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21 April 2015
Family Dermatology PcC Agrees to Pay United States More Than $3.2 Million to Settle Alleged False Claims Act ViolationsRead the Press Release
Family Dermatology P.C. which owns and operates a dermatopathology laboratory in Georgia and a number of dermatology practices throughout the Eastern United States, has agreed to pay the United States $3,247,835 plus interest to settle allegations that it violated the False Claims Act by engaging in improper financial relationships with a number of its employed physicians, the Justice Department announced today.
“The Department of Justice has had longstanding concerns about improper financial relationships between health care providers and their referral sources, because such relationships can alter a physician's judgment about the patient's true health care needs and drive up health care costs for everybody,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer of the Department’s Civil Division. “In addition to yielding a recovery for taxpayers, this settlement should deter similar conduct in the future and help make health care more affordable.”
The settlement announced today resolved allegations that financial relationships that Family Dermatology and its affiliates had with a number of their employed physicians violated the Stark Statute and the False Claims Act. The Stark Statute restricts the financial relationships that health care providers may have with doctors who refer patients to them. Family Dermatology employs a number of dermatologists as independent contractors and it has routinely required them to use Family Dermatology’s in-house pathology lab, which operated under the name Nelson Dermatopathology, for their pathology services. The government alleged that Family Dermatology’s financial relationships with a number of these physicians did not comply with the requirements of the Stark Statute, and that Family Dermatology improperly billed Medicare for dermatopathology analyses performed by Nelson Dermatopathology on specimens that were sent to the laboratory by these employed physicians.
“The defendants financed the expansion of their business across the Eastern United States with improper financial arrangements that resulted in illegal referrals and, ultimately, inflated payments from Medicare,” said Acting U.S. Attorney John Horn of the Northern District of Georgia. “We expect providers to follow the law and will pursue those who do not.”
“Physician self-referrals that violate the Stark Statute undermine medical decision making, jeopardize patient care and cost the taxpayers money,” said U.S. Attorney A. Lee Bentley III of the Middle District of Florida. “Patients need to have confidence that the advice they receive from their physicians is based on sound medical practice, not illegal financial relationships between providers. We will continue to investigate and pursue these types of violations in our district.”
“This settlement not only demonstrates the need for oversight involving such matters under the False Claims Act, but also the FBI’s commitment toward enforcing this as well as other health care fraud based violations,” said Special Agent in Charge J. Britt Johnson of the FBI’s Atlanta Field Office.
“Health care companies that make sweetheart deals with physicians to boost profits undercut both the financial integrity of Medicare and the public’s trust in the medical profession,” said Special Agent in Charge Derrick L. Jackson of the Department of Health and Human Services’ Office of Inspector General (HHS-OIG). “Our agency will continue to hold those who engage in such improper financial schemes accountable.”
The allegations settled today arose from three separate lawsuits filed by three whistleblowers, Scott M. Ross MD, Mark F. Baucom and Harold Milstein MD under the qui tam provisions of the False Claims Act. Under the act, private citizens can bring suit on behalf of the government for false claims and share in any recovery. The whistleblowers will collectively receive more than $584,000 from the recovery announced today.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $24 billion through False Claims Act cases, with more than $15.3 billion of that amount recovered in cases involving fraud against federal health care programs.
The cases, United States ex rel. Ross v. Family Dermatology of Pennsylvania, P.C., et al., Case No. 1:11-cv-2413 (N.D. Ga.); United States ex rel. Baucom v. Family Dermatology of Pennsylvania, P.C., et al., Case No. 1:11-cv-4260 (N.D. Ga.); and United States ex rel. Milstein v. Family Dermatology, P.C., et al., Case No. 1:13-cv-1027 (N.D. Ga.), were handled by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Offices of the Northern District of Georgia and the Middle District of Florida, and HHS-OIG.
U.S. ex rel. Milstein was originally filed in the Middle District of Florida and subsequently transferred to the Northern District of Georgia. The claims settled by this agreement are allegations only, and there has been no determination of liability.
Family Dermatology Pc Agrees to Pay United States More Than $3.2 Million to Settle Alleged False Claims Act ViolationsRead the Press Release
Tampa, FL – Family Dermatology P.C. which owns and operates a dermatopathology laboratory in Georgia and a number of dermatology practices throughout the Eastern United States, has agreed to pay the United States $3,247,835 plus interest to settle allegations that it violated the False Claims Act by engaging in improper financial relationships with a number of its employed physicians, the Justice Department announced today.
“The Department of Justice has had longstanding concerns about improper financial relationships between health care providers and their referral sources, because such relationships can alter a physician's judgment about the patient's true health care needs and drive up health care costs for everybody,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer of the Department’s Civil Division. “In addition to yielding a recovery for taxpayers, this settlement should deter similar conduct in the future and help make health care more affordable.”
The settlement announced today resolved allegations that financial relationships that Family Dermatology and its affiliates had with a number of their employed physicians violated the Stark Statute and the False Claims Act. The Stark Statute restricts the financial relationships that health care providers may have with doctors who refer patients to them. Family Dermatology employs a number of dermatologists as independent contractors and it has routinely required them to use Family Dermatology’s in-house pathology lab, which operated under the name Nelson Dermatopathology, for their pathology services. The government alleged that Family Dermatology’s financial relationships with a number of these physicians did not comply with the requirements of the Stark Statute, and that Family Dermatology improperly billed Medicare for dermatopathology analyses performed by Nelson Dermatopathology on specimens that were sent to the laboratory by these employed physicians.
“The defendants financed the expansion of their business across the Eastern United States with improper financial arrangements that resulted in illegal referrals and, ultimately, inflated payments from Medicare,” said Acting U.S. Attorney John Horn of the Northern District of Georgia. “We expect providers to follow the law and will pursue those who do not.”
“Physician self-referrals that violate the Stark Statute undermine medical decision making, jeopardize patient care and cost the taxpayers money,” said U.S. Attorney A. Lee Bentley III of the Middle District of Florida. “Patients need to have confidence that the advice they receive from their physicians is based on sound medical practice, not illegal financial relationships between providers. We will continue to investigate and pursue these types of violations in our district.”
“This settlement not only demonstrates the need for oversight involving such matters under the False Claims Act, but also the FBI’s commitment toward enforcing this as well as other health care fraud based violations,” said Special Agent in Charge J. Britt Johnson of the FBI’s Atlanta Field Office.
“Health care companies that make sweetheart deals with physicians to boost profits undercut both the financial integrity of Medicare and the public’s trust in the medical profession,” said Special Agent in Charge Derrick L. Jackson of the Department of Health and Human Services’ Office of Inspector General (HHS-OIG). “Our agency will continue to hold those who engage in such improper financial schemes accountable.”
The allegations settled today arose from three separate lawsuits filed by three whistleblowers, Scott M. Ross MD, Mark F. Baucom and Harold Milstein MD under the qui tam provisions of the False Claims Act. Under the act, private citizens can bring suit on behalf of the government for false claims and share in any recovery. The whistleblowers will collectively receive more than $584,000 from the recovery announced today.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $24 billion through False Claims Act cases, with more than $15.3 billion of that amount recovered in cases involving fraud against federal health care programs.
The cases, United States ex rel. Ross v. Family Dermatology of Pennsylvania, P.C., et al., Case No. 1:11-cv-2413 (N.D. Ga.); United States ex rel. Baucom v. Family Dermatology of Pennsylvania, P.C., et al., Case No. 1:11-cv-4260 (N.D. Ga.); and United States ex rel. Milstein v. Family Dermatology, P.C., et al., Case No. 1:13-cv-1027 (N.D. Ga.), were handled by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Offices of the Northern District of Georgia and the Middle District of Florida, and HHS-OIG.
U.S. ex rel. Milstein was originally filed in the Middle District of Florida and subsequently transferred to the Northern District of Georgia. The claims settled by this agreement are allegations only, and there has been no determination of liability.
East Tennessee Moonshiners SentencedRead the Press Release
GREENEVILLE, Tenn. – Jack Mayfield, Jr., 49, of Newport, Tenn., and James Carrol Hickman, 41, of Dandridge, Tenn., have each been convicted and sentenced for aiding and abetting in the illegal production of distilled spirits by a person who was not an authorized distiller (illegal production of “moonshine”).
In October 2014, Mayfield pleaded guilty to the moonshining charge and two counts of possessing a machine gun. On April 2, 2015, he was sentenced to serve 33 months in federal prison, to be followed by three years of supervised release.
Hickman was convicted in December 2014 following a two-day jury trial. On Apr. 21, 2015, Hickman was sentenced to serve 33 months in federal prison, to be followed by three years of supervised release. There is no parole in the federal system.
According to evidence presented at Hickman’s trial and during Mayfield’s sentencing hearing, Mayfield owned and operated a large-scale illegal moonshine production operation in the Carson Springs area of Cocke County. The operation included over fifteen, 400-gallon moonshine stills housed in two separate buildings, and a separate proofing room where the moonshine was processed into a finished product and packaged for sale. Mayfield employed numerous people to work at the operation, including co-defendants Hickman and Michael Steve Reece. In his plea agreement, Mayfield admitted that he had produced illegal moonshine at the site from at least January 2003 until a search warrant was executed at the property in April 2013.
Reece, who was also charged in this case, pleaded guilty in November 7, 2013. His sentencing is scheduled for May 19, 2015.
This investigation was the result of the collaborative efforts of the Tennessee Bureau of Investigation, Tennessee Alcoholic Beverage Commission, Tennessee Highway Patrol, and Cocke County Sheriff’s Department. Assistant U.S. Attorneys Suzanne Kerney-Quillen and J. Christian Lampe represented the United States.
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East Grand Forks Construction Company Pays $1.85 Million to Resolve False Claims AllegationsRead the Press Release
United States Attorney Andrew M. Luger today announced that R.J. Zavoral & Sons, Inc., John Zavoral, Peter Zavoral and Craig Pietruszewski have agreed to pay $1.85 million to resolve allegations that they violated the False Claims Act and the Financial Institutions Reform, Recovery, and Enforcement Act by making false statements to the Small Business Administration (SBA) and the U.S. Army Corps of Engineers. The allegations related to the Heartsville Coulee Diversion construction contract for flood control work in and around East Grand Forks, Minnesota, mainly performed between 2004 and 2008.
“Congress created the SBA’s 8(a) program to give meaningful opportunities to deserving disadvantaged small businesses across the country,” said Assistant U.S. Attorney David W. Fuller. “We will continue to work with our agency partners to identify and pursue instances where companies attempt to take advantage of the 8(a) program and others like it.”
According to the allegations, the U.S. Army Corps of Engineers had set aside the contract for the Heartsville construction project for a qualified Section 8(a) business concern under the SBA’s Section 8(a) Business Development Program. For the purpose of qualifying for the contract award, R.J. Zavoral & Sons entered into a joint venture with a qualified Section 8(a) business. The United States alleged that the Defendants made numerous false statements to both the SBA and the Corps of Engineers in order to be awarded the Heartsville Coulee Diversion Section 8(a) contract, to retain the contract, and to claim and receive payments of federal monies made under the contract. The actions of Defendants resulted in harm to the Section 8(a) business concern and caused the United States to pay significant amounts of money to the Joint Venture with little or no benefit to the Section 8(a) Business Development Program.
“The purpose of the 8(a) Program is to promote the business development of eligible small business concerns owned and controlled by socially and economically disadvantaged individuals so that such concerns can compete on an equal basis in the American economy,” said Melvin F. Williams Jr., SBA’s General Counsel. “This settlement sends a clear message that the United States Attorney’s Office will aggressively pursue allegations of fraud against the SBA Section 8(a) Program, which is so vitally important to the nation’s economy and to the many disadvantaged small businesses that participate in the program. This settlement protects the integrity of this critical program.”
This case is the result of a cooperative investigation conducted by the Small Business Administration, the Department of Defense Office of the Inspector General, and the Defense Contract Audit Agency.
The underlying case is United States v. R.J. Zavoral & Sons, Inc.; John T. Zavoral; Peter M. Zavoral; and Craig A Pietruszewski, Civil No. 12-cv-00668 (MJD/LIB).District Man Pleads Guilty to Sexually Assaulting 17-Year-Old Victim in Broad Daylight Attack in Northeast WashingtonRead the Press Release
WASHINGTON - Gerald Canty, 24, of Washington, D.C., pled guilty today to sexually assaulting a 17-year-old woman in a mid-morning attack that took place in December 2013 in Northeast Washington, Acting U.S. Attorney Vincent H. Cohen, Jr. announced.
Canty pled guilty in the Superior Court of the District of Columbia to one count of attempted first-degree sexual abuse. The plea, which is contingent upon the Court’s approval, calls for a 10-year prison sentence to be served consecutively to a 21-year prison term Canty already is serving. The Honorable Lynn Leibovitz scheduled sentencing for June 19, 2015.
Canty earlier pled guilty in May 2014 to sexually assaulting an 18-year-old woman and attempting to kidnap three additional young women in a series of other incidents that took place between February and March of 2014, near the Minnesota Avenue Metro Station. In those matters, he pled guilty to one count of first-degree sexual abuse, one count of attempted kidnapping while armed, and two counts of attempted kidnapping. He was sentenced in July 2014 by the Honorable Jennifer Anderson to 21 years in prison, and lifetime sex offender registration. Following his prison term, Judge Anderson ordered that Canty be placed on supervised release for the rest of his life.
