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30 April 2015
Randolph County Business, Management Members IndictedRead the Press Release
GREENSBORO, N.C. – A Randolph County business, the company’s current president, and the company’s former president have been indicted for conspiring to import merchandise by means of fraudulent invoices and conspiring to commit international money laundering, announced Ripley Rand, United States Attorney for the Middle District of North Carolina.
Branco Enterprises, Inc., a North Carolina-incorporated business, located in Asheboro, N.C., as well as Chad Franklin Branson and Larry Wayne McKenzie, both of Randolph County, are alleged to have conspired and agreed to defraud the United States by filing false entry documents with United States Customs. The alleged false documents were associated with the importation of foreign-manufactured clothing in an alleged attempt to underpay import duties. The Indictment charges further that the defendants promoted this fraudulent underpayment of import duties by wiring money to Chinese clothing manufacturers. Branson and McKenzie face up to 25 years in federal prison and $750,000 in fines if convicted of both counts. The company faces fines up to $1 million if convicted of both counts.
The case is being investigated by the United States Department of Homeland Security (including Customs and Border Protection and Immigration and Customs Enforcement, Homeland Security Investigations), and the Internal Revenue Service.
An Indictment is not evidence of guilt. All defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
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Puerto Rican Woman Admits Smuggling Cocaine into New JerseyRead the Press Release
NEWARK, N.J. – A woman from Puerto Rico today admitted trying to smuggle 2.9 kilograms of cocaine through Newark Liberty International Airport, U.S. Attorney Paul J. Fishman announced.
Kenia Diaz, 24, pleaded guilty before U.S. District Judge Susan D. Wigenton in Newark federal court to an indictment charging her with one count of possessing cocaine with intent to distribute.
According to documents filed in this case and statements made in court:
On May 22, 2013, Diaz arrived at Newark Liberty International Airport on a flight from Puerto Rico. During a routine inspection, a canine detected a controlled substance inside Diaz’s suitcase. After searching the suitcase, agents recovered approximately 2.9 kilograms of cocaine.
The narcotics charge to which Diaz pleaded guilty carries a maximum potential penalty of 20 years in prison and a $1 million fine. Sentencing is scheduled for Aug. 11, 2015.
U.S. Attorney Fishman praised special agents of the DEA, Newark Division, under the direction of Special Agent in Charge Carl J. Kotowski with the investigation leading to today’s guilty plea.
The government is represented by Special Assistant U.S. Attorney Thomas S. Kearney of the U.S. Attorney’s Office General Crimes Unit in Newark.
Defense counsel: Kevin Carlucci Esq., Newark
diaz_kenia_plea_indictment.pdf
Prison Sentence Imposed on "Mr. Big" - Final Defendant in $15.5 Million Dollar Decade Long Psychic SwindleRead the Press Release
PORTLAND, Ore. – On April 30, 2015, U.S. District Judge Robert E. Jones sentenced Blancey Lee, 40, of Portland, to 24 months in prison for his role in a conspiracy to commit money laundering and his filing of false personal income taxes for 2012. Judge Robert E. Jones also ordered Blancey Lee to pay $2,599,809.07 in restitution to the victim. In addition to the prison sentence, the defendant must also serve three years of post-prison supervised release. The co-defendant, Rachel Lee, 44, of Canby, Oregon was sentenced on February 19th, 2015 by U.S. District Judge Jones to serve 100 months in federal prison, and pay $15,490,978.65 in restitution. Co-defendant, Porsha Lee, 25, of Northern California, was sentenced on March 15, 2015, by U.S. District Judge Jones to serve 33 months in federal prison and pay $12,822,262.25. The co-defendants restitution obligations are joint and several.
“Individuals who knowingly steal from the vulnerable or benefit and turn a blind eye to these predatory acts will be prosecuted to the fullest extent of the law,” said Acting U. S. Attorney Billy J. Williams. “Due to the combined efforts of federal, state, and local law enforcement, and the effective use of federal forfeiture, the victim is now safe and financially stable. We will continue to work tirelessly with our law enforcement partners to hold self-serving crooks accountable, protect victims, and seek full restitution.”
The victim met codefendant Rachel Lee in 2004 when he visited her Psychic Shop in Bend, Oregon. At the time, Blancey Lee and Rachel Lee lived together as a couple at the Psychic Shop and presented themselves as husband and wife. Between 2004 and 2006, Rachel Lee fostered a friendship with the victim for the purpose of extracting money from him. As a result of her lies and the trust she established with the victim, Rachel Lee assumed a role as paid care giver to the victim’s elderly father by 2007. Trusting her to act in his best interest, the victim also turned over all personal and business account control to Rachel Lee. While controlling the victim’s finances, Rachel Lee, Blancey Lee, and their families lived in a million-dollar home in the Portland West Hills purchased with the victim’s money.
Rachel Lee recruited members of her family to play key roles in the fraud scheme. Rachel Lee and her daughter Porsha Lee created a fake persona and introduced this character to the victim. They named the character Mary Marks. This character wore a blond wig, glasses, a hat and sported a British accent. Porsha Lee as Mary Marks met the victim and used information her mother provided her to connect with the victim. Porsha Lee as Marks claimed to be a bookkeeper, and soon after began assisting Rachel Lee with the management of the victim’s accounts.
By 2011 the victim believed he and Marks married and had a child. The child presented to the victim as his son is actually one of Rachel Lee’s grandchildren. Digital images reveal years of holidays, birthdays and events with the victim, Rachel Lee, Porsha Lee as Marks, and their purported child.
Between 2007 and 2011 Rachel Lee directed the victim to incrementally liquidate investments accounts totaling approximately $3.8 million dollars. After depleting the victim’s investment account, Rachel Lee convinced the victim he owed substantial taxes and needed to sell his family’s Tree Farm. At Rachel Lee’s direction, the Tree Farm properties were sold for a total of approximately $12.3 million dollars.
Rachel Lee, Blancey Lee, and Lee family members spent the victim’s fortune on a luxury lifestyle. Rachel Lee and Blancey Lee spent funds on high-roller trips to Las Vegas, trips to California, and a first class trip to Europe in 2013. Rachel Lee also spent her ill-gotten gains on luxury clothing and jewelry, including a $64,000 Rolex watch for Blancey Lee. While selling off the victim’s property, Rachel Lee and Blancey Lee purchased a 2012 Bentley Mulsanne and 2012 Ferrari on a single day, and plated those vehicles “MRBIG” and “MRBIG1”. Finally, between 2010 and 2013, Rachel Lee and Blancey Lee used the victim’s money to purchase at least ten properties at a cost of approximately $3.3 million dollars. Rachel Lee and Blancey Lee used four of the properties – in Bend, Portland, Canby, and Scappoose – as Psychic Shops.
As a result of investigators’ foresight, before the defendants were arrested or charged, bank accounts worth approximately $1.9 million dollars and assets including a 2012 Ferrari California and 1955 Chevy Bel-Air were identified and immediately seized to be forfeited and returned to the victim before they could be dissipated by the defendants.
By the time of Rachel Lee’s arrest and indictment in May 2014, the victim held less than $250,000 in accounts under his control. Through the initiation of forfeiture proceedings, the Bentley, the Ferrari, the Bel-Air, and 10 real properties have already been returned to the victim, and efforts are underway to restore to the victim the $1.9 million in cash seized and forfeited from bank accounts. The government is initiating civil forfeiture proceedings to liquidate numerous Rolexes and other designer goods purchased by the defendants and will provide those proceeds to the victim.
“Greed and deceit led to incredible financial harm to the victim in this case,” said Special Agent in Charge Teri Alexander of Internal Revenue Service Criminal Investigation. “While the recovery of funds and assets could never fully heal the wounds he sustained from being robbed of earnings derived over several generations, we successfully salvaged a significant portion of the money syphoned off by the Lee’s treachery. I am pleased that we will be able to return all the recovered funds and proceeds from the sale of assets to the victim.”
Canby Police Chief Bret Smith, said: “The Canby Police would like to express our appreciation and acknowledgement to the U.S. Attorney’s Office and to the Internal Revenue Service for their support and the many extra hours of hard work it took to bring this criminal investigation to a successful resolution”.
This case was investigated by the Internal Revenue Service, Criminal Investigations and the Canby Police Department with assistance from the Multnomah County Sheriff’s Office, Social Security Administration - Office of Inspector General, the Oregon Department of Justice, and the Portland Police Department. The case is being prosecuted by Assistant U.S. Attorney Donna Brecker Maddux and Assistant U.S. Attorney AnneMarie Sgarlata.
Portion of State Highway Route 140 Named in Honor of Rick Oules, Former Law Enforcement Coordinator for the U.S. Attorney’s OfficeRead the Press Release
SACRAMENTO, Calif. — Earlier today in Merced in the presence of his family and many friends and former colleagues, a ceremony was held in honor of Rick Oules, former Law Enforcement Coordinator for the United States Attorney’s Office for the Eastern District of California, that included the unveiling of the Rick K. Oules Memorial Highway sign. Pursuant to a bill introduced in the state legislature earlier this year by Senator Anthony Canella (Ceres), the portion of State Highway Route 140 from Arboleda Drive to Plainsburg Road in Merced County will now be known as the Rick K. Oules Memorial Highway.
Rick began his career in law enforcement in 1977 with the Merced County Sheriff’s Office, where he served as a Patrol Deputy, a Narcotics Detective, and a Patrol Sergeant. In 1987, he joined the California Department of Justice as a Special Agent and was assigned to the Bureau of Narcotic Enforcement, where he worked on and supervised a clandestine lab enforcement team resulting in the investigation and dismantling of approximately 300 methamphetamine laboratories. In 2005, he was appointed as the Director of the California Department of Justice’s Division of Law Enforcement, one of the largest state investigative law enforcement agencies in the United States. During his career with the State of California, Rick served as President of the California Narcotic Officers’ Association (CNOA), served on the CNOA Executive Board of Directors and the Executive Board of Directors of the California Peace Officers’ Association, and was appointed to the California Council on Criminal Justice.
In January of 2008, Rick joined the United States Attorney’s Office as our Law Enforcement Coordinator. As LEC, Rick represented our office and the United States Department of Justice as the primary point of contact for the 34 county sheriffs’ offices, more than 100 police departments, and multiple other state local and tribal law enforcement agencies that serve the Eastern District of California. He served as LEC with great distinction until his untimely death in 2011, after a courageous battle with lung cancer that was determined to be a result of his frequent long-term exposure to the chemicals and solvents found in the methamphetamine laboratories he dismantled over the course of his career.
“Rick Oules was a dedicated, skilled and effective lawman, who spent years making California a safer place to live,” said United States Attorney Benjamin B. Wagner. During the all too brief time that we were fortunate to have with him, he represented the U.S. Attorney’s Office with dignity and grace, and to great effect. We miss all the great work that he did, but we miss him more as a friend. We are so pleased to see the establishment of this memorial in his name.”
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Pittsburgh-area Men Indicted on Drug, Firearms and Money Laundering ChargesRead the Press Release
Defendants with prior felony convictions face potential life sentences if convicted
PITTSBURGH - Four Pittsburgh-area residents have been indicted by a federal grand jury in Pittsburgh on charges of violating the federal narcotics, firearms and money laundering laws, United States Attorney David J. Hickton announced today.
The six-count superseding indictment, returned on April 14, named Price Montgomery, 34, formerly of Pittsburgh, Pa., (currently incarcerated); James Perrin, 36, formerly of Pittsburgh, Pa., (currently incarcerated); Charles Cook, 48, of Pittsburgh, Pa.; and Andre Avent, 37, of Homestead, Pa., as the defendants.
According to the superseding indictment, from April 2013 and continuing to June 2014, in the Western District of Pennsylvania and elsewhere, Montgomery and Perrin conspired to distribute one kilogram or more of heroin, and possessed with intent to distribute that heroin. The indictment also charges that on June 8, 2014, Montgomery and Perrin, who both have prior felony convictions, possessed 16 firearms in furtherance of that drug trafficking crime. Federal law prohibits a convicted felon from possessing firearms. Montgomery, Cook and Avent are charged with conspiring to commit money laundering.
Based upon their prior convictions, the law provides for mandatory minimum sentences of 25 years (Montgomery) or life (Perrin), and a maximum sentence of life. Cook and Avent face a maximum sentence of 20 years in prison, a fine of $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Gregory J. Nescott is prosecuting this case on behalf of the government.
The Pennsylvania Attorney General’s Office, the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Internal Revenue Service – Criminal Investigation conducted the investigation leading to the superseding indictment in this case.
