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Monday 15 June 2015
Leader of Imperial Gangsters Sentenced to Life in Prison for Five Murders, One Attempted Murder and Other Gang-Related CrimesRead the Press Release
A leader of the Imperial Gangsters street gang was sentenced today to life in prison for five counts of murder in aid of racketeering and other RICO-related charges, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney David A. Capp of the Northern District of Indiana.
Juan Briseno, aka Tito, 25, of Hammond, Indiana, was sentenced by Chief Judge Philip P. Simon of the Northern District of Indiana to a total of six life sentences plus 10 years in prison. The sentences will run consecutively.
On March 6, 2015, a federal jury in the Northern District of Indiana convicted Briseno of engaging in a RICO conspiracy, engaging in a drug distribution conspiracy, five counts of murder in aid of racketeering, one count of attempted murder in aid of racketeering, and a firearms count related to the attempted murder.
According to the evidence presented at trial, Briseno was a leader of the 149th Street Imperial Gangsters, a violent clique of the Imperial Gangsters based in East Chicago, Indiana. In his leadership role, Briseno supervised prospective gang members known as “shorties.”
The evidence showed that the Imperial Gangsters had a long-standing rule that gang members were to shoot rival gang members on sight, and that they had a policy to shoot anyone selling drugs in their neighborhood when such persons had not either purchased the drugs from the Imperial Gangsters or paid “taxes” to the gang for the right to sell drugs in their territory. The five murders of which Briseno was convicted were committed consistent with these directives.
According to witness testimony, Briseno expressed no remorse for his participation in various murders. Indeed, he bragged about killings and encouraged others to do the same.
With regard to the specific murders, the evidence at trial demonstrated that, on Sept. 26, 2007, Briseno knocked on Luis Ortiz’s apartment door in Hammond, Indiana, and shot him dead in the doorway. According to the evidence presented at trial, Briseno targeted Ortiz because he was a member of the rival Latin King Street Gang.
Additionally, the evidence showed that, on June 3, 2008, Briseno killed both Miguel Mejias, a former member of the Latin Kings, and Michael Sessum, an associate of Mejias, while they were unarmed and bringing takeout food to their pregnant girlfriends. According to the evidence presented at trial, Briseno fired multiple shots into Mejias’ residence, striking a female victim in the arm while she was holding her infant child. Another pregnant female victim and multiple minor victims also were inside the apartment at the time. According to testimony presented at trial, in the weeks prior to the confrontation, Mejias implored a common friend to tell Briseno that Mejias was no longer “gangbanging” and did not want any trouble. In response to this message, Briseno said, “[expletive] him, he was going to bring [Latin] Kings into our neighborhood.”
The evidence at trial also demonstrated that, on Feb. 7, 2010, Briseno and his associates murdered rival Two-Six gang member Miguel Colonas he was leaving a party in the Harbor Area of East Chicago. In this incident, Briseno and several associates laid in wait for Colon to leave the party, and then shot the unsuspecting Colon from a vehicle.
Finally, the evidence at trial demonstrated that, on June 19, 2010, Briseno murdered Latroy Howard because he was selling drugs in Imperial Gangster territory. A video introduced at trial showed Briseno’s vehicle circling the block several times prior to the murder, and then showed Briseno confronting Howard on foot and shooting him twice in the head at point-blank range.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives; the FBI; and the East Chicago Police Department. The Gary, Indiana, Police Department; the Hammond Police Department; and the Lake County High Intensity Drug Trafficking Area Program provided assistance. This case is being prosecuted by Assistant U.S. Attorney David J. Nozick of the Northern District of Indiana and Trial Attorney Bruce R. Hegyi of the Criminal Division’s Capital Case Section.
Leader of Imperial Gangsters Sentenced to Life in Prison for Five Murders, One Attempted Murder and Other Gang-Related CrimesRead the Press Release
WASHINGTON – A leader of the Imperial Gangsters street gang was sentenced today to life in prison for five counts of murder in aid of racketeering and other RICO-related charges, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney David A. Capp of the Northern District of Indiana.
Juan Briseno, aka Tito, 25, of Hammond, Indiana, was sentenced by Chief Judge Philip P. Simon of the Northern District of Indiana to a total of six life sentences plus 10 years in prison. The life sentences will run consecutively.
On March 6, 2015, a federal jury in the Northern District of Indiana convicted Briseno of engaging in a RICO conspiracy, engaging in a drug distribution conspiracy, five counts of murder in aid of racketeering, one count of attempted murder in aid of racketeering, and a firearms count related to the attempted murder.
According to the evidence presented at trial, Briseno was a leader of the 149th Street Imperial Gangsters, a violent clique of the Imperial Gangsters based in East Chicago, Indiana. In his leadership role, Briseno supervised prospective gang members known as “shorties.”
The evidence showed that the Imperial Gangsters had a long-standing rule that gang members were to shoot rival gang members on sight, and that they had a policy to shoot anyone selling drugs in their neighborhood when such persons had not either purchased the drugs from the Imperial Gangsters or paid “taxes” to the gang for the right to sell drugs in their territory. The five murders of which Briseno was convicted were committed consistent with these directives.
According to witness testimony, Briseno expressed no remorse for his participation in various murders. Indeed, he bragged about killings and encouraged others to do the same.
With regard to the specific murders, the evidence at trial demonstrated that, on Sept. 26, 2007, Briseno knocked on Luis Ortiz’s apartment door in Hammond, Indiana, and shot him dead in the doorway. According to the evidence presented at trial, Briseno targeted Ortiz because he was a member of the rival Latin King Street Gang.
Additionally, the evidence showed that, on June 3, 2008, Briseno killed both Miguel Mejias, a former member of the Latin Kings, and Michael Sessum, an associate of Mejias, while they were unarmed and bringing takeout food to their pregnant girlfriends. According to the evidence presented at trial, Briseno fired multiple shots into Mejias’ residence, striking a female victim in the arm while she was holding her infant child. Another pregnant female victim and multiple minor victims also were inside the apartment at the time. According to testimony presented at trial, in the weeks prior to the confrontation, Mejias implored a common friend to tell Briseno that Mejias was no longer “gangbanging” and did not want any trouble. In response to this message, Briseno said, “[expletive] him, he was going to bring [Latin] Kings into our neighborhood.”
The evidence at trial also demonstrated that, on Feb. 7, 2010, Briseno and his associates murdered rival Two-Six gang member Miguel Colonas he was leaving a party in the Harbor Area of East Chicago. In this incident, Briseno and several associates laid in wait for Colon to leave the party, and then shot the unsuspecting Colon from a vehicle.
Finally, the evidence at trial demonstrated that, on June 19, 2010, Briseno murdered Latroy Howard because he was selling drugs in Imperial Gangster territory. A video introduced at trial showed Briseno’s vehicle circling the block several times prior to the murder, and then showed Briseno confronting Howard on foot and shooting him twice in the head at point-blank range.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives; the FBI; and the East Chicago Police Department. The Gary, Indiana, Police Department; the Hammond Police Department; and the Lake County High Intensity Drug Trafficking Area Program provided assistance. This case is being prosecuted by Assistant U.S. Attorney David J. Nozick of the Northern District of Indiana and Trial Attorney Bruce R. Hegyi of the Criminal Division’s Capital Case Section.
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Leader of Drug Smuggling Operation Gets Long Prison TermRead the Press Release
PHILADELPHIA – Higinio Castillo, 25, residing in Philadelphia, was sentenced today to 20 years in prison for running a large-scale drug smuggling operation, known as the Castillo Drug Smuggling Organization (CDSO). Castillo and the members of the CDSO recruited couriers who secreted packets of heroin inside their bodies in order to smuggle the drugs into the United States from the Dominican Republic. Between November 2010 and March 2012, Castillo imported more than eight kilograms of heroin and more than one kilogram of cocaine. He pleaded guilty on April 29, 2014 to 13 counts including conspiracy, kidnapping, and numerous drug charges.
Castillo lured people into acting as mules with promises of money and free vacations. He personally participated in the kidnapping of one drug courier whom he accused of absconding with about a pound of heroin, and he unsuccessfully attempted to obtain the children of another courier who had not returned the heroin that she had imported. Castillo’s drug supplier was a relative in the Domincan Republic.
Castillo ran the CDSO with co-defendant Michael Nunez-Rodriguez. Rodriguez and the nine remaining defendants have pleaded guilty and are awaiting sentencing. After recruiting the couriers, members of the CDSO would drive them to airports and pick them up upon their return. After the couriers cleared U.S. Customs, they were taken to an apartment controlled by the CDSO where they would expel the drug pellets. The CDSO would then repackage the drugs for sale. When a courier was suspecting of stealing the smuggled drugs, the members would intimidate and threaten the courier.
In addition to the prison term, U.S. District Court Judge Legrome D. Davis ordered 10 years of supervised release, a $5,000 fine, and a $1,300 special assessment. The government is also seeking forfeiture of all assets derived from any criminal activity.
The case was investigated by Homeland Security Investigations (HSI) with assistance from U.S. Customs and Border Protection, Philadelphia Police, Pennsylvania State Police, and the Philadelphia District Attorney=s Office. It is being prosecuted by Assistant United States Attorney Nancy Rue.
Large Scale Los Angeles PCP “Cook” Sentenced to Life in PrisonRead the Press Release
Greenbelt, Maryland – U.S. District Judge Roger W. Titus sentenced Raymond Bullette III, age 34, of Los Angeles, California, today to life in prison followed by 10 years of supervised release for conspiring to distribute large quantities of phencyclidine (PCP). Bullette had previously been convicted of five felony drug offenses in California since 1999 and was on supervised probation at the time of the offense.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; and Chief Mark A. Magaw of the Prince George’s County Police Department.
According to evidence presented during his four day trial, in 2010, Maryland PCP distributors Ricky Holloway, Shawn Anthony and Don Campbell traveled to Los Angeles and bought two gallons of PCP from Bullette for $20,000. Bullette helped ship the PCP to Maryland. Thereafter and at least until August 2013, Bullette regularly made multiple-gallon shipments of PCP - typically packaged in paint cans - to Holloway in Maryland, who would then distribute the PCP to other coconspirators and his own customers in Prince George’s County, Maryland and surrounding areas.
Holloway paid Bullette for the PCP by depositing cash in bank accounts Bullette controlled or, later, by shipping cash in bulk to California. From September 2011 to September 2012, when their bank deposit method was compromised, Holloway arranged for $768,000 in cash deposits to be made in Maryland into Bullette’s accounts in payment for over 70 gallons of PCP.
On June 1, 2013, police in California came across a lab at which Bullette and two coconspirators were manufacturing PCP in the desert north of Los Angeles. Bullette fled into the desert that night as he saw police approach, but left behind his car, phone, documents and sufficient precursor chemicals to manufacture up to another 70 gallons of PCP.
Ricky Holloway, age 31, of Bowie, Maryland, Shawn Anthony, age 35, of Landover, Maryland and Don Juan Campbell, age 34 of Laurel, Maryland, previously pleaded guilty to their roles in the drug conspiracy. Holloway was sentenced to 14 years in prison. Anthony was sentenced to five years in prison. Campbell is scheduled to be sentenced on June 30, 2015 at 1:00 p.m.
In related cases, Richard Brown, age 29, and David Chittams, age 34, both of Lanham, Maryland, pleaded guilty to conspiracy to distribute and possess with intent to distribute phencyclidine (PCP), and were sentenced to 10 years and seven years in prison, respectively. Kyle Daniels, age 36, also of Landover, pleaded guilty to distribution of PCP and illegal possession of a firearm and was sentenced to 51 months in prison.
Ricky Lee Holloway’s younger brother, Richaco Fernandis Holloway, age 24, of Camp Springs, Maryland, was previously sentenced to 57 months in prison for being a felon in possession of a gun. According to testimony presented at Richaco Holloway’s two-day trial, on July 3, 2013, a music label belonging to Ricky Lee Holloway posted a video in which Richacho Holloway was filmed holding a .45 caliber handgun with an extended magazine. The video was shot at a building that had been converted into a music studio and doubled as a distribution hub for Ricky Lee Holloway’s PCP distribution operation. During a search conducted at the music studio during a takedown of Ricky Holloway’s PCP trafficking activity, agents recovered the firearm Richaco Holloway was filmed holding in the rap video. Richaco Holloway was prohibited from possessing a firearm or ammunition due to a 2008 conviction in Prince George’s County Circuit Court for robbery with a deadly weapon and for which he was on parole.
United States Attorney Rod J. Rosenstein commended the FBI, DEA, Prince George’s County Police Department and the Los Angeles County Sheriff’s Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Adam K. Ake and Leah Jo Bressack, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Lake Charles man, Texas man plead guilty to roles in methamphetamine distribution conspiracyRead the Press Release
LAKE CHARLES, La. – United States Attorney Stephanie A. Finley announced today that a Lake Charles man and a Texas man pleaded guilty to their roles in a methamphetamine distribution conspiracy that stretched from Lake Charles to Houston.
Chumphai Bob Mireles, 52, of Lake Charles, and Michael Wayne Giese, 37, of Pearland, Texas, entered conditional guilty pleas to one count of conspiracy to distribute or possess with intent to distribute controlled dangerous substances before U.S. Magistrate Judge Kathleen Kay. The plea will become final when accepted by U.S. District Judge Donald E. Walter. According to evidence presented at the guilty pleas, law enforcement agents identified Mireles and Sandra Smith, 48, of Lake Charles, as traffickers of methamphetamine. Smith told a cooperating witness that Mireles was going to make a purchase in July of 2014 from their supplier. Law enforcement agents followed Mireles to Houston on July 3, 2014, where he bought methamphetamine from Giese. Agents arrested Mireles as he traveled back to Louisiana and located 86.53 grams of methamphetamine inside his vehicle.
Mireles and Giese face up to 10 years to life in prison, at least five years supervised release, and a $10 million fine. Smith pleaded guilty to the conspiracy count June 3, 2015. All three defendants are scheduled to be sentenced October 19, 2015.
Homeland Security Investigations and the Calcasieu Parish Combined Anti-Drug Task Force conducted the investigation. Assistant U.S. Attorney Robert C. Abendroth is prosecuting the case.
Laguna Pueblo Woman Pleads Guilty to Federal Misdemeanor Assault ChargeRead the Press Release
ALBUQUERQUE – Allie P. Sarracino, 26, an enrolled member of the Laguna Pueblo who resides in Casa Blanca, N.M., pleaded guilty this morning in Albuquerque, N.M., to a misdemeanor information charging her with assaulting an Indian woman.
Sarracino was arrested on Dec. 8, 2014, on a criminal complaint charging her with assaulting an intimate partner by strangulation. According to the complaint, on Dec. 4, 2014, the Pueblo of Laguna Tribal Police Department responded to a report of assault on Laguna Pueblo in Cibola County, N.M. The complaint alleged that Sarracino assaulted the victim, a Laguna woman, by striking her in the face and strangling her. Sarracino was subsequently indicted on Jan. 8, 2015, and charged with assaulting an intimate partner by strangulation.
