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Friday 10 April 2015
Arkansas Woman Sentenced in New Mexico to 60 Months in Federal Prison for Drug Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Shelia Villegas, 47, of Manila, Ark., was sentenced late yesterday afternoon in federal court to 60 months in federal prison followed by three years of supervised release for her conviction on methamphetamine and cocaine trafficking charges.
Villegas was arrested on April 29, 2014, on a criminal complaint alleging methamphetamine and cocaine trafficking charges. She subsequently was indicted in a two-count indictment charging her with possession of methamphetamine with intent to distribute and possession of cocaine with intent to distribute.
On Jan. 7, 2015, a jury returned a guilty verdict on both counts of the indictment after a two- day trial. The evidence at trial established that on April 29, 2014, an officer of the Albuquerque Police Department (APD) conducted a routine traffic stop on Villegas for failure to maintain a single lane. After issuing a citation to Villegas, the officer asked and received Villegas’ consent to a search of her vehicle. The officer then deployed a narcotics canine on the vehicle. After the canine alerted and thus indicated the presence of drugs, the officer and HSI agents searched Villegas’ vehicle and found 19 bundles, 18 of which contained an aggregate of 20 pounds of methamphetamine and one which contained more than 700 grams of cocaine.
The evidence at trial included the APD officer’s recording of his encounter with Villegas. In addition, an agent with Homeland Security Investigations (HSI) testified that Villegas made a post-arrest statement in which she acknowledge that she was transporting drugs from Calif. to Ark. in exchange for $10,000.00 plus $500.00 in travel expenses.
This case was investigated by the Albuquerque office of HSI and APD and was prosecuted by Assistant U.S. Attorneys Paul Mysliwiec and Nicholas Jon Ganjei.
Thursday 9 April 2015
Woman Convicted and Man Sentenced in Houston Armored Car RobberyRead the Press Release
HOUSTON – Emeral Watson, 19 of Houston, has entered a plea of guilty in relation to an attempted robbery of an armored car operating in and around Houston, announced U.S. Attorney Kenneth Magidson. Co-defendant Effron Williams, 22, of Houston, was previously convicted and was ordered to prison yesterday as a result of his guilty plea.
U.S. District Judge Keith Ellison ordered Williams to serve a total of 130 months for his convictions of conspiracy and interference with commerce by robbery and discharging of a firearm during the commission of a crime of violence.
Garda Cash Logistics., who operated the truck during the robbery attempt, maintains offices throughout the United States and was engaged in the business of secured armored transport of United States currency in interstate commerce and in picking up and delivering United States currency to financial institutions and check cashing businesses, both of which are industries which affect interstate commerce.
Watson and Williams were charged along with Christopher Brandon Pietrie, 19, also of Houston, for their involvement in the March 10, 2013, attempted robbery of a Garda Cash Logistics armored truck at the Chase Bank located at 10411 North Freeway in Houston. Watson drove to the location, while Williams and Pietrie got out of the car and approached the armored car guard who was in the process of filling an ATM machine. The guards and the defendants exchanged gunfire, but no one was injured and no money was obtained.
Pietrie also previously pleaded guilty and is set for sentencing July 29, 2015. Watson will be sentenced July 1, 2015. Both face up to 20 years in prison as well as a possible $250,000 fine for their convictions of conspiracy to interfere with commerce by robbery.
The case was investigated by the FBI’s Bank Robbery Task Force, which includes the Harris County Sherriff’s Office and Houston Police Department. Assistant U.S. Attorney Jennie Basile is prosecuting the case.Wilkes-Barre Man Sentenced for Heroin Trafficking and Firearm ChargesRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 32-year-old Wilkes-Barre man was sentenced to 360 months in prison today by U.S. District Court Judge Robert D. Mariani in Scranton, for charges involving trafficking in excess of 100 grams of heroin and related firearm offenses.
According to United States Attorney Peter Smith, the defendant, Terrell Stevenson, a/k/a “Inf”, was found guilty following a 5-day trial before Judge Robert D. Mariani.
Stevenson and his co-defendants were first charged in a criminal complaint filed in 2012 and were subsequently indicted by a federal grand jury in Scranton. The others charged include: William Nelson, age 42, and Merisol Merry, age 42, both of Brooklyn, New York; Lamar Thomas, age 40, Gregory Bush, age 52, both from Scranton; Michael Blondell, age 35, of Blakely; Christopher Taylor, age 26, of Binghamton, New York; and Sean Martinelli, 29, of Philadelphia. All co-defendants previously pleaded guilty and have been sentenced.
This case was investigated by the Drug Enforcement Agency Scranton office, the Lackawanna County District Attorney’s Office – Detective Division, the Pennsylvania State Police, the Scranton and Wilkes-Barre Police Departments. Assistant United States Attorney Michelle Olshefski prosecuted the case.
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Wayne Man Pleads Guilty to VA FraudRead the Press Release
Contact: Chris Ruge
Assistant United States Attorney
Tel: (207) 945-0373
Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Lawrence A. Stewart, 48, of Wayne, Maine, pled guilty yesterday in U.S. District Court to theft of public money.According to court records, from about October 2011 until January 2015, Stewart received additional Veterans Administration (“VA”) disability compensation based on unemployability when he was, in fact, gainfully employed. Stewart provided falsified documentation to the VA, underreporting the extent of his employment and the income he had received. In all, Stewart received overpayments of over $53,000 to which he was not entitled.
Stewart faces up to 10 years in prison, a $250,000 fine, and three years of supervised release. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The investigation was conducted by the VA Office of the Inspector General.
Two Mississippi Women Sentenced for Their Roles in a Conspiracy to Commit Racially Motivated Assaults, Culminating in the Killing of an African-American Man Run over by TruckRead the Press Release
The Justice Department announced today that Shelbie Brooke Richards, 21, of Pearl, Mississippi, and Sarah Adelia Graves, 22, of Crystal Springs, Mississippi, were sentenced today in U.S. District Court in Jackson for their roles in a federal hate crime conspiracy involving racially motivated assaults, culminating in the death of James Craig Anderson, an African-American man, in the summer of 2011. Richards had previously pleaded guilty to one count of conspiracy and one count of misprision for her role in the conspiracy and the cover-up. Graves previously pleaded guilty to one count of conspiracy for her role. Richards was sentenced to 96 months in prison and Graves was sentenced to 60 months in prison. A restitution hearing will be set for a later date.
Six other defendants in related cases, Deryl Paul Dedmon, 22, John Aaron Rice, 22, Dylan Wade Butler, 23, Jonathan Kyle Gaskamp, 22, and Joseph Paul Dominick, 23, all of Brandon, Mississippi, and William Kyle Montgomery, 25, of Puckett, Mississippi, were previously sentenced to 600 months, 220 months, 78 months, 48 months, 48 months, and 224 months, respectively, for their roles in the conspiracy. Two other defendants involved in related cases—John Louis Blalack, 21, and Robert Henry Rice, 24, both of Brandon, Mississippi—are awaiting sentencing.
“The Justice Department will always fight to hold accountable those who commit racially motivated assaults,” said Acting Assistant Attorney General Vanita Gupta of the Civil Rights Division. “We hope that the prosecution of those responsible for this horrific crime will help provide some measure of closure to the victim’s family and to the larger community affected by this heinous crime.”
“This prosecution sends a clear message that this office, in partnership with the DOJ Civil Rights Division, will prioritize and aggressively prosecute hate crimes and others civil rights violations in the Southern District of Mississippi,” said U.S. Attorney Gregory K. Davis of the Southern District of Mississippi.
“The FBI takes very seriously its responsibility to uphold the civil rights of all citizens,” said Special Agent in Charge Donald Alway of the FBI in Mississippi. “Together with its law enforcement partners, the FBI will continue its efforts to aggressively pursue and bring to justice all those individuals who conspire to deprive others of their civil rights merely because of the color of their skin."
In prior court hearings, the defendants had admitted that beginning in the spring of 2011, they and others conspired with one another to harass and assault African Americans in and around Jackson. On numerous occasions, the co-conspirators used dangerous weapons, including beer bottles, sling shots and motor vehicles, to cause, and attempt to cause, bodily injury to African Americans. They would specifically target African Americans they believed to be homeless or under the influence of alcohol because they believed that such individuals would be less likely to report an assault. The co-conspirators would often boast about these racially motivated assaults.
Richards and Graves admitted their involvement in two racially motivated assaults, including the beating and killing of James Craig Anderson. Specifically, they admitted that in the early morning hours of June 26, 2011, they and five other co-conspirators agreed to carry out their plan to find, harass and assault African Americans. At around 4:15 a.m., Montgomery, John Aaron Rice, Blalack, and Butlers drove to west Jackson in Montgomery’s white Jeep with the understanding that Richards, Graves and Dedmon would join them a short time later.
At approximately 5:00 a.m., the four occupants of the Jeep spotted Anderson in a motel parking lot off Ellis Avenue. They decided that Anderson would be a good target for an assault because he was African-American and appeared to be intoxicated. Rice and Blalack got out of the Jeep to distract Anderson while they waited for the Richards, Graves, and Dedmon to arrive. After Richards, Graves and Dedmon arrived in a Ford F250 truck, Rice and Dedmon physically assaulted Anderson. After the assault, the four occupants of the Jeep left the motel parking lot in the Jeep. Dedmon then deliberately used his truck to run over Anderson, causing injuries which resulted in Anderson’s death. Richards initially falsely told law enforcement officials that she did not know the reason for the assault and did not encourage Dedmon to hit the victim with the truck. Richards later admitted that she knew that the assault was racially motivated and that she and Graves encouraged Dedmon to commit the fatal assault.
This case was the result of a cooperative effort among the Justice Department’s Civil Rights Division, the U.S. Attorney’s Office for the Southern District of Mississippi and the Hinds County, Mississippi, District Attorney’s Office. This case was investigated by the Jackson Division of the FBI and the Jackson Police Department. It is being prosecuted by Trial Attorney Sheldon L. Beer and Deputy Chief Paige M. Fitzgerald of the Civil Rights Division, and Glenda R. Haynes of the U.S. Attorney’s Office for the Southern District of Mississippi.
Two Members of El Dorado Drug Trafficking Organization Sentenced to a Combined Total of over 14 Years in PrisonRead the Press Release
El Dorado, Arkansas - Conner Eldridge, United States Attorney for the Western District of Arkansas, announced that Kendall J. Dykes, aka “KD”, age 43, of El Dorado, Arkansas, and Jewel E. Easter, age 34, of Little Rock, Arkansas, were sentenced today to a combined total of over 14 years in federal prison. Dykes was sentenced to 84 months in prison, followed by three years of supervised release on one count of Conspiracy to Distribute Methamphetamine. Easter received a sentence of 92 months in prison followed by three years of supervised release on one count of Conspiracy to Distribute Methamphetamine. The Honorable Susan O. Hickey presided over the sentencing hearings in the United States District Court in El Dorado.
U.S. Attorney Eldridge commented, “Like many towns in South Arkansas, El Dorado has been plagued by drug trafficking. With this operation, these two defendants, along with numerous others, have been prosecuted and will spend a significant portion of their lives in federal prison. Cleaning up drug activity is critical to the success and growth of El Dorado, as it is for all communities. We appreciate the hard work and dedication on behalf of the law enforcement agencies involved in the investigation of this case, and we will continue to vigorously prosecute drug traffickers across the Western District of Arkansas. ”
“These sentencings are a result of the concentrated efforts by United States Attorney’s Office, the FBI, the FBI Task Force and the 13th Judicial Drug Task Force, who partner together to disrupt and dismantle drug networks that threaten our neighborhoods,” commented David T. Resch, Special Agent In Charge of the Little Rock FBI, “Together we will continue to diligently investigate the movement and sale of drugs in our state.”
According to court records, beginning in January, 2013, agents with the FBI and FBI Task Force initiated an investigation targeting gang members who were involved in the trafficking of narcotics and firearms in El Dorado, Arkansas and surrounding areas. During the investigation, agents identified Antoine Cook and his drug trafficking organization as a major distributor of methamphetamine in and around Union County, Arkansas. Jewell Easter was identified as one of Cook’s sources of supply for methamphetamine, while Kendall Dykes was identified as a distributor of the methamphetamine for the organization. During the summer of 2013, pursuant to a court order, agents intercepted numerous wire and electronic communications of a cell phone used by Antoine Cook. During the course of the court-ordered
interception, investigators intercepted communications between Cook and Easter discussing the distribution of pound quantities of methamphetamine, and between Cook and Dykes in which Dykes discussed the purchase and distribution of ounce quantities of methamphetamine from Cook. In many of the wire and electronic communications between Cook and the defendants, coded language was used in an attempt to disguise their drug trafficking activities. Throughout the investigation, agents conducted numerous controlled purchases of ounce quantities of methamphetamine from Dykes, and were able to determine through physical surveillance and cell phone recordings that Dykes obtained methamphetamine directly from Cook for distribution. Additionally, during the investigation, agents learned that Easter was responsible for the distribution of multiple pound quantities of methamphetamine to Cook in the Western District of Arkansas. Dykes was arrested on October 10, 2013, and pleaded guilty to one count of Conspiracy to Distribute Methamphetamine on August 27, 2014. Easter was arrested on October 3, 2013, and pleaded guilty to one count of Conspiracy to Distribute Methamphetamine on December 9, 2014.Information regarding defendants related to this case follows:
Antoine C. Cook, aka “Twan”, pleaded guilty to one count of Conspiracy to Distribute More than 500 grams of Methamphetamine on February 4, 2014, and was sentenced to 168 months in federal prison.
