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Wednesday 17 June 2015
Owner of Scrap Metal Business Sentenced for Tax EvasionRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that the owner of a Kansas City, Mo., scrap metal business has been sentenced in federal court for tax evasion.
Nellie Brown Boxx, 62, of Kearney, Mo., was sentenced by Chief U.S. District Judge Greg Kays on Tuesday, June 16, 2015, to 18 months in federal prison without parole. The court also ordered Boxx to pay $366,846 in restitution to the IRS and the Missouri Department of Revenue. Boxx paid $50,000 of that restitution amount prior to yesterday’s hearing.
Boxx, the owner of Frank Metal Company in Kansas City, pleaded guilty to tax evasion on Feb. 19, 2015. Boxx admitted that she assisted tax preparers to prepare tax returns that contained false information. For example, Boxx classified purchases such as food items, drinks, jewelry, dry cleaning, household items and high-end clothing as business expenses for her scrap metal company.
According to the plea agreement, Boxx received $320,345 in taxable income in 2008, and owed $87,123 in federal income tax. The court-ordered restitution includes that tax loss as well as additional relevant conduct.
Boxx also admitted that she submitted a false 2008 Form 1040 to a bank in order to receive a financial loan. Boxx also admitted that she made false statements to IRS agents, such as falsely claiming that business documents had been destroyed by water damage from a leak in the roof.
This case was prosecuted by Assistant U.S. Attorney Roseann A. Ketchmark. It was investigated by IRS-Criminal Investigation.
Oklahoma Man Charged with Fraud SchemeRead the Press Release
Lee Michael Harrison, 39, of Oklahoma City, Oklahoma, was charged by indictment, unsealed today, with three counts of wire fraud. In 2010 and 2011, Harrison was attempting to establish restaurants and clubs in North Carolina, and to sell a reality television show to the Food Network. He convinced two investors to each invest $20,000 with him by falsely representing that they were investing in a fictitious technology called “Capture” that prevented cell phones from dropping calls and that he allegedly had sold to a prominent New York financier for over six billion dollars.
If convicted, the defendant faces a maximum possible sentence of 60 years of in prison, three years of supervised release, a $750,000 fine, and a $300 special assessment.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Laurie Magid.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Northwest Arkansas Man Sentenced to Prison for Federal Tax FraudRead the Press Release
Fayetteville, Arkansas – A Springdale, Arkansas, man was sentenced today in the U.S. District Court in Fayetteville, Arkansas, for multiple tax crimes, announced U.S. Attorney Conner Eldridge of the Western District of Arkansas and Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division.
Doyle Smith, 56, was sentenced to serve 48 months in prison to be followed by five years of supervised release and ordered to pay a $5000 fine. On Feb. 11, following a three-day trial before U.S. District Judge Timothy L. Brooks of the Western District of Arkansas, a jury found Smith guilty of four counts of filing a false tax return, one count of corruptly endeavoring to obstruct and impede the administration of the internal revenue laws and one count of presenting a fictitious financial obligation.
According to evidence introduced at trial, in 2008 and 2009, Smith submitted four false individual federal tax returns for tax years 2005 through 2008, which falsely reported a total of more than $1.4 million in fictitious federal tax withholdings. Based on these fictitious withholding amounts, Smith claimed a total of $1,021,457 in income tax refunds that he was not entitled to receive. Smith also submitted false claims and correspondence to both the Internal Revenue Service (IRS) and third-parties in an attempt to cause the IRS and U.S. Treasury to pay his debts to third parties and to obstruct the IRS’ tax administration efforts. For example, in January 2010, Smith mailed to the Department of Arkansas Finance and Administration a fictitious financial instrument titled “U.S. Treasury Trust Account Money Order.” This fictitious document purportedly obligated U.S. Treasury funds in the amount of $129,439 to pay for outstanding sales taxes that Smith owed to the state of Arkansas.
“Smith, in his fraudulent scheme, attempted to steal taxpayer money from the U.S. Treasury for his own benefit,” said U.S. Attorney Eldridge. “Those who steal from the U.S. Treasury steal directly out of the pockets of the hard-working people of the Western District of Arkansas. With today’s sentence, a strong message has been sent that our office and our law enforcement partners will relentlessly pursue fraud wherever we find it.”
“Individuals like Doyle Smith, who commit criminal tax offenses and attempt to use the U.S. Treasury as their personal slush fund, will be identified, investigated, prosecuted and incarcerated,” said Acting Assistant Attorney General Ciraolo. “The message from today’s sentencing is clear: those who attempt to cheat the system will pay a heavy price for their criminal conduct.”
“Today’s sentencing is a reminder of the penalties individuals face when submitting false claims for federal income tax refunds,” stated Special Agent in Charge Christopher A. Henry of the IRS-Criminal Investigation (CI). “IRS-Criminal Investigation will continue their aggressive pursuit of those who use fraudulent methods in an attempt to corrupt our nation’s tax system, and our unwavering commitment to protecting the interests of law-abiding taxpayers.”
“It is the Treasury Inspector General for Tax Administration’s mission to protect the integrity of the Internal Revenue Service and promote the fair administration of our federal tax system,” said Special Agent in Charge Ruben Florez of the Treasury Inspector General for Tax Administration’s (TIGTA’s) Mid-States Field Division. “TIGTA and its law-enforcement partners will vigorously investigate individuals that attempt to corruptly interfere with the administration of the internal revenue laws through fraudulent means, and will do everything within its power to ensure that those involved will be prosecuted to the fullest extent of the law. Today’s sentencing demonstrates that our justice system will not tolerate these types of actions.”
U.S. Attorney Eldridge and Acting Assistant Attorney General Ciraolo commended the special agents of IRS-CI and TIGTA, who investigated the case, as well as Trial Attorneys Robert Kemins and David Zisserson of the Tax Division, who prosecuted the case.
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Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov
Newton Investment Adviser Arrested for FraudRead the Press Release
BOSTON – A Newton investment adviser was arrested and charged today with pitching fictitious investments to defraud investors out of hundreds of thousands of dollars.
Paul J. Jackson, 58, of Wellesley, was charged with one count of wire fraud.
According to charging documents, Jackson owns and operates Paul J. Jackson & Associates, LLC in Newton, through which he manages retirement funds for clients. Beginning in 2010, Jackson started offering clients and others what appeared to be attractive investment opportunities. The investments Jackson offered typically involved initial public offerings (IPOs) of high-profile companies, but Jackson did not invest the clients’ money as promised. Instead, he took hundreds of thousands of dollars of investor money for his own use. For example, it is alleged that Jackson took $175,000 from one investor to whom he had pitched a lucrative investment in Alibaba’s IPO. Instead of investing the money, Jackson kept $112,000 for himself and gave $60,000 to another investor who had given Jackson more than $450,000 and was demanding his money. When other investors requested their money back, Jackson offered excuses and never told them that he had simply taken their money.
The Massachusetts Securities Division also filed a separate administrative action against Jackson today, charging him with fraud and seeking to bar him from working in the securities industry.
The maximum sentence under the wire-fraud statute is 20 years in prison, three years of supervised release, and a fine of the greater of $250,00 or twice the gross gain or loss. 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 B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The U.S. Attorney’s Office received valuable assistance from the Securities & Exchange Commission during the investigation of this matter. The case is being prosecuted by Assistant U.S. Attorney Eric P. Christofferson of Ortiz’s Economic Crimes Unit.
The details contained in the complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Nampa Woman Sentenced for Selling Methamphetamine at her ResidenceRead the Press Release
BOISE – Brandi Larrea, 31, of Nampa, Idaho, was sentenced today to 48 months in prison for distribution of methamphetamine, U.S. Attorney Wendy J. Olson announced. Chief U.S. District Judge B. Lynn Winmill also ordered Larrea to serve four years of supervised release following her release from prison. Larrea pleaded guilty on March 26, 2015.
According to the plea agreement, Larrea admitting selling methamphetamine at her residence in Nampa, Idaho, on five separate occasions in January and March of 2013, and from March to May of 2014, totaling 33.3 grams of actual methamphetamine. In June of 2013, law enforcement agents with the Treasure Valley Metro Violent Crimes Task Force and the Federal Bureau of Investigation searched the defendant's residence pursuant to a search warrant and discovered 24 grams of actual methamphetamine and digital scales.
This case and the other related cases are the result of a joint investigation by theTreasure Valley Metro Violent Crime Task Force and the Organized Crime and Drug Enforcement Task Force (OCDETF). The Treasure Valley Metro Violent Crime Task Force is comprised of federal, state and local agencies, including the Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; Boise Police Department; Ada County Sheriff’s Office; Caldwell Police Department; Nampa Police Department; Meridian Police Department; Canyon County Sheriff’s Office; and Idaho Department of robation and Parole. The Organized Crime and Drug Enforcement Task Force (OCDETF), includes the cooperative law enforcement efforts of the Federal Bureau of Investigation; Drug Enforcement Administration; Bureau of Alcohol, Tobacco, Firearms and Explosives; U. S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Internal Revenue Service-Criminal Investigation; and U.S. Marshals Service. The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
The cases are being prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership, the Canyon County Prosecuting Attorney’s Office, and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
Nampa Woman Sentenced for Distribution of MethamphetamineRead the Press Release
BOISE – Tara Noelle Rivera, 30, of Nampa, Idaho, was sentenced today to 24 months in prison for distribution of methamphetamine, U.S. Attorney Wendy J. Olson announced. Chief U.S. District Judge B. Lynn Winmill also ordered Rivera to serve three years of supervised release following her release from prison. Rivera pleaded guilty on March 31, 2015.
According to court documents, Rivera admitted to selling methamphetamine to a police informant on three separate occasions in March 2014. Rivera further admitted to selling a 9 millimeter pistol to the informant. Rivera’s case is part of a larger long-term investigation by the Treasure Valley Metro Violent Crimes Task Force. The investigation focused on the “Norteno” Northside gang, which is active in Nampa and other parts of the Treasure Valley. Fourteen individuals were indicted on drug and gun charges as a result of the investigation.
This case and the other related cases are the result of a joint investigation by theTreasure Valley Metro Violent Crime Task Force and the Organized Crime and Drug Enforcement Task Force (OCDETF). The Treasure Valley Metro Violent Crime Task Force is comprised of federal, state and local agencies, including the Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; Boise Police Department; Ada County Sheriff’s Office; Caldwell Police Department; Nampa Police Department; Meridian Police Department; Canyon County Sheriff’s Office; and Idaho Department of robation and Parole. The Organized Crime and Drug Enforcement Task Force (OCDETF), includes the cooperative law enforcement efforts of the Federal Bureau of Investigation; Drug Enforcement Administration; Bureau of Alcohol, Tobacco, Firearms and Explosives; U. S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Internal Revenue Service-Criminal Investigation; and U.S. Marshals Service. The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
The cases are being prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership, the Canyon County Prosecuting Attorney’s Office, and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
Monmouth County, New Jersey, Man, Sentenced to 21 Months in Prison, in Racketeering Conspiracy/Illegal Online Gambling EnterpriseRead the Press Release
NEWARK, N.J. – A Monmouth County, New Jersey, man was sentenced today to 21 months in prison for his role in a racketeering conspiracy, U.S. Attorney Paul J. Fishman announced.
Michael O’Donnell, 51, Wall Township, previously pleaded guilty before U.S. District Judge Claire C. Cecchi, to an information charging him with conspiracy to violate the Racketeer Influenced and Corrupt Organizations, or RICO, statute by participating in the activities of Beteagle, an overseas Website that facilitated online sports betting. Judge Cecchi imposed the sentence today in Newark federal court.
According to documents filed in this and other cases and statements made in court:
Joseph Graziano, 78, of Springfield, was the principal owner of Beteagle.com, a website located in Costa Rica and used to facilitate illegal online sports betting. Dominick Barone, 45, of Springfield, New Jersey, worked with Graziano in carrying out the daily activities of the website.
