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5 June 2015
Five Lawyers in Manhattan U.S. Attorney’s Office Recognized at Annual U.S. Attorney Awards CeremonyRead the Press Release
PREET BHARARA, the United States Attorney for the Southern District of New York, announced that the Department of Justice held its 31st annual Executive Office for United States Attorneys (EOUSA) Director’s Awards Ceremony yesterday, during which 160 award recipients from 31 districts were recognized for their dedication to carrying out the mission of the Department of Justice. Among the award recipients were Assistant U.S. Attorneys Howard S. Master, Andrew D. Goldstein, Robert W. Yalen, Tara M. La Morte, and Arastu K. Chaudhury from the U.S. Attorney’s Office for the Southern District of New York. Attorney General Loretta Lynch and Executive Office for U.S. Attorneys (EOUSA) Director Monty Wilkinson presided at yesterday’s ceremony in the Great Hall at the Robert F. Kennedy Department of Justice Building in Washington, D.C.
In her prepared remarks, Attorney General Lynch told the attendees: “Our honorees include career executives and supervisors; Assistant U.S. Attorneys and Special Assistant U.S. Attorneys; appellate attorneys and law enforcement officials; administrators, paralegals, and public affairs officers. These individuals, and so many others, have faced daunting and sometimes dangerous challenges. They have dedicated their leadership and their expertise, their time and their energy, to the service of their mission. And they have remained devoted, at all times, to the high ideals and deeply-held values that animate our country and our cause.”
Manhattan U.S. Attorney Preet Bharara said: “This year’s Director’s Award winners were recognized for their commitment to justice. They spearheaded cases that recouped hundreds of millions of dollars defrauded from New York City, protected the nation’s environment by holding a major polluter financially liable, and secured legally guaranteed pension benefits for City employees who served in the nation’s armed forces. Their efforts exemplify the tradition of excellence of this Office, and I congratulate them for these well-deserved honors.”
Howard S. Master and Andrew D. Goldstein are recognized for their investigation and prosecution of the CityTime case, the largest municipal fraud and kickback scheme in history. Through a dogged investigation that involved tracing payments through more than 150 foreign and domestic accounts, poring through hundreds of thousands of emails and project documents, interviewing more than 100 witnesses, and securing cooperation from two key insiders, Mr. Master and Mr. Goldstein were able to prove that the City of New York’s project manager and an executive of one of the nation’s largest government contractors defrauded the City, collected tens of millions of dollars in kickbacks, and laundered their proceeds through an intricate web of corrupt subcontractors and shell accounts. The prosecution resulted in eight convictions, a deferred prosecution agreement with the contractor, and record forfeitures of over $550 million.
Robert W. Yalen is recognized for his outstanding work representing the United States in the bankruptcy proceeding of Tronox, Inc., which resulted in two extraordinary environmental settlement agreements, including one for $5.15 billion that constitutes the largest recovery of funds for environmental clean-up ever by the Department of Justice. Through these settlement agreements, the Kerr-McGee Corporation was compelled to pay for 85 years of environmental contamination across the nation, a legacy that Kerr-McGee had attempted to evade though a fraudulent conveyance of assets. Mr. Yalen showed extraordinary negotiation, litigation, and case management skills by overseeing the creation of five environmental clean-up trusts; serving as lead counsel for the United States in a complex fraudulent conveyance matter; coordinating with the Environment and Natural Resources Division, seven client agencies, 22 states, and the Navajo Nation; and representing the United States in negotiations with the defendants and the Tronox estate.
Tara M. La Morte and Arastu K. Chaudhury are recognized for their extraordinary performance in a class-action lawsuit against the City of New York, culminating in a settlement providing monetary and injunctive relief to all employees of the City who have served their country in the armed forces. In the wake of 9/11, thousands of City service-member employees were deployed around the world, often multiple times and for substantial duration. However, the City refused to calculate the service members’ pensionable earnings in accordance with USERRA, the law designed to protect against discrimination on account of military service. The City’s policies caused these service members to receive fewer pension benefits than they would have received but for serving their country. Beating back the defendants’ numerous aggressive attempts to avoid any liability, Ms. La Morte and Mr. Chaudhury obtained full monetary recovery for all service-member employees, as well as significant policy changes to ensure that the City acts lawfully going forward.
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EOUSA provides oversight, general executive assistance, and direction to the 94 United States Attorneys’ offices around the country. For more information on EOUSA and its mission, visit http://www.justice.gov/usao.
Federal indictment, arrests disrupt Pleasants County methamphetamine manufacturing operationRead the Press Release
WHEELING, WEST VIRGINIA – Multiple individuals have been arrested pursuant to a federal indictment stemming from a methamphetamine manufacturing operation based in Pleasants County, West Virginia, United States Attorney William J. Ihlenfeld, II, announced.
A federal grand jury returned an indictment earlier this week charging Donald William Butler, 56, Bonnie Jean Butler, 54, Garland Samuel Butler, 50, Travis Michael Butler, 21, Samuel Scott Butler, 23, all of Saint Marys, West Virginia, and Kate Lynn Baker, 20, of Friendly, West Virginia, with manufacturing methamphetamine.
The defendants utilized a residence in Pleasants County to manufacture methamphetamine over an extended period of time. They also were repeatedly discovered in possession of medications containing pseudoephedrine, a common ingredient in methamphetamine.
All six defendants are charged with one count of “Methamphetamine and Pseudoephedrine Conspiracy,” for which they each face up to 20 years in prison and a fine of up to $1,000,000.
Donald and Bonnie Butler are each further charged with: • One count of “Maintaining Drug-Involved Premises - Aiding and Abetting,” for which they each face up to 20 years in prison and a fine of up to $250,000, and
• One count of “Possession of Material used in the Manufacture of Methamphetamine - Aiding and Abetting,” for which they each face up to 10 years in prison and a fine of up to $250,000.Garland and Travis Butler are each further charged with four counts of “Possession of Pseudoephedrine to be Used in the Manufacture of Methamphetamine.” They each face up to 20 years in prison and a fine of up to $250,000 on each of the four counts.
Kate Baker is further charged with four counts of “Possession of Pseudoephedrine to be Used in the Manufacture of Methamphetamine,” and one count of “Attempt to Possess Pseudoephedrine to be Used in the Manufacture of Methamphetamine.” She faces up to 20 years in prison and a fine of up to $250,000 on each of the five counts.
Samuel Butler is further charged with three counts of “Possession of Pseudoephedrine to be Used in the Manufacture of Methamphetamine.” He faces up to 20 years in prison and a fine of up to $250,000 on each of the three counts.
Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Shawn Adkins is prosecuting the case on behalf of the government. The West Virginia State Police and the Pleasants Count Sheriff’s Department are investigating.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Federal Jury Finds Fort Worth Man Guilty of Interfering with Southwest Airlines Flight CrewRead the Press Release
AMARILLO, Texas — Following a four-day trial before U.S. District Judge Mary Lou Robinson, a federal jury has convicted a Fort Worth, Texas, man on the felony offense of interference with a flight crew, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
The jury deliberated less than three hours before convicting Zachary Marshall Ziba, 25, on the charge that was outlined in an indictment returned in February 2015 in Amarillo. Ziba, who will remain on bond, faces a maximum statutory penalty of 20 years in federal prison and a $250,000 fine.
The government presented evidence at trial that on January 18, 2015, Ziba was on Southwest Airlines Flight 958 from Denver, Colorado, to Dallas. During that flight, Ziba intimidated a flight attendant and a flight crewmember by being disruptive, disobedient and by screaming profanities. The flight was diverted to Amarillo so that law enforcement could remove Ziba from the flight.
The FBI, the Amarillo Police Department and Rick Husband Amarillo International Airport Police investigated. Assistant U.S. Attorneys Joshua Frausto and Timothy Hammer are prosecuting the case.
Federal Court Prohibits Nevada Tax Preparer from Preparing Returns Containing Foreign Earned Income ExclusionRead the Press Release
A federal court has barred a North Las Vegas, Nevada, woman and her business from preparing federal tax returns that contain or involve foreign earned income and from promoting the exclusion of foreign earned income to others, the Justice Department announced today.
The civil injunction order, to which Sheila Bunting consented, was entered by U.S. District Judge James C. Mahan of the District of Nevada. The injunction also bars Bunting’s business, 5 Star Tax LLC, from continuing to prepare tax returns that contain or involve foreign earned income, and from promoting the exclusion of foreign earned income to others.
According to the complaint, Bunting inappropriately attempted to exclude foreign earned income from the calculation of her customers’ federal tax liabilities, which understated her customers’ correct tax liabilities or inflated improper refunds. Typically, U.S. citizens may exempt some foreign earned income from the calculation of gross income if they are present in a foreign country for at least 330 full days out of 12 consecutive months. This period can be waived when the Secretary of the Treasury determines, after consultation with the Secretary of State, that individuals were required to leave a foreign country due to war, civil unrest or other conditions that preclude the normal conduct of business, among other things. In implementing this waiver provision, each year the Secretary of the Treasury publishes a list of countries that have been determined eligible for waiver requests. According to the suit, Bunting disregarded the published list of waiver-eligible countries in filing the exclusion of foreign earned income on behalf of her customers.
The injunction requires Bunting to provide a list of customers that identifies by name, social security number, address, e-mail address, telephone number and tax periods, all persons for whom she has prepared federal tax returns or claims for refund since Jan. 1, 2012, that reference foreign earned income.
Return preparer fraud is one of the IRS’s Dirty Dozen Tax Scams for 2015. The IRS has some tips on its website for choosing a tax preparer, and has launched a free directory of federal tax preparers. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers and tax scheme promoters. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on here. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Eagle Butte Man Sentenced for Felony Child Abuse and Aiding and AbettingRead the Press Release
Acting United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, man convicted of Felony Child Abuse and Aiding and Abetting was sentenced on May 29, 2015, by U.S. District Judge Roberto A. Lange.
Francis Swan, age 25, was sentenced to 30 months in custody, 2 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
On or about October 18, 2014, the defendant’s 20-month-old son died as a result of blunt force trauma to the child’s head. Two months prior, Swan and Jordyn Blue Coat, his wife and co-defendant, had regained custody of their baby from a Mobridge couple who had been taking care of him since his birth. He was a difficult baby who frequently cried and was hard to console. This became difficult for the mother, and to some extent, for Swan. During the last two months of his life, the child was abused, tortured, and cruelly punished by Jordan Blue Coat for his fussy behavior.
After the child’s death, an autopsy found that he had died from blunt force trauma to his skull, which caused a subdual hemorrhage and in turn led to bilateral cerebral brain failure. But in addition to the head trauma, the child had multiple burns, contusions, abrasions, and injuries all over his body, which included chronic and acute bone fractures.
While Swan did not cause these injuries, he exposed the child to this physical abuse by the child’s mother and also failed to seek medical attention and treatment for the child’s many injuries, including the bone fractures.
This case was investigated by the Federal Bureau of Investigation, the South Dakota Department of Social Services, and the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Mikal Hanson prosecuted the case.
Swan was immediately turned over to the custody of the U.S. Marshals Service to begin serving his sentence.
District Man Sentenced to More Than 43 Years in Prison for Attacking Woman in Her HomeRead the Press Release
WASHINGTON – Demarco Myles, 21, was sentenced today to 43 years and three months in prison on numerous charges, including assault with intent to kill while armed, attempted first-degree sexual abuse while armed, and mayhem while armed, stemming from an attack in which he forced his way into a woman’s apartment, Acting U.S. Attorney Vincent H. Cohen, Jr. announced.
Myles, of Washington, D.C., pled guilty in January 2015 to a total of 10 charges in the Superior Court of the District of Columbia. For one of the 10 offenses – attempted first-degree sexual abuse while armed - he entered what is known as an Alford plea. Under such a plea, the defendant does not admit the allegations, but agrees that the government has enough evidence to secure a conviction. He was sentenced by the Honorable Rhonda Reid Winston. Upon completion of his prison term, Myles will be placed on 20 years of supervised release. Myles also will be required to register as a sex offender for the rest of his life.
“This home invasion was calculated and brutal,” said Acting U.S. Attorney Cohen. “After Demarco Myles forced his way into the victim’s apartment, he tried to rape her and stabbed her repeatedly in the eyes and face. The people of the District of Columbia are safer with the perpetrator of this monstrous attack behind bars.”
According to the government’s evidence, in the early afternoon hours of Oct. 26, 2012, Myles gained entry to a secured apartment building in Northeast Washington. Once inside, he was able to take the elevator by riding with a tenant, who had a card-key to the elevator.
After getting off the elevator, Myles began knocking on doors. When he got to the victim’s apartment, she opened her door a crack to see who was knocking. Myles forced his way inside, knocking her to the floor. She began screaming, and Myles brandished a knife, held it to her throat, and ordered her to stop or he would kill her. He then forced the victim into her bathroom, where he attempted to rape her at knifepoint. Before he could, however, the victim fled into her bedroom and tried to shut herself inside a walk-in closet. Myles overpowered her, forcing his way into the closet, where he began stabbing, kicking and punching the victim.
By the time he finished, Myles had stabbed the victim more than 20 times, including in both eyes, her face and neck, and on her arms and legs. Myles left her lying on her floor, bleeding and unconscious, with life-threatening wounds. He then stole items from her apartment and left.
The victim, remarkably, regained consciousness, crawled across her floor to her phone and was able to call 911. The police and ambulance crew were able to get to the victim before she bled to death. She spent the next several weeks in a hospital, undergoing several surgeries, but survived. As a result of the wounds that Myles inflicted, the victim has had to undergo months of physical therapy and still suffers some limitations.
After the attack, the Metropolitan Police Department (MPD) posted footage from the apartment building’s security camera, trying to determine who committed this attack. Following up on investigative leads, MPD secured a search warrant for Myles’s home, where they recovered items that he stole from the victim’s apartment, as well as a pair of his pants that were covered in blood. DNA testing established that the blood on his pants belonged to the victim.
Myles has been in custody since his arrest on Nov. 3, 2012.