Amos K. Moore, aka “Johnny”, pleaded guilty to one count of Conspiracy to Distribute Methamphetamine on March 10, 2014, and was sentenced to 130 months in federal prison.
Ronald E. Brown, aka “Caveman”, pleaded guilty to one count of Conspiracy to Distribute Methamphetamine on April 24, 2014, and was sentenced to 130 months in federal prison.
Jeffery Ekowa pleaded guilty to one count of Conspiracy to Distribute Methamphetamine on January 27, 2014, and was sentenced to 33 months in federal prison.
Varten Jaqoub Varentian pleaded guilty to one count of Distribution of Methamphetamine on September 8, 2014, and is currently awaiting sentencing.
These cases were investigated by the FBI, the FBI Task Force, and the 13th Judicial Drug Task Force. Assistant United States Attorney Ben Wulff prosecuted the cases for the United States.
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Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov
Two Cardiovascular Disease Testing Laboratories to Pay $48.5 Million to Settle Claims of Paying Kickbacks and Conducting Unnecessary TestingRead the Press Release
United States Sues Two Other Companies and Three Individuals for Similar Violations
Cardiovascular testing disease laboratories Health Diagnostics Laboratory Inc. (HDL), of Richmond, Virginia, and Singulex Inc., of Alameda, California, have agreed to resolve allegations that they violated the False Claims Act by paying remuneration to physicians in exchange for patient referrals and billing federal health care programs for medically unnecessary testing, the Department of Justice announced today. Under the settlements, which stem from three related whistleblower actions filed under the federal False Claims Act, HDL will pay $47 million and Singulex will pay $1.5 million. The government also intervened in the lawsuits as to similar allegations against another laboratory, Berkeley HeartLab Inc.; a marketing company, BlueWave Healthcare Consultants Inc., and its owners, Floyd Calhoun Dent and J. Bradley Johnson; and former CEO Latonya Mallory of HDL.
“Health care providers that attempt to profit by providing illegal inducements will be held accountable,” said Acting Assistant Attorney General Benjamin C. Mizer for the Justice Department’s Civil Division. “We will continue to advocate for the appropriate use of Medicare funds and the proper care of our senior citizens.”
As alleged in the lawsuits, HDL, Singulex and Berkeley induced physicians to refer patients to them for blood tests by paying them processing and handling fees of between $10 and $17 per referral and by routinely waiving patient co-pays and deductibles. In addition, HDL and Singulex allegedly conspired with BlueWave to offer these inducements on behalf of HDL and Singulex. As a result, physicians allegedly referred patients to HDL, Singulex and Berkeley for medically unnecessary tests, which were then billed to federal health care programs, including Medicare.
The Anti-Kickback Statute prohibits offering, paying, soliciting or receiving remuneration to induce referrals of items or services covered by federally funded programs. The Anti-Kickback Statute is intended to ensure that a physician’s medical judgment is not compromised by improper financial incentives and is instead based on the best interests of the patient.
“The District of South Carolina has more than doubled its resources allocated to the pursuit of fraud, including matters brought to our attention by whistleblowers,” said U.S. Attorney Bill Nettles of the District of South Carolina. “Whistleblower actions are a critical tool for holding health care providers accountable for fraudulent and abusive practices not only in South Carolina but nationwide.”
“When health care companies pursue profits by paying kickbacks to doctors, they undermine a patient’s ability to trust that medical decisions are being made for scientific reasons, not financial ones,” said Acting U.S. Attorney Vincent H. Cohen Jr. of the District of Columbia. “Those kickbacks also harm the taxpayer because they drive up the cost of federal health care programs with medically unnecessary tests. This significant settlement shows our determination to work with whistleblowers and our federal partners to defend the integrity of the health care system from illegal agreements that hurt patients and taxpayers.”
As part of the settlements, HDL and Singulex have agreed to enter into separate corporate integrity agreements with the Department of Health and Human Services’ Office of Inspector General (HHS-OIG). Those agreements provide for procedures and reviews to be put in place to avoid and promptly detect conduct similar to that which gave rise to these settlements.
“Today’s announcement that DOJ has settled in part and intervened in part in these whistleblower actions reflects the commitment by DOJ, our agency and our other law enforcement partners to ferret out alleged improper Medicare billings by health care companies that are looking to increase their profits at the expense of taxpayers,” said Special Agent in Charge Derrick L. Jackson of the HHS-OIG Atlanta Regional Office.
The lawsuits were filed by Dr. Michael Mayes, Scarlett Lutz, Kayla Webster and Chris Reidel under the qui tam, or whistleblower, provisions of the False Claims Act. Under the act, private citizens can bring suit on behalf of the government for false claims and share in any recovery. The whistleblowers’ share of the settlements has yet to be determined. The act also permits the United States to intervene in and take over a whistleblower suit, as it has done in part in the three actions. The United States advised the court that it would be filing its own complaint against the corporate and individual defendants against whom it has intervened within 120 days.
Two of the lawsuits separately allege that the former CEO Phillipe Goix of Singulex and Quest Diagnostics Inc., parent of Berkeley, are liable for the scheme; the government declined to intervene in the allegations against Goix and Quest.
The government’s actions illustrate its emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $23.9 billion through False Claims Act cases, with more than $15.2 billion of that amount recovered in cases involving fraud against federal health care programs.
These matters were investigated by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Offices of the District of South Carolina, the District of Columbia and the Middle District of North Carolina, HHS-OIG, the FBI, the U.S. Office of Personnel Management’s Office of Inspector General, and the Department of Defense’s Office of Inspector General Defense Criminal Investigative Service.
The cases are captioned United States ex rel. Mayes v. Berkeley HeartLab Inc., et al., Case No. 9:11-CV-01593-RMG (D.S.C.); United States ex rel. Riedel v. Health Diagnostic Laboratory, Inc., et al., Case No. 1:11-CV-02308 (D.D.C.); and United States, et al. ex rel. Lutz, et al. v. Health Diagnostic Laboratory, Inc., et al., Case No. 9:14-CV-0230-RMG (D.S.C.). The claims settled by these agreements and asserted against these companies and individuals are allegations only, and there has been no determination of liability.
Two Cardiovascular Disease Testing Laboratories to Pay $48.5 Million to Settle Claims of Paying Kickbacks and Conducting Unnecessary TestingRead the Press Release
WASHINGTON – Cardiovascular testing disease laboratories Health Diagnostics Laboratory Inc. (HDL), of Richmond, Va., and Singulex Inc., of Alameda, Calif., have agreed to resolve allegations that they violated the False Claims Act by paying remuneration to physicians in exchange for patient referrals and billing federal health care programs for medically unnecessary testing, the Department of Justice announced today.
Under the settlements, which stem from three related whistleblower actions filed under the federal False Claims Act, HDL will pay $47 million and Singulex will pay $1.5 million. The government also intervened in the lawsuits as to similar allegations against another laboratory, Berkeley HeartLab Inc.; a marketing company, BlueWave Healthcare Consultants Inc., and its owners, Floyd Calhoun Dent and J. Bradley Johnson; and former CEO Latonya Mallory of HDL.
“When health care companies pursue profits by paying kickbacks to doctors, they undermine a patient’s ability to trust that medical decisions are being made for scientific reasons, not financial ones,” said Acting U.S. Attorney Vincent H. Cohen, Jr. “Those kickbacks also harm the taxpayer because they drive up the cost of federal health care programs with medically unnecessary tests. This significant settlement shows our determination to work with whistleblowers and our federal partners to defend the integrity of the health care system from illegal agreements that hurt patients and taxpayers.”
“Health care providers that attempt to profit by providing illegal inducements will be held accountable,” said Acting Assistant Attorney General Benjamin C. Mizer for the Justice Department’s Civil Division. “We will continue to advocate for the appropriate use of Medicare funds and the proper care of our senior citizens.”
As alleged in the lawsuits, HDL, Singulex and Berkeley induced physicians to refer patients to them for blood tests by paying them processing and handling fees of between $10 and $17 per referral and by routinely waiving patient co-pays and deductibles. In addition, HDL and Singulex allegedly conspired with BlueWave to offer these inducements on behalf of HDL and Singulex. As a result, physicians allegedly referred patients to HDL, Singulex and Berkeley for medically unnecessary tests, which were then billed to federal health care programs, including Medicare.
The Anti-Kickback Statute prohibits offering, paying, soliciting or receiving remuneration to induce referrals of items or services covered by federally funded programs. The Anti-Kickback Statute is intended to ensure that a physician’s medical judgment is not compromised by improper financial incentives and is instead based on the best interests of the patient.
“The District of South Carolina has more than doubled its resources allocated to the pursuit of fraud, including matters brought to our attention by whistleblowers,” said U.S. Attorney Bill Nettles of the District of South Carolina. “Whistleblower actions are a critical tool for holding health care providers accountable for fraudulent and abusive practices not only in South Carolina but nationwide.”
As part of the settlements, HDL and Singulex have agreed to enter into separate corporate integrity agreements with the Department of Health and Human Services’ Office of Inspector General (HHS-OIG). Those agreements provide for procedures and reviews to be put in place to avoid and promptly detect conduct similar to that which gave rise to these settlements.
“Today’s announcement that DOJ has settled in part and intervened in part in these whistleblower actions reflects the commitment by DOJ, our agency and our other law enforcement partners to ferret out alleged improper Medicare billings by health care companies that are looking to increase their profits at the expense of taxpayers,” said Special Agent in Charge Derrick L. Jackson of the HHS-OIG Atlanta Regional Office.
The lawsuits were filed by Dr. Michael Mayes, Scarlett Lutz, Kayla Webster, and Chris Reidel under the qui tam, or whistleblower, provisions of the False Claims Act. Under the act, private citizens can bring suit on behalf of the government for false claims and share in any recovery. The whistleblowers’ share of the settlements has yet to be determined. The act also permits the United States to intervene in and take over a whistleblower suit, as it has done in part in the three actions. The United States advised the court that it would be filing its own complaint against the corporate and individual defendants against whom it has intervened within 120 days.
Two of the lawsuits separately allege that the former CEO Phillipe Goix of Singulex and Quest Diagnostics Inc., parent of Berkeley, are liable for the scheme; the government declined to intervene in the allegations against Goix and Quest.
The government’s actions illustrate its emphasis on combating health care fraud and mark another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $23.9 billion through False Claims Act cases, with more than $15.2 billion of that amount recovered in cases involving fraud against federal health care programs.
These matters were investigated by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Offices of the District of Columbia, the District of South Carolina, and the Middle District of North Carolina, HHS-OIG, the FBI, the U.S. Office of Personnel Management’s Office of Inspector General, and the Department of Defense’s Office of Inspector General Defense Criminal Investigative Service.
The cases are captioned United States ex rel. Mayes v. Berkeley HeartLab Inc., et al., Case No. 9:11-CV-01593-RMG (D.S.C.); United States ex rel. Riedel v. Health Diagnostic Laboratory, Inc., et al., Case No. 1:11-CV-02308 (D.D.C.); and United States, et al. ex rel. Lutz, et al. v. Health Diagnostic Laboratory, Inc., et al., Case No. 9:14-CV-0230-RMG (D.S.C.). The claims settled by these agreements and asserted against these companies and individuals are allegations only, and there has been no determination of liability.
Two Cardiovascular Disease Testing Laboratories to Pay $48.5 Million to Settle Claims of Paying Kickbacks and Conducting Unnecessary TestingRead the Press Release
Contact Person: James Leventis (803) 929-3000
COLUMBIA, SOUTH CAROLINA – United States Attorney Bill Nettles announced today that Health Diagnostics Laboratory, Inc. (HDL), of Richmond, Virginia, has agreed to pay $47 million, and laboratory Singulex, Inc. of Alameda, California, has agreed to pay $1.5 million to resolve allegations that they violated the False Claims Act by paying remuneration to physicians in exchange for patient referrals and billing federal health care programs for medically unnecessary testing. The government has intervened in three False Claims Act lawsuits based on similar allegations by laboratory Berkeley HeartLab, Inc.; marketing company BlueWave Healthcare Consultants, Inc., and its owners, Floyd Calhoun Dent and J. Bradley Johnson; and former Chief Executive Officer of HDL, Latonya Mallory.
“This marks the culmination of a three year investigation into these corporations, and the individuals that benefited from this fraud can now expect to receive our full attention,” said U.S. Attorney Bill Nettles.
The United States alleged that laboratories HDL, Singulex, and Berkeley induced physicians to refer patients to them for blood tests by paying them process and handling fees of between $10 and $17 per referral and by routinely waiving patient co-pays and deductibles. The government also alleged that HDL and Singulex conspired with BlueWave to offer kickbacks to physicians on behalf of HDL and Singulex. As a result of those kickbacks, physicians referred patients to HDL, Singulex, and Berkeley for medically unnecessary tests. HDL, Singulex, and Berkeley then submitted claims to federal health care programs, including Medicare, for payment for the medically unnecessary tests. The Anti-Kickback Statute prohibits offering, paying, soliciting or receiving remuneration to induce referrals of items or services covered by federally funded programs. The Anti-Kickback Statute is intended to ensure that a physician’s medical judgment is not compromised by improper financial incentives and is instead based on the best interests of the patient.
