezukanma’s Medicare provider number, regardless of who actually performed the service. They billed at an alarming rate, generally billing for only the most comprehensive physician exam, and always adding a prolonged service code. USPHV submitted claims to Medicare for physician visits of 90 minutes or more, when most visits took only 15 to 20 minutes. Most all of USPHV patients came from home health companies soliciting certifications and recertifications for home health. More than 97% of USPHV Medicare patients received home health care, whether they needed it or not. The indictment alleges that false certifications caused Medicare to pay more than $40 million for fraudulent home health services.
The other indictment charges Mariamma Viju, 50, of Garland, Texas, with one count of conspiracy to commit health care fraud, five counts of health care fraud, and one count of wrongful disclosure of individually identifiable health information. Viju is a registered nurse and is the co-owner and Director of Nursing for Dallas Home Health, Inc. She was arrested on Tuesday, June 16, 2015, made her initial appearance in federal court, and was released on bond.
The indictment alleges Viju and her coconspirators stole patient information from Dallas-area hospitals with the intent to use that information to solicit patients for Dallas Home Health. Viju allegedly purposefully took that information from Baylor University Medical Center at Dallas, where she worked as a nurse until her employment was terminated.
Dallas Home Health billed Medicare and Texas Medicaid for home health service on behalf of Medicare beneficiaries and Medicaid clients who were not homebound and other otherwise eligible for covered home health services. As Director of Nursing, Viju falsified and exaggerated the nature of patients’ health conditions to increase the amount billed to Medicare and Medicaid, and paid to Dallas Home Health. Viju also allegedly paid kickbacks to Medicare beneficiaries to recruit and retain them as patients of Dallas Home Health.
In a related case, Mariamma Viju’s husband, Viju Mathew, 50, also of Garland, a former registration specialist at Parkland Hospital in Dallas, pleaded guilty in November 2014 to one count of fraud and related activity in connection with identification documents, authentication features and information (identity theft). He used his position at the hospital to obtain confidential patient information, including patients’ names, telephone numbers, dates of birth, participation in the Medicare program, and government-issued health insurance claim numbers so that he could use it to contact prospective patients for his home health care business. He is scheduled to be sentenced in August 2015.
The Medicare Fraud Strike Force operations are part of the Health Care Fraud Prevention & Enforcement Action Team (HEAT), a joint initiative announced in May 2009 between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Since their inception in March 2007, Strike Force operations in nine locations have charged over 2,300 defendants who collectively have falsely billed the Medicare program for over $7 billion.
Including today’s enforcement actions, nearly 900 individuals have been charged in national takedown operations, which have involved more than $2.5 billion in fraudulent billings. Today’s announcement marks the first time that districts outside of Strike Force locations have participated in a national takedown and accounted for 82 defendants charged in the takedown.
A complaint or indictment is merely a charge, and defendants are presumed innocent until proven guilty. The maximum statutory penalty for each count in each of these two indictments is 10 years in federal prison and a $250,000 fine.
The Northern District of Texas cases are being investigated by the FBI, the U.S. Department of Health and Human Services – Office of Inspector General and the Texas Attorney General’s Medicaid Fraud Control Unit and were brought as part of the Medicare Fraud Strike Force supervised by the Criminal Division Fraud Section and the U.S. Attorney’s Office for the Northern District of Texas.
Assistant U.S. Attorneys Katherine Pfeifle and Douglas Brasher are in charge of the prosecutions.
Settlement Reached in Fraud Lawsuit Against Sapulpa CompanyRead the Press Release
TULSA, Okla.—Danny C. Williams Sr., United States Attorney for the Northern District of Oklahoma, announced today that H&R Enterprises, LLC has agreed to pay $6,500 in civil penalties to settle allegations of violating the Buy American Act (BAA) and submitting false claims to the United States, in violation of the False Claims Act.
In December 2009, H&R Enterprises, LLC, based in Sapulpa, OK, submitted a bid on a construction project for rehabilitating and painting multiple storage tanks in the City of Dimmitt, Texas that was funded by the Stimulus Act and administered by the Environmental Protection Agency. In order to ensure compliance with the BAA, H&R was required to submit documentation, known as BAA Certificates, certifying that the materials to be used on the project were manufactured in the United States.
The United States Attorney’s Office brought a lawsuit against H&R under the False Claims Act. The suit alleged that steel reinforcing plates used by H&R were not manufactured in the U.S. and that the BAA Certificates submitted by H&R for the steel plates were falsified in that they contained fictitious names and forged signatures of personnel of the American companies from which the steel plates were purportedly acquired; the notary stamps on the Certificates were counterfeited; and the notary’s names were forged.
“This settlement demonstrates a commitment to ensuring individuals and companies that do business with the Government, and receive taxpayer money, comply with the law. We will investigate and prosecute violators, regardless of the monetary value of the violation,” said U.S. Attorney Williams. “We encourage the public to report individuals and companies that are committing fraud or otherwise violating the law concerning Government contracts.”
The Buy American Act was codified in the depression era during the time of the New Deal to help American companies. The Act established a general preference for the use of materials manufactured in the United States on public works projects funded by the U.S. Government. Contractors on public works projects are required to certify the materials used are manufactured in the United States.
Assistant United States Attorney Marianne Hardcastle represented the United States and the investigation was conducted by Agent Edwin Debiew, Environmental Protection Agency, Office of Inspector General, Office of Investigations.
Sentencings for June 12 - June 18, 2015Read the Press Release
Jeremy Charles Hubbard, 36, of Casper, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on June 18, 2015, for being a felon in possession of a firearm. Hubbard was arrested in Casper, Wyoming. He received 12 months and one day imprisonment, to be followed by three years of supervised release, and was ordered to pay a $400.00 fine and a $100.00 special assessment. This case was investigated by the Natrona County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Omar Gomez-Salazar, 22, of Mexico, was sentenced by Federal District Court Judge Scott W. Skavdahl on June 12, 2015, for illegal re-entry of a previously deported alien into the United States. Gomez-Salazar was arrested in Wheatland, Wyoming. He received time served, plus ten days, was ordered to pay a $100.00 special assessment and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Seminole County Man Sentenced for Receipt of Child PornographyRead the Press Release
Orlando, Florida – United States District Judge Ann C. Conway has sentenced Edward Adams (57, Sanford) to 11 years and 3 months in federal prison for receipt of child pornography. He was also ordered to serve a life term of supervision following his release from prison. Adams pleaded guilty on January 28, 2015.
According to the plea agreement, in September 2014, an FBI task force officer conducted an investigation involving child pornography being shared online. The officer downloaded images depicting child pornography from a computer that was later traced to Adams. On November 10, 2014, a federal search warrant was executed at Adams’s residence and his laptop computer was seized. The forensic analyses of the computer revealed images and movies depicting child pornography. During an interview with agents, Adams admitted that he had downloaded and possessed child pornography, and that he had sexually molested a minor in 1978.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorneys Ilianys Rivera Miranda.
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.
Sellersburg woman indicted on six counts of wire fraudRead the Press Release
INDIANAPOLIS - United States Attorney Josh J. Minkler announced today federal charges against a Sellersburg woman for six counts of wire fraud. Lesley R. Kruer, 42, was charged by indictment this week for her role in stealing over $250,000 in a 10 year period.
“Stealing from corporate businesses affects us all,” said Minkler. “It increases prices we pay at the counter and has a generally negative effect on our economy.”
Kruer was the office manager for a company based in Sellersburg, IN., which operated 28 Kentucky Fried Chicken restaurants in Indiana and Kentucky. She was entrusted with the company’s payroll, to pay vendors and purchase equipment. Kruer had access to and signature authority for bank accounts for the victim company and was authorized to use company credit cards for business expenses.
The scheme to defraud allegedly began in July 2004 and continued until June 2014 with the victim company sustaining over $250,000 in losses. Kruer accessed the payroll system giving herself unauthorized raises and abused company credit cards pretending to be making business expense purchases when in fact she was using the cards for personal items like a foot massager and paying her personal cell phone bill. Further, she intentionally overpaid vendors for goods and services they provided. When the vendor would reimburse the company for the overpayment, Kruer allegedly deposited the check into her personal account.
This case was jointly investigated by the United States Secret Service and the Clark County Sheriff’s Department.
“This case demonstrates the strong partnership of the Secret Service Electronic Crimes Task Force and the Clark County Sheriff’s Department in protecting individuals and businesses within the community,” said Craig Hutzell, Acting Special Agent in Charge, Louisville Field Office, U.S. Secret Service. “We will continue to leverage this relationship in our pursuit of those who would use illegal means and criminal behavior to take advantage of others.”
According to Assistant United States Attorney Tiffany J. McCormick who is prosecuting this case for the government, Kruer faces up to 20 years in federal prison if convicted.
An indictment is only a charge and not evidence of guilt. All defendants are innocent until proven otherwise in federal court.
Second Individual Pleads Guilty to Investment FraudRead the Press Release
Ocala, Florida – United States Attorney A. Lee Bentley, III announces that Bryan T. Zuzga (37, Coldwater, Michigan) has pleaded guilty to conspiracy to commit wire fraud. He faces up to 20 years in federal prison and has also agreed to pay more than $11.6 million in restitution to his victims. A sentencing date has not yet been set.
According to court documents, Zuzga and his two conspirators, Jenifer E. Hoffman (38, Clermont) and John C. Boschert (43, Apopka), defrauded over $11 million from more than 100 victims through investments offered in connection with a company called Assured Capital Consultants. As part of their solicitations, the conspirators represented to investors that money would be placed in a Performing Private Placement Investment, and that Boschert had connections to the trading program being used. Investors were told that their investments would be safe and that none of their money would leave the attorney escrow account that belonged to Zuzga, who was represented as being an attorney licensed in Florida. Investors were further advised that their funds would be used as collateral for a line of credit, which would then be used in trading.
None of those representations were true. Zuzga was not an attorney licensed in Florida or any other state, and the funds were not deposited into any escrow account controlled by him. Instead, the three operated a scheme in which money from later investors was paid to earlier investors. The three also used some of the money from the scheme for themselves, including purchasing residences for Hoffman and Zuzga.
In a prior civil proceeding, the United States forfeited two residences belonging to Hoffman and Zuzga, which had been purchased with proceeds from the scheme. The government obtained more than $850,000 from the sale of the properties. The proceeds from those sales were distributed to the victims of the scheme.
Boschert pleaded guilty on October 29, 2014, to conspiracy to commit wire fraud and is scheduled to be sentenced on June 23, 2015. Hoffman has been charged with one count of conspiracy, eleven counts of wire fraud, and one count of making a false tax return. Her trial is set for July 6, 2015. If convicted, she faces a maximum penalty of 20 years in federal prison for each count of conspiracy and wire fraud, and 3 years in federal prison for the false tax return.
An indictment is merely a formal charge that a defendant has violated one or more federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Internal Revenue Service – Criminal Investigation, the United States Secret Service, and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorneys Roger B. Handberg, James Mandolfo, and Nicole M. Andrejko.
Sanford Man Pleads Guilty to Producing and Receiving Child PornographyRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces that Douglas Scheels (43, Sanford) pleaded guilty today to producing and receiving child pornography. He faces a mandatory minimum penalty of 15 years, up to 30 years, in federal prison for the production charge and a mandatory minimum of 5 years, up to 20 years, for the receipt charge. A sentencing date has not yet been set.
According to the plea agreement, from at least June 2014, and continuing through his arrest on January 11, 2015, Scheels sought out, identified, communicated with, and sexually exploited several minor victims. He enticed two minors from his neighborhood into producing child pornography. Scheels also sought out additional minor victims from his neighborhood. Using online communications, Scheels persuaded a minor to produce and send him explicit photos, and also communicated with additional minors over the Internet for the same purpose.
This case was investigated by the Federal Bureau of Investigation, the Seminole County Sheriff’s Office, and the Sanford Police Department. It is being prosecuted by Assistant United States Attorney J. Bishop Ravenel.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
San Miguel County Man Sentenced to 92 Months for Trafficking Narcotics in Lea and Bernalillo CountiesRead the Press Release
ALBUQUERQUE – Ruben Estrada, 54, of Las Vegas N.M., was sentenced this morning in federal court in Las Cruces, N.M., to 92 months in federal prison followed by five years of supervised release for his conviction on conspiracy and cocaine trafficking charges.
Estrada was one of six defendants charged as the result of an investigation primarily targeting a drug trafficking organization operating in Lea County, N.M., that allegedly was led by co-defendant Leroy Castillo, 33, of Hobbs, N.M. The investigation, which was led by the FBI and Lea County Drug Task Force (LCDTF) with assistance from the DEA and New Mexico State Police, was designated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program, a nationwide Department of Justice program that combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations.
