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Wednesday 15 April 2015
Inmate at Stillwater Correctional Facility Indicted for Conspiring to Steal $180,000 from IrsRead the Press Release
United States Attorney Andrew M. Luger today announced the indictment of ELISEO ORTIZ, 49, STACEY JEAN BERGHAMMER, 33, and SHANNON LEE TROLLEN, 37, for conspiring to file false state and federal tax returns and claim tax refunds. The three defendants are charged with conspiracy to file false claims for income tax refunds. ORTIZ and BERGHAMMER are also charged with filing false claims for income tax refunds, and ORTIZ is additionally charged with procuring a false tax return.
“Eliseo Ortiz is charged with conspiring to file fraudulent tax returns from behind bars,” said U.S. Attorney Luger. “Conspiring with associates on the outside is a nefarious way to steal from the public. I am grateful to the investigators at IRS Criminal Investigation for pursuing cases like these on behalf of honest taxpayers.”
“The defendants who allegedly perpetrated this tax fraud scheme systematically defrauded the government and the taxpaying public,” said Special Agent in Charge Shea Jones, of the St. Paul Field Office IRS Criminal Investigation. “IRS Criminal Investigation will continue to vigorously pursue those who unjustly enrich themselves by preparing false tax returns in order to obtain refunds.”
According to the indictment and documents filed in court, between 2008 and at least April 28, 2010, ORTIZ was incarcerated at Stillwater Correctional Facility, where he recruited other inmates to provide names and social security numbers for the defendants to use in preparing and filing the false tax returns. These “recruits” were also asked to provide addresses for unincarcerated trusted associates who could transfer money from tax refunds to the defendants and other co-conspirators. ORTIZ provided the information he obtained from the recruits to BERGHAMMER or TROLLEN, who would then complete and file the false tax returns that fraudulently claimed refunds to which the recruits were not entitled.
According to the indictment and documents filed in court, the defendants and other co- conspirators filed tax returns claiming false wages, withholdings, and other information. Many of the fraudulent tax returns falsely claimed that the recruits were entitled to tax credits such as the earned income tax credit, the making work pay credit, and the additional child tax credit. In reality, the recruits had not earned the income that was reported, they had not had any income tax withholdings, they were not eligible for the tax credits listed, and they were not entitled to refunds claimed.
According to the indictment and documents filed in court, the defendants and other co- conspirators obtained payments for their roles in the scheme in various ways. If an income tax refund for a filing co-conspirator was issued by check, payments were sometimes obtained by having the check sent to the address of a trusted associate who was not in prison, cashing the check, and then splitting the money between the co-conspirator, the defendants, and others. If a refund was obtained through a direct deposit or into a debit card, payments to the co-conspirators and defendants were sometimes made by using money orders and wire transfers.
This case is the result of an investigation conducted by the Internal Revenue Service – Criminal Investigation Division.
This case is being prosecuted by Assistant U.S. Attorney Michael L. Cheever.
Defendant Information:
ELISEO ORTIZ, 49
Bartlett, Ill.
Charges:
• Conspiracy to file false claims, 1 count
• False Claims, 3 counts
• Procuring a False Tax Return, 1 count
STACEY JEAN BERGHAMMER, 33
Red Wing, Minn.
Charges:
• Conspiracy to file false claims, 1 count
• False Claims, 3 counts
SHANNON LEE TROLLEN, 37
Stockholm, Wisc.
Charges:
• Conspiracy to file false claims, 1 countThe charges are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Hammond Man Sentenced to 13.5 Years for Firearm and Drug ViolationsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that BRANDON WATKINS, age 31, a resident of Hammond, was sentenced today after having previously pled guilty to distribution of cocaine and possession and sale of a stolen firearm by a convicted felon.
U.S. District Judge Kurt D. Engelhardt sentenced WATKINS to 162 months of incarceration, to be followed by 3 years of supervised release.
According to court documents, in September and October 2012, WATKINS sold quantities of cocaine and four stolen firearms to an undercover law enforcement agent. Additionally, on July 17, 2013, WATKINS sold oxycodone pills to an undercover law enforcement agent.
Court records revealed that WATKINS was convicted on or about April 24, 2009, of unauthorized entry of an inhabited dwelling in Tangipahoa Parish. As such, he was prohibited from possessing firearm by both state and federal law.
U.S. Attorney Polite praised the work of the Tangipahoa Parish Sheriff’s Office, Hammond Police Department, and the ATF New Orleans Division Office in investigating this matter. Assistant United States Attorney Nolan D. Paige was in charge of the prosecution.
Grove City Man Charged with Using His Dead Mother's Social Security BenefitsRead the Press Release
PITTSBURGH - A Mercer County resident has been indicted by a federal grand jury in Pittsburgh on a charge of theft of government property, United States Attorney David J. Hickton announced today.
The one-count indictment named Alexander Viskovatoff, 57, of Grove City, PA.
According to the indictment, in and around January 2011, through in and around September 2012, Viskovatoff converted to his own use funds of the Social Security Administration that had been intended to be benefits for his deceased mother.
The law provides for a maximum total sentence of up to ten years in prison, a fine of up to $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
The Social Security Administration, Office of Inspector General, conducted the investigation leading to the indictment this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Granite City Man Sentenced for Distributing MethamphetamineRead the Press Release
The United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today that on April 14, 2015, Louis R. Dochwat, 38, of Granite City, IL, has been sentenced to 188 months in federal prison for Distribution of Methamphetamine and Conspiracy to Distribute Methamphetamine. Upon release from prison, Dochwat will also be required to complete a term of 3 years on supervised release.
At his change of plea hearing in December, Dochwat admitted selling methamphetamine to a DEA informant in Granite City on three separate occasions in 2013 and 2014. In total, Dochwat sold approximately three quarters of an ounce of methamphetamine for $2,000.00.
Because of his substantial criminal record, Dochwat was sentenced as a "career offender." Dochwat has been continuously confined in federal custody since his arrest in October, 2014.
The investigation which resulted in Dochwat’s arrest and conviction was conducted by the Drug Enforcement Administration.
The case was assigned to Assistant United States Attorney Robert L. Garrison.
Glen Burnie Man Sentenced to Four Years in Prison for Possession of Child PornographyRead the Press Release
Baltimore, Maryland – Chief U.S. District Judge Catherine C. Blake sentenced Paul Anthony Philip III, age 31, of Glen Burnie, Maryland, today to four years in prison, followed by 15 years of supervised release, for possession of child pornography. Judge Blake ordered that upon his release from prison, Philip must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Commissioner Anthony W. Batts of the Baltimore Police Department.
According to Philip’s plea agreement, during January and February 2014, Philip logged onto a website designed for video and file sharing. On the website Philip described himself and offered to share child pornography in exchange for “hardcore” pornography involving fathers and daughters. During that time, Philip admits that he received two emails, containing images of children engaged in sexually explicit conduct, including pre-pubescent children. For example, on January 29, 2014, Philip received an email containing two images depicting young toddlers subject to abuse and degradation and displayed in a lascivious manner. Philip also sent emails with images of child pornography. For example, on January 29, 2014, Philip sent an email which included two video files depicting young infants subjected to sadomasochistic activities.
On August 1, 2014, a search warrant was executed at Philip’s home and his cell phone was seized. Philip admitted that he used his cell phone to access the internet in order to solicit, trade, download and view child pornography. A forensic examination of Philip’s phone revealed 3783 digital images and videos, all of which contained visual depictions of minors engaged in sexually explicit conduct. Many of the images included photographs of young children who are bound/restrained and subject to physical and sexual abuse.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the FBI, HSI Baltimore and the Baltimore Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Zachary A. Myers, who prosecuted the case.
Genovese Organized Crime Family Associate Sentenced to 28 Months in Prison for Racketeering ConspiracyRead the Press Release
NEWARK, N.J. – A North Jersey man was sentenced today to 28 months in prison for his role in the affairs of the Genovese organized crime family of La Cosa Nostra (the “Genovese family”), including engaging in a pattern of racketeering activity by extorting Christmastime tribute payments from members of the International Longshoremen’s Association (ILA), New Jersey U.S. Attorney Paul J. Fishman and Eastern District of New York U.S. Attorney Loretta E. Lynch announced.
Nunzio LaGrasso, 64, of Florham Park, New Jersey, former vice president of ILA Local 1478 and ILA representative – previously pleaded guilty before U.S. District Judge Claire C. Cecchi in Newark federal court to Count One of the second superseding indictment, charging him with racketeering conspiracy. LaGrasso admitted to predicate acts involving conspiracy to commit extortion and multiple extortions.
According to documents filed in this case and statements made in court:
Since at least 2005, co-defendant Stephen Depiro, 59, of Kenilworth, New Jersey, has managed the Genovese family’s control over the New Jersey waterfront – including the nearly three-decades-long extortion of port workers in ILA Local 1, ILA Local 1235 and ILA Local 1478. Members of the Genovese family, including Depiro, are charged with conspiring to collect tribute payments from New Jersey port workers at Christmastime each year through their corrupt influence over union officials, including the last three presidents of Local 1235 and vice president of ILA Local 1478.
During their guilty plea proceedings, LaGrasso, Depiro and co-defendant Albert Cernadas, 79, of Union, New Jersey, former president of ILA Local 1235 and former ILA executive vice president, admitted their involvement in the Genovese family, including conspiring to compel tribute payments from ILA union members, who made the payments based on actual and threatened force, violence and fear. LaGrasso and Cernadas admitted to carrying out multiple extortions of dockworkers. The timing of the extortions typically coincided with the receipt by certain ILA members of “Container Royalty Fund” checks, a form of year-end compensation.
In addition to the prison term, Judge Cecchi sentenced LaGrasso to two years of supervised release and fined $25,000. Cernadas was previously sentenced to probation and DePiro is scheduled to be sentenced April 17, 2015.
U.S. Attorneys Fishman and Lynch credited the FBI in New Jersey, under the direction of Special Agent in Charge Richard M. Frankel, and in New York, under the direction of Assistant Director in Charge George Venizelos, as well as the U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, under the direction of Special Agent in Charge Cheryl Garcia, with the investigation leading to today’s guilty pleas. They also thanked the Waterfront Commission of New York Harbor for its cooperation and assistance in the investigation.
The government is represented by Assistant U.S. Attorney Jacquelyn M. Kasulis of the U.S. Attorney’s Office, Eastern District of New York, and Assistant U.S. Attorney Anthony Mahajan, of the U.S. Attorney’s Office, District of New Jersey.
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Defense counsel: Michael Critchley Sr., Esq., Roseland
Genovese Organized Crime Family Associate Sentenced to 28 Months in Prison for Racketeering ConspiracyRead the Press Release
NEWARK, N.J. – A North Jersey man was sentenced today to 28 months in prison for his role in the affairs of the Genovese organized crime family of La Cosa Nostra (the “Genovese family”), including engaging in a pattern of racketeering activity by extorting Christmastime tribute payments from members of the International Longshoremen’s Association (ILA), New Jersey U.S. Attorney Paul J. Fishman and Eastern District of New York U.S. Attorney Loretta E. Lynch announced.
Nunzio LaGrasso, 64, of Florham Park, New Jersey, former vice president of ILA Local 1478 and ILA representative – previously pleaded guilty before U.S. District Judge Claire C. Cecchi in Newark federal court to Count One of the second superseding indictment, charging him with racketeering conspiracy. LaGrasso admitted to predicate acts involving conspiracy to commit extortion and multiple extortions.
According to documents filed in this case and statements made in court:
Since at least 2005, co-defendant Stephen Depiro, 59, of Kenilworth, New Jersey, has managed the Genovese family’s control over the New Jersey waterfront – including the nearly three-decades-long extortion of port workers in ILA Local 1, ILA Local 1235 and ILA Local 1478. Members of the Genovese family, including Depiro, are charged with conspiring to collect tribute payments from New Jersey port workers at Christmastime each year through their corrupt influence over union officials, including the last three presidents of Local 1235 and vice president of ILA Local 1478.
During their guilty plea proceedings, LaGrasso, Depiro and co-defendant Albert Cernadas, 79, of Union, New Jersey, former president of ILA Local 1235 and former ILA executive vice president, admitted their involvement in the Genovese family, including conspiring to compel tribute payments from ILA union members, who made the payments based on actual and threatened force, violence and fear. LaGrasso and Cernadas admitted to carrying out multiple extortions of dockworkers. The timing of the extortions typically coincided with the receipt by certain ILA members of “Container Royalty Fund” checks, a form of year-end compensation.
In addition to the prison term, Judge Cecchi sentenced LaGrasso to two years of supervised release and fined $25,000. Cernadas was previously sentenced to probation and DePiro is scheduled to be sentenced April 17, 2015.