The government actions announced today stem in large part from two whistleblower complaints filed in the District of South Carolina by Dr. Michael Mayes, Scarlett Lutz, and Kayla Webster under the qui tam provisions of the False Claims Act. Under that Act, private citizens can bring suit on behalf of the government for false claims and share in any recovery. The whistleblowers’ share of the settlements has yet to be determined. The Act also permits the United States to intervene in the lawsuits and take over the allegations, which were not the subject of the settlements announced today.
“The District of South Carolina has more than doubled its resources allocated to the pursuit of fraud brought to our attention by whistleblowers,” said U.S. Attorney Nettles. “Whistleblower actions are a critical tool for holding health care providers accountable for fraudulent and abusive practices not only in South Carolina but nationwide.”
As part of these settlements, HDL and Singulex have agreed to enter into separate corporate integrity agreements with the Department of Health and Human Services, Office of Inspector General (HHS-OIG). Those agreements provide for procedures and reviews to be put in place to avoid and promptly detect conduct similar to that which gave rise to these settlements.
Two of the lawsuits separately allege that the former Chief Executive Officer of Singulex, Phillipe Goix, and Quest Diagnostics, Inc., parent of Berkeley, are liable for the scheme; the government has declined to intervene in the allegations against Mr. Goix and Quest.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $23.8 billion through False Claims Act cases, with more than $15.2 billion of that amount recovered in cases involving fraud against federal health care programs.
These matters were investigated by the U.S. Attorney’s Office for the District of South Carolina, the U.S. Attorney’s Offices for the District of Columbia and the Middle District of North Carolina; the Commercial Litigation Branch of the Justice Department’s Civil Division; HHS-OIG; the FBI; the U.S. Office of Personnel Management Office of Inspector General and the Department of Defense Office of Inspector General, Defense Criminal Investigative Service.
The cases are captioned United States ex rel. Mayes v. Berkeley HeartLab Inc., et al., Case No. 9:11-CV-01593-RMG (D.S.C.); United States, et al. ex rel. Lutz, et al. v. Health Diagnostic Laboratory, Inc., et al., Case No. 9:14-CV-0230-RMG (D.S.C.); and United States ex rel. Riedel v. Health Diagnostic Laboratory, Inc., et al., Case No. 1:11-CV-02308 (D.D.C.). The claims settled by these agreements and asserted against these companies and individuals are allegations only, and there has been no determination of liability.
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Trussville Tax Preparer Sentenced to a Year in Custody for Tax FraudRead the Press Release
BIRMINGHAM -- A federal judge today sentenced a Trussville woman to six months in prison and six months home confinement for preparing fraudulent tax returns for herself and others in a Tarrant business she ran with her sister, announced U.S. Attorney Joyce White Vance and IRS, Criminal Investigation, Special Agent in Charge Veronica Hyman-Pillot.
U.S. District Judge Abdul K. Kallon sentenced LUGENIA L. "Gigi" CONNER, 32, on five counts of preparing fraudulent tax returns and one count of making a false return. Conner pleaded guilty to the charges in January. The judge ordered Conner to pay $56,908 in restitution to the IRS. She must report to prison June 12.
"Tax return preparers who concoct schemes to collect inflated refunds are stealing from the U.S. Treasury and cheating the millions of hard-working Americans who pay their due share of taxes each year," Vance said. "The U.S. Attorney's Office will continue to work with the IRS to prosecute tax fraud and protect the sanctity and integrity of the tax system."
“Refund fraud is an egregious offense that affects honest taxpayers. Lugenia Conner blatantly stole from the United States Treasury for personal gain,” Hyman-Pillot said. “As we embark upon the close of filing season, I hope this sentence sends a message that the Internal Revenue Service Criminal Investigation Division has a zero-tolerance policy for refund fraud. Anyone who chooses to play a role in this crime will be investigated and ultimately prosecuted,” she said.
A federal grand jury last year indicted Conner and her sister, KANESHIA L. "Kiki" CONNER-GOODGAME, 35, of Birmingham, on charges that they worked together in their Taxes 'N More business to prepare fraudulent tax returns for the 2008 tax year, often falsely claiming a credit for first-time homebuyers.
Conner-Goodgame pleaded guilty in January to two counts of preparing fraudulent tax returns and one count of making a false return. She is scheduled for sentencing May 27.
Both sisters acknowledged in plea agreements with the government that they owned and operated Taxes 'N More and worked there as tax preparers, inflating refunds for their clients in 2009 by falsifying information submitted on clients' 2008 returns. The sisters claimed the First Time Home Buyer's Credit of up to $7,900 on returns they prepared for other taxpayers, knowing those taxpayers were not entitled to the credit. The women also prepared third-party tax returns claiming itemized deductions or business expenses that clients neither had provided information for, nor were entitled to receive. Both women also assisted taxpayers with the illegal practice of buying and selling dependents.
Conner and Conner-Goodgame also created and submitted 2008 personal tax returns on which they claimed the homebuyers' credit, knowing they were not entitled to that deduction.
IRS Criminal Investigation investigated the case, which Assistant U.S. Attorneys Amanda Wick and Robin Beardsley Mark are prosecuting.
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Three Alabama Men Sentenced for Participation in Stolen Identity Refund Fraud SchemeRead the Press Release
Three Montgomery, Alabama, men were sentenced to prison today in the U.S. District Court for the Middle District of Alabama for their participation in a stolen identity refund fraud (SIRF) tax scheme, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney George L. Beck Jr. of the Middle District of Alabama.
Cruz Castillo Burnett, 28, Jacorey Giddens, 27, and Rodrickus Howard, 24, were each sentenced to serve 40 months in prison and three years of supervised release. Burnett was ordered to pay restitution in the amount of $209,041, Giddens was ordered to pay restitution in the amount of $151,260 and Howard was ordered to pay restitution in the amount of $220,136. Each defendant previously pleaded guilty to one count of conspiracy to defraud the government and one count of aggravated identity theft.
According to plea documents, Burnett, Giddens and Howard conspired to acquire the names, social security numbers and dates of birth of individuals without their knowledge or consent. The indictment alleged that from March 2011 to April 2013, the defendants used these stolen identities to file more than 500 false federal income tax returns that claimed refunds from the Internal Revenue Service (IRS). As part of the scheme, the defendants requested more than $1 million in refunds from the IRS. The defendants received the refunds in various forms, including U.S. Treasury checks, direct deposits to bank accounts and direct deposits onto prepaid debit cards in the names of identity theft victims.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Beck Jr. commended special agents of IRS-Criminal Investigation, who investigated the case, and Trial Attorneys Gregory P. Bailey and Michael C. Boteler of the Tax Division and Assistant U.S. Attorney Todd Brown of the Middle District of Alabama, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Tahlequah Woman Sentenced to 12 Months for RacketeeringRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that ELIZABETH PORTUGAL, age 28, of Tahlequah, Oklahoma, was sentenced to12 months imprisonment and 3 years supervised release for Interstate Travel or Transportation in Aid of Racketeering Enterprises, in violation of Title 18, United States Code, Section 1952(a)(3).
The charge is a result of an investigation by the Oklahoma Bureau of Narcotics and was coordinated by the Organized Crime Drug Enforcement Task Force (OCDETF) of the Eastern District of Oklahoma. OCDETF is an initiative led, and coordinated by, the Office of the United States Attorney. The defendant was indicted in July, 2014 and pled guilty in October, 2014.
The Honorable James H. Payne, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in the custody of the United States Marshal Service pending transportation to the designated federal prison at which she will serve her nonparolable sentence.
Assistant United States Attorney Shannon Henson represented the United States.
Sprint Communications, Inc. Agrees to Pay $15.5 Million to Resolve Allegations of Overcharging Law Enforcement Agencies for Court-Ordered WiretapsRead the Press Release
SAN FRANCISCO – Sprint Communications, Inc., formerly Sprint Nextel Corporation, has agreed to pay the government $15.5 million to resolve allegations it defrauded federal law enforcement agencies when recovering its costs of carrying out court-ordered wiretaps, pen registers, and trap devices, announced United States Attorney Melinda Haag and the U.S. Department of Justice Office of Inspector General (“OIG”), Special Agent in Charge M. Elise Chawaga.
A joint investigation by the U.S. Attorney’s Office and the OIG revealed that from 2007 to 2010, Sprint improperly included in its intercept charges the costs of making certain upgrades to its system. Like other telecommunications carriers, Sprint is authorized by statute to bill law enforcement agencies for the reasonable expenses it incurs in providing facilities or assistance to accomplish a court-ordered wiretap, pen register, or trap device. In 1994, Congress passed the Communications Assistance in Law Enforcement Act (“CALEA”), which required telecommunications carriers to upgrade their equipment, facilities, or services to ensure they were capable of enabling the government, pursuant to a court order, to intercept and deliver communications and call-identifying information. In 2006, the Federal Communications Commission ruled that carriers were prohibited from passing on the costs of their CALEA upgrades to law enforcement agencies in their intercept bills. The investigation by OIG and the U.S. Attorney’s Office revealed that from 2007 to 2010, in violation of the FCC’s ruling, Sprint nevertheless included in its intercept charges the hidden costs of financing its CALEA upgrades. In the settlement agreement, Sprint agreed to pay $15.5 million to resolve the allegations in the complaint but did not admit to any wrongdoing or liability.
Assistant U.S. Attorneys Steven J. Saltiel and Kimberly Friday handled the matter on behalf of the U.S. Attorney’s Office. The settlement with Sprint Communications, Inc. was the result of a coordinated effort by the United States Attorney’s Office, and the OIG.
Sentencings for April 3 - April 8, 2015Read the Press Release
Preston Umbach, 35, of Gillette, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on April 8, 2015, for conspiracy to distribute 50 grams or more of methamphetamine, and heroin. He received 109 months imprisonment, concurrent to a previous state sentence, and was ordered to pay a $400.00 fine and a $100.00 special assessment. After serving his term of imprisonment, Umbach will be placed on supervised release for five years. This case results from an ongoing Organized Crime Drug Enforcement Task Forces (OCDETF) joint investigation conducted by the U.S. Drug Enforcement Administration and the Wyoming Division of Criminal Investigation. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
Kent Satake, 40, of Laramie, Wyoming, was sentenced by Chief United States Magistrate Judge Kelly H. Rankin on April 6, 2015, for theft of public money involving Satake submitting time sheets to his employer, Developmental Preschool & Day Care Center, that resulted in billings to and payments by Wyoming Medicaid for services that were not provided. He received one year unsupervised release, was ordered to pay restitution in the amount of $2,864.61, and a $25.00 special assessment. This case was investigated by the Medicaid Fraud Control Unit.
Anthony McEntee, 19, of Cheyenne, Wyoming, was sentenced by Chief United States Magistrate Judge Kelly H. Rankin on April 6, 2015, for destruction of mail. McEntee received one year of supervised release, was ordered to pay restitution in the amount of $210.00, a $100 fine, and a $100.00 special assessment. This case was investigated by the United States Postal Inspection Service, and the Veteran Administration Office of Inspector General.
Jeremiah Grove, 26, of Billings, Montana, was sentenced by Federal District Court Judge Alan B. Johnson on April 3, 2015, for conspiracy to distribute 50 grams or more of methamphetamine. Grove was arrested in Gillette, Wyoming. He received 120 months imprisonment, to be followed by five years of supervised release and was ordered to pay a $250.00 fine and a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation.
Santa Fe Man Sentenced to Forty-Six Months in Federal Prison for Oxycodone Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Phillip Anaya, 38, of Santa Fe, N.M., was sentenced today in federal court in Santa Fe, N.M., to 46 months in federal prison followed by three years of supervised release for his Oxycodone trafficking conviction. Anaya is one of five Santa Fe residents charged in Sept. 2013, with participating in an Oxycodone trafficking ring in a 16-count indictment.
Anaya and his co-defendants, Ashraf Nassar, 31, Daniel Trujillo, 32, Krystal Holmes, 28, and Sarah Romero, 35, were arrested as part of a multi-agency law enforcement operation that included the execution of search warrants at three residences and a business in Santa Fe. The investigation, “Operation High Desert Bash,” was initiated in Jan. 2013 by the DEA’s Tactical Diversion Squad in Albuquerque, N.M., the Santa Fe Police Department and HIDTA Region III Narcotics Task Force in response to the epidemic increase in prescription drug abuse, addiction and overdose deaths in New Mexico, particularly among teens and young adults.
Operation Desert Bash investigation was designated as part of the Organized Crime Drug Enforcement Task Force (“OCDETF”) program, a nationwide Department of Justice program that combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations. The investigation primarily targeted a drug trafficking organization unlawfully distributing quantities of Oxycodone in Santa Fe County. Oxycodone is an opioid narcotic pain reliever similar to morphine that is medically prescribed to treat moderate to severe pain and can be habit-forming. Officers seized approximately 7300 mg of Oxycodone during the investigation.