Estrada was arrested on May 1, 2014, on a criminal complaint charging him, Castillo and four other defendants with conspiracy to violate the federal narcotics laws and possession of cocaine and heroin with intent to distribute. According to the criminal complaint, Estrada, Castillo, Joe Padilla, 33, Sergio Garza, 35, both of Hobbs, N.M., Richard Armijo-Romero, 23, of Las Vegas, N.M., and Charlie Gutierrez, 35, of Albuquerque, N.M., committed these offenses in Lea and Bernalillo Counties, N.M., between late April 2014 and early May 2014. Armijo-Romero and Gutierrez were arrested with Estrada on May 1, 2014, Garza was arrested in Hobbs on May 1, 2014, and Padilla was arrested on Feb. 19, 2015. Castillo has not yet been arrested and is considered a fugitive.
The criminal complaint outlines an investigation revealing that the defendants participated in a conspiracy to transport narcotics from Arizona to New Mexico and planned to distribute the narcotics in Lea and Bernalillo Counties.
Estrada, Castillo and their co-defendants subsequently were indicted in May 2014. Count 1 of the seven-count indictment charged all six defendants with participating in a cocaine trafficking conspiracy in Lea County in late April and early May 2014. Count 2 charged the six men with participating in a conspiracy to distribute cocaine in Bernalillo County, N.M., on May 1, 2014. Counts 3 and 4 charged Castillo with possession of cocaine and heroin with intent to distribute on May 1, 2014 in Lea County, and Counts 5 and 6 charged Garza with possession of cocaine with intent to distribute on May 1, 2014. Count 7 charged Garza with using and carrying a firearm in relation to a drug trafficking crime.
On March 11, 2015, Estrada pled guilty to a felony information charging him with participating in a cocaine trafficking conspiracy and possession of cocaine with intent to distribute. Estrada admitted having approximately eight kilograms of cocaine in his possession when he was arrested on May 1, 2014. Estrada also admitted that he violated the conditions of his supervised release from a prior cocaine trafficking conviction in 2006 by committing the crimes to which he is pleading guilty and by traveling to Arizona without the permission of his probation officer.
Garza, Armijo-Romero, Padilla and Gutierrez have entered guilty pleas and are pending sentencing. Castillo, who has yet to be arrested, is considered a fugitive. Individuals with information regarding the whereabouts of Castillo are asked to call the FBI at 505-622-6001. Charges in criminal complaints and indictments are merely accusations and defendants are presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by the Las Cruces, Roswell and Albuquerque offices of the FBI and the LCDTF, with assistance from the Las Cruces office of the DEA, the New Mexico State Police and the Phoenix Police Department. The case is being prosecuted by Assistant U.S. Attorneys Terri L. Abernathy and Shaheen P. Torgoley.
The Lea County Drug Task Force is comprised of officers from the Lea County Sheriff’s Office, Hobbs Police Department, Lovington Police Department, Eunice Police Department the Tatum Police Department and the Jal 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.
Sacramento Men Indicted for Trafficking Methamphetamine and CocaineRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned an indictment today against Sacramento residents Benjamin Macias, 37, and Sergio Ambriz, 26, charging them with conspiracy to distribute cocaine, distributing cocaine, and distributing methamphetamine, United States Attorney Benjamin B. Wagner announced. Macias is also charged with possessing a firearm in furtherance of a drug trafficking crime and being a felon in possession of firearm.
According to court documents, in 2014 and 2015, Macias supplied Ambriz with cocaine and Ambriz sold the cocaine to an undercover agent in Sacramento and El Dorado Counties. Ambriz also sold the undercover agent methamphetamine. When Macias was arrested, a Ruger 9mm pistol was found in his vehicle.
This case is the product of an investigation by the Drug Enforcement Administration. Assistant United States Attorney Michael McCoy is prosecuting the case.
If convicted, Macias faces a maximum statutory sentence of 40 years in prison and a $5 million fine. Ambriz faces a maximum statutory sentence of life in prison and an $8 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Roswell Man Pleads Guilty to Fleeing from Border Patrol CheckpointRead the Press Release
ALBUQUERQUE – Vincent Edward Romero, 18, of Roswell, N.M., pled guilty today in federal court in Las Cruces, N.M., to a felony information charging him with fleeing from a U.S. Border Patrol Checkpoint at a high rate of speed. The guilty plea was entered without the benefit of a plea agreement.
Romero was arrested on March 3, 2015, during a routine inspection at the U.S. Border Patrol Checkpoint on U.S. Highway 54 in Otero County, N.M. According to the criminal complaint, after Romero entered the checkpoint, Border Patrol agents directed him to a secondary inspection area. Romero disregarded agents’ directions and drove away from the checkpoint, leading agents in a high speed pursuit.
At sentencing, Romero faces a statutory maximum penalty of five years in federal prison. Romero’s sentencing hearing has yet to be scheduled.
This case was investigated by the Alamogordo office of the U.S. Border Patrol and is being prosecuted by Assistant U.S. Attorney Amanda Gould of the U.S. Attorney’s Las Cruces Branch Office.
Ridgefield Doctor Pays $218,633 to Settle Allegations under the False Claims ActRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that EDWARD BERMAN, MD, a physician with a practice in Ridgefield, has entered into a civil settlement with the government in which he will pay $218,633 to resolve allegations that BERMAN violated the False Claims Act.
U.S. Attorney Daly explained that the allegations against BERMAN involve fraudulent billing to Medicare for subsequent skilled nursing facility (“SNF”) services. The government alleges that BERMAN submitted claims to Medicare for SNF services that were not performed in accordance with Medicare requirements. Specifically, the government alleges that BERMAN “upcoded” certain services, submitting claims to Medicare by using a higher-paying billing code when services with lower-paying billing codes were actually provided.
To resolve his liability under the False Claims Act, BERMAN will pay $218,633, in order to reimburse the Medicare programs for conduct occurring during the time period January 1, 2008, through March 4, 2014.
“Health care providers that overcharge Medicare drain critical funds from the Medicare program and increase health care costs,” U.S. Attorney Daly stated. “The U.S. Attorney’s office is committed to vigorously pursuing physicians and other health care providers who submit fraudulent claims to federal health care programs. Providers who submit false claims to the government face serious monetary and administrative sanctions.”
Under the False Claims Act, the government can recover up to three times its actual damages, plus penalties of $5,500 to $11,000 for each false claim.
This case was investigated by the Office of Inspector General for the Department of Health and Human Services. The case was prosecuted by Assistant U.S. Attorney Anne F. Thidemann with the assistance of Auditor Kevin A. Saunders.
In entering into the settlement agreement, BERMAN did not admit liability.
U.S. Attorney Daly encouraged individuals who suspect health care fraud to report it by calling the Health Care Fraud Task Force (203) 785-9270 or 1-800-HHS-TIPS.
Renewable energy company pays $387,000 to settle allegations of fraud in American Recovery and Reinvestment Act programRead the Press Release
DENVER -- WECSREP Inc., a renewable energy company based in Palm Springs, California, has paid $387,000 to settle allegations that it violated the False Claims Act when it submitted applications to the U.S. Department of Treasury under a program created by the American Recovery and Reinvestment Act of 2009 (ARRA).
The National Renewable Energy Laboratory (NREL) in Golden, Colorado reviewed applications for a program that offered companies up to a 30 percent cash reimbursement for initiating and placing into service “renewable energy properties” such as solar and wind projects. The funds for the reimbursement came from Treasury funds set aside under section 1603 of the ARRA.
To qualify for this program, companies submitted the costs they incurred building renewable energy projects to NREL, which reviewed and approved projects for reimbursement with Treasury funds. In its 35 applications to this program, WECSREP claimed inflated installation costs of up to 414 percent of the original installation costs, while concealing the original installation costs from NREL and Treasury. In many cases, instead of receiving a 30 percent reimbursement for its projects, WECSREP was able to recoup the entire installation cost of the project from Treasury funds based on the inflated costs submitted in its applications. The money paid to WECSREP went far beyond what was authorized by the program, and the United States alleged that WECSREP’s abuse of this government program violated the False Claims Act.
“WECSCREP abused a renewable energy program set up under the American Recovery and Reinvestment Act to help stimulate the economy in the tough days after the 2008 Financial Crisis,” said U.S. Attorney John Walsh. “By paying this penalty under the False Claims Act, WECSREP is finally handing back the taxpayer money it received by inflating costs estimates, inflated estimates that may have deprived others of the opportunity to participate in these programs at a time of economic crisis.”
“This settlement reinforces the commitment of the Treasury Office of the Inspector General to pursue cases against those who attempt to defraud the U.S. Treasury Department and misuse public funds,” said Assistant Inspector General for Investigations John L. Phillips.
The claims settled by this agreement are allegations only. There has been no determination of liability.
This matter was investigated by the U.S. Department of Treasury’s Office of Inspector General. It was handled by Assistant U.S. Attorneys Amanda Rocque and Zeyen Wu.
Quincy Man Sentenced for Obstructing Marathon Bombing InvestigationRead the Press Release
BOSTON – A Quincy man was sentenced in U.S. District Court in Boston today to 30 months in prison and three years of supervised release for obstructing the investigation of the Boston Marathon bombings.
“In this case our investigation succeeded despite Matanov’s lies to law enforcement,” said United States Attorney Carmen M. Ortiz. “He should have helped instead of hindered, and assisted instead of obstructed. The cost of this conduct is 30 months in federal prison.”
“During an ongoing terrorism investigation, Khairullozhon Matanov repeatedly and intentionally lied to the FBI about his knowledge of the Tsarnaev brothers’ activities in the hours and days immediately following the bombings,” said Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division. “His actions resulted in the diversion of critical manpower at a time when we did not have the resources to spare. The FBI hopes this case sends a strong warning to others that misleading law enforcement will not be tolerated.”
In March 2015, Khairullozhon Matanov, 24, of Quincy, pleaded guilty to one count of falsifying, concealing, and covering up a material fact in a federal investigation and three counts of making materially false statements in a federal investigation.
After the FBI released photos of the suspected bombers, Matanov realized that federal agents would likely want to talk with him because of his ties to them, especially his contact with the Tsarnaev brothers during the week following the bombings. Consequently, Matanov took steps to impede the FBI’s investigation into the extent of his friendship, contact, and communication with the Tsarnaevs, and into any information and views he held related to terrorism and the Tsarnaevs. Matanov deleted information from his computer, some of which contained violent content or calls to violence, and made multiple false statements to federal investigators and others. Those acts delayed and extended the bombing investigation by causing the FBI to expend additional resources in restoring and analyzing Matanov’s computer deletions and investigating his shifting and conflicting stories.
U.S. Attorney Ortiz, FBI SAC Lisi, and Lowell Police Superintendent William Taylor, made the announcement today. This investigation was conducted by members of the FBI’s Joint Terrorism Task Force, which is also composed of officers from other federal, state, and local law enforcement agencies. Assistance in the investigation was also provided by the Boston, Braintree, Waltham, and Quincy Police Departments; the Massachusetts State Police; Customs and Border Protection; Naval Criminal Investigative Service; and the Internal Revenue Service’s Criminal Investigation. The case was prosecuted by Assistant U.S. Attorneys Scott L. Garland and Aloke S. Chakravarty of Ortiz’s Anti-Terrorism and National Security Unit.
Philadelphia Woman Charged with Stealing Dead Mother's BenefitsRead the Press Release
PHILADELPHIA - Delores Turner, 62, of Philadelphia, PA, was charged today by information with one count of theft of government funds, announced United States Attorney Zane David Memeger. According to the information, the defendant received retirement benefits intended for her mother, after her mother’s death in June 2012 until September 2014. The defendant’s alleged actions resulted in a loss to the government of approximately $30,159.
If convicted, the defendant faces a maximum possible sentence of 10 years imprisonment, a three‑year period of supervised release, restitution to the government of $30,159, a $250,000 fine, and a $100 special assessment.
The case was investigated by the Social Security Administration, Office of Inspector General, and is being prosecuted by Special Assistant United States Attorney Christopher E. Parisi.
An Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Phelps County Man Sentenced on Federal Methamphetamine ChargesRead the Press Release
St. Louis, MO – WILLIAM C. CRANK II, Rolla, MO, was sentenced to 28 months in prison involving his distribution of methamphetamine in March and April 2014, in Phelps County. He appeared this morning in St. Louis before United States District Judge John Ross.
This case was investigated by the South Central Drug Task Force. Assistant United States Attorney John Mantovani handled the case for the U.S. Attorney's Office.
Peekskill Man Charged in White Plains Federal Court with Distribution of Heroin and Fentanyl Causing the Death of an IndividualRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Diego Rodriguez, the Assistant Director-In-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), and George N. Longworth, the Commissioner of the Westchester County Department of Public Safety, on behalf of the Westchester County Northern Narcotics Initiative, announced the filing of a Superseding Indictment charging LAKUAN RHYNE, 23, of Peekskill, New York, with distributing heroin and fentanyl, the use of which caused the overdose death of an individual. The Superseding Indictment also charges RHYNE and 11 other defendants with conspiring to distribute heroin, crack cocaine, and powder cocaine in and around Westchester County from at least 2014 up to and including January 2015.