A superseding indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pharmacy Technician Indicted for Mail Fraud in Prescription Reimbursement SchemeRead the Press Release
BIRMINGHAM -- A federal grand jury today indicted a former Madison County pharmacy technician for mail fraud in connection with a prescription drug insurance reimbursement scheme, announced U.S. Attorney Joyce White Vance and U.S. Postal Inspector Frank Dyer.
A five-count indictment filed in U.S. District Court charges HOLLY L. CHAMPION, 29, of Madison, with five counts of mail fraud between February 2011 and June 2012 when she worked for Star Discount Pharmacy in Meridianville in Madison County. According to the indictment, Champion submitted false prescription information to her insurance provider, Blue Cross and Blue Shield of Alabama, causing the company to mail her checks totaling about $7,600 as reimbursement for prescription drugs she never purchased.
Champion entered false prescription information on herself and family members into the pharmacy's automated prescription dispensing system so it would generate a claim number, which she then submitted to Blue Cross seeking up to 80 percent reimbursement for the cost of the fake prescriptions, according to the indictment.
The maximum penalty for each mail fraud count is 20 years in prison and a $250,000 fine.
The U.S. Postal Inspection Service investigated the case, which Assistant U.S. Attorney Davis A. Barlow is prosecuting.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
Pakistan National Indicted in Multi-National Cybercrime InvestigationRead the Press Release
CONCORD, N.H. –Mustafa H. Arif, an individual with dual citizenship in Pakistan and the United Kingdom, has been indicted for his alleged role in a large-scale international scheme to defraud individuals of over $12 million. Arif is alleged to have operated a series of websites promoting a variety of drugs and claiming these products would cure many serious diseases. These websites targeted individuals from New Hampshire as well as throughout the world, announced Acting United States Attorney Donald Feith.
Arif has been charged in a three count indictment, including one count of wire fraud and two counts of shipping misbranded drugs in Interstate Commerce. The charges relate to hundreds of websites controlled by Arif while operating in Pakistan. The websites promoted the sale of drugs claiming to cure, mitigate, and treat numerous diseases and included materially false and misleading information about the efficacy of these drugs.
The websites, many of which included allegedly falsified clinical research, promoted drugs for a numbers of serious and sometimes incurable illnesses including anemia, mental retardation, ADHD, Bell’s palsy, and bulimia.
Arif, who appeared in United States District Court today for arraignment, was previously arrested in February 2014 in New York City pursuant to a criminal complaint. He was thereafter transported to New Hampshire to answer those charges and he has remained in custody since then.
This case is scheduled for trial on June 16, 2015. If convicted on the pending charges, Arif faces up to twenty (20) years in prison for the wire fraud count and up to three (3) years in prison for each count of introducing misbranded drugs into interstate commerce.
This investigation was led by the FDA/Office of Criminal Investigations, Cybercrime Investigations Unit along with Homeland Security Investigations. Assistance during the investigation was provided by the New Hampshire Attorney General’s Office, Portsmouth New Hampshire Police Department, the United States Consulate, Diplomatic Security Service Lagos, Nigeria office, New Zealand Ministry of Health, United Kingdom Medicines and Healthcare Products Regulatory Agency, and the Department of Justice, Office of International Affairs. The investigation is being prosecuted by Assistant United States Attorney Arnold Huftalen and SAUSA Sarah Hawkins of the FDA/Office of Chief Counsel.
An indictment is a method for alleging criminal charges against an individual. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
Operation Rockfish Press ConferenceRead the Press Release
MEDIA ADVISORY
WHEN: Thursday, April 30, 2015 at 1:00 pm
WHERE:
Terry Sanford Federal Building
U.S. Attorney’s Office
310 New Bern Avenue, 3rd Floor Main Conference Room
Raleigh, NC 27601-1461
Re: Operation Rockfish Press ConferenceRALEIGH – The United States Attorney’s Office announces a press conference to discuss the Public Corruption Operation Rockfish arrests today. The case involves a major undercover investigation of current and former law enforcement and corrections officers. The following dignitaries are scheduled to join U.S. Attorney Thomas G. Walker. Acting Chief of the Department of Justice Public Integrity Section Raymond Hulser, and the Special Agent in Charge of the Charlotte Division of the FBI John A. Strong, and Frank Perry, Secretary, North Carolina Department of Public Safety .
Credentialed members of the media are invited to attend. For additional information please e-mail Michelle Solomon-Brown at [email protected].Ocean County, New Jersey, Man Admits Conspiring to Export Firearms Parts from the United StatesRead the Press Release
CAMDEN, N.J. – A Toms River, New Jersey, man today admitted his role in a conspiracy to smuggle more than $200,000 worth of firearms parts out of the United States, U.S. Attorney Paul J. Fishman announced.
Abelardo Delmundo, 53, pleaded guilty before U.S. District Judge Noel L. Hillman in Camden federal court to an information charging him with one count of conspiracy to violate the Arms Export Control Act and U.S. anti-smuggling laws.
According to the documents filed in this case, other cases and statements made in court:
Delmundo admitted that from 2008 through October 2013, he and other conspirators he met through an internet forum agreed to ship firearms and firearms parts from the United States to the Philippines. Kirby Santos, 38, of the Republic of the Philippines and others allegedly used credit cards and other forms of payment to purchase firearms parts from suppliers in the United States. Knowing that they would not ship to the Philippines, Santos and others arranged for the suppliers to send the firearms parts to Delmundo’s Toms River address in order to make it appear as if it were a domestic sale.
Delmundo also admitted that after receiving the firearms parts, he falsely labeled the contents of the package as food or other home goods and exported the firearms parts to the Philippines for ultimate delivery to the other conspirators. To disguise his role in the conspiracy, Delmundo used the alias “Teng Flores”when sending the packages containing prohibited items. Upon receiving the firearms parts, Delmundo was paid through cash payments and wire transfers to Delmundo’s relatives in the Philippines.
During the course of the nearly five-year long conspiracy, Delmundo and others purchased and directed the unlawful exportation of more than $200,000 worth of defense articles from the United States to the Philippines without the required export license.
Santos is charged by criminal complaint with one count of conspiracy to violate the Arms Export Control Act and U.S. anti-smuggling laws. He made his initial appearance in Camden federal court on April 22, 2015 and was detained. The charges and allegations against Santos are merely accusations, and the defendant is considered innocent unless and until proven guilty.
The conspiracy charge to which Delmundo pleaded guilty is punishable by a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for Aug. 7, 2015.
The Arms Export Control Act prohibits the export of defense articles and defense services without first obtaining a license from the U.S. Department of State and is one of the principal export control laws in the United States.
U.S. Attorney Fishman credited special agents of the U.S. Department of Homeland Security-Homeland Security Investigations (DHS-HSI), under the direction of Acting Special Agent in Charge Kevin Kelly, and special agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), under the direction of Special Agent in Charge George P. Belsky Jr., with the investigation leading to today’s plea.
The government is represented by Assistant U.S. Attorney Matthew T. Smith of the U.S. Attorney’s Office Criminal Division in Camden and Trial Attorney Nathan M. F. Charles of the Counterespionage Section of the Justice Department’s National Security Division.
Defense counsel: David Schlendorf Esq., Toms River
North Charleston Man Sentenced to 15 Years in Federal PrisonRead the Press Release
Contact Person: Nick Bianchi (843) 727-4381
Columbia, South Carolina---- United States Attorney Bill Nettles stated today that Horace E. Green, age 25, of North Charleston, South Carolina was sentenced today in federal court in Charleston, South Carolina, for discharging of a firearm in furtherance of a drug trafficking crime, a violation of 18 U.S.C. § 924(c). United States District Judge Richard M. Gergel of Charleston sentenced Green to 15 years imprisonment, to be followed by 4 years supervised release.
Evidence presented at the change of plea hearing established that Green approached an individual about selling marijuana to him. Green then attempted to rob the individual, and as the individual fled, Green fired multiple shots from a .38 revolver at the individual. The individual was not hit by any of the shots fired by Green.
The case was investigated by agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the North Charleston Police Department. Assistant United States Attorney Nick Bianchi of the Charleston office prosecuted the case.
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Norristown Resident Charged with Illegal Reentry After DeportationRead the Press Release
Lamberto Lorenzo-Santos, a/k/a “Jose Hernandez-Santos,” a/k/a “Alfredo Perez,” 35, of Norristown, PA, was charged today by Indictment with illegal reentry after deportation, announced United States Attorney Zane David Memeger. The indictment alleges that on or about March 8, 2015, Lamberto-Santos, an alien, and native and citizen of Mexico, was found in the United States after having been deported from the United States on or about January 13, 2005 and September 19, 2006.
If convicted the defendant faces a maximum possible penalty of twenty years imprisonment, a three year period of supervised release, a $250,000 fine and a $100 special assessment.
The case was investigated by the Department of Homeland Security, Homeland Security Investigations (“HSI”), and is being prosecuted by Assistant United States Attorney Linwood C. Wright, Jr.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Nigerian Witch Doctor Sentenced for East Texas Drug Trafficking ViolationsRead the Press Release
BEAUMONT, Texas – A 58-year-old Lafayette, LA, man has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Christopher Omigie, a Nigerian native and naturalized U.S. citizen, pleaded guilty on Oct. 28, 2014 to conspiracy to distribute cocaine was sentenced to 168 months in federal prison today by U.S. District Judge Marcia A. Crone.
According to information presented in court, Omigie presented himself to drug traffickers as a witch doctor and was paid hundreds of thousands of dollars to provide supernatural protection from law enforcement. Omigie was consulted by drug traffickers in the Cesar Barrera and David Bazan drug trafficking organizations on a daily basis and before, during and after each drug transaction. The supernatural protections rendered involved card readings, massages (by Omigie) with magic ointments, cutting of the skin with razor blades and the topical application of magic powder, the use of magic amulets, magic belts, magic coconuts and magic rocks (that those being treated were required to talk to). Drug traffickers were required by Omigie to go without bathing and intercourse for a period of time following magic treatments so as not to diminish the potency of those ministrations. Magic “law stay away” candles were also burned in order to protect drug traffickers from law enforcement detection. Omigie would regularly return to Africa, at drug traffickers’ expense, to re-new his supernatural powers. Omigie was indicted by a federal grand jury on Sep. 5, 2013.
Cesar Barrera and David Bazan have since both pleaded guilty to schemes involving the trafficking of more than 1,000 kilograms of cocaine each.
This case was investigated by the U.S. Drug Enforcement Administration and the Internal Revenue Service Criminal Investigation and prosecuted by Assistant U.S. Attorney John Craft.
New Orleans Woman Pleads Guilty to Theft of Government FundsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that SYLVIA CHESTNUT, age 37, of New Orleans, pled guilty today to a one-count Bill of Information for stealing property from a Navy Exchange Store in Florida.
According to court records, between November 12, 2011 and December 18, 2011, CHESTNUT wrote 43 worthless checks, totaling $20,549.36, to two Naval Exchange Stores located at the Naval Air Station in Jacksonville, Florida, and Naval Station Mayport, Florida. CHESTNUT used the worthless checks to purchase clothing, household items, pre-paid Visa cards, and other personal items.
CHESTNUT faces a maximum of 10 years imprisonment, to be followed by three years of supervised release, and a fine of $250,000. U.S. District Judge Lance M. Africk set sentencing for July 23, 2015.
U.S. Attorney Polite praised the work of the Naval Criminal Investigative Service in investigating this matter. Assistant U. S. Attorney Spiro G. Latsis and Assistant U.S. Attorney Kevin Frein of the United States Attorney’s Office for the Middle District of Florida are in charge of the prosecution.
Sylvia Chestnut Factual Basis
New Jersey Woman Charged with Stealing Government FundsRead the Press Release
PHILADELPHIA - Maria Houck, 59, of Cherry Hill, New Jersey, was charged by indictment, unsealed yesterday, with 12 counts of mail fraud, two counts of theft of government funds, and one count of Social Security fraud, announced United States Attorney Zane David Memeger. According to the indictment, the defendant received retirement and pension benefits from the Social Security Administration and the Department of Veterans Affairs that were intended for her deceased mother, after her mother’s death in June 2005. The defendant’s alleged actions resulted in a loss to the Social Security Administration of approximately $54,399 and a loss to the Department of Veterans Affairs of approximately $110,354, for a total loss to the government of approximately $164,753.
If convicted, the defendant faces a substantial period of incarceration, restitution of $164,753 to the government, three years of supervised release, and possible fines.
The case was investigated by the Social Security Administration Office of Inspector General and the Department of Veterans Affairs Office of Inspector General. It is being prosecuted by Special Assistant United States Attorney Amanda R. Reinitz.
New Hampshire Man Pleads Guilty to Possession of an Unregistered FirearmRead the Press Release
CONCORD, N.H. –Ryan Howe, 52, of Hanover, plead guilty today in United States District Court for the District of New Hampshire to Possession of an Unregistered Firearm, announced Acting United States Attorney Donald Feith.
