Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
18 June 2015
Federal Operation Convicts Nine Montanans of More Than Half a Million Dollars in Social Security FraudRead the Press Release
HELENA – Montana U.S. Attorney Michael Cotter announced today the culmination of a federal operation that found nine Montanans engaged in Social Security fraud. Dubbed “Operation Save our Social Security,” Operation S.O.S. uncovered approximately a half-million dollars in fraudulent payments to individuals in Montana, which occurred when the individuals provided false information or made misrepresentations on their paperwork for Supplemental Security Income (SSI), which also impacts eligibility for other federal assistance. In total, the operation uncovered approximately $390,000 in Social Security fraud, $107,288 in Medicaid fraud, and $34,500 in Supplemental Nutrition Assistance Program (SNAP) and Temporary Assistance for Needy Families (TANF) fraud. The individuals have been ordered to pay back the money they stole, including the final individual, Caroline Bighair, who was sentenced today to pay back $23,424 and to three years of supervised release. One recipient of the federal benefits agreed to pay back the money under an agreement with the U.S. Attorney’s Office due to personal circumstances.
“Supplemental Security Income relies on the truthfulness and personal integrity of the people who apply for and receive it,” said Mike Cotter, Montana U.S. Attorney. “When people get greedy and lie to the government in order to get more money than they deserve, the people who actually qualify and need the money to survive are harmed.”
“These individuals repeatedly lied, cheated and stole from some of the most vulnerable residents of Montana,” said Wilbert Craig, Special Agent in Charge of the Social Security Administration/Office of Inspector General Denver Field Division. “In many instances, the victims were their own family and left to fend for themselves. These are real crimes, impacting real lives, and extending beyond the victims to every U.S. taxpayer. I am proud of our combined efforts with the U.S. Attorney’s Office.”
Known as Supplemental Security Income (SSI), the money is drawn from general federal tax revenue and is designed to help aged, blind and disabled citizens who have little or no income. SSI provides cash to meet basic needs for food, clothing and shelter. Applications for Supplemental Security Income also impact eligibility for other federal monies, including Medicaid, survivor benefits, and Supplemental Nutrition Assistance Program (SNAP), also known as food stamps.
The following individuals were convicted as part of the operation: Caroline Big Hair, Vicky Blair, Tonya Brackett, Meghan Gontz, Nelson Grandchamp, Earline Pritchard, Georgia Wetsit, Bonnie Wingo. Another individual agreed to pay back the money through a diversion program due to personal circumstance. Examples of fraud include misrepresentations about whether a recipient was married, the composition of a recipient’s household, and how much money the recipient was making as income. Those misrepresentations directly impacted whether or not the individuals were eligible to receive federal money which, in some cases, was in excess of $1,000 per month from the federal government.
The operation was a collaborative effort between the Montana U.S. Attorney’s Office, the Social Security Administration, and the Office of Inspector General. If you suspect that someone is fraudulently receiving federal money, call to report it at 1-800-269-0271 or log on to http://oig.ssa.gov/report.
Eugene Felon Sentenced to 10 Years in Federal Prison for Possessing FirearmsRead the Press Release
EUGENE, Ore. – On June 16, 2015, Billy Jess Barnard, 30, of Eugene, Oregon, was sentenced by U.S. District Judge Michael McShane to ten years in federal prison for unlawful possession of firearms. Upon his release from prison, Barnard will be on supervised release for three years.
On December 10, 2013, Eugene Police Department officers arrested Barnard in a stolen vehicle and found him with two handguns. A search of his phones revealed photos of Barnard holding multiple firearms, including an AK-47 type pistol and a shotgun. Barnard has prior felony convictions for, among other things, fleeing or attempting to elude police and burglary in the second degree.
In addition to his federal case, the Lane County District Attorney’s Office is prosecuting Barnard in two separate criminal cases arising from other events in 2013.
This case was investigated by the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives and the Eugene Police Department, and was prosecuted by Assistant U.S. Attorney Nathan J. Lichvarcik, with the assistance of Lane County Deputy District Attorneys Paul Graebner and Katherine Green.
Dunkirk Man Sentenced on Child Pornography ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that Shane Taylor, 43, of Dunkirk, NY, who was convicted of possession of child pornography, was sentenced to 120 months in prison by U.S. District Judge Richard J. Arcara.Assistant U.S. Attorney Carol G. Bridge, who handled the case, stated that on July 18, 2011, law enforcement officers executed a search warrant at the defendant’s residence on Dove St. in Dunkirk. Officers seized a computer and a shotgun from Taylor’s room. An analysis determined that the computer contained over 3000 images of child pornography, many depicting pre-pubescent children and images of violence.
The sentencing is the culmination of an investigation by Immigration and Customers Enforcement, Homeland Security Investigations, under the direction of Acting Special Agent in Charge J. Michael Kennedy.
Dulce, N.M., Man Pleads Guilty to Failing to Update his Sex Offender RegistrationRead the Press Release
ALBUQUERQUE – McQuade Quintana, 28, of Dulce, N.M., pleaded guilty this morning in federal court in Albuquerque, N.M., to violating the Sex Offender Registration and Notification Act (SORNA). The guilty plea was announced by U.S. Attorney Damon P. Martinez and U.S. Marshall Conrad E. Candelaria.
SORNA, also known as the Adam Walsh Protection and Safety Act, requires that a convicted sex offender register in each jurisdiction where the offender resides, where the offender is employed, or where the offender is a student, and that the sex offender maintain current registrations.
Quintana was arrested on Nov. 25, 2014, on a criminal complaint charging him with violating SORNA by failing to update his sex offender registration. On Dec. 16, 2014, Quintana was indicted for failing to update his registration between Oct. 10, 2014 and Nov. 25, 2014, in Bernalillo County, N.M.
According to court filings, Quintana was convicted of aggravated sexual abuse of a child in Jan. 2006. On Sept 30, 2010, Quintana registered as a sex offender in Bernalillo County and agreed to notify the sheriff of the county to which he moved if he relocated outside of the county. Quintana last registered as a sex offender on March 16, 2011, in Rio Arriba County, and subsequently failed to notify the New Mexico Department of Public Safety or the Bernalillo County Sheriff’s Office that he had moved or to update his sex offender registration as required by SORNA.
Today, Quintana pled guilty to a felony information and admitted that between Oct. 10, 2014 and Nov. 25, 2014, he failed to register as a sex offender in Bernalillo County. Quintana also admitted that on Sept. 5, 2014, he was approved to reside at a residential reentry program in Albuquerque by the U.S. Probation Office and that he left the program without permission on Oct. 10, 2014.
At sentencing, Quintana faces a statutory maximum of ten years in federal prison followed by not less than three years of supervised release. Quintana will also be required to register as a sex offender following his term of incarceration.
This case was investigated by the U.S. Marshals Service and is being prosecuted by Assistant U.S. Attorney Kyle T. Nayback as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
District Man Sentenced to 12 Years in Prison for Sexually Abusing Two ChildrenRead the Press Release
WASHINGTON – James Izlar, 37, of Washington, D.C., was sentenced today to 12 years in prison on charges stemming from the sexual abuse of two girls at a residence where they were staying in Southeast Washington, Acting U.S. Attorney Vincent H. Cohen, Jr. announced.
Izlar pled guilty in February 2015, in the Superior Court of the District of Columbia, to two counts of second-degree child sexual abuse. The plea, which was contingent upon the Court’s approval, called for a prison sentence between 9 ½ and 12 years. The Honorable Jennifer Anderson accepted the plea today. Upon completion of his prison term, Izlar will be placed on seven years of supervised release. He also must register as a sex offender for the rest of his life.
According to the government’s evidence, Izlar was on supervised release for a previous child sexual abuse conviction involving a 2005 attack on a 13-year-old girl. In June 2013, he removed his GPS tracking device and began living in a house where the two girls, then 6 and 9, were temporarily residing. The people in the house did not know that Izlar was a convicted sex offender. Soon thereafter, Izlar began inappropriately touching the girls, who reported the abuse to a family member. Police were notified, leading to Izlar’s arrest.
In announcing the sentence, Acting U.S. Attorney Cohen commended the work of the detectives of the Metropolitan Police Department’s Youth Investigations Division. He also acknowledged those who worked on the case from the U.S. Attorney’s Office, including Victim/Witness Advocate Veronica Vaughan; former Victim/Witness Advocate Melissa Milam; Child Forensic Interview Specialists Karen Giannakoulias and Tracy Owusu, and Paralegal Specialist Joyce Arthur. Finally, he expressed appreciation for the work of Assistant U.S. Attorney John L. Hill, who prosecuted the case.
District Man Pleads Guilty to Stealing Nearly $200,000 in Federal Retirement BenefitsRead the Press Release
WASHINGTON – Harry Van Jackson, 69, of Washington, D.C., pled guilty today to a federal charge stemming from his theft of $199,915 of his deceased father’s retirement benefits, announced Acting U.S. Attorney Vincent H. Cohen, Jr., and Patrick E. McFarland, Inspector General for the Office of Personnel Management (OPM).
Jackson pled guilty in the U.S. District Court for the District of Columbia to theft from the government. Under federal sentencing guidelines, the plea carries a potential term of imprisonment of 12 to 18 months. As part of his plea agreement, Jackson agreed to pay $199,915 in restitution. He also could be subject to the same amount in forfeiture, and other financial penalties. The Honorable Beryl A. Howell set sentencing for Sept. 11, 2015.
According to the government’s factual proffer, OPM, among other duties, manages pension benefits for retired employees of the United States government. The Civil Service Retirement System (CSRS) is a retirement system covering federal employees who entered covered federal service before Jan. 1, 1987. Upon retirement from civil service, the federal employees covered by CSRS become CSRS annuitants and are entitled to CSRS benefits throughout their lifetimes. In addition, a CSRS annuitant has the option to elect a survivor benefit for his/her spouse; if selected, a spousal benefit allowed for the annuitant’s surviving spouse to continue to receive a reduced amount of benefits throughout the spouse’s lifetime.
There is no benefit under CSRS for surviving children older than 18 (unless the child was incapable of self-support due to a mental or physical disability that existed prior to age 18).
Jackson’s father retired from the U.S. Government on July 10, 1981, after 38 years of federal service. At the time of his death, on Aug. 23, 2004, Mr. Jackson’s father was receiving approximately $1,400 per month in annuity benefits from CSRS; this amount increased due to cost of living adjustments to approximately $1,770 per month by October 2014. These benefits were automatically deposited into a bank account solely in the father’s name.
Jackson was not entitled to any of his father’s benefits under CSRS, in that he was not a retired federal employee or spouse, he was not a surviving child younger than 18 when his father died, and did not suffer from a mental or physical disability that existed prior to the age of 18.
In October 2014, OPM sent an Address Verification Letter to the attention of Jackson’s father to his last known address in the District of Columbia, requesting confirmation that the annuity payments were going to the right person at the correct address. The letter enclosed an Annuitant’s Response form, which provided a section for confirmation from the CSRS annuitant, and a section for a response if the annuitant was deceased. A short time later, OPM received a response, purportedly signed by the father, confirming the annuity and Social Security number, and other information. This section for the deceased annuitant was not completed.
From the date of Jackson’s father’s death to October 2014, CSRS annuity payments continued to be made to the father’s bank account, totaling approximately $199,915. Jackson used this money, by accessing ATMs and by writing checks signing his father’s signature.
In announcing the plea, Acting U.S. Attorney Cohen and Inspector General McFarland expressed appreciation for the work performed by OPM’s Office of Inspector General. They also acknowledged the efforts of Paralegal Specialist Corinne Kleinman, Assistant U.S. Attorney Diane Lucas, who assisted with forfeiture issues, and Assistant U.S. Attorney Virginia Cheatham, who is prosecuting the case.
Detroit man pleads guilty to federal heroin traffickingRead the Press Release
HUNTINGTON, W.Va. – A Detroit man who assisted in the sale of heroin in Huntington in 2013 and 2014 pleaded guilty today to a federal drug charge, announced U.S. Attorney Booth Goodwin. Ramone L. Wells, 20, entered a guilty plea in federal court in Huntington to conspiracy to distribute heroin.
From February of 2013 to December 8, 2014, Wells worked with multiple associates to distribute heroin in Huntington that had been transported from Detroit. Wells supervised street level heroin dealers in Huntington and collected cash proceeds from the heroin sales. Wells also sold heroin directly. Wells and his associates used multiple Huntington residences to store, prepare and distribute heroin, including a home at 403 Homestead Place.
On December 6, 2014, a United States Postal Inspector intercepted a package mailed to the Homestead Place address that contained approximately 230 grams of heroin. Agents delivered the package that day and after it was accepted, executed a search warrant at the residence. During the search, agents seized heroin, paraphernalia used to package and distribute heroin, cash, and four guns.
Wells faces up to 20 years in federal prison, and is scheduled to be sentenced on September 21, 2015.
The Huntington FBI Drug Task Force, United States Postal Service, West Virginia State Police and Huntington Police Department conducted the investigation. Assistant United States Attorney Joseph F. Adams is in charge of the prosecution.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
Derby Line Woman Pleads Guilty to Fraud and False Tax FilingRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Amy C. Fletcher, age 44, of Derby Line, Vermont, pleaded guilty yesterday in federal court in Brattleboro to committing wire fraud and filing a false tax return.
Fletcher admitted in court that while working for Derby Line Ambulance (“DLA”) during 2009-2012, she embezzled money from the company to pay personal expenses. She also admitted filing a false 2011 tax return with the Internal Revenue Service.
Fletcher admitted engaging “in an ongoing practice of diverting funds from DLA for personal use, paying personal credit cards and home and car loans.” She admitted drawing over 400 checks on DLA’s business accounts, making them payable to herself and others for her benefit. She admitted that such transfers paid down outstanding balances on her 14 credit cards. The government stated at the change of plea hearing that, during the time period in question, DLA had business receipts of over $1.5 million, out of which Fletcher diverted over $250,000. Fletcher’s counsel responded that the total amount of stolen funds might be contested at sentencing.
Fletcher also admitted filing a false IRS 1040 tax return in 2011, understating her income and her taxes due. Her filing was accompanied by a written declaration that it was accurate, while she knew it was false.
U.S. District Court Judge J. Garvan Murtha ordered a presentence investigation, and scheduled a sentencing hearing on December 17, 2015.
The case was investigated by the Federal Bureau of Investigation, and the Internal Revenue Service, Criminal Investigation Division. The maximum possible penalty for the two offenses is 20 years in prison for the wire fraud, and three years for the false tax filing. Fletcher is represented by attorney David Sleigh of St. Johnsbury. The United States is represented by Assistant U.S. Attorney William Darrow.
Daviess County Medical Physician Charged with Importing and Billing Medicaid for Misbranded and Unapproved DrugsRead the Press Release
Allegedly Billed Medicaid $68,171.34 for IUD’s Not Approved For Use By The FDA
OWENSBORO, Ky. – Acting United States Attorney John E. Kuhn, Jr. today announced the single charge of misbranded and unapproved drugs, against a Daviess County, Kentucky medical physician.
Randall Edward King, MD, age 56, of Women’s Healthcare, located in Owensboro, Kentucky, was charged by an information in Owensboro, on June 17, 2015.
King is accused of importing intrauterine devices (IUDs) from the United Kingdom, which were designed for use in Turkey, and for billing Medicaid $68,171.34 for the IUDs which were not approved for use by the U.S. Food and Drug Administration (FDA). These IUDs are considered misbranded because their labeling was not in the English language, rendering those labels unlikely to be read and understood by the ordinary individual under customary conditions of purchase and use.
If convicted at trial, King could be sentenced to no more than one year in prison, ordered to pay a fine of $1,000 and to serve a one year period of supervised release.
This case is being prosecuted by Assistant United States Attorney David Weiser and is being investigate by the FDA – Office of Criminal Investigations.
