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Wednesday 22 April 2015
Covington Couple Sentenced for Heroin ConspiracyRead the Press Release
COVINGTON — A Covington, Ky., couple has been sentenced to federal prison for conspiring to distribute heroin in northern Kentucky.
U.S. District Judge David L. Bunning sentenced William Lovelace, 25, to 90 months for conspiracy and possessing a firearm in furtherance of a drug trafficking crime. Tonia Cross received a 24 month sentence for conspiracy. Under federal law, both defendants must serve at least 85 percent of their prison sentence, and upon release, Lovelace and Cross will serve terms of supervised release of 10 and 3 years, respectively.
Lovelace and Cross pleaded guilty in January of this year and admitted they conspired to distribute heroin in Campbell and Kenton Counties on multiple occasions, between May 1, 2014 and August 16, 2014.
Authorities arrested Cross and Lovelace on August 16, 2014, after observing Lovelace, armed with a handgun, sell heroin in Bellevue.
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky; Howard S. Marshall, Special Agent in Charge, Federal Bureau of Investigation; and Colonel Wayne Turner, Chief of Police, Bellevue Police Department, jointly made the announcement today.
The investigation was conducted by the FBI’s Safe Streets Task Force and the Bellevue Police Department. Assistant U.S. Attorney Tony Bracke prosecuted this case on behalf of the federal government.
Court Approves Consent Order to Further Desegregate and Address Racial Inequalities in Huntsville City SchoolsRead the Press Release
The U.S. District Court for the Northern District of Alabama has approved a consent order filed by the U.S. Department of Justice and the Huntsville City Schools to reconfigure school attendance zones, improve access to quality course offerings and address racial discrimination in student discipline, among other areas.
In a 29-page opinion approving the consent order, U.S. District Judge Madeleine Hughes Haikala of the Northern District of Alabama called the plan a “game-changer” in the effort to finally eliminate the effects of state-mandated racial segregation in Huntsville. As the court noted, “the record demonstrates that full and faithful execution of the proposed consent order will enable the district to eliminate the effects of segregation “root and branch” and will pave the way toward a declaration of unitary status…. Now it is up to the district to act.”
The consent order, which amends the longstanding desegregation order in Hereford v. Huntsville Board of Education, resolves the parties’ dispute over the district’s 2014 plan to redraw student attendance zones. The department objected to the plan because it did not further desegregation or remedy racial inequalities in students’ access to quality academic offerings. The consent order was approved by the court after a far-reaching investigation by the department and months of mediation. It will require the district to provide equal educational opportunities to African-American students by:
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revising attendance zones and growing and strengthening magnet programs to improve diversity at many of its schools;
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expanding access for African-American students to pre-kindergarten, gifted programs, advanced course offerings such as Advanced Placement and International Baccalaureate, academic after-school programs, and college counseling;
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implementing measures to promote faculty and administrator diversity;
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ensuring that all students are aware of and can equally participate in extracurricular activities;
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creating positive, inclusive school climates, and ensuring that student discipline is fair, non-discriminatory and does not unnecessarily remove students from classrooms;
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establishing a desegregation advisory committee of students and parents to advise the district and inform the court about implementation of the consent order;
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providing professional development for teachers on such topics as strategies for teaching students from diverse backgrounds, understanding implicit bias and supporting positive student behavior; and
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continuously monitoring racial disparities to ensure meaningful and sustained improvement in student performance, students’ access to courses and rates of student discipline and other areas.
Judge Haikala’s opinion approving the consent order spoke directly to the students saying, “The consent order begins and ends with the district’s students – all of its students…The district believes in you and in your potential for success. We all do…. Think about how much the City of Huntsville will benefit from the contributions that you will make in the years ahead as teachers and engineers, as doctors and lawyers, as artists and musicians. You are an integral part of your community and have so much to offer.”
“This agreement provides for comprehensive remedies that are long overdue for African-American students in Huntsville,” said Principal Deputy Assistant Attorney General Vanita Gupta of the Civil Rights Division. “We at the Civil Rights Division look forward to working with the district, the students and the community to implement the consent decree, instill equity and fairness in Huntsville schools, and strengthen the education provided to all students.”
“All of our children deserve the best possible educational opportunities,” said U.S. Attorney Joyce White Vance of the Northern District of Alabama. “Our communities and our future are strengthened and improved when parties come together, as the Justice Department and Huntsville City Schools did here, to ensure that all children have equal access to quality education.”
The department will monitor and enforce the district’s compliance. The school district may seek a declaration of unitary status and dismissal of the case when it can demonstrate sustained compliance with the terms of the consent order.
The enforcement of Title IV of the Civil Rights Act of 1964, which prohibits discrimination on the basis of race and other factors in public schools, is a top priority of the department’s Civil Rights Division. Additional information about the Civil Rights Division of the department is available on its web site at www.justice.gov/crt.
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Court Approves Consent Order to Further Desegregate and Address Racial Inequalities in Huntsville City SchoolsRead the Press Release
WASHINGTON – The U.S. District Court for the Northern District of Alabama has approved a consent order filed by the U.S. Department of Justice and the Huntsville City Schools to reconfigure school attendance zones, improve access to quality course offerings and address racial discrimination in student discipline, among other areas.
In a 29-page opinion approving the consent order, U.S. District Judge Madeleine Hughes Haikala of the Northern District of Alabama called the plan a “game-changer” in the effort to finally eliminate the effects of state-mandated racial segregation in Huntsville. As the court noted, “the record demonstrates that full and faithful execution of the proposed consent order will enable the district to eliminate the effects of segregation “root and branch” and will pave the way toward a declaration of unitary status…. Now it is up to the district to act.”
The consent order, which amends the longstanding desegregation order in Hereford v. Huntsville Board of Education, resolves the parties’ dispute over the district’s 2014 plan to redraw student attendance zones. The department objected to the plan because it did not further desegregation or remedy racial inequalities in students’ access to quality academic offerings. The consent order was approved by the court after a far-reaching investigation by the department and months of mediation. It will require the district to provide equal educational opportunities to African-American students by:
- revising attendance zones and growing and strengthening magnet programs to improve diversity at many of its schools;
- expanding access for African-American students to pre-kindergarten, gifted programs, advanced course offerings such as Advanced Placement and International Baccalaureate, academic after-school programs, and college counseling;
- implementing measures to promote faculty and administrator diversity;
- ensuring that all students are aware of and can equally participate in extracurricular activities;
- creating positive, inclusive school climates, and ensuring that student discipline is fair, non-discriminatory and does not unnecessarily remove students from classrooms;
- establishing a desegregation advisory committee of students and parents to advise the district and inform the court about implementation of the consent order;
- providing professional development for teachers on such topics as strategies for teaching students from diverse backgrounds, understanding implicit bias and supporting positive student behavior; and
- continuously monitoring racial disparities to ensure meaningful and sustained improvement in student performance, students’ access to courses and rates of student discipline and other areas.
Judge Haikala’s opinion approving the consent order spoke directly to the students saying, “The consent order begins and ends with the district’s students – all of its students…The district believes in you and in your potential for success. We all do…. Think about how much the City of Huntsville will benefit from the contributions that you will make in the years ahead as teachers and engineers, as doctors and lawyers, as artists and musicians. You are an integral part of your community and have so much to offer.”
“This agreement provides for comprehensive remedies that are long overdue for African-American students in Huntsville,” said Principal Deputy Assistant Attorney General Vanita Gupta of the Civil Rights Division. “We at the Civil Rights Division look forward to working with the district, the students and the community to implement the consent decree, instill equity and fairness in Huntsville schools, and strengthen the education provided to all students.”
“All of our children deserve the best possible educational opportunities,” said U.S. Attorney Joyce White Vance of the Northern District of Alabama. “Our communities and our future are strengthened and improved when parties come together, as the Justice Department and Huntsville City Schools did here, to ensure that all children have equal access to quality education.”
The department will monitor and enforce the district’s compliance. The school district may seek a declaration of unitary status and dismissal of the case when it can demonstrate sustained compliance with the terms of the consent order.
The enforcement of Title IV of the Civil Rights Act of 1964, which prohibits discrimination on the basis of race and other factors in public schools, is a top priority of the department’s Civil Rights Division. Additional information about the Civil Rights Division of the department is available on its web site at www.justice.gov/crt.
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Corpus Christi Man Sentenced for Sexual Exploitation of A ChildRead the Press Release
CORPUS CHRISTI, Texas – Sylvestre Reyes, Jr., 40, of Corpus Christi, has been ordered to prison for nearly 25 years following his conviction of sexual exploitation of a child, announced U.S. Attorney Kenneth Magidson. Reyes pleaded guilty in February 2015.
Today, Senior U.S. District Judge sentenced Reyes to 290 months in federal prison and will be on supervised release for the rest of his life. He must also register as a sex offender
In June 2014, law enforcement was dispatched to Driscoll Children’s Hospital in reference to a sexual assault of a child. The victim was identified and confirmed the abuse. Authorities conducted a search warrant and seized the cellular telephone of both Reyes and the victim which resulted in the discovery of 42 images of a child involved in sexually explicit conduct.
Reyes has remained in custody since his arrest where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future. The charges against Reyes were the result of an investigation conducted by Homeland Security Investigations and Corpus Christi Police Department – Internet Crimes Against Children Task Force.
This case, prosecuted by Assistant U.S. Attorney (AUSA) Hugo R. Martinez and Special AUSA Brittany Jensen, 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."
Columbus Bank Robber SentencedRead the Press Release
James Brennan, aged 50, of Columbus, Georgia was sentenced to serve 85 months in federal prison for robbing the Regions Bank in Columbus, Georgia on October 14, 2014. The sentence was handed down by the Honorable Clay D. Land, Chief U.S. District Court Judge, on April 22, 2015, in Columbus, Georgia.
On January 13, 2015, Mr. Brennan entered a plea of guilty to bank robbery, admitting that on October 8, 2014, he donned a white baseball cap, covered his face with a green bandana and entered the Regions Bank on Veterans Parkway in Columbus with what appeared to be a black semi-automatic pistol in his right hand and a small cardboard box in his left hand. Mr. Brennan then pointed the firearm at a bank teller and took U.S. currency from her. He placed the currency in the cardboard box and exited the bank through the rear doors.
“Mr. Brennan not only robbed the bank, he terrorized the employees with his conduct. With a sentence of more than seven years, it will be a long time before he has the chance to attempt make any more illegal withdrawals,” said U.S. Attorney Michael Moore.
The case was investigated by the Federal Bureau of Investigation (FBI) and the Columbus Police Department. Assistant United States Attorney Crawford L. Seals prosecuted the case for the Government.
Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
Cherryvale Man Convicted on Child Porn ChargesRead the Press Release
WICHITA, KAN. - A federal jury today convicted a Cherryvale, Kan., man on child pornography charges, U.S. Attorney Barry Grissom said.
Daniel Hosier, 35, Cherryvale, Kan., was convicted on one count of possession of child pornography and one count of distribution of child pornography.
During trial, prosecutors presented evidence that on March 28, 2013, Hosier emailed images of child pornography on Yahoo. They also presented evidence that on July 18, 2013, he possessed child pornography on laptop computers and on a smartphone.
Sentencing is set for July 13. He faces a penalty of not less than five years and not more than 20 years in federal prison and a fine up to $250,000 on the distribution count, and a maximum penalty of 10 years and a fine up to $250,000 on the possession count. Grissom commended the Montgomery County Sheriff’s Office, the FBI investigated and Assistant U.S. Attorney Jason Hart for their work on the case.
Chapmanville man pleads guilty to selling opanaRead the Press Release
CHARLESTON, W.Va. – A Chapmanville, W.Va. man admitted to selling the powerful prescription painkiller oxymorphone, commonly known as Opana. Joseph Allen Rogers, 41, pleaded guilty today in federal court in Charleston to distribution of oxymorphone, announced U.S. Attorney Booth Goodwin.
Rogers admitted that he sold Opana to a confidential informant on three separate occasions on April 14, 15, and 16, 2014. Officers with the U.S. 119 Task Force also executed a search warrant on Rogers’ residence and located additional oxymorphone, oxycodone, cash, and a firearm.
Rogers faces up to 20 years in prison when he is sentenced on August 10, 2015 by United States District Judge John T. Copenhaver, Jr.
The investigation was conducted by the U.S. 119 Task Force and the West Virginia State Police. Assistant United States Attorney Haley Bunn is handling the prosecution.
The prosecution is part of an ongoing effort by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
Canadian Man Sentenced for Making A False Statement Involving A Smuggling Attempt at the BorderRead 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 Tonin Ndoja, 50, a citizen of Canada, who was convicted of making a false statement to a U.S. Customs and Border Protection Officer involving his attempt to smuggle aliens into the United States, was sentenced to time served by U.S. District Judge Richard J. Arcara.Assistant U.S Attorney Scott S. Allen, Jr., who handled the case, stated that on November 12, 2014, Ndoja attempted to enter the United States from Canada at the Peace Bridge. The defendant, a Free and Secure Trade (FAST) card holder and member of the trusted traveler program, was driving a tractor trailer carrying rolled steel. During a secondary inspection, officers with Customs and Border Protection discovered Ndoja and Bardok and Kleda Tusha, both citizens of Albania, hidden inside the cab of the tractor trailer under a blanket.