O’Donnell was given access to Beteagle and was considered an “agent” of the website. Before the advent of computerized betting, these agents would have been referred to as “bookmakers” or “bookies.” The agents had the ability to track the “sub-agents,” under them and the wagers placed by their bettors. The agent or sub-agent maintained a group of bettors (the “package”) and were responsible for those bettors.
O’Donnell was an agent who assisted in the illegal gambling business conducted through the website. To place bets online, the agent or sub-agent issued the bettor a username and password to access Beteagle. This access was not given online and no money or credits were made or transferred through the website. O’Donnell and his conspirators paid out winnings or collected losses in person. The agent or sub-agent paid a fee to the website for each bettor added to a package. O’Donnell collected money from bettors and then passed a portion of the proceeds to Barone in furtherance of the racketeering scheme.
In addition to the prison term, Judge Cecchi ordered O’Donnell to serve three years of supervised release and pay a $5,000 fine.
Graziano has pleaded guilty to his role in the scheme and is currently scheduled for sentencing on June 25, 2015. Barone was sentenced to 18 months’ imprisonment.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark; the Bayonne Police Department, Special Investigations Unit, under the direction of Chief Drew Niekrasz; IRS-Criminal Investigation under the direction of Special Agent in Charge Jonathan D. Larsen; the N.J. State Police, under the direction of Superintendent Rick Fuentes; and the Monmouth County Prosecutor’s Office, under the direction of Acting Prosecutor Christopher Gramiccioni, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Anthony Moscato of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Robert L. Galantucci Esq., Hackensack, New Jersey
Millstone, New Jersey, Mortgage Broker Sentenced to One Year in Prison for Extortion ConspiracyRead the Press Release
TRENTON, N.J. – A Millstone, New Jersey, man was sentenced today to 12 months in prison for conspiring to extort victims out of money and property by falsely stating they were the subjects of IRS criminal investigations, U.S. Attorney Paul J. Fishman announced.
Robert G. Cusic Jr., 46, previously pleaded guilty before U.S. District Judge Joel A. Pisano to an information charging him with conspiracy to commit extortion under fear of economic harm. U.S. District Judge Anne E. Thompson imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
Cusic, Thomas G. Frey, 55, of Edison, New Jersey, and another conspirator (identified only as CC-1), schemed to extort and to defraud four victims, including two police officers, by falsely representing to the victims that they were the subjects of criminal investigations, principally by the IRS, in connection with investment properties some of them owned. Cusic falsely represented that while at a property formerly owned by one of the victims, Cusic encountered two IRS special agents (SA-1 and SA-2) who questioned him extensively about some of the victims.
Frey, a lawyer and certified public accountant, falsely told the victims he had ongoing communications with SA-1 about the purported investigation and had a special relationship with SA-1. Frey told the victims if they paid up to $20,000 each, he would call SA-1 and have the investigation converted from a criminal tax investigation to an IRS “desk audit,” a civil matter. Frey and CC-1 falsely stated that if the victims did not retain his services and pay the fee, the investigation would likely result in the arrest of certain victims.
Cusic admitted the goal of the conspiracy was to obtain approximately $80,000 in fees for Frey and to cause the victims to sell certain of the properties to Frey and others. Cusic stood to receive a portion of any fees paid by the victims, a percentage of the sale price of each of the investment properties sold to Frey and others, and property management fees on any of the properties sold.
In addition to the prison term, Judge Thompson sentenced Cusic to serve three years of supervised release and ordered him to pay a $3,000 fine.
Frey previously pleaded guilty before Judge Pisano to two counts of an indictment charging him with conspiracy to commit extortion under fear of economic harm and conspiracy to commit wire fraud. He was sentenced on April 27, 2015, to 27 months in prison.
Fishman credited special agents of the Treasury Inspector General for Tax Administration, under the direction of Special Agent in Charge Rodney Davis, Washington Field Division, for the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Eric W. Moran of the U.S. Attorney’s Office Special Prosecutions Division in Newark.
Defense Counsel: Peter R. Willis Esq., Jersey City, New JerseyMiami-Dade County Residents Sentenced for Committing Armed Robbery SpreeRead the Press Release
Michael Childs, 39, and Charles Lovett, 26, both of Opa-Locka, were sentenced by U.S. District Court Judge Joan A. Lenard to consecutive terms of imprisonment totaling 480 months and 141 months respectively, for committing multiple armed robberies.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, Hugo J. Barrera, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), made the announcement.
According to statements made and documents filed in court, Childs and Lovett were charged with committing a series of armed robberies of commercial establishments in late 2013 and early 2014, across Miami-Dade and Broward Counties, including robberies in West Park, Miami Gardens, Opa-Locka, and the City of Miami. Both Childs and Lovett pled guilty to committing multiple armed robberies. Childs also admitted that, in January 2014, during the course of two separate robberies, he used a firearm to shoot at customers and employees inside Opa-Locka and Liberty City convenience stores. Childs, who had previously been convicted of committing a robbery in Pennsylvania, was identified through a forensic examination of fingerprints he left during the course of a robbery at the Liberty City convenience store.
Mr. Ferrer commended the investigative efforts of members of the Violence Reduction Partnership, including ATF, Miami-Dade Police Department (MDPD), the City of Miami Police Department, Opa-Locka Police Department, Miami Gardens Police Department, Broward Sheriff’s Office, and the Hallandale Beach Police Department. The cases were prosecuted by Assistant U.S. Attorneys Olivia S. Choe and Seth M. Schlessinger.
Through its Violence Reduction Partnership, the U.S. Attorney’s Office and its federal and local law enforcement allies have sought to dismantle the most violent criminal networks in various neighborhoods in the Southern District of Florida, while simultaneously working with community leaders and concerned citizens to mentor at-risk youth, provide job training, coordinate social services and support the reintegration of ex-offenders (returning citizens) to the community.
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 National Sentenced for Illegal ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that NAZARIO HERNANDEZ-MALDONADO, 54, a citizen of Mexico, was sentenced after previously pleading guilty to a one-count Indictment for illegal reentry of a removed alien.
U.S. District Judge Helen G. Berrigan sentenced HERNANDEZ-MALDONADO to time serviced, 1 year of supervised release, and a $100 special assessment. HERNANDEZ-MALDONADO will be surrendered to the custody of the U.S. Immigration & Customs Enforcement for removal proceedings.
According to court documents, on or about January 23, 2015, HERNANDEZ-MALDONADO was found in the United States after having been officially deported and removed on or about August 8, 1998, and on or about July 1, 2000.
U.S. Attorney Polite praised the work of the United States Department of Homeland Security, Immigration and Customs Enforcement in investigating this matter. Assistant United States Attorney Irene González was in charge of the prosecution.
Mexican National Pleads Guilty to Illegally ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JOSE BENJAMIN LOPEZ-AGUILAR, age 23, a citizen of, pled guilty today to a one-count Bill of Information for illegal reentry of removed alien.
According to the Bill of Information, on or about April 24, 2015, LOPEZ-AGUILAR was found in the United States after having been officially deported and removed on or about October 15, 2014.
LOPEZ-AGUILAR faces a maximum term of imprisonment of two years and a fine of $250,000, one year supervised release after imprisonment, and a $100 special assessment. U.S. District Judge Helen G. Berrigan set sentencing for August 26, 2015.
U.S. Attorney Polite praised the work of the United States Department of Homeland Security, Immigration Enforcement in investigating this matter. Assistant United States Attorney Irene González is in charge of the prosecution.
Jose Benjamin Lopez-Aguilar Factual Basis.docx (19.6 KB)
McLaughlin Man Sentenced for Third Degree BurglaryRead the Press Release
Acting United States Attorney Randolph J. Seiler announced that a McLaughlin, South Dakota, man convicted of Third Degree Burglary was sentenced on June 15, 2015, by U.S. District Judge Charles B. Kornmann.
Blake Crow Ghost, age 21, was sentenced to 6 months in custody, followed by 3 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Crow Ghost was indicted for First Degree Burglary, Assault with a Dangerous Weapon, and Third Degree Burglary by a federal grand jury on June 23, 2014. He pled guilty to Third Degree Burglary on March 5, 2015.
The conviction arose from a June 22, 2013, incident at McLaughlin, when Crow Ghost and two co-defendants entered a garage and damaged a sitting area, and also removed speakers from the garage and smashed them against the house. Later that night, Crow Ghost joined in physical altercations between his co-defendants and several victims. Crow Ghost kicked one victim while he was on the ground, tackled another victim and caused her to fall into a garage door, and attacked a third victim.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Jay Miller prosecuted the case.
Crow Ghost was immediately turned over to the custody of the U.S. Marshals Service.
Marionville Man Pleads Guilty to Child ExploitationRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Marionville, Mo., man pleaded guilty in federal court today to child sexual exploitation.
Darren Eugene Schaefer, 36, of Marionville, Mo., pleaded guilty before U.S. District Judge M. Douglas Harpool to using the Internet and cell phone to attempt to entice a minor to engage in illicit sexual activity.
A task force officer with the Southwest Missouri Cybercrimes Task Force investigated a tip from the National Center for Missing and Exploited Children in May 2014 that Schaefer was contacting underage females on the social networking site MeetMe, asking them if they wanted to meet for sexual acts. Schaefer sent messages indicating that he was interested in sexual contact with seven underage females. After contacting the females using the instant message feature on MeetMe, Schaefer would attempt to move the conversations to cell phone text messages.
During the on-line communications between Schaefer and the underage female victims, Schaefer admitted to the victims that he was 35 years old, and stated that he preferred younger females. In one instance, one of the victims asked Schaefer why he posted his age on MeetMe as 14 years old if he was really 35. Schaefer replied that was the only way he could see underage females on this Web site and communicate with them. One victim asked him if he knew he could get in trouble for what he was doing. He replied he knew he could get in trouble but hoped he would not.
A federal search warrant was executed at Schaefer’s residence on June 17, 2014. Schaefer told officers that he talked to hundreds of girls on various social networking Web sites and that he had contacted underage girls several other times using MeetMe. Schaefer also admitted to meeting at least three underage girls for sexual intercourse over a 10-year period. He reported that he had met all three of them from social networking sites on the Internet. He met two of the girls in Nixa and one at Hood's Truck Stop on 1-44.
Officers seized two laptop computers, two external hard drives and Schaefer’s cell phone. The laptops contained 103 images of child pornography. A total of 474 images of child erotica were located on the multiple electronic media.
Under federal statutes, Schaefer is subject to a mandatory minimum sentence of 10 years in federal prison without parole, up to a sentence of life in federal prison without parole, plus a fine up to $500,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by the Southwest Missouri Cybercrimes Task Force, Immigration and Custom Enforcement’s (ICE) Homeland Security Investigations (HSI) and the FBI.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Marion County Man Convicted of Federal Firearm OffenseRead the Press Release
Ocala, Florida – United States Attorney A. Lee Bentley, III announces that a federal jury today found Reginald Howard, Jr. (36, Ocala) guilty of possession of a firearm and ammunition by a convicted felon. He faces a mandatory minimum sentence of 15 years, up to life, in federal prison. His sentencing hearing has not yet been scheduled. Howard was indicted on January 7, 2015.
According to the testimony and evidence presented at trial, Ocala Police Department officers were called to a disturbance at a store on November 28, 2014. Officers were told that a man was in the bathroom with a gun. Officers confronted Howard and a subsequent search revealed a loaded, 9mm handgun inside his left rear pocket. Howard stated that he had the firearm for protection. Witnesses reported that Howard had threatened them while displaying the pistol.
Prior to the incident, Howard had been convicted for the sale of cocaine and felony fleeing and eluding law enforcement. As such, he qualifies for an enhanced sentence as an armed career criminal under federal law. At the time of the offense, Howard was under federal supervision.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Ocala Police Department. It is being prosecuted by Assistant United States Attorneys Bryon R. Aven and Robert Bodnar.