***
The indictment of a person by a Grand Jury is an accusation only and that person is presumed innocent until and unless proven guilty.
Crownpoint Man Sentenced to Prison for Federal Sexual Abuse ConvictionRead the Press Release
ALBUQUERQUE – Tomson Largo, 26, an enrolled member of the Navajo Nation who resides in Crownpoint, N.M., was sentenced this afternoon in federal court in Albuquerque, N.M., to 90 months in prison followed by a lifetime of supervised release for his sexual abuse conviction. Largo will be required to register as a sex offender after his term of incarceration
Largo was arrested on Oct. 29, 2014, on a three-count indictment charging him with attempted aggravated sexual abuse, aggravated sexual abuse, and abusive sexual contact. The indictment alleged that Largo committed the offenses on multiple occasions between July 2011 and March 2014, in McKinley County, N.M., within the Navajo Indian Reservation.
On March 17, 2015, Largo pled guilty to all three counts of the indictment. In entering his guilty plea, Largo admitted that between July 1, 2011 and Aug. 31, 2011, he attempted to sexually abuse the victim, an Indian woman, while she was sleeping with her two children. He further admitted that in Dec. 2011, he used force to sexually assault the victim, and in March 2014, he assaulted the victim by shoving his hands down her pants and touching her between the legs. Largo admitted committing each of the three crimes at a residence in Crownpoint.
This case was investigated by the Crownpoint office of the Navajo Nation Division of Public Safety and the Gallup office of the FBI and was prosecuted by Assistant U.S. Attorney Kristopher N. Houghton.
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.
Crafton Man Pleads Guilty to Distributing Child PornographyRead the Press Release
PITTSBURGH – An Allegheny County pleaded guilty in federal court to a charge of distribution of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.
Michael Leneweaver, 49, of Crafton, Pa., pleaded guilty to one count before United States District Judge Mark R. Hornak.
In connection with the guilty plea, on or about Sept. 5, 2013, Leneweaver distributed videos and images containing material depicting the sexual exploitation of minors.
Judge Hornak scheduled sentencing for Oct. 14, 2015, at 2 p.m. The law provides for a maximum total sentence of 90 years in prison, a fine of $1,250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Jessica Lieber Smolar is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Allegheny County District Attorney’s Office conducted the investigation that led to the prosecution of Leneweaver.
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.
Covenant Hospice Inc. to Pay $10.1 Million for Overcharging Medicare, Tricare and Medicaid for Hospice ServicesRead the Press Release
On June 18, Covenant Hospice Inc. agreed to pay $10,149,374 to reimburse the government for alleged overbilling of Medicare, Tricare and Medicaid for hospice services, the Department of Justice announced today. Covenant Hospice Inc. is a non-profit hospice care provider which operates in Southern Alabama and the Florida Panhandle.
“The hospice benefits provided by federal health care programs are intended to provide comfort and care to patients nearing the end of life,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer of the Justice Department’s Civil Division. “We will continue to ensure that these benefits are used for their intended purposes.”
The Medicare, Tricare and Medicaid hospice benefits are available for patients who have a life expectancy of six months or less if their disease runs its normal course. Patients admitted to a hospice stop receiving care to cure their illnesses and instead receive medical care focused on providing them with relief from the symptoms, pain and stress of a terminal illness.
Medicare, Tricare and Alabama and Florida Medicaid reimburse for four different levels of hospice care: routine home care, continuous home care, inpatient respite care and general inpatient care. The routine home care level is the lowest reimbursement rate and the highest reimbursement rate paid by the federal health care programs is for general inpatient care. The level of care provided to a patient is subject to change based upon a variety of factors, including the patient’s condition and needs, and the availability of family members or other caregivers to meet those needs. The reimbursement for general inpatient care is greater than that provided for routine home care based upon the expectation that patients requiring the former level of care have more acute medical and psychosocial needs that must be provided in an inpatient setting and are more costly to treat. It is the responsibility of the hospice provider to ensure that a patient’s medical record contains the appropriate documentation to support the level of hospice care that is billed.
“Careful and correct claims for reimbursement from critical federal health care programs are essential to the health of our economy,” said U.S. Attorney Pamela C. Marsh of the Northern District of Florida. “Those public servants who worked hard to investigate the conduct and obtain this settlement deserve our deepest gratitude. We will continue our efforts to ensure that federal dollars intended for compassionate care and legitimate patient needs are protected.”
Today’s settlement resolves allegations that between Jan. 1, 2009, and Dec. 31, 2010, Covenant Hospice Inc. improperly submitted hospice claims for general inpatient care that should have been billed at the routine home care level for Medicare, Tricare and Medicaid patients. The government alleged that Covenant Hospice Inc.’s medical records did not support the medical necessity of the general inpatient care.
The federal government will recover $9,597,118.44 for Covenant Hospice Inc.’s overbilling to Medicare, Tricare and Medicaid, and Alabama and Florida will collectively recover $552,255.56 as a result of overbilling of their respective Medicaid programs. The Medicaid program is jointly funded by the federal and state governments.
This matter was handled by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office of the Northern District of Florida, the Department of Health and Human Services’ Office of the Inspector General, the Defense Health Agency of the U.S. Department of Defense, the Alabama Attorney General’s Office and the Florida Attorney General’s Office.
Convicted Felon Found Guilty of Possessing Firearm in Facebook PhotosRead the Press Release
KNOXVILLE, Tenn. – Following a two-day trial in U.S. District Court, on June 17, 2015, Malik First Born Allah Farrad, a.k.a. Marvin Maurice Buckles, 41, of Johnson City, Tenn., was convicted of being a felon in possession of a firearm. Sentencing is set for 10:00 a.m., Oct. 29, 2015.
Farrad faces a baseline punishment of a maximum of 10 years in prison. However, possible sentencing enhancements could result in a mandatory minimum term of 15 years up to life in prison. There is no parole in the federal system.
In the fall of 2013, officers with the Johnson City Police Department began an investigation into suspected illicit conduct by Farrad. In so doing, law enforcement examined his use of social media, specifically, Facebook. Investigators found that in October 2013, Farrad uploaded a photograph of three handguns placed atop the toilet seat in his bathroom. Having previously sustained numerous felony convictions for drug, gun, and violent offense, it was illegal for him to be in possession of such weapons.
Subsequently, investigators, working in conjunction with the Federal Bureau of Investigation (FBI), obtained a search warrant for the entirety of Farrad’s Facebook account. Once executed, law enforcement discovered a variety of photographs showing him holding, posing with, and displaying a Springfield, Model XD, .45 caliber, semiautomatic pistol. The pictures were taken from inside Farrad’s bathroom, and were uploaded in quick succession in October 2013.
At trial, Corporal Kenny Hinkle of the Morristown Police Department testified in great detail as to the distinguishing characteristics of the firearm seen in the seized Facebook photos. Those characteristics both confirmed the identity of the firearm, and dispelled any possibility of it being a toy, fake, replica, or imitation.
This investigation was the product of a partnership between the Johnson City Police Department and the FBI. Assistant United States Attorney Nick Regalia represented the United States.
This case was brought as part of Project Safe Neighborhoods (“PSN”), a comprehensive national strategy that creates local partnerships with law enforcement agencies to effectively enforce existing gun laws. It provides more options to prosecutors, allowing them to utilize local, state, and federal laws to ensure that criminals who commit gun crime face tough sentences. PSN gives each federal district the flexibility it needs to focus on individual challenges that a specific community faces.
This case was also brought as part of the Safe Streets Violent Crimes Initiative, a program which combines the efforts of federal, state, and local agencies in order to stop violent felons from endangering our communities.
###
Colorado Woman Charged with Wire Fraud Conspiracy for Operating $6.8 Million Ponzi SchemeRead the Press Release
CHARLOTTE, N.C. – A criminal bill of information was filed today in federal court, charging Kristine Louise Johnson, 60, of Aurora, Colorado, with wire fraud conspiracy for operating a $6.8 million Ponzi scheme that defrauded more than 10,000 investor victims, announced Jill Westmoreland Rose, Acting U.S. Attorney for the Western District of North Carolina.
Robert W. Rolin, Jr. Acting Special Agent in Charge of the United States Secret Service, Charlotte Field Office joins Acting U.S. Attorney Rose in making today’s announcement.
According to filed court documents, from about April 2014 to February 2015, Johnson and her conspirators ran the investment scheme through a sham internet company, “The Achieve Community” (TAC). To induce victims to invest their money, the conspirators falsely claimed the investors would receive a bogus 700% return on their investment. According to court records, the victims’ money was never invested. Rather, TAC operated as a “Ponzi” scheme, and the conspirators used monies from later victim-investors to pay fraudulent “returns” to earlier ones and to enrich themselves. Johnson and her conspirators defrauded over 10,000 investors both in the Charlotte-area and worldwide, causing the victims to sustain losses totaling millions of dollars.
Court records show Johnson served as Chief Financial Officer (CFO) and managed TAC’s day-to-day operations, including managing company bank accounts and producing marketing materials. According to filed documents, Johnson falsely told potential participants that TAC was not a “Pyramid Scheme,” when, in fact, TAC operated solely as a pyramid scheme and initial investors were paid with later investors’ money. Johnson also falsely told potential investors that the “more products purchased, the more people move through the matrix and get paid.” According to filed documents, there were no actual products and early victim-investors only received Ponzi-like payments, regardless of the purchase of any products. Johnson and her conspirators also falsely promoted TAC as a “lifetime income plan” with “limitless” returns when, in reality, the Ponzi scheme could only operate with ever increasing infusions of new victim-investor cash.
As described in court documents, Johnson and her conspirators falsely represented that TAC was able to sustain and continue making payouts through the use of what they called a “Triple Algorithm” and a “3D Matrix,” which were so complex that they could not be explained in writing. In reality, no such business model existed and the only revenue for the scheme came from victim-investors. According to court records, in order to sustain the scheme, Johnson and her conspirators encouraged investors to “re-purchase” positions in the matrix, thereby reducing the amount of money needed to pay out to early investors and enabling the fraudsters to prolong the scheme. Court records indicate that Johnson used over $200,000 of the victims’ money for her own enrichment.
According to court filings, as the scheme grew in size and scope, Johnson and her conspirators concealed the true nature of the scheme through multiple misrepresentations. According to court records, when the conspirators became concerned that the use of the term “investment” would draw scrutiny from regulators, they instructed victim-investors that “We ARE NOT an INVESTMENT program, please don’t use that term when you speak or post about our re-purchase strategy.”
According to court records, Johnson and her conspirators also lied about the company’s “business model” to the third-party payment processors which processed TAC’s money transactions. When one payment processor concluded that TAC was operating a Ponzi scheme and terminated TAC as a client, court records show that Johnson and her conspirators falsely told victim investors that it was because the payment processor was unable to handle the large amount of money TAC paid to its investors.
As indicated in court documents, the investment scheme began to crumble when payment processors stopped processing the Ponzi payments to victim-investors. By the time the scheme collapsed in February 2015, the conspirators owed victim-investors at least $51 million in purported investment returns, yet Johnson, her conspirators and TAC had available only 4% or approximately $2.6 million.
A signed plea agreement was also filed today, and Johnson is expected to appear before a U.S. Magistrate judge in the coming days to formally accept the plea. The wire fraud charge carries a maximum of 20 years in prison and a $250,000 fine. As part of her plea agreement, Johnson has agreed to pay restitution, the amount of which will be determined by the Court.
The case was investigated by the U.S. Secret Service. In making today’s announcement, Acting U.S. Attorney Rose also thanked the Denver Regional Office of the Securities and Exchange Commission for its assistance with the investigation.
Assistant U.S. Attorney Corey F. Ellis is in charge of the prosecution.
Clearwater Man Pleads Guilty to Theft of Tax Payer Refund MoneyRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that Sylvester Banks, Jr. today pleaded guilty to theft of government funds. He faces a maximum penalty of 10 years in federal prison. A sentencing date has not yet been set.
According to the plea agreement, between April 2011 and March 2013, Banks received and deposited into his bank account approximately $755,900 in U.S. Treasury and other checks, which were all made payable to persons other than himself. Those checks were income tax refund checks that were the result of numerous false and fraudulently filed income tax returns. During an interview with federal agents in February 2015, Banks acknowledged that he had realized that the checks were fraudulent income tax refund proceeds, and that it was unlawful for him to have received and deposited them into his own account.
This case was investigated by the Internal Revenue Service-Criminal Investigation Division. It is being prosecuted by Assistant United States Attorney Jay L. Hoffer.
Charlotte Area Tax Return Preparer Pleads Guilty to Multi-Million Dollar Tax Return FraudRead the Press Release
CHARLOTTE, N.C. – A Charlotte-area tax return preparer pleaded guilty today to aiding or assisting in the filing of a false claim for tax refund, announced Jill Westmoreland Rose, Acting U.S. Attorney for the Western District of North Carolina. Fitzroy E. Lawrence, 48, of Charlotte, appeared before U.S. Magistrate Judge David S. Cayer and admitted to aiding and assisting in the filing of hundreds of false tax returns that were filed with the IRS seeking fraudulent tax refunds totaling approximately $2.6 million.
According to the filed court documents and today’s plea hearing, for tax years 2008 through 2011, Lawrence aided and assisted in the preparation of hundreds of false tax returns, many of which included false wages and false dependent information. In pleading guilty, Lawrence also admitted that the tax loss associated with the offense is $2,635,641.
Lawrence pleaded guilty to one count of aiding or assisting in filing a false claim against the United States. The maximum penalty for this charge is five years in prison and a $250,000 fine. As part of today’s plea agreement, Lawrence has agreed to pay restitution, the amount of which will be determined by the Court at his sentencing hearing, which has not been scheduled yet. Lawrence was released on bond following his plea hearing.
* * *
In a separate case, another Charlotte-area tax return preparer pleaded guilty for his role in filing false tax returns for clients. Malik Shropshire, 43, of Charlotte, appeared before Judge Cayer today and admitted to conspiring to file false tax returns and lying on a loan application. Shropshire’s conspirator, his sister Nkhenge Shropshire, was sentenced to 33 months in prison for her participation in the scheme in October 2014 in a related case.
According to the filed court documents and today’s plea hearing, beginning in 2010 and continuing through 2012, Shropshire worked as a tax preparer and a financial advisor. Shropshire and his conspirators recruited individuals to have their tax returns prepared by promising large refunds. For tax years 2008 through 2011, Shropshire aided and assisted in the preparation of hundreds of false tax returns that were filed with the IRS. Most of these tax returns were false because, among other things, they included false Schedule C businesses, false dependents, and false refundable education credits. As a result of the inclusion of the false information on the tax returns, the taxpayers’ tax liabilities decreased, the taxpayers received larger tax refunds, and the taxpayers qualified for the Earned Income Tax Credit.
Shropshire pleaded guilty to one count of conspiracy to impede the IRS and one count of making a false statement on a loan application. The maximum penalty for the conspiracy charge is five years in prison and a $250,000 fine. The maximum penalty for the false statement on a loan application is 30 years in prison and a $1,000,000 fine. Shropshire was released on bond following his plea hearing.
Acting U.S. Attorney Rose thanked the Internal Revenue Service, Criminal Investigation Division (IRS-CI) under the direction of Special Agent in Charge Thomas J. Holloman, III, Special Agent in Charge, for the investigation of both cases. Ms. Rose also thanked Thomas L. Noyes, Inspector in Charge of the Charlotte Division of the U.S. Postal Inspection Service, for his agency’s assistance with Shropshire’s investigation.
Assistant United States Attorney Jenny G. Sugar of the U.S. Attorney’s Office in Charlotte is in charge of the prosecution of both cases.