U.S. Attorneys Fishman and Lynch credited the FBI in New Jersey, under the direction of Special Agent in Charge Richard M. Frankel, and in New York, under the direction of Assistant Director in Charge George Venizelos, as well as the U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, under the direction of Acting Special Agent in Charge Cheryl Garcia, with the investigation leading to today’s guilty pleas. They also thanked the Waterfront Commission of New York Harbor for its cooperation and assistance in the investigation.
The government is represented by Assistant U.S. Attorney Jacquelyn M. Kasulis of the U.S. Attorney’s Office, Eastern District of New York, and Assistant U.S. Attorney Anthony Mahajan, of the U.S. Attorney’s Office, District of New Jersey.
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Defense counsel: Michael Critchley Sr., Esq., Roseland
Former Redstone Township Police Officer Charged with Civil Rights Violation, Falsifying Police ReportRead the Press Release
PITTSBURGH - A resident of Fayette County, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh, Pennsylvania, on charges of Deprivation of Civil Rights and Falsification of a Document, United States Attorney David J. Hickton announced today.
The two-count Indictment named Norman L. Howard, 42, of Grindstone, Pa., as the sole defendant.
According to the Indictment, on or about May 26, 2013, Howard, a police officer of the Redstone Township Police Department, willfully deprived an individual identified as D.N. by punching D.N. in the face, without justification, thereby causing bodily injury to D.N. The Indictment further alleges that on or about May 26, 2013, Howard made false statements in a police report regarding the incident, claiming that the man had shoved him and had resisted arrest.
The law provides for a maximum total sentence of 30 years in prison, a fine of $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorneys Cindy K. Chung and Shaun E. Sweeney are prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Former New Jersey Resident Pleads Guilty to Defrauding U.S. Subsidiary of Foreign Investment Bank of More Than $1.5 MillionRead the Press Release
TRENTON, N.J. - A former New Jersey resident who previously worked for the U.S. subsidiary of a foreign investment bank admitted today that he orchestrated a scheme to defraud his former employer out of more than $1.5 million, U.S. Attorney Paul J. Fishman announced.
Michael Lieberman, 43, formerly of New Jersey and currently a resident of Huntersville, North Carolina, pleaded guilty before U.S. District Judge Mary L. Cooper in Trenton federal court to an information charging him with one count of wire fraud for executing a scheme over the course of two years through which he fraudulently transferred more than $1.5 million from accounts of his former employer to bank accounts he controlled.
According to documents filed in this case and statements made in court:
Lieberman was employed by “Company A,” a United States-based subsidiary of an international investment bank, in its International Settlements Group in Iselin, New Jersey. Company A engaged in and settled cross-border securities transactions and acted as a settlement agent for similar securities transactions entered into by its broker-dealer clients. Company A’s International Settlements Group was responsible for, among other things, wiring funds to settle various securities transactions.
From June 2012 through May 2014, Lieberman devised a scheme to use his position in the International Settlements Group to initiate more than 50 separate fraudulent wire transfers of Company A’s money, directing the proceeds to bank accounts he either owned or controlled. Lieberman then spent Company A’s money for his own purposes, including purchasing a home in North Carolina, making tens of thousands of dollars in credit card payments and spending hundreds of thousands of dollars on hotels, airplane tickets, home furnishings, restaurant tabs and other expenditures.
Lieberman took various steps to conceal his fraudulent activities, including making fictitious entries in Company A’s bookkeeping system and supplying phony documents to others in order to cause them to make false entries in the company’s books and records reflecting fake profits on non-existent transactions.
The wire fraud count to which Lieberman pleaded guilty carries a maximum potential penalty of 20 years in prison and a fine of up to the greatest of $250,000, twice the gain or twice the loss from the offense. As part of the guilty plea, Lieberman must make restitution and forfeit the proceeds of his scheme, including the home in North Carolina he purchased with money from the fraud. Sentencing is scheduled for July 22, 2015.
U.S. Attorney Fishman credited special agents of the FBI under the direction of Special Agent in Charge Richard Frankel in Newark with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Paul Murphy of the U.S. Attorney’s Office’s Economic Crimes Unit, Zach Intrater, Chief of the General Crimes Unit, and Barbara Ward of the Asset Forfeiture and Money Laundering Unit, in Newark.
This arrest 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. attorney’s offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
Defense counsel: Linda Pellegrino Esq., Newton, New Jersey
lieberman_michael_information.pdf
Former Jeweler Sentenced to Nearly Four Years in Prison for Laundering Money by Pawning Diamonds Falsely Reported StolenRead the Press Release
BIRMINGHAM -- A federal judge today sentenced a Vestavia Hills man to three years and nine months in prison for laundering money by pawning a 3-carat diamond that was among a cache of jewels he collected a $2.6 million insurance payment on in 2004 after reporting them stolen in a Mountain Brook Jewelry store robbery.
U.S. Attorney Joyce White Vance, FBI Special Agent in Charge Roger C. Stanton, U.S. Secret Service Special Agent in Charge Craig Caldwell, Vestavia Hills Police Chief Dan Rary and Mountain Brook Police Chief Ted Cook announced the sentence.
U.S. District Judge Karon O. Bowdre sentenced JOSEPH HAROLD GANDY, 65, in accordance with a binding plea agreement the former jeweler entered with federal prosecutors. As part of his sentence, Gandy must pay $20,000 in restitution to the jewelers where he pawned the diamonds. He also must forfeit to the government nearly all the diamonds and jewelry the FBI recovered from him, which includes a rare Blue Diamond worth at least $620,000. The Blue Diamond was among about $1.5 million worth of diamonds and jewelry Gandy falsely reported stolen in 2004. In 2013, Gandy sent a friend to pawn some of those diamonds he had reported stolen.
The U.S. Attorney's Office charged Gandy in October with one count of money laundering for pawning property worth more than $10,000 that he obtained through a criminal act, wire fraud, which he committed when he submitted an insurance claim on diamonds falsely reported as stolen. Prosecutors also charged Gandy with one count of being a convicted felon in possession of firearms for 99 weapons seized in a search of his Vestavia Hills home in November 2013. Gandy is prohibited from possessing weapons because of a 1989 federal mail fraud conviction. Gandy pleaded guilty to both federal counts in November.
Vestavia Hills Police seized the 99 weapons at Gandy's house. The state is prosecuting him on weapons charges and on drug charges based on prescription drugs also seized at his residence in the November search. A state court hearing is scheduled later this month. The Vestavia Hills police are handling forfeiture of the firearms.
According to court documents, Gandy's federal crime unfolded as follows:
Gandy was an owner and the operator of Denman-Crosby Jewelry Store in Mountain Brook in 2004. In December of that year, he reported that two unidentified men robbed the store at gunpoint. At the time, Denman-Crosby was promoting a loose diamond sale for Christmas. It had many diamonds and other jewelry in on consignment from jewelers in New York and elsewhere. The store carried a $2.6 million insurance policy. Gandy had increased the coverage amount with XL Specialty Insurance Company a few weeks before the robbery.
In January and March of 2005, Gandy used interstate wire transmissions to submit insurance claims from the robbery. He included a detailed inventory of jewelry worth about $2.8 million that he reported stolen. XL Specialty paid the policy's limit of $2.6 million.
In July 2013, Gandy began sending a friend to jewelry stores in Jefferson County to pawn diamonds he had reported stolen in 2004. The first effort ended when the jeweler requested documentation on a 1.59-carat diamond, mounted in a platinum setting, and attempted to examine the stone closely. The concern was that the diamond might bear a laser inscription useful in tracing its history. Subsequently, Gandy examined 10 to 12 diamonds under a microscope and selected stones that bore no inscription.
On July 26, 2013, Gandy sent his friend to a Birmingham jewelry store to pawn a 3.01-carat emerald-cut diamond he said was worth about $43,000. Gandy said he wanted at least $15,000 for the stone. The store accepted the diamond in exchange for a $12,000 loan. The diamond was one Gandy reported stolen in the Denman-Crosby robbery. He gave his friend $2,000 for making the transaction.
Between August and November of 2013, Gandy's friend pawned two more diamonds: a 3.45-carat cushion-cut diamond for $8,000; and a 2.16-carat round diamond for $2,000. Both stones were on the stolen inventory list Gandy provided the insurance company in 2005. Gandy gave his friend $1,880 after receiving the $8,000 for the 3.45-carat diamond.
The FBI, Secret Service, Vestavia Hills and Mountain Brook police departments investigated the case. Assistant U.S. Attorney George A. Martin Jr. is prosecuting the case.
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Felon Sentenced to 3 Years in Prison for Illegally Possessing CartridgesRead the Press Release
PITTSBURGH - Elanda Bell has been sentenced in federal court to 34 months imprisonment, to be followed by three years of supervised release, on his conviction of violating federal firearm laws, United States Attorney David J. Hickton announced today.
Senior United States District Judge Gustave Diamond imposed the sentence on Bell, 56, who has no known permanent address.
According to information presented to the court, between Jan. 3, 2008, and June 29, 2013, Bell possessed ten .41 Caliber cartridges. Bell had previously been convicted of manslaughter and aggravated assault in the Court of Common Pleas of Philadelphia. Federal law prohibits anyone who has been convicted of a crime punishable by more than one year from possessing ammunition or firearm.
Assistant United States Attorney Shardul S. Desai prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Clairton Police Department for the investigation leading to the successful prosecution of Bell.
Federal grand jury indicts Lasalle street kidnappersRead the Press Release
Six individuals from Detroit, Michigan charged with kidnapping two Indianapolis minors in retaliation for a drug rip off
PRESS RELEASE
Indianapolis – Josh J. Minkler, the United States Attorney, announced today that a federal grand jury returned indictments against six Detroit, Michigan, residents for their role in a kidnapping conspiracy. Two victims were kidnapped from their home on the eastside of Indianapolis on March 2, 2015, and taken to Detroit where they were held for ransom by their captors.
“I want to commend the Federal Bureau of Investigation and the Indianapolis Metropolitan Police Department for their immediate reaction to this kidnapping,” said Minkler. “As a result of their non-stop efforts, this case was solved in less than 48 hours, the victims were rescued and the defendants arrested. Law enforcement has sent a strong message; when children are involved, we will send the cavalry.”
Charged with two counts of kidnapping and one count of conspiracy to commit kidnapping include:
John Thomas, a/k/a, Jay, 38
Alaa Al-Salehi, a/k/a Big Boi, 23
April Sandell, 26
Bernando Reeves, a/k/a C-Note, 20
Mohammed Karkash a/k/a MJ, 22
Ali Hussain Ashore, 26
According to the indictment, Thomas is an alleged drug dealer from Detroit. On February 28, 2015, Thomas’ former girlfriend (Individual A) stole a large quantity of narcotics and narcotics proceeds and traveled to Indianapolis with her minor child. Between February 28, 2015, and March 2, 2015, Thomas and members of his conspiracy traveled to Indianapolis in search of Individual A.
The indictment further alleges that on March 2, 2015, members of the conspiracy conducted a home invasion on Lasalle Street in Indianapolis and kidnapped Individual A’s minor siblings, holding them for ransom. They used a blindfold, towel and a hood to prevent one victim from identifying members of the conspiracy and used zip-ties to prevent his escape. They later cut the fingers of the victim to compel him to reveal the location of Individual A and the narcotics and narcotics proceeds allegedly stolen from Thomas. Both victims were then transported by vehicle to Detroit. Both victims have been returned safely.
FBI Special Agent in Charge, W. Jay Abbott said, “The swift and safe return of the victims and apprehension of the subjects was the result of the cooperative efforts of Federal, State and Local law enforcement agencies.”
According to Assistant United States Attorneys Tiffany J. McCormick and Jeffrey D. Preston, who are prosecuting the case for the government, all defendants face up to life in prison, if convicted.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
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Federal Grand Jury Returns Superseding Indictment Against Former Colfax County Sheriff’s DeputyRead the Press Release
ALBUQUERQUE – Yesterday a federal grand jury sitting in Albuquerque, N.M., returned a superseding indictment that adds new charges against a former Deputy of the Colfax County Sheriff’s Office previously charged with a drug trafficking offense. In addition to the original drug trafficking offense, the superseding indictment charges Vidal Sandoval, 45, of Cimarron, N.M., with two theft of government property offenses.
Sandoval was arrested by the FBI and the New Mexico State Police on March 13, 2015, on an indictment alleging that on Feb. 28, 2015, Sandoval aided and abetted an attempt to possess cocaine with intent to distribute in Colfax County, N.M. The indictment included forfeiture provisions seeking a money judgment in the amount of at least $19,500.00, the proceeds Sandoval allegedly obtained as a result of his unlawful conduct.
