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Thursday 19 March 2015
Former Tribal Police Chief Indicted for Embezzling Tribal FundsRead the Press Release
The former Police Chief of the Swinomish Tribe was indicted today by the grand jury for six counts of wire fraud and four counts of theft of tribal funds, announced Acting United States Attorney Annette L. Hayes. THOMAS J. SCHLICKER, 57, of Stanwood, Washington, served as the Swinomish Police Chief from 1997 until September 2014, when his employment was terminated. SCHLICKER is scheduled to appear for arraignment next week.
According to the indictment, between 2008 and 2014, SCHLICKER is alleged to have embezzled more than $30,000 from the tribe. SCHLICKER allegedly set up a secret bank account in the name of the Swinomish Police Department without the knowledge of the tribal accounting department. The indictment alleges that SCHLICKER then deposited checks made out to the tribal police into the secret account and withdrew the proceeds in cash, which he then used for his own purposes. Some of the money deposited in the account came from the sale of vehicles seized and sold by the Tribal Police. The indictment also alleges SCHLICKER used the Tribe’s Chevron/Texaco credit card to purchase gas for his and his family members’ personal vehicles. Finally, the indictment alleges that SCHLICKER turned in paperwork asking to be reimbursed for the purchase of a uniform shirt, when in fact the charge was for an entry fee at a golf tournament.
Wire fraud is punishable by up to twenty years in prison and a $250,000 fine. Theft of tribal funds is punishable by up to five years in prison and a $250,000 fine.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case was investigated by the FBI and the Washington State Patrol. The case is being prosecuted by Assistant United States Attorneys Seth Wilkinson and Ye-Ting Woo.
Former Traffic Court Judge Sentenced for Lying to the FBIRead the Press Release
PHILADELPHIA – Willie Singletary, 33, of Philadelphia, was sentenced today to 20 months in prison for lying to the FBI when questioned about ticket fixing at the former Philadelphia Traffic Court. A federal jury found Singletary guilty of the charge in July 2014 following a trial. Three of Singletary’s co-defendants – Michael Lowry, Robert Mulgrew, and Thomasine Tynes – were convicted of committing perjury before the federal grand jury; and co-defendants H. Warren Hogeland, Kenneth Miller, Fortunato Perri, William Hird, and Henry P. Alfano pleaded guilty prior to trial.
In addition to the prison term, U.S. District Court Judge Lawrence Stengel ordered one year of supervised release, a fine of $1,500, and a special assessment of $100.
This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorneys Denise S. Wolf and Anthony J. Wzorek.
Former Office Manager of Hobbs Business Pleads Guilty to Federal Tax ChargesRead the Press Release
ALBUQUERQUE – Connie C. Sims, 43, of Eunice, N.M., pled guilty late yesterday afternoon to federal tax evasion charges in federal court in Las Cruces, N.M., for violating the federal tax laws, announced U.S. Attorney Damon P. Martinez and Special Agent in Charge Dawn Mertz of the Phoenix Field Office of IRS Criminal Investigation.
Sims was charged with four counts of federal tax evasion in an indictment filed in Sept. 2014. The indictment charged Sims with evading her federal tax obligations during tax years 2009, 2010, 2011 and 2012 by failing to report her true income. At the time the offenses were committed, Sims was employed as the office manager of a surveillance equipment company located in Hobbs, N.M.
During yesterday’s proceedings, Sims pled guilty to all four counts of the indictment and admitted that she knowingly evaded approximately $120,366.00 in federal taxes by failing to report an aggregate of $482,890.00 in income during tax years 2009, 2010, 2011 and 2012. In her plea agreement, Sims admitted that from 2010 through 2013, she wrote checks to herself on the company’s bank accounts and did not report the money as compensation when she filed her federal tax returns. Sims acknowledged deriving an aggregate amount of $482,890.00 by writing checks to herself, which resulted in a loss of $120,366.00 to the IRS when she failed to report the income in her federal tax returns.
At sentencing, Sims faces a statutory maximum penalty of five years in federal prison on each of the four tax evasion counts. Under the terms of the plea agreement, Sims will be required to pay $120,336.00 in restitution to the IRS. Sims remains on conditions of release and under pretrial supervision pending her sentencing hearing, which has yet to be scheduled.
This case was investigated by the Las Cruces office of IRS Criminal Investigation and is being prosecuted by Assistant U.S. Attorney Amanda Gould of the U.S. Attorney’s Las Cruces Branch Office.
Former Jailer Arraigned on Bribery and Drug Charges After Attempting to Smuggle Cocaine into Hall County JailRead the Press Release
GAINESVILLE, Ga. - Austin Herring has been arraigned on federal charges of accepting bribes and conspiring to possess with intent to distribute cocaine in relation to his efforts to smuggle cocaine into the Hall County Jail. Herring was indicted by a federal grand jury on March 3, 2015.
“This former corrections officer allegedly accepted bribes on two occasions to smuggle what he believed to be cocaine into the Hall County Jail,” said Acting U.S. Attorney John Horn. “We are committed to doing what we can to eradicate drugs and other contraband from jails. Jails are the single place above all others where citizens should have confidence that the inmates are no longer breaking the law.”
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “The FBI takes all allegations of public corruption within law enforcement very seriously and acted on its investigation involving former Hall County Detention Officer Herring promptly. While these cases are disheartening to those working them, it should be noted that the vast majority of those in law enforcement are dedicated to their sworn oaths of office. The FBI would like to thank Hall County Sheriff Gerald Couch and his staff for their understanding and cooperation during this investigation.”
According to Acting U.S. Attorney Horn, the charges, and other information presented in court: Herring was employed as a jailer with the Hall County Sheriff's Office. On two occasions in February 2015, Herring was paid $500 to take a package he was told contained cocaine to an inmate inside the jail. After Herring delivered each package to the inmate who was cooperating with the investigation, the inmate then turned the package over to investigators. Herring did not open or tamper with either package, but on each occasion he was specifically told by the person who gave it to him that the package contained cocaine from Mexico. In actuality, neither package contained a controlled substance.
Herring, 19, of Murrayville, Georgia, was arraigned March 16, 2015, before United States Magistrate Judge J. Clay Fuller. He was arrested on these charges on February 20, 2015.
Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Federal Bureau of Investigation with assistance from the North Georgia Major Offenders Task Force and the Hall County Sheriff's Office.
Assistant United States Attorney William L. McKinnon, Jr. is prosecuting 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/gan/.
Former Illinois State Representative Keith Farnham Sentenced to Ninety Six Months for Transporting Child PornographyRead the Press Release
CHICAGO — Former Illinois State Rep. KEITH FARNHAM was sentenced to ninety six months in prison today by U.S. District Court Judge Edmond E. Chang as a result of his conviction of transporting child pornography via computers in his office and residence in Elgin last year. Farnham resigned his seat in the Illinois General Assembly in March 2014, less than a week after federal agents seized computers from his home and office.
Farnham, 67, of Elgin, was also ordered to pay a $30,000 fine. Farnham was ordered by Judge Chang to report to prison on May 19, 2015. Farnham will remain on a bond that restricts him to his home and requires around-the-clock electronic monitoring. "This is a despicable crime." said District Court Judge Chang while imposing sentence. "The sex assaults of children in each of the 2700 images represent their own nightmare."
Farnham pled guilty in December 2014, admitting that on November 25, 2013, he sent an email from a computer in his Elgin office with the following message: "do you trade. This is what I lik." Farnham attached two files to the email that he knew contained child pornography. In addition, he possessed images and videos depicting child pornography on computers and electronic storage devices in his residence, car, and offices.
During the course of the investigation, agents with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) executed federal search warrants at Farnham’s state office and residence in Elgin and seized computers and electronic storage devices. On the day the warrant was executed in March 2014, Farnham possessed no fewer than 2,765 images of real minors engaged in sexually explicit acts, including sexual intercourse, with prepubescent children. Some of the images involved sadistic or masochistic conduct and depictions of violence, according to Farnham’s guilty plea. According to the court documents, HSI agents were investigating information received from the HSI Cyber Crimes Center that an email address, later linked to Farnham, was being used to trade child pornography on the Internet.
"The defendant’s criminal conduct extends far beyond simply viewing sexually explicit photographs online. The defendant actively traded and bartered images and videos depicting child pornography, bragged to others about his own hands-on sexual abuse and exploitation of a six-year-old girl, and actively hid his tracks from law enforcement in order to continue his criminal conduct," the government stated in its sentencing memorandum. "As an elected official, the defendant held himself out as being concerned about ‘protecting your children on the internet’ at the same time, however, he led another life, surfing the internet and message boards for sexually explicit images and further victimizing children of sexual abuse and exploitation."
The sentence was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Gary Hartwig, Special Agent-in-Charge of HSI in Chicago.
The government was represented by Assistant U.S. Attorneys Timothy Storino and Michelle Petersen.
Former Head of Operations at New York Brokerage Firm Pleads Guilty to Tax Evasion and Filing False Tax ReturnRead the Press Release
A former resident of North Bellmore, New York, pleaded guilty today in the U.S. District Court for the Eastern District of New York in Long Island to one count of tax evasion and one count of filing a false federal income tax return, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division.
According to the indictment, Dominick Pannitti, 38, was head of operations at a securities brokerage firm located in Syosset, New York. The brokerage firm used an automated system designed to adjust customers’ trading accounts for amounts less than $1,000. During 2005 and 2006, Pannitti used the automated system to credit his own trading accounts–set up in the name of a corporation that he owned–more than 850 times in increments of less than $1,000. Pannitti was not entitled to most of these credits, which totaled more than $570,000. Pannitti failed to report the income on his 2005 and 2006 federal income tax returns.
Pannitti faces a statutory maximum sentence of five years in prison and up to a $250,000 fine for the tax evasion count and a statutory maximum sentence of three years in prison and up to a $250,000 fine for the false return count at his sentencing before U.S. District Judge Arthur D. Spatt.
Acting Assistant Attorney General Ciraolo commended the special agents of IRS-Criminal Investigation and the FBI, who investigated the case, and Trial Attorneys Mark Kotila and Jeffrey Bender of the Tax Division, who are prosecuting the case. Ciraolo also thanked the U.S. Attorney’s Office for the Eastern District of New York for their substantial assistance.
Former Hawaii Couple Indicted on Tax and Prostitution-Related ChargesRead the Press Release
HONOLULU – A federal grand jury indicted Michael Paul Ernst, age 43, and Khemwika Ernst, age 38, former residents of Oahu, on March 11, 2015, for one count of conspiring to use interstate commerce to distribute proceeds of prostitution, two counts of using interstate commerce to distribute proceeds of prostitution, one count of conspiracy to defraud the United States in the collection of income taxes, and two counts of filing a false tax return.
Florence T. Nakakuni, United States Attorney for the District of Hawaii, said the indictment alleges that Khemwika Ernst earned money as a prostitute working in Hawaii and deposited her earnings into an account which she jointly controlled with Michael Paul Ernst, her husband. He would then transfer the funds to a mainland bank he controlled. Khemwika Ernst also sent the money she earned via a package delivery service to New Jersey, where the funds were deposited into bank accounts Michael Paul Ernst controlled.
The indictment further alleges that in 2009, 2010, 2011, 2012, 2013, and 2014, Michael Paul Ernst and Khemwika Ernst filed joint federal income tax returns that did not disclose the income earned by Khemwika Ernst. They were specifically charged for filing false returns for substantially underreporting their income on federal tax returns for 2008 and 2009.
If convicted, Michael Paul Ernst and Khemwika Ernst, face up to five years imprisonment for each count of conspiracy and up to three years imprisonment for filing false returns. The charges and allegations contained in the indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.
The investigation of this case was jointly conducted by the Internal Revenue Service -- Criminal Investigation, Homeland Security Investigations, Naval Criminal Investigative Service, and the Defense Criminal Investigative Service. The prosecution is being handled by Assistant U.S. Attorneys Leslie E. Osborne, Jr. and Andrea W. Hattan.
Former Essex Junction Woman, Tammy Nguyen, Convicted in Federal Court for Defrauding State’s Vermont Health Access Program and Filing A False Tax ReturnRead the Press Release
Eugenia A.P. Cowles, the Acting United States Attorney for the District of Vermont, stated that Tammy Nguyen, 35, of Naples, Florida (formerly of Essex Junction, Vermont), was sentenced today by Chief United States District Court Judge Christina Reiss, to one year of probation, restitution of approximately $41,000.00, and a fine of $10,000.00.
According to Court records, Tammy Nguyen, then employed by the Social Security Administration in Burlington, Vermont, submitted applications for health insurance coverage to the Vermont’s Vermont Health Access Program (VHAP), a program designed for low income Vermonters. Over the course of several years, she submitted applications including false statements regarding her income, child care costs, and other items. Nguyen also drafted and submitted, on Social Security Administration letterhead, a fraudulent letter to VHAP, stating that her income was less than her actual income. As a result, Nguyen paid far less than market rates for health care coverage through VHAP.
Nguyen also made private loans to members of the local Vietnamese community at exorbitant interest rates and did not report the interest income to the Internal Revenue Service (IRS). She submitted false tax returns to the IRS. Further, Nguyen concealed from the Burlington Housing Authority, the fact that her domestic partner, Tam Lai, was living with her at Hillside Terrace, in Burlington, Vermont, for a number of years and, thus, she paid less rent than was actually due. As part of the resolution of the criminal case, she voluntarily agreed to pay restitution to the United States Department of Housing and Urban Development (HUD), in connection with public housing fraud.Nguyen was indicted by a federal grand jury on March 27, 2014 for making false statements in connection with a welfare benefit plan. The grand jury handed down a Superseding Indictment on July 15, 2015 that added a charge of conspiring to defraud HUD. On November 25, 2014, Nguyen pled guilty to filing a false tax return and to welfare benefit fraud. She was released on her own recognizance pending sentencing.
