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4 May 2015
Former Barboursville pharmacy operator pleads guilty to federal banking crimesRead the Press Release
Former A+ Care Pharmacy head agrees to forfeit $2.3 million, plus Lexus and Barboursville home
HUNTINGTON, W.Va. – United States Attorney Booth Goodwin announced today that Kofi Ohene Agyekum, 37, the former owner and operator of A+ Care Pharmacy in Barboursville, West Virginia, pleaded guilty to violating federal banking laws aimed at identifying criminal activity, including drug crime and terrorism. Federal laws, including the Patriot Act, require financial institutions to report cash transactions of more than $10,000 to federal authorities. Structuring, or dividing cash transactions into amounts less than $10,000, is a common technique used by criminals to avoid triggering the reporting requirement and detection of the underlying crimes.
At his plea hearing, Agyekum admitted that he deposited hundreds of thousands of dollars in cash that he derived from his operation of A+ Care Pharmacy. To avoid the federal reporting requirement, Agyekum admitted that he structured each deposit in an amount less than $10,000 and made the deposits to multiple bank accounts in various area banks, including Huntington National Bank, Fifth Third Bank, Chase Bank and First Sentry Bank.
As part of his plea agreement, Agyekum will forfeit to the United States more than $2.3 million, plus a Lexus and his home in Barboursville. He faces up to 20 years in federal prison when he is sentenced on August 3, 2015.
Chief United States District Judge Robert C. Chambers conducted today’s plea hearing.
This case was investigated by Internal Revenue Service Criminal Investigation, the Metropolitan Drug Enforcement Network Team, and the Drug Enforcement Administration. Assistant United States Attorney Monica D. Coleman is responsible for the prosecution.
Five Southern California Ambulance Companies to Pay More Than $11.5 Million to Resolve Kickback AllegationsRead the Press Release
SAN DIEGO – In a lawsuit unsealed in federal court today, five ambulance companies have entered into civil settlements with the Department of Justice requiring them to collectively pay more than $11.5 million in payments to the United States to resolve kickback allegations.
The settling defendants include three Orange-County based companies - Pacific Ambulance, Inc. and Bowers Companies, Inc., (both of which were subsequently acquired by Rural/Metro Corporation after the alleged misconduct occurred) and Care Ambulance Service, Inc.; and two San Diego-based companies - Balboa Ambulance Service, Inc., and E.R. Ambulance, Inc.
The settlements resolve allegations that the defendants engaged in so-called “swapping” kickback schemes by providing deeply discounted – and often below cost – ambulance services to hospitals and/or skilled nursing facilities in exchange for exclusive rights to the facilities’ more lucrative Medicare patient referrals. Such swapping arrangements can lead to overutilization of medical services and inflated charges to the Medicare program. The government alleges that the arrangements in this case resulted in false claims for Medicare Part B transports which in essence subsidized the discounted trips.
The Anti-Kickback Statute prohibits payment arrangements that are intended to influence health care referrals. The statute generally prohibits anyone from offering, paying, soliciting or receiving remuneration to induce referrals of items or services covered by federal health care programs, including Medicare.
“It is a priority of this office to combat abuses that drive up the cost of health care and waste taxpayer dollars,” said Laura E. Duffy, United States Attorney for the Southern District of California. “We will continue to work closely with our investigative partners to pursue those who refuse to play by the rules and offer kickbacks to induce health care referrals.”
The case was investigated by the U.S. Department of Health and Human Services Office of the Inspector General and the Federal Bureau of Investigation.
“Today’s settlements resolve a thorough investigation of the practices by ambulance companies that offered significant discount services to facilities in exchange for patient referrals,” said Glenn R. Ferry, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General’s (OIG) Los Angeles Region. “The OIG takes this type of activity very seriously and welcomes the public’s assistance in identifying any health care businesses that engage in similar types of schemes.”
“Protecting the integrity of the Medicare program so that it can continue to provide health care for its patients is a priority of the FBI,” commented San Diego FBI Special Agent in Charge Eric S. Birnbaum. “Today’s settlements reaffirm the FBI’s commitment to working with our partners and integrating investigative tools with intelligence in the effort to return fraudulently obtained money to the Medicare program.”
These settlements resolve a False Claims Act lawsuit filed in the Southern District of California by Kelvin Carlisle, a competitor in the San Diego, Orange and Los Angeles County ambulance marketplaces. The whistleblower or qui tam provisions of the False Claims Act permit the whistleblower (or relator) to recover a portion of the proceeds obtained by the federal government. As part of the resolution of the suit, Mr. Carlisle will receive in excess of $1.7 million.
These settlements illustrate the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $24 billion through False Claims Act cases, with more than $15.3 billion of that amount recovered in cases involving fraud against federal health care programs.
Anyone suspecting Medicare fraud, waste, or abuse is asked to contact the U.S. Department of Health and Human Services at oig.hhs.gov/report-fraud, by calling 1-800-HHS-TIPS, or writing to the Office Inspector General, U.S. Dept. of Health and Human Services, Attn: Hotline, P.O. Box 23489, Washington, DC 20026.
Federal Judge Sentences Methamphetamine Trafficker to Life in PrisonRead the Press Release
STATESVILLE, N.C. – Today, a federal judge sentenced Martin Martinez Saldana, 44, of West Jefferson, N.C., to life in prison on conspiracy to distribute and to possess with intent to distribute methamphetamine and possession of a short-barreled shotgun charges, announced Jill Westmoreland Rose, Acting U.S. Attorney for the Western District of North Carolina.
Acting U.S. Attorney Rose is joined in making today’s announcement by John S. Comer, Acting Special Agent in Charge of the Atlanta Field Division of the Drug Enforcement Administration (DEA), which oversees the Charlotte District Office; Wayne L. Dixie, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division; B.W. Collier, Acting Director of the North Carolina State Bureau of Investigation (SBI); and Sheriff James Williams of the Ashe County Sheriff’s Office (ACSO).
According to filed court documents and evidence presented at Saldana’s four-day trial in March 2014, from as early as 2011 through the end of 2012, Saldana and his conspirators distributed in Ashe County and elsewhere more than 20 pounds of near-pure crystal methamphetamine, also known as “ice.” Trial evidence established that the high level of purity of the methamphetamine indicates it originated from a Mexican “super lab” with an estimated street-level value of more than $1 million. The evidence at trial also established that when law enforcement executed a search warrant at Saldana’s residence they seized four handguns, including a revolver hidden under his mattress, and an illegal short-barreled shotgun, as well as ammunition. Over the course of the investigation, law enforcement also seized five real properties in Ashe County worth over $500,000 combined, $50,000 in cash, one vehicle, one-quarter kilogram of methamphetamine “ice” and drug packaging materials. Among the seized items also were three images of Santa Muerte, who has been adopted by drug traffickers as folk “patron saint.”
Saldana was indicted by a federal grand jury on December 13, 2012, which indictment was superseded on August 20, 2013. He has been in federal custody since his arrest on December 12, 2012, when law enforcement discovered that Saldana was planning to go to Mexico.
Acting U.S. Attorney Rose commended the DEA in Charlotte, ACSO, SBI, and ATF for the investigation leading to the successful prosecution of Martin Martinez Saldana, and also thanked the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Alleghany Sheriff’s Office, and the Boone Police Department for the assistance in this case. Assistant U.S. Attorney Steven R. Kaufman handled the prosecution of the case.
Federal Inmate Pleads Guilty to Synthetic Drug Smuggling SchemeRead the Press Release
FRESNO, Calif. —Tracy McArthur Harris, aka Trey Harris, 42, a federal inmate who is serving an 11-year prison sentence for a cocaine conspiracy, pleaded guilty today to conspiring with his brother, James Steven Harris, aka Steve Harris, 44, of Loma Linda, to smuggle synthetic cannabinoids into Taft Correctional Institution, United States Attorney Benjamin B. Wagner announced.
According to court documents, from December 2012, through April 2013, while incarcerated at Taft Correctional Institution, Trey Harris conspired to obtain smokable synthetic cannabinoids from his brother during visits. Some of the drugs, which were seized by prison authorities during the conspiracy, tested positive for XLR11, then a controlled substance analogue. In May 2013, DEA classified XLR11 as a Schedule I controlled substance following reports by the Centers for Disease Control that XLR11 not only produces hallucinogenic effects but causes kidney damage.
Trey Harris is scheduled for sentencing on July 20, 2015, before Senior U.S. District Judge Anthony W. Ishii. He faces a maximum sentence of five years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Steve Harris is scheduled for a status conference on May 11, 2015, in federal court in Fresno. The charges against him are only allegations, and he is considered innocent unless and until proven guilty beyond a reasonable doubt.
This case is the product of an investigation by the Federal Bureau of Investigation and Taft Correctional Institution Investigations Department. Assistant United States Attorney Karen A. Escobar is prosecuting the case.
Law enforcement agencies have struggled to stem the tide of emerging smokable synthetic cannabinoids, substances that look like marijuana that are sprayed or mixed with a hallucinogenic chemical and often marketed and sold in smoke shops and convenience stores as “potpourri,” “incense,” or “spice.” The chemicals, typically imported from China, come in hundreds of varieties; new formulations appear constantly, with molecules subtly tweaked to try to avoid classification as a controlled substance. However, because they are chemically and pharmacologically similar to controlled substances, these chemicals are considered controlled substance analogues, which are illegal under federal law. Synthetic cannabinoid usage poses extreme health risks that have resulted in serious bodily injury or death. According to the American Association of Poison Control Centers, exposures to synthetic cannabinoids have spiked this year, with 2,252 exposures reported from January 1, 2015, through April 27, 2015.
Ex-Controller of Court Services Firm Who Embezzled More Than $3.3 Million Sentenced to over Three Years in Federal PrisonRead the Press Release
SANTA ANA, California – The former controller of a company that provides supervision services, including electronic monitoring programs, to courts and probation departments was sentenced today to 37 months in federal prison for embezzling well over $3 million from the company over the course of two years.
Steven A. Hagstrom, 38, of Anaheim, who was an accountant and then controller of the Irvine-based Sentinel Offender Services, LLC, was sentenced this afternoon by United States District Judge David O. Carter.
In addition to the prison term, Judge Carter ordered Hagstrom to pay $2,127,932 in restitution, a figure less than the amount of money embezzled because Sentinel previously was able to recover some of the money.
Hagstrom pleaded guilty last June to one count of embezzlement.
As controller of Sentinel, Hagstrom had access to Sentinel’s bank accounts where fines, court fees and restitution payments from criminal defendants were held in trust. The accounts also held money paid to Sentinel for services provided to state and federal court systems. Beginning in early 2012 and continuing until April 2013, Hagstrom transferred approximately $3,338,197 from Sentinel’s bank accounts to bank accounts he controlled, where they could be used for his own benefit.
“Hagstrom’s theft of such funds jeopardized the proper operation of the criminal justice system,” prosecutors wrote in a sentencing memorandum filed with the court. “Beyond just losing the money, Sentinel might have lost contracts with the government agencies that retained Sentinel due to its failure to safeguard their funds.”
The investigation into Hagstrom was conducted by the Federal Bureau of Investigation and IRS - Criminal Investigation.
Release No. 15-041
Endoscopy Center Ceo Sentenced for Billing Fraud SchemeRead the Press Release
LAS VEGAS, Nev. – Tonya Rushing, former CEO of the now-defunct Endoscopy Center of Southern Nevada, was sentenced today by Senior U.S. District Judge Larry R. Hicks to one year and one day in prison for conspiring with Dipak Desai, the former owner of the center, to commit health care fraud, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.
Rushing, 47, who pleaded guilty last July to conspiracy to commit health care fraud, must also serve two years of supervised release, perform 150 hours of community service, and pay a $10,000 fine and $50,000 in restitution. An order of forfeiture was also ordered for $8.1 million.
“Those perpetrating Medicare and Medicaid fraud cheat both taxpayers and vulnerable patients,” said U.S. Attorney Bogden. “We will hold criminals accountable and will seek to recover stolen dollars in each case of healthcare fraud we prosecute.”
Between about January 2005 and February 2008, Desai and Rushing conspired to overcharge Medicare, Medicaid, and other private health insurance companies at the Endoscopy Center of Southern Nevada by significantly overstating the amount of time the certified registered nurse anesthetists spent with patients on a given procedure. Desai and Rushing created a separate company, Healthcare Business Solutions, owned by Rushing, to handle the billing for the anesthesia services. This company received approximately nine percent of all money collected for anesthesia services rendered at the endoscopy center. Desai and Rushing imposed intense pressure on the endoscopy center employees to schedule and treat as many patients as possible in a day, and instructed the nurse anesthetists to overstate in their records the amount of time they spent on the anesthesia procedures. Desai and Rushing also instructed the office staff to rely on the false anesthesia records when preparing the claims for reimbursement which were sent to Medicare, Medicaid and the insurance companies. The plea agreement states that Rushing received approximately $1.3 million as her share of the inflated anesthesia billing scheme.