Count 1 of the 16-count indictment charged the five defendants with conspiracy to distribute Oxycodone in Santa Fe County between Dec. 2012 and Sept. 2013. Counts 2 through 4 of the indictment charged Nassar, Anaya and Holmes with substantive Oxycodone distribution offenses, and all five defendants were charged with using telephones to facilitate drug trafficking crimes in Counts 5 through 16.
Anaya pled guilty on Nov. 19, 2014, to Count 1 of the superseding indictment. Anaya admitted that from Dec. 8, 2012 through Sept. 26, 2013, in Santa Fe, N.M., he would frequently receive Oxycodone from Nassar which Anaya would then redistribute.
Two of Anaya’s co-defendants also have been sentenced after entering guilty pleas to charges in this case. Trujillo pled guilty on Jan. 30, 2015, and Romero pled guilty on Oct. 28, 2014; each admitted participating in the Oxycodone trafficking conspiracy charged in the indictment. Trujillo was sentenced on April 2, 2015, to 18 months in prison followed by three years of supervised release. Romero was sentenced on March 26, 2015, to 18 months in federal prison followed by three years of supervised release.
Nassar and Holmes have entered pleas of not guilty and are awaiting trial. Charges in indictments are only accusations. All criminal defendants are presumed innocent unless proven guilty beyond a reasonable doubt.
This case was investigated by the Tactical Diversion Squad of the DEA’s Albuquerque office, the Santa Fe Police Department and the HIDTA Region III Drug Enforcement Task Force, and is being prosecuted by Assistant U.S. Attorneys Shammara H. Henderson and Joel R. Meyers.
DEA’s Tactical Diversion Squads combine DEA resources with those of federal, state and local law enforcement agencies in an innovative effort to investigate, disrupt and dismantle those suspected of violating the Controlled Substances Act or other appropriate federal, state or local statutes pertaining to the diversion of licit pharmaceutical controlled substances or listed chemicals.
The HIDTA Region III Drug Enforcement Task Force is comprised of officers from the New Mexico State Police, Santa Fe Police Department and Santa Fe County Sheriff’s Office. It is part of the High Intensity Drug Trafficking Areas (HIDTA) program which was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
This case is being prosecuted pursuant to the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative is a collaborative effort between the U.S. Attorney’s Office and the University of New Mexico Health Sciences Center that is partnering with the Bernalillo County Opioid Accountability Initiative with the overriding goal of reducing the number of opioid-related deaths in the District of New Mexico. The HOPE Initiative comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. The law enforcement component of the HOPE Initiative is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative.
Sandersville Drug Dealer ConvictedRead the Press Release
On April 8, 2015, a jury in U.S. District Court in Macon, Georgia convicted Antonio Donyal Tarver, age 39, from Sandersville, Georgia, of one count possession with intent to distribute more than 28 grams of cocaine base (“crack”) and one count possession with intent to distribute cocaine.
The Government’s evidence at trial proved that on July 3, 2013, a Georgia State Patrol Trooper attempted to stop Mr. Tarver on Highway 24 in Eatonton, Georgia for speeding. Instead of pulling over, Mr. Tarver led the Trooper on a chase. Mr. Tarver eventually ran a red light and gained some distance on the Trooper. Mr. Tarver then made an abrupt turn into the industrial area of Horton Components where he turned behind a van trailer and abandoned his vehicle. When the Trooper turned the corner by the van trailer, he saw Mr. Tarver’s abandoned vehicle continue forward and crash into a pole. The Trooper was able to locate Mr. Tarver following a foot chase.
A few hours later, an employee at Horton Components contacted the Putnam County Sheriff’s Office about a shopping bag he observed on the roof of the van trailer where Mr. Tarver had abandoned his vehicle. The Putnam County Sheriff’s Office arrived and retrieved the bag, finding what was later confirmed to be 143.33 grams of cocaine base (“crack”) and 292.98 grams of cocaine. The bags that the cocaine was packaged in were processed by the GBI for latent prints and a GBI latent print examiner confirmed that Mr. Tarver’s left ring finger and right thumb print were present on two of the bags.
A sentencing date has not yet been set. At sentencing, Mr. Tarver faces a mandatory minimum sentence of ten years up to a possibility of life imprisonment.
“Not only did Mr. Tarver put the Trooper and the public in danger when he fled from the law, he jeopardized the well-being of the people of Middle Georgia by possessing cocaine with the intention to distribute it. His drug activities have now landed him in prison. I want to especially thank the GBI for its work on the fingerprint analysis in this case. Some people mistakenly think that fingerprints can’t be recovered from a plastic bag. They obviously don’t know the quality of the investigative work done by the Georgia Bureau of Investigation,” said U.S. Attorney Michael Moore.
This case was investigated by the Georgia State Patrol, the Georgia Bureau of Investigations, the Putnam County Sheriff’s Office, and the Eatonton Police Department. The case was prosecuted but Assistant United States Attorneys Beth Howard and Charles Calhoun.
Inquiries regarding the case should be directed to Pamela Lightsey, United States Attorney’s Office at 478-621-2603.
Salvadorian National Charged with Illegal ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that LUIS ADALBERTO MORADIAGA, age 44, a citizen of El Salvador, was charged today in a one-count Indictment with illegal reentry of a removed alien.
According to the indictment, MORADIAGA reentered the United States after having been previously deported on August 25, 2000. If convicted, MORADIAGA faces a maximum term of imprisonment of two years, a maximum fine of $250,000, a maximum term of supervised release of one year, and a mandatory $100 special assessment.
U. S. Attorney Polite reiterated that an Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the United States Immigration and Customs Enforcement Agency in investigating this matter. Assistant U. S. Attorney Spiro G. Latsis is in charge of the prosecution.
Luis Adalberto Moradiaga Indictment
Rockville Man Admits to Trafficking over 400 Kilograms of Marijuana and Laundering over $2.5 Million of Drug ProceedsRead the Press Release
Baltimore, Maryland – Issa Haddad, age 24, of Rockville, Maryland pleaded guilty today to conspiring to distribute and possess with intent to distribute 100 kilograms or more of marijuana, and conspiring to commit money laundering.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Chief J. Thomas Manger of the Montgomery County Police Department.
According to his plea agreement, from March 2010 to April 10, 2014, Haddad provided addresses in Montgomery County, Maryland and elsewhere to which co-conspirators in California would ship marijuana. Haddad and others received packages of marijuana in Maryland, and Haddad was responsible pursuant to the conspiracy for sending, receiving, and preparing for distribution between 400 and 700 kilograms of marijuana in Maryland.
Members of the conspiracy provided Haddad with bank account numbers into which the proceeds from the sale of the marijuana were deposited. Haddad and others deposited cash in amounts less than $10,000 into the provided banks accounts which were controlled by co-conspirators. These deposits of less than $10,000 were structured to evade IRS reporting requirements and conceal from the government large cash transactions by narcotics dealers.
Haddad admitted that his role in the conspiracy involved the laundering of between $2.5 million and $7 million of drug proceeds.
Haddad has agreed to forfeit at least $2.5 million.
To date, seven defendants have pleaded guilty to their participation in the drug and/or money laundering conspiracies, and await sentencing: Bianca Rosales, age 26, of New York, New York, pleaded guilty on July 7, 2014; Raymond Dixon, age 27, of San Francisco, California, pleaded guilty on July 25, 2014; Alnisha Hooks, age 23, of Los Angeles, California, pleaded guilty on August 5, 2014; David Fahrali-Simonson, age 24, of San Francisco, pleaded guilty on February 20, 2015; Ramon Rodriguez-Cruz, age 28, of Silver Spring, Maryland, pleaded guilty on February 23, 2015; and Sebastian St. John, age 23, of Silver Spring, Maryland, pleaded guilty on March 26, 2015.
Haddad faces a maximum sentence of 40 years in prison for the drug conspiracy and 20 years in prison for the money laundering conspiracy. U.S. District Judge J. Frederick Motz has scheduled sentencing for June 25, 2015 at 11:00 a.m.
United States Attorney Rod J. Rosenstein commended HSI Baltimore and Montgomery County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Kelly O. Hayes and Mara Zusman Greenberg, who are prosecuting the case.
Postal Worker Convicted in Massive Stolen Identity Tax Refund Fraud SchemeRead the Press Release
HOUSTON – The final person has been convicted in an eight-defendant conspiracy in which fraudulent tax returns were filed using identification information that was stolen and used without lawful authority, announced U.S. Attorney Kenneth Magidson. Edward Dwayne Vallier, 42, of Houston, entered his guilty plea to wire fraud and conspiracy to commit mail fraud this morning.
According to court records, Vallier was a U.S. Postal Service carrier in Houston that was recruited by co-conspirator Jalan Willingham, 35, of Houston, in October 2012, in order to aid and abet the conspirators in carrying out their scheme. Vallier was to provide fictitious addresses on his postal route where the false returns would be mailed. The tax refunds generated by the fraudulent returns were often deposited onto reloadable debit cards and mailed to addresses under Vallier’s control. He would then retrieve the debit cards with the fraudulent returns on them from his route and turn it over to the co-conspirators.
From 2010 through 2013, the co-conspirators used the stolen personal identifying information to file thousands of fraudulent tax returns claiming more than $12 million in refunds. According to IRS records, the National Treasury paid out more than over $6 million before the scheme was discovered.
Willingham previously pleaded guilty for his role in the scheme as did Travis White, 32, also of Houston; Kerry Lionel Ruffin, 32, Calvin Shelton, 39, and Shawn Phillip Thornton, 37, all of Atlanta, Ga.; and Tangela R Jackson-Lezeau, 36, of Port Saint Lucie, Fla. The case against the eighth defendant - Dwayne Biggs, 29, of Atlanta, Ga. - was transferred to another jurisdiction for final adjudication.
The matter was investigated by the U.S. Postal Inspection Service and Internal Revenue Service - Criminal Investigation. Assistant U.S. Attorney Suzanne Elmilady is prosecuting the case
United States District Judge Keith P. Ellison, who accepted the plea today, has set sentencing for July 1, 2015. At that time, Vallier faces up to 20 years in federal prison and a maximum $250,000 fine. The remaining defendants will also be sentenced on that date.Philadelphia Man Sentenced for Sex Trafficking ConspiracyRead the Press Release
PHILADELPHIA - Adrian Palmer, 49, of Philadelphia, PA, was sentenced today to 80 months in prison for conspiring in the sex trafficking of girls under the age of 18. Palmer pleaded guilty on October 18, 2013 to one count of conspiracy, one count of sex trafficking of minors, and one count of attempted sex trafficking of a minor. In addition to the prison term, U.S. District Court Judge C. Darnell Jones, II, ordered Palmer to pay restitution of $1,400, a $300 special assessment, and to complete five years of supervised release. Palmer will also be required to register as a sex offender upon his release.
Between June 1, 2012 and June 14, 2012, Palmer, who worked as a security guard at a Days Inn motel on Roosevelt Boulevard in Philadelphia, provided protection and assistance to sex traffickers operating at the motel in exchange for a daily fee. Craig Johnson, the operator of the sex trafficking venture, recruited female juveniles to work as prostitutes. Johnson paid Palmer between $60 and $100 a day in exchange for advice about Johnson’s sex trafficking organization, including Johnson’s Backpage.com advertisements. Palmer also provided protection for Johnson so that law enforcement authorities would not be alerted to the sex trafficking operation. In August 2013, Palmer accepted $100 from a confidential witness in exchange for protecting him from law enforcement so he could engage in the sex trafficking of a (fictitious) 16-year-old minor.
The case was investigated by the Federal Bureau of Investigation with assistance from the First Judicial Court Warrant Unit. It was prosecuted by Assistant United States Attorney Michelle L. Morgan.
Pennsylvania Priest Indicted for Traveling to Honduras and Sexually Abusing Minor BoysRead the Press Release
WASHINGTON- On April 7, 2015, Joseph D. Maurizio, Jr., a resident of Central City, Pennsylvania, was indicted in a superseding indictment by a federal grand jury in Johnstown, Pennsylvania on charges of engaging in illicit sexual conduct in foreign places and on international money laundering offenses, Assistant Attorney General Leslie R. Caldwell of the Justice Department's Criminal Division and U.S. Attorney David J. Hickton announced today. The investigation was conducted by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and Internal Revenue Service's (IRS) Criminal Investigation, Pittsburgh
Joseph D. Maurizio, Jr., 69, a priest of the Diocese of Altoona-Johnstown, was originally indicted on October 7, 2014 on charges relating to his 2009 travel to Honduras and illicit sexual conduct with a minor boy. Maurizio was also charged with the possession of child pornography.
According to the superseding indictment, Maurizio made yearly trips to Honduras between 2004 and 2009, and engaged in the sexual exploitation of two additional minor boys. Prior to three of his trips to Honduras, Maurizio transferred funds totaling $8,000 from accounts located in the Western District of Pennsylvania to accounts and individuals located in Honduras, with the intent to promote the carrying on of his illicit sexual conduct with minor victims who were living at an organization that provided services to orphaned and abandoned children.