On September 15, 2011, members of ATF New Hampshire and Vermont field offices and the Hanover Police Department executed a search warrant at Howe’s residence. During the execution of the search warrant, law enforcement seized eight firearms and a quantity of ammunition from Howe’s bedroom, including a Winchester Model 120 20-gauge short-barreled shotgun. The shotgun had a barrel length of 16 inches, less than the required 18 inches. In order to legally possess such a short-barreled shotgun, Howe was required to register the firearm and his ownership with the National Firearms Registration and Transfer Record. Howe never registered the short-barreled shotgun.
Howe is scheduled to be sentenced on August 12, 2015. He is facing a maximum sentence of ten years in prison. He was released on conditions pending sentencing.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and prosecuted by Assistant United States Attorney Debra M. Walsh.
Navajo Man from Thoreau, N.M., Pleads Guilty to Federal Child Sexual Abuse ChargesRead the Press Release
ALBUQUERQUE – Bronson Ranger, 36, an enrolled member of the Navajo Nation who resides in Thoreau, N.M., pleaded guilty this morning in federal court in Albuquerque, N.M., to a felony information charging him with aggravated sexual abuse. Under the terms of his plea agreement, Ranger will be sentenced in the range of 120 to 140 months in federal prison followed by a term of supervised release to be determined by the court. Ranger will be required to register as a sex offender after completing his prison sentence.
Ranger was arrested on Dec. 12, 2012, on an indictment alleging that he sexually abused a child under the age of 12 from Aug. 1, 2008 through Oct. 30, 2008. The indictment alleged that Ranger violated the young victim in a location within the Navajo Indian Reservation in McKinley County, N.M.
During today’s plea hearing, Ranger entered a guilty plea to a felony information charging him with aggravated sexual abuse. In entering his guilty plea, Ranger admitted sexually molesting the victim between Aug. 1, 2008 and Oct. 30, 2008, in McKinley County, N.M., which is within the Navajo Indian Reservation.
Ranger has been in the custody of the U.S. Marshals Service since his arrest and will remain detained pending his sentencing hearing, which has yet to be scheduled.
This case was investigated by the Gallup office of the FBI and the Navajo Nation Division of Public Safety. The case is being prosecuted by Assistant U.S. Attorney Kyle T. Nayback as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Monroe County, Kentucky, Tobacco Farmer Guilty of Crop Insurance FraudRead the Press Release
Fraud totaled $711,958
BOWLING GREEN, Ky. - A Monroe County, Kentucky tobacco farmer pleaded guilty in U.S. District Court in Bowling Green yesterday, before District Judge Greg N. Stivers, to charges of crop insurance fraud totaling $711,958 announced Acting U.S. Attorney John E. Kuhn, Jr.
According to the plea agreement, Tracy E. Dillard, 45 of Fountain Run, Kentucky aided and abetted by others, admitted in court today of knowingly making false statements and reports on insurance claims submitted to Producers Agriculture Insurance Company, a company insured by the Federal Crop Insurance Corporation (FCIC).
“The federal crop insurance program ultimately exists to provide a safety net for our farming community,” stated Acting U.S. Attorney John Kuhn. “Fraud undermines the entire program. This U.S. Attorney’s Office is committed to working with our partner federal agencies to ensure that every penny of taxpayer money is fully restored.”
The violations occurred between 2009 and March 10, 2011, in the Western District of Kentucky, including Allen, Barren, Hart and Monroe Counties in Kentucky, and Macon County in Tennessee.
Specifically, in 2009 Dillard had four separate crop insurance policies on four different crops, two in Barren County, and two in Monroe County. Aided and abetted by others, Dillard intentionally overstated crop damage for each crop by forty percent (40%) on a crop insurance claim form, resulting in a loss of $125,339.20.
Additionally, in 2010 Dillard had twelve separate tobacco crop insurance policies on twelve different crops. Dillard, aided and abetted by others, intentionally overstated crop damage by forty percent (40%) for each crop on a crop insurance claim form, resulting in a loss of $504,454.80.
Finally, in 2011 Dillard had a crop insurance policy on a crop located in Allen County. Aided and abetted by others, Dillard intentionally falsified the crop plant date on a crop insurance claim form, resulting in a loss of $82,164.
The FCIC indemnifies insurance companies for crop insurance claims.
For the 2009, 2010, and 2011 policies listed above, Dillard caused fraudulent claims to be submitted to the United States government, through claims made to ProAg and paid by the FCIC, resulting in a $711,958 loss to the United States. Dillard agreed to pay full restitution under the terms of his plea agreement.
Dillard faces no more than 30 years in prison, a fine of $1,000,000 and a five year period of supervised release.
This case is being prosecuted by Assistant United States Attorney David Weiser and is being investigated by the United States Department of Agriculture (USDA) Office of Inspector General (OIG) and the Risk Management Agency, Special Investigation Branch.
Mississippi Man Sentenced for His Role in a Conspiracy to Commit Racially Motivated Assaults, Culminating in the Killing of an African-American Man Run over by TruckRead the Press Release
The Justice Department announced today that John Louis Blalack, 21, of Brandon, Mississippi, was sentenced today in U.S. District Court of the Southern District of Mississippi in Jackson for his role in a federal hate crime conspiracy involving racially motivated assaults, culminating in the death of James Craig Anderson, an African-American man, in the summer of 2011. Blalack had previously pleaded guilty to two counts of commission of a hate crime for his role in the conspiracy and the cover-up. Blalack was sentenced to 240 months in prison.
Eight other defendants in related cases, Deryl Paul Dedmon, 22, John Aaron Rice, 22, Dylan Wade Butler, 23, Jonathan Kyle Gaskamp, 22, and Joseph Paul Dominick, 23, all of Brandon, Mississippi; William Kyle Montgomery, 25, of Puckett, Mississippi, Sarah Adelia Graves, 22, of Crystal Springs, Mississippi; and Shelbie Brooke Richards, 21, Pearl, Mississippi, were previously sentenced to 600 months, 220 months, 78 months, 48 months, 48 months, 224 months, 60 months and 96 months, respectively, for their roles in the conspiracy. Robert Henry Rice is awaiting sentencing.
“The Justice Department will always fight to hold accountable those who commit racially motivated assaults,” said Acting Assistant Attorney General Vanita Gupta of the Civil Rights Division. “We hope that the prosecution of those responsible for this horrific crime will help provide some measure of closure to the victim’s family and to the larger community affected by this heinous crime.”
“This prosecution sends a clear message that this office, in partnership with the DOJ Civil Rights Division, will prioritize and aggressively prosecute hate crimes and other civil rights violations in the Southern District of Mississippi,” said U.S. Attorney Gregory K. Davis of the Southern District of Mississippi.
“The FBI takes very seriously its responsibility to uphold the civil rights of all citizens,” said Special Agent in Charge Donald Alway of the FBI’s Jackson, Mississippi, Division. “Together with its law enforcement partners, the FBI will continue its efforts to aggressively pursue and bring to justice all those individuals who conspire to deprive others of their civil rights merely because of the color of their skin.”
In prior court hearings, the defendant admitted that beginning in the spring of 2011, he and others conspired with one another to harass and assault African Americans in and around Jackson. On numerous occasions, the co-conspirators used dangerous weapons, including beer bottles, sling shots and motor vehicles, to cause, and attempt to cause, bodily injury to African Americans. They would specifically target African Americans they believed to be homeless or under the influence of alcohol because they believed that such individuals would be less likely to report an assault. The co-conspirators would often boast about these racially motivated assaults.
Blalack admitted his involvement in the conspiracy and to his role in the beating and killing of James Craig Anderson. Specifically, he admitted that in the early morning hours of June 26, 2011, he and six other co-conspirators agreed to carry out their plan to find, harass and assault African Americans. At around 4:15 a.m., Blalack, Montgomery, John Aaron Rice and Butler drove to Jackson in Montgomery’s white Jeep with the understanding that Richards, Graves and Dedmon would join them a short time later.
At approximately 5:00 a.m., the four occupants of the Jeep spotted Anderson in a motel parking lot off Ellis Avenue. They decided that Anderson would be a good target for an assault because he was African-American and appeared to be intoxicated. Blalack and J. Rice got out of the Jeep to distract Anderson while they waited for Richards, Graves, and Dedmon to arrive. After Richards, Graves and Dedmon arrived in a Ford F250 truck, Rice and Dedmon physically assaulted Anderson. After the assault, the four occupants of the Jeep left the motel parking lot in the Jeep. Dedmon then deliberately used his truck to run over Anderson, causing injuries which resulted in Anderson’s death. Blalack also admitted that prior to Anderson's death he and his co-conspirators threw beer bottles at African American and also used a sling shot to shoot metal ball bearings at victims in Jackson.
This case was the result of a cooperative effort among the Justice Department’s Civil Rights Division, the U.S. Attorney’s Office for the Southern District of Mississippi and the Hinds County, Mississippi, District Attorney’s Office. This case was investigated by the Jackson Division of the FBI and the Jackson Police Department. It is being prosecuted by Trial Attorney Sheldon L. Beer and Deputy Chief Paige M. Fitzgerald of the Civil Rights Division of the Department of Justice, and Glenda R. Haynes of the U.S. Attorney’s Office for the Southern District of Mississippi.
Mississippi Man Pleads Guilty to Possession and Transportation of Stolen FirearmsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that ALEX BRASINGTON, age 22, of Carriere, Mississippi, pled guilty today to conspiracy to possess and transport stolen firearms in interstate commerce and transportation of stolen firearms in interstate commerce. A five-count superseding indictment was returned on October 3, 2014, charging BRASINGTON, and co-defendants BRITTANY BAUER and BRITTEN PARSONS, with conspiracy, possession and transportation of stolen firearms in interstate commerce.
According to court documents, in January and February 2013, BRASINGTON, BAUER and PARSONS transported nine stolen firearms in interstate commerce, from Alabama to Louisiana. The investigation revealed that the firearms had been stolen during residence burglaries in Huntsville, Alabama. On February 14, 2013, agents conducted a search of BAUER’s New Orleans apartment and found five stolen firearms and approximately 1700 rounds of ammunition. Court documents reflect that agents also recovered four stolen firearms and ammunition that BRASINGTON, BAUER and PARSONS sold to individuals in New Orleans. BRASINGTON had previously been found in possession of a stolen firearm on January 31, 2013.
BRASINGTON faces a maximum of ten years imprisonment, followed by three years of supervised release. U.S. District Judge Jane Triche Milazzo set sentencing for July 20, 2015.
U.S. Attorney Polite stated, “Today’s guilty plea underscores our Office’s continued commitment to prosecuting those who illegally transport stolen firearms into our District.”
U.S. Attorney Polite praised the work of the ATF New Orleans Division Office, New Orleans Police Department, Pearl River (LA) Police Department, Pearl River County (MS) Sheriff’s Office, and Huntsville Police Department in investigating this matter. Assistant United States Attorney Nolan D. Paige is in charge of the prosecution.
Alex Brasington Factual Basis
Military Contractor in Afghanistan Sentenced to Four Years in Prison for Offering Bribes to a US Army OfficialRead the Press Release
An independent contractor for a trucking company in Afghanistan that was responsible for delivering fuel to U.S. Army installations was sentenced to four years in prison today for offering a U.S. Army serviceman $54,000 in bribes to falsify documents confirming the receipt of fuel shipments that were never actually delivered.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Acting U.S. Attorney Kelly T. Currie of the Eastern District of New York, Special Inspector General for Afghanistan Reconstruction John F. Sopko, Assistant Director in Charge Diego Rodriguez of the FBI’s New York Field Office, Special Agent in Charge Raymond R. Parmer Jr. of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations’ (ICE-HSI) New York Field Office and Director Frank Robey of the U.S. Army’s Criminal Investigation Command (CID) made the announcement.
Akbar Ahmed Sherzai, 50, of Centreville, Virginia, pleaded guilty on Feb. 14, 2014, to one count of conspiracy to commit bribery. In addition to the prison sentence, U.S. District Court Judge Margo K. Brodie of the Eastern District of New York ordered Sherzai to forfeit $54,000.
In connection with his guilty plea and in other court documents, Sherzai acknowledged that he was employed by a local Afghan trucking company contracted to transport fuel between U.S. military bases in Afghanistan. Sherzai acknowledged that, in April 2013, he approached a U.S. military serviceman to discuss instances in which his company failed to deliver the fuel—called “no-show” missions—which resulted in a $75,000 fine to his company for each no-show. Sherzai admitted that he offered the serviceman bribes to falsify documents to confirm deliveries, so that Sherzai’s company and others could recover the fines they had paid for no-shows. On several occasions, Sherzai paid cash bribes to the serviceman, who, unbeknownst to Sherzai, was working with law enforcement. In total, Sherzai acknowledged that he paid the serviceman $54,000 to falsify documents relating to nine deliveries, allowing his company and others to avoid or recover $675,000 in fines.