The two new theft of government charges in the superseding indictment allege that Sandoval stole money belonging to the FBI on Dec. 15, 2014 and Jan. 25, 2015. According to affidavits submitted in support of court-approved search warrants that were executed following Sandoval’s arrest, on those two dates, Sandoval allegedly stole money from undercover FBI agents who were posing as drug dealers during two traffic stops. During the Dec. 15, 2014 traffic stop, Sandoval allegedly stole $7,500.00 from the undercover agents, and during the Jan. 25, 2015 traffic stop, he allegedly stole $2,000.00 from them.
At the time of the offenses charged in the superseding indictment, Sandoval was a deputy of the Colfax County Sheriff’s Office. Sandoval resigned following his arrest. Sandoval was released from custody on conditions of release, including pretrial supervision, pending trial which currently is scheduled for June 15, 2015.
If convicted on the drug trafficking charge in the superseding indictment, Sandoval faces a mandatory minimum five years and a maximum of 40 years in federal prison. If convicted on the theft of government property charges, Sandoval faces a statutory maximum penalty of ten years in federal prison on each of the two charges. Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by the Santa Fe and Albuquerque offices of the FBI and the New Mexico State Police with assistance from the Colfax County Sheriff’s Office. Assistant U.S. Attorney Sean J. Sullivan is prosecuting the case.
Federal Grand Jury Indicts Father for Lying to FBI About Helping Fugitive Son Escape to MexicoRead the Press Release
In El Paso this afternoon, a federal grand jury returned an indictment charging 53-year-old Victor Manuel Solis, a legal permanent resident living in Lancaster, CA, with making a false statement to El Paso FBI agents concerning an ongoing investigation and search for his fugitive son, former Los Angeles Police officer Henry Solis. That announcement was made today by Acting United States Attorney Richard L. Durbin, Jr., and Special Agent in Charge Douglas E. Lindquist of the FBI’s El Paso Division.
The indictment alleges that on March 16, 2015, Victor Solis willfully attempted to prevent law enforcement from locating Henry Solis by representing to FBI agents that he, alone, crossed into Mexico on March 14, 2015. Photographs released by the FBI show that Victor Solis, accompanied by Henry Solis, crossed into Juarez, Mexico, from El Paso at the Paso Del Norte Port of Entry on March 14, 2015.
Upon conviction, Victor Solis faces up to five years in federal prison and a maximum $250,000 fine.
Victor Solis remains in federal custody while Henry Solis remains a fugitive from justice. Authorities are seeking to arrest Henry Solis for his alleged involvement in a homicide in Pomona, CA, last month. The FBI is offering a reward of up to $25,000 for information leading directly to the arrest of Henry Solis. Anyone with information as to the whereabouts of Henry Solis is asked to contact their local FBI field office.
The case resulted from a joint investigation by the El Paso and Los Angeles Field Offices of the Federal Bureau of Investigation. This case is being prosecuted by Assistant United States Attorney Kyle Meyers.
It is important to note that an indictment is merely a charge and should not be considered as evidence of guilt. The defendant is considered innocent until proven guilty in a court of law.
Federal Grand Jury IndictmentsRead the Press Release
Contact Person: Beth Drake (803) 929-3000
Columbia, South Carolina----United States Attorney Bill Nettles stated today that a Federal Grand Jury in Charleston, South Carolina, returned Indictment(s) against the following:
Younges Island Man Indicted for Investment Fraud
James Futch III, age 60, of Younges Island, South Carolina, was charged in a 1-count Indictment with Wire Fraud, a violation of 18 U.S.C. § 1343. The maximum penalty that Futch could receive is 20 years imprisonment and a maximum fine of $250,000. The case was investigated by agents of the FBI and is assigned to Assistant United States Attorney Rhett DeHart of the Charleston office for prosecution.Myrtle Beach Man Indicted for Theft of Government and Tax Fraud
Jose Boyzo, age 49, of Myrtle Beach, South Carolina was charged in a 1-count Indictment with Theft of Government Property involving the cashing of fraudulent tax refund checks, a violation of 18 U. S. C. § 641. The maximum penalty that Boyzo could receive is 10 years imprisonment and a maximum fine of $250,000. The case was investigated by agents of the Internal Revenue Service and is assigned to Assistant United States Attorney Rhett DeHart of the Charleston office for prosecution.Goose Creek Man Indicted for Illegal Reentry of an Alien Felon
Edwin Hernandez Hernandez, age 27, of Goose Creek, was charged in a one-count Indictment with Illegal Reentry of an Alien Felon, in violation of Title 8, United States Code, Sections 1326(a) and 1326(b)(1) respectively. The maximum penalty Hernandez could receive is 10 years imprisonment and a $250,000 fine. The case was investigated by Immigration and Customs Enforcement, Enforcement and Removal Operations (ICE-ERO) and is assigned to Assistant United States Attorney Dean H. Secor of the Charleston office for prosecution.Ladson Man Charged with Manufacturing and Possessing Counterfeit Currency
Chad John Gilman, age 42, of Ladson, was charged in an Indictment with one count of Manufacturing Counterfeit Currency and two counts of Possession of Counterfeit Currency, in violation of Title 18, United States Code, Sections 471 and 472 respectively. The maximum penalty Gilman could receive is 20 years imprisonment and a fine of $250,000 for each count. The case was investigated by agents of Department of Homeland Security, Secret Service and is assigned to Assistant United States Attorney Dean H. Secor of the Charleston office for prosecution.North Charleston Mother and Daughter Charged with Theft of Government Property
Mary Hayre, age 68, and Pamela Jeridore, age 44, both of North Charleston, were charged in a one-count Indictment with Theft of Government Property, a violation of Title 18, United States Code, Sections 641 and 2. The maximum penalty each defendant could receive is 10 years imprisonment and a fine of $250,000. The case was investigated by agents of the U.S. Department of Housing and Urban Development-Office of Inspector General (HUD-OIG) and is assigned to Assistant United States Attorney Dean H. Secor of the Charleston office for prosecution.Charleston Restaurant Owner Charged with False Statement and Obstruction of Proceedings before Department of Labor
Jose Jamie Villalpando, a/k/a Jose Jamie Villapondo, age 47, of Charleston, and owner of Senor Tequila Restaurant in Charleston, was charged in a four-count indictment with one count of False Statement, a violation of Title 18, United States Code, Section 1001(a)(1) and three counts of Obstruction of Proceedings before Departments, in violation of Title 18, United States Code, Section 1505. The maximum penalty Villalpando could receive for False Statement is 5 years imprisonment and a $250,000 fine, and the maximum penalty he could receive for each count of Obstruction of Proceedings before Departments is 5 years imprisonment and a $250,000 fine. The case was investigated by agents of Department of Labor-Office of Investigation (DOL-OIG) and is assigned to Assistant United States Attorney Dean H. Secor of the Charleston office for prosecution.The United States Attorney stated that all charges in these Indictments are merely accusations and that all defendants are presumed innocent until and unless proven guilty.
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Federal Court Sentences Johnson County Man for Felon in Possession of a FirearmRead the Press Release
DAVENPORT, IA - On April 14, 2015, David Allen Goodwin, age 35, of Johnson County, Iowa, was sentenced by United States District Court Chief Judge John A. Jarvey to 180 months in prison, after pleading guilty to felon in possession of a firearm, announced United States Attorney Nicholas A. Klinefeldt. Goodwin was also ordered to serve three years of supervised release following his imprisonment, forfeit the involved firearm, and pay $100 towards the Crime Victims Fund.
On October 9, 2013, Goodwin was found in possession of a Bushmaster model XM15-E2S, .223 caliber semiautomatic rifle at his Johnson County residence. Goodwin had been previously convicted of a felony, and at sentencing was found to be an armed career criminal as the result of three prior convictions for serious drug offenses and a violent felony.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Iowa Sixth Judicial District Department of Corrections. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa as part of the Project Safe Neighborhood initiative.
Farmington, Missouri, Pharmacist Pleads Guilty to Three Medicaid Fraud ChargesRead the Press Release
St. Louis, MO – PATRICIA A. HOEHN, Farmington, Missouri, pled guilty today to three felony counts involving false statements to the Missouri Medicaid program.
Specifically, in her plea agreement, Hoehn, a licensed pharmacist, admitted that she used three prescriptions that falsely stated and represented to Medicaid that a licensed medical doctor had prescribed a cough syrup that contained hydrocodone, a narcotic opioid pain medication, to three children. In reality, the prescriptions were false because no licensed medical doctor had actually prescribed the drugs to these three children on these three dates, and Hoehn knew that the children were not actually receiving these drugs. Further, in the plea agreement, Hoehn admitted that she destroyed her cellular telephone by striking it and placing it in a toilet to prevent law enforcement officers from recovering the telephone and searching it for text messages regarding these false prescriptions.
Hoehn entered her plea before United States District Judge Carol E. Jackson in St. Louis. Sentencing has been set for July 13, 2015.
These charges carry penalties of up to five years in prison and/or fines up to $250,000. The Court can also order restitution to be paid to the Missouri Medicaid program. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Missouri State Highway Patrol, the Mineral Area Drug Task Force, the Drug Enforcement Administration and the Office of Inspector General for the United States Department of Health & Human Services, with assistance from the Medicaid Fraud Control Unit of Missouri Attorney General Chris Koster and St. Francois County, Missouri, Prosecutor Jerrod Mahurin.
Ellettsville man charged with production of child pornographyRead the Press Release
Defendant allegedly placed hidden cameras in the bedroom and bathrooms of victims
PRESS RELEASE
Indianapolis – United States Attorney Josh J. Minkler announced today that Mathew K. Fisher, 38, Ellettsville, was indicted on child pornography charges while posing on Facebook as a high school student. Mathew K. Fisher 38, was indicted on charges of production, attempted production and distribution of child pornography.
“Protecting our innocent children from internet predators will remain a top priority of our office,” said Minkler. “Producing and distributing child pornography re-victimizes our children every time it is passed from one person to another.”
In December 2012, Fisher allegedly placed small video cameras in the bedroom and bathroom of two minor victims whom he was familiar with. The cameras recorded the two girls in various stages of undress. He then uploaded one of those photos to a website for further distribution.
In November 2014, he victimized a third young girl using Facebook. He friended her posing as a 17 year old high school student, sending her fake photos of himself. He then enticed her to take sexually explicit photos of herself and send them him.
According to Assistant United States Attorney Bradley P. Shepard, who is prosecuting this case for the government, Fisher faces up to 30 years’ incarceration if convicted on all counts.
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 Attorney’s Office 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 "resource.”
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Elkins man convicted of marijuana traffickingRead the Press Release
ELKINS, WEST VIRGINIA – Mark Wesley Lambert, 39, of Elkins, was convicted in federal court of marijuana trafficking in Randolph County, West Virginia, United States Attorney William J. Ihlenfeld, II, announced.
Lambert pled guilty to one count of “Distribution of Marijuana.” He faces up to five years in prison and a fine of up to $250,000.00. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen Warner prosecuted the case on behalf of the government. The Greater Harrison County Drug and Violent Crime Task Force, a HIDTA-funded initiative, the Mountain Region Drug and Violent Crime Task Force, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, investigated.
U.S. Magistrate Judge John S. Kaull presided.
Duke Energy Subsidiaries Plea to Criminal Charges and Sentencing Now Set for May 14, 2015Read the Press Release
RALEIGH – The Plea and Sentencing Hearing has been rescheduled for Duke Energy Business Services, LLC, Duke Energy Progress, Inc., and Duke Energy Carolinas, LLC to May 14, 2015 at 10:00 a.m. in the federal courthouse in Greenville, North Carolina. The companies were charged with multiple criminal violations of the Clean Water Act.
Persons directly and proximately harmed as a result of the conduct charged in this matter may have rights under the Crime Victims’ Rights Act. See 18 U.S.C. § 3771. If you believe that you are a crime victim in this matter, please contact the United States Attorney’s Office for the Eastern District of North Carolina at [email protected] no later than April 30, 2015.
The U.S. Attorney’s Offices will have no further comment on this matter until after court proceedings.
District Man Sentenced to 10 Years in Prison for Shooting at Special Police OfficerRead the Press Release
WASHINGTON – Jerrell Jackson, 29, of Washington, D.C., was sentenced today to 10 years in prison on charges stemming from an incident in which he threatened and subsequently shot at a Special Police Officer, Acting U.S. Attorney Vincent H. Cohen, Jr., announced.
Jackson was found guilty in February 2015, in the Superior Court of the District of Columbia, of eight counts, including assault on a police officer while armed, assault with a dangerous weapon, threats, and various firearms offenses. He was sentenced by the Honorable Todd E. Edelman. Following his prison term, he will be placed on three years of supervised release.
