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17 June 2015
St. Louis man is sentenced to prison after traveling to Denver to have sex wtih mother and two minor daughtersRead the Press Release
DENVER – Darwin Gilbert Gowen, age 62, of St. Louis, Missouri, was sentenced yesterday by U.S. District Court Judge R. Brooke Jackson to serve 135 months (just over 11 years) in federal prison, followed by 10 years on supervised release for travel with intent to engage in illicit sexual conduct, the U.S. Attorney’s Office and U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) announced. Gowen, who appeared at the sentencing hearing in custody, was remanded at its conclusion.
Gowen was first charged by Criminal Complaint on June 20, 2014. He was indicted by a federal grand jury in Denver on July 2, 2014. He pled guilty before Judge Jackson on March 31, 2015. He was sentenced on June 16, 2015.
According to court documents, Gowen was arrested by HSI agents at Denver International Airport (DIA) after he traveled with intent to have sex with two minor children. Specifically, the investigation began when an HSI special agent based in Greeley, Colorado, who was working in an undercover capacity as a 37-year-old single mother of two minor daughters, ages 15 and 11, came into contact with Gowen. The special agent, acting in the undercover persona, communicated with the defendant who expressed an interest in having sex with the mother and both daughters.
During the conversations, which took place primarily via email and text, the defendant stated that he was “a 60 year old male, widowed . . . wanting to experience the wild side of life.” He also said he “adored chubby girls” . . . and was “looking for naughty daughters . . . who love to hook up with a kinky mom for mom daughter fun.” Further investigation revealed that the individual was the defendant, Gowen, of St. Louis, Missouri.
Gowen told the undercover agent that he was going to fly to Denver to see her and have sex with her and her daughters. HSI agents confirmed that the defendant had arranged to fly to Denver on June 19th. On that date, he flew from St. Louis to DIA. Gowen met a female HSI agent, who purported to be the mother of the two minor children, at the DIA baggage claim. After the two discussed that he flew to Denver for the express purpose of having sex with the two minor children, he was arrested.
This case was investigate by U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI). The Denver Police Department and the Colorado State Patrol assisted with the arrest at DIA.
Gowen was prosecuted by Assistant U.S. Attorney Alecia Riewerts, the Project Safe Childhood Coordinator for the District of Colorado.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
St. John the Baptist Parish Man Sentenced for Conspiracy to Commit Wire Fraud in Aftermath of BP Oil SpillRead the Press Release
U.S. Attorney Kenneth A. Polite announced that CHARLIE ENGLISH III, age 33, a resident of LaPlace, was sentenced today for his role in a conspiracy to defraud the Gulf Coast Claims Facility (GCCF) in the aftermath of the Deepwater Horizon oil spill.
U.S. District Judge Helen G. Berrigan sentenced ENGLISH to a term of three years probation. ENGLISH was also ordered to pay restitution in the amount of $257,400 to the GCCF.
The GCCF made disaster assistance money available to individuals and businesses affected by the oil spill resulting from the Deepwater Horizon explosion. The GCCF required individuals to verify loss of income. ENGLISH worked as a claims adjuster for the GCCF. Beginning in or about September 2010, ENGLISH, provided fraudulent documentation to his co-conspirators who posed as claimants, and submitted and/or caused to be submitted, via the internet, false claims for loss earnings representing that the claimants were employed in a commercial fishing business before the oil spill when in fact the claimants did not work in the commercial fishing industry. ENGLISH was to share in the claim proceeds in exchange for his assistance with the claims. Based on the fraudulent documentation, the GCCF issued approximately $257,400 to undeserving individuals.
This case was brought as part of this District’s partnership with the National Center for Disaster Fraud (“NCDF”), a nationwide initiative to protect available funds and assistance for those victims of both natural and man-made disasters such as hurricanes, floods, tornadoes and the recent Gulf oil spill. If you have knowledge of fraud, waste, abuse or allegations of mismanagement involving disaster relief operations, you can contact the NCDF by either calling the hotline at (866) 720-5721, faxing (225) 334-4707, emailing at [email protected], or in writing to National Center for Disaster Fraud, Baton Rouge, LA 70821-4909.
U.S. Attorney Polite praised the work of the U.S. Postal Inspection Service and the U.S. Secret Service in investigating this matter. Assistant U.S. Attorney Julia K. Evans was in charge of the prosecution.
Sioux City Man Who Discharged a Firearm While Carjacking a Family Sent to Federal PrisonRead the Press Release
A man, who assaulted his girlfriend and during the assault pointed a gun at her face and threatened to kill her, was sentenced June 16, 2015, to 13 years in federal prison.
Angel Gomez, age 23, from Sioux City, received the prison term after a February 2, 2015, guilty plea to discharging a firearm in furtherance of a crime of violence.
At his plea hearing and sentencing, the United States produced evidence showing on August 23, 2014, Angel Gomez possessed, brandished and fired a warning shot from the handgun in furtherance of a carjacking. The victims of his carjacking were a family, including a child, who was visiting the War Eagle Monument in Sioux City, Iowa. The evidence also revealed Gomez undertook the carjacking as part of another criminal plot.
At the time of the carjacking he had already physically assaulted, threatened, and abducted his paramour when she attempted to end her intimate relationship with him. Gomez even fired a warning shot from the handgun during the abduction to overcome her refusal to get into his car and to scare off another person attempting to aid her. The possession of the firearm in furtherance of the carjacking was part of Gomez’s plan to escape with her girlfriend.
Gomez was sentenced in Sioux City by United States District Court Judge Mark W. Bennett. Gomez was sentenced to 156 months’ imprisonment. A special assessment of $100 was imposed, and he was ordered to make $165 in restitution to one of the crime victims. He must also serve a 5-year term of supervised release after the prison term. There is no parole in the federal system.
Gomez is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted as part of Project Safe Neighborhoods, a cooperative local, state, and federal program aimed at the enhanced prosecution of gun crimes. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Sioux City Police Department, the Iowa Department of Transportation, and the Woodbury County Attorney’s Office. The case was prosecuted by Assistant United States Attorney Forde Fairchild.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 14-4085.
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Shipping Company Fined $750,000 for Environmental CrimesRead the Press Release
CAMDEN, N.J. – Norbulk Shipping UK LTD, a company based in Glasgow, United Kingdom, and operator of the vessel M/V Murcia Carrier, pleaded guilty today to failing to maintain an accurate oil record book and providing false statements to the U.S. Coast Guard concerning the vessel’s garbage record book, New Jersey U.S. Attorney Paul J. Fishman and the U.S. Department of Justice Environment and Natural Resources Division announced.
Immediately following the guilty plea in Camden federal court, the company was sentenced by U.S. District Judge Joseph H. Rodriguez to pay a criminal penalty of $750,000 and placed on probation for three years.
“Illegal discharges at sea damage our environment and endanger those who work in and enjoy our coastal waters,” U.S. Attorney Fishman said. “As we have shown before, shipping companies that engage in these criminal practices and deliberately discharge oil – and then lie about it to the Coast Guard – will be prosecuted.”
“Our oceans are life giving and life sustaining resources that our country and our world depend upon,” Assistant Attorney General John C. Cruden for the Environment and Natural Resources Division, said. “Ignoring perfectly legal and feasible ways to dispose of waste, the defendants chose instead to dump directly into the ocean. Today the company will pay a price for this inexcusable and criminal act.”
“Marine environmental protection is one of the Coast Guard’s primary missions,” Capt. Benjamin Cooper, the Sector Commander at Coast Guard Sector Delaware Bay, said. “The Coast Guard takes marine pollution seriously and works cohesively with our partner agencies to hold those who violate international law accountable for their actions. We anticipate the results of this case will deter future brazen illegal oil discharges into the sea.”
According to documents filed in this case and statements made in court:
The Act to Prevent Pollution from Ships (APPS) requires vessels like the M/V Murcia Carrier to maintain an oil record book in which all transfers and disposals of oil-contaminated waste, including the discharge overboard of such waste, must be fully and accurately recorded. Vessels like the M/V Murcia Carrier also must maintain a garbage record book that fully and accurately records the discharge of all garbage into the sea from the vessel.
On April 27, 2014, crew members of the M/V Murcia Carrier, at the direction of Chief Mate Valerii Georgiev, dumped overboard several barrels containing hydraulic oil. While Norbulk and Georgiev dispute the number of barrels dumped into the sea, the government believes it was approximately 20 barrels. The dumping occurred in international waters off the coast of Florida while the vessel was in transit from Costa Rica to New Jersey. It was not recorded in either the ship’s oil record book or garbage record book, as required. In an effort to conceal the dumping, crewmembers presented a U.S. Coast Guard boarding team with a false oil record book and garbage record book when the vessel arrived in Gloucester, New Jersey.
On June 15, 2015, Georgiev pleaded guilty to failing to maintain an accurate oil record book in violation of APPS. He is scheduled to be sentenced July 8, 2015.
The case was investigated by U.S. Coast Guard Sector Delaware Bay and the U.S. Coast Guard Investigative Service. The government is represented by Assistant U.S. Attorneys Kathleen P. O’Leary and Matthew Smith of the U.S. Attorney’s Office, District of New Jersey, and Joel La Bissonniere of the Environmental Crimes Section of the Department of Justice.
Defense counsel:
Georgiev: Michael Twersky Esq., Philadelphia
Norbulk: George Kontakis Esq., New York
Shipping Company Fined $750,000 for Environmental CrimesRead the Press Release
Norbulk Shipping UK Ltd, a company based in Glasgow, United Kingdom, and operator of the M/V Murcia Carrier, pleaded guilty to failing to maintain an accurate oil record book in violation of the Act to Prevent Pollution from Ships (APPS) and providing false statements to the U.S. Coast Guard concerning the vessel’s garbage record book. The company was sentenced to pay a criminal penalty of $750,000 and placed on three years of probation by the Honorable Joseph H. Rodriguez, the Department of Justice Environment and Natural Resources Division and the U.S Attorney’s Office for the District of New Jersey announced today.
“Our oceans are life giving and life sustaining resources that our country and our world depend upon,” said Assistant Attorney General John C. Cruden for the Environment and Natural Resources Division. “Ignoring perfectly legal and feasible ways to dispose of waste, the defendants chose instead to dump directly into the ocean. Today the company will pay a price for this inexcusable and criminal act.”
“Illegal discharges at sea damage our environment and endanger those who work in and enjoy our coastal waters,” said U.S. Attorney Paul J. Fishman for the District of New Jersey. “As we have shown before, shipping companies that engage in these criminal practices and deliberately discharge oil – and then lie about it to the Coast Guard – will be prosecuted.”
APPS requires vessels like the M/V Murcia Carrier to maintain a record known as an oil record book in which all transfers and disposals of oil-contaminated waste, including the discharge overboard of such waste, must be fully and accurately recorded. Additionally, vessels like the M/V Murcia Carrier must maintain a record known as garbage record book that fully and accurately records the discharge of all garbage into the sea from the vessel.
On April 27, 2014, crew members on board the M/V Murcia Carrier dumped overboard several barrels containing hydraulic oil, at the direction of the vessel’s Chief Mate Valerii Georgiev. While Norbulk and Georgiev dispute the number of barrels dumped into the sea, the government believes that approximately 20 barrels were dumped overboard. The dumping occurred in international waters off the coast of Florida while the vessel was in transit from Costa Rica to New Jersey. The dumping was not recorded in either the ship’s oil record book or garbage record book as required. In an effort to conceal the dumping, crewmembers presented a U.S. Coast Guard boarding team with a false oil record book and garbage record book when the vessel arrived in Gloucester, New Jersey.
On June 15, 2015, Georgiev also pleaded guilty to failing to maintain an accurate oil record book in violation of APPS. He is scheduled to be sentenced at a future date.
“Marine environmental protection is one of the Coast Guard's primary missions,” said Captain Benjamin Cooper, the Sector Commander at Coast Guard Sector Delaware Bay. “The Coast Guard takes marine pollution seriously and works cohesively with our partner agencies to hold those who violate international law accountable for their actions. We anticipate the results of this case will deter future brazen illegal oil discharges into the sea.”