This case was investigated by the Federal Protective Service, the IRS, the Social Security Administration’s Office of Inspector General, the United States Secret Service, and by HUD. Acting United States Attorney Cowles commends those agencies for their work. The case was prosecuted by Assistant United States Attorney Nancy J. Creswell. The defendant was represented by Attorney Mark Kaplan
Former Campbell Resident Sentenced to A Three-Year Prison Term for Participation in Fraudulent Investment SchemeRead the Press Release
SAN JOSE – A founder of the S3 Partners was sentenced March 17, 2015 to 36 months on investment fraud charges, announced United States Attorney Melinda Haag and FBI Special Agent in Charge David J. Johnson.
Sam Stafford, 59, formerly a resident of Campbell, CA now living in Temecula, CA., pleaded guilty on Oct. 17, 2013, to Conspiracy to Commit Wire Fraud, Mail Fraud, and Bank Fraud, in violation of 18 U.S.C. § 1349. Stafford admitted in his plea agreement that from 2006 to 2009, he and his co-defendants Melvin Russell “Rusty” Shields and Michael Sims conspired to defraud individual investors and banks in connection with various real estate development projects. The three defendants used the name “S3 Partners” and conducted business out of a variety of locations including San Jose, CA; Campbell, CA; Hickory, NC; and Valrico, FL.
Shields, Sims, and Stafford collectively obtained more than $21 million from individual investors and banks. Ultimately, all the S3 Partners’ real estate development projects failed and, as a result of the defendants’ illegal conduct, many of the investors sustained a near total loss of their investments.
Stafford admitted in his plea agreement that he, Shields and Sims knowingly created and maintained the false appearance that both private individual investor and bank funds were being used for sound, secured real estate development projects that offered high rates of return. Nevertheless, Stafford admitted in his plea agreement that he, Shields, and Sims did not use the majority of S3 investment monies on the specific real estate projects promised to investors. Instead, they diverted substantial portions of investor monies to other projects, company overhead and other unauthorized uses, including to their personal use. Stafford also admitted in his plea agreement that in many instances he knowingly obtained substantial funds from banks as a result of forged or fraudulent documents. Further, Stafford admitted he knowingly submitted to banks invoices falsely claiming capital improvements on certain S3 Partners projects. Stafford admitted in his plea agreement that his offense conduct harmed more than 10 victims and caused an actual loss to investors and banks of more than $2,500,000.
U.S. District Judge Ronald M. Whyte imposed the 36 month prison term on March 17, 2015 and ordered Stafford to self-surrender by Apr. 21, 2015. Stafford has been out of custody on home electronic monitoring since his May 2012 arrest. In addition to the prison term, Stafford also likely will be ordered to pay some amount of restitution to his victims.
Judge Whyte stated that within 90 days he will issue an order regarding the amount of restitution Stafford will have to pay.
A jury previously convicted Shields and Sims on investment fraud charges on Dec. 23, 2013 following a seven week trial. Judge Whyte on Nov, 17, 2014, previously sentenced Shields to 78 months in prison and Sims to 30 months in prison.
Assistant U.S. Attorneys Joseph Fazioli and Timothy Lucey prosecuted the case with the assistance of Lakisha Holliman and Laurie Worthen. This prosecution is the result of an investigation by the FBI.
Former Bellevue Developer Sentenced to 4+Years in Prison for Tax EvasionRead the Press Release
A former Bellevue based developer and lender who spent millions on personal luxuries while evading a tax obligation of over half a million dollars, was sentenced today in U.S. District Court in Seattle to 54 months in prison and three years of supervised release announced Acting United States Attorney Annette L. Hayes. Instead of paying his taxes, THOMAS R. HAZELRIGG, III, 68, spent millions on gambling, thoroughbred horse racing, private aircraft, country club fees, a Bellevue penthouse, and two homes in the Palm Springs, California area by hiding his income and assets in the names of other people. HAZELRIGG was indicted in July 2013. In December 2014, a jury found HAZELRIGG guilty following a nine-day trial. U.S. District Judge Thomas S. Zilly ordered HAZELRIGG to pay $1,082,249 in restitution to the IRS which includes taxes, interest and penalties. “You went to extremes to keep money from the IRS,” Judge Zilly said. “You manipulated family members and friends to accomplish this goal.”
“This defendant used family members and friends in a wide ranging scheme of deceit and manipulation all to avoid paying taxes he knew he owed,” said Acting United States Attorney Annette L. Hayes. “His greed was enormous – he had all the means to pay but instead chose to embark on a sophisticated effort to evade his obligation to pay taxes. As we approach April 15th, this case serves as a reminder that everyone has an obligation to pay their fair share of taxes and those who don’t – no matter how devious their attempts at evasion are – will be held accountable.”
“We are all taught from a young age that the lie is often worse than the original offense,” said Special Agent in Charge Teri Alexander of IRS Criminal Investigation. “Thomas Hazelrigg cheated on his taxes and then spent many years and a great deal of effort trying to cover it up. The truth finally caught up with him.”
Evidence presented at trial described how HAZELRIGG first agreed to pay $533,454 in taxes owed for tax years 1989, 1990 and 1991 and then failed to pay the tax debt while living a lavish lifestyle that included multi-million dollar property purchases and remodels, and expensive artwork. HAZELRIGG also evaded payment of his taxes owed for 1994, for which he had filed a return showing tax owed, but for which he made no payments. According to testimony at trial, between 1997 and 2007, HAZELRIGG illegally funneled income from his businesses into accounts that he controlled but that he kept secret from the IRS. HAZELRIGG used these accounts to pay for the multi-million dollar purchase and remodel of a Bellevue penthouse, two Chihuly glass chandeliers worth more than $460,000, and two luxury homes in Palm Springs, California. He also used these secret accounts to pay various household expenses including the services of a butler.
HAZELRIGG hid his assets for ten years, until the IRS collection statutes expired. After one of the IRS liens were removed, HAZELRIGG sent an email saying he was “legit again.” Following that email, HAZELRIGG once again took out loans in his own name, and purchased property in his own name.
In their sentencing memo prosecutors noted that HAZELRIGG’s tax evasion scheme “is particularly egregious because he was convicted of evading an agreed obligation that he could well afford to pay. In 1997, after litigating the issue with the IRS for several years, Hazelrigg settled the IRS audit for less than a third of what the IRS initially assessed through its audit. Realizing that he got a good deal, Hazelrigg… pledged to pay what he owed. By 2005, there is no question that Hazelrigg had enough money to easily pay what he had promised the IRS. But instead, Hazelrigg went back on his promise and continued to evade and cheat the IRS out of what he owed.”
The case was investigated by the Internal Revenue Service Criminal Investigation (IRS-CI). The case was prosecuted by Assistant United States Attorneys Matthew Diggs and Brian Werner.
Five Members of Synthetic Drug Distribution Conspiracy Indicted for Selling Millions of Dollars of Illegal CannabinoidsRead the Press Release
Drugs manufactured by owner of “Smokes 4 Less” smoke shopsUnited States Attorney Andrew M. Luger today announced an indictment charging OMAR ZIAD WAZWAZ, 33, and four others with conspiring to distribute synthetic cannabinoids. The defendants are charged with conspiracy to distribute and possession with intent to distribute controlled substance analogues, conspiracy to commit offenses against the United States, and conspiracy to commit money laundering. WAZWAZ is additionally charged with conspiracy to distribute controlled substances. The defendants are making initial appearances in U.S. District Court in St. Paul, Minn.
“Synthetic and designer drugs are both illegal and dangerous,” said U.S. Attorney Luger. “As alleged, these defendants created a criminal enterprise they believed would stay one step ahead of synthetic drug laws. It didn’t, and today they stand charged with conspiracy to sell illegal cannabinoids throughout Minnesota. The investigators who brought down this conspiracy are tireless, and this indictment should give pause to anyone who thinks they can get away with selling drugs by another name.”
According to the indictment and documents filed in court, beginning in approximately January 2010, OMAR ZIAD WAZWAZ owned and operated several smoke shops throughout Minnesota, including “Smokes 4 Less” in Mankato. WAZWAZ sold smokable synthetic cannabinoids (SSCs) in his smoke shops. Beginning in 2011, WAZWAZ began to manufacture his own brand of SSC called, “Kyptonite.” He branded the SSCs sold in his stores with such names as “Kush,” “Tiger’s Blood,” “Grape,” “Kronik,” “Man of Steel,” “Pine-apple,” “Juicy Fruit,” “Kottonmouf King,” “Tropic Thunder,” “Rain of Fire,” “O-Zone,” and others. Through the manufacture and sale of SSCs, WAZWAZ earned millions of dollars.
According to the indictment and documents filed in court, TALEB AWAD, VLADIMIR BRIK, STEVEN LYKE, and DANIEL LYKE conspired with WAZWAZ to manufacture and sell SSCs. The defendants manufactured SSCs by combining synthetic cannabinoids such as “AM-2201,” “UR-144,” and “XLR-11,” with leafy plant material like damiana or marshmallow leaves. The synthetic cannabinoids, which are often sold in powder form, were liquefied with the use of a solvent like acetone or grain alcohol so that the chemicals could be sprayed onto the leafy plant material. This manufacturing process allows users to ingest the drug in the same manner as one would ingest marijuana. WAZWAZ instructed employees of “Smoke 4 Less” to smoke SSCs and report back to him on the effects so that he could adjust the formula as needed.
According to the indictment and documents filed in court, BRIK, WAZWAZ and other co- conspirators also imported synthetic cannabinoids from China. On or about April 5, 2011, BRIK sent a wire transfer of $110,000 to a bank in the country of Liechtenstein to pay for an order of approximately 20 kilograms of synthetic cannabinoid that BRIK requested be sent to WAZWAZ’S store in Mankato, Minn.
The indictment is the result of an investigation conducted by the Minnesota River Valley Drug Task Force, Drug Enforcement Administration, Internal Revenue Service – Criminal Investigation Division, Homeland Security Investigations, U.S. Food and Drug Administration, and U.S. Customs and Border Protection.
This case is being prosecuted by Assistant U.S. Attorney Surya Saxena.
Defendant Information:
OMAR ZIAD WAZWAZ, 33
New Brighton, Minn.
Charges:
• Conspiracy to Distribute and Possession with Intent to Distribute Controlled Substance Analogues, 1 count
• Conspiracy to Distribute Controlled Substances, 1 count
• Conspiracy to Commit Offenses against the United States: Misbranded Drugs, 1 count
• Money Laundering Conspiracy, 1 count
VLADIMIR VLADIMIROVIC BRIK, 25
Duluth, Minn.
Charges:
• Conspiracy to Distribute and Possession with Intent to Distribute Controlled Substance Analogues, 1 count
• Conspiracy to Commit Offenses against the United States: Misbranded Drugs, 1 count
• Money Laundering Conspiracy, 1 count
TALEB JAMAL AWAD, 32
Unknown
Charges:
• Conspiracy to Distribute and Possession with Intent to Distribute Controlled Substance Analogues, 1 count
• Conspiracy to Commit Offenses against the United States: Misbranded Drugs, 1 count
• Money Laundering Conspiracy, 1 count
STEVEN JAU LYKE, 25
Brookston, Minn.
Charges:
• Conspiracy to Distribute and Possession with Intent to Distribute Controlled Substance Analogues, 1 count
• Conspiracy to Commit Offenses against the United States: Misbranded Drugs, 1 count
• Money Laundering Conspiracy, 1 count
DANIEL LEE LYKE, 26
Brookston, Minn.
Charges:
• Conspiracy to Distribute and Possession with Intent to Distribute Controlled Substance Analogues, 1 count
• Conspiracy to Commit Offenses against the United States: Misbranded Drugs, 1 countThe charges contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Federal Grand Jury Indicts Three on Felony Offenses Related to December 2014 Armored Car Heist in AmarilloRead the Press Release
AMARILLO, Texas — A federal grand jury in Amarillo, Texas, returned an eight-count indictment this afternoon charging three men with various felony offenses stemming from an alleged heist of money from an armored car last year in Amarillo, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
Trent Michael Cook, 24, Britt Michael Gresham, 24, and Brian Keith Hodge, 43, are each charged with one count of conspiracy to interfere with commerce by robbery, one count of attempting to interfere with commerce by robbery, and one count of possessing firearms in furtherance of a violent crime. Cook and Gresham are each charged with one count of conspiracy to commit bank theft, and Cook is charged with three counts and Gresham with one count, of bank theft. Hodge is charged with one count of being an accessory after the fact. Hodge is Cook’s father.
All three defendants are in custody and each is expected to make his initial appearance in federal courts sometime next week.
According to the indictment, as part of the conspiracy, Cook purchased firearms to use in a plan to rob the vault of Rochester Armored in Amarillo. The plan involved Cook using his status as an employee of Rochester Armored to gain access to the company vault containing millions of dollars in U.S. currency so that the three defendants could commit the armed robbery of Rochester Armored, using the firearms to threaten force, violence and fear of injury against Rochester Armored employees. Cook and Gresham purchased a van to load and transport bags of U.S. currency taken from Rochester Armored. Hodge attempted to obtain a location in Colorado for the defendants to hide after the robbery. The indictment further alleges that on December 22, 2014, Cook and Gresham took money from an armored car belonging to Rochester Armored.