Today’s plea involved an attack that took place on Dec. 17, 2013. According to the government's evidence, at approximately 9:20 a.m. that day, the 17-year-old victim was walking alone in the 4600 block of Nannie Helen Burroughs Avenue NE. Canty approached her, brandished an object that she believed was a gun, and said, “Hey! Don’t move.” He demanded the victim’s property, reached his hand into her pocket and removed $3. Canty then told the victim to follow him, and walked her under a footbridge a short distance away. Under the footbridge, Canty demanded that the young woman perform a sexual act on him. She initially refused, but ultimately submitted to the defendant’s demand.
After the assault, the victim made an immediate report to the Metropolitan Police Department (MPD). Officers and detectives with MPD’s Sixth District, Youth Investigations Division, and Mobile Crime Division, responded immediately. The victim was taken to Washington Hospital Center, where she received a Sexual Assault Nurse Examination. DNA later linked Canty to the attack.
In announcing the plea, Acting U.S. Attorney Cohen commended the work of the Metropolitan Police Department, including officers and detectives from the Youth Division and the Sixth District, as well as mobile crime scene officers and technicians. He also expressed appreciation for the work of MPD’s Sexual Assault Unit, which investigated the crimes that led to Canty’s earlier plea. He acknowledged the work of the District of Columbia Department of Forensic Sciences. Finally, he praised the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Jason Manuel and Erica Vample; Victim/Witness Advocate Tracey Hawkins, and Assistant U.S. Attorney Amy H. Zubrensky, who investigated and prosecuted the case.
Corey Bruce Patrick Charged with Second Degree Murder Resulting from an Automobile Crash in the Great Smoky Mountains National ParkRead the Press Release
KNOXVILLE, Tenn. – On Apr. 21, 2015, Corey Bruce Patrick, 34, of Hurricane Mills, Tenn., pleaded guilty in U.S. District Court in Knoxville, to second degree murder resulting from an automobile crash involving alcohol and high-speed in the Great Smoky Mountains National Park. Patrick agreed to waive indictment and plead guilty to an information charging him with this offense.
The penalty for second degree murder is up to life in prison, a fine of up $250,000, a term of supervised release of up to five years, and a $100 special assessment. Patrick’s sentencing hearing is scheduled for 2:00 p.m., Thursday, Aug. 20, 2015, in U.S. District Court in Knoxville.
If the plea agreement is accepted by the court, Patrick and United States have agreed that he will be sentenced to serve 180 months in prison. The court will determine any fine amount, supervised release term, and restitution at the sentencing hearing.
According to facts contained in the plea agreement on file with U.S. District Court, in October 2014, Patrick drove the victim’s car at a high-rate of speed within the Great Smoky Mountain National Park, after drinking alcohol at the Ole Smoky Tennessee Moonshine distillery in Gatlinburg. In a text message sent from the victim’s cell phone at approximately 2:03 a.m., one-minute before the crash, the victim described Patrick’s driving as “hes driving fast and crazy.” At 2:04 a.m., witnesses to the crash called 911 and reported that Patrick hit a tree head-on. While attempting to remove him from the car, Patrick told rescue personnel that he had been drinking before the crash. The victim suffered multiple blunt force injuries from the crash which resulted in her death at the crash scene.
This investigation was handled by the National Park Service, Tennessee Highway Patrol, and Tennessee Bureau of Investigation. Assistant U.S. Attorney Brooklyn Sawyers represented the United States.
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Convicted Bank Robber, Drug Dealer and Two Others Sentenced to Prison for $1 Million Stolen Identity Tax Refund Fraud SchemeRead the Press Release
Four Portland, Oregon, residents were sentenced today in the U.S. District Court in Portland for a multi-year stolen identity tax refund scheme to defraud the United States of more than $1 million in tax refunds, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and Acting U.S. Attorney Billy J. Williams of the District of Oregon.
Jheraun Dunlap, Ernest Bagsby, Jermaine Moore and Brandi McCall were collectively sentenced to serve more than 14 years in prison by U.S. District Judge Robert E. Jones. Dunlap, 32, who was previously convicted of bank robbery, was sentenced to serve five years and five months in prison. Bagsby, 37, who was previously convicted of delivery of heroin in Clackamas County, Oregon, was sentenced to serve four years and three months in prison. Moore, 34, was sentenced to serve three years and nine months in prison, and McCall, 27, was sentenced to serve 12 months and one day in prison. All four defendants were ordered to pay restitution to the Internal Revenue Service (IRS) in the amount of $427,896.
According to the plea agreements and court documents, the scheme involved the filing of 208 false federal income tax returns that included fraudulent claims for tax refunds between $3,000 and $9,000 per return. Dunlap electronically filed the false tax returns using stolen identities or identities obtained by Bagsby and Moore. McCall opened stored-value debit cards in her own name to receive the refunds. The defendants directed the IRS to deposit the tax refunds onto stored-value debit cards and then the proceeds were shared among the participants in the scheme. In total, as part of the scheme, the defendants requested more than $1 million in tax refunds.
All four defendants were captured on ATM footage withdrawing cash from stored-value debit cards that held the tax refund proceeds. As part of the investigation, a search warrant was executed on the Facebook accounts of multiple co-conspirators, from which federal agents obtained photographs of stacks of cash, among other things. The United States seized and forfeited assets traced to proceeds of the scheme, including a two-carat diamond engagement ring, a Mercedes Benz 500 and a 1971 Pontiac Firebird, both of which were purchased with $20 bills.
Acting Assistant Attorney General Ciraolo and Acting U.S. Attorney Williams commended the special agents of IRS-Criminal Investigation, who investigated the case as part of the Stolen Identity Refund Fraud Task Force, and Trial Attorneys Leslie A. Goemaat and Lori A. Hendrickson of the Tax Division, who are prosecuting the case. Ciraolo also thanked the U.S. Attorney’s Office in the District of Oregon for their substantial assistance.
Convicted Bank Robber, Drug Dealer and Two Others Sentenced to Prison for $1 Million Stolen Identity Tax Refund Fraud SchemeRead the Press Release
PORTLAND, Ore. – Four Portland, Oregon, residents were sentenced today in the U.S. District Court in Portland for a multi-year stolen identity tax refund scheme to defraud the United States of more than $1 million in tax refunds, announced Acting U.S. Attorney Billy J. Williams, and Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division.
Jheraun Dunlap, Ernest Bagsby, Jermaine Moore and Brandi McCall were collectively sentenced to serve more than 14 years in prison by U.S. District Judge Robert E. Jones. Dunlap, 32, who was previously convicted of bank robbery, was sentenced to serve five years and five months in prison. Bagsby, 37, who was previously convicted of delivery of heroin in Clackamas County, Oregon, was sentenced to serve four years and three months in prison. Moore, 34, was sentenced to serve three years and nine months in prison, and McCall, 27, was sentenced to serve 12 months and one day in prison. All four defendants were ordered to pay restitution to the Internal Revenue Service (IRS) in the amount of $427,896.
According to the plea agreements and court documents, the scheme involved the filing of 208 false federal income tax returns that included fraudulent claims for tax refunds between $3,000 and $9,000 per return. Dunlap electronically filed the false tax returns using stolen identities or identities obtained by Bagsby and Moore. McCall opened stored-value debit cards in her own name to receive the refunds. The defendants directed the IRS to deposit the tax refunds onto stored-value debit cards and then the proceeds were shared among the participants in the scheme. In total, as part of the scheme, the defendants requested more than $1 million in tax refunds.
All four defendants were captured on ATM footage withdrawing cash from stored-value debit cards that held the tax refund proceeds. As part of the investigation, a search warrant was executed on the Facebook accounts of multiple co-conspirators, from which federal agents obtained photographs of stacks of cash, among other things. The United States seized and forfeited assets traced to proceeds of the scheme, including a two-carat diamond engagement ring, a Mercedes Benz 500 and a 1971 Pontiac Firebird, both of which were purchased with $20 bills.
Acting U.S. Attorney Williams and Acting Assistant Attorney General Ciraolo commended the special agents of IRS-Criminal Investigation, who investigated the case as part of the Stolen Identity Refund Fraud Task Force, and Trial Attorneys Leslie A. Goemaat and Lori A. Hendrickson of the Tax Division, who are prosecuting the case.
Photo seized from Bagsby’s Facebook account with caption: “So I was unable to rubber band up do to the fact that it just keeps pouring in . . . .”
Mercedes Benz 500 purchased with $20 bills and seized from Bagsby.
Pontiac Firebird purchased with $20 bills and seized from Dunlap.
Colfax County Man Sentenced to Prison for Violating Federal Firearms LawsRead the Press Release
ALBUQUERQUE – Tommy Acevedo, 37, of Raton, N.M., was sentenced this morning in federal court in Santa Fe, N.M., to 55 months in federal prison followed by three years of supervised release for being a felon in possession of a firearm and ammunition.
The sentence was announced by U.S. Attorney Damon P. Martinez, 8th Judicial District Attorney Donald A. Gallegos, Special Agent in Charge Thomas G. Atteberry of the Phoenix Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives, and Chief John Garcia of the Raton Police Department.
Acevedo was arrested on Dec. 17, 2013, on an indictment charging him with violating the federal firearms laws by unlawfully possessing a firearm and ammunition and unlawfully possessing an unregistered short-barreled shotgun in Colfax County, N.M., on June 19, 2013. At the time, Acevedo was prohibited from possessing firearms or ammunition because he previously had been convicted of two counts of forgery in the 8th Judicial District Court for the State of New Mexico and of robbery in the 5th Judicial District Court for the State of New Mexico.
On Aug. 13, 2014, pled guilty to Count 1 of the indictment and admitted possessing a 20 gauge sawed-off shotgun with obliterated serial number and eight rounds of ammunition on June 29, 2013, in Raton. Acevedo also admitted that he was prohibited from possessing firearms or ammunition because of his status as a convicted felon.
This case was investigated by the Albuquerque office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Raton Police Department, with assistance from the 8th Judicial District Attorney’s Office. Assistant U.S. Attorney Louis E. Valencia prosecuted the case.
This case was prosecuted as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
Cleveland man sentenced to 17 1/2 years in prison for firearms traffickingRead the Press Release
A Cleveland man was sentenced to 17 1/2 years in prison for firearms trafficking, said U.S. Attorney Steven M. Dettelbach and Donald Soranno, Special Agent in Charge of ATF’s Columbus Field Division.
Moises Perez, 45, previously pleaded guilty to one count of being a felon in possession of firearms. U.S. District Judge Patricia A. Gaughan determined Perez should be classified as an armed career criminal and sentenced him to 210 months in federal prison.
Perez sold a Ruger 9 mm pistol, an H&R .22-caliber revolver and 94 rounds of ammunition to an undercover agent in August 2014. Perez was forbidden from possessing firearm or ammunition because of nearly two-dozen convictions, including felony convictions for burglary, attempted felonious assault, unlawful sexual conduct with a minor, attempted felonious assault with a firearm, attempted intimidation, drug trafficking, robbery and being a felon in possession of a firearm, according to court documents.
“Cleveland is a safer city because this defendant is off the street,” Dettelbach said. “He has a history of violent crime going back 30 years. This operation is the result of tremendous work by the ATF, Cleveland police and all our law-enforcement partners.”
“This case represents one more step to create a ripple effect to stifle violent crime,” Soranno said. “Individuals who are illegally possessing firearms and specifically engaging in illegally trafficking firearms are at the epicenter of violence in our communities. By attacking the tools of the trade and removing illegal firearms from the streets, we all help make our streets safer for everyone.”
This case was prosecuted by Assistant U.S. Attorneys Brian M. McDonough and Kelly L. Galvin. It was part of “Operation Samson II,” an enhanced-enforcement initiative targeting the criminal possession, use and sale of firearms in Greater Cleveland. The operation resulted in 60 people being indicted and 110 firearms seized.
This initiative was a cooperative effort between the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Cleveland Division of Police, the Ohio Adult Parole Authority, the U.S. Marshals Service, the U.S. Attorney’s Office and the Cuyahoga County Prosecutor’s Office.
Cleveland man indicted for cashing $175,000 worth of dead mother's Social Security checksRead the Press Release
A federal grand jury indicted Marion Sobkowiak, 66, of Cleveland, for theft of government funds, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio.
The indictment alleges that Sobkowiak fraudulently cashed his deceased mother’s Social Security widow’s benefits checks from January 1998 until April 2014, taking a total of $175,477 in benefits to which he was not entitled.
The Social Security Administration Office of Inspector General conducted the investigation. The case is being prosecuted by Assistant United States Attorney Miranda E. Dugi and Special Assistant United States Attorney Lisa J. Sanniti.
If convicted, the court will determine the defendant’s sentence after a review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum. In most cases, it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
Cleveland man charged with robbing Public Square bankRead the Press Release
A grand jury returned a one-count indictment charging Richard Gruly, 67, of Cleveland, with one count of bank robbery, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio.
The indictment alleges that Gruly robbed the US Bank, 200 Public Square, in Cleveland, a federally insured financial institution, on May 15, 2013.