Desai pleaded guilty on April 2, 2015, to one count of conspiracy to commit health care fraud, one count of health care fraud, and is scheduled to be sentenced on July 9.
This case was investigated by the FBI, Office of the Nevada Attorney General, Health and Human Services Office of Inspector General, Department of Labor Office of Inspector General, Food and Drug Administration Office of Criminal Investigations, and the United States Postal Inspection Service, and prosecuted by Assistant U.S. Attorney Crane M. Pomerantz and Mark N. Kemberling, who was designated as a Special Assistant U.S. Attorney on this case and is Chief Deputy Nevada Attorney General.
According to a recent report by the Inspector General for the U.S. Department of Health and Human Services, for every dollar the Departments of Justice and Health and Human Services have spent fighting health care fraud, they have returned an average of nearly eight dollars to the U.S. Treasury, the Medicare Trust Fund and others. To learn more or to report Medicare fraud, go to http://www.stopmedicarefraud.gov/
Eight Arrested on Federal Steroid and Prescription Narcotic Distribution ChargesRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that on April 29 and 30, the FBI, DEA, and HSI, working with the support of the U.S. Marshals Service and the U.S. Postal Inspection Service, arrested eight individuals as part of an Organized Crime Drug Enforcement Task Force (“OCDETF”) investigation dubbed “Operation Juice Box.” The arrests culminated a long-term investigation into steroid and prescription pill distribution by multiple individuals, including a Newtown Police sergeant, a Newtown Police dispatcher and a Connecticut Judicial Marshal. The investigation, which included the use of wire and electronic surveillance for nearly two months, also revealed that members of the conspiracy allegedly imported steroids from China.
The following individuals were arrested on a federal complaint charging them with conspiracy to distribute, and distribution of, various controlled substances including steroids and oxycodone:
STEVEN SANTUCCI, 38, of Waterbury, and a Sergeant with the Newtown Police Department,
ALEX KENYHERCZ, 28, of Ansonia,
MARK BERTANZA, 33, of Shelton,
JASON CHICKOS, 46, of Bridgeport, and a civilian dispatcher with the Newtown Police Department,
FRANK PECORA, 53, of Derby,
JEFFREY GENTILE, 33, of Ansonia, and a Judicial Marshal with the State of Connecticut,
STEVEN FERNANDES, 54, of Southington,
MICHAEL D. MASE, 32, of Sherman
As alleged in the government’s complaint affidavit, which was unsealed in court on April 30, BERTANZA was a steroid distributer who obtained his steroids from KENYHERCZ. Wiretap interceptions over cellular telephones used by BERTANZA and KENYHERCZ, along with physical surveillance of various steroid sales, revealed that SANTUCCI was supplying steroids to KENYHERCZ. Through the investigation, agents learned that SANTUCCI has been receiving shipments of steroids and related materials from China since 2011 and has been manufacturing and distributing wholesale quantities of steroids. SANTUCCI frequently used an application called WhatsApp to communicate with his customers. CHICKOS, MASE and FERNANDES were SANTUCCI’s steroid customers who, in turn, regularly distributed the steroids in smaller quantities to their own customers. KENYHERCZ distributed quantities of steroids and prescription pills (including Roxicodone, Oxycodone, Suboxone and Opana). GENTILE is alleged to be a steroid distributer, and PECORA is alleged to be a prescription pill distributer.
During the course of the investigation, law enforcement officers seized hundreds of vials of steroids, approximately 600 grams of raw testosterone powder, approximately 350 grams of powder cocaine, and four long guns.
“The international importation and sale of mass quantities of steroids in our communities is a serious offense that raises significant public health concerns,” stated U.S. Attorney Daly. “I thank the agents and officers who have dedicated themselves to this difficult case. Through their hard work, they have identified and arrested the source of these steroids, thus preventing further harm to the community.”
“The top criminal investigative program for the FBI is public corruption matters,” stated FBI Special Agent in Charge Patricia M. Ferrick. “When law enforcement officers are involved in criminal activity, it brings a particular sense of urgency to the investigation. While disconcerting, this matter involving a Newtown Police Officer, a Connecticut Judicial Marshal, a Newtown Public Safety Dispatcher and others is not indicative of the fine work and dedication to public service exhibited by the vast majority of those individuals working within the criminal justice and law enforcement community. This ongoing investigation is being conducted in close collaboration between the FBI, the DEA, DHS, the U.S. Marshals Service, the U.S. Postal Inspection Service, and the Newtown Police Department.”
“DEA and our federal, state, and local law enforcement partners are committed to investigating steroid trafficking organizations. We follow these investigations wherever they lead us – and in this case to a police officer,” stated DEA Special Agent in Charge Michael J. Ferguson. “Wearing a shield does not give you a free pass to peddle this poison in our neighborhoods or to our families. This type of criminal behavior does not represent the fine work and dedication to public service that is exhibited by the vast majority of law enforcement officers.”
“These arrests illustrate the ability of our law enforcement partners such as the U.S. Attorney’s Office and other federal agencies to leverage their individual resources to work together and achieve justice,” said Bruce Foucart, HSI Special Agent in Charge of New England. “HSI continues to use its unique customs and immigration authorities to attack and dismantle these types of organizations, and will aggressively pursue leads, regardless of where that information may lead us.”
SANTUCCI, KENYHERCZ, BERTANZA, CHICKOS, GENTILE, FERNANDES and MASE have been released on bond. PECORA remains in federal custody pending a detention hearing on May 5, 2015.
SANTUCCI, BERTANZA, GENTILE, MASE, FERNANDES and CHICKOS, are charged with conspiracy to distribute steroids, which carries a maximum term of imprisonment of 10 years and a fine of up to $500,000. PECORA and KENYHERCZ and charged with conspiracy to distribute oxycodone, which carries a maximum term of imprisonment of 20 years and a fine of up to $1 million.
In announcing these charges, U.S. Attorney Daly stressed that a complaint is only a charge and not evidence of guilt. Each defendant is entitled to a fair trial in which it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt.
This matter is being prosecuted by Assistant U.S. Attorneys Rahul Kale and Robert M. Spector.
Durable Medical Equipment Supplier to Pay United States $300,000 to Resolve False Claims AllegationsRead the Press Release
WASHINGTON – American Rehab Equipment Company, formerly known as Patients First Medical Equipment Company, has agreed to pay the United States and the District of Columbia a total of $300,000 to settle allegations that it violated the False Claims Act by overcharging the District of Columbia Medicaid Program for custom power wheelchairs provided to residents of nursing facilities.
The settlement was announced today by Acting U.S. Attorney Vincent H. Cohen, Jr.; Nick DiGiulio, Special Agent in Charge for the Inspector General’s Office of the U.S. Department of Health and Human Services in the region including Washington, D.C., and Daniel W. Lucas, Inspector General for the District of Columbia.
The settlement resolves allegations by the United States and the District of Columbia that American Rehab Equipment Company (American Rehab) submitted invoices to the Medicaid program for reimbursement for custom power wheelchairs that were inflated by approximately 20 percent greater than the amount actually paid by the durable medical equipment supplier. These activities allegedly took place between 2004 and 2008.
An investigation determined that American Rehab reported its costs to Medicaid at retail cost, and did not disclose that it was actually paying lower wholesale prices including “special” customer discounts from its vendors. This was confirmed through documents obtained by the investigative team demonstrating that American Rehab specifically instructed its vendors to provide written quotes using “retail” prices only. Those “retail” quotes were then submitted to Medicaid to show the price paid by American Rehab, when in fact it was paying much less.
“Every dollar that taxpayers spend on fraudulent Medicaid claims is one less dollar that can be spent on the legitimate health care needs of our most vulnerable citizens,” said Acting U.S. Attorney Cohen. “Companies that overcharge federal health care programs pad their bottom lines at the expense of public health. We will fight to protect every penny of taxpayer money from waste, fraud, and abuse.”
“My Office is working diligently to ensure the District not only recoups payments for fraudulent billing from Medicaid providers but, in particular, my Medicaid Fraud Control Unit dedicates themselves to the health and welfare of District residents by continually working to ensure that the needs of the District and its residents are met by investigating and prosecuting fraudulent providers and ensuring that victims of abuse and neglect are fought for,” said Inspector General Lucas. “This settlement is just one example of how my Office will continue its resolve to positively impact the District and its residents.”
The False Claims Act prohibits the submission of false claims for government money or property and allows the United States to recover treble damages and penalties for a violation. The United States will distribute $100,000 of the $300,000 amount to the District of Columbia to reimburse D.C. Medicaid for the overcharge.
The settlement is the result of a joint investigation involving the U.S. Attorney’s Office for the District of Columbia, the U.S. Department of Health and Human Services Office of the Inspector General, and the District of Columbia Office of the Inspector General, Medicaid Fraud Control Unit. The claims settled by this agreement are allegations only, and there has been no determination of liability.
Doctor Pleads guilty to Illegally Prescribing Oxycodone, Defrauding Government ProgramsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration for New England, and Phillip Coyne, Special Agent in Charge for the U.S. Department of Health and Human Services, Office of Inspector General, today announced that on May 1, 2015, DR. JOHN KATSETOS, 53, of Fairfield, waived his right to indictment and pleaded guilty in Hartford federal court to narcotics distribution and health care fraud offenses stemming from his illegal dispensation of oxycodone and other controlled substances well outside of the scope of accepted medical practice.
“We are committed to uncovering and prosecuting those involved in narcotics distribution regardless of their station in life, and especially anyone who uses their medical license to flood the community with controlled substances that feed addictions and have a corrosive effect on our communities,” said U.S. Attorney Daly.
“The success of this investigation was a direct result of the hard work and dedication of the DEA New Haven Tactical Diversion Squad and our federal, state, and local law enforcement partners,” said DEA Special Agent in Charge Ferguson. “The DEA New England Field Division is committed to investigating those individuals who engage in the illicit distribution of prescription pain killers.”
According to court documents and statements made in court, KATSETOS practiced medicine for more than 20 years, most recently out of offices located at 90 Morgan Street in Stamford and 353 Bridgeport Avenue in Milford. In pleaded guilty, KATSETOS admitted that he failed to perform rudimentary examinations of patients to justify the controlled substances he prescribed, and that he had been warned by a doctor and several pharmacists, some of whom stopped filling his prescriptions, that he should stop prescribing oxycodone and other narcotic pain medications to certain patients who showed obvious signs of addiction. The investigation, which included the use of undercover law enforcement personnel, showed that KATSETOS ignored the warnings and continued to prescribe controlled substances, including oxycodone, to these patients outside of the usual course of professional practice and not for a legitimate medical purpose.
KATSETOS also acknowledged that he saw multiple patients at once and billed Medicare and Medicaid for individual visits for each of those patients.
“As the number of Medicare beneficiaries continues to increase, it is paramount that we work hard to expose unscrupulous providers who treat government health care programs as their personal piggy banks,” said U.S. Attorney Daly.
KATSETOS pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute narcotics, and one count of health care fraud. When he is sentenced by U.S. District Judge Vanessa L. Bryant, KATSETOS faces a maximum term of imprisonment of 30 years and fine of up to $1.25 million.
If the terms of the plea agreement are accepted by Judge Bryant, KATSETOS faces between 48 months and 84 months of imprisonment, $497,789 in restitution, and forfeiture of $550,000, which represents the value of his medical practice.
A sentencing date has not been scheduled.
KATSETOS was arrested on July 1, 2014, and is released on a $1 million bond.
This matter is being investigated by the DEA’s New Haven Tactical Diversion Squad and the Office of Inspector General of the U.S. Department of Health and Human Services, with the assistance of the State of Connecticut Department of Consumer Protection Drug Control Division, and several local police departments. The case is being prosecuted by Assistant U.S. Attorneys Rahul Kale and Alina Reynolds.
U.S. Attorney Daly encouraged individuals who suspect health care fraud to report it by calling 1-800-HHS-TIPS.
Detroit man gets federal prison time for Charleston heroin salesRead the Press Release
CHARLESTON, W.Va. – Terrell Montaie, 31, of Detroit, Michigan, was sentenced today to 30 months in federal prison followed by three years of supervised release, United States Attorney Booth Goodwin announced. United States District Judge Thomas E. Johnston imposed the sentence
Montaie previously pleaded guilty in January 2015, admitting that in March 2014, he sold heroin to a confidential informant working with the Kanawha County Sheriff’s Department. The sale occurred at a residence on Kay Lane in Charleston. Montaie admitted that he had been selling heroin in the Charleston area for a four-month period prior to the March 2014 controlled buy.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of heroin and prescription drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal heroin and pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers in communities across the Southern District.