All of the 12 defendants were charged in the original Indictment, filed in January 2015, and have previously been taken into custody. The Superseding Indictment adds the charge against RHYNE for distributing narcotics that caused the death of an individual. The case is assigned to U.S. District Judge Nelson S. Román.
U.S. Attorney Bharara stated: “Overdose deaths from heroin and fentanyl have become an epidemic in many communities north of New York City. Another young person from one of those communities died, the tragic victim of heroin and fentanyl allegedly peddled by the defendant Lakuan Rhyne. The charge brought against that defendant in the Superseding Indictment serves as a reminder that the sale of such poison cannot be tolerated, and that behind every overdose death, law enforcement is looking for the drug dealer responsible.”
FBI Assistant Director-in-Charge Rodriguez stated: “Drug distribution puts profits above life. In this case, it is alleged Lakuan Rhyne and his associates distributed or conspired to distribute heroin, crack cocaine, and powder cocaine out of cars, residences, and on the streets of Westchester County, New York. It is also alleged that Ryne’s distribution of heroin laced with fentanyl led to the death of Thomas Coogan. Although we cannot always protect people from themselves, we can hold people accountable for their actions. We will continue to work with our partners to investigate these offenses in order to protect our communities.”
Commissioner Longworth stated: “The Westchester County Department of Public Safety remains committed to working with federal and local law enforcement to combat the distribution and sale of heroin in our county. I am grateful to the FBI Violent Crimes Task Force and the U.S. Attorney’s Office for the valuable partnership they have forged with Westchester’s law enforcement community.”
According to the allegations in the Superseding Indictment and other information in the public record[1]:
The defendants were members of drug trafficking conspiracies operating in the area of Westchester County, New York. LAKUAN RHYNE, a/k/a “Rico,” was a leader of the drug distribution rings. From at least early 2014 through January 2015, RHYNE and his associates conspired to distribute significant quantities of heroin, crack cocaine, and powder cocaine in and around Westchester County. RHYNE and his associates sold their drugs out of cars, residences, and on the streets. At least some of the heroin distributed by RHYNE was laced with fentanyl, a synthetic opioid that is significantly stronger than both ordinary heroin and morphine.
On January 26, 2014, RHYNE sold some of his fentanyl-laced heroin to Thomas Coogan, a 23-year-old resident of Buchanan, New York. Later that day, after using the heroin supplied by RHYNE, Coogan died. The Westchester County Medical Examiner’s report indicates that Coogan died of “acute mixed drug intoxication (heroin, fentanyl, and alprazolam).” If convicted of the offense of distributing narcotics the use of which resulted in Coogan’s death, as charged in Count Four of the Superseding Indictment, RHYNE faces a mandatory minimum sentence of 20 years in prison, and a maximum sentence of life in prison.
The four-count Superseding Indictment also charges RHYNE and varying combinations of his associates with conspiring to distribute and possess with intent to distribute (i) one kilogram or more of heroin, in violation of Title 21, United States Code, Sections 846, 841(a)(1), and 841(b)(1)(A) (Count One); (ii) 280 grams or more of crack cocaine, in violation of Title 21, United States Code, Sections 846, 841(a)(1), and 841(b)(1)(A) (Count Two); and (iii) 500 grams or more of cocaine, in violation of Title 21, United States Code, Sections 846, 841(a)(1), and 841(b)(1)(B) (Count Three).
Charts containing the names, ages, residences, charges, and maximum penalties for the defendants are set forth below. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
* * *
Mr. Bharara praised the outstanding investigative work of the FBI, the Westchester County Northern Narcotics Initiative, which comprises officers of the Westchester County Department of Public Safety and the police departments of Peekskill, Croton-on-Hudson, Buchanan, Bedford, Yorktown, Mount Kisco, and Ossining, New York, as well as the FBI Violent Crimes Task Force. He also thanked the Westchester County District Attorney’s Office for its participation.
The prosecution is being handled by the Office’s White Plains Division. Assistant U.S. Attorney George Turner is in charge of the prosecution.
The charges contained in the Superseding Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
15-150 ###
CHARGE
DEFENDANTS
MAXIMUM PENALTIES
Count One
Narcotics conspiracy – Heroin
(Conspiracy to distribute and possess with intent to distribute 1 kilogram or more of heroin, in violation of 21 U.S.C. §§ 846, 841(a)(1) & 841(b)(1)(A))
LAKUAN RHYNE
a/k/a “Rico”
JESSE DABBS
DAIVON PRYOR
JONATHAN THORNTON a/k/a “Staxx”
JOHNSON VANIYAPURAKAL
Life in prison
Mandatory minimum: 10 years in prison
Count Two
Narcotics conspiracy – Crack
(Conspiracy to distribute and possess with intent to distribute 280 grams or more of crack cocaine, in violation of 21 U.S.C. §§ 846, 841(a)(1) & 841(b)(1)(A))
LAKUAN RHYNE
a/k/a “Rico”
JESSE DABBS
MICHAEL DOUSE
MICHAEL GRAY
KEVIN HERBIN
ROBERT MILLER
DWAYNE MOUNTAIN
JONATHAN THORNTON
a/k/a “Staxx”
Life in prison
Mandatory minimum: 10 years in prison
Count Three
Narcotics conspiracy – Cocaine
(Conspiracy to distribute and possess with intent to distribute 500 grams or more of cocaine, in violation of 21 U.S.C. §§ 846, 841(a)(1) & 841(b)(1)(B))
LAKUAN RHYNE
a/k/a “Rico”
JESSE DABBS
CURTIS DIMMIE
MICHAEL DOUSE
MICHAEL GRAY
MICHAEL HARRINGTON
ROBERT MILLER
JONATHAN THORNTON
a/k/a “Staxx”
JOHNSON VANIYAPURAKAL
40 yrs. in prison
Mandatory minimum: five years in prison
Count Four
Narcotics distribution resulting in death
(21 U.S.C. §§ 841(a)(1) & 841(b)(1)(C))
LAKUAN RHYNE
a/k/a “Rico”
Life in prison
Mandatory minimum: 20 years in prison
Defendant
Age
Residence
LAKUAN RHYNE
23
Peekskill, NY
JESSE DABBS
24
Peekskill, NY
CURTIS DIMMIE
47
Mohegan Lake, NY
MICHAEL DOUSE
39
Flushing, NY
MICHAEL GRAY
48
Ossining, NY
MICHAEL HARRINGTON
36
Mahopac, NY
KEVIN HERBIN
24
Cortlandt Manor, NY
ROBERT MILLER
36
Cortlandt Manor, NY
DWAYNE MOUNTAIN
28
Putnam Valley, NY
DAIVON PRYOR
20
Poughkeepsie, NY
JONATHAN THORNTON
29
Peekskill, NY
JOHNSON VANIYAPURAKAL
26
Mahopac, NY
[1] As the introductory phrase signifies, the entirety of the text of the Superseding Indictment and the description of the Superseding Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Owners and Staff of Louisville Area Chiropractic Clinics Charged with Health Care Fraud and Identity TheftRead the Press Release
Fraudulently Billed Insurance Companies $5 million for Services Never Performed
LOUISVILLE, Ky. – Acting United States Attorney John E. Kuhn, Jr. today announced the indictment and arrests of owners and staff of Louisville area chiropractic clinics and a medical billing corporation on charges of health care fraud and identity theft. The scheme involved unsuspecting chiropractors, patients, insurance companies, and area employers – namely Jeffboat, LLC located in Jeffersonville, Indiana. Over an eight-month-long period, the defendants are accused of scheming to fraudulently bill insurance companies $5 million for services never performed that cost Jeffboat a loss of approximately $1.3 million.
According to the eight count indictment, beginning no later than November 25, 2013, and continuing through July 18, 2014, five named defendants recruited unsuspecting chiropractors to either open chiropractic clinics or to staff existing chiropractic clinics in the Louisville area. Their intent was to fraudulently bill insurance companies from the clinics.Each chiropractor provided his/her National Provider Identifier (NPI) number to defendants Claudia Lopez and Oskel Lezcano in order to credential the clinics with various insurance companies.Thereafter, the defendants recruited employees from Jeffboat and others to seek chiropractic services from the clinics.However, unbeknownst to the patients and the chiropractors, the clinics billed over $5,000,000 for methocarbamol injections (a muscle relaxant),using the patients’ names, dates of birth, insurance/policy numbers, addresses, and patient IDs/Social Security Numbers without the patients’ knowledge and for injections that were never provided.
The clinics used Lezcano’s billing companies, Gold Hands Medical Billing Corp and Gold Hands Medical Billing B, Inc., to process the fraudulent billings for payment through Jeffboat’s third-party administrator, United Health Care Services, Inc. In addition, multiple clinics billed for the fraudulent injections using the same patients’ names.
Claudia Lopez, Oskel Lezcano, Ariel Borrego-Hernandez, Sergio Betancourt, and Ledinson Chavez operated and controlled multiple chiropractic clinics in the Louisville area including: Xpress Diagnostics Center, Inc.; Prudential Chiropractic Medical Center, PLLC; Klondike Chiropractic Medical Center, LLC; Be Well Chiropractic Center, Corp.; Chiropractic and Medical Center, LLC, even though the clinics were placed in various chiropractors’ names.
All five defendants are charged with one count of health care fraud. Lopez and Lezcano are both charged with additional counts of aggravated identity theft. If convicted at trial, the defendants could be sentenced to no more than ten years in prison, a $250,000 fine and a three year period of supervised release. Defendant Lopez could be sentenced to an additional 4 years in prison and fined an additional $500,000 for a conviction on the identity theft charges.Defendant Lezcano could be sentenced to an additional 10 years in prison and fined an additional $500,000 for a conviction on the identity theft charges.
This case is being prosecuted by Assistant United States Attorneys Joseph Ansari and Lettricea Jefferson-Webb and is being investigated by the Federal Bureau of Investigation (FBI), the United States Postal Inspection Service, the Internal Revenue Service Criminal Investigation, the Louisville Metro Police Department and the National Insurance Crime Bureau.
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The indictment of a person by a Grand Jury is an accusation only and that person is presumed innocent until and unless proven guilty.
Owner and Two Employees of Medical Equipment Provider Indicted for Health Care Fraud ConspiracyRead the Press Release
Baltimore, Maryland – A federal grand jury has indicted Harry Crawford, age 55, Elma Myles, age 51, and Matthew Hightower, age 33, all of Baltimore, Maryland, on charges related to a scheme to defraud Medicaid and other health care benefit programs out of at least $900,000. The indictment was returned on June 3, 2015 and unsealed on June 17, 2015, upon the arrest of the defendants. These charges are part of a nationwide takedown by Medicare Fraud Strike Force operations in 17 cities, including Baltimore.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Nicholas DiGiulio, Office of Investigations, Office of Inspector General of the Department of Health and Human Services; and Chief James W. Johnson of the Baltimore County Police Department.
According to the three-count indictment, Crawford owned and operated RX Resources and Solutions (RXRS), a durable medical equipment provider located in Randallstown, Maryland. RXRS provided hospital beds, wheelchairs, and disposable medical supplies including adult incontinence products, diabetic test strips and wound care items. Crawford was President and CEO of RXRS. Myles worked at the company and was responsible, among other things, for billing health care benefit programs for supplies provided by RXRS. Beginning in 2012, Hightower worked as a delivery driver for RXRS.
The indictment alleges that from 2010 through May 2014, Crawford and Myles conspired to defraud Medicaid and other health benefit programs by billing for supplies that were never provided, or overcharging for materials actually delivered, and by billing for supplies that were unneeded and had not been prescribed by a physician. The indictment alleges that Hightower joined the conspiracy in May 2012.
Specifically, the indictment alleges that the defendants used the personal identity information of clients to submit fraudulent claims to Medicaid and other health care benefits programs for disposable medical supplies that were not delivered to the beneficiary. In addition, the defendants allegedly delivered medical supplies to beneficiaries who did not need the supplies and whose physicians had not prescribed the supplies, even after the beneficiaries reported that they did not want or need the supplies. The indictment alleges that Hightower would sign or have someone else sign delivery tickets when deliveries had not actually taken place so that the records of RXRS would falsely document the delivery. According to the indictment, Hightower provided the forged and fraudulent delivery tickets to RXRS as part of his duties.
The indictment seeks the forfeiture of $900,000, as the proceeds of the offense.
The defendants face a maximum sentence of 10 years in prison for the conspiracy and for health care fraud; and a mandatory two years in prison, consecutive to any other sentence imposed, for aggravated identity theft. An initial appearance was held for all the defendants on June 17, 2015 in U.S. District Court in Baltimore. The defendants were released under the supervision of U.S. Pretrial Services.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
The Medicare Fraud Strike Force operations are part of the Health Care Fraud Prevention & Enforcement Action Team (HEAT), a joint initiative announced in May 2009 between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Since their inception in March 2007, Strike Force operations in nine locations have charged over 2,300 defendants who collectively have falsely billed the Medicare program for over $7 billion.