If convicted, the sentence in this case will be determined by the court after consideration of the federal sentencing guidelines which depend upon a number of factors unique to each case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the unique characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The case is being prosecuted by Assistant U.S. Attorney Brian M. McDonough following an investigation by the Federal Bureau of Investigation's Cleveland Division.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
Cleveland man charged with bank fraudRead the Press Release
A federal grand jury returned a nine-count indictment charging Kenneth L. Jefferson, 60, of Cleveland, with unlawful possession of a postal key and eight counts of bank fraud, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio.
The indictment alleges Jefferson defrauded Key Bank, Charter One Bank and U.S. Bank through misrepresentations relating to numerous checks.
If convicted, the defendant’s sentence will be determined by the court after consideration of the federal sentencing guidelines that includes a review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
Assistant United States Attorney Matthew J. Cronin is prosecuting the case following an investigation by the United States Postal Inspection Service.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial where it is the government's burden to prove guilt beyond a reasonable doubt.
Clearwater Man Pleads Guilty to Theft of Government FundsRead the Press Release
Tampa, FL – United States Attorney A. Lee Bentley, III announces that Elliot Kahana (68, Clearwater) has pleaded guilty to theft of government funds. He faces a maximum penalty of 10 years in federal prison. A sentencing date has not yet been set.
According to court documents, Kahana’s mother, Anne Kahana, was a recipient of Veterans Administration (VA) benefits. She died on April 28, 2009, and all rights to benefits ceased upon her death. The VA did not receive notice of her death and, until January 2011, monthly benefit payments of $1,400 continued to be directly deposited into a bank account that she had shared with her son. The total amount paid out after the death was approximately $29,400.
This case was investigated by the Veterans Administration, with assistance from the U.S. Secret Service. It is being prosecuted by Assistant United States Attorney Amanda Kaiser.
Claremore Woman Pleads Guilty to Embezzlement and Theft from Indian Tribal OrganizationRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that LANA CAROLE KELLEY, age 38, of Claremore, Oklahoma, pled guilty to EMBEZZLEMENT AND THEFT FROM INDIAN TRIBAL ORGANIZATION, in violation of Title 18, United States Code, Section 1163.
Charges arose from an investigation by the Choctaw Nation Tribal Police and the Federal Bureau of Investigation. The defendant was indicted in March, 2015.
The Indictment alleged that between on or about March 10, 2010 and on or about May 21, 2012, in the Eastern District of Oklahoma, the defendant, LANA CAROLE KELLEY, did embezzle, steal, knowingly and willfully convert to her own use or the use of another and willfully misapply in excess of $1,000.00 of moneys, funds and credits which was then intrusted to the custody and care of an employee of Choctaw Nation Healthcare, an Indian tribal organization.
The Honorable Steven P. Shreder, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the guilty plea and ordered a presentence report to be completed.
Assistant United States Attorney Dean Burris represented the United States.
Charleston man pleads guilty to federal heroin chargeRead the Press Release
Charleston, W.Va. – United States Attorney Booth Goodwin announced today that Joshua Matthews, age 32, of Charleston, plead guilty today in federal court to distribution of heroin. Matthews admitted that on August 19, 2014, he sold heroin to a confidential informant working with the Charleston Police Department’s Special Enforcement Unit in exchange for $105.00. The drug deal took place on Capitol Street in downtown Charleston. Matthews faces up to 20 years imprisonment and a $1,000,000.00 fine when he is sentenced on July 29, 2015.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of heroin and prescription drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal heroin and pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
The case was investigated by the Charleston Police Department’s Special Enforcement Unit. The prosecution is being handled by Assistant United States Attorney John Frail.
Calvert County Man Admits to Selling Heroin That Resulted in DeathRead the Press Release
Greenbelt, Maryland - Russell Edward Johnson, age 23, of Lusby, Maryland, pleaded guilty today to distributing heroin to a person who died as a result of ingesting the heroin.
The plea agreement was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; Calvert County Sheriff Mike Evans; and Calvert County State’s Attorney Laura Martin.
According to his plea agreement, on July 18, 2013 in St. Leonard, Maryland, Johnson sold heroin to an individual who ingested the heroin. A few hours later, Johnson again sold heroin to the individual. The individual ingested the additional heroin, and died shortly thereafter. The victim’s cause of death was determined to be heroin intoxication.
Johnson and the government have agreed that if the Court accepts the plea agreement, Johnson will be sentenced to between 10 and 12 years in prison. U.S. District Judge Paul W. Grimm has scheduled sentencing for June 18, 2015, at 1:00 p.m.
United States Attorney Rod J. Rosenstein praised the DEA, Calvert County Sheriff’s Office, and Assistant State’s Attorney Lisa Ridge of the Calvert County State’s Attorney’s Office, for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Arun G. Rao and Daniel C. Gardner, who are prosecuting the case.
Broward Resident Pleads Guilty to Using Counterfeit Money in Broward and Palm Beach CountiesRead the Press Release
A Broward County resident used counterfeit currency to unlawfully purchase items and gamble in Broward and Palm Beach Counties.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, Paula A. Reid, Special Agent in Charge, U.S. Secret Service (USSS), Miami Field Office, William R. Latchford, Chief of Police, Seminole Police Department, and Stephen J. Stepp, Chief, Palm Beach Gardens Police Department, made the announcement.
Bernardo Lecaros, 35, of Pompano Beach, pled guilty to possessing and passing counterfeit currency and conspiracy to possess and pass counterfeit currency.
According to court documents, Lecaros used counterfeit money to pay for items he purchased and to gamble. On December 10, 2014 and again on December 14, 2014, Lecaros unlawfully used $5,400 in counterfeit currency in order to gamble at the Seminole Classic Casino in Hollywood, Florida. During the course of the investigation, Lecaros was also found to have possessed an additional $37,800 in counterfeit currency.
On March 3, 2015, Lecaros used $300 in counterfeit currency to make additional unlawful purchases at a luxury department store located inside the Palm Beach Gardens Mall in Palm Beach Gardens, Florida. Lecaros was also found to be in possession of an additional $31,500 in counterfeit currency.
Lecaros is scheduled to be sentenced on June 29, 2015 at 9:00 a.m., by U.S. District Judge Robin Rosenberg, in West Palm Beach.
At sentencing, Lecaros faces up to twenty years in prison for each count of possessing and passing counterfeit currency, and up to five years in prison for the conspiracy to possess and pass counterfeit currency charge.
Mr. Ferrer commended the investigative efforts of the USSS, the Seminole Police Department and the Palm Beach Gardens Police Department. The case is being prosecuted by Assistant U.S. Attorney’s Randy Katz and Lauren Jorgensen.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov
Bowling Green, Armed Career Criminal Pleads Guilty to Conspiracy to Possess and Distribute Marijuana and Cocaine, and Possession of A Firearm by A Convicted FelonRead the Press Release
BOWLING GREEN, Ky. – A Bowling Green armed career criminal pleaded guilty to several charges today in U.S. District Court, including conspiracy to possess and distribute marijuana, cocaine and cocaine base, possession of a firearm by a convicted felon, and maintaining a residence for the purpose of distributing controlled substances, announced Acting United States Attorney John E. Kuhn, Jr.
Antwain Santez Sweatt pleaded guilty before U.S. District Court Judge Greg N. Stivers this morning to five charges in a seven count superseding indictment from December 10, 2014. According to the plea agreement, between June and July 2014, in Warren County, Kentucky, Sweatt knowingly conspired with others to possess with intent to distribute and distribute marijuana, cocaine and cocaine base. Further, Sweatt admitted to renting 834 Victoria Street, in Bowling Green, for the purpose of distributing or using controlled substances. Finally, Sweatt admitted to knowingly possessing a Jiminez Arms, 9 millimeter pistol and ammunition, after having been convicted of a crime punishable by imprisonment for more than one year.
On March 10, 1997 Sweatt was sentenced to 7 years in prison for trafficking in a controlled substance and possession of a controlled substance. On February 3, 2003, Sweatt was sentenced to 10 years in prison for trafficking in a controlled substance and 15 years in prison for disarming a police officer and resisting arrest.
Sweatt faces a combined minimum term of 15 years in prison, a combined maximum term of life imprisonment, a combined maximum fine of $3,750,000, and supervised release of at least three years and up to any number of years, including life, which the Court may specify. Sweatt is scheduled for sentencing before Judge Stivers on July 14, 2105, in Bowling Green.
This case is being prosecuted by Assistant United States Attorney Jo E. Lawless and is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) the Bowling Green Police Department, and the Bowling Green/Warren County Drug Task Force.
Bonners Ferry Man Pleads Guilty to Violent ATM Theft in McCallRead the Press Release
BOISE — Matthew Taber Annable, 40, formerly of Bonners Ferry, Idaho, pleaded guilty today to bank larceny by use of a dangerous weapon and conspiracy to commit bank larceny, U.S. Attorney Wendy J. Olson announced. Sentencing is set for June 10, 2015, before U.S. District Judge Edward J. Lodge.
According to court documents, on January 10, 2014, Annable and his co-defendant Nathan Paul Davenport, aiding and abetting each other, broke into and stole cash from an automated teller machine (ATM) located at the Idaho First Bank in McCall, Idaho. The indictment alleges that Davenport possessed, carried, used, and discharged a firearm, specifically a Ruger semiautomatic rifle, in connection with the offense. Davenport admitted that he used the rifle to shoot at pursuing McCall police officers. Annable was aware that Davenport shot at pursuing officers because Davenport and Annable communicated over an open cell phone connection during the larceny. During Davenport’s heist from the ATM, Annable drove about nearby waiting to pick up Davenport in an escape vehicle. As part of the conspiracy, the indictment charged both men with other ATM larcenies committed against Idaho Banking Company in Boise and Meridian on January 5, 2014, and a string of ATM larcenies in December, 2013 and January, 2014, which occurred in Wyoming, Colorado, Utah, as well as in Idaho.
Davenport pleaded guilty on March 30, 2015, to bank larceny by use of a dangerous weapon, use of a deadly weapon in the commission of a felony crime, and conspiracy to commit bank larceny. He will be sentenced on June 22, 2015.
Annable and Davenport were arrested without incident on January 12, 2014, in Orem, Utah, in connection with a separate ATM robbery in Wyoming. The two men were in custody on the Wyoming charges prior to being transported to Boise on the Idaho charges. In the District of Wyoming, both men pleaded guilty to single counts of ATM theft and aiding and abetting and each received a fourteen month prison sentence.
The charge of bank larceny by use of a dangerous weapon as charged in the Idaho indictment is punishable by up to 25 years in prison, a maximum fine of $250,000, and up to five years of supervised release. The charge of conspiracy to commit bank larceny is punishable by up to five years in prison, a maximum fine of $250,000, and up to three years supervised release.
The case was investigated by the Federal Bureau of Investigation, the Idaho State Police, the Valley County Sheriff’s Office, and the McCall Police Department.
Boise Man Sentenced to Five Years in Prison for Weapons ChargeRead the Press Release
BOISE – Anton Philip Raider, 23, of Boise, Idaho, was sentenced today to five years in prisons followed by five years of supervised release for possession of firearms in furtherance of a drug trafficking crime, U.S. Attorney Wendy J. Olson announced. United States District Judge Edward J. Lodge also ordered Raider to forfeit four firearms, and ordered that his federal sentence run concurrently to his state sentencing for aiding and abetting second degree murder.
According to court proceedings, a search warrant was served at the defendant’s residence located on West Red Maple Drive, Boise, Idaho. The warrant was issued in state court as part of an investigation into a double homicide that occurred the night before. The defendant was found to be in possession of approximately three pounds of marijuana, which was located in a safe in the defendant’s bedroom closet. Raider admitted to knowingly and intentionally possessing the marijuana with the intent to distribute it to others. Also found in the defendant’s closet were four firearms and miscellaneous rounds of ammunition. Raider admitted that he knowingly possessed the firearms in furtherance of his drug trafficking crime.
The case was investigated by the Boise Police Department and the Drug Enforcement Administration.
Attorney General Statement on Retirement of Michele LeonhartRead the Press Release
Attorney General Eric Holder released the following statement on the retirement of Drug Enforcement Administration Administrator Michele Leonhart:
“Michele Leonhart, the Administrator of the Drug Enforcement Administration, informed me today of her decision to retire. She will depart the agency in mid-May.
“I want to express my appreciation to Michele, not only for her leadership of the DEA since 2007, but also for her 35 years of extraordinary service to the DEA, to the Department of Justice and to the American people. As a Baltimore City Police Officer shortly after her college graduation, she stood on the front lines of our nation’s fight against crime. As a career DEA Special Agent, she initiated and contributed to law enforcement actions from major drug investigations to international conspiracy cases. And as the first woman ever to reach the rank of Special Agent in Charge, she was a trailblazer for equality and an inspiration to countless others. She has devoted her life and her professional career to the defense of our nation and the protection of our citizens, and for that, I am deeply grateful.
“The agents and employees of the DEA are some of the finest law enforcement officers in the world. They are committed to upholding American rights and liberties, dedicated to the rule of law, and devoted to the cause of justice. Every day, these remarkable men and women put their lives on the line – in communities across the United States and around the world – to safeguard our way of life. And they do so at a time of increasingly complex challenges and constantly evolving threats.