According to the government’s evidence, on July 27, 2014, at about 5:10 p.m., Jackson was involved in a verbal dispute with another man in the courtyard area of the Benning Courts Apartment Complex in the 1700 block of Benning Road NE. The victim, who was working as a Special Police Officer at the apartment complex, called for back-up assistance to clear the area and avoid an impending physical altercation. Jackson then accused the victim of being scared. When the victim denied being scared, Jackson threatened him by saying words to the effect of, “Oh, you’re not scared? Be here when I get back.”
Jackson left the apartment courtyard on foot. Approximately 15 minutes later, he returned on a bicycle and fired one shot at the victim, who was not injured. Jackson then fled the scene on the bicycle and was arrested pursuant to an arrest warrant on Aug. 4, 2014.
In announcing the sentence, Acting U.S. Attorney Cohen commended the work of those who investigated the case for the Metropolitan Police Department. He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Donville Drummond, Victim/Witness Advocate Jennifer Clark, Information Technology Specialist Anisha Bhatia, and Assistant U.S. Attorneys Jennifer Kerkhoff and Michael Truscott. Finally, he expressed appreciation for the work of Assistant U.S. Attorney Christine Macey, of the Felony Major Crimes Trial Section, who prosecuted the matter.
Dentist Involved in Medicaid Fraud Scheme Pleads GuiltyRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that MEHRAN ZAMANI, DDS, 50, of Pound Ridge, N.Y., pleaded guilty today in Hartford federal court to a federal health care fraud offense stemming from a multimillion Medicaid fraud scheme.
According to court documents and statements made in court, the Medicaid program is a joint federal-state program that provides funds for medical services to lower-income individuals who qualify for benefits. The program is jointly administered by the U. S. Department of Health and Human Services and supervised by the Centers for Medicare and Medicaid Services. In Connecticut, the Medicaid program is administered by the Connecticut Department of Social Services.
In the fall of 2008, ZAMANI was hired by Gary Anusavice to work as a dentist at Landmark Dental, a dental practice in West Haven that Anusavice had opened earlier in the year. At the time, Anusavice was a convicted felon, former dentist, and excluded Medicaid provider. Although Anusavice remained the primary decision maker for the business, ZAMANI became the dentist whose name and license were used as the front for the practice.
In approximately January 2009, ZAMANI signed an application for Landmark Dental to become a Medicaid provider. The application failed to disclose that Anusavice had an ownership interest in Landmark Dental, that he was subject of prior disciplinary and criminal actions, and that he was excluded from the Medicaid program. Even though ZAMANI was aware of Anusavice’s disciplinary history, ZAMANI subsequently signed Medicaid provider applications for two other dental practices operated by Anusavice, Dental Group of Stamford and Dental Group of Connecticut in Trumbull. Both applications also failed to disclose Anusavice’s background and involvement in the practices.
Pursuant to these fraudulent provider applications, from approximately January 2009 to March 2011, ZAMANI submitted or caused to be submitted numerous claims to Connecticut Medicaid pursuant to which Medicaid reimbursement payments were made.
As a result of this fraud, the Connecticut Medicaid program reimbursed Anusavice’s dental practices nearly $21 million.
ZAMANI pleaded guilty to one count of obstructing the administration of a federal health care program. He is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant on July 6, 2015, at which time he faces a maximum term of imprisonment of three years.
In March 2015, ZAMANI signed a settlement agreement that resolved pending civil matters with the U.S. Attorney’s Office and the State of Connecticut, Office of the Attorney General. Under the terms of the settlement agreement, ZAMANI agreed to pay $200,000, forfeit a dental office he owned at 18 Madison Street in Hartford, and give up all rights to approximately $1.9 million in Medicaid dollars that had been suspended by the Connecticut Department of Social Services.
ZAMANI also agreed to be excluded from all federal health care programs for a period of 10 years.
On June 3, 2013, Anusavice pleaded guilty to health care fraud and tax evasion offenses stemming from his involvement in this scheme. On October 9, 2013, he was sentenced to 97 months of imprisonment. In addition, he was ordered to pay restitution of more than $5.2 million, and back taxes of more than $1.8 million, plus applicable interest and penalties. He also forfeited his Rhode Island residence, a 33-foot yacht, a Mercedes Benz automobile and approximately $91,700 in cash.
Anusavice also has agreed to pay the state $9.9 million, which represents treble damages under the Connecticut False Claims Act and restitution under the Connecticut Unfair Trade Practices Act.
This matter was investigated by the U.S. Department of Health and Human Services, Office of Inspector General, the Internal Revenue Service-Criminal Investigation, and the Federal Bureau of Investigation. The Connecticut Attorney General’s Office provided assistance and cooperation throughout the investigation.
This case is being prosecuted by Assistant U.S. Attorneys Susan Wines and Richard Molot.
U.S. Attorney Daly encourages individuals who suspect health care fraud to report it by calling the Health Care Fraud Task Force at (203) 777-6311 or 1-800-HHS-TIPS.
Citizen of Dominican Republic Charged with Illegal ReentryRead the Press Release
PHILADELPHIA - Flavio Guzman, a/k/a ADanny Torres,” of Philadelphia, Pennsylvania, was charged today by indictment with one count of illegal reentry after deportation, announced United States Attorney Zane David Memeger. The indictment alleges that on or about March 27, 2015, Guzman, an alien, and a citizen of the Dominican Republic, was found in the United States after having been deported from the United States on or about May 5, 2011, and November 19, 2014.
If convicted the defendant faces a maximum possible sentence of 20 years in prison, a three-year period of supervised release, a $250,000 fine, and a $100 special assessment.
The case was investigated by Immigration and Customs Enforcement Enforcement and Removal Operations (“ERO”) and is being prosecuted by Assistant United States Attorney Sozi Pedro Tulante.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Cincinnati Man Charged with Production of Child Pornography, Coercion and EnticementRead the Press Release
Investigators seek help in identifying more victims
CINCINNATI – A federal grand jury has charged Martell A. Lowry, 25, of Cincinnati, with seven counts of production of child pornography involving seven different minors and coercion and enticement in an indictment returned in Cincinnati.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Hamilton County Sheriff Jim Neal, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), and other members of the Regional Electronics and Computer Investigations Task Force and (RECI) Greater Cincinnati Internet Crimes Against Children Task Force (ICAC), announced the indictment returned today.
A criminal complaint filed against Lowry alleged he used Facebook to contact young teenage boys for the purpose of soliciting sex from the juveniles. Lowry allegedly offered to pay them to either let him perform oral sex on them or to send him nude photos of themselves. Thus far, the investigation has identified more than 25 children as being victimized by Lowry.
According to the indictment, Lowry allegedly enticed and coerced at least 14 minors to engage in sexual activity for which he could be charged with an offense.
The indictment charges Lowry with seven counts of production of child pornography and one count of coercion and enticement.
Each count of production of child pornography is a crime punishable by up to 30 years in prison and coercion and enticement carries a maximum sentence of life in prison. Both crimes include at least five years of supervised release.
Lowry remains in custody.
U.S. Attorney Stewart commended the investigation of this case by the Hamilton County Sheriff’s Office, FBI, RECI and Greater Cincinnati ICAC, and Assistant United States Attorney Christy Muncy, who is prosecuting the case.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
The Regional Electronics Computer Investigations and Greater Cincinnati Internet Crimes Against Children continue to investigate Lowry’s internet and Facebook activity. Detectives have identified several juvenile victims and believe there may be more. If you have information or have been in contact with Lowry, please call investigators at 513-946-8353.
Christopher Lindsey Sentenced to 15 Years in Prison for Orchestrating Elaborate Fraud and Identity Theft ConspiracyRead the Press Release
United States Attorney Andrew M. Luger today announced the sentence of CHRISTOPHER LINDSEY, 42, to 15 years in prison for orchestrating an identity theft, check, and tax fraud scheme that spanned more than 10 years. The defendant was sentenced on April 13, 2015, before Judge Donovan W. Frank.
“Christopher Lindsey is responsible for compromising the bank accounts of thousands of victims,” said Assistant U.S. Attorney Lola A. Velazquez-Aguilu. “He enlisted countless individuals into his schemes to steal hundreds of thousands of dollars from banks and from taxpayers. The money he stole may never be repaid, but the fifteen-year sentence brings some measure of justice to those people whose lives he impacted.”
According to his guilty plea and documents filed in court, between October 2002 and December 2013, LINDSEY coordinated an elaborate fraud and identity theft scheme. The defendant obtained legitimate bank account information, including names and addresses of businesses and individuals, bank routing and account numbers, check numbers, and signatures, from a variety of sources, including approximately 20,000 stolen checks. LINDSEY used that stolen information to make counterfeit checks, which were later cashed or deposited at various financial institutions and businesses throughout the Twin Cities. In total, LINDSEY and his co-conspirators attempted to steal more than $1 million.
According to his guilty plea and documents filed in court, LINDSEY simultaneously led a conspiracy to submit false tax returns to the IRS. The defendant and his co-conspirators recruited individuals to file fraudulent tax returns. LINDSEY created fraudulent W-2s for the recruits, on which he combined the correct information of his co-conspirators, including names, dates of birth, and social security numbers, along with false information regarding employment, earnings, and withholdings. LINDSEY directed the filing of at least 40 fraudulent claims resulting in losses of more than $270,000.
These fraudulent tax refunds were loaded onto debit cards issued to some of the defendant’s co- conspirators. They, in turn, provided the debit cards to LINDSEY, who used them at make cash withdrawals from ATMs.
The investigation was conducted by the Minnesota Financial Crimes Task Force, which is comprised of the U.S. Secret Service, the U.S. Postal Inspection Service, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Internal Revenue Service- Criminal Investigations Division, the Minneapolis Police Department, the St. Paul Police Department, the Edina Police Department, the Duluth Police Department, the Ramsey County Sheriff’s Office, the Mille Lacs County Sheriff’s Office, and the Minnesota Bureau of Criminal Apprehension.
This case was prosecuted by Assistant United States Attorney Lola A. Velazquez-Aguilu.
Defendant Information:
CHRISTOPHER LINDSEY, 42
Brooklyn Park, Minn.
Convicted:
• Conspiracy to commit bank and wire fraud, 1 count
• Conspiracy to defraud the United States, 1 count
• Aggravated identity theft, 1 count
Sentenced:
• 180 months in prison
• 5 years supervised releaseCfo of Berlin, New Hampshire Business Indicted in Multi-million Dollar Bank Fraud CaseRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Steven D. Griffin, 59, of Berlin, New Hampshire, was charged in a nine-count indictment with making false statements to a financial institution in violation of 18 U.S.C. § 1014. Griffin appeared before Chief U.S. District Judge Christina Reiss in Burlington on April 6, 2015 and pled not guilty to the charges. He was released on conditions pending trial.
Griffin was part owner and Chief Financial Officer of Isaacson Structural Steel, Inc. (ISSI), which before its bankruptcy was one of the largest businesses in the North Country of New Hampshire. ISSI fabricated steel used in commercial construction. It entered into construction contracts to provide not only the steel for commercial buildings but also to provide subcontractor services, principally the erection of the steel. ISSI purchased steel and fabricated the various pieces of steel needed for each contract at its Berlin, New Hampshire location and then shipped the steel to building sites.
The indictment charges that, between 2007 and 2011, Griffin submitted inflated figures for assets of ISSI to Passumpsic Saving Bank, and other banks participating in loans to the company that totaled over $12 million, including a $2 million loan guaranteed by the Small Business Administration in late 2010. In April 2011, the banks learned about issues with ISSI’s asset figures. By June 2011, ISSI was in bankruptcy, and its assets were later liquidated. In the end, the banks lost millions of dollars as a result of the fraud.
Passumpsic Savings Bank is headquartered in the District of Vermont.
On February 13, 2014, Arnold Hanson, ISSI’s former Chief Executive Officer, who shared ownership of ISSI with Griffin, pled guilty to conspiring to make false statements to a financial institution. Hanson is scheduled to be sentenced on May 27, 2015.
If convicted, Griffin faces a maximum of 30 years in prison and a $1 million fine on each count. His actual sentence, in the event of conviction, would be determined by the court with reference to the advisory federal sentencing guidelines. Acting United States Attorney Cowles stated that the indictment is an accusation only and that Griffin is presumed to be innocent unless and until proven guilty.
The United States is represented in this matter by Assistant U.S. Attorneys Paul J. Van de Graaf and Timothy C. Doherty, Jr. Griffin is represented by Paul S. Volk of the Burlington law firm, Blodgett, Watts & Volk.
The investigation, which is ongoing, is being conducted by the Federal Bureau of Investigation, the Office of Inspector General for the Federal Deposit Insurance Corp., and the Office of Inspector for the Small Business Administration.
