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Friday 27 February 2015
Dental Practice Owner Charged with Health Care Fraud and Identity TheftRead the Press Release
ALEXANDRIA, Va. – Nazanien Ebrahimi, a/k/a “Nancy” Ebrahimi, 32, of Fairfax County, Virginia, was indicted by a federal grand jury on February 26, 2015, on charges of wire fraud, health care fraud, aggravated identity theft, and making false statements relating to health care matters.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after Ebrahimi’s initial appearance today in front of U.S. Magistrate Judge John F. Anderson.
If convicted, Ebrahimi faces a maximum penalty of 20 years in prison on each wire fraud count, 10 years in prison on each health care fraud count, a mandatory two-year consecutive sentence for each of the aggravated identity theft counts, and five years in prison on each count of making a false claim regarding health care matters. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors. Criminal indictments are only charges and not evidence of guilt. A defendant is presumed to be innocent until and unless proven guilty.
According to allegations in the indictment, Ebrahimi, a law school graduate, owned and controlled Dental Arts Group, which purported to provide administrative and consulting services to dental practices. Through her control of Dental Arts Group, Ebrahimi allegedly carried out a scheme to steal the identities of various individuals, including other dentists, and use their identities without their knowledge to open merchant accounts with consumer dental financing programs, including CareCredit. To gain access to these programs, Ebrahimi submitted false and misleading enrollment applications.
Once the fraudulent CareCredit merchant accounts were opened, Ebrahimi allegedly billed patients for charges that were inflated, never authorized, or never approved. For example, under one CareCredit merchant account that Ebrahimi opened without the victim’s knowledge, patients disputed nearly 50 percent of the total amount Ebrahimi charged for purported dental services. At the time, the dispute rate for all other CareCredit dental merchants was less than 1 percent. Furthermore, Ebrahimi allegedly submitted false CareCredit charge slips that purported to bear the signatures of patients.
The indictment further alleges that Ebrahimi defrauded Humana, a private health insurer, by submitting false and inflated insurance claims for dental services that were never rendered. Ebrahimi allegedly deposited the profits earned from her scheme in various bank accounts that she controlled. Finally, the indictment alleges that Ebrahimi manufactured, or attempted to manufacture, and destroy various patient records.
This case is being investigated by the FBI’s Washington Field Office. Special Assistant U.S. Attorney Kevin Lowell and Assistant U.S. Attorney Uzo Asonye are prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:15-cr-57.Court Sentences Prison Inmate to 8 Years Incarceration for Assault Against Another Prison InmateRead the Press Release
SACRAMENTO, Calif. — Thomas Roullier, 34, a former resident of Spokane, Washington, and an inmate at the Federal Correctional Institution at Herlong, California, ("FCI Herlong") was sentenced today by United States District Judge Kimberly J. Mueller to 8 years in prison for an assault resulting in serious bodily injury to another prison inmate, United States Attorney Benjamin B. Wagner announced. The Court also ordered the payment of $15,040.34 in restitution to reimburse the United States Bureau of Prisons for expenses incurred in providing medical treatment, transportation, and other services to the victim of the assault.
According to court documents, on April 26, 2012, Roullier, a Norteno gang member, committed the assault on the victim inmate, a Bulldog gang member, in a recreation area in the Special Housing Unit (SHU) within FCI Herlong. At the time of the assault, Roullier was one of four handcuffed prisoners (2 Norteno and 2 Bulldog gang members) who had just been escorted into the recreation area. The prison guard first removed the handcuffs from the two Norteno gang members. Before the guard could remove the handcuffs from the two Bulldog gang members, Roullier assaulted and severely beat the handcuffed victim. Within a very short time thereafter, a sufficient number of guards responded, entered the locked recreation area, and secured Roullier.
The victim suffered serious bodily injury, including displaced fractured bones in the face near his left cheek/sinus and a non-displaced fractured bone at the bottom of his left eye socket. The victim suffered extreme pain, trauma, bruises, headaches, and difficulty opening his mouth. The victim's fractured and sunken cheekbone near his left cheek/sinus had to be repaired by a physician specialist, who performed facial surgery to lift up the broken and sunken area of the victim's face."Judge Mueller's sentence of an additional eight years for the assault of another inmate sends a strong message that such crimes will not be tolerated,” said Acting FCI Herlong Warden G.J. Bissett. “Sentencing in cases that involve inmate on inmate assaults have a significant effect on the safe and orderly running of correctional facilities. The sentences imposed in the cases prosecuted by the United States Attorney's Office have helped to decrease the amount of inmate assaults that take place in a correctional environment, especially here at FCI Herlong."
This case was the product of an investigation by the United States Bureau of Prisons and the Federal Bureau of Investigation.Corporate CEO Admits Defrauding ShareholdersRead the Press Release
SAN DIEGO - Mark Lopez, former Chief Executive Officer of San Diego-based Unico, Inc., pleaded guilty in federal court today, admitting he defrauded shareholders in a sophisticated stock fraud scheme. Lopez entered his plea before District Court Judge Gonzalo P. Curiel to conspiring to commit securities fraud, and was ordered to return for sentencing on May 15, 2015.
According to court documents, from 2004 through June 2012, Lopez was the CEO of Unico, Inc., a San Diego-based holding company with mining interests in Utah. Because Unico’s stock was publicly traded, it was prohibited from issuing and transferring new shares of stock without having them registered with the U.S. Securities and Exchange Commission (“SEC”).
There are some narrow exemptions to this registration requirement, however, including “Section 3(a)(10)” of the Securities Act of 1933. Under Section 3(a)(10), a company such as Unico can issue and transfer exempt shares of its unregistered stock if: (a) the purpose is to settle a “bona fide debt;” and (b) the issuance is approved at a “fairness hearing” held by a court or other governmental authority.
Lopez admitted that beginning in or about December 2006, he agreed with co-conspirators to execute a scheme to defraud shareholders by deceptively using the Section 3(a)(10) exemption in order to issue and sell millions of unregistered shares of Unico stock, and then split the proceeds from the resulting sale. The scheme involved a $500,000 loan (or “convertible debenture”) made to Unico by a company called Outboard Investments. The terms of the debenture agreement (the “Outboard Debenture”) gave Outboard the right to seek repayment either in cash or in the form of Unico stock.
According to court documents, on December 1, 2006, Outboard assigned the debt to a company headquartered in the Turks & Caicos called Sequoia International, Inc. (“Sequoia”). After Unico’s default, as part of the conspiracy, on December 7, 2006, the conspirators caused Sequoia and Outboard to file a complaint against Unico in state court in Sarasota, Florida (a jurisdiction to which neither party had any connection).
The lawsuit was designed to give the appearance that Unico was contesting its liability under the Outboard Debenture, when in truth Defendant had already agreed to use the lawsuit as a way to issue unregistered shares. On the day of the filing, Lopez signed a settlement agreement on behalf of Unico that asked the court to permit the issuance of 350 million shares of Unico common stock to Sequoia. Lopez and the conspirators knowingly concealed from the state court the material fact that by so doing, Lopez had agreed to settle the $500,000 Outboard Debenture with Unico stock worth over $2.6 million. Based on these misrepresentations and omissions, the Florida court unwittingly approved the settlement agreement and allowed Unico to issue the shares to Sequoia. Defendant then secretly arranged for Sequoia to return over $1,067,000 in proceeds from the sale of this stock.
To continue the deception of shareholders and the public, Lopez signed and submitted to the SEC a Form 10-QSB (a publicly available quarterly report) as Unico’s CEO, according to court records. In that filing, Lopez falsely characterized Unico’s receipt of stock sale proceeds from Sequoia in order to deceive shareholders into believing that the Florida case was a bona fide lawsuit that was settled after a “fairness” determination.
U.S. Attorney Laura Duffy thanked the Securities and Exchange Commission for its assistance in the investigation and prosecution of Lopez’s complex securities fraud.
DEFENDANTS Case Number: 12CR5236-GPC Mark Lopez Age: 50 San Diego, California CHARGESCount 1: Conspiracy to Commit Securities Fraud, in violation of 18 U.S.C. § 1349.
INVESTIGATING AGENCIES
Maximum Penalties: 25 years’ imprisonment, $250,000 fine, $100 special assessment, restitution.Federal Bureau of Investigation
Convicted Child Sex Offender Sentenced to Life in Prison for Producing Child PornographyRead the Press Release
Jacksonville, Florida – United States District Judge Timothy J. Corrigan today sentenced Christopher Richard Cloonan (45, Jacksonville) to life in federal prison for using a minor child to produce images depicting child pornography. The Court also ordered Cloonan to serve a life term of supervised release and to forfeit his electronic media. Cloonan is a registered child sex offender, having been previously convicted of attempted sexual battery on a 6-year old child on November 18, 1991, in Charlotte County, Florida. He was arrested on March 12, 2014, and has remained in custody since that time.
According to court documents, in March 2014, an undercover officer in Washington, D.C. (the “UC”) posted an advertisement on an online website frequented by individuals who have a sexual interest in children. Cloonan responded to the ad and expressed interest and experience in sexual activity with a child. On March 11, 2014, while discussing sexual activity with children, Cloonan sent an email to the UC that read, “Yes…. It would be awesome to share together with like minded man, would be more awesome to see and share in person but there is WAY WAY to much hatred against too risk it. I am legit but cautious….”
On March 11, 2014, at 6:57 p.m., Cloonan sent the UC an email that indicated that he was alone with an infant child. Attached to the email were two images. Both images were produced by Cloonan and depicted an infant engaged in sexually explicit conduct. At 7:07 p.m., Cloonan sent the UC an email containing two additional images that depicted the same infant. Within hours, the FBI was able to identify the Internet protocol (IP) address used to send the images, and traced the Internet account to Cloonan.
On March 12, 2014, Cloonan and the UC continued their online communications. In several different emails, Cloonan discussed his fantasies about sex with children. He stated that “Society is coming down so hard on ‘child molesters’ etc now, we are in danger everyday as lovers of children are not seen as different from those who hurt and kill them.”
Later that day, FBI agents and detectives from the Jacksonville Sheriff’s Office executed a search warrant at Cloonan’s residence. Cloonan exited the residence holding his smart phone, and was placed under arrest.
Subsequent forensic analyses of Cloonan’s phone revealed that it contained at least 85 images of child pornography, most depicting infants and toddlers. Two of the images of the infant that were taken by Cloonan and sent to the UC were also present on the smart phone.
This case was investigated by the Federal Bureau of Investigation in Jacksonville, Washington, D.C., and Quantico, Virginia, the Jacksonville Sheriff’s Office, and the District of Columbia Metropolitan Police Department. It was prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Convicted Child Pornographer Who Targeted Daycare Attendees Sentenced to 40 Years in PrisonRead the Press Release
SAN DIEGO – William Michael Howard was sentenced today to 40 years in prison for creating sexually explicit videos of three girls - ages 3, 5 and 7 - who attended a San Diego daycare operated by his girlfriend’s family.
Howard, 24, pleaded guilty in September 2014 to three counts of sexual exploitation of a minor. In his plea agreement, he admitted videotaping each girl’s private parts in three separate instances in 2013 and early 2014. One video was recorded when the 7-year-old was in his care. In the videos, Howard’s voice can be heard or one of his hands is seen removing a child’s clothing and posing her for the camera.