The case is being prosecuted by Criminal Division Trial Attorney Amy E. Larson of the Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Stephanie Haines of the US Attorney's Office in the Western District of Pennsylvania
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys' offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Orange, Texas Man Sentenced for Attempted Enticement of a ChildRead the Press Release
BEAUMONT, Texas – A 44-year-old Orange, Texas man has been sentenced to federal prison for child exploitation violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Joseph Lloyd White pleaded guilty on Dec. 4, 2014, to attempted sexual enticement of a child and was sentenced to 120 months in federal prison today by U.S. District Judge Ron Clark.
According to information presented in court, on May 28, 2014, law enforcement officers were alerted by a parent of possible child exploitation after discovering sexually explicit photos on their 9-year-old child’s cellular phone. A forensic analysis of the phone and investigation revealed White had met the child using an online messenger site, and even after learning the child was a minor, had continued to send sexually explicit photos of himself to the child and persuaded the child to send photos containing nudity to him. A detective, pretending to be the child, began communicating with White and verified White knew the child was only nine years old. On June 6, 2014, White traveled to an apartment complex in Beaumont where he was arrested. White admitted that he had come to the apartment complex for the purpose of having sex with the 9-year-old child. White was indicted by a federal grand jury on Aug. 6, 2014.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the Homeland Security Investigations (HSI) and the Beaumont Police Department and prosecuted by Assistant U.S. Attorney Randall L. Fluke.
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Okeechobee Man Sentenced for Preparing False Tax ReturnsRead the Press Release
An Okeechobee man was sentenced to 24 months in prison, followed by one year of supervised release, and was ordered to pay $238,734.00 in restitution, by United States District Judge Robin L. Rosenberg, for his participation in a tax fraud scheme.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.
Wyman Pittman, 47, of Okeechobee, previously pled guilty to aiding in the preparation and presentation of false tax returns.
According to court documents, Pittman was a paid tax preparer who, together with his former partner Ventrell Bouie, of Fort Pierce, Florida, operated a tax preparation service business, First Premium Financial Services (FPFS), in Okeechobee, Florida. From 2008 through 2012, Pittman prepared individual income tax returns. Pittman assisted in the preparation of multiple, fraudulent tax returns by supplying false income and deduction figures, failing to review them in detail with the taxpayers, and then electronically filing them for the taxpayers.
Specifically, Pittman filed a Form 1040 income tax return for the 2008 tax filing year that falsely itemized a taxpayers’ deductions for, among other things, medical and work expenses. As a result, the taxpayer received an inflated and unmerited tax refund payment. Pittman knew that the taxpayer had not claimed, or provided to Pittman, the information regarding those deductions for inclusion in the tax return.
Maria Garcia began working in 2008 for FPFS and was trained and supervised by Pittman and Bouie. Garcia, as a paid tax preparer, prepared false returns for customers based on false Schedules A and C, false education credits, and false child and dependent care credits. Additionally, Garcia filed three false returns for herself for tax years 2008, 2009, and 2010.
Garcia learned the tax preparation business, while working under Bouie and Pittman. Pittman taught Garcia how to fraudulently inflate deductions and refunds on client taxpayer returns. Using that knowledge, Garcia started her own tax preparation business where she too prepared false returns.
Bouie was charged separately and pled guilty to aiding in the preparation and presentation of false tax returns, in Case No. 13- 14025-CR-Martinez. Bouie was sentenced to 24 months in prison.
Garcia was also charged separately and pled guilty to aiding in the preparation and presentation of false tax returns, in Case No. 13- 14026-CR-Graham. Garcia was sentenced to 18 months in prison.
Mr. Ferrer commended the investigative efforts of IRS-CI. The case was prosecuted by Assistant U.S. Attorney Theodore M. Cooperstein.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Novato Woman Charged with Filing False Tax ReturnsRead the Press Release
SAN FRANCISCO – A federal grand jury indicted Marina Zuk with three counts of filing false tax returns, announced United States Attorney Melinda Haag and Internal Revenue Service, Criminal Investigation, Special Agent in Charge José M. Martinez.
According to the indictment, from 2008 to 2010, Zuk, of Novato, California, owned and operated a landscaping and yard maintenance business named Growing Works. She also was the sole signatory on a bank account in her deceased grandmother’s name after the death of her grandmother in 2006. Zuk underreported the gross receipts from Growing Works and interest income from the bank account in her grandmother’s name on her 2008, 2009, and 2010 individual federal income tax returns (Forms 1040). Specifically, Zuk reported that Growing Works received gross receipts of $166,808 for 2008; $146,279 for 2009; and $105,618 for 2010. During these years, Zuk also did not report any interest income for the bank account in her grandmother’s name. According to the indictment, Zuk knew when she submitted the tax returns that the company received gross receipts in addition to the amounts stated and that the bank account earned interest income during that period.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendant faces a maximum sentence of three years in prison and a fine of $250,000 or twice the gain or loss resulting from each count of filing false tax returns in violation of 26 U.S.C. § 7206(1). However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney José A. Olivera is prosecuting the case. The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigation.
North Platte Woman Sentenced for Production of Child PornographyRead the Press Release
United States Attorney Deborah R. Gilg announced that Julie R. Thiemann, 34, formerly of North Platte, Nebraska, was sentenced today in Lincoln, Nebraska, to 23 years in prison by Senior United States District Judge Richard G. Kopf, for producing child pornography. After her release from prison Thiemann will serve an additional 25 years under supervised release, and be required to register as a sex offender for the remainder of her life.
In November of 2013, one of the child victims in this case, (there were three), revealed to a therapist that he believed another child had been sexually assaulted by Thiemann's live-in boyfriend, Billy Schrader. The information was reported to the North Platte Police Department and a search warrant was obtained for Schrader's residence. At the time the search was performed, law enforcement officers seized computer equipment and other items. Thiemann and Schrader were also interviewed at that time and both were subsequently arrested and lodged in jail. After a forensic examination of the equipment seized during the search warrant, over 75,000 images of child pornography produced by Thiemann and Schrader were identified.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the North Platte Police Department and the Lincoln County Sheriff's Office and prosecuted jointly with the Nebraska Attorney General's Office.
New London Man Sentenced to 30 Months in Prison for Distributing CocaineRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that EDGARDO CENTENO, 43, of New London, was sentenced yesterday by U.S. District Judge Vanessa L. Bryant in Hartford to 30 months of imprisonment, followed by three years of supervised release, for distributing cocaine.
According to court documents and statements made in court, in early 2012, Homeland Security Investigations (“HSI”), the U.S. Secret Service and the New London Police Department initiated an investigation to combat the large-scale trafficking of heroin and cocaine from the Dominican Republic and Puerto Rico into and around southeastern Connecticut. The investigation revealed that certain members of the conspiracy coordinated the shipment of heroin, and sometimes cocaine, via human couriers from the Dominican Republic to the United States. Other members of the conspiracy obtained kilogram-quantities of cocaine in Puerto Rico and then mailed the drug to locations in and around New London where it was sold to distributors and customers. Narcotics also were obtained from sources in New York City and Rhode Island.
CENTENO regularly purchased cocaine from Juan G. Cheverez, also known as “Guinchi,” who had received the drug from individuals in Puerto Rico via the U.S. Mail. CENTENO then sold cocaine in smaller quantities to his own customers.
On August 20, 2014, CENTENO pleaded guilty to one count of conspiracy to possess with the intent to distribute cocaine.
On February 18, 2015, Cheverez was sentenced to 77 months of imprisonment.
This matter was investigated by Homeland Security Investigations; U.S. Secret Service; U.S. Postal Inspection Service; Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Customs and Border Protection, Office of Air and Marine; Connecticut State Police; New London Police Department, Norwich Police Department, Waterford Police Department, Groton Town Police Department, East Lyme Police Department and Putnam Police Department. The United States Marshals Service; ICE Enforcement and Removal Operations; Drug Enforcement Administration; HSI Assistant Attaché, Santo Domingo, Dominican Republic; HSI Arecibo, Puerto Rico Resident Office; Internal Revenue Service – Criminal Investigation; Connecticut Department of Correction, Parole and Community Services; and the Groton City, Willimantic, New Haven and Bristol Police Departments have provided valuable assistance to the investigation.
The federal case is being prosecuted by Assistant U.S. Attorneys Sarah P. Karwan, Alina P. Reynolds and Henry K. Kopel. The state cases are being prosecuted by the State’s Attorney for the New London Judicial District and Senior Assistant State’s Attorneys Paul Narducci and Stephen Carney.
New Jersey Man Sentenced to 28 Years for Child ExploitationRead the Press Release
PHILADELPHIA - Christopher Steibing, 34, of Ewing, New Jersey, was sentenced today to 28 years in prison for coercion and enticement of a minor to engage in sexual conduct. Between September 2009 and August 2012, the defendant used the Internet to persuade, induce, entice and coerce a child to engage in illegal sexual activity. In addition to the prison term, U.S. District Court Judge Harvey Bartle, III, ordered 20 years of supervised release, and a $100 special assessment. The defendant must also register under the Sex Offender Registration and Notification Act and shall be subject to any applicable state sex offender registration requirements.
When she was approximately 13 years old, the victim began receiving messages on AOL from a user claiming to be a 15 year old girl named “Amanda” who would be moving near the victim. The victim had numerous online conversations which “Amanda,” in which “Amanda” repeatedly brought up the topic of sexual intercourse, pressed the victim for information about her sexual history, and claimed to have dated the defendant. “Amanda” also introduced the victim to “Cory,” whom “Amanda” claimed was a 14 year-old male friend whom the victim should talk to. In truth, “Amanda” and “Cory” were actually the defendant, who was using the AOL screen names “AMANDAFOX93” and “NEWJERSEYSTONER” for these fictional personas. Eventually, the victim believed that she was dating “Cory” in an online relationship. The defendant sent the victim several images that purported to be pictures of “Cory’s” naked body and asked the victim to send him nude pictures of her. The victim ultimately agreed, taking photographs of herself in poses suggested by the defendant, including images of child pornography.
Ultimately, the defendant threatened to send nude photographs of the victim to others, including her family, if she did not send him more images. The defendant then made good on this threat and sent degrading and humiliating images of the victim to her family. After the victim decided to stop communicating with “Cory,” she received contacts from other AOL screen names whose language resembled “Cory’s.” In fact, the defendant was the one sending these messages as well. The defendant stored some of his images of the victim on a laptop computer, which, in March 2012, he kept at a girlfriend’s home in Bucks County. He later transported the laptop to his mother’s house in Ewing, New Jersey where, on May 1, 2012, police executed a search warrant and seized the laptop, along with an iPod Touch, which collectively contained hundreds of image files depicting the victim. During their searches, the police and FBI also discovered that the defendant had kept and distributed numerous images of child pornography in which the face of his own daughter, who was no older than 11 years old at the time, had been digitally “morphed” onto the bodies of other minors engaged in sexually explicit conduct.
The case was investigated by the Falls Township Police Department, the Ewing, New Jersey Police Department, Bucks County District Attorney’s Office, and the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Joe Khan.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Nash County Farmer Sentenced in Federal Crop Insurance Fraud SchemeRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that in federal court on April 6, 2015 CLAY TAYLOR STRICKLAND, 74, of Spring Hope, North Carolina, was sentenced by Chief United State District Judge James C. Dever III, to 6 months imprisonment to be followed by 3 years of supervised release. STRICKLAND was ordered to make restitution in the amount of $233,559 to the United States Department of Agriculture Risk Management Agency and $64,856 to the United States Department of Agriculture Farm Service Agency. STRICKLAND was also fined $10,000. STRICKLAND previously pled guilty to conspiring to make false statements, to make material false statements, to commit mail fraud and wire fraud, and to structuring transactions all in violation of Title 18, United States Code, Section 371 and aiding and abetting the making of false statement in connection with the Federal Crop Insurance Program, in violation of Title 18, United States Code, Section 1014.
Mr. Walker stated, “As a farmer, STRICKLAND understood the importance of the federal crop insurance program as a safety net to the community in times of disaster and yet, he stole from that same program. The sentence imposed today reflects the seriousness of his offense and should serve as a deterrent for others.”
The Criminal Information, filed on October 2, 2014, alleges that STRICKLAND was engaged in the business of farming, doing business as Clay T Strickland Farms, Inc. The Information goes on to allege that STRICKLAND filed a false crop insurance claim in that he hid tobacco production from USDA by selling tobacco for cash to a tobacco warehouseman who then sold the tobacco in nominee names. STRICKLAND profited under the scheme because he was paid twice for each pound of tobacco; once through the false crop insurance claim and also from the sale of the “hidden” tobacco for cash. To conceal the conspiracy, STRICKLAND made false statements to law enforcement officers during the investigation.
Investigation of this case was conducted by the United States Department of Agriculture - Office of Inspector General, Investigations; the United States Department of Agriculture - Risk Management Agency, Special Investigations Branch, and the Internal Revenue Service – Criminal Investigations. Assistant United States Attorney Banumathi Rangarajan served as prosecutor for the government.
Nanci Mae Dusso Pleads Guilty to Using Stolen Identities to Obtain Prescription OpiatesRead the Press Release
United States Attorney Andrew M. Luger today announced the conviction of NANCI MAE DUSSO, 50, who obtained Hydrocodone, Oxycodone, and other prescription drugs by using false names, dates of birth, and social security numbers. DUSSO pleaded guilty to obtaining a controlled substance by fraud and social security fraud. She entered her plea today before Judge Donovan W. Frank in United States District Court in St. Paul, Minn.