During today’s proceedings, Sarracino entered a guilty plea to a misdemeanor information and admitted assaulting the victim by striking her with her hands on the victims face. Sarracino also admitted holding the victim down by pressing on her shoulders and neck area. As a result of the assault, the victim suffered bruises, contusions and other wounds on her face and head.
At sentencing, Sarracino faces a statutory maximum penalty of 12 months in federal prison and up to one year of supervised release. A sentencing hearing has yet to be scheduled.
This case was investigated by the Laguna/Acoma Agency of the BIA’s Office of Justice Services and the Pueblo of Laguna Tribal Police Department. Assistant U.S. Attorney Linda Mott is prosecuting the case.
The case was brought pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Lafourche Parish Man Charged with Possession of Child PornographyRead the Press Release
Erin Pitre Bill of Information.pdf (610.15 KB)U.S. Attorney Kenneth A. Polite announced that ERIN PITRE, age 36, of Cut Off, Louisiana, was charged in a one-count Bill of Information with possession of images and videos depicting the sexual exploitation of children under the age of twelve years old.
If convicted, PITRE faces a maximum term of imprisonment of not more than twenty years, followed by up to a lifetime of supervised release, and a $250,000 fine per count. He can also be required to register as a sex offender.
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 Attorney’s 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.projectsafechildhood.gov.
United States Attorney Polite reiterated that the Bill of Information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation in investigating this matter. Assistant United States Attorney Jordan Ginsberg is in charge of the prosecution.
Erin Pitre Bill of Information.pdf (610.15 KB)
Kentucky Man Convicted of Evading Income Taxes and Providing False Document to Internal Revenue Service CollectionsRead the Press Release
A Russell Springs, Kentucky, man has been found guilty by a jury sitting in the U.S. District Court in Bowling Green, Kentucky, of multiple tax crimes, including failure to report hundreds of thousands of dollars on his income taxes, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney Kerry B. Harvey of the Eastern District of Kentucky.
On June 12, the jury found James S. Faller II, 54, guilty of one count of corruptly endeavoring to obstruct the Internal Revenue Code, four counts of evading federal individual income taxes, one count of falsifying a document submitted to the Internal Revenue Service (IRS) under the penalty of perjury and four counts of failing to file timely his 2006 through 2009 federal individual income tax returns. The jury returned the verdict after two hours of deliberation following a nine-day trial.
According to evidence introduced at trial, from at least April of 2006 through March of 2010, Faller provided consultation services involving criminal defense investigations and related services, for which he earned gross income of approximately $126,000 to $289,000 per year. During that time, Faller concealed his income from the federal government by arranging for his income to be made payable to another individual as a nominee and deposited the income into bank accounts that were not in his name. In March 2010, during an IRS civil collections action, Faller provided a false document to an IRS revenue officer wherein he lied about his true gross monthly income. Faller also did not file any individual federal income tax returns for those years on a timely basis. In March 2011, he filed false tax returns for 2006 and 2007.
Faller is scheduled to be sentenced on Sept. 17 in Bowling Green by Chief U.S. District Judge Joseph McKinley of the Western District of Kentucky. Faller faces a statutory maximum sentence of five years in prison and a $250,000 fine on the evasion charges, a statutory maximum sentence of three years in prison and a $250,000 fine on the corrupt endeavor to impede charge, a statutory maximum sentence of three years in prison and a $250,000 fine on the false document charge, and a statutory maximum sentence of one year in prison and a $100,000 fine for each count of failure to file income tax returns.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Harvey commended the special agents of the IRS-Criminal Investigation, who investigated the case, and Trial Attorney Thomas Voracek of the Tax Division and Assistant U.S. Attorney Lee Gentry of the Eastern District of Kentucky, who prosecuted the case.
John W. Huber Sworn in as United States AttorneyRead the Press Release
SALT LAKE CITY – In a short ceremony Monday morning, John W. Huber was sworn in as the United States Attorney for the District of Utah.
U.S. District Court Senior Judge Dee Benson administered the oath of office at a ceremony at the federal courthouse in Salt Lake City. A public investiture ceremony will be held later this summer.
Huber, age 47, has more than 10 years of experience in the U.S. Attorney’s Office where he has prosecuted cases ranging from violent gang and gun crime to domestic and international terrorism. He has served as a member of the office’s leadership team as the National Security Section chief, Executive Assistant U.S. Attorney, and most recently as Acting First Assistant U.S. Attorney.
The U.S. Attorney’s Office currently has about 85 employees located in Salt Lake City and a branch office in St. George. There are 94 U.S. Attorneys’ Offices in the country. The U.S. Attorney’s Office in Utah covers the entire state.
“I have committed my career to public service. I view the honor of serving as U.S. Attorney as my greatest opportunity thus far to help keep our communities safe. Building on Utah’s tradition for smart, cooperative law enforcement, I will work with law enforcement agencies, community leaders, and others to protect our national security interests, combat violent crime, expose financial fraud, and protect vulnerable victims,” Huber said today.
Huber was nominated by President Barack Obama to be the United States Attorney for Utah on Feb. 4, 2015, and confirmed by the United States Senate Wednesday. The appointment is for four years. Carlie Christensen has been the interim U.S. Attorney for Utah since David Barlow resigned in July 2014 to go into private practice.
A University of Utah graduate, Huber is a career prosecutor with broad experience in Utah’s state and federal trial courts. He was a Weber County deputy county attorney. He also worked for West Valley City for eight years, including a five-year term as Chief City Prosecutor.
Houston Couple Sentenced to Lengthy Prison Terms for Fraudulent SchemesRead the Press Release
HOUSTON – Gerard Montez-Easiley, 46, and Stacey Lair Lee-Easiley, 35, have been ordered to prison following their convictions in two corporate fraud schemes, announced U.S. Attorney Kenneth Magidson. The pleaded guilty to two separate fraud schemes which involved fraudulently obtaining credit in the names of various businesses, one of which was perpetrated while they were awaiting sentencing in the other.
U.S. District Judge Kenneth M. Hoyt sentenced Montez-Easiley and Montez-Easiley to respective terms of 188 and 135 months in federal prison.
In November 2012, the married couple was convicted of conspiring to commit mail and wire fraud. That scheme involved fraudulently obtaining credit on behalf of entities whose registration to conduct business in the State of Texas had been suspended or terminated (dormant entities). Although they had no legitimate relationship with the dormant entities, the defendants used fraudulent documents such as financial reports, among other means to falsely bolster the creditworthiness of the dormant entities. They also fraudulently obtained credit from banks, automobile dealerships and retailers in the dormant entities’ names. Using that fraudulently-obtained credit, the defendants obtained six luxury automobiles and more than $39,000 in computer equipment.
In June 2014, Montez-Easiley and Lee-Easiley also pleaded guilty to engaging in a separate fraud scheme while they were awaiting sentencing in the previous case. In that second scheme, the pair conspired with others to fraudulently obtain credit in the names of Black Pearl Media Group Inc. and Leeison Inc. In order to bolster the fraudulent credit applications of those entities, the defendants again used various fraudulent documents, including purported audited financial statements which had been plagiarized from the publicly-available financial statements of other companies. The defendants obtained four luxury cars and were responsible for more than $300,000 spent on credit cards that were fraudulently obtained in the name of Black Pearl Media Group.
In today’s consolidated sentencing, Judge Hoyt sentenced the defendants for their roles in both fraud schemes. Because they committed the second fraud scheme while released on bail in their initial case, they each faced additional prison time. Judge Hoyt further ordered Montez-Easiley and Lee-Easiley to pay restitution of $761,794.09 and $750,794.09, respectively.
The charges are the result of the investigative efforts of the U.S. Postal Inspection Service. Assistant U.S. Attorney Jason Smith is prosecuting the case.
Georgian Delegation Visits Eastern District of TennesseeRead the Press Release
CHATTANOOGA, Tenn. – During June 10-20, 2015, a group of official delegates from the Republic of Georgia will visit the United States to learn about the U.S. criminal justice system and enhance their efforts to modernize their justice sector/system. The visit will begin in Washington, DC, where the delegates will meet with various representatives from the State Department, Pretrial Services for the District of Columbia, Bureau of Prisons, and Department of Justice (DOJ). After their short stay in Washington, the group will travel to Chattanooga, Tenn., where they will be hosted by the U.S. Attorney’s Office for the Eastern District of Tennessee.
During their visit, the delegates will study how the probation/pretrial services system operates in federal court. The week will include meetings in both Chattanooga and Knoxville with the U.S. Attorney; Assistant U.S. Attorneys; U.S. Probation Officers; U.S. District and Magistrate Judges; local defense attorneys; and federal, state and local law enforcement representatives. They will also attend court hearings to observe typical proceedings in federal court. Additionally, to ensure they experience the local culture, several leisure activities are also planned throughout the week for the delegates including a baseball game, cookout, and concerts at the annual Chattanooga Riverbend Festival.
The Georgian delegates participating in this U.S. visit include: Tamar Alania, Judge, Tbilisi Court of Appeals; Shalva Tadumadze, Parliamentary Secretary, GoG Administration; Archil Talakvadze, Deputy Minister of Internal Affairs; Kakha Kakhishvili, Deputy Minister of Corrections and Legal Assistance; Giorgi Arsoshvili, Head of Probation Service, MCLA; Giorgi Gabitashvili, Deputy Chief Prosecutor; Misha Shakulashvili, Tbilisi Chief Prosecutor; Nino Aglemashvili, Prosecutor, PGO; Irina Tsakadze, Head of Legal Drafting Department, MOJ; Archil Kbilashvili, Chairman, NGO European Choice of Georgia; Kakha Tsereteli, Defense Attorney, BLC Law Office; and Natia Oniani, Translator. The delegation will be accompanied by Tracey Newell, the Director of the State Department’s Bureau of International Narcotics and Law Enforcement at the U.S. Embassy in Tbilisi, Georgia, and by Tatiana Pataraia and Nata Tsnoriashvili, Georgian Staff Attorneys at the U.S. Embassy who work with DOJ’s Office of Overseas Prosecutorial Development, Assistance and Training (OPDAT) Resident Legal Advisor (RLA) program in Georgia.
For the last two years, Assistant U.S. Attorney (AUSA) Steve Neff, a federal prosecutor with the Chattanooga office, was detailed as OPDAT’s RLA in Tbilisi, Georgia. While on detail in Tbilisi, AUSA Neff worked closely with Georgian government officials as well as the Georgian legal and law enforcement community, including Justice Ministry officials, prosecutors, judges, investigators, and members of parliament, to develop and implement justice sector assistance programming aimed at modernizing Georgia’s criminal justice system. The current visit of these delegates to the United States is a continuation of those efforts.
“We are pleased to host the Georgian delegation in their quest to enhance their justice system. We are honored that they would choose to visit our office and district to help them understand the American system in a way that could help them further strengthen the rule of law in Georgia and aid them in their goal of Euro-Atlantic integration, including accession into the European Union (EU) and NATO,” said U.S. Attorney Bill Killian. “Our partnership and friendship with Georgia is vital to the interests of both nations, and we welcome the opportunity to exchange ideas and knowledge with our friends from Georgia.”
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Georgia Man Indicted for Identity Theft, Wire FraudRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Georgia man has been indicted by a federal grand jury for using stolen identities to file fraudulent state and federal income tax returns.
Jalen Ortez Gude, 22, of Hillsboro, Ga., was charged in an 11-count indictment returned under seal by a federal grand jury in Jefferson City, Mo., on June 10, 2015. That indictment was unsealed and made public today following Gude’s initial court appearance.
The federal indictment alleges that, between January 2014 and March 13, 2015, Gude used the identity information of others (including their names, Social Security numbers, and dates of birth) to file fraudulent tax returns and receive tax refunds from both the federal government and the state of Missouri. Gude allegedly opened bank accounts in the names of his identity theft victims so that the IRS and the Missouri Department of Revenue would transfer the refunds to bank accounts he controlled. This process permitted Gude to remain anonymous, the indictment says, and to conduct his scheme, in part, from outside Missouri.
Gude also allegedly used the stolen identity information to submit fraudulent online credit applications at banks and credit card companies.
The federal indictment charges Gude with seven counts of wire fraud and four counts of aggravated identity theft.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Anthony P. Gonzalez. It was investigated by the FBI, IRS-Criminal Investigation, the Missouri Department of Revenue – Compliance and Investigation Bureau and the Missouri Department of Revenue – Criminal Investigation Bureau.
Gaston County Prosecutor to Make U Visa Certification Decisions in Accordance with Federal GuidanceRead the Press Release
CHARLOTTE, N.C. – In May 2015, federal officials from the United States Attorney’s Office for the Western District of North Carolina met with Gaston County District Attorney, Locke Bell regarding when to certify so-called “U visas,” announced Jill Westmoreland Rose, Acting U.S. Attorney Office for the Western District of North Carolina. The U visa allows a victim of certain qualifying crimes to temporarily remain in the United States to help law enforcement investigate or prosecute the perpetrator. However, a victim is not eligible for a U visa unless the prosecutor or head of the law enforcement agency certifies, among other things, that he or she has been a victim of a qualifying crime and has been, is being, or is likely to be helpful in the investigation or prosecution. Mr. Bell agreed to make U visa certifications without reference to nationality, as is consistent with applicable federal statutes. Mr. Bell authorized this release.
Former Employee Sent to Prison for Scheme to Defraud Garden RidgeRead the Press Release
HOUSTON – Sandra Johnson, 48, of Katy, has been ordered to federal prison after admitting to receiving kickbacks in a money laundering conspiracy that targeted home décor retailer Garden Ridge Pottery, now known as At Home, announced U.S. Attorney Kenneth Magidson. Johnson pleaded guilty Feb. 17, 2015.
Today, U.S. District Judge Kenneth Hoyt, who accepted the guilty plea, handed Johnson a 87-month sentence to be immediately followed by three years of supervised release. She was further ordered to pay $2 million in restitution. At the hearing, additional evidence/testimony was presented including information about another fraud scheme for which Johnson had been convicted and previously sent to federal prison.
Johnson was employed as a claims manager at Garden Ridge. In that role, she was responsible for reviewing and approving payment on injury claims filed against the store by its customers, commonly referred to as “slip and fall” claims. Johnson and others conspired to submit fraudulent claims against Garden Ridge for injuries which were either faked or never occurred. Johnson’s sister - Natalie Jeng, 42, also of Katy - was employed as a claims adjuster at a third-party administrator hired by Garden Ridge to administer and investigate claims. Thus, many of the fraudulent claims that were allegedly reviewed by Johnson at Garden Ridge were then reviewed and approved by her sister. Jeng will be sentenced June 22, 2015.