The case was investigated by U.S. Coast Guard Sector Delaware Bay and the U.S. Coast Guard Investigative Service. The case was prosecuted by Joel La Bissonniere of the Environmental Crimes Section of the Department of Justice and Assistant U.S. Attorneys Kathleen P. O’Leary and Matthew Smith of the U.S. Attorney’s Office for the District of New Jersey.
Second of Two Men Sentenced in Bank Robbery in Twin FallsRead the Press Release
BOISE - Juan Loredo, 22, of Salinas, California, was sentenced today to 155 months in prison followed by five years of supervised release for bank robbery by use of dangerous weapons, and brandishing of firearms during the commission of a felony offense, U.S. Attorney Wendy J. Olson announced. U.S. District Judge Edward J. Lodge also ordered forfeiture of the three firearms involved in the bank robbery. Loredo pleaded guilty on March 24, 2015.
According to court documents, on November 20, 2014, Loredo and his co-defendant Shawn Smith, 19, also of Salinas, California, robbed the First Federal Bank in Twin Falls, Idaho. As the men entered the bank, Loredo brandished a sawed-off shotgun, and Smith brandished a semi-automatic pistol at the tellers and manager. They stole $7,351, all of which was recovered by police when the men were arrested after a high-speed vehicle chase, and foot pursuit.
Smith was sentenced on June 9, 2015, to 119 months in prison.
“Those who use firearms to commit violent crimes, such as bank robberies, will be vigorously investigated and prosecuted,” said Olson. “Innocent people who simply go to work each day in commerce, or who go into our banks to transact their daily business, must not be put in fear for their lives.”
The men were apprehended by, and the case was investigated by, the Twin Falls Police Department. The Bureau of Alcohol, Tobacco and Firearms assisted in the investigation and prosecution of these offenses.
Second Man Arrested in Jett CaseRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Brandon Peralez, 29, of Rochester, NY, was arrested and charged by criminal complaint with unlawful importation of and conspiracy to import Alpha PVP, a Schedule I controlled substance and attempted possession of Alpha PVP with intent to distribute.
Assistant U.S. Attorney Jennifer M. Noto, who is handling the case, stated that according to the complaint, the defendant was arrested in connection with the seizure of two packages sent from China, each containing three kilograms of Alpha PVP. One of the packages was addressed to Jack Jett, at Jett’s residence in Hemlock, NY. Jett was arrested on May 27, 2015 after law enforcement executed a controlled delivery of the package to his residence. The complaint further states that Peralez was present at Jett’s residence when the package was delivered and actually signed for the package.
The second package was addressed to Peralez at his residence in Rochester.
The defendant made an initial appearance before U.S. District Court Judge Charles J. Siragusa and was released on bail.
The criminal complaint is the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Acting Special Agent in Charge J. Michael Kennedy, the United States Postal Inspection Service, under the direction of Shelly Binkowski, Inspector in Charge, Boston Division, the New York State Police, under the direction of Major Craig Hanesworth, the Hornell Police Department, under the direction of Chief TJ Murray, the Steuben County Sheriff’s Department, under the direction David V. Cole, and the Ontario County Sheriff’s Department, under the direction of Philip C. Povero.
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.Schuele Boys Gang Member Pleads Guilty to Drug ChargeRead 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 Fred Johnson, aka Macaroni, 22, of Buffalo, NY, pleaded guilty to conspiracy to distribute cocaine before U.S. District Judge Richard J. Arcara. The charge carries a maximum penalty of 20 years in prison and a $1,000,000 fine.Assistant U.S. Attorney George C. Burgasser, who is handling the case, stated that as a member of the Schuele Boys Gang, the defendant purchased cocaine from co-defendant Michael Robertson. Johnson then repackaged the cocaine into smaller amounts for re-sale in the Buffalo area.
On July 23, 2014, law enforcement officers executed a search warrant at the defendant’s Fisher Street residence and recovered a .22 caliber pistol.
The Schuele Boys Gang, which operated in the Schuele Street area of the East Side of Buffalo, is believed to be responsible for multiple acts of violence and the distribution of illegal narcotics including cocaine, crack cocaine and marijuana.
Johnson was arrested along with 15 other Schuele Boys Gang members and associates in July 2014. He is the sixth to be convicted. On March 24, 2015, an additional seven members and associates were indicted. Four other Schuele Boys members were indicted separately.
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.
The plea is the culmination of an investigation on the part of the FBI's Safe Streets Task Force which includes representatives of the Amherst Police Department; the Buffalo Police Department; U.S. Border Patrol, the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Cheektowaga Police Department; the Erie County Sheriff’s Department; the Hamburg Police Department; the Lancaster Police Department; the Niagara Frontier Transportation Authority Police; the New York State Department of Correctional Services; the New York State Police; and U.S. Immigration and Customs Enforcement, Homeland Security Investigations. Additional assistance was provided by the Drug Enforcement Administration; U.S. Customs and Border Protection, the United States Marshal Service, the Lackawanna Police Department, and the Niagara County Sheriff’s Department.
Sentencing is scheduled for October 5, 2015 at 12:30 p.m. before Judge Arcara.
Salesman Sentenced to 37 Months in Prison for Role in Bribes-For-Test-Referrals Scheme Involving New Jersey Clinical LabRead the Press Release
NEWARK, N.J. – A Monmouth County, New Jersey, man was sentenced today to 37 months in prison for his role in a long-running and elaborate scheme operated by Biodiagnostic Laboratory Services LLC (BLS), of Parsippany, New Jersey, its president and numerous associates, U.S. Attorney Paul J. Fishman announced.
Len Rubinstein, 44, of Holmdel, New Jersey, previously pleaded guilty before U.S. District Judge Stanley R. Chesler to an information charging him with one count of conspiracy to commit bribery and one count of money laundering. Judge Chesler imposed the sentence today in Newark federal court.
Including Rubinstein, 38 people – 26 of them doctors – have pleaded guilty in connection with the bribery scheme, which its organizers have admitted involved millions of dollars in bribes and resulted in more than $100 million in payments to BLS from Medicare and various private insurance companies. The investigation has so far recovered more than $11 million to date through forfeiture.
According to documents filed in this and other cases and statements made in court:
From May 2012 through April 2013, Rubinstein agreed with BLS president David Nicoll, 41, of Mountain Lakes, New Jersey, his brother, Scott Nicoll, 34, of Wayne, New Jersey, and others to pay doctors to refer patients to BLS for testing of blood specimens. Rubinstein paid cash bribes to doctors as part of the conspiracy. Rubinstein admitted he used Delta Consulting Group LLC – an entity he controlled – to hide the money he received from BLS and used to make bribe payments to doctors.
In addition to the prison term, Judge Chesler ordered Rubinstein to serve one year of supervised release, pay a $10,000 fine, and forfeit $250,000.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel; the U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Scott J. Lampert; IRS–Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen; and inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates, with the ongoing investigation.
The government is represented by Senior Litigation Counsel Andrew Leven; Assistant U.S. Attorney Joseph N. Minish; Jacob T. Elberg, Chief of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark; and Assistant U.S. Attorney Barbara Ward, Chief of the office’s Asset Forfeiture and Money Laundering Unit.
U.S. Attorney Paul J. Fishman reorganized the health care fraud practice at the New Jersey U.S. Attorney’s Office shortly after taking office, including creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered more than $635 million in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act and other statutes.
Defense counsel: Charles Uliano Esq., West Long Branch, New Jersey
Rochester Man Pleads Guilty Drug Trafficking and Gun Possession ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Jose Guerra Caraballo, 43 of Rochester, NY, pleaded guilty before U.S. District Judge Frank P. Geraci to possession of cocaine with intent to distribute and possession of a firearm in the furtherance of a drug trafficking crime. The charges carry a mandatory minimum penalty of five years in prison, a maximum of life and a $2,000,000 fine.
Assistant U.S. Attorney Robert A. Marangola who is handling the case, stated that between November 2014 and January 2015, law enforcement officers investigated Caraballo and his brother, Jose Miguel Guerra. Controlled purchases of cocaine were arranged and completed between Caraballo and a confidential source. On one occasion a purchase of cocaine, heroin and firearm were discussed. Guerra was to supply the firearm. On January 21, 2015, the confidential source met Caraballo and Guerra to purchase the cocaine, heroin and firearm. The confidential source met Caraballo and Guerra briefly and was shown the firearm and told that they had to go get cocaine.
Caraballo and Guerra were surveilled leaving the area and then observed entering 264 Clifford Avenue in Rochester. Caraballo then called the confidential source and told him he had the cocaine. Several minutes later, Caraballo and Guerra met with the confidential source in a parking lot at 341 E. Ridge Road. They were subsequently arrested by members of the Rochester Police Department. During the search of the vehicle Caraballo and Guerra were in, officers recovered a ROHM. 38 Special revolver, 12 live rounds of .38 Special ammunition, approximately 12.5 grams of heroin, 33 grams of cocaine, marijuana and new/unused glassine bags.
Later that day, officers executed search warrants at 15 Bardin Street, a residence leased by Guerra, and 264 Clifford Avenue, locations identified during the investigation. Law enforcement recovered various items including, a firearm, ammunition, cash, drugs and drug paraphernalia.
During a post-arrest statement, Guerra told officers he and Caraballo picked up cocaine from a location, later identified to be 264 Clifford Avenue that day. Guerra was convicted of carrying a firearm during and in relation to a drug trafficking crime which carries a mandatory minimum penalty of five years in prison and a maximum penalty of life, a fine of $250,000 or both. Guerra is awaiting sentencing on July 13, 2015.
Today’s conviction is the culmination of an investigation on the part of Rochester Police Department, under the direction of Chief Michael Ciminelli, and the Federal Bureau of Investigation.
Caraballo’s sentencing is scheduled for October 19, 2015 at 2:30 p.m. before Judge Geraci.
Rio Rancho Man Pleads Guilty to Violating Federal Narcotics Trafficking and Firearms LawsRead the Press Release
ALBUQUERQUE – Christopher Mathuren, 38, of Rio Rancho, N.M., pleaded guilty today in federal court in Albuquerque, N.M., to methamphetamine trafficking and firearms charges. Under the terms of his plea agreement, Mathuren will be sentenced to ten years in federal prison followed by not less than three years of supervised release.
The guilty plea was announced by U.S. Attorney Damon P. Martinez, 13th Judicial District Attorney Lemuel L. Martinez, Special Agent in Charge Thomas G. Atteberry of the Phoenix Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives, and Chief Michael Geier of the Rio Rancho Police Department.
Mathuren, whose prior criminal history includes convictions for possession of marijuana with intent to distribute, possession of methamphetamine, and possession of methamphetamine with intent to distribute, is prosecuted 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. Because New Mexico’s violent crime rates, on a per capita basis, are amongst the highest in the nation, New Mexico’s law enforcement community is collaborating to target repeat offenders from counties with the highest violent crime rates, including Sandoval County, under this initiative.
Mathuren was arrested on Oct. 28, 2014, on a three-count indictment charging him with being a felon in possession of firearms and ammunition; possession of methamphetamine with intent to distribute; and using and carrying a firearm in furtherance of a drug trafficking crime. According to the indictment, Mathuren committed the three offenses on July 22, 2014, in Sandoval County, N.M. The indictment was superseded on Dec. 16, 2014, to add two additional charges of being a felon in possession of firearms and ammunition on Oct. 28, 2014 – the date on which Mathuren was arrested on the original indictment.
During today’s proceedings, Mathuren pled guilty to Counts 2 and 3 of the indictment. In entering the guilty plea, Mathuren admitted that on July 22, 2014, officers of the Rio Rancho Police Department executed a search warrant on his vehicle and seized approximately 30.3 grams of methamphetamine, drug paraphernalia, a pistol, rifle and ammunition. Mathuren further admitted that the rear stalk of the rifle had been shortened and the pistol had been reported stolen. Mathuren acknowledged that the firearms were “tools of the drug trafficking trade” and that he possessed them to assist him in his drug trafficking activities.
Mathuren previously was charged in July 2014, on related state charges. The state charges were dismissed in favor of federal prosecution after Mathuren was arrested on the federal charges in this case.