In announcing the sentence, Acting U.S. Attorney Cohen commended the work of members of MPD’s Sexual Assault Unit, Criminal Investigations Unit, and Fifth District, who investigated the case. He also expressed appreciation for the support of Kristina Rose, Deputy Administrator of the Department of Justice’s Office for Victims of Crime. He acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Jason Manuel, D’Yvonne Key, and Joyce Arthur; Jelahn Stewart, Chief of the Victim/Witness Assistance Unit; Victim/Witness Advocates Melissa Milam and Elsa Resendiz; David Foster, La June Thames and Katina Adams-Washington, also of the Victim/Witness Assistance Unit; Information Technology Specialist Jeanie Latimore-Brown; Intelligence Specialist Sharon Johnson; Legal Intern Allison Denton, and Criminal Investigators Steve Cohen and Durand Odom. He also commended the work of Assistant U.S. Attorneys Elizabeth Trosman, Chrisellen Kolb, and Elizabeth Danello of the Appellate Section, for assistance on legal issues, and Assistant U.S. Attorney Colleen Kennedy, for assistance on mental health-related issues. Finally, he expressed appreciation for the work of Assistant U.S. Attorneys Andrea Hertzfeld, John L. Hill and Peter V. Taylor, who investigated and prosecuted this case.
District Man Sentenced to 28 Years in Prison for Armed Home Invasion in Northeast WashingtonRead the Press Release
WASHINGTON – Gregory Gantt, 21, of Washington, D.C., was sentenced today to 28 years in prison for his role in an armed home invasion that took place in October 2013 in Northeast Washington, announced Acting U.S. Attorney Vincent H. Cohen, Jr.
Gantt pled guilty in August 2014, in the Superior Court of the District of Columbia, to charges of conspiracy to commit a crime of violence while armed, first-degree burglary while armed, first-degree theft, tampering with physical evidence, and second-degree burglary. He was sentenced by the Honorable William M. Jackson. Upon completion of his prison term, Gantt will be placed on five years of supervised release.
According to the government’s evidence, Gantt and his accomplices, who were wearing ski masks, carried out the crimes at about 2:30 a.m. on Oct. 3, 2013. They saw a taxicab dropping off the victim in the 5700 block of Blaine Street NE. They followed the victim into his home. Once inside, they held the victim, the victim’s fiancé, and the victim’s mother at gunpoint for approximately 40 minutes while they ransacked the home and stole various items. Those items included cash, electronics, and the fiancé’s engagement ring, which the fiancé unsuccessfully tried to hide from the defendants during the burglary.
Gantt and the other assailants left the home in two vehicles that belonged to the victims and deposited the proceeds from the burglary inside a vacant home on Raleigh Street SE. Worried that the police might recover fingerprints from the vehicles they had stolen, the men then drove the vehicles into a field adjacent to an elementary school on Alabama Avenue SE, set the vehicles on fire, and retreated on foot to the vacant home on Raleigh Street SE.
Gantt was wearing a GPS tracking device in connection with his supervised release in an unrelated robbery case. Members of the Metropolitan Police Department (MPD) used data generated by that device to track the defendants to the home on Raleigh Street SE. The police barricaded the residence and ultimately arrested the defendants, including Gantt, in or near the residence. The police also recovered most of the proceeds of the burglary, along with several ski masks, from the Raleigh Street home. The police did not recover the engagement ring.
Two others are serving prison terms for their roles in the various crimes, and a third is awaiting sentencing. Andre Townsend, 20, of Washington, D.C., pled guilty to armed robbery, first-degree burglary, tampering with physical evidence, and unlawful entry and was sentenced in August 2014 to eight years in prison. Darnell Mason, 22, of Washington, D.C., was found guilty by a jury of obstruction of justice and related actions he took following the armed home invasion; he was sentenced in February 2015 to 22½ years in prison. Shareem Hall, 21, of Washington, D.C., pled guilty to charges of conspiracy to commit a crime of violence while armed, first-degree burglary while armed, first-degree theft, tampering with physical evidence, and second-degree burglary. He has not yet been sentenced.
In announcing today’s sentence, Acting U.S. Attorney Cohen praised the work of the detectives and officers who investigated the case for the Metropolitan Police Department. He also acknowledged the efforts of those who worked on the case for the U.S. Attorney’s Office, including Paralegal Specialists Richard Cheatham and Antoinette Sakamsa, Litigation Technology Specialists Aneela Bhatia and Leif Hickling, witness advocates Jim Brennan and Jennifer Clark, and former intern Harris Davidson. Finally, Acting U.S. Attorney Cohen acknowledged the efforts of Assistant U.S. Attorneys Ben Schrader and Karen Seifert, who investigated and prosecuted the case.
Developer Who Falsified Loan Documents Submitted to Westsound Bank Sentenced to Five Years in Prison for Bank Fraud and Filing False Tax ReturnsRead the Press Release
A King County man who fled to Moldova, in Eastern Europe before being indicted by a federal grand jury for loans fraudulently obtained from Westsound Bank, was sentenced today in U.S. District Court in Seattle to five years in prison, announced U.S. Attorney Annette L. Hayes. ALEKSANDR KRAVCHENKO, 36, pleaded guilty in March 2015 to conspiracy to commit bank fraud and filing a false income tax return. His wife, GALINA KRAVCHENKO, 35, was sentenced to just over five months in prison and one year of supervised release following her plea to filing a false income tax return. The couple profited from a mortgage fraud scheme in which ALEKSANDR KRAVCHENKO submitted phony loan applications to Westsound Bank. GALINA KRAVCHENKO acted as the real estate agent in the scheme earning large commissions on the fraudulent sales. ALEKSANDR KRAVCHENKO’s plea agreement estimates the loss amount on the bank fraud scheme at more than $10 million, and the tax loss on the false returns at more than $370,000. Chief U.S. District Judge Marsha J. Pechman imposed three years of supervised release on ALEKSANDR KRAVCHENKO.
According to records filed in the case, the KRAVCHENKOs were indicted in May 2009 for an extensive bank fraud scheme involving straw buyers and false statements on mortgage applications. According to facts admitted in the plea agreements, ALEKSANDR KRAVCHENKO had his wife GALINA, a real estate agent, locate real property that was available for purchase. ALEKSANDR KRAVCHENKO then recruited otherwise unqualified buyers to participate in purchasing and building on the properties. ALEKSANDR KRAVCHENKO submitted false and fraudulent construction loan applications and related documents to Westsound Bank, thereby causing Westsound Bank to make unsound loans. A portion of the fraudulently-obtained loan proceeds were diverted for ALEKSANDR KRAVCHENKO’s personal use and benefit, and to further the fraud scheme. GALINA KRAVCHENKO made substantial real estate commissions on the deals. ALEKSANDR KRAVCHENKO submitted 55 loan packets to Westsound Bank worth $49 million. Ultimately the bank suffered a $10.7 million loss on the loans and was closed by regulators on May 8, 2009.
Aware of the investigation, but before the indictment was returned, the two KRAVCHENKOs fled the U.S. and went to Moldova where ALEKSANDR KRAVCHENKO retains citizenship. The two were out of the reach of U.S. law enforcement until December 2014, when GALINA KRAVCHENKO was returned to the U.S. based on an extradition warrant. GALINA KRAVCHENKO had been arrested in Moldova in September 2014 for having false Moldovan and Russian travel documents. ALEKSANDR KRAVCHENKO returned to the U.S on February 23, 2015 to resolve the criminal charges.
The court has ordered ALEKSANDR KRAVCHENKO to make restitution of $10,759,722 for the bank fraud scheme and $370,541 for filing a false tax return. GALINA KRAVCHENKO has also been ordered to pay back the $370,541 in tax loss caused by filing a false tax return.
The case was investigated by the FBI, the Federal Deposit Insurance Corporation, Office of Inspector General, the Internal Revenue Service, Criminal Investigations, and the Washington State Department of Financial Institutions. The case is being prosecuted by Assistant United States Attorneys Tessa Gorman and Thomas Woods.
Delaware County Man Sentenced to over 11 Years for Possessing Child PornographyRead the Press Release
A man who possessed child pornography was sentenced June 4, 2015 to over 11 years in federal prison.
Paul LeClere, age 51, of Hopkinton, Iowa, received the sentence after a February 6, 2015 guilty plea to one count of possession of child pornography. At the guilty plea hearing, LeClere admitted that he knowingly possessed child pornography.
LeClere was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. LeClere was sentenced to 135 months’ imprisonment and fined $10,000. A special assessment of $100 was imposed, LeClere was ordered to make $4,000 in restitution, and he must also serve a ten-year term of supervised release. He must comply with all sex offender registration and public notification requirements.
This case was prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Scott County Sheriff’s Office, the Davenport Police Department, the Delaware County Sheriff’s Office, the Dubuque County Sheriff’s Office, the Clinton County Sheriff’s Office, and Homeland Security Investigations.
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.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 14-2054.
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Dealer for Atlantic City “Dirty Block” Gang Sentenced to 54 Months in Prison in Heroin Trafficking ConspiracyRead the Press Release
CAMDEN, N.J. - An Atlantic City, N.J., man was sentenced today to 54 months in prison for engaging in a conspiracy to distribute heroin with several members of the “Dirty Block” criminal street gang – several of whom were convicted after a six-week jury trial in January – which used threats, intimidation and violence to maintain control of the illegal drug trade in Atlantic City, U.S. Attorney Paul J. Fishman announced.
Ronald Davis, a/k/a “Black,” 29, previously pleaded guilty before U.S. District Judge Joseph E. Irenas to a superseding information charging him with one count of conspiracy to distribute and to possess with intent to distribute, and to distribute and to possess with intent to distribute within 1,000 feet of public housing, 100 grams or more of heroin. Judge Irenas imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
Davis acted as a dealer, helping Dirty Block to distribute heroin in and around the public housing apartment complexes of Stanley Holmes, Carver Hall, Schoolhouse, Adams Court and Cedar Court, in Atlantic City. Davis was arrested on March 26, 2013.
In addition to the prison term, Judge Irenas sentenced Davis to six years of supervised release.
U.S. Attorney Fishman credited special agents of the FBI’s Newark Division, Atlantic City Resident Agency, under the direction of Special Agent in Charge Richard M. Frankel; the Atlantic County Prosecutor’s Office, under the direction of Prosecutor James P. McClain; the Atlantic City Police Department, under the direction of Chief Henry White; and the South Jersey Safe Streets Violent Incident and Gang (Safe Streets) Task Force, with the investigation leading to today’s guilty plea.
He also thanked the N.J. State Police; the Atlantic County Sheriff’s Office; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Northfield Police Department; the Vineland Police Department; the Brigantine Police Department; the Millville Police Department; the Mullica Township Police Department; the South Jersey Transportation Authority; and the U.S. Secret Service for their contributions.
The government is represented by Assistant U.S. Attorneys Patrick C. Askin and Justin Danilewitz of the U.S. Attorney’s Office in Camden and Special Assistant U.S. Attorney Edmund Burgos of the Atlantic County Prosecutor’s Office.
Defense counsel: Stanley O. King Esq., Woodbury, New Jersey
Dallas Man Sentenced to 189 Months in Federal Prison for Committing Armed Robberies of Dallas-Area BusinessesRead the Press Release
DALLAS — Keith Renard Simon, 20, who admitted committing several armed robberies of businesses in the Dallas area in November 2013, was sentenced today by U.S. District Judge Sidney A. Fitzwater to 189 months in federal prison, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
In October 2014, Simon pleaded guilty to three counts of interference with commerce by robbery. Co-defendant Lorenza Anzley, 21, pleaded guilty at the same time to the same offenses, and co-defendant James Montreal Tyson, 19, pleaded guilty to one count of the offense. Anzley was sentenced last month to 189 months in federal prison and ordered to pay $16,560 in restitution. Tyson was sentenced in October 2014 to 46 months in federal prison and ordered to pay $5,570 in restitution.
According to documents filed in the case, Simon, Anzley and Tyson admitted committing the November 11, 2013, robbery of Walgreens, located at 1060 West Camp Wisdom Road in Dallas. Simon brandished a dangerous weapon during this robbery.
Simon and Anzley admitted committing the November 23, 2013, robbery of Metro PCS, located at 2614 Martin Luther King Jr. Boulevard in Dallas. During that robbery, Simon and Anzley entered the store at approximately 3:15 p.m., with the intent to rob it. Simon produced a dangerous weapon, pointed it at two employees, and he and Ansley jumped over the counter. They demanded money and ordered the employees to get on the floor. When Anzley could not get the register open, he struck one of the employees in the face and back of the head with the weapon.
Simon and Anzley also admitted committing the November 24, 2013, robbery of Metro PCS, located at 2864 South Buckner Boulevard in Dallas. During this robbery, Simon brandished a dangerous weapon and struck one of the store’s employees with it.
While Simon and Anzley were not charged with additional robberies, Simon stipulated to their roles in two additional robberies: the November 20, 2013, robbery of Family Dollar, located at 2683 Cedar Crest Boulevard in Dallas and the November 29, 2013, robbery of Metro PCS, located at 9625 Plano Road in Dallas. During this Family Dollar robbery, Simon and Anzley ordered the store employees and customers to the floor at gunpoint. During this Metro PCS robbery, Simon pointed a dangerous weapon at employees, demanded money, and then ordered them into the back room.
The FBI and the Dallas Police Department investigated the case. Assistant U.S. Attorney Keith Robinson prosecuted.
Cherry Creek Man Sentenced for Assault Resulting in Serious Bodily InjuryRead the Press Release
Acting United States Attorney Randolph J. Seiler announced that a Cherry Creek, South Dakota, man convicted of Assault Resulting in Serious Bodily Injury was sentenced on June 1, 2015, by U.S. District Judge Roberto A. Lange.
Joshua Hale, age 24, was sentenced to 24 months in custody, 2 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Hale was indicted by a federal grand jury on December 9, 2014. He pled guilty to the Indictment on March 26, 2015.
The conviction arose from a February 6, 2014, incident when Hale became upset at the victim for not supporting him and backing him up during an earlier altercation. Hale assaulted the victim with his fist, striking him several times in the face and head, until the victim was knocked unconscious. As a result of the assault by Hale, the victim received two fractures of his facial bones, and numerous stitches to both the inside and outside of his lip.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorneys Mikal Hanson and Jay Miller prosecuted the case.
Hale was immediately turned over to the custody of the U.S. Marshals Service.
Chelsea Man Pleads Guilty in Fraudulent Driver's License SchemeRead the Press Release
BOSTON – A Chelsea man pleaded guilty today in connection with a scheme to produce fraudulent identification documents.