In all, 26 false claims were filed against Garden Ridge which resulted in the issuance of $2,063,436 in settlement proceeds. The fraudulent settlement proceeds were split amongst the alleged injury victims and other co-conspirators, with most of the funds kicked back to Johnson. She admitted to laundering the kickbacks she received by having her co-conspirators pay her either in cash or with cashier’s checks which had been purchased under nominee names. Jeng also received a portion of some settlements for her role in the scheme.
Darlene Drummer, 43, of Fresno, and Niesha Hall, 36, of Houston, have also pleaded guilty to their respective roles in the scheme. Drummer and Hall, in addition to filing false claims against Garden Ridge in their own names, recruited other complicit claimants into the scheme.
Johnson has previously pleaded guilty to mail fraud and money laundering charges stemming from a similar scheme when she was employed as a Claims Adjuster at The Hartford insurance company. In a 2007 plea agreement related to that scheme, Johnson admitted authorizing more than $1,700,000 in payments from The Hartford to various medical clinics in the Houston area for medical services that were never performed. The clinic owners then kicked back a portion of the payments to Johnson. She was sentenced in that case to serve 12 months and one day in prison.
Previously released on bond, Johnson was taken into custody following the sentencing today where she will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The investigation was conducted by Internal Revenue Service – Criminal Investigation and U.S. Postal Inspection Service. Assistant U.S. Attorney Jay Hileman is prosecuted the case.
Former Chief Executive Officer of Oil Services Company Pleads Guilty to Foreign Bribery ChargeRead the Press Release
The former co-chief executive officer (CEO) of PetroTiger Ltd. – a British Virgin Islands oil and gas company with operations in Colombia and formerly with an office in New Jersey – pleaded guilty today to conspiring to pay bribes to a foreign government official in violation of the Foreign Corrupt Practices Act (FCPA).
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Paul J. Fishman of the District of New Jersey, and Special Agent in Charge Richard M. Frankel of the FBI’s Newark Division made the announcement.
Joseph Sigelman, 44, of Miami and the Philippines, pleaded guilty today in the District of New Jersey to conspiracy to violate the FCPA. His trial had commenced on June 1, 2015. Sigelman will be sentenced June 16, 2015.
At his plea hearing, Sigelman admitted to conspiring with co-CEO Knut Hammarskjold, PetroTiger’s former general counsel Gregory Weisman, and others to make illegal payments of $333,500 to David Duran, an employee of the Colombian national oil company, Ecopetrol. Sigelman admitted to making the payments in exchange for Duran’s assistance in securing a $45 million oil services contract for PetroTiger.
Sigelman is the third former PetroTiger executive to plead guilty in the case. On Nov. 8, 2013, Weisman pleaded guilty to conspiracy to violate the FCPA and to commit wire fraud. On Feb. 18, 2014, Hammarskjold pleaded guilty to conspiracy to violate the FCPA and to commit wire fraud.
The case was brought to the attention of the department through a voluntary disclosure by PetroTiger, which fully cooperated with the department’s investigation. Based on PetroTiger’s voluntary disclosure, cooperation, and remediation, among other factors, the department declined to prosecute PetroTiger.
The department has worked closely with, and has received significant assistance from, its law enforcement counterparts in the Republic of Colombia, which announced in March of this year the arrests of Duran, his wife, a former employee of PetroTiger, and several other officials from Ecopetrol. Those charges are pending, and a defendant is presumed innocent unless and until proven guilty.
The department also received significant assistance from Ecopetrol, the National Hydrocarbons Agency, the Office of the Secretary of Transparency of the Republic of Colombia, the Office of the Attorney General of the Republic of Colombia and other agencies within the Colombian government. The department also appreciates the assistance of the Republic of the Philippines, including the Bureau of Immigration and the Republic of Panama. The department would also like to thank the United Kingdom’s Metropolitan Police International Assistance Unit for their assistance.
The case is being investigated by the FBI’s Newark Division. The case is being prosecuted by Deputy Chief Patrick Stokes and Assistant Chief Tarek Helou, with support from Assistant Chief Daniel Kahn, of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Zach Intrater and Glenn Moramarco of the District of New Jersey. The Criminal Division’s Office of International Affairs also provided significant assistance.
Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Sigelman Plea Agreement
Former Chief Executive Officer of Oil Services Company Pleads Guilty to Foreign Bribery ChargeRead the Press Release
WASHINGTON – The former co-chief executive officer (CEO) of PetroTiger Ltd. – a British Virgin Islands oil and gas company with operations in Colombia and formerly with an office in New Jersey – pleaded guilty today to conspiring to pay bribes to a foreign government official in violation of the Foreign Corrupt Practices Act (FCPA).
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Paul J. Fishman of the District of New Jersey, and Special Agent in Charge Richard M. Frankel of the FBI’s Newark Division made the announcement.
Joseph Sigelman, 43, of Miami and the Philippines, pleaded guilty today in the District of New Jersey to Count One of a superseding indictment charging him with conspiracy to violate the FCPA. His trial had commenced on June 1, 2015. Sigelman will be sentenced June 16, 2015.
At his plea hearing, Sigelman admitted to conspiring with co-CEO Knut Hammarskjold, PetroTiger’s former general counsel Gregory Weisman, and others to make illegal payments of $333,500 to David Duran, an employee of the Colombian national oil company, Ecopetrol. Sigelman admitted to making the payments in exchange for Duran’s assistance in securing a $45 million oil services contract for PetroTiger.
Sigelman is the third former PetroTiger executive to plead guilty in the case. On Nov. 8, 2013, Weisman pleaded guilty to conspiracy to violate the FCPA and to commit wire fraud. On Feb. 18, 2014, Hammarskjold pleaded guilty to conspiracy to violate the FCPA and to commit wire fraud.
The case was brought to the attention of the department through a voluntary disclosure by PetroTiger, which fully cooperated with the department’s investigation. Based on PetroTiger’s voluntary disclosure, cooperation, and remediation, among other factors, the department declined to prosecute PetroTiger.
The department has worked closely with, and has received significant assistance from, its law enforcement counterparts in the Republic of Colombia, which announced in March of this year the arrests of Duran, his wife, a former employee of PetroTiger, and several other officials from Ecopetrol. Those charges are pending, and a defendant is presumed innocent unless and until proven guilty.
The department also received significant assistance from Ecopetrol, the National Hydrocarbons Agency, the Office of the Secretary of Transparency of the Republic of Colombia, the Office of the Attorney General of the Republic of Colombia and other agencies within the Colombian government. The department also appreciates the assistance of the Republic of the Philippines, including the Bureau of Immigration and the Republic of Panama. The department would also like to thank the United Kingdom’s Metropolitan Police International Assistance Unit for their assistance.
The case is being investigated by the FBI’s Newark Division. The case is being prosecuted by Deputy Chief Patrick Stokes and Assistant Chief Tarek Helou, with support from Assistant Chief Daniel Kahn, of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Zach Intrater and Glenn Moramarco of the District of New Jersey. The Criminal Division’s Office of International Affairs also provided significant assistance.
Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Defense counsel: Matthew I. Menschel, William A. Burck, Juan Pablo Morillo Esqs., Washington; Patrick J. Egan Esq., Philadelphia
Downsville man sentenced to more than 28 years in prison for producing child pornographyRead the Press Release
MONROE, La. – United States Attorney Stephanie A. Finley announced today that a Downsville man was sentenced to 342 months in prison for producing child pornography.
Michael S. Golden, 53, of Downsville, La., was sentenced by U.S. District Judge Robert G. James on one count of production of child pornography. He was also sentenced a lifetime of supervised release and ordered to register as a sex offender upon his release from prison. At Golden’s September 4, 2014 guilty plea, law enforcement agents detected Golden transmitting child pornography online. Agents found that on April 29, 2014, Golden took sexually explicit photographs of a minor in order to create child pornography. He then used an email account to transmit the child pornography.
“The nearly 30-year sentence given to Michael Golden today should send a strong message to others who sexually abuse children that they will be prosecuted to the fullest extent of the law,” Finley stated. “Mr. Golden is a vile predator and the sentence imposed should protect others from his horrific conduct. The harm inflicted on minors through these acts cannot be measured. I want to thank the law enforcement agents and prosecutor for their work in brining Mr. Golden to justice.”
This case is part of Project Safe Childhood, a U.S. Department of Justice launched nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (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.projectsafechildhood.gov.
The U.S. Attorney’s Office and the U.S. Department of Homeland Security/Homeland Security Investigations/Immigration & Customs Enforcement (ICE) encourage the public to report suspected child predators and any suspicious activity through its toll-free hotline at (866) DHS-2ICE. Investigators are available at all hours to answer hotline calls. Tips or other information can also be submitted to ICE online at www.ice.gov/exec/forms/hsi-tips/tips.asp or through the Operation Predator smartphone app (http://www.ice.gov/predator/smartphone-app). Tips may be submitted anonymously.
This case was investigated by ICE Homeland Security Investigations and the Louisiana State Police. Assistant U.S. Attorney Robert W. Gillespie Jr. prosecuted the case.
Department of Defense Employee Admits to Fraudulently Obtaining over $750,000 from Contracts with Aberdeen Proving GroundRead the Press Release
Baltimore, Maryland – Mark Nixon, age 54, of Silver Spring, Maryland, pleaded guilty today to conspiring to defraud the United States and to acts affecting a personal financial interest.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Frank Robey, Director of the U.S. Army Criminal Investigation Command's Major Procurement Fraud Unit; Special Agent in Charge Robert Craig of the Defense Criminal Investigative Service - Mid-Atlantic Field Office; and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
"Today's guilty plea demonstrates our special agents' expertise and dedication to investigate and expose companies and government employees who engage in fraud," said Frank Robey, the director of the U.S. Army Criminal Investigation Command's Major Procurement Fraud Unit. "While the defendant may have thought he would get away with the criminal scheme, he was no match for the dogged determination and professionalism of our agents and their commitment to enforcing the law and rooting out those who attempt to steal from the U.S. Government."
"The guilty plea today by Mr. Nixon illustrates the lengths that some will go through to circumvent the government contracting process for personal gain," said Robert E. Craig, Jr., Special Agent in Charge for the Defense Criminal Investigative Service, Mid-Atlantic Field Office. "DCIS and its law enforcement partners, along with the U.S. Attorney's Office, are committed to rooting out this behavior in order to ensure acquisition integrity and safeguard Department of Defense funds."
Mark Nixon was a civilian employee of the Department of Defense, and worked at the U.S. Army Research Laboratories (ARL) in Hampden, Virginia, and Aberdeen, Maryland. From 2008 to December 2010, Nixon was the Director of Vehicle Technology Directorate with ARL at Aberdeen Proving Ground.
Nixon also had a financial interest and management role in the operation of the following companies: Motile Robotics, Inc. (MRI), located in Joppa, Maryland; Atlantic Capital Enterprises (ACE); and Arrow Technical Incorporated (ATI).
According to his plea agreement, in 2008, Nixon determined that microsystem controls research was needed, including the fabrication of a small open-jet wind tunnel. Nixon created and approved government documents that caused ARL to fund this research, and became the designated team leader for ARL on the research project.
In January 2009, the United States awarded a large defense contractor a task order to construct the open flow wind tunnel from February 2008 to 2011, worth approximately $3.6 million. Nixon persuaded the defense contractor to use MRI as a subcontractor. Nixon also played an important role in the government awarding the defense contractor another task order to construct a closed circuit wind tunnel from January 2009 to 2011, for approximately $3.5 million, under which MRI was a subcontractor. Nixon provided the contracting officer with a technical evaluation of the contract and its cost, and acted as the government official overseeing and managing this work on a routine basis.
Nixon and a coconspirator had caused MRI to be created and provided significant input regarding the operation of MRI. Nixon was in effect a silent and undisclosed partner, owner and co-president. Nixon also actively assisted with the operation of MRI using the alias "Paul Martin" on order to conceal their financial interest. Although Nixon knew that he had a prohibited financial interest in MRI, he conducted a technical evaluation of MRI’s capabilities as a subcontractor, and approved invoices listing false labor and materials charges.
MRI received more than $5 million in federal funds under these task orders. Nixon caused MRI to pay money to Arrow Technical, and Arrow Technical to pay Atlantic Capital. Nixon also had a financial interest in Arrow Technical and Atlantic Capital. Nixon and two co-conspirators personally benefited from over $750,000 sent to these companies.
Nixon and the government have agreed that if the Court accepts the plea agreement, Nixon will be sentenced to 42 months in prison followed by three years of supervised release. Nixon also agrees to forfeit and pay restitution of at least $750,000. U.S. District Judge Marvin J. Garbis has scheduled sentencing for September 18, 2015 at 9:30 a.m.
An information filed on May 8, 2015 also charges Mark Nixon’s wife Sandra Nixon, a/k/a “Lisa Hart,” age 52, of Silver Spring, and Kenneth Dawson, age 52, of Niceville, Florida, with the same offenses arising from the conspiracy. Both Sandra Nixon and Kenneth Dawson are scheduled to have their initial appearance and arraignment on June 30, 2015 at 2:00 p.m. and 11:00 a.m., respectively.
The National Procurement Fraud Task Force was formed in October 2006 to promote the early detection, identification, prevention and prosecution of procurement fraud associated with the increase in government contracting activity for national security and other government programs. The Procurement Fraud Task Force includes the United States Attorneys’ Offices, the FBI, the U.S. Inspectors General community and a number of other federal law enforcement agencies. This case, as well as other cases brought by members of the Task Force, demonstrate the Department of Justice’s commitment to helping ensure the integrity of the government procurement process.
United States Attorney Rod J. Rosenstein commended the U.S. Army Criminal Investigation Command's Major Procurement Fraud Unit, DCIS and FBI for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Harry M. Gruber and P. Michael Cunningham, who are prosecuting the case.
Clinton County, Kentucky, Man Guilty of Filing False Tax ReturnsRead the Press Release
Failed to report earnings and pay income taxes on $386,183.67 during a six year period and overstated business expenses of $581,519.91
BOWLING GREEN, Ky. – A Clinton County, Kentucky, man pleaded guilty today in United States District Court to six counts of failing to report approximately $386,183.67 in income and royalty income during a six year period and for overstating business expenses of $581,519.91 announced Acting United States Attorney John E. Kuhn, Jr.
Steven L. Burchett, age 50, admitted in court, before U.S. District Judge Greg N. Stivers, to willfully making and subscribing U.S. Individual Tax Returns, for the calendar years 2006 through 2011,which were written under the penalty of perjury and filed with the Internal Revenue Service, (IRS) and included information he did not believe to be true and correct.
Specifically, on October 11, 2008, Burchett filed a U.S. Individual Tax Return for calendar year 2006, with the IRS, in which he failed to report approximately $224,735.76 of additional income on Form 1040 line 22.
On October 8, 2008, Burchett filed a U.S. Individual Tax Return, for the calendar year 2007, with the IRS, in which he failed to report approximately $27,003.91 of additional income on Form 1040, Line 22.