Today’s enforcement actions resulted in charges against 243 individuals, including 46 doctors, nurses and other licensed medical professionals, as well as the three defendants charged in Maryland, for their alleged participation in Medicare and Medicaid fraud schemes involving approximately $712 million in false billings.
United States Attorney Rod J. Rosenstein praised the HHS-OIG and Baltimore County Police Department for their work in the investigation and thanked the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office and the Maryland Medicaid Fraud Control Unit for their assistance. Mr. Rosenstein thanked Assistant United States Attorneys Sandra Wilkinson and Aaron Zelinsky, who are prosecuting the case.
Nurse Practitioner Indicted for Identity Theft, Defrauding More Than $330,000 in Health Care ServicesRead the Press Release
Jackson, TN – A nurse practitioner has been indicted for forging the signature of a physician on nearly 150 treatment forms, causing Medicare and TennCare to disburse more than $330,000 in payments for unauthorized services.
According to the indictment, from around April 23, 2010 to about June 17, 2014, John Michael Briley unlawfully utilized the identification of a local physician to authorize home health care services for more than 40 individuals. Briley used the physician’s name to order home health care services for Medicare and TennCare recipients 146 times, without the physician’s consent.
Medicare is a federally funded and administered health care program serving people aged 65 and older and others with disabilities. Furthermore, Medicaid is a federal insurance program that provides services to qualifying indigent persons. In Tennessee, the Medicaid program is funded by the federal government and the State of Tennessee, and is referred to as TennCare.
According to the indictment, before Medicare or TennCare can fund home health care services, "Home Health Certifications and Plans of Treatment" forms must be completed. The forms require the signature of a physician as a condition of payment.
Briley is a nurse practitioner, a position not categorized as a physician under federal regulations. Therefore, he forged the signature of a local physician to access home health care services from Medicare and TennCare.
Briley is employed at a private medical practice, Primary Care Specialists-South.
"As the indictment alleges, Briley schemed to defraud the government of health care funding designated for elderly, disabled, and underprivileged citizens," said U.S.
Attorney Edward Stanton III. "We will remain steadfast in working with our law enforcement partners to bring to justice those who seek to cheat the health care system for illegal gain."
"This indictment is part of a national health care fraud takedown which involves cases across the country," said Derrick L. Jackson, Special Agent in Charge of the U.S. Department of Health and Human Services — Office of Inspector General in Atlanta. "The combined effort should assure tax payers that those that steal federal health care dollars will be held accountable for their actions."
Briley has been charged with one count of aggravated identity theft and 146 counts of making false statements in a healthcare-related matter
If convicted, Briley faces a mandatory sentence of two years imprisonment and up to a $250,000 fine for aggravated identity theft. He also faces up to five years imprisonment for each of the 146 counts of making false statements, as well as up to a $250,000 fine.
The case is being investigated by the Department of Health and Human Services — Office of Inspector General and the Federal Bureau of Investigation. Assistant U.S. Attorney Matt Wilson is prosecuting the government’s case.
The charges and allegations contained in the indictment are merely accusations, and the defendant is considered innocent unless and until proven guilty.
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Norwalk Man Charged with Orchestrating Investment Fraud ScamRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JAMES E. NEILSEN, 55, of Norwalk, was arrested today on a criminal complaint charging him with defrauding individual investors out of more than $400,000.
Following his arrest, NEILSEN appeared before U.S. Magistrate Judge William I. Garfinkel in Bridgeport and was ordered detained.
According to statements made in court, it is alleged that NEILSEN defrauded three individuals by convincing them to invest their money with him. Instead of investing funds as promised, NEILSEN used the money to pay other investors and to make various personal expenditures.
The complaint charges NEILSEN with wire fraud, an offense that carries a maximum term of imprisonment of 20 years.
U.S. Attorney Daly stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This ongoing investigation is being conducted by the Federal Bureau of Investigation with valuable assistance from the Greenwich Police Department and the Connecticut Department of Banking.
Citizens with information that may be helpful to this investigation are encouraged to contact the FBI at (203) 333-3512.
The case is being prosecuted by Assistant U.S. Attorney David T. Huang.
North Canton man faces child pornography chargesRead the Press Release
Kenneth J. Smith, 36, of North Canton, was charged with receiving, distributing and possessing visual depictions of minors engaged in sexually explicit conduct, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio.
The Indictment charges that from on or about August 18, 2012, through on or about December 3, 2014, Smith knowingly received and distributed, by computer, numerous computer files, which contained visual depictions of real minors engaged in sexually explicit conduct. On December 9, 2014 and December 12, 2014, images of child pornography were also found on his Blackberry cellular phone, Dell computer, and a Western Digital external hard drive .
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant's role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant United States Attorney Carol M. Skutnik. The case was investigated by the Department of Homeland Security, Cleveland Office.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Nine Sentenced for Funnel Account Conspiracy Relating to Conspiracy to Traffic MarijuanaRead the Press Release
CORPUS CHRISTI, Texas - Six men and three women have now been ordered to federal prison following the sentencing of two more today in a lengthy case which was the result of the efforts of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation dubbed “Operation Prototype,” announced U.S. Attorney Kenneth Magidson.
Those sentenced for crimes relating to this drug trafficking and money laundering conspiracy include Francisco R. Canchola, 39, Antonio Medina-Soto, 24, Efren Amescua, 39, Brenda Amescua, 19, Luz Medina, 36, Carlos Flores, 26, and Maria D. Amescua, 43, all of Mission; Prudencio Villalobos, 45, of Jackson, Ga., and Saul Villanueva-Garcia, 44, of Doraville, Ga.
Today, Canchola received a sentence of 168 months in federal prison, while Villanueva-Garcia was ordered to serve 262 months for their convictions of conspiracy to possess with intent to distribute more than 1000 kilograms of marijuana as well as conspiracy to launder monetary instruments. Both will also serve five years of supervised release.
Medina-Soto was also convicted of those same counts and was previously sentenced to 48 months in prison. The remaining defendants were convicted of conspiracy to launder monetary instruments. Efren Amescua, Medina, Flores, Maria Amescua, and Villalobos were ordered to serve 37, 18, 24, 24, and 36 months, respectively, while Brenda Amescua will serve 12 months and one day.
During the sentencing hearings, evidence was presented regarding the extent of this criminal organization. The was a marijuana and money laundering conspiracy operating between California, Chicago, Ill., Rio Grande Valley as well as Atlanta, Ga. Law enforcement agents identified at least six drug seizures in the United States for which this drug-trafficking organization is responsible. The organization employed the use of sophisticated hidden compartments to transport narcotics into the country. Further, this organization would create multiple fictitious identifications that members used to rent warehouses and residences to store the narcotics until they could be further transported north.
The investigation has revealed at least nine funnel bank accounts that were used by members of the drug trafficking organization to further their activities inside the country. A combined analysis of these accounts has revealed that they were used in a coordinated manner to funnel illicit bulk currency from throughout the country to South Texas. Specifically, between January 2010 and April 2014 more than $1.1 million in cash deposits were made to these bank accounts at locations in Alabama, Florida, North Carolina, Illinois, Indiana, Georgia, Pennsylvania and New York. These interstate U.S. currency deposits were followed by over-the-counter withdrawals and ATM withdrawals at multiple locations in Mission and McAllen.
The investigation leading to the criminal charges was conducted in Corpus Christi lead by the Drug Enforcement Administration, Internal Revenue Service - Criminal Investigation, Homeland Security Investigations, Bureau of Alcohol, Tobacco, Firearms and Explosives, Mission Police Department, U.S. Border Patrol, Customs and Border Protection and the U.S. Marshals Service. Assistant U.S. Attorney Julie K. Hampton is prosecuting the case.
New Orleans man sentenced to 18 months in prison for possessing counterfeit credit cards in VintonRead the Press Release
LAKE CHARLES, La. – United States Attorney Stephanie A. Finley announced today that a New Orleans man was sentenced to 18 months in prison for possessing counterfeit credit cards in order to make illegal purchases.
Izell Mayes, 24, of New Orleans, was sentenced by U.S. District Judge Patricia Minaldi on one count of possession of 15 or more counterfeit or unauthorized access devices. He was also sentenced to three years of supervised release and ordered to pay $1,591 restitution. According to the March 12, 2015 guilty plea, Mayes was riding in a car that was stopped for speeding on February 9, 2014 in Vinton, La. Upon further investigation, the car was searched and 50 counterfeit credit cards in Mayes’ name were found. Forty counterfeit cards under another name were also found in the car. Mayes later confessed to picking up the cards in Houston before traveling to Louisiana. He used the cards in department stores in Houston earlier that day. The last card used was in Baytown, Texas.
The U.S. Secret Service and the ATF investigated the case. Assistant U.S. Attorney Howard C. Parker prosecuted the case.
New Jersey Man Charged with Conspiracy to Provide Material Support to ISILRead the Press Release
A Bergen County, New Jersey, man was charged today with conspiracy to provide material support to the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization, announced Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Paul J. Fishman of the District of New Jersey and Special Agent in Charge Richard M. Frankel of the FBI’s Newark, New Jersey, Division.
Samuel Rahamin Topaz, 21, of Fort Lee, New Jersey, was arrested at his home on June 17, 2015, and is charged by complaint with one count of conspiring with others in New Jersey and New York to provide services and personnel to ISIL. He made his initial appearance this afternoon before U.S. Magistrate Judge Cathy L. Waldor of the District of New Jersey.
“Samuel Topaz is alleged to have conspired with others to travel abroad to provide material support to ISIL,” said Assistant Attorney General Carlin. “Counterterrorism is the National Security Division’s highest priority. Stemming the flow of foreign fighters abroad and prosecuting those who attempt to provide material support to designated foreign terrorist organizations is key to our national security and public safety.”
“Providing fighters and resources to a terrorist organization like ISIL is a threat to our country and its citizens,” said U.S. Attorney Fishman. “We will continue to use all the tools at our disposal to disrupt the efforts of those who are trying to do harm at home and abroad.”
“Material support of a terrorist organization is a violation of federal law,” said Special Agent in Charge Frankel. “Topaz conspired to provide services and personnel to ISIL. Topaz discussed his desire to travel to Syria to join ISIL. Fortunately, this threat did not materialize due to the indefatigable efforts of the FBI’s Joint Terrorism Task Force. Prevention of terrorism is the FBI’s top priority and I ask the citizens of New Jersey to assist us in this task by remaining vigilant and contacting the FBI or the police if they see or hear anything suspicious.”
According to documents filed in this case and statements made in court:
The FBI and the Joint Terrorism Task Force (JTTF) have been investigating a group of individuals from New York and New Jersey who have allegedly conspired to provide material support to ISIL. Conspirator 1 (CC-1) was a resident of Rutherford, New Jersey, until departing the United States on May 5, 2015, allegedly to join ISIL. Conspirator 2 (CC-2) was a resident of Queens, New York, until he was arrested June 13, 2015, in New York on terrorism charges. Conspirator 3 (CC-3) is a resident of New Jersey.
On May 1, 2015, Topaz discussed CC-1’s plan to travel overseas to join ISIL. CC-1 sent Topaz a message stating that he would be leaving in a few days and asked, “[d]id you do what i [sic] advised you to do.” Topaz responded, “I’m saving my money for it bro trust me I got it.” On May 4, 2015, Topaz stated that he had his passport but needed cash to purchase his ticket. CC-2 replied, “My trip is looking months away[.] if u can take a loan out for 5k or even 2.5k then ur [sic] good, they take US dollars in dawla so u can eat and buy stuff, and they provide u with housing when u reach the land of Islam.” Topaz and CC-2 then discussed that they would be reuniting with CC-1 in Turkey before going to the dawla. CC-2 stated that CC-1 would go first, and then they would join him soon thereafter.
On May 21, 2015, Topaz and CC-3 discussed that they needed to “lay low” and refrain from taking action in furtherance of the conspiracy to provide material support to ISIL that might be detected by law enforcement. Topaz also told CC-3 that they need to discuss “hijra” in person. Topaz later told members of the JTTF that he and his conspirators used the term “hijra” (often spelled “hijrah”) to refer to traveling overseas to join ISIL.
On June 13, 2015, CC-2 was arrested by the FBI and charged in a criminal complaint filed with the U.S. District Court of the Eastern District of New York with conspiring to provide material support to ISIL. On June 15, 2015, Topaz wrote to an unidentified individual that CC-2 had not been answering his phone and added, “We gotta leave ASAP.”
The count of conspiracy to provide material support to a designated foreign terrorist organization carries a maximum potential penalty of 15 years in prison and a fine of $250,000.
This case is being investigated by the FBI and JTTF. This case is being prosecuted by Assistant U.S. Attorneys L. Judson Welle, Dennis C. Carletta, and Francisco J. Navarro of the District of New Jersey, with assistance from the National Security Division’s Counterterrorism Section.