U.S. District Judge William Q. Hayes also ordered a lifetime of supervision following his release.
DEFENDANTS Case Number: 14CR1430 William Michael Howard Age: 24 San Diego, California CHARGESCounts 1-3: Title 18, United States Code, Section 2251(a) – Sexual Exploitation of a Minor; Maximum Penalty 30 years in prison per count, and mandatory minimum 15 years per count; Maximum $250,000 fine.
INVESTIGATING AGENCIESSan Diego Police Department
Internet Crimes Against Children Task ForceColombian Man Sentenced to More Than Eleven Years for His Role in Cocaine Importation ConspiracyRead the Press Release
Tampa, Florida – U.S. District Judge Susan C. Bucklew today sentenced Richard Mosquera Mosquera (44, Colombia, South America) to 11 years and 3 months in federal prison for conspiring with others to distribute five kilograms or more of cocaine, knowing and intending that it would be unlawfully imported into the United States. He pleaded guilty on November 25, 2014.
According to court documents, on multiple occasions between 2009 and 2012, Mosquera worked with his co-defendant, Anderson Bryan Lever, and others to smuggle cocaine. Lever dispatched cocaine-laden vessels from San Andres Island, Colombia and Mosquera received them in Honduras. On each occasion, Mosquera received the cocaine and provided bales of United States currency (containing as much as $500,000 each) to the mariners who had just smuggled the cocaine. The mariners then smuggled the money back to San Andres Island, and Mosquera transferred the cocaine to others for eventual unlawful importation into the United States.
Mosquera was arrested in Colombia and subsequently extradited to the United States.
This case was investigated by the Panama Express Strike Force, a standing Organized Crime Drug Enforcement Task Force (OCDETF) comprised of agents and analysts from the Federal Bureau of Investigation, the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Drug Enforcement Administration, the United States Coast Guard Investigative Service, the Naval Criminal Investigative Service, and U.S. Southern Command's Joint Interagency Task Force South. The principal mission of the OCDETF Program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply. The case was prosecuted by Assistant United States Attorney Christopher F. Murray.
Business Man Enters Pleas in Grant Theft CaseRead the Press Release
Contact Person: T. DeWayne Pearson (803) 929-3000
Columbia, South Carolina ---- United States Attorney Bill Nettles stated that Brian Morin, age 47 of Greenville, SC, was sentenced in connection with theft of government funds in violation of Title 18, United States Code, Section 641. Morin was convicted in connection with the theft of grant funds administered to Morin’s former company, Innegrity LLC. According to facts presented during the guilty plea hearing, Morin was awarded a research grant from the National Science Foundation. As a grant condition, Morin was responsible for submitting grant reports certifying the hours that the company worked on grant related activities. An investigation revealed that the company’s internal records did not match the hours Morin certified to the National Science Foundation. Morin was sentenced to three years’ probation and a fine of $5,000.
National Science Foundation Inspector General Allison Lerner said, “This individual significantly inflated the amount of time and effort he and other company personnel spent on a Small Business Innovation Research Program award so that he could continue to fraudulently receive National Science Foundation funds intended to conduct innovative research. The strong support of the U.S. Attorney’s office was instrumental in leading to today’s sentencing, which can serve as a deterrent to anyone who seeks to lie to obtain scarce research dollars”. The case was prosecuted by Assistant United States Attorneys T. DeWayne Pearson of the Columbia office and Jamie Lea Schoen of the Greenville office.#####
Buffalo Man Sentenced on Gun ChargeRead 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 Alexy Diaz, 31, of Buffalo, NY, who was convicted of possession of a firearm by an armed career criminal, was sentenced to 100 months in prison by U.S. District Judge Richard J. Arcara.Assistant U.S. Attorney George C. Burgasser, who handled the case, stated that on November 22, 2011, the defendant possessed a firearm at 1160 Kensington Avenue in Buffalo. Diaz was previously convicted of three violent felony or serious drug offenses in state court making him an armed career criminal.
The sentencing is the culmination of an investigation on the part of the Federal Bureau of Investigation’s Safe Streets Task Force.
Buffalo Man Sentenced for Possession of Child Pornography and Violating Supervised Release for the Second TimeRead 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 Michael Kemp, 37, of Buffalo, NY, who was convicted of possession of child pornography, was sentenced to 10 years in prison by U.S. District Court Judge Richard J. Arcara. In addition, the defendant was sentenced to four months in prison for violating his supervised release.
Assistant U.S. Attorney Marie P. Grisanti, who is handling the case, stated that on October 15, 2013, Kemp’s U.S. probation officer found a computer and hard drive hidden between the defendant’s mattress and box spring in his bedroom. The computer contained over 50 images and eight videos of child pornography. The defendant was on supervised release following his July 2008 release from prison for a previous conviction of possession of child pornography.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The sentencing is the culmination of an investigation on the part of officers of the United States Probation Department, under the direction of Anthony SanGiacomo, Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero, and the Regional Computer Forensic Laboratory.
Buffalo Man Indicted on Drug ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5017
FAX: (716) 551-3051BUFFALO, N.Y. – U.S. Attorney William J. Hochul, Jr. announced today that a federal grand jury has returned an indictment charging Aaron Hicks, a/k/a Boog, a/k/a Boogy, 30, of Buffalo, NY, with conspiracy to distribute five kilograms or more of cocaine. The charge carries a mandatory minimum of 10 years in prison and a maximum of life.
Assistant U.S. Attorney Wei Xiang, who is handling the case, stated that according to the indictment, between 2010 and 2014, the defendant was involved, along with others, in the distribution of cocaine on the East Side of Buffalo. In a related case, in July 2014, 17 members and associates of the Schuele Boys were also arrested and charged with conspiracy to distribute cocaine.
The indictment is the culmination of an investigation on the part of the Safe Streets Task Force of the Federal Bureau of Investigation, the Buffalo Police Department, under the direction of Commissioner Daniel Derenda, and Special Agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. hunt, Special Agent in Charge.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Buffalo Man Indicted on Drug and Money Structuring ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that a federal grand jury has returned an indictment charging Brandon Washington, 31, of Buffalo, NY, with possession with intent to distribute cocaine and money structuring. The charges carry a mandatory minimum penalty of 10 years in prison, a maximum of life, and a $10,000,000 fine.
Assistant U.S. Attorney John M. Alsup, who is handling the case, stated that according to the indictment, the defendant was arrested as a result of a long term investigation into cocaine trafficking in the Buffalo area. The indictment further states that Washington deposited large amounts of cash into accounts with Bank of America. But the way in which the defendant structured the deposits caused the financial institution to fail to file proper financial reports.
The defendant was arraigned this afternoon before U.S. Magistrate Judge H. Kenneth Schroeder, Jr. Hill. He is being held pending a detention hearing on March 6, 2015 and 2:00 p.m.
The indictment is the culmination of an investigation on the part of Special Agents of the Drug Enforcement Administration, under the direction of James J. Hunt, Special Agent in Charge, New York Field Division and the Federal Bureau of Investigation.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Buffalo Man Arrested, Charged with Being Involved in Two Murders and Four Other ShootingsRead 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 Cebrinn Hill, 25, of Buffalo, NY, was arrested and charged by criminal complaint with aiding and abetting and discharge of a firearm that cause the death of two individuals. The charge carries a maximum penalty of life penalty of life in prison and a $250,000 fine.
Assistant U.S. Attorney John M. Alsup, who is handling the case, stated that according to the complaint, on April 17, 2006, Hill was part of a group of individuals, including 10th Street Gang members and associates, who shot and killed two victims and wounded four others. Brandon MacDonald and Darinell Young were murdered on Pennsylvania Street on Buffalo’s West Side. The complaint further states that the shootings occurred in retaliation for the shooting of a 10th Street Gang member the previous day.
The defendant made an initial appearance this afternoon before U.S. Magistrate Judge H. Kenneth Schroeder, Jr. Hill is being held pending a detention hearing on March 3, 2015.
The criminal complaint is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, the New York State Police, under the direction of Major Michael Cerretto, the Buffalo Police Department, under the direction of Commissioner Daniel Derenda, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Delano A. Reid.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Brooklyn Doctor Sentenced in Manhattan Federal Court to One Year and One Day in Prison for Role in Auto Insurance Fraud SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that TATYANA GABINSKAYA was sentenced today in Manhattan federal court to one year and one day in prison in connection with her involvement in the largest single no-fault automobile insurance fraud scheme ever charged. She was sentenced by U.S. District Judge J. Paul Oetken, who presided over the two-week trial that resulted in GABINSKAYA’s conviction in October 2014.
Manhattan U.S. Attorney Preet Bharara said: “Tatyana Gabinskaya was one of the linchpins in a scheme that defrauded insurers on an unprecedented scale. At the heart of her deception was her repeated lie that she owned and operated a medical clinic she did not in fact own or operate that billed for numerous fraudulent claims. That has proven to be a prescription for prison.”
According to the Indictment, other documents filed in Manhattan federal court, evidence admitted at trial, and statements made at various proceedings in this case, including today’s sentencing:
Under New York State Law, every vehicle registered in the State is required to have no-fault automobile insurance, which enables the driver and passengers of a registered and insured vehicle to obtain benefits of up to $50,000 per person for injuries sustained in an automobile accident, regardless of fault (the “No-Fault Law”). The No-Fault Law requires prompt payment for medical treatment, thereby obviating the need for claimants to file personal injury lawsuits in order to be reimbursed. Under the No-Fault Law, patients can assign their right to reimbursement from an insurance company to others, including medical clinics that provide treatment for their injuries. New York State Law also requires that all medical clinics in the State be incorporated, owned, operated, and/or controlled by a licensed medical practitioner in order to be eligible for reimbursement under the No-Fault Law. Insurance companies will not honor claims for medical treatments from a medical clinic that is not actually owned, operated, and controlled by a licensed medical practitioner.
In order to mislead New York authorities and private insurers, the true owners of these medical clinics paid licensed doctors to use their licenses to incorporate the professional corporations through which the true owners billed private insurers millions of dollars for medical treatments and tests, many of which were not medically necessary. GABINSKAYA was the stated owner of one such clinic that provided MRIs and other radiology tests, although the clinic was, in reality, owned by her co-defendants Mikhail Zemlyansky and Michael Danilovich. In addition, GABINSKAYA was the stated owner of six other medical professional corporations, including five incorporated in the span of approximately one year. When interviewed under oath about her role at the clinic controlled by Zemlyansky and Danilovich, GABINSKAYA repeatedly lied to deceive the insurers and induce them into paying claims that were not eligible for reimbursement.
In addition to the prison term, GABINSKAYA, 60, of Brooklyn, New York, was also sentenced to three years of supervised release, and ordered to forfeit $69,384, and to pay restitution to the victims of her crimes to be determined. She is the 32nd defendant convicted in this case following arrests on February 29, 2012, as part of an indictment that charged 36 defendants with conspiracy to commit mail fraud and health care fraud and charging some defendants with racketeering and money laundering.
U.S. Attorney Bharara thanked the Federal Bureau of Investigation and the New York City Police Department for their continued outstanding work in this investigation. He also thanked the National Insurance Crime Bureau for its assistance.
