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Wednesday 25 February 2015
Beckley man pleads guilty to using phone to commit felonyRead the Press Release
BECKLEY, W.Va. – United States Attorney Booth Goodwin announced today that Richard Pfost, 32, of Beckley, pleaded guilty to using a telephone to commit a felony.
Pfost admitted that on Aug. 12, 2014, he used a telephone in the Beckley area to arrange a sale of oxycodone to a confidential informant.
Pfost faces up to four years in federal prison and a $250,000 fine. He is scheduled to be sentenced on June 24, 2015.
United States District Judge Irene C. Berger presided over the plea hearing.
The Beckley/Raleigh County Drug and Violent Crime Unit is conducting the investigation.
The case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and opiates. The U.S. Attorney’s Office, joined by federal, state and local law enforcement, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Beckley area woman pleads guilty to heroin distributionRead the Press Release
BECKLEY, W.Va. – United States Attorney Booth Goodwin announced today that Andrea Austin, 42, of Sophia, West Virginia, pleaded guilty to distributing heroin.
Austin admitted that on Aug. 11, 2014, she sold heroin to a confidential informant on East Camellia Street in Sophia.
Austin faces up to 20 years in federal prison and a $1 million fine. She is scheduled to be sentenced on June 17, 2015.
United States District Judge Irene C. Berger presided over the plea hearing.
The Beckley/Raleigh County Drug and Violent Crime Unit is conducting the investigation.
The case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and opiates. The U.S. Attorney’s Office, joined by federal, state and local law enforcement, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Beaver Falls Teen Sentenced to 3 Years in Prison for Burglarizing New Brighton Gun StoreRead the Press Release
PITTSBURGH - A Beaver County resident has been sentenced in federal court to 37 months imprisonment, to be followed by three years of supervised release, on his conviction of stealing firearms from the inventory of a federally licensed firearms dealer, United States Attorney David J. Hickton announced today.
United States District Judge Arthur J. Schwab imposed the sentence on Jaemere Scott, 19.
According to information presented to the court, on Feb. 7, 2014, Scott and Kyle Jones burglarized Shooters Place, a Federally Licensed Firearms Dealer, located at 416-F Constitution Boulevard in New Brighton, Pa., and stole fourteen handguns.
Assistant United States Attorney Brendan T. Conway prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Patterson Township Police Department, the Beaver County Sheriff’s Office, the Beaver County Detective Bureau, the Pennsylvania State Police, the Beaver Falls Police Department, and the New Brighton Police Department for the investigation leading to the successful prosecution of Scott.
Baltimore Man Admits to Armed Robbery of Prescription Drug VanRead the Press Release
Baltimore, Maryland – Stanley Duryea Johnson, age 60, of Baltimore, pleaded guilty today to robbery and using a gun during the robbery.
The plea agreement was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Chief James W. Johnson of the Baltimore County Police Department; Anne Arundel County Police Chief Tim Altomare; and Baltimore County State’s Attorney Scott Shellenberger.
According to his plea agreement, on June 18, 2013, a driver of a prescription drug van was waiting for a pharmacy to open at a parking lot on Reisterstown Road in Baltimore. The van contained $93,000 worth of pharmaceutical drugs, which the driver planned to deliver at a number of locations that day. Johnson approached the van, ordered the driver to move to the passenger seat, and began driving the van. Johnson eventually left the driver on the side of the road and drove off in the van.
Johnson and the government have agreed that Johnson is a career offender, and that if the Court accepts the plea agreement, Johnson will be sentenced to 20 years in prison. U.S. District Judge Marvin J. Garbis scheduled sentencing for June 3, 2015 at 9:30 a.m.
United States Attorney Rod J. Rosenstein commended the FBI, Baltimore County and Anne Arundel County Police Departments and Baltimore County State’s Attorney's Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Bonnie S. Greenberg, who is prosecuting the case.