Detroit Man Sentenced to 6+ Years in Federal Heroin CaseRead the Press Release
HUNTINGTON, W.Va. – A Detroit man who participated in a heroin distribution conspiracy in 2013 was sentenced today to 78 months in federal prison, United States Attorney Booth Goodwin announced. Bryant Donavan Taylor, 36, pleaded guilty in February 2015 to aiding and abetting the possession of 100 grams or more of heroin with the intent to distribute. Chief United States District Judge Robert C. Chambers imposed today’s sentence.
On August 21, 2013, agents with the Huntington Violent Crimes and Drug Task Force executed a search warrant at a residence in the 200 block of 8th Ave. in Huntington. The residence was rented by another man and used by Taylor and others to distribute heroin. During the search, Taylor and two other men were present, and agents seized 134.8 grams of heroin along with various items of drug paraphernalia.
Taylor admitted that he jointly possessed the heroin with a partner for distribution in and around the Huntington area.
The Huntington FBI Drug Task Force conducted the investigation. Assistant United States Attorney Joseph F. Adams handled the prosecution.
This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
Derby Man Pleads Guilty to Using Internet at Church to Distribute Child PornRead the Press Release
WICHITA, KAN. – A Derby man pleaded guilty Monday to using Internet service at the church he attended to distribute child pornography, U.S. Attorney Barry Grissom said.
Delmas E. Rich, 50, Derby, Kan., pleaded guilty to one count of distributing child pornography. In his plea, he admitted he used Internet service at his church, Temple Baptist Church in Wichita, and his work, Alarm Security Specialists in Viola, Kan., because he had no Internet service at home. On Jan. 18, 2015, a Wichita police detective downloaded child pornography from Rich’s computer over the Internet using a file-sharing service.
Sentencing is set for July 20. He faces a penalty of not less than 5 years and possibly as much as 30 years and a fine up to $250,000.
Grissom commended the Wichita Police Department, the Kansas Internet Crimes Against Children (ICAC) Task Force, Homeland Security Investigations and Assistant U.S. Attorney Jason Hart for their work on the case.
Derby Line Woman to Plead Guilty to Fraud and False Tax FilingRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that it filed charges today against Amy C. Fletcher, of Derby Line, Vermont, alleging fraud and a false tax filing. According to the charge, while working for Derby Line Ambulance during 2009-2012, Fletcher diverted money from the company to pay personal expenses, and also filed a false personal tax return in 2011.
The charge alleges that Fletcher “engaged in an ongoing practice of diverting funds from DLA for personal use, paying personal credit cards and home and car loans.” The charge further alleges that over 400 checks were drawn on DLA’s business accounts “made payable to Amy C. Fletcher and others for her benefit. Many of the transfers paid down outstanding balances on 14 credit cards maintained by Fletcher. Such illicit transfers totaled over $250,000.” According to the separate tax charge, Fletcher “willfully made and subscribed a 2011 U.S. Individual Income Tax Return (Form 1040), which was verified by a written declaration,” which understated her actual income and was false.
Also filed today is a Plea Agreement under which Fletcher agrees to plead guilty to both charges. A plea hearing has yet to be scheduled.
The case was investigated by the Federal Bureau of Investigation, and the Internal Revenue Service, Criminal Investigation Division. The maximum possible penalty for the two offenses is 20 years in prison. Fletcher is represented by attorney David Sleigh of St. Johnsbury. The United States is represented by Assistant U.S. Attorney William Darrow.
Deirdre Hey of Winooski Sentenced for Conspiracy to Distribute Controlled Substances and Maintaining A Residence for the Distribution of Controlled SubstancesRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Deirdre Hey, 48, of Winooski, Vermont was sentenced today for conspiracy to distribute heroin and crack cocaine, and maintenance of a residence for the distribution of controlled substances. Chief U.S. District Judge Christina Reiss sentenced Hey to 33 months’ imprisonment to be followed by a three year term of supervised release.
According to court records, Hey participated in the distribution of crack cocaine and heroin in the Burlington area from December 2013 to January 2014. During this timeframe, she and others used her home on LaFountain Street in Winooski for the packaging and distribution of heroin and cocaine base. Also according to court records, Hey acquired firearms in exchange for drugs and facilitated the transfer of firearms to others. Hey was arrested on May 9, 2014 and has been detained since that time.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Vermont State Police, and the Winooski Police Department. The government was represented by Assistant U.S. Attorneys Nancy Creswell and Kevin Doyle. Deirdre Hey was represented by Frank J. Twarog, Esq.
Defendant Admits to Murder on Nez Perce Indian ReservationRead the Press Release
COEUR D'ALENE - Raymond Antoine Scott, Jr., 38, of Lapwai, Idaho, pleaded guilty today to second degree murder, U.S. Attorney Wendy J. Olson announced. Scott was indicted by a federal grand jury in Coeur d'Alene on March 18, 2014.
According to the plea agreement, Scott admitted that on July 9, 2013, he intentionally struck William Reich, who was known as Bear on the reservation, on the left side of the head with a sharp object. That blow resulted in a fracture to Reich's skull that damaged his brain and caused his death. After the defendant struck Reich, he went to several residences where he admitted to killing Reich. The case was in federal court because the defendant and the victim are both enrolled members of the Nez Perce Indian Tribe, and the crime occurred on the Nez Perce Indian Reservation.
The charge of second degree murder is punishable by up to life in prison, a maximum fine of $250,000.00, and up to five years of supervised release.
Sentencing is set for July 28, 2015, before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Coeur d'Alene.
“While no criminal prosecution can bring back the life of William Reich, we are hopeful that bringing his murderer to justice will provide the family and community an opportunity to heal,” said Olson.
The case was investigated by Federal Bureau of Investigation (FBI), Nez Perce Tribal Police and the Lewiston Police Department.
Carbondale Man Charged with Cocaine OffenseRead the Press Release
On April 23, 2015, Ryan L. Gibbs, a/k/a “Blood,” 34, of Carbondale, was charged by indictment with possession with intent to distribute cocaine, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
The offense occurred on September 16, 2014, in Jackson County. Gibbs made his initial appearance in federal court on May 4, 2015. He was ordered held without bond, pending a July 6, 2015, jury trial.
The cocaine offense carries a penalty of up to 20 years in federal prison, to be followed by 3 years’ supervised release, and a fine of $1,000,000.
Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
The ongoing investigation is being conducted by the Southern Illinois Enforcement Group, the Jackson County Sheriff’s Office, the Carbondale Police Department, and the Illinois Department of Corrections. The Jackson County State’s Attorney’s Office also assisted in the investigation.
The case is assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
Burlington, WV sex offender sentenced for failure to update registrationRead the Press Release
MARTINSBURG, WEST VIRGINIA – Donald W. Patterson, 41, of Burlington, West Virginia, was sentenced today to 19 months in prison for failing to update his sex offender registration when he moved from West Virginia to Maryland, United States Attorney William J. Ihlenfeld, II, announced.In 1993, Patterson was convicted of “Statutory Rape” in Tennessee. As a result of that conviction, Patterson is required to register as a sex offender. An investigation by the United States Marshals Service and the West Virginia State Police revealed that in the fall of 2013, Patterson moved across state lines from West Virginia to Maryland without updating his sex offender registration status.
Patterson pled guilty in January 2015 to one count of “Failure to Register and Update Registration as a Sex Offender – SORNA.”
Assistant U.S. Attorney Stephen Vogrin prosecuted the case on behalf of the government.
Chief U.S. District Judge Gina M. Groh presided.
Buffalo Man Pleads Guilty to Drug ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that David Varner, 56, of Buffalo, NY, pleaded guilty to maintaining a drug involved premises before Senior U.S. District Judge William M. Skretny. The charge carries a maximum penalty of 20 years in prison and a $500,000 fine.
Assistant U.S. Attorney Timothy C. Lynch, who is handling the prosecution, stated that between the summer of 2012 and April 3, 2013, the defendant allowed his co-defendants to utilize his apartment, which was located on the grounds of the Perry Housing Projects, to manufacture, possess and distribute crack cocaine. As part of this conspiracy, a co-defendant maintained several locations on the grounds of the Perry Housing Projects in Buffalo, including Varner’s apartment.On April 3, 2013, law enforcement officers executed search warrants at 124 Fulton Street and 305 Perry Street during which they recovered over 300 grams of cocaine base and 700 grams of powered cocaine as well as a firearm.
Varner was arrested in April 2013 along with 11 others. Defendants Melvin Tucker, Nannette Brown, Brandon Atkins, Eric Ross, and Phayon Redmond have also been convicted. Charges are pending against Tyshawn Bradley, Dallas McLamore, Tashawn Gay, David Varner, Latifah Donaldson, and Tara Robinson. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The plea is the culmination of an investigation on the part of the Federal Bureau of Investigation Safe Streets Task Force, the New York State Police, under the direction of Major Matthew Renneman, and the Buffalo Police Department, under the direction of Commissioner Daniel Derenda.
Buffalo Man Pleads Guilty to Drug ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Charles Humphrey, 46, of Buffalo, NY, pleaded guilty to conspiracy to distribute over 500 grams of cocaine before U.S. District Judge Richard J. Arcara. The charge carries a mandatory minimum penalty of five years, a maximum of 40 years and a $5,000,000 fine.
Assistant U.S. Attorney George C. Burgasser, who is handling the case, stated that the defendant, along with co-defendants, distributed multiple quantities of cocaine between 2009 and January 2010. In addition, Humphrey sold a quantity of cocaine to a confidential source on January 13, 2010.
The defendant was arrested along with four others. Humphrey is the fourth defendant to be convicted.
The plea is the culmination of any investigation by the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Division.
Sentencing is scheduled for August 17, 2015 at 1:00 p.m. before Judge Arcara.
Box Elder Man Gets 20 Years in Prison for Strangulations, Rapes, Stabbing and AssaultsRead the Press Release
GREAT FALLS – Dallas Lawrence, 33, of Box Elder, Montana, was sentenced today to twenty years in prison after a Montana jury convicted him of seven felonies, including two rapes, two strangulations, two assaults with intent to commit murder and assault with a dangerous weapon. In addition to the twenty-year prison sentence, U.S. District Judge Brian Morris also sentenced Lawrence to five years of supervised release. There is no parole in the federal system.
Evidence presented at trial by Assistant United States Attorney Laura Weiss showed that Lawrence and the victim were in a verbally and physically abusive relationship. In September 2013, Lawrence stabbed the victim in her calf. She was found walking around Havre, Montana, and was taken to the ER, where medical personnel observed the stab wound. The victim told medical personnel that her boyfriend had stabbed her in the leg and that she was in an abusive relationship. She said Lawrence had also tried to break her arms and legs to keep her from leaving.
The evidence also showed that in March 2014, Lawrence strangled the same victim with a humidifier cord after asking her, “How do you want me to do you in, fast or slow?” The victim was able to slip two fingers under the cord, but she still couldn’t breathe. She managed to escape the cord. Lawrence continued to control the victim after that by making her stay in her room, and dictating where she went and who she was around. He kept the keys to the car and made threats to her about trying to leave him.
In May 2014, the defendant again strangled the victim after beating her. He asked her again if she wanted to die fast or slow. He gripped both hands around her neck and began to strangle her. She tried to slide away, but he kept strangling her to the point that she blacked out. Lawrence later told her he thought he had killed her and was going to hide her body in a crawlspace until he could find a place to bury it. During the same time period in early summer 2014, Lawrence forced the victim to have sex with him on two occasions.
The case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney Laura B. Weiss prosecuted the case.
Atwater Resident Pleads Guilty to Student Aid Fraud and Identity TheftRead the Press Release
FRESNO, Calif. — Sherise Lanelle Woolridge, 33, of Atwater, pleaded guilty today to mail fraud and aggravated identity theft for a scheme to obtain student aid grant funds and loans, United States Attorney Benjamin B. Wagner announced.
According to court documents, Woolridge participated in a scheme to defraud the United States Department of Education of student aid grants and loans. She submitted false financial aid applications to Axia College at the University of Phoenix and Capella University on behalf of students who did not intend to attend either school. She used stolen or wrongfully obtained personal identifying information for a person who did not know her identity would be used to apply for college financial aid. As a result of the scheme to defraud, more than $200,000 in grants and loans were disbursed.
This case is the product of an investigation by the U.S. Department of Education Office of Inspector General. United States Attorney Mark J. McKeon is prosecuting the case.
Woolridge is scheduled to be sentenced by United States District Judge Lawrence J. O'Neill on August 3, 2015. Woolridge faces a maximum statutory penalty of 20 years in prison and a $250,000 fine for mail fraud, and a mandatory sentence of two years in prison for aggravated identity theft. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Arizona Man Sentenced on Tax ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y.- U.S. Attorney William J. Hochul, Jr. announced today that Joseph DeRomanis, 39, of Phoenix, Arizona, who was convicted of tax evasion by filing false tax returns, was sentenced to six months home detention and five years probation by Chief U.S. District Judge Frank P. Geraci. The defendant was also ordered to pay restitution totaling $186,284 to the Internal Revenue Service.