Edwin Amaurys Parra Suarez, 38, pleaded guilty to one count of conspiracy to produce false identification documents. U.S. District Court Judge Nathaniel M. Gorton scheduled sentencing for Sept. 9, 2015.
From December 2012 through December 2013, Parra bribed a corrupt Massachusetts Registry of Motor Vehicles (RMV) clerk to issue Massachusetts driver’s licenses to individuals who were not eligible to receive them. Acting as a broker, Parra sent his purported clients to the Revere RMV to submit their application materials to the corrupt clerk. In exchange for payment ranging from $100 to $1,000 from Parra, the clerk agreed to overlook the fact that the clients lacked the necessary immigration documents to qualify for a Massachusetts driver’s license. During the course of the scheme, Parra and his co-conspirators produced at least 29 Massachusetts driver’s licenses in this way.
This plea is the most recent development in a series of investigations involving identity theft and public corruption at the RMV. The clerk, Alexander Brewer, was sentenced in April 2014 to two years of probation, and he voluntarily forfeited the $60,000 he fraudulently obtained to produce fake licenses. Another co-conspirator of Brewer’s, Leonel Sanchez, was sentenced in January 2015 to 26 months in prison after pleading guilty to aggravated identity theft.
The charging statute provides a sentence of no greater than five years in prison, three years of supervised release, a fine of $250,000, or twice the gross gain or loss, whichever is greater, restitution and forfeiture. 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; Bruce M. Foucart, Special Agent in Charge of Homeland Security Investigations in Boston; Colonel Timothy P. Alben, Superintendent of the Massachusetts States Police; David W. Hall, Special Agent in Charge of the U.S. Department of State, Bureau of Diplomatic Security, Boston Field Office; and Cheryl Garcia, Special Agent in Charge of the U.S. Department of Labor, Office of Inspector General, Labor Racketeering and Fraud Investigations, New York Regional Office, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Eugenia M. Carris of Ortiz’s Public Corruption Unit.
Caseyville Man Pleads Guilty to Stealing Funds from Railroad Retirement BoardRead the Press Release
The United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today that Dennis Harold French, 52, of Caseyville, Illinois, pled guilty to charges that he stole disability benefits from the United States Railroad Retirement Board.
Facts revealed in Court were that, from May 2009 through June 2012, French fraudulently obtained monies belonging to the U.S. Railroad Retirement Board, an agency of the United States, by concealing his employment status in order to receive occupational disability benefits. In this way, French illegally obtained over $82,000.00.
The charge carries a maximum penalty of 10 years in prison, a $250,000 fine, and up to 3 years of supervised release. The district court set sentencing for September 30, 2015.
The case was investigated by agents of the U.S. Railroad Retirement Board, Office of Inspector General, Office of Investigations. The case is being prosecuted by Assistant United States Attorney Liam Coonan.
If you suspect or know of an individual or company that is committing fraud against any U.S. Railroad Retirement Board program, you may report this to the U.S. Railroad Retirement Board's Office of Inspector General by calling 1.800.772.4258 or by e-mailing a complaint or information to: [email protected]
Christian D. Shelton Found Guilty by Jury TrialRead the Press Release
FORT WAYNE – United States Attorney for the Northern District of Indiana, David Capp, announced that Christian D. Shelton, 38, of Fort Wayne, Indiana, was found guilty on June 4, 2015, by jury trial, of maintaining a drug-involved premises, possessing a firearm in furtherance of a drug trafficking crime, and possessing a firearm as a convicted felon.
According to the evidence presented at trial, in November 2012, detectives with the Fort Wayne Police Department obtained a search warrant and in partnership with the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) executed that warrant at Shelton’s home on Gaywood Drive, Fort Wayne, Indiana. At Shelton’s home, officers located marijuana, two firearms, and other evidence of drug dealing.
Sentencing for Shelton will be scheduled at a later date by a separate court order. Any specific sentence to be imposed will be determined by the judge after a consideration of the federal sentencing statutes and federal sentencing guidelines.
This case was the result of an investigation by the Fort Wayne Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. This trial was handled by Assistant United States Attorney Anthony W. Geller.
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Bunnell Company Owner Pleads Guilty to Theft of Employee Retirement FundsRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces that Andrea Lynn McCarthy (63, Volusia County) has pleaded guilty to embezzlement from an employee benefit plan. She faces a maximum penalty of 5 years in federal prison. A sentencing date has not yet been set.
According to the plea agreement, McCarthy is an owner of Truss Systems, LLC, a truss manufacturing business in Flagler County. She embezzled all of the funds from the business’ corporate profit sharing plan and unlawfully used the pension funds to pay personal and other unrelated corporate expenses. She used some of the funds to pay personal investment obligations in another unrelated company she co-owns. The corporate profit sharing plan was a federally protected plan under the Employee Retirement Income Security Act (ERISA).
In 2009, Truss Systems was having financial issues. In order to make the company’s payroll, pay vendors, satisfy the company’s mortgage payments, and pay financial obligations of her unrelated company, McCarthy made 15 separate and illegal electronic funds transfers from the company’s profit sharing plan’s account. This embezzlement, totaling $111,625.00, was accomplished by electronically transferring funds from the plan’s account to the company’s operating account. McCarthy then wrote checks from the operating account to cover personal and business obligations. She depleted the employees’ profit sharing account.
This case was investigated by United States Department of Labor. It is being prosecuted by Assistant United States Attorney Mark B. Devereaux.
Buffalo Man Pleads Guilty to Making A False StatementRead 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 David Zaniewski, 42, formerly of Buffalo, NY, now residing in Collegeville, Pennsylvania, pleaded guilty to making a false statement in a bankruptcy proceeding before U.S. District Judge Richard J. Arcara. The charge carries a maximum penalty of five years in prison and a $250,000 fine.Assistant U.S. Attorney Maura K. O’Donnell, who is handling the case, stated that in July 2007, the defendant obtained a charge card from American Express. During an approximately three week time frame, Zaniewski charged in excess of $119,000 to the card. Charges included airfare, hotels, furniture, cemetery plots, gift cards, and foreign currency.
In September, 2007, the defendant took the American Express charge card to Bert’s Bike Store, in Orchard Park, NY, where he and a store representative engaged in a transaction involving approximately $36,000 worth of purchases charged to the credit card. However, instead of merchandise, Zaniewski received cash.
The defendant never made any payments to American Express to offset the charges. In May, 2008, Zaniewski filed a bankruptcy petition in the Western District of New York, and attempted to discharge all of his debt with American Express through the bankruptcy process.
In connection with his bankruptcy proceedings, the defendant was placed under oath and asked questions about his bankruptcy petition, including his debts with American Express. During the proceedings, the defendant made materially false statements, including statements that he did not recall the nature of his fraudulent transactions at Bert’s Bike Store in September 2007.
The plea is the culmination of an investigation by the Federal Bureau of Investigation. The matter was referred by the U.S. Trustee Program’s office in Buffalo, NY.
Sentencing is scheduled for September 30, 2015 before Judge Arcara.
Baltimore Gun Trafficking Investigation Nets Five DefendantsRead the Press Release
Baltimore, Maryland – Following an investigation of firearms trafficking in Baltimore City, a federal grand jury has indicted five defendants in three separate cases, on firearms related charges including: unlawful possession of an unregistered firearm; possession of a firearm and/or ammunition by an illegal alien, possession and sale of a stolen firearm and being a felon in possession of a firearm. The indictments were returned on June 3, 2015, and unsealed upon the arrest of the defendants.
The indictments were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Acting Special Agent in Charge Ivan Arvelo of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Commissioner Anthony W. Batts of the Baltimore Police Department.
“These cases resulted from an intensive ATF investigation of firearms trafficking in Baltimore City,” said U.S. Attorney Rod J. Rosenstein. “Federal agents are working with police and prosecutors to stop the flow of guns into Baltimore.”
According to their indictments David Boj-Perez, a/k/a “David Salomon Boj,” and “Daniel,” age 31; Estelle Julia Lewis, age 28; and Philip Samuel Simmons, age 39, all of Baltimore, illegally possessed an unregistered firearm, specifically, a sawed-off 12 gauge shotgun. They each face a maximum sentence of 10 years in prison.
In a separate indictment, Kevin Mauricio Guzman Rivera, age 21, and Raymond Escobar, a/k/a “Ray,” age 35, both of Baltimore, are charged with possession of a firearm by an illegal alien, and being a felon in possession of a firearm, respectively, in addition to drug conspiracy and related charges. Rivera faces a maximum sentencing of 10 in prison for possession of a firearm by an illegal alien. Escobar also faces a maximum of 10 years in prison for being a felon in possession of a firearm. Rivera and Escobar also face a maximum sentence of 20 years in prison for possession with intent to distribute controlled substances, and for the drug conspiracy.
The defendants had an initial appearance in U.S. District Court in Baltimore. Boj-Perez and Escobar are detained. Rivera was already in custody and remains detained. Simmons and Lewis were detained pending detention hearings scheduled for Monday, June 8, 2015.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein praised the ATF, HSI-Baltimore, and Baltimore Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Kenneth S. Clark and Special Assistant U.S. Attorney Christopher Flagg, a cross-designated Baltimore City Assistant State’s Attorney assigned as part of the Baltimore initiative to combat violent crime, who are prosecuting these Organized Crime Drug Enforcement Task Force cases.
Austinite Sentenced to Federal Prison for Attempting to Travel to Syria to Join ISIL/ISISRead the Press Release
In Austin this morning, U.S. District Judge Sam Sparks sentenced 24-year-old Michael Wolfe (aka “Faruq”) to 82 months in federal prison followed by five years of supervised release for attempting to provide material support and resources to a foreign terrorist organization, announced John Carlin, Assistant Attorney General for National Security; Richard L. Durbin, Jr., Acting United States Attorney for the Western District of Texas; and, Christopher Combs, FBI Special Agent in Charge of the San Antonio Division.
In June 2014, Wolfe pleaded guilty to the charge, admitting that from August 2013 to June 17, 2014, he planned to travel to the Middle East to provide his material support to the Islamic State of Iraq and the Levant (ISIL), also known as the Islamic State of Iraq and al-Sham/Syria (ISIS). Wolfe previously acknowledged that he applied for and acquired a U.S. passport, participated in physical fitness training, practiced military maneuvers and made efforts to conceal his communications about his plans to travel overseas to engage in violent jihad. Wolfe also purchased airline tickets so that he could travel to Europe to meet an FBI undercover employee, whom the defendant then believed would facilitate travel to Syria through Turkey. In furtherance of his attempt to provide material support to ISIL, Wolfe travelled to Houston and was apprehended on June 17, 2014, on the jet-way, as he attempted to board a flight to Toronto, Canada. His ticketed itinerary had him traveling through Iceland and arriving in Copenhagen, Denmark, on June 18, 2014. He then planned to make his way to Syria to join with ISIL and engage in the armed conflict. Wolfe has remained in federal custody since his arrest.
The case was investigated by the agencies comprising the Central Texas JTTF, which include the FBI; Internal Revenue Service-Criminal Investigation; U.S. Citizenship and Immigration Services; U.S. Army Intelligence; Austin Police Department; Round Rock, Texas, Police Department; Killeen, Texas, Police Department; University of Texas Police Department; Travis County, Texas Sheriff's Office; Texas Department of Public Safety, Office of the Texas Attorney General and the Texas Alcoholic Beverage Commission.
The case was prosecuted by Assistant U.S. Attorneys Gregg N. Sofer and Michael Galdo of the Western District of Texas, and Trial Attorneys Josh Parecki and Michael Dittoe of the National Security Division’s Counterterrorism Section.
Attorney General Recognizes District EmployeesRead the Press Release
Assistant U.S. Attorneys (AUSA) A. Marie Villafana, Brandy Galler, E.J. Yera, Barbara Martinez, Lisa Rubio, and Cristina Moreno, and former AUSA Roy Altman of the U.S. Attorney’s Office in the Southern District of Florida were one of 160 members of the Department of Justice recognized by Attorney General Loretta Lynch, Deputy Attorney General Sally Quillian Yates, and Executive Office for U.S. Attorneys (EOUSA) Director Monty Wilkinson at the 31st Director’s Awards Ceremony today in Washington D.C.
The Southern District of Florida was one of 31 districts represented at the ceremony which was held in the Great Hall at the Robert F. Kennedy Department of Justice Building.
In her prepared remarks, Attorney General Lynch told the awardees, "Our honorees include career executives and supervisors; Assistant U.S. Attorneys and Special Assistant U.S. Attorneys; appellate attorneys and law enforcement officials; administrators, paralegals, and public affairs officers,” said Attorney General Lynch. “These individuals, and so many others, have faced daunting and sometimes dangerous challenges. They have dedicated their leadership and their expertise, their time and their energy, to the service of their mission. And they have remained devoted, at all times, to the high ideals and deeply-held values that animate our country and our cause.”
AUSAs Villafana, Galler and Yera were recognized for their “Superior Performance as an Assistant U.S. Attorney” in the Criminal Division for their work on Operation Sledgehammer. Operation Sledgehammer was a four-year undercover investigation led by multiple agencies from the Greater Palm Beach Health Care Fraud Task Force that targeted an organized group conducting insurance fraud in Palm Beach and Miami-Dade Counties, Florida. The investigative team, consisting of both federal and state prosecutors/investigators as well as the National Insurance Crime Bureau, charged 105 subjects. The federal investigative team prepared thirteen charging instruments in eight federal cases against 57 individuals. As a result of the investigation, three physicians and a patient recruiter were convicted after trial and over 20 fraudulent therapy clinics were closed.
AUSAs Martinez and Rubio and former AUSA Altman were recognized for their “Superior Performance as an Assistant U.S. Attorney” in the Criminal Division for their work in the case of United States v. Lavont Flanders, Jr. and Emerson Callum, a serial rape and pornography case that spanned five years, involved more than 50 victims, combined the efforts of at least 10 federal and local agencies, and represented the first federal case of its kind in the United States. Between 2006 and 2011, Flanders, a former police officer, and Callum, a Jamaican-born pornographer, perpetrated an elaborate fraud to lure aspiring models from all across the United States to Miami by promising the victims the opportunity to audition for modeling and acting roles that, it later turned out, never existed. As part of the fraud, Flanders, using scores of fake social networking profiles and email accounts, recruited the victims to audition for a role with a multi-national company. Once the victims arrived in Miami, Flanders instructed them to drink alcohol, while he filmed, as part of the audition. Unbeknownst to the women, the drinks were laced with benzodiazepines, sedatives commonly used as date rape drugs. Once the drugs had taken effect, Flanders drove the victims to Callum’s studio, where Callum would perpetrate a litany of sexual acts on the victims, while Flanders filmed. The investigation revealed that the defendants had edited, produced, and sold the video-footage of the sexual assaults as pornography, both online and to pornography businesses across the country. Both defendants were found guilty at trial and sentenced to 13 consecutive terms of life sentences. Their convictions were affirmed on appeal.