This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” Program - a nationwide, gun-violence reduction strategy. United States Attorney A. Lee Bentley, III, along with Regina Lombardo, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials. It is also a part of ATF’s Frontline strategy to reduce violent crime in communities.
Manhattan U.S. Attorney Settles Civil Fraud Claims Against Inspire Pharmaceuticals, Inc. for Its Misleading Marketing Designed to Cause Prescriptions of Azasite for Non-Fda Approved UsesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Scott J. Lampert, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General’s (“HHS-OIG”) New York Region, announced today that the United States has settled civil fraud claims under the False Claims Act and common law against INSPIRE PHARMACEUTICALS, INC. (“INSPIRE”). According to the allegations of the complaint, although the Food and Drug Administration (“FDA”) had approved AzaSite only for the treatment of bacterial conjunctivitis, a bacterial infection of the eye more commonly known as pink eye, INSPIRE sought to generate more revenue by aggressively marketing the drug for the non-FDA-approved treatment of blepharitis, a different eye condition involving inflammation of the eyelids. The complaint alleges that INSPIRE’s marketing efforts from 2008 through May of 2011 misleadingly focused on purported anti-inflammatory properties of AzaSite that were unsupported by substantial evidence or substantial clinical experience in order to cause doctors to prescribe AzaSite for uses not covered by federal healthcare programs, which resulted in federal healthcare programs paying millions of dollars in false claims. In connection with the settlement, which was approved by U.S. District Judge Loretta A. Preska on June 15, 2015, INSPIRE agreed to pay the United States and state governments $5,960,163.28, and made admissions as to its conduct.
Manhattan U.S. Attorney Preet Bharara said: “As demonstrated by today’s settlement, we are committed to ensuring that drug companies do not undermine the FDA’s approval process by deliberately marketing drugs for uses that are unsupported by substantial evidence or clinical experience, while profiting at taxpayers’ expense.”
HHS-OIG Special Agent in Charge Scott J. Lampert said: “Marketing pharmaceuticals for other than FDA approved uses by making misleading statements can expose patients to questionable drug treatments while asking taxpayers to pick up the Medicare bill. Investigations of such misconduct will continue to be a priority for this office.”
According to the complaint-in-intervention filed in Manhattan federal court:
On April 27, 2007, the FDA approved AzaSite to treat pink eye. The FDA never approved AzaSite as safe and effective to treat blepharitis. INSPIRE initially based its advertising on treating children for pink eye by prominently displaying a child in its advertisements and emphasizing the ease of administering AzaSite with only nine drops. INSPIRE also marketed its product to pediatricians and primary care physicians likely to treat pink eye. By the beginning of 2008, INSPIRE began a promotional effort to encourage physicians to prescribe AzaSite to treat blepharitis, a condition characterized by inflammation of the eyelids, even though the FDA had not approved AzaSite to treat blepharitis. INSPIRE changed its marketing strategy by highlighting the purported anti-inflammatory characteristics of AzaSite, not including a child in its advertisements, and substantially reducing its marketing toward pediatricians and primary care physicians while instead targeting doctors likely to treat blepharitis. The FDA sent a letter to INSPIRE dated April 14, 2011, informing the company that its then-prominent advertisement improperly suggested that AzaSite had anti-inflammatory effects, even though this had not been demonstrated by substantial evidence or substantial clinical experience. FDA advised INSPIRE that its advertisement was “false or misleading because it broadens the indication, makes unsubstantiated claims, and omits and minimizes important risks associated with the use of AzaSite.”
The Government further alleged that INSPIRE trained its sales force on the purported anti-inflammatory effects of AzaSite, and advised its sales force that every call needed to emphasize, among other things, the purported anti-inflammatory properties of AzaSite. INSPIRE gave its sales force marketing material targeting blepharitis, and had a nationwide speaker program geared toward promoting AzaSite to treat blepharitis. INSPIRE did this to drive prescriptions for the non-FDA approved treatment of blepharitis.
As part of today’s settlement, INSPIRE admitted that starting in January 2008, INSPIRE commenced an advertising campaign designed to broaden the customer base for AzaSite by focusing on, among other things, AzaSite’s claimed anti-inflammatory effects, which were not approved by the FDA, and were not demonstrated by substantial evidence or substantial clinical experience. INSPIRE further admitted that AzaSite was prescribed for blepharitis, and that claims to treat blepharitis were submitted to federal healthcare programs for payment.
The case was initially brought by a whistleblower under the False Claims Act, and the Government intervened in the case. The Government alleged in its Complaint-In-Intervention that Inspire’s marketing of AzaSite for the treatment of blepharitis, a use not approved by the FDA or covered by federal healthcare programs, resulted in the submission of false claims to federal healthcare programs in violation of the False Claims Act.
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Mr. Bharara praised the investigative work of HHS-OIG.
The case is being handled by the Office’s Civil Frauds Unit. Assistant United States Attorney Lawrence H. Fogelman is in charge of the case.
Man who threatened Senator Manchin sentenced to 18 months in federal prisonRead the Press Release
Charleston, W.Va. – United States Attorney Booth Goodwin announced today that Steven Anthony Major, 50, was sentenced to 18 months in federal prison, followed by three years of supervised release for threatening to murder United States Senator Joseph Manchin, III, and his family members.
On February 24, 2015, Major pleaded guilty to threatening to murder Senator Manchin. Major admitted that he called Senator Manchin’s Charleston and Washington, D.C. offices on four separate occasions from March 17 through 20, 2014. On each of those occasions, Major left a voice message making violent threats against the Senator and his family members.
The investigation was conducted by the Federal Bureau of Investigation, United States Capitol Police, and West Virginia State Police. Assistant United States Attorney Haley Bunn handled the prosecution.
Lubbock Man Faces up to 30 Years in Federal Prison for Producing Child PornographyRead the Press Release
LUBBOCK, Texas — Jeffrey William McCall, 41, appeared earlier this week before U.S. Magistrate Judge Nancy M. Koenig and pleaded guilty to one count of production of child pornography, announced John R. Parker, Acting U.S. Attorney for the Northern District of Texas.
McCall faces a statutory penalty of not less than 15 years and not more than 30 years in federal prison, up to a $250,000 fine and up to a lifetime of supervised release. A sentencing date was not set; McCall remains in federal custody.
According to documents filed in the case, On April 7, 2015 McCall obtained a video of a minor child by hiding his cellular telephone in the bathroom and turning on the video camera when the child went into the bathroom to take a shower. McCall carefully positioned and aimed the lens of the camera with the intent of obtaining images of the girl.
The matter was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The FBI and the Lubbock Police Department investigated. Assistant U.S. Attorney Steven M. Sucsy is in charge of the prosecution.
Long Island Investment Advisor Sentenced to 55 Months in Prison for Ponzi SchemeRead the Press Release
CENTRAL ISLIP, NY – Earlier today, Paul Sullivan, a Long Island-based investment advisor, was sentenced in federal court to 55 months’ imprisonment. In November 2013, Sullivan pleaded guilty to wire fraud for engaging in a Ponzi scheme that defrauded investors of approximately $1.9 million. As part of the sentence, Sullivan was also sentenced to 3 years’ supervised release and ordered to pay $1.9 million in restitution to the victims of his fraud.
The sentence was announced by Kelly T. Currie, Acting United States Attorney for the Eastern District of New York; Raymond R. Parmer, Jr., Special Agent-in-Charge, U.S. Department of Homeland Security, Homeland Security Investigations (DHS-HSI), New York; and Shantelle P. Kitchen, Special-Agent-in-Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), New York.
“Sullivan abused the trust placed in him by his clients, many of whom considered him a close friend. Sullivan then dug a deeper hole for himself and his clients by orchestrating a Ponzi scheme that ensnared even more victims,” stated Acting United States Attorney Currie. “We are committed to bringing to justice those who seek to defraud the investing public.” Mr. Currie thanked DHS-HSI and the IRS-CI for their cooperation and assistance in the investigation and prosecution of this case.
Sullivan, a licensed financial advisor, made investments without his clients’ authorization that resulted in significant losses. When these losses were discovered, Sullivan admitted his misconduct to some clients and attempted to prevent them from alerting the authorities by promising to reimburse the clients for their losses. However, in order to obtain the money to reimburse these clients, Sullivan stole funds belonging to other clients. Sullivan falsely told the clients from whom he stole funds that he was investing their money in special private investments with high rates of return. When one of the Sullivan’s defrauded clients confronted him using a hidden camera, Sullivan admitted that he had used the client’s funds to repay another client’s investment losses, stating: “What I did was completely illegal, completely wrong . . . everything I’ve done was wrong, was illegal, I have nothing to say.”
The charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory, and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state, and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions, and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
Today’s sentence was imposed by United States District Judge Leonard D. Wexler.
The government’s case is being prosecuted by the Office’s Business and Securities Fraud Section. Assistant United States Attorney Daniel Spector is in charge of the prosecution.
The Defendant:
PAUL SULLIVAN
Age: 50
Franklin Square, New York
E.D.N.Y. Docket No. 12-CR-642
Lancaster Men Sentenced for Heroin Conspiracy Involving More Than Three-And-A-Half Pounds of HeroinRead the Press Release
Contact Person: Jay Richardson (803) 929-3000
Columbia, South Carolina ? United States Attorney Bill Nettles announced today that Joseph Shawn Chasteen (26) and Cody Dean Howard (20) were sentenced for their involvement in a heroin conspiracy to distribute more than three-and-a-half pounds of heroin. United States District Judge J. Michelle Childs sentenced Chasteen to ten years in federal prison and Howard to nine years.
In February 2014, a joint investigation by ATF, SLED, and the Lancaster County Sheriff’s Office led officers to a residence in Indian Land that was suspected to be involved in a heroin distribution conspiracy. The investigation revealed that persons involved in the conspiracy had obtained a large quantity of heroin in Charlotte and intended to distribute the heroin in Lancaster County. After days of surveillance, officers thwarted the conspiracy after only a small quantity of the heroin was distributed, arresting Chasteen and Howard in possession of more than 3 ½ pounds of heroin along with a sawed-off shotgun.
The case was investigated as part of the ongoing cooperation between the Lancaster County Sheriff, SLED and the Bureau of Alcohol, Tobacco, Firearms, and Explosives to remove violent drug dealers from the streets of Lancaster County. The case was prosecuted by Assistant United States Attorney Jay N. Richardson.
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Julian Marie Breslow Sentenced to 2 ½ Years ImprisonmentRead the Press Release
RALEIGH – United States Attorney Thomas G. Walker announced that yesterday in federal court, Chief United States District Judge James C. Dever III sentenced JULIAN MARIE BRESLOW , 53, of Fort Lauderdale, FL to 30 months imprisonment, followed by 3 years of supervised release.
BRESLOW was named in an Indictment filed on February 11, 2014 charging her with Major Fraud, False Statements, Wire Fraud, Mail Fraud, and Aggravated Identity Theft. On September 12, 2014, BRESLOW pled guilty to Count 3 of the Indictment, false statements to the United States in violation of 18 U.S.C. § 1001.According to the investigation, BRESLOW owned Pompano Masonry Corporation, one of the largest masonry companies in the United States, through a revocable trust. To give Pompano an edge in getting business, BRESLOW set up Breslow Construction LLC as a woman owned small business in the name of herself and her two daughters, one of whom was a minor at the time, the other was a law student. But Breslow Construction was never a separate, independent business from Pompano and therefore did not qualify as a small business. BRESLOW used Breslow Construction to apply for and receive over $30 million of masonry subcontracts on large federal projects. BRESLOW used her daughter’s identity to assist her in the fraud, in one case, having her daughter’s signature stamped on a $15 million contract without her knowledge or permission.
AUSA Bragdon stated, “The kind of fraud Breslow committed undermines the purpose and effectiveness of preferences given to small businesses. BRESLOW victimized her own family when she decided to use her daughters’ names in committing the fraud.”