On October 15, 2009, defendant Burchett filed a U.S. Individual Tax Return, for the calendar year 2008, with the IRS, and included information he did not believe to be true and correct. Specifically, the return overstated approximately $41,394 in business expenses on Schedule C, Line 28, and failed to report royalty income of approximately $18,236 and understated approximately $56,895 in additional income on Form 1040, Line 22.
On April 15, 2010, defendant Burchett filed a joint U.S. Individual Tax Return, for the calendar year 2009, which was made under the penalty of perjury and was filed with the IRS, and included information he did not believe to be true and correct. Specifically, the return overstated approximately $90,650 in business expenses on Schedule C, Line 28, and failed to report approximately $38,323 in royalty income and understated approximately $123,225 in additional income on Form 1040, Line 22.
On April 15, 2011, defendant Burchett filed a joint U.S. Individual Tax Return, for the calendar year 2010, which was made under the penalty of perjury and was filed with the IRS, and included information he did not believe to be true and correct. Specifically, the return overstated approximately $305,564 in business expenses on Schedule C, Line 28, and failed to report approximately $64,490 in royalty income and understated approximately $360,380 in additional income on Form 1040, Line 22.
On April 15, 2012, defendant Burchett filed a joint U.S. Individual Tax Return, for the calendar year 2011, which was made under the penalty of perjury and was filed with the IRS, and included information he did not believe to be true and correct. Specifically, the return overstated approximately $72,050 in business expenses on Schedule C, Line 28, and failed to report approximately$74,778 in royalty income and understated approximately $135,611 in additional income on Form 1040, Line 22.
If convicted at trial, Burchett could have been sentenced to three years in prison on each of the six charges for a total of eighteen years, a total fine of $1,500,000., and a period of up to one year of supervised release. Sentencing is scheduled in Bowling Green on September 14, 2015 at 10 a.m.
This case is being prosecuted by Assistant United States Attorney Joshua Judd and is being investigated by the Criminal Investigation Division of the Internal Revenue Service.
Children's Hospital to Pay $12.9 Million to Settle False Claims Act AllegationsRead the Press Release
Children’s Hospital, Children’s National Medical Center Inc. and its affiliated entities (collectively CNMC) have agreed to pay $12.9 million to resolve allegations that they violated the False Claims Act by submitting false cost reports and other applications to the components and contractors of the Department of Health and Human Services (HHS), as well as to Virginia and District of Columbia Medicaid programs, the Department of Justice announced today. CNMC is based in Washington, D.C., and provides pediatric care throughout the metropolitan region.
“The false reporting alleged in today’s settlement deprived the Medicare Trust Fund of millions of taxpayers’ dollars,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer of the Justice Department’s Civil Division. “Such conduct wastes critical federal health care program funds and drives up the costs of health care for all of us.”
“The integrity of federal health care programs depends on honest and accurate reporting from the hospitals and other health care providers that receive hundreds of billions of tax dollars every year,” said Acting U.S. Attorney Vincent H. Cohen Jr. of the District of Columbia. “This settlement demonstrates our commitment to defending the integrity of the system and ensuring that taxpayer money goes to meet the most critical health care needs. We will continue to work with whistleblowers like the former employee who came forward in this case to battle waste, fraud and abuse that fuel the skyrocketing cost of health care.”
According to the settlement agreement, CNMC misstated information on cost reports and applications in two distinct manners to HHS. This false information was used by HHS and Medicaid programs to calculate reimbursement rates to CNMC. The United States contended that CNMC misreported its available bed count on its application to HHS’ Health Resources and Services Administration under the Children’s Hospitals Graduate Medical Education (CHGME) Payment Program. The CHGME Payment Program provides federal funds to freestanding children’s hospitals to help them maintain their graduate medical education programs that train pediatric and other residents. The United States further contended that CNMC filed cost reports misstating their overhead costs, resulting in overpayment from Medicare and the Virginia and District of Columbia Medicaid programs.
The settlement resolves allegations brought in a lawsuit filed under the qui tam or whistleblower provisions of the False Claims Act by James A. Roark Sr., a former employee of CNMC. Under the act, a private citizen can sue on behalf of the United States and share in any recovery. The United States is entitled to intervene in the lawsuit, as it did here. As part of the resolution, Mr. Roark will receive $1,890,649.98.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $24.3 billion through False Claims Act cases, with more than $15.3 billion of that amount recovered in cases involving fraud against federal health care programs.
This matter was handled by the U.S. Attorney’s Office of the District of Columbia with assistance from the Civil Division’s Commercial Litigation Branch and the HHS’ Office of Inspector General.
The case is United States ex rel. Roark v. Children’s Hosp., et al., No. 1:14-cv-00616 (D.D.C.).
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Children's Hospital Agrees to Pay $12.9 Million to Settle False Claims Act AllegationsRead the Press Release
WASHINGTON – Children’s Hospital, Children’s National Medical Center Inc. and its affiliated entities (collectively CNMC) have agreed to pay $12.9 million to resolve allegations that they violated the False Claims Act by submitting false cost reports and other applications to the components and contractors of the Department of Health and Human Services (HHS), as well as to Virginia and District of Columbia Medicaid programs, the Department of Justice announced today. CNMC is based in Washington, D.C., and provides pediatric care throughout the metropolitan region.
“The integrity of federal health care programs depends on honest and accurate reporting from the hospitals and other health care providers that receive hundreds of billions of tax dollars every year,” said Acting U.S. Attorney Vincent H. Cohen, Jr. of the District of Columbia. “This settlement demonstrates our commitment to defending the integrity of the system and ensuring that taxpayer money goes to meet the most critical health care needs. We will continue to work with whistleblowers like the former employee who came forward in this case to battle waste, fraud and abuse that fuel the skyrocketing cost of health care.”
“The false reporting alleged in today’s settlement deprived the Medicare Trust Fund of millions of taxpayers’ dollars,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer of the Justice Department’s Civil Division. “Such conduct wastes critical federal health care program funds and drives up the costs of health care for all of us.”
According to the settlement agreement, CNMC misstated information on cost reports and applications in two distinct manners to HHS. This false information was used by HHS and Medicaid programs to calculate reimbursement rates to CNMC. The United States contended that CNMC misreported its available bed count on its application to HHS’ Health Resources and Services Administration under the Children’s Hospitals Graduate Medical Education (CHGME) Payment Program. The CHGME Payment Program provides federal funds to freestanding children’s hospitals to help them maintain their graduate medical education programs that train pediatric and other residents. The United States further contended that CNMC filed cost reports misstating their overhead costs, resulting in overpayment from Medicare and the Virginia and District of Columbia Medicaid programs.
The settlement resolves allegations brought in a lawsuit filed under the qui tam or whistleblower provisions of the False Claims Act by James A. Roark Sr., a former employee of CNMC. Under the act, a private citizen can sue on behalf of the United States and share in any recovery. The United States is entitled to intervene in the lawsuit, as it did here. As part of the resolution, Mr. Roark will receive $1,890,649.98.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $24.3 billion through False Claims Act cases, with more than $15.3 billion of that amount recovered in cases involving fraud against federal health care programs.
This matter was handled by the U.S. Attorney’s Office of the District of Columbia with assistance from the Civil Division’s Commercial Litigation Branch and the HHS’ Office of Inspector General.
The case is United States ex rel. Roark v. Children’s Hosp., et al., No. 1:14-cv-00616 (D.D.C.).
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Career Criminal Sentenced to 200 Months for Felony Possession of Five FirearmsRead the Press Release
Memphis, TN – A 46-year-old Millington man with multiple felony convictions has received 200 months imprisonment for threatening to kill a repossession agent with a firearm.
On December 27th, 2012, Kendall Joy placed a loaded Military-style .44 Magnum to the head of Derrick Jones as he attempted to repo Joy’s girlfriend’s vehicle. Jones, along with two colleagues, Kenneth Minor and Jerickan McCracklin, were at Millington Oaks Apartments to repossess a 2005 GMC Envoy from Jasmine Warren when the incident occurred.
According to trial testimony, Jones was in the process of loading the vehicle onto the bed of his wrecker when Joy exited his apartment with a woman, demanding Jones to release the vehicle. Joy told the accompanying woman to get his gun. When she returned with the firearm, Joy grabbed and cocked it, and pointed it at the victims. "Drop my vehicle or I’ll kill you," he reportedly stated. Concerned for their safety, Minor and McCracklin fled the area on foot, but Jones remained at the location with his wrecker. Joy pointed the firearm at Jones’ head and said, "I promise I will kill you right now, if you don’t let this truck go." Joy then ordered Jones not to move while he disconnected the vehicle himself. After the woman with Joy got inside of the vehicle and drove away, Joy retreated into his apartment and barricaded himself inside.
Officers were dispatched to Millington Oaks and, upon arrival, ordered Joy to either allow access into his home or exit the residence. Refusing to comply with their requests, officers forcefully entered Joy’s apartment and detained him at gunpoint.While inside, law enforcement discovered three small girls hiding in a bedroom. The little girls advised officers that multiple firearms were located throughout the residence. After obtaining a state search warrant, the officers were able to seize the firearm Joy used to threaten Jones, along with additional guns, including an AK-47-styled assault rifle, .25 caliber pistol, 12-gauge shotgun, as well as a stolen 9mm pistol. High-capacity magazines for the assault rifle and 9mm were also seized during the search, along with an assortment of ammunition for the 12-guage, .44 Magnum, and .25 caliber.
Joy has an extensive criminal history. Between 1987 and 2011, he was convicted of criminal offenses 34 times.
Charged with five counts of being a convicted felon in possession of a firearm, today Joy was sentenced to 200 months and five years of supervised release by Judge S. Thomas Anderson.
This case was investigated by Alcohol, Tobacco and Firearms (ATF) and the Millington Police Department. Assistant U.S. Attorneys David Biggers and Damon Griffin represented the government in this case.
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Canfield man charged with defrauding North Canton company out of nearly $2.5 millionRead the Press Release
A Canfield man was charged with mail fraud related to a scheme to defraud a North Canton company out of nearly $2.5 million, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio and Stephen D. Anthony, Special Agent in Charge of the FBI's Cleveland office.
Peter J. Luchansky, 60, was charged via criminal information with one count of mail fraud.
Luchansky was employed as an information technology manager with a large medical practice in North Canton. Beginning in 2005, he formed two Ohio companies with registered mailing addresses in Ohio. From 2005 until July 2014, Luchansky used these companies to bill the medical practice for computer equipment and services. In turn, the medical practice paid Luchansky’s companies for invoices submitted by Luchansky and his companies. The medical practice was the only customer of Luchansky’s companies, according to the information.
Luchansky fabricated the invoices and the amounts for payment for services and equipment that he did not provide in order to obtain monies from the medical practice. Through the submission of the false and fraudulent invoices of these companies, Luchansky defrauded the medical facility of at least $2,486,028, according to the information.
Luchansky has agreed to forfeit certain property obtained as a result of these false and fraudulent invoices including cash, jewelry appraised at $43,940, 2009 Corvette, 2007 Lexus, 2000 Harley Davidson motorcycle and 108 firearms. In addition, Luchansky previously submitted funds totaling over $2 million to be used as restitution to the victims in this case.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal records, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigation preceding the filing of the information was conducted by the Federal Bureau of Investigation’s Canton Office. The case is being prosecuted by Assistant United States Attorney Linda H. Barr.
An information is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Bridgeport Restaurant Owner Sentenced to Prison for Filing False Tax ReturnsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that MARIA PINHEIRO, 58, of Trumbull, was sentenced today by Chief U.S. District Judge Janet C. Hall in New Haven to two months of imprisonment, followed by one year of supervised release, for filing false tax returns. Chief Judge Hall also ordered PINHEIRO to perform 100 hours of community service.
According to court documents and statements made in court, PINHEIRO owns and operates the Dolphin’s Cove Marina (“DCM”), a seafood restaurant in Bridgeport. From 2007 through 2009, PINHEIRO was the sole shareholder and bookkeeper for DCM, and she handled all of the DCM finances. Instead of depositing all of the cash receipts from DCM into the DCM business checking account, PINHEIRO deposited substantial amounts of cash from the business into her personal checking account. She then failed to provide her personal bank records to the firms that prepared the federal income tax returns for her and DCM.
Between 2007 and 2009, PINHEIRO deposited $352,437 in cash that DCM received into her personal bank account. Some of deposits were structured in amounts of less than $10,001 in order to evade her bank’s currency transaction reporting requirements. PINHEIRO caused the filing of false personal and corporate tax returns, resulting in a tax loss of $92,251.
On March 25, 2015, PINHEIRO pleaded guilty to one count of filing a false tax return. As part of her plea agreement, PINHEIRO agreed to pay back taxes, interest and penalties in the total amount of $243,956.98, which she paid in full today.
This matter was investigated by the Internal Revenue Service – Criminal Investigation Division, and was prosecuted by Assistant U.S. Attorney Sarah P. Karwan.
Bastrop tax preparer sentenced to 21 months in prison for filing false returnsRead the Press Release
MONROE, La. – United States Attorney Stephanie A. Finley announced today that a Bastrop woman was sentenced to 21 months in prison for filing false tax returns.
Stella Marie Dunlap, 37, of Bastrop, La., was sentenced by U.S. District Judge Robert G. James on one count of aiding and assisting in making and subscribing a false tax return. She was also sentenced to one year of supervised release and ordered to pay $104,410 restitution. According to evidence presented at the March 3, 2015 guilty plea, Dunlap filed fraudulent Forms 1040 during the 2010 and 2011 tax filing seasons while employed as a tax preparer at Faster Tax Services in Bastrop. The returns contained fraudulent W-2 income information from fictitious companies, and the information was used to file Earned Income Tax Credit withholdings. As a result of the fraud, the IRS issued $104,410 in refunds to which taxpayers where not entitled. Dunlap received kickbacks from some of the customers as part of the scheme.
Internal Revenue Service - Criminal Investigations conducted the investigation. Assistant U.S. Attorney Seth D. Reeg prosecuted the case.
Assistant U.S. Attorney Receives Director AwardRead 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 Assistant U.S. Attorney Richard D. Kaufman was recognized by Attorney General Loretta Lynch at the 31st annual Director’s Awards Ceremony in Washington D.C. for his exemplary service to the country and United States Department of Justice. Kaufman, Chief of the Asset Forfeiture and Financial Litigation (AFFLU) Unit, received the John Marshall Award for Asset Forfeiture.
AUSA Kaufman joined the U.S. Attorney’s Office in 1989 and is responsible for the management and supervision of employees of the AFFLU unit which collects civil and criminal debts owed to the Federal Government. The unit also ensures that the proceeds of criminal activity are forfeited when possible restitution is paid to victims of crime.