The charge and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Topaz Complaint
New Hampshire Man Sentence to 141 Months for a String of Armed RobberiesRead the Press Release
BOSTON – A Salem, N.H. man was sentenced today in U.S. District Court in Boston to 141 months after pleading guilty to committing six armed bank robberies in the Merrimack Valley area in 2013.
Rafael Beamud, Jr., 34, was sentenced today by U.S. District Court Judge Denise J. Casper on six counts of armed robbery and one count of possession of a firearm in furtherance of his crimes.
On Feb. 21, 2013, Beamud walked into a TD Bank in Methuen. He approached a teller, brandishing a firearm, and ordered the teller to empty the cash drawers, making sure there was no “dye pack” put into plastic bags that he provided. Beamud threatened to shoot if an alarm was tripped. The teller placed the money from the drawers into one of the plastic bags and Beamud left the bank, leaving one of the plastic bags behind. The bag was processed for fingerprints which led to Beamud’s identification. He was arrested in April 2013 and he confessed to committing a number of armed robberies across three New England states, including Massachusetts. He is facing additional armed robbery charges in New Hampshire.
The charge of armed robbery provides a sentence of no greater than 25 years in prison, five years supervised release, and $250,000 fine on each count. The charge of brandishing a firearm during the commission of a crime of violence provides for a mandatory minimum term of seven years in prison with no greater than a lifetime in prison, five years of supervised release, and a $250,000 fine. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors. In this case, the parties signed a plea agreement agreeing to incarceration for 141 months to be followed by 5 years of supervised release.
United States Attorney Carmen M. Ortiz and Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. Assistance was also provided by the Drug Enforcement Administration; Salem, N.H., North Andover, Dracut, and Methuen Police Departments; and the Massachusetts State Police. The case was prosecuted by Assistant U.S. Attorney Eve A. Piemonte of Ortiz’s Major Crimes Unit.
National Medicare Fraud Takedown Results in Charges Against 243 Individuals for Approximately $712 Million in False BillingRead the Press Release
Attorney General Loretta E. Lynch and Department of Health and Human Services (HHS) Secretary Sylvia Mathews Burwell announced today a nationwide sweep led by the Medicare Fraud Strike Force in 17 districts, resulting in charges against 243 individuals, including 46 doctors, nurses and other licensed medical professionals, for their alleged participation in Medicare fraud schemes involving approximately $712 million in false billings. In addition, the Centers for Medicare & Medicaid Services (CMS) also suspended a number of providers using its suspension authority as provided in the Affordable Care Act. This coordinated takedown is the largest in Strike Force history, both in terms of the number of defendants charged and loss amount.
Attorney General Lynch and Secretary Burwell were joined in the announcement by FBI Director James B. Comey, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Inspector General Daniel R. Levinson of the HHS Office of Inspector General (HHS-OIG) and Deputy Administrator and Director of CMS Center for Program Integrity Shantanu Agrawal, M.D.
The defendants are charged with various health care fraud-related crimes, including conspiracy to commit health care fraud, violations of the anti-kickback statutes, money laundering and aggravated identity theft. The charges are based on a variety of alleged fraud schemes involving various medical treatments and services, including home health care, psychotherapy, physical and occupational therapy, durable medical equipment (DME) and pharmacy fraud. More than 44 of the defendants arrested are charged with fraud related to the Medicare prescription drug benefit program known as Part D, which is the fastest-growing component of the Medicare program overall.
“This action represents the largest criminal health care fraud takedown in the history of the Department of Justice, and it adds to an already remarkable record of enforcement,” said Attorney General Lynch. “The defendants charged include doctors, patient recruiters, home health care providers, pharmacy owners, and others. They billed for equipment that wasn’t provided, for care that wasn’t needed, and for services that weren’t rendered. In the days ahead, the Department of Justice will continue our focus on preventing wrongdoing and prosecuting those whose criminal activity drives up medical costs and jeopardizes a system that our citizens trust with their lives. We are prepared – and I am personally determined – to continue working with our federal, state, and local partners to bring about the vital progress that all Americans deserve.”
“This Administration is committed to fighting fraud and protecting taxpayer dollars in Medicare and Medicaid,” said Secretary Burwell. “This takedown adds to the hundreds of millions we have saved through fraud prevention since the Affordable Care Act was passed. With increased resources that have allowed the Strike Force to expand and new tools, like enhanced screening and enrollment requirements, tough new rules and sentences for criminals, and advanced predictive modeling technology, we have managed to better find and fight fraud as well as stop it before it starts.”
According to court documents, the defendants participated in alleged schemes to submit claims to Medicare and Medicaid for treatments that were medically unnecessary and often never provided. In many cases, patient recruiters, Medicare beneficiaries and other co-conspirators allegedly were paid cash kickbacks in return for supplying beneficiary information to providers, so that the providers could then submit fraudulent bills to Medicare for services that were medically unnecessary or never performed. Collectively, the doctors, nurses, licensed medical professionals, health care company owners and others charged are accused of conspiring to submit a total of approximately $712 million in fraudulent billing.
“The people charged in this case targeted the system each of us depends on in our most vulnerable moments,” said Director James Comey. “Health care fraud is a crime that hurts all of us and each dollar taken from programs that help the sick and the suffering is one dollar too many.”
“Every day, the Criminal Division is more strategic in our approach to prosecuting Medicare Fraud,” said Assistant Attorney General Caldwell. “We obtain and analyze billing data in real-time. We target hot spots – areas of the country and the types of health care services where the billing data shows the potential for a high volume of fraud – and we are speeding up our investigations. By doing this, we are increasingly able to stop schemes at the developmental stage, and to prevent them from spreading to other parts of the country.”
“Health care fraud drives up health care costs, wastes taxpayer money, undermines the Medicare and Medicaid programs, and endangers program beneficiaries,” said Inspector General Levinson. “Today’s takedown includes perpetrators of prescription drug fraud, home health care fraud, and personal care services fraud, three particularly harmful types of fraud plaguing our health care system. This record-setting takedown sends a message to would-be perpetrators that health care fraud is a risky way to line your pockets. Our agents and our law enforcement partners stand ready to protect these vital programs and ensure that those who would steal from federal health care programs ultimately pay for their crimes.”
The Medicare Fraud Strike Force operations are part of the Health Care Fraud Prevention & Enforcement Action Team (HEAT), a joint initiative announced in May 2009 between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Since their inception in March 2007, Strike Force operations in nine locations have charged over 2,300 defendants who collectively have falsely billed the Medicare program for over $7 billion.
Including today’s enforcement actions, nearly 900 individuals have been charged in national takedown operations, which have involved more than $2.5 billion in fraudulent billings. Today’s announcement marks the first time that districts outside of Strike Force locations participated in a national takedown, and they accounted for 82 defendants charged in this takedown.
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In Miami, a total of 73 defendants were charged with offenses relating to their participation in various fraud schemes involving approximately $263 million in false billings for home health care, mental health services and pharmacy fraud. In one case, administrators in a mental health center billed close to $64 million between 2006 and 2012 for purported intensive mental health treatment to beneficiaries and allegedly paid kickbacks to patient recruiters and assisted living facility owners throughout the Southern District of Florida. Medicare paid approximately half of the claimed amount.
In Houston and McAllen, Texas, 22 individuals were charged in cases involving over $38 million in alleged fraud. One of these defendants allegedly coached beneficiaries on what to tell doctors to make them appear eligible for Medicare services and treatments and then received payment for those who qualified. The company that paid the defendant for patients submitted close to $16 million in claims to Medicare, over $4 million of which was paid.
In Dallas, seven people were charged in connection with home health care schemes. In one scheme, six owners and operators of a physician house call company submitted nearly $43 million in billings under the name of a single doctor, regardless of who actually provided the service. The company also significantly exaggerated the length of physician visits, often times billing for 90 minutes or more for an appointment that lasted only 15 or 20 minutes.
In Los Angeles, eight defendants were charged for their roles in schemes to defraud Medicare of approximately $66 million. In one case, a doctor is charged with causing almost $23 million in losses to Medicare through his own fraudulent billing and referrals for DME, including over 1000 expensive power wheelchairs and home health services that were not medically necessary and often not provided.
In Detroit, 16 defendants face charges for their alleged roles in fraud, kickback and money laundering schemes involving approximately $122 million in false claims for services that were medically unnecessary or never rendered, including home health care, physician visits, and psychotherapy, as well as pharmaceuticals that were billed but not dispensed. Among these are three owners of a hospice service who allegedly paid kickbacks for referrals made by two doctors who defrauded Medicare Part D by issuing medically unnecessary prescriptions.
In Tampa, five individuals were charged with participating in a variety of schemes, ranging from fraudulent physical therapy billings to a scheme involving millions in physician services and tests that never occurred. In one case, a licensed pain management physician sought reimbursement for nerve conduction studies and other services that he allegedly never performed. Medicare paid the defendant over $1 million for these purported services.
In Brooklyn, N.Y., nine individuals were charged in two separate criminal schemes involving physical and occupational therapy. In one case, three individuals face charges for their roles in a previously charged $50 million physical therapy scheme. In the second case, six defendants were charged for their roles in a $8 million physical and occupational therapy scheme.
In New Orleans, 11 people were charged in connection with $110 million in home health care and psychotherapy schemes. In one case, four individuals who operated two companies – one in Louisiana and one in California – that mass-marketed talking glucose monitors (TGMs) across the country allegedly sent TGMs to Medicare beneficiaries regardless of whether they were needed or requested. The companies billed Medicare approximately $38 million for the devices and Medicare paid the companies over $22 million.
The cases announced today are being prosecuted and investigated by Medicare Fraud Strike Force teams from the Fraud Section of the Justice Department’s Criminal Division and from the U.S. Attorney’s Offices of the Southern District of Florida, Eastern District of Michigan, Eastern District of New York, Southern District of Texas, Central District of California, Eastern District of Louisiana, Northern District of Texas, Northern District of Illinois and the Middle District of Florida; and agents from the FBI, HHS-OIG and state Medicaid Fraud Control Units.
In addition to the Strike Force, today’s enforcement actions include cases brought by the U.S. Attorney’s Offices of the Southern District of California, Southern District of Illinois, Northern District of Ohio, Western District of Kentucky, District of Maryland, District of Connecticut, District of Alaska and the Southern District of Georgia.
A complaint or indictment is merely a charge, and defendants are presumed innocent until proven guilty.
The court documents for each case will posted online, as they become available, here: http://www.justice.gov/opa/documents-and-resources-june-2015-medicare-fraud-strike-force-press-conference.
The Affordable Care Act has provided new tools and resources to fight fraud in federal health care programs. The law provides an additional $350 million for health care fraud prevention and enforcement efforts, which has allowed the Justice Department to hire more prosecutors and the Strike Force to expand from two cities to nine. It also toughens sentencing for criminal activity, enhances provider and supplier screenings and enrollment requirements, and encourages increased sharing of data across government.
In addition to providing new tools and resources to fight fraud, the Affordable Care Act clarified that for sentencing purposes, the loss is determined by the amount billed to Medicare and increased the sentencing guidelines for the billed amounts, which has provided a strong deterrent effect due to increased prison time, particularly in the most egregious cases.
Morgantown woman convicted of arsonRead the Press Release
CLARKSBURG, WEST VIRGINIA – Sarah Beth Meckley, 33, of Morgantown, West Virginia, was convicted today of arson, United States Attorney William J. Ihlenfeld, II, announced.
In May 2014, Meckley maliciously damaged and destroyed by means of fire and explosive materials the Chateau Royale Apartment Complex in Morgantown.
Meckley pled guilty today to a criminal Information charging her with one count of “Arson of a Building Used in Interstate Commerce.” She faces between five and twenty 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 Andrew Cogar prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the West Virginia State Fire Marshal investigated.
U.S. District Judge Irene M. Keeley presided.
Montana Drug Operation Convicts 20 Defendants, Seizes 25 Guns and More Than Half a Million Dollars in MethRead the Press Release
GREAT FALLS – The U.S. Attorney’s Office announces today the completion of a Montana operation that convicted 20 defendants for methamphetamine, firearm and money laundering charges, resulting in the seizure of more than half a million dollars worth of meth. Operation Highline Crystal Highway joined more than a dozen law enforcement agencies in Montana and California and resulted in the seizure of an estimated 13 pounds of meth, and also identified another estimated 50 pounds of meth involved in the drug conspiracy. Law enforcement also seized 25 guns as part of the operation. The guns were either traded directly for meth or traded as payment for debt owed for meth. The defendants are also responsible for a monetary judgment totaling approximately $2.4 million for the money gained from the methamphetamine trafficking conspiracy, which includes nearly $56,000 in money laundering proceeds.
“This multi-agency collaboration is a testament to the power of strength in numbers,” said U.S. Attorney Michael W. Cotter of the District of Montana. “This operation dismantled an acute and violent threat to the people of Great Falls, Montana, and surrounding communities and I am pleased to announce the conviction of the 20th defendant in this operation.”