"DCIS continues our aggressive investigative efforts, in partnership with other agencies, to ensure the integrity of all defense programs, to include military construction contracts, which ultimately benefit our dedicated Warfighters," said John Khin, Special Agent in Charge, Southeast Field Office, Defense Criminal Investigative Service.
Investigation of this case was conducted by the Defense Criminal Investigative Services, Naval Criminal Investigative Services, and Small Business Administration, Office of Inspector General. David Bragdon was the assistant U.S. Attorney assigned to the case.
Judge Sentences Crafton Man to 100 Months in Prison for Possessing and Distributing Child PornographyRead the Press Release
PITTSBURGH - A resident of Allegheny County, Pennsylvania, pled guilty and has been sentenced in federal court to 100 months imprisonment, followed by 15 years supervised release, on his convictions of distribution and possession of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.
Senior United States District Judge Gustave Diamond imposed the sentence on Brandon Quinn, 30, formerly of Crafton, Pa.
According to information presented to the court, on or about September 9, 2013, Quinn distributed images and videos in computer graphics files containing material depicting the sexual exploitation of minors. Quinn also was found to be in possession of visual depictions, namely, images and videos in computer graphics files, the production of which involved the use of minors engaging in sexually explicit conduct.
Assistant United States Attorney Jessica Lieber Smolar prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended Homeland Security Investigations for conducting the investigation which led to the successful prosecution of Quinn.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. 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 better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Jicarilla Apache Man Arraigned on Indictment Charging Him with Assaulting a Federally Commissioned Tribal OfficerRead the Press Release
ALBUQUERQUE – Lawrence Roybal, 53, a member of the Jicarilla Apache Nation who resides in Dulce, N.M., was arraigned today in federal court in Albuquerque, N.M., on an indictment charging him with assaulting a federal officer. Roybal entered a not guilty plea to the indictment and was ordered detained pending trial which has yet to be scheduled.
Roybal was arrested in May 2015, on a criminal complaint charging him with assaulting an officer with a dangerous weapon. According to the criminal complaint, Roybal attacked a Jicarilla Apache Tribal Police Officer with a pitchfork on May 11, 2015, in Dulce, N.M., which is within the Jicarilla Apache Indian Reservation in Rio Arriba County, N.M. Roybal was subsequently indicted on June 9, 2015, and charged with assaulting a federal officer who was engaged in the performance of his official duties. The indictment alleges that the tribal officer was commissioned as a special federal officer by the BIA at the time of the assault.
If convicted of the crime charged in the indictment, Roybal faces a maximum penalty of 20 years in federal prison. Charges in complaints and indictments are merely accusations. All criminal defendants are presumed innocent unless proven guilty beyond a reasonable doubt.
This case was investigated by the Farmington office of the FBI and the Jicarilla Apache Tribal Police Department. Assistant U.S. Attorney Raquel Ruiz-Velez is prosecuting the case.
Honduran National Sentenced for Illegal ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that LUIS FERNANDO MARTINEZ, 40, a citizen of Honduras, was sentenced after previously pleading guilty to a one-count Bill of Information for illegal reentry of a removed alien.
U.S. District Judge Helen G. Berrigan sentenced MARTINEZ to time served, 1 year of supervised release, and a $100 special assessment. MARTINEZ will be surrendered to the custody of the U.S. Immigration & Customs Enforcement for removal proceedings.
According to court documents, on or about March 4, 2015, MARTINEZ was found in the United States after having been officially deported and removed on or about February 1, 2013.
U.S. Attorney Polite praised the work of the United States Customs and Border Protection in investigating this matter. Assistant United States Attorney Irene González was in charge of the prosecution.
Founder of Commodities Firm Pled Guilty for Participating in Four Million Dollar Fraud SchemeRead the Press Release
A Palm Beach County businessman pled guilty for participating in a four million dollar commodities fraud scheme.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Ronald J. Verrochio, Inspector in Charge, U.S. Postal Inspection Service (USPIS), Miami Division, and Drew Breakspear, Commissioner, Florida Office of Financial Regulation (OFR), made the announcement.
Jeffrey Schuler, 54 of Boynton Beach, Florida pled guilty to one count of wire fraud, in violation of Title 18, United States Code, Section 1343. Sentencing for the defendant is scheduled for August 25, 2015, at 1:15 p.m., before U.S. District Judge William A. Dimitrouleas. At sentencing, the defendant faces a maximum term of imprisonment of 20 years.
According to court records, including the factual proffer, in or around early 2010, Schuler co-founded Liberty International Financial Services (“Liberty”) in Fort Lauderdale with Christopher Anzalone, who was charged separately in Case No. 14-20737-CR-FAM. Liberty employed brokers that solicited investors throughout the United States to make purchases of precious metals, such as gold, silver, or palladium. Liberty brokers represented to investors that investors’ monies would be used for the purchase of precious metals in silver, gold, and palladium. Based on representations made by brokers, prospective investors provided funds to Liberty for precious metals investments.
The court records further indicate that the defendant had responsibility at Liberty for executing precious metal trades. The defendant falsely and fraudulently represented to Liberty brokers that he was actually making precious metals trades for investors. In reality, from September 2010 to December 2011, the defendant executed almost no trades of precious metals. During this period, Liberty received approximately $4 million from investors and spent less than $200,000 in precious metals related trades. Instead, the money was used to pay old investors, to pay the defendant a substantial income, and to pay other Liberty brokers and personnel.
Anzalone previously pled guilty to one count of conspiracy to commit wire and mail fraud, in violation of Title 18, United States Code, Section 1349 and was sentenced to 15 years in prison on March 27, 2015.
Mr. Ferrer commended the investigative efforts of the FBI, USPIS, and OFR. The case is being prosecuted by Assistant U.S. Attorney Michael N. Berger.
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.
Former Shelby County Hospital CFO Sentenced in EHR Incentive CaseRead the Press Release
TYLER, Texas – The former Chief Financial Officer of Shelby Regional Medical Center has been sentenced to federal prison in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Joe White, 68, of Cameron, Texas, pleaded guilty on Nov. 12, 2014 to making a false statement and was sentenced to 23 months in federal prison today by U.S. District Judge Michael Schneider. White was also ordered to pay restitution in the amount of $4,483,089.09 to Medicare’s Electronic Health Record (EHR) Incentive Program.
According to information presented in court, White was the Chief Financial Officer for Shelby Regional Medical Center in Center, Texas, in addition to other hospitals owned and operated by Dr. Tariq Mahmood. White oversaw the implementation of electronic health records for the hospital and was responsible for attesting to the meaningful use of electronic health records in order to qualify to receive incentive payments under Medicare’s EHR Incentive Program. On Nov. 20, 2012, White knowingly made a false statement to Medicare falsely representing that the hospital was a meaningful user of electronic health records, when the hospital did not meet the meaningful use requirements. As a result, Shelby Regional Medical Center received $785,655.00 from Medicare. In total, hospitals owned by Mahmood were paid over $16 million under the Medicare and Medicaid EHR Incentive Programs. White was indicted by a federal grand jury on Jan. 22, 2014.
“The granting of EHR funds to individual and institutional providers was intended to modernize medical record storage and access. Unfortunately, there are individuals and institutions like Mr. White and his hospital whose only intent for EHR funds was to enrich themselves,” said Mike Fields, Special Agent in Charge of the Dallas region’s HHS – Office of Inspector General.
“I agree with SAC Fields,” said U.S. Attorney Bales. “The EHR Incentive Program was designed to enhance the delivery of excellent medical care to all Americans and especially for those citizens who live in underserved, rural areas like Shelby County. There is no doubt that Mr. White understood that purpose and yet, he intentionally decided to steal taxpayer monies and in the process, undermine and abuse this important program.”
This case was investigated by the U.S. Department of Health and Human Services – Office of the Inspector General (HHS-OIG), the Texas Office of the Attorney General – Medicaid Fraud Control Unit (OAG-MFCU), and the Federal Bureau of Investigation (FBI). This case is being prosecuted by Special Assistant U.S. Attorney Kenneth C. McGurk and Assistant U.S. Attorney Nathaniel C. Kummerfeld.
Any individuals with knowledge of these or other health care fraud violations are encouraged to contact the Department of Health and Human Services’ fraud hotline at 1-800-HHS-TIPS (447-8477).
Former Assistant Branch Manager of Credit Union Sentenced to 15 Months in Federal Prison for EmbezzlementRead the Press Release
Orlando, Florida – Senior U.S. District Judge G. Kendall Sharp today sentenced Male Yahaira Rivera (35, Orlando) to 15 months in federal prison for embezzlement from a federally insured credit union. She was also ordered to serve five years of supervised release, and to pay $258,000 in restitution. Rivera pleaded guilty on March 18, 2015.
According to court documents, Rivera was an Assistant Branch Manager of Fairwinds Credit Union. Over a period of about 10 months, she stole $258,000 in cash from the credit union, in 16 separate thefts, ranging in amounts from $2,000 to $40,000. Each of the thefts involved cash that was supposed to be deposited into an ATM machine or that had been removed from an ATM machine. Rivera used more than $44,000 as a partial payment for a Porsche.
This case was investigated by the United States Secret Service. It was prosecuted by Assistant United States Attorney Roger B. Handberg.
Florida Physician Agrees to Pay $4 Million and to Accept a 5-Year Exclusion from Medicare to Resolve False Claims Act AllegationsRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Shimon R. Richmond, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), Miami Region, announced that Donald C. Proctor, Jr., M.D., a Mohs surgeon and facial plastic surgeon practicing in Vero Beach, Florida, and Grove Place Surgery Center, LLC, an ambulatory surgical center managed by Dr. Proctor, have agreed to pay $4 million to resolve allegations that they violated the False Claims Act by billing Medicare for Mohs surgeries and other surgical procedures that Dr. Proctor either did not perform or were medically unnecessary. Dr. Proctor also agreed to be excluded from Medicare, Medicaid, and all federally funded health care programs for at least five years.
“The settlement announced today demonstrates this office’s commitment to aggressively pursue physicians who put their own financial self-interest over a duty to their patients and thereby raise the cost of health care for all of us as patients and taxpayers,” said Wifredo A. Ferrer, United States Attorney for the Southern District of Florida. “We will not allow physicians to put patients at risk by performing unnecessary procedures, or permit them to make up phantom claims to increase their reimbursements from Medicare.”
“Any time greed replaces medical necessity as the primary factor in performing unnecessary, invasive procedures on Medicare beneficiaries, both patient health and taxpayer funds are compromised,” said Special Agent in Charge Shimon R. Richmond of the U.S. Health and Human Services Office of Inspector General. “Dr. Proctor received a 5-year exclusion from participating in Medicare by placing his patients and the integrity of the Medicare program at risk just to enrich himself.”
The settlement resolves allegations made in a lawsuit filed by Ferdinand F. Becker, M.D., a facial plastic surgeon and former Mohs surgeon who referred patients to Dr. Proctor, and Linda Wildes, who worked as Dr. Proctor’s histology technician for over eight years. They filed under the qui tam, or “whistleblower,” provisions of the False Claims Act, which permit private parties to sue on behalf of the government and receive a share of any recovery. The act also authorizes the government to intervene in and assume primary responsibility for litigating the lawsuit, as the government has done in this case. Dr. Becker and Ms. Wildes will receive $920,000.
Based on an extensive investigation, the United States alleged that Dr. Proctor would routinely see patients who had been referred to him with a confirmed skin cancer lesion and falsely inform them that they had additional lesions requiring Mohs surgery, even though the supposed additional lesions had not been confirmed through a biopsy as cancerous or simply did not exist. Mohs surgery is a specialized and expensive surgical procedure for removing certain types of skin cancers in specific areas of the body, including the face. The surgery is performed in stages in which the surgeon removes a single layer of tissue and then, after a microscopic evaluation of the excised tumor, performs additional stages, if necessary, until all of the cancer is removed. The United States further alleged that, solely to increase his Medicare reimbursement, Dr. Proctor would routinely perform three to four stages (or many more in some cases) of Mohs surgery, even though that is far outside the norm and was often not necessary. This required patients to remain at Grove Place Surgery Center for prolonged periods of time and be subjected to additional surgeries they did not need.