This matter was investigated by the Special Inspector General for Afghanistan Reconstruction, FBI, ICE-HSI and CID. The case is being prosecuted by Trial Attorney Daniel Butler of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Amir H. Toossi of the Eastern District of New York.
Midland Man Sentenced to 15 Years in Federal Prison for Advertising to Produce, Buy, Sell or Trade Child PornographyRead the Press Release
In Midland this morning, Senior United States District Judge Robert A. Junell sentenced 47–year-old Kyle Unterbrink to 15 years in federal prison for advertising online to produce, buy, sell or trade child pornography announced Acting United States Attorney Richard L. Durbin, Jr., and Homeland Security Investigations (HSI) Special Agent in Charge Waldemar Rodriguez, El Paso Division.
In addition to the prison term, Judge Junell ordered that the defendant pay $51,000 restitution to the identified victims of the child pornography he possessed and distributed. Judge Junell also ordered that Unterbrink be placed on supervised release for ten years following the completion of his prison term. In February, Unterbrink pleaded guilty to the advertising child pornography charge. Unterbrink, who has remained in federal custody since his arrest on December 11, 2014, has agreed to forfeit his residence to the Government to satisfy his court ordered restitution.
According to court records, over the course of several days in November 2014, HSI agents identified the defendant’s IP address as one which was making almost 2,000 images of prepubescent child pornography available to anyone in the world who was connected to the same network. On December 11, 2014, agents conducted a search warrant at the defendant’s residence and seized various electronic devices belonging to Unterbrink. A subsequent search of the seized items revealed the presence of approximately 6,700 images depicting the sexual exploitation of minors downloaded from the Internet.
This case was investigated by Homeland Security Investigations together with the Federal Bureau of Investigation and the Texas Department of Public Safety. Assistant U.S. Attorney Austin Berry prosecuted this case on behalf of the Government.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, 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.
Miami-Area Physician Sentenced to 60 Months in Prison for Role in $5.5 Million Medicare Fraud SchemeRead the Press Release
A Miami-area medical doctor was sentenced today to 60 months in prison for his role in a $5.5 million Medicare fraud scheme involving fraudulent billings by a psychiatric hospital in Hollywood, Florida.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office and Special Agent in Charge Shimon Richmond of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office made the announcement.
Barry Kaplowitz, 54, of Aventura, Florida, a licensed physician, was convicted of making false statements related to health care matters on Feb. 20, 2015, following a six-week jury trial. In addition to today’s prison sentence, U.S. District Judge Cecilia M. Altonaga of the Southern District of Florida ordered Kaplowitz to pay more than $2.9 million in restitution.
According to evidence presented at trial, Kaplowitz served as the medical director at Hollywood Pavilion (HP), a state-licensed psychiatric hospital, from approximately 2008 to 2011. During that time, Kaplowitz signed false and fraudulent medical records in order to make it appear that HP’s patients qualified for and received intensive outpatient services, even though they did not. The evidence demonstrated that Kaplowitz signed patient files for over 400 patients certifying that he had provided mental health services to each of them, even though he never saw nor provided any treatment to the patients. HP used these falsified medical records to submit over 2,800 false claims to Medicare totaling over $5.5 million. Medicare paid $2.9 million on those false claims.
Five other individuals have previously been convicted and sentenced in this case:
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Karen Kallen-Zury, of Lighthouse Point, Florida, HP’s former chief executive officer, was sentenced to 25 years in prison;
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Daisy Miller, of Hollywood, the clinical director of HP’s inpatient facility, was sentenced to 15 years in prison;
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Michele Petrie, of Fort Lauderdale, Florida, the head of HP’s intensive outpatient program, was sentenced to six years in prison;
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Christian Coloma, of Miami Beach, Florida, the director of physical therapy for an entity associated with HP, was sentenced to 12 years in prison; and
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Christopher Gabel, of Davie, Florida, HP’s former chief operating officer, was sentenced to six years in prison.
Kallen-Zury, Miller, Gabel and Petrie were ordered to pay more than $39 million in restitution, and Coloma was ordered to pay more than $20 million in restitution.
The case was investigated by the FBI and HHS-OIG 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 Southern District of Florida. The case is being prosecuted by Trial Attorneys Nicholas E. Surmacz, Andrew H. Warren and L. Rush Atkinson of the Criminal Division’s 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 and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Team (HEAT), go to: www.stopmedicarefraud.gov.
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Mexican Nationals Plead Guilty to Violations of the Federal Gun Control ActRead the Press Release
U.S. Attorney Kenneth A. Polite announced that ROBERTO HERRERA-VILLAGOMEZ, age 23, and JUAN MANUEL HERRERA-VILLAGOMEZ, age 34, both citizens of Mexico, pled guilty today to a two-count Indictment charging them with violations of the Federal Gun Control Act.
According to court records, on or about October 15, 2014, ROBERTO HERRERA-VILLAGOMEZ and JUAN MANUEL HERRERA-VILLAGOMEZ, both illegal aliens, were found in possession of firearms. Agents executed a search warrant into the harboring of illegal aliens at a mushroom farm in Tangipahoa Parish and found the defendants in possession of firearms.
ROBERTO HERRERA-VILLAGOMEZ and JUAN MANUEL HERRERA-VILLAGOMEZ each face a maximum term of imprisonment of ten years, followed by up to three years of supervised release, and a fine of $250,000. U.S. District Judge Jane Triche Milazzo set sentencing for July 30, 2015.
U.S. Attorney Polite praised the work of the Department of Homeland Security, Homeland Security Investigations (HSI) in investigating this matter. Assistant United States Attorney David Haller is in charge of the prosecution.
Herrera-Villagomez, Roberto & Juan Manual Factual Basis
McLaughlin Woman Sentenced for Assault with A Dangerous WeaponRead the Press Release
Acting United States Attorney Randolph J. Seiler announced that a McLaughlin, South Dakota, woman convicted of Assault with a Dangerous Weapon was sentenced on April 27, 2015, by U.S. District Court Judge Charles B. Kornmann.
Gwendolyn Iron Shield, a/k/a Gwendolyn Taken Alive, age 41, was sentenced to 12 months and 1 day of custody, 3 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Iron Shield was indicted by a federal grand jury on June 10, 2014. She pled guilty on November 19, 2014.
On or about April 20, 2014, a Bureau of Indian Affairs (BIA) officer was dispatched to a house in McLaughlin, where an adult male victim had been stabbed. Upon arriving at the residence, the officer made contact with the victim and observed a deep laceration to the upper portion of his left arm. The victim informed the officer that following an argument, he attempted to leave the residence he shared with Iron Shield. According to the victim, Iron Shield charged him outside of the residence with a large kitchen knife, and as he was trying to protect himself, he was stabbed on the arm.
This case was investigated by the BIA, Standing Rock Agency. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Iron Shield is to self-surrender to the U.S. Marshals Service by May 26, 2015.
McLaughlin Man Sentenced for Assaulting, Resisting and Impeding A Federal OfficerRead the Press Release
Acting United States Attorney Randolph J. Seiler announced that a McLaughlin, South Dakota, man convicted of Assaulting, Resisting, and Impeding a Federal Officer was sentenced on April 27, 2015, by U.S. District Judge Charles B. Kornmann.
Kirk Flying Horse, age 41, was sentenced to 30 months in custody, 3 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Flying Horse was indicted by a federal grand jury on August 19, 2014. He pled guilty on November 19, 2014.
On July 25, 2014, two Bureau of Indian Affairs (BIA) officers responded to a call at a home in McLaughlin, after receiving a report that a man was intoxicated and causing a disturbance. Upon arrival, officers made contact with the Defendant, Flying Horse, who informed the officers that he had been beaten by his ex-wife. Dispatch was called regarding the situation and the officers were informed that the Defendant was on tribal court conditions and was not to consume alcohol. Flying Horse was then placed in custody. The Defendant began kicking the patrol car’s window, and kicked one of the officers on the top of his head when the officer asked him to calm down.
This case was investigated by the BIA, Standing Rock Agency. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Flying Horse was immediately turned over to the custody of the U.S. Marshals Service.
McLaughlin Man Sentenced for Assault by Striking, Beating and WoundingRead the Press Release
Acting United States Attorney Randolph J. Seiler announced that a McLaughlin, South Dakota, man convicted of Assault by Striking, Beating, and Wounding was sentenced on April 27, 2015, by U.S. District Judge Charles B. Kornmann.
Brett Claymore, age 22, was sentenced to 6 months in custody, 1 year of supervised release, and a $25 special assessment to the Federal Crime Victims Fund.
Claymore was indicted by a federal grand jury on June 17, 2014. He pled guilty on November 3, 2014.
On June 15, 2014, a Corson County Sheriff’s Deputy was attempting to detain the driver of a four-wheeler in McLaughlin. The driver fled and ran into a private residence, where he was eventually taken into custody. At the time of the incident, three other people, including Claymore, were in the living room of the residence. The deputy instructed the group of people to sit on the floor, and two of them complied, but Claymore refused. The deputy tried to detain Claymore, who pulled his arm away and pushed his left elbow into the deputy’s chest. The two began to scuffle, but the deputy broke free and handcuffed Claymore.
This case was investigated by the Bureau of Indian Affairs, Standing Rock Agency. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Claymore is to self-report to the U.S. Marshals Service by May 12, 2015.
Martha’s Vineyard CPA Sentenced for Tax FraudRead the Press Release
BOSTON – A Vineyard Haven CPA was sentenced on Tuesday, April 28, 2015, for filing false tax returns in which he underreported more than $800,000 in income for three years.
Roger A. Armstrong, 61, was sentenced by U.S. District Court Judge Indira Talwani to three years of probation, the first nine months of which are to be served in home confinement, and ordered to pay a fine of $3,000. At the sentencing hearing, Armstrong paid restitution of $389,365, which included his taxes owed, as well as interest and penalties. In January 2015, Armstrong pleaded guilty to three counts of filing false tax returns.
Armstrong, a certified public accountant (CPA) and tax preparer who lived and worked on Martha's Vineyard, owned rental property in Massachusetts and Florida. As a sole proprietor, Armstrong was required to accurately report his gross receipts and his business profit or loss on his individual income tax returns and also was to report any rental income he received. For tax years 2009 through 2011, Armstrong filed tax returns in which he significantly underreported both his business gross receipts and his rental income. Specifically, he did not report a total of $790,000 in gross receipts and $47,000 in rental income, and, as a result of the underreporting, did not pay $200,000 in taxes.
United States Attorney Carmen M. Ortiz and William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. The case was prosecuted by Assistant U.S. Attorney Sandra S. Bower of Ortiz’s Economic Crimes Unit.
Maine Nursing Home Operator to Pay $300,000 to Resolve Allegations Concerning Claims for Rehabilitation TherapyRead the Press Release
BOSTON – A skilled nursing facility operator in Maine, Rousseau Management, Inc., entered into an agreement with the United States to pay $300,000 to resolve allegations concerning inflated Medicare claims.
Rousseau, which owns the Horizons Living and Rehab Center in Brunswick, Maine, and previously provided administrative management services to the Amenity Manor skilled nursing facility in Topsham, Maine, entered into an agreement concerning claims for therapy purportedly provided by its subcontractor, RehabCare Group East, Inc. (RehabCare), a part of Kindred Healthcare, Inc. This settlement resolves allegations that Rousseau submitted, or caused the submission of, claims to Medicare that sought inflated amounts of reimbursement based on the provision of unreasonable, unnecessary, unskilled rehabilitation therapy, or therapy that was not provided at all.
“This settlement is another in a series of resolutions involving inflated Medicare billing at skilled nursing facilities,” said United States Attorney Carmen M. Ortiz. “We continue our efforts to ensure that the provision of care in nursing facilities is based on patients’ clinical needs and not tied to the inflated financial interests of the companies providing care.”
“These defendants allegedly made decisions based on profitability, rather than on patient care,” said Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division. “These actions not only affect patients, but have a ripple effect on taxpayers who pay into the system. The FBI will continue to work with all of our law enforcement partners to make sure those who abuse the healthcare system are brought to justice.”
The United States alleges that prior to Oct. 1, 2011, Rousseau failed to take sufficient steps to prevent RehabCare from engaging in a pattern and practice of providing high levels of therapy that were not reasonable or necessary during so-called “assessment reference periods,” thereby causing Horizons and Amenity Manor to bill for their Medicare patients’ care at the highest reimbursement level, even though RehabCare was providing less therapy to those same patients during those periods when the facilities were not required to report to Medicare the amount of therapy their Medicare patients were receiving.