Ashland Man Indicted for Robbing North Olmsted BankRead the Press Release
A grand jury returned a two-count indictment charging Jordon Louis Dongarra, 33, of Ashland, with one count of bank robbery and one count of brandishing a firearm during and in relation to a crime of violence, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment alleges that Dongarra robbed the Ohio Savings Bank, 28880 Lorain Road, in North Olmsted, Ohio, a federally insured financial institution, on December 30, 2014.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to his case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The case is being prosecuted by Assistant U.S. Attorney Justin Seabury Gould, and was investigated by the Federal Bureau of Investigation and North Olmsted Police Department.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Area Woman Sentenced for Crack Cocaine ConspiracyRead the Press Release
GREENEVILLE, Tenn. – Michelle Nicole Lane, 33, of Blountville, Tenn., was sentenced on Feb. 23, 2015, by the Honorable J. Ronnie Greer, U.S. District Court Judge, to serve 132 months in federal prison. Lane pleaded guilty in October 2014 to conspiracy to distribute, and to possess with the intent to distribute, 280 grams or more of a mixture and substance containing a detectable amount of cocaine base (“crack”). There is no parole in the federal system.
Over the course of roughly three years, Lane managed a large-scale crack cocaine conspiracy. In so doing, she was responsible for distributing multi-kilogram quantities of crack cocaine in the Tri-Cities area. As part of her part of her guilty plea, Lane admitted to being personally responsible for at least 840 grams, but less than 2,800 grams, of crack cocaine.
Lane managed a network of coconspirators who assisted in distributing her crack cocaine. These individuals included couriers, runners, and street-level dealers. Lane directed the actions of such individuals while she received the majority of the reward. As part of her conduct, Lane actively took steps to thwart law enforcement and skirt federal laws. These efforts failed and caused her to receive mandatory minimum sentences in federal prison.
As part of the investigation, law enforcement conducted seven different controlled drug transactions with members of Lane’s conspiracy. On one of those occasions, Lane and a codefendant sold crack cocaine to confidential informants acting under the supervision of agents and officers.
This case was the product of cooperation between the Johnson City Police Department and Federal Bureau of Investigation. Assistant U.S. Attorney Nick Regalia represented the United States.
Appalachian Labs employee sentenced in water quality schemeRead the Press Release
BECKLEY, W.Va. – United States Attorney Booth Goodwin announced today that John W. Shelton, 47, of Daniels, West Virginia, was sentenced to 21 months in federal prison.
In October 2014, Shelton pleaded guilty to conspiring to violate the Clean Water Act. He admitted that he, and other employees, tampered with water samples to make them appear within permissible levels. He stated he diluted samples by adding distilled water, and substituted water samples from the “honeyhole,” named such because samples taken from that spot were always within permissible limits. Each time samples were diluted or water was substituted, Shelton allowed excessive pollutants to be discharged from mining operations into adjacent creeks and rivers.
Shelton also admitted that from 2008-2013, he and other Appalachian Laboratory employees failed to place samples on ice as required by law, and instead kept them in their trucks all day, compromising the integrity of the samples. They would place samples on ice inside coolers on known inspection days to give the appearance it was the regular practice.
United States District Judge Irene C. Berger imposed the sentence.
The case was investigated by the Federal Bureau of Investigation and Environmental Protection Agency’s Criminal Investigation Division. Assistant United States Attorney Blair L. Malkin and Larry R. Ellis handled the prosecution.
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Aliquippa Man Charged with Producing and Possessing Child PornographyRead the Press Release
PITTSBURGH - A Beaver County resident has been indicted by a federal grand jury in Pittsburgh on two charges of production of material depicting the sexual exploitation of a minor, and two charges of possession of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.
The four-count indictment, returned on Feb. 24, named Tyler Seevers, 24, as the sole defendant.
According to the indictment, on or about May 14-15, 2014, and on or about July 20-21, 2014, Seevers employed, used, persuaded, induced, enticed, and coerced one of two child victims to engage in sexually explicit conduct for the purpose of producing visual depictions, namely photographs, of such conduct. The indictment further charges that Seevers, on July 27, 2014, and on Aug. 2, 2014, unlawfully possessed, in computer graphics files, photographs depicting minors engaged in sexually explicit conduct.