This case was investigated by the Albuquerque office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Rio Rancho Police Department with assistance from the 13th Judicial District Attorney’s Office. Assistant U.S. Attorney Rumaldo R. Armijo is prosecuting the case.
Queens Doctor Sentenced to 54 Months’ Imprisonment for Conspiracy to Distribute OxycodoneRead the Press Release
Earlier today, at the federal courthouse in Central Islip, New York, Gracia L. Mayard, a Queens doctor, was sentenced to 54 months in prison and $20,000 forfeiture by United States District Judge Joseph F. Bianco. Mayard pleaded guilty to conspiring to illegally distribute oxycodone, a highly addictive prescription pain killer, on September 16, 2014.
The sentence was announced by Kelly T. Currie, Acting United States Attorney for the Eastern District of New York; James J. Hunt, Special Agent-in-Charge, Drug Enforcement Administration, New York; Thomas C. Krumpter, Acting Commissioner, Nassau County Police Department; Joseph A. D’Amico, Superintendent, New York State Police; and Shantelle P. Kitchen, Special Agent-in-Charge, Internal Revenue Service Criminal Investigation, New York.
“Dr. Mayard violated his oath and the law by illegally providing vast quantities of these powerful painkillers without medical necessity. Even after surrendering his DEA registration, he wrote a backdated prescription for oxycodone in an attempt to illegally provide pills,” stated Acting United States Attorney Currie. “Health care providers who act as drug dealers are on notice that they will face serious consequences.” Mr. Currie extended his grateful appreciation to each of the law enforcement agencies for their assistance in this case.
During his guilty plea allocution in September 2014, Mayard admitted that in 2012 and 2013, he provided prescriptions to a co-conspirator for patients he had not examined in exchange for cash and continued to write prescriptions after surrendering his DEA registration to prescribe controlled substances on February 7, 2013.
Oxycodone is a scheduled controlled substance that may be dispensed by medical professionals only for a legitimate medical purpose in the usual course of a doctor’s professional practice. It is a powerful and highly addictive drug and is increasingly abused because of its potency when crushed into a powder and ingested, leading to a heroin-like euphoria.
Mayard’s conviction is the latest in a series of federal prosecutions by the United States Attorney’s Office for the Eastern District of New York as part of the Prescription Drug Initiative. In January 2012, this Office and the DEA, in conjunction with the five District Attorneys in this jurisdiction, the Nassau and Suffolk County Police Departments, the New York City Police Department, and New York State Police, along with other key federal, state, and local government partners, launched the Prescription Drug Initiative to mount a comprehensive response to what the United States Department of Health and Human Services’ Center for Disease Control and Prevention has called an epidemic increase in the abuse of so-called opioid analgesics. So far, the Initiative has brought over 160 federal and local criminal prosecutions, including the prosecution of 15 health care professionals, taken civil enforcement actions against a hospital, a pharmacy, and a pharmacy chain, removed prescription authority from numerous rogue doctors, and expanded information-sharing among enforcement agencies to better target and pursue drug traffickers. The Initiative also is involved in an extensive community outreach program to address the abuse of pharmaceuticals.
The government’s case is being prosecuted by the Office’s Long Island Criminal Division. Assistant United States Attorney Allen Bode is in charge of the prosecution.
The Defendant:
Name: GRACIA L. MAYARD
Age: 63
Residence: Queens, NY
Potosi, Neosho Men Indicted for Child ExploitationRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Potosi, Mo., man and a Neosho, Mo., man have been indicted by a federal grand jury in separate and unrelated cases related to child pornography and exploitation.
USA v. Nosser
Kevin Michael Nosser, 37, of Potosi, Mo., was charged in an indictment returned by a federal grand jury in Springfield, Mo., today.
The federal indictment alleges that Nosser used the Internet and a cell phone to entice a minor in Lawrence County, Mo., to engage in illicit sexual activity on May 22 and 23, 2015.
This case is being prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by the FBI, the Southwest Missouri Cyber Crimes Task Force, the Missouri State Highway Patrol and the Lawrence County, Mo., Sheriff’s Department.
USA v. Hilburn
Larry Don Hilburn, 28, of Neosho, Mo., was charged in an indictment returned by a federal grand jury in Springfield on Tuesday, June 16, 2015. The federal indictment charges Hilburn with one count of receiving and distributing child pornography over the Internet on Sept. 8, 2014, and with one count of possessing child pornography on Oct. 1, 2014.
This case is being prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by the FBI and the Southwest Missouri Cyber Crimes Task Force.
Dickinson cautioned that the charges contained in these indictments are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Pensacola Man Indicted for Child Exploitation Crimes (Robertson)Read the Press Release
PENSACOLA, FLORIDA – A federal grand jury returned an indictment yesterday charging Pensacola resident John W. Robertson, 68, with attempted enticement of a minor and possession of child pornography. The indictment was announced by Pamela C. Marsh, United States Attorney for the Northern District of Florida.
The indictment alleges that, in May 2015, Robertson knowingly attempted to entice an individual less than 18 years of age to engage in sexual activity, and that he possessed sexualized images and videos involving minors less than 12 years of age.
Robertson originally appeared in federal court last month upon being arrested on a federal criminal complaint. He will be arraigned on the indictment at the United States Courthouse in Pensacola, Florida, and is being held in federal custody at the Santa Rosa County Jail, pending further proceedings.
The case is being investigated by the United States Immigration and Customs Enforcement Homeland Security Investigations, Pensacola Police Department, Florida Department of Law Enforcement, and other agencies that are part of the North Florida Internet Crimes Against Children Task Force. The case is being prosecuted by Assistant United States Attorney David L. Goldberg.
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt in a court of law.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. The office strives to protect and serve the citizens of the Northern District of Florida through the ethical, vigorous, and impartial enforcement of the laws of the United States, to defend the national security, to improve the safety and quality of life in our communities through the protection of civil rights, and to protect the public funds and financial assets of the United States. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact: Amy Alexander, Public Information Office
(850) 216-3854, [email protected]Pensacola Man Indicted for Child Exploitation Crimes (Grafton)Read the Press Release
PENSACOLA, FLORIDA – A federal grand jury returned an indictment yesterday charging Pensacola resident Robert M. Grafton Jr., 29, with attempted enticement of a minor and possession of child pornography. The indictment was announced by Pamela C. Marsh, United States Attorney for the Northern District of Florida.
The indictment alleges that, in May 2015, Grafton knowingly attempted to entice an individual less than 18 years of age to engage in sexual activity, and that he possessed sexualized images and videos involving minors less than 12 years of age.
Grafton originally appeared in federal court last month upon being arrested on a federal criminal complaint. He will be arraigned on the indictment at the United States Courthouse in Pensacola, Florida, and is being held in federal custody at the Santa Rosa County Jail, pending further proceedings.
The case is being investigated by the United States Immigration and Customs Enforcement Homeland Security Investigations, Pensacola Police Department, Florida Department of Law Enforcement, and other agencies that are part of the North Florida Internet Crimes Against Children Task Force. The case is being prosecuted by Assistant United States Attorney David L. Goldberg.
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt in a court of law.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. The office strives to protect and serve the citizens of the Northern District of Florida through the ethical, vigorous, and impartial enforcement of the laws of the United States, to defend the national security, to improve the safety and quality of life in our communities through the protection of civil rights, and to protect the public funds and financial assets of the United States. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact: Amy Alexander, Public Information Office
(850) 216-3854, [email protected]Penn Hills Man Admits Participating in Drug Trafficking SchemeRead the Press Release
PITTSBURGH - A Penn Hills resident pleaded guilty in federal court to a charge of conspiracy to possess with intent to distribute and distribute a quantity of cocaine, United States Attorney David J. Hickton announced today.
Abdul Boyd, 38, pleaded guilty to one count before United States District Judge Mark R. Hornak.
In connection with the guilty plea, the court was advised that in 2013, the Federal Bureau of Investigation and other agencies joined forces in a multi-agency wiretap investigation of drug trafficking and violence in the Homewood section of Pittsburgh. The interception of wire and electronic communications began in December 2013 and continued through the end of August 2014. During that timeframe, Abdul Boyd was intercepted over the wire conspiring with others to possess with intent to distribute and distribute cocaine, which was shipped from California to the Western District of Pennsylvania through the United States Postal Service or commercial carrier.
Judge Hornak scheduled sentencing for Oct. 15, 2015. The law provides for a maximum sentence of 20 years in prison, a fine of not more than $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued the defendant’s detention.
Assistant United States Attorney Tonya Sulia Goodman is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Greater Pittsburgh Safe Street Task Force, Wilkinsburg Police Department, Allegheny County Sheriff’s Office, Pennsylvania Office of the Attorney General, Munhall Police Department, Duquesne Police Department, Monroeville Police Department, Allegheny County Police Department, West Mifflin Police Department, Bellevue Police Department, and the Pittsburgh Bureau of Police conducted the investigation that led to the prosecution of Abdul Boyd.
Passaic County, New Jersey, Man Sentenced to Five Years in Prison for Role in $15 Million Mortgage Fraud SchemeRead the Press Release
CAMDEN, N.J. – A Passaic County, New Jersey, man was sentenced today to 60 months in prison for conspiring to launder money as part of a $15 million mortgage fraud scam that used phony documents and “straw buyers” to make illegal profits on overbuilt condos, U.S. Attorney Paul J. Fishman announced.
Nicholas Tarsia, Jr., 67, of Totowa, New Jersey, previously pleaded guilty before U.S. District Judge Jerome B. Simandle to a superseding information charging him with one count of conspiring to commit money laundering. Judge Simandle imposed the sentence today in Camden federal court.
According to the documents filed in this case and statements made in court:
Tarsia was among 13 defendants charged in a series of indictments returned on July 2012 and November 2013 with conspiracy to commit wire fraud and conspiracy to commit money laundering. Tarsia and his conspirator Timothy Ricks of Essex County, New Jersey, caused $15 million in fraudulent mortgage loans to be funded during 2006, 2007, and 2008, to enable unqualified buyers of real estate to purchase real estate properties. Once the funds for these mortgages were deposited into a title company’s escrow account, Tarsia extracted proceeds from the fraud through wire transfers and checks to himself and his conspirators. Tarsia and conspirator Ricks, in turn, transmitted a portion of those proceeds to other conspirators, including Dwayne Onque and Orlando Allen. In addition, conspirator Darryl Henry, in turn, transmitted a portion of those proceeds to conspirators Kinard J. Henson and Willie W. Richardson.
In addition to the prison term, Judge Simandle sentenced Tarsia to serve three years of supervised release. Restitution will be determined at a hearing scheduled for July 9, 2015.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark; and IRS–Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, in Newark, for their roles in the investigation.
The government is represented by Assistant U.S. Attorneys Matthew T. Smith and Jacqueline M. Carle of the U.S. Attorney’s Office Criminal Division in Camden.
Defense counsel: Telesforo Del Valle Jr. Esq., New York
Parkton Landscaper Admits to Stealing $180,000 from a ClientRead the Press Release
Baltimore, Maryland – Jeffrey Poole, age 40, of Parkton, Maryland, pleaded guilty today to bank fraud and aggravated identity theft arising from a seven year scheme to access a client’s bank account.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Brian Murphy of the United States Secret Service - Baltimore Field Office.
According to his plea, Poole met the victim when he provided landscaping services. He helped set up the victim’s new computer for on-line banking and gained access to the victim’s personal identity and financial information. Shortly thereafter, Poole used the victim’s identity to establish a PayPal account for the victim, without the victim’s knowledge. Poole used the victim’s personal and financial information to link the victim’s PayPal account to the victim’s checking account, so that payments made with or money transferred from the victim’s PayPal account would be automatically drawn from the victim’s bank account.
From April 2007 through January 2014, Poole repeatedly logged onto the victim’s PayPal account and made purchases for himself. He also initiated money transfers from the victim’s PayPal account into his own PayPal account. He then transferred the victim’s funds to his own bank accounts.
As a result of the scheme, Poole fraudulently obtained or attempted to obtain over $244,000.
Poole faces a maximum sentence of 30 years in prison and a fine of $1 million for bank fraud, and a mandatory minimum of two years in prison for aggravated identity theft consecutive to any other sentence imposed. Chief U.S. District Judge Catherine C. Blake scheduled his sentencing for September 23, 2015, at 9:15 a.m.