Carmel investor indicted for fraudRead the Press Release
Hundreds of thousands of dollars swindled from unsuspecting investors
PRESS RELEASE
Indianapolis – Josh J. Minkler, the United States Attorney, announced today that a federal grand jury has indicted a Carmel financial advisor on 66 counts including wire fraud, money laundering and securities fraud. Jaime C. Lopez 40, Carmel, induced investors into transferring their retirement funds to him which were never invested as promised.
“Stealing from retirement accounts to fund a gratuitous lifestyle is about as low as you can go. The greed of these defendants continues to shock me,” said Minkler. “Hopefully word will get out, the consequences of that greed include getting hit with the hammer of a federal indictment along with federal prison, if convicted.”
Lopez was a financial advisor who conducted business from his home in Carmel. He created various business names, JCL Interest Plus, JCL Capital Inc. and JCL Directs (JCL Entities) to direct funds from the unsuspecting investors. From January 2010-until June 2012, Lopez convinced investors to transfer their Individual Retirement Accounts to self-directed accounts. Lopez would then transfer the money into JCL Entities under his control.
Lopez solicited hundreds of thousands of dollars telling investors he had reinvested the money by loaning it to outside businesses, purchasing corporate bonds and notes or investing in real estate. Additional funds were used by Lopez to pay interest on promissory notes issued to the investors. Later the investors were issued new promissory notes for a longer term of investment and at a much lower rate of interest. Lopez never invested the money as promised, rather spending the money on the purchase of automobiles, home mortgage payments and home landscaping.
This case was investigated by the Internal Revenue Service-Criminal Investigation and the Indiana Secretary of State, Securities Division.
Special Agent in Charge Stephen Boyd stated, “Today’s indictment sends a clear message that the business practices of Mr. Lopez will not be tolerated and that he will be held accountable. IRS Criminal Investigation and our law enforcement partners will continue to aggressively pursue the illegal business practices of Mr. Lopez and others who defraud and steal from honest, hardworking Americans.”
“Lopez was not registered to sell securities with my office, which is the number one red flag of fraud,” said Secretary of State Connie Lawson. “Instead of operating as a licensed professional, he preyed on people he knew through church and took advantage of their trust. I hope this case serves as a warning to others to always check with my office before making an investment.”
According to Assistant United States Attorney James M. Warden, who is prosecuting the case for the government, Lopez could face up to 20 years on each count of wire fraud, 10 years for money laundering and 20 years for securities fraud.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
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Brownwood, Texas, Man Admits Possessing Prepubescent Child PornographyRead the Press Release
LUBBOCK, Texas — Robert Lawrence Noll, 40, of Brownwood, Texas, appeared today in federal court before U.S. Magistrate Judge Nancy M. Koenig and pleaded guilty to one count of possession of prepubescent child pornography, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
Noll, who is on bond, faces a maximum statutory penalty of 20 years in federal prison, a $250,000 fine, and a lifetime of supervised release. Sentencing will be set at a later date.
According to documents filed in the case, Noll used a laptop computer at his residence to search the Internet for images and videos of child pornography. In the course of searching for this material, Noll located, downloaded, and viewed numerous images and videos constituting child pornography, and some of those images involved prepubescent minors engaging in sexually explicit conduct.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Brown County Sheriff’s Office investigated. Assistant U.S. Attorney Steven M. Sucsy is in charge of the prosecution.
Bookie Sentenced for Money Laundering and Extortion ConspiraciesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y. – U.S. Attorney William J. Hochul, Jr. announced today that Joseph Ruff, 32, of Rochester, NY, who was convicted of conducting an illegal gambling business, conspiracy to commit money laundering and conspiracy to collect extension of credit by extortion, was sentenced to 41 months prison and three years supervised release by Chief U.S. District Judge Frank P. Geraci, Jr.The defendant was also ordered to forfeit $1,200,000 and approximately $20,489 in funds on deposit in certain bank accounts; his lakefront residence at on Edgemere Drive in Rochester, $30,000 in lieu of a second piece of real property and any interest in approximately $60,886 seized as part of the case.
Assistant U.S. Attorney Robert A. Marangola, who is handling the case, stated that Joseph Ruff conducted an illegal gambling business with his brother Mark Ruff, 40, of Connecticut and Paul Borrelli, 66, of Rochester. The gambling operation involved sports betting through multiple offshore internet gambling websites. Joseph Ruff also conspired with Mark Ruff and others to launder $230,000 in illegal gambling proceeds. Joseph Ruff delivered and deposited cash and check payments from bettors into personal bank accounts and/or business accounts of co-conspirators. He also made cash withdrawals from these bank accounts and wrote checks to third party payees from these and other bank accounts. The financial transactions were made with the intent to conceal or disguise the nature, location, source, ownership, or control of the illegal gambling proceeds, and while knowing that the cash payments and checks constituted illegal gambling proceeds.
In one instance, Joseph Ruff induced a bettor to make repayment on the extension of credit by telling the bettor that a third person had threatened to physically harm him (the defendant) if the bettor did not make repayment on the extension of credit. Thereafter, the bettor endorsed and delivered to the him a check for $230,000 as a repayment of the extension of credit for the bettor’s past gambling debt from sports wagers the bettor had placed with the him in connection with the illegal internet gambling business
Mark Ruff was convicted of money laundering and gambling charges and was sentenced to nine years in prison and ordered to forfeit $230,000. Charges against Paul Borrelli are pending. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The sentencing is the culmination of an investigation conducted by the Organized Crime Drug Enforcement Task Force, which included the Federal Bureau of Investigation, Internal Revenue Service, under the direction of Shantelle P. Kitchen, Special Agent in Charge, New York Field Office, Rochester Police Department, under the direction of Chief Michael Ciminelli, Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Division, Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent in Charge Delano A. Reid, New York Field Division, Greece Police Department, under the direction of Chief Patrick Phelan, the Webster Police Department, under the direction of Acting Chief Joseph Rieger, and Monroe County District Attorney’s Office, under the direction of District Attorney Sandra Doorley.
Bloomington Man Indicted for Using Stolen Identities in Conspiracy to Defraud the Irs Out of $1.8 MillionRead the Press Release
Ayotomide Ajifowobaje filed at least 200 fraudulent tax returns
United States Attorney Andrew M. Luger today announced the indictment of AYOTOMIDE AJIFOWOBAJE, 28, for using the stolen identities of hundreds of victims to file false tax returns throughout the United States. AJIFOWOBAJE is charged with conspiracy to defraud the United States, aggravated identity theft, and wire fraud. The defendant made an initial appearance following the filing of a criminal complaint on February 18, 2015, in United States District Court in St. Paul, Minn.
“This defendant is charged with stealing the identities of more than 200 victims to file false tax returns seeking nearly $2 million in fraudulent tax refunds,” said Assistant U.S. Attorney Michelle E. Jones. “Working with our colleagues at IRS-CI, we will vigorously investigate and prosecute those who victimize others and steal from the public fisc.”
“Today's indictment of Ayotomide Ajifowobaje highlights how seriously IRS Criminal Investigation and the United States Attorney's Office take the issue of identity theft,” said Special Agent in Charge Shea Jones of the St. Paul Field Office IRS Criminal Investigation. “We will continue to investigate those who prey on innocent American taxpayers who steal their identities and file false tax returns. IRS Criminal Investigation is committed to bringing the perpetrators to justice.”
According to the indictment and documents filed in court, between at least May 20, 2014, and February 17, 2015, AJIFOWOBAJE purchased stolen personal identifying information, including names, addresses, dates of birth, and social security numbers, of hundreds of individuals. Using the stolen identities of these victims, the defendant electronically filed tax returns containing false information. For the purpose of collecting the refunds from the IRS, AJIFOWOBAJE purchased debit cards and activated them using the same stolen identities that he used to file false tax returns.
According to the indictment and documents filed in court, in an effort to conceal his identity from law enforcement, AJIFOWOBAJE and his co-conspirators filed some of the false tax returns from hotels using free WiFi.
This case is the result of an investigation conducted by the Internal Revenue Service – Criminal Investigation Division.
This case is being prosecuted by Assistant U.S. Attorney Michelle E. Jones.
Defendant Information:
AYOTOMIDE AJIFOWOBAJE, 28
Bloomington, Minn.
Charges:
• Conspiracy to Defraud the United States, 1 count
• Wire Fraud, 18 counts
• Aggravated Identity Theft, 6 countsThe charges are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Berkeley County man convicted of unlawful possession of nineteen firearmsRead the Press Release
MARTINSBURG, WEST VIRGINIA – Timothy James Fisher, 48, of Bunker Hill, West Virginia, was convicted in federal court of unlawful possession of firearms, United States Attorney William J. Ihlenfeld, II, announced.
In response to reports that a patient at a local hospital had suffered a gunshot wound, the Berkeley County Sheriff’s Office searched Fisher’s house and discovered nineteen firearms. Fisher was previously convicted of the felony offense of “Second Degree Murder” in the Circuit Court of Anne Arundel County, Maryland in 1996. As a result of that conviction, Fisher is prohibited from possessing the aforementioned firearms.
Fisher pled guilty to one count of “Felon in Possession of Firearms.” He faces up to 10 years in prison and a fine of up to $250,000.00. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Paul Camilletti prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Berkeley County Sheriff’s Office led the investigation.
U.S. Magistrate Judge Robert W. Trumble presided.
Beckley area man pleads guilty to federal heroin chargeRead the Press Release
BECKLEY, W.Va. – United States Attorney Booth Goodwin announced today that John Lee Jenkins, 51, of Beckley, West Virginia, plead guilty in federal court in Beckley to distributing heroin. Jenkins admitted that on November 11, 2014, he sold heroin to a person who was cooperating with law enforcement authorities. The drug deal took place on Stanaford Road in Beckley, West Virginia.
Jenkins faces up to 20 years in prison and a $1,000,000 fine. United States District Judge Irene C. Berger scheduled the sentencing for August 12, 2015.
The Beckley/Raleigh County Drug and Violent Crime Unit conducted the investigation.
This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The United States 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.
Baltimore Man Sentenced in Fraud Scheme with Losses of More Than $600,000Read the Press Release
Baltimore, Maryland – Chief U.S. District Judge Catherine C. Blake sentenced Curlee Smittie, age 42, of Baltimore, today to 18 months in prison followed by three years of supervised release for wire fraud in connection with a scheme to defraud his bank and an automobile auction house. Chief Judge Blake also entered an order that Smittie pay restitution of $632,850.24.
The sentence 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 his plea agreement, from April 2008 until January 2009, Smittie fraudulently obtained checks from an automobile auction company by buying cars he already owned, using the company’s short-term credit program.
The company operates auction houses for automobile dealers at locations throughout the United States. Automobile dealers must be registered with the company to buy or sell automobiles at its locations. An individual who wishes to sell an automobile must list the car for sale under the name of a registered automobile dealer. Smittie was registered as a buyer and a seller under the company name Smittie Auto Brokers.
For buyers with an established track record of timely payment, such as Smittie, the company extended short term credit for purchases. Under this arrangement, the company issued a check for the proceeds of the automobile sale to the seller of the automobile on the day of sale. The buyer was allowed to take the automobile, with the promise to pay the purchase price to the auction company within two weeks.
Smittie admitted that he would list an automobile that he already owned for sale under the name of another registered automobile dealer. Smittie then purchased the automobile in his own name or the name of Smittie Auto Brokers, using the auction company’s short term credit program. Thus, Smittie was “selling” the car to himself using the company’s money.
As the person who had listed the car for auction, Smittie accepted the seller proceeds check from the company and deposited those checks into his business checking account. When the time came for Smittie to repay the short term loan from the auction company, Smittie sold another car to himself in the same manner, and used the seller proceeds to pay the previous debt.
As a result of the scheme, from April 2008 until January 2009, Smittie received a total of $2,126,997.50 in seller checks from the auction company and deposited them into his bank account.
In January 2009, employees at the auction company learned of Smittie’s scheme and ordered its bank to stop payment on all checks to sellers from whom Smittie had purchased automobiles. Once all of the checks that Smittie had recently deposited were reversed, the bank was left with a loss of $166,500.16.
When the auction company discovered Smittie’s scheme, Smittie owed the company $702,956.28 for automobiles that he had purchased using the company’s short term credit. The company was able to recover $236,606.20 by repossessing some of the automobiles Smittie had purchased, but was left with a loss of $466,350.08.
United States Attorney Rod J. Rosenstein commended the FBI for its work in the investigation and thanked Assistant U.S. Attorney Jefferson M. Gray, who prosecuted the case.