The case is being prosecuted by the Office’s Violent and Organized Crime Unit. Assistant U.S. Attorneys Amanda Kramer, Janis Echenberg, Daniel S. Goldman, Edward Y. Kim, Daniel S. Noble, Rebecca Mermelstein, and Joshua Naftalis are in charge of the prosecution. Assistant U.S. Attorney Carolina Fornos is in charge of the forfeiture aspects of the case.
Boston Street Gang Members Plead Guilty to Sex Trafficking of MinorsRead the Press Release
BOSTON – Two Boston men, alleged to be members of Boston’s Thetford Avenue Buffalos, have pleaded guilty in U.S. District Court to sex trafficking four minors.
Today, Anthony Pledger, also known as “Polo,” 27, pleaded guilty to two counts of sex trafficking of two minors before United States District Judge William G. Young. On Feb. 11, 2015, a co-defendant, Miriam Kizzie, also known as “Keys,” 21, pleaded guilty to two counts of sex trafficking of two minors before Judge Young. Pledger and Kizzie were charged in the same indictment in February 2014.
At the change of plea hearing today, Pledger admitted that, in October 2013, he brought two minors, aged 16 and 15 at the time, from Massachusetts to Providence, Rhode Island, intending to have them engage in prostitution. The minors were rescued by Rhode Island and Massachusetts police officers before any prostitution occurred.
At the change of plea hearing on Feb. 11, 2015, Kizzie admitted that, for approximately a week in July 2013, he caused two different minors, aged 14 and 15, to be advertised online for prostitution and engage in prostitution primarily in Dorchester, Mass.
According to documents filed with the court, both Pledger and Kizzie were alleged to be members of the Thetford Avenue Buffalos, a local Boston street gang.
Pursuant to a proposed binding plea agreement, Pledger faces a mandatory sentencing range of 120 months to 204 months in prison, to be followed by five years of supervised release. Also pursuant to a proposed binding plea agreement, Kizzie faces a mandatory sentencing range of 135 to 153 months, to be followed by five years of supervised release. If the Court accepts the plea agreements, he will determine the sentences within those ranges. The sentencing hearing for Kizzie has been set for May 4, 2015 at 2:00 p.m. The sentencing hearing for Pledger has been set for May 28, 2015 at 2:00 p.m.
U.S. Attorney Carmen M. Ortiz; Bruce M. Foucart, Special Agent in Charge of U.S. Immigration and Custom’s Enforcement, Homeland Security Investigations in Boston; and Boston Police Commissioner William Evans made the announcement today. The case was also investigated by the Rhode Island State Police, Massachusetts State Police, and the Providence, Brockton, Dedham and Brookline Police Departments. Significant assistance was provided by the Rhode Island Attorney General’s Office, and Plymouth, Middlesex and Suffolk County District Attorney’s Offices. The case is being prosecuted by Assistant U.S. Attorneys Amy Harman Burkart and Timothy E. Moran of Ortiz’s Civil Rights Enforcement Team.
Members of the public who have questions, concerns or information regarding this case should call 617-748-3274, and messages will be promptly returned.
Billie Preston Imprisoned for Embezzling from Williston EmployerRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that Billie Preston, 42, a former resident of Monkton who now lives in South Burlington, was sentenced today in United States District Court in Burlington to 21 months of imprisonment following her guilty plea to a charge of wire fraud. Chief U.S. District Judge Christina Reiss ordered that Preston serve three years of supervised release following completion of her prison term and pay restitution of slightly more than $86,000. The court directed Preston to surrender to the Bureau of Prisons on April 8 to begin serving her sentence.
According to court records, between approximately November 2011 and late April 2014, Preston was employed as a bookkeeper by Endyne, Inc., an environmental testing laboratory located in Williston. Preston handled the company's payroll and accounts receivables and payables.
Beginning in about January 2012 and continuing through the end of April 2014, Preston embezzled about $84,000 from Endyne, primarily by falsifying payroll records to cause the firm to issue her paychecks and make electronic funds transfers in excess of her authorized salary. Preston also made electronic transfers of company funds to pay her personal bills.
In sentencing Preston to prison, Judge Reiss noted that in 2010, Preston had pled guilty in state court to embezzling from another former employer and was serving probation as part of a deferred sentence when she stole from Endyne.
This case was investigated by the Williston Police Department and the Federal Bureau of Investigation.
Preston is represented by Robert Kaplan. The prosecutor is Assistant U.S. Attorney Gregory Waples.
Baptist Health Medical Center North Little Rock Enters into Settlement Agreement Under False Claims ActRead the Press Release
LITTLE ROCK – Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, announced that, the government, acting through the United States Department of Justice and on behalf of the Office of Inspector General (OIG) of the Department of Health and Human Services (HHS) (collectively the "United States"), and Baptist Health Medical Center North Little Rock (BHMC-NLR) entered into a settlement agreement under the False Claims Act. BHMC-NLR agreed to pay $2,700,000 to resolve its liability.
BHMC-NLR is a 248-bed hospital in North Little Rock, Arkansas. OIG's Office of Audit Services (OAS) referred the preliminary results of an audit finding that BHMC-NLR submitted improper short stay claims to the U.S. Attorney's Office for the Eastern District of Arkansas.
The United States contended that it had certain civil claims against BHMC-NLR arising from claims BHMC-NLR submitted between January 1, 2008 and December 31, 2009 to Medicare for certain "short stay" inpatient patient encounters, which were hospital stays that lasted less than two (2) nights at BHMC-NLR. BHMC-NLR allegedly submitted short stay inpatient claims as a result of: (a) improper orders for inpatient status converted from outpatient status; (b) improper inpatient standing orders for admission without proper involvement of a physician; and, (c) improper orders for inpatient status following scheduled outpatient procedures.
In exchange for a release of its exclusion liability under section 1128(b)(7) of the Social Security Act, BHMC-NLR agreed to enter into a five year corporate integrity agreement (CIA). Among other requirements, the CIA requires both the North Little Rock hospital and its sister hospital in downtown Little Rock, Arkansas to be subject to independent annual claims reviews.
The investigation was conducted by the Office of Inspector General of the Department of Health and Human Services, Office of Audit Services and Office of Investigations.
Avon Lake Man Convicted of Crimes Related to Credit Union CollapseRead the Press Release
An Avon Lake man was convicted by a jury on 27 criminal counts for illegally receiving more than $10 million from the St. Paul Croatian Federal Credit Union, actions which played a role in the credit union’s collapse, law enforcement officials said.
Gezim Selgjekaj, 43, was convicted on one count of conspiracy, five counts of bank bribery, six counts of money laundering and 15 counts of financial institution fraud. He was acquitted on a single count of bank bribery following a trial before U.S. District Judge Christopher Boyko.
Selgjekai is scheduled to be sentenced May 26.
St. Paul Croatian Federal Credit Union (SPCFCU) was placed into conservatorship in April 2010, when it served 5,400 members and was believed to have assets of more than $238 million. The National Credit Union Association discontinued operation of SPCFCU when it was determined to be insolvent, making it the largest credit-union failure in American history.
Selgjekaj owned, operated and controlled, in whole or in part, several business entities, which were created either primarily as “safe havens” for credit union proceeds or that performed little or no legitimate business despite receiving loan proceeds intended for Selgjekaj’s “business” ventures, according to the indictment.
Those business included: Jimmy’s Trucking; Top Quality Produce; RGV Enterprises; Alba Logistics; GPA Transport; J&F Properties; Lake County Farmers Market; Albkos Properties LLC; G&M Truck Repairs; Produce, Inc.; Fresh Fruit; Fresh Start Co.; East Side Farmers Market; RGA Enterprises, LLC and Ristorante Luciano, according to the indictment.
From 2003 through April 2010, Selgjekaj conspired with Anthony Raguz, who at the times was chief operating officer at SPCFCU, and others, to defraud the credit union, according to the indictment.
Selgjekaj submitted false and fraudulent loan applications to Raguz, including submitting loan requests in nominee’s names when Selgjekaj’s aggregate loan balances reached a level that could have drawn attention from auditors or members of the credit union’s board, according to the indictment.From March 2003 through July 2004, for example, Selgjekaj received approximately $5 million in fraudulent loan proceeds from SPCFCU. Selgjekaj received another $3.6 million between 2004 and 2008, despite the fact that Selgjekaj was in federal prison for unrelated conduct. Even after defaulting on the $8.6 million in loans, Selgjekaj received an additional $2.9 million in loans from SPCFCU between 2008 and 2010, according to the indictment.
To influence and reward Raquz for providing him with the fraudulently obtained money from SPCFCU, Selgjekaj gave Raguz $40,000 in cash and five checks totaling $66,000, according to the indictment.
Overall, Selgjekaj’s conduct resulted in a loss to the credit union of more than $10 million, according to the indictment.
To date, more than 20 people have been convicted of criminal activity related to the credit union. Raguz was sentenced to 14 years in prison and ordered to repay $72.5 million last year.
This case was prosecuted by Assistant United States Attorneys Bridget M. Brennan and Robert W. Kern following an investigation by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigations.
Ashburn Businessman Pleads Guilty to Nearly $1 Million Short Sale Mortgage Fraud ConspiracyRead the Press Release
ALEXANDRIA, Va. – Danny Zhao, 36, of Ashburn, Virginia, pleaded guilty today to conspiracy to commit bank fraud.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, and Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after the plea was accepted by U.S. District Judge Leonie M. Brinkema.
Zhao faces a maximum period of five years of imprisonment when he is sentenced on May 15, 2015. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
According to the statement of facts filed along with the plea agreement, Zhao acted as a realtor in fraudulent real estate short sale transactions involving Legacy Investment Group, a company owned by his wife. Zhao fraudulently induced mortgage lenders to approve sales of property for amounts less than what was owed. In order to do so, Zhao forged the signatures and initials of homeowners in mortgage documents. Zhao also sent false hardship letters and financial statements to lenders. Moreover, Zhao failed to disclose material information about his relationship to the owner of Legacy and made misleading representations that the short sales would be arm’s length transactions.
Zhao participated in six fraudulent short sale transactions resulting in mortgage lenders losses of approximately $924,529. Zhao and his family profited approximately $200,000.
This case was investigated by the FBI’s Washington Field Office. Assistant United States Attorney Uzo Asonye is prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:15CR51.Armed Methamphetamine Dealer Sentenced to More Than 13 YearsRead the Press Release
Tampa, Florida – U.S. District Judge Charlene Edwards Honeywell today sentenced Carlos Sanchez (29, Lakeland) to 13 years and 4 months in federal prison for possessing with intent to distribute 50 grams or more of methamphetamine, possessing a firearm and ammunition as a previously convicted felon, and possessing a firearm in furtherance of a drug trafficking crime. He pleaded guilty on December 1, 2014.
According to court documents, on March 9, 2014, officers from the Lakeland Police Department (LPD) were dispatched to the Best Motel in Lakeland, where Sanchez had reportedly pointed a firearm at someone. After making contact with Sanchez, an LPD canine alerted to an odor of narcotics on the exterior of his car. A subsequent search of the vehicle yielded a loaded Smith and Wesson .357 caliber revolver and more than 134 grams of crystal methamphetamine. Sanchez was previously convicted of multiple felonies in Polk County. As a convicted felon, he is prohibited from possessing firearms and ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Lakeland Police Department. It is being prosecuted by Assistant United States Attorney Christopher F. Murray. It is another example of ATF’s Frontline strategy to reduce violent crimes in communities.