Cedar Rapids Safe Streets Task Force Arrest Ten Individuals Charged on Federal Gun Related OffensesRead the Press Release
Cedar Rapids - The Cedar Rapids Safe Streets Task Force took decisive action this past week to make the streets of the city safer. Ten individuals were charged on federal gun related offenses.
Safe Streets, headed by the FBI, combats guns and other violent crimes by coordinating local, state and federal agencies to maximize intelligence gathering. Coordinating focus ensures law enforcement resources are put to their best and most efficient use. The Task Force was formed in late 2009 following a spike in violent crime in the Cedar Rapids area.
United States Attorney Kevin Techau reported the Task Force=s recent activities at a press conference held at the Cedar Rapids Police Department. Other participants attending the press conference included the FBI, U.S. Marshals Service, and the Cedar Rapids Police Department.
Techau emphasized that, AThe Safe Streets Task Force, has in the past—and will in the future—focus its intelligence gathering and prosecutions on those most dangerous criminal elements who choose to unlawfully use and possess firearms.” He reinforced that Safe Streets resources are available to all law enforcement agencies with related investigations as a “force multiplier,” whether or not those agencies are members of the Task Force. U.S. Attorney Techau concluded indicating, “If you're a prohibited person possessing or using a gun, you're violating federal law and you’re going to pay a price, and federal prison time is a heavy price to pay.”
FBI Assistant Special Agent in Charge Michael Kitsmiller commented on the partnership among agencies stating, “Our Task Force is committed to working with our state, local and federal partners to combat criminal activity. The recent charges demonstrate what can be achieved through the cooperative efforts of several law enforcement agencies, and serves as a warning that criminal activity will not be tolerated in our community.” Supervisory Senior Resident Agent Gabriel Poling, the FBI agent heading the Task Force, echoed the same endorsement and warning.
Cedar Rapids Police Chief Wayne Jerman also offered his praise for the efforts of everyone involved with the Task Force. He also stated, “Since coming together and focusing our energy, it is again evident illegal activity involving firearms will not be tolerated in our city.”
In the past week, the Task Force=s work has resulted in the following charges being filed:
- Darius Devon Flowers, age 26, from Cedar Rapids, Iowa, has been charged with one count of being a felon and domestic abuser in possession of a firearm and ammunition (Case No. 15-MJ-189). On April 22, 2015, Flowers allegedly possessed a loaded .25 caliber pistol under the front passenger seat of a vehicle in Cedar Rapids. Flowers was allegedly convicted of felony possession with intent to distribute a controlled substance in 2009 and felony burglary in 2012. Flowers is in state custody. No date has been set for Flowers’ first appearance in federal court.
- Bryan Gall, age 24, from Cedar Rapids, Iowa, has been charged with one count of being a felon and unlawful drug user in possession of a firearm (Case No. 15-MJ-186). On April 29, 2015, Gall allegedly possessed two handguns, a shotgun, and several rounds of ammunition at a residence in Cedar Rapids. At the time, Gall was allegedly an unlawful user of marijuana and heroin. Gall was allegedly convicted of felony burglary in 2009 and felony possession of contraband in a correctional facility in 2010. Gall is in state custody. No date has been set for Gall’s first appearance in federal court.
- Anthony Steven Hall, Jr., age 30, from Cedar Rapids, Iowa, has been charged with one count of being a felon and unlawful drug user in possession of a firearm (Case No. 15-MJ-176). On April 13, 2015, Hall allegedly possessed a .40 caliber handgun in the console of a vehicle in Cedar Rapids. At the time, Hall was allegedly an unlawful user of marijuana. Hall was allegedly previously convicted of felony delivery of a controlled substance, felony possession with intent to deliver a controlled substance, domestic abuse assault, felony robbery, and twice for possession of a controlled substance. Hall appeared in federal court in Cedar Rapids on June 17, 2015, and was held without bond. Hall’s next appearance for a detention hearing and preliminary examination is set for June 22, 2015, at 1:30 p.m.
- Scott A. High, age 39, from Cedar Rapids, Iowa, and Herbert A. Feickert, age 61, also from Cedar Rapids, Iowa, have each been charged with one count of being a felon in possession of a firearm (Case No. 15-MJ-180). On January 2, 2015, High allegedly possessed three handguns and three long guns – as well as ammunition - at a residence in Cedar Rapids. Feickert allegedly possessed additional firearms at his residence on January 3, 2015. High was allegedly convicted of felony possession of a controlled substance in 2001 and multiple counts of felony burglary in 2009. Feickert was allegedly convicted of breaking and entering in 1973, larceny in the nighttime in 1974, multiple OWIs, and domestic abuse assault in 1992, twice in 1993, 1998, 1999, and 2002.Both High and Feickert appeared in federal court in Cedar Rapids on June 15, 2015, and were held without bond.No date has been set for either High or Feickert’s next appearance in federal court.
- Kenyatta Abdul Aziz Hill, age 29, from Cedar Rapids, Iowa, has been charged with one count of being a felon in possession of a firearm (Case No. 15-MJ-182). On December 26, 2014, Hill allegedly possessed a handgun at a residence in Cedar Rapids. Hill was allegedly previously convicted of felony delivery of a controlled substance within 1000 feet of a church and felony obstruction of justice. Hill appeared in federal court in Cedar Rapids on June 15, 2015, and was held without bond. No date has been set for Hill’s next appearance in federal court.
- Mitchell Demarcus Hall, age 25, from Cedar Rapids, Iowa, has been charged with one count of being a felon and unlawful drug user in possession of a firearm (Case No. 15-MJ-183). On May 23, 2015, Hall allegedly possessed a loaded handgun in a vehicle in Cedar Rapids. At the time, Hall was allegedly an unlawful user of marijuana. Hall was allegedly convicted of felony aggravated robbery in 2009. Hall appeared in federal court in Cedar Rapids on June 15, 2015, and was held without bond. No date has been set for Hall’s next appearance in federal court.
- Jerald Sims, age 38, from Cedar Rapids, Iowa, has been charged with one count of being a felon in possession of a firearm (Case No. 15-MJ-181). On September 19, 2014, Sims allegedly possessed two long arms at a residence in Cedar Rapids. Sims was allegedly previously convicted of felony burglary. Sims appeared in federal court in Cedar Rapids on June 17, 2015, and was held without bond. Sims’ next appearance for a detention hearing and preliminary examination is set for June 22, 2015, at 2:30 p.m.
- Fabian Taylor, age 27, from Cedar Rapids, Iowa, has been charged with one count of being a felon in possession of a firearm (Case No. 15-MJ-175). On July 20, 2014, Taylor allegedly possessed a loaded handgun in a vehicle in Cedar Rapids. Taylor was allegedly previously convicted of felony burglary and domestic abuse assault. Taylor is in state custody. No date has been set for Taylor’s first appearance in federal court.
- Marcus Alexander Thomas, age 22, from Cedar Rapids, Iowa, has been charged with one count of being an unlawful drug user in possession of a firearm and ammunition (Case No. 15-MJ-188). On March 16, 2015, Thompson allegedly possessed a loaded handgun in a vehicle in Cedar Rapids. At the time, Thomas was allegedly an unlawful user of marijuana. Thomas appeared in federal court in Cedar Rapids on June 15, 2015, and was held without bond. No date has been set for Thomas’ next appearance in federal court.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.
If convicted, each individual faces a possible maximum sentence of 10 years’ imprisonment, a $250,000 fine, a $100 special assessment, and three years of supervised release following any imprisonment.
The cases are being prosecuted by Assistant United States Attorneys Daniel Chatham, Anthony Morfitt, Timothy Vavricek, and C.J. Williams, and Special Assistant United States Attorneys Erin Eldridge and Ravi Narayan and investigated by the Cedar Rapids Safe Streets Task Force. During this investigation, the task force was composed of representatives from the Federal Bureau of Investigation, United States Marshals Service, Sixth Judicial District Department of Correctional Services, and the Cedar Rapids Police Department.
See attached flyer, “A Gun Can Put You Away.” a_gun_can_put_you_away.pdf (151.02 KB)
Follow us on Twitter @USAO_NDIA
Canton man indicted on child pornography chargesRead the Press Release
James Kovac III, 29, of Canton, was charged with receiving, distributing and possessing visual depictions of minors engaged in sexually explicit conduct, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio.
The indictment charges that from on or about September 13, 2013, through on or about October 10, 2013, Kovac knowingly received and distributed, by computer, numerous computer files, which contained visual depictions of real minors engaged in sexually explicit conduct. On October 21, 2013, images of child pornography were also found on his Compaq laptop computer.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant's role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.This case is being prosecuted by Assistant United States Attorney Carol M. Skutnik. The case was investigated by the Federal Bureau of Investigation, Canton Office.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Calvert County Man Sentenced for Selling Heroin that Resulted in DeathRead the Press Release
Greenbelt, Maryland - U.S. District Judge Paul W. Grimm sentenced Russell Edward Johnson, age 24, of Lusby, Maryland, today to 11 years in prison followed by three years of supervised release for distributing heroin to a person who died as a result of ingesting the heroin.
The plea agreement was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; Calvert County Sheriff Mike Evans; and Calvert County State’s Attorney Laura Martin.
“More people die of heroin overdoses than murder in Maryland,” said U.S. Attorney Rod J. Rosenstein. “Heroin dealers are selling death and despair.”
According to his plea agreement, on July 18, 2013 in St. Leonard, Maryland, Johnson sold heroin to an individual who ingested the heroin. A few hours later, Johnson again sold heroin to the individual. The individual ingested the additional heroin, and died shortly thereafter. The victim’s cause of death was determined to be heroin intoxication.
United States Attorney Rod J. Rosenstein praised the DEA, Calvert County Sheriff’s Office, and Assistant State’s Attorney Lisa Ridge of the Calvert County State’s Attorney’s Office, for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Arun G. Rao and Daniel C. Gardner, who prosecuted the case.
Bullitt County, Kentucky, Man Pleads Guilty to Production of Child PornographyRead the Press Release
LOUISVILLE, Ky. – A Bullitt County, Kentucky, man pleaded guilty yesterday afternoon, before Senior United States District Judge Thomas B. Russell, to two charges of producing child pornography, announced Acting United States Attorney John E. Kuhn, Jr.
Michael Mudd, age 45, was arrested on August 25, 2014, on a criminal complaint. A federal grand jury indicted Mudd on September 18, 2014. Mudd pleaded guilty to two separate counts of producing child pornography. Additional charges for receiving child pornography remain pending.
According to the record of this case, and information disclosed during yesterday’s hearing, law enforcement officials executed a federal search warrant on Mudd’s residence on August 7, 2014. Mudd was at home during execution of the warrant. Law enforcement officials seized a number of items, including computers, cellular telephones and other digital devices. The items were submitted for forensic examination.
While law enforcement officials were on the scene of the search, neighbors approached and expressed concern about Mudd’s conduct with young boys in the neighborhood. Within 24 hours of executing the warrant, an adult female made contact with law enforcement. She reported that her 12-year-old son told her that Mudd had recorded her son engaged in sexually explicit conduct.
A staff member with Family and Children’s Place in Louisville, Kentucky, conducted a forensic interview with the boy. During the interview, the child described multiple occasions during which Mudd photographed and videoed the child engaging in sexually explicit conduct. According to the child, the recording/photographing took place on multiple occasions dating back to the fall of 2013 and continuing to May 2014. The computer forensic examination of the items seized from Mudd’s home revealed the existence of the videos / photographs described by the boy.
Mudd admitted, during the change of plea hearing, that he had photographed and videoed two different male children. He created the images inside his residence as well as outside at a small lake near the trailer park where he lived.
Mudd faces a statutorily mandated sentence of 15 years in prison and could be sentenced up to 60 years in prison. Further, Mudd faces at least 5 years and up to a life term of supervised release and a fine of $500,000.
Assistant United States Attorney Jo E. Lawless is prosecuting the case. The United States Postal Inspection Service, with assistance from the Bullitt County Sheriff’s Office, conducted the investigation.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Buffalo Man Arrested on Drug ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that a federal grand jury has returned a four count indictment charging Hassan Patton, 47, of Buffalo, NY, with possession with intent to distribute and distribution of fentanyl. The charges carry a maximum penalty of 20 years in prison and a $1,000,000 fine.Assistant U.S. Attorney Mary Catherine Baumgarten , who is handling the case, stated that from December 2011 through January 2012, Patton sold fentanyl patches to an undercover police officer multiple times.
The defendant was arraigned today before U.S. Magistrate Judge Jeremiah J. McCarthy and was released custody. He is due back in court on October 19, 2015 at 11:00 a.m.
The indictment is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Division and the Buffalo Police Department, under the direction of Commissioner Daniel Derenda.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Bucks County Woman Sentenced for Embezzling from Levittown BusinessRead the Press Release
PHILADELPHIA - Joan Baranek, 57, of Yardley, PA, was sentenced today to two years in prison for embezzling $830,504 from her employer, between 2006 and 2012, and not reporting that income on her tax return. Baranek was a vice president for sales at Airgas Safety, Inc., a subsidiary of Airgas, Inc., based in Levittown, Pennsylvania. She pleaded guilty on October 8, 2014 to mail fraud and filing a false income tax return.
Baranek was responsible for designing and managing a sales incentive program for telesales centers (call centers). She purchased gift cards and other award prizes with her personal American Express card, and then submitted expense reports to Airgas for reimbursement. In support of her expense reports, she attached invoices for the gift cards and award prizes to the expense reports. Between May 2006 and December 2012, Baranek altered invoices or even created fictitious invoices, which she attached to her expense reports so as to obtain reimbursement for alleged promotional expenses that she never incurred. Baranek submitted approximately 200 expense reports claiming a total of $1.8 million in promotional expenses; of these, approximately 121 of the reports contained altered, fictitious, or duplicate invoices in support of the expensed promotional items, for a total of approximately $830,504 of fraudulent expenses. Baranek filed a United States income tax return for calendar year 2008, that reported her taxable income as $155,419, when her actual taxable income approximately $360,944.
In addition to the prison term, U.S. District Court Judge Gene E.K. Pratter ordered restitution to Airgas, Inc. in the amount of $567,504, restitution to the IRS of $304,003 in principle and interest, three years of supervised release which includes 50 hours of community service, and a $200 special assessment.
The case was investigated by the FBI and IRS Criminal Investigations. It was prosecuted by Assistant United States Attorney Karen L. Grigsby.
Bergen County, New Jersey, Man Charged with Conspiracy to Provide Material Support to ISILRead the Press Release
NEWARK, N.J. – A Bergen County, New Jersey, man was charged today with conspiracy to provide material support to the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization, U.S. Attorney Paul J. Fishman, Assistant Attorney General for National Security John P. Carlin, and Special Agent in Charge Richard M. Frankel of the FBI’s Newark Division announced.
Samuel Rahamin Topaz, 21, of Fort Lee, New Jersey, was arrested at his home on June 17, 2015, and is charged by complaint with one count of conspiring with others in New Jersey and New York to provide services and personnel to ISIL. He made his initial appearance this afternoon before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court and was remanded without bail.
“Providing fighters and resources to a terrorist organization like ISIL is a threat to our country and its citizens,” U.S. Attorney Fishman said. “We will continue to use all the tools at our disposal to disrupt the efforts of those who are trying to do harm at home and abroad.”
“Samuel Topaz is alleged to have conspired with others to travel abroad to provide material support to ISIL,” Assistant Attorney General Carlin said. “Counterterrorism is the National Security Division’s highest priority. Stemming the flow of foreign fighters abroad and prosecuting those who attempt to provide material support to designated foreign terrorist organizations is key to our national security and public safety.”