The law provides for a maximum total sentence of 30 years in prison, a fine of $1,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Carolyn J. Bloch is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Pennsylvania State Police, and the Hopewell Township Police Department conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Albuquerque Man Sentenced to Five Years for Methamphetamine Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Jose Israel Villaba, 30, of Albuquerque, N.M., was sentenced this morning in federal court to 60 months in prison followed by four years of supervised release for his methamphetamine trafficking conviction.
Villaba was arrested on Feb. 21, 2013, at the Amtrak train station in Albuquerque after a search by DEA agents revealed that Villaba had concealed bundles containing methamphetamine inside a toy that was in his suitcase. Villaba subsequently was indicted on March 5, 2013, and charged with possession of methamphetamine with intent to distribute.
Villaba entered a guilty plea to the indictment on Oct. 3, 2013. According to court filings, the toy in Villaba’s possession contained more than 470 gross grams of methamphetamine.
This case was investigated by the Interdiction Unit of the DEA’s Albuquerque office, which focuses on disrupting the flow of narcotics, weapons, and the proceeds of illegal activities as they are smuggled into or through New Mexico in passenger buses, passenger trains, commercial vehicles and automobiles. Assistant U.S. Attorney Paul Mysliwiec prosecuted the case.
35 Defendants Charged with Drug Trafficking and Money Laundering Offenses Following Undercover InvestigationRead the Press Release
United States Attorney for the Middle District of Georgia, Michael J. Moore, announced today that an indictment was returned by a grand jury sitting in the United States District Court in Macon, Georgia on February 11, 2015, which charged 35 defendants with drug trafficking and money laundering offenses. During “Operation Southern Postal Powder”, Federal agents, assisted by state and local law enforcement officers, investigated a large scale drug organization based in Macon, Georgia. Over the course of the investigation, federal agents seized large amounts of cocaine and marijuana.
Penalties for the charges range from ten years up to life in prison without parole. Fines range from $500,000 to 10 million dollars.
United States Attorney Michael Moore stated: “This operation is the essence of law enforcement collaboration and teamwork to remove illegal drugs and to punish those who violate Federal narcotics laws.”
“The Postal Inspection Service is committed to preventing the US Mail from being used as a conduit for narcotic trafficking. We could not be successful without the collaborative efforts of our local, State, and Federal partners,” stated Assistant Inspector in Charge Barney D. Morris.
Daniel R. Salter, Special Agent in Charge of the DEA Atlanta Field Division remarked that the indictment, “is a victory, not only for the multitude of law enforcement agencies who dismantled this organization, but for the citizens of Macon, Griffin and Atlanta, Georgia.” He further stated that “this effort would not have been successful without the mission-oriented cooperation between our federal, state and local law enforcement counterparts.”
“We would like this operation to serve as a strong message to individuals throughout the region that we will not stand for the destruction that drugs and related criminal activity bring to our communities, stated Veronica F. Hyman-Pillot, Special Agent in Charge, IRS Criminal Investigation. “We will do everything within our power to assist our law enforcement partners with financially disrupting and dismantling drug trafficking organizations and stopping the violence and corruption they inflict upon society."
A copy of the indictment is attached. The indictment is only an allegation of criminal conduct. Each person is presumed innocent until and unless proven guilty in a court of law.
The case was investigated by the US Postal Inspection Service (USPIS), the Drug Enforcement Administration (DEA), the Internal Revenue Service (IRS), the Bibb County Sheriff’s Office, and the Peach County Sheriff’s Office. Assistant U.S. Attorneys Charles Calhoun and Sonja Profit are prosecuting the case for the Government.
For additional information, please contact Pamela Lightsey at (478) 621-2603.