A federal indictment is an accusation by a grand jury and a defendant is entitled to the presumption of innocence unless proven guilty. Upon conviction, however, the conspiracy count and the substantive count of attempting to interfere with commerce by robbery each carry a maximum statutory penalty of 20 years in federal prison and a $250,000 fine. The firearms offense carries a mandatory five-year penalty and a $250,000 fine. The conspiracy to commit bank theft count and the accessory after the fact count each carry a maximum statutory penalty of five years in federal prison and a $250,000 fine. Each of the bank theft counts carries a maximum statutory penalty of 10 years in federal prison and a $250,000 fine.
The Amarillo Police Department, the Colorado Springs Police Department, the Potter County District Attorney’s Office and the FBI were the investigating agencies. Assistant U.S. Attorney Tim Hammer is in charge of the prosecution.
Essex County, New Jersey, Man Charged with Taking Cellphone Photos of his sexual abuse of childrenRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man was charged today with sexually abusing two children and recording the abuse on his cell phone, U.S. Attorney Paul J. Fishman announced.
Justin Kinney, 26, of Newark, was indicted by a federal grand jury in Newark on two counts of producing child pornography. Kinney was previously arrested and charged by federal complaint on April 20, 2014, and is currently in state custody on related charges. He will be arraigned at a later date.
According to the indictment, other documents filed in this case and statements made in court:
On Oct. 25, 2012, law enforcement officers executed a search warrant on Kinney’s laptop computer and cell phone, which revealed several files depicting child sexual abuse, which appeared to be self-produced and were taken with the same type of cell phone seized from Kinney at the time of his arrest.
Each count of production of child pornography carries a mandatory minimum penalty of 15 years in prison, a maximum potential penalty of 30 years in prison, and a $250,000 fine.U.S. Attorney Fishman credited special agents of Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Newark Division, under the direction of Acting Special Agent in Charge Kevin Kelly and the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Carolyn A. Murray, with the investigation leading to today’s charges.
The government is represented by Assistant U.S. Attorneys Danielle M. Corcione and Danielle Alfonzo Walsman of the U.S. Attorney’s Office Criminal Division in Newark.
15-094
Defense counsel: John Yauch Esq., Assistant Federal Public Defender, Newark
Doctor and Clinic Owner Sentenced for Drug Trafficking and Money Laundering ConspiraciesRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JOSEPH J. MOGAN, III, M.D., age 48, formerly of New Orleans, and TIFFANY MILLER, age 43, of Metairie, were sentenced yesterday for conspiring to dispense prescription drugs illegally through “pill mill” clinics operated as Omni Pain Management in Metairie, Louisiana, and Omni Pain Management Plus in Slidell, Louisiana, and related money laundering charges.
U.S. District Judge Susie Morgan sentenced MOGAN and MILLER each to a term of imprisonment of 97 months, a term of supervised release of 3 years, a $200 special assessment, and asset forfeiture of criminal proceeds and property.
According to court documents, MOGAN and MILLER owned and operated the two clinics and conspired to prescribe narcotics and other controlled substances without a legitimate medical purpose and outside the bounds of professional medical practice to drug seekers and drug abusers.
U.S. Attorney Polite praised the work of the Drug Enforcement Administration in investigating this matter. First Assistant United States Attorney Richard W. Westling and Assistant United States Attorneys Harry “Bill” McSherry and Michael B. Redmann were in charge of the prosecution.
Departments of Justice and Health and Human Services Announce over $27.8 Billion in Returns from Joint Efforts to Combat Health Care FraudRead the Press Release
Administration Recovers $7.70 for Every Dollar Spent on Health Care-Related Fraud and Abuse
More than $27.8 billion has been returned to the Medicare Trust Fund over the life of the Health Care Fraud and Abuse Control (HCFAC) Program, Attorney General Eric Holder and Department of Health and Human Services (HHS) Secretary Sylvia M. Burwell announced today. The government’s health care fraud prevention and enforcement efforts recovered $3.3 billion in taxpayer dollars in Fiscal Year (FY) 2014 from individuals and companies who attempted to defraud federal health programs, including programs serving seniors, persons with disabilities or those with low incomes. For every dollar spent on health care-related fraud and abuse investigations in the last three years, the administration recovered $7.70. This is about $2 higher than the average return on investment in the HCFAC program since it was created in 1997. It is also the third highest return on investment in the life of the program.
“As the innovative and collaborative work of the Health Care Fraud and Abuse Control Program proceeds, more taxpayer money is being recovered, more criminals are facing justice, and more fraud is being punished, prevented and deterred,” said Attorney General Eric Holder. “The extraordinary return on investment we've obtained speaks to the skill, the tenacity, and the inspiring success of the hardworking men and women fighting on behalf of the American people. And with these outstanding results, we are sending the unmistakable message that we will not waver in our mission to pursue fraud, to protect vulnerable communities, and to preserve the public trust.”
“Eliminating fraud, waste and abuse is a top priority for the Department of Health and Human Services,” said HHS Secretary Sylvia Burwell. “These impressive recoveries for the American taxpayer demonstrate our continued commitment to this goal and highlight our efforts to prosecute the most egregious instances of health care fraud and prevent future fraud and abuse. New enrollment screening techniques and computer analytics are preventing fraud before money ever goes out the door. And together with the continued support of Congress and our partners at the Department of Justice, we’ve cracked down on tens of thousands health care providers suspected of Medicare fraud – all of which are helping to extend the life of the Medicare Trust Fund.”
The recoveries announced today reflect a two-pronged strategy to combat fraud and abuse. Under new authorities granted by the Affordable Care Act, the administration continues to implement programs that move away from “pay and chase” to preventing health care fraud and abuse in the first place. In addition, the Health Care Fraud Prevention and Enforcement Action Team (HEAT), run jointly by the HHS Office of the Inspector General and the Justice Department, is changing how the federal government fights certain types of health care fraud. These cases are being investigated through "real-time" data analysis in lieu of a prolonged subpoena and account analyses, resulting in significantly shorter periods of time between fraud identification, arrest and prosecution.
Increased funding from the administration and Congress has allowed HHS and the Justice Department to build on early successes of the Medicare Strike Force by expanding into nine geographic territories – Miami, Los Angeles, Detroit, Houston, Brooklyn, New York, Southern Louisiana, Tampa, Florida, Chicago and Dallas. Since its inception, Strike Force prosecutors filed more than 963 cases charging more than 2,097 defendants who collectively billed the Medicare program more than $6.5 billion; 1,443 defendants pleaded guilty and 191 others were convicted in jury trials; and 1,197 defendants were sentenced to imprisonment for an average term of approximately 47 months. Through the Strike Force and other efforts, in FY 2014 alone, the Justice Department opened 924 new criminal health care fraud investigations. Federal prosecutors filed criminal charges in 496 cases involving 805 defendants. A total of 734 defendants were convicted of health care fraud‑related crimes during the year.
Another powerful tool in the effort to combat health care fraud is the federal False Claims Act. In 2014, the Justice Department’s Civil Division and the U.S. Attorneys’ Offices obtained $2.3 billion in settlements and judgments from civil cases involving fraud and false claims against federal health care programs such as Medicare and Medicaid. Since January 2009, the Justice Department has recovered more than $15.2 billion in cases involving health care fraud. These amounts reflect federal losses only. In many of these cases, the department was instrumental in recovering additional billions of dollars for state health care programs. In FY 2014, the department continued its enforcement of the civil False Claims Act and the Federal Food, Drug and Cosmetic Act, and opened 782 new civil health care fraud investigations.
The Centers for Medicare & Medicaid Services (CMS) is also adopting a number of preventive measures to combat fraud and abuse. Provider enrollment is the gateway to billing the Medicare program, and CMS has put critical safeguards in place to make sure that only legitimate providers are enrolling in the program. The Affordable Care Act required a CMS revalidation of all existing 1.5 million Medicare suppliers and providers under new screening requirements. CMS will have requested revalidations by March 2015. As a result of this and other proactive initiatives, CMS has deactivated 450,000 enrollments and revoked nearly 27,000 enrollments to prevent certain providers from re-enrolling and billing the Medicare program. Both of these actions immediately stop billing. A provider with deactivated billing privileges can reactivate at any time, and a revoked provider is barred from re-entry into Medicare for a period ranging from one to three years. CMS has also issued a regulation requiring prescribers of Part D drugs to enroll in Medicare and undergo screening.
CMS also continued the fiscal 2014 temporary moratoria on the enrollment of new home health or ambulance service providers in six fraud hot spots: Miami, Chicago, Dallas, Houston, Detroit and Philadelphia (which includes some counties in New Jersey). This extension will allow CMS to continue its actions to suspend payments or remove providers from the program before allowing new providers into potentially over-supplied markets.
Similar to the technology used by credit card companies, CMS is using its Fraud Prevention System to apply advanced analytics to all Medicare fee-for-service claims on a streaming, national basis. The Fraud Prevention System identifies aberrant and suspicious billing patterns which in turn trigger actions that can be implemented swiftly to prevent payment of fraudulent claims. In the second year, the system saved $210.7 million, almost double the amount identified during the first year of the program.
The HCFAC annual report is available at www.oig.hhs.gov/publications/hcfac.asp.
For more information on the joint Justice Department-HHS Strike Force activities, visit: www.StopMedicareFraud.gov/.
For more information on the fraud prevention accomplishments under the Affordable Care Act visit: www.healthcare.gov/news/factsheets/2012/02/medicare-fraud02142012a.html.
Defense Attorneys Held in Contempt for Violating Protective OrderRead the Press Release
Following a hearing before United States Magistrate Judge Timothy R. Rice, the Honorable Juan R. Sanchez today held attorneys J. Michael Farrell and Stephen P. Patrizio in civil contempt of court for providing discovery disks to their clients, contrary to a protective order entered by Judge Sanchez in United States v. Whitfield, Parnell, et al., Criminal No. 12-418, announced United States Attorney Zane David Memeger. Attorneys Farrell and Patrizio, and the government, agreed in writing to the contempt sanctions which the Court then imposed after considering the terms of the agreement.
In the case of United States v. Whitfield, Parnell, et al., Mr. Farrell was retained to represent Robert Lamar Whitfield, and Mr. Patrizio was appointed to represent Kenneth Parnell. Defendants Whitfield and Parnell were charged with conspiracy, robbery, and cocaine distribution offenses. The discovery in the case included videos taken by an undercover agent, which disclosed the identities of both the undercover agent and a confidential informant. To protect those identities, the government filed a request for, and the Court granted, a protective order, prohibiting counsel from duplicating the discovery or providing copies to defendants who were in custody awaiting trial. Contrary to the terms of the protective order, attorneys Farrell and Patrizio provided multiple disks of discovery to their clients, including the disks containing the videos recorded by the undercover officer. Ultimately, one of those videos was provided by one of their clients to a Philadelphia television news station, and was played during a television news broadcast.
The attorneys have asserted that this dissemination was inadvertent and not done with willful intent to violate the Court’s protective order. Nonetheless, they have taken full responsibility for having violated the Court’s order. For disclosing this discovery in violation of the Court’s protective order, attorneys Farrell and Patrizio were found in civil contempt of court and ordered to pay $5,000 each. This sum serves both as a penalty for the attorneys’ violation and to induce compliance with the Court’s protective orders in the future.
The United States Attorney’s Office recognizes its obligation to protect victims, agents, and witnesses while providing discovery to defendants and their counsel. To honor these obligations, this office will continue to seek protective orders that limit disseminating discovery materials, and will pursue appropriate sanctions against those individuals, including attorneys, who violate protective orders.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and was handled by Assistant U.S. Attorney Arlene Fisk.
Cardiac Monitoring Company to Pay $6.4 Million for Alleged Overbilling of Government Health Care ProgramsRead the Press Release
BioTelemetry Inc., a heart monitoring company headquartered in Malvern, Pennsylvania, has agreed to pay $6.4 million to resolve allegations made under the False Claims Act (FCA) that its subsidiary, CardioNet, overbilled Medicare and other federal health programs for Mobile Cardiac Outpatient Telemetry (MCOT) services when those services were not reasonable or medically necessary, the Justice Department announced today.
“Billing for a higher-level service that is not necessary to treat a patient’s condition to receive higher reimbursement from federal health care programs will not be tolerated,” said Acting Assistant Attorney General Benjamin C. Mizer of the Justice Department’s Civil Division. “Such conduct wastes critical federal health care program funds and drives up the costs of health care for all of us.”
“Today’s settlement is another example of how we will act to stop abusive billing practices and hold companies accountable for conduct that raises everyone’s healthcare costs,” said Acting U.S. Attorney Annette L. Hayes for the Western District of Washington. “This settlement should send a message to all providers: do not misuse federal billing systems to improperly gouge the healthcare system upon which so many Americans rely.”
An MCOT monitor provides real-time, outpatient cardiac monitoring. MCOT monitors are worn by patients for a period of time during which the device continuously records the activities of the patient’s heart, including any irregular rhythms or other cardiac event, and transmits data to CardioNet’s diagnostic center using cell phone technology. Traditional, less expensive event monitors only download patient data periodically over a landline.