“It was a great investigative effort between local, state and federal agencies targeting a very significant drug distribution network in the Great Falls area and a Mexican source of supply based in California,” said Resident Agent in Charge Joe Kirkland of the Drug Enforcement Administration (DEA). “By dismantling a criminal organization of this size, the task force has had a huge impact on the distribution of methamphetamine in Montana.”
The 20th defendant who was sentenced today in Great Falls was Joshua Alberto Rodriguez, 29, of Los Angeles, California. He was sentenced after pleading guilty to crimes involving methamphetamine, firearm and money laundering conspiracies. U.S. District Court Judge Brian Morris of the District of Montana sentenced Rodriguez to over 22 years in prison, followed by five years supervised release. The court also ordered that Rodriguez was liable, along with the other defendants, for approximately $2.4 million in proceeds and nearly $56,000 in money laundering proceeds.
Operation Highline Crystal Highway is a major, multi-agency drug investigation first launched in late 2013. Law enforcement discovered a large-scale drug and firearm trafficking organization in north central Montana and beyond, which included suppliers out of Los Angeles, routinely bringing pounds of meth to Great Falls. Once in Great Falls, the meth would be distributed in Great Falls, Havre, Montana and Butte, Montana. In the final arrest that took place outside a Great Falls restaurant, law enforcement found one defendant with a loaded 9 mm semi-automatic pistol in his waistband, as well as a loaded .40 caliber, semi-automatic pistol in one of the take out bags with approximately 70 rounds of ammunition. Agents also seized approximately five pounds of meth from the defendant’s hotel room. The DEA tested the meth and its purity level was 100 percent. Meth seized during earlier parts of the operation also resulted in extremely high purity levels—ranging from 97 to 100 percent.
Law enforcement seized 25 guns, 19 of which were handguns and monetary judgments against defendants totaling approximately $2.4 million. Based on evidence collected during the investigation, other guns discussed by defendants or used in trade for drugs, but not recovered, included the FN Five Seven (referred to as the “Cop Killer”), AR-15 and AK-47. These weapons were likely attractive to this group because they are capable of piercing body armor. A large-caliber handgun, the Desert Eagle .50 caliber pistol, was also seized.
“These convictions serve to put criminals on notice that if you bring illegal drugs into this community, we will employ whatever means necessary to find you and bring you to justice, wherever you are,” said Police Chief David Bowen of the Great Falls Police Department.
To assist in investigating the Great Falls meth influx, law enforcement began to use a variety of investigative techniques, including physical surveillance, obtaining phone records, financial documents and search warrants in order to ascertain the location information on cellular phones and vehicles and utilizing undercover agents to infiltrate the organization. Over the course of the investigation, agents obtained 49 search warrants and a wiretap to monitor phone calls and the location of suspects.
A Montana grand jury ultimately indicted 20 defendants responsible for the drug trafficking organization. Nineteen of the defendants pleaded guilty and one was convicted at trial.
The case was prosecuted by Assistant U.S. Attorneys Jessica Betley and Tara Elliott of the District of Montana. The case was investigated by the Russell County, Montana, Drug Task Force, which includes representation from the Great Falls Police Department, Cascade County, Montana, Sheriff’s Office, Teton County, Montana, Sheriff’s Office, the DEA, U.S. Border Patrol, Homeland Security Investigations and the Bureau of Alcohol, Tobacco and Firearms. The task force also collaborated with the Havre Tri-Agency Task Force, IRS, the Montana Division of Criminal Investigation, Montana National Guard Counter Drug Task Force, the California Highway Patrol and the Orange County, California, Sheriff’s Office.
Montana Drug Operation Convicts 20 Defendants, Seizes 25 Guns and More Than Half a Million Dollars in MethRead the Press Release
The U.S. Attorney’s Office announces today the completion of a Montana operation that convicted 20 defendants for methamphetamine, firearm and money laundering charges, resulting in the seizure of more than half a million dollars worth of meth. Operation Highline Crystal Highway joined more than a dozen law enforcement agencies in Montana and California and resulted in the seizure of an estimated 13 pounds of meth, and also identified another estimated 50 pounds of meth involved in the drug conspiracy. Law enforcement also seized 25 guns as part of the operation. The guns were either traded directly for meth or traded as payment for debt owed for meth. The defendants are also responsible for a monetary judgment totaling approximately $2.4 million for the money gained from the methamphetamine trafficking conspiracy, which includes nearly $56,000 in money laundering proceeds.
“This multi-agency collaboration is a testament to the power of strength in numbers,” said U.S. Attorney Michael W. Cotter of the District of Montana. “This operation dismantled an acute and violent threat to the people of Great Falls, Montana, and surrounding communities and I am pleased to announce the conviction of the 20th defendant in this operation.”
“It was a great investigative effort between local, state and federal agencies targeting a very significant drug distribution network in the Great Falls area and a Mexican source of supply based in California,” said Resident Agent in Charge Joe Kirkland of the Drug Enforcement Administration (DEA). “By dismantling a criminal organization of this size, the task force has had a huge impact on the distribution of methamphetamine in Montana.”
The 20th defendant who was sentenced today in Great Falls was Joshua Alberto Rodriguez, 29, of Los Angeles, California. He was sentenced after pleading guilty to crimes involving methamphetamine, firearm and money laundering conspiracies. U.S. District Court Judge Brian Morris of the District of Montana sentenced Rodriguez to over 22 years in prison, followed by five years supervised release. The court also ordered that Rodriguez was liable, along with the other defendants, for approximately $2.4 million in proceeds and nearly $56,000 in money laundering proceeds.
Operation Highline Crystal Highway is a major, multi-agency drug investigation first launched in late 2013. Law enforcement discovered a large-scale drug and firearm trafficking organization in north central Montana and beyond, which included suppliers out of Los Angeles, routinely bringing pounds of meth to Great Falls. Once in Great Falls, the meth would be distributed in Great Falls, Havre, Montana and Butte, Montana. In the final arrest that took place outside a Great Falls restaurant, law enforcement found one defendant with a loaded 9 mm semi-automatic pistol in his waistband, as well as a loaded .40 caliber, semi-automatic pistol in one of the take out bags with approximately 70 rounds of ammunition. Agents also seized approximately five pounds of meth from the defendant’s hotel room. The DEA tested the meth and its purity level was 100 percent. Meth seized during earlier parts of the operation also resulted in extremely high purity levels—ranging from 97 to 100 percent.
Law enforcement seized 25 guns, 19 of which were handguns and monetary judgments against defendants totaling approximately $2.4 million. Based on evidence collected during the investigation, other guns discussed by defendants or used in trade for drugs, but not recovered, included the FN Five Seven (referred to as the “Cop Killer”), AR-15 and AK-47. These weapons were likely attractive to this group because they are capable of piercing body armor. A large-caliber handgun, the Desert Eagle .50 caliber pistol, was also seized.
“These convictions serve to put criminals on notice that if you bring illegal drugs into this community, we will employ whatever means necessary to find you and bring you to justice, wherever you are,” said Police Chief David Bowen of the Great Falls Police Department.
To assist in investigating the Great Falls meth influx, law enforcement began to use a variety of investigative techniques, including physical surveillance, obtaining phone records, financial documents and search warrants in order to ascertain the location information on cellular phones and vehicles and utilizing undercover agents to infiltrate the organization. Over the course of the investigation, agents obtained 49 search warrants and a wiretap to monitor phone calls and the location of suspects.
A Montana grand jury ultimately indicted 20 defendants responsible for the drug trafficking organization. Nineteen of the defendants pleaded guilty and one was convicted at trial.
The case was prosecuted by Assistant U.S. Attorneys Jessica Betley and Tara Elliott of the District of Montana. The case was investigated by the Russell County, Montana, Drug Task Force, which includes representation from the Great Falls Police Department, Cascade County, Montana, Sheriff’s Office, Teton County, Montana, Sheriff’s Office, the DEA, U.S. Border Patrol, Homeland Security Investigations and the Bureau of Alcohol, Tobacco and Firearms. The task force also collaborated with the Havre Tri-Agency Task Force, IRS, the Montana Division of Criminal Investigation, Montana National Guard Counter Drug Task Force, the California Highway Patrol and the Orange County, California, Sheriff’s Office.
Modesto Real Estate Attorney Indicted on Fraud Charges in a Short Sale SchemeRead the Press Release
FRESNO, Calif. — Robert Farrace, 51, of Modesto, was indicted today on three counts of wire fraud in connection with a fraudulent short-sale scheme, United States Attorney Benjamin B. Wagner announced.
According to the indictment, Farrace was an attorney specializing in real estate transactions. He owned two investment properties in Modesto with substantial mortgage loans. In early 2010, he received foreclosure notices for the two properties. Farrace then created an entity called “Dignitas LLC” that he controlled but used a friend’s name as the company’s registered agent to conceal his control. Through Dignitas, Farrace submitted short sale offers to the bank that serviced the loans on both properties. During the process, Farrace misrepresented his relationship with Dignitas, and because the servicing bank did not know of the true relationship, it went forward and completed one of the short sales. The other sale was stopped by law enforcement and the bank.
This case is the product of an investigation by the Federal Housing Finance Agency–Office of Inspector General, the Federal Bureau of Investigation, and the Stanislaus County District Attorney’s Office. Assistant United States Attorney Michael G. Tierney is prosecuting the case.
If convicted, Farrace faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory sentencing factors and the Federal Sentencing Guidelines, which take into account a number of variables.
The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Miami Dade Police Department Detective Charged with Civil Rights Offenses for Stealing Property from Motorists and Obstructing JusticeRead the Press Release
Today, the Justice Department announced that a grand jury in the Southern District of Florida charged Miami Dade Police Department (MDPD) Detective William Kostopoulos, 47, with using his law enforcement authority to violate motorists’ civil rights.
The indictment charges Kostopoulos with making traffic stops of three motorists in order to steal their money and property, in violation of the motorists’ rights under the Fourth Amendment of the U.S. Constitution to be free from unreasonable seizures of their property. The indictment also charges Kostopoulos with making misleading statements in order to prevent the communication of information about his alleged crimes to federal law enforcement officers.
This case is being investigated by the Federal Bureau of Investigation (FBI), with assistance from the Homestead, Florida, Police Department. The matter is being prosecuted by Special Litigation Counsel Gerard Hogan and Trial Attorney Samantha Trepel of the Civil Rights Division as well as Assistant U.S. Attorney Tonya Long of the Southern District of Florida.
An indictment is a formal accusation of criminal conduct, not evidence of guilt. The defendant is presumed innocent unless proven guilty.
Miami Dade Police Department Detective Charged with Civil Rights Offenses for Stealing Property from Motorists and Obstructing JusticeRead the Press Release
Today, the Justice Department announced that a grand jury in the Southern District of Florida charged Miami Dade Police Department (MDPD) Detective William Kostopoulos, 47, with using his law enforcement authority to violate motorists’ civil rights.
The indictment charges Kostopoulos with making traffic stops of three motorists in order to steal their money and property, in violation of the motorists’ rights under the Fourth Amendment of the U.S. Constitution to be free from unreasonable seizures of their property. The indictment also charges Kostopoulos with making misleading statements in order to prevent the communication of information about his alleged crimes to federal law enforcement officers.
This case is being investigated by the Federal Bureau of Investigation (FBI), with assistance from the Homestead, Florida, Police Department. The matter is being prosecuted by Assistant U.S. Attorney Tonya Long of the Southern District of Florida, Special Litigation Counsel Gerard Hogan and Trial Attorney Samantha Trepel of the Civil Rights Division.
An indictment is a formal accusation of criminal conduct, not evidence of guilt. The defendant is presumed innocent unless proven guilty.
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.
Mexican Nationals Indicted for Forest Marijuana Cultivation OperationRead the Press Release
FRESNO, Calif. — A federal grand jury returned a four-count indictment today against Antonio Garcia-Villa (Garcia), 46, and Uriel Silva-Garcia (Silva), both Mexican nationals, charging them with conspiring to manufacture, distribute and possess with intent to distribute, manufacturing, and possessing with intent to distribute marijuana in connection with a large-scale cultivation operation in the Sequoia National Forest, United States Attorney Benjamin B. Wagner announced. The men were also charged with damaging public land and natural resources as a result of cultivating marijuana near Little Poso Creek, which drains into the Kern National Wildlife Refuge.
According to court documents, Garcia and Silva were found at the cultivation site in May 2015. Agents removed 8,596 marijuana plants from the site, along with pesticides, fertilizer, trash, water lines, and equipment. The cultivation activities caused extensive damage to the land and natural resources. Native trees and plants were cut down and steep hillsides were terraced to plant the marijuana.
This case is the product of an investigation by the U.S. Forest Service, Kern County Sheriff’s Office, and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant United States Attorney Karen Escobar is prosecuting the case.