"Material support of a terrorist organization is a violation of federal law,” FBI Newark Special Agent in Charge Richard M. Frankel said. “Topaz conspired to provide services and personnel to ISIL. Topaz discussed his desire to travel to Syria to join ISIL. Fortunately, this threat did not materialize due to the indefatigable efforts of the FBI’s Joint Terrorism Task Force. Prevention of terrorism is the FBI’s top priority and I ask the citizens of New Jersey to assist us in this task by remaining vigilant and contacting the FBI or the police if they see or hear anything suspicious.”
According to documents filed in this case and statements made in court:
The FBI and the Joint Terrorism Task Force (JTTF) have been investigating a group of individuals from New York and New Jersey who have allegedly conspired to provide material support to ISIL. Conspirator 1 (CC-1) was a resident of Rutherford, New Jersey, until departing the United States on May 5, 2015, to allegedly join ISIL. Conspirator 2 (CC-2) was a resident of Queens, New York, until he was arrested June 13, 2015, in New York on terrorism charges. Conspirator 3 (CC-3) is a resident of New Jersey.
On May 1, 2015, Topaz discussed CC-1’s plan to travel overseas to join ISIL. CC-1 sent Topaz a message stating that he would be leaving in a few days and asked, “[d]id you do what i [sic] advised you to do.” Topaz responded, “I’m saving my money for it bro trust me I got it.” On May 4, 2015, Topaz stated that he had his passport but needed cash to purchase his ticket. CC-2 replied, “My trip is looking months away[.] if u can take a loan out for 5k or even 2.5k then ur [sic] good, they take US dollars in dawla so u can eat and buy stuff, and they provide u with housing when u reach the land of Islam.” Topaz and CC-2 then discussed that they would be reuniting with CC-1 in Turkey before going to the dawla. CC-2 stated that CC-1 would go first, and then they would join him soon thereafter.
On May 21, 2015, Topaz and CC-3 discussed that they needed to “lay low” and refrain from taking action in furtherance of the conspiracy to provide material support to ISIL that might be detected by law enforcement. Topaz also told CC-3 that they need to discuss “hijra” in person. Topaz later told members of the JTTF that he and his conspirators used the term “hijra” (often spelled “hijrah”) to refer to traveling overseas to join ISIL.
On June 13, 2015, CC-2 was arrested by the FBI and charged in a criminal complaint filed with the U.S. District Court of the Eastern District of New York with conspiring to provide material support to ISIL. On June 15, 2015, Topaz wrote to an unidentified individual that CC-2 had not been answering his phone and added, “We gotta leave ASAP.”
The count of conspiracy to provide material support to a designated foreign terrorist organization carries a maximum potential penalty of 15 years in prison and a fine of $250,000.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark, and the JTTF, with the investigation leading to the arrest.
The government is represented by Assistant U.S. Attorneys L. Judson Welle, Dennis C. Carletta, and Francisco J. Navarro of the U.S. Attorney’s Office National Security Unit in Newark, with assistance from the Department of Justice’s National Security Division, Counterterrorism Section.
The charge and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Attorney General Loretta Lynch Delivers Remarks at the Press Conference to Announce a National Medicare Fraud TakedownRead the Press Release
Contact: (202) 514-2007
Remarks as prepared for delivery
WASHINGTON, D.C.
Good morning. Before we begin today’s announcement, I want to take a moment to address the heartbreaking and deeply tragic events at Emanuel AME Church in Charleston, South Carolina – a crime that has reached into the heart of that community. The Department of Justice has opened a hate crime investigation into this shooting incident. The FBI, ATF, U.S. Marshals Service, Civil Rights Division and U.S. Attorney’s Office are working closely with our state and local partners, and we stand ready to offer every resource, every means and every tool that we possess in order to locate and apprehend the perpetrator of this barbaric crime. Acts like this one have no place in our country. They have no place in a civilized society. And I want to be clear: the individual who committed these unspeakable acts will be found and will face justice.
As we move forward, my thoughts and prayers – and those of our entire law enforcement community, here at the Department of Justice and around the country – are with the families and loved ones of the victims in Charleston. Even as we struggle to comprehend this heartbreaking event, I want everyone in Charleston – and everyone who has been affected by this tragedy – to know that we will do everything in our power to help heal this community and make it whole again.
I encourage the people of Charleston and the wider area to continue circulating the photos of the alleged perpetrator and report any tip, no matter how minor, to the tip line, which can be reached at 1-800-CALL-FBI.
Today, I’m joined by Secretary [Sylvia] Burwell from the Department of Health and Human Services; Director [Jim] Comey of the FBI; Assistant Attorney General [Leslie] Caldwell of the Justice Department’s Criminal Division; Inspector General [Daniel] Levinson of the HHS Office of Inspector General; and Deputy Administrator and Director Dr. [Shantanu] Agrawal of the Centers for Medicare and Medicaid Services in announcing a major advance in the federal government’s fight against fraud in our nation’s health care system.
Over the last three days, as part of a coordinated, nationwide takedown, the Medicare Fraud Strike Force – a joint initiative of the Departments of Justice and Health and Human Services comprising federal, state and local investigators and law enforcement officials from across the country – joined seven additional U.S. Attorney’s Offices in charging or unveiling charges against 243 defendants in 17 federal districts for their alleged participation in Medicare fraud schemes involving approximately $712 million. This is the largest takedown in the Strike Force’s eight-year history. It is the largest criminal health care fraud takedown in the history of the Department of Justice. And it adds to an already remarkable record of enforcement.
The defendants charged include doctors, patient recruiters, home health care providers, pharmacy owners, and others. They are accused of an array of serious crimes ranging from conspiracy to commit health care fraud to wire fraud to money laundering. They billed for equipment that wasn’t provided, for care that wasn’t needed, and for services that weren’t rendered. In one of the more egregious allegations of exploitation of both the Medicare system and vulnerable patients, the owners of a mental health facility in Miami billed for intensive psychotherapy sessions that resulted in tens of millions in reimbursements for the doctors based on treatment that was nothing more than moving patients to different locations. Several of these patients suffered from illnesses like Alzheimer’s and dementia and were unable even to communicate with their supposed caregivers.
Further, nearly 50 of the defendants in this takedown are charged with fraud related to the Medicare prescription drug benefit program known as Part D, which is the fastest-growing component of the Medicare program overall. One owner of a health care provider in the Southern District of Florida received $1.6 million from Medicare Part D for prescription drugs the provider never purchased and never dispensed. Another defendant – a doctor in the Eastern District of Michigan – is alleged to have prescribed unnecessary narcotic pain medications to patients in exchange for the use of their identification information to generate false billings. Patients who attempted to withdraw from the scheme were threatened with loss of access to prescription narcotics. Having deepened these patients’ addiction, the doctors then used that addiction to keep patients bound to their scheme. Taken in total, today’s action represents the first large-scale effort to focus on Medicare Part D fraud – and demonstrates an expanded federal focus on this important issue.
The charges we are announcing today are the culmination of a truly national effort, involving approximately 900 law enforcement personnel acting in concert to execute a set of highly complex and highly coordinated law enforcement activities stretching across the country from Florida to Alaska. This takedown, like those before it, would not have been possible without the key partnerships forged by the Strike Force over the last eight years among federal, state, and local officials, and the cooperation spurred by the joint initiative known as the Health Care Fraud Prevention and Enforcement Action Team, or HEAT, that was launched by DOJ and HHS in 2009. As a result of Strike Force operations since 2007, we’ve filed charges against more than 2,300 individuals, accounting for over $7 billion in Medicare losses. This is a crucial part of the department’s health care fraud enforcement efforts, which include recovery of a total of $15.3 billion through False Claims Act cases involving fraud against federal health care programs since 2009.
Those are extraordinary figures and they reflect our administration-wide commitment to safeguard precious public resources, to rid our health-care systems of fraud and abuse and to sustain the integrity of programs that are essential to the public welfare. In the days ahead, we will continue our focus on preventing wrongdoing and prosecuting those whose criminal activity drives up medical costs and jeopardizes a system that our citizens trust with their lives. The Department of Justice is prepared – and I am personally determined – to continue working with our federal, state and local partners to bring about the vital progress that all Americans deserve.
I want to thank all of the law enforcement officials who were part of the team that made this sweeping takedown possible. Their tireless efforts enabled us to move quickly and aggressively and their inspiring collaboration will be a model for us going forward.
At this time, I’d like to turn things over to Secretary [Sylvia] Burwell, who has been a dedicated leader and indispensable partner in this important work and who will provide additional details on today’s announcement.
# # #
DO NOT REPLY TO THIS MESSAGE. IF YOU HAVE QUESTIONS, PLEASE USE THE CONTACTS IN THE MESSAGE OR CALL THE OFFICE OF PUBLIC AFFAIRS AT 202-514-2007.
Aspen Postal employee arrested after being caught with firearm, knives and handcuffs on Postal propertyRead the Press Release
DENVER – Mauro Emilio Pennini, age 56, of Aspen, a postal employee who worked at an Aspen post office was arrested based on a Criminal Complaint charging him with being the subject of a protection order in possession of a firearm and for possessing a firearm at a federal facility, the U.S. Attorney’s Office and the U.S. Postal Service Office of the Inspector General announced. Pennini made his initial appearance before a U.S. Magistrate Judge in Grand Junction today, where he was advised of his rights and the charges pending against him. He is due back in court on June 23, 2015 at 1:30 p.m. in Grand Junction for a preliminary hearing and a detention hearing.
According to the affidavit in support of the Criminal Complaint, the U.S. Postal Service Office of the Inspector General received information from the U.S. Postal Inspection Service that a mail processing clerk was arrested in the Aspen Post Office on June 8, 2015 by Aspen Police officers. The clerk, Pennini, was arrested for violating a Civil Protection Order. The order was obtained on May 22, 2015, in Pitkin County District Court in Aspen by a female and two minors. The order, which later became permanent, was issued because the court found that Pennini constitutes a credible threat, that an imminent danger exists to the life and health of the Protected Persons named in the action, and sufficient cause exists for the issuance of a Civil Protection Order. It ordered that Pennini not contact, harass, stalk, injure the protected persons. On June 8, 2015, Pennini sent one of the protected persons a text message, which was the basis for the arrest.
After arrest the defendant asked the police officers to get medication he needed out of his bag, which was kept on Postal property in an unlocked locker. When the police officer went to get the medication at the defendant’s request, he found a Sig Sauer 9mm handgun loaded with 14 rounds of ammunition. He also found a switch-blade knife, 3 folding knives, a multi-purpose tool and knife, two sets of handcuffs and two magazines with 14 rounds of ammunition in each.
“The U.S. Attorney’s Office is committed to keep postal employees and their customers safe,” said U.S. Attorney John Walsh. “Possessing a firearm while under a protective order and while on federal property are violations of federal law and will be prosecuted.”
Executive Special Agent in Charge Joanne Yarbrough said, “The American public trusts that U.S. Postal Service employees will obey the law. When an employee of the Postal Service violates that trust, the U.S. Postal Service Office of Inspector General (USPS OIG) thoroughly investigates those matters. This type of alleged behavior within the Postal Service is not tolerated and the overwhelming majority of Postal Service employees, which serve the public, are honest, hardworking, and trustworthy individuals who would never consider engaging in any type of criminal behavior. The USPS OIG and U.S. Attorney’s Office remain committed to holding accountable anyone responsible for such alleged violations. The public we serve can rest assured that the USPS OIG will continue to ensure the accountability and integrity of U.S. Postal Service employees.”
If convicted, Pennini faces not more than 10 years in federal prison, and up to a $250,000 fine for being the subject of a protection order in possession of a firearm. He also faces not more than 1 year in federal prison, and up to a $100,000 fine for possessing a firearm at a federal facility.
This case was investigated by the U.S. Postal Service Office of the Inspector General.
The defendant is being prosecuted by Assistant U.S. Attorney Bob Brown.
A Criminal Complaint is a probable cause charging document. Anyone accused of violating a felony federal law has a Constitutional right to be indicted by a grand jury.
The charges in the Criminal Complaint are allegations, and the defendant is presumed innocent unless and until proven guilty.
Armed Robber Exiled to 16 Years in Prison for Two Commercial RobberiesRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Chavez Tyrone Smith, age 36, of Washington, D.C., today to 16 years in prison, followed by five years of supervised release, for a conspiracy to rob two businesses and for using a firearm during a crime of violence.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Director in Charge Andrew G. McCabe of the Federal Bureau of Investigation - Washington Field Office; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Chief Cathy L. Lanier of the Metropolitan Police Department; Chief Mark A. Magaw of the Prince George’s County Police Department; Chief J. Thomas Manger of the Montgomery County Police Department; Chief Michael E. Scott of the Mount Rainier Police Department; and Maryland Attorney General Brian E. Frosh.
According to Smith’s plea agreement, on May 21, 2012, Smith and his co-conspirators Anthony Akrah Morris, and Tiffany Edmundson, robbed a convenience store and a fast food restaurant. Smith’s role in the conspiracy included conducting surveillance of the businesses prior to the robberies, planning the robberies with his co-conspirators, knowing that at least one co-conspirator would be armed with a gun, entering the businesses and participating in the robberies, and receiving a portion of the proceeds of the robberies.
Specifically, Smith, Morris and Edmundson robbed a convenience store in the 12000 block of Laurel Bowie Road in Laurel, Maryland. Smith and the other robbers work masks partially covering their faces. Smith stood at the entrance of the store to watch for other customers or law enforcement. Smith was armed with a gun. Smith’s co-conspirators ordered customers to the floor and the robbers stole $340 from the store cash register and $475 worth of cigarettes from the store shelves. Edmundson took a cell phone from a customer. Smith and his co-conspirators fled in a vehicle being driven by another co-conspirator.
Approximately one hour later, Morris, Edmundson, and another of Smith’s co-conspirators, Cornelius Jennings, robbed a fast food restaurant located in the 15000 block of Old Columbia Pike in Burtonsville, Maryland. The robbers wore masks and Jennings was armed with a handgun, which was brandished at employees in the store. Smith’s co-conspirators forced employees to open the restaurant’s safe and stole $1,400 from the safe. Smith and the robbers fled in a vehicle being driving by another co-conspirator who was acting as a lookout.
Smith admitted that he received a portion of the money stolen in the two robberies and that he provided the vehicle used to drive to and from the robberies.
Anthony Akrah Morris, age 25, of Burtonsville, Maryland, was convicted after trial and sentenced to 505 months in prison for conspiring to commit robbery, two counts of robbery and two counts of brandishing a firearm during a robbery. Cornelius Jennings, age 27, of Washington, D.C., and Tiffany Edmundson, age 26, of Greenbelt, Maryland, have pleaded guilty to their roles in the conspiracy and are scheduled to be sentenced on June 25, 2015, at 9:30 a.m., and September 15, 2015, at 1:00 p.m., respectively.
United States Attorney Rod J. Rosenstein commended the FBI, Prince George’s County Police Department, Metropolitan Police Department, Montgomery County Police Department, Mount Rainier Police Department and the Maryland Attorney General’s Office for their work in the investigation. Mr. Rosenstein praised the Prince George’s County State’s Attorney’s Office and Montgomery County State’s Attorney’s Office for their assistance and coordination. Mr. Rosenstein thanked Assistant United States Attorney Thomas M. Sullivan, who prosecuted the case.
Arlington Man Indicted on Child Pornography ChargesRead the Press Release
BOSTON – Derrick Jones, 44, of Arlington, was indicted today for receipt and possession of child pornography. He is currently being held without bail. On May 18, 2015, Jones had been charged by criminal complaint.
The charging documents allege that, among other things, Jones utilized file sharing computer programs to trade and receive images of child pornography and also that he downloaded and viewed images and videos of children ranging in age from infants to minors under the age of 18, being sexually exploited. Over 44,000 images of children being sexually exploited were recovered from Jones’ computer. Jones was previously convicted of two counts of Possession of Child Pornography in October 2005.