AUSA Moreno, together with AUSAs from the Central District of California and their law enforcement partners from the FBI, Secret Service, and the Armenian Organized Crime Task Force, received an award for “Superior Performance by a Litigative Team” for their extraordinary work handling the largest organized crime prosecution targeting a Eurasian criminal enterprise in DOJ history. This prosecution targeted the Armenian Power criminal enterprise, a violent and sophisticated organized crime group of international scope directly allied with traditional Armenian-Russian criminal leaders abroad and domestically, and a group that has deep links to the powerful Mexican Mafia prison gang. The successful prosecution resulted in the conviction of over 100 Armenian Power members and associates for a variety of federal crimes, including racketeering offenses, bank fraud and identity theft offense, public corruption offenses, kidnappings, extortions, firearms offenses, drug-trafficking crimes, illegal gambling, and Medicare.
U.S. Attorney Wifredo A. Ferrer stated, “I applaud the dedicated efforts of the recognized prosecution teams. Their extraordinary skill, hard work and unwavering commitment to justice ensures that our communities are protected and the offenders are held accountable in a court of law. I am very proud of their achievements and support of our mission.”
EOUSA provides oversight, general executive assistance, and direction to the 94 United States Attorneys’ offices around the country. For more information on EOUSA and its mission, visit http://www.justice.gov/usao.
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.
Atlanta Dentist to Pay Settlement to Resolve False Claims Act AllegationsRead the Press Release
ATLANTA - The United States Attorney’s Office for the Northern District of Georgia announced that it has reached a settlement with Dennis Jaffe and Dennis B. Jaffe D.M.D., P.C., to pay $324,327.05 to settle health fraud claims -- specifically that Jaffe violated the False Claims Act by fraudulently billing Medicaid for tooth extraction procedures and for fraudulently billing for services rendered by a dental assistant when Jaffe was not present in the office. Under the terms of the settlement, Jaffe is also excluded from all federal and state healthcare programs.
In addition to the civil settlement, Jaffe also pleaded guilty to a charge of theft from a healthcare benefit program in a separate federal criminal action and was sentenced to serve one year of probation. As part of the plea, Jaffe agreed to surrender his dental license.
“Citizens rely on dentists to treat all patients in accordance with the approved standards of care,” said Acting U.S. Attorney John Horn. “Patients were placed at risk when a dental assistant, without Jaffe present to supervise, performed procedures a licensed dentist must oversee. The defendant also enriched himself at the expense of those patients by marking up the bills to Medicaid for the services he was not performing.”
“All patients should be entitled to the same level of care and providers who choose to cut costs and increase profits by using unlicensed staff bring shame upon the entire profession and more importantly jeopardizes the safety of patients,” said Derrick L. Jackson, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General in Atlanta. “Dr. Jaffe’s case should stand as a warning to those who choose to put profits above patient care.”
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “The FBI, in working with Health & Human Services investigators, is proud of the role that it continues to play in ensuring that federally funded healthcare programs such as Medicaid are not abused by providers such as Mr. Jaffe. The FBI asks that anyone with information regarding such matters report it to authorities by contacting their nearest FBI field office.”
Georgia Attorney General Sam Olens stated: “The State’s Medicaid Fraud unit is pleased to work with our federal partners in attacking fraud upon vital healthcare programs. Dr. Jaffe’s actions are inexcusable and clearly warranted the administrative, civil, and criminal actions. I want to thank Assistant Attorneys General Kevin D. Bradberry and James P. Mooney for all of their hard work on the case.”
The civil settlement resolves allegations that Jaffe, a 71-year-old dentist from Atlanta, Georgia, fraudulently sought payment from Medicaid for higher and more expensive levels of service than were actually performed, a practice commonly referred to as “upcoding.” The settlement also resolves claims that Jaffe unlawfully billed for services rendered by an unsupervised dental assistant on days in which Jaffe was not present in the office. Under Medicaid regulations and Georgia law, it is unlawful for dental assistants to render any care outside of the direct supervision of a licensed dentist.
The civil settlement resolves a lawsuit filed by Michelle Smith under the qui tam, or whistleblower, provisions of the False Claims Act, which allow private citizens to bring civil actions on behalf of the United States and share in any recovery obtained. The case, pending in the Northern District of Georgia, is filed under United States ex rel. Michelle Smith v. Dennis B. Jaffe D.M.D., P.C. and Dennis B. Jaffe, Civ. 2:13-CV-1732. The Federal government will receive $190,635.67, and the State of Georgia will receive the remainder of the settlement. Ms. Smith will receive a share of the settlement payment that resolves the qui tam suit that she filed. The claims in the civil settlement are allegations only, and there has been no determination of liability.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $24 billion through False Claims Act cases, with more than $15.3 billion of that amount recovered in cases involving fraud against federal health care programs.
The case was investigated by Special Agents of Health & Human Services, Office of Inspector General and the Federal Bureau of Investigation as well as investigators with the Georgia Medicaid Fraud Control Unit.
The civil settlement was reached by Assistant U.S. Attorney David A. O’Neal and Georgia Assistant Attorney General Kevin D. Bradberry. The criminal case was prosecuted by Assistant U.S. Attorney Nathan Kitchens and Georgia Assistant Attorney General James P. Mooney.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao-ndga.
Armed, Violent, Jewelry Store Robbers Get Lengthy Federal Prison SentencesRead the Press Release
DALLAS — A Mesquite, Texas, man, who, along with his co-conspirator admitted committing the armed robberies of several jewelry stores in the Dallas - Fort Worth (DFW) area, was sentenced this morning to a lengthy federal prison sentence, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
Mark D. Whitfield, 36, was sentenced to serve a total of 309 months in federal prison by U.S. District Judge Sidney A. Fitzwater. Whitfield pleaded guilty in September 2014 to one count of conspiracy to interfere with commerce by robbery and one count of using, carrying, and brandishing a firearm during and in relation to a crime of violence.
Last month, his co-conspirator, Michael Demon Jackson, 37, of Dallas, was sentenced by Judge Fitzwater to serve a total of 594 months in federal prison. Jackson pleaded guilty in November 2014 to the conspiracy count and two counts of using, carrying, and brandishing a firearm during and in relation to a crime of violence.
According to documents filed in the case, from approximately October 18, 2013, to May 22, 2014, Whitfield and Jackson conspired to rob, and did rob, the below-listed jewelry stores located in shopping malls in the DFW area, of more than $400,000 of jewelry:
October 18, 2013 and February 4, 2014 - Marquise Jewelers in Valley View Mall, 13331 Preston Road, Dallas
February 24, 2014 - Classic Jewelers in Vista Ridge Mall, 2401 South Interstate 35-E, Lewisville, Texas
April 29, 2014 - Gianni’s Jewelers in Vista Ridge Mall, 2401 South Interstate 35-E, Lewisville, Texas
May 20, 2014 - Benson’s Jewelers in The Parks at Arlington Mall, 3811 South Cooper Street, Arlington, Texas
During each of the two Marquise Jewelers robberies, Whitfield distracted a store employee by pretending to be interested in buying jewelry and asking the store employee to show him merchandise in the display cases. Once the employee was distracted and the display case opened, Jackson went around the counter and, in one robbery, held a firearm to the employee’s head and threatened to kill her, and in the other robbery, pushed the employee to the floor, held a firearm to her head and, again, threatened to kill her.
During each of the other robberies, the defendants committed and threatened physical violence with a firearm.
The FBI investigated the case. Deputy Criminal Chief Assistant U.S. Attorney Lisa Miller prosecuted.
21 South Georgia Residents Indicted on Federal and State Drug Trafficking ChargesRead the Press Release
Brunswick, GA - United States Attorney Edward J. Tarver and Brunswick Judicial Circuit District Attorney Jackie Johnson announced today that a federal indictment and numerous state indictments have been returned charging 21 South Georgia residents with conspiring to distribute methamphetamine and oxycodone.
The federal indictment, unsealed this week and returned by a federal Grand Jury in May, charged the following 9 defendants with conspiring to distribute methamphetamine:
Bobby James Courson, 32, of Nahunta,
Derrick Andrew Robinson, 34, of Telfair County
Michael Lamar Hysmith, 33, of Uvalda,
Anthony Stewart Thigpen, 45, of Blackshear,
Kalvin Wayne Smith, 39, of Denton,
Kevin Thomas Ellis, 45, of Hazelhurst,
Terry Jonathan Crews, 39, of Nahunta,
Jamie Jackson Crews, 41, of Nahunta, and
Timothy Bryant Smith, 46, of Denton.
If convicted of the drug trafficking conspiracy charge, the federal defendants face a maximum of 20 years in prison and a potential $1 million fine.
In cases related to the federal indictment, the following defendants were indicted yesterday on state drug charges by the Jeff Davis County Grand Jury:
Kalvin Wayne Smith, 39, of Denton,
Johsua Fussell, 27, of Jeff Davis County,
Gary Brinkley, 64, of Hazlehurst,
Greg Levi Robbins, 31, of Hazlehurst,
Zackery Thomas Bowen, 29, of Jeff Davis County,
Gina Smith, 36, of Hazlehurst,
Sheryl Snow, 45, of Hazlehurst,
Angie Hand, 49, of Hazlehurst,
Randy Hand, 61, of Hazlehurst,
Julie Clements, 37, of Hazlehurst,
Amy Michelle Corey, 27, of Hazlehurst,
Melanie Hope Calhoun, 39, of Hazlehurst, and
Jade Rena Powell, 29, of Denton.
The charges resulted from a joint federal-state investigation by the DEA, GBI, the Jeff Davis County Sheriff’s Office, the Coffee County Sheriff’s Office, the Brantley County Sheriff’s Office, the Pierce County Sheriff’s Office, the Telfair County Sheriff’s Office, the Douglas-Coffee Drug Unit and the Brunswick Judicial Circuit District Attorney's Office. Assistance was provided by the United States Marshal’s Service.
The majority of the federal defendants appeared in federal court yesterday in Brunswick for their initial appearances.
Mr. Tarver and Ms. Johnson emphasized that the indictments are only accusations and are not evidence of guilt. The defendants are entitled to a fair trial, during which it will be the Government’s burden to prove guilt beyond a reasonable doubt.
Assistant United States Attorney Charlie Bourne is prosecuting the federal case and District Attorney Jackie Johnson is prosecuting the state cases in Jeff Davis County Superior Court. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
4 June 2015
York Man Sentenced to 70 Years for Producing Child PornographyRead the Press Release
The U.S. Attorney’s Office for the Middle District of Pennsylvania announced that U.S. District Court Judge William W. Caldwell sentenced Daniel Curran, 41, of York, Pennsylvania to 70 years of incarceration at a hearing today in Harrisburg, Pennsylvania. Curran pleaded guilty to producing, receiving and possessing child pornography on Dec. 4, 2014.
According to the U.S. Attorney’s Office, Judge Caldwell stated it was one of the most disturbing cases he had ever seen, thought the maximum sentence was completely justified, noted the defendant was a danger to young people and needed to be confined for their safety. Assistant U.S. Attorney Meredith A. Taylor had recommended the maximum sentence of 840 months.
According to U.S. Attorney Peter J Smith for the Middle District of Pennsylvania, the evidence established that Curran sexually assaulted a nine year old boy on multiple occasions and recorded the assaults of the child. In addition, the Federal Bureau of Investigation (FBI) located over at least 40,000 images and over 100 videos of child pornography on Curran’s computer and thumb drives.
Curran was originally charged in November 2013 and signed a plea agreement in November 2014.
This investigation was conducted by the FBI and the the Northern York County Regional Police Department.
York Man Sentenced to 70 Years for Producing Child PornographyRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that United States District Court Judge William W. Caldwell sentenced Daniel Curran, age 41, of York, Pennsylvania to 70 years of incarceration at a hearing today in Harrisburg, Pennsylvania. Curran pleaded guilty to producing, receiving and possessing child pornography on December 4, 2014.
According to the U.S. Attorney’s Office, Judge Caldwell stated it was one of the most disturbing cases he had ever seen, thought the maximum sentence was completely justified, noted the defendant was a danger to young people and needed to be confined for their safety. Assistant United States Attorney Meredith A. Taylor had recommended the maximum sentence of 840 months.
According to U.S. Attorney Peter Smith, the evidence established that Curran sexually assaulted a nine year old boy on multiple occasions and recorded the assaults of the child. In addition, the FBI located over at least 40,000 images and over 100 videos of child pornography on Curran’s computer and thumb drives.
Curran was originally charged in November 2013 and signed a plea agreement in November 2014.
This investigation was conducted by the Federal Bureau of Investigation and the Northern York County Regional Police Department.
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Wyoming Man Charged with Sexual Abuse of A MinorRead the Press Release
U.S. Attorney for the District of Wyoming Christopher A. Crofts announced today that on June 3, 2015, 26 year old Carlino Jonas Goggles made his initial appearance on an Indictment charging him with one count of Sexual Abuse of a Minor, in violation of 18 U.S.C. §§ 2243(a) and 1153. Goggles faces potential penalties of up to fifteen years imprisonment, a $250,000 fine, a special assessment of $100 and supervised release for not less than 5 years nor more than life. Goggles’ case has been assigned to U.S. District Judge Scott Skavdahl for further proceedings.
An Indictment is only an accusation. In every criminal case, the accused is presumed to be innocent until proven guilty, and the government always has the burden of proving guilt beyond a reasonable doubt.
The case is being investigated by the Bureau of Indian Affairs.
Westbrook Woman Sentenced to One Month in Prison for Adulterating a Dietary SupplementRead the Press Release
Contact: James W. Chapman, Jr.
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Kathy Jordan, 61, of Westbrook, Maine, was sentenced today in U.S. District Court by Chief Judge Nancy Torresen to one month in prison and one year of supervised release for adulterating a food item, namely a bottle of fish oil capsules, with the intent to defraud.