BB&T Bank Robber Sentenced to Federal PrisonRead the Press Release
Orlando, FL – Senior U.S. District Judge G. Kendall Sharp today sentenced Kenyada Emanuel Jacobs (42, Casselberry) to 5 years and 10 months in federal prison for bank robbery. He was also ordered to pay restitution in the amount of $1,750 to BB&T Bank. Jacobs pleaded guilty on January 15, 2015.
According to court documents, on October 27, 2014, Jacobs robbed a BB&T Bank located in Casselberry, Florida. Officers responded to the scene of the robbery and reviewed the bank’s surveillance footage. The officers recognized Jacobs because they had responded to a domestic disturbance involving Jacobs only hours earlier.
This case was investigated by Federal Bureau of Investigation and the Casselberry Police Department. It was prosecuted by Assistant United States Attorney Embry J. Kidd.
Antitrust Division Issues 2015 Annual NewsletterRead the Press Release
The Department of Justice’s Antitrust Division today issued the 2015 edition of its annual newsletter. The newsletter highlights the Antitrust Division’s civil and criminal enforcement actions, international cooperation efforts and competition guidance and advocacy over the last year.
The newsletter includes a message from Assistant Attorney General Bill Baer discussing the division’s recent litigation successes, prosecution of domestic and international cartels, efforts to provide antitrust guidance as new business models and technologies emerge, and continued competition advocacy, both in the U.S. and abroad. Assistant Attorney General Baer emphasized that the division’s ability to enforce antitrust laws across many different industries requires adherence to certain core principles: “We do not pick winners and losers; we focus on removing obstacles to competitive markets and protecting market structures that encourage competition. We want innovators to innovate and disrupters to disrupt, and for American consumers to benefit from dynamic markets.”
This year’s newsletter describes the division’s criminal enforcement efforts, which included obtaining approximately $1.3 billion in criminal fines and penalties – the largest amount ever secured by the division in a single fiscal year – and the incarceration of 21 executives for criminal violations of U.S. antitrust laws. The division also brought its first prosecution against a conspiracy specifically targeting e-commerce, in which pricing algorithms were manipulated to fix prices on the internet.
The civil enforcement update in the newsletter discusses the successful challenge, after a seven-week trial, to American Express’s antisteering rules. The newsletter refers to the decision of National CineMedia and Screenvision to abandon their proposed merger to monopoly after the division sued to enjoin the deal, and details the division’s successful effort to unwind a consummated merger to monopoly in the New York City “hop-on, hop-off” tour bus market. The newsletter also reports on the division’s recent use of disgorgement to ensure that defendants do not profit from unlawful conduct.
Finally, the newsletter includes profiles on division attorneys and economists, as well as an article on the division’s diversity initiatives.
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Amherst Doctor Arrested for Distributing Controlled Substances and Obtaining Prescriptions by FraudRead 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 Dr. Albert R. Cowie, 36, of Amherst, NY, was arrested this morning and charged by criminal complaint with unlawful distribution of a controlled substance, possession of a controlled substance by fraud, and conspiracy to commit a drug felony. The charges carry a maximum penalty of 20 years in prison, a $1,000,000 fine or both.
Assistant U.S. Attorney George C. Burgasser, who is handling the case, stated that according to the complaint, between January 25, 2010 and March 22, 2014, the defendant, a practicing radiologist, wrote 280 illegal prescriptions for controlled substances such as Oxycodone, Percocet, and Hydrocodone. The prescriptions were distributed to three individuals who then went to local pharmacies and had the scripts filled. According to the complaint, the individuals retained some of the controlled substances for personal use but returned the remainder of the narcotics to Cowie for his own use.
The complaint states that the defendant also established a relationship with a prostitute he met at an area strip club. As the relationship continued, Cowie provided $200 a day to the prostitute to support a heroin addiction. The defendant allegedly also injected the prostitute with heroin on one occasion. Subsequently, the defendant gave the prostitute prescriptions for Xanax and Percocet.
The complaint further states that during a meeting between Cowie and a confidential witness, the defendant advised the witness to lie to insurance investigators about his alleged prescription fraud. The witness is quoted as saying to the defendant “okay so just say they were written for me even though they were written for you…is what you’re saying? Cowie replied “right.”
“At a time when many in this community continue to struggle with serious opiate addiction, today’s arrest reveals that such powerful narcotics can sometimes become available for abuse because of the illegal actions of those in the medical community, said U.S. Attorney Hochul.”
Drug Enforcement Administration Special Agent in Charge James J. Hunt stated, “Not only was Dr. Cowie abusing his power to write prescriptions for pain medication, he was abusing the prescription pills himself. As a health care professional, Dr. Cowie should have known better, but this case proves that opiate addiction is a threat to everyone, to all socio and economic strata.” SAC Hunt would like to commend the DEA Buffalo Resident Office and the United States Attorney’s Office Western District of New York for their diligent work on this investigation.
The criminal complaint 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 Federal Bureau of Investigation, the New York State Bureau of Narcotic Enforcement, under the direction of NYS Health Commissioner Howard Zucker, and the Amherst Police Department, under the direction of Chief John Askey.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Amherst Doctor Arrested for Distributing Controlled SubstancesRead 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 Dr. Albert R. Cowie, 36, of Amherst, NY, was arrested and charged by criminal complaint with unlawful distribution of a controlled substance, possession of a controlled substance by fraud, and conspiracy to commit a drug felony. The charges carry a maximum penalty of 20 years in prison, a $1,000,000 fine or both.Assistant U.S. Attorney George C. Burgasser, who is handling the case, stated that according to the complaint, between January 25, 2010 and March 22, 2014, the defendant, a practicing radiologist, wrote 280 illegal prescriptions for controlled substances such as Oxycodone, Percocet, and Hydrocodone. The prescriptions were distributed to three individuals who then went to local pharmacies and had the scripts filled. According to the complaint, the individuals retained some of the controlled substances for personal use but returned the remainder of the narcotics to Cowie for his own use.
The complaint states that the defendant also established a relationship with a prostitute he met at an area strip club. As the relationship continued, Cowie provided $200 a day to the prostitute to support a heroin addiction. The defendant allegedly also injected the prostitute with heroin on one occasion. Subsequently, the defendant gave the prostitute prescriptions for Xanax and Percocet.
The complaint further states that during a meeting between Cowie and a confidential witness, the defendant advised the witness to lie to insurance investigators about his alleged prescription fraud. The witness is quoted as saying to the defendant “okay so just say they were written for me even though they were written for you…is what you’re saying? Cowie replied “right.”
“At a time when many in this community continue to struggle with serious opiate addiction, today’s arrest reveals that such powerful narcotics can sometimes become available for abuse because of the illegal actions of those in the medical community, said U.S. Attorney Hochul.”
Drug Enforcement Administration Special Agent in Charge James J. Hunt stated, “Not only was Dr. Cowie abusing his power to write prescriptions for pain medication, he was abusing the prescription pills himself. As a health care professional, Dr. Cowie should have known better, but this case proves that opiate addiction is a threat to everyone, to all socio and economic strata.” SAC Hunt would like to commend the DEA Buffalo Resident Office and the United States Attorney’s Office Western District of New York for their diligent work on this investigation.
The criminal complaint 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 Federal Bureau of Investigation, the New York State Bureau of Narcotic Enforcement, under the direction of NYS Health Commissioner Howard Zucker, and the Amherst Police Department, under the direction of Chief John Askey.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Alta, Iowa, Woman Sentenced to Federal Prison for Methamphetamine ConspiracyRead the Press Release
A woman who conspired to distribute methamphetamine was sentenced April 10, 2015, to eight years in federal prison.
Amanda Lee, age 23, from Alta, Iowa, received the prison term after a November 12, 2014, guilty plea to conspiracy to distribute 500 grams or more of methamphetamine mixture.
At the guilty plea, Lee admitted her involvement from February 2013 through February 2014, in a conspiracy that distributed at least 1500 grams of methamphetamine mixture. On February 14, 2014, Sioux City police officers were dispatched to a motel where defendant stayed. Officers found methamphetamine and a loaded revolver. An iPhone was seized from defendant that revealed several text messages with drug-related content and drug-related photos. Transcripts from the stored text messages revealed the defendant sold methamphetamine and possessed a handgun. Defendant was being supplied methamphetamine and was re-selling it in the Sioux City area.
Lee was sentenced in Sioux City by United States District Court Judge Mark W. Bennett. Lee was sentenced to 96 months’ imprisonment. A special assessment of $100 was imposed. She must also serve a 5-year term of supervised release after the prison term. There is no parole in the federal system.
Lee is being held in the United States Marshal’s custody until she can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Jack Lammers and investigated by the Tri-State Drug Task Force based in Sioux City, Iowa, which consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Bureau of Immigration and Customs Enforcement; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshal Service; South Dakota Division of Criminal Investigation; and the Woodbury County Attorney’s Office.
Court file information is available at https://ecf.iand.uscourts.gov/. The case file number is 14-4039.
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"Aiken Safe Communities": Two Men Sentenced on Federal Gun ChargesRead the Press Release
Contact Person: Lance Crick (864) 282-2100
COLUMBIA, South Carolina ---- United States Attorney Bill N. Nettles, stated today that two Aiken men, Jesse James Quarles, 34, and Kenneth Islar, 29, were sentenced in federal court in Columbia, each on charges of felon in possession of a firearm, a violation of Title 18, United States Code, Section 922(g)(1). Quarles, classified as an Armed Career Criminal based on his extensive criminal history, was subject to a statutory mandatory minimum of 15 years in prison and was sentenced to a term of imprisonment of 180 months. The Court sentenced Islar to 75 months in prison.
Quarles and Islar were indicted in July 2014 by a federal grand jury in separate indictments and entered guilty pleas in October. As to Quarles, evidence presented at the guilty plea hearing revealed that Quarles possessed a 9mm pistol while at a residence in Aiken County in April 2013. As to Islar, on May 30, 2014, he possessed and discharged a .380 caliber pistol in the Bi-Lo parking lot in Aiken. District Judge J. Michelle Childs of Columbia accepted the guilty pleas and sentenced both defendants Quarles and Islar previously waived their right to a detention hearing in October and remain in custody.
Prior to the federal firearms prosecution, Quarles and Islar were selected to participate in the Aiken Safe Communities. Launched in early 2013, the Aiken Safe Communities Initiative is a unified, proactive community approach to engage, educate, and encourage recurring offenders to change their behavior and make healthy life choices. The initiative also bands together local, state, and federal law enforcement to expedite the investigation and prosecution of individuals who reoffend in lieu of accepting opportunities and assistance offered by the community during public notification meetings held in Aiken several times a year. The next Safe Communities Offender Notification meeting will be held at 6pm on Thursday, May 14, 2015, at Aiken City Hall. The meeting is open to the public.
From 2012-2013, the city of Aiken experienced an 86% reduction in murders. Earlier this year, the South Carolina Community Development Association presented the city of Aiken with its 2014 Award of Excellence, recognizing community development efforts that have significantly improved the quality of life in the community.
Both cases were investigated by the ATF Regional Anti-Gang Enforcement (RAGE) Unit, a joint gang/violent crime task force with the Aiken Department of Public Safety, Aiken County Sheriff’s Office, North Augusta Department of Public Safety, Richmond County Sheriff’s Office, South Carolina Law Enforcement Division, the 2nd Circuit Solicitor’s Office (Aiken, Bamberg, and Barnwell counties), and the Bureau of Alcohol, Tobacco, Firearms and Explosives. These prosecutions as well as the United States Attorney’s Office ongoing commitment to the Aiken Safe Communities Initiative are part of Operation CeaseFire. CeaseFire is a joint local, state, and federal initiative which seeks to prosecute aggressively individuals who unlawfully use, possess, or transfer firearms. Both cases are assigned to Assistant United States Attorney Lance Crick of the Greenville office.
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$1.3M Settlement with Asbury Health Center Resolves False Claims Act AllegationsRead the Press Release
PITTSBURGH - Asbury Health Center, a continuing-care retirement community located in Pittsburgh, has agreed to pay the United States $1,331,837.96 to settle False Claims Act allegations, United States Attorney David J. Hickton announced today.
The settlement results from a self-disclosure by Asbury to the United States Attorney’s Office and Office of Inspector General of the Department of Health and Human Services concerning Medicare payments for skilled nursing facility services. For post-hospital skilled nursing care, Medicare regulations require that a facility obtain a physician certification at the time of admission or as soon thereafter as reasonable and practical. The facility must also obtain a physician recertification within 14 days of admission and every 30 days thereafter. Based on information provided by Asbury, the United States alleged that it had civil claims against Asbury resulting from Medicare payments for post-hospital skilled nursing services that were not supported by physician certifications and recertifications. The settlement resolves the matter without the filing of litigation.
This matter was investigated by the United States Attorney’s Office for the Western District of Pennsylvania and the Office of Inspector General of the Department of Health and Human Services. Assistant United States Attorney David Lew handled this matter on behalf of the United States.