Armed Drug Trafficker Sentenced on Drug, Firearms ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Luis Abril, 31, of Rochester, NY, who was convicted of conspiracy to possess with intent to distribute and to distribute 28 grams or more of crack cocaine and 100 grams or more of heroin, and possession of firearms in furtherance of a drug trafficking crime, was sentenced to 10 years in prison and five years supervised release by U.S. District Judge Charles J. Siragusa. The defendant was also ordered to forfeit two handguns and numerous rounds of ammunition seized during the investigation.
Assistant U.S. Attorney Robert A. Marangola, who handled the case, stated that Abril was a member of a Rochester-based drug conspiracy led by Raymond Collazo, in which large quantities of crack cocaine and heroin were processed, packaged and resold in various quantities in Rochester. Abril and Collazo utilized multiple locations, including 617 Ridgeway Avenue in Rochester to store, process and distribute the narcotics, and armed themselves while doing so.
On April 24, 2014, Abril, Collazo and others were arrested following the execution of multiple search warrants in Rochester, as well as Collazo’s residence in Orlando, Florida. Abril and Collazo were taken into custody at 617 Ridgeway Avenue, where officers seized over 12 grams of cocaine packaged for sale, 200 grams of heroin, three loaded handguns, one of which was stolen, dozens of rounds of ammunition, $2,466 in U.S. currency, and paraphernalia for processing, packaging, and distributing cocaine and heroin.
Charges are pending against Collazo. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The sentencing is the culmination of an investigation by the Organized Crime Drug Enforcement Task Force, and included involvement by the part of Rochester Police Department, under the direction of Chief Michael Ciminelli, Special Agents of the Federal Bureau of Investigation, Special Agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent in Charge Delano A. Reid, New York Field Division, Special Agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Division, and the Monroe County District Attorney’s Office, under the direction of Sandra Doorley.
Arizona Couple Sentenced to Prison for Large Load of Heroin and MethamphetamineRead the Press Release
BOISE – Jess Ramirez-Orta, 27, of Phoenix, Arizona, was sentenced today to eight years in prison for possession with intent to distribute heroin and methamphetamine, U.S. Attorney Wendy J. Olson announced. Ramirez-Orta’s girlfriend and co-defendant, Marina Morales, 24, also of Phoenix, Arizona, was sentenced to three years in prison after pleading guilty to possession with intent to distribute heroin and methamphetamine. United States District Judge Edward J. Lodge also ordered Ramirez-Orta and Morales to forfeit $150,000 in cash proceeds. Ramirez-Orta was ordered to serve five years of supervised release, while Morales was ordered to serve three years of supervised release.
According to the court documents, Ramirez-Orta and Morales agreed to transport 5.3 pounds of heroin and 4.2 pounds of methamphetamine from Phoenix, Arizona to Seattle, Washington. As the couple was passing through Twin Falls, Idaho, they were stopped for driving 87 miles per hour in a 60 miles per hour zone. Neither the driver, Ramirez-Orta, nor the passenger, Morales, had a valid driver’s license. The heroin and methamphetamine was discovered in the trunk of the rental car they were driving. Morales had no prior felony convictions, while Ramirez-Orta had previously been convicted of Burglary and Felony Assault. Ramirez-Orta was on felony probation at the time of his arrest in Idaho.
The case was investigated by the Twin Falls County Sheriff’s Office and the Drug Enforcement Administration.
Ansonia Man Admits Trafficking Prescription NarcoticsRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JAMES COSTANZO, 37, of Ansonia, pleaded guilty today in Bridgeport federal court to trafficking prescription narcotics.
According to court documents and statements made in court, in May 2013, the Drug Enforcement Administration’s New Haven Tactical Diversion Squad and the Ansonia Police Department initiated an investigation into COSTANZO, who had been identified as an illegal distributor of narcotic pharmaceuticals. The investigation, which included multiple controlled purchases of oxycodone and the use of electronic surveillance, revealed that COSTANZO sold prescription narcotics to numerous customers from his Dwight Street residence. The investigation further revealed that Brian Earl of North Haven supplied COSTANZO with large quantities of oxycodone and other prescription narcotics, and also sold drugs to his own customers.
At the time of his arrest on January 23, 2014, COSTANZO possessed a 9mm handgun that was loaded with hollow-point ammunition, and $439 in cash. A subsequent search of his residence revealed approximately 600 oxycodone pills, four firearms, ammunition, approximately $5,500 in cash, and more than 50 stored-value cards.
In pleading guilty, COSTANZO admitted that he used more than $72,000 in funds derived from his illegal drug enterprise to purchase a residence located at 85 Dwight Street.
COSTANZO pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, oxycodone and oxymorphone, which carries a maximum term of imprisonment of 20 years, and one count of knowingly engaging in a monetary transaction involving criminally derived property, which carries a maximum term of imprisonment of 10 years.
As part of his plea agreement, COSTANZO has agreed to forfeit the 85 Dwight Street property, a residence located at 21 Winchester Street in Waterbury, a 2005 Mercedes Benz ML350, a 2000 Ford F150, and approximately $42,613.
COSTANZO has been detained since his arrest. He is scheduled to be sentenced by Senior U.S. District Judge Warren E. Eginton on May 22, 2015.
On February 17, 2015, Brian Earl pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, oxycodone and oxymorphone. He is scheduled to be sentenced on May 12, 2015.
This investigation has been conducted by the DEA’s New Haven Tactical Diversion Squad, the Ansonia Police Department and the Fairfield Police Department. The case is being prosecuted by Assistant U.S. Attorneys David X. Sullivan and Michael E. Runowicz.
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Tom Carson
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[email protected]Annapolis Woman Sentenced to 3 Years in Prison for Treating Patients While Fraudulently Posing as A Physician’s AssistantRead the Press Release
Baltimore, Maryland - U.S. District Judge Richard D. Bennett sentenced Shawna Michelle Gunter, age 37, of Annapolis, Maryland, late yesterday to three years in prison followed by three years of supervised release, which includes six months of home detention with electronic monitoring, for wire fraud and aggravated identity theft in connection with a scheme to pose as a physician’s assistant to obtain employment, diagnose and treat 137 infants and children, and write over 400 prescriptions, all without a medical license. Judge Bennett also entered an order that Gunter pay restitution of $53,530.39.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Lt. Colonel Anthony C. Satchell, Acting Superintendent of the Maryland State Police; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Special Agent in Charge Nicholas DiGiulio, Office of Investigations, Office of Inspector General of the Department of Health and Human Services; and Secretary-designee Mark Belton of the Maryland Department of Natural Resources.
“Shawna Michelle Gunter fraudulently posed as a licensed physician’s assistant, treating patients and writing prescriptions, although she had no medical training,” said U.S. Attorney Rod J. Rosenstein.
According to her plea agreement, in June 2013, Gunter worked as a surgical assistant in a doctor’s office in Maryland. She told the doctor that she needed a $7,800 loan for emergency repairs to her septic system, when in fact she was remodeling her boyfriend’s house. Despite receiving this money, on June 21, 2013, Gunter stole a check from the doctor and forged the doctor’s signature on the check for $14,400. When confronted, she admitted the theft and was fired. These funds, totaling $22,200, have not been repaid.
Gunter searched for another job and learned that a prior acquaintance, a pediatrician who had offices in Centreville and Chestertown, Maryland, was looking for a physician’s assistant. Gunter falsely told the doctor that she had just graduated from Howard University with a degree as a physician’s assistant. Gunter faxed a false resume to the doctor. The doctor hired Gunter with the understanding that she would provide documentation of her education, Maryland physician assistant’s license and DEA certification reflecting her authority to issue prescriptions.
Gunter began work for the pediatrician as a physician’s assistant on July 5, 2013. She was immediately asked for the documentation. Knowing that she was not licensed as a physician’s assistant in Maryland, Gunter provided a forged physician’s assistant certificate bearing the license number of an actual physician’s assistant, as well as an altered copy of that individual’s DEA controlled substance registration certificate. She also provided a fabricated diploma, purportedly from Howard University.
Gunter began seeing pediatric patients without direct supervision on August 18, 2013. From August 19 to 29, Gunter diagnosed and treated 137 infants and children, including for sick visits, ADHD follow-ups, newborn visits and routine physicals. During this time, Gunter issued over 400 prescriptions for controlled substances.
Gunter’s provision of unlicensed and unqualified medical care resulted in the pediatrician’s practice unwittingly submitting hundreds of false claims for Medicaid coverage, and the payment of $19,668.19 in fees on those false claims.
United States Attorney Rod J. Rosenstein praised the Maryland State Police, HSI Baltimore, Department of Health and Human Services OIG and Maryland Natural Resources Police for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Tamera L. Fine and Zachary A. Myers, who prosecuted the case.
Thursday 26 February 2015
Wisconsin Man Sentenced to over 19 Years on Child Exploitation ChargesRead the Press Release
A man who transported a minor across state lines with the intent to engage in criminal sexual activity was sentenced February 24, 2015, to over 19 years in federal prison.
Christopher Heath-Lowther, age 30, of Platteville, Wisconsin, received the sentence after a November 3, 2014, guilty plea to one count of transporting a minor across a state line with intent to engage in criminal sexual activity and one count of traveling across a state line for the purpose of engaging in illicit sexual conduct. At the guilty plea hearing, Heath-Lowther admitted that, between December 2013 and February 2014, he traveled from Wisconsin to Iowa to meet a 14-year-old female and transported her to Wisconsin for the purpose of engaging in sex acts with her.
Heath-Lowther was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Heath-Lowther was sentenced to 235 months’ imprisonment. A special assessment of $200 was imposed, and Heath-Lowther must also serve a 10-year term of supervised release. He must comply with all sex offender registration and public notification requirements.
This case was prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Federal Bureau of Investigation, the Platteville, Wisconsin, Police Department, and the Maquoketa Police Department.
This case was brought as part of Project Safe Childhood (PSC), 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, PSC 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 14-1014.
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Washington State Business Owner Convicted of Failing to Pay Employment TaxesRead the Press Release
A Burbank, Washington, woman was convicted by a jury yesterday after a five-day trial in the U.S. District Court in the Eastern District of Washington located in Spokane, Washington, of willfully failing to pay more than approximately $2.6 million in federal payroll taxes withheld from her employees, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney Michael C. Ormsby of the Eastern District of Washington.
“Employers who willfully fail to timely collect, account for and deposit employment taxes are, quite simply, stealing from their employees and the U.S. Treasury,” said Principal Deputy Assistant Attorney General Ciraolo. “Yesterday’s verdict sends a clear message to those individuals who view this obligation as optional – you will be investigated and prosecuted to the fullest extent of the law.”
According to the evidence introduced at trial and other documents filed in the case, Maria Elizabeth Townsend was the president and majority owner of Townsend Controls Inc. (TCI), an electrical contractor in Pasco, Washington. The majority of TCI’s employees were members of Local 112 of the International Brotherhood of Electrical Workers (Local 112). From at least April 1, 2007, through Sept. 30, 2009, Townsend withheld employment taxes from the wages of the members of Local 112 that TCI employed as well as its other non-union employees. She willfully failed, however, to pay those taxes to the Internal Revenue Service (IRS). Instead of paying the withheld taxes, Townsend purchased several automobiles and made large disbursements of corporate funds to her family members.