Under AUSA Kaufman’s leadership, the United States Attorney’s Office recovered a record $94,000,000 in the 2013 fiscal year. These funds went to victims of crime, law enforcement, and taxpayers. His efforts have also led to the forfeiture of real property which formerly had been used for narcotics trafficking and other criminal activities. One such property, 900 Genesee St., was turned over to Hananiah Ministries and now serves as a place of worship, a food pantry and job bank. Kaufman has been successful in obtaining funding for the demolition of drug houses which rids the streets of drug activity and improves the quality of life for residents in the community.
“Thanks to thorough reporting by our local media, the public already knows much about the fine work being done day in and day out by the women and men of the United States Attorney’s Office,” said U.S. Attorney Hochul. “This exceptional work extends not only to the successful handling of hundreds of federal criminal and civil cases, but to extensive collection and forfeiture matters as well.”
U.S. Attorney Hochul further stated “By successfully using forfeiture tools, AUSA Kaufman and the AFFLU unit have literally taken the profit out of crime. I am thrilled that Mr. Kaufman is being honored for his hard work and dedication, and in making our community a better place to live.”
Altamont Man Sentenced in Methamphetamine ConspiracyRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that Travis Cole Maxfield, 28, of Altamont, Illinois, was sentenced today to 188 months in federal prison, to be followed by 4 years of supervised release, a $500 fine and a $500 special assessment. Sentencing followed a guilty plea in February 2014 to all charges against him in an indictment returned by a Federal Grand Jury in November 2014. All offenses relate to the production and distribution of methamphetamine.
Specifically, Maxfield was sentenced for Conspiracy to Manufacture and Distribute Methamphetamine from October 2013 through May 2014 in St. Clair, Clinton, and Marion Counties (Count 1); Manufacture of Methamphetamine on February 26, 2014, in St. Clair County (Count 2); Distribution of Methamphetamine on March 5, 2014, in Marion County (Count 3); Possession of a Listed Chemical (Pseudoephedrine) Knowing or Having Reason to Know that It Would Be Used to Manufacture Methamphetamine in St. Clair County (Counts 9 and 10).
Information leading to the charges against Maxfield was obtained in an investigation conducted by the FBI, the Marion County Sheriff’s Office, and the Clinton County Sheriff’s Department, assisted by the Illinois State Police Methamphetamine Response Team. The case is being handled by Assistant United States Attorney Kit Morrissey.
30 Alleged Gang Members & Associates Charged InRead the Press Release
Latest RI Urban Violent Crime Initiative Investigation
PROVIDENCE, R.I. –For the second time in four months, the collaborative efforts of the Rhode Island Urban Violent Crime Initiative, a wide-ranging collaboration of local, state and federal law enforcement and federal and state prosecutors who are targeting violent crime and violent criminals in urban neighborhoods of Rhode Island, has resulted in state and federal criminal charges being brought against numerous individuals.
In February, it was announced that a year-long series of undercover investigations initiated by the Providence Police Department and the DEA, with substantial assistance from local, state and federal law enforcement, and state and federal prosecutors, was targeting the distribution of heroin and crack cocaine and the importation of firearms onto the streets of Providence. At the time, the Rhode Island Urban Violent Crime Initiative resulted in the arrests of more than 35 individuals and the seizure of at least 15 firearms.
Building on a series of ongoing investigations which began in September 2013 and bolstered by law enforcement and prosecutors participating in the Violent Crime Initiative, an FBI Safe Streets Gang Task Force and Providence Police Department investigation, with substantial assistance of the Urban Violent Crime Initiative Task Force, more than two-dozen gang members and associates who are allegedly trafficking cocaine and heroin in Providence and surrounding communities have been charged in federal or state court.
Within the past five days, 14 individuals have been indicted by a Providence Country grand jury on state drug trafficking charges and 11 individuals have been charged by way of indictment of criminal complaint in federal court with trafficking heroin and cocaine. The federal indictments were for delivery of heroin in excess of 100 grams and conspiracy. The state indictments were for delivery of heroin, cocaine, and conspiracy. There are several remaining suspects that have warrants issued for their arrest. Five additional gang members were arrested on state firearm charges during this investigation. Two subjects were also additionally charged with armed robbery with a firearm. Most of the individuals charged have been identified as members or associates of gangs in and around the South Side of Providence.
"Today- once again- we are proving that when all levels of government and public safety join together to target violent offenders we see substantial results," said Mayor Jorge O. Elorza. "Addressing drug distribution and gang violence is a very high priority for me, and we will continue working with our partners to stop this kind of violent criminal behavior."
“This is another example of federal state and local law enforcement providing a direct focus on specific criminals who chose to cause violence, distribute drugs and create fear in the City of Providence. This also is a warning to those who wish to engage in drug dealing and violence, this team will be targeting you next,” said Commissioner Steven M. Paré
“This investigation initiated by the Providence Police Department, strikes at the very core of drug, gang, and gun violence in the City of Providence. It also signifies what can be accomplished by coordinated, interagency efforts to take down violent gang activity. This was another excellent investigation by all involved,” said Colonel Hugh T. Clements, Jr.“Gang members who try to fill the vacuum left by these arrests should know we will come after them too. Nobody should have to live in the midst of these drug dealing, violent criminals and the FBI hopes this well-coordinated effort will help bring peace to the streets of Providence and its surrounding communities,” said Vincent B. Lisi, Special Agent in Charge of the FBI’s Boston Division.
At a news conference announcing the latest round of arrests, United States Peter F. Neronha said, "The arrests we announce today, and those we announced last February, are tied together by one over-arching principle: that if we want to be smart about reducing crime, we have to shape our investigative and prosecutorial efforts in such a way as to have the most impact. We have to identify those who by their use of violence are keeping those who simply want to work and go to school effectively locked in their homes, and we have to build cases against them before they can do catastrophic harm. "
Mr. Neronha added, "Virtually every one of the charged individuals we are talking about today is a gang member or a gang associate. They are ready to use violence to achieve their aims, the aims, and however trivial. That is their creed."
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To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]
Friday 12 June 2015
Wingate, Texas, Man Sentenced to 20 Years in Federal Prison on Federal Child Pornography ConvictionRead the Press Release
LUBBOCK, Texas — Larry Richie Fields, 45, of Wingate, Texas, was sentenced today by U.S. District Judge Sam R. Cummings to 20 years in federal prison, following his guilty plea in February 2015 to one count of transportation of child pornography. Acting U.S. Attorney John Parker of the Northern District of Texas made the announcement today.
According to documents filed in the case, on October 25, 2014, Fields, who has been in federal custody since his arrest in January, used the Internet to transport two images of child pornography using an online social networking service. Over a period of years, beginning no later than 2012, Fields used various social networking services and online storage services to post and store images depicting minors engaging in sexually explicit conduct. Fields used multiple usernames to trade, collect, transport, and receive 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 case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); the Dallas Internet Crimes Against Children (ICAC) Task Force; the Texas Department of Public Safety, Criminal Investigations Division; the Taylor County Sheriff’s Office; and the San Angelo Police Department, Special Operations Division.
Assistant U.S. Attorney Steven M. Sucsy of the U.S. Attorney’s Office in Lubbock, Texas, prosecuted.
Virginia Man Sentenced to Seven-Year Prison Term and Fined $262,500 for Arranging for Sexual Contact with a Minor and Possession of Child PornographyRead the Press Release
WASHINGTON - Paul David Hite, 58, an anesthesiologist from Midlothian, Va., was sentenced today to seven years in prison and fined $262,500 for arranging for sexual contact with a minor and possession of child pornography.
The sentencing was announced by Acting U.S. Attorney Vincent H. Cohen, Jr.; Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division; Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Hite pled guilty on April 15, 2015 in the U.S. District Court for the District of Columbia. He was sentenced by the Honorable Colleen Kollar-Kotelly. The judge also ordered Hite to pay $16,750 in restitution to five victims of child pornography. Upon completion of his prison term, Hite will be placed on 10 years of supervised release.
According to a factual proffer of evidence presented during the court proceeding, from Feb. 1, 2012 through Feb. 17, 2012, Hite engaged in a series of Internet chats and telephone calls with an undercover police detective in Washington, D.C., who was posing as an adult who was sexually abusing a minor girl and a minor boy. During the course of the communications with the undercover detective, Hite described, in graphic detail, the sexual activity in which he wanted to engage with the purported minors. Hite also discussed plans to travel to Washington, D.C. for the purpose of sexually abusing the purported minors.
Hite was arrested near his residence on Feb. 17, 2012. Law enforcement recovered computer equipment from Hite’s home, which uncovered evidence of over 400 files of child pornography.
This case was brought as part of the Department of Justice's Project Safe Childhood initiative and investigated by the FBI's Child Exploitation Task Force, which includes members of the FBI's Washington Field Office and MPD. In February 2006, the Attorney General created Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney's Offices, 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 identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
In announcing the sentence, Acting U.S. Attorney Cohen, Assistant Attorney General Caldwell, Assistant Director in Charge McCabe and Chief Lanier commended the work of all who participated in the investigation. They especially acknowledged the efforts of the MPD Detectives and Special Agents of the FBI Child Exploitation Task Force. They expressed appreciation for the assistance provided by the U.S. Attorney’s Office for the Eastern District of Virginia, as well as the FBI’s Richmond Field Division.
They also acknowledged the efforts of Digital Investigative Analyst Christie Gardner of the Criminal Division’s Child Exploitation and Obscenity Section, and Criminal Investigator John Marsh of the U.S. Attorney’s Office for the District of Columbia. They additionally commended the efforts of those who assisted with the case at the U.S. Attorney’s Office, including former Paralegal Specialist Starla Stolk; Legal Assistants Jessica Moffatt and Charmonique Price; Yvonne Bryant, Dawn Tolson-Hightower and David Foster of the Victim Witness Assistant Unit; and Joshua Ellen, Kimberly Smith, and Leif Hickling of the Litigation Services Unit. Finally, they commended the work of Assistant U.S. Attorneys Elizabeth Wu and Brian Hood from the Eastern District of Virginia, Diane Lucas of the Asset Forfeiture and Money Laundering Section of the U.S. Attorney’s Office for the District of Columbia, Chief Elizabeth Trosman, Elizabeth Danello, and Patricia Heffernan of the Appellate Division of the U.S. Attorney’s Office for the District of Columbia, David B. Kent, Julieanne Himelstein, and Andrea L. Hertzfeld of the U.S. Attorney’s Office for the District of Columbia, and Deputy Chief Alexandra R. Gelber and former Trial Attorney Darcy Katzin of the Criminal Division’s Child Exploitation and Obscenity Section.
Upton Woman Pleads Guilty to Defrauding Federal Benefits ProgramsRead the Press Release
BOSTON – An Upton, Mass. woman pleaded guilty today in U.S. District Court in Worcester to stealing more than $128,000 in Social Security benefits and providing false information in applications for subsidized housing.
Patricia Kwiatkowski, 64, pleaded guilty to stealing public money and making false statements. U.S. District Court Judge Timothy S. Hillman schedule sentencing for Sept. 8, 2015. In May 2015, Kwiatkowski was charged in a felony Information.
Kwiatkowski’s father died in 2006, but his monthly Social Security benefits continued to be directly deposited into his bank account. Although she was not entitled to this money, Kwiatkowski signed her late father’s name on more than 100 checks written from his account to pay her own bills and also made ATM withdrawals from the account. In total, from 2006 to 2014, Kwiatkowski received and spent $128,101 in Social Security funds to which she was not entitled.
In addition, in 2013, Kwiatkowski applied to live at Upsala Elder Apartments in Worcester in a unit subsidized by the U.S. Department of Housing and Urban Development (HUD). On the application, she falsified her prior year’s income by failing to list the Social Security money that she was illegally receiving from her late father’s bank account. In 2014, Kwiatkowski made other false statements on her application to live in a HUD-subsidized unit in the Milhaus Apartments in Upton.
This case was brought as part of an ongoing effort by the U.S. Attorney’s Office in partnership with the Social Security Administration to investigate and prosecute the posthumous fraud of Social Security benefits. In many of these cases, family members, knowing they are not entitled to government benefits, continue to withdraw and spend the funds after a relative has died.
One of the ways the Social Security Administration detects this kind of fraud is through the Medicare Non-Utilization Project, in which the agency investigates people receiving benefits who are at least 90 years old and who have not used their Medicare Part B benefits for three or more years. In some instances, the agency learns that such a person is actually deceased, but a surviving child has continued to take the deceased person’s benefits.
In the past year, the U.S. Attorney’s Office has prosecuted several similar cases involving a total of more than $1 million in stolen government money.
United States Attorney Carmen M. Ortiz; Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division; and Christina Scaringi, Special Agent in Charge of the U.S. Department of Housing and Urban Development, Office of the Inspector General, Northeast Regional Office, made the announcement today. The Kwiatkowski case is being prosecuted by Special Assistant U.S. Attorney Timothy Landry of Ortiz’s Major Crimes Unit.
United States Files Lawsuit Against Jacksonville-Based Ambulance CompanyRead the Press Release
Jacksonville, Florida B United States Attorney A. Lee Bentley, III announces today that the United States has formally filed a lawsuit against Liberty Ambulance Services, Inc., a Jacksonville-based ambulance company. This lawsuit is brought pursuant to the False Claims Act and the Anti-Kickback Statute.
In its complaint, the government describes a 10-year scheme in which Liberty Ambulance deliberately and knowingly submitted false claims to federally subsidized healthcare programs. The complaint alleges that Liberty was not only acutely aware that false claims were being submitted, but also directed that these false claims be submitted so as to maximize reimbursement. Specific training documents and manuals that Liberty Ambulance used to train its employees to falsify records are attached to the complaint. The government alleges that directives from management resulted in a culture of Liberty knowingly submitting false statements to justify medically unnecessary ambulance transports.
In addition to contending that Liberty Ambulance submitted false claims to the government, the complaint also alleges that Liberty Ambulance engaged in a systematic kickback scheme to further maximize its reimbursement from the federal government. Liberty Ambulance, the complaint alleges, has a policy and practice of offering commercially unreasonable rates to private payors – such as hospitals, nursing homes, and the like – but not offering these same discounts and rates to the government. Liberty Ambulance offers these discounts to the private payors so that they will then provide Liberty Ambulance with exclusive access to their federal government subsidized patient population. In all, through the efforts of Liberty Ambulance, the government alleges that more than $28 million in claims were submitted to the federal healthcare programs. The vast majority of these claims were medically unnecessary, predicated on false statements, and should not have been reimbursable.
This lawsuit was originally filed under the qui tam or whistleblower provisions of the False Claims Act by Shawn Pelletier, a former employee at Liberty Ambulance. He, too, is a party to the lawsuit filed today.
This case was investigated by the U.S. Department of Health and Human Services, Office of Inspector General, the Federal Bureau of Investigation, and the Office of Personnel Management. It is being handled by Assistant United States Attorney Jason Mehta.
The lawsuit contains allegations only, and there has been no determination of liability.