Poole has agreed to pay restitution of $180,000 for the actual losses incurred by the victim.
The Maryland Identity Theft Working Group has been working since 2006 to foster cooperation among local, state, federal, and institutional fraud investigators and to promote effective prosecution of identity theft schemes by both state and federal prosecutors. This case, as well as other cases brought by members of the Working Group, demonstrates the commitment of law enforcement agencies to work with financial institutions and businesses to address identity fraud, identify those who compromise personal identity information, and protect citizens from identity theft.
Today’s announcement is part of the efforts undertaken in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
United States Attorney Rod J. Rosenstein commended the U.S. Secret Service for its work in the investigation and thanked Assistant U.S. Attorney Tamera L. Fine, who is prosecuting the case.
Owner of Scrap Metal Business Sentenced for Tax EvasionRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that the owner of a Kansas City, Mo., scrap metal business has been sentenced in federal court for tax evasion.
Nellie Brown Boxx, 62, of Kearney, Mo., was sentenced by Chief U.S. District Judge Greg Kays on Tuesday, June 16, 2015, to 18 months in federal prison without parole. The court also ordered Boxx to pay $366,846 in restitution to the IRS and the Missouri Department of Revenue. Boxx paid $50,000 of that restitution amount prior to yesterday’s hearing.
Boxx, the owner of Frank Metal Company in Kansas City, pleaded guilty to tax evasion on Feb. 19, 2015. Boxx admitted that she assisted tax preparers to prepare tax returns that contained false information. For example, Boxx classified purchases such as food items, drinks, jewelry, dry cleaning, household items and high-end clothing as business expenses for her scrap metal company.
According to the plea agreement, Boxx received $320,345 in taxable income in 2008, and owed $87,123 in federal income tax. The court-ordered restitution includes that tax loss as well as additional relevant conduct.
Boxx also admitted that she submitted a false 2008 Form 1040 to a bank in order to receive a financial loan. Boxx also admitted that she made false statements to IRS agents, such as falsely claiming that business documents had been destroyed by water damage from a leak in the roof.
This case was prosecuted by Assistant U.S. Attorney Roseann A. Ketchmark. It was investigated by IRS-Criminal Investigation.
Oklahoma Man Charged with Fraud SchemeRead the Press Release
Lee Michael Harrison, 39, of Oklahoma City, Oklahoma, was charged by indictment, unsealed today, with three counts of wire fraud. In 2010 and 2011, Harrison was attempting to establish restaurants and clubs in North Carolina, and to sell a reality television show to the Food Network. He convinced two investors to each invest $20,000 with him by falsely representing that they were investing in a fictitious technology called “Capture” that prevented cell phones from dropping calls and that he allegedly had sold to a prominent New York financier for over six billion dollars.
If convicted, the defendant faces a maximum possible sentence of 60 years of in prison, three years of supervised release, a $750,000 fine, and a $300 special assessment.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Laurie Magid.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Northwest Arkansas Man Sentenced to Prison for Federal Tax FraudRead the Press Release
Fayetteville, Arkansas – A Springdale, Arkansas, man was sentenced today in the U.S. District Court in Fayetteville, Arkansas, for multiple tax crimes, announced U.S. Attorney Conner Eldridge of the Western District of Arkansas and Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division.
Doyle Smith, 56, was sentenced to serve 48 months in prison to be followed by five years of supervised release and ordered to pay a $5000 fine. On Feb. 11, following a three-day trial before U.S. District Judge Timothy L. Brooks of the Western District of Arkansas, a jury found Smith guilty of four counts of filing a false tax return, one count of corruptly endeavoring to obstruct and impede the administration of the internal revenue laws and one count of presenting a fictitious financial obligation.
According to evidence introduced at trial, in 2008 and 2009, Smith submitted four false individual federal tax returns for tax years 2005 through 2008, which falsely reported a total of more than $1.4 million in fictitious federal tax withholdings. Based on these fictitious withholding amounts, Smith claimed a total of $1,021,457 in income tax refunds that he was not entitled to receive. Smith also submitted false claims and correspondence to both the Internal Revenue Service (IRS) and third-parties in an attempt to cause the IRS and U.S. Treasury to pay his debts to third parties and to obstruct the IRS’ tax administration efforts. For example, in January 2010, Smith mailed to the Department of Arkansas Finance and Administration a fictitious financial instrument titled “U.S. Treasury Trust Account Money Order.” This fictitious document purportedly obligated U.S. Treasury funds in the amount of $129,439 to pay for outstanding sales taxes that Smith owed to the state of Arkansas.
“Smith, in his fraudulent scheme, attempted to steal taxpayer money from the U.S. Treasury for his own benefit,” said U.S. Attorney Eldridge. “Those who steal from the U.S. Treasury steal directly out of the pockets of the hard-working people of the Western District of Arkansas. With today’s sentence, a strong message has been sent that our office and our law enforcement partners will relentlessly pursue fraud wherever we find it.”
“Individuals like Doyle Smith, who commit criminal tax offenses and attempt to use the U.S. Treasury as their personal slush fund, will be identified, investigated, prosecuted and incarcerated,” said Acting Assistant Attorney General Ciraolo. “The message from today’s sentencing is clear: those who attempt to cheat the system will pay a heavy price for their criminal conduct.”
“Today’s sentencing is a reminder of the penalties individuals face when submitting false claims for federal income tax refunds,” stated Special Agent in Charge Christopher A. Henry of the IRS-Criminal Investigation (CI). “IRS-Criminal Investigation will continue their aggressive pursuit of those who use fraudulent methods in an attempt to corrupt our nation’s tax system, and our unwavering commitment to protecting the interests of law-abiding taxpayers.”
“It is the Treasury Inspector General for Tax Administration’s mission to protect the integrity of the Internal Revenue Service and promote the fair administration of our federal tax system,” said Special Agent in Charge Ruben Florez of the Treasury Inspector General for Tax Administration’s (TIGTA’s) Mid-States Field Division. “TIGTA and its law-enforcement partners will vigorously investigate individuals that attempt to corruptly interfere with the administration of the internal revenue laws through fraudulent means, and will do everything within its power to ensure that those involved will be prosecuted to the fullest extent of the law. Today’s sentencing demonstrates that our justice system will not tolerate these types of actions.”
U.S. Attorney Eldridge and Acting Assistant Attorney General Ciraolo commended the special agents of IRS-CI and TIGTA, who investigated the case, as well as Trial Attorneys Robert Kemins and David Zisserson of the Tax Division, who prosecuted the case.
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Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov
Newton Investment Adviser Arrested for FraudRead the Press Release
BOSTON – A Newton investment adviser was arrested and charged today with pitching fictitious investments to defraud investors out of hundreds of thousands of dollars.
Paul J. Jackson, 58, of Wellesley, was charged with one count of wire fraud.
According to charging documents, Jackson owns and operates Paul J. Jackson & Associates, LLC in Newton, through which he manages retirement funds for clients. Beginning in 2010, Jackson started offering clients and others what appeared to be attractive investment opportunities. The investments Jackson offered typically involved initial public offerings (IPOs) of high-profile companies, but Jackson did not invest the clients’ money as promised. Instead, he took hundreds of thousands of dollars of investor money for his own use. For example, it is alleged that Jackson took $175,000 from one investor to whom he had pitched a lucrative investment in Alibaba’s IPO. Instead of investing the money, Jackson kept $112,000 for himself and gave $60,000 to another investor who had given Jackson more than $450,000 and was demanding his money. When other investors requested their money back, Jackson offered excuses and never told them that he had simply taken their money.
The Massachusetts Securities Division also filed a separate administrative action against Jackson today, charging him with fraud and seeking to bar him from working in the securities industry.
The maximum sentence under the wire-fraud statute is 20 years in prison, three years of supervised release, and a fine of the greater of $250,00 or twice the gross gain or loss. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The U.S. Attorney’s Office received valuable assistance from the Securities & Exchange Commission during the investigation of this matter. The case is being prosecuted by Assistant U.S. Attorney Eric P. Christofferson of Ortiz’s Economic Crimes Unit.
The details contained in the complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Nampa Woman Sentenced for Selling Methamphetamine at her ResidenceRead the Press Release
BOISE – Brandi Larrea, 31, of Nampa, Idaho, was sentenced today to 48 months in prison for distribution of methamphetamine, U.S. Attorney Wendy J. Olson announced. Chief U.S. District Judge B. Lynn Winmill also ordered Larrea to serve four years of supervised release following her release from prison. Larrea pleaded guilty on March 26, 2015.
According to the plea agreement, Larrea admitting selling methamphetamine at her residence in Nampa, Idaho, on five separate occasions in January and March of 2013, and from March to May of 2014, totaling 33.3 grams of actual methamphetamine. In June of 2013, law enforcement agents with the Treasure Valley Metro Violent Crimes Task Force and the Federal Bureau of Investigation searched the defendant's residence pursuant to a search warrant and discovered 24 grams of actual methamphetamine and digital scales.
This case and the other related cases are the result of a joint investigation by theTreasure Valley Metro Violent Crime Task Force and the Organized Crime and Drug Enforcement Task Force (OCDETF). The Treasure Valley Metro Violent Crime Task Force is comprised of federal, state and local agencies, including the Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; Boise Police Department; Ada County Sheriff’s Office; Caldwell Police Department; Nampa Police Department; Meridian Police Department; Canyon County Sheriff’s Office; and Idaho Department of robation and Parole. The Organized Crime and Drug Enforcement Task Force (OCDETF), includes the cooperative law enforcement efforts of the Federal Bureau of Investigation; Drug Enforcement Administration; Bureau of Alcohol, Tobacco, Firearms and Explosives; U. S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Internal Revenue Service-Criminal Investigation; and U.S. Marshals Service. The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
The cases are being prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership, the Canyon County Prosecuting Attorney’s Office, and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
Nampa Woman Sentenced for Distribution of MethamphetamineRead the Press Release
BOISE – Tara Noelle Rivera, 30, of Nampa, Idaho, was sentenced today to 24 months in prison for distribution of methamphetamine, U.S. Attorney Wendy J. Olson announced. Chief U.S. District Judge B. Lynn Winmill also ordered Rivera to serve three years of supervised release following her release from prison. Rivera pleaded guilty on March 31, 2015.
According to court documents, Rivera admitted to selling methamphetamine to a police informant on three separate occasions in March 2014. Rivera further admitted to selling a 9 millimeter pistol to the informant. Rivera’s case is part of a larger long-term investigation by the Treasure Valley Metro Violent Crimes Task Force. The investigation focused on the “Norteno” Northside gang, which is active in Nampa and other parts of the Treasure Valley. Fourteen individuals were indicted on drug and gun charges as a result of the investigation.
This case and the other related cases are the result of a joint investigation by theTreasure Valley Metro Violent Crime Task Force and the Organized Crime and Drug Enforcement Task Force (OCDETF). The Treasure Valley Metro Violent Crime Task Force is comprised of federal, state and local agencies, including the Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; Boise Police Department; Ada County Sheriff’s Office; Caldwell Police Department; Nampa Police Department; Meridian Police Department; Canyon County Sheriff’s Office; and Idaho Department of robation and Parole. The Organized Crime and Drug Enforcement Task Force (OCDETF), includes the cooperative law enforcement efforts of the Federal Bureau of Investigation; Drug Enforcement Administration; Bureau of Alcohol, Tobacco, Firearms and Explosives; U. S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Internal Revenue Service-Criminal Investigation; and U.S. Marshals Service. The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
The cases are being prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership, the Canyon County Prosecuting Attorney’s Office, and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
Monmouth County, New Jersey, Man, Sentenced to 21 Months in Prison, in Racketeering Conspiracy/Illegal Online Gambling EnterpriseRead the Press Release
NEWARK, N.J. – A Monmouth County, New Jersey, man was sentenced today to 21 months in prison for his role in a racketeering conspiracy, U.S. Attorney Paul J. Fishman announced.