This settlement further resolves allegations that, even after Oct. 1, 2011, Rousseau failed to prevent other RehabCare practices designed to inflate Medicare reimbursement, including: (1) presumptively placing patients in the highest reimbursement level unless it was shown that the patients could not tolerate that amount of therapy, rather than using individualized evaluations to determine the level of care most suitable for each patient’s clinical needs; (2) planning the minimum number of minutes of therapy required to bill at the highest reimbursement level while discouraging the provision of therapy in amounts beyond that minimum threshold, despite the Medicare requirement that the amount of care provided be determined by patients’ clinical needs; (3) arbitrarily shifting the number of minutes of planned therapy between therapy disciplines to ensure targeted reimbursement levels were achieved; (4) reporting that time spent on initial evaluations was therapy time in order to avoid the Medicare prohibition on counting initial evaluation time as therapy time; and (5) reporting that time spent providing unskilled palliative care was time spent on skilled therapy.
HHS Hotline. The government encourages anyone with information about the practices described above, or similar practices involving rehabilitation therapy in nursing facilities, to contact the Department of Health and Human Services Office of Inspector General Hotline via telephone, 1-800-HHS-TIPS (1-800-447-8477), or in writing via https://forms.oig.hhs.gov/hotlineoperations/.
This matter was investigated by the Department of Health and Human Services, Office of the Inspector General, and the Federal Bureau of Investigation. The case was handled by Assistant U.S. Attorneys Gregg Shapiro and Patrick Callahan of Ortiz’s Affirmative Civil Enforcement Unit and Department of Justice Trial Attorneys Christelle Klovers and Rohith Srinivas.
Los Zetas Members Sentenced to Life Imprisonment on Federal Drug and Firearm ChargesRead the Press Release
In Del Rio this morning, U.S. District Judge Alia Moses sentenced two members of the Los Zetas Drug Trafficking Organization, to life in federal prison for smuggling thousands of kilograms of marijuana and hundreds of assault rifles announced Richard L. Durbin, Jr., Acting United States Attorney; James Spero, Homeland Security Investigations (HSI) Special Agent in Charge of the San Antonio Division; Robert Elder, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Special Agent in Charge of the Houston Division; and, Christopher Combs, Federal Bureau of Investigation (FBI) Special Agent in Charge of the San Antonio Division.
On June 20, 2014, a federal jury convicted 29–year-old Emilio Villalobos-Alcala and 27–year-old Jose Eluid Lugo-Lopez (aka “Cochi Loco”) of one count of conspiracy to import marijuana; one count of conspiracy to possess with intent to distribute marijuana; one count of conspiracy to possess firearms in furtherance of a drug trafficking crime; and, two counts of smuggling goods from the United States.
According to courtroom testimony, Villalobos-Alcala, a purported leader of the Los Zetas Cartel activities in Piedras Negras and fellow senior level member Lugo-Lopez were involved in a large-scale marijuana and firearms smuggling scheme from July 2011 until February 2013. Assault weapons, other firearms, magazines and ammunition purchased in San Antonio were transported inside hidden compartments in cars and trucks and smuggled through Eagle Pass, Texas, to Piedras Negras. Bundles of marijuana, smuggled across the river into Quemado, Texas, were transported to stash houses in Eagle Pass. From there, the marijuana was transported to stash houses in San Antonio and ultimately to distributors in Dallas and Houston.
Evidence presented during the trial included multiple threats made by Villalobos-Alcala and Lugo-Lopez that they would kill people involved in the smuggling conspiracy or their family members if they did not pay money for drugs or weapons seized by law enforcement or agree to move drugs or weapons on behalf of the cartel.
“Today’s sentencing of Emilio Villalobos-Alcala and Jose Eluid Lugo-Lopez to life imprisonment sends a clear message of the serious consequences awaiting those who engage in this type of criminal activity,” said James Spero, Special in Charge, HSI San Antonio. “HSI will continue to utilize its broad authorities, in concert with its federal, state/local and international partners, to dismantle criminal organizations.”
“Operations such as these, which rely on intimidation and violence to accomplish their goals, represent the worst types of offenders. ATF is proud to be among the agencies responsible for taking down two key players in the Los Zetas Cartel,” said Robert Elder, ATF Special Agent in Charge.
This case was investigated by special agents with HSI, ATF, FBI and the Drug Enforcement Administration together with the U.S. Border Patrol, Texas Department of Public Safety and the Zavala County Sheriff’s Office. Assistant United States Attorneys Jay Hulings and Russell Leachman prosecuted this case on behalf of the Government.
Leader of an Illegal International Gambling Enterprise Convicted of Conspiracy to Commit Money LaunderingRead the Press Release
A federal jury in Oklahoma City convicted a Texas man today of running an illegal international gambling enterprise and conspiring to commit money laundering, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Sanford C. Coats of the Western District of Oklahoma.
Bartice Alan King, aka “Luke,” 44, of Spring, Texas, was found guilty of conducting an illegal gambling business and engaging in a conspiracy to commit money laundering. A sentencing hearing has not yet been set.
According to evidence presented at trial, from 2003 to 2013, King was the owner, CEO and President of Legendz Sports, an Internet and telephone gambling enterprise based in Panama City, Panama. Over the course of a decade, the international gambling enterprise took more than $1 billon in illegal wagers, almost exclusively from gamblers in the United States on American sporting events.
The evidence demonstrated that after founding Legendz Sports, King directed and supervised a network of bookies located all over the United States, who illegally solicited and accepted sports wagers and settled gambling debts. The evidence further demonstrated that bookies and runners for Legendz Sports transported millions of dollars of gambling proceeds in cash and checks from the United States to Panama. The checks were made out to various shell companies created by Legendz Sports throughout Central America to launder gambling proceeds.
The evidence demonstrated that the illegal gambling proceeds were used to further promote the gambling business, including to pay employees, build a new multi-million dollar call center to take bets and build a “bank” of cash to pay future winning bettors. King used the profits to live a lavish lifestyle, including mansions in Florida and Texas.
The case was investigated by the FBI and Internal Revenue Service-Criminal Investigation, with the assistance of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the U.S. Marshals Service. The Criminal Division’s Office of International Affairs also assisted with this investigation. The case is being prosecuted by Trial Attorney John S. Han of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Susan Dickerson Cox and Travis D. Smith of the Western District of Oklahoma.
Kolon Industries Inc. Pleads Guilty for Conspiring to Steal Dupont Trade Secrets Involving Kevlar TechnologyRead the Press Release
Kolon Sentenced to Pay $360 Million in Restitution and Fines
ALEXANDRIA, Va. – Kolon Industries Inc., a South Korean industrial company, pleaded guilty this morning in federal court in Alexandria, Virginia, to conspiracy to steal trade secrets involving E.I. DuPont de Nemours & Co.’s (DuPont) Kevlar technology. The company was sentenced to pay $85 million in criminal fines and $275 million in restitution.
United States Attorney Dana J. Boente of the Eastern District of Virginia, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, and Special Agent in Charge Adam S. Lee of the FBI’s Richmond, Virginia, Division made the announcement.
Kolon Industries Inc., appearing through two successor entities—Kolon Industries Inc. and Kolon Corporation (collectively, Kolon)—pleaded guilty to one count of conspiracy to convert trade secrets before U.S. District Judge Anthony J. Trenga of the Eastern District of Virginia.
“Research and development are pillars of our economy, and we cannot allow anyone to obtain by theft what innovators develop through effort and ingenuity,” said U.S. Attorney Boente. “Today’s outcome confirms that we will aggressively investigate and prosecute intellectual property crimes, regardless of whether the perpetrators are foreign or domestic, corporations or individuals. There are no safe harbors for those who seek to steal trade secrets in the Eastern District of Virginia.”
“Protecting the trade secrets of American businesses sustains the integrity and competitiveness of the American economy, and encourages the development of new products, including advanced technologies,” said Assistant Attorney General Caldwell. “The Criminal Division is committed to ensuring that foreign companies, like Kolon Industries, cannot escape the reach of the criminal justice system when they have conspired to steal the results of American ingenuity and our companies’ intellectual property.”
“Protecting American companies from the theft of their trade secrets is a high priority for the FBI,” said Special Agent in Charge Lee. “Each year, billions of U.S. dollars are lost to foreign competitors who pursue illegal commercial short cuts by stealing valuable advanced technologies. This case demonstrates the FBI’s ability to penetrate these highly sophisticated criminal schemes and bring their perpetrators to justice. Its outcome should send a clear message to foreign commercial actors who seek to illegally exploit American companies and steal our nation’s innovation and technology.”
According to the statement of facts filed with the plea agreement, from June 2006 to February 2009, Kolon conspired with former DuPont employees and others to steal DuPont’s trade secrets for making Kevlar, a high-strength, para-aramid synthetic fiber. Kevlar, a trademarked name, is one of DuPont's most well-known products and is used is a wide range of commercial applications such as body armor, fiber optic cables, and automotive and industrial products. Kolon admitted that it was attempting to improve the quality of its own para-aramid fiber known as Heracron.
Kolon personnel met repeatedly with former DuPont employees, including Edward Schulz, 72, of Brownstown, Pennsylvania, and Michael Mitchell, 58, of Chesterfield, Virginia, to obtain confidential and proprietary DuPont information about Kevlar. Schulz pleaded guilty to conspiracy to steal trade secrets in September 2014 and is scheduled to be sentenced on June 26, 2015. Mitchell pleaded guilty to theft of trade secrets and obstruction of justice in December 2009 and was sentenced to 18 months in prison.
Kolon admitted that it obtained technical and business documents regarding Kevlar, including instructional materials that described DuPont’s “New Fiber Technology,” documents on polymerization, and a detailed breakdown of DuPont’s capabilities and costs for the full line of its Kevlar products and DuPont’s Kevlar customers.
According to the statement of facts and Mitchell’s admissions at his guilty plea, Mitchell exchanged numerous telephone calls and emails with Kolon personnel. On more than one occasion, Mitchell advised Kolon personnel that some of the information they sought was proprietary and that DuPont considered such information to be trade secrets. Mitchell also coordinated a meeting at a hotel in Richmond, at which Kolon personnel were introduced to a cooperating witness who pretended to be a disgruntled scientist from DuPont. During the Richmond meeting, Kolon personnel indicated that they would only be comfortable communicating with the cooperating witness in a manner that was confidential and that would not leave an evidentiary trail.
In February 2009, DuPont filed a civil lawsuit against Kolon in the Eastern District of Virginia, alleging theft of trade secrets. Thereafter, certain Kolon personnel attempted to delete files and emails related to Mitchell, Schulz and outside consultants hired to improve Kolon’s para-aramid fiber, and urged other Kolon personnel to search for such materials and mark them for deletion.
Kolon also admitted that certain employees approached a former employee of an American subsidiary of Teijin Ltd. – a Japanese company that makes the para-aramid fiber called Twaron—in an unsuccessful effort to obtain information about Twaron.
This case represents the first time that foreign corporations with no direct presence in the United States were found to be successfully served with U.S. criminal process, over their objections, based on service pursuant to an international treaty. In December 2014, the district court found that both of the successor companies were properly served, and ordered them to appear for arraignment. In February 2015, the Fourth Circuit Court of Appeals denied Kolon’s petition for extraordinary relief seeking reversal of the district court’s order.
Five former Kolon executives and employees, all of South Korea, were charged in an August 2012 indictment filed in the Eastern District of Virginia: Jong-Hyun Choi, 58, a senior executive who oversaw the Heracron Business Team; In-Sik Han, 52, who managed Kolon’s research and development related to Heracron; Kyeong-Hwan Rho, 49, the head of the Heracron Technical Team; Young-Soo Seo, 51, the general manager for the Heracron Business Team; and Ju-Wan Kim, 42, a manager on the Heracron Business Team.
None of these individuals has appeared in the United States to face the charges. The charges contained in an indictment are merely accusations, and a defendant is presumed innocent unless and until proven guilty.
The case was investigated by the FBI’s Richmond Division. The case is being prosecuted by Assistant U.S. Attorneys Kosta S. Stojilkovic and Matthew Burke of the Eastern District of Virginia, Trial Attorney John W. Borchert of the Criminal Division’s Fraud Section and Senior Counsel Rodolfo Orjales of the Criminal Division’s Computer Crime and Intellectual Property Section. The Criminal Division’s Office of International Affairs has provided valuable assistance.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:12-cr-137.