Townsend faces a statutory maximum sentence of five years in prison and a $250,000 fine for each count of failing to pay over employment taxes. Sentencing is scheduled for June 4.
Principal Deputy Assistant Attorney General Ciraolo and U.S. Attorney Ormsby commended the special agents of IRS-Criminal Investigation who investigated the case, as well as Assistant U.S. Attorney George J. C. Jacobs III and Trial Attorney Lisa L. Bellamy of the Tax Division, who are prosecuting the case.
Walthill Man Sentenced for Habitual Domestic ViolenceRead the Press Release
United States Attorney Deborah R. Gilg announced today that Terry L. Harlan, age 52 of Walthill, Nebraska, was sentenced for his conviction for habitual domestic violence. Harlan was found guilty following a jury trial in November of 2014. On February 26th, Senior United States District Court Judge Lyle E. Strom sentenced Harlan to 41 months of imprisonment to be followed by three years of supervised release.
On March 7, 2014, Harlan and his girlfriend were at Harlan’s residence on the Omaha Indian Reservation. Harlan became angry with his girlfriend. He pushed her into a closet, pulled her hair with one hand while he punched her about the head and face with his other hand. When the girlfriend attempted to leave, Harlan cornered her by the door, punched her several more times, and kicked her while she was on the floor. The girlfriend escaped the residence after Harlan fell asleep and ultimately was able to flag down a police officer.
This case was investigated by the Federal Bureau of Investigation.
Utica Woman Convicted on Charges of Health Care FraudRead the Press Release
SYRACUSE, NEW YORK - United States Attorney Richard S. Hartunian announced today the conviction of a Utica woman on charges of health care fraud.
BONNIE MEISLIN, age 45, of Utica, was found guilty on February 25, 2015 following a jury trial in federal court in Utica. MEISLIN was employed at Upstate Pain Medicine, which had medical offices at 59 South First Street, Fulton, New York and 287 Genesee Street, Utica, New York. Upstate Pain Medicine was owned by Mahesh Kuthuru, M.D. Following a six day trial, MEISLIN was found guilty on 23 counts of health care fraud and 1 count of conspiring with Kuthuru to send false and fraudulent billings to Medicare. In 2009, Kuthuru had moved to Las Vegas where he opened a medical practice known as Desert Pain Management. Kuthuru began to spend the majority of his time in Las Vegas and returning to his Utica and Fulton offices only intermittently. From January 2010 through September 2011, MEISLIN and Kuthuru submitted false and fraudulent bills to Medicare which indicated that Kuthuru or another medical professional under his direct supervision had treated a patient in the New York offices, when in fact Kuthuru was either in Nevada or outside the country and had not seen the patient nor supervised a medical professional who had done so.
United States District Court Judge David N. Hurd scheduled sentencing for July 1, 2015. MEISLIN faces a maximum term of imprisonment of ten years and a fine of $250,000 on each of the health care fraud counts. The maximum prison term for the conspiracy count is five years and a fine of $250,000.
Kuthuru had earlier pled guilty to health care fraud and illegal distribution of prescriptions on January 22, 2015. He is scheduled to be sentenced on May 22, 2015 at 12:00 pm in Utica.
The case was investigated by the Federal Bureau of Investigation, the Drug Enforcement Administration, the New York Department of Health, Bureau of Narcotic Enforcement, the Health and Human Services Department, the Worker’s Compensation Board, Office of Inspector General, Excellus Special Investigations Unit, Safeguard Services and MVP Health Care, Special Investigations Unit. The case was prosecuted by Assistant U.S. Attorney Edward R. Broton.
Union County Resident Sentenced for Methamphetamine OffenseRead the Press Release
On February 25, 2015, Rusty J. Smith, 36, of Cobden, IL, was sentenced for a methamphetamine violation, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Smith, who had previously pled guilty to a one-count indictment charging conspiracy to manufacture methamphetamine, was sentenced to 125 months in prison, to be followed by 3 years’ supervised release, and fined $200.00. The offense occurred between 2012 and March 2014, in Union, Williamson, and Jackson Counties. Evidence at the plea and sentencing hearings established that Smith was involved with co-defendants Ruth Diane Wiseman, Jonathan E. Merydith and others in the manufacture of methamphetamine. At sentencing, the district court determined that Smith was responsible for the possession of more than 290 grams of pseudoephedrine. Co-defendants Wiseman and Merydith were previously sentenced to prison terms of 18 months and 60 months, respectively, for their role in the methamphetamine conspiracy. Co-defendant Shannon Connett has pled guilty and is awaiting sentencing.
The ongoing investigation is being conducted by the Union County Sheriff’s Office, Jackson County Sheriff’s Office, Illinois State Police, Williamson County Sheriff’s Office, Marion Police Department, Carbondale Police Department, Illinois State Police Methamphetamine Response Team and Drug Enforcement Administration. The 19th Judicial District Drug Task Force (Tennessee) assisted in the investigation.
The case is assigned to Assistant United States Attorney Amanda A. Robertson.
U.S. Attorney Files Civil Action to Forfeit Stolen PicassoRead the Press Release
A civil complaint was filed today in federal court in Brooklyn to forfeit a century-old cubist painting by Pablo Picasso known as “La Coiffeuse” (in English, “The Hairdresser”). La Coiffeuse, which is owned by the French government, was reported stolen from a museum storeroom in Paris, France in 2001. When it was shipped to the United States from Belgium on December 17, 2014, the painting was falsely described as an “art craft” and “art craft toy” valued at 30 Euros. Upon its arrival in the United States, the shipment was detained by U.S. Customs and Border Protection (CBP), and the painting was subsequently seized by Homeland Security Investigations (HSI). The complaint alleges that the painting is stolen property that was smuggled into the United States contrary to law.
The complaint was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and Anthony Scandiffio, Deputy Special Agent in Charge, U.S. Immigration and Customs Enforcement, HSI, New York.
“A lost treasure has been found,” stated United States Attorney Lynch. “Because of the blatant smuggling in this case, this painting is now subject to forfeiture to the United States. Forfeiture of the painting will extract it from the grasp of the black market in stolen art so that it can be returned to its rightful owner.” Ms. Lynch thanked the French government and the Centre Georges Pompidou for their assistance.
“The recovery of the La Coiffeuse sends a strong message to thieves that the market to sell stolen antiquities in the United States is drying up,” said HSI Deputy Special Agent in Charge Scandiffio. “HSI is committed to using its resources to successfully investigate and, more importantly, repatriate smuggled antiquities and other protected cultural property to their rightful owners.”
La Coiffeuse, painted by Picasso in 1911, is an oil-on-canvas painting that measures 33 by 46 centimeters. It was bequeathed to the National Museums of France by its former director, Georges Salles in 1966, and assigned to the collections of the Musée National d’Art Moderne in Paris, France. It was last publicly exhibited in Munich, Germany, where it was on loan to the Kunsthalle der Hypo-Kulturstiftung. Upon its return to Paris, La Coiffeuse was placed in the storerooms of the Centre George Pompidou. The painting was believed to be in storage until a loan request was received in 2001, and museum staff discovered that the painting was missing. In November 2001, the painting was reported as stolen to the French police. The painting’s location remained unknown until it arrived in the United States in December 2014.
The shipping label attached to the package containing La Coiffeuse described its contents as “Art Craft / 30 E / Joyeux Noel,” indicating that the package contained a low-value handicraft shipped as a holiday present. The commercial invoice shipped with the painting similarly described the contents as an “Art Craft / Toy” valued at 30 Euros, or approximately $37 U.S. dollars. The current market value of La Coiffeuse is estimated to be in the millions of dollars.
The government’s case is being handled by Assistant United States Attorney Karin Orenstein.
E.D.N.Y. Docket No. 15-CV- 1002
Two Miami Tax Preparers and Client Sentenced in Fraudulent Refund SchemeRead the Press Release
Three Miami residents were sentenced for their roles in a tax refund scheme, announced U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Principal Deputy Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and Special Agent in Charge Kelly R. Jackson of Internal Revenue Service-Criminal Investigation’s (IRS-CI) Miami Office.
According to the indictment and facts established at his sentencing hearing, Sean Anthony Lopez, 35, of Miami, submitted false personal federal income tax returns claiming $625,320 in fraudulent refunds. Lopez received this refund in connection with his role as a client of an illicit tax preparation business located at 18710 SW 107th Street in Miami. Lopez was sentenced today to serve 30 months in prison. The court also ordered Lopez to pay restitution to the U.S. Treasury in the amount of $695,635.
Lopez’s co-defendants, Claudia Zuloaga, 43, and Sharon Elizabeth Angulo, 49, both of Miami, operated this South Miami-Dade tax preparation business under the names Sterling Executive Associates Inc. and Sterling Executive (Sterling), and assisted Lopez in the preparation of his fraudulent tax returns, as well as numerous other similar false tax returns.
Angulo and Zuloaga were each previously sentenced to serve 60 months in prison. The court also ordered Angulo and Zuloaga to each pay restitution to the U.S. Treasury in the amount of $1,539,873.
According to the indictment and facts established at sentencing, beginning in approximately September 2008 and continuing through September 2012, Zuloaga and Angulo recruited numerous clients, including Lopez, by falsely representing that they could eliminate a substantial portion of their debts by obtaining sizable tax refunds for them. This would be accomplished through false and fraudulent tax returns prepared by Zuloaga and Angulo in exchange for a fee, usually amounting to 30 percent of the fraudulently obtained tax refund. Zuloaga and Angulo were responsible for causing the submission of multiple fraudulent tax returns claiming refunds totaling in excess of $5.4 million. As further established at their sentencing hearings, the IRS was fraudulently induced to issue refund checks in the aggregate amount of $2,305,081, a portion of which was disbursed to Lopez with respect to his fraudulent tax returns.
As further alleged in the indictment and established at their sentencing hearings, the tax returns prepared at Sterling by Zuloaga and Angulo falsely set forth that financial institutions at which the clients maintained accounts withheld sizable amounts of tax from falsely declared interest income, which was falsely claimed as having been earned by the clients. Through this fraudulent mechanism, each return gave the appearance of entitling the client to a significant tax refund due to over-withholding of tax payments in connection with their claimed interest earnings. In addition, in order to provide false substantiation for these fraudulent tax refund claims, the defendants caused fictitious IRS Forms 1099-OID to be created, which set forth the false interest and tax withholding amounts fraudulently reported upon their clients’ tax returns.
It was also established at sentencing hearings that Zuloaga and Angulo promoted the fictitious “redemption theory” to their clients as the purported justification for their fraudulent tax refund claims. Through this promotion, clients were falsely informed that the submission of tax returns in this manner allowed their clients to legitimately access large amounts of money allegedly contained in certain non-existent “straw man” accounts which the defendants claimed were being maintained by the U.S. Treasury for each individual who possessed a social security number.