Finally, based on its investigation, the United States alleged that Dr. Proctor was also defrauding Medicare by routinely billing for unnecessary or nonexistent surgeries to close up the wounds allegedly left by the Mohs surgeries. These reconstructions, called adjacent tissue transfers, are complicated and often time-consuming procedures physicians sometimes use to close a defect resulting from the removal of a lesion on a patient’s skin. Dr. Proctor billed Medicare for these procedures in connection with virtually every Mohs surgery he claimed to have performed, even though, the United States alleged, it would have been physically impossible in most cases for him to have performed them.
The settlement was the result of a coordinated effort by the United States Attorney’s Office for the Southern District of Florida, HHS-OIG, Federal Bureau of Investigation (FBI), and Defense Criminal Investigative Service. The case was investigated and the settlement negotiated by Assistant U.S. Attorney Susan Torres. The exclusion agreement was negotiated by OIG Senior Counsel Karen Glassman.
The case is captioned United States ex rel. Becker & Wildes v. Donald C. Proctor, Jr., M.D. et al., No. 11-14214-Civ-Martinez (S.D. Fla.). The claims asserted against Dr. Proctor and Grove Place Surgery Center are merely allegations. There has been no determination of liability in this matter.
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.
Federal Operation Convicts Nine Montanans of More Than Half a Million Dollars in Social Security FraudRead the Press Release
U.S. Attorney Michael W. Cotter for the District of Montana announced today the culmination of a federal operation that found nine Montanans engaged in Social Security fraud. Dubbed “Operation Save our Social Security,” Operation S.O.S. uncovered approximately a half-million dollars in fraudulent payments to individuals in Montana, which occurred when the individuals provided false information or made misrepresentations on their paperwork for Supplemental Security Income (SSI), which also impacts eligibility for other federal assistance. In total, the operation uncovered approximately $390,000 in social security fraud, $107,288 in Medicaid fraud and $34,500 in Supplemental Nutrition Assistance Program (SNAP) and Temporary Assistance for Needy Families (TANF) fraud. The individuals have been ordered to pay back the money they stole, including the final individual, Caroline Bighair, who was sentenced today to pay back $23,424 and to three years of supervised release. One recipient of the federal benefits agreed to pay back the money under an agreement with the U.S. Attorney’s Office due to personal circumstances.
“Supplemental Security Income relies on the truthfulness and personal integrity of the people who apply for and receive it,” said U.S. Attorney Cotter. “When people get greedy and lie to the government in order to get more money than they deserve, the people who actually qualify and need the money to survive are harmed.”
“These individuals repeatedly lied, cheated and stole from some of the most vulnerable residents of Montana,” said Special Agent in Charge Wilbert Craig of the Social Security Administration/Office of Inspector General Denver Field Division. “In many instances, the victims were their own family and left to fend for themselves. These are real crimes, impacting real lives, and extending beyond the victims to every U.S. taxpayer. I am proud of our combined efforts with the U.S. Attorney’s Office.”
Known as Supplemental Security Income (SSI), the money is drawn from general federal tax revenue and is designed to help aged, blind and disabled citizens who have little or no income. SSI provides cash to meet basic needs for food, clothing and shelter. Applications for Supplemental Security Income also impact eligibility for other federal monies, including Medicaid, survivor benefits, and SNAP, also known as food stamps.
The following individuals were convicted as part of the operation: Caroline Big Hair, Vicky Blair, Tonya Brackett, Meghan Gontz, Nelson Grandchamp, Earline Pritchard, Georgia Wetsit, Bonnie Wingo. Another individual agreed to pay back the money through a diversion program due to personal circumstance. Examples of fraud include misrepresentations about whether a recipient was married, the composition of a recipient’s household, and how much money the recipient was making as income. Those misrepresentations directly impacted whether or not the individuals were eligible to receive federal money which, in some cases, was in excess of $1,000 per month from the federal government.
The operation was a collaborative effort between U.S. Attorney’s Office for the Distrcit of Montana, the Social Security Administration and the Office of Inspector General. If you suspect that someone is fraudulently receiving federal money, call to report it at 1-800-269-0271 or log on to http://oig.ssa.gov/report.
Federal Judge Sentences Milwaukee Pimp to 20 Years ImprisonmentRead the Press Release
United States Attorney James L. Santelle announced that United States District Judge Lynn S. Adelman has sentenced Milwaukee resident Troy Randle, age 37, to 20 years imprisonment following Randle’s conviction on two federal sex-trafficking counts. The sex-trafficking counts involved two separate minor females.
Evidence introduced at Randle’s sentencing showed that he began prostituting both of the child-victims when they were just 14 years old and that he prostituted them through their 17th birthdays until his arrest by federal authorities in January of 2014. Further evidence introduced by the United States showed that Randle’s sex trafficking of these two minors took place in Milwaukee through street prostitution and at hotels; in Chicago, Illinois; Dubuque and Cedar Rapids, Iowa; Ft. Wayne, Indiana; and South Dakota. Randle ordinarily accompanied the victim-girls to these cities and provided the transportation. Randle controlled them through false expressions of love and loyalty as well as through his physical abuse of both. Randle advertised the prostitution services of both victims through postings to Backpage.com.
In making this public announcement, United States Attorney Santelle stated: “The sentence most appropriately imposed by Judge Adelman on this defendant is a genuine reflection of both the horrific victimization suffered by these two girls and the terrible impact that this type of criminal behavior has on the life and the well-being of our communities.” Santelle stated further: “The investigation and prosecution of sex-trafficking cases in the Eastern District of Wisconsin is among the highest priorities of my office, and we will continue to pursue the perpetrators of this heinous conduct with all of the resources available to us.”
Randle was prosecuted by Assistant United States Attorney Joseph R. Wall. United States Attorney Santelle commended AUSA Wall and the partnered law enforcement agencies responsible for investigating Randle’s trafficking enterprise—namely, the Federal Bureau of Investigation, the Milwaukee Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
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Federal Inmate Pleads Guilty to AssaultRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that an inmate of the U.S. Medical Center for Federal Prisoners in Springfield, Mo., pleaded guilty in federal court today to assaulting another inmate.
Dean Kinningham, 52, pleaded guilty before U.S. District Judge M. Douglas Harpool to assault with the intent to commit murder.
Kinningham admitted that he assaulted another inmate, Gary Brown, by stabbing and slashing him with a razor blade on June 4, 2014. Prison officials responded to an emergency call in the prison ward and discovered Brown with multiple lacerations on his face and neck. Kinningham, who had blood on his shirt, was also present. Kinningham stated that “this is all me,” referring to the blood in the hallway and on his clothes. Brown was treated on the scene and transported to a local Springfield hospital for treatment.
Kinningham is currently serving a 262-month sentence for armed pharmacy robbery, with a release date of March 31, 2030. Brown is currently serving a 170-month sentence for conspiracy to possess crack cocaine with the intent to distribute, with a release date of Feb. 25, 2015.
Under federal statutes, Kinningham is subject to a sentence of up to 20 years in federal prison without parole, plus a fine up to $250,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Randall D. Eggert. It was investigated by the FBI and the U.S. Bureau of Prisons.
Fair Oaks Man Found Guilty of Mortgage Fraud After 5-Day TrialRead the Press Release
SACRAMENTO, Calif. — Today, after a five-day trial, a federal jury found Sacramento area loan broker and real estate agent, Anthony Salcedo, 34, of Fair Oaks, guilty of one count of conspiracy to commit mail fraud and four counts of mail fraud for his involvement in a mortgage fraud scheme, United States Attorney Benjamin B. Wagner announced.
According to court documents and evidence produced at trial, Anthony Salcedo worked in the real estate industry beginning in 2000, was licensed as a real estate agent in 2004 and as a mortgage broker in 2006, and worked for two different mortgage lenders for five years. When selling his personal properties in 2005 and 2006, Salcedo worked with licensed mortgage broker Sean McClendon, 49, of Fair Oaks, and Anthony Williams, 47, previously of Memphis, Tennessee, to find buyers. As an incentive to complete the sales transactions, Salcedo paid kickbacks to the buyers and to McClendon outside of escrow. The payments were never disclosed to the lenders as part of the purchase and sale agreements, and the buyers’ income and assets were falsified in order to qualify for the loans.
Ultimately, substantial sums were exchanged outside of escrow as part of this scheme, equaling in one instance as much as 16 percent of the total purchase price of the property. The exchange of money outside of escrow reduces the fair market value of a property to below what is reflected in the contract price and impacts the appraised value of a home. At least two of the buyers declared bankruptcy and lost not only their investment properties, purchased by way of the scheme, but their own homes. In all, approximately $2.6 million in fraudulently obtained loans were involved in the scheme, while Salcedo and his family got out from under their $1.6 million in mortgage debt at a time when Salcedo knew the real estate market was slowing down.
“Much of the mortgage fraud that was so common in this region during the 2005-2008 timeframe was associated with dishonest real estate and mortgage financing professionals such as Anthony Salcedo and his co-defendants in this case,” said U.S. Attorney Wagner. “Accordingly, in our continuing effort to restore integrity and confidence to the residential real estate market, we have focused our enforcement efforts on identifying and prosecuting those professionals and the persons who aided and benefited from major mortgage fraud schemes.”
“To those involved in committing mortgage fraud, today’s verdict should send a clear message that this type of activity will have criminal consequences,” said Andrew J. Toth, Acting Special Agent in Charge, IRS-Criminal Investigation. “This is a case about dishonesty and collusion fueled by greed. While this verdict cannot reverse the damage caused by the defendants, it highlights the ongoing commitment of IRS-CI and our law enforcement partners to hold accountable those involved in these types of crimes.”
Co-defendant Sean McClendon pleaded guilty on October 12, 2013, and is awaiting sentencing. Co-defendant Anthony Williams pleaded guilty, was sentenced to two years and nine months in prison, and is currently serving that sentence.
Salcedo is scheduled to be sentenced on September 10, 2015, by Chief United States District Judge Morrison C. England Jr. The maximum statutory penalty for mail fraud and the related conspiracy is 30 years in prison, a $1 million fine, or both. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case is the product of an investigation by the Internal Revenue Service‑Criminal Investigation and the Federal Bureau of Investigation. Assistant United States Attorneys Jean M. Hobler and Marilee L. Miller are prosecuting the case.
Eugene Woman Sentenced to Federal Prison for Delivery of Heroin Which Contributed to Overdose DeathRead the Press Release
EUGENE, Ore. – Megan Suzanne Jacob, 25, of Lane County, Oregon, was sentenced on Wednesday, June 17, 2015, by U.S. District Judge Michael McShane to 60 months in prison for conspiracy to distribute methamphetamine and heroin. Following her release from prison, Jacob will be on supervised release for five years.
Following a drug overdose death, the Lane County Interagency Narcotics Team and the FBI investigated the source of supply of the drugs taken by the deceased and determined that Jacob had sold, and injected, the heroin that contributed to the death. In July 2014, law enforcement made a series of undercover drug buys of methamphetamine and heroin from Jacob for which she was ultimately arrested and pled guilty
Law enforcement determined that on the day of the overdose, Jacob had been introduced to the victim, a first-time heroin user, through a mutual friend. The two later met at a hotel where she sold the deceased heroin, and administered an injection. Later that same night, the deceased asked for more heroin. Jacob gave another injection to the deceased, who began to overdose. Jacob left the hotel, apparently while the deceased was still alive, and did not call 9-1-1. The deceased was later discovered in the hotel room. After a medical examination, the cause of death was determined to be a mixed drug overdose of heroin and methamphetamine. Because the deceased had used a significant amount of methamphetamine earlier in the day that was obtained from another source, the death could not solely be attributed to Jacob and her distribution of heroin.