The government alleges that CardioNet was aware that MCOT services were not eligible for Medicare reimbursement when provided to patients who had experienced only mild or moderate heart palpitations, since less expensive monitors could effectively collect data about those patients’ conditions. Nonetheless, CardioNet allegedly submitted claims to Medicare for those patients containing the billing code for the more expensive MCOT services along with an inaccurate diagnostic code that misrepresented the true condition of the patients and their need for MCOT services.
“Sticking taxpayers with a hefty bill for unneeded medical care will never be tolerated,” said Special Agent in Charge Ivan Negroni of the U.S. Health and Human Services, Office of Inspector General (HHS-OIG), Regional Office including Washington. “Working in close coordination with our law enforcement partners we will tirelessly pursue these suspected violators.”
“Federal employees deserve health care providers, including remote monitoring companies, that meet the highest standards of ethical and professional behavior,” said Inspector General Patrick E. McFarland of the U.S. Office of Personnel Management. “Today's settlement reminds all providers that they must observe those standards, and reflects the commitment of federal law enforcement organizations to pursue improper and illegal billings that increase the cost of medical care.”
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $23.8 billion through False Claims Act cases, with more than $15.2 billion of that amount recovered in cases involving fraud against federal health care programs.
This investigation was jointly handled by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the Western District of Washington and HHS-OIG.
The claims resolved by this agreement are allegations only and there has been no determination of liability.
Canadian Man Sentenced for Making False StatementsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.–U.S. Attorney William J. Hochul, Jr. announced today that Christian Dean Reid, 39, a citizen of Canada and the United Kingdom, who was convicted of making false statements, was sentenced to 24 months in prison by U.S. District Judge Richard J. Arcara.Assistant U.S. Attorney Marie P. Grisanti, who handled the case, stated that on October 12, 2014, Reid, a native of England, told an officer of the U.S. Customs and Border Protection that he had not previously been arrested, even though the defendant knew this statement was false. Reid was arrested and convicted of a drug trafficking offense which affects his admissibility into the United States.
The sentencing is the culmination of an investigation on the part of the United States Customs and Border Protection, under the direction of Rose Hilmey, Acting Director of Field Operations.
Bellevue Man who Sold Drugs on ‘Silk Road’ Internet Site Sentenced for Drug Distribution ConspiracyRead the Press Release
A 40-year-old Bellevue, Washington man who was a prolific drug dealer on the online marketplace “Silk Road,” was sentenced today in U.S. District Court in Seattle to five years in prison and four years of supervised release for conspiracy to distribute illegal drugs, announced Acting U.S. Attorney Annette L. Hayes. STEVEN SADLER sold nearly a million dollars’ worth of cocaine, heroin and methamphetamine to people who ordered over the internet via the Silk Road site. He shipped the drugs through the mail. At sentencing U.S. District Judge Ricardo S. Martinez said he is “troubled by this new method, new frontier of drug dealing that is creating a new crop of victims.”
“This defendant thought he could use the internet to spread the poison of illegal drugs far and wide,” said Acting U.S. Attorney Annette L. Hayes. “We will not allow internet connectivity to be blatantly misused to harm public safety. Moreover, as this and other prosecutions demonstrate, attempts to hide in the “dark net” will not succeed.”
According to records in the case, SADLER, under the screen name NOD, began selling illegal drugs on Silk Road in 2012. The internet site was dubbed an anonymous marketplace, where the majority of the business was the sale of illegal drugs. SADLER was selling as much as $70,000 worth of cocaine each month as a dealer on the internet site. When police searched his apartment on July 31, 2013, they found more than a kilogram of cocaine and heroin each, as well as 400 grams of methamphetamine. They also found a .45 caliber semi-automatic pistol hidden under the mattress in his bedroom. SADLER is also forfeiting a 2007 BMW 525 and $4,200 cash seized the day the search warrants were served.
“Sadler transformed himself into one of the top Silk Road drug distributors and profited from the destruction of untold lives,” said Brad Bench, special agent in charge of Homeland Security Investigations in Seattle. “Criminals who operate digital black markets and those who trade their illicit goods on them believe they are above the law. They are mistaken. HSI and its partners are dedicating considerable resources to infiltrating and dismantling underground Internet sites such as the former Silk Road.”
The case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) and the U.S. Postal Inspection Service. The case is being prosecuted by Assistant United States Attorney Thomas Woods.
Bay Area Woman Sentenced to Prison for Real Estate Loan Fraud SchemeRead the Press Release
SAN FRANCISCO – Joyce Esther De Armero was sentenced yesterday to twelve months and one day in prison, and ordered to pay restitution for mail fraud, announced United States Attorney Melinda Haag and Federal Bureau of Investigation Special Agent in Charge David J. Johnson.
De Armero, 37, of San Jose, pleaded guilty on December 4, 2014, to mail fraud. According to the plea agreement, De Armero admitted that she devised a scheme to defraud investors by convincing them to invest in high-interest real estate loans between July 2008 and January 2010. She told the investors that she would invest their money in real estate loans with guaranteed returns. De Armero never made the investments and instead used the funds for her own personal expenses. She also used some of the funds from later investments to pay what she claimed were returns on earlier investments, and thereby perpetuated her fraud scheme. Altogether, she obtained no less than $180,000 from her victims. On October 31, 2013, De Armero was indicted by a federal grand jury; she was charged with mail fraud in connection with her real estate loan investment fraud scheme.
The sentence was handed down by the Honorable Charles R. Breyer, U.S. District Judge, following a guilty plea on one count charging a violation of 18 U.S.C. § 1341. Judge Breyer also sentenced the defendant to a three year period of supervised release. The defendant will begin serving the sentence on May 29, 2015.
Assistant United States Attorneys Robert Rees, Philip Kopczynski, and Acadia Senese are prosecuting the case with the assistance of Beth Margen and Trina Khadoo. The prosecution is the result of a referral from the United States Trustee’s Office of the Northern District of California and an investigation by the San Mateo County District Attorney’s Office and the Federal Bureau of Investigation.
Baltimore Felon Exiled to over 24 Years in Prison for Armed Robbery of A Couple at A Glen Burnie HotelRead the Press Release
Baltimore, Maryland – U.S. District Judge William D. Quarles, Jr. sentenced Rodney Sylvester Wiggins, age 28, of Baltimore, today to 292 months in prison, followed by five years of supervised release, for robbery, brandishing a gun during the robbery and being a felon in possession of a gun and ammunition.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Anne Arundel County Police Chief Tim Altomare; and Anne Arundel County State’s Attorney Wes Adams.
“Rodney Wiggins did not get the message that we have zero tolerance for gun crime after his previous state armed robbery convictions, and now he will be exiled to federal prison for the next 24 years,” said U.S. Attorney Rod J. Rosenstein. “Hopefully others will get the message before it is too late.”
According to evidence presented at his bench trial and other court documents, on February 2, 2013, a husband and wife checked into a Glen Burnie hotel before embarking on a vacation cruise. Wiggins rode up the same elevator as the couple. Shortly after, Wiggins knocked on their room door claiming to be a maintenance employee. Wiggins pointed a gun at the husband and demanded money, keys, credit cards and cell phones. Wiggins threatened to shoot the couple. The husband handed Wiggins $200 and Wiggins left.
The husband reported the robbery to the hotel’s front desk. A hotel employee saw Wiggins on a security monitor walking down a stairwell and leaving the hotel. The employee called 911, walked outside, saw Wiggins crossing a highway toward another hotel, and gave Wiggin’s location to 911. Minutes later, police arrived, arrested Wiggins and seized a loaded handgun and $210.
Wiggins had previously been convicted of a felony and was prohibited from possessing a gun and ammunition.
United States Attorney Rod J. Rosenstein commended the ATF, Anne Arundel Police Department and Anne Arundel State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Bonnie S. Greenberg and Scott A. Lemmon, who prosecuted the case.
Alton Man Found Guilty of Drug and Firearm ChargesRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that Miles "Lou" Musgraves, 31, of Alton, Illinois was found guilty on March 19, 2015, after a 4-day jury trial in federal district court in East St. Louis of one count of Maintaining a Drug-Involved Premises Near a School, one count of Conspiracy to Distribute Cocaine, one count of Felon in Possession of Ammunition, one count of Felon in Possession of a Firearm, and one count of Distribution of Cocaine Near a School.
Sentencing has been set for June 26, 2015 at Federal Court in East St. Louis, Illinois. At that time Musgraves faces statutory penalties of 15 years to life. He will also be subject to fines, supervised release after his prison sentence and a $100 special assessment on each count.
The case was investigated by the Alton, Illinois Police Department. The case was prosecuted by Assistant United States Attorney Donald S. Boyce.
Adventist Health System to Pay $5.4 Million to Resolve False Claims Act AllegationsRead the Press Release
Adventist Health System Sunbelt Healthcare Corporation (Adventist) has agreed to pay $5,412,502 to resolve claims that it violated the False Claims Act by providing radiation oncology services to Medicare and TRICARE beneficiaries that were not directly supervised by radiation oncologists or similarly qualified persons, the Department of Justice announced today. Adventist is a non-profit healthcare organization operating a large network of hospitals in the South and the Midwest, and doing business in Florida as Florida Hospital.
“Today’s settlement demonstrates our continued vigilance to ensure that federal health care beneficiaries receive the highest quality of patient care,” said Acting Assistant Attorney General Benjamin C. Mizer of the Justice Department’s Civil Division. “It is critical that health care providers adequately supervise the services they provide to their patients.”
Radiation oncology services provided to patients served by Medicare and TRICARE, the Department of Defense’s health care program, must be directly supervised by a radiation oncologist or similarly qualified personnel. The United States alleged that, from Jan. 1, 2010, through Dec. 31, 2013, Adventist violated this supervision requirement for radiation oncology services provided to federal health care program beneficiaries at several Florida locations, including in Altamonte Springs, Daytona Beach, Deland, Kissimmee, Orange City, Orlando, Palm Coast and Winter Park. These services included radiation simulation, dosimetry, radiation treatment delivery and devices, and intensity-modulated radiation therapy.
“Medicare and TRICARE patients deserve high quality health care,” said U.S. Attorney A. Lee Bentley III of the Middle District of Florida. “We will not tolerate providers recklessly cutting corners, particularly when furnishing such critical medical services as radiation oncology.”
The settlement partially resolves allegations made in a qui tam lawsuit under the False Claims Act filed in Tampa, Florida, by Dr. Michael Montejo, a radiation oncologist and former employee of Florida Oncology Network P.A., a radiation oncology group. The act permits private individuals to sue on behalf of the government for false claims and to share in any recovery. Dr. Montejo will receive $1,082,500 as his share of the recovery.
“Providing proper supervision of radiation oncology services is an important requirement in federal health care programs such as Medicare,” said Special Agent in Charge Derrick L. Jackson of the U.S. Department of Health and Human Services Office of Inspector General. “Our agency will continue to hold health care providers accountable for meeting the requirements in these taxpayer-funded programs.”
This settlement illustrates the government’s emphasis on combating healthcare fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused on efforts to reduce and prevent Medicare and Medicaid fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $23.8 billion through False Claims Act cases, with more than $15.2 billion of that amount recovered in cases involving fraud against federal health care programs.
The settlement was the result of a coordinated investigation between the U.S. Attorney’s Office for the Middle District of Florida, the Civil Division’s Commercial Litigation Branch and the U.S. Department of Health and Human Services’ Office of Inspector General.
The case is captioned United States ex rel. Montejo v. Adventist Health System Sunbelt Healthcare Corp., Case No. 8:13-CV-206-T-23AEP (M.D. Fla.). The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Adventist Health System to Pay $5.4 Million to Resolve False Claims Act AllegationsRead the Press Release
Orlando, FL – Adventist Health System Sunbelt Healthcare Corporation (Adventist) has agreed to pay $5,412,502 to resolve claims that it violated the False Claims Act by providing radiation oncology services to Medicare and TRICARE beneficiaries that were not directly supervised by radiation oncologists or similarly qualified persons, the Department of Justice announced today. Adventist is a non-profit healthcare organization operating a large network of hospitals in the South and the Midwest, and doing business in Florida as Florida Hospital.
“Today’s settlement demonstrates our continued vigilance to ensure that federal health care beneficiaries receive the highest quality of patient care,” said Acting Assistant Attorney General Benjamin C. Mizer of the Justice Department’s Civil Division. “It is critical that health care providers adequately supervise the services they provide to their patients.”
Radiation oncology services provided to patients served by Medicare and TRICARE, the Department of Defense’s health care program, must be directly supervised by a radiation oncologist or similarly qualified personnel. The United States alleged that, from Jan. 1, 2010, through Dec. 31, 2013, Adventist violated this supervision requirement for radiation oncology services provided to federal health care program beneficiaries at several Florida locations, including in Altamonte Springs, Daytona Beach, Deland, Kissimmee, Orange City, Orlando, Palm Coast and Winter Park. These services included radiation simulation, dosimetry, radiation treatment delivery and devices, and intensity-modulated radiation therapy.
“Medicare and TRICARE patients deserve high quality health care,” said U.S. Attorney A. Lee Bentley III of the Middle District of Florida. “We will not tolerate providers recklessly cutting corners, particularly when furnishing such critical medical services as radiation oncology.”
The settlement partially resolves allegations made in a qui tam lawsuit under the False Claims Act filed in Tampa, Florida, by Dr. Michael Montejo, a radiation oncologist and former employee of Florida Oncology Network P.A., a radiation oncology group. The act permits private individuals to sue on behalf of the government for false claims and to share in any recovery. Montejo will receive $1,082,500 as his share of the recovery.