Michael O’Donnell, 51, Wall Township, previously pleaded guilty before U.S. District Judge Claire C. Cecchi, to an information charging him with conspiracy to violate the Racketeer Influenced and Corrupt Organizations, or RICO, statute by participating in the activities of Beteagle, an overseas Website that facilitated online sports betting. Judge Cecchi imposed the sentence today in Newark federal court.
According to documents filed in this and other cases and statements made in court:
Joseph Graziano, 78, of Springfield, was the principal owner of Beteagle.com, a website located in Costa Rica and used to facilitate illegal online sports betting. Dominick Barone, 45, of Springfield, New Jersey, worked with Graziano in carrying out the daily activities of the website.
O’Donnell was given access to Beteagle and was considered an “agent” of the website. Before the advent of computerized betting, these agents would have been referred to as “bookmakers” or “bookies.” The agents had the ability to track the “sub-agents,” under them and the wagers placed by their bettors. The agent or sub-agent maintained a group of bettors (the “package”) and were responsible for those bettors.
O’Donnell was an agent who assisted in the illegal gambling business conducted through the website. To place bets online, the agent or sub-agent issued the bettor a username and password to access Beteagle. This access was not given online and no money or credits were made or transferred through the website. O’Donnell and his conspirators paid out winnings or collected losses in person. The agent or sub-agent paid a fee to the website for each bettor added to a package. O’Donnell collected money from bettors and then passed a portion of the proceeds to Barone in furtherance of the racketeering scheme.
In addition to the prison term, Judge Cecchi ordered O’Donnell to serve three years of supervised release and pay a $5,000 fine.
Graziano has pleaded guilty to his role in the scheme and is currently scheduled for sentencing on June 25, 2015. Barone was sentenced to 18 months’ imprisonment.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark; the Bayonne Police Department, Special Investigations Unit, under the direction of Chief Drew Niekrasz; IRS-Criminal Investigation under the direction of Special Agent in Charge Jonathan D. Larsen; the N.J. State Police, under the direction of Superintendent Rick Fuentes; and the Monmouth County Prosecutor’s Office, under the direction of Acting Prosecutor Christopher Gramiccioni, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Anthony Moscato of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Robert L. Galantucci Esq., Hackensack, New Jersey
Millstone, New Jersey, Mortgage Broker Sentenced to One Year in Prison for Extortion ConspiracyRead the Press Release
TRENTON, N.J. – A Millstone, New Jersey, man was sentenced today to 12 months in prison for conspiring to extort victims out of money and property by falsely stating they were the subjects of IRS criminal investigations, U.S. Attorney Paul J. Fishman announced.
Robert G. Cusic Jr., 46, previously pleaded guilty before U.S. District Judge Joel A. Pisano to an information charging him with conspiracy to commit extortion under fear of economic harm. U.S. District Judge Anne E. Thompson imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
Cusic, Thomas G. Frey, 55, of Edison, New Jersey, and another conspirator (identified only as CC-1), schemed to extort and to defraud four victims, including two police officers, by falsely representing to the victims that they were the subjects of criminal investigations, principally by the IRS, in connection with investment properties some of them owned. Cusic falsely represented that while at a property formerly owned by one of the victims, Cusic encountered two IRS special agents (SA-1 and SA-2) who questioned him extensively about some of the victims.
Frey, a lawyer and certified public accountant, falsely told the victims he had ongoing communications with SA-1 about the purported investigation and had a special relationship with SA-1. Frey told the victims if they paid up to $20,000 each, he would call SA-1 and have the investigation converted from a criminal tax investigation to an IRS “desk audit,” a civil matter. Frey and CC-1 falsely stated that if the victims did not retain his services and pay the fee, the investigation would likely result in the arrest of certain victims.
Cusic admitted the goal of the conspiracy was to obtain approximately $80,000 in fees for Frey and to cause the victims to sell certain of the properties to Frey and others. Cusic stood to receive a portion of any fees paid by the victims, a percentage of the sale price of each of the investment properties sold to Frey and others, and property management fees on any of the properties sold.
In addition to the prison term, Judge Thompson sentenced Cusic to serve three years of supervised release and ordered him to pay a $3,000 fine.
Frey previously pleaded guilty before Judge Pisano to two counts of an indictment charging him with conspiracy to commit extortion under fear of economic harm and conspiracy to commit wire fraud. He was sentenced on April 27, 2015, to 27 months in prison.
Fishman credited special agents of the Treasury Inspector General for Tax Administration, under the direction of Special Agent in Charge Rodney Davis, Washington Field Division, for the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Eric W. Moran of the U.S. Attorney’s Office Special Prosecutions Division in Newark.
Defense Counsel: Peter R. Willis Esq., Jersey City, New JerseyMiami-Dade County Residents Sentenced for Committing Armed Robbery SpreeRead the Press Release
Michael Childs, 39, and Charles Lovett, 26, both of Opa-Locka, were sentenced by U.S. District Court Judge Joan A. Lenard to consecutive terms of imprisonment totaling 480 months and 141 months respectively, for committing multiple armed robberies.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, Hugo J. Barrera, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), made the announcement.
According to statements made and documents filed in court, Childs and Lovett were charged with committing a series of armed robberies of commercial establishments in late 2013 and early 2014, across Miami-Dade and Broward Counties, including robberies in West Park, Miami Gardens, Opa-Locka, and the City of Miami. Both Childs and Lovett pled guilty to committing multiple armed robberies. Childs also admitted that, in January 2014, during the course of two separate robberies, he used a firearm to shoot at customers and employees inside Opa-Locka and Liberty City convenience stores. Childs, who had previously been convicted of committing a robbery in Pennsylvania, was identified through a forensic examination of fingerprints he left during the course of a robbery at the Liberty City convenience store.
Mr. Ferrer commended the investigative efforts of members of the Violence Reduction Partnership, including ATF, Miami-Dade Police Department (MDPD), the City of Miami Police Department, Opa-Locka Police Department, Miami Gardens Police Department, Broward Sheriff’s Office, and the Hallandale Beach Police Department. The cases were prosecuted by Assistant U.S. Attorneys Olivia S. Choe and Seth M. Schlessinger.
Through its Violence Reduction Partnership, the U.S. Attorney’s Office and its federal and local law enforcement allies have sought to dismantle the most violent criminal networks in various neighborhoods in the Southern District of Florida, while simultaneously working with community leaders and concerned citizens to mentor at-risk youth, provide job training, coordinate social services and support the reintegration of ex-offenders (returning citizens) to the community.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Mexican National Sentenced for Illegal ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that NAZARIO HERNANDEZ-MALDONADO, 54, a citizen of Mexico, was sentenced after previously pleading guilty to a one-count Indictment for illegal reentry of a removed alien.
U.S. District Judge Helen G. Berrigan sentenced HERNANDEZ-MALDONADO to time serviced, 1 year of supervised release, and a $100 special assessment. HERNANDEZ-MALDONADO will be surrendered to the custody of the U.S. Immigration & Customs Enforcement for removal proceedings.
According to court documents, on or about January 23, 2015, HERNANDEZ-MALDONADO was found in the United States after having been officially deported and removed on or about August 8, 1998, and on or about July 1, 2000.
U.S. Attorney Polite praised the work of the United States Department of Homeland Security, Immigration and Customs Enforcement in investigating this matter. Assistant United States Attorney Irene González was in charge of the prosecution.
Mexican National Pleads Guilty to Illegally ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JOSE BENJAMIN LOPEZ-AGUILAR, age 23, a citizen of, pled guilty today to a one-count Bill of Information for illegal reentry of removed alien.
According to the Bill of Information, on or about April 24, 2015, LOPEZ-AGUILAR was found in the United States after having been officially deported and removed on or about October 15, 2014.
LOPEZ-AGUILAR faces a maximum term of imprisonment of two years and a fine of $250,000, one year supervised release after imprisonment, and a $100 special assessment. U.S. District Judge Helen G. Berrigan set sentencing for August 26, 2015.
U.S. Attorney Polite praised the work of the United States Department of Homeland Security, Immigration Enforcement in investigating this matter. Assistant United States Attorney Irene González is in charge of the prosecution.
Jose Benjamin Lopez-Aguilar Factual Basis.docx (19.6 KB)
McLaughlin Man Sentenced for Third Degree BurglaryRead the Press Release
Acting United States Attorney Randolph J. Seiler announced that a McLaughlin, South Dakota, man convicted of Third Degree Burglary was sentenced on June 15, 2015, by U.S. District Judge Charles B. Kornmann.
Blake Crow Ghost, age 21, was sentenced to 6 months in custody, followed by 3 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Crow Ghost was indicted for First Degree Burglary, Assault with a Dangerous Weapon, and Third Degree Burglary by a federal grand jury on June 23, 2014. He pled guilty to Third Degree Burglary on March 5, 2015.
The conviction arose from a June 22, 2013, incident at McLaughlin, when Crow Ghost and two co-defendants entered a garage and damaged a sitting area, and also removed speakers from the garage and smashed them against the house. Later that night, Crow Ghost joined in physical altercations between his co-defendants and several victims. Crow Ghost kicked one victim while he was on the ground, tackled another victim and caused her to fall into a garage door, and attacked a third victim.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Jay Miller prosecuted the case.
Crow Ghost was immediately turned over to the custody of the U.S. Marshals Service.
Marionville Man Pleads Guilty to Child ExploitationRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Marionville, Mo., man pleaded guilty in federal court today to child sexual exploitation.
Darren Eugene Schaefer, 36, of Marionville, Mo., pleaded guilty before U.S. District Judge M. Douglas Harpool to using the Internet and cell phone to attempt to entice a minor to engage in illicit sexual activity.
A task force officer with the Southwest Missouri Cybercrimes Task Force investigated a tip from the National Center for Missing and Exploited Children in May 2014 that Schaefer was contacting underage females on the social networking site MeetMe, asking them if they wanted to meet for sexual acts. Schaefer sent messages indicating that he was interested in sexual contact with seven underage females. After contacting the females using the instant message feature on MeetMe, Schaefer would attempt to move the conversations to cell phone text messages.
During the on-line communications between Schaefer and the underage female victims, Schaefer admitted to the victims that he was 35 years old, and stated that he preferred younger females. In one instance, one of the victims asked Schaefer why he posted his age on MeetMe as 14 years old if he was really 35. Schaefer replied that was the only way he could see underage females on this Web site and communicate with them. One victim asked him if he knew he could get in trouble for what he was doing. He replied he knew he could get in trouble but hoped he would not.
A federal search warrant was executed at Schaefer’s residence on June 17, 2014. Schaefer told officers that he talked to hundreds of girls on various social networking Web sites and that he had contacted underage girls several other times using MeetMe. Schaefer also admitted to meeting at least three underage girls for sexual intercourse over a 10-year period. He reported that he had met all three of them from social networking sites on the Internet. He met two of the girls in Nixa and one at Hood's Truck Stop on 1-44.
Officers seized two laptop computers, two external hard drives and Schaefer’s cell phone. The laptops contained 103 images of child pornography. A total of 474 images of child erotica were located on the multiple electronic media.
Under federal statutes, Schaefer is subject to a mandatory minimum sentence of 10 years in federal prison without parole, up to a sentence of life in federal prison without parole, plus a fine up to $500,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by the Southwest Missouri Cybercrimes Task Force, Immigration and Custom Enforcement’s (ICE) Homeland Security Investigations (HSI) and the FBI.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Marion County Man Convicted of Federal Firearm OffenseRead the Press Release
Ocala, Florida – United States Attorney A. Lee Bentley, III announces that a federal jury today found Reginald Howard, Jr. (36, Ocala) guilty of possession of a firearm and ammunition by a convicted felon. He faces a mandatory minimum sentence of 15 years, up to life, in federal prison. His sentencing hearing has not yet been scheduled. Howard was indicted on January 7, 2015.
According to the testimony and evidence presented at trial, Ocala Police Department officers were called to a disturbance at a store on November 28, 2014. Officers were told that a man was in the bathroom with a gun. Officers confronted Howard and a subsequent search revealed a loaded, 9mm handgun inside his left rear pocket. Howard stated that he had the firearm for protection. Witnesses reported that Howard had threatened them while displaying the pistol.