According to court documents and testimony at the sentencing hearing, on April 3, 2012, Jordan purchased a bottle of fish oil capsules, face cream and shampoo from a retail pharmacy store near her home. She returned all three items the following day for a full refund after tampering with each of the items. One week later, the bottle of fish oil capsules was resold to another customer. When resold, the bottle appeared to be unopened, with the tamper-proof plastic collar around the neck of the bottle. Later that day, the customer returned the bottle to the pharmacist after she opened the bottle at home and discovered that it contained three different types of pills. U.S. Food and Drug Administration investigators determined that the bottle contained 10 fish oil capsules, about 70 phenytoin capsules and several stool softener pills. Phenytoin, more commonly known by the brand name Dilantin, is a prescription anti-seizure medication that has several potential serious side effects. The defendant told investigators that she added the phenytoin and stool softener to the bottle and returned it to the pharmacy so that she could get a full refund.
In imposing sentence, Chief Judge Torresen found that the defendant’s conduct created a risk of death or serious bodily injury if someone had accidently ingested phenytoin without a prescription from a physician, believing it to be fish oil capsules. She told the defendant that a sentence of imprisonment was necessary to protect the public from the defendant’s actions and to send a message to Jordan and others that the court treated this as a very serious matter.
This case was investigated by the U.S. Food and Drug Administration, Office of Inspector General.
Wadda Sentenced to 10 Years in Prison for Role in 2013 Northern Cheyenne MurderRead the Press Release
BILLINGS – The United States Attorney’s Office announced that today, in U.S. District Court in Billings, Garrett Wadda was sentenced to 10 years in federal prison for his role in a 2013 murder on the Northern Cheyenne Indian Reservation. Wadda, 35, was sentenced by U.S. District Judge Susan Watters to 120 months in custody followed by 3 years of supervised release in connection with his guilty plea to accessory after the fact to murder. Wadda’s sentencing follows the February 2015 sentencing of his common-law wife, Eugenia Ann Rowland, who pleaded guilty to second degree murder for the crime and was sentenced to 22 years in prison.
Assistant U.S. Attorney Lori Suek told the court that on the night of July 3, 2013, the victim was with Wadda and Rowland. The victim was last seen early the following morning getting into her car. Surveillance footage from a business captured Rowland getting into the front passenger seat of the car. Investigators learned Wadda was in the backseat of the car, by himself.
Wadda and Rowland were interviewed multiple times by law enforcement the week following the victim’s disappearance. Both their accounts of what happened changed over the course of the interviews. The victim’s body was found on July 8, 2013, near the Lame Deer rodeo grounds. Before the victim’s body was found, Wadda and Rowland left the Northern Cheyenne reservation to stay with relatives near the Wind River Reservation in Wyoming. Law enforcement officers learned that Wadda had borrowed a car from a family member and returned the car with a very strong odor emanating from the back seat. After a search of the car, the victim’s DNA was found on a rear seat cushion taken from the car.
“The defendant’s actions were callous and dehumanizing,” said Montana U.S. Attorney Mike Cotter. “This was a senseless murder of a young woman. We are grateful for law enforcement’s teamwork in bringing both defendants to justice.”
The investigation was a collaborative effort between the Bureau of Indian Affairs, Federal Bureau of Investigation, Lake County Sheriff’s Office, Flathead Tribal Police Department, Wind River Police Department, Rapid City Police Department, Pine Ridge Criminal Investigations, BIA Rapid City Drug Unit and Pennington County Sheriff’s Office.
United States Settles Kickback Allegations with Georgia HospitalRead the Press Release
The Department of Justice announced today that the United States has settled a False Claims Act lawsuit with Health Management Associates (HMA) and Clearview Regional Medical Center for $595,155. The lawsuit filed in the Middle District of Georgia alleged that from 2008 to 2009 the hospital paid kickbacks to an obstetric clinic that served primarily undocumented Hispanic women, in return for referral of those patients for labor and delivery at the hospital. The hospital then billed the Medicaid program in Georgia for the services provided to the referred patients. Clearview, located in Monroe, Georgia, was named Walton Regional Medical Center and was owned by hospital operator HMA during the time period relevant to the lawsuit. Clearview is now owned by Community Health Systems (CHS), which purchased HMA in January 2014.
"This resolution illustrates our commitment to ensuring that health care providers who pay kickbacks in return for patient referrals are held accountable,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer of the Justice Department’s Civil Division. “Schemes such as this one corrupt the health care system and take advantage of vulnerable patients.”
“The Medicaid program is a vital part of the government’s efforts to make sure that everyone has access to health care,” said U.S. Attorney Georgia Michael J. Moore of the Middle District of Georgia. “Instead of providing health care services to expectant mothers in its area and receiving payment for those services from Medicaid, the hospital participated in a scheme to pay kickbacks in exchange for having pregnant women from outside its market funneled to its facility with the goal of increasing the amount of Medicaid money the hospital could claim.”
The United States’ complaint alleges that HMA’s Walton Regional Medical Center paid kickbacks to Hispanic Medical Management doing business as Clinica de la Mama (Clinica) and related entities, in return for Clinica’s agreement to send pregnant women to Walton Regional for deliveries paid for by Medicaid, in violation of the federal Anti-Kickback Statute. The kickbacks were disguised as payments for a variety of services allegedly provided by Clinica.
The Anti-Kickback Statute prohibits offering, paying, soliciting or receiving remuneration to induce referrals of items or services covered by Medicare, Medicaid and other federally funded programs. The Anti-Kickback Statute is intended to ensure that a physician’s medical judgment is not compromised by improper financial incentives and is instead based on the best interests of the patient.
“Hospitals that pay kickbacks to clinics for referrals of undocumented pregnant patients are taking advantage of both these vulnerable women and the taxpayer-funded Medicaid program,” said Special Agent in Charge Derrick L. Jackson of the U.S. Department of Health and Human Services, Office of Inspector General’s (HHS-OIG) Atlanta Regional Office. “Our agency is dedicated to investigating such corrosive kickback schemes, which undermine the public’s trust in medical institutions and the financial health of government health care programs.”
“The FBI is proud of the role it played in bringing forward today’s settlement, said Special Agent in Charge J. Britt Johnson of the FBI Atlanta Field Office. “The FBI will continue to provide significant investigative assets and resources to ensure that the integrity of federally funded health care programs such as Medicaid are protected from providers who would abuse them.”
As part of the settlement, HMA and Clearview will pay the State of Georgia an additional $396,770 to settle Georgia’s claims under the Georgia False Medicaid Claims Act. The Medicaid program is a jointly funded federal-state program that provides health care to the poor and disabled. Although undocumented aliens are not eligible for regular Medicaid coverage, the Medicaid program provides coverage for emergency conditions, including childbirth, for undocumented aliens.
The lawsuit was filed under the qui tam, or whistleblower, provisions of the False Claims Act. The Act permits private parties to sue on behalf of the government for false claims for government funds and to receive a share of any recovery. The False Claims Act also permits the government to intervene in such lawsuits, as it did in this case against Walton Regional, as well as several other defendants, including Clinica de la Mama and four hospitals owned by Tenet Healthcare Corporation. The litigation against the non-settling defendants is ongoing. The relator, Ralph D. Williams, the chief financial officer of Walton Regional from April 2009 to October 2009, will receive $119,031 from the United States’ portion of the settlement.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $24 billion through False Claims Act cases, with more than $15.3 billion of that amount recovered in cases involving fraud against federal health care programs.
This matter was investigated by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Offices for the Middle and Northern Districts of Georgia, HHS-OIG, FBI and the Office of the Attorney General for the State of Georgia.
The case is captioned United States ex rel. Williams v. Health Mgmt. Assocs. Inc., et al., No. 3:09-CV-130 (M.D. Ga.).
The claims resolved by this settlement are allegations only and there has been no determination of liability.
United States Files Suit Against Outreach Diagnostic Clinic and Outreach EyecareRead the Press Release
HOUSTON – The United States has filed suit against Outreach Diagnostic Clinic and Outreach Eyecare, medical director Emelike Agomo M.D. and owner Mustapha Kibirige M.D., announced U.S. Attorney Kenneth Magidson. The suit alleges the defendants knowingly charged for special eye pressure tests never performed on patients in order to receive reimbursement from Medicare.
According to the complaint filed this week, Outreach Diagnostic and Outreach Eyecare performed standard eye pressure tests on Medicare patients during intermediate and comprehensive eye care services for which the defendants received reimbursement from Medicare. Simultaneously, these providers allegedly charged Medicare for a special eye pressure test claiming it was performed separately on the same day as the eye care services. However, the complaint alleges that Outreach Diagnostic and Outreach Eyecare never performed the special eye pressure test on Medicare patients. In fact, they did not even have the necessary equipment to perform the special eye pressure test, according to the allegations.
Kibirige allegedly started this false billing. Later, the allege he directed Agomo and his staff to continue to falsely charge Medicare for the special eye pressure tests that they knew were never performed on any Medicare patient, according to the complaint.
The original lawsuit was filed by Dr. Michael Sorensen under the qui tam, or whistleblower, provisions of the False Claims Act., which permit private parties to sue on behalf of the United States when they believe people are submitting false claims for government funds. The private plaintiffs, called “relators,” are entitled to receive a share of any recoveries in the lawsuit. The False Claims Act permits the government to recover three times its damages plus a civil penalty of $5,500 to $11,000 for each false claim.
Department of Health and Human Services - Office of Inspector General investigated and Assistant U.S. Attorney Jose “Joe” Vela Jr. is handling the case.
Un Extranjero Sentenciado a 5 Años por Delitos de Posesión de Armas de Fuego, Cultivo de Marihuana en el Bosque Nacional de Mendocino y Destrucción de Terrenos y Recursos NacionalesRead the Press Release
SACRAMENTO, Calif. – Ivan Espinoza Villafana, de 25 años de edad y ciudadano de México, fue sentenciado hoy por el Juez del Distrito de los Estados Unidos Troy L. Nunley a cinco años de prisión y una indemnización de $14,000 dólares por la posesión de una arma de fuego por un indocumentado, el cultivo de marihuana y la depredación de terrenos y recursos públicos, anunció el Procurador de los Estados Unidos Benjamín B. Wagner.
Según documentos del tribunal, el 19 de agosto del 2014, agentes de la policía adentraron en un campo de cultivo de marihuana por los alrededores de Ice Springs dentro del Bosque Nacional de Mendocino en el Condado de Glenn donde se estaban cultivando 732 plantas de marihuana. Al ver que se acercaban los agentes Villafana huyó. Fue aprehendido y arrestado en el lugar de los hechos. En el momento de la detención, Villafranca llevaba un revólver Smith & Wesson cargado en la pretina de su pantalón. Los agentes también encontraron un rifle en el área de recreación del lugar. Villafana está bajo custodia desde su arresto.
El cultivo de marihuana en el lugar causó daños significativos a los recursos naturales. Se estaba desviando agua por medio de tubos de riego desde un arroyo cercano hasta las plantas de marihuana que necesitan aproximadamente 6 a 8 galones de agua por planta cada día. Los agentes también observaron que había numerosos sacos de fertilizante y pesticidas que estaban siendo utilizados para cultivar la marihuana. Un hidrólogo del Servicio Forestal de EE. UU. hizo un reconocimiento del lugar y concluyó que el impacto de la fuga del fertilizante y los pesticidas hacia los arroyos perjudicaría la calidad del agua y causaría daños a la fauna ya que los animales del Bosque Nacional ingerirían los pesticidas y fertilizantes. Además, los cultivadores de la marihuana del lugar talaron y despejaron los árboles y la vegetación dentro del Bosque Nacional para hacer sitio para las plantas de marihuana. El reparar y el rehabilitar el daño causado al Bosque Nacional por este cultivo le costará a los Estados Unidos entre $14,400 y $73,500 dólares.
Este caso fue el producto de una investigación llevada a cabo por el Servicio Forestal de los Estados Unidos, la Oficina del Sheriff del Condado de Glenn y del Departamento de Pesca y Vida Silvestre de California. El Procurador Auxiliar de los Estados Unidos Christiaan Highsmith está procesando el caso.
U.S. Attorney's Office Employee Receives Prestigious Attorney General AwardRead the Press Release
WASHINGTON – Timothy Reid Dunbar, Automated Litigation Support Specialist, of the U.S. Attorney’s Office in the Western District of North Carolina, was one of the members of the Department of Justice recognized by Attorney General Loretta Lynch, Deputy Attorney General Sally Quillian Yates, and Executive Office for U.S. Attorneys (EOUSA) Director Monty Wilkinson at the 31st Director’s Awards Ceremony today in Washington, D.C.
The Western District of North Carolina was one of 31 districts represented at the ceremony which was held in the Great Hall at the Robert F. Kennedy Department of Justice Building.
“Our honorees include career executives and supervisors; Assistant U.S. Attorneys and Special Assistant U.S. Attorneys; appellate attorneys and law enforcement officials; administrators, paralegals, and public affairs officers. These individuals, and so many others, have faced daunting and sometimes dangerous challenges. They have dedicated their leadership and their expertise, their time and their energy, to the service of their mission. And they have remained devoted, at all times, to the high ideals and deeply-held values that animate our country and our cause,” said Attorney General Lynch.
Tim Dunbar’s significant contibutions to the Western District’s Automated Legal Support (ALS) team have been critical in the prosecution of some of the office’s most complex and high-profile matters, including the historic $16.7 billion Residential Mortgage-Backed Sucurities case against Bank of America, and the public corruption case against former Charlotte Mayor Patrick Cannon. In addition to managing data, Tim uses his creativity and solution-oriented approach to assist attorneys and agents in efficiently searching and analyzing case-related data. Moreover, Tim produces highly professional trial graphics, audio files and visual displays, many with hundreds of exhibits. Tim is also a leading thinker for ALS nationwide, serving on the LAW Beta Test Team and the E-discovery Working Group.
Tim graduated from Washington State University with a Bachelor’s Degree in Business with an emphasis in Management Information Systems and is originally from Seattle, Washington.
“I am honored and delighted that Tim Dunbar was recognized today for his outstanding achievements and important contributions to furthering the mission of the Justice Department. Tim is a critical member of our litigation team whose technical expertise and creativity contribute significantly to our trial preparation and presentations. This well-deserved award speaks to Tim’s dedication, hard work and professionalism, and I am proud to be working alongside such a talented and committed public servant,” said Acting U.S. Attorney Rose.