“Prescription drug abuse is both a crime and a serious health problem in Minnesota,” said U.S. Attorney Luger. “This defendant deceived doctors and nurses in multiple states in order to obtain these powerful opioids. Working closely with our law enforcement colleagues and health care organizations throughout the region, we are dedicated to preventing the kind of prescription drug diversion seen in this case.”
According to the defendant’s guilty plea and documents filed in court, between January 2013 and November 2013, DUSSO used at least 31 aliases to obtain or attempt to obtain prescription opiates from health care providers at Mayo Clinic satellite locations in Minnesota and Wisconsin. She commonly used out-of-state identities when visiting health care providers, often employed a story in which she complained of shoulder pain, and indicated that she was visiting a family member suffering from cancer. If DUSSO successfully convinced a health care provider to prescribe medication, a physical therapy or pain management appointment would also be arranged for her. However, the defendant did not attend these appointments.
According to DUSSO’s guilty plea and documents filed in court, DUSSO may have obtained more than 6,000 prescription opiates since as early as 2008, and visited more than 150 doctors in at least 11 different health care providers’ offices in Minnesota and Wisconsin. When defrauding these health care providers, DUSSO used stolen social security numbers of people both living and deceased and from numerous states. At different health care appointments, DUSSO listed her address as from Colorado, Utah, Oregon, and Kentucky.
According to the defendant’s guilty plea and documents filed in state court, a nurse practitioner at one Mayo Clinic satellite location became suspicious of DUSSO and reported her to Mayo Security. Mayo Clinic sent a system-wide notice to all employees alerting them of the alleged criminal activity. At least two Mayo Clinic satellite locations subsequently reported DUSSO for attempting to obtain prescription pain pills.
This case is the result of an investigation conducted by the Rochester Police Department, Minnesota Bureau of Criminal Apprehension, Drug Enforcement Administration, and Social Security Administration.
U.S. Attorney Luger thanked the Mayo Clinic, Olmsted Medical Center, Allina Health, HealthEast Care, and Park Nicollet for their assistance in the investigation.
Assistant U.S. Attorney Richard A. Newberry is prosecuting the case.
Defendant Information: NANCI MAE DUSSO, 50
Eyota, Minn.
Convicted:
• Obtaining a controlled substance by fraud, 1 count
• Social Security fraud, 1 countMuskogee Man Pleads Guilty to Firearm PossessionRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that JORDAN WAYNE PARKS, age 24, of Muskogee, Oklahoma, pled guilty to Felon in Possession of a Firearm, in violation of Title 18, United States Code, Section 922(g)(1).
Charges arose from an investigation by the Muskogee Police Department and the Federal Bureau of Investigation. The defendant was indicted in March, 2015.
The Indictment alleged that on or about June 17, 2014, within the Eastern District of Oklahoma, the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, a firearm, which had been shipped and transported in interstate commerce.
The Honorable Steven P. Shreder, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the guilty plea and ordered the completion of a presentence report. Sentencing will be scheduled following its completion. The defendant will remain in the custody of the United States Marshal Service pending sentencing.
The statutory range of punishment is not more than 10 years imprisonment, up to a $250,000 fine on both.
Assistant United States Attorney Dean Burris represented the United States.
Monroe County Man Pleads Guilty to Multi-County Drug Trafficking ConspiracyRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 32-year-old Effort resident pleaded guilty yesterday before U.S. District Court Judge Robert D. Mariani to participating in a drug conspiracy that was responsible for distributing large quantities of heroin, cocaine and other drugs during a four-year time period in Monroe, Montgomery, and Berks Counties.
According to United States Attorney Peter Smith, the defendant, Ramon Baez, admitted to regularly obtaining drugs from suppliers in Reading and New York, and distributing those drugs to other dealers in Reading and the Monroe County area.
The charge against Baez resulted from an investigation by the Drug Enforcement Administration (DEA), Homeland Security Investigations, the Pennsylvania State Police, the Pennsylvania Attorney General’s Office, Berks County Detectives and Montgomery County Detectives.
Assistant U.S. Attorney Francis P. Sempa is prosecuting the case.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is 20 years imprisonment, a term of supervised release following imprisonment, and a $1 million fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Judge Mariani ordered a pre-sentence report to be completed. Sentencing is scheduled to take place in July 2015.
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Monroe County Man Pleads Guilty to Multi-County Drug Trafficking ConspiracyRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 32-year-old Effort resident pleaded guilty yesterday before U.S. District Court Judge Robert D. Mariani to participating in a drug conspiracy that was responsible for distributing large quantities of heroin, cocaine and other drugs during a four-year time period in Monroe, Montgomery, and Berks Counties.
According to United States Attorney Peter Smith, the defendant, Ramon Baez, admitted to regularly obtaining drugs from suppliers in Reading and New York, and distributing those drugs to other dealers in Reading and the Monroe County area.
The charge against Baez resulted from an investigation by the Drug Enforcement Administration (DEA), Homeland Security Investigations, the Pennsylvania State Police, the Pennsylvania Attorney General’s Office, Berks County Detectives and Montgomery County Detectives.
Assistant U.S. Attorney Francis P. Sempa is prosecuting the case.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is 20 years imprisonment, a term of supervised release following imprisonment, and a $1 million fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Judge Mariani ordered a pre-sentence report to be completed. Sentencing is scheduled to take place in July 2015.
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Michigan Resident Sentenced to Prison for Criminal Contempt Involving Federal Tax ObligationsRead the Press Release
A resident of Commerce Township, Michigan, was sentenced to serve 18 months in prison to be followed by one year of supervised release for criminal contempt, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division.
In July 2014, Doreen Hendrickson was convicted of criminal contempt following a federal jury trial in Detroit. Hendrickson violated an injunction involving federal tax obligations issued by U.S. District Judge Nancy Edmunds of the Eastern District of Michigan in May 2007. Today’s sentence was imposed by U.S. District Judge Victoria Roberts.
According to court filings and evidence presented at trial, Hendrickson and her husband, Peter Hendrickson, filed federal income tax returns for the years 2002 and 2003 on which they falsely claimed they earned zero wages. Based on these false returns, the Internal Revenue Service (IRS) issued the Hendricksons more than $20,000 in income tax refunds that they were not entitled to receive. In 2006, the Tax Division sued the Hendricksons to recover these refunds. As part of that litigation, Judge Edmunds ordered the Hendricksons to file corrected amended tax returns for 2002 and 2003 that reported all of their income, and further ordered them to repay their fraudulently obtained refunds to the IRS. Judge Edmunds also barred the Hendricksons from filing additional false tax returns.
In 2009, Peter Hendrickson was convicted of filing multiple false income tax returns, including the 2002 and 2003 returns that he filed jointly with his wife. The tax returns at issue were based on the false and frivolous tax theories that Peter Hendrickson promoted in his book, “Cracking the Code,” and on his website, Lost Horizons. Peter Hendrickson was sentenced to serve 27 months in prison in that case.
The evidence presented at Doreen Hendrickson’s trial showed that she violated the injunction issued by Judge Edmunds when she failed to file amended 2002 and 2003 tax returns. Also, in direct violation of Judge Edmunds’s order, Hendrickson filed a false income tax return for 2008 on which she falsely claimed that wages she earned as a movie extra were not taxable. This tax return was submitted while her husband was under indictment for filing false tax returns.
Acting Assistant Attorney General Ciraolo commended special agents of IRS-Criminal Investigation, who investigated the case, and Trial Attorneys Melissa S. Siskind, Jeffrey B. Bender and Jeffrey A. McLellan of the Tax Division, who are prosecuting the case. Ciraolo also thanked the U.S. Attorney’s Office of the Eastern District of Michigan for their substantial assistance.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Member of Organized Cybercrime Ring Sentenced to 150 Months in Prison for Selling Stolen and Counterfeit Credit CardsRead the Press Release
A member of the identity theft and credit card fraud ring known as “Carder.su” was sentenced today to 150 months in federal prison for selling stolen and counterfeit credit cards over the Internet. He was further ordered to pay $50.8 million in restitution.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Daniel G. Bogden of the District of Nevada and Assistant Special Agent in Charge Michael Harris of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations’ (ICE-HSI) Las Vegas Field Office made the announcement. U.S. District Judge Andrew P. Gordon of the District of Nevada imposed the sentence.
“Criminal cyber organizations like Carder.su threaten not just U.S. citizens but people in every corner of the globe,” said Assistant Attorney General Caldwell. “Managers in Russia seamlessly ran their criminal enterprise online using, among others, a counterfeit card vendor from New Jersey, with whom they communicated through screen name aliases. The success in this case was achieved through equally seamless cooperation with our foreign law enforcement partners and effective use of the RICO statute. As more countries work with us to fight these organizations, we will continue to evolve to meet this growing threat.”
“Mr. Smith’s crimes were very serious and justify a lengthy prison sentence,” said U.S. Attorney Bogden. “He admitted that he caused a loss of seven to $20 million involving over 250 victims, and that he obstructed justice when he fled to Jamaica while released on bond awaiting trial. We are working closely with our international, federal, state and local law enforcement partners to make sure that the perpetrators of these sorts of crimes are prosecuted no matter where in the world they commit their crimes or attempt to flee.”
“As this sentence demonstrates, cyber-criminals who purposely harm innocent Americans and compromise our financial system and global commerce will be aggressively pursued, investigated and prosecuted,” said Assistant Special Agent in Charge Harris. “These criminals may believe they can escape detection by fleeing the country and hiding behind their computer screens, but as this case shows, cyberspace is not a refuge from justice.”
Jermaine Smith, aka “SirCharlie57,” aka “Fairbusinessman,” 34, of East Orange, New Jersey, pleaded guilty in October 2014 to one count of participating in a racketeer influenced corrupt organization.
During his guilty plea, Smith admitted that in May 2009 he became associated with the Carder.su organization, a criminal enterprise whose members trafficked in compromised credit card account data and counterfeit identifications, and committed money laundering, narcotics trafficking, and various types of computer crime. Specifically, Smith admitted that he operated as a vendor on the organization’s websites, using the “SirCharlie57” and “Fairbusinessman” nicknames. While acting as a vendor under those online monikers, Smith sold counterfeit credit cards to an undercover special agent. Those counterfeit credit cards were successfully processed for fingerprints, identifying Smith as the true user of the online screennames. In addition to the sale of the counterfeit credit cards, Smith admitted that he possessed over 2,150 stolen credit and debit card account numbers.
While on pretrial release in this case, Smith removed an electronic monitoring device from his person and fled to Jamaica. He was arrested four months later and returned to Nevada.
Fifty-six individuals were charged in four separate indictments in Operation Open Market, which targeted the Carder.su organization. To date, 26 individuals have been convicted and the rest are either fugitives or are pending trial.
The cases were investigated by ICE-HSI and the U.S. Secret Service, and are being prosecuted by Trial Attorney Jonathan Ophardt of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Kimberly M. Frayn and Andrew W. Duncan of the District of Nevada.
This prosecution is in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ Offices and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes, enhancing coordination and cooperation among federal, state and local authorities, addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
Media AdvisoryRead the Press Release
Sioux City, Iowa – The United States Attorney’s Office for the Northern District of Iowa will hold a press conference on April 13th following the sentencing in federal court of Quality Egg, LLC, Austin (Jack) DeCoster, and Peter DeCoster.
The egg production company was linked to a nationwide salmonellosis outbreak during the spring and summer of 2010. There were nearly 2,000 reported consumer illnesses in multiple states, which led to the recall of millions of eggs produced by the company.
The United States Attorney, Kevin Techau, will be joined at the press conference by representatives from the FDA, USDA and Consumer Protection Branch of the US Department of Justice.
Event Details
When: Monday, April 13, 2015
Where: U.S. Attorney’s Office, Ho-Chunk Centre, 600 Fourth St. Sioux City, Iowa. Those wishing to attend need to report to the 6th Floor to get a pass and be escorted to the 7th Floor Conference Room.
Time: To follow after the sentencing, which begins at 9:00 a.m.
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Madison, Wisconsin, Man Charged with Attempting to Provide Material Support to ISILRead the Press Release
Assistant Attorney General for National Security John P. Carlin, U.S. Attorney John W. Vaudreuil of the Western District of Wisconsin and Special Agent in Charge Robert J. Shields Jr. of the FBI’s Milwaukee Division announced that Joshua Ray Van Haften, 34, of Madison, Wisconsin, has been charged with attempting to provide material support and resources, namely himself as personnel, to a foreign terrorist organization. As alleged in the complaint, Van Haften intended to travel into Iraq or Syria to join the Islamic State of Iraq and the Levant (ISIL).
The complaint alleges that Van Haften left the United States on Aug. 26, 2014, and traveled to Istanbul. As alleged in the complaint, Turkey shares a land border with Syria and is known to be an entry point into Syria for those who wish to join ISIL.
“Van Haften traveled overseas for the alleged purpose of joining and attempting to provide material support to ISIL,” said Assistant Attorney General Carlin. “Stemming the flow of foreign fighters to Iraq and Syria and holding accountable those who attempt to provide material support to designated foreign terrorist organizations remains a top priority for the National Security Division. I would like to thank all the agents, analysts and prosecutors who are responsible for this case.”