The charge of receipt of child pornography provides a mandatory minimum sentence of 15 years and no greater than 40 years in prison, a minimum of five years and up to a lifetime of supervised release and a fine of $250,000. The charge of possession of child pornography provides a mandatory minimum sentence of 10 years and no greater than 20 years in prison, a minimum of five years and up to a lifetime of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Michael Shea, Deputy Special Agent in Charge of Homeland Security Investigations in Boston; and Arlington Chief of Police Frederick Ryan, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Suzanne Sullivan Jacobus of Ortiz's Major Crimes Unit.
Members of the public who have questions, concerns or information regarding this case should call 617-748-3274.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Arkansas Man Sentenced to 15 Years for Attacks on Central Arkansas Power GridRead the Press Release
Jason Woodring, 38, of Jacksonville, Arkansas, was sentenced to 15 years in prison today on charges related to his attacks on Central Arkansas’ power grid between August and October 2013. In addition to the term of imprisonment, Woodring will be required to pay $4,792,224 in restitution to Entergy for his attacks on the power lines and electrical tower near Cabot, Arkansas, and a switching station in Scott, Arkansas. Woodring will also pay $48,729 to First Electric Cooperative for damage to the downed power lines and poles in Jacksonville.
Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Christopher R. Thyer of the Eastern District of Arkansas, Special Agent in Charge David T. Resch of the FBI’s Little Rock, Arkansas, Division and Resident Special Agent in Charge Grover Crossland of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Little Rock Field Office made the announcement.
Today, U.S. District Court Judge Billy Roy Wilson of the Eastern District of Arkansas accepted the plea agreement and imposed the recommended 15-year sentence. On March 10, 2015, Woodring pleaded guilty to destruction of an energy facility for downing the Cabot power lines and for setting fire to the Scott power station. He also pleaded guilty to using fire to commit a felony in relation to the arson in Scott, and to being an illegal drug user in possession of various firearms and ammunition. Woodring also agreed to forfeit the firearms and ammunition.
Woodring’s 2013 attacks included sabotaging an electrical support tower and downing a 500,000-volt power line onto a railroad track near Cabot, which resulted in approximately $550,000 worth of damage; setting fire to and destroying an Extra High Voltage switching station in Scott, causing over $4 million in damages; and cutting down two power poles, which led to the temporary loss of power to approximately 9,000 people in Jacksonville. Woodring was charged in an eight-count indictment by a federal grand jury on Nov. 6, 2013.
The case was investigated by the FBI’s Joint Terrorism Task Force; ATF; Union Pacific Police; Entergy; First Electric; the Lonoke County, Arkansas, Sheriff’s Office; Cabot Police; Arkansas State Police; the Conway, Arkansas, Police Department; the Little RockPolice Department; and the Arkansas Game and Fish Commission. The case was prosecuted by Assistant U.S. Attorneys Michael S. Gordon and Cameron Charles McCree of the Eastern District of Arkansas, with the assistance of the National Security Division’s Counterterrorism Section.
9 Indicted on Federal Drug Charges in West TennesseeRead the Press Release
Memphis, TN – Nine people have been indicted for their roles in two separate drug rings responsible for distributing large quantities of methamphetamine, oxycodone, and marijuana in West Tennessee.
On Thursday, June 11, Taquita James, Tavious Jones, Martavious Taylor, Marcus Moore, Brandon Heard, and Fredrick Burton were all indicted by a federal grand jury for conspiracy to possess with the intent to distribute oxycodone. Taylor, Moore, Heard, and Burton were also indicted for conspiracy to possess with the intent to distribute less than 50 kilograms of marijuana.
On the same day, in a separate indictment, Antonio Montgomery, Dylon Chambers, and Kirby Jackson were charged with conspiracy to possess with the intent to distribute methamphetamine.
The Memphis Drug Enforcement Administration (DEA) Task Force; Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF); Multi-Agency Gang Unit (MGU); United States Postal Inspection Service; and the Memphis Police Department Organized Crime Unit (OCU) conducted an investigation of the defendants.
Agencies who assisted with arresting the defendants on Wednesday, June 17, were the Memphis Police Department; Shelby County Sheriff’s Office; Bartlett Police Department; Collierville Police Department; Germantown Police Department; Tipton County Sheriff’s Office; United States Marshals Service; ATF; and the United States Postal Inspection Service.
Search warrants were executed on 10 residences identified during this investigation. During the round-up, officers seized:
• Approximately $30,000
• 1 SKS rifle, 2 handguns
• 1 pound of methamphetamine
• 2 kilograms of cocaine
If convicted for conspiracy to possess with the intent to distribute oxycodone, James, Jones, Moore, Burton, Heard and Taylor face up to 20 years imprisonment. They also face a fine of up to $1 million.
If convicted for conspiracy to possess with the intent to distribute less than 50 kilograms of marijuana, Taylor, Moore, and Burton face up to five years imprisonment and up to a $250,000 fine.
If convicted for conspiracy to possess with the intent to distribute methamphetamine, Montgomery, Chambers, and Jackson face up to 10 years imprisonment and a fine of up to $500,000.
Defendants Taquita James and Fredrick Burton have been released on bond. The remaining defendants will appear before Magistrate Judge Charmiane Claxton on Monday, June 22, for detention hearings.
Assistant U.S. Attorneys Reagan Taylor and Michelle Kimbril-Parks are representing the government in these cases.
The charges and allegations contained in the indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.
# # # #
23 Year Prison Term for Sex Trafficker Who Called Himself "God"Read the Press Release
PHILADELPHIA - Paul Sewell, 49, of Reading, PA, was sentenced yesterday to 23 years in prison for sex trafficking of minors or of adults by force, and production of child pornography. Sewell pleaded guilty, on September 21, 2011, to four counts of sex trafficking and three counts of production. In addition to the prison term, U.S. District Court Judge C. Darnell Jones, II, ordered five years of supervised release and ordered Sewell to pay $52,000 in restitution.
Sewell ran a prostitution ring in the Reading area through which he hired females, including minors, to work for him. Sewell, who called himself "God," insisted that the girls who worked for him be tattooed with "God" and a nickname he gave them as a "working name." He also photographed the girls so that he could feature them on a website called "cashmoneybrothersescorts.com," on which he advertised them as escorts. Sewell took sexually explicit pictures of the girls to email to potential clients. Sewell also subjected some females to physical violence to force them to continue working for the venture.
The case was investigated by the Federal Bureau of Investigation and Berks County Detectives with the assistance of the Berks County District Attorney's Office. It was prosecuted by Assistant United States Attorney Michelle Morgan.
12 Charged in Chicago as Part of Largest National Medicare Fraud Takedown in HistoryRead the Press Release
CHICAGO – Attorney General Loretta E. Lynch and Department of Health and Human Services (HHS) Secretary Sylvia Mathews Burwell announced today a nationwide takedown by Medicare Fraud Strike Force operations in 17 districts, resulting in charges against 243 individuals, including 46 doctors, nurses and other licensed medical professionals, for their alleged participation in Medicare fraud schemes involving approximately $712 million in false billings. In addition, the Centers for Medicare & Medicaid Services (CMS) also suspended a number of providers using its suspension authority as provided in the Affordable Care Act. This coordinated takedown is the largest in Strike Force history, both in terms of the number of defendants charged and loss amount. Zachary T. Fardon, United States Attorney for the Northern District of Illinois, announced thirteen defendants who were charged in four local cases as part of the national package.
“This action represents the largest criminal health care fraud takedown in the history of the Department of Justice, and it adds to an already remarkable record of enforcement,” said Attorney General Lynch. “The defendants charged include doctors, patient recruiters, home health care providers, pharmacy owners, and others. They billed for equipment that wasn’t provided, for care that wasn’t needed, and for services that weren’t rendered. In the days ahead, the Department of Justice will continue our focus on preventing wrongdoing and prosecuting those whose criminal activity drives up medical costs and jeopardizes a system that our citizens trust with their lives. We are prepared – and I am personally determined – to continue working with our federal, state, and local partners to bring about the vital progress that all Americans deserve.”
“Health care fraud extracts a huge toll on our nation’s health care system,” stated U.S. Attorney Fardon in announcing the cases charged in the Northern District of Illinois. “We will continue to aggressively pursue those health care providers that take advantage of not only the system, but the patients they are entrusted to care for.”
Three of the cases and nine of the defendants in the Northern District of Illinois involve home health services, an area which is “vulnerable to fraud, waste and abuse,” according to the Department of Health and Human Services Office of Inspector General in a 2012 report, “Inappropriate and Questionable Billing by Medicare Home Health Agencies.” In 2013, citing factors that strongly indicated fraudulent activity in the metropolitan Chicago area compared to other areas, the Centers for Medicare & Medicaid Services imposed the first-ever moratorium authorized by the Affordable Care Act to halt the enrollment of new home health providers in the metropolitan Chicago area.
The Medicare Fraud Strike Force operations are part of the Health Care Fraud Prevention & Enforcement Action Team (HEAT), a joint initiative announced in May 2009 between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Since their inception in March 2007, Strike Force operations in nine locations have charged over 2,300 defendants who collectively have falsely billed the Medicare program for over $7 billion.
Including today’s enforcement actions, nearly 900 individuals have been charged in national takedown operations, which have involved more than $2.5 billion in fraudulent billings. Today’s announcement marks the first time that districts outside of Strike Force locations have participated in a national takedown; those districts account for 82 defendants charged in the takedown.
The cases announced today are being prosecuted and investigated by Medicare Fraud Strike Force teams from the Fraud Section of the Justice Department’s Criminal Division and from the U.S. Attorney’s Offices for the Southern District of Florida, Eastern District of Michigan, Eastern District of New York, Southern District of Texas, Central District of California, Eastern District of Louisiana, Northern District of Texas, Northern District of Illinois, and the Middle District of Florida; and agents from the FBI, HHS-OIG and state Medicaid Fraud Control Units.
In addition to the Strike Force, today’s enforcement actions include cases brought by the U.S. Attorney’s Offices for the Northern District of Illinois, Southern District of Illinois, Northern District of Ohio, Western District of Pennsylvania, Western District of Kentucky, Southern District of New York, Alaska, and the Southern District of Georgia. The following cases are being prosecuted by the Northern District of Illinois:
United States vs. Janet Guerrero, et.al
Seven individuals who worked at three related home health care companies – Donnarich Home Health Care, Inc., Josdan Home Health Care Inc., and Pathways Home Health Services LLC – were charged by superseding indictment yesterday with conspiracy to commit health care fraud, health care fraud, false statements, and money laundering. The indictment alleges a $45 million fraud at the three home health care companies, starting as early as 2008 and continuing into 2014. The fraud as alleged included paying illegal bribes and kickbacks to obtain Medicare beneficiaries; ignoring doctors who refused to certify beneficiaries as “homebound” and eligible for care; enrolling patients who did not need or want the care; subjecting patients to pre-planned cycles of discharges and re-enrollments, regardless of their medical needs; and falsifying medical records to make patients appear to be homebound or sicker than they actually were.The newly-charged defendants include Josephine Tinimbang, an owner and operator of the companies; Dr. Jose Calub, the medical director; Sharon Gulla, a registered nurse and a former supervisor; and Marilou Lozano, Ronald Malalis, Mary Pilar Mendoza, and Isabelita Sabejon, registered nurses who enrolled non-homebound beneficiaries and fabricated medical records. Two defendants were charged in an earlier indictment: Sherwin Cubelo, a patient recruiter who received illegal kickbacks; and Janet Guerrero, an office manager who administered the kickbacks. The government is represented in this case by Trial Attorney Brooke Harper.
United States vs. Barry Fischer
Barry Fischer, 70, of River Forest, was indicted for health care fraud on Wednesday in a 20-count federal indictment for allegedly billing Medicare for unnecessary home visits, for falsely certifying patients for home health services, and for putting false information in patient charts. Fischer allegedly signed orders in which he falsely certified patients as “confined to the home,” under his care, and requiring skilled nursing services. According to the indictment, as a result of Fischer’s false certifications, Medicare suffered losses in the form of payments to the company Fischer worked for and various home health agencies. The government is represented in this case by Assistant U.S. Attorney Stephen Chahn Lee.United States vs. Zenaida Dimailig
Zenaida Dimailig, 78, of Bensenville, was charged by complaint with health care fraud for allegedly causing Medicare to be billed for home health services for patients who were not home bound and for services that were not rendered. Dimailig allegedly paid cash kickbacks to Medicare-covered patients who, in turn, allowed their Medicare information to be used to bill Medicare for home-health services that these individuals did not need. Dimailig then passed on this Medicare information and records that falsely suggested that certain services were provided to Medicare beneficiaries to home health care agencies for the purpose of billing Medicare. The government is represented in this case by Assistant U.S. Attorney Timothy Storino.United States vs. Omeed Memar
Omeed Memar, 46 of Chicago, a dermatologist, was indicted for health care fraud last week in a 16-count federal indictment for allegedly billing cosmetic treatments fraudulently as the destruction of large numbers of pre-cancerous lesions. According to the indictment, the defendant falsely diagnosed patients with actinic keratosis, or precancerous lesions that are typically rough, dry or scaly, and then billed public and private health insurers for medically unnecessary treatments. According to the indictment, between 2007 and January 2013, Memar falsely diagnosed patients with actinic keratosis, ordered his staff to provide intense-pulsed light treatments for his patients, and instructed his staff to document the procedures falsely as the destruction of 15 or more precancerous lesions. The government is represented in this case by Assistant U.S. Attorney Stephen Chahn Lee.The charges were announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; Lamont Pugh III, Special Agent-in-Charge of the U.S. Department of Health and Human Services Office of Inspector General in Chicago; James Vanderberg, Special Agent-in-Charge of the U.S. Department of Labor Office of Inspector General in Chicago; Martin J. Dickman, Inspector General, U.S. Railroad Retirement Board; and Stephen Boyd, Special Agent-in-Charge of the Internal Revenue Service, Criminal Investigation, Chicago Field Office.
Money laundering carries a maximum penalty of 20 years in prison and a $500,000 fine. Health care fraud and conspiracy to commit health care fraud carry a maximum penalty of 10 years in prison and a $250,000 fine and restitution is mandatory. Making a false statement in a health care matter carries a maximum penalty of 5 years in prison and a $250,000 fine. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The public is reminded that indictments and complaints are not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Fischer Indictment
Dimailig Complaint
Guerrero Superseding Indictment
Memar Indictment11 Individuals Operating 14 Companies Charged in New Orleans Fraud Schemes Amounting to Almost $110 Million in FraudRead the Press Release
Attorney General Loretta E. Lynch, U.S. Attorney Kenneth A. Polite of the Eastern District of Louisiana, Special Agent in Charge Michael Anderson of the FBI’s New Orleans Field Office, and Special Agent in Charge Mike Fields of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Dallas Regional Office announced today that 11 individuals – including two doctors and a clinical psychologist – were charged for their roles in five separate fraud schemes based in New Orleans that, combined, submitted close to $110 million in fraudulent claims to Medicare.
The charges were part of a nationwide sweep led by the Medicare Fraud Strike Force in 17 districts, resulting in charges against 243 individuals, including 46 doctors, nurses and other licensed medical professionals, for their alleged participation in Medicare fraud schemes involving approximately $712 million in false billings. In addition, the Centers for Medicare & Medicaid Services (CMS) also suspended a number of providers using its suspension authority as provided in the Affordable Care Act. This coordinated takedown is the largest in Strike Force history, both in terms of the number of defendants charged and loss amount.
“This action represents the largest criminal health care fraud takedown in the history of the Department of Justice, and it adds to an already remarkable record of enforcement,” said Attorney General Lynch. “The defendants charged include doctors, patient recruiters, home health care providers, pharmacy owners, and others. They billed for equipment that wasn’t provided, for care that wasn’t needed, and for services that weren’t rendered. In the days ahead, the Department of Justice will continue our focus on preventing wrongdoing and prosecuting those whose criminal activity drives up medical costs and jeopardizes a system that our citizens trust with their lives. We are prepared – and I am personally determined – to continue working with our federal, state, and local partners to bring about the vital progress that all Americans deserve.”