Tuesday 14 April 2015
Zuni Pueblo Man Pleads Guilty to Domestic Assault by a Habitual Offender ChargeRead the Press Release
ALBUQUERQUE – Christopher T. Tsalate, 27, pleaded guilty this morning to a domestic assault by a habitual offender charge. Under the terms of his plea agreement, Tsalate will be sentenced to 14 months and 17 days in federal prison followed by a term of supervised release to be determined by the court.
Tsalate, a member and resident of Zuni Pueblo, N.M., was arrested on Jan. 11, 2015, on an indictment charging him with domestic assault of an intimate partner by a habitual offender based on his two prior domestic violence convictions in the Pueblo of Zuni Tribal Court.
This morning, Tsalate pled guilty to the indictment and admitted assaulting the victim, his spouse, on May 7, 2014, in McKinley County, N.M.
Court records reflect that Tsalate previously was convicted on domestic violence charges before the Zuni Tribal Court in May 2010 and Oct. 2012. The victim in this case was also the victim in both of the prior tribal court cases.
Tsalate remains on conditions of release at a half-way house pending his sentencing hearing which has yet to be scheduled.
This case was investigated by the Zuni Pueblo Tribal Police Department and is being prosecuted by Assistant U.S. Attorney Novaline Wilson. It was brought pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Woodbridge Man Sentenced to 51 Months in Prison for Stealing More Than $1 Million from Milford CompanyRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that GIOVANNI MASUCCI, also known as John Masucci, 44, of Woodbridge, was sentenced today by U.S. District Judge Jeffrey A. Meyer in Bridgeport to 51 months of imprisonment, followed by three years of supervised release, for stealing more than $1 million from a Connecticut company.
According to court documents and statements made in court, MASUCCI operated a financial consulting business in North Haven. As part of his business, he provided financial consulting services to a company located in Milford and had access to the company’s checkbooks and financial ledgers. From approximately September 2011 to February 2014, MASUCCI defrauded the Milford company by diverting company funds to his own bank account. He also wrote checks from the company’s bank account to pay his personal credit card bills and the credit card bills of a personal acquaintance. As part of the scheme, MASUCCI created false entries in the corporate check ledger that falsely indicated the checks were written for legitimate business purposes, and he typically forged the signature of the authorized company representative on the checks. In order to conceal his crime, MASUCCI took the company’s check book.
The investigation revealed that MASUCCI used the stolen funds to pay for domestic and international travel, lodging, and to make purchases at several high-end retailers.
Judge Meyer ordered MASUCCI to pay restitution of at least $1.16 million. A final restitution order will be issued after further court proceedings.
MASUCCI was arrested on July 13, 2014. On November 13, he pleaded guilty to one count of wire fraud.
This matter was investigated by the Connecticut Financial Crimes Task Force, the United States Secret Service and the Greenwich Police Department. The case was prosecuted by Assistant U.S. Attorney Ray Miller.
Winters Man Sentenced to 13 Years in Prison for Child Pornography OffenseRead the Press Release
SACRAMENTO, Calif. — Michael Rea, 26, of Winters, was sentenced today by United States District Judge John A. Mendez to 13 years and one month in prison for receiving child pornography, United States Attorney Benjamin B. Wagner announced.
According to court documents, Rea is a registered sex offender with a history of repeatedly failing to update his registration information. In September 2013, Rea was on probation for a prior conviction for failing to register as required by California’s sex offender registration laws. Agents of the Sacramento Sexual Assault Felony Enforcement (SAFE) Taskforce and the Federal Bureau of Investigation found Rea living with a child at a location where he was not registered to live. A search of his belongings found a DVD containing six movies of children being sexually abused. Rea has been in custody since his arrest.
The SAFE Team is a multi-jurisdictional task force created with grant funding from the California State Office of Emergency Services. The SAFE Task Force is composed of members from the Sacramento County Sheriff’s Office, the Sacramento Police Department, the Sacramento County Probation Department, and the U.S. Marshals Service, and receives support from the California Department of Corrections and Rehabilitation. Assistant United States Attorney Matthew G. Morris prosecuted the case.
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 those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. Click on the “resources” tab for information about Internet safety.
Docket #: 2:13-cr-397 JAM
Wilbarger County Man Sentenced to 40 Years in Federal Prison on Methamphetamine ConvictionRead the Press Release
WICHITA FALLS, Texas — A Wilbarger County man, who possessed methamphetamine with the intent to distribute it, was sentenced yesterday by U.S. District Judge Reed C. O’Connor to a lengthy federal prison term, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
Benny Dennis, 54, of Electra, Texas, was sentenced to 40 years in federal prison at a sentencing hearing held yesterday in federal court in Wichita Falls, Texas. Dennis pleaded guilty on September 30, 2014, to one count of possession with intent to distribute and distribution of five grams or more or methamphetamine.
According to documents filed in the case, on March 6, 2014, at the direction of law enforcement, an individual called Dennis to set up a meeting to pay for methamphetamine that Dennis had “fronted” him and to obtain additional methamphetamine from Dennis. The two met at a house on North Wilbarger Street in Electra. During the meeting, the individual paid Dennis $1,500 cash for one ounce of methamphetamine that Dennis had “fronted” him a few days earlier, and Dennis agreed to “front” the individual an additional ounce of methamphetamine. Dennis advised he had to go to a house on East Lincoln Street in Electra to get the methamphetamine. The individual and Dennis travelled separately to that location and met there a little while later. Dennis gave the individual a clear plastic bag of a clear, crystal-like substance. That substance, which was later tested by a Texas Department of Public Safety laboratory, was, in fact, 27.98 net grams of methamphetamine and had a purity level of 95%, which exceeds five actual grams of methamphetamine.
The Texas Department of Public Safety, the Wichita County District Attorney’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Mary Walters prosecuted.
United States Attorney Announces Settlement with the Fabco Discount Shoe Store for Barring A Wheelchair Bound Woman from Shopping in Its Brooklyn Branch StoreRead the Press Release
Loretta E. Lynch, United States Attorney for the Eastern District of New York, today announced the settlement of a federal civil rights suit against the FABCO Shoe Store chain (“FABCO”), for violations of the Americans With Disabilities Act (“ADA”), 42 U.S.C. § 12101 et seq. The ADA prohibits discrimination against people with disabilities and requires places of public accommodation to make reasonable accommodations to allow people with disabilities to use and enjoy their facilities.
The settlement resolves claims made by Amal Mohamed, who is disabled and confined to a wheelchair. Mrs. Mohamed alleged that on May 1, 2013, she entered the FABCO branch located at 2171 86th Street in Brooklyn to buy shoes for herself and her children. She further alleged that a FABCO employee told her she was not permitted in the store because the tires on her motorized wheelchair might soil the store’s carpet. Mrs. Mohamed stated that the FABCO employee attempted to remove her physically from the store and stopped only when the employee discovered the wheelchair was too heavy to be moved.
Under the settlement, FABCO will pay $10,000 to Mrs. Mohamed. It will also train all of its store managers on their obligations and responsibilities under the ADA, and FABCO has agreed to post signs in each of its 51 stores welcoming people with disabilities. FABCO cooperated in the government’s investigation.
“Instead of treating Mrs. Mohammad like any other customer, FABCO violated her rights under the ADA by not allowing her to shop for herself and her children and attempting to remove her from the store,” stated U.S. Attorney Lynch. “This settlement serves notice that store owners who fail to respect the rights of individuals with disabilities will be held accountable for their actions.”
FABCO owns and operates 51 discount shoe stores throughout Brooklyn, Queens, Manhattan, and the Bronx, as well as in New Jersey and Westchester County.
Kevan Cleary, Senior Trial Counsel, handled this matter on behalf of the United States.
Two Georgia Men Sentenced to Prison for Stolen Identity Tax Refund FraudRead the Press Release
Two Georgia residents were sentenced today in U.S. District Court in Atlanta for their involvement in a stolen identity tax refund fraud scheme, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and Acting U.S. Attorney John A. Horn of the Northern District of Georgia.
Obi Emelogu, 51, of Woodstock, Georgia, was sentenced to serve 45 months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $719,872. Oloh Samuel, 33, of Acworth, Georgia, was sentenced to serve 18 months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $146,179. On Oct. 10, 2014, Emelogu pleaded guilty to conspiracy to defraud the United States and aggravated identity theft. On Dec. 2, 2014, Samuel pleaded guilty to conspiracy to defraud the United States.
“One of the Tax Division’s highest priorities is prosecuting individuals who use stolen identities to file fictitious income tax returns and claim fraudulent refunds,” said Acting Assistant Attorney General Ciraolo. “This street crime threatens the very fabric of tax administration and often victimizes the most vulnerable members of our communities. The Tax Division is committed to working with our partners in law enforcement to identify these schemes, dismantle the criminal operations and seek to incarcerate the offenders who view the Federal Treasury as their own personal bank account.”
“These defendants brazenly stole money from the American taxpayers with little regard for whom they affect,” said Acting U.S. Attorney Horn. “We have committed resources to combat this kind of theft, and will aggressively pursue and prosecute those who believe they can file false tax returns.”
“IRS-Criminal Investigation will remain proactive in the investigation of individuals and groups especially return preparers, who engage in stealing the identities of innocent people,” said Special Agent in Charge Veronica F. Hyman-Pillot of Internal Revenue Service-Criminal Investigation (IRS-CI). “We will continue to utilize every tool available to investigate those who conspire with each other to victimize members of our community for their own personal gain.”
“These sentences send a clear message that the federal government will aggressively investigate and prosecute the crime of identity theft involving stolen tax refunds,” said J. Russell George, Treasury Inspector General for Tax Administration (TIGTA). “While criminals may find it easy to steal someone’s identity using their personal information, they need to know that the punishment for committing this crime will be commensurate with the devastating toll identity theft takes on its victims.”
According to court documents other information presented in court, Samuel and Emelogu participated in a scheme using stolen identities to file fraudulent federal income tax returns, including tax returns filed using stolen identities. The scheme involved businesses located in Georgia, including S & O Accounting Services LLC, which was controlled by Samuel, and Xpress Auto Parts & Towing LLC and O.B. Consulting & Tax Services LLC., which were controlled by Emelogu. In 2012, Emelogu filed hundreds of false federal income tax returns with the IRS that included fraudulent claims for tax refunds directed to be paid into his business bank accounts and into a bank account controlled by Samuel. Electronic evidence established that additional false tax returns were also filed from overseas and the refunds were deposited into Samuel’s bank account. At sentencing, the court found that the intended loss amount attributable to Emelogu was more than $400,000 and that the intended loss amount attributable to Samuel was more than $1 million.
Acting Assistant Attorney General Ciraolo and Acting U.S. Attorney Horn commended the special agents of IRS-CI and the TIGTA, who investigated the case, and Assistant U.S. Attorney Thomas J. Krepp of the Northern District of Georgia and Trial Attorney Jason H. Poole of the Tax Division, who prosecuted the case.
Two Georgia Men Sentenced for Conspiring to File False Tax ReturnsRead the Press Release
ATLANTA - Obi Emelogu and Oloh Samuel have been sentenced for their involvement in a tax refund fraud scheme in which Emelogu filed false income tax returns and directed that the fraudulent refunds be deposited into bank accounts he and Samuel controlled.
“These defendants brazenly stole money from the American taxpayers with little regard for whom they affect,” said Acting U.S. Attorney John Horn. “We have committed resources to combat this kind of theft, and will aggressively pursue and prosecute those who believe they can file false tax returns.”
“One of the Tax Division’s highest priorities is prosecuting individuals who use stolen identities to file fictitious income tax returns and claim fraudulent refunds,” said Acting Assistant Attorney General Ciraolo. “This street crime threatens the very fabric of tax administration and often victimizes the most vulnerable members of our communities. The Tax Division is committed to working with our partners in law enforcement to identify these schemes, dismantle the criminal operations and seek to incarcerate the offenders who view the Federal Treasury as their own personal bank account.”
“IRS Criminal Investigation will remain proactive in the investigation of individuals and groups especially return preparers, who engage in stealing the identities of innocent people,” said Veronica F. Hyman-Pillot, Special Agent in Charge. “We will continue to utilize every tool available to investigate those who conspire with each other to victimize members of our community for their own personal gain.”
“These sentences send a clear message that the federal government will aggressively investigate and prosecute the crime of identity theft involving stolen tax refunds,” said J. Russell George, Treasury Inspector General for Tax Administration (TIGTA). “While criminals may find it easy to steal someone’s identity using their personal information, they need to know that the punishment for committing this crime will be commensurate with the devastating toll identity theft takes on its victims.”