Prior to the incident, Howard had been convicted for the sale of cocaine and felony fleeing and eluding law enforcement. As such, he qualifies for an enhanced sentence as an armed career criminal under federal law. At the time of the offense, Howard was under federal supervision.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Ocala Police Department. It is being prosecuted by Assistant United States Attorneys Bryon R. Aven and Robert Bodnar.
This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” Program - a nationwide, gun-violence reduction strategy. United States Attorney A. Lee Bentley, III, along with Regina Lombardo, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials. It is also a part of ATF’s Frontline strategy to reduce violent crime in communities.
Manhattan U.S. Attorney Settles Civil Fraud Claims Against Inspire Pharmaceuticals, Inc. for Its Misleading Marketing Designed to Cause Prescriptions of Azasite for Non-Fda Approved UsesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Scott J. Lampert, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General’s (“HHS-OIG”) New York Region, announced today that the United States has settled civil fraud claims under the False Claims Act and common law against INSPIRE PHARMACEUTICALS, INC. (“INSPIRE”). According to the allegations of the complaint, although the Food and Drug Administration (“FDA”) had approved AzaSite only for the treatment of bacterial conjunctivitis, a bacterial infection of the eye more commonly known as pink eye, INSPIRE sought to generate more revenue by aggressively marketing the drug for the non-FDA-approved treatment of blepharitis, a different eye condition involving inflammation of the eyelids. The complaint alleges that INSPIRE’s marketing efforts from 2008 through May of 2011 misleadingly focused on purported anti-inflammatory properties of AzaSite that were unsupported by substantial evidence or substantial clinical experience in order to cause doctors to prescribe AzaSite for uses not covered by federal healthcare programs, which resulted in federal healthcare programs paying millions of dollars in false claims. In connection with the settlement, which was approved by U.S. District Judge Loretta A. Preska on June 15, 2015, INSPIRE agreed to pay the United States and state governments $5,960,163.28, and made admissions as to its conduct.
Manhattan U.S. Attorney Preet Bharara said: “As demonstrated by today’s settlement, we are committed to ensuring that drug companies do not undermine the FDA’s approval process by deliberately marketing drugs for uses that are unsupported by substantial evidence or clinical experience, while profiting at taxpayers’ expense.”
HHS-OIG Special Agent in Charge Scott J. Lampert said: “Marketing pharmaceuticals for other than FDA approved uses by making misleading statements can expose patients to questionable drug treatments while asking taxpayers to pick up the Medicare bill. Investigations of such misconduct will continue to be a priority for this office.”
According to the complaint-in-intervention filed in Manhattan federal court:
On April 27, 2007, the FDA approved AzaSite to treat pink eye. The FDA never approved AzaSite as safe and effective to treat blepharitis. INSPIRE initially based its advertising on treating children for pink eye by prominently displaying a child in its advertisements and emphasizing the ease of administering AzaSite with only nine drops. INSPIRE also marketed its product to pediatricians and primary care physicians likely to treat pink eye. By the beginning of 2008, INSPIRE began a promotional effort to encourage physicians to prescribe AzaSite to treat blepharitis, a condition characterized by inflammation of the eyelids, even though the FDA had not approved AzaSite to treat blepharitis. INSPIRE changed its marketing strategy by highlighting the purported anti-inflammatory characteristics of AzaSite, not including a child in its advertisements, and substantially reducing its marketing toward pediatricians and primary care physicians while instead targeting doctors likely to treat blepharitis. The FDA sent a letter to INSPIRE dated April 14, 2011, informing the company that its then-prominent advertisement improperly suggested that AzaSite had anti-inflammatory effects, even though this had not been demonstrated by substantial evidence or substantial clinical experience. FDA advised INSPIRE that its advertisement was “false or misleading because it broadens the indication, makes unsubstantiated claims, and omits and minimizes important risks associated with the use of AzaSite.”
The Government further alleged that INSPIRE trained its sales force on the purported anti-inflammatory effects of AzaSite, and advised its sales force that every call needed to emphasize, among other things, the purported anti-inflammatory properties of AzaSite. INSPIRE gave its sales force marketing material targeting blepharitis, and had a nationwide speaker program geared toward promoting AzaSite to treat blepharitis. INSPIRE did this to drive prescriptions for the non-FDA approved treatment of blepharitis.
As part of today’s settlement, INSPIRE admitted that starting in January 2008, INSPIRE commenced an advertising campaign designed to broaden the customer base for AzaSite by focusing on, among other things, AzaSite’s claimed anti-inflammatory effects, which were not approved by the FDA, and were not demonstrated by substantial evidence or substantial clinical experience. INSPIRE further admitted that AzaSite was prescribed for blepharitis, and that claims to treat blepharitis were submitted to federal healthcare programs for payment.
The case was initially brought by a whistleblower under the False Claims Act, and the Government intervened in the case. The Government alleged in its Complaint-In-Intervention that Inspire’s marketing of AzaSite for the treatment of blepharitis, a use not approved by the FDA or covered by federal healthcare programs, resulted in the submission of false claims to federal healthcare programs in violation of the False Claims Act.
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Mr. Bharara praised the investigative work of HHS-OIG.
The case is being handled by the Office’s Civil Frauds Unit. Assistant United States Attorney Lawrence H. Fogelman is in charge of the case.
Man who threatened Senator Manchin sentenced to 18 months in federal prisonRead the Press Release
Charleston, W.Va. – United States Attorney Booth Goodwin announced today that Steven Anthony Major, 50, was sentenced to 18 months in federal prison, followed by three years of supervised release for threatening to murder United States Senator Joseph Manchin, III, and his family members.
On February 24, 2015, Major pleaded guilty to threatening to murder Senator Manchin. Major admitted that he called Senator Manchin’s Charleston and Washington, D.C. offices on four separate occasions from March 17 through 20, 2014. On each of those occasions, Major left a voice message making violent threats against the Senator and his family members.
The investigation was conducted by the Federal Bureau of Investigation, United States Capitol Police, and West Virginia State Police. Assistant United States Attorney Haley Bunn handled the prosecution.
Lubbock Man Faces up to 30 Years in Federal Prison for Producing Child PornographyRead the Press Release
LUBBOCK, Texas — Jeffrey William McCall, 41, appeared earlier this week before U.S. Magistrate Judge Nancy M. Koenig and pleaded guilty to one count of production of child pornography, announced John R. Parker, Acting U.S. Attorney for the Northern District of Texas.
McCall faces a statutory penalty of not less than 15 years and not more than 30 years in federal prison, up to a $250,000 fine and up to a lifetime of supervised release. A sentencing date was not set; McCall remains in federal custody.
According to documents filed in the case, On April 7, 2015 McCall obtained a video of a minor child by hiding his cellular telephone in the bathroom and turning on the video camera when the child went into the bathroom to take a shower. McCall carefully positioned and aimed the lens of the camera with the intent of obtaining images of the girl.
The matter was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The FBI and the Lubbock Police Department investigated. Assistant U.S. Attorney Steven M. Sucsy is in charge of the prosecution.
Long Island Investment Advisor Sentenced to 55 Months in Prison for Ponzi SchemeRead the Press Release
CENTRAL ISLIP, NY – Earlier today, Paul Sullivan, a Long Island-based investment advisor, was sentenced in federal court to 55 months’ imprisonment. In November 2013, Sullivan pleaded guilty to wire fraud for engaging in a Ponzi scheme that defrauded investors of approximately $1.9 million. As part of the sentence, Sullivan was also sentenced to 3 years’ supervised release and ordered to pay $1.9 million in restitution to the victims of his fraud.
The sentence was announced by Kelly T. Currie, Acting United States Attorney for the Eastern District of New York; Raymond R. Parmer, Jr., Special Agent-in-Charge, U.S. Department of Homeland Security, Homeland Security Investigations (DHS-HSI), New York; and Shantelle P. Kitchen, Special-Agent-in-Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), New York.
“Sullivan abused the trust placed in him by his clients, many of whom considered him a close friend. Sullivan then dug a deeper hole for himself and his clients by orchestrating a Ponzi scheme that ensnared even more victims,” stated Acting United States Attorney Currie. “We are committed to bringing to justice those who seek to defraud the investing public.” Mr. Currie thanked DHS-HSI and the IRS-CI for their cooperation and assistance in the investigation and prosecution of this case.
Sullivan, a licensed financial advisor, made investments without his clients’ authorization that resulted in significant losses. When these losses were discovered, Sullivan admitted his misconduct to some clients and attempted to prevent them from alerting the authorities by promising to reimburse the clients for their losses. However, in order to obtain the money to reimburse these clients, Sullivan stole funds belonging to other clients. Sullivan falsely told the clients from whom he stole funds that he was investing their money in special private investments with high rates of return. When one of the Sullivan’s defrauded clients confronted him using a hidden camera, Sullivan admitted that he had used the client’s funds to repay another client’s investment losses, stating: “What I did was completely illegal, completely wrong . . . everything I’ve done was wrong, was illegal, I have nothing to say.”
The charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory, and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state, and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions, and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
Today’s sentence was imposed by United States District Judge Leonard D. Wexler.
The government’s case is being prosecuted by the Office’s Business and Securities Fraud Section. Assistant United States Attorney Daniel Spector is in charge of the prosecution.
The Defendant:
PAUL SULLIVAN
Age: 50
Franklin Square, New York
E.D.N.Y. Docket No. 12-CR-642
Lancaster Men Sentenced for Heroin Conspiracy Involving More Than Three-And-A-Half Pounds of HeroinRead the Press Release
Contact Person: Jay Richardson (803) 929-3000
Columbia, South Carolina ? United States Attorney Bill Nettles announced today that Joseph Shawn Chasteen (26) and Cody Dean Howard (20) were sentenced for their involvement in a heroin conspiracy to distribute more than three-and-a-half pounds of heroin. United States District Judge J. Michelle Childs sentenced Chasteen to ten years in federal prison and Howard to nine years.
In February 2014, a joint investigation by ATF, SLED, and the Lancaster County Sheriff’s Office led officers to a residence in Indian Land that was suspected to be involved in a heroin distribution conspiracy. The investigation revealed that persons involved in the conspiracy had obtained a large quantity of heroin in Charlotte and intended to distribute the heroin in Lancaster County. After days of surveillance, officers thwarted the conspiracy after only a small quantity of the heroin was distributed, arresting Chasteen and Howard in possession of more than 3 ½ pounds of heroin along with a sawed-off shotgun.
The case was investigated as part of the ongoing cooperation between the Lancaster County Sheriff, SLED and the Bureau of Alcohol, Tobacco, Firearms, and Explosives to remove violent drug dealers from the streets of Lancaster County. The case was prosecuted by Assistant United States Attorney Jay N. Richardson.
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Julian Marie Breslow Sentenced to 2 ½ Years ImprisonmentRead the Press Release
RALEIGH – United States Attorney Thomas G. Walker announced that yesterday in federal court, Chief United States District Judge James C. Dever III sentenced JULIAN MARIE BRESLOW , 53, of Fort Lauderdale, FL to 30 months imprisonment, followed by 3 years of supervised release.
BRESLOW was named in an Indictment filed on February 11, 2014 charging her with Major Fraud, False Statements, Wire Fraud, Mail Fraud, and Aggravated Identity Theft. On September 12, 2014, BRESLOW pled guilty to Count 3 of the Indictment, false statements to the United States in violation of 18 U.S.C. § 1001.According to the investigation, BRESLOW owned Pompano Masonry Corporation, one of the largest masonry companies in the United States, through a revocable trust. To give Pompano an edge in getting business, BRESLOW set up Breslow Construction LLC as a woman owned small business in the name of herself and her two daughters, one of whom was a minor at the time, the other was a law student. But Breslow Construction was never a separate, independent business from Pompano and therefore did not qualify as a small business. BRESLOW used Breslow Construction to apply for and receive over $30 million of masonry subcontracts on large federal projects. BRESLOW used her daughter’s identity to assist her in the fraud, in one case, having her daughter’s signature stamped on a $15 million contract without her knowledge or permission.
AUSA Bragdon stated, “The kind of fraud Breslow committed undermines the purpose and effectiveness of preferences given to small businesses. BRESLOW victimized her own family when she decided to use her daughters’ names in committing the fraud.”