“We will continue to work with our law enforcement partners to investigate, arrest, and vigorously prosecute all extremists who choose to aid ISIL, or any other terrorist organization, and to stop them before they harm the United States or our allies,” said U.S. Attorney Vaudreuil. “We also remain committed to working with dedicated community members to bring this cycle to an end.”
“This arrest underscores the importance of our JTTF law enforcement partnerships to bring those to justice who provide support and resources to terrorist organizations such as ISIL,” said Special Agent in Charge Shields. “We hope this arrest will serve as a deterrent for others who may be terrorist sympathizers here in Wisconsin, across the nation or abroad: they will be held accountable for support of terrorism against our citizens and our international partners.”
Van Haften was arrested at O’Hare Airport in Chicago yesterday evening after his arrival in custody on an international flight from Turkey.
Van Haften will make an initial appearance in U.S. District Court at 9:45 a.m. CDT today before U.S. Magistrate Judge Stephen L. Crocker of the Western District of Wisconsin. If convicted, the defendant faces a maximum penalty of 15 years in federal prison.
This case was investigated by the Joint Terrorism Task Force, the members of which include the FBI, the Wisconsin Department of Justice’s Division of Criminal Investigation, the Dane County Sheriff’s Office and the University of Wisconsin Police Department. Assistance was also provided by the Department of Homeland Security. The case is being prosecuted by U.S. Attorney Vaudreuil and Assistant U.S. Attorney Jeffrey Anderson of the Western District of Wisconsin, and Trial Attorney Lolita Lukose of the Justice Department’s National Security Division.
The charges contained a complaint are merely accusations, and a defendant is presumed innocent unless and until proven guilty.
Van Haften Complaint
MS-13 Gang Associate Convicted for the Robbery of A Brothel That Included A Rape and MurderRead the Press Release
Greenbelt, Maryland - A federal jury today convicted Alexsi Lopez, age 26, of Hyattsville, Maryland, of conspiracy and the violent robbery of a Hyattsville brothel that resulted in a rape and murder.
The conviction was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Chief Mark A. Magaw of the Prince George’s County Police Department.
According to the evidence presented at his six day trial, Lopez was associated with the MS-13 gang and knew his co-defendant, Ramon Miguel Cerros-Cruz through MS-13. Evidence showed that Lopez and Cerros-Cruz familiarized themselves with the location and operation of brothels in the Hyattsville-Langley Park area of Prince George’s County, then planned the robbery of a Hyattsville brothel apartment. According to trial testimony, on February 28, 2007, Lopez and Cerros-Cruz entered the brothel apartment armed with knives, and using force and violence, demanded money from the people within the brothel and searched the apartment for cash and items of value. Witnesses testified that Lopez and Cerros-Cruz bound one of the brothel’s employees, raped another employee and murdered a third person who arrived at the brothel during the commission of the rape and robbery, stabbing him multiple times when he resisted the demands of the defendants. DNA evidence placed Lopez and Cerros-Cruz at the scene.
Lopez faces a maximum sentence of 20 years in prison for the conspiracy and for the robbery. U.S. District Judge Paul W. Grimm has scheduled sentencing for August 24, 2015, at 1:00 p.m.
Ramon Miguel Cerros-Cruz, age 25, of Silver Spring, Maryland previously pleaded guilty and was sentenced of 10 years in prison for the robbery.
United States Attorney Rod J. Rosenstein praised HSI Baltimore and the Prince George’s County Police Department for their work in the investigation and thanked the Prince Georges County Department of Corrections and the Maryland Department of Public Safety and Correctional Services for their assistance. Mr. Rosenstein thanked Assistant United States Attorneys William D. Moomau and Daniel C. Gardner, who are prosecuting the case.
Lubbock Man Sentenced to 78 Months in Federal Prison for Possessing Child PornographyRead the Press Release
LUBBOCK, Texas — A 58-year-old Lubbock, Texas, man, who admitted possessing child pornography, was sentenced this morning, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
Rassie Cleveland Martin was sentenced to 78 months in federal prison by U.S. District Judge Sam R. Cummings. Martin must surrender to the Bureau of Prisons by May 15, 2015.
According to plea documents filed in the case, Martin used a desktop computer at his residence to search the Internet for images and videos of child pornography. He searched with the intent of locating material depicting minors engaging in sexually explicit conduct, and in the course of searching for this material, located, downloaded, and viewed numerous images and videos constituting child pornography.
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) investigated. Assistant U.S. Attorney Steven M. Sucsy prosecuted.
Local Insurance Salesman Pleads Guilty to Fraud and Tax ChargesRead the Press Release
St. Louis, MO – PAUL PARKER pled guilty to charges involving a scheme to defraud four clients by using their investment funds to pay his expenses and gamble. He also admitted that he willfully failed to file tax returns during the scheme, in part to avoid reporting his income from the fraud.
According to court documents, Parker held an account in the name of American Investors, Inc. for the purported purpose of receiving funds from clients to purchase life insurance annuities. Rather than purchase annuities on his clients’ behalf, however, Parker spent their money on personal expenses and gambling. In the course of the scheme, Parker also used monies contributed by later clients to fund repayments to prior clients. In total, Parker took in approximately $259,168 through false and fraudulent pretenses, resulting in a loss to investors of approximately $209,168. Parker also admitted to failing to file federal income tax returns for three years from 2010 to 2012.
Parker, St. Louis, Missouri, pled guilty to one felony count of mail fraud and three counts of failure to file a tax return before United States District Judge Rodney W. Sippel. Sentencing has been set for July 16, 2015.
Mail fraud carries a maximum penalty of 20 years in prison and/or fines up to $250,000; each count of failure to file tax returns carries a maximum penalty of one year in prison and/or fines up to $25,000.
This was investigated by Internal Revenue Service-Criminal Investigation and the Federal Bureau of Investigation. Assistant United States Attorney Richard Finneran is handling the case for the U.S. Attorney’s Office.
Leader of Drug Trafficking Organization Sentenced to 20 Years in Prison Following Operation Crystal ClearRead the Press Release
El Dorado, Arkansas - Conner Eldridge, United States Attorney for the Western District of Arkansas, announced that Jamie B. Martin, age 36, of Waldo, Arkansas, was sentenced to 240 months in prison followed by three years of supervised release on one count of Conspiracy to Distribute Methamphetamine as part of “Operation Crystal Clear”, an investigation into large-scale drug trafficking of methamphetamine throughout Columbia County, Arkansas, and surrounding areas. The Honorable Susan O. Hickey presided over the sentencing hearing in the United States District Court in El Dorado.
U.S. Attorney Eldridge commented, “With the sentence announced today, another drug trafficking organization has been successfully dismantled, and its leader brought to justice. The criminal activity involved in this case victimized the people of Waldo, Magnolia, and the surrounding area. Our office remains committed to vigilantly and aggressively prosecuting drug trafficking organizations across the Western District of Arkansas in order to eradicate the crime and violence they bring into our communities.”
“Martin earned this sentence,” stated Special Agent in Charge David T. Resch of the Federal Bureau of Investigation in Little Rock. “The FBI, FBI Task Force, and our partnership with the United States Attorney’s Office, the Magnolia Police Department, and the 13th Judicial Drug Task Force will continue to work to dismantle dangerous drug trafficking organizations in our communities.”
According to court records, beginning in 2011, agents with the FBI and FBI Task Force initiated an investigation, known as “Operation Crystal Clear”, into Jamie Martin and his drug trafficking organization. During the investigation, agents identified Martin as a source of supply in Columbia County, Arkansas. Pursuant to a court order, agents intercepted the wire and electronic communications of a cell phone used by Jamie Martin. Over the course of the court-ordered interception, investigators received numerous wire and electronic communications between Martin and his co-conspirators discussing the distribution of methamphetamine and collection of drug debts. In many of the communications, Martin and co-conspirators used coded language to disguise their drug trafficking activities. Through their investigation, agents learned that Martin was responsible for the distribution of ounce quantities of methamphetamine to various customers in the Western District of Arkansas. Additionally, during the course of the investigation, agents conducted numerous controlled purchases of methamphetamine from Martin. During the course of those controlled buys, Martin sent various co-conspirators to deliver the methamphetamine on his behalf. As a result of this investigation, agents seized over three pounds of methamphetamine, five firearms, and approximately $160,000 in cash. Martin and his co-conspirators were originally charged in a 15-count indictment by a Federal Grand Jury which was filed on March 6, 2013. Martin pleaded guilty to one count of Conspiracy to Distribute Methamphetamine on December 11, 2013. During sentencing, it was determined that Martin was an organizer or leader of a criminal activity that involved five or more participants and that Martin possessed a dangerous weapon during the commission of the offense.
Following are Martin’s co-conspirators who were charged in federal court and their sentences for their involvement in “Operation Crystal Clear”. Numerous other co-conspirators were charged in the state court system.
Claudie J. Miller, aka “June Bug”, pleaded guilty to one count of Conspiracy to Distribute Methamphetamine and was sentenced to 140 months in prison.
Chevis D. Johnson pleaded guilty to one count of Distribution of Methamphetamine and Aiding and Abetting and was sentenced to 180 months in prison.
Courtney K. Loudermill pleaded guilty to one count of Conspiracy to Distribute Methamphetamine and was sentenced to 48 months in prison.
Curtis J. Cole, aka “Peetie”, pleaded guilty to one count of Distribution of More than 50 grams of Methamphetamine and was sentenced to 168 months in prison.
Ervin K. Moss, aka “Kelso”, pleaded guilty to one count of the Use of a Communication Facility in Furtherance of the Distribution of Methamphetamine and was sentenced to 6 months in prison.
Monte V. Dismuke pleaded guilty to one count of Use of a Communication Facility in Furtherance of the Distribution of Methamphetamine and was sentenced to 48 months in prison.
This case was investigated by the FBI, the FBI Task Force, the Magnolia Police Department, and the 13th Judicial Drug Task Force. Assistant United States Attorney Ben Wulff prosecuted the case for the United States.
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Related court documents may be found on the Public Access to Electronic Records Website at www.Pacer.gov
Latrobe Man Pleads Guilty to Producing Child PornographyRead the Press Release
PITTSBURGH - A resident of Westmoreland County, Pennsylvania, pleaded guilty in federal court to a charge of production of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.
Thomas Deglau, 56, formerly of Latrobe, Pa. pleaded guilty to one count before United States District Judge Mark R. Hornak.
In connection with the guilty plea, the court was advised that on dates from on or about January 2012 to January 2014, Deglau employed, used, persuaded, induced, enticed, and coerced a minor to engage in sexually explicit conduct for the purpose of producing a visual depiction of the sexual exploitation of the minors.
Judge Hornak scheduled sentencing for July 30, 2015, at 2:30 p.m. The law provides for a total sentence of 30 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Jessica Lieber Smolar is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Pennsylvania State Police conducted the investigation that led to the prosecution of Deglau.
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.
Las Vegas Tax Preparer Indicted by Federal Grand Jury for Preparing False Tax Returns for ClientsRead the Press Release
A Las Vegas tax return preparer was indicted yesterday on 66 counts of preparing and causing the filing of false tax returns, Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney Daniel G. Bogden of the U.S. Attorney’s Office for the District of Nevada announced today.
According to the allegations in the indictment, Rosherral Beverly, of Clark County, Neveda, operated a tax preparation and bookkeeping business named RBTB Inc. From approximately 2006 through 2011, Beverly was RBTB Inc.’s sole owner and tax return preparer. Beverly aided and assisted in preparing false and fraudulent tax returns for her clients for the tax years 2008, 2009 and 2010. The tax returns included various false items, including charitable contributions, gambling losses, tuition deductions, education credits and job, travel and vehicle expenses.
If convicted, Beverly faces a statutory maximum sentence of three years in prison and a $250,000 fine for each count of aiding and assisting in the preparation of false tax returns.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Bogden commended the special agents of IRS-Criminal Investigation, who investigated the case, and Trial Attorney Christopher J. Maietta of the Tax Division and Assistant U.S. Attorney Nicholas D. Dickinson of the District of Nevada, who are prosecuting the case.
An indictment merely alleges that crimes have been committed, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt.
More information about the Tax Division and its enforcement efforts is available on the division’s website.
Kenyan pleads guilty to charge in Dreamboard child sex exploitation site caseRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced today that a Kenyan pleaded guilty to producing child pornography for the Dreamboard child sex exploitation and child pornography site.
Brian Musomba Maweu, 51, of Kenya, pleaded guilty before U.S. District Judge S. Maurice Hicks Jr. to one count of engaging in a child exploitation enterprise. He was recently extradited to the United States from Kenya. According to evidence presented at the guilty plea, Maweu, using the online alias “Catfish,” made 121 posts on the Dreamboard site, which he joined on January 18, 2009. Of those posts, 34 were of child pornography he produced himself. Maweu was considered a “Super VIP” level member of the Dreamboard site. Super VIP is a designation given to members who were prominent on the site and produced homemade child pornography.
Maweu faces 20 years to life in prison, not less than five years to not more than life of supervised release, and a $250,000 fine. A sentencing date of July 14, 2015 was set.