Defendants Bardok and Kleda Tusha pleaded guilty to a misdemeanor charge of illegal entry and were sentenced to time served.
The case is the result of an investigation by Customs and Border Protection, under the direction of Acting Director of Field Operations Rose Hilmey.
California man pleads guilty to making Church Point school shooting threatRead the Press Release
LAFAYETTE, La. – United States Attorney Stephanie A. Finley announced today that a California man pleaded guilty to communicating a hoax that a school shooting would occur in Church Point, La.
Randall Swanson, 54, of Sacramento, Calif., pleaded guilty before U.S. District Judge Richard T. Haik to one count of false information or hoaxes. According to evidence presented at the guilty plea, during an online conversation on December 15, 2012, Swanson sent an online message to a person he believed to be from Church Point, that “the next school massacre happing in ur town.” Swanson followed the online message with photographs and other information about how the crime would occur. Swanson sent the message the day after the Sandy Hook Elementary School Shooting. Swanson also sent pictures from Church Point indicating he was present in Church Point. The victim who received the messages contacted local and state authorities. Swanson later admitted he was in California when the messages were sent, and his intentions were to alarm the person he had been messaging online.
Swanson faces five years in prison, three years of supervised release and a $250,000 fine. A sentencing date was not set.
“The shooting at Sandy Hook Elementary was a tragedy that our state and nation mourned,” Finley stated. “This defendant used that tragedy to perpetuate a hoax and caused confusion wasting the time and resources of first responders in the region. Those who make such false threats will be prosecuted to the fullest extent of the law.”
The FBI, Louisiana State Police and Church Point Police Department investigated the case. Assistant U.S. Attorney Myers P. Namie is prosecuting the case.
Calera Man Sentenced to 60 Months Probation, $53,000 Restitution for False StatementRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that MICHAEL GLENN VALLES, age 47, of Calera, Oklahoma, was sentenced to 5 years probation with 8 months of home confinement for making a False Statement, in violation of Title 18, United States Code, Section 1014. The Defendant was also ordered to pay $53,560.28 in restitution.
The charge arose from an investigation by the United States Department of Agriculture, Office of Inspector General. The defendant was indicted in November, 2014 and pled guilty in December, 2014.
The Indictment alleged that on or about January 22, 2010, within the Eastern District of Oklahoma, the defendant, knowingly made a false statement for the purpose of influencing the action of the United States Department of Agriculture, Farm Service Agency in connection with a security agreement in which the defendant listed $80,739.19 in value of cattle that he had purchased in August and September 2009 when in truth and in fact, as the defendant well knew, he had only purchased $27,178.91 worth of cattle during that time period.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing.
Assistant United States Attorney Melody Nelson represented the United States.
Buffalo Man Sentenced on Drug and Money Laundering ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051
BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Anthony Avery, 47, of Buffalo, NY, who pleaded guilty to conspiracy to possess with intent to distribute, and to distribute, five kilograms or more of cocaine and money laundering, was sentenced to 120 months in prison by Senior U.S. District Judge William M. Skretny.Assistant U.S. Attorney Timothy C. Lynch, who handled the case, stated that beginning in early 2010 and continuing through June 14 2011, the defendant distributed between five and 15 kilograms of cocaine in the Buffalo area. Avery initially obtained cocaine from a source in Ohio. This source utilized Linda Johnson to transport the cocaine to Avery in Buffalo. Later on, Avery obtained cocaine from Tyree Bishop, who was obtaining the cocaine in Detroit, Michigan.
Co-defendants Spiwe Barnes, Linda Johnson and Tyree Bishop have all been convicted.
The sentencing is the culmination of an investigation by the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Division, the Buffalo Police Department, under the direction of Commissioner Daniel Derenda, and the Erie County Sheriff’s Department, under the direction of Sheriff Timothy Howard. Assistance was also provided by the Erie County District Attorney’s Office, under the direction of Frank Sedita.
Buffalo Man Sentenced for Cocaine ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Charles Palmer, Sr., 51, of Buffalo, NY, who was convicted of conspiracy to possess with intent to distribute, and to distribute, five kilograms or more of cocaine, was sentenced to 12 years in prison by Senior U.S. District Judge William M. Skretny.
Assistant U.S. Attorney Frank T. Pimentel, who handled the case, stated that between November 2010 and June 2011, Palmer conspired with others to distribute cocaine in the City of Buffalo. On May 20, 2011, June 2, 2011 and June 7, 2011, the defendant sold cocaine to a confidential source working with the Federal Bureau of Investigation.
Palmer is the last of 11 defendants charged in the conspiracy to be convicted and sentenced.
The sentencing is the culmination of an investigation by the Federal Bureau of Investigation
Buffalo Man Pleads Guilty to Possession of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Timothy W. Marlnee, 58, of Buffalo, NY, pleaded guilty to possession of child pornography before U.S. District Court Judge Richard J. Arcara. The charge carries a minimum penalty of 10 years, am maximum of 20, and a $250,000 fine.
Assistant U.S. Attorney Scott S. Allen, Jr., who is handling the case, stated that on November 13, 2013, law enforcement officers searched the defendant’s residence on Chippewa St. in Buffalo. The officers recovered a laptop computer being used by the Marlnee. A subsequent forensic examination determined that the computer contained over 950 images of child pornography. Some of the images depicted children under the age of 12 years old. Some of the images also contained depictions of violence. Marlnee is a registered sex offender as a result of state convictions in 1985 and 1993.
The plea is the culmination of an investigation by the Federal Bureau of Investigation’s Child Exploitation Task Force which includes the Buffalo Police Department, Cheektowaga Police Department, and Niagara County Sheriff’s Office.
Sentencing is scheduled for August 3, 2015 at 1:00 p.m. at Judge Arcara.
Brevard County Man Sentenced to More Than 30 Years for Child Exploitation OffenseRead the Press Release
Orlando, Florida – Senior United States District Judge John Antoon, II has sentenced Jonathan Tyler Prive (26, West Melbourne) to 30 years and 5 months in federal prison for attempting to induce a minor to engage in illegal sexual activity using the Internet. In addition, the Court ordered him to serve a life term of supervision, and to register as a sex offender upon his release from prison. Prive pleaded guilty on August 27, 2014.
According to court documents, in September and October 2013, an undercover agent with the Brevard County Sheriff’s Office conducted an investigation into an individual identified as Michael Glenn Glascock. The undercover investigation revealed that Glascock was sexually abusing a three-year-old minor victim, producing child pornography images of the minor victim, and distributing some of these images to others. Law enforcement agents eventually arrested Glascock at his residence in Brevard County, located the minor victim, and executed a search warrant at Glascock’s residence. A forensic examination of Glascock’s electronic devices and a review of his email accounts revealed emails between Prive and Glascock. In these emails, the two discussed a prior incident where Prive had sexually abused the minor victim at Glascock’s home, while Glascock was present. After discovering these emails, the undercover agent used Glascock’s email account to initiate online communications with Prive.
On November 4, 2013, and November 5, 2013, Prive communicated with the undercover agent via the Internet and emails and arranged to meet the agent, who was posing as Glascock in these emails, for the purpose of engaging in illegal sexual activity with the minor victim for a second time. Prive agreed to meet at a residence in Brevard County, where Prive thought the minor victim would be present. Agents followed Prive as he travelled to the street where this residence was located. Before Prive arrived at the residence, agents arrested him and recovered a packet of lubricant that he had brought for his planned meeting with the minor victim.
On August 18, 2014, Glascock also pleaded guilty to producing child pornography and attempted online enticement of a minor. On February 6, 2015, Judge Antoon sentenced him to life in federal prison.
“This strong sentence lets predators know that they cannot get away with the sexual exploitation of our children.” said Susan L. McCormick, special agent in charge of HSI Tampa. “HSI will continue to relentlessly pursue these criminals to make our communities safer.”
This case was investigated by the Brevard County Sheriff’s Office and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It was prosecuted by Assistant United States Attorney Andrew C. Searle.
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 United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Beckley man sentenced in federal court for heroin distributionRead the Press Release
BECKLEY, W.Va. – United States Attorney Booth Goodwin announced today that a Beckley was placed on probation for three years for his conviction for selling heroin. Mario Walton, age 28, of previously pled guilty in January of 2015, to selling heroin to a person cooperating with law enforcement authorities. The drug deal took place on Airport Road in Beaver, Raleigh County, West Virginia.
This case was investigated by the Beckley Raleigh County Drug and Violent Crime Task Force and is being prosecuted under the Beckley Pill Initiative directed by the United States Attorney’s Office.
This case is part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of pills and heroin in communities across the Southern District.
Bay Area Psychologist Sentenced to Four Months in Prison for Submitting Falsified Billing Records to Federal Workers’ Compensation ProgramRead the Press Release
SAN FRANCISCO – Helena Weil was sentenced today to four months in prison and ordered to pay restitution of $496,101 related to her submission of billings to the federal Office of Workers’ Compensation Programs (OWCP), announced United States Attorney Melinda Haag and United States Postal Service-Office of Inspector General Special Agent in Charge Eileen Neff.
Weil, 64, of Kensington, California, pleaded guilty on July 2, 2014, to one count of 18 U.S.C. § 1519, which prohibits alteration or falsification of records. Weil was a psychologist licensed to practice by the State of California and maintained a practice in the San Francisco Bay Area. Weil treated numerous U.S. Postal Service and other U.S. Government employee-patients for which she was compensated through the OWCP, which administers Federal Employee Compensation Act programs. Weil was required to submit bills truthfully setting forth (a) the Current Procedural Terminology (“CPT”) codes corresponding to the services she provided to the patients, (b) the names of the U.S. Postal Service and other U.S. Government employees for whom she was providing services; and (c) the date of those services.
Weil admitted that on various dates between approximately March 2006 and December 2009, she submitted bills to the OWCP related to in-person services she supposedly provided to patients while she either was away from California or was in training. In all, Weil admitted that she submitted over 1,100 such billings for payment to the OWCP for dates on which she was traveling out of the state or was in training. The amount of these billings exceeded $175,000. Weil was charged in an information filed on May 23, 2014, and she formally waived indictment on May 29, 2014. The information charged her with one count of alteration or falsification of records in violation of 18 U.S.C. § 1519.
In addition to agreeing to pay restitution for the $175,174 in billings at issue in the information, Weil also agreed under the terms of the plea agreement to pay civil restitution to the United States for (1) $136,529 in billings she made to the OWCP on various other dates in 2008 and 2009 on which she did not provide in-person psychological services and (2) $184,398 in billings to the OWCP in which she improperly billed CPT codes.
The four-month prison sentence was handed down by the Honorable Charles R. Breyer, U.S. District Judge. Judge Breyer also sentenced the defendant to a three-year period of supervised release. The court ordered that the first six months of Weil’s supervised release will be served in home detention. The defendant was ordered to begin serving the sentence on July 24, 2015.
Assistant U.S. Attorney Kyle F. Waldinger is prosecuting the case with the assistance of Jessica Meegan. The prosecution is the result of an investigation by the United States Postal Service-Office of Inspector General.
Baltimore Heroin Dealer Exiled to 12 Years in PrisonRead the Press Release
Baltimore, Maryland – Chief U.S. District Judge Catherine C. Blake sentenced Steven Andrew Young, age 39, of Baltimore, today to 12 years in prison followed by four years of supervised release, after Young pleaded guilty today to conspiracy to distribute and possession with intent to distribute heroin.
The plea and sentence were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; Commissioner Anthony W. Batts of the Baltimore Police Department; and Baltimore City State’s Attorney Marilyn J. Mosby.
According to his plea agreement, from at least January to May 2014, Young obtained large quantities of heroin which he and others broke down and packaged for street-level distribution. Law enforcement officers saw Young using a vehicle during suspected drug transactions, and saw Young selling drugs out of a home on Greencrest Road in Baltimore.
On May 23, 2014, investigators executed search warrants for the vehicle and house, and seized a loaded semi-automatic handgun, two plastic bags containing approximately 47 grams of heroin, 3,700 empty gelatin capsules used to package heroin for street-level distribution, and several large bags of cutting agent.
During his participation in the drug conspiracy, Young admitted that he and his coconspirators distributed between 100 and 400 grams of heroin.
United States Attorney Rod J. Rosenstein commended the DEA, Baltimore Police Department and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Special Assistant United States Attorney Christopher Flagg and Assistant United States Attorney Christopher Romano, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Asset Manager Pleads Guilty to $5 Million Fraud SchemeRead the Press Release
Greenbelt, Maryland – Max Wagenblast, age 35, of Arlington, Virginia, pleaded guilty today to wire fraud in connection with a scheme to steal over $5 million from his company.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
According to the his plea, Wagenblast was employed as an asset manager for a Bethesda company (the company) that was the second largest Special Servicer of commercial real estate mortgages in the United States. As a Special Servicer, the company was responsible for administering defaulted commercial mortgage loans and the real estate securing foreclosed loans. The company performed this service on behalf of the Real Estate Mortgage Investment Conduit (“REMIC”) trust that held the mortgage loans on behalf of the certificate holders of the trust. In its capacity as a Special Servicer, the company collected borrower payments and property cash flow and remitted them to the REMIC trust, which was responsible for distributing those funds to the certificate holders. Wagenblast oversaw both the loans and properties that acted as security for the loans serviced by the company, including the application and utilization of funds generated by the properties he managed.