Acting U.S. Attorney Billy J. Williams said that, “Heroin is a deadly drug that causes far too many tragic and needless deaths. The U.S. Attorney’s Office is committed to working with our federal and local law enforcement partners to fight this epidemic, and to hold heroin traffickers accountable.”
Jacob has prior felony convictions for possession of heroin and methamphetamine and failure to appear.
The investigation of this case was conducted by the Lane County Interagency Narcotics Team and the Eugene Resident Agency office of the FBI. The case was prosecuted by Assistant U.S. Attorney Jeffrey Sweet.
Eleven Defendants Charged in Manhattan Federal Court with Selling Crack Cocaine and Heroin in the BronxRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, James J. Hunt, Special Agent in Charge of the New York Field Division of the Drug Enforcement Administration (“DEA”), and William J. Bratton, the Commissioner of the New York City Police Department (“NYPD”), today announced the unsealing of five Indictments charging a total of 11 defendants with allegedly engaging in the distribution of crack cocaine and heroin in the vicinity of the Forest Houses housing project in the 42nd Precinct, in the Bronx, New York. Seven defendants were taken into custody today and an eighth defendant is currently in state custody on another charge. The seven defendants who were arrested today will be presented and arraigned before U.S. Magistrate Judge Gabriel W. Gorenstein later today. Four defendants remain at large.
Manhattan U.S. Attorney Preet Bharara said: “Crack cocaine and heroin wreak devastation in the community. The hardworking people living in and around the Forest Houses deserve better – they deserve a safe environment to call home. Investigating and prosecuting the kind of drug trafficking conduct alleged of these defendants is a significant step toward protecting Forest Houses residents and achieving that goal.”
DEA Special Agent in Charge James J. Hunt stated, “For two years, a multi-agency operation targeted those responsible for littering the Forest Housing Development and surrounding areas with drugs. This operation was focused not only on making these arrests and dismantling a drug trafficking ring, but it was focused on reclaiming this neighborhood for the hard working residents who are exposed to drug trafficking and the perils associated.”
Police Commissioner William J. Bratton said: “The NYPD remains committed to protecting the residents of public housing as demonstrated by these arrests and indictments. I would like to thank the investigators of Narcotic Borough Bronx, the U.S. Attorney’s Office, Southern District and our law enforcement partners for their efforts to stop the sale of illegal narcotics in the Forrest Houses and to improve the quality of life of the families who live there.”
As alleged in the Indictments unsealed today in Manhattan federal court[1]:
[1] As the introductory phrase signifies, the entirety of the text of the Indictments and the description of the Indictments set forth herein constitute only allegations, and every fact described should be treated as an allegation.
United States v. Antwoine Williams, et al., 15 Cr. 356 (PAC)
Between July 2013 and September 2014, ANTWOINE WILLIAMS, ELVIS ARIAS, GEORGE MONSANTO, JESUS BENEDITH, MICHAEL CABAN, and THEODORE WILLIAMS conspired to sell crack cocaine in the vicinity of the Forest Houses in the Bronx. During the course of the conspiracy, the defendants sold crack cocaine to undercover law enforcement officers on numerous occasions. Certain defendants also sold crack cocaine to the undercover officers on behalf of their co-conspirators or worked together to complete the sales to the undercover officers.
United States v. James Jacobs and Moses Bermudez, 15 Cr. 357 (JSR)
Similarly, between July 2013 and September 2014, JAMES JACOBS and MOSES BERMUDEZ conspired to sell heroin in the vicinity of the Forest Houses in the Bronx. During the course of the conspiracy, the defendants sold heroin to undercover law enforcement officers on numerous occasions.
United States v. Percy Kearney, 15 Cr. 352 (RA)
United States v. Raheem Barber, 15 Cr. 353 (KBF)
United States v. Steven Jude, 15 Cr. 355 (JFK)
Between July 2013 and September 2014, each of the defendants charged in these three indictments sold crack cocaine to undercover officers in the vicinity of the Forest Houses in the Bronx. Each defendant sold crack cocaine to undercover officers on multiple occasions.
* * *
The defendants in United States v. Williams, et al. face maximum terms of life in prison and mandatory minimum terms of 10 years in prison. The defendants in United States v. Jacobs and Bermudez face maximum terms of 40 years in prison and mandatory minimum terms of five years in prison. KEARNEY, BARBER, and JUDE each face a maximum term of 20 years in prison.
The statutory maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants will be determined by the Court.
A chart containing the names, ages, narcotics type, and residence information of the defendants who were arrested today is attached.
Mr. Bharara praised the outstanding investigative work of the DEA and the NYPD, and also thanked the Department of Homeland Security, Homeland Security Investigations, and the NYC Department of Investigation's Office of the Inspector General for NYCHA for their assistance.
These cases are being handled by the Office’s Violence and Organized Crime Unit. Assistant United States Attorneys Jessica Lonergan and Jessica Fender are in charge of the prosecutions.
The charges contained in the Indictments are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
United States v. Antwoine Williams, et al.
NAME
AGE
NARCOTIC
RESIDENCE
Antwoine Williams, a/k/a “Ace”
27
Crack Cocaine
Bronx
Elvis Arias, a/k/a “J,” a/k/a “Ex”
25
Crack Cocaine
Bronx
Jesus Benedith, a/k/a “Shorty,” a/k/a “Mike”
21
Crack Cocaine
Bronx
Michael Caban, a/k/a “Baretta”
27
Crack Cocaine
Bronx
United States v. James Jacobs and Moses Bermudez
NAME
AGE
NARCOTIC
RESIDENCE
Moses Bermudez, a/k/a “Moreno”
52
Heroin
Bronx
United States v. Percy Kearney
United States v. Raheem Barber
United States v. Steven Jude
NAME
AGE
NARCOTIC
RESIDENCE
Percy Kearney, a/k/a “Boogie”
32
Crack Cocaine
Bronx
Raheem Barber, a/k/a “Grey”
38
Crack Cocaine
Bronx
Steven Jude, a/k/a “Paunch”
45
Crack Cocaine
Bronx
El Paso Man Pleads Guilty in New Mexico to Violating Federal Narcotics Trafficking and Firearms LawsRead the Press Release
ALBUQUERQUE – Carlos Davenport, 41, of El Paso, Texas, pleaded guilty today in federal court in Albuquerque, N.M., to methamphetamine trafficking and firearms charges. Under the terms of his plea agreement, Davenport will be sentenced to 15 years in prison followed by a term of supervised release to be determined by the court.
Davenport and his co-defendant Luis Contreras, 20, of Albuquerque, were arrested on Dec. 13, 2014, in Bernalillo County, N.M., after law enforcement officers executed a consensual search on the vehicle in which Davenport and Contreras were traveling and found ten pounds of methamphetamine. Davenport and Contreras were subsequently indicted on Jan. 8, 2015, and charged with conspiracy to possess methamphetamine with intent to distribute, possession of methamphetamine with intent to distribute on Dec. 13, 2014, and using and carrying firearms in relation to a drug trafficking crime on Dec. 13, 2014. All offenses took place in Bernalillo County.
During today’s proceedings, Davenport pled guilty to Counts 1 and 3 of the indictment charging him with conspiracy to distribute methamphetamine and using and carrying a firearm in relation to a drug trafficking crime. In entering his guilty plea, Davenport admitted that on Dec. 13, 2014, while traveling eastbound on Interstate 40, a law enforcement officer conducted a traffic stop on his vehicle. He further admitted giving the officer consent to search the vehicle and that the officer found ten pounds of methamphetamine and two firearms during his search of the vehicle. Davenport acknowledged that he and his co-defendant intended to distribute the methamphetamine to others and had the firearms in the vehicle for protection related to the methamphetamine.
Davenport has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has not been scheduled.
Contreras has entered a not guilty plea to the indictment, and is currently scheduled for trial on Aug. 3, 2015. Charges in complaints and indictments are merely accusations and defendants are presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by the Albuquerque offices of the FBI and Homeland Security Investigations (HSI) and the Albuquerque Police Department. Assistant U.S. Attorneys James R.W. Braun and Joel R. Meyers are prosecuting the case.
Eighteen Charged in Steroid Trafficking RingRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces the unsealing of an indictment charging the following persons with federal crimes involving steroid trafficking:
DAVID ARROYO, a/k/a “Big D,” (40, Orlando)
VINCENT SPERTI, (36, Lake Mary)
JOHN WALKER, (41, Lake Mary)
JEFFREY BERRIOS, (43, Lake Mary)
HUNTER RAWLS, (36, Heathrow)
JEFFREY WALKER, (22, Lake Mary)
JASON BERGSTRESSER, (26, Longwood)
CHRISTOPHER EADDY, (43, Winter Springs)
ALLISON EADDY, (32, Winter Springs)
JOHN ERBER, (41, Lake Mary)
BREA TATO, (40, Lake Mary)
GUILLERMO OTERO, (31, Deltona)
DAVID CENTENO, (29, Sanford)
STEVEN GRODEN, (36, Lake Mary)
MELISSA SPERTI, (33, Lake Mary)
ERIC BOCCARD, (41, Mount Dora)
SANTIAGO RIOS, (41, Deltona)
ROBERT GONZALEZ, (42, Orlando)
David Arroyo, Vincent Sperti, John Walker, Jeffrey Berrios, Hunter Rawls, Jeffrey Walker, Jason Bergstresser, Christopher Eaddy, Allison Eaddy, John Erber, Brea Tato, Eric Boccard, and Robert Gonzalez are charged with conspiracy to manufacture, distribute, and possess with intent to distribute controlled substances. They each face a maximum penalty of 20 years in prison.
David Arroyo, Vincent Sperti, Guillermo Otero, David Centeno, Steven Groden, Melissa Sperti, and Santiago Rios are charged with conspiracy to conduct international money laundering. They each face a maximum penalty of 20 years in prison.
The indictment also notifies the defendants that the United States is seeking a money judgment in the amount of the proceeds of the drug trafficking and money laundering offenses.
According to the indictment, beginning in or about April 2012, and continuing through August 2014, the defendants operated a steroid drug trafficking conspiracy in Central Florida, primarily in Seminole County, and were responsible for shipping illegal steroids throughout the United States and internationally. The members of the conspiracy played various roles in the operation of the Internet-based, steroid-trafficking operation - some as organizers, others as manufacturers and shippers, some who sent money to China for the purchase of raw steroids, and some who picked up the proceeds of the drugs sales. The group allegedly sold all types of illegal steroids, including oral capsules and oil-based injectable steroids. The orders were made through web sites maintained in foreign countries, and the steroids were processed and sent to customers from Central Florida via United States Mail.
The indictment further alleges that members of the organization went to great lengths to disguise their participation in the receipt and distribution of illegal steroids and proceeds, including the use of fake names and false identities, the use of different postal facilities in Florida, South Carolina, and other states, and the use of Money Gram and Western Union to pick up money from the drugs sales at numerous locations throughout Central Florida.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the U.S. Postal Inspection Service and the Drug Enforcement Administration, with assistance from the U.S. Marshals Service. It will be prosecuted by Assistant United States Attorney E. Jackson Boggs Jr.
Defendant Sentenced to 73 Months on Gun ChargeRead the Press Release
United States Attorney Kenyen R. Brown of the Southern District of Alabama announced that Quy Ngoc Nguyen, 25, of Mobile, Alabama was sentenced today by United States District Judge Callie V. S. Granade to 73 months imprisonment for possession of a firearm by a felon. The judge ordered that Nguyen serve a three-year term of supervised release upon completing his term of imprisonment and that he pay a $100 mandatory special assessment. Nguyen was arrested in March 2014 by Mobile police officers for committing several burglaries. He was indicted by a federal grand jury in December 2014 for possessing a revolver during the burglaries, for which he received state court sentences of imprisonment.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by Assistant United States Sinan Kalayoglu.