Grand juries sitting in the Eastern District of Louisiana returned four indictments charging defendants with crimes carried out through 13 companies operating in Louisiana, California, Mississippi, Alabama and Florida. A criminal complaint was filed against another defendant for a scheme carried out at another companies. These schemes centered on billing Medicare for home health care services, psychological testing services, durable medical equipment, and psychotherapy services – services and equipment that were not medically needed and in many instances were not provided.According to court documents, Elaine Davis, Pramela Ganji, M.D., and Godwin Ogboukiri, M.D. were indicted for their involvement in a home health care fraud scheme carried out through Christian Home Health Care, Inc. (Christian). The indictment alleges that the defendants falsely claimed that thousands of Medicare recipients in and around New Orleans were in need of home health care services. The indictment alleges that from 2007 through 2015, Christian submitted more than $33.2 million in claims for home health care services to Medicare, the vast majority of which were fraudulent.
Also indicted were Rodney Hesson, Psy.D., and Gertrude Parker for their roles in a $25 million psychological testing scheme carried out through eight companies in four states. Hesson and Parker owned and operated Nursing Home Psychological Service (NHPS) and Psychological Care Services (PCS), each with separate companies in Louisiana, Mississippi, Florida and Alabama. The indictment alleges that these companies contracted with nursing homes in these states to allow NHPS and PCS clinical psychologists to administer psychological tests to nursing home residents. Dr. Hesson and Parker caused these companies to bill Medicare for psychological testing services that these nursing home residents did not need or in some instances did not receive. Between 2009 and 2015, NHPS and PCS submitted over $25.2 million in claims to Medicare, a significant amount of these claims being fraudulent.
Separately, Geoffrey Ricketts, Marla Ricketts, Sunyup Kim and Samuel Kim were indicted for their direction of a $38 million fraud scheme centering around the distribution of "talking glucose meters" that were not medically needed and were often not even requested. The indictment alleges that the defendants operated Care Concepts, LLC, which was based in Metairie, Louisiana, and Choice Home Medical Equipment and Supplies (Choice), which was based in Chatsworth, California. Court documents reveal that the defendants paid kickbacks to workers at call centers in California and South Carolina, from which operators would cold-call Medicare recipients to convince them to accept talking glucose meters and related supplies. Court records show that in response to Medicare audits, Choice employees were instructed to alter and fabricate documents to conceal the fraud scheme. From 2007 through 2015, the defendants caused more than $38.2 million in claims to be submitted to Medicare through Care Concepts and Choice, virtually all of which were fraudulent.
Separately, a grand jury sitting in New Orleans charged Sheila White with defrauding Medicare in connection with the alleged provision of psychotherapy services to Medicare beneficiaries. The indictment alleges that White fraudulently billed Medicare for psychotherapy services claimed to be provided at Brandye’s House of New Orleans, LLC (Brandye's House), a company White operated. The indictment further alleges that White used the Medicare provider number of a licensed clinical social worker who did not work for Brandye’s House, without lawful authority, to submit bills to Medicare. Between 2011 and 2015, Brandye’s House allegedly submitted over $1.8 million in claims to Medicare, virtually all of which were fraudulent.
Finally, Louella Givens was charged by criminal complaint for a fraud scheme carried out through two companies -- Maxima Home Health Services (Maxima), and House Call Home Health Care (House Call). The complaint alleges that Givens caused Maxima and House Call to submit claims for home health services to Medicare beneficiaries in and around New Orleans. The complaint alleges that a vast majority of these services were not medically necessary and/or not provided. From 2008 through 2014, Maxima and House Call submitted claims to Medicare amounting to more than $12.2 million, the vast majority of which were fraudulent.
These cases are being investigated by the FBI and HHS-OIG, and were brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Louisiana. These cases are being prosecuted by Trial Attorneys William Kanellis and Antonio Pozos of the Criminal Division’s Fraud Section, and Assistant United States Attorneys Patrice Harris Sullivan and Jordan Ginsberg of the Eastern District of Louisiana.
The Medicare Fraud Strike Force operations are part of the Health Care Fraud Prevention & Enforcement Action Team (HEAT), a joint initiative announced in May 2009 between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Since their inception in March 2007, Strike Force operations in nine locations have charged over 2,300 defendants who collectively have falsely billed the Medicare program for over $7 billion.
Including today’s enforcement actions, nearly 900 individuals have been charged in national takedown operations, which have involved more than $2.5 billion in fraudulent billings. Today’s announcement marks the first time that districts outside of Strike Force locations have participated in a national takedown and accounted for 82 defendants charged in the takedown.
A complaint or indictment is merely a charge, and defendants are presumed innocent until proven guilty.
Elaine David, Pramela Ganji, Godwin Ogboukiri Indictment.pdf (999.17 KB)
Rodney Hesson, Gertrude Parker Indictment.pdf (471.31 KB)
Geoffrey Ricketts, Marla Ricketts, Sunyup Kim, Samuel Kim Indictment.pdf (616.99 KB)
Sheila White Indictment.pdf (1.05 MB)
10 People Arrested in Two Separate Cases for Heroin and Cocaine Trafficking Affecting Multiple Western New York CommunitiesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that a federal grand jury has returned two separate indictments charging 10 individuals with narcotics trafficking in the Cities of Buffalo, NY and Dunkirk, NY.U.S. Attorney William J. Hochul stated “The two arrest operations conducted today removed major sources of illegal narcotics from flowing into our area. The dangers of both heroin and cocaine are well known, and can include death for the user, and a severe decline in the neighborhood for those who through no fault of their own reside near drug distribution locations. This Office will continue to target and prosecute those who would destroy our community through the peddling of illegal and toxic substances.”
“Throughout this week, two major drug distribution rings were dismantled and their leaders arrested. The arrests of Burgos and Pagan solidify the end of their cocaine distribution operation; every dose they sold throughout the Chautauqua County and adjacent towns fueled drug addiction,” stated DEA Special Agent in Charge James J. Hunt. “Drug addiction has become public health’s archenemy and as heroin related deaths have increased 174%, heroin traffickers have become law enforcement’s priority target which has led to these latest arrests of members of the Molina-Rios heroin trafficking organization. This two year investigation uncovered a heroin distribution network that allegedly distributed up to 1,000 heroin glassines a day, or in other words 1,000 doses of death per day.” SAC Hunt would like to thank the Western District of New York U.S. Attorney’s Office and all of DEA’s law enforcement partners for their diligent work throughout these investigations.”
Daniel Molina-Rios, a/k/a Ponce, 40, Orlando Rios, a/k/a Fifo, 43, Luis Montanez, a/k/a Wichy, 37, and Jose Andujar, 37, all of Buffalo, NY, are charged with conspiracy to possess with intent to distribute, and to distribute, 100 grams or more of heroin. The charge carries a minimum penalty of five years in prison, a maximum of 40 years and a $5,000,000 fine.
Assistant U.S. Attorney Mary Catherine Baumgarten, who is handling the case, stated that multiple law enforcement officers conducted an investigation into a heroin drug trafficking organization operated by Daniel Molina-Rios. According to the indictment and other court documents, since approximately 2014, the organization acquired heroin from the New York City area for distribution in Buffalo. The organization also has an alternate heroin source in Buffalo, that source is identified as Luis Montanez. The Molina-Rios drug trafficking organization distributed heroin through multiple street-level distributors or “runners” who are managed by Jose Andujar and led by Daniel Molina-Rios and Orlando Rios.
Search warrants were executed at the residences of the defendants including 620 Grant Street, 42 Potomac Street, 74 Fillmore Avenue, and 221 Gorton Street, all in Buffalo.
Named in a separate indictment are David Jesus Pagan, 39, Rafael Burgos, Jr., 40, Samuel Hernandez, III, 34, Javier Pagan, Jr., 31, Alvin Torres, Jr., 30, and Angel Pierluissi, 28, all of Dunkirk. The defendants are charged with conspiracy to possess with intent to distribute and to distribute five kilograms or more of cocaine. David Jesus Pagan is also charged with maintaining a premises for manufacturing and distribution of cocaine, possession of a firearm in furtherance of drug trafficking and being felon in possession of a firearm. The charges carry a mandatory minimum 10 years in prison, a maximum of life, and a $10,000,000 fine.
Assistant U.S. Attorney Thomas S. Duszkiewicz, who is handling the case, stated that between 2013 and June 10, 2015, law enforcement officers have been investigating a drug trafficking organization led by defendants David Jesus Pagan and Rafael Burgos, Jr. During the course of the investigation, it was determined that the defendants distributed multiple kilograms of cocaine throughout the Dunkirk area.
Search warrants were executed at six properties which resulted in the recovery of more than seven kilograms of cocaine and approximately $175,000 in cash as well as an AR-15 assault rifle with a 30 round magazine.
The indictments are the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Office, the New York State Police Community Enforcement Narcotics Team Western Region, under the direction of Lieutenant Kevin Reyes, the Buffalo Police Department, under the direction of Commissioner Daniel Derenda, the Dunkirk Police Department, under the direction of Chief David C. Ortolano, the Chautauqua County Sheriff’s Office, under the direction of Sheriff Joseph A. Gerace, the Cattaraugus County Sheriff’s Office, under the direction of Sheriff Timothy S. Whitcomb, and the Chautauqua County District Attorney’s Office, under the direction of David Foley. Additional assistance was provided by the Hamburg Police Department, Erie County Sheriff’s Office, Cheektowaga Police Department, Lackawanna Police Department, the Niagara Frontier Transportation Authority Transit Police, Niagara Falls Police Department, Niagara County Sheriff’s Office, Bureau of Indian Affairs, and United States Border Patrol.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
17 June 2015
York Men Sentenced for Long Prison Terms for International Drug TraffickingRead the Press Release
HARRISBURG- The United States Attorney’s Office for the Middle District of Pennsylvania announced that two York men were sentenced yesterday to federal prison for their involvement in the importation and distribution of cocaine and heroin into York County.
According to United States Attorney Peter Smith, Angel Mendez-Castro, age 27, of Puerto Rico and York, was sentenced to 15 years in prison. U.S. District Court Judge Yvette Kane stated during sentencing that he was a “violent “and “crafty kingpin” and that his drug distribution network had a substantial impact upon the York community.
Angel Mendez-Castro previously pleaded guilty to conspiracy to import and distribute over five kilograms of cocaine and heroin from 2010 to 2013. He also admitted to the use of threats of violence against witnesses and the use of firearms to protect the importation of the drugs from Puerto Rico.
Angel Mendez-Castro’s sentence is the culmination of a multi-year investigation by the Pennsylvania State Police and the York County Drug Task Force into the Latin King Street Gang in York. Hundreds of purchases of heroin, cocaine, and crack cocaine were made from over 100 individuals in York, resulting in the arrest of most of those individuals began on February 6, 2013. Thereafter, the United States Attorney’s Office indicted 15 individuals for leadership roles in the heroin and cocaine trafficking, including Angel Mendez-Castro.
Earlier yesterday, Judge Kane sentenced Angel’s brother, Christian Mendez-Castro, a/k/a “King Rampage,” age 22, of Puerto Rico and York to nine years in prison for his involvement in the enterprise. Christian Mendez-Castro entered a previous guilty plea to the drug trafficking conspiracy. On May 13, 2015, Judge Kane sentenced their cousin, Hector Castro Padro, age 29, of Puerto Rico and York. He received a sentence of six years and four months in prison for his drug activities, as well as for possession of a firearm in furtherance of drug trafficking.
As part of this larger investigation, the United States charged others affiliated with the distribution of heroin and cocaine in York. The other cases are as follows:
- William Ortiz, age 53, or York, entered a guilty plea to drug trafficking. On August 21, 2014, he was sentenced to 10 years in prison.
- Luis Angel Ortiz, a/k/a “C Lo,” age 31, of York, entered a guilty plea to drug trafficking. On April 15, 2014, he was sentenced to twelve (12) years and six (6) months in prison.
- Jose Cartegena, Jr., a/k/a “Warrior,” age 35, of York, entered a guilty plea to drug trafficking. On April 28, 2014, he was sentenced to five (5) years in prison.
- Marcus Garcia, a/k/a “King Paradise,” age 28, of York, entered a guilty plea to drug trafficking. On September 5, 2014, he was sentenced to six (6) years and five (5) months in prison.
- David Ramsey, a/k/a “King Knuckles,” age 32, of York, entered a guilty plea to drug trafficking. On December 9, 2014, he was sentenced to five (5) years in prison.
- Carlos Villalongo-Martinez, age 38 of York, entered a guilty plea to drug trafficking. On July 29, 2014, he was sentenced to two (2) years in prison.
- Brandon Jones, age 27, of York, entered a guilty plea to drug trafficking. On June 3, 2014, he was sentenced to six (6) years in prison.
- Antonio Navarro-Garcia, a/k/a “King Trigger,” age 22 of York, entered a guilty plea to drug trafficking. On November 25, 2014, he was sentenced to five (5) years in prison.
- Michael Enriquez, a/k/a “King Rage,” age 30, of Camden, New Jersey, entered a guilty plea to drug trafficking. On January 27, 2015, he was sentenced to ten (10) years in prison.
- Hector Rengifo, age 40, of York, entered a guilty plea to drug trafficking on August 4, 2014. He is awaiting sentencing.
- August Ranalli, age 31, of York, was convicted of drug trafficking and conspiracy after bench trial. His sentencing is scheduled for August 2015.
- Daniel Pacheco-Morales, age 41, of York, entered a guilty plea to drug trafficking. His sentencing is pending.
Prosecution is assigned to Assistant United States Attorney Michael A. Consiglio.
# # #
Volusia County Man Sentenced to More Than 16 Years for Production of Child PornographyRead the Press Release
Orlando, Florida – Chief U.S. District Judge Anne C. Conway has sentenced William A. Harvey (50, DeLand) to 16 years and 8 months in federal prison for production of child pornography. He was also ordered to serve a life term of supervision following his release from prison. Harvey pleaded guilty on March 31, 2015.
According to court documents, Harvey produced child pornography at his residence on May 5, 2014. His victim was a 16-year-old autistic girl. Harvey took several photographs of the victim engaged in sexually explicit conduct. The victim told someone about the incident the following day and law enforcement was contacted. Subsequently, a search warrant was executed, during which officers found a computer and an external hard drive in Harvey’s bedroom. A forensic examination of the equipment revealed 20 pornographic images of the victim. The victim had stated that Harvey had used a purple camera to take the photographs of her. That camera was also found during the execution of the search warrant.
This case was investigated by Federal Bureau of Investigation, the Seminole County Sheriff’s Office, and the DeLand Police Department. It was prosecuted by Assistant United States Attorney Roger B. Handberg.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Virginia Business Owner Charged with Wire Fraud for Stealing $809,205.43 from VictimsRead the Press Release
LOUISVILLE, Ky. – The owner of Patriot Computers, a Virginia corporation, was charged by grand jury indictment today with wire fraud for stealing $809,205.43 from multiple victims, announced Acting United States Attorney John E. Kuhn, Jr.
According to the four count indictment, from December 1, 2012, through April 14, 2014, Mark Allen Hartley, age 55, of Land O Lakes, Florida, devised a scheme to defraud First Citizens Bank of Hardin County, Kentucky, and its customers. At the time, Hartley operated a business called Spartan Group Inc., dba Patriot Computers. Patriot Computers sold computer equipment to its customers on installment sales contracts. Customers of Patriot Computers agreed to have specified amounts of money taken from their paychecks on a regular basis until their purchases were paid in full. These customers completed payment authorization forms for these payment arrangements, and then Patriot Computers submitted these forms to First Citizens Bank in Hardin County, Kentucky. First Citizens Bank, through its bill payment service, would then transfer the payments from each customer’s paycheck to Patriot Computers’ account at Wells Fargo Bank until the customer’s contract with Patriot Computers was paid in full.