Wagenblast admitted that he redirected a portion of the funds collected from the properties he managed into the bank accounts of three limited liability companies he controlled. Those redirected funds should have been sent to the company and then forwarded to the REMIC trust bank accounts. Wagenblast obtained these funds in three ways: by sending fake invoices to the property managers and directing them to wire the funds for payment into one of the bank accounts Wagenblast controlled; by creating fake service contracts and again directing the property managers to wire the funds for payment into one of the bank accounts Wagenblast controlled; and by sending the property managers an email requesting that all wires in excess of $10,000 be sent to a bank account Wagenblast controlled.
The company conducted a search of Wagenblast’s work computer and found documents detailing the fraudulent activity, including a spreadsheet detailing each diverted funds transaction that listed the amount taken, the property from where the funds originated, the date of the transaction and the bank account into which the funds were directed. From September 2012 through September 2013, Wagenblast caused over $5 million to be wire transferred into bank accounts he controlled
Wagenblast faces a maximum sentence of 20 years in prison and a fine of $250,000 for wire fraud. U.S. District Judge Theodore D. Chuang scheduled his sentencing for July 20, 2015, at 11:00 a.m.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Since the inception of FFETF in November 2009, the Justice Department has filed more than 12,841 financial fraud cases against nearly 18,737 defendants including nearly 3,500 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein commended the FBI for its work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Bryan E. Foreman, who is prosecuting the case.
Anchorage Man Found Guilty of Multiple Drug Trafficking CrimesRead the Press Release
Anchorage, Alaska-Acting U.S. Attorney Kevin R. Feldis announced today that a jury has found an Anchorage man guilty of two drug trafficking crimes based on his efforts to distribute methamphetamine in June and October of 2014.
Boonchan Yang, a/k/a “Chowmein,” 22, of Anchorage, Alaska, was convicted by the jury after only an hour of deliberation. He was found guilty first of distributing $1100 worth of methamphetamine on June 19, 2014. Four months later, on October 3, 2014, Yang was involved in another drug sale for an entire ounce of methamphetamine. The jury convicted him of felony possession with the intent to distribute as a result of this conduct.
The evidence at trial showed that on June 19, 2014, Yang arranged to sell an informant half an ounce of methamphetamine and an AK-47. Text messages and recorded telephone conversations played at trial captured Yang arranging the deal. Law enforcement also videotaped the deal itself, which allowed the trial jury to actually watch a movie of Yang committing the crime.
On October 3, 2014, Yang was again involved in drug trafficking activity. On that day, the evidence at trial showed that Yang brought an ounce of methamphetamine to a store parking lot in Anchorage intending to sell it for $1700. When he was confronted by law enforcement, Yang tried unsuccessfully to hide the drugs inside the car where he was sitting. Inside the car, he also had dime baggies used for drug distribution and a digital scale.
Senior United States District Court Judge H. Russel Holland presided over the trial. Judge Holland scheduled Yang’s sentencing for 9:00 a.m. on July 7, 2014. Yang faces a mandatory minimum sentence of five years on the counts of conviction and a statutory maximum sentence of up to 40 years.
In announcing the sentence, Mr. Feldis praised the work of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Homeland Security Investigations, IRS Criminal Investigations, and the Anchorage Police Department, whose investigative efforts led to Yang’s conviction.
29 Individuals Indicted for Drug Trafficking in Patillas, PRRead the Press Release
SAN JUAN, Puerto Rico – On April 16, a federal grand jury in the District of Puerto Rico returned an indictment against 29 defendants charged with conspiracy to possess with intent to distribute controlled substances, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The Drug Enforcement Administration is in charge of the investigation, with the collaboration of the Puerto Rico Police Department- Guayama Strike Force.
The 29 defendants are: Ángel Morales-De Jesús, aka “El Gordo;” Javier Fernández-Morales, aka “Pelota;” Javier Fernández-Morales, aka “Pelota;” Jaime Rosario-Valdés, aka “Burro;” Luis Acevedo-Torres, aka “Chiquitin;” Jesús M. González, aka “Randy;” Gilberto Díaz-Torres, aka “Gilbert;” Jorge L. García-Cruz, aka “Gatillo;” Hermes Torres-Vázquez, aka “Sein;” Félix Javier De Jesús-Negrón, aka “Javi Moyi;” Misael Díaz-Torres, aka “Misa;’ Eric Díaz-Torres, aka “Buho;” Charlie M. Ocasio-Ayala; Brian O. Fontanez-Sanabria; Omar De Jesús-Negrón, aka “Omar Moyi;” Jaset Garrafa-Lebrón; Kenneth O. Ayala-Guevara, aka “Guavi;” Nadel Garrafa-Lebrón; Edwin Xavier Pirela-Amaro, aka “Plo Plo;” Josué M. Rivera-Lebrón, aka “Yauti;” Roberto Martínez-Rivera, aka “Picu;” José M. Del Valle-Sánchez, aka “Jossie;” Eric J. Correa-Rodríguez; Wilfredo Montañez, aka “Wilfre;” Miguel Velázquez-Sánchez, aka “Micky;” Jean González-López; Héctor E. Navarro-Santiesteban, aka “Pepito;” Luis A. Laboy-Sánchez, aka “Tony Pitufo;” Alexis Vega-Maldonado; and Ricardo Romero-Baerga, aka “Ricky Dominiqui.”
The indictment alleges that beginning in 2010, the organization distributed crack, cocaine, marihuana and prescription drugs within 1,000 feet of a real property comprising the Public Housing Projects Villas del Caribe, Villa Real and Esmeralda del Sur, Calle Las Flores, El Pueblito, La Quebrada and the Providencia Ward located in the Municipality of Patillas, all for financial gain and profit.
The 29 co-conspirators had many roles in order to further the goals of the conspiracy. The following are the roles as alleged in the indictment: three leaders/drug point owners/drug point administrators; three runners; 23 sellers; enforcers and facilitators. Nine of the defendants are facing one count of possession of firearms, including “high power” rifles, in furtherance of drug trafficking crimes.
It was further a part of the manner and means of the conspiracy that some of the defendants and their co-conspirators would collect money from the members of the organization in order to pay for weapons and for bail when members of the organization were arrested.
Assistant U.S. Attorneys Teresa Zapata-Valladares and Seth Erbe are in charge of the prosecution of the case. If convicted the defendants face a minimum sentence of 10 years up to life in prison. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty beyond a reasonable doubt.
Tuesday 21 April 2015
Waycross Man Sentenced to 25 Years for Production of Child Pornography and Coercion and Enticement of A MinorRead the Press Release
Waycross, GA: Donnel Cornelius Shavers, 23, of Waycross, Georgia, was sentenced yesterday to 25 years in prison by Chief United States District Court Judge Lisa Godbey Wood following his pleas of guilty to charges of production of child pornography and the coercion and enticement of a child under the age of 18 to engage in illegal sexual activity. The prison term will be followed by a life term of supervised release. Shavers will also be required to register as a sex offender upon his release from prison. Shavers pleaded guilty to the offenses on September 2, 2014.
United States Attorney Edward Tarver said, “This investigation again demonstrates the commitment of the U.S. Attorney’s Office to aggressively prosecute individuals who are involved in predatory and exploitative acts directed at children. Clearly, the conduct of this defendant was deplorable and damaging to his victims. We cannot and will not tolerate the types of offenses he committed. His pattern of predatory behavior as one of the many disturbing components of his criminal conduct and the lengthy punishment he received from the Court is completely justified.”
“HSI investigations involving child exploitation fall under Operation Predator, and this case is a clear demonstration of why we use the title of predator for those who seek to victimize the innocent,” said Ryan L. Spradlin, acting special agent in charge of ICE Homeland Security Investigations (HSI) in Atlanta. “The defendant in this case used social media to stalk his prey, enticed them to produce child pornography and then attempted to coerce them into meeting him so he could sexually assault them. Law enforcement has identified nearly a dozen victims of this scheme.”
Ware County Sheriff Randy F. Royal said, “I am proud of our investigator who began the initial investigation, which led to Mr. Shavers’ arrest. I am prouder still of the level of support and the spirit of cooperation between our agency and Homeland Security Investigations, which afforded the manpower and resources needed to broaden the scope of the investigation so that all the victims in this case will get the opportunity for justice.”
Evidence developed during the investigation revealed that Shavers communicated via Facebook with at least 10 minors. These communications led to the production of child pornography and the eventual coercion and enticement of several minor females to engage in sex acts with him.
This prosecution was the result of a joint investigation by the Ware County Sheriff’s Office and Homeland Security Investigations (HSI). This case was brought as part of Project Safe Childhood, which is a nationwide U.S. Department of Justice initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims.
Assistant United States Attorneys Daniel Crumby, Karl Knoche, and Joseph Newman prosecuted the case on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Vancouver, WA Laser Technology Firm Settles Civil Claims it Improperly Received Government GrantsRead the Press Release
nLight Photonics, Inc. (nLight), a privately-held, Vancouver, Washington-based manufacturer of high performance diode and fiber lasers has agreed to pay $420,000 to resolve allegations that between 2004 and 2013, in violation of the False Claims Act, nLight received multiple government grants and contracts for which it did not legitimately qualify, announced Acting U.S. Attorney Annette L. Hayes. A joint investigation by Inspectors General for several of the impacted government agencies and other federal law enforcement agencies confirmed that nLight did not qualify for the government funding it received because of its ownership structure.
The investigation revealed that nLight successfully pursued funding under the Small Business Innovation Research (SBIR) program from the Army, Navy, Air Force, NASA and Department of Energy to further develop its laser technology, which has military and related applications of interest to various government agencies. During the relevant time period, firms seeking SBIR program funding were required, among other things, to be owned and controlled at least 51 percent by individuals or by another business concern that itself was owned and controlled at least 51 percent by individuals. Despite numerous certifications to government agencies that it was SBIR program-eligible, nLight was more than 51 percent owned by multiple businesses, including several venture capital firms, rendering it ineligible, during the period covered by today’s settlement, for the government funding it received.
“There is no tolerance for false certifications when asserting eligibility to participate in SBA programs,” said Inspector General Peggy E. Gustafson of the U.S. Small Business Administration (SBA). “I want to thank the U.S. Department of Justice for its dedication to reaching a settlement in this case.”
“The Department of Energy endeavors to provide contracts and grants to deserving small businesses that are eligible to participate in SBA’s Small Business Innovation Research and Small Business Technology Transfer programs,” said Inspector General Gregory H. Friedman. “Entities that falsely certify their eligibility corrupt the process. This joint investigation, which required cooperation among several agencies, demonstrates the government’s strong commitment to ensuring the integrity of the contracting and grant underwriting process.”
“This settlement is proof of the great work our agents do every day,” said Director Frank Robey of the U.S. Army Criminal Investigation Command's Major Procurement Fraud Unit. “This company tried to take advantage of a system in place to help small business, but our agents, with the help of our law enforcement partners, uncovered their contrivance.”
nLight initially flagged its ineligibility for the SBIR program in response to a request for information by an alert Department of Energy contracting officer overseeing both an nLight SBIR grant as well as an SBIR grant awarded to a company that nLight had acquired.
The claims resolved by today’s settlement are allegations only, and there has been no determination of nLight’s legal liability for the conduct at issue. Further, there is no indication that nLight did not adequately perform the contracts and grants it was ineligible to receive.
This matter was investigated by the SBA’s Office of Inspector General, the Department of Energy Office of Inspector General, the Department of Defense Office of Inspector General, Defense Criminal Investigative Service, the Air Force Office of Special Investigations, the Army Criminal Investigation Command, the Naval Criminal Investigative Service and the NASA Office of Inspector General, with the assistance of the Defense Contract Audit Agency.
The settlement was negotiated by Assistant U.S. Attorney Harold Malkin. Mr. Malkin heads the Affirmative Civil Enforcement section of the U.S. Attorney’s Office, Western District of Washington. The Department of Justice Civil Division’s Commercial Litigation Branch assisted in this matter.
United States Files Suit against Michaels Stores Inc. for Failing to Report Serious Safety Hazard in Shattering Glass VasesRead the Press Release
Permanent Injuries Suffered by Consumers
The Department of Justice and the Consumer Product Safety Commission (CPSC) jointly announced today the filing of a complaint against Michaels Stores Inc. and its subsidiary Michaels Stores Procurement Co. Inc. in the U.S. District Court for the Northern District of Texas.
Michaels is a publicly held corporation headquartered in Irving, Texas. In 2013, Michaels had more than $4.5 billion in sales and 50,600 employees. It is the largest arts and crafts specialty retailer in North America.
The complaint charges that Michaels knowingly violated the reporting requirements of the Consumer Product Safety Act with respect to glass vases that shattered in consumers’ hands, sometimes as the consumer lifted the vase from the Michaels Stores shelf. As set forth in the complaint, Michaels imported and sold the vases, which caused serious injuries to consumers, including lacerations requiring stitches, permanent nerve damage and surgery to repair severed tendons. The complaint, filed by the Department of Justice on behalf of the CPSC, seeks civil penalties and permanent injunctive relief.