“Providing proper supervision of radiation oncology services is an important requirement in federal health care programs such as Medicare,” said Special Agent in Charge Derrick L. Jackson of the U.S. Department of Health and Human Services Office of Inspector General. “Our agency will continue to hold health care providers accountable for meeting the requirements in these taxpayer-funded programs.”
This settlement illustrates the government’s emphasis on combating healthcare fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused on efforts to reduce and prevent Medicare and Medicaid fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $23.8 billion through False Claims Act cases, with more than $15.2 billion of that amount recovered in cases involving fraud against federal health care programs.
The settlement was the result of a coordinated investigation between the U.S. Attorney’s Office for the Middle District of Florida, the Civil Division’s Commercial Litigation Branch and the U.S. Department of Health and Human Services’ Office of Inspector General.
The case is captioned United States ex rel. Montejo v. Adventist Health System Sunbelt Healthcare Corp., Case No. 8:13-CV-206-T-23AEP (M.D. Fla.). The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Wednesday 18 March 2015
Williamson County Resident Sentenced for Methamphetamine OffenseRead the Press Release
On March 17, 2015, Shannon L. Connett, 37, of Marion, IL, was sentenced for a methamphetamine violation, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Connett, who had previously pled guilty to a one-count indictment charging conspiracy to manufacture methamphetamine, was sentenced to 78 months in federal prison, with credit for 10 months served on a related-state case. Connett was also placed on 3 years’ supervised release and fined $400.00. The offense occurred between 2012 and March 2014, in Union, Williamson, and Jackson Counties. Evidence at the plea and sentencing hearings established that Connett was involved with co-defendant Jonathan E. Merydith and others in the manufacture of methamphetamine. At sentencing, the district court determined that Connett was responsible for the possession of more than 132 grams of pseudoephedrine. Three co-defendants were previously sentenced for their roles in the methamphetamine conspiracy.
The ongoing investigation is being conducted by the Union County Sheriff’s Office, Jackson County Sheriff’s Office, Illinois State Police, Williamson County Sheriff’s Office, Marion Police Department, Carbondale Police Department, Illinois State Police Methamphetamine Response Team and Drug Enforcement Administration. The 19
th Judicial District Drug Task Force (Tennessee) assisted in the investigation.
The case was assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
Warren County, Kentucky, Woman Sentenced to 72 Months for Setting Fire to the Horse Cave, Kentucky, Dollar General StoreRead the Press Release
BOWLING GREEN, Ky. – A Warren County, Kentucky, woman was sentenced to 72 months in prison followed by 3 years of supervised release by Chief District Judge Joseph H. McKinley, Jr., for maliciously damaging and destroying and attempting to damage and destroy, by means of fire, the Dollar General Store, and the personal property, located in Hart County, Kentucky, announced Acting U.S. Attorney John E. Kuhn, Jr.
Debra Fowler Kessinger, age 58, of Smiths Grove, Kentucky, was convicted on November 21, 2014, of setting a fire on June 27, 2011, that destroyed the Dollar General Store located at 1015 East Main Street in Horse Cave, Kentucky. Following the week-long trial, the federal jury in Bowling Green, deliberated for a little over two hours before reaching its unanimous verdict.
“This defendant not only devised a scheme to defraud her employer, but then attempted to torch a commercial building in order to cover her tracks. The Jury’s conviction and today’s sentence is the result of outstanding collaborative work of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Western Kentucky Arson Task Force,” stated Acting U.S. Attorney John E. Kuhn, Jr.
“Arson is a violent crime that causes millions of dollars in property damage and puts the safety of the general public and fire service personnel at great risk. Investigating Arson is a top priority of ATF. Today, a dangerous criminal was removed from this community and imprisoned for several years based on the heroic fire suppression efforts of the Bowling Green Fire Department and the investigative efforts of the Kentucky State Police, the Western Kentucky Arson Task Force and ATF,” said ATF Special Agent in Charge Stuart Lowrey.
This case was prosecuted by Assistant United States Attorneys Joshua Judd and Marisa Ford and was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Western Kentucky Arson Task Force composed of members from the Bowling Green Fire Department and the Kentucky State Police.
United States District Court Orders Convicted Cigarette Tax Evaders to Pay Municipality of Anchorage over Two Million Dollars in RestitutionRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that United States District Court Judge Sharon L. Gleason ordered Michael Butler, 44, along with Sun Sims, 52, Kyong Hee Kim, 57, Jae Ho Lee, 60, Jae Gak Lee, 62, and Jerry Lee, 60, to pay a total of $2,007, 250, plus interest, in restitution to the Municipality of Anchorage following their convictions on charges that they were participants in a conspiracy to defraud the Municipality of Anchorage (MOA) by evading the payment of cigarette excise tax. The conspirators were indicted on July 18, 2013, on charges including mail fraud, conspiracy to commit money laundering, and conspiracy to make false statements regarding the distribution of cigarettes. Kyong Hee Kim, Sun Sims, Kimberly Sims, Jae Ho Lee, Jae Gak Lee, and Jerry Lee previously pleaded guilty in U.S. District Court for their roles in the conspiracy and other criminal violations. Michael Butler was convicted at trial in November 2014.
According to the court documents, Michael Butler and Sun Sims operated and managed Up in Smoke, located in the MOA, and Golden Eagle Tobacco and Longmere Lake Grocery and Liquor, both located outside the MOA. Because they owned Golden Eagle Tobacco and Longmere Lake Grocery and Liquor, Butler and Sims could legitimately purchase MOA excise tax exempt cigarettes from tobacco wholesale distributors located in the MOA, but only if those cigarettes were actually transported outside of the MOA and offered for sale at those two stores. However, cigarettes that they purchased within the MOA and intended to sell at Up in Smoke or distribute to others within the MOA were not excise tax exempt.
Between 2009 and October 10, 2012, Michael Butler and Sun Sims used their Golden Eagle Tobacco and Longmere Lake Grocery and Liquor store accounts with tobacco wholesale distributors within the MOA to purchase excise tax exempt cigarettes that they intended to sell and distribute within the MOA. Thus, they avoided paying the MOA excise tax and increased their own profits.
The other co-conspirators paid a fee to Michael Butler and Sun Sims for the purchase of excise tax exempt cigarettes. They paid this fee for the tax exempt cigarette in an effort to avoid paying the tax owed to the MOA. Butler and Sims would collect payment from Kyong Hee Kim and other retailers. They would then convert the money collected into cashier’s checks that appeared to be purchased by either Golden Eagle Tobacco or Longmere Lake Grocery and Liquor. They then used these cashier’s checks to purchase more tax exempt cigarettes, which they then delivered to the following retail stores within the MOA:
- Up in Smoke, owned and operated by Michael Butler and Sun Sims and managed by Kimberly Sims
- Mini Stop, owned and operated by Kyong Hee Kim
- Party Time Liquor, owned and operated by Jae Gak Lee
- Cheap Smokes, owned and operated by Jae Ho Lee
- Lucky Seven Foodmart, owned and operated by Jerry Lee
The defendants received the following sentences:
- Michael Butler sentenced on 3/13/15 to 36 months incarceration, 3 years supervised release.
- Sun Sims sentenced on 2/4/15 to 34 months incarceration, 3 years supervised release, $18,000 fine.
- Jae Gak Lee sentenced on 2/2/15 to 16 months incarceration, 3 years supervised release, $100,000 fine.
- Jae Ho Lee, sentenced on 1/21/15 to 16 months incarceration, 3 years supervised release.
- Kimberly Crandell, sentenced on 1/21/15 to 3 years’ probation, $1,500 fine.
- Jerry Lee, sentenced on 1/20/15 to 9 months incarceration, 3 years supervised release.
- Kyong Hee Kim sentenced 12/4/14 to 5 years’ probation.
“Tax evasion unfairly shifts the burden to honest American taxpayers,” said Special Agent in Charge Teri Alexander. “IRS Criminal Investigation together with the Department of Justice will continue to work vigorously to protect our national and local tax systems.”
Municipal Treasurer Daniel Moore added, “On behalf of Anchorage taxpayers who stood as the collective victims in this case, the Municipality appreciates the successful efforts of DOJ, APD, and the IRS in obtaining felony convictions, appropriate jail terms, and restitution. The Municipality expects the results of this case will send a strong deterrent message to white collar criminals who seek to scheme and defraud the government in taxes owed and then expect all other local taxpayers to cover the shortage in revenue to fund city services.”
Assistant U.S. Attorney Stephan A. Collins of the U.S. Attorney’s Office, District of Alaska, prosecuted the case. The case was investigated by the Internal Revenue Service Criminal Investigation (IRS-CI), Alcohol Tobacco and Firearms (ATF), and the Anchorage Police Department.
Undocumented Alien Sentenced for Illegally ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that ISIDRO OROZCO-LOPEZ, age 34, a citizen of Guatemala, was sentenced today after previously pleading guilty to a one-count Bill of Information for illegal reentry of a removed alien.
U.S. District Judge Sarah S. Vance sentenced OROZCO-LOPEZ to time served and a $100 special assessment. OROZCO-LOPEZ will be surrendered to the custody of the U.S. Immigration and Customs Enforcement for removal proceedings.
According to court documents, OROZCO-LOPEZ was found in the United States on November 8, 2014 after having been officially deported and removed on or about November 25, 2013.
U.S. Attorney Polite praised the work of the United States Department of Homeland Security, U.S. Border Patrol in investigating this matter. Assistant United States Attorney Irene González was in charge of the prosecution.
U.S. Attorney's Office Will Not Pursue Charges Against Man Whose Errant Drone Landed at White HouseRead the Press Release
WASHINGTON – The U.S. Attorney’s Office for the District of Columbia announced today that it will not pursue criminal charges against the man who lost control of a drone that landed on the grounds of the White House early Jan. 26, 2015.
The decision was made following an investigation by the United States Secret Service and a review of applicable law. The Federal Aviation Administration has begun a review of the incident for possible administrative action.
The investigation determined that the man had borrowed the quadcopter drone from a friend and had it at his apartment in downtown Washington, D.C. According to an interview with the man, he flew it around his apartment and outside his window late Jan. 25 and early Jan. 26, 2015. Around 3 a.m., the drone was outside over 10th Street when he saw it ascend to an altitude of about 100 feet and head in a westerly direction. He tried to regain control over it, but to no avail. He called his friend, who was unable to advise him how to gain control over the drone.
The man knew that the drone’s battery was nearing the end of its charge and expected that it would crash somewhere over the Mall. He went to sleep not knowing where the drone had gone. After he awoke to news reports of the crash on the White House grounds, he self-reported the incident to the Secret Service.
A forensic analysis of the drone determined that it was not operating under the direction of its controller when it crashed at the White House.
Two more former Freedom Industries officials plead guilty to environmental crimesRead the Press Release
Charleston, W.Va. – Two former Freedom Industries officials, Michael E. Burdette and Robert J. Reynolds, pleaded guilty in federal court in Charleston today to environmental crimes in connection with the January 2014 Elk River chemical spill, U.S. Attorney Booth Goodwin announced. Both men pleaded guilty to negligently discharging MCHM into the Elk River without a permit. Sentencing is set for June 24, 2015.
The case is being investigated by the Federal Bureau of Investigation and the Environmental Protection Agency – Criminal Investigation Division.
Burdette’s and Reynolds’ plea agreements, which include stipulations of facts in which they admit their criminal conduct, are linked below.
Two Morgantown residents convicted of oxycodone traffickingRead the Press Release
CLARKSBURG, WEST VIRGINIA – Brett Ehrhardt, 29, and Loren Delaney, 23, both of Morgantown, West Virginia, were convicted in federal court today for prescription painkiller trafficking in Monongolia County, West Virginia, United States Attorney William J. Ihlenfeld, II, announced.An investigation by the West Virginia State Police Bureau of Criminal Investigation, the Federal Bureau of Investigation, and the Mon Valley Drug and Violent Crime Task Force revealed that Ehrhardt and Delaney were involved in a Philadelphia, Pennsylvania to Morgantown, West Virginia heroin and prescription painkiller distribution operation.
Ehrhardt admitted to selling oxycodone near West Virginia University when he pled guilty today to one count of “Distribution of Oxycodone within 1,000 Feet of a Protected Location.” He faces between one and forty years in prison and a fine of up to $2,000,000.00. Delaney, also known as “Lo,” pled guilty today to one count of “Aiding and Abetting Distribution of Oxycodone.” She faces up to 20 years in prison and a fine of up to $1,000,000.00. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant U.S. Attorney Zelda Wesley is prosecuting the case on behalf of the government.
U.S. Magistrate Judge John S. Kaull presided.
Three Metro Denver Individuals Charged for Large Wells Fargo Bank RobberyRead the Press Release
DENVER – Two individuals from the Metro Denver area were arrested this morning by special agents and task force officers from the FBI led Rocky Mountain Safe Streets Task Force (RMSSTF) on charges of armed bank robbery, U.S. Attorney John Walsh and FBI Denver Division Special Agent in Charge Thomas Ravenelle announced. The defendants were arrested without incident. A third defendant also charged with bank robbery was already in custody on an unrelated matter. One of the two arrested today made his initial appearance this afternoon, where he was advised of his rights and the charges pending against him. The other defendant arrested will make his initial appearance tomorrow.