Corporate Audit Director Sentenced to One Year for Insider TradingRead the Press Release
Chicago ─ A certified public accountant who was involved in the auditing process at a publicly-traded company based in Chicago was sentenced to one year and one day by U.S. District Court Judge Sara L. Ellis for engaging in insider trading of the company’s securities that made him an illegal profit of more than $286,000 in 2012. Dombrowski was also ordered to forfeit $286,211.55 and serve a term of two years of supervised release after his term of imprisonment. The defendant, Steven M. Dombrowski, 50, of Chicago, was the director of corporate audit for Allscripts Healthcare Solutions, Inc., and pled guilty to one count of securities fraud in December 2014. Dombrowski was ordered to surrender to the Bureau of Prisons on September 14, 2015.
According to the indictment, Dombrowski misused material nonpublic information he knew about Allscripts’ performance for the first quarter of 2012 and purchased put options and engaged in short sales of stock through a trading account in his wife’s maiden name that he controlled, which resulted in illegal profits of approximately $286,211.
Dombrowski and the employees he supervised were responsible for auditing and testing the processes and procedures Allscripts used to compute and report its financial performance. Allscripts provides information technology solutions to the healthcare industry and its common stock is traded on the NASDAQ stock market under the symbol MDRX.
Between April 10 and April 28, 2012, a quarterly blackout period was in effect at Allscripts. The blackout prohibited certain employees, including Dombrowski, who were given written notice and who had access to material nonpublic information, from engaging in trades of Allscripts securities 15 days before the end of a quarter, and ending after the second full business day following the company’s quarterly earnings announcement.
Dombrowski learned in April 2012 through his employment that Allscripts first quarter financial results were going to be less favorable than market expectations when they were publicly announced on April 26, 2012. Throughout April, Dombrowski conducted securities transactions that he designed to be profitable if the price of Allscripts stock declined, including purchasing put options and short selling stock, which he knew was prohibited and violated the company imposed blackout period. Allscripts stock, in fact, declined when its 2012 first quarter announcement revealed lower sales, less revenue, and lower earnings per share than the first quarter of 2011. After Allscripts stock declined on and after April 26, 2012, Dombrowski offset his Allscripts securities positions and profited approximately $286,211 from insider trading.
The sentence was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation. The Chicago office of the U.S. Securities and Exchange Commission assisted in the investigation.
“We will vigorously prosecute defendants who commit insider trading at publicly-traded companies located in our district,” said U.S. Attorney Fardon. “Mr. Dombrowski betrayed the trust placed in him by his employer, Allscripts, and used his access to confidential company information for his own personal gain.”
The government was represented by Assistant United States Attorney Sunil Harjani in this case.
Colorado Springs man in car viewing child pornography on Fort Carson Army Base sentenced to 7 years in federal prisonRead the Press Release
DENVER – Francis Hector Calar, age 54, of Colorado Springs, Colorado, was sentenced yesterday by U.S. District Court Judge Christine M. Arguello to serve 84 months in federal prison, followed by 10 years on supervised release, for possession of child pornography, U.S. Attorney John Walsh and FBI Denver Special Agent in Charge Thomas Ravenelle announced. In addition, Calar was ordered to pay $3,000 in restitution to each of the six victims that requested restitution. Calar was arrested in March of 2014 after a military police officer caught him masturbating in his car outside a building with unsecured WiFi on Fort Carson Army Base.
Calar was charged by Criminal Complaint on March 11, 2014. He was indicted by a federal grand jury in Denver on April 7, 2014. He pled guilty before Judge Arguello on March 24, 2015. He was sentenced yesterday, Tuesday, June 16, 2015.
According to court documents, at approximately 10:30 a.m., a Military Police Officer was dispatched to investigate a complaint of a suspicious vehicle parked in a public parking lot located at a building on Fort Carson Army Base. Upon arrival, the officer observed an individual sitting in the driver’s seat of a Ford sedan. The officer attempted to contact the individual, later identified as Francis Hector Calar, however, Calar was intently focused on an image of the screen of his laptop computer. The officer saw that Calar was masturbating to a graphic image of child pornography. After finally noticing the officer’s presence, Calar quickly closed his laptop and threw it on the passenger seat. He then put his penis back inside his pants. He was then ordered to exit the car and was taken into custody.
Subsequent investigation revealed that Calar, a civilian military contract employee, often parked in the place where he was initially contacted because he was able to obtain unsecured WiFi access to child pornography. He used this access to view child pornography. Calar first became interested in child pornography approximately five or six years ago after his brother was arrested for the sexual assault of a child. Calar visited specific chat rooms and searched for child pornography during breaks from work.
Calar was active with children, coaching youth volleyball for young girls and youth baseball for young boys. He was also active in his church, and has previously taught Sunday school for children at his church.
The defendant’s collection was highly organized; he acknowledged categorizing files by the ages of the children depicted in the images, such as “0-5” and “6-8”. Further, he had more than 15,000 child pornography images and 764 child pornography videos on an external hard drive and other computer digital media. His child pornography collection included 83 identified child pornography series.
Calar obtained and distributed child pornography through chat rooms on the Internet. He previously used a peer-to-peer file sharing network to distribute child pornography when he was in the early stages of collecting child pornography. He uploaded child pornography to a specific child pornography website. The forensic examination revealed that he eventually evolved to using Skype and email to distribute child pornography to other collectors.
“Today’s prison sentence is appropriate, especially given the fact that the defendant had an extensive, well organized collection of child pornography and that he was involved in many different youth organizations,” said U.S. Attorney John Walsh. “Thanks to the work of the Fort Carson Military Police and the FBI, this child pornographer is being held accountable for possessing these heinous images.”
“Calar’s sentence is an illustration of the FBI’s commitment to protect our most vulnerable citizens, our children,” said FBI Denver Special Agent in Charge Thomas Ravenelle. “The FBI will continue to work diligently with our law enforcement partners and the United States Attorney’s Office to investigate and prosecute cases involving the sexual exploitation of children.”
This investigation was conducted by the U.S. Army Criminal Investigative Division (CID) and the Federal Bureau of Investigation (FBI).
Calar was prosecuted by Project Safe Childhood Coordinator Assistant U.S. Attorney Alecia Riewerts.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, PSC 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 PSC, please visit http://www.justice.gov/psc/ For more information about Internet safety education, please visit http://www.justice.gov/psc/resources.html and click on the tab "resources."
Cisco Man Faces up to 10 Years in Federal Prison for Possessing Child PornographyRead the Press Release
LUBBOCK, Texas — A 43-year-old Cisco, Texas, man appeared in federal court this week and pleaded guilty, before U.S. Magistrate Judge Nancy M. Koenig, to one count of possession of child pornography, announced Acting U.S. Attorney John R. Parker of the Northern District of Texas.
Robert Jarold Eckhart, who remains on bond, faces a maximum statutory penalty of 10 years in federal prison, a $250,000 fine and a lifetime of supervised release. According to plea documents filed in his case, if the Court accepts the plea agreement, the parties agree that the appropriate maximum term of imprisonment is 24 months’ imprisonment. A sentencing date was not set.
According to documents filed in the case, Eckhart used his Apple iPod 4 to communicate with other persons over the internet and communicate with several persons about adult pornography and child pornography. Eckhart advised that his interests included younger males, and as a result, he received numerous images of minor males engaged in sexually explicit conduct. Between May 2011 and May 2012 Eckhart knowingly possessed his iPod knowing that it contained numerous images of child pornography.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about Internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The Federal Bureau of Investigation and investigated. Assistant U.S. Attorney Steven M. Sucsy is prosecuting.
Chicago Resident Indicted for Using Stolen Identities to File False Tax ReturnsRead the Press Release
A Chicago man was indicted by a grand jury sitting in the Northern District of Illinois for using stolen identities to file false federal income tax returns, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney Zachary T. Fardon of the Northern District of Illinois.
Carlos L. Smith was arraigned earlier today on a 34-count indictment. He was charged with 14 counts of wire fraud, nine counts of theft of government funds, six counts of aggravated identity theft and five counts of filing false income tax returns. According to the allegations in the indictment, beginning in February 2013 and continuing through April 15, 2015, Smith operated CLS Financial Services, a company that assisted with credit repair, business consulting and tax return preparation. Smith used individuals’ names and social security numbers to prepare false tax returns that each claimed thousands of dollars in tax refunds. The U.S. Treasury refund checks were mailed to addresses linked to Smith or directly deposited into bank accounts that Smith controlled. Smith also filed fraudulent tax returns in his own name. In total, Smith prepared false tax returns that claimed refunds of more than $400,000.
If convicted, Smith faces a statutory maximum sentence of 20 years in prison for each wire fraud count, a statutory maximum sentence of 10 years in prison for each theft of government funds count, a mandatory minimum sentence of two years in prison for aggravated identity theft, and a statutory maximum sentence of three years in prison for each count of filing false income tax returns. Smith also faces potential financial penalties, including fines and restitution.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Fardon commended special agents of IRS-Criminal Investigation and the U.S. Postal Inspection Service, who investigated the case, and Trial Attorneys Sonia M. Owens, John T. Mulcahy and Ryan R. Raybould of the Tax Division, who are prosecuting the case. Ciraolo also thanked the U.S. Attorney’s Office in Chicago for their substantial assistance.
Charleston man pleads guilty to carrying a firearm during a drug offenseRead the Press Release
CHARLESTON, W.Va. – United States Attorney Booth Goodwin announced that a Charleston, West Virginia man pleaded guilty today in federal court in Charleston to carrying a firearm during a drug trafficking offense. James Philip Daugherty, 20, entered a guilty plea to carrying a loaded Ruger semi-automatic pistol on January 9, 2015, while he possessed crack cocaine that he intended to distribute in and around Charleston, West Virginia.
Daugherty faces at least 5 years and up to life in federal prison when he is sentenced on September 23, 2015.
The investigation was conducted by the Kanawha County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Jennifer Rada Herrald is in charge of the prosecution.
This case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking existing local programs targeting gun crime.
California Woman Pleads Guilty in Homewood- Based Drug Trafficking RingRead the Press Release
PITTSBURGH - A resident of San Bernardino, Calif., pleaded guilty in federal court to a charge of conspiracy to possess with intent to distribute and distribute 500 grams or more of cocaine, United States Attorney David J. Hickton announced today.
Misha Cannon, 49, pleaded guilty to one count before United States District Judge Mark R. Hornak.
In connection with the guilty plea, the court was advised that in 2013, the Federal Bureau of Investigation and other agencies joined forces in a multi-agency wiretap investigation of drug trafficking and violence in the Homewood section of Pittsburgh. The interception of wire and electronic communications began in December 2013 and continued through the end of August 2014. During that timeframe, Misha Cannon was intercepted over the wire conspiring with others, including her brother, Lionel Cannon, to possess with intent to distribute and distribute cocaine, which was shipped from California to the Western District of Pennsylvania through the United States Postal Service or commercial carrier. During the conspiracy, Misha Cannon was responsible for transporting proceeds of the cocaine trafficking from the Western District of Pennsylvania to California. In August 2014, Misha Cannon also helped Lionel Cannon obtain a new supply of cocaine and conducted a deal for the purchase of one kilogram of cocaine, which was later seized by law enforcement.
Judge Hornak scheduled sentencing for Oct. 15, 2015. The law provides for a minimum sentence of five years in prison, a maximum sentence of 40 years in prison, a fine of not more than $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued the defendant’s detention.
Assistant United States Attorney Tonya Sulia Goodman is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Greater Pittsburgh Safe Street Task Force, Wilkinsburg Police Department, Allegheny County Sheriff’s Office, Pennsylvania Office of the Attorney General, Munhall Police Department, Duquesne Police Department, Monroeville Police Department, Allegheny County Police Department, West Mifflin Police Department, Bellevue Police Department, and the Pittsburgh Bureau of Police conducted the investigation that led to the prosecution of Misha Cannon.