“Michaels allegedly failed to report critical information about the safety of one of its products,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer of the Justice Department’s Civil Division. “The Department of Justice will continue to protect the public against companies that put profits over safety.”
In addition to failing to notify the CPSC “immediately” as required by law, the government also alleges that when Michaels finally notified the CPSC, it did so in a misleading way. Michaels’ report conveyed the false impression that Michaels did not import the vases, even though Michaels should have known it was the importer. The complaint asserts that Michaels’ misrepresentation allowed Michaels to avoid legal responsibility for the recall of the vases as well as any obligation to pay costs and expenses associated with a recall.
“We believe that Michaels chose to profit from selling defective vases that put people at risk, instead of following the law and immediately reporting that their vases were shattering and causing great harm to consumers,” said CPSC Chairman Elliot F. Kaye. “To protect the public, companies are required to report potential product hazards and risks to CPSC on a timely basis. That means within 24 hours, not more than a year as in Michaels’ case.”
Michaels sold the vases in its stores from 2006 to 2010. According to the complaint, the vases pose a safety hazard because their walls are too thin to withstand the pressure of normal handling and, as a result, they shatter in consumers’ hands. The complaint alleges that beginning as early as November 2007 and continuing for more than two years, Michaels received numerous consumer complaints that the vases were unsafe because they shattered during normal use and caused serious injuries. The vases were recalled in September 2010.
The matter is being handled by Trial Attorney Kerala Thie Cowart of the Civil Division’s Consumer Protection Branch, Assistant U.S. Attorney Lisa Hasday of the Northern District of Texas and Patricia Vieira of the CPSC’s Office of the General Counsel.
The claims made in the complaint are allegations only, and there has been no determination of liability.
Twenty-Three Members of Violent Drug Trafficking Organization IndictedRead the Press Release
Federal, state and local law enforcement partners made 18 arrests and searched more than a dozen locations in connection with a two year investigation into a violent drug trafficking organization, announced Acting U.S. Attorney Annette L. Hayes. The organization distributed cocaine, heroin and methamphetamine across a wide swath of the greater Seattle metro area. The defendants are scheduled to appear in U.S. District Court in Seattle at 2:00 today.
“These defendants preyed on our community by supplying drugs in neighborhoods across Seattle, and demonstrated a willingness to use violence where it served their purposes,” said Acting U.S. Attorney Annette L. Hayes. “Their criminal activities included hiding weapons and using violence in homeless encampments located along Interstate-5.”
According to the indictment and court records, beginning in February 2013 law enforcement authorities used a variety of tools including telephone wire taps and confidential sources to infiltrate and interdict this drug organization. The investigation determined that the organization distributed approximately 15-20 kilos of cocaine, 10-15 kilos of heroin and 5 kilos of methamphetamine per month. In addition, on multiple occasions members of the drug trafficking organization were arrested with firearms. In one instance a conspirator was arrested with a stolen firearm as he was leaving the ‘Jungle’ homeless encampment. During the investigation law enforcement seized drugs and cash including a September 2014 seizure of two kilograms of cocaine, one pound of methamphetamine and $14,000 cash from a rental car. In March 2015, investigators seized more than $32,000 from a hidden compartment in another vehicle.
Drug activity associated with the organization occurred over a wide geographic area with drug sales occurring at homes and near businesses in Seattle, Renton, Shoreline and Kent. The drug transactions occurred in areas ranging from the parking lot of Viet Wah supermarket near South Jackson Street, the parking lot of Dick’s Drive-In on NE 45th Street, the parking lot of a gas station on Beacon Hill, and at a motel in Tukwila.
“Law enforcement partnerships made today’s operation a success,” said Special Agent in Charge Frank Montoya, Jr., of the FBI’s Seattle division. “Working together in task forces, we tracked these defendants on both sides of Lake Washington, up and down Interstate 5, and even to other states. Our joint resources enabled us to identify key elements of the organization and effectively shut it down.”
“This operation was the result of close cooperation and collaboration between several Federal, State, and Local law enforcement agencies and prosecutors, including investigators from the Eastside Narcotics Task Force and the FBI’s Safe Streets Task Force,” said Bellevue Police Chief Steve Mylett. “I am very proud of the hard work of these dedicated law enforcement professionals. As a result of this large scale operation, a well-organized drug trafficking operation has effectively been dismantled, and the entire Puget Sound region is safer.”
Those arrested on the indictment today include:
Son V. Tran, 28, of Seattle, Washington
Cuong T. Le, 57, of Federal Way, Washington
Niem H. Doan, aka “Linh,” 36, of Everett, Washington
Huy V. Tran, 39, of Seattle, Washington
Patrick Wong, aka “Minh” 48, of Seattle, Washington
Son T. Nguyen, aka “Nine Fingers” aka “Kim,” 42, of Seattle, Washington
Tam C. Nguyen, aka “Andy,” 39, of Tukwila, Washington
Brieanna K. Carlson, 27, of Seattle, Washington
Yen T. Vu, 54, of Seattle, Washington
Phuong A. Nguyen, aka “P,” 42, of Kent, WashingtonVinh Q. Nguyen, 29, of Seattle, Washington
Giang T. Ngo, aka “Uncle Jack,” 51, of Burien, Washington
Phuong H. Nguyen, aka “LJ,” 30, of Kent, Washington
Kenneth W. Thomas, 55, of SeaTac, Washington
Donald K. Jordan, aka “Looney,” 34, of Seattle, Washington
Donald C. Scholoff, 47, of Edmonds, Washington
Steven J. Connell, 47, of Seattle, Washington
Kimberle S. Alojasin, aka “Nguyen,” 56, of South King County, WashingtonThis was an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation, providing supplemental federal funding to the federal and state agencies involved. This investigation was led by the FBI’s Seattle Safe Streets Task Force (SSTF) and Bellevue Police Department’s Eastside Narcotics Task Force (ENTF). The SSTF includes task force officers from the Seattle Police Department, and the ENTF is composed of Bellevue Police Department officers, and agents and officers from the Washington State Patrol, US Postal Inspection Service, and the Redmond, Kirkland, and Mercer Island police departments in partnership with the King County Prosecuting Attorney’s Office. Additional assistance was provided by the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), the Drug Enforcement Administration (DEA) and ICE’s Homeland Security Investigations (HSI), King County Sheriff’s Office, the Washington State Department of Corrections, and the Kent and Tukwila police departments, and the Seattle Fire Department.
The case is being prosecuted by Assistant United States Attorneys Vince Lombardi and Jeffrey Backhus.
Twenty-Seven South Florida Residents Charged in Marriage and Immigration Fraud SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Custom Enforcement’s Homeland Security Investigations (ICE-HSI), Miami Field Office, announce that Inaldo Chavez, 57, of Hialeah, Caridad Baez, 50, of Hialeah, Masiel Puron, 33, of Marathon, Elides Rodriguez Vallejo, 42, of Marathon, Claudio Catapano, 49, of Argentina, Naile Yubero Carrasco, 30, of Hialeah, Enrique Giglio, 32, of Venezuela, Duniesky Alvarez Perez, 26, of Homestead, Angela Cuellar Velandia, 29, of Colombia, Marcos Vila, 25, of Homestead, Olena Pokotiuk, 27, of Ukraine, Dayana Trigueiro, 21, of Homestead, Vladimir Popa, 28, of Moldova, Yinet Hernandez Martinez, 31, of Weston, Camilo Benavides Prieto, 30, of Colombia, Daylin Ramirez Pereira, 24, of Marathon, Igor Singereanu, 29, of Moldova, Jennifer Gutierrez, 22, of Marathon, Serghei Serdiuc, 27, of Moldova, Suset Nodarse Gonzalez, 23, of Coral Gables, Eldar Ben Atar, 28, of Israel, Kassandra Perdomo, 21, of Miami, Efrain Basaldella Landa, 24, of Venezuela, Elio Martinez Alan, 44, of Hialeah, Maria Pinto Camacho, 48, of Venezuela, Jenny Gonzalez, 24, of Miami, and Ido Sharir, 25, of Israel, have been charged by federal indictment with conspiracy to commit marriage fraud and related immigration fraud charges.
According to the indictment, between May 2011 and February 2014, organizers, Chavez and Baez, and recruiters, including Puron, arranged for United States citizens and lawful permanent residents to enter into fraudulent marriages with aliens for the purpose of evading the immigration laws of the United States. Chavez, Baez, and Puron charged the aliens a fee to arrange the fraudulent marriages, notarized the fraudulent marriage licenses, completed the necessary immigration paperwork, and prepared the co-conspirators for their interviews with United States Citizenship and Immigration Services. The United States citizen and lawful permanent resident co-conspirators also charged the aliens a fee to enter into the fraudulent marriages. Aliens Catapano, Giglio, Velandia, Pokotiuk, Popa, Prieto, Singereanu, Serdiuc, Atar, Landa, Camacho, and Sharir, all paid a fee to enter into fraudulent marriages with United States citizens Gutierrez and Jenny Gonzalez, and lawful permanent residents Vallejo, Carrasco, Perez, Vila, Trigueiro, Martinez, Pereira, Suset Gonzalez, Perdomo, and Alan. These fraudulent marriages took place in the Southern District of Florida. In addition, during the time that they were arranging the fraudulent marriages, Chavez and Baez personally attempted to fraudulently obtain naturalization.
United States Attorney Wifredo A. Ferrer stated, “Marriage and immigration fraud is a serious crime that seeks to undermine the integrity and fairness of our immigration system. Our Office will continue to work with our law enforcement partners to investigate these crimes and prosecute those individuals who seek to perpetrate fraudulent immigration schemes.”
“Today’s arrests send a clear message that we will not tolerate individuals defrauding our immigration system for their own personal or financial gain,” said Alysa D. Erichs, Special Agent in Charge of HSI Miami.” HSI will continue to work to ensure that those who attempt to defraud the government will be prosecuted.”
Mr. Ferrer commended the investigative efforts of ICE-HSI and U.S. Citizenship and Immigration Services, who provided significant and valuable support to this investigation. The case is being prosecuted by Assistant U.S. Attorney Vanessa Snyder.
An indictment is only an accusation, and the defendants are presumed innocent until proven guilty.
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.
Travelling minister and Georgia man indicted for their roles in $4.8 million tax fraud conspiracyRead the Press Release
An 11-count criminal indictment was filed charging a travelling minister from Arkansas and a Georgia man for their roles in a $4.8. million tax refund scam, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio, and Kathy A. Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office.
Allen D. Miles, 57, of Little Rock, Arkansas, and Ve Sayavong, 37, of Jonesboro, Georgia, were each charged with one count of conspiracy to commit wire fraud and 10 counts of wire fraud.
The indictment alleges that Miles and Sayavong, acting together with Zinara Highsmith -- who has previously pleaded guilty for her role in the conspiracy -- engaged in a false tax refund scheme in which approximately 2,750 false income tax returns were filed, netting false income tax refunds of approximately $4.8 million.
Miles, the travelling minister, obtained personal identification information from congregants by telling them that he could help them obtain money from an alleged government stimulus fund program. Miles did not tell congregants that income tax returns were going to be filed on their behalf. After he obtained the information, Miles forwarded it to Highsmith, and then Highsmith, Sayavong and others created the false income tax returns that generated refunds based on certain credits for which the taxpayers did not qualify, like the American Opportunity Credit, Making Work Pay Credit, and Earned Income Credit, according to the indictment.
For each refund, Miles collected a $125 commission and Highsmith received $275, from which she paid Sayavong and others; the taxpayers received the balance. Miles received approximately $240,000 and Sayavong received $178,000 for their efforts in the refund scam, which operated between March and July 2011, according to the indictment.
"These defendants were part of a scheme in which they took advantage of their victims' faith and tax credits designed to help the least among us," Dettelbach said.
“This investigation uncovered a fraudulent scheme that attempted to generate millions of dollars,” Enstrom said. “These defendants used deceit and fraud to line their pockets with stolen federal tax refunds and they will be held accountable for their actions.”
If convicted, the defendant’s sentence will be determined by the court after review of the factors unique to this case, including the defendant’s prior criminal record, the defendant’s role in the offense and the characteristics of the criminal conduct. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant U.S. Attorney Michael L. Collyer, following an investigation by the Internal Revenue Service – Criminal Investigations.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove the defendant guilty beyond a reasonable doubt.
Topeka Man Sentenced for Fraud Against USDA Rural DevelopmentRead the Press Release
TOPEKA, KAN. - A Topeka man was sentenced Monday to a month in federal prison and ordered to pay $38,000 in restitution to the U.S. Dept. of Agriculture, U.S. Attorney Barry Grissom said.
Terry Gene Hummer, 64, Topeka, Kan., pleaded guilty to one count of wire fraud. In his plea, he admitted he obtained loans from USDA Rural Development for developing housing in rural areas. He provided false information to Rural Development representing there were substantial funds on deposit in reserve accounts when in fact he had converted most of those funds for his own use. In one instance in 2009, he made false representations that a reserve account contained $29,526 when in fact there was only 69 cents in the account.
Grissom comended the U.S. Department of Agriculture – Office of Inspector General, and Assistant U.S. Attorney Rich Hathaway for their work on the case.