“Michele has led this distinguished agency with honor, and I have been proud to call her my partner in the work of safeguarding our national security and protecting our citizens from crime, exploitation and abuse. Over the past decade, under her leadership, there have been innumerable instances of the DEA dismantling the most violent and most significant drug trafficking organizations and holding accountable the largest drug kingpins around the world. Going forward, I have no doubt that the women and men of the DEA will continue to perform their duties with the utmost integrity, professionalism and skill – and I wish my good friend Michele all the best as she embarks on this next chapter in what is a remarkable life.”
Atlanta Man Sentenced to More Than 8 Years in Prison for Role in Counterfeit Check ConspiracyRead the Press Release
RICHMOND, Va. – Damion Latoras Foster, 34, of Atlanta, Georgia, was sentenced today to 97 months in prison, followed by 5 years of supervised release, on charges of conspiring to commit bank fraud and aggravated identity theft. He was also ordered to pay restitution in the amount $37,308.95.
Foster pleaded guilty on January 7, 2015. According to court documents and evidence presented at the trial of co-defendant Rasheeda McConnell, Foster was part of a group that stole business checks from commercial mailboxes and used them to make counterfeit checks. The group then recruited people to cash the checks from areas where homeless or unemployed persons would congregate. The check-cashers received a small sum of cash for cashing counterfeit checks made payable to them. The remaining proceeds went to the recruiters. Foster was responsible for printing the counterfeit checks that were cashed by the check-cashers. Foster’s fingerprints were found on a laptop computer, stolen checks, and other items shipped from a Richmond FedEx store on February 6, 2014, the date co-defendants Brandon Jermaine Johnson and Devante Carson were arrested. Forensic analysis of the laptop computer revealed digital images of counterfeit checks created using stolen business checks as exemplars. Foster’s fingerprints were also found on counterfeit checks passed in Kansas City, Missouri and Sioux Falls, South Dakota. He was arrested at a hotel in Jacksonville, Florida, on September 16, 2014, and found in possession of a computer, scanner, printer, check stock, and business checks apparently stolen from the U.S. Mail.
Five other co-defendants in this case pleaded guilty and have been sentenced to prison terms as follows: Jeffrey Keith Barnes, II, 7 ½ months; Devante Carson, 33 months; Christopher Eugene Pope, 15 months; Kevin Lavon Smith, 9 months; Brandon Jermaine Johnson, 96 months. Another co-defendant, Rasheeda McConnell, was convicted by a jury and sentenced to serve 60 months.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Mark R. Herring, Attorney General of Virginia; David M. McGinnis, Acting Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service; and Douglas F. Mease, Special Agent in Charge of the United States Secret Service’s Richmond Field Office, made the announcement after the sentencing by U.S. District Judge John A. Gibney.
This case was part of Operation Homeless, a nationwide initiative being conducted by the U.S. Postal Inspection Service and U.S. Attorney’s Offices to aggressively prosecute groups who recruit the homeless and indigent to cash counterfeit checks. It was investigated by the United States Postal Inspection Service, United States Secret Service, Chesterfield County Police Department, and Henrico County Police Department as members of the Metro-Richmond Identity Theft Task Force. Prosecutions for the Task Force are handled by the U.S. Attorney’s Office and the Office of the Attorney General for the Commonwealth of Virginia. Virginia Assistant Attorney General and Special Assistant U.S. Attorney Charles A. Quagliato and Assistant U.S. Attorney Michael C. Moore are prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:14-cr-28.
Akron woman charged with making false statements to get disability paymentsRead the Press Release
Allison A. Thompson, 49, of Akron, Ohio, was indicted today by a federal grand jury for making false statements to obtain federal disability benefits, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio.
The indictment alleges that the defendant submitted false statements in connection with the application for and receipt of compensation, benefit, and payment under the Federal Employees’ Compensation Act in 2012 and 2013.
The United States Postal Service Office of the Inspector General conducted the investigation. The case is being prosecuted by Assistant United States Attorney Miranda E. Dugi.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s applicable U.S. Sentencing Guidelines range, prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial, in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Akron man faces several charges related to child pornographyRead the Press Release
David T. Beiter, 54, of Akron, was charged with receiving, distributing and possessing visual depictions of minors engaged in sexually explicit conduct, transferring obscene material to a juvenile and enticement, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio.
The Indictment charges that from on or about February 9, 2015 through on or about March 19, 2015, Beiter knowingly used a device connected to the Internet, to attempt to persuade, induce, entice and coerce a 12-year-old girl to engage in illegal sexual activity with him. The indictment also charges that on or about February 9, 2015, Beiter used a facility and means of interstate commerce, that is, a device connected to the Internet, to knowingly attempt transfer obscene matter, that is, a visual depiction purportedly of his ejaculating penis, to an individual who he knew had not attained the age of 16 years, that is, 12-year‑old girl. The indictment also charges that from on or about February 1, 2014, through on or about March 20, 2015, Beiter knowingly received and distributed in interstate and foreign commerce, by computer, numerous computer files, which files contained visual depictions of real minors engaged in sexually explicit conduct. Lastly, the indictment charges that on March 20, 2015, Beiter possessed a computer that contained child pornography.
If convicted, the sentence in this case will be determined by the court after consideration of the federal sentencing guidelines which depend upon a number of factors unique to each case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the unique characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant United States Attorney Michael A. Sullivan. The case was investigated by the Akron, Ohio and Richmond, Virginia Offices of the Federal Bureau of Investigation, and the Middlesex County (Virginia) Sheriff’s Office.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
20 April 2015
U.S. Attorney Appoints New Community Outreach SpecialistRead the Press Release
Memphis, TN – U.S. Attorney Edward L. Stanton III has appointed Louis Goggans as the Community Outreach Specialist and Public Information Officer for the U.S. Attorney’s Office, Western District of Tennessee.
Prior to joining the U.S. Attorney’s Office, Goggans was an award-winning reporter for an alternative weekly newspaper, The Memphis Flyer. While at the publication, he covered an array of topics including crime, health, education, nonprofit agencies, paternity fraud, poverty, and music.
Goggans won awards in the investigative reporting category at the 64th Annual Green Eyeshade Awards (the nation's oldest regional journalism contest) for his feature articles on the unsolved murder of former NBA star Lorenzen Wright and human trafficking in the Mid-South.
Goggans is a native of Chattanooga, TN, and graduate of the University of Memphis (U of M). He received a Bachelor of Arts in Journalism. While enrolled, he wrote for the university’s student newspaper, The Daily Helmsman. He is also the former president of the U of M’s Association for Black Journalists.
In making the appointment, U.S. Attorney Stanton said: "We are very pleased to have Louis join the U.S. Attorney's Office. He is a highly talented and well-respected journalist who has a distinguished record of community engagement through innovative media outreach efforts."
Three Additional Defendants Plead Guilty in Connection with Sex Trafficking SchemeRead the Press Release
Sex Trafficking Scheme Used Threats, Violence and Coercion to Compel Women into Prostitution in New Orleans and Elsewhere
Today, three additional defendants pleaded guilty in connection with a sex trafficking scheme operated out of the Riviera Motel in New Orleans, Louisiana, which compelled multiple women to engage in prostitution in New Orleans and elsewhere, announced Principal Deputy Assistant Attorney General Vanita Gupta of the Justice Department’s Civil Rights Division and U.S. Attorney Kenneth Allen Polite Jr. of the Eastern District of Louisiana.
Defendants Duane Phillips, 29, and Christopher Williams, 30, both of whom are residents of Memphis, Tennessee, each pleaded guilty today to conspiring to commit sex trafficking of adult victims by force, fraud and coercion in New Orleans and elsewhere. Defendant Anthony Ellis, 26, also of Memphis, pleaded guilty to one count of conspiring to commit sex trafficking of adult victims and one count of transportation for purposes of prostitution.
“The Department of Justice will not tolerate trafficking in human beings, and will continue to relentlessly pursue justice on behalf of vulnerable members of our society, whether they are migrants from beyond our borders or whether they are young women from our own communities,” said Principal Deputy Assistant Attorney General Gupta. “We will continue in our steadfast determination to hold accountable those who use force and coercion to exploit other human beings.”
“These defendants recruited vulnerable victims from the New Orleans community and brought other victims to New Orleans to engage in commercial sex trafficking,” said U.S. Attorney Polite. “These crimes often pass without detection because victims live in fear from physical abuse, threats and other forms of coercion. My office is committed to prosecuting individuals who manipulate victims into committing commercial sex acts and profit from this illegal conduct.”
“This investigation and prosecution should serve as a clear reminder to all those individuals engaged in the heinous crime of sex trafficking that the full force of federal law enforcement, across geographical boundaries, will bring them to swift justice,” said Special Agent in Charge Michael Anderson of the FBI’s New Orleans Division.
“Human trafficking is a form of modern-day slavery that Homeland Security Investigations fights as one of its highest priorities via a coordinated global effort with the FBI and our state and local law enforcement partners,” said Acting Special Agent in Charge Cindy M. Johnson of Homeland Security Investigations’ (HSI) New Orleans Field Office. “The results speak for themselves; over the past two years HSI has doubled its number of human trafficking arrests. HSI will continue to investigate and seek prosecution of these criminals while also ensuring the victims of this terrible crime are rescued and get the care they need.”
Two defendants have previously pleaded guilty in connection with the case. On June 25, 2014, defendant Zacchaeus Taylor pleaded guilty to sex trafficking conspiracy and to Transportation for Purposes of Prostitution. On March 4, 2015, Laquentin Brown pleaded guilty to the same charges. Each face a maximum of five years on the conspiracy count and a maximum of 10 years on the transportation for prostitution count.
On Oct. 3, 2014, a grand jury in the Eastern District of Louisiana returned a Second Superseding Indictment charging defendants Phillips, Williams and Ellis, along with additional defendants Granville Robinson and Laquentin Brown, with sex trafficking conspiracy and varying counts of sex trafficking and transportation for prostitution. The Second Superseding Indictment also charged defendant Kanubhai Patel, who was the former owner of the Riviera Motel, with benefitting financially from the sex trafficking conspiracy. Defendant Taylor was charged separately on March 28, 2014. Of the seven defendants charged in connection with the sex trafficking scheme, five have entered guilty pleas. An indictment is merely an accusation and defendants are innocent until proven guilty beyond a reasonable doubt.
During their respective plea hearings and in their respective court filings, defendants Phillips, Williams and Ellis admitted that they, along with co-defendants Robinson and Brown, all of whom are from Memphis, conspired to recruit, groom, force, compel and coerce adult women to engage in prostitution, enforcing rules and means of control that included requiring the women to earn a certain amount of money each day, requiring them to turn over the proceeds and prohibiting them from speaking to or looking at other pimps. Williams admitted intentionally trying to impregnate women to make it harder for them to leave him, while some of the other defendants took the victims’ identification cards and documents. To enforce the rules, Phillips, Williams and Ellis each admitted that they and their co-conspirators used a variety of punishments, including withholding food, forcing the victims to engage in additional commercial sex acts, as well as physical assaults. Williams noted that he attempted to avoid visible bruising so that the victims would not draw the attention of the police or scare off prospective customers. Phillips, Williams and Ellis each admitted that they and their co-conspirators consulted one another on means of furthering their pimping activities, and would monitor each other’s victims when a co-conspirator was incarcerated. Phillips, Williams, Ellis and the other co-conspirators frequently stayed at the Riviera Motel because they knew that the hotel staff would not stop them from pimping women.
At sentencing, defendant Ellis faces a maximum sentence of 10 years on the transportation for prostitution charge and a maximum sentence of five years on the conspiracy charge. Defendants Phillips and Williams each face a maximum sentence of life imprisonment for the sex trafficking conspiracy.
This case was investigated jointly by agents from the New Orleans Field Offices of the Federal Bureau of Investigation (FBI) and Department of Homeland Security (DHS), with assistance from the FBI’s Memphis Field Office. This case is being prosecuted by Special Litigation Counsel John Cotton Richmond and Trial Attorney Christine M. Siscaretti of the Civil Right Division’s Human Trafficking Prosecution Unit, and Assistant U.S. Attorney Julia K. Evans of the Eastern District of Louisiana.
Three Additional Defendants Plead Guilty in Connection with Sex Trafficking SchemeRead the Press Release
WASHINGTON – Today, three additional defendants pleaded guilty in connection with a sex trafficking scheme operated out of the Riviera Motel in New Orleans, Louisiana, which compelled multiple women to engage in prostitution in New Orleans and elsewhere, announced Principal Deputy Assistant Attorney General Vanita Gupta of the Justice Department’s Civil Rights Division and U.S. Attorney Kenneth Allen Polite Jr. of the Eastern District of Louisiana.
Defendants Duane Phillips, 29, and Christopher Williams, 30, both of whom are residents of Memphis, Tennessee, each pleaded guilty today to conspiring to commit sex trafficking of adult victims by force, fraud and coercion in New Orleans and elsewhere. Defendant Anthony Ellis, 26, also of Memphis, pleaded guilty to one count of conspiring to commit sex trafficking of adult victims and one count of transportation for purposes of prostitution.