Assistant U.S. Attorney John J. Field, who handled the case, stated that DeRomanis filed false tax returns for tax years 2004 through 2007. The returns resulted in the defendant obtaining fraudulent income tax refunds totaling $132,885.
The sentencing is the culmination of an investigation by Special Agents of the Internal Revenue Service, Criminal Investigation Division, under the direction of Special Agent-In-Charge Shantelle P. Kitchen.
Appalachian Community Bank Vice President Sentenced to Federal Prison for Bank FraudRead the Press Release
GAINESVILLE, Ga. - William R. Beamon, Jr., a/k/a “Rusty” Beamon has been sentenced to three years, six months in federal prison for defrauding Appalachian Community Bank, in Ellijay, Georgia. Beamon was convicted by a jury of five counts of bank fraud on December 19, 2014, after a five-day trial.
“Bank fraud is a critical problem that has hit Georgia especially hard,” said Acting United States Attorney John A. Horn. “Georgia leads the nation in bank failures since 2008, with 88 banks failing—including Appalachian Community Bank, the bank this defendant defrauded. These failures significantly affect the economy, making these cases important to safeguard the nation’s financial health.”
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “The sentencing of Mr. Beamon will hold him accountable for his actions but, unfortunately, will not be able to restore the bank in which he worked for and betrayed. Bank fraud is not a victimless crime and the FBI will continue to provide extensive resources in investigating those who engage in such criminal acts.”
“Former banker Beamon, of TARP applicant Appalachian Community Bank, was sentenced to three years, six months in federal prison for raiding the bank’s inventory of foreclosed real estate when the bank was seeking a TARP bailout,” said Christy Romero, Special Inspector General for TARP (SIGTARP). “A federal jury convicted Beamon of bank fraud. Beamon fraudulently rented out bank-owned properties and collected rent payments for his own use, and he caused the bank to sell properties to his wife and to a shell company he controlled at severely discounted prices—prices well below what others were willing to pay. He claims he did it to save the bank, but these transactions put the bank in jeopardy, and Beamon profited. SIGTARP and our law enforcement partners will shut down TARP-related fraud, swindling, and self-dealing and ensure that perpetrators pay for their crimes.”
“The sentencing of Mr. Beamon reflects fitting punishment for an individual who abused his position of trust at Appalachian Community Bank for personal gain and caused irreparable harm to the institution. The Federal Deposit Insurance Corporation Office of Inspector General is firmly committed to helping ensure integrity in our nation’s banks. We value the cooperative working relationships with our law enforcement partners that bring about such successful outcomes,” said Fred W. Gibson, Acting Inspector General, FDIC.
According to Acting U.S. Attorney Horn, the charges, and other information presented in court: Beamon was Vice President of Appalachian Community Bank in Ellijay, Ga. Due to its poor financial condition, Appalachian was forced to close on March 19, 2010, and the FDIC was appointed receiver.
Beamon was in charge of Appalachian’s foreclosure liquidation department. In 2009, he represented to a real estate agent that he personally owned a house in Cumming, Georgia. Beamon hired that agent to market and lease the property on his behalf. In truth, however, the property was owned by Appalachian and was part of the bank’s foreclosure inventory. Beamon’s real estate agent found someone to lease the property and negotiated a lease on Beamon’s behalf. Beamon then deposited into his personal bank account more than $20,000 in rent payments and security deposits that he obtained by leasing out the bank’s property as if he were the owner. Beamon also caused Appalachian to sell bank-owned properties to his wife and to a shell company that he owned—all at prices that were substantially below what other buyers were ready, willing, and able to pay the bank.
Beamon, 54, of Atlanta, Georgia, was sentenced to three years, six months in federal prison, to be followed by five years on supervised release following his prison term, a $500 special assessment, and forfeiture of all real properties involved in the offense.
This case was investigated by the FDIC Office of Inspector General; the Department of Treasury, Special Inspector General Troubled Asset Relief Program; and the Federal Bureau of Investigation.
Assistant United States Attorneys J. Russell Phillips, Douglas W. Gilfillan, and Jenny R. Turner prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Gainesville Division is http://www.justice.gov/usao-ndga.
Alleged Kidnapper IndictedRead the Press Release
PHILADELPHIA - Khayree Gay, 31, of Philadelphia, PA, was charged by indictment, on April 30, 2015, with attempted Hobbs Act Robbery and kidnapping, announced United States Attorney Zane David Memeger.
If convicted the defendant faces a statutory maximum sentence of life in prison.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Philadelphia Police Department. It is being prosecuted by Assistant United States Attorney Jeanine Linehan.
An Indictment or Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
2 May 2015
Ft. Thomas X-Ray Technician Pleads GuiltyRead the Press Release
COVINGTON — An X-ray technician from Ft. Thomas, Ky., has admitted in federal court to defrauding state and federal health care programs out of thousands of dollars.
On Friday, Robert Moyer pleaded guilty today to health care fraud, before U.S. District Judge Amul Thapar.
According to court records, starting in June 2010 and continuing until December 2010, Moyer knowingly allowed an unlicensed individual to administer x-rays to Medicare and Medicaid patients from Kentucky and Ohio. He then falsified documentation to conceal who performed the x-ray service. Under federal law, health care benefit programs only reimburse medical professionals for services conducted by a licensed professional.
In total, Moyer filed more than 3,800 fraudulent claims worth $112,173.93.
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky; Jack Conway, Kentucky Attorney General; Sylvia Mathews Burwell, , Department of Health and Human Services, Office of Inspector General, Office of Investigations; and Mike DeWine, Ohio Attorney General, jointly made the announcement.
The investigation was conducted by the Office of the Kentucky Attorney General, Medicaid Fraud and Abuse Control Unit; Department of Health Human Services, Office of Inspector General, Office of Investigations and the Ohio Attorney General’s Office.
Moyer will appear for sentencing on July 16, 2015 at 10:00 a.m. He faces a maximum of 10 years in prison. However, the Court must consider the U.S. Sentencing Guidelines and the applicable statutes before imposing a sentence.
1 May 2015
West Yarmouth Man Sentenced for Child PornographyRead the Press Release
BOSTON – Adam Polakowski, 46, of West Yarmouth, Mass., was sentenced yesterday by U.S. District Court Senior Judge Mark L. Wolf to five years in prison, six years of supervised release, and ordered to pay restitution to four victims. In January 2015, Polakowski pleaded guilty to distribution and possession of child pornography.
On Jan. 14, 2014, law enforcement officers executed a federal search warrant at Polakowski’s West Yarmouth residence. Numerous items, including a desktop computer and a thumb drive, were seized and a search revealed more than 800 images of child pornography, including photographs depicting minors between 4 and14 years of age engaged in sexually explicit activity. Additionally, during the search, several pairs of girls’ underwear were found in Polakowski’s residence where he lived alone.
During an interview with law enforcement officers, Polakowski admitted to using his computer to distribute and receive child pornography. Specifically, Polakowski admitted that he had gone to local beaches and secretly taken photos of young girls which he posted on the Internet.
United States Attorney Carmen M. Ortiz; Bruce M. Foucart, Special Agent in Charge of Homeland Security Investigations in Boston; and Yarmouth Police Chief Frank Frederickson, made the announcement today. The case was prosecuted by Assistant U.S. Attorney David G. Tobin of Ortiz’s Major Crimes Unit.
Warwick Man Convicted in Federal Court of Masterminding Bank Fraud Conspiracy, Aggravated Identity Thefts, Conspiracy to Pass Counterfeit CurrencyRead the Press Release
PROVIDENCE, R.I. – A federal court jury in Providence today convicted David Alcantara, 32, of Warwick, of being the mastermind behind an elaborate conspiracy to defraud two area banks of nearly $600,000 by using stolen personal identifying information of several unsuspecting individuals, announced United States Attorney Peter F. Neronha and Ted A. Arruda, Resident Agent in Charge of the Providence Office of the U.S. Secret Service.
The jury also convicted Alcantara of leading a conspiracy to convert counterfeit $100 bills into real American dollars by making small retail purchases with bogus $100 bills and receiving cash back in Rhode Island, Massachusetts and Connecticut and by returning items purchased with counterfeit $100 bills in exchange for real cash.
The week-long trial concluded today with the jury returning after deliberating for two hours with guilty verdicts, convicting Alcantara of conspiracy to commit bank fraud, eight counts of aggravated identity theft and conspiracy to pass counterfeit money.
According to the government’s evidence, in December 2009 and January 2010, Alcantara’s schemes resulted in the transfer of over $600,000 from bank accounts of legitimate bank customers into accounts fraudulently created as part of the defendant’s scheme with the use of several individuals’ stolen identities. Money was then withdrawn from the fraudulent accounts in the form of cashier’s checks.
In one scheme, Alcantara provided a co-conspirator stolen identifying information belonging to an unsuspecting small business owner in Harrisburg, Pennsylvania. The co-conspirator used that information at a bank branch office in Rhode Island to request a transfer of $250,000 from the business account into a fraudulent account which was previously opened at the same bank. The account was opened using stolen identifying information of an individual who is deceased.
A bank employee was among the co-conspirators who assisted Alcantara in the scheme by gaining approval of a bank supervisor for the transfer of funds from the legitimate business account into the fraudulent account, knowing that the identifying information used was stolen. Once the transfer was completed, money was withdrawn from various branch bank offices around Rhode Island in the form of cashier’s checks by individuals using the deceased man’s stolen identifying information.
In a second scheme, Alcantara provided several co-conspirators with stolen identifying information of unsuspecting individuals which he instructed them to use to establish fraudulent bank accounts at several branch offices of the same bank. Alcantara also provided the co-conspirators with stolen identifying information of legitimate owners of existing accounts at the same bank and instructed his co-conspirators to transfer funds from the legitimate accounts into the fraudulent accounts.
According to the government’s evidence, at the same time that Alcantara was affecting the bank fraud schemes, he reached out to an individual he thought could assist him in obtaining fraudulent Massachusetts drivers licenses. The individual he reached out to was in fact an undercover DEA agent. The DEA agent, working in conjunction with U.S. Secret Service Agents who were investigating Alcantara and the bank fraud schemes and the passing of bogus $100 bills, recorded several conversations he had with Alcantara as he attempted to secure the fraudulent IDs.
Alcantara, who had been free on unsecured bond since his arrest and initial court appearance in February 2014, was ordered detained today by U.S. District Court Judge John J. McConnell, Jr. after the jury returned its verdict. Alcantara is scheduled to be sentenced on August 4, 2015.
Conspiracy to commit bank fraud is punishable by statutory penalties of up to 30 years imprisonment and a fine of up to $1,000,000. Aggravated identity theft is punishable by a mandatory sentence of 2 years imprisonment and a fine of up to $250,000, consecutive to all other sentences imposed. Conspiracy to pass counterfeit money is punishable by a statutory penalty of up to 5 years imprisonment and a fine of up to $250,000.
Three individuals identified as co-conspirators in these matters previously pleaded guilty and scheduled to be sentenced.
Todd Quinter, 37, of Attleboro, Mass., pleaded guilty on March 28, 2012, to one count each of conspiracy to commit bank fraud, bank fraud and identity theft. He is scheduled to be sentenced on May 26, 2015.
Yoryis Luciano, 28, of Providence, the person identified as a bank employee who assisted in the first scheme, pleaded guilty on February 27, 2012, to one count each of conspiracy to commit bank fraud and bank fraud. He is scheduled to be sentenced on May 26, 2015.
Zizi Stevens, 29, of Providence, pleaded guilty on April 5, 2012, to one count each of conspiracy to commit bank fraud, bank fraud and identity theft. He failed to appear in court for sentencing on June 26, 2012. An arrest warrant has been issued for the defendant, who is believed to have fled the country.
The case is being prosecuted by Assistant U.S. Attorneys Sandra R. Hebert and Lee H. Vilker.
Prosecutors were assisted at trial by paralegal Kellyann Anderson.
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To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]United States Attorney William C. "Bill" Killian Compliments Agencies' Actions in Barge RemovalRead the Press Release
CHATTANOOGA, Tenn. – The U.S. Attorney for the Eastern District of Tennessee issued a statement today about the removal of the Casey Barge (barge) from the Chattanooga waterfront near downtown Chattanooga. The barge, which has been a source of contention for more than a year, left Chattanooga on Thursday, April 30, 2015, to be transported to Mobile, Alabama.