Gabriel Archuleta, age 19, of Denver, Thomas Lucero, age 21, of Denver, and Thomas McQuonwn, age 48, of Lakewood, have each been charged with one count of armed bank robbery. If convicted of armed bank robbery, each defendant faces not more than 25 years in federal prison, and up to a $250,000 fine. The charges stem from the June 17, 2014 armed robbery of the Wells Fargo Bank at 6000 West 44th Avenue in Wheat Ridge, Colorado. McQuonwn was the defendant who appeared in court today. Archuleta is expected to appear in court tomorrow. Lucero is currently in state custody on unrelated charges.
“The message from these arrests could not be more clear: Federal and state law enforcement does not rest until violent takeover bank robberies of this kind are solved, and the perpetrators behind bars,” said U.S. Attorney John Walsh. “Through relentless, implacable investigation, the FBI Rocky Mountain Safe Streets Task Force and federal prosecutors put together the many pieces of the puzzle in the case, ultimately turning it into the picture framed by today’s Criminal Complaint.”
“Today’s arrests illustrate the FBI’s commitment to work with its partners to address all violent crime including bank robberies,” said FBI Special Agent in Charge Thomas Ravenelle. “This investigation, which spanned many months, was truly a collaborative effort between local and federal law enforcement. The suspects have demonstrated they were willing to meticulously plan every detail of the robbery. The community is safer with these suspects behind bars as they would certainly have committed other violent robberies. We are confident that today’s arrests send a message to those contemplating bank robbery that they will be aggressively investigated and prosecuted to the full extent of the law.”
This case was investigated by the FBI, the Rocky Mountain Safe Streets Task Force, the Wheat Ridge Police Department, the Denver Police Department, and the Lakewood Police Department.
The defendants are being prosecuted by Assistant U.S. Attorney Robert Brown.
A Criminal Complaint is a probable cause charging document. Anyone accused of committing a felony violation of federal law has a Constitutional right to be indicted by a federal grand jury.
Those charged are presumed innocent unless and until proven guilty.
The Leader and Two Members of Folk Nation Gang Operating in the Ebbets Field Houses in Brooklyn Convicted of Racketeering and MurderRead the Press Release
Yesterday, following a three-week trial, the defendants Yasser Ashburn, Jamal Laurent, and Trevelle Merritt were found guilty by a jury in Brooklyn federal court of racketeering and racketeering conspiracy, including as racketeering acts the murders of Courtney Robinson, Brent Duncan, and Dasta James, and related crimes. The defendants were members of, and committed crimes with, a violent set of the Folk Nation street gang.
The verdicts were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, Diego G. Rodriguez, Assistant Director-in-Charge, Federal Bureau of Investigation (FBI), New York Field Office; and William J. Bratton, Commissioner, New York City Police Department (NYPD).
“Today’s verdict is a victory for the residents of the Ebbets Field Houses and the Brooklyn community,” stated United States Attorney Lynch. “For far too long, the defendants and their fellow gang members terrorized this community, murdering innocent young men and committing other violent crimes in their attempt to control what they mistakenly believed was their turf. These defendants will now be held to account for their crimes.” Ms. Lynch extended her grateful appreciation to the Federal Bureau of Investigation and the New York City Police Department, the agencies responsible for leading the government’s investigation.
“Street gangs breed dangerous allegiances that ultimately lead to turf battles, bloodshed, and other senseless acts of aggression against rival gang affiliates and innocent members of the public. The residents of the Ebbets Field Houses should not be plagued by this type of violent criminal behavior. Everyone has a right to live in a society that is free from violence, and today we are one step closer to restoring a sense of security for the residents of this community,” stated FBI Assistant Director-in-Charge Rodriguez.
For almost a decade, the defendant Yasser Ashburn led a Folk Nation set of 20 to 25 members that operated in the Ebbets Field Houses, a New York City public housing community in the Crown Heights neighborhood of Brooklyn. From approximately 2007 until their arrests in 2011 and 2012, the defendants were responsible for numerous acts of gang-related violence, including homicides, non-fatal shootings, and robberies in and around Crown Heights and Flatbush, and elsewhere in the tri-state area.
The government’s evidence at trial established that on April 20, 2008, a fight erupted at a birthday party held in an apartment at the Ebbets Field Houses. After Courtney Robinson entered the fight to protect his nephew who was being beaten by Folk Nation gang members, Ashburn left the melee and retrieved a handgun from the building stairwell where the gang typically stored weapons. Ashburn then returned to the apartment and shot Robinson at point blank range in the back, killing him.
Two years later, on June 19, 2010, the defendant Jamal Laurent shot and killed 18-year-old Brent Duncan while Duncan sat in his car outside party in Brooklyn. Laurent subsequently told a friend that he shot Duncan because Duncan was a member of the rival Crips gang, although no evidence established that Duncan actually belonged to that gang. Two days after the murder, NYPD officers responded to a shots-fired call at Laurent’s residence on Schenectady Avenue in Brooklyn. There, the officers found that a bullet had been fired from Laurent’s bedroom through an adjoining wall into the room of another tenant in the building. The officers entered Laurent’s room and recovered a 9-millimeter Smith and Wesson handgun hidden in a slit in the box-spring of Laurent’s bed. The NYPD Firearms Analysis Section subsequently determined that it was the same gun that Laurent had used to murder Duncan.
During a three-week period in January 2011, the defendant Trevelle Merritt and fellow gang members participated in a robbery spree that culminated in murder. In the first two robberies, Merritt and others robbed two residents of the Ebbets Field Houses of their cell phones. On January 28, 2011, Merritt, Laurent, and another man attempted to rob Dasta James at his residence on McKeever Place in Brooklyn. During the course of the robbery, James was shot in the back and head. He was then taken to Kings County Hospital, where he died.
When sentenced, on July 10, 2015, the defendants Yasser Ashburn and Jamal Laurent face mandatory life imprisonment, and the defendant Trevelle Merritt faces ten years to life.
The government’s case is being prosecuted by Assistant United States Attorneys Darren LaVerne, M. Kristin Mace, and Margaret Lee.
The Defendants:
YASSER ASHBURN, a/k/a “Indio,” “Swerve,” “Supa Swerve 6,” and “Yassen Ashburn”
Age: 31
Brooklyn, NY
JAMAL LAURENT, also known as “Tails”
Age: 25
Brooklyn, NY
TREVELLE MERRITT, also known as “Tiger”
Age: 22
Brooklyn, NY
E.D.N.Y. Docket No. 11-CR-303 (NGG)
Texarkana Man Sentenced to 15 Years in Prison for Child Pornography OffenseRead the Press Release
Texarkana, Arkansas - Conner Eldridge, United States Attorney for the Western District of Arkansas, announced that William Gauld, age 33 of Texarkana, Arkansas, was sentenced today to 180 months in prison without the possibility of parole, followed by ten years of supervised release for Receipt of Images of Child Pornography, a charge he pleaded guilty to in September, 2014. The sentencing took place before the Honorable Susan O. Hickey in the United States District Court in Texarkana.
U. S. Attorney Eldridge stated, “Children are the number one priority for our office, and we will not rest in our efforts to identify, investigate, and prosecute those who commit these despicable crimes against them. Every time a video or image involving sexual abuse of children is downloaded or viewed, those children are re-victimized. We appreciate the hard work of law enforcement to bring these sexual predators to justice.”
“This case shows anyone involved in the trade of child pornography can and will be held accountable for their criminal actions,” said Cindy M. Johnson, acting special agent in charge of Homeland Security Investigations New Orleans. “Sexual abuse scars children for life and HSI will continue to use all the tools in its arsenal to identify and seek prosecution of these criminals, and to seek justice on behalf of their victims.”
According to court records, in March of 2014, during the course of an investigation into the online trafficking of Child Pornography, agents with Homeland Security Investigations and Internet Crimes Against Children’s Taskforce conducted an interview with Gauld concerning pictures and sexually explicit comments he posted to the internet. During the interview, Gauld admitted to downloading child pornography on both his cell phone and his laptop computer. A subsequent forensic examination of those items revealed multiple images and videos of child pornography. One of the videos depicted three nude minor males, approximately nine to twelve years of age, engaging in sexually explicit conduct. At sentencing, the Government presented the Court with evidence that at the time of this offense, Gauld was required to register as a sex offender based on a previous conviction.
This case was investigated by Homeland Security Investigations. Assistant United States Attorney Dustin Roberts and Assistant United States Attorney Jonathan Ross prosecuted the case for the United States.
The case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and their Criminal Division Child Exploitation and Obscenity Sections (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Related court documents may be found on Public Access to Electronic Records Website @www.Pacer.gov
Springfield Man Pleads Guilty to Child ObscenityRead the Press Release
SPRINGFIELD, Mo. ‑ Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Springfield, Mo., man pleaded guilty in federal court today to possessing child obscenity.
Rusty Mann, 35, of Springfield, pleaded guilty before U.S. Magistrate Judge David P. Rush.
On the night of Oct. 21, 2011, a Springfield police detective observed Mann approach a playground on a bicycle. The detective made contact with Mann just outside the fenced area of the playground. Mann was attired in a black mini skirt and women’s knee-high boots; he was identified as the person who had been leaving soiled diapers and clothing on the playground.
As a registered sex offender, Mann was not permitted within 1,000 feet of school property under state law. Mann was placed under arrest at that time. Mann has prior convictions for child molestation and sexual misconduct involving a child.
Mann’s bicycle, backpack and fanny pack were collected from the scene. A search of the backpack yielded a cell phone, along with other items. The investigators conducted a search of the cell phone and located several images of suspected child pornography and obscene cartoon depictions of minors, including a cartoon image of a prepubescent female being sexually assaulted.
Under the terms of today’s plea agreement, Mann will be sentenced to 10 years in federal prison without parole, followed by a life term of supervised release. Upon release from federal incarceration, Mann will be committed to the custody of the Missouri Department of Mental Health for control, care and treatment as a sexually violent predator (under the terms of the Judgment and Order of Commitment entered in Case Number 1131-PR00937, in the Circuit Court of Greene County, Missouri, Probate Division).
This case is being prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the Springfield, Mo., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit
www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Smith County Man Sentenced for Tyler Automax FraudRead the Press Release
TYLER, Texas – A 38-year-old Tyler, Texas, man has been sentenced for wire fraud in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Mohammad Moosa Yahya pleaded guilty on Nov. 19, 2014, to wire fraud and was sentenced to 24 months in federal prison today by U.S. District Judge Leonard E. Davis. Yahya was also ordered to pay restitution in the amount of $455,000.
According to information presented in Court, Yahya served as president of EMN Global Trading Corporation, a Texas corporation based in Tyler. In April 2001, EMN Global Trading began doing business as a used car dealership in Tyler operating under the name Tyler Automax. Beginning in May 2011, Yahya devised a scheme to defraud investors by representing that their funds would be used for operation of the dealership, specifically for the purchase of vehicles that would be resold. Yahya told the prospective investors that they would be paid profits from the vehicle sales. Yahya failed to sue the investors’ money to purchase vehicles and instead misappropriated the funds for his personal use. Yahya was indicted by a federal grand jury on Sep. 13, 2012. In October 2013, Yahya was arrested in Saudi Arabia by Saudi law enforcement officials and returned to U.S. custody in March 2014.
This case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigation and was prosecuted by Assistant U.S. Attorney Frank Coan.
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Smith County Man Sentenced for Possessing Firearm after Family Violence ConvictionRead the Press Release
TYLER, Texas – A 43-year-old Whitehouse, Texas man has been sentenced to federal prison for a firearms violation in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Robert Dean Jackson pleaded guilty on Nov. 4, 2014, to being a misdemeanant family violence in possession of a firearm and was sentenced to 40 months in federal prison today by U.S. District Judge Leonard Davis.
According to information presented in court, on June 19, 2014, state and federal agents executed an arrest warrant for Jackson at his residence in Whitehouse, Texas. Jackson was located on the premises and taken into custody. Jackson’s common-law wife was also present and gave agents consent to search the residence. A search of the home revealed paraphernalia associated with the use of methamphetamine, three firearms and approximately 30 rounds of ammunition. Further investigation revealed Jackson had been previously convicted of assault family violence on Jan. 23, 2009 in Smith County, Texas. As such, Jackson is prohibited by federal law from owning or possessing firearms or ammunition.
This case was prosecuted as part of Project Safe Neighborhoods, aimed at reducing gun and gang violence, deterring illegal possession of guns, ammunition and body armor, and improving the safety of residents in the Eastern District of Texas. Participants in the initiative include community members and organizations as well as federal, state and local law enforcement agencies.
This case was investigated by the Texas Department of Public Safety Criminal Investigation Division, the U.S. Postal Inspector’s Office and the Smith County Sheriff’s Office and prosecuted by Assistant U.S. Attorney Jim Noble.
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Six Cuban Citizens Indicted for Credit Card FraudRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that a federal grand jury has returned four indictments charging Eduardo Hernandez Quinones, 46, Yasser Carrillo Chartrand, 23, Claudia Diaz Diaz, 21, Yaily Santurio Millian, 31, Jose Valdivia Quinones, 40 and Misael Toledo Rios, 39, all citizens of Cuba legally present in the United States, with fraud charges.
Hernandez, Chartrand, Santurio and Diaz are charged with conspiracy to commit bank fraud, access device fraud and aggravated identity theft. Valdivia and Toldeo are charged with bank fraud, access device fraud and aggravated identity theft. The charges for all six defendants carry a mandatory minimum penalty of two years in prison, a maximum penalty of 30 years, and a fine of $1,000,000.