“The Department of Justice will not tolerate trafficking in human beings, and will continue to relentlessly pursue justice on behalf of vulnerable members of our society, whether they are migrants from beyond our borders or whether they are young women from our own communities,” said Principal Deputy Assistant Attorney General Gupta. “We will continue in our steadfast determination to hold accountable those who use force and coercion to exploit other human beings.”
“These defendants recruited vulnerable victims from the New Orleans community and brought other victims to New Orleans to engage in commercial sex trafficking,” said U.S. Attorney Polite. “These crimes often pass without detection because victims live in fear from physical abuse, threats and other forms of coercion. My office is committed to prosecuting individuals who manipulate victims into committing commercial sex acts and profit from this illegal conduct.”
“This investigation and prosecution should serve as a clear reminder to all those individuals engaged in the heinous crime of sex trafficking that the full force of federal law enforcement, across geographical boundaries, will bring them to swift justice,” said Special Agent in Charge Michael Anderson of the FBI’s New Orleans Division.
“Human trafficking is a form of modern-day slavery that Homeland Security Investigations fights as one of its highest priorities via a coordinated global effort with the FBI and our state and local law enforcement partners,” said Acting Special Agent in Charge Cindy M. Johnson of Homeland Security Investigations’ (HSI) New Orleans Field Office. “The results speak for themselves; over the past two years HSI has doubled its number of human trafficking arrests. HSI will continue to investigate and seek prosecution of these criminals while also ensuring the victims of this terrible crime are rescued and get the care they need.”
Two defendants have previously pleaded guilty in connection with the case. On June 25, 2014, defendant Zacchaeus Taylor pleaded guilty to sex trafficking conspiracy and to Transportation for Purposes of Prostitution. On March 4, 2015, Laquentin Brown pleaded guilty to the same charges. Each face a maximum of five years on the conspiracy count and a maximum of 10 years on the transportation for prostitution count.
On Oct. 3, 2014, a grand jury in the Eastern District of Louisiana returned a Second Superseding Indictment charging defendants Phillips, Williams and Ellis, along with additional defendants Granville Robinson and Laquentin Brown, with sex trafficking conspiracy and varying counts of sex trafficking and transportation for prostitution. The Second Superseding Indictment also charged defendant Kanubhai Patel, who was the former owner of the Riviera Motel, with benefitting financially from the sex trafficking conspiracy. Defendant Taylor was charged separately on March 28, 2014. Of the seven defendants charged in connection with the sex trafficking scheme, five have entered guilty pleas. An indictment is merely an accusation and defendants are innocent until proven guilty beyond a reasonable doubt.
During their respective plea hearings and in their respective court filings, defendants Phillips, Williams and Ellis admitted that they, along with co-defendants Robinson and Brown, all of whom are from Memphis, conspired to recruit, groom, force, compel and coerce adult women to engage in prostitution, enforcing rules and means of control that included requiring the women to earn a certain amount of money each day, requiring them to turn over the proceeds and prohibiting them from speaking to or looking at other pimps. Williams admitted intentionally trying to impregnate women to make it harder for them to leave him, while some of the other defendants took the victims’ identification cards and documents. To enforce the rules, Phillips, Williams and Ellis each admitted that they and their co-conspirators used a variety of punishments, including withholding food, forcing the victims to engage in additional commercial sex acts, as well as physical assaults. Williams noted that he attempted to avoid visible bruising so that the victims would not draw the attention of the police or scare off prospective customers. Phillips, Williams and Ellis each admitted that they and their co-conspirators consulted one another on means of furthering their pimping activities, and would monitor each other’s victims when a co-conspirator was incarcerated. Phillips, Williams, Ellis and the other co-conspirators frequently stayed at the Riviera Motel because they knew that the hotel staff would not stop them from pimping women.
At sentencing, defendant Ellis faces a maximum sentence of 10 years on the transportation for prostitution charge and a maximum sentence of five years on the conspiracy charge. Defendants Phillips and Williams each face a maximum sentence of life imprisonment for the sex trafficking conspiracy.
This case was investigated jointly by agents from the New Orleans Field Offices of the Federal Bureau of Investigation (FBI) and Department of Homeland Security (DHS), with assistance from the FBI’s Memphis Field Office. This case is being prosecuted by Special Litigation Counsel John Cotton Richmond and Trial Attorney Christine M. Siscaretti of the Civil Right Division’s Human Trafficking Prosecution Unit, and Assistant U.S. Attorney Julia K. Evans of the Eastern District of Louisiana.
Duane Phillips Factual Basis Christopher Williams Factual Basis Anthony Ellis Factual Basis
Tax Preparer Charged with Filing False Tax ReturnsRead the Press Release
NEWARK, N.J. – A Union County, New Jersey, tax preparer with an office in Essex County, New Jersey, was arrested today on charges of aiding and abetting in the filing of two dozen false tax returns, U.S. Attorney Paul J. Fishman announced.
Darlene Covington, 31, of Hillside, New Jersey, was indicted by a federal grand jury on April 10, 2015, and charged with 24 counts of aiding and abetting in the filing of false tax returns. She made her initial appearance today before U.S. Judge Joseph A. Dickson in Newark federal court and was released on $75,000 unsecured bond.
According to the documents filed in the case and statements made in court:
Covington worked as a tax preparer for KCJ Financial Corp., a tax preparation business in Irvington, New Jersey. During 2009 and 2010, Covington filed 24 false tax returns for tax years 2008 and 2009, using false information and personal identification information without the knowledge, consent or permission of the individuals named in the tax returns. Covington then applied for refund acceleration loans from financial institutions for each of the fraudulent refunds and earned a portion of each loan she secured. The refunds were given to a third party.
The false filing charges with which Covington is charged each carry a maximum potential penalty of three years in prison and a $250,000 fine.
U.S. Attorney Fishman credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, and investigators of the U.S. Attorney’s Office with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Sharon Ashe.
The charges in the indictment are mere accusations and the defendant is presumed innocent unless and until proven guilty.
Defense counsel: Chester Keller Esq., First Assistant Federal Public Defender, Newark
St. Peters Man Sentenced on Bank Fraud ChargesRead the Press Release
St. Louis, MO –MARK AVALOS, St. Peters, Missouri, was sentenced to five years of probation and ordered to pay $497,000 in restitution after pleading guilty to bank fraud charges relating to his work as the Controller for The Mortgage Store (TMS) in 2008. In imposing sentence today, United States District Judge Henry E. Autrey noted Avalos’ cooperation in the criminal investigation into the collapse of TMS in 2008.
TMS was a major mortgage brokering business which, by 2008, had offices in four states and hundreds of employees. Jason Rauschelbach and John York were the owners of TMS. Each of them pled guilty to a criminal conspiracy charge. Rauschelbach is presently serving a 24-month sentence and York is awaiting the designation of a prison facility where he will serve the 21-month sentence he received earlier this month. Court records relating to each of those cases showed that Rauschelbach and York took significant distributions from TMS, even as the business was failing and falling delinquent in paying over in excess of $600,000 in federal employment taxes. TMS also funded the purchase of assets, such as a ranch in Breckenridge, Colorado; an airplane; a condominium at the Lake of the Ozarks and several boats, all of which were owned by entities controlled by Rauschelbach and York.
Avalos was the controller of TMS. He pled guilty to a bank fraud charge relating to his involvement in a check kite in which the First Bank of the Lake lost approximately $850,000. The record showed that Avalos made only his salary at TMS and did not share in the distributions and asset purchases which benefitted Rauschelbach and York.
This case was investigated by the Federal Bureau of Investigation, IRS Criminal Investigation, HUD-Office of Inspector General, the Department of Labor-Office of Inspector General, the DOL Employee Benefits Security Administration and the Postal Inspection Service. Assistant United States Attorney James E. Crowe, Jr. handled the case for the U.S. Attorney’s Office.
St. Louis Man Sentenced to 10 Years in Prison for Two Bank RobberiesRead the Press Release
Altonio G. Graves, 39, of St. Louis, Missouri, was sentenced today in the U.S. District Court to 10 years in prison on two counts of Conspiracy to Commit Bank Robbery, two counts of Bank Robbery, and one count of Felon in Possession of a Firearm in connection with the robbery of Laclede Community Credit Union in Alton, IL, on February 11, 2013, and the robbery of People’s Bank and Trust in Altamont, IL, on February 26, 2013, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois announced. Following his prison sentence, Graves will be on federal supervised release for 3 years. Graves was also ordered to pay restitution in the amount of $5,684. Graves has been in custody since February 26, 2013.
Documents filed in U.S. District Court establish that on February 11, 2013, Graves entered the Laclede Community Credit Union in Alton, Illinois wearing a long black women’s wig, a black hat, and a black trench coat to disguise his appearance. Graves told the teller he had a gun, handed her a plastic grocery bag and a note demanding money. The teller placed $5,684 in the bag and Graves left the credit union with the money. Graves fled the area in a vehicle driven by his female co-defendant and was not immediately apprehended.
On February 26, 2013, Graves entered the People’s Bank and Trust in Altamont, Illinois wearing a long black women’s wig, a dark trench coat and a black hat with earflaps to disguise his appearance. Graves handed the teller a plastic grocery bag and a note which stated: "This is a robbery, I have a gun and I will use it." The teller placed $7,390 in the bag and Graves left the bank with the money. Graves fled the area in a white Chrysler vehicle being driven by the same female co-defendant. Illinois State Police officers located the suspect vehicle on the interstate and attempted a traffic stop. The female driver refused to stop and fled from the officer in speeds in excess of 120 mph until she lost control of the vehicle and crashed into a ditch. During a search of Graves and the vehicle, officers located the $7,390 in United States currency taken from the bank. Also during the search of the vehicle, officers recovered a loaded .45 caliber semi-automatic pistol behind the glove box. Graves was a previously convicted felon, having been convicted of the offense of Second Degree Murder in 1998.
The female co-defendant driver, Annalise McGee, 28, of St. Louis, MO, has also pleaded guilty and is awaiting her sentencing.
The case was investigated by the Alton Police Department, Altamont Police Department, the Illinois State Police and the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Ali Summers.
Six Minnesota Men Charged with Conspiracy to Provide Material Support to the Islamic State of Iraq and the LevantRead the Press Release
Four Defendants Arrested in Minneapolis; Two Arrested in San Diego
A criminal complaint was filed today charging six Minnesota men with conspiracy and attempt to provide material support to a designated foreign terrorist organization, namely, the Islamic State of Iraq and the Levant (ISIL).
Zacharia Yusuf Abdurahman, 19, Adnan Farah, 19, Hanad Mustafe Musse, 19, and Guled Ali Omar, 20, were arrested in Minneapolis yesterday. Abdirahman Yasin Daud, 21, and Mohamed Abdihamid Farah, 21, were arrested yesterday in California after driving from Minneapolis to San Diego.
Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Andrew M. Luger of the District of Minnesota and Special Agent in Charge Richard T. Thornton of the FBI’s Minneapolis Division made the announcement.
“The six defendants charged in the complaint allegedly planned to travel to Syria as part of their conspiracy to provide material support to ISIL,” said Assistant Attorney General Carlin. “One of the National Security Division’s highest priorities is to identify, disrupt, and hold accountable those who provide or attempt to provide material support to designated foreign terrorist organizations. I would like to thank the many agents, analysts, and prosecutors who are responsible for this investigation and the charges in this case.”
“As described in the criminal complaint, these men worked over the course of the last 10 months to join ISIL,” said U.S. Attorney Luger. “Even when their co-conspirators were caught and charged, they continued to seek new and creative ways to leave Minnesota to fight for a terror group. I applaud the hard work and tireless efforts of the FBI Minneapolis Division and their colleagues around the country.”
“Preventing acts of terrorism is the FBI's highest priority,” said Special Agent in Charge Thornton. “Disrupting individuals from traveling to join and fight for ISIL is an important part of our counter terrorism strategy. As a result of this investigation and arrests, these six Minnesota men who planned to travel and fight for ISIL will answer these charges in U.S. District Court instead of taking up arms in Syria. The FBI remains committed to ending both recruitment efforts and travel on the part of young people from Minnesota to fight overseas on behalf of terror groups. These arrests today signify this continued commitment.”
According to the criminal complaint and documents filed in court, the FBI has been conducting an investigation for the last 10 months into a group of individuals who have tried to join – and in some cases succeeded in joining – overseas designated foreign terrorist organizations. At least nine Minnesotans have now been charged as part of this conspiracy to provide material support to ISIL. The men are all alleged associates and friends of one another.
This case is the result of an investigation conducted by the FBI-led Joint Terrorism Task Force, U.S. Attorney’s Office of the District of Minnesota and the Counterterrorism Section of the Department of Justice National Security Division. Assistant Attorney General Carlin is also grateful to the U.S. Attorney’s Office of the Southern District of California and the FBI’s San Diego Division for their contributions to the investigation of this case.