According to Acting United States Attorney Horn, the charges and other information presented in court: Emelogu owned and operated “O.B. Consulting and Tax Services, LLC,” a tax preparation business in Marietta, Georgia. In 2012, Emelogu filed hundreds of false tax returns claiming fraudulent refunds that were directed into his bank account. Emelgou also filed false tax returns that were deposited into a bank account Samuel controlled. Electronic evidence also showed that additional false tax returns were filed from overseas and refunds were deposited into Samuel’s bank account. Many of the tax refunds that were directed into the defendants’ bank accounts came from tax returns that used stolen names and social security numbers.
Obi Emelogu, 51, of Woodstock, Georgia, has been sentenced to three years, and nine months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $719,872. Emelogu was convicted on these charges on October 10, 2014, after he pleaded guilty.
Oloh Samuel, 33, of Acworth, Georgia, has been sentenced to one year, and six months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $146,179. Samuel was convicted on these charges on December 2, 2014, after he pleaded guilty.
This case was investigated by the Internal Revenue Service Criminal Investigation and the U.S. Treasury Inspector General for Tax Administration.
Assistant United States Attorney Thomas J. Krepp and DOJ Criminal Tax Division Trial Attorney Jason Poole prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Texas Doctor Sentenced to Prison for Health Care Fraud SchemeRead the Press Release
TYLER, Texas – A 63-year-old Dallas County, Texas, physician, has been sentenced to federal prison for health care fraud and identity theft violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales.
Tariq Mahmood, 63, of Cedar Hill, Texas, was found guilty by a jury of conspiracy to commit health care fraud, seven counts of health care fraud, and seven counts of aggravated identity theft following a four day trial before U.S. District Judge Michael Schneider. He was sentenced to 135 months in federal prison and ordered to pay restitution in the amount of $599,128.02 to Medicare, Medicaid, and Blue Cross Blue Shield of Texas.
According to information presented in court, Mahmood, a general practitioner, owned and operated several hospitals in the state of Texas, including Cozby Germany Hospital in Grand Saline, Renaissance Terrell Hospital in Terrell, Central Texas Hospital in Cameron, Community General Hospital in Dilley, and Lake Whitney Medical Center in Whitney. From January 2010 to April 2013, Mahmood and others carried out a scheme to defraud Medicare and Medicaid through the submission of false and fraudulent claims. Mahmood and others added, changed, and incorrectly sequenced diagnostic codes in a way that did not reflect the actual diagnoses and conditions of the patients and often did so without reviewing the medical records. They submitted false and fraudulent claims to Medicare and Medicaid based on the added, changed, and incorrectly sequenced diagnostic codes. Mahmood and others also unlawfully used Medicare beneficiaries’ names and Medicare numbers in order to commit health care fraud. Mahmood was indicted by a federal grand jury on April 11, 2013.
“Americans enjoy the best health care in the world and the cost for this care is expensive,” said John M. Bales, U.S. Attorney. “What we do not need is providers like Tariq Mahmood who masquerade as physicians who pretend to care about American health care but actually are determined to loot the Medicare Trust Fund. He is now being held to account, and I congratulate the prosecution team for a job very well done.”
“Today, Dr. Mahmood found out what health care providers who defraud Medicare are finding out all over America, you will be held accountable for your greed,” said Mike Fields, Special Agent in Charge, Department of Health and Human Services - OIG. “HHS-OIG agents will continue to work closely with our State and Federal law enforcement partners to protect the Medicare Trust Fund.”
The case was investigated by the Texas Office of the Attorney General – Medicaid Fraud Control Unit (OAG-MFCU), the U.S. Department of Health and Human Services – Office of the Inspector General (HHS-OIG), the Federal Bureau of Investigation (FBI), and the U.S. Postal Inspection Service (USPIS). This case was prosecuted by Assistant U.S. Attorneys Nathaniel C. Kummerfeld and Frank Coan and Special Assistant U.S. Attorney Ken McGurk.
Any individuals with knowledge of these or other health care fraud violations are encouraged to contact the Department of Health and Human Services’ fraud hotline at 1-800-HHS-TIPS (447-8477).
Tax Fraudster Claims Prison SentenceRead the Press Release
U.S. Attorney for the Southern District of California Laura E. Duffy announced that Arman Eritsian was sentenced in federal court yesterday to a 30-month prison term for his role in a conspiracy to defraud the Internal Revenue Service out of hundreds of thousands of dollars by filing false tax returns in the names of stolen identities. Eritsian is one of 20 defendants who have been sentenced in a series of tax and bank fraud prosecutions targeting organized groups that victimized individuals, financial institutions and the U.S. Treasury.
Eritsian, the lead defendant in one indictment, had earlier admitted that between 2010 and 2012, he conspired with others to steal the identifying information of unwitting victims in order to file false tax returns in their names. The conspirators would direct the IRS to pay bogus refund claims to addresses or bank accounts under their control, and then withdraw the fraud proceeds so they could be spent by the conspirators. For his part, Eritsian admitted that he obtained stolen identities that were later used to file fraudulent returns; utilized multiple addresses and bank accounts to receive tax refund checks; used email accounts to communicate details of the conspiracy with coconspirators; and employed debit cards to monitor accounts opened and maintained to receive fraudulent tax refunds.
Chief District Judge Barry Ted Moskowitz explained that the sentence was warranted in part because Eritisan had sought to defraud the very nation that had welcomed him as a persecuted immigrant just a few years earlier. Eritsian emigrated from Azerbaijan to the United States as an asylum seeker, but soon thereafter began to participate in tax and insurance fraud schemes using stolen identities. Within a matter of months of being released from state custody for one of these scams, Eritsian joined others in the tax fraud scheme that led to his federal conviction and the sentence imposed yesterday.
Eritsian’s sentencing is the latest flowing from the September 2013 arrests of dozens of people in “Operation Trillions Trouble.” The four related cases charged over 50 defendants with multiple tax fraud conspiracies and several schemes to defraud American financial institutions. United States Attorney Laura E. Duffy praised the hard work of agents from the FBI and IRS-CI, along with their state and local counterparts, to disrupt and dismantle these fraud schemes and protect American taxpayers.
Erick Martinez, Special Agent in Charge for IRS Criminal Investigation commented, “Identity theft and tax refund fraud were the lifeblood that Arman Eritsian and his co-conspirators used to further their massive fraud scheme. Yesterday’s sentencing of Eritsian, for his lead role in this crime ring, demonstrates IRS Criminal Investigation’s commitment to holding accountable those who victimize the public through brazen attempts at identity theft and tax refund fraud.”
FBI Special Agent in Charge, Eric S. Birnbaum commented, “The FBI will work tirelessly, using all investigative resources and intelligence capabilities, to dismantle sophisticated criminal enterprises that victimize the American public."
Eritsian was also ordered to pay $58,323 in restitution, most of which had already been collected by the IRS.
DEFENDANT Case Number: 13CR3480-BTMArman Eritsian
Age: 36 Woodland Hills, California CHARGESConspiracy to Commit Mail and Wire Fraud – Title 18, U.S.C., Section 371
INVESTIGATING AGENCIES
Maximum penalty: 5 years’ imprisonment, $250,000 fine, $100 special assessment, restitutionFederal Bureau of Investigation
Internal Revenue Service, Criminal InvestigationSouth Florida Doctor Indicted for Medicare FraudRead the Press Release
A South Florida Doctor was charged in a seventy-six count indictment for participating in a Medicare fraud scheme, announced U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office, Special Agent in Charge Shimon Richmond of the U.S. Department of Health and Human Services Office of the Inspector General’s Miami Region (HHS-OIG), Special Agent in Charge Michael D. Angelucci of the U.S. Railroad Retirement Board’s Office of Inspector General (RRB) and Special Agent in Charge John Khin of the Defense Criminal Investigative Service (DCIS).
Salomon E. Melgen, 60, of North Palm Beach, Florida, was chargedin an indictment, with 46 counts of health care fraud, 19 counts of making, presenting and filing false, fictitious and fraudulent claims and 11 counts of making false statements relating to health care.
According to the indictment, Melgen was an ophthalmologist and retina specialist licensed to practice medicine in the state of Florida, who owned and operated Vitreo-Retinal Consultants of the Palm Beaches (VRC), a medical clinic that was incorporated in 1990. VRC conducted business as “Vitreo Retinal Consultants Eye Center” and “The Melgen Retina Eye Center” and had four offices located in Palm Beach and St. Lucie Counties. Melgen’s high-volume medical practice provided services to as many as 100 patients or more in a single day. A large percentage of Melgen’s patients were Medicare beneficiaries.
The indictment alleges that from as early as 2004 and continuing through at least Dec. 31, 2013, Melgen participated in a scheme to defraud Medicare and other health care benefit programs, by submitting false claims and creating fraudulent entries on patients’ medical charts. Melgen is alleged to have falsely diagnosed patients with serious eye conditions, notably age-related macular degeneration (ARMD or AMD) and retinal disorders. Macular degeneration is a disease of the retina that is one of the leading causes of severe vision loss in persons age 65 and older. There are two forms of ARMD, “dry” and “wet.” In patients with dry macular degeneration, the cells of the central area of the retina (the macula) break down, causing distorted and blurred vision. In wet macular degeneration, abnormal blood vessels leak blood and fluid into the macula, causing scarring and rapid loss of vision. Without treatment, wet ARMD can lead to permanent vision loss. Based upon the false diagnoses, the defendant would allegedly perform and bill for medically unreasonable and unnecessary tests and procedures, which included unnecessary laser surgeries and eye injections.
The defendant is also alleged to have made exorbitant and improper profits from the purchase and administration of the drug Lucentis, which is used for the treatment of wet macular degeneration. The defendant would purchase the drug from the manufacturer, Genentech, arrange to have the “single-use” vials split into multiple doses and administered to multiple patients, and then separately bill Medicare and other health care providers at the reimbursement rate for each full dosage.
The defendant is also alleged to have caused patient files to contain false information, including the false diagnoses as well as fictitious drawings and diagrams that misrepresented the condition of the patients’ eyes. The indictment also alleges that the defendant prepared false and fictitious reports regarding his abnormal billing practices, in response to audit inquiries from Medicare.
Additionally, the defendant allegedly submitted claims for incomplete and non-performed diagnostic tests, such as angiographic studies on blind eyes and prosthetic eyes.
The indictment further charges that, between January 2008 and December 2013, the defendant billed the Medicare program more than $190 million, for which he, through VRC, was reimbursed and paid more than $105 million. A substantial portion of these reimbursement payments were allegedly obtained through fraudulent billing.
“Medicare was created to ensure adequate protection for the senior citizens against the cost of health care and to ensure that they are provided with quality medical services,” said U.S. Attorney Ferrer. “Medical professionals who violate their oath by failing to attend to the health of their patients and who submit falsified billing statements for their own personal gain, jeopardize the viability of government benefit programs. Our office will continue to work with all involved agencies to protect our senior citizens, prosecute those individuals who perpetuate the fraudulent schemes and help preserve precious Medicare dollars for the intended beneficiaries – the poor, sick and elderly.”
“People who defraud Medicare indirectly increase the cost of health care for everyone,” said Special Agent in Charge Piro. “The FBI and our law enforcement partners are committed to rooting out this kind of fraud and reclaiming money that was dishonestly obtained.”
“Patients fearing blindness sought treatment from Dr. Melgen’s office,” said Special Agent in Charge Richmond. “Instead, they allegedly received medically unreasonable and unnecessary tests and procedures for which they and taxpayers paid millions of dollars. My office will continue to work with our law enforcement partners to ensure the integrity of the Medicare program.”
“The Office of Inspector General for U.S. Railroad Retirement Board will continue to work with our law enforcement partners to investigate and prosecute any individual that defrauds the Medicare system,” said Special Agent in Charge Angelucci.
"Today's indictment is part of an ongoing effort by the Defense Criminal Investigative Service (DCIS) and its law enforcement partners to protect the integrity of federal health care programs and the quality of care our military service members receive,” said Special Agent in Charge Khin. “DCIS will tirelessly pursue allegations of health care fraud that put the Warfighter at risk and burden the Defense Health Agency with unnecessary costs."
Melgen is scheduled to be arraigned on the indictment on April 15, 2015, in West Palm Beach, Florida, before U.S. Magistrate Judge James M. Hopkins of the Southern District of Florida.
U.S. Attorney Ferrer commended the investigative efforts of the FBI, HHS-OIG, RRB and DCIS. This case is being prosecuted by Assistant U.S. Attorneys Roger H. Stefin, Carolyn Bell and Alexandra Chase of the Southern District of Florida.
An indictment is only an accusation and the defendant is presumed innocent unless and until proven guilty.
A copy of this press release may be found on the website of the U.S. Attorney's Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the U.S. District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.