Assistant U.S. Attorney Russell T. Ippolito, Jr., who is handling the case, stated that according to the indictment, the defendants are accused of fraudulently obtaining the actual credit/debit card numbers of people and then encoding counterfeit cards with the information illegally obtained. The defendants then used the counterfeit cards to purchase merchandise at retail stores throughout Western New York. In addition, some of the defendants used the counterfeit cards to purchase gasoline from area gas stations and then re-sold the gasoline for cash.
Four of the defendants, Hernandez, Chartrand, Santurio and Diaz, were recently arrested in DeWitt, NY, near Syracuse, and are facing state fraud charges for similar conduct.
Defendants Chartrand, Hernandez, Quinones, and Santurio were arraigned today before U.S. Magistrate Judge Hugh B. Scott and are being held pending a detention hearing on March 25, 2015 at 10:00 a.m. Defendants Rios and Valdivia Quinones were released on conditions.
The indictments are the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero, the U.S. Secret Service, under the direction of Special Agent in Charge C. Todd Laster, and the New York State Police, under the direction of Major Michael Cerretto.
The fact that a defendant has been charged in an indictment is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Salisbury Cocaine Dealer Sentenced to 20 Years in PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge George J. Hazel sentenced Charles Riley, Jr., age 45, of Salisbury, Maryland, today 20 years in prison, followed by 10 years of supervised release, for conspiracy to distribute and possess with intent to distribute cocaine and for two counts of possession with intent to distribute cocaine. Judge Hazel enhanced Riley’s sentence based on his previous federal drug conviction and the amount of drugs involved in the conspiracy. Riley was convicted on December 11, 2014, after a three day trial.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; Colonel William M. Pallozzi, Superintendent of the Maryland State Police; Wicomico County Sheriff Michael A. Lewis; Salisbury Police Chief Barbara Duncan; Chief Michael Phillips of the Fruitland Police Department; and Wicomico County State’s Attorney Matthew Maciarello.
“Mr. Riley was responsible for trafficking a large amount of cocaine throughout the Salisbury area in a very short amount of time,” said Gary Tuggle, Assistant Special Agent in Charge of the Drug Enforcement Administration, Baltimore District Office. “DEA and our law enforcement partners put an end to Mr. Riley's drug trafficking days. A new day has dawned for Mr. Riley - from a jail cell in a federal prison,” added Tuggle.
The government proved at trial that Riley distributed over 15 kilograms of cocaine in less than two months. Riley distributed approximately 10 kilograms of that amount while on pretrial release on state drug charges.
According to trial testimony and his co-defendants’ plea agreements, from July 2013, through August 27, 2013, Riley conspired with David Wayne Nelson, Royce Levi Brown, Charles Rudolph White and others to distribute cocaine. During the investigation, DEA and the Wicomico County Narcotics Task Force initiated wire taps on cellular telephones belonging to the conspirators and executed search warrants at multiple locations, including residences associated with Riley, Brown, Nelson and White. Law enforcement overheard and observed the conspirators engage in drug transactions. During the investigation, law enforcement identified Riley as a source of supply for Brown, who redistributed the cocaine to Nelson. Brown also purchased cocaine from White.
In late July 2013, law enforcement intercepted telephone conversations and text messages in which Brown told Riley that he was delivering – or had already delivered – large cash payments. The payments to Riley were for kilograms of cocaine that Riley had previously “fronted,” or provided on consignment, to Brown. On August 16, 2013, Riley retrieved a package containing almost 500 grams of cocaine from a residence in Salisbury. Riley was seen on videotape retrieving the package and was in possession of the package later that afternoon, when he was arrested on state drug charges. According to evidence presented at trial, following his arrest Riley discussed the package with Brown, who in turn discussed it with other co-conspirators.
According to trial testimony, on August 16, 2013, law enforcement executed a search at Riley’s home and recovered drug paraphernalia including a cocaine press, a scale, money counter, and drug packaging material. Law enforcement also recovered a loaded AK-47 and a loaded 9mm handgun, as well as ammunition.
According to testimony at his trial, early on August 21, 2013, Riley parked a Jeep Grand Cherokee containing between nine and 10 kilograms of cocaine, in Brown’s yard. On August 27, 2013, a search of the vehicle recovered 5.5 kilograms of cocaine. A subsequent search of Brown’s home recovered an additional two kilograms of cocaine that Brown had removed from the Jeep and hidden in a backpack in his bedroom.
Co-conspirators David Wayne Nelson, age 32, of Salisbury, Maryland, was sentenced to 140 months in prison; Royce Levi Brown, age 31, of Mardela Springs, Maryland, was sentenced to four years in prison; and Charles Rudolph White, age 34, of Salisbury, was sentenced to 37 months in prison.
United States Attorney Rod J. Rosenstein commended the DEA and the Wicomico County Narcotics Task Force comprised of the Maryland State Police, Wicomico County Sheriff’s Office, Salisbury Police Department, Fruitland Police Department and the Wicomico County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Peter J. Martinez and Christopher J. Romano, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Red Oak Man Sentenced in Collin County Mortgage FraudRead the Press Release
SHERMAN, Texas – A 63-year-old Red Oak, Texas man has been sentenced for his role in a mortgage fraud scheme in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Stephen King pleaded guilty on Mar. 16, 2015, to conspiracy to commit wire fraud in connection with his role in a Collin County Mortgage fraud scheme and was sentenced today by U.S. District Judge Marcia Crone to 33 months in federal prison. King was also ordered to pay restitution in the amount of $685,704.73.
According to information presented in court, in 2008, King, a real estate agent, conspired with Euneisha Hearns, Yvonne Gumaer and Kathy Moore to devise a scheme to defraud and obtain money and property by means of false pretenses for the purpose of executing a wire fraud scheme. King, who was assisting buyers in purchasing residences located in Dallas and Lancaster, Texas, referred the buyers to Hearns to obtain mortgage loans to purchase the property. King knew the buyers did not have sufficient funds to make down payments for the loans and he knew that Hearns would make materially false statements on the loan applications in order to obtain the loans. Hearns prepared and submitted materially false applications requesting loans and reflecting that the buyers had funds in bank accounts for the down payments. Hearns and King knew that these statements were false and the buyers did not have that amount of money in bank accounts or sufficient savings to make down payments. King knew the buyers’ down payments would be made from the proceeds of the loans. This scheme resulted in losses to mortgage lenders, including The Federal National Mortgage Association (Fannie Mae) and The Federal Home Loan Mortgage Corporation (Freddie Mac).
Hearns, 34, of Desoto, Texas, was indicted along with King by a federal grand jury on Apr. 11, 2013, for violations related to the mortgage fraud scheme. The indictment for Hearns was superceded in April 2014, for violations of conspiracy to commit money laundering and conspiracy to commit bank fraud. A trial date has not been set for Hearns. A federal indictment is an accusation by a federal grand jury, and a defendant is entitled to the presumption of innocence unless proven guilty. If convicted, Hearns faces up to 40 years in prison for the conspiracy to commit money laundering and up to 20 years in prison for the conspiracy to commit bank fraud.
Others who have been sentenced in connection with the mortgage fraud scheme include:
Yvonne Gumaer, 68, of Galveston, Texas, who was sentenced to 33 months in federal prison and ordered to pay restitution in the amount of $791,782.89; and Kathy Moore, 50, of Broken Arrow, Oklahoma, who was sentenced to 24 months in federal prison and ordered to pay restitution in the amount of $774,377.63.
This law enforcement action is part of President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
This case was investigated by HUD-Office of Inspector General, IRS Criminal Investigation and Federal Housing Finance Agency-Office of Inspector General. The case was prosecuted by Assistant U.S. Attorneys Andy Williams and Chris Eason.
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Randolph County Resident Sentenced on Methamphetamine OffenseRead the Press Release
On March 17, 2015, Carmen J. Clover, 41, of Tilden, IL, was sentenced for her involvement in a methamphetamine conspiracy, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Clover, who had previously pled guilty to the one-count indictment charging conspiracy to manufacture methamphetamine, was sentenced to 57 months in federal prison, to be followed by 3 years’ supervised release, and fined $200. The offense occurred between 2012 and March 2014, in Jackson, Randolph, and St. Clair Counties. Evidence at the plea and sentencing hearings established that Clover was involved with her husband, Allen Clover, and others in the manufacture of methamphetamine. The Clovers often traveled together to obtain pseudoephedrine, which they would later provide to methamphetamine manufacturers. Co-defendants Allen Clover and Jimmy Richeson have pled guilty to their roles in the methamphetamine offense and are awaiting sentencing.
The ongoing investigation is being conducted by the Randolph County Sheriff’s Office, Jackson County Sheriff’s Office, Tilden Police Department, and Drug Enforcement Administration.
The case is assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
Queens, N.Y., Man Sentenced to 210 Months in Prison for Role in New Jersey Heroin Distribution ConspiracyRead the Press Release
NEWARK, N.J. – A St. Albans, N.Y., man was sentenced today to 210 months in prison for his involvement in a scheme to distribute heroin in and through New Jersey, U.S. Attorney Paul J. Fishman announced.
Ronald Burnell Bassett, 62, previously pleaded guilty before U.S. District Judge William H. Walls to Count One of an Indictment charging him with knowingly and intentionally conspiring to distribute one kilogram or more of heroin. Judge Walls imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:Pursuant to federal wiretap orders, the first of which was initiated in December 2009, DEA special agents were able to intercept Bassett’s telephone conversations. The monitored calls and other law enforcement information revealed that Bassett was distributing large amounts of heroin. During the calls, agents overheard Bassett agreeing to deliver heroin to others, among them, James Edward Pender, 42, of Newark, who appeared before Judge Walls on June 5, 2012, and pleaded guilty in connection with his role in the heroin distribution scheme. Agents observed Bassett meeting with Pender on numerous occasions and learned that at least some of the heroin originating with Bassett was delivered to individuals in the Monroeville, Pa., area.
To date, 20 people have been charged for their roles in this heroin distribution conspiracy. Approximately seven kilograms of heroin and $450,000 have been seized.
In addition to the prison term, Judge Walls sentenced Bassett to five years of supervised release and ordered him to pay a $17,500 fine.
U.S. Attorney Fishman credited special agents of the DEA’s New Jersey Division, under the direction of Acting Special Agent in Charge Robert G. Koval, with the investigation leading to today’s sentence.The government is represented by Assistant U.S. Attorney Sharon Ashe, of the U.S. Attorney’s Office Narcotics/Organized Crime Drug Enforcement Task Force Unit in Newark.
13-020
Defense counsel: Ronald Rubinstein Esq., New York
Queens Man Pleads Guilty to Sexually Abusing Minor at Fort Hamilton Army BaseRead the Press Release
Yesterday at the federal courthouse in Brooklyn, Fausto Bonifaz pled guilty to coercing and enticing a minor to engage in sexual activity. The guilty plea was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York.
Bonifaz began to sexually abuse the victim in late 2009 when she was 12 years old. Over the course of the next year, he sexually assaulted her on a weekly basis at the victim’s home at the Fort Hamilton Army Base. At the plea proceeding, Bonifaz admitted that he sexually abused the victim. Bonifaz was a civilian who was admitted to the base as a visitor because he was friends with the victim’s mother. The defendant’s actions were uncovered years later when the victim reported the abuse to a counselor.
In announcing the guilty plea, United States Attorney Lynch expressed her grateful appreciation to the Federal Bureau of Investigation, the agency responsible for leading the government’s investigation.
The plea proceeding took place before Chief United States Magistrate Judge Steven M. Gold. When sentenced, Bonifaz faces a mandatory minimum term of at least ten years in prison and up to a maximum of life, as well as restitution, a fine of up to $250,000, and mandatory registration as a sex offender.
The government’s case is being prosecuted by Assistant United States Attorney Tiana Demas.
This case was brought as part of Project Safe Childhood, a nationwide initiative to protect children by combatting the sexual exploitation and abuse of minors. Led by the United States Attorneys’ Offices around the country, Project Safe Childhood marshals federal, state, and local resources to apprehend and prosecute individuals who exploit children and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.
The Defendant:
Name: FAUSTO BONIFAZ
Age: 39
Queens, New York
Portland Man Sentenced to over Nine Years for Drug Trafficking and Money LaunderingRead the Press Release
Contact: Daniel J. Perry
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that David Jones, 30, of Portland, Maine, was sentenced today in U.S. District Court by Judge George Z. Singal to 110 months in prison to be followed by three years of supervised release for distributing marijuana and money laundering.
According to court records and proceedings, from August 2011 through October 2013, Jones obtained hundreds of pounds of marijuana from an out-of-state source and distributed it in Maine. In October 2013, agents executing search warrants seized $291,981 from a storage unit Jones rented, $92,104 from an associate’s apartment and $6,278 from the defendant’s residence. Agents also seized two boats, a truck, several motorcycles, two trailers, numerous pieces of electronic recording equipment and jewelry. All the seized cash and items were forfeited. Agents also learned that Jones laundered $177,500 of his drug proceeds through financial transactions involving Gary Prolman, Esq. and $39,000 through transactions involving Michael Paul.