The charges contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Farah et al Criminal Complaint
Six Minnesota Men Charged with Conspiracy to Provide Material Support to the Islamic State of Iraq and the LevantRead the Press Release
Four defendants arrested in Minneapolis; two arrested in San Diego
United States Attorney for the District of Minnesota Andrew M. Luger, FBI Special Agent in Charge for the Minneapolis Division Richard T. Thornton, and Assistant Attorney General for National Security John Carlin today announced a criminal complaint charging six Minnesota men with conspiracy and attempt to provide material support to a designated foreign terrorist organization, namely, the Islamic State of Iraq and the Levant (ISIL). ZACHARIA YUSUF ABDURAHMAN, 19; ADNAN FARAH, 19; HANAD MUSTAFE MUSSE, 19; and GULED ALI OMAR, 20, were arrested yesterday in Minneapolis. ABDIRAHMAN YASIN DAUD, 21, and MOHAMED ABDIHAMID FARAH, 21, were arrested yesterday in San Diego, California.“As described in the criminal complaint, these men worked over the course of the last 10 months to join ISIL,” said U.S. Attorney Luger. “Even when their co-conspirators were caught and charged, they continued to seek new and creative ways to leave Minnesota to fight for a terror group. I applaud the hard work and tireless efforts of the FBI Minneapolis Division and their colleagues around the country.”
“Preventing acts of terrorism is the FBI's highest priority,” said FBI Special Agent in Charge Thornton. “Disrupting individuals from traveling to join and fight for ISIL is an important part of our counter terrorism strategy. As a result of this investigation and arrests, these six Minnesota men who planned to travel and fight for ISIL will answer these charges in U.S. District Court instead of taking up arms in Syria. The FBI remains committed to ending both recruitment efforts and travel on the part of young people from Minnesota to fight overseas on behalf of terror groups. These arrests today signify this continued commitment.”The charges contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
“The six defendants charged in the complaint allegedly planned to travel to Syria as part of their conspiracy to provide material support to ISIL,” said Assistant Attorney General Carlin. “One of the National Security Division’s highest priorities is to identify, disrupt, and hold accountable those who provide or attempt to provide material support to designated foreign terrorist organizations. I would like to thank the many agents, analysts, and prosecutors who are responsible for this investigation and the charges in this case.”
“I want to commend the work of the FBI's Joint Terrorism Task Force who worked countless hours in support of our law enforcement partners in Minnesota,” said U.S. Attorney for the Southern District of California Laura E. Duffy. “We are satisfied that because of these arrests, we have furthered our mission to safeguard national security by preventing individuals from joining ISIL, a foreign terrorist organization that threatens to induce our youth into committing violence against foreigners and U.S. citizens alike.”
According to the criminal complaint and documents filed in court, for the last ten months, the Minneapolis Division of the FBI has been conducting an investigation into a group of individuals who have tried to join – and in some cases succeeded in joining – overseas designated foreign terrorist organizations. At least nine Minnesotans have now been charged as part of this conspiracy to provide material support to ISIL. The men are all associates and friends of one another. Among the co-conspirators are ABDULLAHI YUSUF and ABDI NUR, both of whom were originally charged by criminal complaint in November 2014, and HAMZA AHMED, who was indicted in February 2015.
ABDI NUR boarded a flight on May 29, 2014, bound for Turkey and has not returned to the United States. He called a relative on June 6, 2014, from a telephone number bearing the country code for Turkey, “90”. NUR told his relative that he had reached his destination and that he would not be calling again. This same telephone number was used three weeks later by another man who traveled from the Twin Cities to Syria to join ISIL.
According to the criminal complaint and documents filed in court, on June 3, 2014, a person identified in court documents as Y.J., purchased both a round-trip ticket from JFK International Airport to Istanbul, Turkey, and a bus ticket from Minneapolis to New York. He departed JFK on June 9, 2014, for Istanbul. He has not returned to the United States. On June 25, 2014, Y.J. called a family member, also using the same Turkish telephone number referenced previously.
According to the criminal complaint and documents filed in court, OMAR tried to travel on November 6, 2014, on a flight from Minneapolis/St. Paul International Airport to San Diego, California. Before he could board the flight, OMAR was stopped at the airport in Minnesota and not allowed to board. OMAR had planned previously to leave the United States in May 2014 to join ISIL, but later abandoned his immediate plans to travel after being confronted by his family.
According to the criminal complaint and documents filed in court, between November 6 and November 8, 2014, M. FARAH, MUSSE, ABDURAHMAN, and previously indicted co-conspirator HAMZA AHMED, traveled by bus to New York City. M. FARAH, MUSSE and ABDURAHMAN were stopped before boarding international flights from JFK to various destinations in Southeastern Europe in an attempt to travel to Syria to join ISIL.
According to the criminal complaint and documents filed in court, after the failed attempts to travel in November 2014, MUSSE, M. FARAH, ABDURAHMAN, and OMAR were joined in their discussions by DAUD, A. FARAH, and a seventh person, who was also a confidential human source (CHS). Members of this group discussed a plan to obtain false passports for another attempt to leave the United States for Syria. The CHS later informed OMAR that he had obtained a source for forged passports in San Diego, California.
According to the criminal complaint and documents filed in court, between March 30 and April 9, 2015, several of the defendants provided photographs and cash payments to the CHS for use in obtaining their fake passports.
According to the criminal complaint and documents filed in court, at approximately 8:15 p.m. on April 17, 2015, M. FARAH, DAUD and the CHS left Minneapolis in DAUD’s vehicle, bound for San Diego, California.
This case is the result of an investigation conducted by the FBI-led Joint Terrorism Task Force.
Defendant Information: ZACHARIA YUSUF ABDURAHMAN, 19
Columbia Heights, Minn.
Charges:- Conspiracy to Provide Material Support to a Designated Foreign Terrorist Organization (the Islamic State of Iraq and the Levant), 1 count
- Attempting to Provide Material Support to a Designated Foreign Terrorist Organization, 1 count
Minneapolis, Minn.Charges:
- Conspiracy to Provide Material Support to a Designated Foreign Terrorist Organization (the Islamic State of Iraq and the Levant), 1 count
- Attempting to Provide Material Support to a Designated Foreign Terrorist Organization, 1 count
ADNAN FARAH, 19
Minneapolis, Minn.Charges:
- Conspiracy to Provide Material Support to a Designated Foreign Terrorist Organization (the Islamic State of Iraq and the Levant), 1 count
- Attempting to Provide Material Support to a Designated Foreign Terrorist Organization, 1 count
MOHAMED ABDIHAMID FARAH, 21
Minneapolis, Minn.Charges:
- Conspiracy to Provide Material Support to a Designated Foreign Terrorist Organization (the Islamic State of Iraq and the Levant), 1 count
- Attempting to Provide Material Support to a Designated Foreign Terrorist Organization, 1 count
HANAD MUSTAFE MUSSE, 19
Minneapolis, Minn.Charges:
- Conspiracy to Provide Material Support to a Designated Foreign Terrorist Organization (the Islamic State of Iraq and the Levant), 1 count
- Attempting to Provide Material Support to a Designated Foreign Terrorist Organization, 1 count
GULED ALI OMAR, 20
Minneapolis, Minn.Charges:
- Conspiracy to Provide Material Support to a Designated Foreign Terrorist Organization (the Islamic State of Iraq and the Levant), 1 count
- Attempting to Provide Material Support to a Designated Foreign Terrorist Organization, 1 count
The charges are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Silver Spring Man Indicted for Allegedly Distributing Acetyl Fentanyl Resulting in DeathRead the Press Release
Greenbelt, Maryland – A federal grand jury has indicted Jeffrey Sean Nazari, age 44, of Silver Spring, Maryland, on charges of distributing a controlled substance analogue resulting in death, possession with intent to distribute a controlled substance analogue, possession of a firearm in furtherance of a drug trafficking crime and being a felon in possession of a firearm. The indictment was returned today.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; Chief J. Thomas Manger of the Montgomery County Police Department; and Montgomery County State’s Attorney John McCarthy.
According to the four count indictment and court documents, on January 4, 2015, Nazari allegedly distributed acetyl fentanyl, a controlled substance analogue that he represented to be heroin, to an individual who subsequently died as a result of using the substance. As part of the investigation into that death a search warrant was obtained for Nazari’s residence. The indictment alleges that on January 7, 2015, Nazari possessed acetyl fentanyl with the intent to distribute it, and illegally possessed a .380 caliber handgun.
Nazari faces a mandatory minimum sentence of 20 years and up to life in prison for distribution of acetyl fentanyl with death resulting; a maximum of 20 years in prison for possession with intent to distribute a controlled substance analogue; a minimum of five years, consecutive to any other sentence, and up to life in prison for possession of a firearm in furtherance of a drug trafficking crime; and up to 10 years in prison for being a felon in possession of a firearm. No court appearance has been scheduled. Nazari is currently detained on related state charges.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein praised the DEA, Montgomery County Police Department, and the Montgomery County State’s Attorney’s Office for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant United States Attorneys Arun G. Rao and Nicolas A. Mitchell, who are prosecuting the case.
San Jose Priest Charged with Bank Fraud and Tax EvasionRead the Press Release
SAN FRANCISCO – A federal grand jury in San Francisco indicted Hien Minh Nguyen on bank fraud and tax evasion charges, announced United States Attorney Melinda Haag and Internal Revenue Service, Criminal Investigation, Special Agent in Charge José M. Martinez. The indictment filed in the federal district court was unsealed today.
From 1994 to present, Nguyen, 55, was employed as a priest by the Diocese of San Jose. As an employee with the Diocese, Nguyen held various positions including Director of the Vietnamese Catholic Center (VCC), also known as Trung Tam Cong Giao (TTCG), and Vicar for Vietnamese Ministry. According to the indictment, from 2005 through 2011, Nguyen also had sole signature authority on the VCC bank account maintained at Bank of America.
During church services from 2005 through 2008, Nguyen requested that parishioners make donations to the VCC. Parishioners wrote checks payable to the VCC or TTCG and gave those checks to Nguyen. As part of the bank fraud scheme, Nguyen caused the checks to be deposited into his personal bank account at Wells Fargo Bank. The indictment alleges Nguyen endorsed the checks with his signature under the false pretense or misrepresentation that his employer authorized him to make such endorsements and deposits.
The indictment further alleges that Nguyen also willfully attempted to evade income taxes for the years 2008, 2009, 2010 and 2011 by underreporting his taxable income by $337,516, $376,500, $335,456, and $93,012, respectively. This resulted in additional tax due of $349,952.00. In the indictment, Nguyen is charged with fourteen counts of bank fraud, in violation of 18 U.S.C. § 1344(2); and four counts of tax evasion, in violation of 26 U.S.C. § 7201.
Nguyen was arrested in Ft. Lauderdale, Florida on Saturday morning, April 18, 2015. He made his initial appearance this morning in federal court in Ft. Lauderdale, Florida. His next court appearance is scheduled for April 21, 2015, at 3:00 p.m. before the U.S. Magistrate Judge Lurana S. Snow in federal court in Ft. Lauderdale, Florida.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendant faces a maximum statutory sentence of thirty years in prison and a fine of $1,000,000 for each count of bank fraud, in violation of 18 U.S.C. § 1344; and five years in prison and a fine of $250,000 for each count of tax evasion, in violation of 26 U.S.C. § 7201. However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Thomas Moore is prosecuting the case. The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigation.
San Antonio Businessman Sentenced to Federal Prison for Bank Fraud and Failure to File Income Tax ReturnRead the Press Release
In San Antonio today, 38-year-old businessman Marcus A. Garza was sentenced to 30 months in federal prison and ordered to pay over $680,000 restitution for defrauding several financial institutions announced Acting United States Attorney Richard L. Durbin, Jr., and Internal Revenue Service-Criminal Investigation (IRS-CI) Special Agent in Charge William Cotter.
According to court records, Garza owned multiple companies including: Auto nSure, a company which sold insurance policies underwritten by other insurance companies to the general public; Liberty Pre-Owned Cars and Trucks; Marcus Garza Enterprises, LLC, which handled payroll matters for all of the defendant’s business concerns; and, eTax Express, Inc., a tax return preparation business. On March 24, 2014, Garza pleaded guilty to one count of bank fraud and one count of failure to file an income tax return. By pleading guilty, Garza admitted that from 2005 to 2009, he provided false income tax returns and other documentation showing his income and credit worthiness to lenders in order to secure hundreds of thousands of dollars in loans and lines of credit, many of which subsequently went into default. Garza also admitted that he failed to file an income tax return for calendar year 2006.
This case was investigated by Internal Revenue Service-Criminal Investigation. Assistant United States Attorney William R. Harris prosecuted this case on behalf of the Government.
Romanian Native in Large-Scale ATM Skimming Scheme Extradited to the United States to Face ChargesRead the Press Release
NEWARK, N.J. – A native of Romania who was arrested in Spain will make his initial court appearance today following his extradition to face charges that he participated in a large-scale lucrative ATM skimming scheme targeting New Jersey bank customers, U.S. Attorney Paul J. Fishman announced.
Robert Mate, a/k/a “Chioru,” a/k/a “Marcel Varga,” 29, will appear this afternoon before U.S. Magistrate Judge Joseph A. Dickson on a six-count indictment charging him with conspiracy to commit bank fraud, aggravated identity theft, conspiracy to possess 15 or more counterfeit access devices, and conspiracy to possess access device-making equipment. The other two individuals charged on the indictment, Alin Dumitru Carabus and Ionut Vasile Ciurba-Stana, have been apprehended in Spain and requests for extradition are pending.