“The recent removal of the Casey barge was a result of cooperative efforts by several federal and state agencies. Through the diligent efforts of Assistant U.S. Attorneys Kent Anderson and Kenny Saffles, who worked closely with trustee Jerry Farinash, Assistant U.S. Trustee Kim Swafford, the Army Corps of Engineers, the U.S. Coast Guard, and the Tennessee Valley Authority, this long-time eye sore is now gone from the city of Chattanooga,” said U.S. Attorney William C. “Bill” Killian. Killian added, “The agencies involved all worked together to protect the environment and the Chattanooga waterfront from a potential disaster. We wish to thank them for their efforts to expedite the removal of the barge consistent with safety, law and regulations.”
Owners of the barge have been involved in Chapter 11 Bankruptcy proceedings for several years. In February 2015, Nashville District Counsel for the U.S. Army Corps of Engineers (Corps) contacted the U.S. Attorney’s Office for the Eastern District of Tennessee, regarding concerns over the condition of the barge, its potential hazards to the environment and navigation on the river, and the need for its removal. Assistant U.S. Attorneys from the Eastern District of Tennessee, together with the Corps and the office of the U.S. Trustee, advocated for the appointment of a special trustee to oversee the barge owner’s estate and the disposition of the barge itself. The U.S. Bankruptcy Court appointed Chattanooga attorney Jerry Farinash to serve in this capacity.
In an effort to have the barge removed from the Chattanooga waterfront, Mr. Farinash initiated the removal process by seeing that required inspections of the barge were performed and that necessary governmental approvals regarding seaworthiness were obtained. During the process, the barge, which had partially sunk on at least one prior occasion, again took on water. Mr. Farinash arranged for the water to be pumped out and the barge raised up to an acceptable navigable level. Ultimately, Mr. Farinash obtained the required approvals and entered into a contract for permanent removal of the barge.
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US Attorney Nettles Announces Recipients of Crime Victims Awards in Observance of National Crime Victims’ Rights WeekRead the Press Release
Contact Person: Beth Drake (803) 929-3000
Columbia, SOUTH CAROLINA – On April 30, 2015, the US Attorney’s Office hosted an awards ceremony in honor of National Crime Victims’ Rights Week. U.S. Attorney William N. Nettles presented awards honoring individuals and organizations that have made outstanding contributions in support of crime victims. All of the honorees have exemplified dedication and commitment in enhancing efforts to meet crime victims where they are, and to empower crime victims as they pursue justice and recovery. Mr. Nettles stated that, “It is an honor and privilege to recognize our partners in support of the victims we serve each day”. Below are the award recipients:
Outstanding Victim Support by a Non-Governmental Agency
Charleston based office of A-21 Campaign - CaraLee Murphy, Director
Outstanding Provider Services
Medical University of South Carolina's National Crime Victims
Research and Treatment Center (NCVC)
Dr. Dean Kilpatrick, Center Director
Dr. Alyssa Rheingold, Director of Clinical Operations
South Carolina Immigrant Victims Assistance Network
Patricia Ravenhorst, Director
OUTSTANDING VICTIM SERVICES
Four Assistant U.S. Attorneys were recognized for their work and dedication in cases involving crime victims.
Nathan Williams- Charleston office
Carrie Fisher-Sherard – Greenville office
Stacey Haynes –Columbia office
William “Bill” Day- Columbia/Florence offices
National Crime Victims’ Rights week observances are held annually and are led by the Office of Victims of Crime (OVC) by promoting victims’ rights and honoring crime victims and those who advocate on their behalf. This year’s theme, Engaging Communities-Empowering Victims, highlights the diversity in our communities and focuses on partnerships to serve victims of crime.
United States Attorney’s Office District of South Carolina– National Crime Victims’ Week Awards Program
(L-R) Clarissa Whaley-Victim Witness Coordinator-USAO, Dr. Dean Kilpatrick and Dr. Alyssa Rheingold-MUSC-NCVC, Patricia Ravenhorst- SCVAN/SCIVN, CaraLee Murphy-A-21 Campaign/Charleston, United States Attorney Bill Nettles and Renee Mattox-Victim Witness Coordinator-USAO
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U.S. Will Pay $13.2 Million for Cleanup Evaluation of 16 Abandoned Uranium Mines on the Navajo NationRead the Press Release
In a settlement agreement with the Navajo Nation, the U.S. will place $13.2 million into an environmental response trust to pay for the evaluations of 16 priority abandoned uranium mines located across Navajo lands. The investigation of these sites is a necessary step before final cleanup decisions can be made. The work to be conducted is subject to the approval of the Navajo Nation as the lead agency and the Environmental Protection Agency (EPA) as the supporting agency.
“This agreement is part of the Justice Department’s increased focus on environmental and health concerns in Indian country as well as the commitment of the Obama Administration to fairly resolve the historic grievances of American Indian tribes and build a healthier future for their people,” said Assistant Attorney General John C. Cruden for the Justice Department’s Environment and Natural Resources Division. “The site evaluations focus on the mines that pose the most significant hazards and will form a foundation for their final cleanup. In partnership with our sister federal agencies, we will also continue our work to address the legacy of uranium mining on Navajo lands, including ongoing discussions with the Navajo Nation.”
“EPA is proud to help implement this historic settlement,” said Regional Administrator Jared Blumenfeld for EPA for the Pacific Southwest. “It dovetails with our ongoing activities as we work together to make real progress on the environmental legacy of uranium mining on the Navajo Nation.”
The Navajo Nation encompasses more than 27,000 square miles within Utah, New Mexico and Arizona in the Four Corners area. The unique geology of the region makes the Navajo Nation rich in uranium, a radioactive ore in high demand after the development of atomic power and weapons at the close of World War II. Approximately four million tons of uranium ore were extracted during mining operations within the Navajo Nation from 1944 to 1986. The federal government, through the Atomic Energy Commission (AEC), was the sole purchaser of uranium until 1966, when commercial sales of uranium began. The AEC continued to purchase ore until 1970. The last uranium mine on the Navajo Nation shut down in 1986. Many Navajo people worked in and near the mines, often living and raising families in close proximity to the mines and mills.
Since 2008, a number of federal agencies including EPA, the Department of Energy, the Bureau of Indian Affairs, the Department of the Interior, the Nuclear Regulatory Commission and the Indian Health Service have been collaborating to address uranium contamination on the Navajo Nation. The federal government has invested more than $100 million to address abandoned uranium mines on Navajo lands. EPA has remediated 34 homes, provided safe drinking water to 1,825 families, conducted field screening at 521 mines, compiled a list of 46 “priority mines” for cleanup and performed stabilization or cleanup work at nine mines. This settlement agreement resolves the claims of the Navajo Nation pertaining to costs of evaluations at 16 of the 46 priority mines for which no viable responsible private party has been identified.
In April 2014, the Justice Department and EPA announced in a separate matter that approximately $985 million of a multi-billion dollar settlement of litigation against subsidiaries of Anadarko Petroleum Corp. will be paid to EPA to fund the clean-up of approximately 50 abandoned uranium mines in and around the Navajo Nation, where radioactive waste remains from Kerr-McGee mining operations.
U.S. Attorney Urges Kansas Law Enforcement to Apply for Body Camera Pilot ProgramRead the Press Release
KANSAS CITY, KAN. – U.S. Attorney Barry Grissom Friday urged Kansas law enforcement agencies to consider applying for a new federal program to help equip officers with body cameras.
“I have traveled across Kansas and spoken to law enforcement and community leaders,” Grissom said. “I have heard from both groups that body cameras should be standard equipment. Both sides of this issue agree this is one of the best ways to build trust and to keep both the public and officers safe.”
Grissom was one of many federal law enforcement officials who urged the Justice Department to provide assistance to law enforcement agencies that adopt body cameras.
The Department of Justice Friday announced a $20 million Body-Worn Camera (BWC) Pilot Partnership Program to respond to the immediate needs of local and tribal law enforcement organizations. The investment includes $17 million in competitive grants for the purchase of body-worn cameras, $2 million for training and technical assistance and $1 million for the development of evaluation tools to study best practices. The pilot program is part of President Obama’s proposal to invest $75 million over three years to purchase 50,000 body-worn cameras for law enforcement agencies.
“This body-worn camera pilot program is a vital part of the Justice Department’s comprehensive efforts to equip law enforcement agencies throughout the country with the tools, support, and training they need to tackle the 21st century challenges we face,” said Attorney General Loretta E. Lynch. “Body-worn cameras hold tremendous promise for enhancing transparency, promoting accountability, and advancing public safety for law enforcement officers and the communities they serve.”
Administered by the Bureau of Justice Assistance (BJA) under the Justice Department’s Office of Justice Programs (OJP), the BWC pilot program will provide support to help law enforcement agencies develop, implement and evaluate body-worn camera programs across the United States.
“Body-worn camera technology is a valuable tool for improving police-citizen relationships,” said Director Denise O’Donnell of the Bureau of Justice Assistance. “BJA is committed to helping law enforcement agencies identify the safest and most effective methods for deploying this technology and addressing factors such as privacy, archiving and legal regulations surrounding its use. BJA stands by to guide agencies through what can be a complex process toward more successful adoption of the technology.”
The Justice Department expects to provide 50 awards to law enforcement agencies, with about one-third of the grants directed toward smaller law enforcement agencies. The grants, which require a 50/50 in-kind or cash match, can be used to purchase equipment but applicants must establish a strong plan for implementation of body-worn cameras and a robust training policy before purchasing cameras. The long term costs associated with storing this information will be the financial responsibility of each local agency.
Another $2 million will fund a national BWC Training and Technical Assistance provider through a competitive process, to assist agencies developing and enhancing their BWC programs. This training and technical assistance will provide support to law enforcement agencies to support successful implementation of their body-worn camera programs.
OJP’s Bureau of Justice Statistics (BJS) will receive $1 million of the funds to collect data on body-worn camera usage through surveys of law enforcement agencies. BJS will also design data collection forms that can be used in future surveys of prosecutors and public defenders to measure how body-worn camera footage is being used by the courts in criminal cases.
BJA will launch a BWC Implementation Toolkit in May, designed as an online resource for stakeholders. The toolkit will focus on implementation requirements, retention issues, policy concerns, interests of prosecutors, victim and privacy advocates’ concerns, along with community engagement and funding considerations.
For additional information about the BWC Pilot Implementation Program, visit this website: http://go.usa.gov/3BtMW.
IF YOU HAVE QUESTIONS, PLEASE CALL THE OFFICE OF PUBLIC AFFAIRS AT 202-514-2007.
U.S. Attorney Dettelbach appointed to Attorney General Lynch's Advisory CommitteeRead the Press Release
Steven M. Dettelbach, U.S Attorney for the Northern District of Ohio, is one of six new members appointed to the Attorney General's Advisory Committee, Attorney General Loretta E. Lynch this week. Besides Dettelbach, the following appointments became effective April 29, 2015:
- U.S. Attorney Deirdre Daly for the District of Connecticut;
- U.S. Attorney Conner Eldridge for the Western District of Arkansas;
- U.S. Attorney Paul Fishman for the District of New Jersey;
- U.S. Attorney Booth Goodwin II for the Southern District of West Virginia; and
- U.S. Attorney Kenneth Polite for the Eastern District of Louisiana.
“The distinguished women and men who serve on the Attorney General’s Advisory Committee provide invaluable advice and wise counsel that help shape the Justice Department’s approach to combating crime, violence, and injustice in every community across the country,” said Attorney General Lynch. “They help introduce new ideas, formulate innovative policies, and design fresh strategies. They foster collaboration across our U.S. Attorney’s Offices and with Main Justice. And, in all of their work, they seek to strengthen and improve law enforcement efforts at every level. As a former chair of the AGAC, I am proud to welcome six outstanding new members to the Committee, and I look forward to all that we will achieve, with their help, in the days ahead.”
Dettelbach and Fishman are the only U.S. Attorneys to have served on the Advisory Council for both Attorney General Lynch and former Attorney General Eric Holder.
"I am deeply honored to be appointed to Attorney General Lynch's Advisory Committee," Dettelbach said. "The Department of Justice has many proud traditions, but making sure that leading law enforcement people not just from inside the Beltway, but from across the nation have a significant role in guiding policy is one of its proudest. Working side by side with them is a rare opportunity."
Attorney General Lynch also thanked U.S. Attorney Ronald Sharpe for the District of the Virgin Islands for serving on the Attorney General’s Advisory Committee for the past two years.
A brief bio on each new appointee is below:
Deirdre Daly was presidentially appointed and sworn in as the U.S. Attorney for the District of Connecticut on May 28, 2014. Daly previously served as the U.S. Attorney in an acting or interim capacity since May 14, 2013. Between July 2010 and May 2013, she was the First Assistant U.S. Attorney during which time she assisted in the oversight of both the Criminal and Civil Divisions. From 1985 to 1997, Daly was an Assistant U.S. Attorney in the Southern District of New York, where she prosecuted a wide range of cases from racketeering and murder to corruption and fraud and later served as the Assistant-In-Charge of White Plains Office for three years. After leaving the Justice Department, Daly was a partner at Daly & Pavlis LLC, a Connecticut law firm with a practice focused on corporate and commercial litigation, white-collar criminal investigations, SEC enforcement actions and corporate internal investigations and monitoring.