Toledo woman charged for home loan-modification schemeRead the Press Release
A two-count criminal information was filed charging Toledo woman with participating a fraudulent home loan modification conspiracy, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Constance Kanary, 52, was charged with one count of conspiracy to commit mail fraud and one count of mail fraud.
Kanary operated a purported loan-modification operation called Making Home Affordable USA (MHAUSA) from March 2012 through April 2013. The business was primarily located at 120 10th Street in Toledo and used other names, including Federal Home Savings Solutions, National Mortgage Relief Center and others, according to the information.
Kanary was a sales agent at the company. As part of her job, she contacted homeowners in need of loan modifications and encouraged them to participate in the company’s “Home Saver Program” in which they were told to stop paying their mortgages and instead pay a percentage to MHAUSA to demonstrate they could reliably make reduced monthly payments. The participants were also told there was a flat fee, between $495 and $795, for the service, according to the information.
Kanary deposited these monies into an account at Bank of America and spent the money on the scheme’s expenses and made cash withdrawals from the account, according to the information.
If convicted, the defendant’s sentence will be determined by the Court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agencies in this case were the Federal Bureau of Investigation's Toledo Office and the U.S. Department of Housing and Urban Development -- Office of Inspector General. The case is being handled by Assistant United States Attorney Gene Crawford.
An information is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Three Orthodox Jewish Rabbis Convicted of Conspiracy to Kidnap Jewish Husbands in Order to Force Them to Consent to Religious DivorcesRead the Press Release
TRENTON, N.J. - Three Orthodox Jewish Rabbis were convicted at trial today for conspiring to kidnap Jewish men in an effort to force them to give their wives religious divorces, referred to as “gets,” U.S. Attorney Paul J. Fishman announced.
Rabbis Mendel Epstein, 69, of Lakewood, New Jersey; Jay Goldstein a/k/a “Yaakov,” 60, of Brooklyn, New York; and Binyamin Stimler, 39, of Brooklyn, New York, were each convicted on Count One of the indictment, conspiracy to commit kidnapping. Goldstein and Stimler were additionally convicted on Count Five of the indictment, attempted kidnapping. Epstein’s son, David Epstein a/k/a “Ari,” 40, of Lakewood, New Jersey, was acquitted on three counts. The jury deliberated three days following an eight-week trial before U.S. District Judge Freda L. Wolfson in Trenton federal court.
According to documents filed in this case and the evidence at trial:
On Dec. 1, 2009, in Lakewood, an Orthodox Jewish man, Israel Markowitz, was assaulted, placed in a van, tied up, beaten and shocked with a stun-gun until he agreed to give his wife a get.
On Oct. 16, 2010, in Lakewood, another Orthodox Jewish man, Ysrael Bryskman, was assaulted, tied up and beaten until he agreed to give his wife a get.
On Aug. 22, 2011, in Brooklyn, New York, another Orthodox Jewish man, Usher Chaimowitz, and his roommate, Menachem Teitlebaum, were assaulted, tied up, and beaten until Chaimowitz agreed to give his wife a get.
Based upon these incidents, the FBI began an undercover operation in August 2013 in which two FBI agents posed as a wife who was seeking a get from her recalcitrant husband, and her brother, who was trying to help her obtain the get. Over the next several weeks, the undercover agents had multiple recorded phone calls and in-person meetings with defendant Mendel Epstein. In those meetings, Mendel Epstein arranged to have his team kidnap the husband at a warehouse in exchange for $60,000.
On October 9, 2013, Goldstein, Stimler and six other individuals, traveled from New York to a warehouse in Middlesex County, New Jersey, to execute the planned kidnapping of the husband to force him to give the get. They arrived at the warehouse in two dark minivans shortly after 8:00 p.m. Some of the kidnap team members put on masks and entered the warehouse office with the undercover agent posing as the brother. The remaining kidnappers walked around the outside with flashlights. Over the next 15 minutes, members of the kidnap team went in and out of the warehouse office wearing disguises, including ski masks, Halloween masks and bandanas. They discussed their plan for kidnapping and assaulting the husband, how they planned to grab him, pull him down, tie him up, and take his phone. Members of the kidnap team brought with them to the warehouse a 30-foot nylon rope, a blindfold, vodka, license plates they had switched out, and items used to ceremonially record the get. At 8:23 p.m., law enforcement moved into the warehouse office and arrested the eight men, including Goldstein and Stimler. Mendel Epstein was arrested at his Brooklyn home the same night.
The count of conspiracy to commit kidnapping carries a maximum potential penalty of life in prison and a $250,000 fine, or twice the gross gain or loss from the offense. The count of attempted to commit kidnapping carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for July 15, 2015. Nine other individuals previously entered guilty pleas in connection with this conspiracy.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark, and the Lakewood Police for the investigation leading to today’s verdicts.
The government is represented by Assistant U.S. Attorneys R. Joseph Gribko and Sarah M. Wolfe of the U.S. Attorney’s Office in Trenton.
Defense counsel:
Mendel Epstein: Robert G. Stahl Esq. and Laura Gasiorowski Esq., Westfield, New Jersey
Jay Goldstein: Aiden O’Connor Esq., Hackensack, New Jersey
David Epstein: Henry Mazurek Esq., New York
Binyamin Stimler: Nathan Lewin Esq., Washington, D.C. and Gedalia Stern
epstein_mendel_et_al._amended_indictment.pdf
Thomaston Man Pleads Guilty to Insurance Fraud SchemeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, Patricia Ferrick, Special Agent In Charge, Federal Bureau of Investigation, and William Offord, Special Agent in Charge, IRS Criminal Investigation announced that DUSTIN WHITTEN, 32, pleaded guilty on Friday, April 17, 2015, before U.S. District Judge Janet Bond Arterton in New Haven to conspiracy to commit mail and wire fraud.
According to the documents and statements presented in Court, in May 2009, an alleged co-conspirator of WHITTEN’s transferred to WHITTEN a residential property located in Old Forge, New York, while the co-conspirator continued to use the property and pay the mortgage and maintenance expenses. At the time, the co-conspirator was being sued by a creditor who was seeking to collect a debt and identify the co-conspirator’s assets. In March 2011, WHITTEN and the co-conspirator made arrangements for an insurance company to issue a policy on the New York property in WHITTEN’s name. On July 4, 2011, after a bankruptcy court meeting about compensating the co-conspirator’s creditors, the New York property was destroyed in a fire. In September 2011, WHITTEN swore out an insurance claim on the property, representing himself as the owner and seeking compensation of $515,038.50 for the destroyed structure and $92,974.47 for personal property allegedly lost in the fire.
The claim was eventually denied by the insurance company. WHITTEN acknowledged that the co-conspirator, and not WHITTEN, was the true owner of the property, and that a goal of the scheme was to shield the anticipated insurance payout from the co-conspirator’s creditors.
WHITTEN is scheduled to be sentenced on July 13, 2015, before Judge Arterton. He faces maximum penalties of twenty years of imprisonment and a fine of $250,000. Other defendants in the case are scheduled to commence trials on June 4 and August 3, 2015.
This matter is being investigated by the Federal Bureau of Investigation, and Internal Revenue Service – Criminal Investigation. The case is being prosecuted by Assistant U.S. Attorneys Henry K. Kopel and Michael J. Gustafson.
Texas-Based Citizens Medical Center Agrees to Pay United States $21.75 Million to Settle Alleged False Claims Act ViolationsRead the Press Release
Citizens Medical Center, a county-owned hospital in Victoria, Texas, has agreed to pay the United States $21,750,000 to settle allegations that it violated the False Claims Act by engaging in improper financial relationships with referring physicians, the Justice Department announced today.
“The Department of Justice has longstanding concerns about improper financial relationships between health care providers and their referral sources, because those relationships can alter a physician’s judgment about the patient’s true health care needs and drive up health care costs for everybody,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer of the Justice Department’s Civil Division. “In addition to yielding a recovery for taxpayers, this settlement should deter similar conduct in the future and help make health care more affordable.”
“Any type of false claim or improper behavior under our health care fraud laws are serious allegations that will not be taken lightly,” said U.S. Attorney Kenneth Magidson of the Southern District of Texas. “The settlement announced today represents the effectiveness of our continuing efforts and an example of our priorities in this arena.”
The settlement announced today resolved allegations that the hospital provided compensation to several cardiologists that exceeded the fair market value of their services. The settlement also resolved allegations that the hospital paid bonuses to emergency room physicians that improperly took into account the value of their cardiology referrals. The United States contended that these agreements violated the Stark Statute and the False Claims Act. The Stark Statute restricts the financial relationships that hospitals may have with doctors who refer patients to them.
The allegations settled today arose from a lawsuit filed by three whistleblowers, Dakshesh “Kumar” Parikh, Harish Chandna and Ajay Gaalla, under the qui tam provisions of the False Claims Act. Under the act, private citizens can bring suit on behalf of the government for false claims and share in any recovery. The whistleblowers will collectively receive $5,981,250 from the recoveries announced today.
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, United States ex rel. Parikh, et al. v. Citizens Medical Center, et al., Case No. 6:10-cv-64 (S.D. Tex.), was handled by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the Southern District of Texas and the U.S. Department of Health and Human Services’ Office of Inspector General. The claims settled by this agreement are allegations only, and there has been no determination of liability.
Texas-Based Citizens Medical Center Agrees to Pay U.S. $21.75 Million to Settle Alleged False Claims Act ViolationsRead the Press Release
VICTORIA, Texas - Citizens Medical Center, a county-owned hospital in Victoria, has agreed to pay the United States $21,750,000 to settle allegations that it violated the False Claims Act by engaging in improper financial relationships with referring physicians, the Justice Department announced today.
“Any type of false claim or improper behavior under our health care fraud laws are serious allegations that will not be taken lightly,” said U.S. Attorney Kenneth Magidson of the Southern District of Texas. “The settlement announced today represents the effectiveness of our continuing efforts and an example of our priorities in this arena.”
“The Department of Justice has longstanding concerns about improper financial relationships between health care providers and their referral sources, because those relationships can alter a physician’s judgment about the patient’s true health care needs and drive up health care costs for everybody,” said Acting Assistant Attorney General Benjamin C. Mizer of the Justice Department’s Civil Division. “In addition to yielding a recovery for taxpayers, this settlement should deter similar conduct in the future and help make health care more affordable.”
The settlement announced today resolved allegations that the hospital provided compensation to several cardiologists that exceeded the fair market value of their services. The settlement also resolved allegations that the hospital paid bonuses to emergency room physicians that improperly took into account the value of their cardiology referrals. The United States contended that these agreements violated the Stark Statute and the False Claims Act. The Stark Statute restricts the financial relationships that hospitals may have with doctors who refer patients to them.
The allegations settled today arose from a lawsuit filed by three whistleblowers, Dakshesh “Kumar” Parikh, Harish Chandna and Ajay Gaalla, under the qui tam provisions of the False Claims Act. Under the act, private citizens can bring suit on behalf of the government for false claims and share in any recovery. The whistleblowers will collectively receive $5,981,250 from the recoveries announced today.
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 $23.9 billion through False Claims Act cases, with more than $15.2 billion of that amount recovered in cases involving fraud against federal health care programs.
The case, United States ex rel. Parikh, et al. v. Citizens Medical Center, et al., Case No. 6:10-cv-64 (S.D. Tex.), was handled by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the Southern District of Texas and the U.S. Department of Health and Human Services’ Office of Inspector General. The claims settled by this agreement are allegations only, and there has been no determination of liability.
Two Arkansas Brothers Honored Today at National Crime Victim’s Rights Service Awards Ceremony in Washington D.c.Read the Press Release
JUSTICE DEPARTMENT HONORS 12 INDIVIDUALS AND TEAMS FOR ADVANCING RIGHTS AND SERVICES FOR CRIME VICTIMS
Fayetteville, Arkansas – Conner Eldridge, United States Attorney for the Western District of Arkansas, announced today that Matthew Smith of Little Rock, and Dr. Marc Smith of Texarkana, were honored with the Ronald Wilson Reagan Public Policy Award today at the National Crime Victim’s Rights Awards Ceremony in Washington, D.C. The Smith brothers selflessly and courageously spearheaded a change in the law in the State of Arkansas to eliminate the statute of limitations on prosecution of child sex offenders. This extraordinary piece of legislation removed an obstacle to prosecution of those that abuse kids and makes the legal landscape more victim-friendly for future generations of Arkansans.
The Smith brothers had been serially abused by the same coach, Walter Richard Roberts, in their childhood. In 2012, Dr. Smith encountered the perpetrator working with youth at a local baseball field. Dr. Smith contacted law enforcement which led to an investigation in which more than ten adult men were identified as victims of the coach. The state statute of limitations at that time precluded prosecution of the coach for crimes committed when the men were minors in the 1980’s and 1990’s. According to court records and testimony in court, during that time period, Roberts made several trips across state lines with minor children, all under the age of 12 at the time, in order to engage in sexual activity. During one instance, Roberts transported two victims from Arkansas to a business in Texarkana, Texas, where he had the minors get into the back of his van and sexually abused them. Roberts transported one of these same minors again on a separate trip to Wright Patman Lake in Texas, telling the youth to get into the back of his van, where he proceeded to sexually molest the victim. Finally, during the summer of 1988 or 1989, Roberts transported a third victim on a fishing trip to Beard’s Lake in Arkansas. Roberts sexually abused the victim while driving on Highway 71 from Texarkana. During interviews with investigators, Roberts admitted to further sexual abuse of the minor victims. Specifically, Roberts stated that he continued to abuse one of the minors over a five-year period. Roberts was originally indicted on August 22, 2012. He pleaded guilty on November 1, 2012 and was sentenced in May, 2013 to ten years in prison., the statutory maximum.