According to documents filed in this case and other cases and statements made in court:
Mate participated as a high-level member of an extensive scheme to steal bank customer account information, commonly referred to as “ATM skimming,” by installing secret card-reading devices on ATMs throughout New Jersey, New York, Connecticut, Florida, and elsewhere. The scheme was organized by Marius Vintila, 31, who previously pleaded guilty to bank fraud conspiracy and aggravated identity theft charges. The scheme defrauded Citibank, TD Bank, Wells Fargo, and multiple other financial institutions out of at least $5 million, and affected thousands of bank customers. Vintila and Bogdan Radu designed and constructed sophisticated card-reader devices and pinhole camera panels capable of reading and storing customers’ bank account information and personal identification numbers. Mate and others then secretly installed the card-reader devices and the pinhole cameras panels onto bank ATMs, and removed them a few days later after they had recorded customer bank account information as customers performed routine bank transactions at ATMs. After the account information was stolen, it was used to create thousands of false and fraudulent ATM cards, which Mate and others used to withdraw millions of dollars from customers’ bank accounts.
The ATM skimming operation in which Mate participated is one of the largest ever uncovered by law enforcement. To date, 16 individuals have been charged in connection with this scheme, 12 have pleaded guilty, and one individual, Dinu Horvat, was recently convicted after a week-long trial. Marius Vintila, the ringleader of the scheme, pleaded guilty
Marius Vintila, 31, previously pleaded guilty in February 2015 to bank fraud conspiracy and aggravated identity theft charges. Bogdan Radu, 30, pleaded guilty to bank fraud conspiracy and aggravated identity theft charges in February 2014. Dinu Horvat, 28, Enes Causevic, 24, Marius Cotiga, 35, Constantin Ginga, 53, Dezso Gyapias, 29, Ioan Leusca, 30, Constantin Pendus, 30, and Emil Revesz, 30, participated in the scheme by installing or removing the devices, and by subsequently using the fraudulent ATM cards to withdraw cash from compromised bank accounts. Florin Apetrei, 18, Luis Franco, 23, and Mirel Hadzalic, 24, participated in the scheme by using the fraudulent ATM cards to withdraw cash. Causevic, Cotiga, Ginga, Gyapias, Leusca, and Revesz all pleaded guilty to bank fraud conspiracy and aggravated identity theft charges. Apetrei, Cotiga, Pendus, Franco, and Hadzalic pleaded guilty to bank fraud conspiracy. And Horvat was convicted at trial of bank fraud conspiracy, aggravated identity theft, conspiracy to possess 15 or more access devices, and conspiracy to possess access device-making equipment.
For their roles in the scheme, Judge Martini sentenced Ginga, Gyapias, and Leusca each to 57 months in prison and Franco and Pendus each to 33 months in prison. Hadzalic received a sentence of 34 months in prison, Apetrei received a sentence of 24 months in prison, and Cotiga received a sentence of 26 months in prison. Vintila, Causevic, Radu, Revesz, and Horvat are pending sentencing.
Mate is charged with four counts, as described below, which carry the following maximum penalties and fines:
Count
Offense
Maximum Penalty
Maximum Fine
1
Conspiracy to Commit Bank Fraud
Thirty years in prison
$1 million
4
Aggravated Identity Theft
Mandatory, consecutive penalty of two years in prison
$250,000, or twice the gross pecuniary gain or loss from the offense
5
Conspiracy to Possess Fifteen or More Counterfeit Access Devices
Five years in prison
$250,000, or twice the gross pecuniary gain or loss from the offense
6
Conspiracy to Possess Access Device-Making Equipment
Seven and one-half years in prison
$250,000, or twice the gross pecuniary gain or loss from the offense
U.S. Attorney Fishman praised special agents of the U.S. Secret Service, Newark Field Office, under the direction of Acting Special Agent in Charge Carl Agnelli, along with special agents of Immigration and Customs Enforcement, Homeland Security Investigations (HSI) in Newark, under the direction of Acting Special Agent in Charge Kevin Kelly, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorneys Rahul Agarwal of the Special Prosecutions Division and David M. Eskew of the Criminal Division, Economic Crimes Unit, in Newark.
Defense counsel: Angelo Servidio Esq., Nutley, New Jersey
Rochester Man Pleads Guilty to Bank RobberyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051
BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that James Bloom, 32, of Rochester, NY, pleaded guilty to bank robbery before U.S. District Judge Richard J. Arcara. The charge carries a maximum penalty of 20 years in prison and a $250,000 fine.Assistant U.S. Attorney Edward H. White, who is handling the case, stated that the defendant robbed four banks:
• January 6, 2014, Key Bank, 2929 Union Road, Cheektowaga, NY.
• January 30, 2014, Key Bank, 4248 Delaware Avenue, Tonawanda, NY
• February 10, 2014, Citizens Bank, 2040 George Urban Boulevard, Depew, NY.
• February 14, 2014, First Niagara Bank, 3488 Amelia Drive, Orchard Park, NY.During each robbery, Bloom handed the teller a note referencing explosives. One note read “I’m wired and ready to blow.”
The plea is the culmination of an investigation by the Federal Bureau of Investigation, the Cheektowaga Police Department, under the direction of Chief David Zack, the Tonawanda Police Department, under the direction of Chief Anthony Palombo, and the Orchard Park Police Department, under the direction of Mark Pacholec.
Sentencing is scheduled for July 30, 2015 at 1:00 p.m. before Judge Arcara.
Portland Pimp Sentenced to 12 Years for Sex-Trafficking Case Involving Two Minor VictimsRead the Press Release
PORTLAND, Ore. – U.S. District Judge Michael H. Simon sentenced Antonio Vernell Porter, 28, of Portland, to 12 years in prison, followed by ten years of supervised release, for sex trafficking of a minor. Defendant pled guilty to one of three counts in October 2014.
According to court documents, the criminal conduct took place in 2009 and continued into early 2010. Although initially charged as a single-victim case in December 2012, law enforcement located a second victim while the initial case was pending. The government filed a superseding indictment in 2014 to add this second victim and two additional counts of sex trafficking. In an interview with police, the second victim disclosed that she began working for defendant when she was just 15 years old, and that she did so because defendant threatened to harm her family if she did not work for him. She performed dozens of commercial sex acts over several months in Oregon, California, Nevada, and Washington.
In August 2009, officers responded to a report that defendant allegedly struck the victim on the head with a toddler bike and then cut her hand with a knife. Officers could not locate defendant at that time, but three months later, in November 2009, the police again responded to a report that defendant had beaten the victim (then 17) when she refused to “go work” (engage in commercial sex acts). She described defendant as her “pimp” and said he punched her in the face when she refused to get out of his vehicle for work. She explained that defendant would normally drop her off on 82nd Avenue to work, and “anytime I don’t wanna work the street I get a beating.” While police were speaking with P.M., defendant called her cell phone. She put the phone on speaker so the police could hear the conversation. Officers heard defendant tell the juvenile victim that she “better be up on the avenue.”
This case was investigated by the FBI’s Child Exploitation Task Force (CETF), led by two task force detectives from the Portland Police Bureau (PPB). The FBI-sponsored CETF partners with local law enforcement agencies to combat the commercial sexual exploitation of children in the area. Partners include the Portland Police Bureau, Tigard Police Department, Beaverton Police Department, and Vancouver Police Department, who work closely with prosecutors from both the U.S. Attorney’s office and Multnomah County District Attorney’s Office. This case was prosecuted by Assistant U.S. Attorney Leah K. Bolstad.
Owner of Home Health Care Agency Admits Fraud, Bribery and Other ChargesRead the Press Release
NEWARK, N.J. – The owner of a home health agency today admitted her role in a $7 million scheme to defraud Medicaid and engage in bribery, money laundering, and tax evasion, U.S. Attorney Paul J. Fishman announced.
Irina Krutoyarsky, 61, Springfield, New Jersey, pleaded guilty before U.S. District Judge Katharine S. Hayden in Newark federal court to an information that charged her with conspiracy to commit health care fraud, bribery, conspiracy to commit money laundering, and tax evasion.
According to documents filed in this case and statements made in court:
Krutoyarsky owned HHCH Health Care Inc., of Linden, New Jersey, which provided home health aides and health care services to New Jersey residents. Home health aides visit patients at their homes and provide a variety of health care services, such as assistance with eating, dressing, and grooming. These home health aide services were subsidized under the N.J. Medical Assistance Program (Medicaid).
Krutoyarsky and her conspirators defrauded Medicaid by submitting false documents to the N.J. Board of Nursing, the state agency responsible for issuing home health aide certifications. Krutoyarsky falsely represented that prospective home health aides had attended and satisfactorily completed required training and testing. In truth, Krutoyarsky charged prospective home health aides hundreds of dollars for fraudulently obtaining their certifications.
Krutoyarsky also fraudulently billed Medicaid for services not actually rendered to patients. Numerous HHCH home health aides routinely falsified records that claimed they had visited patients and provided them health care services. In truth, these home health aides had other jobs, were on vacations overseas, or were in other parts of the state during the times they claimed they were with patients. Home health aides sometimes gave cash kickbacks to patients who were also participating in the scheme. Federal agents introduced a cooperating witness (CW), posing as a prospective home health aide to Krutoyarsky. During one meeting in January 2012, Krutoyarsky and another conspirator meet with the CW to discuss having him join the scheme to defraud Medicaid. In explaining the scheme, Krutoyarsky explained that they would fraudulently bill Medicaid to obtain “free money [from the] Government.”
Krutoyarsky hired individuals with no home health certifications and no status in the country and then sent them to patients’ homes. Krutoyarsky and her conspirators then billed Medicaid, fraudulently claiming that the services had been provided by duly certified home health aides.
Krutoyarsky defrauded Medicaid out of $7 million. She directed certain home health aides to establish checking accounts at a bank near HHCH’s office and then took control of their checkbooks. After Medicaid paid the claims and transferred the funds into HHCH accounts, Krutoyarsky then transferred portions of the money into the aides’ accounts and used the money to purchase, maintain, and pay for real property in New Jersey, New York, Florida; purchase personal property for her own use and benefit; and pay for personal expenses for her own use and benefit and the use and benefit of her family.
Krutoyarsky also bribed an employee of the N.J. Department of Labor (NJDOL), who was working in an undercover capacity with federal agents. In mid-2010, the NJDOL received a complaint that Krutoyarsky was not paying overtime wages to her employees and commenced an investigation. The department demanded Krutoyarsky produce certain HHCH records. Realizing that providing these records would reveal the Medicaid fraud scheme, Krutoyarsky paid approximately $10,000 in a cash bribe to the employee for the purpose of obstructing and unlawfully influencing the NJDOL investigation. The employee, however, was wearing a recording device and recorded Krutoyarsky making the bribe payment on video.
In May 2011, Krutoyarsky paid a second cash bribe of approximately $15,000 to the employee for the purpose of obstructing and unlawfully influencing a second NJDOL investigation related to one of Krutoyarsky’s conspirator’s companies. This bribe payment was also captured on video.
Between 2007 and 2011, Krutoyarsky cheated the IRS out of $907,150 in taxes due and owing to the United States. She sent home health aides to the homes of patients who were not eligible for Medicaid. These patients wrote checks payable to HHCH. A conspirator cashed these checks at check-cashing businesses in New Jersey and equally divided the cash with Krutoyarsky. Krutoyarsky also issued HHCH checks to “no show” employees, who then wrote personal checks back to Krutoyarsky. On her corporate tax returns, she falsely characterized these payments as legitimate business deductions, thus reducing her business’ corporate taxes.
The counts of conspiracy to commit health care fraud, bribery and money laundering each carry a maximum potential sentence of 10 years in prison, and the count of tax evasion carries a maximum potential sentence of five years in prison. All counts are also punishable by a fine of $250,000. As part of the plea agreement, Krutoyarsky will be ordered to pay a $7 million forfeiture money judgment to the United States and will forfeit several homes and properties in New Jersey, New York, and Florida, as well as hundreds of thousands of dollars seized from her bank accounts or bank accounts that she controlled. Krutoyarsky’s sentencing is scheduled for Sept. 14, 2015.
As other defendants, the charges and allegations contained in the complaint are merely accusations, and those defendants are presumed innocent unless and until proven guilty.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel, in Newark; IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen; U.S. Citizenship and Immigration Services; Acting N.J Attorney General John J. Hoffman; N.J. State Comptroller Marc Larkins; Division Director Mark Anderson, Office of the State Comptroller, Medicaid Fraud Division; New Jersey Division of Consumer Affairs, under the direction of Acting Director Steve C. Lee; the N.J. Board of Nursing; the N.J. Department of Labor, under the direction of Commissioner Hal Wirth; U.S. Department of State-Bureau of Diplomatic Security; and the Marlboro Police Department, under the direction of Chief Bruce Hall, for the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys V. Grady O’Malley, Peter Gaeta, and Anthony Moscato of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Edward V. Sapone Esq., New York
Orchard Park Man Pleads Guilty to Health Care FraudRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that Gary Wannamacher, 50, of Orchard Park, NY, pleaded guilty today before U.S. District Court Judge Elizabeth A. Wolford, to health care fraud. The charges carry a maximum sentence of 10 years in prison, a fine of $250,000, or both.