As part of the scheme and artifice to defraud, Hartley created fraudulent payment authorization forms and transmitted those, by e-mail, to First Citizens Bank. This caused the bank to transfer unauthorized payments from victims’ paychecks to an account at Wells Fargo Bank, controlled by Hartley. These unauthorized payments totaled approximately $809,205.43.
If convicted at trial, Hartley could be sentenced to no more than 20 years in prison for each count, fined $250,000 for each count and sentenced to 3 years of supervised release.
This case is being prosecuted by Assistant United States Attorney Jason Snyder and is being investigated by the Federal Bureau of Investigation (FBI).
***
The indictment of a person by a Grand Jury is an accusation only and that person is presumed innocent until and unless proven guilty.
Utah Man Sentenced to Prison for Soliciting Gifts and Property Under False PretensesRead the Press Release
ALBUQUERQUE – Michael Vernon Rupert, 44, of Cedar City, Utah, was sentenced this morning in federal court in Las Cruces, N.M., to a year and a day in prison for soliciting gifts and property under false pretenses. Rupert will be on supervised release for three years after completing his prison sentence. He also was ordered to pay $6,884.63 in restitution to the victims of his crimes.
Rupert, a former U.S. Army Sergeant was arrested on a criminal complaint in Utah on Oct. 11, 2013, and was transferred to Las Cruces federal court to answer the charges on Nov. 12, 2013. According to the criminal complaint, Homeland Securities Investigations (HSI) initiated an investigation into Rupert in Nov. 2012, after receiving information that Rupert was soliciting military and law enforcement type clothing and shooting gear from manufacturers by falsely claiming to be a U.S. Army Command Sergeant Major stationed at White Sands Missile Base. During the solicitations, Rupert claimed the goods would be used for testing and evaluation by the U.S. Army and implied that the Army would purchase large quantities of the manufacturers’ products depending on testing and evaluation, and his recommendation. HSI’s investigation revealed that Rupert solicited merchandise valued at approximately $35,000.00 from 37 manufacturers and distributors between July 2012 and May 2013. Although Rupert relocated from Hondo, N.M., to Alton, Utah, in Oct. 2012, he unlawfully solicited approximately $32,000.00 of merchandise before moving to Utah.
The criminal complaint further alleges that Rupert continued his unlawful solicitation scheme when he moved to Utah, and that an investigation by Utah state authorities led to the discovery of three more manufacturers and distributors from whom Rupert unlawfully solicited merchandise. In Oct. 2013, Utah authorities searched a trailer Rupert was towing as he was in the process of moving to Missouri and found merchandise sent to him by a number of the manufacturers who had responded to Rupert’s solicitations.
On Jan. 15, 2014, Rupert was indicted on three counts of unlawful solicitation and use of gifts. According to the indictment in July 2012, Rupert solicited gifts and property from three companies by falsely claiming that they were for use by the U.S. Army. At the time of the offenses charged in the indictment, Rupert was residing in Hondo.
On Feb. 21, 2014, Rupert pled guilty to the indictment without the benefit of a plea agreement.
This case was investigated by the Las Cruces office of HSI with assistance from the Kane County (Utah) Sheriff’s Department, and was prosecuted by Assistant U.S. Attorney Edwin Garreth Winstead, III, of the U.S. Attorney’s Las Cruces Branch Office.
United States Returns Stolen Antique Books to the National Library of SwedenRead the Press Release
Richard Zabel, the Deputy United States Attorney for the Southern District of New York, and Diego Rodriguez, Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the return of two antique books that were stolen from the National Library of Sweden in the 1990s.
Deputy U.S. Attorney Richard Zabel said: “For hundreds of years, the National Library of Sweden’s collection of books, maps, and manuscripts was treasured by the kings and queens of Sweden. In many ways, the Library contains the cultural memory of Sweden. The theft of pieces of a nation’s memory and heritage creates holes in its intellectual soul. There is no repair for such holes without the recovery of what was taken. I’m proud that this Office has been at the forefront of recovering what has been taken from many different nations’ cultural histories, including Sweden today.”
FBI Assistant Director-in-Charge Diego Rodriguez said: “We are honored to be part of reparation ceremonies, like the one we are holding here today, because we are able to return a piece of missing history to a country. The books returned today are a significant part of Sweden’s history. The FBI will continue to work with our law enforcement partners to investigate and hopefully return stolen artifacts and cultural items to their home countries.”
The two books being returned are part of a group of at least 56 rare or one-of-a-kind books that were stolen from the National Library of Sweden’s collection by Anders Burius (“Burius”), a former employee of the Library, between 1995 and 2004. After stealing the books, Burius consigned or sold the books to Ketterer Kunst (“Ketterer”), an auction house in Germany. In 2004, Burius confessed to the book thefts and admitted to Swedish law enforcement officials that he had sold and/or consigned the books to Ketterer under the alias “Carl/Karl Fields.” Shortly after confessing to the thefts, Burius committed suicide. Swedish authorities subsequently received information that 13 of the stolen books had been sold by Ketterer to individuals and/or entities in the United States.
The books being returned today are a Christopher Scheiner book entitled “Oculus, hoc est: fundamentum opticum, in quo ex accurate oculi anatome, abstrusarum experientiarum sedula pervestigatione,” printed in 1619 by Danielem Agricolam Oeniponti (the “Scheiner book”), and a Nicolo Sabbattini book entitled “Practica di fabricar scene, e machine ne’teatri. Ristampata di nouo coll’ Aggiunta del secondo libro,” printed in 1638 by Battista Giouannelli Pietro de’Paoli e Gio (the “Sabbatini book”). The Scheiner book, which is a famous work in the history of optics, was purchased on May 28, 1999, by bookseller Jonathan A. Hill, who had no knowledge of the book’s theft. Mr. Hill subsequently sold the Scheiner book to Cornell University, which also had no knowledge of the book’s theft, and which, after being contacted by the FBI about the theft, voluntarily agreed to return the book to the Library. The Sabbatini book, an important work concerning stagecraft and theater machinery, was purchased on November 19, 2001, by Richard Lan, a gallery owner in New York. Lan had no knowledge of the Sabbatini book’s theft and, after being contacted by the FBI about the theft, voluntarily agreed to return the book to the Library.
The United States Attorney’s Office for the Southern District of New York entered into stipulations with Cornell University and the gallery owner, in which both Cornell University and Lan consented to tender their respective books to the FBI, to allow for the return of these books to the National Library of Sweden. The stipulations were so ordered by the United States District Court on June 1, 2015. The Scheiner book and the Sabbatini book were returned to representatives of the National Library of Sweden earlier today at a repatriation ceremony held at the United States Attorney’s Office in New York.
A list of missing books stolen from the National Library of Sweden between 1995 and 2004 can be found here.
Mr. Zabel praised the investigative work of the FBI in this matter, and its ongoing efforts to find and repatriate stolen property.
This matter is being handled by the Office’s Money Laundering and Asset Forfeiture Unit. Assistant U.S. Attorneys Christine I. Magdo and Sarah E. Paul are in charge of the case.
United States Repatriates Seven Boa Constrictors to BrazilRead the Press Release
Seven boa constrictors seized in connection with an illegal wildlife smuggling scheme have been returned to the government of Brazil, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney John W. Huber of the District of Utah.
“This case exhibited many of the hallmarks that make illegal wildlife trafficking a growing international scourge, including actors motivated by greed who illegally smuggled rare and precious wildlife across international boundaries,” said Assistant Attorney General Caldwell. “The return of the precious snakes to Brazil brings to an end this years-long international saga, and serves as an example of our commitment to working with law enforcement partners in Brazil and elsewhere to combat transnational crime.”
“The successful prosecution of Mr. Stone and the recovery and repatriation of the offspring from this rare and valuable leucistic boa constrictor are due to the exceptional cooperation between the United States and Brazilian authorities,” said U.S. Attorney Huber. “The illegal wildlife trade threatens the survival of many threatened and endangered species and Mr. Stone’s conviction in this case demonstrates our resolve to prosecute those who engage in such activities.”
The seven boa constrictors are the offspring of a rare and extremely valuable white (leucistic) boa constrictor known as “Lucy” or “Diamond Princess” that was found in the Niterói district of Rio de Janerio in 2006. Because of its rarity, Brazilian authorities housed the white boa at the Niterói Zoo, a private foundation that rescued and rehabilitated injured wild animals. In January 2009, Jeremy Stone, a Utah-based collector, breeder and seller of reptiles, traveled to Brazil, secured possession of the snake and unlawfully returned with it back to the United States.
After learning that Stone was marketing snakes bred from a rare white boa, the Brazilian government requested assistance from the United States in securing the return of the leucistic boa and any offspring. Thereafter, pursuant to a mutual legal assistance treaty, federal investigators obtained a warrant authorizing the seizure of the snake and any offspring from Stone’s property in Utah. In executing the warrant, agents from the FBI learned that the leucistic boa constrictor had died. Agents turned the offspring over to the U.S. Marshals Service, which delivered the eight surviving offspring to the Hogle Zoo in Salt Lake City. One of the snakes died shortly thereafter.
In July 2014, Stone pleaded guilty plea to unlawfully transporting wildlife into the United States. As part of his plea agreement, Stone agreed to forfeit the boa’s offspring to the United States.
In October 2014, the government of Brazil filed a petition asserting its ownership of the white boa and its offspring because it had been caught in the Brazilian wild. Thereafter, the United States asked the court to amend the preliminary order of forfeiture to recognize Brazil’s claim to the snakes. In February 2015, the court entered a final order of forfeiture awarding the white boa’s seven surviving offspring to the government of Brazil.
The Criminal Division’s Asset Forfeiture and Money Laundering Section and Office of International Affairs, as well as the U.S. Attorney’s Office of the District of Utah and the FBI, worked jointly with the government of Brazil to secure the repatriation of the seven offspring.
United States Repatriates Seven Boa Constrictors to BrazilRead the Press Release
WASHINGTON – Seven boa constrictors seized in connection with an illegal wildlife smuggling scheme have been returned to the government of Brazil, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney John W. Huber of the District of Utah.
“This case exhibited many of the hallmarks that make illegal wildlife trafficking a growing international scourge, including actors motivated by greed who illegally smuggled rare and precious wildlife across international boundaries,” said Assistant Attorney General Caldwell. “The return of the precious snakes to Brazil brings to an end this years-long international saga, and serves as an example of our commitment to working with law enforcement partners in Brazil and elsewhere to combat transnational crime.”
“The successful prosecution of Mr. Stone and the recovery and repatriation of the offspring from this rare and valuable leucistic boa constrictor are due to the exceptional cooperation between the United States and Brazilian authorities,” said U.S. Attorney Huber. “The illegal wildlife trade threatens the survival of many threatened and endangered species and Mr. Stone’s conviction in this case demonstrates our resolve to prosecute those who engage in such activities.”
The seven boa constrictors are the offspring of a rare and extremely valuable white (leucistic) boa constrictor known as “Lucy” or “Diamond Princess” that was found in the Niterói district of Rio de Janerio in 2006. Because of its rarity, Brazilian authorities housed the white boa at the Niterói Zoo, a private foundation that rescued and rehabilitated injured wild animals. In January 2009, Jeremy Stone, a Utah-based collector, breeder and seller of reptiles, traveled to Brazil, secured possession of the snake and unlawfully returned with it back to the United States.
After learning that Stone was marketing snakes bred from a rare white boa, the Brazilian government requested assistance from the United States in securing the return of the leucistic boa and any offspring. Thereafter, pursuant to a mutual legal assistance treaty, federal investigators obtained a warrant authorizing the seizure of the snake and any offspring from Stone’s property in Utah. In executing the warrant, agents from the FBI learned that the leucistic boa constrictor had died. Agents turned the offspring over to the U.S. Marshals Service, which delivered the eight surviving offspring to the Hogle Zoo in Salt Lake City. One of the snakes died shortly thereafter.
In July 2014, Stone pleaded guilty plea to unlawfully transporting wildlife into the United States. As part of his plea agreement, Stone agreed to forfeit the boa’s offspring to the United States.
In October 2014, the government of Brazil filed a petition asserting its ownership of the white boa and its offspring because it had been caught in the Brazilian wild. Thereafter, the United States asked the court to amend the preliminary order of forfeiture to recognize Brazil’s claim to the snakes. In February 2015, the court entered a final order of forfeiture awarding the white boa’s seven surviving offspring to the government of Brazil.
The Criminal Division’s Asset Forfeiture and Money Laundering Section and Office of International Affairs, as well as the U.S. Attorney’s Office of the District of Utah and the FBI, worked jointly with the government of Brazil to secure the repatriation of the seven offspring.
United States Files Suit against Spectrum Brands for Failing to Report Safety Hazard in Defective CoffeemakersRead the Press Release
Dozens of Burns Reported When Coffee Pot Handle Repeatedly Broke
The Department of Justice and the Consumer Product Safety Commission (CPSC) jointly announced today the filing of a complaint against Spectrum Brands Inc., alleging that the company and its former subsidiary, Applica Consumer Products, failed to timely report a hazardous defect involving handles that detached from Black & Decker brand SpaceMaker coffee pots.
Spectrum Brands is a Delaware corporation headquartered in Middleton, Wisconsin, that distributes a wide variety of brand-name small appliances, hardware, and home and garden products. Applica Consumer Products was the Florida company that imported and distributed the coffeemaker. Applica became a subsidiary of Spectrum in 2010, and the two companies merged in 2014.
The complaint, filed in U.S. District Court for the Western District of Wisconsin, charges that the companies knowingly violated the reporting requirements of the Consumer Product Safety Act with respect to defective carafe handles that could detach and cause hot coffee to pour onto consumers. As set forth in the complaint, the coffeemakers generated hundreds of complaints from consumers over more than three years before Applica finally notified the CPSC of the carafe defect and recalled the product. Dozens of consumers contacted the company to report burns related to the handle suddenly detaching. The complaint, filed by the Department of Justice on behalf of the CPSC, seeks civil penalties and permanent injunctive relief.
The government also alleges that, in addition to failing to notify the CPSC of the defect “immediately” as required by law, the companies continued to distribute a small number of the defective coffeemakers to retailers even after the recall was announced.
“Hundreds of consumers complained to the company about this dangerous defect over the years,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer of the Justice Department’s Civil Division. “We rely on companies to report these safety issues immediately, as the law requires, to prevent unnecessary injuries. The Department of Justice will continue to protect the public against companies that put profits over safety.”
“We believe Spectrum Brands and Applica Consumer Products knew about the hazard with these coffeemakers for years,” said CPSC Chairman Elliot F. Kaye. “Despite the fact that these firms were required to report potential hazards and risks to CPSC immediately, it appears they chose to profit from continued sales instead. Their failure to follow the law and report, resulted in dozens of injuries to unsuspecting customers.”
The companies distributed the coffeemakers from 2008 to 2012. The complaint alleges that beginning as early as 2009 and continuing until April 2012, the companies received approximately 1,600 consumer complaints about defective carafe handles. The coffeemakers were recalled in June 2012.
The matter is being handled by the Civil Division’s Consumer Protection Branch and the CPSC’s Office of the General Counsel.
The claims made in the complaint are allegations only, and there has been no determination of liability.
United States Attorney Wigginton Announces Press EventRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that there will be a press event held tomorrow, Thursday, June 18, 2015, at 1:00 PM at the Office of the United States Attorney for the Southern District of Illinois, located at Nine Executive Drive, Fairview Heights, IL, 62208-1344, concerning the announcement of a Health Care Fraud Investigation and resultant Charges. This press conference will follow a press conference in Washington, DC at 11:00 AM Eastern hosted by the Attorney General and the Secretary of Health and Human Services to announce a major crackdown on health care fraud in sixteen districts, including the Southern District of Illinois.