U.S. Attorney Eldridge commented, "Thanks to leadership of the Smiths, a barrier to the pursuit of justice on behalf of victims of childhood sexual abuse in Arkansas has now been removed. As a result, those that abuse kids in Arkansas will be subject to prosecution for the rest of their lives, regardless of when the abuse is discovered. We should all thank the Smith brothers for their efforts, and we should also continue the fight against child sexual abuse armed with this enhanced ability to bring abusers to justice."
Attorney General Eric Holder presided over the National Crime Victims’ Rights Service Awards ceremony at 2:00 p.m. on Tuesday, April 21. The event honors 12 individuals and programs for their extraordinary actions to bring positive and lasting changes in the lives of crime victims.
"The Department of Justice is proud to recognize the tremendous contributions of dedicated colleagues, passionate advocates and extraordinary partners in the field of victim services," said Attorney General Eric Holder. "From safeguarding survivors of sexual violence to assisting victims of mass marketing fraud, the recipients of today’s awards have been instrumental in our nationwide effort to protect the most vulnerable among us, to prevent and combat crime, and to help victims find hope and seek justice."
The Department’s Office for Victims of Crime leads communities across the country in observing National Crime Victims’ Rights Week and hosts an award ceremony each year. President Reagan proclaimed the first Victims’ Rights Week in 1981, calling for greater sensitivity to the rights and needs of victims. For 2015, the week is observed from April 19 through 25, with the theme Engaging Communities - Empowering Victims.
Following is a list of the award recipients, who were nominated by their colleagues in the field and selected by the Attorney General:
The Ronald Wilson Reagan Public Policy Award honors leadership, innovation and vision that leads to noteworthy changes in public policy that benefit crime victims. Recipients: Dr. Marcus Smith and attorney Matthew Smith, of Little Rock, Arkansas, and Director of Victim Services Suzanne Breedlove of the District Attorneys Council in Oklahoma City.
The Allied Professional Award recognizes an individual or organization outside the victim assistance field for services or contributions to the victims’ field. Recipients: Mary Kay Inc. of Addison, Texas, and Assistant District Attorney Norman A. Gahnof the Milwaukee County District Attorney’s Office.
The Crime Victims Financial Restoration Award recognizes individuals, programs, organizations or teams that developed innovative ways of funding services for crime victims or instituted innovative approaches for securing financial restoration for crime victims. Recipient: A team of representatives from the U.S. Attorney’s Office of the Middle District of Pennsylvania, the department’s Asset Forfeiture Money Laundering Section and U.S. Postal Inspection Service for Harrisburg, Pennsylvania.
The National Crime Victim Service Award honors extraordinary efforts in direct service to crime victims. Recipients: Karen Kalergis, a victim advocate from Austin, Texas, and Executive Director Alecia "Lisa" Thompson-Heth of Wiconia Wawokiya Inc., of the Crow Creek Sioux Indian Reservation, Fort Thompson, South Dakota.
The Crime Victims’ Rights Award honors those whose efforts to advance or enforce crime victims’ rights have benefited crime victims at the state, tribal or national level. Recipient: Laurel Wemhoff, a survivor and advocate from Washington, D.C.
The Professional Innovation in Victim Service Award recognizes a program, organization or individual who has helped to expand the reach of victims’ rights and services. Recipient: Judge Paul M. Herbert of the Franklin County Municipal Court in Columbus, Ohio.
The Special Courage Award recognizes extraordinary bravery in the aftermath of a crime or courageous act on behalf of a victim or potential victim. Recipients: Ronald Cotton and Jennifer Thompson, of Chapel Hill, North Carolina.
The Vision 21 Crime Victims Research Award recognizes individual researchers or research teams that make a significant contribution to the nation’s understanding of crime victims’ issues. Recipient: Rebecca Campbell, of Michigan State University in East Lansing, Michigan.
The Volunteer for Victims Award honors individuals for their extraordinary and selfless efforts resulting in positive and lasting changes in the lives of crime victims. Recipient: LaWanda Hawkins, of San Pedro, California.
Descriptive narratives and videos of the contributions of recipients are available at Office for Victims of Crime’s Gallery.
About the Office of Justice Programs (OJP)
OJP, headed by Assistant Attorney General Karol V. Mason, provides federal leadership in developing the nation’s capacity to prevent and control crime, administer justice and assist victims. OJP has six components: the Bureau of Justice Assistance, the Bureau of Justice Statistics, the National Institute of Justice, the Office of Juvenile Justice and Delinquency Prevention, the Office for Victims of Crime and the Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering and Tracking. More information about OJP can be found at www.ojp.gov.
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Stamford Pharmacy to Pay $45,000 to Settle Allegations Under the Controlled Substances ActRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that Stamford Pharmacy, located at 1055 High Ridge Road in Stamford, has entered into a civil settlement with the government to resolve allegations that it violated civil provisions of the Controlled Substances Act. Stamford Pharmacy has agreed to pay a total of $45,000.
The allegations against Stamford Pharmacy include claims that they failed to promptly file theft and loss reports of controlled substances with the DEA in at least 17 separate instances as required by law, and that they failed to keep current, complete, and accurate controlled substance records of each controlled substance purchased and dispensed.
Congress, with the passage of the Controlled Substances Act, took steps to create “a closed system” of distribution for controlled substances in which every facet of the handling of the substances, from their manufacture to their consumption by the ultimate user, was to be subject to intense governmental regulation. This mission was taken against the backdrop of trying to prevent the diversion and abuse of legitimate controlled substances while at the same time ensuring an adequate supply of those substances needed to meet the medical and scientific needs of the United States.
This investigation was conducted by investigators from the Drug Enforcement Administration’s Office of Diversion Control in Rocky Hill, and the State of Connecticut, Department of Consumer Protection, Drug Control Division. The prosecution was led by Assistant U.S. Attorney Alan M. Soloway.
Spice Targets ArrestedRead the Press Release
NEWPORT NEWS, Va. – The local owners of a business charged with selling “Spice” were arrested yesterday based upon federal warrants issued in the Eastern District of Virginia.
According to court documents and court proceedings, Nadir Abdallah, age 54, and Sharif Abdallah, age 31, both of Newport News, Virginia, were arrested on an indictment issued by a Federal Grand Jury sitting in Newport News, Virginia. The indictment charges both individuals with Conspiracy to Possess with Intent to Distribute and Distribution of Controlled Substances and Controlled Substance Analogues (also known as Spice) and Making a False Statement.
Nadar and Sharif Abdallah each face a maximum penalty of 25 years in prison if convicted. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Terry Sult, Chief of Hampton Police, Richard W. Myers, Chief of Newport News Police, and Clark E. Settles, Special Agent in Charge of U.S. Immigration and Customs Enforcement's Homeland Security Investigations Washington, D.C., made the announcement after Nadar Abdallah’s initial appearance before U.S. Magistrate Judge Douglas E. Miller. Sharif Abdallah was arrested in the Western District of New York and will appear for a detention hearing on April 22, 2015, in Rochester, New York. Nadar Abdallah’s detention hearing is scheduled for April 22, 2015 at 2:00 p.m. in Newport News Federal Court.
This case was investigated by the Department of Homeland Security, Hampton Police Division, Newport News Police Department, the United States Postal Inspection Service, the Virginia State Police, and the Virginia Peninsula Narcotics Enforcement Task Force. Assistant U.S. Attorneys Eric M. Hurt and Kevin Hudson and Special Assistant United States Attorney Amy Cross are prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:15cr18.
Salem Man Guilty of Defrauding OctogenarianRead the Press Release
Paul P. Gierten, 47, of Salem, Illinois, pled guilty to fraud, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced. On March 31, 2015, Gierten was charged with defrauding an octogenarian out of $39,000.
Gierten formerly worked as an investment advisor in Centralia, Illinois. The octogenarian victim was one of Gierten’s clients. In August of 2009, Gierten falsely told the victim that he had an investment opportunity with a business that assisted military victims. Because he is a military veteran himself, the victim agreed to invest with this business. From August 2009, through March 2011, the victim provided a total of $39,000 to Gierten for investment in this company. Gierten did not invest the victim’s funds as promised. Instead, Gierten used the victim’s funds for his own personal expenses and to pay operating expenses of his own business.
The specific crime with which Gierten was charged is Interstate Transportation of Money or Securities Obtained by Fraud. At today’s hearing, Gierten admitted that in March of 2011, he used $5,000 from the victim’s last investment to purchase a Travel Money Card. Gierten then used the Travel Money Card to pay for his expenses during a trip to Colorado.
In commenting on today’s conviction, United States Attorney Wigginton stated: "Mr. Gierten took advantage of one of our most vulnerable citizens. We will always aggressively prosecute those who prey upon and defraud elderly residents of Southern Illinois."
Gierten’s sentencing hearing has been scheduled for July 31, 2015, at 11:00 a.m., at the Federal Courthouse in East St. Louis, Illinois. Interstate Transportation of Money or Securities Obtained by Fraud is punishable by up to 10 years in prison, and/or a $250,000 fine, and up to three years of supervised release. Gierten’s actual sentence will be determined by the court and will be guided by the advisory federal Sentencing Guidelines.
The investigation is being conducted by the Securities Department of the Illinois Secretary of State’s Office. The case is being prosecuted by Assistant United States Attorney Scott A. Verseman.
Phoenix Financial Planner and Fund Manager Both Sentenced to Prison for FraudRead the Press Release
PHOENIX – Yesterday, Rolf Heartburg, 41 and Larry Heartburg, 68, of Scottsdale, Ariz., were both sentenced by U.S. District Court Judge Neil V. Wake to a year in prison and ordered to pay $257,000 in restitution. Rolf Heartburg previously pleaded guilty to one count of conspiracy to commit wire and mail fraud and Larry Heartburg previously pleaded guilty to five counts of willfully failing to file a tax return. Rolf Heartburg was immediately taken into custody following the imposition of his sentence.
"Unfortunately, the problem of investment scams targeting the elderly is rampant,” said John S. Leonardo, United States Attorney. “This case sends a strong message that the United States Attorney’s Office will make every effort to uncover frauds by investment managers against vulnerable members of our community and we will prosecute the unscrupulous perpetrators of such frauds. I commend the IRS for its fine work in interrupting this fraud before more clients were victimized."
“Rolf Heartburg exploited his position of trust as a financial advisor by directing the victim investors to a risky real estate investment controlled by his father Larry who used the money for this own personal expenses,” said IRS Criminal Investigation Special Agent in Charge Dawn Mertz. “Larry Heartburg then failed to file income tax returns and failed to pay taxes on that income. Honest and law abiding citizens are fed up with those who use deceit and fraud to line their pockets with other people’s money and then skirt their own tax obligations.”
Rolf Heartburg was a Phoenix based financial planner who solicited his own clients to invest in a speculative real estate fund. The fund allegedly generated profits by selling mortgage notes it had acquired at a discount. Unbeknownst to the investors, Larry Heartburg served as the manager of the fund and he did not purchase any mortgage notes. Instead, the Heartburgs used nearly two thirds of investor money for their own personal expenses. Additionally, Larry Heartburg failed to file taxes on the money received from investors and other income for tax years 2008-2012.
The investigation in this case was conducted by the Internal Revenue Service-Criminal Investigation. The prosecution was handled by Assistant U.S. Attorney Kevin M. Rapp.
CASE NUMBER: CR-13-CR-01461-NVW
RELEASE NUMBER: 2015-032_ Heartburg et al
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Owner of Long Island Produce Distributor Charged in Manhattan Federal Court with Embezzling Money from Company Profit-Sharing PlanRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Jonathan Kay, Phyllis C. Borzi, the Assistant Secretary of Labor for Employee Benefits Security (“DOL”), and Shantelle P. Kitchen, the Special Agent-in-Charge of the New York Office of the Internal Revenue Service’s Criminal Investigation Division (“IRS”), announced today the return of an indictment charging THOMAS HOEY JR. with embezzling assets from his company’s profit-sharing plan. As alleged in the Indictment, HOEY, the owner and president of a Long Island-based produce distributor (the “Company”), and trustee for the Company’s profit-sharing plan (the “Plan”), an employee benefit plan set up for the benefit of the Company’s employees, transferred more than $800,000 from the Plan to the Company’s corporate accounts. HOEY then allegedly unlawfully used the money to cover significant negative balances in the Company’s accounts, to purchase, among other things, hundreds of thousands of dollars of produce for the Company, and for HOEY’s personal expenses. As a result of the defendant’s conduct, he is charged with embezzlement from an employee benefit plan, interstate transportation of stolen money, wire fraud, and money laundering. The defendant, who is in custody following convictions for federal narcotics, perjury, and obstruction charges, was presented and arraigned in Manhattan federal court today before Judge Jesse Furman.