Kolon Industries Inc. Pleads Guilty for Conspiring to Steal DuPont Trade Secrets Involving Kevlar TechnologyRead the Press Release
Kolon Sentenced To Pay $360 Million in Restitution And Fines
Kolon Industries Inc., a South Korean industrial company, pleaded guilty this morning in federal court in Alexandria, Virginia, to conspiracy to steal trade secrets involving E.I. DuPont de Nemours & Co.’s (DuPont) Kevlar technology. The company was sentenced to pay $85 million in criminal fines and $275 million in restitution.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Dana J. Boente of the Eastern District of Virginia and Special Agent in Charge Adam S. Lee of the FBI’s Richmond, Virginia, Division made the announcement.
Kolon Industries Inc., appearing through two successor entities—Kolon Industries Inc. and Kolon Corporation (collectively, Kolon)—pleaded guilty to one count of conspiracy to convert trade secrets before U.S. District Judge Anthony J. Trenga of the Eastern District of Virginia.
“Protecting the trade secrets of American businesses sustains the integrity and competitiveness of the American economy, and encourages the development of new products, including advanced technologies,” said Assistant Attorney General Caldwell. “The Criminal Division is committed to ensuring that foreign companies, like Kolon Industries, cannot escape the reach of the criminal justice system when they have conspired to steal the results of American ingenuity and our companies’ intellectual property.”
“Research and development are pillars of our economy, and we cannot allow anyone to obtain by theft what innovators develop through effort and ingenuity,” said U.S. Attorney Boente. “Today’s outcome confirms that we will aggressively investigate and prosecute intellectual property crimes, regardless of whether the perpetrators are foreign or domestic, corporations or individuals. There are no safe harbors for those who seek to steal trade secrets in the Eastern District of Virginia.”
“Protecting American companies from the theft of their trade secrets is a high priority for the FBI,” said Special Agent in Charge Lee. “Each year, billions of U.S. dollars are lost to foreign competitors who pursue illegal commercial short cuts by stealing valuable advanced technologies. This case demonstrates the FBI’s ability to penetrate these highly sophisticated criminal schemes and bring their perpetrators to justice. Its outcome should send a clear message to foreign commercial actors who seek to illegally exploit American companies and steal our nation’s innovation and technology.”
According to the statement of facts filed with the plea agreement, from June 2006 to February 2009, Kolon conspired with former DuPont employees and others to steal DuPont’s trade secrets for making Kevlar, a high-strength, para-aramid synthetic fiber. Kevlar, a trademarked name, is one of DuPont's most well-known products and is used is a wide range of commercial applications such as body armor, fiber optic cables, and automotive and industrial products. Kolon admitted that it was attempting to improve the quality of its own para-aramid fiber known as Heracron.
Kolon personnel met repeatedly with former DuPont employees, including Edward Schulz, 72, of Brownstown, Pennsylvania, and Michael Mitchell, 58, of Chesterfield, Virginia, to obtain confidential and proprietary DuPont information about Kevlar. Schulz pleaded guilty to conspiracy to steal trade secrets in September 2014 and is scheduled to be sentenced on June 26, 2015. Mitchell pleaded guilty to theft of trade secrets and obstruction of justice in December 2009 and was sentenced to 18 months in prison.
Kolon admitted that it obtained technical and business documents regarding Kevlar, including instructional materials that described DuPont’s “New Fiber Technology,” documents on polymerization, and a detailed breakdown of DuPont’s capabilities and costs for the full line of its Kevlar products and DuPont’s Kevlar customers.
According to the statement of facts and Mitchell’s admissions at his guilty plea, Mitchell exchanged numerous telephone calls and emails with Kolon personnel. On more than one occasion, Mitchell advised Kolon personnel that some of the information they sought was proprietary and that DuPont considered such information to be trade secrets. Mitchell also coordinated a meeting at a hotel in Richmond, at which Kolon personnel were introduced to a cooperating witness who pretended to be a disgruntled scientist from DuPont. During the Richmond meeting, Kolon personnel indicated that they would only be comfortable communicating with the cooperating witness in a manner that was confidential and that would not leave an evidentiary trail.
In February 2009, DuPont filed a civil lawsuit against Kolon in the Eastern District of Virginia, alleging theft of trade secrets. Thereafter, certain Kolon personnel attempted to delete files and emails related to Mitchell, Schulz and outside consultants hired to improve Kolon’s para-aramid fiber, and urged other Kolon personnel to search for such materials and mark them for deletion.
Kolon also admitted that certain employees approached a former employee of an American subsidiary of Teijin Ltd. – a Japanese company that makes the para-aramid fiber called Twaron—in an unsuccessful effort to obtain information about Twaron.
This case represents the first time that foreign corporations with no direct presence in the United States were found to be successfully served with U.S. criminal process, over their objections, based on service pursuant to an international treaty. In December 2014, the district court found that both of the successor companies were properly served, and ordered them to appear for arraignment. In February 2015, the Fourth Circuit Court of Appeals denied Kolon’s petition for extraordinary relief seeking reversal of the district court’s order.
Five former Kolon executives and employees, all of South Korea, were charged in an August 2012 indictment filed in the Eastern District of Virginia: Jong-Hyun Choi, 58, a senior executive who oversaw the Heracron Business Team; In-Sik Han, 52, who managed Kolon’s research and development related to Heracron; Kyeong-Hwan Rho, 49, the head of the Heracron Technical Team; Young-Soo Seo, 51, the general manager for the Heracron Business Team; and Ju-Wan Kim, 42, a manager on the Heracron Business Team.
None of these individuals has appeared in the United States to face the charges. The charges contained in an indictment are merely accusations, and a defendant is presumed innocent unless and until proven guilty.
The case was investigated by the FBI’s Richmond Division. The case is being prosecuted by Assistant U.S. Attorneys Kosta S. Stojilkovic and Matthew Burke of the Eastern District of Virginia, Trial Attorney John W. Borchert of the Criminal Division’s Fraud Section and Senior Counsel Rodolfo Orjales of the Criminal Division’s Computer Crime and Intellectual Property Section. The Criminal Division’s Office of International Affairs has provided valuable assistance.
Ketchikan Couple Indicted and Arraigned in Federal Court on Drug Conspiracy ChargesRead the Press Release
Anchorage, Alaska - United States Attorney Karen L. Loeffler announced today that Robert Duane Moriarty, 36, and Sara Skan, 34, of Ketchikan, Alaska, were indicted by a federal grand jury in Anchorage on April 21, 2015, on a single count of drug conspiracy. Moriarty and Skan were arraigned yesterday in U.S. District Court in Ketchikan before Chief Magistrate Judge Deborah M. Smith.
According to the indictment, Moriarty and Skan conspired with each other and others to distribute and to possess with the intent to distribute methamphetamine and heroin in Ketchikan, Alaska, between September 2014 and January 28, 2015. The United States is also seeking forfeiture of $1,009 in U.S. Currency in a separate forfeiture allegation.
Assistant U.S. Attorney Jack S. Schmidt, who presented the case to the grand jury, indicated that the law provides for a maximum sentence of 40 years in prison, a fine of $5,000,000, or both. Under the federal sentencing statutes, the actual sentence imposed will be based upon the seriousness of the offense(s) and the prior criminal history, if any, of the defendants. Both defendants are currently detained pending trial.
The Drug Enforcement Administration, Federal Bureau of Investigation, Port of Seattle Police Department, and the Ketchikan Police Department conducted the investigation leading to the indictment in this case.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Justice Department Wins Its Suit Seeking Religious Diets for Florida PrisonersRead the Press Release
The U.S. District Court for the Southern District of Florida today granted the Justice Department’s motion for summary judgment in United States v. Florida Department of Corrections, holding that the Department of Corrections’ failure to provide a kosher diet violated the Religious Land Use and Institutionalized Persons Act of 2000 (RLUIPA). Consuming a kosher diet is central to the religious observance of hundreds of Florida prisoners. For years, the Department of Corrections’ policy had forced these prisoners to violate their core beliefs on a daily basis by eating non-kosher meals.
“Religious freedom is a cornerstone of our pluralistic society,” said Principal Deputy Assistant Attorney General Vanita Gupta of the Civil Rights Division. “State and local correctional facilities incarcerate individuals from a wide variety of faith groups and religious backgrounds. Accommodating these prisoners’ religious exercise is a core tenet of effective prison management. It reduces tension and disciplinary incidents, fosters learning and self-reflection and ultimately eases prisoners’ transition back into mainstream society.”
Congress enacted RLUIPA unanimously, recognizing that religion plays an indispensable role in the management of correctional facilities and the rehabilitation of prisoners. To achieve Congress’ goal of protecting prisoners’ religious liberty, RLUIPA prohibits policies that substantially burden prisoners’ religious exercise unless those policies are the least restrictive means of furthering a compelling government interest. The act allows the Justice Department to remedy violations through civil litigation. The Justice Department has previously used RLUIPA to secure prisoners’ access religious texts, wear religiously significant clothing, consume religious diets and observe their faith by maintaining beards or long hair.
The Special Litigation Section of the Justice Department’s Civil Rights Division in Washington, D.C. filed suit against the Florida Department of Corrections in 2012 after a 15-month investigation found that the failure to offer a kosher diet violated RLUIPA. The case number is 2012-cv-22958 (S.D. Fla).
Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt.
Justice Department Settles Housing Discrimination Lawsuit involving North Attleboro Apartment ComplexRead the Press Release
BOSTON – The U.S. Attorney’s Office and the Justice Department today announced an agreement with J & R Associates, the owner and operator of the Royal Park Apartments in North Attleboro, Mass., to resolve allegations of discrimination against families with children in violation of the Fair Housing Act.
The lawsuit, filed today in U.S. District Court in Boston, alleges that J & R Associates discriminated against families with children seeking to rent units at Royal Park Apartments by maintaining and enforcing policies that segregate families with children in certain buildings and restrict them to certain floors and units within the 224-unit complex. The allegations are based on evidence generated by the Department’s Fair Housing Testing Program, in which individuals pose as renters to gather information about possible discriminatory practices.
Under the terms of the agreement, which is in the form of a consent order and still must be approved by the Court, J & R Associates will establish a settlement fund in the amount of $135,000 to compensate victims of their discriminatory practices. The defendant also will pay $7,500 in civil penalties to the United States. The agreement requires J & R Associates to take steps to ensure that families with children no longer are restricted from renting units anywhere at Royal Park Apartments.
“Families should be able to rent and live where they choose, without being discriminated against because they have children,” said United States Attorney Carmen M. Ortiz. “My office remains committed to enforcing federal civil rights laws to ensure equality for the residents in this district.”
“Discrimination against families because they have children limits their ability to find suitable housing and will not be tolerated,” said Principal Deputy Assistant Attorney General Vanita Gupta of the Justice Department’s Civil Rights Division. “We appreciate the defendant’s cooperation with our investigation and willingness to resolve the claims.”
The federal Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability. More information about the Civil Rights Division and the laws it enforces is available at www.usdoj.gov/crt. Individuals who believe that they have been victims of housing discrimination can call the Housing Discrimination Tip Line at 1-800-896-7743, e-mail the Justice Department at [email protected] or contact HUD at 1-800-669-9777.
This matter was handled by Assistant U.S. Attorney Jennifer Serafyn of Ortiz’s Civil Rights Enforcement Team and Trial Attorney Beth Pepper of the Justice Department’s Civil Rights Division.
Justice Department Settles Housing Discrimination Lawsuit Involving North Attleboro, Massachusetts, Apartment ComplexRead the Press Release
The Justice Department today announced an agreement with J & R Associates, the owner and operator of the Royal Park Apartments in North Attleboro, Massachusetts, to resolve allegations of discrimination against families with children in violation of the Fair Housing Act.
The lawsuit, filed today in U.S. District Court of the District of Massachusetts, alleges that J & R Associates discriminated against families with children seeking to rent units at Royal Park Apartments by maintaining and enforcing policies that segregate families with children in certain buildings and restrict them to certain floors and units within the 224-unit complex. The allegations are based on evidence generated by the department’s Fair Housing Testing Program, in which individuals pose as renters to gather information about possible discriminatory practices.
Under the terms of the agreement, which is in the form of a consent order and still must be approved by the court, J & R Associates will establish a settlement fund in the amount of $135,000 to compensate victims of their discriminatory practices. The defendant also will pay $7,500 in civil penalties to the United States. The agreement requires J & R Associates to take steps to ensure that families with children no longer are restricted from renting units anywhere at Royal Park Apartments.
“Discrimination against families because they have children limits their ability to find suitable housing and will not be tolerated,” said Principal Deputy Assistant Attorney General Vanita Gupta of the Justice Department’s Civil Rights Division. “We appreciate the defendant’s cooperation with our investigation and willingness to resolve the claims.”
“Families should be able to rent and live where they choose, without being discriminated against because they have children,” said U.S. Attorney Carmen M. Ortiz of the District of Massachusetts. “My office remains committed to enforcing federal civil rights laws to ensure equality for the residents in this district.”