Assistant U.S. Attorney Elizabeth R. Moellering, who is handling the case, stated the defendant is the owner of Spring Creek Athletic Club in Springville, NY. Between January 2009 and December 31, 2012, Wannamacher submitted fraudulent claims to private health insurance companies for reimbursement of health programs offered at the athletic club that were not actually attended by the beneficiaries listed in the claims.
For instance, as part of the Silver Sneakers program, members of certain insurance companies could attend programs at the athletic club for no charge. When members attended, the athletic club was allowed to submit a claim for reimbursement to the insurance companies. The defendant submitted claims for reimbursement for programs not actually attended by members including claims for individuals who were out of town on the date of the claim form or who had recently had major surgery and did not attend the gym following the surgery.
The Government also contends that the defendant submitted claims for reimbursement for programs supposedly attended by two individuals after the dates of their deaths.
The plea is the culmination of an investigation by the Federal Bureau of Investigation’s Western New York Health Care Fraud Task Force which includes the New York State Attorney General’s Office–Medicaid Fraud Control Unit, New York State Department of Financial Services, U.S. Department of Health and Human Services–Office of Inspector General–Office of Investigations, U.S. Department of Labor-Office of Inspector General, U.S. Department of Veterans Affairs, and U.S. Food and Drug Administration.
Sentencing is scheduled for September 21, 2015 at 10:00 a.m. before Judge Wolford.
Officer and Co-Defendant Arrested in Conspiracy to Traffic CocaineRead the Press Release
McALLEN, Texas – Noel Pena, 29, a Rio Grande City Police Department investigator, has been arrested and made his initial appearance on charges of conspiracy to possess with intent to distribute cocaine, announced U.S. Attorney Kenneth Magidson. Also charged is Hector Salinas-Hinojosa, 21, of Roma.
Salinas-Hinojosa was arrested April 17, 2015, upon the filing of a criminal complaint. Pena, of Rio Grande City, was taken into custody the following morning. They both made their initial appearances today before U.S. Magistrate Judge Dorina Ramos in McAllen. They will remain in custody pending a detention hearing set for Thursday at 11:00 a.m. before Judge Ramos.
“These arrests illustrate the ability of law enforcement agencies to leverage their individual resources to work together and achieve justice,” said Mark Dawson, Deputy Special Agent in Charge, Homeland Security Investigations (HSI). “While we take no pleasure in arresting a fellow law enforcement officer, HSI, along with our law enforcement partners, are committed to keeping our communities safe by conducting robust joint investigations, and following those investigations wherever they lead.”
The criminal complaint alleges Pena and Salinas-Hinojosa conspired to provide a ‘fake’ police report to an undercover officer who was acting as a cocaine trafficker. The undercover “cocaine trafficker” claimed to need assistance in stealing the majority of a 10-kilogram cocaine load he was holding for the drug cartels. On April 9, 2015, Salinas-Hinojosa and Pena met with the undercover officer and agreed to provide the ‘fake’ police report to make it appear that 10 kilograms of cocaine had been seized by law enforcement, according to the charges. In exchange they were allegedly supposed to be paid $10,000. The complaint alleges that at the time of the meeting, the undercover officer provided $5,000 as a down payment for the report.
The scheme alleged in the complaint involved Pena, as an investigator assigned to the Starr County High Intensity Drug Trafficking Area Task Force, being tipped off to the location of the cocaine. He would then stage a law enforcement operation.
On April 11, 2015, two kilograms of cocaine was left at a stash house location in Garceno. After being ‘tipped’ off the location, Pena allegedly proceeded to the residence and ‘found’ the cocaine and then obtained a search warrant to seize it. Subsequently, on April 17, 2015, Salinas-Hinojosa provided the ‘fake report’ to the undercover officer and was paid the remaining $5,000.
The charges are the result of investigation conducted by HSI, Drug Enforcement Administration, Texas Department of Public Safety and FBI with assistance from the Texas Rangers. Assistant U.S. Attorneys Juan F. Alanis and Ted Imperato are prosecuting the case.
A defendant is presumed innocent unless convicted through due process of law.Oakland Man Sentenced for Counterfeit Media Scheme in FresnoRead the Press Release
FRESNO, Calif. —Emilio Perez-Solis, 39, of Oakland, was sentenced today to three years and 10 months in prison, for conspiring to sell counterfeit CDs and DVDs, United States Attorney Benjamin B. Wagner announced.
According to court documents, Perez-Solis used a building in a rural area of Fresno as a distribution point for counterfeit CDs and counterfeit DVDs. From the building, Perez-Solis sold counterfeit CDs and DVDs, including movies that were only in theatrical release and not yet available on DVD. On Feb. 21, 2014, the building was searched and found to contain approximately 70,000 counterfeit music CDs and movie DVDs.
This case was the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) with assistance from the Fresno County Sheriff’s Office. Assistant United States Attorneys Henry Z. Carbajal III and Patrick R. Delahunty prosecuted the case.
Docket #: 1:14-cr-042 LJO
Navajo Man from Gallup Pleads Guilty to Federal Child Sexual Abuse ChargeRead the Press Release
ALBUQUERQUE – Manuel Tsosie, 37, an enrolled member of the Navajo Nation who resides in Gallup, N.M., pleaded guilty this morning in federal court in Albuquerque, N.M., to a child sexual abuse charge. Under the terms of his plea agreement, Tsosie will be sentenced a term of incarceration not to exceed 33 months followed by a term of supervised release to be determined by the court. Tsosie will be required to register as a sex offender after completing his prison sentence.
Tsosie was arrested on June 3, 2014, on an indictment alleging the he sexually abused a child under the age of 12 years on a date between April 1, 2013 and Sept. 30, 2013. The indictment alleged that Tsosie violated the young victim in a location within the Navajo Indian Reservation in McKinley County, N.M.
During today’s hearing, Tsosie entered a guilty plea to a felony information charging him abusive sexual contact. In entering his guilty plea, Tsosie admitted that he intentionally touched the victim’s genitals at a residence located within Navajo Indian Reservation.
This case was investigated by the Gallup office of the FBI. The case is being prosecuted by Assistant U.S. Attorneys Elaine Y. Ramirez 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/.
Monticello Man Pleads Guilty to Attempted Enticement of a MinorRead the Press Release
A man who attempted to entice a minor to engage in criminal sexual activity pled guilty today in federal court in Cedar Rapids.
Colton Rickels, age 19, from Monticello, Iowa, was convicted of one count of attempted enticement of a minor.
At the plea hearing, Rickels admitted that, in October 2014, he used the Internet to attempt to persuade, induce, entice, or coerce a 12-year-old female to engage in sexual activity.
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Rickels was taken into custody by the United States Marshal after the guilty plea and will remain in custody pending sentencing. Rickels faces a mandatory minimum sentence of 10 years’ imprisonment and a possible maximum sentence of life imprisonment, a $250,000 fine, a $100 special assessment, and supervised release for 5 years to life following his imprisonment.
This case is being prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Iowa Division of Criminal Investigation, the Monticello Police Department, and the Cedar Rapids Police Department.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 15-20.
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Modesto Woman Sentenced for Tax Fraud ConspiracyRead the Press Release
FRESNO, Calif. — Christine Rose Caraway, 34, of Modesto, was sentenced by Senior United States District Judge Anthony W. Ishii to two and a half years in prison for conspiring to submit false claims to the IRS, United States Attorney Benjamin B. Wagner announced. Caraway was also ordered to pay over $60,000 in restitution to the IRS.
According to court documents, from December 2010 to May 2011, Caraway and her former spouse Heath Lee Roberson obtained personal identifying information from over 40 individuals. Caraway and Roberson then used this information to generate false tax returns and submitted them to the IRS. They funneled the tax refunds into accounts they controlled. Roberson was sentenced on July 21, 2014, to two years and nine months in prison.
This case was the product of an investigation by the Internal Revenue Service - Criminal Investigation. Assistant United States Attorney Michael G. Tierney prosecuted the case.
Docket #: 1:13-cr-342 AWI
Mineral County man convicted of cocaine traffickingRead the Press Release
MARTINSBURG, WEST VIRGINIA – Tony Allen Redman, 31, of Keyser, West Virginia, was convicted today in federal court of cocaine trafficking, United States Attorney William J. Ihlenfeld, II, announced.
Redman conspired with other associates to sell cocaine in Mineral County, West Virginia. Specifically, Redman permitted his residence to be utilized for the purpose of unlawfully storing and distributing cocaine.
Redman pled guilty today to one count of “Aiding and Abetting the Maintenance of a Drug-Involved Premises,” for which he faces up to 20 years in prison and a fine of up to $500,000.00. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Jarod Douglas prosecuted the case on behalf of the government. The Potomac Highlands Drug and Violent Crime Task Force investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Men Sentenced to Prison for Kidnapping Conspiracy and Thefts from Delivery Drivers and WarehousesRead the Press Release
LAS VEGAS, Nev. – Three Las Vegas men who stole controlled substances and designer goods from warehouses and delivery drivers, and conspired to kidnap and rob a pharmaceutical delivery van driver, were sentenced on Friday, April 17, 2015, to eight, 10, and 16 years in prison and three years of supervised release, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.
Alexander Del Valle Garcia, 42, was sentenced to 96 months in prison, Julio De Armas Diaz, 55, was sentenced to 130 months in prison, and Alexis Torres Simon, 46, was sentenced to 192 months in prison. The three men were convicted by a jury in May 2014 of one count of conspiracy to interfere with commerce by robbery in addition to one count of conspiracy to commit theft from interstate shipment. Garcia was also convicted of one count of making a false statement to the FBI. Diaz was also convicted of one count of making a false statement to the FBI and three counts of theft from interstate shipment. Simon was also convicted of one count of felon in possession of a firearm and three counts of theft from interstate shipment.
“We regularly use federal laws to prosecute persons who use guns and violence to commit robberies and thefts in our community,” said U.S. Attorney Bogden. “Not only were these defendants committing thefts and planning a violent robbery, but they were selling stolen controlled substances causing additional harm to the community.”
According to the court records and evidence introduced at trial, beginning no later than about October 2012 and continuing to April 8, 2013, Diaz and Simon broke into warehouses, storage facilities, and delivery vans, and stole designer handbags and controlled substances and sold the goods for their own financial gain. The defendants broke into warehouses by cutting through warehouse doors, and broke into delivery vans and other vehicles that had been left unsupervised in commercial parking lots. Between April 7 and April 8, 2013, Diaz, Simon and Garcia conspired to kidnap and rob a delivery van driver with a firearm in order to obtain control and possession of the van containing controlled substances. On April 8, Garcia falsely told FBI agents that he was driving a friend to apply for a job the morning of his arrest and that gloves and duct tape found in the car he was driving belonged to the registered owner of the vehicle. On April 8, Diaz falsely told the FBI that he had no knowledge of a Beretta 9mm firearm recovered that day from the trunk of his vehicle, when he knew that the firearm had been placed in the trunk to be used that day in the planned robbery and theft of the van driver.
This case was investigated by the FBI and the Las Vegas Metropolitan Police Department, and prosecuted by Assistant U.S. Attorneys Christina M. Brown and Daniel R. Schiess.
Martinsburg man charged in heroin deathRead the Press Release
MARTINSBURG, WEST VIRGINIA – Michael Jose Roberts, 62, of Martinsburg, appeared in federal court today for an Arraignment and Detention Hearing on charges that heroin sold by Roberts caused the death of a female victim, United States Attorney William J. Ihlenfeld, II, announced.
The female victim died after using heroin allegedly purchased from Roberts in Berkeley County, West Virginia in May 2014. Earlier this month, a federal grand jury returned an indictment charging Roberts with:
• One count of “Aiding and Abetting Distribution of Heroin – Death and Serious Bodily Injury,” for which he faces between twenty years and life in prison and a fine of up to $1,000,000.00, • One count of “Distribution of Heroin,” for which he faces up to twenty years in prison and a fine of up to $1,000,000.00, and
• One count of “Possession with Intent to Distribute Heroin,” for which he faces up to twenty years in prison and a fine of up to $1,000,000.00.
Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.Roberts is currently scheduled for trial on May 26, 2015.
Assistant U.S. Attorney Jarod Douglas is prosecuting the case on behalf of the government. The Eastern Panhandle Drug and Violent Crimes Task Force, a HIDTA-funded initiative, and the Berkeley County Sheriff’s Office are leading the investigation.
U.S. Magistrate Judge Robert W. Trumble presided.
Madison Man Sentenced for Cocaine DistributionRead the Press Release
Clevis Holmes, 31, from Madison, Illinois, was sentenced on April 17, 2015, in federal district court, in East St. Louis, Illinois, on one count of cocaine distribution, one count of heroin distribution, and one count of aiding and abetting the distribution of "crack" cocaine, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Holmes was sentenced to a 188 month prison term, 4 years of supervised release, fined $600, and ordered to pay a $300 special assessment. Court proceedings revealed that Holmes sold approximately 28 grams of cocaine on March 20, 2014, 10 grams of heroin on April 3, 2014, and 42 grams of "crack" cocaine on April 8, 2014, in East St. Louis, Illinois, at the direction and arrangement of ATF agents.
This case was investigated by the Bureau of Alcohol, Tobacco and Firearms (ATF) and prosecuted by Special Assistant United States Attorney Shane B. Kelbley.