EOUSA provides oversight, general executive assistance, and direction to the 94 United States Attorneys’ offices around the country. For more information on EOUSA and its mission, visit http://www.justice.gov/usao.
U.S. Attorney continues to bring additional law enforcement resources to eastern panhandleRead the Press Release
MARTINSBURG, WEST VIRGINIA – As part of an ongoing initiative to enhance law enforcement effectiveness and promote safety in the Eastern Panhandle of West Virginia, the U.S. Attorney’s Office has welcomed two new federal prosecutors, United States Attorney William J. Ihlenfeld, II, announced today.
Shawn M. Adkins has been appointed to the position of Assistant United States Attorney, and Stephanie S. Taylor has been appointed to the position of Special Assistant U.S. Attorney.
“Shawn and Stephanie will be valuable parts of our coordinated response to drug trafficking and violent crime in the Eastern Panhandle,” said U.S. Attorney Ihlenfeld. “We remain committed to prosecuting criminals that travel across state lines to commit crimes in West Virginia, particularly those who are bringing heroin into the state. In the coming months, I hope to announce the addition of more resources to the U.S. Attorney’s Office.”
Adkins previously served as an Assistant Prosecuting Attorney in Harrison County, West Virginia. Adkins graduated from Marshall University in 2008 with a Bachelor of Business Administration, and earned his law degree from the Thomas M. Cooley Law School in 2011.
Taylor is a seasoned litigator, having served in the Berkeley County Prosecuting Attorney’s Office since 2006. She also worked as an Assistant Prosecuting Attorney for Morgan County, West Virginia from 2003 through 2006. Taylor previously served as a Law Clerk to the Honorable Grey Silver, III in the 23rd Judicial Circuit of West Virginia. She graduated from Marshall University in 1997, and earned her law degree from the West Virginia University College of Law in 2001.
Chief U.S. District Judge Gina M. Groh issued the formal oath of office to Adkins and Taylor in a ceremony held this morning.
U.S. Attorney General Loretta Lynch Recognizes Assistant U.S. Attorney from New MexicoRead the Press Release
ALBUQUERQUE – Assistant U.S. Attorney David Adams of the U.S. Attorney’s Office (USAO) in the District of New Mexico was one of 160 members of the Department of Justice recognized by Attorney General Loretta Lynch, Deputy Attorney General Sally Quillian Yates, and Executive Office for U.S. Attorneys (EOUSA) Director Monty Wilkinson at the 31st Director’s Awards Ceremony today in Washington D.C.
The District of New Mexico was one of 31 districts represented at the ceremony which was held in the Great Hall at the Robert F. Kennedy Department of Justice Building. U.S. Attorney Damon P. Martinez joined Attorney General Lynch and Deputy Attorney General Yates in recognizing Mr. Adams for his outstanding service as a Tribal Special Assistant U.S. Attorney (Tribal SAUSA) to tribal communities and Native American women in New Mexico.
In her prepared remarks, Attorney General Lynch told the awardees, “Our honorees include career executives and supervisors; Assistant U.S. Attorneys and Special Assistant U.S. Attorneys; appellate attorneys and law enforcement officials; administrators, paralegals, and public affairs officers," said Attorney General Lynch. "These individuals, and so many others, have faced daunting and sometimes dangerous challenges. They have dedicated their leadership and their expertise, their time and their energy, to the service of their mission. And they have remained devoted, at all times, to the high ideals and deeply-held values that animate our country and our cause."
Attorney General Lynch commended Mr. Adams for his significant contributions to enhancing public safety in Indian Country and his commitment to combating violence against Native American women. In his capacity as the Tribal SAUSA for New Mexico, Mr. Adams was responsible for developing and implementing the USAO’s Tribal SAUSA Pilot Project, one of five pilot projects sponsored and funded by the Justice Department’s Office on Violence Against Women (OVW). Mr. Adams’ responsibilities as Tribal SAUSA included investigating and prosecuting crimes against Native American women and children. He also trained tribal prosecutors and tribal, local, state and federal officers in federal law, procedure and investigative techniques to increase the likelihood that every viable crime of domestic violence, dating violence, sexual assault, and stalking offense against Native American women and children is prosecuted in either federal court or tribal court, or both.
“This award is a fitting recognition of David Adams’ extraordinary contributions to tribal communities and Native American women in New Mexico,” said U.S. Attorney Damon P. Martinez. “Domestic violence and sexual assault are human rights issues, and the violence perpetuated against Native American women is epidemic. It is the right of every Native American woman to be free of fear, to be free of violence, and to be free of ever having to be a victim. OVW’s Tribal SAUSA Pilot Project enabled the USAO prioritize the prosecution of violent offenses against Native American women. David embraced the Project and has become a major player in the Justice Department’s effort to bring justice to Native American women.”
Mr. Adams, a member of the Sault St. Marie Tribe of Chippewa Indians in Michigan, graduated from the University of New Mexico School of Law in 2007. He was the chief prosecutor for the Pueblo of Laguna, N.M., from 2007 to 2012. Mr. Adams became the USAO’s Tribal SAUSA in 2012 and served in that role until Oct. 2014, when he was sworn in as an Assistant U.S. Attorney. Mr. Adams is assigned to the USAO’s Indian Country Crime Section, where he continues to do the important work for which he was recognized today.
EOUSA provides oversight, general executive assistance, and direction to the 94 United States Attorneys’ offices around the country. For more information on EOUSA and its mission, visit http://www.justice.gov/usao.
Two Sentenced for Distributing Heroin that Led to OverdoseRead the Press Release
Harrisonburg, VIRGINIA – A pair of Winchester, Virginia residents, who pled guilty to distributing heroin earlier this year, were sentenced today in the United States District Court for the Western District of Virginia in Harrisonburg.
Dennis Keith Getz, 38, and Brandi Nichole Marple, 29, both of Winchester, previously pled guilty to one count of distributing heroin in connection with a fatal heroin overdose. Today in District Court, Getz was sentenced to 222 months of federal incarceration. In a separate hearing, Marple was sentenced to 114 months of federal incarceration.
“Heroin overdose deaths continue to plague areas of the Western District and my office will continue to work alongside our state and local law enforcement partners to investigate and prosecute those who sell this deadly substance,” Acting United States Attorney Anthony P. Giorno said today. “I want to emphasize the importance of continuing to work with our community partners to explore treatment and prevention options as part of the overall strategy to address the heroin abuse problem.”
Marple and Getz have admitted that on March 31, 2014 they traveled to Baltimore, Maryland and purchased heroin. They returned to Winchester and sold a portion of that heroin to A.B.L., who was found deceased the next morning. During the course of their investigation, members of the Northwest Virginia Regional Drug Task Force and the Drug Enforcement Administration located the victim’s cell phone which showed a text message conversation between the victim and Marple discussing the purchase of $100 of heroin. Heroin packaging that was found with the victim matched a description from Marple and the packaging of heroin recovered from Getz’s residence the next day.
When contacted by law enforcement, both Getz and Marple admitted to purchasing the heroin in Baltimore and later selling it to A.B.L.
The investigation of the case was conducted by the Northwest Virginia Regional Drug Task Force and the Drug Enforcement Administration. The Task Force includes law enforcement from the counties of Frederick, Clarke, Shenandoah, Warren and Page as well as the cities and towns of Winchester, Front Royal and Strasburg. Assistant United States Attorney Elizabeth G. Wright prosecuted the case for the United States.
Twin Cities Couple Indicted for Sex Trafficking of Four Teenage GirlsRead the Press Release
United States Attorney Andrew M. Luger today announced the indictment of PHILLIP DWAYNE LLOYD a/k/a “PC,” 43, and RAQUEL MONE BELCHER, 29, for trafficking three teenage girls for the purpose of commercial sex. LLOYD is also charged with producing child pornography of one of the trafficked victims. BELCHER is additionally charged with possession of child pornography. The defendants, who were indicted in May, were fugitives until yesterday when they were arrested by United States Marshals in the Chicago-area. The defendants made initial appearances yesterday in United States District Court in the Northern District of Illinois.
According to the indictment and documents filed in court, between January 14, 2015, and January 27, 2015, LLOYD, who is a registered sex offender, and BELCHER, trafficked three girls in and around the Twin Cities for the purpose of commercial sex. All three victims were under the age of eighteen. During this time, LLOYD also made pornographic videos of one of the minor victims engaging in sexually explicit conduct.
According to the indictment and documents filed in court, between August 2, 2010 and August 22, 2010, LLOYD trafficked a fourth juvenile victim for the purpose of commercial sex.
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 U.S. Attorneys’ 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 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.
If you know of any child who may have been a victim of exploitation, please call the National Center for Missing or Exploited Children (NCMEC) at 1-800-THE-LOST (1-800-843-5678) or visit NCMEC’s web site at www.missingkids.com.
This case is the result of an investigation conducted by Homeland Security Investigations, the Minneapolis Police Department, Anoka County Sheriff’s Office, the Federal Bureau of Investigation, and the United States Marshals.
This case is being prosecuted by Assistant U.S. Attorney Laura M. Provinzino.
Defendant Information:
PHILLIP DWAYNE LLOYD a/k/a “PC,” 43
Coon Rapids, Minn.
Charges:
- Sex trafficking of a minor or by force, fraud, or coercion, 4 counts
- Production of child pornography, 1 count
RAQUEL MONE BELCHER, 29
Minneapolis, Minn.
Charges:
- Sex trafficking of a minor or by force, fraud, or coercion, 3 counts
- Possession of child pornography, 1 count
###
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
The charges are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Three People Arrested in Puerto Rico in a Contractor Major Scheme to Defraud the U.S. Department of Veterans AffairsRead the Press Release
On June 3, 2015, a federal grand jury in the District of Puerto Rico returned a five count indictment charging Jose A. Rosa-Colon, his brother and business partner, Ivan Rosa-Colon and Louis Enrique Torres with a multi-million dollar Service-Disabled Veteran-Owned Small Business (SDVOSB) scheme to defraud the U.S. Department of Veteran Affairs. The charges include major fraud against the United States and wire fraud. This investigation was conducted by Special Agents from the U.S. Department of Veteran Affairs, Office of Inspector General, Criminal Investigations Division.
The indictment unsealed in federal court today alleges that from on or about 2007 to 2014, Ivan Rosa-Colon, Jose Rosa-Colon and Torres conspired to use Jose Rosa-Colon’s service-disabled veteran status to create BELKRO General Contractors, which was a pass- through or front company for Ivan Rosa-Colon’s other business, IRC Air Contractors.
The indictment alleges that Ivan Rosa-Colon and Louis Torres used Jose Rosa-Colon’s service-disabled veteran status to certify and register BELKRO General Contractors in various government databases as a SDVOSB after Ivan Rosa- Colon learned that President George W. Bush would be signing a government stimulus package encouraging the use of SDVOSB. The stimulus package would allow for government agencies to award non-competitive, set-aside or sole-source government contracts to SDVOSB like BELKRO General Contractors.
The indictment further alleges that Jose Rosa-Colon, owner of BELKRO General Contractors, was employed as a full-time U.S. Postal Service Carrier; he was not in charge of the day to day operations of BELKRO General Contractors. Jose Rosa-Colon was simply a figurehead or “rent-a-vet”, who was being used for his service-disabled veteran status to obtain contracts for his brother Ivan Rosa-Colon’s company. As a result of the scheme, BELKRO General Contractors unlawfully received set-aside and/or sole-source SDVOSB contracts from the U.S. Department of Veterans Affairs, including contracts involving American Recovery and Reinvestment Act (ARRA) funds.
If convicted, they face a term of 20 years in prison as to each wire fraud charge and up to ten years in prison for the charges of major fraud against the United States. Additionally, they face fines of up to $250,000 and up to three years of supervised release as to each count.
This indictment was announced today by U.S. Attorney Rosa Emilia Rodríguez-Vélez for the District of Puerto Rico, Special Agent in Charge Monty Stokes for the Southeast Field Office, Department of Veterans Affairs, Office of Inspector General, Criminal Investigations Division and Acting Special Agent in Charge Sharon Johnson for the Eastern Regional Office, Small Business Administration, Office of Inspector General. The government is represented by Assistant U.S. Attorney Julia Diaz-Rex.
Members of the public are reminded that an indictment constitutes only charges and that every person is presumed innocent until their guilt has been proven beyond a reasonable doubt.
Three More Charged in Federal Steroid and Prescription Narcotic Distribution InvestigationRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that a federal grand jury in New Haven has returned a superseding indictment charging 11 individuals with steroid and prescription pill distribution offenses. Eight of the individuals charged in the superseding indictment were arrested in April, and three individuals were arrested this morning.
According to allegations contained in court documents and statements made in court, a long-term investigation led by the Federal Bureau of Investigation, Drug Enforcement Administration and Homeland Security Investigations revealed that former Newtown Police sergeant Steven Santucci was receiving shipments of steroid ingredients from China and manufacturing and distributing wholesale quantities of steroids. The investigation further revealed that other members of the conspiracy were distributing prescription pills, including oxycodone.
Charged in the 12-count superseding indictment are:
STEVEN SANTUCCI, 38, of Waterbury
ALEX KENYHERCZ, 28, of Ansonia
MARK BERTANZA, 33, of Shelton
JASON CHICKOS, 46, of Bridgeport
FRANK PECORA, 53, of Derby
JEFFREY GENTILE, 33, of Ansonia
STEVEN FERNANDES, 54, of Southington
MICHAEL D. MASE, 32, of Sherman
GUIDO VOLPE, 36, of Prospect
JOHN KOCH, 48, of Coventry
LOUIS BORRERO, 52, of Ansonia
SANTUCCI, KENYHERCZ, BERTANZA, CHICKOS, PECORA, GENTILE, FERNANDES and MASE were arrested in late April and were charged by indictment on May 6, 2015. VOLPE, KOCH and BORRERO were arrested today.
The superseding indictment charges all of the defendants with one count of conspiracy to distribute anabolic steroids, an offense that carries a maximum term of imprisonment of 10 years and a fine of up to $500,000. SANTUCCI, KENYHERCZ and BERTANZA are also charged with six counts of possession with intent to distribute anabolic steroids, an offense that carries the same statutory penalties.