"DCIS continues our aggressive investigative efforts, in partnership with other agencies, to ensure the integrity of all defense programs, to include military construction contracts, which ultimately benefit our dedicated Warfighters," said John Khin, Special Agent in Charge, Southeast Field Office, Defense Criminal Investigative Service.
Investigation of this case was conducted by the Defense Criminal Investigative Services, Naval Criminal Investigative Services, and Small Business Administration, Office of Inspector General. David Bragdon was the assistant U.S. Attorney assigned to the case.
Judge Sentences Crafton Man to 100 Months in Prison for Possessing and Distributing Child PornographyRead the Press Release
PITTSBURGH - A resident of Allegheny County, Pennsylvania, pled guilty and has been sentenced in federal court to 100 months imprisonment, followed by 15 years supervised release, on his convictions of distribution and possession of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.
Senior United States District Judge Gustave Diamond imposed the sentence on Brandon Quinn, 30, formerly of Crafton, Pa.
According to information presented to the court, on or about September 9, 2013, Quinn distributed images and videos in computer graphics files containing material depicting the sexual exploitation of minors. Quinn also was found to be in possession of visual depictions, namely, images and videos in computer graphics files, the production of which involved the use of minors engaging in sexually explicit conduct.
Assistant United States Attorney Jessica Lieber Smolar prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended Homeland Security Investigations for conducting the investigation which led to the successful prosecution of Quinn.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Jicarilla Apache Man Arraigned on Indictment Charging Him with Assaulting a Federally Commissioned Tribal OfficerRead the Press Release
ALBUQUERQUE – Lawrence Roybal, 53, a member of the Jicarilla Apache Nation who resides in Dulce, N.M., was arraigned today in federal court in Albuquerque, N.M., on an indictment charging him with assaulting a federal officer. Roybal entered a not guilty plea to the indictment and was ordered detained pending trial which has yet to be scheduled.
Roybal was arrested in May 2015, on a criminal complaint charging him with assaulting an officer with a dangerous weapon. According to the criminal complaint, Roybal attacked a Jicarilla Apache Tribal Police Officer with a pitchfork on May 11, 2015, in Dulce, N.M., which is within the Jicarilla Apache Indian Reservation in Rio Arriba County, N.M. Roybal was subsequently indicted on June 9, 2015, and charged with assaulting a federal officer who was engaged in the performance of his official duties. The indictment alleges that the tribal officer was commissioned as a special federal officer by the BIA at the time of the assault.
If convicted of the crime charged in the indictment, Roybal faces a maximum penalty of 20 years in federal prison. Charges in complaints and indictments are merely accusations. All criminal defendants are presumed innocent unless proven guilty beyond a reasonable doubt.
This case was investigated by the Farmington office of the FBI and the Jicarilla Apache Tribal Police Department. Assistant U.S. Attorney Raquel Ruiz-Velez is prosecuting the case.
Honduran National Sentenced for Illegal ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that LUIS FERNANDO MARTINEZ, 40, a citizen of Honduras, was sentenced after previously pleading guilty to a one-count Bill of Information for illegal reentry of a removed alien.
U.S. District Judge Helen G. Berrigan sentenced MARTINEZ to time served, 1 year of supervised release, and a $100 special assessment. MARTINEZ will be surrendered to the custody of the U.S. Immigration & Customs Enforcement for removal proceedings.
According to court documents, on or about March 4, 2015, MARTINEZ was found in the United States after having been officially deported and removed on or about February 1, 2013.
U.S. Attorney Polite praised the work of the United States Customs and Border Protection in investigating this matter. Assistant United States Attorney Irene González was in charge of the prosecution.
Founder of Commodities Firm Pled Guilty for Participating in Four Million Dollar Fraud SchemeRead the Press Release
A Palm Beach County businessman pled guilty for participating in a four million dollar commodities fraud scheme.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Ronald J. Verrochio, Inspector in Charge, U.S. Postal Inspection Service (USPIS), Miami Division, and Drew Breakspear, Commissioner, Florida Office of Financial Regulation (OFR), made the announcement.
Jeffrey Schuler, 54 of Boynton Beach, Florida pled guilty to one count of wire fraud, in violation of Title 18, United States Code, Section 1343. Sentencing for the defendant is scheduled for August 25, 2015, at 1:15 p.m., before U.S. District Judge William A. Dimitrouleas. At sentencing, the defendant faces a maximum term of imprisonment of 20 years.
According to court records, including the factual proffer, in or around early 2010, Schuler co-founded Liberty International Financial Services (“Liberty”) in Fort Lauderdale with Christopher Anzalone, who was charged separately in Case No. 14-20737-CR-FAM. Liberty employed brokers that solicited investors throughout the United States to make purchases of precious metals, such as gold, silver, or palladium. Liberty brokers represented to investors that investors’ monies would be used for the purchase of precious metals in silver, gold, and palladium. Based on representations made by brokers, prospective investors provided funds to Liberty for precious metals investments.
The court records further indicate that the defendant had responsibility at Liberty for executing precious metal trades. The defendant falsely and fraudulently represented to Liberty brokers that he was actually making precious metals trades for investors. In reality, from September 2010 to December 2011, the defendant executed almost no trades of precious metals. During this period, Liberty received approximately $4 million from investors and spent less than $200,000 in precious metals related trades. Instead, the money was used to pay old investors, to pay the defendant a substantial income, and to pay other Liberty brokers and personnel.
Anzalone previously pled guilty to one count of conspiracy to commit wire and mail fraud, in violation of Title 18, United States Code, Section 1349 and was sentenced to 15 years in prison on March 27, 2015.
Mr. Ferrer commended the investigative efforts of the FBI, USPIS, and OFR. The case is being prosecuted by Assistant U.S. Attorney Michael N. Berger.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former Shelby County Hospital CFO Sentenced in EHR Incentive CaseRead the Press Release
TYLER, Texas – The former Chief Financial Officer of Shelby Regional Medical Center has been sentenced to federal prison in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Joe White, 68, of Cameron, Texas, pleaded guilty on Nov. 12, 2014 to making a false statement and was sentenced to 23 months in federal prison today by U.S. District Judge Michael Schneider. White was also ordered to pay restitution in the amount of $4,483,089.09 to Medicare’s Electronic Health Record (EHR) Incentive Program.
According to information presented in court, White was the Chief Financial Officer for Shelby Regional Medical Center in Center, Texas, in addition to other hospitals owned and operated by Dr. Tariq Mahmood. White oversaw the implementation of electronic health records for the hospital and was responsible for attesting to the meaningful use of electronic health records in order to qualify to receive incentive payments under Medicare’s EHR Incentive Program. On Nov. 20, 2012, White knowingly made a false statement to Medicare falsely representing that the hospital was a meaningful user of electronic health records, when the hospital did not meet the meaningful use requirements. As a result, Shelby Regional Medical Center received $785,655.00 from Medicare. In total, hospitals owned by Mahmood were paid over $16 million under the Medicare and Medicaid EHR Incentive Programs. White was indicted by a federal grand jury on Jan. 22, 2014.
“The granting of EHR funds to individual and institutional providers was intended to modernize medical record storage and access. Unfortunately, there are individuals and institutions like Mr. White and his hospital whose only intent for EHR funds was to enrich themselves,” said Mike Fields, Special Agent in Charge of the Dallas region’s HHS – Office of Inspector General.
“I agree with SAC Fields,” said U.S. Attorney Bales. “The EHR Incentive Program was designed to enhance the delivery of excellent medical care to all Americans and especially for those citizens who live in underserved, rural areas like Shelby County. There is no doubt that Mr. White understood that purpose and yet, he intentionally decided to steal taxpayer monies and in the process, undermine and abuse this important program.”
This case was investigated by the U.S. Department of Health and Human Services – Office of the Inspector General (HHS-OIG), the Texas Office of the Attorney General – Medicaid Fraud Control Unit (OAG-MFCU), and the Federal Bureau of Investigation (FBI). This case is being prosecuted by Special Assistant U.S. Attorney Kenneth C. McGurk and Assistant U.S. Attorney Nathaniel C. Kummerfeld.
Any individuals with knowledge of these or other health care fraud violations are encouraged to contact the Department of Health and Human Services’ fraud hotline at 1-800-HHS-TIPS (447-8477).
Former Assistant Branch Manager of Credit Union Sentenced to 15 Months in Federal Prison for EmbezzlementRead the Press Release
Orlando, Florida – Senior U.S. District Judge G. Kendall Sharp today sentenced Male Yahaira Rivera (35, Orlando) to 15 months in federal prison for embezzlement from a federally insured credit union. She was also ordered to serve five years of supervised release, and to pay $258,000 in restitution. Rivera pleaded guilty on March 18, 2015.
According to court documents, Rivera was an Assistant Branch Manager of Fairwinds Credit Union. Over a period of about 10 months, she stole $258,000 in cash from the credit union, in 16 separate thefts, ranging in amounts from $2,000 to $40,000. Each of the thefts involved cash that was supposed to be deposited into an ATM machine or that had been removed from an ATM machine. Rivera used more than $44,000 as a partial payment for a Porsche.
This case was investigated by the United States Secret Service. It was prosecuted by Assistant United States Attorney Roger B. Handberg.
Florida Physician Agrees to Pay $4 Million and to Accept a 5-Year Exclusion from Medicare to Resolve False Claims Act AllegationsRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Shimon R. Richmond, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), Miami Region, announced that Donald C. Proctor, Jr., M.D., a Mohs surgeon and facial plastic surgeon practicing in Vero Beach, Florida, and Grove Place Surgery Center, LLC, an ambulatory surgical center managed by Dr. Proctor, have agreed to pay $4 million to resolve allegations that they violated the False Claims Act by billing Medicare for Mohs surgeries and other surgical procedures that Dr. Proctor either did not perform or were medically unnecessary. Dr. Proctor also agreed to be excluded from Medicare, Medicaid, and all federally funded health care programs for at least five years.
“The settlement announced today demonstrates this office’s commitment to aggressively pursue physicians who put their own financial self-interest over a duty to their patients and thereby raise the cost of health care for all of us as patients and taxpayers,” said Wifredo A. Ferrer, United States Attorney for the Southern District of Florida. “We will not allow physicians to put patients at risk by performing unnecessary procedures, or permit them to make up phantom claims to increase their reimbursements from Medicare.”
“Any time greed replaces medical necessity as the primary factor in performing unnecessary, invasive procedures on Medicare beneficiaries, both patient health and taxpayer funds are compromised,” said Special Agent in Charge Shimon R. Richmond of the U.S. Health and Human Services Office of Inspector General. “Dr. Proctor received a 5-year exclusion from participating in Medicare by placing his patients and the integrity of the Medicare program at risk just to enrich himself.”
The settlement resolves allegations made in a lawsuit filed by Ferdinand F. Becker, M.D., a facial plastic surgeon and former Mohs surgeon who referred patients to Dr. Proctor, and Linda Wildes, who worked as Dr. Proctor’s histology technician for over eight years. They filed under the qui tam, or “whistleblower,” provisions of the False Claims Act, which permit private parties to sue on behalf of the government and receive a share of any recovery. The act also authorizes the government to intervene in and assume primary responsibility for litigating the lawsuit, as the government has done in this case. Dr. Becker and Ms. Wildes will receive $920,000.
Based on an extensive investigation, the United States alleged that Dr. Proctor would routinely see patients who had been referred to him with a confirmed skin cancer lesion and falsely inform them that they had additional lesions requiring Mohs surgery, even though the supposed additional lesions had not been confirmed through a biopsy as cancerous or simply did not exist. Mohs surgery is a specialized and expensive surgical procedure for removing certain types of skin cancers in specific areas of the body, including the face. The surgery is performed in stages in which the surgeon removes a single layer of tissue and then, after a microscopic evaluation of the excised tumor, performs additional stages, if necessary, until all of the cancer is removed. The United States further alleged that, solely to increase his Medicare reimbursement, Dr. Proctor would routinely perform three to four stages (or many more in some cases) of Mohs surgery, even though that is far outside the norm and was often not necessary. This required patients to remain at Grove Place Surgery Center for prolonged periods of time and be subjected to additional surgeries they did not need.