Maweu was charged in an indictment unsealed on Aug. 3, 2011. The charges were the result of Operation Delego, an investigation launched in December 2009 that targeted individuals around the world for their participation in Dreamboard. The board was a private, members-only, online bulletin board that was created and operated to promote pedophilia and encourage the sexual abuse of very young children in an environment designed to avoid law enforcement detection.
A total of 72 individuals, including Maweu, were charged as a result of Operation Delego. To date, 57 of the 72 charged defendants have been arrested in the United States and abroad. Eight of the 57 are in the process of being extradited to the United States. Forty-eight individuals have pleaded guilty, and one was convicted after trial. The 47 individuals who have pleaded guilty or found guilty for their roles in the conspiracy have been sentenced to prison and have received sentences ranging between five years to life in prison. Three defendants have received life sentences, including the one who was convicted at trial. Fifteen of the 72 charged individuals remain at large and are known only by their online identities. Efforts to identify and apprehend these individuals continue. Operation Delego represents the largest prosecution to date in the United States of individuals who have participated in an online bulletin board conceived and operated for the sole purpose of promoting child sexual abuse, disseminating child pornography and evading law enforcement.
“There is still much work to be done before most, if not all, online operations like this one can be stopped,” Finley stated. “It took the work of agencies, both domestic and international, to find and bring this defendant to justice. We hope to make more arrests in the case and bring to justice all of the individuals who perpetrate such vile schemes that endanger children. I want to thank all the agencies and prosecutors who have worked on this case.”
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The case is being prosecuted by Assistant U.S. Attorneys John Luke Walker and Michael O’Mara of the Western District of Louisiana and Trial Attorney Keith Becker of CEOS. The Criminal Division’s Office of International Affairs provided substantial assistance. The investigation was conducted by ICE-Homeland Security Investigations, the Child Exploitation Section of ICE’s Cyber Crime Center, CEOS, CEOS’s High Technology Investigative Unit and 35 ICE offices in the United States and 11 ICE attaches offices in 13 countries around the world, with assistance provided by numerous local and international law enforcement agencies across the United States and throughout the world.
ICE encourages the public to report suspected child predators and any suspicious activity through its toll-free hotline at 1-866-DHS-2ICE. This hotline is staffed around the clock by investigators. Tips or other information can also be submitted to ICE online at www.ice.gov/exec/forms/hsi-tips/tips.asp. Tips may be reported anonymously.
Judge Sentences Johnstown Crack Dealer to 10-Year Prison TermRead the Press Release
JOHNSTOWN, Pa. - A resident of Johnstown, Pa., has been sentenced in federal court to 120 months in prison and three years supervised release on his conviction of distribution of cocaine base, in the form commonly known as "crack," United States Attorney David J. Hickton announced today.
United States District Judge Kim R. Gibson imposed the sentence on John D. Malden, 40, of Johnstown, Pa.
According to information presented to the court, on April 25, 2013, Malden distributed less than 28 grams of cocaine base.
Assistant United States Attorney John J. Valkovci, Jr., prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Cambria County Drug Task Force for the investigation leading to the successful prosecution of Malden.
Johnstown Man Indicted on Federal Drug and Firearms ChargesRead the Press Release
JOHNSTOWN, Pa. - A resident of Johnstown, Pa., has been indicted by a federal grand jury in Johnstown on charges of violating federal narcotics and firearms laws, United States Attorney David J. Hickton announced today.
The three-count indictment named Tony U. Atwood, 43, of Johnstown, Pa., as the sole defendant.
According to the indictment, on June 4, 2014, Atwood distributed less than 100 grams of heroin, and he possessed less than 100 grams of heroin with the intent to distribute it. In addition, on the same day, Atwood, who had been convicted in 1995 in Cambria County, Pennsylvania, of Drug Act/Possession with the intent to deliver a controlled substance, unlawfully possessed a Titan semi-automatic pistol. Federal law prohibits persons who have been convicted of a crime punishable by imprisonment for more than one year from possessing ammunition or firearms. Drug Act/Possession with the intent to deliver a controlled substance is such a crime.
The law provides for a maximum total sentence of 50 years in prison, a fine of $2,250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history of the defendant.
Assistant United States Attorney John J. Valkovci, Jr., is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Cambria County Drug Task Force 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.
According to Mr. Hickton, Atwood is being prosecuted as part of Project Safe Neighborhoods, a collaborative effort by federal, state, and local law enforcement agencies, prosecutors, and communities to prevent, deter, and prosecute gun crime.
Jefferson County Man Sentenced for Child Pornography ViolationsRead the Press Release
BEAUMONT, Texas – A 34-year-old Port Arthur, Texas man has been sentenced to federal prison for child pornography violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Damien Oasis Winn pleaded guilty on Dec. 4, 2014, to possession of child pornography and was sentenced to 86 months in federal prison today by U.S. District Judge Ron Clark.
According to information presented in court, in December 2013, law enforcement officers conducting Internet undercover operations were made aware of a computer offering files containing child pornography for distribution. Further investigation revealed the computer belonged to Winn. On June 19, 2014, a federal search warrant was executed at Winn’s residence and numerous computers and digital storage devices were seized. A forensic analysis of Winn’s computer revealed over 600 images, including 31 videos, of child pornography. Winn was indicted by a federal grand jury on Sep. 3, 2014.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the Homeland Security Investigations (HSI) and the Beaumont Police Department and prosecuted by Assistant U.S. Attorney Randall L. Fluke.
Jackson Woman Sentenced to Ten Years in Prison for Stolen Identity Refund FraudRead the Press Release
Jackson, Miss. – Marietta Harris, 39, of Jackson, was sentenced on April 8, 2015 by U.S. District Judge Henry T. Wingate to 120 months in federal prison followed by three years of supervised release for stolen identity refund fraud, announced U.S. Attorney Gregory K. Davis and Acting Special Agent in Charge Jerome R. McDuffie with IRS Criminal Investigation. Harris was also ordered to pay restitution to the Internal Revenue Service in the amount of $771,956.27.
Harris admitted to conspiring to defraud the government by using personal identifying information, including names and social security numbers which had been stolen from the Central Mississippi Correctional Facility located in Rankin County, the University of Mississippi Medical Center and other locations. The information was then used by Harris and her co-conspirators to file false tax returns with the Internal Revenue Service. The tax returns claimed that the tax payers were owed a refund. Refunds were then electronically deposited into various bank accounts in Mississippi belonging to Harris and her co-conspirators.
U.S. Attorney Gregory K. Davis commended the agents with IRS Criminal Investigation and the U.S. Secret Service who investigated this case. "The prosecution of stolen identity refund fraud cases continues to be a top priority of the Department of Justice. Today’s sentencing should serve as a warning that those who choose to prey on others to enrich themselves will be brought to justice," said U.S. Attorney Davis.
Acting Special Agent in Charge, Jerome R. McDuffie, IRS – Criminal Investigation, stated, "We are very pleased with the sentence handed down by the court in this matter. Marietta Harris engaged in a conspiracy that involved the use of stolen identification information which originated from the MDOC, the University of Mississippi Medical Center, and a local physician patient database. The use of this information to prepare fraudulent tax returns not only resulted in the victimization of the government and its taxpayers, but many vulnerable individuals as well. She earned her time in prison, and must now commence with making recompense for her actions. The Special Agents of IRS – Criminal Investigation remain diligent in our pursuit of the
most egregious cases involving identity theft, and are committed to our partnerships with other federal agencies to put an end to Stolen Identity Refund Fraud."
This case was investigated by the United State Secret Service and the Internal Revenue Service Criminal Investigation. It was prosecuted by Assistant United States Attorney Patrick Lemon.
Irondequoit Woman Charged with Production of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that Megan McDonald, 35, of Irondequoit, NY, was arrested and charged by criminal complaint with production, distribution and possession of child pornography. The charges carry a mandatory minimum penalty of 15 years in prison, a maximum of 40 and a fine of $250,000.
Assistant U.S. Attorney Tiffany H. Lee, who is handling the case, stated that according to the complaint, the defendant engaged in an ongoing conversation online with co-defendant Jason Cortese. He was arrested and charged with attempted production of child pornography, enticement of a minor, distribution and possession of child pornography on March 31, 2015.
During these online chats, the complaint states that McDonald expressed a sexual interest in young girls and sent Cortese numerous images of nude children, including nude images and videos of a victim identified in this case. According to the complaint, McDonald sent the images to Cortese’s phone two or three years ago. A search of the phone by law enforcement officers uncovered images and videos that appear to depict the victim as well as a second victim in this case.
The complaint also states that one of the victims was four years old when the images and videos were produced by McDonald. The defendant, according to the complaint, also produced the images of the second victim who was one year old at the time they were produced.
McDonald made an initial appearance this afternoon before U.S. Magistrate Judge Marian W. Payson and is due back in court on April 13, 2015 at 3:00 p.m. for a detention hearing.
The criminal complaint is the culmination of an investigation on the part of the Federal Bureau of Investigation Child Exploitation Task Force, the Monroe County Sheriff’s Office, under the direction of Sheriff Patrick O’Flynn, and the Irondequoit Police Department, under the direction of Chief Richard V. Tantalo.
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.
Illegal Alien to Serve Prison Time for Drug Crimes Before Deportation to MexicoRead the Press Release
PITTSBURGH - A native of Mexico, and a part-time visitor to the Los Angeles area of California, pleaded guilty in federal court to criminal charges regarding his cocaine trafficking and laundering of drug money on March 7, 2015, United States Attorney David J. Hickton announced today.
Gustavo Godinez who goes by the aliases Jorge Navarro Ochoa, Abel Acosta, Sergio Leon- Fregosa, Gustavo Torres, and “Tigre” (Spanish for “Tiger”), pleaded guilty to all of his charges before United States District Judge Mark R. Hornak.
In connection with the guilty plea, the court was advised that Godinez is a Mexican-born drug dealer who supplied between five and 15 kilograms of cocaine to Pittsburgh area drug dealers between 2012 and 2013. Using his drug proceeds, Godinez obtained expensive vehicles in the names of others and also opened bank accounts in the names of others. The federal investigation revealed that Godinez obtained drug payments from the Pittsburgh cocaine sales in the form of bank deposits, money orders, and wire transfers and that he utilized various associates in multiple states to obtain, deposit, cash, and withdraw the funds, incorrectly believing that his efforts would make it impossible for law enforcement to trace the money back to him. The organization kept the amounts of the money orders below federal reporting obligations for the same reason.
Judge Hornak scheduled sentencing for July 30, 2015, at 10 a.m. and ordered a detailed presentence report to be prepared by the United States Probation Office containing various aspects of the defendant’s life including: his juvenile and adult criminal history; family background; educational landmarks; and any work history. Godinez personally signed a written plea agreement with the government which was provided to the court. If the plea agreement is accepted by Judge Hornak after reviewing the presentence report, the defendant will serve 10 years in federal prison in addition to supervision and a fine to be determined by the Court. Since the defendant was on supervision in California during 2012-13 for a previous conviction involving his attempted sale of methamphetamine, Godinez acknowledged in court that he faces the possibility of additional incarceration in California.
Pending sentencing, the court ordered that Godinez remain incarcerated in the custody of the United States Marshal Service. Court filings indicate that Godinez had been kept in a secure area of a federal facility as a result of alleged threats to government witnesses and his previous attorney.
Assistant United States Attorneys Jonathan Ortiz and Ross Lenhardt from the Violent Crime Section of the United States Attorney’s Office prosecuted Godinez on behalf of the government.
United States Attorney Hickton praised the collaborative efforts of all of the federal, state and local law enforcement officers who worked together to bring Godinez and his associates to justice. United States Attorney Hickton noted the efforts of the Drug Enforcement Administration, whose investigation was led by Special Agent Mark Koss of the Pittsburgh District Office, and DEA HIDTA (High Intensity Drug Trafficking Area) Group 44, whose investigation was led by Los Angeles Police Detective Sal Duarte. U.S. Attorney Hickton specifically noted the valuable efforts of the United States Postal Service, the Internal Revenue Service- Criminal Investigations, the Pennsylvania Attorney General’s Office, the Department of Homeland Security and numerous other officers and agencies.
Godinez and his drug trafficking organization was prosecuted through a multi-agency federal effort within the Organized Crime Drug Enforcement Task Force (OCDETF) program. The OCDETF program is intended to focus on prosecuting large scale drug traffickers whose crimes directly affect multiple jurisdictions within the United States.
Harrisburg Man Sentenced to 48 Months in Prison for Distribution of CocaineRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that Jerome Brunson, age 49, of Harrisburg, was sentenced to 48 months in prison today by Chief U.S. District Court Judge Christopher C. Conner in Harrisburg, for distribution of cocaine hydrochloride.
According to United States Attorney Peter Smith, Brunson was charged in a Criminal Superseding Information filed by the United States Attorney on December 4, 2014. Brunson pled guilty on this same date.
Judge Conner ordered Brunson to be placed on three years of supervised release following his prison sentence. Brunson must also pay a $400 fine and a $100 special assessment.
The case was investigated by Drug Enforcement Administration (DEA) and Dauphin County Drug Task Force. Assistant U.S. Attorney Daryl F. Bloom prosecuted the case.
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