Manhattan U.S. Attorney Preet Bharara said: “Thomas Hoey Jr.’s alleged crime is the nightmare of any employee: the theft of a company-sponsored pension plan. Thanks to the dedicated investigative work of the Department of Labor and the IRS, Hoey will have to answer for his alleged behavior in the court of law.”
DOL Assistant Secretary Phyllis C. Borzi said: “Let this indictment remind fiduciaries that we will not tolerate benefit plan assets being misused to subsidize a lifestyle. They must conduct themselves with undivided loyalty to safeguarding the retirement security of the plan's participants, and we will vigorously pursue all legal remedies when our investigations uncover such betrayals of trust.”
IRS Special Agent-in-Charge Shantelle P. Kitchen said: “This indictment demonstrates the government’s commitment to investigate allegations of impropriety relating to ERISA qualified pension plans. Employees who will one day rely on their account balances expect their plan’s trustee to protect their interests and not exploit their plan for personal use. IRS Criminal Investigation will work with our law enforcement partners on all kinds of corporate fraud allegations, including embezzlement from employee benefit plans.”
According to the allegations contained in the Indictment:
The Plan was set up as an employee pension benefit plan under the Employee Retirement Income Security Act of 1974 (“ERISA”), for the benefit of certain employees of the Company. As an ERISA qualified pension plan, there were strict statutory and regulatory limitations on the use of money contributed to the Plan. In particular, Plan proceeds could only be used to pay for employee disbursement and employee loans, which, in no circumstances, could be greater than $50,000. Moreover, the Company, which was the sponsor for the Plan, was not allowed to receive any money from the Plan.
Between June 2009 and July 2012, however, HOEY transferred almost all of the assets in the Company’s Plan to corporate accounts that he controlled. Specifically, in three transactions on one day in June 2009, the defendant transferred $350,000 from the Plan to the Company’s corporate bank account. In May 2010, the defendant transferred $415,000 from the Plan to the Company’s corporate bank account. Finally, in July 2012, the defendant transferred $73,000 from the Plan to the Company’s corporate bank account. As a result of these withdrawals from the Plan as well as fees on the account, the Plan, which at one point was worth more than $900,000 in employee benefits, was almost entirely depleted.
The Plan money was transferred to corporate accounts to cover significant negative balances as well as for additional corporate expenses and HOEY’s personal expenses. For example, hundreds of thousands of dollars of Plan money was used to pay the Company’s produce suppliers. Plan money was also used to pay for automobile insurance on a policy that covered, among other vehicles, numerous luxury cars that HOEY used for his personal use. During the period of time that HOEY was using Plan money to fund the Company’s corporate accounts, the corporate accounts were also being used to pay for HOEY’s personal expenses, including international travel for HOEY and his family, limousine service, and hotels in Manhattan.
In order to cover up his embezzlement of Plan assets, HOEY caused plan statements to be created that reflected the employees’ full account balances as if no money had been taken out of the Plan. A 2012 account statement for one employee, for example, reflected an individual benefit total of approximately $140,000. At that time, however, the total amount of money left in the Plan was only approximately $15,000.
HOEY, 47, of Garden City, New York, is charged with one count of embezzlement from an employee pension plan, one count of interstate transportation of stolen money, one count of wire fraud, and one count of money laundering. The embezzlement count carries a maximum sentence of five years in prison. The interstate transportation of stolen money and money laundering counts each carry a maximum sentence of 10 years in prison. The wire fraud count carries a maximum sentence of 20 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
HOEY is scheduled to be sentenced by Judge P. Kevin Castel on unrelated charges this Thursday, April 23, 2015, at 2:00 p.m.
Mr. Bharara praised the work of the DOL and the IRS.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Daniel B. Tehrani is in charge of the prosecution.
The allegations contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Thomas Hoey Indictment - 15 Cr 229 Indictment
Operator of Detroit Adult Day Care Center and Two Home Health Care Company Owners Sentenced in $29 Million Medicare Fraud ConspiracyRead the Press Release
The former operator of a Detroit adult day care center and two former owners of Detroit-area home health care companies were sentenced to prison today for their roles in a $29 million Medicare fraud scheme.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan, Special Agent in Charge Paul M. Abbate of the FBI’s Detroit Field Office, Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) Chicago Regional Office and Special Agent in Charge Jarod Koopman of Internal Revenue Service Criminal Investigation (IRS-CI) made the announcement.
Felicar Williams, 51, of Dearborn, Michigan, was sentenced to five years in prison and ordered to pay $2,431,018 in restitution, representing the amount paid by Medicare for Williams’ fraudulent claims. Abdul Malik Al-Jumail, 54, and Jamella Al-Jumail, 25, both of Brownstown, Michigan, were sentenced to 10 years in prison and four years in prison respectively. Both were also ordered to pay $8,389,541 and $589,516 in restitution, respectively, the amounts paid by Medicare for their fraudulent claims. The sentences were imposed by U.S. District Judge Denise Page Hood of the Eastern District of Michigan in Detroit.
All three defendants were convicted on Sept. 30, 2014, after a 12-week jury trial in the Eastern District of Michigan. Williams was convicted of conspiracy to commit health care fraud and conspiracy to receive health care kickbacks. Abdul Malik Al-Jumail and Jamella Al-Jumail were each found guilty of conspiracy to commit health care fraud. Abdul Malik Al-Jumail was also found guilty of conspiracy to pay and receive health care kickbacks. Jamella Al-Jumail was also found guilty of destroying documents in connection with a federal investigation.
According to the evidence at trial, Williams billed Medicare, through her company, Haven Adult Day Care Center LLC, for psychotherapy services that were not actually provided. The evidence demonstrated that, in some instances, Williams billed Medicare for services purportedly provided to patients who were already deceased. Williams also sold the private medical information of her patients to Abdul Malik Al-Jumail so that he could use it to submit fraudulent claims to Medicare.
The evidence further showed that Abdul Malik Al-Jumail obtained patients by paying unlawful kickbacks to Williams and others, and caused claims to be submitted to Medicare for home health services, including physical therapy, that were never delivered. Like her father, the evidence demonstrated that Jamella Al-Jumail billed Medicare for home health services and physical therapy that were not actually provided. The evidence at trial also showed that, the day her father was arrested, Jamella Al-Jumail told an employee to retrieve falsified patient medical records from their company, which she and others later burned.
The case was investigated by the FBI, HHS-OIG and the IRS, and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Michigan. The case was prosecuted by Trial Attorneys Christopher Cestaro, Brooke Harper and William Kanellis of the Criminal Division’s Fraud Section, and Assistant U.S. Attorney Patrick Hurford of the Eastern District of Michigan.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,100 defendants who have collectively billed the Medicare program for more than $6.5 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Team (HEAT), go to: www.stopmedicarefraud.gov.
Operator of Detroit Adult Day Care Center and Two Home Health Care Company Owners Sentenced in $29 Million Medicare Fraud ConspiracyRead the Press Release
WASHINGTON – The former operator of a Detroit adult day care center and two former owners of Detroit-area home health care companies were sentenced to prison today for their roles in a $29 million Medicare fraud scheme.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan, Special Agent in Charge Paul M. Abbate of the FBI’s Detroit Field Office, Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) Chicago Regional Office and Special Agent in Charge Jarod Koopman of Internal Revenue Service Criminal Investigation (IRS-CI) made the announcement.
Felicar Williams, 51, of Dearborn, Michigan, was sentenced to five years in prison and ordered to pay $2,431,018 in restitution, representing the amount paid by Medicare for Williams’ fraudulent claims. Abdul Malik Al-Jumail, 54, and Jamella Al-Jumail, 25, both of Brownstown, Michigan, were sentenced to 10 years in prison and four years in prison respectively. Both were also ordered to pay $8,389,541 and $589,516 in restitution, respectively, the amounts paid by Medicare for their fraudulent claims. The sentences were imposed by U.S. District Judge Denise Page Hood of the Eastern District of Michigan in Detroit.
All three defendants were convicted on Sept. 30, 2014, after a 12-week jury trial in the Eastern District of Michigan. Williams was convicted of conspiracy to commit health care fraud and conspiracy to receive health care kickbacks. Abdul Malik Al-Jumail and Jamella Al-Jumail were each found guilty of conspiracy to commit health care fraud. Abdul Malik Al-Jumail was also found guilty of conspiracy to pay and receive health care kickbacks. Jamella Al-Jumail was also found guilty of destroying documents in connection with a federal investigation.
According to the evidence at trial, Williams billed Medicare, through her company, Haven Adult Day Care Center LLC, for psychotherapy services that were not actually provided. The evidence demonstrated that, in some instances, Williams billed Medicare for services purportedly provided to patients who were already deceased. Williams also sold the private medical information of her patients to Abdul Malik Al-Jumail so that he could use it to submit fraudulent claims to Medicare.
The evidence further showed that Abdul Malik Al-Jumail obtained patients by paying unlawful kickbacks to Williams and others, and caused claims to be submitted to Medicare for home health services, including physical therapy, that were never delivered. Like her father, the evidence demonstrated that Jamella Al-Jumail billed Medicare for home health services and physical therapy that were not actually provided. The evidence at trial also showed that, the day her father was arrested, Jamella Al-Jumail told an employee to retrieve falsified patient medical records from their company, which she and others later burned.
The case was investigated by the FBI, HHS-OIG and the IRS, and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Michigan. The case was prosecuted by Trial Attorneys Christopher Cestaro, Brooke Harper and William Kanellis of the Criminal Division’s Fraud Section, and Assistant U.S. Attorney Patrick Hurford of the Eastern District of Michigan.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,100 defendants who have collectively billed the Medicare program for more than $6.5 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Team (HEAT), go to: www.stopmedicarefraud.gov.
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Okmulgee Man Pleads Guilty to Marijuana DistributionRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that STANLEY DEMARGO THOMAS, age 48, of Okmulgee, Oklahoma, pled guilty to POSSESSION WITH INTENT TO DISTRIBUTE MARIJUANA, in violation of Title 21, United States Code, Sections 841(a)(1) and (b)(1)(D).
Charges arose from an investigation by the United States Marshal Service. The defendant was indicted in March, 2015.
The Indictment alleged that on or about October 11, 2014, in the Eastern District of Oklahoma, the defendant, STANLEY DEMARGO THOMAS, did knowingly and intentionally possess with the intent to distribute marijuana, a Schedule I controlled substance.
The Honorable Steven P. Shreder, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the guilty plea and ordered a presentence report to be completed.
Assistant United States Attorney Dean Burris represented the United States.
Oklahoma Couple Sentenced for Ponzi Scheme Related to Fictitious Hedge FundRead the Press Release
LAS VEGAS, Nev. – An Oklahoma husband and wife received prison sentences today for stealing over $6.5 million from six victims who thought they were investing in a hedge fund, announced U.S. Attorney Daniel G. Bogden for the District of Nevada, Laura A. Bucheit, Special Agent in Charge of the FBI for Nevada, and John Collins, Special Agent in Charge of IRS Criminal Investigation for Nevada.
“The defendants used convincing tactics and tempting monetary returns to persuade their victims to part with their money,” said U.S. Attorney Bogden. “If someone offers unusually high returns on an investment, it is likely too good to be true.”
Linda Livolsi, aka Linda G. Findley, aka Linda Grogg, 46, of Cleveland, Oklahoma, was sentenced to 45 months in prison, three years of supervised release, and ordered to pay approximately $6.1 million in restitution. She pleaded guilty on Oct. 15, 2014, to one count of wire fraud and one count of making and filing a false and fraudulent tax return. Her husband, William Livolsi, Jr., 55, was sentenced to two years in prison, three years of supervised release, and ordered to pay approximately $5 million in restitution. He pleaded guilty on Oct. 15, 2014, to one count of wire fraud. Linda Livolsi was allowed to self-report to prison by July 24, 2015, and William Livolsi was permitted to report to prison 30 days after Linda is released from prison.
“These sentences are a reminder of the FBI’s dedication to identify, investigate and prosecute those who are committing financial crimes against innocent consumers,” said FBI Special Agent in Charge Bucheit.
“Individuals should be careful in choosing their investment advisers as they would in choosing a doctor or a lawyer,” said IRS CI Special Agent in Charge Collins. “IRS criminal investigators will use all permissible tools to pursue these criminals and hold them accountable.”
According to the plea agreements, since about 2003, under the artifice of RGM Enterprises, LLC, Linda Livolsi had been soliciting and inducing persons to give her money for the purpose of investing it in a purported hedge fund that offered large monetary returns. In reality, the hedge fund never existed and the Livolsi’s spent most the money for their personal benefit. Linda and William Livolsi, Jr. were married in 2004, and according to the plea agreements, William Livolsi participated in the fraud scheme by vouching to victims about the scheme, by creating a trust and bank accounts into which he received and withdrew monies deposited by victims, and by using the fraud monies for his own personal benefit. The victims were fooled into thinking their investments were good because the Livolsi’s provided them with false and fraudulent financial statements and account statements. The Livolsi’s fraudulently obtained about $6.5 million in funds from six investors from 2003 to 2007, including approximately $5 million that came from one victim. Linda Livolsi also filed false federal tax returns for the years 2003 to 2006, and failed to file tax returns for 2007 and 2008. Her total tax liability for those years, not including interest and penalties, is approximately $1.1 million.
The case was investigated by the FBI and IRS Criminal Investigation and prosecuted by Assistant U.S. Attorney J. Gregory Damm.