The superseding indictment also charges KENYHERCZ, BERTANZA, GENTILE, PECORA and BORRERO with one count of conspiracy to distribute and to possess with intent to distribute oxycodone, an offense that carries a maximum term of imprisonment of 20 years and a fine of up to $1 million. PECORA is also charged with one count of possession with intent to distribute, and distribution of, oxycodone, and possession with intent to distribute cocaine, both of which carry a maximum term of imprisonment of 20 years and a fine of up to $1 million, and with one count of possession of a firearm by a previously convicted felon, which carries a maximum term of imprisonment of 10 years and a fine of up to $250,000.
In addition, SANTUCCI is charged with one count of conspiracy to launder monetary instruments, which carries a maximum term of imprisonment of 20 years and a fine of up to $500,000. This charge stems from SANTUCCI’s alleged use of proceeds of the sale of anabolic steroids to wire payments to foreign sellers of ingredients to make liquid anabolic steroids, and to purchase drug packaging materials from domestic companies.
PECORA is detained while awaiting trial and the other defendants are released on bond.
During the course of the investigation, law enforcement officers seized hundreds of vials of steroids, approximately 600 grams of raw testosterone powder, approximately 350 grams of powder cocaine, and four long guns.
This matter is being investigated by the Federal Bureau of Investigation, Drug Enforcement Administration, Homeland Security Investigations, with the assistance of the U.S. Marshals Service, U.S. Postal Inspection Service and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
This case is being prosecuted by Assistant U.S. Attorneys Rahul Kale and Robert M. Spector.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
Stockton Woman Sentenced to over 5 Years in Prison for Criminal Tax Case and Money LaunderingRead the Press Release
SACRAMENTO, Calif. — Terrylyn McCain, 67, of Stockton, was sentenced today by United States District Judge Troy L. Nunley to five years and 10 months in prison for tax fraud, making false claims against the United States, and money laundering, United States Attorney Benjamin B. Wagner announced. In addition to the prison term, Judge Nunley ordered McCain to pay $156,373 in restitution, the amount she received early in her false refund scheme.
On March 13, 2015, after a five-day trial, a jury found McCain guilty of four counts of mail fraud for mailing false tax returns, four counts of making false claims against the United States by falsifying personal income tax returns for tax years 2005 to 2008, and three counts of money laundering for buying gold with proceeds of the fraud.
According to court documents and evidence introduced at trial, McCain mailed tax returns to the IRS and claimed that banks, tow truck companies, department stores, interior designers and even her gardener had withheld income due to her. To support her scheme, she utilized false documents that indicated significant tax withholdings, including 1099–OID forms that were purportedly issued by financial institutions such as the Bank of Stockton and national retailers such as Costco and Target. In reality, funds were never withheld, the 1099–OID forms were fraudulent, and McCain’s tax returns were falsely inflated by hundreds of thousands of dollars.
In total, McCain filed at least 12 fraudulent returns that sought nearly $3 million in tax refunds. In just one instance, early in the scheme, the IRS refunded $156,373 to McCain. Within the month, she had used the refund money to purchase approximately $62,000 in gold coins, forming the basis for the money laundering charges.
In sentencing McCain, Judge Nunley told the defendant, “You are a cheat, a liar … you stole from the government and others.”
This case is the product of an investigation by the Internal Revenue Service-Criminal Investigation. Assistant United States Attorneys William S. Wong and Kevin Khasigian are prosecuting the case.
South Sioux City, Nebraska Man to Federal Prison for Iowa Methamphetamine ConspiracyRead the Press Release
A man who conspired to distribute methamphetamine was sentenced June 3, 2015, to more than one year in federal prison.
Victor Gerardo Gonzalez-Hidalgo, 36, from South Sioux City, Nebraska, received the prison term after an October 17, 2014, guilty plea to conspiracy to distribute methamphetamine.
At the guilty plea, Gonzalez-Hidalgo admitted that from September 2013 through May 2014, he was involved in a conspiracy that distributed at least 50 grams of actual (pure) methamphetamine. Gonzalez-Hidalgo admitted to selling one ounce quantities of methamphetamine on nine separate occasions to an undercover law enforcement agent.
Gonzalez-Hidalgo was sentenced in Sioux City by United States District Court Judge Mark W. Bennett. Gonzalez-Hidalgo was sentenced to 21 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a one-year term of supervised release after the prison term. There is no parole in the federal system. Gonzalez-Hidalgo is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and investigated by the Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 14-4046.
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Seven Sacramento Residents Indicted for Identity and Mail Theft SchemeRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a 13-count indictment today against seven Sacramento residents, charging them with conspiracy, access device fraud, aggravated identity theft, and possession of stolen mail, United States Attorney Benjamin B. Wagner announced.
The indictment alleges that co-defendants Steven Khamkeuanekeo, 33, Kay Lee, 26, Chee Yang, 27, Frank Her, 36, Amy Her, 33, Lee Yang, 33, and Tou Her, 36, conspired to use unauthorized access devices at large retailers and stole victims’ identities through stolen mail.
According to the indictment, from July 2014 through April 2015, the conspirators obtained personal information from victims through various methods. The conspirators then used that information to create counterfeit access devices or otherwise used unauthorized access devices to obtain things of value in excess of $1,000. Part of the scheme involved using Target store account numbers to buy large amounts of electronics and other goods at Target locations throughout the Sacramento area. The indictment further alleges that one of the defendants, Frank Her, possessed device-making equipment with the intent to defraud.
In all, the indictment alleges that at least 500 counterfeit and unauthorized access devices were possessed, used, produced, or trafficked by members of the conspiracy, and over 2200 victims have been identified to date as having had their identities or mail compromised as a result of the conspiracy.
This case is the product of an investigation by the United States Postal Inspection Service. Assistant United States Attorney Matthew M. Yelovich is prosecuting the case.
If the defendants are convicted, they face maximum statutory penalties ranging from five to 15 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Sentencings for May 29 - June 4, 2015Read the Press Release
Paul Allen Miller, 25, of Mills, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on June 4, 2015, for being a felon in possession of a firearm. Miller was arrested in Casper, Wyoming. He received 30 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment. This case was investigated by the Natrona County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Erin Meyen, 41, of Cheyenne, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on June 1, 2015, for willful conversion of supplemental security income benefits. This charge arose from Meyen’s unlawful personal use of Social Security benefits meant to support her disabled son. Meyen received two years of supervised probation, was ordered to pay a $100.00 special assessment and was ordered to pay restitution in the amount of $47,468.95. This case was investigated by the U.S. Social Security Administration, Office of the Inspector General.
Eric D. Cox, 37, of Riverton, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on June 1, 2015, for possession of child pornography. Cox was arrested in Riverton, Wyoming. He received 36 months imprisonment, to be followed by five years of supervised release, and was ordered to pay a $100.00 special assessment. Restitution will be determined at a later date. This case was investigated by the Wyoming Division of Criminal Investigation Internet Crimes Against Children Task Force.
Joshua James, 35, of Loveland, Colorado was sentenced by Federal District Court Judge Alan B. Johnson on June 1, 2015, for conspiracy to distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine. James received 168 months imprisonment, to be followed by five years of supervised release, and was ordered to pay a $900.00 fine, a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation.
Craig Thomas Rodgers, 60, of Cheyenne, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on May 29, 2015, for failure to register as a sex offender. Rodgers was arrested in Cheyenne, Wyoming. He received 28 months imprisonment, to be followed by a lifetime term of supervised release, and was ordered to pay a $100.00 special assessment. This case was investigated by the U.S. Marshals Service.
Roger Prado, 34, of Torrington, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on May 29, 2015, for conspiracy to distribute 500 grams of a mixture or substance containing a detectable amount of methamphetamine. Prado was arrested in Torrington, Wyoming. He received 70 months imprisonment, to be followed by four years of supervised release, and was ordered to pay a $400.00 fine and a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal.
Juan Diaz-Canedo, 39, of Mexico, was sentenced by Federal District Court Judge Alan B. Johnson on May 29, 2015, for illegal re-entry of a previously deported alien into the United States. Diaz-Canedo was arrested in Jackson, Wyoming. He received time served, plus ten days, was ordered to pay a $100.00 special assessment and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Ausencio Lopez-Martinez, 25 of Mexico, was sentenced by Federal District Court Judge Scott W. Skavdahl on May 29, 2015 for illegal re-entry of a previously deported alien into the United States. Lopez-Martinez was arrested in Cheyenne, Wyoming. He received time served, plus ten days, was ordered to pay a $100.00 special assessment and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Rochester Man Sentenced for Trafficking in Credit Card AccountsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051
ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Andres Ahmed Vasquez, 30, of Rochester, NY and Miami, FL, who was convicted of trafficking in and possession of unauthorized counterfeit access devices, was sentenced to 46 months in prison by U.S. District Judge Charles J. Siragusa. He was also ordered to pay restitution of approximately $210,000.Assistant U.S. Attorney John J. Field, who handled the case, stated that between June 2012 and May 2014 Vasquez trafficked in, possessed, and used stolen credit card account numbers and codes belonging to more than 250 different victims. The defendant sold this information to others, who created bogus credit cards that were then used to purchase gift cards at local retailers. Vasquez obtained more than $210,000 as a result of his crimes.
This sentencing is the culmination of an investigation by Special Agents of the United States Secret Service, under the direction of Special Agent in Charge C. Todd Laster.
Prior Felon from Silver City Pleads Guilty to Violating the Federal Firearms LawsRead the Press Release
ALBUQUERQUE – Salvador Murillo Vasquez, 34, of Silver City, N.M., pleaded guilty yesterday in federal court in Las Cruces, N.M., to violating the federal firearms laws. Under the terms of his plea agreement, Vasquez will be sentenced to ten years in federal prison followed by a term of supervised release to be determined by the court.
The guilty plea was announced by U.S. Attorney Damon P. Martinez, 6th Judicial Attorney Francesca Martinez-Estevez, Special Agent in Charge Thomas G. Atteberry of the Phoenix Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Marshal Conrad E. Candelaria for the District of New Mexico, and Cabinet Secretary Gregg Marcantel of the New Mexico Corrections Department.
Vasquez was arrested on Nov. 13, 2014, on a criminal complaint charging him with being a felon in possession of a firearm and ammunition on Feb. 5, 2014, in Grant County, N.M. According to the complaint, on that day, law enforcement officers searched Vasquez’s residence pursuant to the terms of his probation on a state conviction and seized a firearm and ammunition. At the time, Vasquez had absconded from his state probation term. In addition, Vasquez was prohibited from possessing firearms or ammunition because he previously had been convicted of accessory to shooting from a motor vehicle resulting in great bodily injury, burglary of a house and distribution of marijuana. Vasquez was subsequently indicted on Feb. 18, 2015, and charged with being a felon in possession of a firearm and ammunition.
Vasquez was arrested on the federal charge after the 6th Judicial District Attorney’s Office concluded state judicial proceedings relating to Vasquez’s violation of the terms of his state probationary terms.
During yesterday’s proceedings, Vasquez pled guilty to a felony information charging him with possession of a stolen firearm. In entering the guilty plea, Vasquez admitted that on Feb. 5, 2014, in Grant County he possessed a firearm which he knew or had reasonable cause to believe was stolen.
Vasquez remains detained pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Las Cruces office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the U.S. Marshals Service, and the Probation and Parole Division of the New Mexico Corrections Department, with assistance from the 6th Judicial District Attorney’s Office.
Assistant U.S. Attorney Edwin Garreth Winstead, III, of the U.S. Attorney’s Las Cruces Branch Office is prosecuting this case 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.
Prior Felon from San Juan County Sentenced to Fifteen Years in Federal Prison for Drug Trafficking and Firearms ConvictionRead the Press Release
ALBUQUERQUE – Casey Wayne Stallings, 30, of Kirtland, N.M., was sentenced this afternoon in federal court in Albuquerque, N.M., for his conviction on methamphetamine trafficking and firearm charges. Stallings was sentenced to 15 years in federal prison followed by five years of supervised release.
U.S. Attorney Damon P. Martinez, Special Agent in Charge Waldemar Rodriguez of Homeland Security Investigations (HSI) in El Paso, Texas, and Commander Kyle Dowdy of the Region II HITDA Narcotics Task Force noted that Stallings was 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.
Stallings and his co-defendant, Jessica Chance Lucero, 25, of Albuquerque, were arrested on May 22, 2014, on an indictment charging them with methamphetamine trafficking and firearms charges. Counts 1 and 2 charged Stallings and Lucero with conspiracy and possession of methamphetamine with intent to distribute. Count 3 charged them with using and carrying a firearm in relation to a drug trafficking crime. Counts 4 and 5 respectively charged Stallings and Lucero with being felons in possession of a firearm. According to the indictment, the defendants committed the five offenses in San Juan County, N.M., on Jan. 27, 2014.
On Feb. 11, 2015, Stallings pled guilty to Counts 2 and 3 of the indictment. In his plea agreement, Stallings admitted that he was a drug dealer and that on Jan. 27, 2014, he possessed a large quantity of methamphetamine at his residence that he intended to sell to his drug customers. Stallings also admitted keeping a firearm in his residence for the purpose of protecting himself from drug customers and other drug dealers who might try to rob him. He also acknowledged that he was prohibited from possessing firearms or ammunition due to his previous felony convictions for robbery, possession of a controlled substance, possession of marijuana, and aggravated assault with a deadly weapon.
Lucero also pled guilty on Feb. 11, 2015. Lucero entered a guilty plea to a felony information charging her with misprision of a felony, and admitted that on Jan. 27, 2014, she failed to report to law enforcement that Stallings was committing federal felony offenses at their residence. More specifically, she admitted knowing that Stallings was selling methamphetamine out of their residence and that he possessed a firearm despite his status as a convicted felon. Lucero was sentenced to five years of probation.
This case was investigated by the Albuquerque office of Homeland Security Investigations and the Region II HIDTA Narcotics Task Force, and was prosecuted by Assistant U.S. Attorneys Lynn Wei-Yu Wang and Samuel A. Hurtado.
The Region II HIDTA Narcotics Task Force is comprised of officers from the Farmington Police Department, San Juan County Sheriff’s Office, Bloomfield Police Department and Aztec Police Department. It is part of the High Intensity Drug Trafficking Areas (HIDTA) program which was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Prior Felon from Albuquerque Pleads Guilty to Federal Carjacking and Firearms ChargesRead the Press Release
ALBUQUERQUE – Jose Rios, 32, of Albuquerque, N.M., pleaded guilty this morning in federal court to federal carjacking and firearms charges. Under the terms of his plea agreement, Rios will be sentenced to 15 years in prison followed by a term of supervised release to be determined by the court.