Garcia and Silva are in custody and are scheduled for arraignment on the indictment on June 24, 2015, in federal court in Fresno. If convicted of the drug offenses, the men face a statutory penalty of 10 years to life in prison and a $10 million fine. If convicted of the environmental crime, the men face a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Meth Dealer Sentenced in Federal CourtRead the Press Release
United States Attorney Kenyen R. Brown of the Southern District of Alabama announced that Thomas Jason Strickland, 33, of Wilmer, Alabama, was sentenced in federal court today to 10 years imprisonment for his involvement in a conspiracy to possess with intent to distribute methamphetamine ice. Strickland pled guilty to the charge in September of 2014.
At the sentencing hearing this afternoon before United States District Court Judge Callie V. S. Granade, Strickland produced evidence that he suffered from chronic depression since his teenage years, which was exacerbated by his long-term drug abuse. Judge Granade imposed the 10-year sentence, which will be followed by a five-year term of supervised release. The judge ordered as a condition of his supervision that he receive mental health counseling and treatment as deemed necessary by the probation office. The judge did not impose a fine, but ordered that Strickland pay a $100 special mandatory assessment.
The case was investigated by the Mobile County Sheriff’s Office and the Department of Homeland Security Investigations. It was prosecuted in the United States Attorney’s Office by Gloria A. Bedwell.
Men Charged in $3.5 Million Grant Fraud SchemeRead the Press Release
LAS VEGAS, Nev. – Three Las Vegas men have been indicted by the federal grand jury on charges that they fraudulently obtained more than $3.5 million from small business owners for grant funding and services which were never provided and never intended to be provided, announced U.S. Attorney Daniel G. Bogden for the District of Nevada and Laura A. Bucheit, Special Agent in Charge of the FBI for Nevada.
Michael Jones, 35, Jason Demko, 38, and Mike Guariglia, 47, all of Las Vegas, are charged with one count of conspiracy to commit mail fraud and wire fraud, four counts of wire fraud, and criminal forfeiture. They are scheduled to appear before U.S. Magistrate Judge Cam Ferenbach at 3:00 p.m. today for an initial appearance and arraignment.
“Advance fee fraud schemes are common and perpetrated for the sole purpose of enriching the fraudsters,” said U.S. Attorney Bogden. “We are currently prosecuting a number of these cases in which the defendants prey on unsuspecting business owners who are seeking grants for their businesses. If you think you have been victimized by persons committing this sort of crime, please contact the FBI.”
“These indictments highlight the FBI’s unrelenting commitment to investigate financial crimes and serve as a reminder for consumers to be vigilant and protect themselves,” said Special Agent in Charge Bucheit.
According to the indictment, from about December 2010 to the spring of 2013, the defendants and their coconspirators allegedly induced small business owners to give them money in exchange for services, such as business plans and other paperwork that would help them obtain grant funding. The defendants knew that the services were not necessary or likely to produce grants, and knew that the true purpose of the money was to personally enrich the defendants. The defendants and coconspirators received numerous complaints from the clients. In order to prevent and delay the clients from reporting them to law enforcement, the defendants made false promises and representations, told them their funding was forthcoming, operated under several business names, including Summit Business Consultants Inc., Inner Circle Corporation LLC, Sierra Investment Group, Inc. and Valley Business Development, and changed the physical locations of the businesses. Using this fraud scheme, the defendants allegedly fraudulently obtained more than $3.5 million from the victims.
If convicted, the defendants face a maximum of 20 years in prison and a $250,000 fine on all counts.
The case is being investigated by the FBI, and prosecuted by Assistant U.S. Attorney Sarah E. Griswold.
This prosecution is part of efforts underway by President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets and recover proceeds for victims of financial crimes. For more information about the task force visit: www.stopfraud.com.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Member of Pima Salt River Tribe Pleads Guilty in New Mexico to Federal Child Sexual Abuse ChargeRead the Press Release
ALBUQUERQUE – Patrick Watuema, 55, an enrolled member of the Pima Salt River Tribe in Ariz., pleaded guilty this morning to a felony information charging him with aggravated sexual abuse. Under the terms of his plea agreement, Watuema will be sentenced to ten years in federal prison followed by a term of supervised release to be determined by the court. Watuema also will be required to register as a sex offender.
Watuema was arrested on May 5, 2014, on a criminal complaint alleging that he engaged in a sexual act with a child who had not attained the age of 12 years. Watuema subsequently was indicted on May 21, 2014, on an aggravated sexual abuse charge. According to court filings, Watuema sexually assaulted a six-year-old Navajo child on April 30, 2014, in To’hajiilee, N.M., which is located in the Navajo Indian Reservation.
In entering his guilty plea, Watuema admitted sexually assaulting the six-year-old child victim on April 30, 2014. He also admitted to having unlawful sexual contact with the child victim on other occasions. Watuema acknowledged that the victim was under the age of 12 years at the time he committed the offense.
Watuema has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled.
This case was investigated by the Albuquerque Office of the FBI with assistance from Albuquerque Sexual Assault Nurse Examiners (SANE) at the University of New Mexico Hospital, and is being prosecuted by Assistant U.S. Attorney Elaine Y. Ramirez.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Media Firm Owner Sentenced to 135 Months in Prison in Scheme to Defraud Louisiana Car DealershipsRead the Press Release
A Louisiana media firm owner was sentenced yesterday to 135 months in prison for orchestrating an elaborate $1.2 million scheme to bill car dealerships in the Baton Rouge, Louisiana, and New Orleans areas for fictitious advertising services.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney J. Walter Green of the Middle District of Louisiana and Special Agent in Charge Jerome R. McDuffie of the IRS-Criminal Investigation (IRS-CI) New Orleans Field Office made the announcement.
Raymond C. Reggie, 52, of Mandeville, Louisiana, pleaded guilty on Oct. 27, 2014, to five counts of wire fraud. Some of the conduct to which Reggie pleaded guilty he committed while on supervised release from a prior fraud conviction. In addition to imposing the prison sentence, U.S. District Court Judge Shelly D. Dick of the Middle District of Louisiana ordered Reggie to pay $1,217,657 in restitution, and to forfeit the same amount.
Reggie owned and operated Nexlevel Group, a firm that purchased and managed advertising for car dealerships in Southeast Louisiana. According to admissions made in connection with his guilty plea, Reggie billed the dealerships for fictitious advertising expenses, falsely representing that such expenses were actually incurred. Reggie admitted that once the dealerships issued the checks for the bogus expenses, he diverted the funds for his personal use and enjoyment. In total, the car dealerships issued 138 checks for more than $1.2 million for fictitious advertising services.
This case was investigated by the IRS-CI New Orleans Field Office. The case was prosecuted by Senior Litigation Counsel Jack Patrick of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Rene Salomon and Ryan Crosswell of the Middle District of Louisiana.
Massachusetts Man and Rhode Island Man Indicted for Conspiracy to Provide Support to Islamic StateRead the Press Release
BOSTON – David Daoud Wright, a/k/a Dawud Sharif Wright, a/k/a Dawud Sharif Abdul Wright, a/k/a Dawud Sharif Abdul Khaliq, 25, of Everett, Mass. and Nicholas Alexander Rovinski, a/k/a Nuh Amriki, a/k/a Nuh al Andalusi, 24, of Warwick, R.I., were indicted today on a charge of conspiracy to provide material support to the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization. Wright was also charged with conspiracy to obstruct justice and with obstruction of justice. On June 12, 2015, Wright and Rovinski were charged in a criminal complaint with conspiracy to provide material support to ISIL. Wright had previously been charged on June 3, 2015, with conspiracy to obstruct justice. Both men have been detained since their respective arrests, and a detention hearing is scheduled for both men on Friday, June 19, 2015, at 2:00 p.m.
Wright and Rovinski are alleged to have conspired with each other, with known and unknown co-conspirators, and also with Usaamah Abdullah Rahim, 26, Wright’s uncle, who lived in Roslindale until his death on June 2, 2015. Rahim was shot and killed after he attacked Boston Police Officers and FBI agents in a Roslindale parking lot. The indictment charges that Wright, Rovinski, and Rahim agreed to a plan to commit attacks and kill persons inside the United States, which they believed would support ISIL’s objectives. The indictment further charges that the attack plan included the beheading of at least one person, a New York woman, whom ISIL had identified for murder through a “fatwah,” or religious decree, to ISIL supporters.
The charge of conspiracy to provide material support provides a sentence of no greater than 15 years in prison, a lifetime of supervised release, and a fine of $250,000. The charge of conspiracy to obstruct justice provides a sentence of no greater than five years in prison, three years of supervised release, and a fine of $250,000. The charge of obstruction of justice provides a sentence of no greater than 20 years in prison, three years of supervised release, and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and Vincent Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement.
This investigation is being conducted by the Boston Joint Terrorism Task Force and the Rhode Island Joint Terrorism Task Force with critical assistance from the Rhode Island State Police, the Warwick, R.I. Police Department, the Rhode Island Fusion Center, the Boston Police Department, the Boston Regional Intelligence Center, the Massachusetts State Police, the Commonwealth Fusion Center, the Everett Police Department, Homeland Security Investigations, the Naval Criminal Investigative Service, and member agencies of the JTTF. This case is being prosecuted by Assistant U.S. Attorneys B. Stephanie Siegmann and Nadine Pellegrini of Ortiz’s Anti-Terrorism and National Security Unit.
The details contained in the charging documents are allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in the court of law.
Marijuana Cultivator Indicted for Growing Marijuana in Mendocino National Forest and Environmental DestructionRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a two-count indictment today against Pablo Barreto-Cruz, 40, of Michoacán, Mexico, charging him with marijuana cultivation and depredation of public lands and resources, United States Attorney Benjamin B. Wagner announced.
According to court documents, law enforcement conducted a month-long investigation of a suspected drop point for a marijuana grow in the Mendocino National Forest in Glenn County. On May 12, agents encountered Barreto-Cruz on a remote Forest Service road near the suspected drop point. Close by, investigators discovered nearly 3,000 marijuana plants and a camp area.
A Forest Service fisheries biologist estimated that the resource damage, rehabilitation, and repair of the site would cost far more than $1,000. The report concluded that the marijuana grow represented a threat to water quality and aquatic resources due to their use of fertilizer and pesticides that will likely reach water in the wet winter months. Further, the report noted that the chemicals at the site include labeled fertilizers, labeled rodenticides and unlabeled pink powder believed to be a toxic pesticide (carbofuran).
This case is the product of an investigation by the U.S. Forest Service and the Glenn County Sheriff’s Office. Assistant United States Attorney Christiaan Highsmith is prosecuting the case.
If convicted, Barreto-Cruz faces a minimum statutory penalty of five years in prison, a maximum statutory penalty of 40 years in prison and a $5 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Mansfield man indicted for sale of counterfeit prescription pillsRead the Press Release
A grand jury returned a two-count indictment charging a Mansfield man with crimes related to the purchase and sale of counterfeit prescription drugs, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio.
Tamacio Walls, 23, was indicted on one count of introducing misbranded drugs into interstate commerce and one count of trademark violations.
Walls purchased, warehoused, dispensed and offered for sale, counterfeit versions of Viagra (active ingredient Sildenafil), Cialis (active ingredient Tadalafil) and Levitra (active ingredient Vardenafil) to consumers without requiring consumers to provide any form of prescription from a licensed medical practitioner, as required by law, according to the indictment.
The indictment also charges that Walls did not inform consumers that said drugs were prescription drugs and that they should seek medical advice before consuming the drugs, and that Walls failed to provide any warnings to consumers concerning potential dangers associated with taking the drugs. Walls obtained the drugs from unauthorized sources in China and India. The customs declarations for the shipments to Walls typically misrepresented the package contents in an attempt to avoid detection and seizure by U.S. Customs officials, according to the indictment.
Walls intentionally trafficked in and attempted to traffic in goods, specifically counterfeit Viagra pills, while knowingly using on or in connection with said items certain counterfeit trademarks such as pill color, pill shape and other identifying characteristics which were identical to, or substantially indistinguishable from marks that were in use and registered for Viagra with the U.S. Patent and Trademark Office, and the use of which was likely to cause confusion or mistake, and which was likely to deceive others, according to the indictment.
If convicted, the sentence in this case will be determined by the court after consideration of the federal sentencing guidelines which depend upon a number of factors unique to each case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the unique characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The case is being prosecuted by Assistant U.S. Attorney Robert W. Kern, following an investigation by the Department of Homeland Security and the United States Postal Inspection Service.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Manhattan U.S. Attorney Announces Return to Brazil of Two Masterpieces Linked to Bank FraudRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Deputy Special Agent in Charge Michael Shea of U.S. Immigration and Customs Enforcement’s (“ICE”) Homeland Security Investigations New England, announced today that a painting by Jean-Michel Basquiat called “Hannibal” (the “Basquiat”), as well as a Roman Togatus statue, were returned to Brazil at a repatriation ceremony at the United States Attorney’s Office in Manhattan, New York. The painting and the statue were smuggled into the United States in violation of customs law and were forfeited to the government as a result of civil forfeiture action brought by the United States.