This prosecution is part of efforts underway by President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets and recover proceeds for victims of financial crimes. For more information about the task force visit: www.stopfraud.com.
Newport News Man Sentenced for Using Internet to Prostitute a MinorRead the Press Release
Conducted his criminal activities out of several local motels
NORFOLK, Va. – Antuane Keyone Armstrong, 35, of Newport News, was sentenced yesterday to 125 months in prison, followed by 3 years of supervised release for three counts of use of an interstate facility for unlawful activity.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and John S. Adams, Special Agent in Charge of the Federal Bureau of Investigation’s Norfolk Field Office, made the announcement after sentencing by Senior U.S. District Judge Robert G. Doumar.
Armstrong pled guilty on November 13, 2014. According to court documents, from April 2014 to about June 25, 2014, Armstrong posted advertisements on-line for his business enterprise involving the illegal prostitution of several women, including a sixteen-year-old minor. Armstrong conducted his criminal activities out of several local motels and was arrested in Norfolk on June 25, 2014, as a result of a surveillance operation.
This case arose out of prostitution investigations conducted by the Newport News, Norfolk, and Virginia Beach Police Departments. The FBI’s Norfolk Field Office handled the investigation subsequent to its initiation by the respective police departments. Assistant United States Attorney Randy Stoker prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:14cr124.
Newport News Man Sentenced for Using Internet to Prostitute a MinorRead the Press Release
Conducted his criminal activities out of several local motels
NORFOLK, Va. – Antuane Keyone Armstrong, 35, of Newport News, was sentenced yesterday to 125 months in prison, followed by 3 years of supervised release for three counts of use of an interstate facility for unlawful activity.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and John S. Adams, Special Agent in Charge of the Federal Bureau of Investigation’s Norfolk Field Office, made the announcement after sentencing by Senior U.S. District Judge Robert G. Doumar.
Armstrong pled guilty on November 13, 2014. According to court documents, from April 2014 to about June 25, 2014, Armstrong posted advertisements on-line for his business enterprise involving the illegal prostitution of several women, including a sixteen-year-old minor. Armstrong conducted his criminal activities out of several local motels and was arrested in Norfolk on June 25, 2014, as a result of a surveillance operation.
This case arose out of prostitution investigations conducted by the Newport News, Norfolk, and Virginia Beach Police Departments. The FBI’s Norfolk Field Office handled the investigation subsequent to its initiation by the respective police departments. Assistant United States Attorney Randy Stoker prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:14cr124.
New York Man Pleads Guilty to Conspiracy Involving Sales of Illegally Diverted Prescription DrugsRead the Press Release
CINCINNATI – Albert D. Nassar, 59, of New York City, pleaded guilty in U.S. District Court to conspiracy to commit mail and wire fraud in connection with the illegal sale of prescription drugs bearing false pedigrees that misrepresented the sources and origins of the drugs.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Antoinette Henry, Special Agent in Charge, U.S. Food and Drug Administration Office of Criminal Investigations, and Christopher White, Assistant Inspector in Charge, U.S. Postal Inspection Service, announced the plea entered into yesterday before U.S. District Judge Sandra S. Beckwith.
According to court documents, Nassar, the owner of Worldwide Management Consultants, Inc., participated with others in a scheme between 2007 and 2009 to obtain prescription drugs from various illicit or unknown sources - known as diverted drugs - and then resell the drugs to unwitting wholesale drug companies using false pedigrees. The false pedigrees showed legitimate authorized distributors as the source of the drugs, when, the drugs were obtained outside lawful channels.
Other conspirators included Michael Schoenwald, 71, a Hollywood, Florida-based urologist, and Gregory Pfizenmayer, 46, the owner of G & D Enterprises in Foley, Alabama.
As part of the conspiracy, Schoenwald obtained Lupron, an injectable drug used to treat prostate cancer, from the manufacturer at discounted rates due to his status as a health care provider. Federal law prohibits the resale of such drugs by health care providers.
Nassar directed Schoenwald to ship the Lupron to Pfizenmayer, who in turn sold the drugs to wholesale drug companies, providing false pedigrees that concealed the illicit source of the drugs.
Other prescription drugs allegedly involved in the conspiracy included Procrit, used to treat anemia in patients with kidney failure, and Neulasta, used to prevent infections in patients undergoing chemotherapy. The drugs were shipped with the false pedigrees by mail to drug wholesalers in New Jersey, Mississippi and Ohio, and each conspirator received payments including by wire transfer.
Pfizenmayer pleaded guilty on February 2, 2011 and Schoenwald pleaded guilty on February 16, 2012. Both pleaded guilty to one count of conspiracy.
The parties involved in Nassar’s case have agreed to a sentence of 12 months and one day incarceration.
U.S. Attorney Stewart commended the cooperative investigation by the FDA and Postal Inspectors, as well as Assistant United States Attorneys Anne Porter and Christy Muncy, who are representing the United States in this case.
New Orleans Woman Charged with Theft of Government FundsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that SYLVIA CHESTNUT, age 37, of New Orleans, was charged yesterday in one-count Bill of Information for stealing property from a Navy Exchange Store.
According to the Bill of Information, between November 12, 2011, and December 18, 2011, CHESTNUT wrote 43 worthless checks, totaling $20,549.36, to two Naval Exchange Stores in Florida. CHESTNUT used the worthless checks to purchase clothing, household items, pre-paid Visa cards, and other personal items.
If convicted, CHESTNUT faces a maximum prison term of 10 years, to be followed by 3 years of supervised release, and $250,000 fine.
U.S. Attorney Polite reiterated that the Bill of Information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the Naval Criminal Investigative Service (NCIS) in investigating this matter. Assistant U. S. Attorney Spiro G. Latsis and Assistant U.S. Attorney Kevin Frein of the United States Attorney’s Office for the Middle District of Florida are in charge of the prosecution.
Sylvia Chestnut Bill of Information
Nevada Man Sentenced to 12 Years in Prison for Receiving Child PornRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that Nevada, Mo., man was sentenced in federal court today for receiving child pornography after he assumed a false online identity as a woman and persuaded a teenage girl in Georgia to send him pornographic images of herself.
Curtis Bowman, 43, of Nevada, was sentenced by U.S. District Judge M. Douglas Harpool to 12 years in federal prison without parole. The court also ordered Bowman to serve a life term of supervised release following his incarceration, and to pay $12,140 in restitution to his victim.
Bowman pleaded guilty on Oct. 15, 2014, to receiving child pornography over the Internet.
Law enforcement officers in Cobb County, Ga., were contacted by the victim’s mother. She told officers that her 16-year-old daughter, identified as ”Jane Doe,” had been engaged in sexually explicit e-mail communications with an individual identifying herself as “Amanda Toben.” Jane Doe confirmed that she met “Amanda Toben,” whom she believed was a female resident of Missouri, in an online chat room sometime in January 2014. They began exchanging e-mails and within a matter of days, the e-mail exchanges became sexual in nature. Jane Doe ultimately sent a number of images depicting herself engaged in sexually explicit conduct to “Toben.”
Georgia law enforcement officers identified Bowman and on March 7, 2014, local law enforcement officers executed a search warrant at Bowman’s residence, where he was arrested. Investigators discovered a number of sexually explicit images of Jane Doe on Bowman’s computer.
Although the age of consent in the state of Georgia is 16 years of age, the federal government deems the age of consent to be 18 years of age. Therefore, receiving sexually explicit images of a 16-year-old minor over the Internet is a violation of federal law.
This case was prosecuted by Assistant U.S. Attorney James Kelleher. It was investigated by the Vernon County, Mo., Sheriff’s Department, the Southwest Missouri Cyber Crimes Task Force, the FBI and the Cobb County, Ga., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
National Crime Victims' Rights Week, April 19-25Read the Press Release
Contact Person: Beth Drake (803) 929-3000
COLUMBIA, SOUTH CAROLINA – Every April, the Office of Victims of Crime (OVC) helps lead communities throughout the country in their annual observances of National Crime Victims’ Rights Week (NCVRW) by promoting victims’ rights and honoring crime victims and those who advocate on their behalf. This year’s NCVRW will be held April 19-25 and the theme Engaging Communities, Empowering Victims, presents the opportunity to highlight the diversity in our communities, expand partnerships to serve victims of crime, enhance efforts to meet victims where they are, and empower crime victims as they pursue justice and recovery.
The U.S. Department of Justice will kick off the week with OVC’s annual National Crime Victims’ Service Awards Ceremony in Washington, DC to honor outstanding individual and programs that serve victims of crime. The US Attorney’s Office will join with state and local partners in observing NCVRW in special events throughout the state, including the South Carolina Victims Assistance Network and State Office of Victim Assistance’s Annual Victims’ Rights Week Conference, April 20 – 22. For more information, visit SCVAN’s website, www.scvan.org.
United States Attorney Nettles will lead the US Attorney’s Office in commemorating the advancement of victims’ rights by honoring several service providers, non-governmental organizations and prosecutors, all champions in advocating and providing support for crime victims in our state. The recognitions will take place on April 30. Information regarding each of the honorees will be forthcoming.
For more information about the 2015 National Crime Victims’ Rights Week and how your community may assist victims, please contact www.ovc.gov.
United States Attorney’s Office Victims’ Rights Recognitions
WHEN: Thursday, April 30, 10:00 am – 11:00 am
WHERE: USAO – 1441 Main Street, Suite 500, Columbia, SC
6th Floor Conference Room
* Paid parking is available behind 1441 Main Street and at meters on the street.
* Please ensure to bring a photo ID in order to gain entrance to the suite.
* Kindly be in place 10 minutes prior to the start of the ceremony.
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Nampa Man Sentenced to 75 Months in Prison for Drug and Gun ChargesRead the Press Release
BOISE – Guadalupe Serrano, 36, of Nampa, Idaho, was sentenced today to 15 months for possession of methamphetamine with intent to distribute and was sentenced to an additional 60 months consecutive for possessing a firearm in furtherance of a drug trafficking crime, U.S. Attorney Wendy J. Olson announced. U.S. District Judge Edward J. Lodge also ordered Serrano to serve three years of supervised release following his 75 month prison term. Serrano pleaded guilty to the charges on February 11, 2015.
According to information presented in court, Nampa police officers stopped a black BMW Serrano was driving on June 19, 2014. A police drug-detection dog sniffed the BMW and alerted to the odor of illegal drugs. During a later search of the BMW, officers located two baggies containing methamphetamine, a digital scale, $10,200, two loaded firearms, and ammunition. The firearms were identified as a Bersa, .380 ACP pistol, and a Glock, 9 millimeter pistol. Serrano admitted that the firearms were stolen.
Serrano’s case is part of a larger long-term investigation by the Treasure Valley Metro Violent Crimes Task Force. The investigation focused on the “Norteno” Northside gang, which is active in Nampa and other parts of the Treasure Valley. Fourteen individuals were indicted on drug and gun charges as a result of the investigation. Serrano was the first to be sentenced. Four others have pleaded guilty and are awaiting sentencing including Jose Manuel Menchaca, 35, Nicole Danelle Nieto, 31, Brandi Marie Larrea, 31, and Tara Noelle Rivera, 30, all from Nampa. Guillermo Farias Jr., 29, also from Nampa has signed a plea agreement and is awaiting a court hearing to enter his guilty plea. Five others are scheduled for trial including Johhny Lee Martinez, 33, Michael David Bradshaw, 31, Richard Lobato, 51, all from Nampa, Isaac Bright, 21, from Caldwell, and Kenny P. Breedlove, 35, from California. Three other defendants have outstanding warrants, including Jose Enrique Olvera Jr., 51, Ruben Rodriguez, 36, and Veronica Cantu, 26, all from Nampa.
This case and the other related cases are the result of a joint investigation by the Treasure Valley Metro Violent Crime Task Force and the Organized Crime and Drug Enforcement Task Force (OCDETF). The Treasure Valley Metro Violent Crime Task Force is comprised of federal, state and local agencies, including the Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; Boise Police Department; Ada County Sheriff’s Office; Caldwell Police Department; Nampa Police Department; Meridian Police Department; Canyon County Sheriff’s Office; and Idaho Department of Probation and Parole.
The Organized Crime and Drug Enforcement Task Force (OCDETF), includes the cooperative law enforcement efforts of the Federal Bureau of Investigation; Drug Enforcement Administration; Bureau of Alcohol, Tobacco, Firearms and Explosives; U. S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Internal Revenue Service-Criminal Investigation; and U.S. Marshals Service. The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
The case was prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
Monroe County Man Charged with Heroin and Cocaine Trafficking OffensesRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Monroe County man has been indicted by a federal grand jury in Scranton for conspiracy to distribute cocaine and for aiding in the distribution of heroin.
According to United States Attorney Peter Smith, Sal DiPalma, Jr., age 45, of East Stroudsburg, Monroe County, is charged with allegedly participating in the criminal activity in Monroe, Wayne and Lackawanna Counties between January and October of 2013.
The investigation was conducted by the Lackawanna County Drug Task Force, the Drug Enforcement Administration and the Wayne County District Attorney’s Office. The case is being prosecuted by Assistant United States Attorney Robert J. O’Hara.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is imprisonment for twenty years, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public, and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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