Media are advised to have press credentials and to arrive in sufficient time to allow for security screening prior to the event.
Uniontown Man Sentenced to 3 Years in Prison for Possessing Sexual Images of ChildrenRead the Press Release
PITTSBURGH - A resident of Fayette County, Pennsylvania, has been sentenced in federal court to 36 months imprisonment, followed by eight years supervised release, on his conviction of possession of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.
United States District Judge Maurice B. Cohill imposed the sentence on Jeremy S. Burnworth, 36, of Uniontown, Pennsylvania.
According to information presented to the court, on or about June 2, 2014, Burnworth knowingly possessed images in digital files, the production of which involved the use of minors engaging in sexually explicit conduct, some of whom had not yet attained 12 years of age.
Assistant United States Attorney Jessica Lieber Smolar prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation, the Reserve Township Police Department, and the Pennsylvania Office of Attorney General for conducting the investigation that led to the successful prosecution of Burnworth.
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.
U.S. Attorney's Office indicts two cases where women were working with a male to sexually exploit childrenRead the Press Release
DENVER – The U.S. Attorney’s Office has obtained federal grand jury indictments in two separate unrelated cases where a woman, working with a male, sexually exploited a child, captured the abuse on camera or transmitted it live via the internet, thus producing child pornography. One case was investigated by the FBI, and the other case was investigated by the Colorado Springs Police Department’s Internet Crimes Against Children (ICAC) Task Force and U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI).
On June 15, 2015, Mr. Matthew Scott Holt, age 34 and Ms. Jordain Larsen, age 26, of Westminster, were advised in court on charges contained in an Indictment that a federal grand jury returned on June 9, 2015. Four of the counts charged Holt and Larsen together with production, and aiding and abetting one another’s production, of child pornography. Seventeen of the remaining counts charged either Holt and Larsen with production of child pornography. The last count charges Holt with distribution of child pornography. Prior to the indictment, both defendants had been arrested for child pornography production offenses based on charges filed in Criminal Complaints. Both defendants were also ordered to be held without bond pending a resolution of their cases.
According to court documents, the Larimer County Sheriff’s Office initiated the investigation after downloading child pornography from a residence in Westminster, Colorado. After the Larimer County Sheriff’s Office referred the case to the Westminster Police Department, WPD continued the investigation, including obtaining and executing a state search warrant. Shortly after the execution of that warrant, WPD found pornographic images of Holt with a child under the age of three and it also found child pornographic images of a second child under the age of 12. WPD then requested the assistance of the FBI. On May 14, 2015, Holt was located in Fort Collins in a shopping center parking lot where he was living out of his car, and he was arrested on a federal Criminal Complaint. As detailed in that Complaint, FBI’s review of Holt’s computers revealed multiple child pornographic images of Ms. Larsen engaged in sexual conduct with the same child under the age of three who was depicted in child pornographic images with Holt. Ms. Larsen was arrested on a federal Criminal Complaint shortly thereafter. Holt and Larsen have appeared before a U.S. Magistrate Judge, where they have been advised of their rights and the charges pending against them.
In a second case, on May 6, 2015, a federal grand jury returned an Indictment charging both Mr. Brandon Tyler Hill, age 29, of Colorado Springs, and Ms. Rhiannon Carnahan, age 29, of Woodland Park, Colorado, charging both with counts of production, and aiding and abetting one another’s production, of child pornography and transportation, and aiding and abetting one another’s transportation, of child pornography. Prior to the indictment, Mr. Hill and Ms. Carnahan were charged via Criminal Complaints. Both defendants are detained without bond pending a resolution of their cases. Hill and Carnahan have appeared before a U.S. Magistrate Judge, where they have been advised of their rights and the charges pending against them.
If convicted on the child pornography production counts, Ms. Larsen, Mr. Holt, Mr. Hill and Ms. Carnahan each face not less than 15 years, and not more than 30 years in federal prison, and up to a $250,000 fine, for each count. Holt, Hill and Carnahan each also faces not less than 5 years, and not more than 20 years in federal prison, and up to a $250,000 fine if convicted of distribution or transportation of child pornography.
The Holt and Larsen case was investigated by the Federal Bureau of Investigation (FBI), the Westminster Police Department and the Larimer County Sheriff’s Office. The Hill and Carnahan case was investigated by the Colorado Springs Police Department and U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), with support provided by the Woodland Park Police Department.
Holt and Larsen are being prosecuted by Assistant U.S. Attorney Judith Smith, Chief of the Special Prosecutions Section of the U.S. Attorney’s Office Criminal Division, and Hill and Carnahan are being prosecuted by Assistant U.S. Attorney Alecia Riewerts, Project Safe Childhood Coordinator.
The charges contained in the indictments are allegations, and the defendants are presumed innocent unless and until proven guilty.
U.S. Attorney's Office Initiative Reviews Disability Access at Metro Atlanta CourthousesRead the Press Release
ATLANTA - The United States Attorney’s Office for the Northern District of Georgia has initiated a review of local courthouses in the Northern District of Georgia to determine if they are in compliance with the Americans With Disabilities Act of 1990 (the “ADA”). This initiative is being conducted in accordance with the federal government’s congressionally-mandated responsibility to review compliance with the ADA.
“Access to local courthouses is a fundamental part of our society that everyone in our district is entitled to enjoy,” said John A. Horn, Acting U.S. Attorney for the Northern District of Georgia. “We are hopeful that our local courthouses will partner with us on this very important initiative to ensure that they are in full compliance with the law.”
As part of the review, nine local courthouses are being asked to complete and return a survey form. Once the survey forms are completed, investigators may follow up with on-site inspections to confirm survey responses and to evaluate compliance with the ADA regulations. The U.S. Attorney’s office hopes to work cooperatively with local courthouses that are found to be non-compliant. The goal is to ensure that government facilities, services, and programs are accessible to persons with disabilities.
The courthouses under review are in DeKalb, Fayette, Floyd, Fulton, Gwinnett, Hall, Rockdale, Spalding, and Troup counties. Any member of the public who wishes to file a complaint alleging that a courthouse or any other place of public accommodation with the Northern District of Georgia is not accessible to people with disabilities may contact the U.S. Attorney’s Office by phone at 404-581-4626 or email at [email protected].
Additional information about the ADA can be found at www.ada.gov, or by calling the toll-free information line at the Civil Rights Division of the Justice Department at (800)514-0301 (voice) and (800)514-0383(TTY).
Assistant United States Attorney Aileen Bell Hughes is representing the United States for the Northern District of Georgia in this matter.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao-ndga.Two U.S. Bureau of Prisons Corrections Officers Charged with Assaulting Prison Inmate and Obstructing JusticeRead the Press Release
Vanita Gupta, head of the Civil Rights Division, and U.S. Attorney A. Lee Bentley III of the Middle District of Florida announced today the indictment by a federal grand jury of U.S. Bureau of Prison (BOP) Correction Officers (COs) William Houghton and Eddie Rodas-Castro.
The indictment charges CO Houghton with violating the civil rights of an inmate inside the Coleman Correctional Facility in Coleman, Florida, on March 22, 2014, by striking the inmate repeatedly in the head and face, causing him injury. The indictment also charges CO Houghton and CO Rodas-Castro with obstruction of justice by falsifying BOP reports and making false statements to federal investigators regarding the assault.
This case is being investigated by the FBI and the U.S. Department of Justice’s Office of Inspector General, and is being prosecuted by Trial Attorney Roy Conn of the Civil Right Division and Assistant U.S. Attorney Robert Bodnar of the Middle District of Florida.
An indictment is merely an accusation and the defendants are presumed innocent unless proven guilty.
Two U.S. Bureau of Prisons Corrections Officers Charged with Assaulting Prison Inmate and Obstructing JusticeRead the Press Release
Ocala, FL – U.S. Attorney A. Lee Bentley III and Vanita Gupta, head of the Civil Rights Division announced today the indictment by a federal grand jury of U.S. Bureau of Prison (BOP) Correction Officers (COs) William Houghton and Eddie Rodas-Castro.
The indictment charges CO Houghton with violating the civil rights of an inmate inside the Coleman Correctional Facility in Coleman, Florida, on March 22, 2014, by striking the inmate repeatedly in the head and face, causing him injury. The indictment also charges CO Houghton and CO Rodas-Castro with obstruction of justice by falsifying BOP reports and making false statements to federal investigators regarding the assault.
This case is being investigated by the FBI and the U.S. Department of Justice’s Office of Inspector General, and is being prosecuted by Trial Attorney Roy Conn of the Civil Right Division and Assistant U.S. Attorney Robert Bodnar of the Middle District of Florida.
An indictment is merely an accusation and the defendants are presumed innocent unless proven guilty.
Three drug defendants appear in federal court in BeckleyRead the Press Release
Beckley, W.Va. – United States Attorney Booth Goodwin announced today that three drug dealers made appearance in federal court in Beckley today. Evelyn Ann Sizemore, 32, of Lewisburg, pled guilty to using a communication facility to facilitate a felony, admitting that on December 9, 2014, she used a telephone around Lewisburg to send a text message to arrange a drug deal. Shortly after the text message was sent, Sizemore sold heroin to a confidential informant working with law enforcement. Sizemore faces up to four years in prison and a $250,000 fine when she is sentenced on October 8, 2015.
Two additional drug defendants from Huntington, West Virginia were also sentenced today in Beckley federal court. Randolph Ingram, 55, was sentenced to four years in prison for using a communication facility to facilitate a felony, and Rachel Jade Corrigan, 26, was sentenced to three years of probation for aiding and abetting the distribution of heroin. Ingram and Corrigan pled guilty in February of 2015. Ingram admitted using a telephone to help arrange the sale of heroin in Lewisburg, and Corrigan admitted that after the Ingram sold the heroin, she concealed the money in her underwear to take it to Huntington.
The cases were investigated by the Greenbrier Valley Drug and Violent Crime Task Force under the Greenbrier Valley Heroin and Pill Inititative, a part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the sale of heroin and the illicit sale and misuse of prescription drugs and heroin in communities across the Southern District. Assistant United States Attorney John File prosecuted these cases.
Texas Man Sentenced for Stealing Nearly $1 Million from St. Joseph EmployerRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Weatherford, Texas man was sentenced in federal court today for a mail fraud scheme in which he embezzled nearly $1 million from Herzog Contracting Corporation in St. Joseph, Mo.
Daniel Reif, 49, of Weatherford, was sentenced by U.S. District Judge Beth Phillips to three years in federal prison without parole. The court also ordered Reif to pay $1,318,042 in restitution and forfeit to the government $105,000 seized from his TD Ameritrade account and a 2010 Tige boat and trailer. Reif made a $225,000 payment prior to today’s hearing as settlement of civil and criminal forfeiture.
On Jan. 22, 2015, Reif pleaded guilty to one count of mail fraud and one count of filing a false income tax return. Reif admitted that he engaged in a scheme to defraud Herzog from January 2006 through Aug. 26, 2011.
Herzog, which constructs railroads, highways, bridges, and airports, has a regional office in Irving, Texas. Reif began working for Herzog in the Irving office in August 2005. Reif was the manager of signals for Herzog and responsible for procuring materials and services from vendors in order to fulfill the needs of existing jobs; he was also responsible for oversight of the installation and performance of those services and materials. Reif was authorized to approve payments to vendors under his supervision and responsibility.
Reif founded his own company, Railway Signal Solutions, LLC (RSS), in February 2005. Reif began ordering project materials and services from supply vendors through RSS, then re-selling those products and services to Herzog at inflated prices. The RSS invoices made it appear as though the materials and services were being provided directly by RSS, an ostensibly independent supply vendor.
In the scheme, Reif established a fictitious character named “Gene Schmitt” who purportedly worked at RSS and communicated with Reif via e-mail. Over 100 emails between Reif and Reif, acting as Schmitt, were found by Herzog during the company’s internal investigation.
Reif, on behalf of RSS, paid the original, true vendors with a personal credit card or cashier’s check. Reif then, through RSS, invoiced Herzog for a higher price. The difference between the true price and Reif’s inflated price varied from 10 percent to over 100 percent. After RSS invoiced Herzog, Reif actually authorized payment of the inflated invoices himself.
Herzog reported that RSS invoiced $2,821,180.19, while the true cost of materials was $1,932,417, resulting in a difference of $888,762. Herzog paid Reif/RSS an additional $91,845 for products with no real customers identified, which establishes the total loss of $980,608. This loss figure is conservative, as it does not include $346,175 which Reif/RSS invoiced to Herzog but which could not be matched or estimated.
The plea agreement cites one instance of a $292,241 check from Herzog made payable to RSS that was mailed on March 10, 2010. The check was sent as payment for two invoices, one of which was sent by RSS to Herzog for a signal material package in the amount of $246,856. Reif, through his company RSS, had paid $152,686 for this same part, thus marking up the part by $94,170 and defrauding Herzog that same amount.
Reif also admitted that he filed a false federal income tax return for the year 2008. According to the plea agreement, Reif claimed $990,159 in business expenses, although $498,301 of his business expenses had already been reimbursed by Herzog, his employer. The return materially understated his taxable income, resulting in a tax loss to the government of $192,230.
According to court documents, Reif claimed substantially inflated and fraudulent expenses on federal income tax forms for travel and entertainment, depreciation, shipping and supplies. The total tax loss for tax years 2008 to 2011 is $337,434.
This case was prosecuted by Assistant U.S. Attorney Kathleen D. Mahoney. It was investigated by the FBI and IRS-Criminal Investigation.
Sterling Heights Man Sentenced for Sports BriberyRead the Press Release
A Sterling Heights man was sentenced to almost six years in federal prison today for sports bribery, fraud and unlawfully possessing a gun, U.S. Attorney Barbara L. McQuade announced today.
McQuade was joined in the announcement by Special Agent in Charge Paul M. Abbate, Federal Bureau of Investigation, Detroit Field Office, and Special Agent in Charge Anthony V. Mohatt, U.S. Department of Agriculture, Office of Inspector General.
U.S. District Judge Mark Goldsmith sentenced Ghazi Manni, 58, to 70 months in prison, three years of supervised release, and ordered him to pay restitution of $700,000 and to forfeit $700,000 to the government.
According to court records, between December 2005 and December 2006, Manni and codefendant Mitchell Karam, who is awaiting sentencing, paid money to a professional jockey to influence the results of races at Tampa Bay Downs in Tampa, Florida, and elsewhere. The indictment alleges that Manni and Karam then used the simulcast pari-mutuel wagering system to place bets on the fixed races. Manni pleaded guilty to paying University of Toledo athletes to affect the point spread of football and basketball games in 2005 and 2006. He also pleaded guilty to paying a jockey to fix horse races at a racetrack in Florida from 2004 to 2006. He also pleaded guilty to paying cash for food stamps at King Cole Foods in 2010 and 2011. Manni had been previously convicted by a jury of unlawfully possessing a gun and ammunition, and today was resentenced for those crimes as well.
Before imposing the sentence, Judge Goldsmith noted that Manni’s crimes all were the product of deliberation and spanned long periods. He also noted that Manni’s sports bribery crimes destroyed the careers of the athletes he had corrupted. Judge Goldsmith stated that the sentence was necessary to protect the public from further crimes by Manni.
“These bribery offenses were significant crimes not only because they affected fair play in the particular games and races involved, but also because they exploited young athletes and undermined public confidence in the sports themselves,” McQuade said.
The sports bribery cases were investigated by special agents of the Federal Bureau of Investigation. The food stamp fraud case was investigated by the United States Department of Agriculture, Office of Inspector General.