U.S. Attorney Ferrer and Principal Deputy Assistant Attorney General Ciraolo commended special agents of IRS – Criminal Investigation, who investigated the case, and Assistant U.S. Attorney Peter B. Outerbridge of the Southern District of Florida and Trial Attorney Alexander Effendi of the Tax Division, who prosecuted the case.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Two Fairbanks Residents Arrested for Filing False Income Tax Returns, Mail Fraud and Aggravated Identity TheftRead the Press Release
Anchorage, Alaska – Acting U.S. Attorney Kevin Feldis announced today that Earl Worthy, 39 and Tammy Jean Jackson, 39, of Fairbanks, Alaska, were arrested on February 24, 2015, for filing false income taxes. Worthy and Jackson were indicated by a federal grand jury on February 18, 2015, for one count of conspiracy to defraud the government with respect to claims; seven counts of mail fraud; and seven counts of aggravated identity theft.
According to the indictment, between approximately May 2009 and September 2012 Worthy and Jackson conspired to file false income tax returns claiming refunds to which they were not entitled and which used the identifying information of others. Many of the returns were filed for inmates at correctional facilities and in some instances the identifying information was used without the knowledge or permission of the person in question. Approximately 95 false tax returns claiming approximately $214,560 in fraudulent refund claims were submitted in the scheme.
The indictment alleges that the false income tax returns claimed false wages and tax withholdings based upon fabricated Forms W-2. These returns each claimed that the taxpayer in question was owed thousands of dollars in refunds to which they were not entitled. Paper copies of the false tax returns were mailed from Anchorage and Fairbanks, Alaska, and Tucson, Arizona, to the IRS in Fresno, California, for processing and the signatures on these paper returns were forged. Tax refund checks that were issued as a result were sent to the address listed on the false tax return which in some cases was the Fairbanks Correctional Center. Other refunds were issued via direct deposit into the bank account of a conspirator.
According to Assistant U.S. Attorney Steven E. Skrocki, if convicted, the defendants face terms of imprisonment of up 20 years and fines up to $250,000. Under the Federal Sentencing Guidelines the actual sentence imposed will be based upon the seriousness of the offense and the prior criminal history of the defendant.
An indictment is only a charging document and is not evidence of guilt. Defendants are presumed innocent and are entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Acting U.S. Attorney Kevin Feldis stated, “The false income tax return scheme alleged in this case is consistent with similar schemes perpetrated previously in Alaska and throughout the United States. Such schemes not only impact all taxpayers generally, but they also can be devastating to the victims whose identities are stolen and used as part of the fraud.”
Mr. Feldis commends the IRS Criminal Investigation for the investigation of this case.
Three San Juan County Residents Plead Guilty to Federal Narcotics Trafficking ChargesRead the Press Release
ALBUQUERQUE – Casey Lamotte, 30, of Flora Vista, N.M., Curtis Murray, 51, of Farmington, N.M., and Robert Valdez, 51, of Bloomfield, N.M., entered guilty pleas today in federal court in Albuquerque, N.M., to methamphetamine trafficking charges
Lamotte, Murray and Valdez were three of 29 individuals charged in Feb. 2014, with drug trafficking offenses as the result of a multi-agency investigation targeting drug trafficking in northwestern New Mexico. The investigation culminated on Feb. 26, 2014, when 26 of the defendants were arrested during a law enforcement operation led by Homeland Security Investigation (HSI) and the HIDTA Region II Narcotics Task Force. Two other defendants were arrested during the course of the investigation and the final defendant was arrested on March 3, 2014.
The 29 defendants were charged as a result of Operation “Brown Ice,” a year-long investigation that initially targeted a methamphetamine trafficking organization led by Isaac Anaya that distributed quantities of methamphetamine throughout San Juan County and expanded to include other drug trafficking activity in the area. The investigation was designated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program, a nationwide Department of Justice program that combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations.
Thirteen of the defendants, including ringleader Isaac Anaya, 31, of Farmington, were charged in a 15-count federal indictment alleging a conspiracy to distribute methamphetamine in San Juan County from May 2013 through Sept. 2013. The remaining 16 defendants were charged with state drug trafficking and firearms offenses based on criminal complaints. During the course of the investigation, officers seized approximately five pounds of methamphetamine and five firearms. The law enforcement operation on Feb. 24, 2014, included the execution of eleven federal search warrants at two Bloomfield residences, four Farmington residences, two residences in San Juan County, two Bloomfield businesses, two Farmington businesses and a storage unit in Bloomfield. It also included the execution of three state search warrants at two residences in San Juan County and one Farmington residence. Officers seized numerous firearms, including a fully automatic Glock 19, a short-barreled rifle and a carbine with an obliterated serial number, four blasting caps, four small binary explosives and approximately 31.7 grams of methamphetamine during the execution of the search warrants and the law enforcement operation.
During today’s proceedings, Lamotte and Murray each pled guilty to Count 1 of the indictment, and admitted participating in a conspiracy to distribute methamphetamine. Each also admitted that working as a distributor for Isaac Anaya between May 28, 2013 and Sept. 25, 2013. Lamotte further admitted to acting as a drug courier for Isaac Anaya by traveling to Arizona to obtain methamphetamine and transporting it back to Farmington, where the drugs were distributed by Isaac Anaya to other individuals.
Valdez pled guilty to Count 14 of the indictment, and admitted using a telephone to facilitate a drug trafficking offense. Valdez admitted discussing a methamphetamine purchase with co-defendant Richard Archuleta, 33, of Bloomfield, to obtain methamphetamine for himself and co-defendant Yvonne Anaya, 39, also of Bloomfield, in Aug. 2013. Archuleta pled guilty to conspiracy to distribute methamphetamine and a phone count on Sept.12, 2014. Yvonne Anaya has entered a not guilty plea.
To date, ten of the 13 federal defendants, including Isaac Anaya, have entered guilty pleas and are pending sentencing. The remaining three federal defendants have entered not guilty pleas to the indictment; they are presumed innocent unless found guilty beyond a reasonable doubt.
The federal and state cases filed as a result of Operation “Brown Ice” were investigated by the HSI office in Albuquerque, San Juan County Sheriff’s Office, HIDTA Region II Narcotics Task Force, Bloomfield Police Department, Farmington Police Department and Aztec Police Department. Assistant U.S. Attorneys Reeve L. Swainston and Shana B. Long are prosecuting the federal case, and Assistant District Attorney David Cowen of the 11th Judicial District Attorney’s Office is prosecuting the state cases.
The HIDTA Region II Task Force is comprised of officers and investigators from the Farmington Police Department, San Juan County Sheriff’s Office, Bloomfield Police Department and Aztec Police Department, and is part of the High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Three Individuals Arrested for more than $2.4 Million in Medicare and Medicaid FraudRead the Press Release
Three individuals have been arrested – one of whom was arrested in Colombia – for more than $2.4 million in Medicare and Medicaid fraud. The defendants in this case allegedly defrauded Medicaid and Medicare by paying and receiving kickbacks and bribes in return for creating and providing false and fraudulent home health prescriptions and plans of care to patient recruiters and causing the submission of false and fraudulent claims.
Wifredo A. Ferrer, U.S Attorney for the Southern District of Florida, Pam Bondi, Florida Attorney General, and Derrick L. Jackson, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), made the announcement.
Last month, a federal grand jury in Miami returned a four-count indictment charging Dr. Daniel Ronchetta, 77, Chiropractic Physician Assistant John Crowe, 76, and patient recruiter Frank Barrios, 48, for Medicare and Medicaid fraud. The defendants are charged with conspiracy to commit health care fraud and wire fraud, substantive counts of health care fraud, conspiracy to defraud the United States and pay and receive health care kickbacks.
U.S. Attorney Wifredo A. Ferrer stated, “Health care providers should generate business by offering their patients superior care. Financial relationships that put profits over patients undermine the quality and care given to patients and ultimately, the integrity of our public health care program upon which millions of Floridians depend.”
“This was a brazen attempt to get away with stealing millions of taxpayer dollars, but thanks to my Medicaid Fraud Control Unit and strong partnerships with federal authorities, these individuals have been arrested and charged,” said Attorney General Pam Bondi.
“Health care providers that offer or accept kickbacks in exchange for referrals undermine both the public’s trust in medical institutions and the financial integrity of federal health care programs,” said HHS-OIG Special Agent in Charge Derrick L. Jackson. “Our agency will continue to protect both patients and taxpayers by holding those who engage in fraudulent kickback schemes accountable.”
Since their inception in March 2007, Medicare Fraud Strike Force operations in nine locations have charged more than 1,650 defendants who collectively have falsely billed the Medicare program for more than $4.5 billion. In addition, the Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Mr. Ferrer thanked the Florida Office of the Attorney General, Medicaid Fraud Control, and HHS-OIG for their investigative efforts. Mr. Ferrer also thanked the Office of International Affairs, Department of Justice, for their assistance in the arrest of John Crowe. This case, brought as part of the Medicare Fraud Strike Force, is being prosecuted by Special Assistant U.S. Attorney Hagerenesh Simmons.
An indictment is only an accusation and the defendants are presumed innocent until proven guilty.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Superseding Indictment Filed in Federal Child Exploitation Case Against Albuquerque ManRead the Press Release
ALBUQUERQUE – A federal grand jury filed a superseding indictment yesterday charging Bentley Streett, 39, of Albuquerque, N.M., with child exploitation charges.
Streett was arrested on Oct. 3, 2014, by the FBI and the Bernalillo County Sheriff’s Office (BCSO) on a criminal complaint alleging federal child exploitation charges. According to the criminal complaint, the investigation into Streett began in Oct. 2013, after the National Center for Missing and Exploited Children forwarded a tip to the New Mexico Internet Crimes Against Children (ICAC) Task Force. Streett subsequently was indicted on Oct. 21, 2014, and charged with two counts of coercion and enticement of minors to engage in sexually explicit conduct and two counts of transferring obscene matter to minors.
The nine-count superseding indictment filed by the grand jury yesterday charges Streett with two counts of interstate travel to engage in illicit sexual conduct with minors; four counts of attempted production of visual depictions of minors engaging in sexually explicit conduct; and three counts of transferring obscene matter to minors. Counts 1 and 2 of the superseding indictment allege that Streett traveled from New Mexico to Illinois in July 2013 and Aug. 2013, for the purpose of engaging in illicit sexual conduct with a minor female victim. Counts 3 and 6 allege that Streett attempted to persuade a second minor female victim to produce child pornography in Sept. 2013 and Dec. 2013, and Counts 4 and 5 allege that he attempted to persuade a third minor female victim to produce child pornography on two occasions in Nov. 2013. Count 7 alleges that Street transferred obscene material to the first minor female victim in July 2013, and Counts 8 and 9 allege that Streett transferred obscene matter to the third minor female victim in Nov. 2013 and Jan. 2014.
If convicted of the charges in the superseding indictment, Streett faces the following statutory penalties: imprisonment up to 30 years on each of Counts 1 and 2, the interstate travel to engage in illicit sex charges; not less than 15 years and not more than 30 years on each of Counts 3 through 6, the attempted production of child pornography charges; and imprisonment up to ten years on each of Counts 7 through 9, the transfer of obscene materials charges. If convicted of any charge in the superseding indictment, Streett also would be required to register as a sex offender. Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by the Albuquerque office of the FBI, the BCSO and the New Mexico ICAC Task Force. The case is being prosecuted by Assistant U.S. Attorney Shammara H. Henderson 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/.