Manhattan U.S. Attorney Preet Bharara stated: “Art and antiquities have special value and meaning that cannot readily be quantified. As a result, they have long been the subject of theft and deception, as well as a means to launder illicit proceeds. Art should serve to inspire the mind and nourish the soul, and not be allowed to become a conduit for crime.”
HSI Deputy Special Agent in Charge Michael Shea stated: "It is always a pleasure to return cultural artifacts to the people of another nation. I would like to thank our special agents and partners at INTERPOL for their diligence in this investigation. ICE will do everything in its power to help preserve and safeguard a nation's history by identifying, locating, and recovering stolen antiquities."
In related repatriation ceremonies held on September 21, 2010, and May 9, 2014, the U.S. Attorney’s Office for the Southern District of New York returned to Brazil three paintings – “Modern Painting with Yellow Interweave” by Roy Lichtenstein (the “Lichtenstein”), “Figures dans une structure” by Joaquin Torres-Garcia (the “Torres-Garcia”), and “Composition abstraite” by Serge Poliakoff (the “Poliakoff”) – that were smuggled into the United States.
The Basquiat and the Togatus once belonged to Brazilian banker Edemar Cid Ferreira. Ferreira, the founder and former president of Banco Santos, S.A. (“Banco Santos”), was convicted in Brazil of crimes against the national financial system and money laundering. In December 2006, Ferreira was sentenced in Brazil to 21 years in prison.
As part of the case, a Sao Paulo Court judge also ordered the search, seizure, and confiscation of assets that Ferreira, his associates, and members of his family had acquired with unlawfully obtained funds from Banco Santos. Those assets included the Basquiat, the Togatus, the Lichtenstein, the Torres-Garcia, the Poliakoff, and other artwork valued at $20 million to $30 million. The artwork was kept in several locations, including Ferreira’s home in the Morumbi neighborhood of Sao Paulo, the main offices of Banco Santos, and at a holding facility. When Brazilian authorities searched these locations, they found that several of the most valuable works of art were missing, including the Basquiat and the Togatus.
The Sao Paulo Court sought INTERPOL’s assistance after searching museums and institutions in Brazil for the missing artwork. In October and November 2007, INTERPOL and the Government of Brazil sought the assistance of the United States to locate and seize the missing works on behalf of the Brazilian government. The ensuing Southern District of New York and HSI investigation revealed that the Basquiat and the Togatus were shipped from the Netherlands to a secure storage facility in New York on August 21, 2007, and September 11, 2007, respectively. The invoices, however, failed to comply with U.S. customs laws in a number of respects. For example, the shipping invoices did not identify the pieces and falsely claimed that their value was $100 each. In fact, the Basquiat alone was recently appraised at $8 million.
HSI special agents based in New Haven, Connecticut, located and seized the Basquiat in November 2007, and the U.S. Attorney’s Office for the Southern District of New York filed a civil forfeiture Complaint alleging that the Basquiat had been brought into the United States illegally. Since the filing of the original Complaint in February 2008, the United States seized additional works of art and filed two amended Complaints seeking the forfeiture of the Lichtenstein, the Torres-Garcia, the Poliakoff, and the Togatus.
After extensive litigation, United States District Court Judge Richard J. Sullivan granted the government’s motion for summary judgment and entered an order forfeiting the Basquiat and the Togatus on May 10, 2013. The Second Circuit Court of Appeals affirmed Judge Sullivan’s order on September 9, 2014.
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Mr. Bharara praised the investigative work of HSI in helping to locate and seize the painting. He was grateful for the assistance of the Department of Justice’s Office of International Affairs. Mr. Bharara thanked Brazilian authorities for their assistance in the case. He also acknowledged the assistance of the U.S. Department of State and the U.S. Embassy in Brazil for its assistance in the investigation.
The case is being handled by the Money Laundering and Asset Forfeiture Unit of the U.S. Attorney’s Office. Assistant U.S. Attorney Alexander Wilson is in charge of the litigation.
Man Responsible for Three-Day Armed Carjacking Spree in Newark, New Jersey, Sentenced to More Than 19 Years in PrisonRead the Press Release
NEWARK, N.J. – A Newark man who committed three armed carjackings in a three-day period was sentenced today to 235 months in prison, U.S. Attorney Paul J. Fishman announced.
Jihad Brown, 29, previously pleaded guilty before U.S. District Judge Katherine S. Hayden to four counts of an indictment charging him with carjacking (Counts One, Three and Five) and using a firearm in furtherance of a crime of violence (Count Two). Judge Hayden imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
On May 5, 2011, Brown carjacked a family at gunpoint as they were picking up their three children at a relative’s home in Newark. During the carjacking, Brown walked up as the woman was securing her infant into the car-seat. Brown physically pressed the barrel of his gun against the woman’s head and shouted for everyone to get out of the car. Afterwards, Brown and his associates fled in the victims’ car.
The following day, on May 6, 2011, Brown carjacked a Newark resident at gunpoint as the man was backing out of his driveway. Brown fled in the victim’s car.
On the third day, May 7, 2011, Brown carjacked four individuals, including two nursing students and a two-year old girl. During the carjacking, Brown jumped onto the hood of the SUV and pointed a revolver at one of the victims through the open sunroof. Brown and his associates fled in the carjacked car.
Less than an hour later, Brown and an associate were in a different car when Newark police officers attempted to conduct a motor-vehicle stop. Brown and his associate fled. The ensuing police chase ended when Brown’s car ran a stop sign and collided with another car. Inside Brown’s car, officers found the revolver that Brown had used during the carjacking.
In addition to the prison term, Judge Hayden sentenced Brown to five years of supervised release.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark; the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Carolyn A. Murray; and the Newark Police Department, under the direction of Director Eugene Venable, with the investigation leading to today’s sentencing.
The government is represented Assistant U.S. Attorney Osmar J. Benvenuto of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: David Holman Esq., Newark
Man Pleads Guilty to Civil Rights Charge in Connection with Rope Tied Around Neck of James Meredith Statue on Ole Miss CampusRead the Press Release
The Justice Department announced that Graeme Phillip Harris pleaded guilty today in federal court to threatening African-American students and employees at the University of Mississippi by helping place a rope around the neck of the James Meredith statue on campus.
According to documents filed in connection with the plea, Harris admitted to joining with others to use the cover of darkness to hang a rope and an outdated version of the Georgia state flag—which prominently depicts the Confederate battle flag—around the neck of the statue, with the intent to threaten and intimidate African-American students and employees at the university. The iconic statue honors Meredith’s role as the university’s first African-American student after its contentious 1962 integration. The incident occurred in the early morning hours of Feb. 16, 2014.
Harris was indicted by a federal grand jury on March 27 on one count of conspiracy to violate civil rights and one count of using a threat of force to intimidate African-American students because of their race or color. This plea resolves all charges against Harris in the matter.
“We will not tolerate threats of racial violence intended to intimidate students and university employees,” said Principal Deputy Assistant Attorney General Vanita Gupta of the Justice Department’s Civil Rights Division. “No one should have to endure threats or intimidation at our nation’s universities because of their race or the color of their skin.”
“The reprehensible actions of the defendant evoke painful memories of a shameful period in our past when some American citizens were subjected to threats and intimidation by lynching solely because of the color of their skin,” said U.S. Attorney Felicia C. Adams of the Northern District of Mississippi. “Attempts to categorize the defendant’s offense conduct as a mere college prank only serve as a hollow denial of our collective history and a repudiation of the legacy of those who fought to obtain and preserve our historic civil rights. The U.S. Attorney’s Office, in conjunction with the DOJ Civil Rights Division, will aggressively prosecute hate crimes and other civil rights violations which occur in our district. I sincerely appreciate the assistance of the FBI and the University of Mississippi in the investigation and prosecution of this case.”
“What these individuals did was not a prank,” said Special Agent in Charge Donald Alway of the FBI Jackson, Mississippi, Division. “It was an intentional effort to belittle and intimidate persons of a particular race, and was exactly the type of action the federal civil rights statutes were enacted to prevent. The FBI is committed to the protection of the civil rights of all citizens and will continue to investigate allegations of crime motivated by hate.”
The investigation, which is ongoing, is being conducted by the FBI Jackson Division’s Oxford Resident Agency and the University of Mississippi Police Department. The case is being prosecuted by the Justice Department’s Civil Rights Division and the U.S. Attorney’s Office of the Northern District of Mississippi.
Man Pleads Guilty to Civil Rights Charge in Connection with Rope Tied Around Neck of James Meredith Statue on Ole Miss CampusRead the Press Release
WASHINGTON – The Justice Department announced that Graeme Phillip Harris pleaded guilty today in federal court to threatening African-American students and employees at the University of Mississippi by helping place a rope around the neck of the James Meredith statue on campus.
According to documents filed in connection with the plea, Harris admitted to joining with others to use the cover of darkness to hang a rope and an outdated version of the Georgia state flag—which prominently depicts the Confederate battle flag—around the neck of the statue, with the intent to threaten and intimidate African-American students and employees at the university. The iconic statue honors Meredith’s role as the university’s first African-American student after its contentious 1962 integration. The incident occurred in the early morning hours of Feb. 16, 2014.
Harris was indicted by a federal grand jury on March 27 on one count of conspiracy to violate civil rights and one count of using a threat of force to intimidate African-American students because of their race or color. This plea resolves all charges against Harris in the matter.
“We will not tolerate threats of racial violence intended to intimidate students and university employees,” said Principal Deputy Assistant Attorney General Vanita Gupta of the Justice Department’s Civil Rights Division. “No one should have to endure threats or intimidation at our nation’s universities because of their race or the color of their skin.”
“The reprehensible actions of the defendant evoke painful memories of a shameful period in our past when some American citizens were subjected to threats and intimidation by lynching solely because of the color of their skin,” said U.S. Attorney Felicia C. Adams of the Northern District of Mississippi. “Attempts to categorize the defendant’s offense conduct as a mere college prank only serve as a hollow denial of our collective history and a repudiation of the legacy of those who fought to obtain and preserve our historic civil rights. The U.S. Attorney’s Office, in conjunction with the DOJ Civil Rights Division, will aggressively prosecute hate crimes and other civil rights violations which occur in our district. I sincerely appreciate the assistance of the FBI and the University of Mississippi in the investigation and prosecution of this case.”
“What these individuals did was not a prank,” said Special Agent in Charge Donald Alway of the FBI Jackson, Mississippi, Division. “It was an intentional effort to belittle and intimidate persons of a particular race, and was exactly the type of action the federal civil rights statutes were enacted to prevent. The FBI is committed to the protection of the civil rights of all citizens and will continue to investigate allegations of crime motivated by hate.”
The investigation, which is ongoing, is being conducted by the FBI Jackson Division’s Oxford Resident Agency and the University of Mississippi Police Department. The case is being prosecuted by the Justice Department’s Civil Rights Division and the U.S. Attorney’s Office of the Northern District of Mississippi.
Man Pleads Guilty in Manhattan Federal Court in Connection with Veteran’s Day Armed Robbery of Diamond District StoreRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that LEON FENNER pled guilty yesterday to the armed robbery of a store in the Diamond District of Manhattan on November 11, 2014. FENNER pled guilty before United States District Judge William H. Pauley III.
According to the allegations contained in court documents previously filed in federal court, and statements made in Court during the plea of FENNER:
On November 11, 2014, FENNER carried out an armed commercial robbery of a jewelry store (the “Store”) on the 8th floor of a building on 47th Street in the Diamond District of Manhattan. The Store is not open to the public but is a space where clients can view and purchase jewelry. At the time of the robbery, the owner of the store (the “Owner”) and three other individuals were present inside the Store. At approximately 2:20 in the afternoon – in broad daylight as the Veteran’s Day Parade proceeded nearby – LEON FENNER, the defendant, dressed in a suit, carrying a bag, and appearing to be a messenger, came to the door of the Store. After entering, FENNER first said that he was there to serve the Owner of the Store with papers, and took two envelopes out of his bag before placing them on a desk. FENNER then took out a weapon that appeared to be a gun and pointed it at the Owner and the others present and demanded that they give him all the jewelry in the Store. As the robbery was occurring, a relative of the Owner arrived and was let into the Store. FENNER hit the Owner’s relative, using the weapon, as he entered the Store. The Owner and the others present in the Store emptied more than $600,000 worth of jewelry from a safe and other locations and placed it into FENNER’s bag, before he left the scene.
FENNER was identified based on fingerprint analysis of the envelopes left in the store and surveillance images.
FENNER, 58, of New York, New York, pled guilty to one count of Hobbs Act robbery, which carries a maximum sentence of 20 years in prison. The statutory maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge.
FENNER is scheduled to be sentenced October 16, 2015, before Judge Pauley.
Mr. Bharara praised the investigative work of the New York City Police Department (“NYPD”) and the Joint Robbery Task Force, consisting of members of the NYPD, Bureau of Alcohol, Tobacco, Firearms and Explosives, and the United States Marshals Service.
This case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Russell Capone and Gina Castellano are in charge of the prosecution.