The federal Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability. More information about the Civil Rights Division and the laws it enforces is available at www.usdoj.gov/crt. Individuals who believe that they have been victims of housing discrimination can call the Housing Discrimination Tip Line at 1-800-896-7743, e-mail the Justice Department at [email protected] or contact HUD at 1-800-669-9777.
Jury Convicts Hammond Resident for Gun and Drug ViolationsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that on Tuesday, April 28, 2015, a jury convicted MELVIN JACKSON, age 34, of Hammond, of violations of federal drug and firearms laws.
After a two-day trial, the jury returned a guilty verdict on all three counts charged in the Indictment: conspiracy to distribute and possess with intent to distribute over one kilogram of heroin; felon in possession of a firearm; and possession with intent to distribute a quantity of heroin.
JACKSON faces a minimum sentence of ten years’ incarceration, and a maximum of life imprisonment. U.S. District Judge Stanwood R. Duval, Jr. set sentencing for August 12, 2015.
U.S. Attorney Polite commended the work of the Drug Enforcement Administration and the Tangipahoa Parish Sheriff’s Office in investigating this matter. Assistant United States Attorneys Maurice Landrieu and Brandon Long were responsible for the prosecution.
Jasper Physician Indicted for Illegally Dispensing NarcoticsRead the Press Release
BIRMINGHAM -- A federal grand jury today indicted a physician and owner of a Jasper neurology and pain clinic on illegal drug distribution charges for dispensing narcotic painkillers for other than legitimate medical purposes. U.S. Attorney Joyce White Vance, Drug Enforcement Administration Assistant Special Agent in Charge Clay A. Morris and Internal Revenue Service Criminal Investigation Special Agent in Charge Veronica Hyman-Pillott announced the charges.
An indictment filed in U.S. District Court charges Dr. MUHAMMAD WASIM ALI, 50, of Vestavia Hills, with 10 counts of unlawfully distributing controlled substances "outside the scope of professional practice and not for a legitimate medical purpose" to three people working undercover with law enforcement. Ali owns and practices at the Walker Rural Health Care/Jasper Neurological Care clinic. DEA agents arrested Ali and searched his clinic on March 27.
The 10 distribution counts charge 10 instances that Ali illegally dispensed oxycodone, an opioid painkiller, to three undercover agents between August 2014 and November 2014. According to the indictment, Ali dispensed 1,100 oxycodone pills to the three people within those three months.
"Narcotic painkillers have an important and legitimate use in medical treatment, but Alabama leads the nation in the number of prescriptions per capita for opioid painkillers," Vance said. "Opiates are extremely addictive, and the use and abuse of opioid painkillers often lead to the abuse of and addiction to heroin, which is killing people in record numbers," she said. "Physicians who provide these dangerous narcotics without justifiable medical reasons must be stopped."
"The use and abuse of prescription opioid pain relievers for non-medical reasons is at epidemic levels across the United States, and Alabama is no exception," Morris said. "The DEA enjoys outstanding relationships with the vast majority of DEA registrants, including physicians; however, physicians who have abandoned their duties and the Hippocratic Oath cannot be tolerated. Those whose sole purpose is to profit from the addictions of others will be stopped," he said. "The abuse of opioid-based drugs is deadly. DEA remains committed to removing all drug sources of supply from our communities."
“The federal laws that regulate structuring requirements are in place to detect and stop those knowingly and willfully structuring to conceal their illegal activities,” Hyman-Pillot said. “Individuals who structure currency transactions are attempting to circumvent the law. This type of suspicious behavior will be thoroughly investigated in an effort to reveal underlying criminal activity,” she said.
The indictment against Ali also charges him with two counts of illegally possessing with intent to distribute controlled substances on March 27. One count charges illegal possession with intent to distribute hydrocodone, oxycodone and fentanyl, and a second count charges illegal possession with intent to distribute amphetamine salts and oxycodone.
The indictment's 13th count charges Ali with structuring currency transactions totaling about $151,480 at Wells Fargo Bank between July 10, 2014, and Dec. 8, 2014, in order to avoid the requirement that banks report transactions of $10,000 or more to the U.S. Treasury.
The maximum penalty for the distribution counts is 20 years in prison and a $1 million fine. The maximum penalty for financial structuring is 10 years in prison and a $500,000 fine.
The DEA and IRS-CI investigated the case, which Assistant U.S. Attorney Elizabeth A. Holt is prosecuting.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
Irs Revenue Officer Indicted for Mail and Wire Fraud, Filing False Tax Returns, Identity Theft, and PerjuryRead the Press Release
A twenty-eight-count indictment was unsealed today in United States District Court for the Eastern District of New York charging James Brewer, a resident of Staten Island, New York, with seven counts of wire fraud, mail fraud, three counts of subscribing to false federal tax returns, six counts of aiding and assisting in the preparation of false federal tax returns, ten counts of aggravated identity theft, and perjury. Brewer is a Revenue Officer of the Internal Revenue Service (IRS), assigned to the Edison, New Jersey IRS office. Brewer was arrested in Las Vegas, Nevada, and is scheduled to be arraigned tomorrow afternoon before a United States Magistrate Judge at the federal courthouse in Las Vegas.
The charges were announced by Kelly T. Currie, Acting United States Attorney for the Eastern District of New York, Jonathan D. Larsen, Special Agent-in-Charge, Internal Revenue Service-Criminal Investigation (IRS-CI), Newark Field Office and Rodney A. Davis, Special Agent-in-Charge, Treasury Inspector General for Tax Administration (TIGTA), Washington Field Division.
“As alleged, James Brewer abused his position of trust to enrich himself,” stated Acting United States Attorney Currie. “He willfully disregarded his responsibility to deal honestly and testify truthfully, and now stands accused of a series of crimes. We will continue to work with our law enforcement partners to enforce our laws across the board.” Mr. Currie expressed his grateful appreciation to the United States Attorney’s Office for the District of New Jersey, the United States Attorney’s Office for the District of Nevada, IRS-CI, Las Vegas Field Office and the Treasury Inspector General for TIGTA, Denver Field Division for its assistance in this case.
“The crimes alleged in this indictment are very serious. While employed by the IRS to enforce our nation’s tax laws, it is alleged that James Brewer was himself breaking these laws,” stated Special Agent-in-Charge Larsen, IRS-Criminal Investigation, Newark Field Office. “Today’s indictment underscores our commitment to work in a collaborative effort to promote honest and ethical government at all levels and to prosecute those who allegedly violate the public’s trust.”
“Mr. Brewer allegedly not only stole the identities of taxpayers for personal gain but also allegedly cheated the very tax system he was paid to uphold and support. TIGTA will aggressively investigate any allegation of an IRS employee committing a criminal act that impacts federal tax administration,” said TIGTA Special Agent-in-Charge Davis.
According to the indictment, Brewer operated two outside businesses contrary to IRS regulations: he prepared tax returns for others in exchange for fees, and he operated a business selling designer clothes, collectable toys, sports memorabilia, and other items through the Internet auction site “eBay.” As part of a scheme to fraudulently reduce his taxable income and increase his tax refunds, Brewer failed to report any income he received for his unauthorized tax preparation business, underreported the gross receipts earned from his Internet retail business, and claimed false dependents on federal tax returns he prepared and filed on his behalf for three tax years. Brewer also engaged in a multi-year scheme in which he prepared and filed false tax returns for others. Brewer listed false dependents and false deductions on these returns, among other materially false information, in order to fraudulently cause his clients to receive a refund to which they were otherwise not entitled or fraudulently inflate their refunds. In doing so, Brewer listed the names and social security numbers of various individuals on those tax returns as dependents without those individuals’ authorization. As part of this scheme, Brewer also diverted a portion of those clients’ refunds to himself, in some cases without his clients’ authorization or knowledge. Finally, in an effort to fraudulently obtain for himself a tax credit for first time homebuyers, Brewer lied under oath about his residency when he testified in a matter in the United States Tax Court in New York, New York.
The charges in the indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s Public Integrity Section. Assistant United States Attorneys Marisa Megur Seifan and Moira Kim Penza are in charge of the prosecution.
The Defendant:
JAMES C. BREWER
Age: 38
Staten Island, New York
E.D.N.Y. Docket No. 15 CR 209 (PKC)
Indiana County Man Sentenced to Prison for Heroin Trafficking ConspiracyRead the Press Release
JOHNSTOWN, Pa. – An Indiana County resident has been sentenced in federal court to 16 months in prison and four years supervised release on his conviction of conspiracy to distribute heroin, United States Attorney David J. Hickton announced today.
United States District Judge Kim R. Gibson imposed the sentence on Douglas A. Lydic, 31, of Commodore, Pa.
According to information presented to the court, from April 2012 to March 8, 2013, Lydic conspired with his co-defendants to possess and distribute 100 grams or more of heroin.
Assistant United States Attorney John J. Valkovci, Jr., prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Cambria County Drug Task Force for the investigation leading to the successful prosecution of Lydic.
Independent Contractor in Afghanistan Sentenced to 48 Months for His Role in Offering $54,000 in Bribes to A U.S. Government OfficialRead the Press Release
Earlier today at the federal courthouse in Brooklyn, Akbar Ahmad Sherzai, an independent contractor for a trucking company operating in Afghanistan responsible for delivering fuel to U.S. Army installations, was sentenced to 48 months’ imprisonment, three years of supervised release, and forfeiture of $54,000 for his role in offering a U.S. Army serviceman bribes to falsify documents to reflect the successful delivery of fuel shipments that Army records indicate were never delivered. The sentencing proceeding was held before U.S. District Judge Margo K. Brodie. Sherzai previously pleaded guilty to one count of conspiracy to commit bribery.
The sentence was announced by Kelly T. Currie, Acting United States Attorney for the Eastern District of New York, Leslie R. Caldwell, Assistant Attorney General of the Justice Department’s Criminal Division, John F. Sopko, Special Inspector General for Afghanistan Reconstruction, Diego G. Rodriguez, Assistant Director-in-Charge of the Federal Bureau of Investigation, New York Field Office, Raymond R. Parmer, Special Agent in Charge, Immigration and Customs Enforcement, Homeland Security Investigations (HSI), and Frank Robey, Director of the U.S. Army’s Criminal Investigation Command.
“Attempts to corrupt American officials will not be tolerated, either at home or abroad,” stated Acting United States Attorney Currie. “Our efforts to bring to justice those who would do so do not end at our nation’s borders.” Mr. Currie extended his grateful appreciation to each of the agencies who participated in the investigation and prosecution of this case.
The U.S. Army regularly contracts with local Afghan trucking companies to transport U.S. military equipment, fuel, and other supplies throughout Afghanistan. To ensure the companies fulfilled these requests, the U.S. Army used transportation movement requests (TMRs), which, when properly completed, verified that the shipments were successfully completed before approving payments to the trucking companies.
In April 2013, Sherzai approached a U.S. military serviceman to discuss fuel delivery missions that had been classified by the U.S. Army as “no-shows,” meaning that the fuel had not been delivered. Sherzai offered the serviceman a bribe to falsify the TMRs to reflect successful deliveries so that Sherzai’s company would receive payment and avoid penalties for failed fuel deliveries. The serviceman, under the supervision of law enforcement, continued to meet with Sherzai to discuss payments for the falsification of records. On two separate occasions, Sherzai paid the serviceman bribes in cash on American military bases in Afghanistan. On another occasion, Sherzai arranged for the serviceman’s bribe to be transferred to the United States through a hawala, an informal money transfer system. In total, Sherzai paid the serviceman $54,000 in cash to falsify 14 TMRs. Each “no show” delivery mission, absent the fraudulent TMRs, would have resulted in a fine of the company by the U.S. government of $75,000.
The government’s case is being prosecuted by Assistant U. S. Attorney Amir H. Toossi and Trial Attorney Daniel Butler of the Criminal Division’s Fraud Section.
The Defendant:
AKBAR AHMAD SHERZAI
Age: 50
Centerville, Virginia
Citizenship: Dual United States and Afghanistan
E.D.N.Y. Docket No. 14-Cr-60 (MKB)
Illegal Alien Charged with Passport Fraud and Illegal Possession of FirearmRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a citizen of the Dominican Republic illegally residing in Hazleton has been charged with attempting to obtain a U.S. passport by false statements and with illegally possessing a firearm.
According to United States Attorney Peter Smith, Jhonny Melenciano Marte, age 34, of Hazleton, was charged in a Criminal Information filed today in the United States District Court in Scranton. The Criminal Information was filed pursuant to a Plea Agreement which is subject to the approval of the court.
The case was investigated by the United States Department of State, Diplomatic Security Service, Homeland Security Investigations, and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATFE). The case is being prosecuted by Assistant U.S. Attorney Todd Hinkley.