The case also was brought as a part of the New Mexico ICAC Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 74 federal, state and local law enforcement agencies associated with the New Mexico ICAC Task Force, which is funded by a grant administered by the New Mexico Attorney General’s Office. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
Statement of U.S. Attorney Preet Bharara on the Verdict in U.S. v. Khaled Al FawwazRead the Press Release
“As a unanimous jury has found, for nearly a decade, Khaled al Fawwaz played a critical role for al Qaeda in its murderous conspiracy against America. Dedicating himself to al Qaeda in the early 1990s, Fawwaz was one of Osama bin Laden's original and most trusted lieutenants, serving first as the leader of an al Qaeda training camp in Afghanistan, then as a leader of al Qaeda's terrorist cell in Kenya, and finally as bin Laden's media adviser in London. From his position in London, Fawwaz served as bin Laden's bridge to the West in the pre-Internet era, facilitating interviews of bin Laden in Afghanistan by Western media and disseminating bin Laden's 1998 fatwah commanding followers to kill Americans anywhere in the world. That directive was followed by the 1998 bombings of our embassies in Kenya and Tanzania, which resulted in the murder of 224 innocent people, and the wounding of thousands more. From the time of the embassy attacks, all 10 defendants tied to those attacks have now been convicted by trial or guilty plea in a Manhattan courtroom. From his one-time place at the top of al Qaeda’s membership list, Fawwaz now joins the long membership list of convicted, jailed terrorists. That list includes two other major figures in the past year alone, Abu Ghayth and Abu Hamza, all of whom have received full justice in a Manhattan courtroom – the verdict of 12 ordinary Americans rendered after a fair and open trial. We hope this verdict gives some comfort to al Qaeda’s victims around the world.”
Stamford Man Sentenced to 3 Years in Prison for Role in Fairfield County Mortgage Fraud SchemeRead the Press Release
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The United States Attorney for the District of Connecticut announced that ASM AFSARY, 42, of Stamford, was sentenced today by Chief U.S. District Judge Janet C. Hall in New Haven to 36 months of imprisonment, followed by five years of supervised release, for conspiring to defraud financial institutions through an extensive mortgage fraud scheme that involved more than 20 properties in Fairfield County.
According to court documents and statements made in court, between 2005 and 2013, AFSARY, a real estate agent and former mortgage broker, participated in a mortgage fraud conspiracy that involved the purchase of numerous single and multi-family properties, primarily in Stamford, Norwalk and Bridgeport. During the scheme, AFSARY and his co-conspirators provided materially false information to mortgage lenders. The fraudulent information included false verifications of mortgage applicants’ income, false verifications of down payments for real estate transactions and false HUD-1 Forms.
As part of the scheme, AFSARY recruited and directed the actions of several “straw buyers,” or individuals who fraudulently applied for and obtained mortgage loans but did not have an actual financial investment or stake in the mortgage loan transactions. In fact, AFSARY was the intended owner of the property, managed the property and collected all of the rents from the property.
Through this scheme, lenders suffered losses of more than $7 million. Many of the properties involved in this mortgage fraud scheme ended up in foreclosure, or in short sale transactions.
AFSARY was ordered to pay restitution in the amount of $3,327,949.20.
On June 16, 2014, AFSARY pleaded guilty to one count of conspiracy to commit wire fraud and bank fraud. He was ordered to report to prison on July 31, 2015.
Three other individuals involved in this scheme have also pleaded guilty and await sentencing.
This investigation is being conducted by the Federal Bureau of Investigation and the Federal Housing Finance Agency – Office of Inspector General, which identified multiple Fannie Mae and Freddie Mac loans that went into foreclosure.The criminal case is being prosecuted by Assistant U.S. Attorney Ann M. Nevins and Special Assistant U.S. Attorney John McReynolds, and the parallel civil forfeiture cases are being handled by Assistant U.S. Attorney Julie G. Turbert.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]St. Thomas Resident Sentenced to 124 Months in Carjacking CaseRead the Press Release
St. Thomas, USVI - District Court Judge Curtis V. Gomez today sentenced Troy Jamson Normil, 19, to 124 months in federal prison for carjacking and brandishing a firearm during the commission of a crime of violence, United States Attorney Ronald W. Sharpe announced.
Normil pleaded guilty on November 26, 2014 to carjacking a scooter and brandishing a firearm during the carjacking. Normil admitted that on December 23, 2013, at approximately 10 p.m., the victim was traveling up Suicide Hill in St. Thomas when Normil and an accomplice blocked his path with a light colored SUV. Normil and his accomplice approached the victim and Normil pointed a firearm at him demanding money. The victim advised Normil that he had no money and Normil told the victim he was taking his scooter. Normil then took the victim’s scooter and his cellular telephone and drove away in the SUV. The damaged scooter was recovered but the cellular telephone was never recovered.
In addition to a prison term, Normil was sentenced to five years of supervised release, a $200 special assessment and ordered to pay restitution to the victim for his losses.
The case was investigated by the Virgin Islands Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and prosecuted by Assistant U.S. Attorney Nelson L. Jones.
St. Albans woman sentenced on oxycodone chargeRead the Press Release
CHARLESTON, W.Va. – United States Attorney Booth Goodwin announced today that Katie Prater, 24, of St. Albans, West Virginia, was sentenced to five years of federal probation.
In October 2012, Prater pleaded guilty to possession of oxycodone with the intent to distribute. She admitted to having a package of oxycodone delivered to a residence in Charleston, which she then went to pick up May 2, 2012. When Prater took the package, officers with the Metropolitan Drug Enforcement Network Team approached her, and she admitted the package was hers and contained drugs she intended to sell. The package contained 50 30-mg oxycodone pills, 83 10-mg oxycodone pills and 67 10-mg hydrocodone pills.
United States District Judge Thomas E. Johnston imposed the sentence.
The case was investigated by Metropolitan Drug Enforcement Network Team. Assistant United States Attorney Monica D. Coleman handled the prosecution.
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Springfield Career Criminal Sentenced on Federal Firearms ChargesRead the Press Release
BOSTON – A convicted felon was sentenced today in U.S. District Court in Springfield for illegally possessing a Smith & Wesson handgun and ammunition.
Randy Rivera, 36, of Springfield, was sentenced by U.S. District Court Judge Michael A. Ponsor to 15 years in prison and four years of supervised release. In December 2014, Rivera pleaded guilty to possessing a firearm as a convicted felon. Rivera had an extensive criminal history at the time of his gun possession which qualified him as a federal armed career criminal.
On Jan. 4, 2013, law enforcement officers executed a search warrant at Rivera’s residence in Springfield. Officers found a Smith & Wesson, model M&P 9C, 9mm pistol, and 17 rounds of 9mm ammunition in a hidden compartment behind his bedroom headboard. The handgun, with a loaded high capacity magazine, was attached to a magnet for quick access. The officers also found $132,531 in cash hidden in the bedroom and a closet.
United States Attorney Carmen M. Ortiz; Daniel J. Kumor, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives in New England; and Michael J. Ferguson, Acting Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Kevin O’Regan of Ortiz’s Springfield Branch Office.
Southwest Detroit Store Managers Plead Guilty to Failing to Maintain an Effective Anti-Money Laundering ProgramRead the Press Release
Two Detroit store managers pleaded guilty yesterday to charges of failing to maintain an effective anti-money laundering program, U.S. Attorney Barbara L. McQuade announced today.
United States Attorney McQuade was joined in the announcement by Acting Special Agent in Charge Jarod Koopman, IRS Criminal Investigation.
John Miri, 55, and Wisam Daman, 38, entered their guilty pleas before U.S. District Court Judge Stephen J. Murphy, III.
According to court records, Daman managed and operated Big Apple Fruit Market on McGraw Street, and Miri managed and operated Junction Party Store on Junction Street, both of which are located on the southwest side of Detroit. Each store was registered as a Money Services Business (MSB) with the State of Michigan. As MSB’s, the Big Apple Fruit Market and Junction Party Store cashed checks for their customers in amounts greater than $1,000, for which they would charge a fee. Businesses that cash checks in this manner qualify as a financial institution under the Bank Secrecy Act (BSA) which obligates them to file Currency Transaction Reports (CTRs) with the Financial Crimes Enforcement Network. CTRs must be filed by the financial institution when a customer conducts a transaction involving more than $10,000. As managers/operators of the businesses, Daman and Miri were required to develop, implement and maintain effective anti-money laundering programs for the stores. The BSA regulations also require that financial institutions treat multiple currency transactions, totaling more than $10,000, as a single transaction and file a CTR if the financial institution has knowledge that the multiple transactions were made by, or on behalf of, a single person.
From late 2011 and continuing through April 2012, Miri and Daman cashed federal income tax refund checks, issued by the U.S. Treasury Department, that were provided to them by Juan Carlos Pena-Lora. These checks were issued to alleged taxpayers with addresses in eastern states, such as New York and New Jersey. Miri cashed approximately 751 income tax refund checks totaling $5,427,903 for Pena-Lora. Daman cashed approximately 1,268 income tax refund checks totaling $9,311,883 for Pena-Lora. Miri and Daman provided Pena-Lora with the cash from the refund checks, less a fee that they charged for cashing the checks. The fee that Miri and Daman charged Pena-Lora was based on a percentage of the total checks they cashed. The U.S. Treasury checks had actually been generated through the filing of false tax returns using the names and social security numbers of Puerto Rican nationals whose identity information had been stolen.
Payments in cash to Pena-Lora by Miri and Daman exceeded $10,000 on the days that they cashed the checks for him. Miri and Daman failed to file CTRs for some of the cash payments to Pena-Lora violating the requirement to implement and maintain an effective anti-money laundering program.
Failure to maintain an effective anti-money laundering program is punishable by a maximum penalty of 5 years imprisonment and/or a fine of $250,000. A sentencing date will be set by the court.
The investigation of this case was conducted by special agents of the Internal Revenue Service Criminal Investigation and prosecuted by Assistant U.S. Attorney’s Ross MacKenzie and Philip Ross.South Carolina Man Pleads Guilty to Mail FraudRead the Press Release
CINCINNATI – Christopher Outlaw, 46, of Moore, S.C., pleaded guilty in U.S. District Court to mail fraud.
Carter M. Stewart, United States Attorney for the Southern District of Ohio and Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Division, announced the plea entered into today before U.S. District Judge Michael R. Barrett.
According to court documents, beginning in at least 2005 through August 2012, Outlaw embezzled more than $1.9 million from his former employer.
Outlawwas employed by FTZ Industries, Inc. FTZ is a manufacturer of electrical products for transportation, plant maintenance, marine and custom applications, located in Simpsonville, South Carolina. FTZ is a division of ILSCO Corporation, which is an electrical connector manufacturing company located in Cincinnati, Ohio.
The defendant embezzled money by impersonating a former vendor of his employer. Specifically, the defendant opened a bank account in false affiliation with Molex Incorporated, a company that provides electrical components to its customers, which previously included FTZ. Outlaw submitted to his employer fictitious invoices that appeared to be from Molex. In reality, however, FTZ had not received any products from Molex because the invoices that Outlaw submitted were fake. Through the fictitious invoices, Outlaw would direct his employer to send payments to Molex to a mailbox that he had opened in Georgia in Molex’s name.
Mail fraud is a crime punishable by up to 20 years in prison and a $250,000 fine.