Buffalo Man Sentenced on Drug ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Mujihad Miller, 37, of Buffalo, NY, who was convicted of possession with intent to distribute and distribution of crack cocaine, was sentenced to 60 months in prison by Senior U.S. District Judge William M. Skretny.
Assistant U.S. Attorney Thomas S. Duszkiewicz, who handled the case, stated that the defendant sold crack cocaine to confidential sources working with the Drug Enforcement Administration. Miller sold a total of approximately 60 grams of crack cocaine on three dates in July, September and October of 2013. The defendant was arrested on November 18, 2013. Law enforcement officers executed a search warrant at his Military Road residence and recovered a digital scale with cocaine residue and a fake kilogram of crack cocaine.
The sentencing is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Division.
Buffalo Man Sentenced on Drug and Firearm ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Spiwe Barnes, 34, of Buffalo, NY, who pleaded guilty to conspiracy to possess with intent to distribute, and to distribute, five kilograms or more of cocaine and being a felon in possession of a firearm, was sentenced to 120 months in prison by Senior U.S. District Judge William M. Skretny.Assistant U.S. Attorney Timothy C. Lynch, who handled the case, stated that beginning in early 2010 and continuing through June 14, 2011, the defendant distributed between five and 15 kilograms of cocaine in the Buffalo area. Barnes and co-defendant Anthony Avery initially obtained cocaine from a source in Ohio. This source utilized Linda Johnson to transport the cocaine to Barnes and Avery in Buffalo. Later on, Barnes and Avery obtained cocaine from Tyree Bishop, who was obtaining the cocaine in Detroit, Michigan.
All four defendants have all been convicted.
The sentencing is the culmination of an investigation by the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Division, the Buffalo Police Department, under the direction of Commissioner Daniel Derenda, and the Erie County Sheriff’s Department, under the direction of Sheriff Timothy Howard. Assistance was also provided by the Erie County District Attorney’s Office, under the direction of Frank Sedita.
Bridgeport Man Sentenced to 7 Years in Prison for Role in Drug Robbery SchemeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that HUMBERTO SOTO, 27, of Bridgeport, was sentenced today by U.S. District Judge Jeffrey Alker Meyer in Bridgeport to 84 months of imprisonment, followed by five years of supervised release, for planning to conduct an armed robbery of narcotics stash house.
This matter stems from “Operation Samson,” an initiative headed by the ATF and the Bridgeport and New Haven Police Departments that targeted violent criminals, illegal firearm possession and firearm trafficking. In the spring of 2014, approximately 40 ATF special agents and personnel from Connecticut and across the country were deployed with New Haven and Bridgeport Police to conduct numerous covert operations.
According to court documents and statements made in court, in March 2014, the ATF began an investigation into Carlos “Camby” Colon and Carlos “Joel” Colon, who were known narcotics and firearm traffickers in Bridgeport. Law enforcement also had received information that Joel Colon was interested committing an armed robbery of a drug dealer. During the investigation, which employed the use of an ATF agent working in an undercover capacity, the Colons recruited SOTO and others to commit an armed robbery of what they believed to be a narcotics stash house of 15 kilograms of cocaine. In recorded conversations, SOTO agreed to secure a firearm for the robbery and stated that any occupants of the house who brandished a weapon would be shot. SOTO also stated that all of the participants must be dressed in black, not have cellular telephones and wear gloves, and suggested that they should create fictitious tattoos in order to avoid identification.
On April 11, 2014, SOTO, the Colons, Markus Mendez, Nelson Diaz, Trevor Pierce and Hiram “Gringo” Mojica gathered at a location in Stamford where they believed they would be informed of the address of the narcotics stash house, and would then travel to the stash house to conduct the robbery. All seven were arrested at that time. A search of the center console of the vehicle that SOTO and Mendez drove to the meet location revealed a loaded and cocked Ruger 9mm pistol. A search of the car that Diaz, Pierce and Mojica drove to the location also revealed a loaded .40 caliber pistol.
SOTO has been detained since his arrest. On March 2, 2015, he pleaded guilty to one count of conspiracy to interfere with commerce by robbery and one count of use of a firearm in furtherance of a crime of violence.
Camby Colon, Joel Colon, Mendez, Diaz, Pierce and Mojica have pleaded guilty and await sentencing.
This case is being prosecuted by Assistant U.S. Attorney Vanessa Richards.
Beckley woman pleads guilty to passing counterfeit moneyRead the Press Release
BECKLEY, WV – United States Attorney Booth Goodwin announced today that Kenyata E. Smith, 34, of Beckley, West Virginia pleaded guilty in federal court in Beckley to passing counterfeit money. Smith admitted that on April 6, 2014, she passed $100 in counterfeit money at the Dairy Queen in Beaver, West Virginia.
Smith, who is scheduled to be sentenced on October 21, 2015, faces up to a year in jail and a $100,000 fine.
This case is being investigated by the United States Secret Service. Assistant United States Attorney Eric Bacaj is handling the prosecution.
Beckley area woman sentenced for federal drug chargeRead the Press Release
KLEY, W.Va. – United States Attorney Booth Goodwin announced today that a Sophia woman was sentenced in federal court in Beckley for a federal drug offense. Andrea Austin, age 43, of Sophia, West Virginia was sentenced to five years of probation plus 100 hours of community service. Austin previously pled guilty in February of 2015, to distributing heroin to a person cooperating with law enforcement authorities. The drug deal took place on East Camilia Street in Sophia.
This case was investigated by the Beckley Raleigh County Drug and Violent Crime Task Force and is being prosecuted under the Beckley Pill Initiative directed by the United States Attorney’s Office.
This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The United States Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
Beckley area man pleads guilty to distributing oxymorphoneRead the Press Release
BECKLEY, W.Va. – United States Attorney Booth Goodwin announced today that Christopher Lee Saunders, 42, of Beckley, West Virginia, plead guilty in federal court in Beckley to distributing oxymorphone. Saunders admitted that on January 22, 2015, he sold oxymorphone to a confidential informant working with law enforcement authorities. The drug deal took place on the WalMart parking lot located at Robert C. Byrd Drive in MacArthur, West Virginia.
Saunders faces up to 20 years in prison and a $1,000,000 fine. United States District Judge Irene C. Berger scheduled the sentencing for October 8, 2015.
The Beckley/Raleigh County Drug and Violent Crime Unit conducted the investigation.
This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The United States Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
Baltimore man who led multi-state heroin trafficking operation appears in federal court in West VirginiaRead the Press Release
MARTINSBURG, Brian Alexander Hall, 27, of Windsor, Maryland, appeared before a federal judge in Martinsburg today on heroin trafficking charges, United States Attorney William J. Ihlenfeld, II, announced.
Hall appeared before U.S. Magistrate Judge Robert W. Trumble on the following charges:• One count of “Conspiracy to Distribute Heroin,” for which he faces up to 20 years in prison and a fine of up to $1,000,000,
• One count of “Use of a Telephone to Facilitate the Distribution of Heroin and Cocaine Hydrochloride,” for which he faces up to four years in prison and a fine of up to $500,000,
• Four counts of “Interstate Travel in Aid of Racketeering.” He faces up to five years in prison and a fine of up to $500,000 on each of the four counts,
• Two counts of “Use of a Telephone to Facilitate the Distribution of Heroin.” He faces up to four years in prison and a fine of up to $500,000 on each of the two counts,
• Eleven counts of “Aiding and Abetting Possession with Intent to Distribute Heroin.” He faces up to 20 years in prison and a fine of up to $1,000,000 on each of the eleven counts, and
• Three counts of “Causing Interstate Travel in Aid of Racketeering – Heroin.” He faces up to five years in prison and a fine of up to $500,000 on each of the three counts.Judge Trumble scheduled a jury trial for Hall on August 18, 2015 in federal court in Martinsburg, and appointed a Federal Public Defender to represent him. Hall was released after the hearing today and is subject to conditions of home confinement and electronic monitoring along with other standard terms and conditions.
Assistant U.S. Attorneys Paul Camilletti and Anna Krasinski are prosecuting the case on behalf of the government. The Federal Bureau of Investigation, the West Virginia State Police, and the Eastern Panhandle Drug and Violent Crime Task Force, a HIDTA-funded initiative, are leading the investigation.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.Arkansas Man Sentenced to Prison for Federal Tax FraudRead the Press Release
A Springdale, Arkansas, man was sentenced today in the U.S. District Court in Fayetteville, Arkansas, for multiple tax crimes, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney Conner Eldridge of the Western District of Arkansas.
Doyle Smith, 56, was sentenced to serve 48 months in prison to be followed by five years of supervised release and ordered to pay a $5000 fine. On Feb. 11, following a three-day trial before U.S. District Judge Timothy L. Brooks of the Western District of Arkansas, a jury found Smith guilty of four counts of filing a false tax return, one count of corruptly endeavoring to obstruct and impede the administration of the internal revenue laws and one count of presenting a fictitious financial obligation.
According to evidence introduced at trial, in 2008 and 2009, Smith submitted four false individual federal tax returns for tax years 2005 through 2008, which falsely reported a total of more than $1.4 million in fictitious federal tax withholdings. Based on these fictitious withholding amounts, Smith claimed a total of $1,021,457 in income tax refunds that he was not entitled to receive. Smith also submitted false claims and correspondence to both the Internal Revenue Service (IRS) and third-parties in an attempt to cause the IRS and U.S. Treasury to pay his debts to third parties and to obstruct the IRS’ tax administration efforts. For example, in January 2010, Smith mailed to the Department of Arkansas Finance and Administration a fictitious financial instrument titled “U.S. Treasury Trust Account Money Order.” This fictitious document purportedly obligated U.S. Treasury funds in the amount of $129,439 to pay for outstanding sales taxes that Smith owed to the state of Arkansas.
“Individuals like Doyle Smith, who commit criminal tax offenses and attempt to use the U.S. Treasury as their personal slush fund, will be identified, investigated, prosecuted and incarcerated,” said Acting Assistant Attorney General Ciraolo. “The message from today’s sentencing is clear: those who attempt to cheat the system will pay a heavy price for their criminal conduct.”
“Smith, in his fraudulent scheme, attempted to steal taxpayer money from the U.S. Treasury for his own benefit,” said U.S. Attorney Eldridge. “Those who steal from the U.S. Treasury steal directly out of the pockets of the hard-working people of the Western District of Arkansas. With today’s sentence, a strong message has been sent that our office and our law enforcement partners will relentlessly pursue fraud wherever we find it.”
“Today’s sentencing is a reminder of the penalties individuals face when submitting false claims for federal income tax refunds,” stated Special Agent in Charge Christopher A. Henry of the IRS-Criminal Investigation (CI). “IRS-Criminal Investigation will continue their aggressive pursuit of those who use fraudulent methods in an attempt to corrupt our nation’s tax system, and our unwavering commitment to protecting the interests of law-abiding taxpayers.”
“It is the Treasury Inspector General for Tax Administration’s mission to protect the integrity of the Internal Revenue Service and promote the fair administration of our federal tax system,” said Special Agent in Charge Ruben Florez of the Treasury Inspector General for Tax Administration’s (TIGTA’s) Mid-States Field Division. “TIGTA and its law-enforcement partners will vigorously investigate individuals that attempt to corruptly interfere with the administration of the internal revenue laws through fraudulent means, and will do everything within its power to ensure that those involved will be prosecuted to the fullest extent of the law. Today’s sentencing demonstrates that our justice system will not tolerate these types of actions.”
Acting Assistant Attorney General Ciraolo and U.S. Attorney Eldridge commended the special agents of IRS-CI and TIGTA, who investigated the case, as well as Trial Attorneys Robert Kemins and David Zisserson of the Tax Division, who prosecuted the case.