Two Plead Guilty to Healthcare FraudRead the Press Release
ABINGDON, VIRGINIA – A mother and daughter who operated a business that provided oversight to personal care aides caring for elderly and disabled individuals, pled guilty today in the United States District Court for the Western District of Virginia in Abingdon to healthcare fraud.
Connie Robbins, 59, of Sugar Grove, Virginia and Stephanie Dawn Robbins, 37, of Marion, Virginia, both waived their rights to be indicted this morning and pled guilty to a one-count Information charging them with conspiracy to commit healthcare fraud.
“The Virginia Department of Medical Assistance Services offers services to Medicaid recipients to allow those with serious health issues to avoid entering a nursing home and to receive critical medical care in the comfort of their homes. These defendants succumbed to greed and took advantage of the elderly and the disabled for their own financial benefit,” Acting United States Attorney Anthony P. Giorno said today. “Protecting important social programs like Medicaid is a paramount concern to law enforcement and my office will continue to work with the state Attorney General and our federal and state law enforcement partners to investigate and prosecute individuals who defraud the system for their own selfish purposes.”
“Healthcare fraud of this kind wastes taxpayer money and weakens the safety net for our fellow Virginians who truly need assistance,” said Attorney General Mark R. Herring. “My nationally-renowned Medicaid Fraud Control Unit and our federal partners will continue to pursue these cases of fraud and abuse wherever we find them.”
“Having structured programs in place providing the elderly and sick options about their care is critical to effective healthcare in this country. The defendants falsified documents and neglected the needs of their patients. The FBI will continue to investigate allegations of healthcare fraud, to ensure patients who rely on Medicaid and other programs have confidence they will be taken care of and they will not incur additional expenses as a result of criminals defrauding the system,” said Adam S. Lee, Special Agent in Charge, FBI Richmond Division.
According to evidence presented at today’s guilty plea hearing by Virginia Assistant Attorney General and Special Assistant United States Attorney Janine Myatt, Stephanie and Connie Robbins operated Robbins CD Services, a Consumer Directed Service Facilitator (CDSF) service provider. CDSF service providers are hired by Medicaid recipients who are eligible for a waiver that allows them to avoid moving into a nursing home and instead receive critical care in their homes.
The only two employees at CD Robbins Services were Connie Robbins, a registered nurse, and her daughter, Stephanie Robbins, who served as the office manager. Between October 2008 and August 2013, Connie Robbins created false supporting paperwork that documented home face-to-face visits with patients that never occurred. In her role as office manager, Stephanie Robbins billed Virginia Medicaid for the face-to-face home assessments that she knew never occurred. Approximately 35 percent of the home assessments billed by Robbins CD Services and paid by Medicaid never occurred.
At sentencing, each defendant faces a maximum possible penalty of up to 20 years in prison and/or a fine of up to $250,000. The defendants have also agreed to pay $137,106 in restitution.
The investigation of the case was conducted by the Federal Bureau of Investigation and the Medicaid Fraud Control Unit for the Virginia Office of the Attorney General with the assistance of the Department of Medical Assistance Services. Virginia Assistant Attorney General and Special Assistant United States Attorney Janine Myatt is prosecuting the case for the United States.
Two Men Plead Guilty in U.S. Department of State Contracting Fraud Scheme and Contractor Cover-UpRead the Press Release
ALEXANDRIA, Va. – Tony Chandler, 68, of Severn, Maryland, pleaded guilty today to charges of conspiracy to commit wire fraud and a conflict of interest related to his conduct as a U.S. Department of State contracting officer’s representative. In a related case, Curtis L. Wrenn, Jr., 60, of Triangle, Virginia, formerly the president of a contractor performing under Chandler’s supervision, pleaded guilty today to making a false statement to the State Department by concealing that an internal investigation conducted by the contractor discovered credible information of fraud involving Chandler and Marvin Hulsey, 52, of Stafford, Virginia, one of Wrenn’s employees.
In statements of facts filed with the plea agreements, Chandler admitted to conspiring with Hulsey to submit false invoices to the State Department in order to conceal unallowable costs for nutritional supplements purchased by employees under Hulsey’s supervision. As part of the scheme, Hulsey caused the employees to be reimbursed by his employer for the nutritional supplement purchases, and then caused false invoices to be made and submitted to the State Department for the cost of the nutritional supplements. Chandler, as an authorized distributor of the nutritional supplements for a multi-level marketing company, earned commissions in excess of $25,000 from the purchases made by Hulsey’s employees. Despite knowing that he was personally profiting from the sales of the nutritional supplements, Chandler, in his official capacity, approved the majority of the false invoices. The false invoices submitted to the State Department as part of the scheme totaled more than $170,000.
Wrenn, as the president of the State Department contractor employing Hulsey, later learned of Hulsey’s submission of false invoices to the State Department and of Chandler’s role in the scheme. Wrenn knew that he had a responsibility under the Federal Acquisition Regulation to timely disclose to the government credible evidence of fraud, but instead omitted facts related to the fraud from the final letter delivered to the State Department. After submitting the altered letter, Wrenn met with Chandler and told him he had “saved his bacon.” Wrenn later wrote in an email that he told Chandler “to get this resolved with minimal questions or we (sic) throw him under the bus.”
Chandler was previously indicted by a federal grand jury on May 14, 2015. Chandler faces a maximum penalty of 25 years in prison if convicted, while Wrenn faces a maximum penalty of five years in prison if convicted. Both defendants will be sentenced on Sept. 18, 2015. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Hulsey was indicted with Chandler on May 14, 2015 for wire fraud and conspiracy to commit wire fraud. Hulsey pleaded not guilty to all charges before U.S. District Judge Claude M. Hilton on May 29, 2015 and is scheduled for trial on Aug. 17, 2015.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Steve A. Linick, Inspector General for the U.S. Department of State and Broadcasting Board of Governors; and Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after the plea was accepted by U.S. District Judge Claud M. Hilton.
This case was investigated by the U.S. Department of State, Office of Inspector General (DOS-OIG) and the FBI’s Washington Field Office. Substantial assistance was provided by the Criminal Analysis Branch of the DOS-OIG. Special Assistant U.S. Attorney Brian D. Harrison and Assistant U.S. Attorney Grace L. Hill are prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information for Chandler and Hulsey may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:15-cr-137. Related court documents and information concerning Wrenn may be found on PACER by searching for Case No. 1:15-cr-150.
Two Men Charged with Conspiracy to Provide Material Support to Islamic StateRead the Press Release
WASHINGTON – Today, David Wright aka Dawud Sharif Abdul Khaliq, 25, of Everett, Mass., and Nicholas Rovinski aka Nuh Amriki aka Nuh al Andalusi, 24, of Warwick, Rhode Island, were charged with conspiracy to provide material support to the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization. On June 3, 2015, Wright was charged with conspiracy to obstruct justice, and he was taken into custody. Rovinski was arrested yesterday evening at his home in Rhode Island, and will make an appearance in federal court in Boston today.
Wright and Rovinski are charged with conspiring with each other, unknown conspirators and Usaamah Abdullah Rahim, 26, Wright’s uncle, who lived in Roslindale, Mass., until his death on June 2, 2015. Rahim was shot and killed after he attacked law enforcement officers in a Roslindale parking lot.
The complaint affidavit alleges that, beginning at a date unknown but no later than May 2015, Wright, Rovinski and Rahim conspired to commit attacks and kill persons inside the United States, which they believed would support ISIL’s objectives.
The affidavit further alleges that, in furtherance of that plan, Wright, Rovinski and Rahim conspired to attack and behead a person referred to in the affidavit as “Intended Victim-1,” a resident of New York, who had organized a conference in Garland, Texas, on May 3, 2015, featuring cartoons depicting the Islamic Prophet Muhammad. Early on May 31, 2015, Wright and Rahim drove to Rhode Island, picking up Rovinski at his residence in Warwick, Rhode Island, and driving to a Warwick beach to discuss their plot in secrecy.
At approximately 5:00 a.m. on Tuesday, June 2, 2015, it is alleged that Rahim called Wright and advised him, in another guarded conversation, that he had changed plans and that he no longer planned to conduct the attack in New York. Rahim advised Wright that, instead, he intended to attack “those boys in blue” (meaning police officers) locally in Massachusetts either that day or the next day. Wright urged him to first wipe his laptop computer and to destroy his phone so that they could not be searched by law enforcement and urged him to make a will.
The charging statute provides a sentence of no greater than 15 years in prison, up to life of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
The initial charge against Wright for obstruction of justice remains pending. A detention hearing has been set for Wright on Friday, June 19, 2015 at 2:00 p.m.
U.S. Attorney Carmen M. Ortiz for the District of Massachusetts, Vincent Lisi, Special Agent in Charge of the FBI’s Boston Field Division and Assistant Attorney General for National Security John P. Carlin and made the announcement.
This investigation is being conducted by the Boston Joint Terrorism Task Force and the Rhode Island Joint Terrorism Task Force with critical assistance from the Rhode Island State Police, the Warwick, RI Police Department, the Rhode Island Fusion Center, the Boston Police Department, the Boston Regional Intelligence Center, the Massachusetts State Police, the Commonwealth Fusion Center, the Everett Police Department, Homeland Security Investigations, the Naval Criminal Investigative Service, and member agencies of the JTTF including the U.S. Customs and Border Protection, Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Marshals Service and others. This case is being prosecuted by Assistant U.S. Attorneys B. Stephanie Siegmann and Nadine Pellegrini of the District of Massachusetts’s Anti-Terrorism and National Security Unit, with the assistance of Trial Attorney Greg R. Gonzalez of the National Security Division’s Counterterrorism Section.
The details contained in the charging documents are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in the court of law.
Two Men Charged with Conspiracy to Provide Material Support to Islamic StateRead the Press Release
Today, David Wright aka Dawud Sharif Abdul Khaliq, 25, of Everett, Massachusetts, and Nicholas Rovinski aka Nuh Amriki aka Nuh al Andalusi, 24, of Warwick, Rhode Island, were charged with conspiracy to provide material support to the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization. On June 3, 2015, Wright was charged with conspiracy to obstruct justice, and he was taken into custody. Rovinski was arrested yesterday evening at his home in Rhode Island, and will make an appearance in federal court in Boston today.
Assistant Attorney General for National Security John P. Carlin and U.S. Attorney Carmen M. Ortiz for the District of Massachusetts and Special Agent in Charge Vincent Lisi for the FBI’s Boston Field Division made the announcement.
Wright and Rovinski are charged with conspiring with each other, unknown conspirators and Usaamah Abdullah Rahim, 26, Wright’s uncle, who lived in Roslindale, Massachusetts, until his death on June 2, 2015. Rahim was shot and killed after he attacked law enforcement officers in a Roslindale parking lot.
The complaint affidavit alleges that, beginning at a date unknown but no later than May 2015, Wright, Rovinski and Rahim conspired to commit attacks and kill persons inside the United States, which they believed would support ISIL’s objectives.
The affidavit alleges that, in furtherance of that plan, Wright, Rovinski and Rahim conspired to attack and behead a person referred to in the affidavit as “Intended Victim-1,” a resident of New York, who had organized a conference in Garland, Texas, on May 3, 2015, featuring cartoons depicting the Islamic Prophet Muhammad. Early on May 31, 2015, Wright and Rahim drove to Rhode Island, picking up Rovinski at his residence in Warwick, Rhode Island, and driving to a Warwick beach to discuss their plot in secrecy.
The affidavit further alleges that, at approximately 5:00 a.m. on Tuesday, June 2, 2015, Rahim called Wright and advised him, in another guarded conversation, that he had changed plans and that he no longer planned to conduct the attack in New York. Rahim advised Wright that, instead, he intended to attack “those boys in blue” (meaning police officers) locally in Massachusetts either that day or the next day. Wright urged him to first wipe his laptop computer and to destroy his phone so that they could not be searched by law enforcement and urged him to make a will.
The charging statute provides a sentence of no greater than 15 years in prison, up to life of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
The initial charge against Wright for obstruction of justice remains pending. A detention hearing has been set for Wright on Friday, June 19, 2015 at 2:00 p.m. Rovinski’s initial appearance is set today at 2:00 p.m. in Courtroom two before Magistrate Judge Donald L. Cabell.
This investigation is being conducted by the FBI’s Boston Field Division, Boston Police Department, Massachusetts State Police and member agencies of the Boston and Rhode Island Joint Terrorism Task Force, including the U.S. Customs and Border Protection, Bureau of Alcohol, Tobacco, Firearms and Explosives, Homeland Security Investigations, U.S. Marshals Service and others.
This case is being prosecuted by Assistant U.S. Attorneys B. Stephanie Siegmann and Nadine Pellegrini of the District of Massachusetts’s Anti-Terrorism and National Security Unit and Trial Attorney Gregory R. Gonzalez of the Department of Justice’s National Security Division Counterterrorism Section.
Two Ashland Men Sentenced in Money Laundering Conspiracy Involving Stolen MotorcyclesRead the Press Release
LONDON — A federal judge sentenced two men from Ashland, Ky., today for conspiring to commit money laundering, by stripping stolen motorcycles of their original identifying marks, rebuilding and retitling them for innocent buyers.
U.S. District Judge Gregory Van Tatenhove sentenced Richard Meade, 67, to 2 years in prison and Mark Justice, 55, to 18 months in prison, for conspiracy to commit money laundering by illegally transferring the ownership of motorcycles, aiding and abetting money laundering, and aiding and abetting possession of a vehicle and vehicle parts with altered vehicle identification numbers (VIN). At a later date, the Court will determine a restitution amount to compensate the original owners and insurance companies.
Both defendants were convicted in 2013. Evidence established that motorcycles had been stolen at motorcycle rallies in South Carolina, South Dakota and Florida, by a group of thieves who brought them back to Kentucky to strip them and rebuild them. They removed parts of the stolen motorcycles and replaced them with aftermarket parts bearing different VIN numbers, to conceal that they had been stolen. The stolen motorcycles were registered in Kentucky, with new VIN numbers. In 2006 and 2007, Meade and Justice took some of the newly registered motorcycles, sold them and helped provide fraudulent documents for the retitling process.
Six other defendants previously pleaded guilty and have been sentenced for their roles in the case.
The FBI and Kentucky State Police identified nearly 200 victims in this case, which include the original motorcycle owners and insurance companies.
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky, Howard S. Marshall, Special Agent in Charge, FBI, and Rodney Brewer, Kentucky State Police Commissioner jointly announced the sentence.
The investigation was conducted by the FBI, Kentucky State Police, the Boyd County Sheriff’s Office, Ohio Bureau of Investigations, Ohio Attorney General’s Office, and Ohio State Patrol. Assistant United States Attorneys Kenneth R. Taylor and Erin Roth prosecuted this case on behalf of the federal government.