Steven Dettelbach was presidentially appointed and sworn in as the U.S. Attorney for the Northern District of Ohio in September 2009. Dettelbach previously served for over 12 years as a career federal prosecutor. During those years, he worked at the Department of Justice, Civil Rights Division, Criminal Section, U.S. Attorneys Offices in Maryland and Washington, D.C. and from 2003 to 2006 in the Northern District of Ohio, as a member of the Organized Crime and Corruption Strike Force. Dettelbach also was detailed to serve as Counsel for the U.S. Senate Committee on the Judiciary from 2001 to 2003. Formerly, Dettelbach was a partner at the law firm of Baker & Hostetler LLP.
Conner Eldridge was presidentially appointed and sworn in as the U.S. Attorney for the Western District of Arkansas on December 21, 2010. Eldridge is the youngest U.S. Attorney in the country. Eldridge serves as co-chair of the Domestic Terrorism Executive Committee, which is composed of twenty law enforcement agencies and Department of Justice components and works to increase collaboration in addressing the threat of Domestic Terrorism. While serving as U.S. Attorney, Eldridge has tried five cases to jury verdict. He previously served as a Deputy Prosecuting Attorney in Arkadelphia (Clark County), Arkansas, as Counsel and, later, Chief Executive Officer of Summit Bank, a community bank then serving central and southwest Arkansas, also in Arkadelphia, as a clerk to federal District Judge G. Thomas Eisele and as a legislative assistant to former U.S. Senator Blanche Lincoln and former U.S. Congressman Marion Berry, both of Arkansas.
Paul Fishman was presidentially appointed and sworn in as the U.S. Attorney for the District of New Jersey on October 14, 2009. Fishman previously served as a member of the Attorney General's Advisory Committee of U.S. Attorney's (AGAC) from 2009-2013. He served as Vice-Chair of the AGAC from 2009-2011 and Chair from 2011-2012. After graduating from law school, he clerked for the Honorable Edward R. Becker of the U.S. Court of Appeals for the Third Circuit. He was an Assistant U.S. Attorney from 1983 to 1994. From 1994 to 1997, he was a senior adviser to the Attorney General and Deputy Attorney General of the U.S. on a variety of law enforcement, policy, legislative, national security and international matters, as well as on specific investigations and prosecutions. In addition to his public service, from 1998 - 2009 Fishman was a partner in the law firm of Friedman Kaplan Seiler & Adelman.
Booth Goodwin II was presidentially appointed and sworn in as U.S. Attorney for the Southern District of West Virginia on May 27, 2010. From January 2001 until he was sworn in as U.S. Attorney, Goodwin was an Assistant U.S. Attorney for the Southern District of West Virginia. Prior to that, Goodwin practiced for five years with the Charleston law firm of Goodwin & Goodwin, LLP where he engaged in commercial and personal injury litigation, closed multi-million dollar bond transactions, filed reports with the U.S. Securities and Exchange Commission and handled numerous commercial and residential real estate transactions.
Kenneth Polite was presidentially appointed and sworn in as U.S. Attorney for the Eastern District of Louisiana on September 20, 2013. Polite currently serves as a member of the AGAC's Violent and Organized Crime Subcommittee and Smart on Crime Working Group. Prior to becoming U.S. Attorney, Polite was a shareholder at Liskow & Lewis, where he headed the white collar criminal defense group and served as the Firm's hiring partner. From 2007 to 2010, Polite served as an Assistant U.S. Attorney for the Southern District of New York. There, he prosecuted a wide range of federal criminal offenses, including organized crime, public corruption, narcotics and firearms trafficking, money laundering and identity theft. Polite was an associate at Skadden, Arps, Slate, Meagher & Flom LLP, first in the Delaware office's corporate litigation practice from 2000 to 2001, and later, in the New York office's white collar criminal defense group from 2002 to 2006.
The Attorney General’s Advisory Committee will now include the following individuals:
- U.S. Attorney John F. Walsh for District of Colorado, Chair;
- U.S. Attorney Richard S. Hartunian for the Northern District of New York, Vice Chair;
- U.S. Attorney Michael W. Cotter for the District of Montana;
- U.S. Attorney Deirdre Daly for the District of Connecticut;
- U.S. Attorney Thomas E. Delahanty, II for the District of Maine;
- U.S. Attorney Steven M. Dettelbach for the Northern District of Ohio;
- U.S. Attorney Conner Eldridge for the Western District of Arkansas;
- U.S. Attorney Zachary T. Fardon for the Northern District of Illinois;
- U.S. Attorney Wifredo A. Ferrer for the Southern District of Florida;
- U.S. Attorney Paul J. Fishman for the District of New Jersey;
- U.S. Attorney R. Booth Goodwin II for the Southern District of West Virginia;
- U.S. Attorney Barry R. Grissom for the District of Kansas;
- U.S. Attorney Kerry B. Harvey for the Eastern District of Kentucky;
- U.S. Attorney Barbara L. McQuade for the Eastern District of Michigan;
- U.S. Attorney Zane D. Memeger for the Eastern District of Pennsylvania;
- U.S. Attorney Wendy J. Olson for the District of Idaho;
- U.S. Attorney Kenneth A. Polite for the Eastern District of Louisiana;
- U.S. Attorney Vincent Cohen, Jr. for the District of Columbia, ex officio;
- Criminal Chief Thomas Eicher for District of New Jersey, ex officio;
- Appellate Chief Sandra Glover for District of Connecticut, ex officio; and
- Civil Chief Thomas Walsh for the Northern District of Illinois, ex officio.
The AGAC was created in 1973 to serve as the voice of the U.S. Attorneys and to advise the attorney general on policy, management and operational issues impacting the offices of the U.S. Attorneys.
Two V.I. National Guard Soldiers Arrested on Charges of Wire Fraud, Theft, and Making False StatementsRead the Press Release
St. Croix, USVI – Two Virgin Islands National Guard (VING) soldiers have been arrested after a federal grand jury returned indictments charging them with wire fraud, theft of government money, and making false statements to the government, United States Attorney Ronald W. Sharpe announced today.
Staff Sergeant Emmrie Edwards, 37, who was arrested Thursday, is charged in a 49-count indictment with 47 counts of wire fraud, one count of theft of government money, and one count of making a false statement to the government. After his advice of rights hearing Thursday before U.S. Magistrate Judge George W. Cannon, Edwards was released on an unsecured $50,000 bond. His arraignment is scheduled for May 4, 2015.
Lieutenant Colonel Kenneth Alleyne, 45, who was also arrested Thursday, is charged in a 46-count indictment with 44 counts of wire fraud, one count of theft of government money, and one count of making a false statement to the government. After his advice of rights hearing today before U.S. Magistrate Judge George W. Cannon, Alleyne was released on an unsecured $50,000 bond. His arraignment is scheduled for May 6, 2015.
The indictments are the result of months of investigative work by the U.S. Army Criminal Investigations Command Major Procurement Fraud Unit, Homeland Security Investigations, and the Defense Criminal Investigative Service. The charges for both soldiers relate to improper use of government issued housing allowance funds.
Wire fraud carries a maximum sentence of 20 years in prison and a $250,000 fine. The theft of government money charge carries a maximum sentence of 10 years in prison and a $250,000 fine. The making a false statement to the government charge carries a maximum sentence of five years in prison and a $250,000 fine.
United States Attorney Sharpe reminds the public that an indictment is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless proven guilty.
The case is being prosecuted by Assistant U.S. Attorney Christian Stringer.
Two Miami Area Tax Return Preparers Indicted for Aiding and Assisting in Preparation of False Tax ReturnsRead the Press Release
Two federal indictments were unsealed yesterday in the Southern District of Florida charging two Miami area tax return preparers with aiding and assisting in the preparation of false federal income tax returns, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division.
On April 14, Noe Mompoint, of Southwest Ranches, Florida, was charged with 14 counts of aiding and assisting in the preparation of false federal income tax returns. Lucvens Francois, of Aventura, Florida, was charged in a separate indictment with 19 counts of aiding and assisting in the preparation of false federal income tax returns. Both defendants surrendered yesterday and had their initial appearances in court.
According to the allegations in the indictments, Mompoint owned and operated the Tax Resource Center, a tax preparation business located in Miami. Mompoint filed tax returns for clients that reported fraudulent first-time homebuyer credits. Francois owned and operated a branch office of the Tax Resource Center, also located in the Miami area. Francois filed tax returns for clients that reported fraudulent first-time homebuyer credits and returns that claimed a variety of other false items, including false education credits, false business losses and false itemized deductions.
If convicted, Mompoint and Francois each face a statutory maximum sentence of three years in prison and a fine of $250,000 on each count.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceeding.
Acting Assistant Attorney General Ciraolo commended the special agents of IRS-Criminal Investigation, who investigated the case, and Trial Attorneys Charles M. Edgar Jr. and Jason H. Poole of the Tax Division, who are prosecuting the case.
Two Men Plead Guilty to Trafficking Children for Commercial SexRead the Press Release
SAN DIEGO – Two men pleaded guilty in federal court this week to trafficking children for commercial sex.
On Tuesday, Darius Chambers, 19, admitted before U.S. Magistrate Judge Karen S. Crawford that he trafficked two girls – ages 16 and 17 – for commercial sex. Chambers admitted that, knowing the victims were underage and engaged in prostitution, he collected the proceeds of acts of commercial sex from one victim and provided hotel rooms, cellular telephones, and email accounts for both victims to use for commercial sex. Chambers also admitted that he offered to rent one of his victims to a third trafficker for $100, in order to train that individual’s minor victim in the ways of prostitution.
On Thursday, Terrance Martel Soda, 20, pleaded guilty before Judge Mitchell D. Dembin to trafficking a fifteen-year old girl for commercial sex, knowing that she was a minor. Specifically, Soda admitted that he provided hotel rooms for the victim to use for commercial sex and that he gave her a cell phone, an email account, and online advertisements to recruit customers.
Soda also admitted providing hotel rooms for two additional underage girls for purposes of commercial sex, and that some of the proceeds of those commercial sex acts would go to Lamar Moore. Moore pleaded guilty in October 2014 to trafficking a 17 year-old for commercial sex and aiding and abetting in the trafficking of a 15-year old for commercial sex.
Soda and Chambers are scheduled to be sentenced on July 31, 2015 at 9:00 a.m. before U.S. District Judge Janis L. Sammartino.
DEFENDANTS Case Number: Terrance Martel Soda Age: 20 San Diego, California Darius Chambers Age: 19 San Diego, California CHARGESTrafficking children for commercial sex, in violation of 18 U.S.C. § 1591.
INVESTIGATING AGENCIES
Maximum Penalties: Life, mandatory minimum sentence of 10 years in prison.San Diego Police Department
San Diego Sheriff’s DepartmentThree Charged with Committing Federal Firearms Offenses in Nashville's JC Napier and University Court Public Housing AreasRead the Press Release
A federal grand jury has indicted three Nashville, Tenn. men for separate crimes involving federal firearms offenses in the J.C. Napier and University Court public housing developments, announced David Rivera, U.S. Attorney for the Middle District of Tennessee.
Michael Calloway aka Oso, 20, was charged with being a felon in possession of ammunition. Charging documents allege that on April 12, 2015, near the intersection of Lewis St. and Robertson St., in Nashville, Calloway fired several shots at an individual, striking him in the leg with one of the bullets.
Jacarlvis Marable, 22, was charged with being a felon in possession of a firearm. Charging documents allege that Marable stole a Glock handgun from Gun City USA in Nashville on February 14, 2015.
Deshon Burleson aka C-Shawn, 28, was charged with being a felon in possession of two firearms. Charging documents allege that on October 21, 2014, Burleson was in the housing projects and fled into one of the apartments to evade a Metro Nashville Police officer, who had observed a handgun in the waistband of Burleson’s pants.
All three defendants are in custody and face up to ten years in prison if convicted.
An indictment is merely an accusation. All defendants are presumed innocent unless and until proven guilty in a court of law.
The cases were investigated by the Metropolitan Nashville Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The cases are being prosecuted by Assistant United States Attorney Sunny A.M. Koshy.
Springfield Man Indicted on Federal Firearm ChargeRead the Press Release
BOSTON – Joshua Ortiz, 23, of Springfield, was indicted in U.S. District Court in Springfield for being a convicted felon in possession of a firearm and ammunition.
The indictment alleges that on Oct. 10, 2014, Ortiz possessed a HiPoint Model JHP .45 caliber firearm and eight rounds of ammunition.