U.S. Attorney Stewart commended the investigation by the FBI, as well as Assistant United States Attorney Emily N. Glatfelter, who is representing the United States in this case.
Sentencings for February 19-25, 2015Read the Press Release
Jorge Enrique Barragan-Gutierrez, 22, of Bellflower, California, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on February 25, 2015, on one count of conspiracy to possess with intent to distribute, and to distribute, methamphetamine, heroin and marijuana; one count of possession of a firearm in furtherance of a drug trafficking crime; and one count of conspiracy to launder money. Barragan-Gutierrez was arrested in Los Angeles, California. He received 211 months imprisonment, to be followed by five years of supervised release, was ordered to pay a $500.00 fine and a $300.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the Wyoming Division of Criminal.
Penny McGlynn, 47, of Torrington, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on February 25, 2015, for conspiracy to possess with intent to distribute, and to distribute, methamphetamine and marijuana. McGlynn was arrested in Torrington, Wyoming. She received 41 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $200.00 fine and a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation.
Brian Jimenez, 47, of Cheyenne, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on February 23, 2015, for Medicare fraud involving his business Indulge Center for Health & Beauty. Jimenez was ordered to pay restitution in the amount of $83,497.31 and was sentenced to three years of supervised probation. In addition to these criminal penalties, Jimenez may be barred from future participation in the Medicare program as a provider. This case was investigated by the U.S. Department of Health and Human Services’ Office of the Inspector General and the Federal Bureau of Investigation.
Daniel C. Groover, 38, of Casper, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on February 20, 2015, for being a felon in possession of a firearm. Groover was arrested in Gillette, Wyoming. He received 66 months imprisonment and 21 days, concurrent with a previously set state sentence, he is to serve five years of supervised release upon release from custody, and was ordered to pay a $250.00 fine and a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation.
Amanda Dowers, 38, of Torrington, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on February 19, 2015, for conspiracy to possess with intent to distribute, and to distribute, methamphetamine and marijuana. Dowers was arrested in Torrington, Wyoming. She received 57 months imprisonment, to be followed by five years of supervised release, and was ordered to pay a $400.00 fine and a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation.
Sacramento Woman Sentenced to 4 Years Imprisonment for Stealing over $600,000 from Concord CompanyRead the Press Release
OAKLAND – Consuelo “Connie” Puente was sentenced today to 4 years imprisonment and ordered to pay restitution in the amount of $779,854.53 for wire fraud and aggravated identity theft, announced United States Attorney Melinda Haag and Internal Revenue Service, Criminal Investigation, Acting Special Agent in Charge José M. Martinez.
Puente pleaded guilty on December 4, 2014. According to court documents, from May 19, 2008 to June 18, 2013, Puente was employed by a company in Concord, Calif. In January 2009, Puente was assigned to the payroll department and was the only employee responsible for handing payroll for her employer. Puente admitted she devised a scheme to defraud her employer from June 2009 through June 2013 by receiving wages paid in the names of former employees. Pursuant to her scheme, Puente obtained from the company’s personnel files personal identifying information of three former employees. She changed their status to current employees so that her employer would pay wages in their names. Puente listed her own bank account information as the bank account to receive the wages.
As a result, between 2009 and 2013, her employer erroneously transferred net wages of $543,545.08 into Puente’s bank accounts. The company also paid to the IRS withholdings of $84,362.45 for a total of $627,907.53 in gross wages. To account for the wages paid in the names of the former employees, Puente prepared IRS Forms W-2 for each of the former employees. Puente also admitted that she filed false tax returns for 2009 through 2013 that omitted the $543,545.08 she stole from the company, resulting in $151,987 in tax liabilities.
Puente, 44, of Sacramento, was indicted on March 18, 2014, and charged with three counts of wire fraud and three counts of aggravated identity theft. She pleaded guilty to one count of each.
The sentence was handed down by the Honorable Yvonne Gonzalez Rogers, United States District Court Judge. Judge Rogers also sentenced the defendant to a three year period of supervised release and restitution. The defendant who is in custody will begin serving the sentence immediately.
Assistant US Attorneys Jose A. Olivera and Thomas Moore are prosecuting the case. The prosecution is the result of an investigation by the IRS, Criminal Investigation and the Concord Police Department.
Sacramento Woman Charged with Eight Counts of Bank FraudRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned an eight-count indictment today against Gabriela Carter, 43, resident of Sacramento, charging her with bank fraud, United States Attorney Benjamin B. Wagner announced.
According to court documents, from 2007 through 2008, Carter repeatedly submitted fraudulent loan applications to federally insured financial institutions to obtain real estate loans that her clients were not qualified to receive. In many instances, Carter falsely represented her clients’ income and generated false W-2s and paystubs for various shell companies that did not, in fact, employ them. Many of Carter’s clients were low-income immigrants who did not speak English and were unaware of the false representations.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorney Michele Beckwith is prosecuting the case.
If convicted, Carter faces a maximum statutory penalty of thirty years in prison and a $1,000,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Sacramento Man Sentenced for Credit Card FraudRead the Press Release
SACRAMENTO, Calif. —Oneal Damar Hamilton, 36, currently a resident of Pasadena, was sentenced today by United States District Judge Troy L. Nunley to 40 months in prison for credit card fraud, United States Attorney Benjamin B. Wagner announced.
According to court documents, Hamilton would purchase unauthorized and fraudulent credit cards from a source outside the United States. Through fraud and deception, the foreign source would induce a credit card company to send cards in Hamilton’s name to a residence in Sacramento where Hamilton would receive them. Hamilton would then use the unauthorized cards to take cash advances from local banks and to purchase merchandise from Sacramento area retailers until the cards were shut down for fraud. Before his arrest, Hamilton obtained approximately $162,000 in cash and merchandise over approximately 9 months between 2012 and 2013.
This case was the product of an investigation by the United States Secret Service. Assistant United States Attorney Matthew G. Morris prosecuted the case.
Prisoner Pleads Guilty to ManslaughterRead the Press Release
ALEXANDRIA, La. – United States Attorney Stephanie A. Finley announced today that a prisoner at the U.S. Penitentiary in Pollock, La., pleaded guilty to his role in the strangling death of a fellow inmate.
Refugio Sanchez, 36, a prisoner at Pollock Penitentiary, pleaded guilty before U.S. District Judge Dee D. Drell to one count of voluntary manslaughter. According to evidence presented at the guilty plea, Sanchez and fellow inmates, Benito Flores and the victim, were assigned to a Special Housing Unit (SHU) on March 12, 2008. Penitentiary guards found Sanchez and Flores with the victim who was lying unconscious on the floor of the SHU. The inmate was transported to a hospital where he was pronounced dead. An autopsy found that the victim died of strangulation. In conjunction with physical and forensic evidence that was presented at the guilty plea hearing, Sanchez issued a written statement wherein he admitted to unlawfully killing the victim during a heated argument.
The defendant faces up to 15 years in prison, three years of supervised release, and a $250,000 fine. A sentencing date of June 11, 2015 was set.
The FBI and the U.S. Bureau of Prisons conducted the investigation. Assistant U.S. Attorney Earl M. Campbell prosecuted the case.
Postal Worker Indicted for Delay or Destruction of MailRead the Press Release
U.S. Attorney Kenneth A. Polite announced that AVA SMITH, age 21, of Harvey, was indicted today for delay or destruction of mail.
According to the Indictment, on December 16, 2014, the Office of Inspector General for the United States Postal Service (“Postal OIG”) received information that a significant amount of First Class and Standard mail had been discarded. It was determined that the mail was to be delivered on December 8, 2014, by postal carrier SMITH. A review of the discarded mail revealed 573 pieces of First Class Mail, 142 pieces of Standard Mail, and 30 pieces of Non-Profit Mail. The First Class Mail included bank and insurance statements/invoices, credit card and other bills/statements.
U. S. Attorney Polite reiterated that the Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
If convicted, SMITH faces a maximum penalty of five years imprisonment, followed by up to three years of supervised release, and a $250,000 fine.
U.S. Attorney Polite praised the work of the U. S. Postal Inspection Service, Office of Inspector General in investigating this matter. Fraud Unit Chief, Assistant U. S. Attorney Brian M. Klebba is in charge of the prosecution.
Pomona Woman Sentenced for Methamphetamine OffenseRead the Press Release
On February 25, 2015, April M. Elliot, 34, of Pomona, was sentenced on a methamphetamine violation, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Elliot, who had previously pled guilty to a one-count indictment charging conspiracy to manufacture methamphetamine, was sentenced to 48 months in prison, 3 years’ supervised release, and fined $200. The offense occurred between 2009 and October 2013, in Union and Jackson Counties. Evidence at the plea and sentencing hearings established that Elliot was involved with others in the manufacture of methamphetamine. Elliot obtained pseudoephedrine pills for use in the manufacture of methamphetamine. Elliot also acted as a look-out while others cooked methamphetamine. At sentencing, the district court determined that Elliot was responsible for over 142 grams of pseudoephedrine. Co-defendants Toni Johnson and George Oliver have previously been sentenced to prison terms of 87 months and 70 months, respectively, for their roles in the methamphetamine conspiracy. Co-defendants Sommer Koons and Travis Sanders have pled guilty to their role in the methamphetamine conspiracy and are awaiting sentencing.
The ongoing investigation is being conducted by the Union County Sheriff’s Office, Murphysboro Police Department, Jackson County Sheriff’s Office, and Drug Enforcement Administration. The Illinois State Police Methamphetamine Response Team, Carbondale Police Department, and Union and Jackson County State’s Attorney’s Offices assisted in the investigation.
The case is assigned to Assistant United States Attorney Amanda A. Robertson.
Philadelphia Man Indicted on Gun and Drug ChargesRead the Press Release
PHILADELPHIA - Raymond Rysheem E. Starr, 21, of Philadelphia, PA was charged today by indictment with possession of a firearm by a convicted felon and possession of oxycodone, announced United States Attorney Zane David Memeger.
If convicted, Starr faces a maximum possible sentence of 11 years in prison, three years of supervised release and a fine of up to $500,000.
The case was investigated by the United States Postal Inspection Service, United States Secret Service and Federal Bureau of Investigation, with the assistance of the Philadelphia Police Department, Springfield Township, Montgomery County Police Department, Abington Police Department and the Bensalem Police Department. It is being prosecuted by Assistant United States Attorneys K.T. Newton and Yvonne Osirim.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Philadelphia Man Charged with Three Bank RobberiesRead the Press Release
PHILADELPHIA - Dion Jordan, 35, of Philadelphia, Pennsylvania was charged today by indictment with attempted bank robbery, bank robbery, armed bank robbery, and discharging a firearm during and in relation to a crime of violence, announced United States Attorney Zane David Memeger. The charges arise from an attempted robbery of Wells Fargo Bank, 8527 Germantown Avenue, Philadelphia, Pennsylvania, on or about June 2, 2014; a robbery of Wells Fargo Bank, 4275 County Line Road, Chalfont, Pennsylvania, on or about June 13, 2014; and an armed robbery of Wells Fargo Bank, 4275 County Line Road, Chalfont, Pennsylvania, on or about September 24, 2014.
If convicted the defendant faces a maximum possible sentence of life imprisonment.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Yvonne Osirim.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.