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 guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 20 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Huntsville, Alabama, Police Officer Charges with Excessive Use of Force and Obstruction of JusticeRead the Press Release
The Justice Department announced that Huntsville, Alabama, Police Department Officer Brett Russell, 48, has been charged with deprivation of rights under color of law for allegedly assaulting and injuring G.H., a detainee, on Dec. 23, 2011. Russell also has been charged with obstruction of justice for allegedly filing a false police report regarding this incident.
The indictment identifies the subject of the arrest by the initials, “G.H.” According to the indictment, Russell falsely stated in his incident report that G.H. kicked at officers, attempted to head-butt officers while they transported him to Russell's vehicle, that he was told to stop resisting several times but would not comply and that he was transported to the Huntsville metro jail “without incident.” Russell omitted from his report that he "had struck G.H. with his fist and kneed G.H. in the body," as the indictment says.
Russell faces a maximum sentence of 10 years in prison for the civil rights charge and 20 years for the obstruction charge. An indictment is merely an allegation, and the defendant is presumed innocent until proven guilty.
The investigation by the Florence Resident Agency of the FBI is ongoing. The case is being prosecuted by Trial Attorney Carroll McCabe of the Civil Rights Division and Assistant U.S. Attorney Xavier O. Carter Sr. of the Northern District of Alabama.
Huntsville Police Officer indicted for Excessive Force in 2011 ArrestRead the Press Release
BIRMINGHAM -- A federal grand jury today indicted a Huntsville police officer for using excessive force during a 2011 arrest, announced Acting Assistant Attorney General Vanita Gupta of the Justice Department's Civil Rights Division, U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Roger C. Stanton.
A two-count indictment filed in U.S. District Court charges that BRETT M. RUSSELL, 48, of Huntsville, assaulted a man during a Dec. 23, 2011, arrest, thereby depriving the man of his constitutional right not to be subjected to excessive force by someone acting in the official capacity of a police officer, or "under color of law." The indictment also charges that Russell obstructed justice by making false statements and concealing information in the incident report he filed on the arrest.
"We are fully committed to investigating, and prosecuting where appropriate, the use of excessive force by law enforcement officers," Vance said.
The indictment identifies the subject of the arrest by the initials, "G.H." According to the indictment, Russell falsely stated in his incident report that G.H. kicked at officers, attempted to head-butt officers while they transported him to Russell's vehicle, that he was told to stop resisting several times but would not comply, and that he was transported to the Huntsville metro jail "without incident." Russell omitted from his report that he "had struck G.H. with his fist and kneed G.H. in the body," the indictment says.
The maximum penalty for deprivation of civil rights under color of law is 10 years in prison and a $250,000 fine. The obstruction of justice count carries a maximum penalty of 20 years in prison and a $250,000 fine.
The investigation by the Florence Resident Agency of the FBI is ongoing. Assistant U.S. Attorney Xavier O. Carter Sr. and DOJ Trial Attorney Carroll McCabe are prosecuting the case.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
Honduran National Pleads Guilty to Immigration OffenseRead the Press Release
United States Attorney Kenneth A. Polite announced that JOSE MARTINEZ-ROMERO, age 32, a native of Honduras, pled guilty yesterday to a one-count Indictment for illegal entry of a removed alien.
According to court documents, MARTINEZ was previously removed from the United States on April 16, 2007. MARTINEZ was later found in the Eastern District of Louisiana on March 2, 2015 and had not received permission from the Attorney General of the United States or the Secretary of the Department of Homeland Security to reenter.
MARTINEZ faces a maximum term of imprisonment of two years, as well as a fine of $250,000. United States District Court Judge Carl J. Barbier set sentencing for June 11, 2015.
U.S. Attorney Polite praised the work of Immigration and Customs Enforcement in investigating this matter. Assistant United States Attorney Jon Maestri is in charge of the prosecution.
Jose Martinez-Romero Factual Basis (630.46 KB)
Hawthorne Woman Sentenced to 6½ Years in Federal Prison for Running Wheelchair Scam That Cost Medicare Nearly $3.5 MillionRead the Press Release
LOS ANGELES – A Hawthorne woman who ran a company that submitted more than $7 million in fraudulent claims to Medicare – primarily for power wheelchairs that were not needed by patients – and caused the government health insurance program to lose nearly $3.5 million has been sentenced to 78 months in federal prison.
Adeline Ekwebelem, 51, was sentenced yesterday afternoon by United States District Court Judge Michael W. Fitzgerald, who also ordered the defendant to pay $3.45 million in restitution to the Medicare program.
Following a seven-day trial last September, a federal jury found Ekwebelem guilty of 16 counts of conspiracy to commit health care fraud, health care fraud and payment of illegal kickbacks.
The evidence presented at the trial showed that Ekwebelem’s Gardena-based durable medical equipment (DME) supply company, Adelco Medical Distributors, Inc., billed Medicare for medically unnecessary DME – primarily power wheelchairs – for beneficiaries often recruited off the street. As part of the scheme, which ran from January 2007 through December 2011, Ekwebelem illegally paid kickbacks to “marketers” who recruited those beneficiaries and then paid kickbacks to a handful of complicit doctors in exchange for fraudulent prescriptions for DME.
Those doctors included Dr. Charles Okoye, who was sentenced to two years in federal prison after he pled guilty to conspiring with Ekwebelem to commit health care fraud, and Dr. Uche Chukwudi, who fled a month before trial and remains a fugitive. Three of Adelco’s marketers – Romie Tucker, Cindy Santana and Maritza Hernandez – have also received sentences of up to two years in prison for their roles in the scheme.
During the course of the scheme, Ekwebelem submitted more than $7 million in fraudulent claims to Medicare and received nearly $3.5 million. As the evidence at trial showed, Ekwebelem did more than cause substantial losses to Medicare – she also caused harm to Medicare beneficiaries. Medicare will only pay for one wheelchair every five years. On at least one occasion, Ekwebelem submitted a fraudulent claim to Medicare for a power wheelchair that she did not even let the beneficiary keep, which later prevented the beneficiary from getting a wheelchair when it was actually needed.
As prosecutors wrote in a sentencing memorandum filed with the court: “In addition to exploiting Medicare’s honor system, defendant’s scheme also took advantage of the beneficiaries’ unfamiliarity with the English language and the Medicare system, forcing them to provide their personal Medicare information and sign forms shifting liability for the power wheelchairs to them, even though the forms were neither translated nor explained to the beneficiaries. In some cases, defendant’s conduct even prevented beneficiaries from getting medical care they later needed.”
The investigation into Ekwebelem and Adelco was conducted by the U.S. Department of Health and Human Services, Office of the Inspector General, and the Federal Bureau of Investigation.
Release No. 15-038
Grand Isle Man Sentenced to 41 Months in Prison for Submitting a Fraudulent GCCF ClaimRead the Press Release
U.S. Attorney Kenneth A. Polite announced that RONNIE P. VEDROS, 52, of Grand Isle, was sentenced today after previously pleading guilty to one count of mail fraud.
U.S. District Judge Lance M. Africk sentenced VEDROS to 41 months imprisonment, to be followed by three years of supervised release. In addition to the term of imprisonment, VEDROS was ordered to pay $30,173.56 in restitution.
According to court documents, VEDROS’s charges stem from an application he submitted to the Gulf Coast Claims Facility (GCCF) in the aftermath of the explosion and oil spill at the Deepwater Horizon oil rig. VEDROS claimed to have lost earnings as a commercial fisherman and engineer as a result of the oil spill and provided documentation to prove his loss. In reality, as set forth in the factual basis, VEDROS was neither a commercial fisherman nor employed as an engineer at the time of the disaster and the documentation submitted had been falsified. As a result of VEDROS’s false application, he received approximately $30,173.56 in funds from the GCCF in which he was not entitled.
This case was brought as part of this District’s partnership with the National Center for Disaster Fraud (NCDF), a nationwide initiative to protect available funds and assistance for those victims of both natural and man-made disasters such as hurricanes, floods, tornadoes and the recent Gulf oil spill. If you have knowledge of fraud, waste, abuse, or allegations of mismanagement involving disaster relief operations, you can contact the NCDF by either calling the hotline at (866) 720-5721, faxing (225) 334-4707, emailing at [email protected]
U.S. Attorney Polite praised the work of the U.S. Secret Service in investigating this case. Assistant U.S. Attorney Tracey Knight was in charge of the prosecution.
Germantown Man Indicted for Failing to Pay $550,000 in TaxesRead the Press Release
Memphis, TN – A 46-year-old Germantown man was indicted this week on tax evasion charges for failing to file and pay more than $500,000 in income tax returns.
According to the indictment, John Ballard, a former securities/investment broker, failed to file and pay income tax returns from 2000 to 2008. Ballard’s delinquency caused him to owe $553,627.28 in back taxes. This amount, however, doesn’t include penalty charges and accrued interest.
Ballard was able to avoid satisfying his tax obligations by falsely claiming to the Internal Revenue Service (IRS) that he was unemployed and unable to find employment.
Despite owing the government, the indictment alleges Ballard was paid approximately $522,140.79 in 2009 alone from his then employer NFP Securities.
Ballard faces up to five years in prison if convicted.
The case was investigated by IRS-Criminal Investigation. The government’s case is being prosecuted by Assistant U.S. Attorney John Fabian.
The charges and allegations contained in the indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Fugitive Sought in Sex Trafficking of Minors CaseRead the Press Release
GALVESTON, Texas – A criminal complaint charging three Galveston residents has been unsealed alleging they engaged in a conspiracy to traffic minors for sexual purposes and financial gain, announced U.S. Attorney Kenneth Magidson.
The criminal complaint was filed under seal April 21, 2015, and charges Charles Devan Fulton Sr., 39, Charmell Potts, 32, and Dominque Warner, 23. It was unsealed in Galveston federal court today as Warner was ordered into custody pending further criminal proceedings. Potts was previously ordered into custody where she will also remain. Fulton is considered a fugitive and a warrant remains outstanding for his arrest.
Fulton is alleged to have coerced several young females into prostitution. The victims were advertised on websites commonly known for publicizing commercial sex. The complaint further alleges that Fulton would not rent rooms himself; therefore, Potts and Warner would do so at area hotels to use for prostitution involving the young girls. The complaint also alleges Warner would drive the girls to the locations, wait until they were finished, then drive them back to Fulton’s residence in Galveston. Potts also drove the girls and would keep some of the monies earned, according to the complaint. Fulton would allegedly keep the remainder of all of the monies the victims earned.
A reward of up to $5000 is being offered by the FBI and Crime Stoppers for information that leads to the arrest of Fulton.
Anyone with information about his whereabouts is asked to call the Houston office of the FBI at 713-693-5000 or call Crime Stoppers of Houston at 713-222-TIPS (8477). Text TIP610 plus your tip to CRIMES (274637) or visit www.crime-stoppers.org. All tipsters remain anonymous.
Beginning today, Clear Channel Outdoor will post messages on digital billboards across the Greater Houston and Galveston County area to publish the reward and a picture of the fugitive. Clear Channel Outdoor is donating space and time on its digital billboards as a public service to the community.
The charges are the result of an investigation conducted jointly by the FBI and Galveston Police Department. Assistant U.S. Attorney Sherri Zack is prosecuting the case.
The prosecution 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."
A criminal complaint is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Fountain Inn Man Pleads Guilty to Hydrocodone ConspiracyRead the Press Release
Contact Person: Bill Watkins (864) 282-2100
Columbia, South Carolina ---- United States Attorney Bill Nettles stated that Houston G. Leake, age 70, of Fountain Inn, pled guilty today in federal court in Greenville, to conspiracy to distribute hydrocodone and other controlled substances, a violation of Title 18, United States Code, Section 846. Senior United States District Judge G. Ross Anderson, Jr., of Anderson accepted the plea and will impose sentence after he has reviewed the presentence report which will be prepared by the U.S. Probation Office.
Evidence presented at the change of plea hearing established that the federal Drug Enforcement Administration along with the Fountain Inn Police Department had undertaken a long-term investigation of Leake. Agents used a confidential informant and an undercover police office to make 7 buys of hydrocodone and Percocet pills from Leake. Based on the undercover buys, law enforcement executed a search warrant at Leake’s home. Inside they found various controlled substances including morphine, methadone, oxycodone and hydrocodone. Law enforcement also found various firearms.
Mr. Nettles stated the maximum penalty Leake can receive is a fine of $250,000 and/or imprisonment for 20 years, plus a special assessment of $100.
The case was investigated by agents of the Fountain Inn Police Department and the federal Drug Enforcement Administration. Assistant United States Attorney Bill Watkins of the Greenville office handled the case.
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