Two Additional Defendants Pled Guilty in Stolen Identity Tax Refund Fraud SchemeRead the Press Release
Two additional defendants pled guilty in a stolen identity tax refund fraud scheme.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, FBI, Miami Field Office, and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.
Zenova Abrahams, 44 of Naples, and Ronald Reed, 59 of Bartow, each pled guilty to one count of conspiracy to traffic in unauthorized access devices, in violation of Title 18, United States Code, Section 1029(b)(2), and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A . On May 14, 2015, co-defendant Joseph Houston, 43 of Naples, pled guilty to the same two charges.
According to court documents, defendants Houston and Abrahams met with a Confidential Informant (CI) in the Southern District of Florida, and described a business arrangement where they would obtain Personally Identifiable Information (PII) from their sources (later identified as co-defendant Reed and another individual), and provide that PII to the CI. The CI purportedly would file federal income tax returns using the PII, and receive refunds in the form of Refund Anticipation Loan checks or Treasury checks. Houston and Abrahams would then take and cash those checks. The Cl was to earn 30% of the profits. Houston and Abrahams would receive the remaining 70%, and pay a percentage of that to their sources for providing the PII.
After the CI provided a total of $5,000 in up-front payments to obtain the PII, Houston and Abrahams provided the CI with lists with 500+ identities containing PII that were to be used in the tax fraud scheme. When Reed met with Houston and attempted to pick up proceeds from the allegedly filed fraudulent tax returns, law enforcement approached Reed. Reed provided information regarding the source of the PII. Through the source’s employment, he/she had access to client files containing PII. Reed explained that many of the 500+ names, dates of birth, and social security numbers were documented in the source’s handwriting. Reed also indicated that the source gave him access to the employer’s files, which he used to prepare a portion of the lists provide to the CI.
Sentencing for defendant Houston is scheduled for July 24, 2015, and sentencing for defendants Abrahams and Reed are scheduled for August 20, 2015, all before U.S. District Court Judge William J. Zloch. At sentencing, the defendants each face a maximum of five years in prison for the conspiracy charge, and a mandatory term of two years in prison, consecutive to any other term in prison, for the aggravated identity theft charge.
Mr. Ferrer commended the investigative efforts of the FBI and IRS-CI. This case is being prosecuted by Assistant U.S. Attorney Laurence M. Bardfeld.
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.
St. Croix Woman Pleads Guilty to Manufacturing MarijuanaRead the Press Release
St. Croix, USVI – On Thursday, June 11, 2015, Gail Leung, 57, pleaded guilty in federal court on St. Croix to one count of manufacturing marijuana, United States Attorney Ronald W. Sharpe announced.
According to the plea agreement filed with the court, on May 28, 2014, Leung knowingly and intentionally grew marijuana on her property in Frederiksted, St. Croix. Law enforcement agents discovered a total of 200 marijuana plants growing on Leung’s property.
As part of her plea agreement, Leung also agreed to forfeit $3,000 to the United States. Leung faces a maximum sentence of five years in prison and a $250,000 fine. A sentencing date has been set for October 14, 2015.
This case was investigated by the U.S. Drug Enforcement Administration. It is being prosecuted by Assistant U.S. Attorney Rhonda Williams-Henry.
Spokane Man Sentenced to over 19 Years for Unlawful Possession of a Firearm as an Armed Career Criminal and for Violating His Court SupervisionRead the Press Release
Spokane – Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Timothy Binford of Spokane, Washington was sentenced in Federal court to over 19 years. Binford was charged with being a previously convicted felon in possession of a firearm. He was found guilty by a jury following a trial in February, 2014. At the time of the firearm offense, Binford was on court supervision stemming from a prior bank robbery conviction.
United States District Court Chief Judge Rosanna Malouf Peterson sentenced Binford to a 211-month term of imprisonment and a 5-year term of court supervision following release from federal prison. The Judge also imposed a 24 month consecutive sentence because Binford violated the court’s previously-imposed conditions of releases. Binford has been in custody since his arrest in September, 2014.
According to information disclosed during the court proceedings, a Spokane County Sheriff’s Detective arrested Binford on an unrelated matter in September, 2014. At the time of his arrest, Binford was in possession of a sports bag containing a Lorcin Model L22 .22 caliber semi-automatic pistol. The firearm was concealed in a pair of gloves. The bag also contained blank .22 caliber ammunition, two zippered bags containing syringes and plastic bindles containing methamphetamine residue, a digital scale, a hand-weapon fashioned from a circular saw blade, a collapsible metal baton, handcuffs, and a skull facemask. Binford was also in possession of a credit card and debit cards belonging to other people. As a previously convicted felon, Binford was prohibited by federal law from possessing any firearms or ammunition that had previously traveled in interstate commerce. Evidence showed that the Lorcin pistol Binford possessed Binford had been manufactured in Mira Loma, California, and had traveled in interstate commerce at some time prior to Binford’s arrest. Binford sentence was enhanced based on his criminal history, which history included three prior felony convictions for violent offenses. ,
Binford, who has been convicted of multiple felony offenses, was subject to court supervision at the time of his arrest. This supervision stemmed from an armed bank robbery conviction for which he had been sentenced to 188 months in prison. Binford had been release from prison on January 10, 2014, and was on court supervision at the time that he possessed the firearm
Michael C. Ormsby said, “The sentence imposed in this case not only reflects the seriousness of keeping firearms out of the hands of previously-convicted felons, but the importance of complying with court-ordered conditions of supervision. This case is yet another example of the commitment of the United States Attorney’s Office to prosecute aggressively firearms-related cases in the Eastern District of Washington.”
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Spokane County Sheriff’s Office. The case was prosecuted by Timothy J. Ohms, an Assistant United States Attorney for the Eastern District of Washington.
Seminole County Man Charged with Possessing Bombs in Winter ParkRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces that Carl Joseph Thomas Pisa (24, Casselberry) was arrested yesterday after selling explosive devices to an undercover agent in Winter Park. If convicted, he faces a maximum penalty of ten years in federal prison.
According to court documents, in December 2014, an undercover task force agent (UC) with the Orange County Sheriff’s Office contacted Pisa in response to an online ad for a military simulator offered for sale. Pisa agreed to sell him the simulator. Between December 2014 and February 2015, Pisa met with the UC on several occasions to sell the UC explosives. On February 6, 2015, Pisa sold the UC 12 improvised explosive devices in a parking lot in Winter Park. During the meeting, the UC asked Pisa if the explosives could kill somebody, to which Pisa responded, “yes.” In describing the bombs, Pisa explained how ball bearings would blast out from the device in a perfect cone upon initiation. The devices were sent to the Bureau of Alcohol, Tobacco, Firearms, and Explosives laboratory for examination, where they were identified as explosive bombs and destructive devices. It was also determined that they were not properly registered to Pisa in the National Firearms Registration and Transfer Record.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Orange County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney James D. Mandolfo.
This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” Program - a nationwide, gun-violence reduction strategy. United States Attorney A. Lee Bentley, III, along with Regina Lombardo, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials. It is also a part of ATF’s Frontline strategy to reduce violent crime and improve the quality of life where law enforcement efforts are focused.
Second of Cape Cod Brothers Sentenced to 25 Years for Oxycodone Trafficking SchemeRead the Press Release
BOSTON – The second of a pair of Cape Cod brothers was sentenced today for his role in a three-year, multi-million dollar oxycodone distribution conspiracy that flooded Cape Cod with highly addictive opiates.
Stanley D. Gonsalves, 36, of Sandwich, Mass., was sentenced by U.S. District Court Chief Judge Patti B. Saris to 25 years in prison, six years of supervised release, forfeiture of $3,552,203 and property, including seized money, a house in West Yarmouth, a Cadillac, and a Nissan Altima.
“Opiates are ruining lives, tearing apart families, and poisoning our Commonwealth,” said United States Attorney Carmen M. Ortiz. “While much has been written lately about the incarceration of low-level, non-violent drug defendants, the two defendants in this case are precisely the type of defendant who should be targeted by federal law enforcement: recidivist, violent criminals operating a significant drug organization in a community suffering from opiate abuse.”
“This investigation resulted in the dismantlement of a violent drug trafficking organization that operated throughout Cape Cod for years,” said Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division. “The success of this case is just one example of the FBI’s commitment to rid communities across the Commonwealth of drug trafficking enterprises.”
“The Gonsalves brothers’ large-scale oxycodone conspiracy wreaked havoc on Cape Cod by escalating the opiate epidemic,” said Special Agent William Offord of IRS Criminal Investigation. “Today’s sentence of Stanley Gonsalves highlights the seriousness of his drug, money laundering and firearm offenses. IRS CI will continue to lend our financial expertise by tracking the significant proceeds generated through narcotics trafficking.”
"DEA is committed to investigating and dismantling large scale drug trafficking organizations like this one operated by the Gonsalves brothers," said Special Agent in Charge Michael Ferguson. "Illicit Oxycodone trafficking destroys people’s lives and wreaks havoc in our communities. DEA and our law enforcement partners will aggressively pursue any group that traffic these drugs."
In October 2014, after a month-long federal trial, Stanley Gonsalves was convicted of oxycodone conspiracy, money laundering conspiracy, 17 counts of money laundering, and possession of a firearm in furtherance of a drug trafficking conspiracy. The charges stemmed from a three-year conspiracy involving hundreds of thousands of 30-milligram oxycodone pills, which he and his brother and co-defendant, Joshua M. Gonsalves, distributed on Cape Cod, generating over $5 million in proceeds. Joshua Gonsalves was also convicted at trial of oxycodone trafficking conspiracy, money laundering conspiracy, and a money laundering charge. In January 2015, Chief Judge Saris sentenced Joshua Gonsalves to 20 years in prison, five years of supervised release, and forfeiture of $1,522,372.
During the trial, witnesses testified that couriers working for the Gonsalves brothers transported multi-thousand-pill loads of 30-milligram oxycodone pills from South Florida to New England by plane and by car. The Gonsalves would then split the pills into 100-pill packs for sale to Cape Cod dealers.
The primary object of the related money laundering conspiracy was to use the millions of dollars in drug proceeds to purchase additional oxycodone pills and to pay the ongoing expenses of the oxycodone conspiracy. During the trial, witnesses testified about seizures from the Gonsalves brothers’ co-conspirators of two south-bound cash shipments totaling $140,000 and a north-bound pill shipment of 5,700 pills. Other large pill seizures occurred in Fort Lauderdale (8,000 pills), in Volusia County, Fla. (900 pills), along Route 6 in Barnstable, Mass. (280 pills), and along Route 3 in Kingston, Mass. (4,000 pills). Other related cash seizures from co-conspirators totaled $167,000.
The trial evidence also included extensive testimony about a car chase and rollover incident, which occurred on Route 3 on May 13, 2011, in which the Gonsalves brothers allegedly rammed their Mercedes SUV into a Volvo station wagon, which they mistakenly believed contained $225,000 in cash drug proceeds taken from them in a Bourne robbery. The men in the Volvo, who allegedly were only assisting the primary robbers (who were watching these events unfolding from a different car), managed to survive the rollover crash and then fled into the woods.
The jury also convicted Stanley Gonsalves of possessing an AR-15 semi-automatic rifle, which he kept at his rented home in Onset, Mass.
At today’s sentencing hearing, the prosecutor noted the ongoing opiate epidemic in Massachusetts, which remains a priority for federal, state, and local law enforcement. U.S. Attorney Ortiz is collaborating with federal, state, and local officials to combat opiate addiction in Massachusetts. Chief Judge Saris found the defendant responsible for over 177,000 oxycodone pills and described the defendant’s record as one of “extreme recidivism.”
U.S. Attorney Ortiz; FBI SAC Lisi; IRS Criminal Investigation SAC Offord; DEA SAC Ferguson; and Colonel Timothy P. Alben, Superintendent of the Massachusetts State Police, made the announcement today. Significant assistance was also provided by the DEA Cape Cod Drug Task Force; the Barnstable County and Cape and Islands District Attorney’s Offices; the Barnstable, Boston, Bourne, Chatham, Dennis, Franklin, Harwich, Plymouth, Sandwich, Quincy, Yarmouth, and Wareham Police Departments; the Barnstable and Bristol County Sheriff’s Departments; the Florence County (South Carolina), Broward County (Florida) and Volusia County (Florida) Sheriff’s Offices; and the Dillon and Ridgeland (South Carolina) Police Departments.
The case was prosecuted by Assistant U.S. Attorney Timothy E. Moran and recently retired Assistant U.S. Attorney Richard L. Hoffman of Ortiz’s Organized Crime and Gang Unit.
Schnuck Markets Agree to Pay $65,000.00 Civil PenaltyRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that Schnuck Markets, Inc. (Schnucks) has paid the United States of America sixty-five thousand dollars ($65,000.00) as part of a voluntary agreement settling allegations that Schnucks violated the Controlled Substances Act.
The United States alleged that Schnucks pharmacies filled prescriptions written by unauthorized practitioners. In particular, the allegations include that the pharmacies filled prescriptions written by mid-level practitioners not authorized to prescribe certain controlled substances and by practitioners who previously surrendered their prescribing privileges.
"Pharmacies are the last line of defense in ensuring that prescription drugs do not fall into the wrong hands. The Controlled Substances Act requires careful scrutiny of each prescription before it is filled. That scrutiny falls squarely on the shoulders of the pharmacy which dispenses the drugs." noted United States Attorney Wigginton. "Abuse of prescription drugs is a nationwide epidemic, and my office will not hesitate to pursue all appropriate penalties, be those civil or criminal, against pharmacies and pharmacists who violate the law."
"I would note that to its credit, Schnucks was cooperative throughout this investigation and the resolution of this case. Schnucks has made significant changes in its pharmacy practices and besides the civil penalty paid, invested additional monies and resources in technology and training to reduce the chance that violations like these ever occur again," said United States Attorney Wigginton.
This matter was investigated by the Saint Louis and Chicago field offices of the Drug Enforcement Administration’s Office of Diversion Control. The case was prosecuted by Assistant United States Attorney Adam Hanna.
Rockland Resident Pleads Guilty to Conspiring to Distribute Crack CocaineRead the Press Release
Contact: Joel B. Casey
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Jackie Madore, 45, of Rockland, pleaded guilty today in U.S. District Court to conspiracy to possess with the intent to distribute and to distribute 280 grams of a mixture or substance containing cocaine base, commonly referred to as “crack.”
According to court records, between January 2010 and December 2013, the defendant sold crack in Penobscot County and elsewhere. She sold half-gram bags for $50 and gram bags for $100. She transferred the proceeds of her sales to her source of supply in the New Haven, Connecticut area and got cash and crack in exchange. The crack was transported from Connecticut to the Bangor area by other conspirators.