The charge of being a felon in possession of a firearm provides a maximum sentence of 10 years in prison, three years of supervised release, and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and Springfield Police Commissioner John Barbieri, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Deepika Bains Shukla of Ortiz’s Springfield Branch Office.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Somerset Optometrist Found Liable for False Claims ActRead the Press Release
LEXINGTON - The U.S. Attorney’s Office announced today that a federal jury found Dr. Phillip Robinson, a Somerset optometrist, liable, under the False Claims Act, for seeking payment from the Medicare program for more than 11,000 unnecessary eye examinations he provided to nursing home residents.
On Friday, May 1, 2015, the jury reached its verdict, after three hours of deliberation, following a five-day trial. The jury found that the Medicare program lost $419,075 as a result of Dr. Robinson’s false claims. Under the False Claims Act, Dr. Robinson will be required to pay the federal government three times that amount, $1,257,225.
“Dr. Robinson's scheme to defraud the taxpayers betrays the standards we expect of our healthcare providers,” said U.S. Attorney Kerry B. Harvey. “His willingness to use many of our most vulnerable citizens to further his financial interests at the expense of our vital federally funded healthcare programs is particularly troubling. We will continue to use every available tool to protect the public treasury from this sort of abuse.”
Dr. Robinson provided eye care services at approximately a dozen nursing homes in Pulaski, Lincoln, and McCreary Counties, among other southeastern and south-central locations in Kentucky. Evidence presented at the trial established that, from January 1, 2007 to January 31, 2012, Dr. Robinson gave eye examinations to the vast majority of his nursing home patients, once a month, regardless of the patients’ condition or medical need. Medical experts testified that they were unaware of any other optometrists that provided eye exams with this frequency.
The evidence further established that Dr. Robinson caused the Medicare program to be billed for these exams. Because Medicare only pays for medically necessary exams, Dr. Robinson intentionally filed claims that represented each exam was necessary.
The jury concluded that Dr. Robinson was responsible for 11,085 false claims, submitted to Medicare for payment, for the unnecessary eye examinations.
In January 2015, Dr. Robinson’s practice group, Associates in Eye Care, agreed to pay the government $800,000 to settle related claims against it, thereby avoiding trial.
Health care providers found liable under the False Claims Act are typically excluded from further participation in federal health care programs such as Medicare and Medicaid. A decision about Dr. Robinson’s exclusion from federal health care programs will be made by the Department for Health and Human Services, Office of Inspector General (HHS-OIG).
This investigation was conducted by HHS-OIG, the Kentucky Office of Attorney General’s Medicaid Fraud and Abuse Control Unit, and the United States Attorney’s Office for the Eastern District of Kentucky. Assistant United States Attorneys Christine Corndorf, Andrew Smith, and Paul McCaffrey litigated the case on behalf of the federal government.
Seven Sentenced in Stolen Identity Refund Fraud SchemeRead the Press Release
Tampa, Florida – U.S. District Judge Virginia Hernandez Covington has sentenced seven individuals for their roles in a conspiracy to commit stolen identity refund fraud in the Tampa Bay area. Mikeil Royal was sentenced to five years and five months, Brian Gilchrist was sentenced to three years and one month, Donterrio Troup was sentenced to two years and eleven months, Kenneth Royal was sentenced to two years and nine months, Terrence Johnson was sentenced to two years, Shadae Cotton was sentenced to one year and nine months, and Tanisha Johnson was sentenced to one year and eight months. As part of each defendant’s sentence, the Court also entered a money judgment in the amount of $488,657.71, representing the amount of the proceeds of the charged criminal conduct. Each individual previously pleaded guilty for their roles in the conspiracy.
According to court documents, between 2011 and 2014, the above-named individuals filed false and fraudulent income tax returns in the names of deceased individuals whom they located on the Internet. In these returns, the conspirators represented that they were entitled to the refunds and requested that the IRS direct refunds in varying amounts to accounts that they had established, in their own respective names, at two local financial institutions.
This case was investigated by the Internal Revenue Service Criminal Investigation and the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Jay L. Hoffer.
Reno Man Using Private Plane to Transport Marijuana Out of State Sentenced to Two Years in PrisonRead the Press Release
SACRAMENTO, Calif. —Kevin Dennis Golden, 39, of Reno, Nevada, was sentenced today to two years in prison for possession with the intent to distribute approximately 88 pounds of marijuana that he was attempting to fly in a private plane to Pennsylvania, United States Attorney Benjamin B. Wagner announced.
According to court documents, on December 14, 2012, law enforcement agents went to the Lincoln airport as part of an investigation into a suspicious Cessna airplane that had been making frequent flights from California to the Midwest and East Coast. They observed that the plane had landed and saw the pilot go into the pilot’s lounge. Approximately an hour later, a vehicle drove up to the airplane. Golden got out of the vehicle, removed three black suitcases and a backpack from the vehicle and placed them inside the airplane. Golden then drove to a nearby parking lot, parked, and walked back to the airplane. Agents approached the pilot of the plane and told him of their intent to perform a ramp check in accordance with Federal Aviation Administration regulations. While conducting the ramp check, the three suitcases were seen inside the small aircraft. After receiving consent to look inside the suitcases from Golden, the agents discovered multiple vacuum-sealed bags of marijuana. An additional bag of marijuana was found in the smaller backpack that also contained Golden’s identification. A total of 40 kilograms (88 pounds) of marijuana were taken out of the suitcases and backpack. Further evidence showed that Golden had taken two previous trips to Philadelphia, Pennsylvania in the aircraft to deliver marijuana.
U.S. Attorney Benjamin Wagner stated: “The use of private planes and small private airports to transport and distribute controlled substances is a known and continuing problem within the Eastern District of California. Persons involved in such activity should understand that they face prison, large fines, and, in appropriate cases, forfeiture of vehicles and aircraft used to engage in such activity.”
This case was the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), with the assistance of the Lincoln Police Department and the Placer County Sheriff’s Office.
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Project Sentry Logo Contest; Press Release Announcing Division Winners and Overall Winner and SchoolsRead the Press Release
Contact Person: Lance Crick (864) 282-2100
MEDIA ALERT: 12th Annual Project Sentry Logo Contest Winners Announced
Winning Students from Myrtle Beach, Orangeburg, Macedonia, and Pawleys IslandCOLUMBIA, South Carolina ---- United States Attorney Bill Nettles announced today the winners of the United States Attorney’s Office 12th Annual Project Sentry Logo Contest. The winners are from the following schools:
K-2nd grade division winner: Presley Sokolils, Socastee Elementary School, Myrtle Beach, South Carolina
3rd-5th grade division winner: Tamiya Dickson, Marshall Elementary School, Orangeburg, South Carolina
6th-8th grade division winner and OVERALL WINNER: Josiah Agnew, Macedonia Middle School, Macedonia, South Carolina
9th-12th grade division: Kelvin Cheah, Waccamaw High School, Pawleys Island, South Carolina
The winning entries, attached below, were chosen from 529 entries from 47 schools across South Carolina. Each division winner will receive a $50.00 award, with the overall winner receiving an additional $50.00 award. All of the students who participated will receive a Certificate of Appreciation for logo submissions.
The statewide contest fosters an opportunity for South Carolina students to tell the entire state how they prevent gun violence in their school and focuses on deterrence of juvenile gun violence and ensuring secure school environments. The contest was open to students in all South Carolina schools.
The winning entries were selected by “The Insiders,” a select group of students from the South Carolina Department of Juvenile Justice, who travel throughout the state, encouraging troubled children and promoting community awareness of the prevalence and consequences of juvenile crime. The United States Attorney's Office coordinated with the South Carolina Law Enforcement Officers’ Association Foundation (SCLEOA) to provide the cash awards to the winners.
Project Sentry, which is part of the district’s Project Safe Neighborhoods/Project CeaseFire program, is a vital step in strengthening our ability to prevent gun crimes among our young people and to ensure a safe learning atmosphere for our children. For more information on the Project Sentry program and to view this year’s winning submissions (also attached below) as well as winning logos over the years, visit http://www.justice.gov/usao/sc/programs/logowinners.html
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2015 Project Sentry Logo K-2 Winner Presley Sokolils
2015 Project Sentry Logo 3-5 Winner Tamiya Dickson
2015 Project Sentry Logo 6-8 and Overall Winner Josiah Agnew
2015 Project Sentry Logo 9-12 Winner Kelvin Cheah
Possessing Pornographic Images of Babies and Toddlers Sends Sugar Land Man to PrisonRead the Press Release
HOUSTON – Glenn Casey Portwood, 53, has been ordered to federal prison following his conviction of possession of child pornography which included images of babies and toddlers, announced U.S. Attorney Kenneth Magidson. Portwood pleaded guilty Nov. 18, 2014.
Today, U.S. District Judge Gray Miller took into consideration the large number of images and handed Portwood the statutory maximum of 120 months in federal prison. At the hearing, information was presented including a victim letter/statement from two victims of child pornography series. In handing down the sentence, Judge Miller considered the large collection and the nature of the images and videos possessed by Portwood. He was further ordered to pay restitution of $5,000 to a known victim and will serve 15 years of supervised release following completion of his prison term. He will also be ordered to register as a sex offender.
The investigation began in September 2012 when a particular computer was identified as sharing child pornography via peer-to-peer software on the Internet. Law enforcement linked that computer Internet account to Portwood’s name and found that he resided in Sugar Land.
A search warrant was conducted at the location and included a Honda Portwood admitted he drove. Inside the trunk of the vehicle, officers discovered found a black backpack with nine individually labeled CDs, two external hard drives, one Compaq Presario laptop computer and one Gateway laptop computer.
One of the CDs was labeled “VCKY 2004,” on which officers found a folder named “Vicky” with 32 movie files containing child pornography. “Vicky” is the name of a known and identified child pornography series of images and videos that is widely traded over the Internet.
A forensic exam revealed approximately 70 videos and 325 images containing child pornography on the two computers and one of the external hard drives also contained approximately 50,000 images and 1,300 child pornography videos. Four of the CDs also contained child pornography. Some of the images and videos involved prepubescent girls, even toddlers and babies. The child pornography included children as young as 1-3 years old to young teens engaging in oral, vaginal and anal sex. There were also images depicting bondage.
Portwood will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The charges against Portwood were the result of an investigation conducted by the Sugar Land Police Department, as part of the Houston Metro Internet Crimes Against Children Task Force and the FBI.
This case, prosecuted by Assistant U.S. Attorney Robert Stabe, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Perry Woman Sentenced to Four Months on Drug and Food Stamp Fraud ChargesRead the Press Release
Contact: Jim Moore
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Tonia Smith, 42, of Perry, Maine, was sentenced to four months of imprisonment and three years of supervised release for fraudulently acquiring Hydrocodone and food stamp fraud. She was also ordered to pay $3,933.88 in restitution. She pled guilty to the charges on November 18, 2014.
According to court records, from July to November 2013, Smith used her position as a pharmacy technician at the Indian Health Service Center on Pleasant Point Reservation in Perry to steal the pain medication Hydrocodone from the pharmacy and then shredded records that the pharmacy was required to keep in order to conceal her thefts. The investigation also revealed that from January to November 2013, Smith bought EBT cards from food stamp recipients for amounts less than the credit assigned to each card and then used the cards to make unauthorized purchases.
The investigation was conducted by the Offices of Inspector General of the U.S. Departments of Health and Human Services and Agriculture and the Pleasant Point Police Department.
Pennsylvania Man Sentenced to One Year in Prison for Selling 12 Gauge Pistol Made from Modified Flare GunRead the Press Release
Also illegally sold practice grenade fuses
ALEXANDRIA, Va. – Eric Mark Way, 29, of Aliquippa, Pennsylvania, was sentenced today to 12 months and one day in prison, followed by two years of supervised release, for transferring an illegally modified flare gun.
Way pleaded guilty on January 20, 2015. According to court documents, Way sold multiple modified flare gun kits. These kits consisted of a flare gun, an insert that converted the legal signaling device into an illegal 12 gauge device, and a canvass carrying pouch. One of the individuals who purchased this modified weapon from Way was a violent, convicted felon.
In addition to selling the modified flare guns, Way also was caught illegally selling M228 practice grenade fuses. In order to sell these fuses, both the seller and purchaser must possess a federal explosives license. Way does not have a federal explosives license.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Charles E. Smith, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, made the announcement after sentencing by U.S. District Judge Claude M. Hilton.
This case was investigated by the ATF Falls Church Field Office. Assistant U.S. Attorney Zachary Terwilliger and Special Assistant U.S. Attorney Caroline Friedman are prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:15-cr-08.
Owner of District Heights Shipping Company Convicted of Illegally Attempting to Export Arms to Lebanon and SmugglingRead the Press Release
Greenbelt, Maryland – A federal jury convicted Sam Rafic Ghanem, age 45, of Springfield, Virginia, today for attempting to illegally export defense articles, specifically firearms parts and accessories, to Lebanon, and for smuggling goods from the United States.