The guilty plea was announced by U.S. Attorney Damon P. Martinez, 2nd Judicial District Attorney Kari E. Brandenburg, Special Agent Carol K.O. Lee of the FBI’s Albuquerque Division, and Chief Gorden Eden, Jr., of the Albuquerque Police Department.
Rios was indicted on Dec. 17, 2013, and charged with three counts of being a felon in possession of firearms and ammunition (May 9, 2013, July 23, 2013, and Aug. 15, 2013); one count of carjacking on Aug. 14, 2013; and one count of brandishing a firearm during a crime of violence on Aug. 14, 2013. According to the indictment, Rios committed the five crimes in Bernalillo County, N.M. At the time, Rios was prohibited from possessing firearms or ammunition because he previously had been convicted of several felony offenses, including the unlawful taking of a vehicle, aggravated fleeing from a law enforcement officer, and conspiracy to unlawfully take a vehicle.
Rios was arrested on the federal charges on May 9, 2014, after he was transferred to federal custody from state custody where he was facing related state charges. The state charges were dismissed in favor of federal prosecution.
During today’s proceedings, Rios pled guilty to Counts 1, 3 and 4 of the indictment which charged him with being a felon in possession of a firearm and ammunition, carjacking and brandishing a firearm during a crime of violence. In entering the guilty plea, Rios admitted that on May 9, 2013, he unlawfully possessed a revolver and ammunition in Bernalillo County. Rios further admitted that on Aug. 14, 2013, he committed a carjacking when he brandished a firearm at another person so that he could take the person’s vehicle.
Rios has been in custody since his arrest and remains detained pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Albuquerque office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Albuquerque Police Department, with assistance from the 2nd Judicial District Attorney’s Office. It is being prosecuted by Assistant U.S. Attorney Samuel A. Hurtado 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.
President of New Jersey-Based Financial Services Firm Sentenced to 10 Years in Prison for Multimillion-Dollar Securities FraudRead the Press Release
The president of an investment and financial services firm was sentenced today to 120 months in prison for evading taxes and defrauding dozens of investors in New Jersey, Pennsylvania, Texas and elsewhere of $5 million, announced by U.S. Attorney Paul J. Fishman for the District of New Jersey.
Everett C. Miller, 45, of Marlton, New Jersey, previously pleaded guilty before U.S. District Judge Renee Marie Bumb to information charging him with one count of securities fraud and one count of tax evasion. Judge Bumb imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court: Miller was the founder, chief executive officer, president, principal and sole owner of Carr Miller Capital LLC (CMC), an investment and financial services firm based in Marlton, New Jersey. Miller and others solicited investments through the firm from individuals located in New Jersey, Pennsylvania, North Carolina, Arkansas, Texas and elsewhere. CMC had more than 30 affiliates and related entities and more than 75 related bank accounts. Miller controlled the firm’s finances and established himself as synonymous with CMC. Prior to founding CMC in June 2006, Miller was a registered financial advisor at several financial institutions.
Miller admitted that from June 2006 through December 2010, he and others issued promissory notes to more than 190 investors across the United States and Miller and CMC received $41.2 million from these investors. The notes were provided as “securities,” but Miller and CMC never registered the notes as securities with any federal or state agency, nor were the notes exempt from such registration requirements. The notes had a term of nine months and promised the investors returns of seven to 20 percent per year and a return of the principal investment at the end of the nine-month period.
Miller and others falsely represented to the investors that their money would be invested in certain ways, but the investors were not provided with material information about their investments or were misled about the risks of their investments. Miller commingled and pooled the investors’ monies into one of CMC’s 75 related bank accounts. Unbeknown to the investors, Miller used some of the monies in the following ways: to repay prior investors, most in Ponzi scheme fashion, to pay CMC and its related entities’ payrolls and operating expenses and to support Miller’s lifestyle. Miller’s purchases included luxury automobiles; home furnishings and electronic equipment; tickets to entertainment and sporting events; travel, lodging and vacations; meals, entertainment, retail shopping; and groceries.
On Aug. 11, 2009, the Arkansas Securities Department (ASD) initiated an investigation of Miller, CMC and others for selling unregistered securities to investors in the form of the promissory notes. Following the investigation, the ASD issued a cease-and-desist order against Miller, CMC and others from selling the notes.
From August 2009 through December 2010, despite knowing about the ASD’s investigation of the promissory notes and CMC’s inability to pay either the interest or the principal on them, Miller and others continued to sell the notes as unregistered securities to investors. They issued notes to approximately 50 new investors, but never returned any of the principal to the new investors.
Miller admitted that for calendar years 2007, 2008 and 2009, he intentionally failed to provide the Internal Revenue Service (IRS) with any information regarding the proceeds that he personally received in connection with his fraudulent scheme. Miller failed to disclose $218,770, $244,879 and $199,507 for 2007, 2008 and 2009, respectively. In total, Miller admitted failing to report $663,156 in taxable income to the IRS, resulting in a tax loss to the government of $47,342.
At the plea proceeding, Judge Bumb entered a consent judgment and order of forfeiture in the amount of $4,999,400, which constitutes the proceeds Miller obtained as a result of the securities fraud.
In addition to the prison term, Judge Bumb sentenced Miller to three years of supervised release and ordered him to pay restitution of $22.34 million.
U.S. Attorney Fishman credited special agents with the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark, New Jersey; IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larson; and the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates, for the investigation leading to today’s sentencing. He also thanked the Financial Industry Regulatory Authority – Criminal Prosecution Assistance Group and the U.S. Securities and Exchange Commission’s Philadelphia Office for its assistance with this investigation. In addition, he thanked the New Jersey Securities Fraud Prosecution Section, the Arkansas Securities Department and the Texas State Securities Board for their roles in the investigation.
The government is represented by Assistant U.S. Attorney Shirley U. Emehelu of the Economic Crimes Unit in Newark, New Jersey.
This case was brought in coordination with President Barack Obama’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. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.stopfraud.gov.
President of New Jersey-Based Financial Services Firm Sentenced to 10 Years in Prison for Multimillion-Dollar Securities FraudRead the Press Release
Targeted Dozens of Investors Across the Country
CAMDEN, N.J. – The president of an investment and financial services firm was sentenced today to 120 months in prison for evading taxes and defrauding dozens of investors in New Jersey, Pennsylvania, Texas and elsewhere of $5 million, U.S. Attorney Paul J. Fishman announced.
Everett C. Miller, 45, of Marlton, New Jersey, previously pleaded guilty before U.S. District Judge Renee Marie Bumb to an information charging him with one count of securities fraud and one count of tax evasion. Judge Bumb imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
Miller was the founder, chief executive officer, president, principal and sole owner of Carr Miller Capital LLC (CMC), an investment and financial services firm based in Marlton. Miller and others solicited investments through the firm from individuals located in New Jersey, Pennsylvania, North Carolina, Arkansas, Texas and elsewhere. CMC had more than 30 affiliates and related entities, and more than 75 related bank accounts. Miller controlled the firm’s finances and established himself as synonymous with CMC. Prior to founding CMC in June 2006, Miller was a registered financial advisor at several financial institutions.
Miller admitted that from June 2006 through December 2010, he and others issued promissory notes to more than 190 investors across the United States, and Miller and CMC received $41.2 million from these investors. The notes were provided as “securities,” but Miller and CMC never registered the notes as securities with any federal or state agency, nor were the notes exempt from such registration requirements. The notes had a term of nine months and promised the investors returns of 7 to 20 percent per year, and a return of the principal investment at the end of the nine-month period.
Miller and others falsely represented to the investors that their money would be invested in certain ways, but the investors were not provided with material information about their investments or were misled about the risks of their investments. Miller commingled and pooled the investors’ monies into one of CMC’s 75 related bank accounts. Unbeknown to the investors, Miller used some of the monies in the following ways: (1) to repay prior investors, most in Ponzi scheme fashion, (2) to pay CMC and its related entities’ payrolls and operating expenses, and (3) to support Miller’s lifestyle. Miller’s purchases included luxury automobiles; home furnishings and electronic equipment; tickets to entertainment and sporting events; travel, lodging, and vacations; meals, entertainment, retail shopping; and groceries.
On Aug. 11, 2009, the Arkansas Securities Department (ASD) initiated an investigation of Miller, CMC, and others for selling unregistered securities to investors in the form of the promissory notes. Following the investigation, the ASD issued a cease-and-desist order against Miller, CMC, and others from selling the notes.
From August 2009 through December 2010, despite knowing about the ASD’s investigation of the promissory notes and CMC’s inability to pay either the interest or the principal on them, Miller and others continued to sell the notes as unregistered securities to investors. They issued notes to approximately 50 new investors, but never returned any of the principal to the new investors.
Miller admitted that for calendar years 2007, 2008, and 2009, he intentionally failed to provide the IRS with any information regarding the proceeds that he personally received in connection with his fraudulent scheme. Miller failed to disclose $218,770, $244,879 and $199,507 for 2007, 2008 and 2009, respectively. In total, Miller admitted failing to report $663,156 in taxable income to the IRS, resulting in a tax loss to the government of $47,342.
At the plea proceeding, Judge Bumb entered a consent judgment and order of forfeiture in the amount of $4,999,400, which constitutes the proceeds Miller obtained as a result of the securities fraud.
In addition to the prison term, Judge Bumb sentenced Miller to three years of supervised release and ordered him to pay restitution of $22.34 million.
U.S. Attorney Fishman credited special agents with the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark; IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larson; and the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates, for the investigation leading to today’s sentencing. He also thanked the Financial Industry Regulatory Authority – Criminal Prosecution Assistance Group, and the U.S. Securities and Exchange Commission’s Philadelphia Office for its assistance with this investigation. In addition, he thanked the N.J. Securities Fraud Prosecution Section, the Arkansas Securities Department and the Texas State Securities Board for their roles in the investigation.
The government is represented by Assistant U.S. Attorney Shirley U. Emehelu of the Economic Crimes Unit in Newark.
This case was brought in coordination with President Barack Obama’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. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.stopfraud.gov.
Defense counsel: John A. Azzarello Esq., Chatham, N.J
Postal Carrier Pleads Guilty to Stealing MailRead the Press Release
DAYTON, Ohio – Terrence P. Young, 37, of Dayton, pleaded guilty in U.S. District Court to a charge of delay or destruction of mail, in violation of 18 U.S.C. § 1703(a).
Carter M. Stewart, United States Attorney for the Southern District of Ohio, and Scott Balfour, Assistant Special Agent in Charge, U.S. Postal Service Office of the Inspector General, (USPS OIG), announced the plea entered into Tuesday before U.S. District Court Judge Walter H. Rice.
According to court documents, Young, a United States Postal Service carrier, stole Kroger coupons, a Kroger gift card, and a Walmart gift card from mail that had been entrusted to him to deliver. He later used the gift cards at these stores to purchase personal items. When law enforcement officers confronted him, he was found with a mail tub containing more than 200 pieces of first-class mail and approximately 178 pieces of presorted standard mail in the back of his personal car.
Young was employed by the United States Postal Service as a postal carrier from 2010 until March 2015, when he was terminated due, in part, to his theft of mail. His primary job function was to deliver mail along postal route 6, which falls within zip code 45417.
At least 11 customers made complaints at the P.L. Dunbar station in reference to their carrier not delivering their mail. The complaints were similar in nature in that residents advised they were not receiving any mail – including utility bills, business mail, pension checks, insurance correspondence, housing information, court documents and their children’s school information.
“Several customers advised that due to the non-receipt of their mail, they had utilities shut off, lost insurance, missed appointments and court dates, lost out on benefits for their children and were in the process of being evicted from their home without ever receiving notification through the mail,” Assistant United States Attorney Vipal Patel said. “Many had to pay penalties for late payments.”
The parties involved with this case have agreed to a sentencing range of at least one year probation and up to 10 months in prison. Sentencing has been scheduled for 10am on September 8, 2015.U.S. Attorney Stewart commended the cooperative investigation by the USPS OIG, as well as Assistant United States Attorney Vipal Patel, who is representing the United States in this case.
Palm Harbor Oncologist Indicted for Buying Unapproved Cancer Medications from Foreign Sources and Defrauding MedicareRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces the unsealing of a twenty-one count indictment charging Dr. Anda Norbergs (59, Palm Harbor) with nine counts of receiving misbranded drugs in interstate commerce and twelve counts of health care fraud. If convicted, she faces up to three years in federal prison for each count of receiving misbranded drugs and up to ten years on each count of health care fraud. The indictment also notifies Dr. Norbergs that the United States is seeking a money judgment of at least $700,000, which is alleged to be proceeds of the offense.
According to the indictment, Dr. Norbergs, a licensed physician in Florida, was the head doctor, owner, and operator of East Lake Oncology (“ELO”), a cancer treatment clinic located in Palm Harbor. Beginning in at least June 2009, she ordered, and directed others at ELO to order, drugs from foreign distributors, including Quality Specialty Products (“QSP”). The drugs sold to ELO by QSP and the other foreign distributors included drugs from foreign establishments that had not been registered with or approved by the FDA. Many of the drugs were shipped directly to ELO from a location outside the United States, usually the United Kingdom or Canada. The packaging and documents shipped with the drugs showed that they were manufactured and packaged for distribution in foreign countries.
Unbeknownst to patients, these misbranded drugs were then administered at ELO. After administering these drugs to patients, ELO submitted claims for reimbursement to Medicare and other private health care benefit programs. In submitting those claims, Dr. Norbergs falsely represented that the FDA-approved versions of the drugs had been administered, when she knew that unapproved and misbranded versions of those drugs had been given to patients. In so doing, Dr. Norbergs generated profits from the difference between the Medicare reimbursement rates for the FDA-approved drugs and the discounted prices of the misbranded versions of those drugs purchased from foreign distributors.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the U.S. Department of Health and Human Services - Office of Inspector General and the U.S. Food and Drug Administration. It will be prosecuted by Assistant United States Attorney Matthew Jackson.
Patients and/or family members of patients treated by Dr. Norbergs and East Lake Oncology who may have questions or concerns regarding medical treatment received should contact the U.S. Department of Health and Human Services – Office of Inspector General for more information. A dedicated email account has been established. Please contact the case agents at: [email protected].