Finally, based on its investigation, the United States alleged that Dr. Proctor was also defrauding Medicare by routinely billing for unnecessary or nonexistent surgeries to close up the wounds allegedly left by the Mohs surgeries. These reconstructions, called adjacent tissue transfers, are complicated and often time-consuming procedures physicians sometimes use to close a defect resulting from the removal of a lesion on a patient’s skin. Dr. Proctor billed Medicare for these procedures in connection with virtually every Mohs surgery he claimed to have performed, even though, the United States alleged, it would have been physically impossible in most cases for him to have performed them.
The settlement was the result of a coordinated effort by the United States Attorney’s Office for the Southern District of Florida, HHS-OIG, Federal Bureau of Investigation (FBI), and Defense Criminal Investigative Service. The case was investigated and the settlement negotiated by Assistant U.S. Attorney Susan Torres. The exclusion agreement was negotiated by OIG Senior Counsel Karen Glassman.
The case is captioned United States ex rel. Becker & Wildes v. Donald C. Proctor, Jr., M.D. et al., No. 11-14214-Civ-Martinez (S.D. Fla.). The claims asserted against Dr. Proctor and Grove Place Surgery Center are merely allegations. There has been no determination of liability in this matter.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Federal Operation Convicts Nine Montanans of More Than Half a Million Dollars in Social Security FraudRead the Press Release
U.S. Attorney Michael W. Cotter for the District of Montana announced today the culmination of a federal operation that found nine Montanans engaged in Social Security fraud. Dubbed “Operation Save our Social Security,” Operation S.O.S. uncovered approximately a half-million dollars in fraudulent payments to individuals in Montana, which occurred when the individuals provided false information or made misrepresentations on their paperwork for Supplemental Security Income (SSI), which also impacts eligibility for other federal assistance. In total, the operation uncovered approximately $390,000 in social security fraud, $107,288 in Medicaid fraud and $34,500 in Supplemental Nutrition Assistance Program (SNAP) and Temporary Assistance for Needy Families (TANF) fraud. The individuals have been ordered to pay back the money they stole, including the final individual, Caroline Bighair, who was sentenced today to pay back $23,424 and to three years of supervised release. One recipient of the federal benefits agreed to pay back the money under an agreement with the U.S. Attorney’s Office due to personal circumstances.
“Supplemental Security Income relies on the truthfulness and personal integrity of the people who apply for and receive it,” said U.S. Attorney Cotter. “When people get greedy and lie to the government in order to get more money than they deserve, the people who actually qualify and need the money to survive are harmed.”
“These individuals repeatedly lied, cheated and stole from some of the most vulnerable residents of Montana,” said Special Agent in Charge Wilbert Craig of the Social Security Administration/Office of Inspector General Denver Field Division. “In many instances, the victims were their own family and left to fend for themselves. These are real crimes, impacting real lives, and extending beyond the victims to every U.S. taxpayer. I am proud of our combined efforts with the U.S. Attorney’s Office.”
Known as Supplemental Security Income (SSI), the money is drawn from general federal tax revenue and is designed to help aged, blind and disabled citizens who have little or no income. SSI provides cash to meet basic needs for food, clothing and shelter. Applications for Supplemental Security Income also impact eligibility for other federal monies, including Medicaid, survivor benefits, and SNAP, also known as food stamps.
The following individuals were convicted as part of the operation: Caroline Big Hair, Vicky Blair, Tonya Brackett, Meghan Gontz, Nelson Grandchamp, Earline Pritchard, Georgia Wetsit, Bonnie Wingo. Another individual agreed to pay back the money through a diversion program due to personal circumstance. Examples of fraud include misrepresentations about whether a recipient was married, the composition of a recipient’s household, and how much money the recipient was making as income. Those misrepresentations directly impacted whether or not the individuals were eligible to receive federal money which, in some cases, was in excess of $1,000 per month from the federal government.
The operation was a collaborative effort between U.S. Attorney’s Office for the Distrcit of Montana, the Social Security Administration and the Office of Inspector General. If you suspect that someone is fraudulently receiving federal money, call to report it at 1-800-269-0271 or log on to http://oig.ssa.gov/report.
Federal Judge Sentences Milwaukee Pimp to 20 Years ImprisonmentRead the Press Release
United States Attorney James L. Santelle announced that United States District Judge Lynn S. Adelman has sentenced Milwaukee resident Troy Randle, age 37, to 20 years imprisonment following Randle’s conviction on two federal sex-trafficking counts. The sex-trafficking counts involved two separate minor females.
Evidence introduced at Randle’s sentencing showed that he began prostituting both of the child-victims when they were just 14 years old and that he prostituted them through their 17th birthdays until his arrest by federal authorities in January of 2014. Further evidence introduced by the United States showed that Randle’s sex trafficking of these two minors took place in Milwaukee through street prostitution and at hotels; in Chicago, Illinois; Dubuque and Cedar Rapids, Iowa; Ft. Wayne, Indiana; and South Dakota. Randle ordinarily accompanied the victim-girls to these cities and provided the transportation. Randle controlled them through false expressions of love and loyalty as well as through his physical abuse of both. Randle advertised the prostitution services of both victims through postings to Backpage.com.
In making this public announcement, United States Attorney Santelle stated: “The sentence most appropriately imposed by Judge Adelman on this defendant is a genuine reflection of both the horrific victimization suffered by these two girls and the terrible impact that this type of criminal behavior has on the life and the well-being of our communities.” Santelle stated further: “The investigation and prosecution of sex-trafficking cases in the Eastern District of Wisconsin is among the highest priorities of my office, and we will continue to pursue the perpetrators of this heinous conduct with all of the resources available to us.”
Randle was prosecuted by Assistant United States Attorney Joseph R. Wall. United States Attorney Santelle commended AUSA Wall and the partnered law enforcement agencies responsible for investigating Randle’s trafficking enterprise—namely, the Federal Bureau of Investigation, the Milwaukee Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
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Federal Inmate Pleads Guilty to AssaultRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that an inmate of the U.S. Medical Center for Federal Prisoners in Springfield, Mo., pleaded guilty in federal court today to assaulting another inmate.
Dean Kinningham, 52, pleaded guilty before U.S. District Judge M. Douglas Harpool to assault with the intent to commit murder.
Kinningham admitted that he assaulted another inmate, Gary Brown, by stabbing and slashing him with a razor blade on June 4, 2014. Prison officials responded to an emergency call in the prison ward and discovered Brown with multiple lacerations on his face and neck. Kinningham, who had blood on his shirt, was also present. Kinningham stated that “this is all me,” referring to the blood in the hallway and on his clothes. Brown was treated on the scene and transported to a local Springfield hospital for treatment.
Kinningham is currently serving a 262-month sentence for armed pharmacy robbery, with a release date of March 31, 2030. Brown is currently serving a 170-month sentence for conspiracy to possess crack cocaine with the intent to distribute, with a release date of Feb. 25, 2015.
Under federal statutes, Kinningham is subject to a sentence of up to 20 years in federal prison without parole, plus a fine up to $250,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Randall D. Eggert. It was investigated by the FBI and the U.S. Bureau of Prisons.
Fair Oaks Man Found Guilty of Mortgage Fraud After 5-Day TrialRead the Press Release
SACRAMENTO, Calif. — Today, after a five-day trial, a federal jury found Sacramento area loan broker and real estate agent, Anthony Salcedo, 34, of Fair Oaks, guilty of one count of conspiracy to commit mail fraud and four counts of mail fraud for his involvement in a mortgage fraud scheme, United States Attorney Benjamin B. Wagner announced.
According to court documents and evidence produced at trial, Anthony Salcedo worked in the real estate industry beginning in 2000, was licensed as a real estate agent in 2004 and as a mortgage broker in 2006, and worked for two different mortgage lenders for five years. When selling his personal properties in 2005 and 2006, Salcedo worked with licensed mortgage broker Sean McClendon, 49, of Fair Oaks, and Anthony Williams, 47, previously of Memphis, Tennessee, to find buyers. As an incentive to complete the sales transactions, Salcedo paid kickbacks to the buyers and to McClendon outside of escrow. The payments were never disclosed to the lenders as part of the purchase and sale agreements, and the buyers’ income and assets were falsified in order to qualify for the loans.
Ultimately, substantial sums were exchanged outside of escrow as part of this scheme, equaling in one instance as much as 16 percent of the total purchase price of the property. The exchange of money outside of escrow reduces the fair market value of a property to below what is reflected in the contract price and impacts the appraised value of a home. At least two of the buyers declared bankruptcy and lost not only their investment properties, purchased by way of the scheme, but their own homes. In all, approximately $2.6 million in fraudulently obtained loans were involved in the scheme, while Salcedo and his family got out from under their $1.6 million in mortgage debt at a time when Salcedo knew the real estate market was slowing down.
“Much of the mortgage fraud that was so common in this region during the 2005-2008 timeframe was associated with dishonest real estate and mortgage financing professionals such as Anthony Salcedo and his co-defendants in this case,” said U.S. Attorney Wagner. “Accordingly, in our continuing effort to restore integrity and confidence to the residential real estate market, we have focused our enforcement efforts on identifying and prosecuting those professionals and the persons who aided and benefited from major mortgage fraud schemes.”
“To those involved in committing mortgage fraud, today’s verdict should send a clear message that this type of activity will have criminal consequences,” said Andrew J. Toth, Acting Special Agent in Charge, IRS-Criminal Investigation. “This is a case about dishonesty and collusion fueled by greed. While this verdict cannot reverse the damage caused by the defendants, it highlights the ongoing commitment of IRS-CI and our law enforcement partners to hold accountable those involved in these types of crimes.”
Co-defendant Sean McClendon pleaded guilty on October 12, 2013, and is awaiting sentencing. Co-defendant Anthony Williams pleaded guilty, was sentenced to two years and nine months in prison, and is currently serving that sentence.
Salcedo is scheduled to be sentenced on September 10, 2015, by Chief United States District Judge Morrison C. England Jr. The maximum statutory penalty for mail fraud and the related conspiracy is 30 years in prison, a $1 million fine, or both. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case is the product of an investigation by the Internal Revenue Service‑Criminal Investigation and the Federal Bureau of Investigation. Assistant United States Attorneys Jean M. Hobler and Marilee L. Miller are prosecuting the case.
Eugene Woman Sentenced to Federal Prison for Delivery of Heroin Which Contributed to Overdose DeathRead the Press Release
EUGENE, Ore. – Megan Suzanne Jacob, 25, of Lane County, Oregon, was sentenced on Wednesday, June 17, 2015, by U.S. District Judge Michael McShane to 60 months in prison for conspiracy to distribute methamphetamine and heroin. Following her release from prison, Jacob will be on supervised release for five years.
Following a drug overdose death, the Lane County Interagency Narcotics Team and the FBI investigated the source of supply of the drugs taken by the deceased and determined that Jacob had sold, and injected, the heroin that contributed to the death. In July 2014, law enforcement made a series of undercover drug buys of methamphetamine and heroin from Jacob for which she was ultimately arrested and pled guilty
Law enforcement determined that on the day of the overdose, Jacob had been introduced to the victim, a first-time heroin user, through a mutual friend. The two later met at a hotel where she sold the deceased heroin, and administered an injection. Later that same night, the deceased asked for more heroin. Jacob gave another injection to the deceased, who began to overdose. Jacob left the hotel, apparently while the deceased was still alive, and did not call 9-1-1. The deceased was later discovered in the hotel room. After a medical examination, the cause of death was determined to be a mixed drug overdose of heroin and methamphetamine. Because the deceased had used a significant amount of methamphetamine earlier in the day that was obtained from another source, the death could not solely be attributed to Jacob and her distribution of heroin.
Acting U.S. Attorney Billy J. Williams said that, “Heroin is a deadly drug that causes far too many tragic and needless deaths. The U.S. Attorney’s Office is committed to working with our federal and local law enforcement partners to fight this epidemic, and to hold heroin traffickers accountable.”
Jacob has prior felony convictions for possession of heroin and methamphetamine and failure to appear.
The investigation of this case was conducted by the Lane County Interagency Narcotics Team and the Eugene Resident Agency office of the FBI. The case was prosecuted by Assistant U.S. Attorney Jeffrey Sweet.