The conviction was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and Special Agent in Charge Clark E. Settles of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.
Ghanem, a naturalized U.S. citizen born in Lebanon, owned and operated Washington Movers International, also known as Washington Movers, Inc., a freight forwarding business located in District Heights, Maryland.
According to evidence presented at his five day trial, beginning October 3, 2013, Ghanem sought to export guns and accessories to Lebanon through his shipping company that were provided to him by an FBI source. Ghanem knew that the weapons and accessories were designated as defense articles and required an export license, which Ghanem never sought or obtained. In addition, those items are prohibited from export to Lebanon. The specific items Ghanem attempted to export included: seven 9mm semi-automatic pistols; three .40 caliber semi-automatic pistols; 10 AR-15 .223 caliber semi-automatic rifles; and 18 advanced combat optic gun sights.
According to trial evidence, on November 21, 2013, Ghanem told the source to pay him $3,000 for the cost of purchasing salvaged vehicles which would be used to export the firearms and accessories. Ghanem texted the source his bank account number and at the direction of law enforcement, the source deposited $3,000 into Ghanem’s account. Ghanem purchased the salvaged vehicles and arranged for them to be cut up. Ghanem concealed the weapons and other items within the doors and cut-up parts of the salvaged vehicles, which were then loaded into a shipping container. Ghanem advised the source that the shipping container would be loaded with the remaining car parts and transported to the Port of Baltimore for shipment to Lebanon on December 23, 2013. Ghanem was subsequently arrested.
Ghanem faces a maximum sentence of 20 years in prison for attempting to illegally export defense articles, and 10 years in prison for smuggling. U.S. District Judge Roger W. Titus has scheduled sentencing for August 12, 2015 at 10:00 a.m.
United States Attorney Rod J. Rosenstein commended the FBI and Homeland Security Investigations Washington, D.C., for their work in the investigation and thanked U.S. Customs and Border Protection for its assistance. Mr. Rosenstein thanked Assistant U.S. Attorneys Christine Manuelian and Joseph R. Baldwin, who are prosecuting the case.
Olathe Woman Pleads Guilty to Social Security Benefits FraudRead the Press Release
KANSAS CITY, KAN. – An Olathe woman pleaded guilty Friday to fraudulently collecting more than $53,000 in benefits from Social Security, U.S. Attorney Barry Grissom said.
April M. Martinez, 37, Olathe, Kan., pleaded guilty to one count of Social Security fraud. In her plea, she admitted she first became eligible for Title II Disability Insurance Benefits in May 1998. The Social Security Administration also approved her application for Supplemental Security Income. The terms of the programs required her to report if she returned to work while receiving benefits.
From November 2007 through May 2011, Martinez intentionally failed to disclose to the Social Security Administration that she had returned to work. She worked as a Certified Nurse Aid (CNA) at the Olathe Medical Center during part of that time. As a result, she admits that she fraudulently obtained a total of $53,827 in Social Security disability benefits.
Sentencing will be set at a later time. She faces a maximum penalty of five years in federal prison and a fine up to $250,000. Grissom commended the Social Security Administration’s Office of Inspector General and Special Assistant U.S. Attorneys Trey Alford and Trent Krug for their work on the case.
Natural Gas Processor Merit Energy Agrees to Comprehensive Program to Reduce Harmful Air Pollution from Leaking Equipment to Resolve Clean Air Act Violations in MichiganRead the Press Release
Merit Energy Company, a Texas-based oil and natural gas exploration and production company, has agreed to pay an $885,000 civil penalty and to improve leak detection and repair work practices to settle alleged violations of the Clean Air Act at its natural gas processing facility in Kalkaska, Michigan, the Department of Justice and the Environmental Protection Agency (EPA) announced today. Emissions of volatile organic compounds (VOCs) from leaking equipment impact the environment and may cause serious health effects. VOCs are a key component in the formation of smog or ground-level ozone, a pollutant that irritates the lungs, exacerbates diseases such as asthma and can increase susceptibility to respiratory illnesses, such as pneumonia and bronchitis.
“This comprehensive compliance program continues our efforts to control fugitive emissions and will require Merit Energy to upgrade its monitoring and maintenance practices to help prevent future violations,” said Assistant Attorney General John C. Cruden for the Department of Justice’s Environment and Natural Resources Division. “Compliance with the clean air laws is essential to maintaining safe, responsible, and reliable sources of domestic energy.”
"People in northwest Michigan will breathe cleaner air as a result of this settlement," said EPA Regional Administrator Susan Hedman. "Merit Energy will be making changes at the company's natural gas processing facility in Kalkaska that will prevent emissions of pollutants that pose risks for people with asthma and other respiratory diseases.”
“My office is pleased with this settlement. Prevention or immediate detection and repair are critical when protecting health and the environment,” said U.S. Attorney Patrick Miles Jr. for the Western District of Michigan. “We and the EPA are vigilantly ensuring compliance with the Clean Air Act and other environmental laws.”
In addition to paying a penalty, Merit Energy will implement a comprehensive leak detection and repair (LDAR) program to reduce emissions of VOCs from leaking equipment such as valves and pumps. These emissions, known as “fugitive” emissions because they are not discharged from a stack but rather leak directly from equipment, are generally controlled through work practices, like monitoring and repairing leaks. The settlement requires Merit Energy to implement enhanced work practices, including more frequent leak monitoring, better repair practices and innovative new efforts designed to prevent leaks. In addition, the enhanced LDAR program requires Merit Energy to replace valves with new “low emissions” valves or valve packing material, designed to significantly reduce the likelihood of future leaks of VOCs. This settlement imposes the first enhanced LDAR program at a natural gas processing facility.
According to the complaint, filed simultaneously with the settlement today in the Western District of Michigan, Merit Energy allegedly violated Clean Air Act requirements to monitor and repair leaking equipment and demonstrate compliance with regulations applicable to onshore natural gas processing plants.
The consent decree is subject to a 30 day comment period and final approval by the court. A copy of the consent decree is available on the Department of Justice web site at www.justice.gov/enrd/Consent_Decrees.html.
Natural Gas Processor Merit Energy Agrees to Comprehensive Program to Reduce Harmful Air Pollution from Leaking Equipment to Resolve Clean Air Act Violations in MichiganRead the Press Release
WASHINGTON – Merit Energy Company, a Texas-based oil and natural gas exploration and production company, has agreed to pay an $885,000 civil penalty and to improve leak detection and repair work practices to settle alleged violations of the Clean Air Act at its natural gas processing facility in Kalkaska, Michigan, the Department of Justice and the Environmental Protection Agency (EPA) announced today. Emissions of volatile organic compounds (VOCs) from leaking equipment impact the environment and may cause serious health effects. VOCs are a key component in the formation of smog or ground-level ozone, a pollutant that irritates the lungs, exacerbates diseases such as asthma and can increase susceptibility to respiratory illnesses, such as pneumonia and bronchitis.
“This comprehensive compliance program continues our efforts to control fugitive emissions and will require Merit Energy to upgrade its monitoring and maintenance practices to help prevent future violations,” said Assistant Attorney General John C. Cruden for the Department of Justice’s Environment and Natural Resources Division. “Compliance with the clean air laws is essential to maintaining safe, responsible, and reliable sources of domestic energy.”
“People in northwest Michigan will breathe cleaner air as a result of this settlement,” said Regional Administrator Susan Hedman for EPA. “Merit Energy will be installing new equipment at the company's natural gas processing facility in Kalkaska that will prevent emissions of pollutants that pose risks for people with asthma and other respiratory diseases.”
“My office is pleased with this settlement. Prevention or immediate detection and repair are critical when protecting health and the environment,” said U.S. Attorney Patrick Miles Jr. for the Western District of Michigan. “We and the EPA are vigilantly ensuring compliance with the Clean Air Act and other environmental laws.”
In addition to paying a penalty, Merit Energy will implement a comprehensive leak detection and repair (LDAR) program to reduce emissions of VOCs from leaking equipment such as valves and pumps. These emissions, known as “fugitive” emissions because they are not discharged from a stack but rather leak directly from equipment, are generally controlled through work practices, like monitoring and repairing leaks. The settlement requires Merit Energy to implement enhanced work practices, including more frequent leak monitoring, better repair practices and innovative new efforts designed to prevent leaks. In addition, the enhanced LDAR program requires Merit Energy to replace valves with new “low emissions” valves or valve packing material, designed to significantly reduce the likelihood of future leaks of VOCs. This settlement imposes the first enhanced LDAR program at a natural gas processing facility.
According to the complaint, filed simultaneously with the settlement today in the Western District of Michigan, Merit Energy allegedly violated Clean Air Act requirements to monitor and repair leaking equipment and demonstrate compliance with regulations applicable to onshore natural gas processing plants.
The consent decree is subject to a 30 day comment period and final approval by the court. A copy of the consent decree is available on the Department of Justice web site at www.justice.gov/enrd/Consent_Decrees.html.
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Naperville Man Charged in Setting Fire to Chicago Air Route Traffic Control Center in AuroraRead the Press Release
CHICAGO — A Naperville man was charged by information today on federal charges he set fire to the Chicago Air Route Traffic Control Center in Aurora on September 26, 2014, federal law enforcement officials announced today. Brian Howard, 37, of Naperville, was charged with one count of willfully setting fire to, damaging, destroying or disabling an air navigation facility; and one count of using fire to commit a federal felony. Howard will be arraigned at a date yet to be determined in U.S. District Court and remains in federal custody since his arrest in September 2014.
The Chicago Air Route Traffic Control Center (the “Control Center”) is located in Aurora, Illinois. The Control Center is responsible for safely guiding airplanes at high altitudes across its geographic territory. Given its central location, the Control Center is one of the nation’s largest and most important. It controls the air space over parts of Illinois, Indiana, Iowa, Wisconsin, and Michigan; provides air traffic services to the Chicago and Milwaukee metropolitan areas; and handles approximately 3,000,000 aircraft operations per year.
According to court documents, Howard was employed by an FAA contractor. He worked on telecommunications matters at the Control Center and at other FAA facilities for approximately eight years.
On September 26, 2014, at approximately 5:00 a.m., Howard entered the Control Center using his FAA-issued credentials. He was carrying a black Pelican suit case. Approximately 30 minutes after entering the Control Center, Howard posted a Facebook message that stated, in part, “Take a hard look in the mirror, I have. And this is why I am about to take out [the Control Center] and my life. April, Pop, love you guys and I am sorry. Leaving you with a big mess.”
Several minutes later, an individual who worked at the Control Center contacted 911 and notified emergency personnel that the Control Center was on fire. First responders arrived on the scene to heavy smoke. They observed that a floor panel had been lifted exposing the Control Center’s telecommunications cables, some of which had been severed and set on fire. First responders also saw a gas can next to the floor panel that had been pulled away, the nozzle to the gas can, a towel that appeared to have been burned, and a black Pelican suit case.
Howard is charged with intentionally damaging and disabling the telecommunication infrastructure at the Control Center, and setting fire to the area which housed these key components.
The charges were announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Robert J. Holley, Special Agent in Charge of the Chicago Office of the Federal Bureau of Investigation; and Carl Vasilko, Special Agent in Charge of the Chicago Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The government is being represented by Assistant U.S. Attorney Andrew K. Polovin.
The charge alleged in the information of willfully setting fire to, damaging, destroying or disabling an air navigation facility, or willfully interfering by force or violence with the operation of that facility, likely endangering the safety of aircraft in flight, carries a maximum penalty of 20 years in prison and a maximum fine of $250,000 or twice the gross loss caused by Defendant’s actions.
The charge alleged in the information of using fire to commit a federal felony carries a mandatory penalty of 10 years in prison, which must be in addition to any sentence imposed for the underlying felony.
If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.
The public is reminded that an information contains only charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Information
Morgantown woman sentenced for lying to purchase firearmRead the Press Release
CLARKSBURG, WEST VIRGINIA – Julie Anette Bailes, 25, of Morgantown, West Virginia, was sentenced today to 15 months in prison after she provided a fictitious statement to a firearms dealer in order to purchase a gun, United States Attorney William J. Ihlenfeld, II, announced.
Bailes misrepresented herself as the intended buyer of a .40 caliber Glock pistol at Cashland Pawn in Morgantown. In fact, she was attempting to purchase the firearm on behalf of another individual by unlawfully misleading the pawn shop firearms dealer.
She pled guilty in January 2015 to a criminal Information charging her with one count of “False Statement in Acquisition of a Firearm,” following an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Mon Valley Drug and Violent Crime Task Force.
Assistant U.S. Attorney Zelda Wesley prosecuted the case on behalf of the government.
U.S. District Judge Irene M. Keeley presided.