This case results from a joint investigation conducted by the U.S. Drug Enforcement Administration, the Federal Bureau of Investigation, the Portland Police Department and the ongoing effort of the Organized Crime Drug Enforcement Task Forces (OCDETF), a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
Philadelphia Store Owners Charged with Defrauding Government Food Assistance ProgramRead the Press Release
PHILADELPHIA - Farhan Ali Abu Siam, 42, and Mohammed Abuawada, 26, both of Philadelphia, were charged yesterday by indictment in a conspiracy to defraud a government assistance program, announced United States Attorney Zane David Memeger. The defendants are charged with conspiracy to commit fraud against the United States Department of Agriculture (USDA)’s Supplemental Nutrition Assistance Program (SNAP), formerly known as the federal Food Stamp program.
Abu Siam and Abuawada owned and operated S&S Farmer’s Market, a retail grocery store, now defunct, that was located at 2722 Germantown Avenue, in Philadelphia. According to the indictment, the defendants trafficked SNAP benefits by purchasing those benefits from customers of S&S Farmer’s Market in exchange for cash, which is illegal. It is further alleged that from June 2012 until March 2013, as a result of their trafficking activities, the defendants sought and received redemption of more than $1 million in SNAP benefits from USDA.
If convicted, each defendant faces a substantial period of incarceration, restitution to the government, three years of supervised release and possible fines.
The case was investigated by the United States Department of Agriculture Office of Inspector General and U.S. Immigration and Customs Enforcemen Homeland Security Investigations. The case is being prosecuted by Assistant United States Attorney Mary E. Crawley.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Owner of Medical Clinic and Accountant Plead Guilty for Roles in $50 Million Medicare Fraud SchemeRead the Press Release
The owner and operator of a New Orleans-based medical clinic and an accountant pleaded guilty today in federal court in New Orleans for their roles in a $50 million Medicare fraud scheme.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Kenneth A. Polite Jr. of the Eastern District of Louisiana, Special Agent in Charge Michael J. Anderson of the FBI’s New Orleans Field Office, Special Agent in Charge Mike Fields of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) Dallas Regional Office and Louisiana Attorney General James D. “Buddy” Caldwell made the announcement.
Paige Okpalobi, 58, of Slidell, Louisiana, and Christopher White, 48, of Destrehan, Louisiana, pleaded guilty before Chief U.S. District Judge Sarah S. Vance of the Eastern District of Louisiana to one count of conspiracy to commit health care fraud and one count of conspiracy to falsify records in a federal investigation. Sentencing hearings for each are scheduled for July 1, 2015.
According to her plea agreement, Okpalobi owned and operated a New Orleans-based medical clinic that employed doctors to certify that Medicare beneficiaries were qualified to receive home health care. Okpalobi admitted that doctors employed at her clinic falsely certified that certain of their clients—specifically, Medicare beneficiaries—were homebound and in need of home health care services. Okpalobi further admitted that she and other co-conspirators then used the false certifications to bill Medicare for fraudulent home health care services through home health care companies she jointly operated with another co-conspirator.
According to his plea agreement, White managed financial and accounting services at Okpalobi’s companies and other companies. White admitted that he coordinated the payment of patient recruiters who illegally sold Medicare beneficiary information to Okpalobi and her co-conspirators. This information was used by home health companies operated by Okpalobi and others to bill Medicare for home health care services that were not medically necessary and often not delivered at all.
Okpalobi and White each also admitted that they fabricated tax and employment records in response to a federal grand jury subpoena to conceal the illegal kickbacks paid and mislead the grand jury.
Okpalobi admitted that between 2007 and 2014, she caused the submission of $49,989,323 in claims to Medicare for home health services that were not medically necessary or not provided.
Thirteen individuals have been indicted in connection with this Medicare fraud scheme, and eight have now pleaded guilty, including two doctors employed at Okpalobi’s medical clinic.
This case was investigated by the FBI, HHS-OIG and the Louisiana Attorney General’s Medicaid Fraud Control Unit (MFCU), and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Louisiana. This case is being prosecuted by Trial Attorneys William Kanellis and Antonio Pozos and Assistant Chief Benton Curtis of the Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,100 defendants who have collectively billed the Medicare program for more than $6.5 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Team (HEAT), go to: www.stopmedicarefraud.gov.
Owner of Medical Clinic and Accountant Plead Guilty for Roles in $50 Million Medicare Fraud SchemeRead the Press Release
WASHINGTON – The owner and operator of a New Orleans-based medical clinic and an accountant pleaded guilty today in federal court in New Orleans for their roles in a $50 million Medicare fraud scheme.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Kenneth A. Polite Jr. of the Eastern District of Louisiana, Special Agent in Charge Michael J. Anderson of the FBI’s New Orleans Field Office, Special Agent in Charge Mike Fields of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) Dallas Regional Office and Louisiana Attorney General James D. “Buddy” Caldwell made the announcement.
Paige Okpalobi, 58, of Slidell, Louisiana, and Christopher White, 48, of Destrehan, Louisiana, pleaded guilty before Chief U.S. District Judge Sarah S. Vance of the Eastern District of Louisiana to one count of conspiracy to commit health care fraud and one count of conspiracy to falsify records in a federal investigation. Sentencing hearings for each are scheduled for July 1, 2015.
According to her plea agreement, Okpalobi owned and operated a New Orleans-based medical clinic that employed doctors to certify that Medicare beneficiaries were qualified to receive home health care. Okpalobi admitted that doctors employed at her clinic falsely certified that certain of their clients—specifically, Medicare beneficiaries—were homebound and in need of home health care services. Okpalobi further admitted that she and other co-conspirators then used the false certifications to bill Medicare for fraudulent home health care services through home health care companies she jointly operated with another co-conspirator.
According to his plea agreement, White managed financial and accounting services at Okpalobi’s companies and other companies. White admitted that he coordinated the payment of patient recruiters who illegally sold Medicare beneficiary information to Okpalobi and her co-conspirators. This information was used by home health companies operated by Okpalobi and others to bill Medicare for home health care services that were not medically necessary and often not delivered at all.
Okpalobi and White each also admitted that they fabricated tax and employment records in response to a federal grand jury subpoena to conceal the illegal kickbacks paid and mislead the grand jury.
Okpalobi admitted that between 2007 and 2014, she caused the submission of $49,989,323 in claims to Medicare for home health services that were not medically necessary or not provided.
Thirteen individuals have been indicted in connection with this Medicare fraud scheme, and eight have now pleaded guilty, including two doctors employed at Okpalobi’s medical clinic.
This case was investigated by the FBI, HHS-OIG and the Louisiana Attorney General’s Medicaid Fraud Control Unit (MFCU), and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Louisiana. This case is being prosecuted by Trial Attorneys William Kanellis and Antonio Pozos and Assistant Chief Benton Curtis of the Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,100 defendants who have collectively billed the Medicare program for more than $6.5 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Team (HEAT), go to: www.justice.gov/criminal-fraud/health-care-fraud-unit.
North Richland Hills Man Sentenced to 36 Months in Federal Prison for Preparing and Submitting False Income Tax Returns That Resulted in over A $1 Million Loss to IRSRead the Press Release
DALLAS — A defendant who admitted causing false income tax returns to be filed with the Internal Revenue Service (IRS) was sentenced today, announced Acting U.S. Attorney John Parker of the Northern District of Texas.
Michael Lloyd Moody was sentenced by U.S. District Judge Barbara M. G. Lynn to 36 months in federal prison and ordered to pay restitution to the IRS.
Moody was indicted in March 2013 on 16 counts of aiding and assisting in the preparation and presentation of false and fraudulent individual income tax returns. He pleaded guilty in December 2013 to two of those counts. He was on pretrial release until October 2013 when the Court found he had violated its terms and conditions and remanded him into custody.
According to the factual resume filed in the case, from 2009 through 2010, Moody prepared U.S. Individual Income Tax Returns, Form 1040, along with supporting schedules, at his residence in North Richland Hills, Texas. After meeting his customers, Moody would deliver the completed returns to Universal Tax, located at 415 East Airport Freeway in Irving, Texas, to be electronically filed with the IRS. Universal Tax was assigned an Electronic Filing Identification Number (EFIN) by the IRS authorizing the electronic filing of tax returns.
Moody admits, according to the factual resume, that he inserted false or inflated deductions and credits to produce fraudulent refunds for the IRS to pay.
As an example noted in the factual resume, in one instance, on approximately March 1, 2010, Moody prepared and caused to be filed an individual tax return for a particular individual. In preparing the Form 1040, Moody knowingly, and with the intent to deceive the IRS, included $37,044 as a Schedule C business loss and $2,349 on Form 8863 as an education credit due the individual. In reality, however, this individual did not own a Schedule C business, nor did he incur education expenses for the education credit. Due to the false deduction and credit inserted by Moody, the refund was inflated and resulted in a loss to the government of $7,906.
The investigation was conducted by IRS Criminal Investigation.
Assistant U.S. Attorney Chris Stokes prosecuted.
Montgomery County Man Pleads Guilty to A $1.1 Million Fraud Scheme Targeting Victims Found on Online Dating SitesRead the Press Release
Greenbelt, Maryland - Krist Koranteng, age 33, of Burtonsville and Laurel, Maryland, pleaded guilty today to a mail and wire fraud conspiracy, and to money laundering, in connection with a scheme in which the conspirators pretended to be romantically interested in the victims in order to cause the victims to wire, deposit, and mail money to Koranteng’s business. The total losses to the victims, including elderly individuals, as a result of the scheme are more than $1.1 million. Koranteng also pleaded guilty to violating his supervised release for a previous federal drug conviction.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Special Agent in Charge Kathy A. Michalko of the United States Secret Service - Washington Field Office; and Chief J. Thomas Manger of the Montgomery County Police Department.
According to his plea agreement, between September 2012 and February 2014, Koranteng and others executed a scheme in which the conspirators searched online dating websites to initiate romantic relationships with men and women, including several elderly individuals, in order to obtain money from those individuals. Members of the conspiracy used phone calls, emails, and text messages to form romantic relationships with the victims.
According to the plea agreement, to execute the scheme, the conspirators used a number of false stories and promises to convince the victims to give money to the members of the conspiracy, including: stories about investing in fake gold that required payments for shipping and storage; fictitious sick family members who needed money; fake hospital bills; and fake plane trips to visit the victims. Members of the conspiracy convinced the victims to mail checks to Kristsons LLC, a corporation that Koranteng created and controlled, or to wire money into bank accounts held in the name of that corporation, which Koranteng also controlled.
To conceal the scheme from the victims, the conspirators created false documents, including false certificates of origin certifying the existence of gold bars, and false documentation creating the impression that the gold bars were being stored at a safe house for a fee.
Koranteng disbursed the money that he received from the victims by transferring money to other accounts, by withdrawing sums of money, and by writing checks to other individuals. For example, on May 30, 2013, Koranteng transferred by wire $39,039.88 from one of his business’ bank accounts to another account, with the knowledge that the transaction involved the proceeds of a criminal offense.
Koranteng was regularly in communication with his co-conspirators immediately following a victim’s transfer of money into Koranteng’s business bank accounts. For example, on February 20, 2013, a victim transferred $25,000 into Koranteng’s business bank account in Maryland. That same day, Koranteng’s co-conspirator sent an email to Koranteng that included two attachments: a receipt for that victim’s wire transfer; and a purported agreement indicating the victim believed she was investing in gold bars by transferring the money to Koranteng.
In addition to receiving money from the victims during the conspiracy, Koranteng also used a false name to order and send roses to one victim. Shortly thereafter, that victim mailed a check in the amount of $65,000 to Koranteng’s business in Maryland, which Koranteng deposited.
As part of his plea agreement, Koranteng will be required to pay restitution of $1,171,657, which represents the full amount of the victims’ losses.
Koranteng’s participation in the wire and mail fraud conspiracy violated the terms of his supervised release for a 2013 conviction for conspiracy to distribute and possess with intent to distribute heroin.
Koranteng faces a maximum sentence of 20 years in prison for the conspiracy to commit mail and wire fraud; and a maximum of 10 years in prison for money laundering. Koranteng also faces a maximum of three years in prison for violating his federal supervised release. U.S. District Judge Paul W. Grimm has scheduled sentencing for July 2, 2015, at 9:30 a.m. Koranteng remains detained pending sentencing.
United States Attorney Rod J. Rosenstein praised the FBI, U.S. Secret Service and Montgomery County Police Department for their work in the investigation, and thanked the Ohio Attorney General’s Office for its assistance. Mr. Rosenstein thanked Assistant United States Attorneys Leah J. Bressack and David I. Salem, who are prosecuting the case.
Monroe County Man Charged with Producing and Distributing Child PornographyRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Tobyhanna man was indicted yesterday by a federal grand jury in Scranton on charges of producing child pornography and receiving and distributing child pornography.
According to United States Attorney Peter Smith, the grand jury alleges that Robert Ferraro, age 44, persuaded and induced a minor to engage in sexually explicit conduct for the purpose of producing images of such conduct. The indictment alleges that Ferraro committed the crimes between August 2013 and January 2015.
The charges stem from an investigation by Homeland Security Investigations, the Pennsylvania State Police, and the Monroe County District Attorney’s Office.
Ferraro faces a mandatory minimum sentence of 15 years in prison and a maximum sentence of 30 years in prison if he is convicted of the production of child pornography charge; and faces a mandatory minimum sentence of five years in prison and a potential maximum sentence of 20 years in prison if he is convicted of receiving and distributing child pornography.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Assistant U.S. Attorney Francis P. Sempa is prosecuting the case.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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