The defendant faces up to 20 years in prison and a $1,000,000 fine. She will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The case was investigated by the Maine Drug Enforcement Agency and the Bureau of Alcohol, Tobacco, Firearms and Explosives (New Haven Office).Previously Convicted Owings Mills Sex Offender Sentenced to 11 Years in Prison for Possessing Child PornographyRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell sentenced Shawn Joseph Eisenstein, age 29, of Owings Mills, Maryland, today to 11 years in prison followed by supervised release for life, for possession of child pornography. Eisenstein was previously convicted of distribution of child pornography in Baltimore County and was required to register as a sex offender. Judge Russell ordered that upon his release from prison, Eisenstein must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Acting Special Agent in Charge Ivan Arvelo of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Chief James W. Johnson of the Baltimore County Police Department; and Baltimore County State’s Attorney Scott Shellenberger.
On May 28, 2008, Eisenstein was convicted in Baltimore County Circuit Court of distributing child pornography, and sentenced to five years’ incarceration, with three years and six months suspended. Eisenstein was placed on three years of probation upon his release from prison and ordered to register as a sex offender.
According to his plea agreement, in July 2014, Eisenstein uploaded images containing child pornography to his email account. Following the email provider’s discovery of the images, a search warrant for Eisenstein’s residence was executed on July 29, 2014. Eisenstein admitted to using his cell phone and his email accounts to trade files of child pornography with people he met on an image board website. He viewed the child pornography on his cell phone.
A Baltimore County computer forensic examiner subsequently found over 100 images on Eisenstein’s cell phone of children engaged in lewd and sexual activity. In all, Eisenstein possessed over 600 images of child pornography, including pre-pubescent children and images portraying sadistic or masochistic conduct, or other depictions of violence.
Eisenstein further admitted that in October 2011, while still on probation for his previous conviction for distribution of child pornography, he used an email account to communicate with an undercover Baltimore County detective who represented himself as a 13 year old female. During those conversations Eisenstein discussed meeting the “girl” to engage in sexually explicit conduct.
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.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the FBI, HSI Baltimore, Baltimore County Police Department and Baltimore County State’s Attorney’s Office for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant U.S. Attorney Paul E. Budlow, who prosecuted the case.
Philadelphia Man Sentenced to Five Years in Prison for Robbing Five Banks Across Two StatesRead the Press Release
CAMDEN, N.J. - A Philadelphia man was sentenced today to 60 months in prison for robbing five banks in New Jersey and Pennsylvania over four months, U.S. Attorney Paul J. Fishman announced today.
Nathaniel Stroud, 34, previously pleaded guilty before U.S. District Judge Joseph E. Irenas in Camden federal court to an information charging him with two counts of bank robbery. Judge Irenas imposed the sentence today in Camden federal court.
According to documents filed in the case and statements made in court:
Stroud admitted robbing the following banks:
Date
Bank
Location
Sept. 27, 2013
PNC Bank
2401 Welsh Road, Philadelphia
Nov. 8, 2013
Roma Bank
80 Hartford Road, Delran, New Jersey
Nov. 15, 2013
TD Bank
13 Levitt Parkway, Willingboro, New Jersey
Dec. 19, 2013
TD Bank
2231 Cottman Avenue, Philadelphia
Jan. 9, 2014
1st Constitution Bank
140 Mercer Street, Hightstown, New Jersey
Stroud admitted that at each robbery, he handed the teller a note demanding cash and threatening the use of a gun.
In addition to the prison term, Judge Irenas sentenced Stroud to serve three years of supervised release and ordered him to pay restitution of $21,640.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel, in Newark; the Burlington County Prosecutor’s Office, under the direction of Prosecutor Robert D. Bernardi: and the Mercer County Prosecutor’s Office, under the direction of Acting Prosecutor Angelo J. Onofri, with the investigation. He also thanked the Delran, Willingboro and Hightstown police departments for their assistance.
The government is represented by Assistant U.S. Attorney Matthew J. Skahill of the U.S. Attorney's Office Special Prosecutions Division in Camden.
Defense counsel: Maggie Moy Esq., Assistant Federal Public Defender, Camden
Owner of Bodybuilding Drug Companies Indicted for Selling Misbranded DrugsRead the Press Release
Greenbelt, Maryland – A federal grand jury indicted Gavin Burns Smith, age 44, of New Port Richey, Florida, on May 20, 2015 for selling misbranded drugs with the intent to defraud, in connection with the sale of peptides to bodybuilders which were not approved by the FDA for human use. The indictment was returned on May 20, 2015 and unsealed yesterday upon his arrest.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Antoinette V. Henry of the U.S. Food & Drug Administration, Office of Criminal Investigations’ Metro Washington Field Office.
According to the seven count indictment, from 2010 to April 2012, Smith owned and operated Precision Peptides, in Lutz, Florida. From April 2012 to May 2015, Smith owned and operated DNA Peptides, in New Port Richey, Florida. Smith placed ads on the companies’ websites and sold body-enhancing injectable drugs to individuals seeking to enhance their physiques. These drugs were not approved by the FDA for use in humans.
On August 22, 2012, law enforcement executed federal search warrants at Precision Peptides and DNA Peptides. At some time between August 22, 2012 and March 2015, Smith began operating DNA Peptides out of his residence.
The indictment alleges that Smith caused DNA Peptides and Precision websites to display numerous disclaimers stating that all products sold were for “research/laboratory use only.” Additionally, prior to purchasing the products from the website, each customer was asked to certify that he or she read the disclaimer that the “chemicals/materials for sale here are . . . not intended for human ingestion.” Yet Smith allegedly intended that the products be used by consumers for bodybuilding purposes.
The drugs Smith allegedly sold included Growth Hormone Releasing Peptide-2, Growth Hormone Releasing Peptide-6, Melanotan II, Growth Hormone Releasing Hormone, Ipamorelin, Human Growth Hormone Fragment, Mechano Growth Factor, and Dehydroepiandrosterone, none of which the FDA has approved for use in humans.
The indictment alleges that Smith sold misbranded drugs to an undercover officer and shipped those drugs to various locations in Laurel, Columbia and Beltsville, Maryland on seven occasions from November 21, 2011 to March 12, 2015.
The indictment seeks forfeiture of $2,102,684.06, the value of the misbranded drugs subject to seizure.
Smith faces a maximum sentence of three years in prison, one year of supervised release, and a $250,000 fine. An initial appearance is scheduled for Smith before Magistrate Judge Jillyn K. Schulze in U.S. District Court in Greenbelt on June 30, 2015 at 1:45 p.m.
United States Attorney Rod J. Rosenstein commended the FDA Office of Criminal Investigations for its work in the investigation and thanked Assistant U.S. Attorney Kelly O. Hayes, who is prosecuting the case.
Norwegian shipping company and engineering officers charged in second indictment with environmental crimes and obstruction of justiceRead the Press Release
LAFAYETTE, La. – A federal grand jury has returned a three-count indictment charging Det Stavangerske Dampskibsselskab AS (DSD Shipping) and four employees with violating the Act to Prevent Pollution from Ships (APPS) and obstruction of justice in connection with the illegal discharge of contaminated waste-water directly into the sea, announced Assistant Attorney General John C. Cruden for the Department of Justice’s Environment and Natural Resources Division and U.S. Attorney Stephanie A. Finley for the Western District of Louisiana.
DSD Shipping is a Norwegian-based shipping company that operates the oil tanker M/T Stavanger Blossom, a vessel engaged in the international transportation of crude oil. Also indicted were four engineering officers employed by DSD Shipping to work aboard the vessel: Daniel Paul Dancu, 51, of Romania; Bo Gao, 49, of China; Xiaobing Chen, 34, of China; and Xin Zhong, 28, of China.
The operation of marine vessels, like the M/T Stavanger Blossom, generates large quantities of waste oil and oil-contaminated waste water. International and U.S. law requires that these vessels use pollution prevention equipment to preclude the discharge of these materials. Should any overboard discharges occur, they must be documented in an oil record book, a log that is regularly inspected by the U.S. Coast Guard.
“Companies operating vessels in navigable waterways have a responsibility to prevent oil spills and protect the public and the environment,” said U.S. Attorney Finley. “One of our priorities is to help preserve the natural resources of this state. Violators should be clear - charges will be filed against entities and persons who harm these resources and obstruct investigations.”
According to the indictment, in 2014, DSD Shipping and its employees discharged oil-contaminated waste water generated aboard the M/T Stavanger Blossom directly into the sea. To hide the illegal discharges, DSD Shipping and its employees maintained a fictitious oil record book that failed to record the disposal, transfer, or overboard discharge of oil from the vessel. The indictment further alleges that prior to an inspection by the U.S. Coast Guard, Chen ordered crewmembers to remove piping connected to the vessel’s overboard discharge valve, install new piping, and repaint the piping to hinder an inspection by the U.S. Coast Guard.
DSD Shipping and the engineering officers were charged with violating the APPS for failing to record overboard discharges in the vessel’s oil record book and with obstruction of justice for presenting false documents and deceiving the Coast Guard during an inspection in the Port of Lake Charles. If convicted, DSD Shipping could be fined up to $500,000 per count, in addition to other possible penalties. Dancu, Gao, Chen and Zhong face a maximum penalty of 20 years in prison for the obstruction of justice charges.
us_vs_dsd_et_al_15-cr-00125-01-05.pdf (530.45 KB)
This is the second indictment arising from a joint, multi-district investigation by the U.S. Coast Guard, Sector Mobile, U.S. Coast Guard Investigative Services and the Criminal Investigation Division for the Environmental Protection Agency. DSD Shipping, Dancu, Gao, Chen and Zhong were previously indicted in the Southern District of Alabama with a seven-count indictment charging related conduct. Assistant U.S. Attorney Howard C. Parker with the U.S. Attorney’s Office for the Western District of Louisiana, Assistant U.S. Attorney Mike Anderson with the U.S. Attorney’s Office for the Southern District of Alabama and Trial Attorney Shane N. Waller Environmental Crimes Section are prosecuting the case.
An indictment is merely an accusation and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
Norwegian Shipping Company and Engineering Officers Charged in Second Indictment with Environmental Crimes and Obstruction of JusticeRead the Press Release
A federal grand jury in Lafayette, Louisiana, has returned a three-count indictment charging Det Stavangerske Dampskibsselskab AS (DSD Shipping) and four employees with violating the Act to Prevent Pollution from Ships (APPS) and obstruction of justice in connection with the illegal discharge of contaminated waste-water directly into the sea, announced Assistant Attorney General John C. Cruden for the Department of Justice’s Environment and Natural Resources Division and U.S. Attorney Stephanie A. Finley for the Western District of Louisiana. DSD Shipping is a Norwegian-based shipping company that operates the oil tanker M/T Stavanger Blossom, a vessel engaged in the international transportation of crude oil. Also indicted were four engineering officers employed by DSD Shipping to work aboard the vessel: Daniel Paul Dancu, 51, of Romania; Bo Gao, 49, of China; Xiaobing Chen, 34, of China; and Xin Zhong, 28, of China.
The operation of marine vessels, like the M/T Stavanger Blossom, generates large quantities of waste oil and oil-contaminated waste water. International and U.S. law requires that these vessels use pollution prevention equipment to preclude the discharge of these materials. Should any overboard discharges occur, they must be documented in an oil record book, a log that is regularly inspected by the U.S. Coast Guard.
“Companies operating vessels in navigable waterways have a responsibility to prevent oil spills and protect the public and the environment,” said U.S. Attorney Finley. “One of our priorities is to help preserve the natural resources of this state. Violators should be clear - charges will be filed against entities and persons who harm these resources and obstruct investigations.”
According to the indictment, in 2014, DSD Shipping and its employees discharged oil-contaminated waste water generated aboard the M/T Stavanger Blossom directly into the sea. To hide the illegal discharges, DSD Shipping and its employees maintained a fictitious oil record book that failed to record the disposal, transfer, or overboard discharge of oil from the vessel. The indictment further alleges that prior to an inspection by the U.S. Coast Guard, Chen ordered crewmembers to remove piping connected to the vessel’s overboard discharge valve, install new piping, and repaint the piping to hinder an inspection by the U.S. Coast Guard.
DSD Shipping and the engineering officers were charged with violating the APPS for failing to record overboard discharges in the vessel’s oil record book and with obstruction of justice for presenting false documents and deceiving the Coast Guard during an inspection in the Port of Lake Charles. If convicted, DSD Shipping could be fined up to $500,000 per count, in addition to other possible penalties. Dancu, Gao, Chen and Zhong face a maximum penalty of 20 years in prison for the obstruction of justice charges. An indictment is merely a formal charge that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until and unless proven guilty.
This is the second indictment arising from a joint, multi-district investigation by the U.S. Coast Guard, Sector Mobile, U.S. Coast Guard Investigative Services and the Criminal Investigation Division for the Environmental Protection Agency. DSD Shipping, Dancu, Gao, Chen and Zhong were previously indicted in the Southern District of Alabama with a seven-count indictment charging related conduct. Assistant U.S. Attorney Howard Parker with the U.S. Attorney's Office for the Western District of Louisiana, Assistant U.S. Attorney Mike Anderson with the U.S. Attorney’s Office for the Southern District of Alabama and Trial Attorney Shane N. Waller Environmental Crimes Section are prosecuting the case.
Mound Man Pleads Guilty to Tax EvasionRead the Press Release
United States Attorney Andrew M. Luger today announced the guilty plea of JAMES SIGANOS, 50, to one count of tax evasion. SIGANOS was charged on May 26, 2015, by felony information, of evading corporate income taxes. He pleaded guilty yesterday before U.S. District Judge Ann D. Montgomery in U.S. District Court in Minneapolis, Minn. A sentencing date has not yet been determined.
According to his guilty plea and documents filed in court, SIGANOS was the owner of a carpet-cleaning business located in Mound, Minnesota. As owner of the company, the defendant was responsible for filing federal corporate tax returns on behalf of the company. SIGANOS filed a Form 1120S U.S. Income Tax Return for the calendar year 2009, in which he underreported his company’s gross receipts or sales as $246,166.
In 2009, SIGANOS’ company had approximately $591,013 in gross receipts or sales. To avoid paying taxes on the full amount of his company’s revenue, SIGANOS cashed more than 1,400 checks totaling approximately $410,905 at a check cashing facility in Minneapolis. The result was that the defendant underreported his 2009 income by approximately $344,858. SIGANOS filed no corporate income tax returns for the tax years 2010, 2011, and 2012, resulting in an underreporting of approximately $438,991. The total tax loss caused by SIGANOS is approximately $300,000.
“Tax evasion is not a victimless crime,” said Shea Jones, Special Agent in Charge of the St. Paul Field Office IRS Criminal Investigation. “IRS special agents work diligently to identify and bring to prosecution those who evade their taxes.”
SIGANOS faces up to three years in prison.
This case is the result of an investigation conducted by the Internal Revenue Service – Criminal Investigation Division.
This case is being prosecuted by Assistant U.S. Attorney Joseph H. Thompson.
Defendant Information:
JAMES SIGANOS, 50
Mound, Minn.
Convicted:
- Tax Evasion, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600