DEFENDANTS
AGE
HOMETOWN
1) THADDEUS LAVETTE BONDS aka “STUPID,”
33
Macon, GA
2) DAVID RAY FELLS,
33
Eureka, CA
3) TIMMIE ANDERSON,
37
Oklahoma City, OK
4) TIFFANY McGRUDER,
32
Phoenix, AZ
5) MICHAEL THOMAS aka “POP,”
59
Conyers, GA
6) TAMIKA ANDERSON,
34
Phoenix, AZ
7) SHANNON MILLER,
23
Eureka, CA
8) BRANDON VITALE,
24
Fields Landing, CA
9) MICHELLE RAINEY (THOMAS),
48
Conyers, GA
10) KARL ANTHONY BOWEN,
68
Phoenix, AZ
11) ONTARIAN GREEN aka “SHENARD,”
45
Macon, GA
12) WILLIE EDWARD OWENS, JR. aka “TINK,”
43
Macon, GA
13) KEVIN LORENZ TAYLOR aka “K.T.,”
41
Macon, GA
14) GILBERT BALKCOM, JR. aka “SI MAN,”
36
Macon, GA
15) ARTEIUS CHUNTERA COTTON aka “TARA,”
30
Macon, GA
16) TRAKNOVOISE SIMMONS aka “ROD,”
37
Macon, GA
17) AUDREA LAMONT LAWRENCE aka “DRE,”
39
Macon, GA
18) ERIC KEITH BROWN aka “FIRE,”
44
Macon, GA
19) DONNIE WILLIAM BROWN aka “BIG DONNIE,”
35
Macon, GA
20) HAROLD HOLLAND,
58
Atlanta, GA
21) JEREMEY BARKLEY aka “BLOCKO,”
33
22) ANTONIO BERNARD RILEY aka “SLICK,”
39
Macon, GA
23) ANTWON ABRAMS,
29
Macon, GA
24) COREY BARKLEY,
32
Griffin, GA
25) QUATERRIO BARKLEY,
34
Griffin, GA
26) ANTWOIN BELL,
29
Macon, GA
27) NAKIA FEAZELL,
35
28) TAMEKA GRIFFIN,
34
Macon, GA
29) ANGEL CROSBY
37
Macon, GA
30) KIMBERLY JUHAN,
30
Macon, GA
31) JEREMY THOMAS,
41
Macon, GA
32) MARCUS RANDALL,
36
Covington, GA
33) AWRIS SMITH,
35
34) JIMMY WALKER,
36
Macon, GA
35) MARIA WHITE,
41
Phoenix, AZ
15 Suspects Indicted in West Tennessee on Federal Distribution of Illegal Prescription Drug ViolationsRead the Press Release
Jackson, Tenn. –Edward L. Stanton III, United States Attorney for the Western District of Tennessee announced today the unsealing of an indictment charging 15 suspects with federal drug trafficking violations. The suspects were arrested early today during a round-up conducted by federal (the DEA and U.S. Marshals Service), state (Tennessee Bureau of Investigation, 25th Judicial District Drug Task Force, and Tennessee Highway Patrol), and local law enforcement agencies (Tipton County Sheriff’s Department, Madison County Sheriff’s Department, Jackson Madison County Metro Narcotics, Jackson Police Department, and Jackson Police Department Gang Unit).
The indictments were returned by a federal grand jury in Jackson February 24, 2015, but remained under seal until today’s arrests. Each indictment contained counts alleging violations of the Controlled Substances Act.
The suspects arrested during the operation were:
• Bryon Stevens, age 39, (already in state custody) • Anita Stevens, age 60, of Haywood County • Sandy Stevens, age 37, (already in state custody) • Helen Jackson, age 48, of Haywood County • Debra Harris, age 49, of Haywood County • Martha Taylor, age 53, of Haywood County • Edward Lynn Martin, age 47, of Haywood County • Helen Cole, age 67, of Haywood County • Bobby Joe Tyus, age 60, of Haywood County • Alice Marie Martin, age 45, of Haywood County • Cheryl Austin, age 56, (already in state custody) • Bobby Joe Perry, age 51, of Haywood County • Grant Hendrix, age 28, of Haywood County • Lauren Turner, age 34, of Haywood County • William “Baldy” Taylor, age 59, of Lauderdale County
The charges in the indictments stem from an illegal conspiracy to sell and distribute oxycodone, hydrocodone, Xanax and buprenorphine. Several of the defendants were also charged with intentionally acquiring or obtaining possession of the same controlled substances by misrepresentation, fraud, forgery, deception or subterfuge.
The case was investigated by members of the DEA, Nashville District Office, Tactical Diversion Squad; Tipton County Sheriff’s Department; 25th Judicial District Drug Task Force; Jackson Madison County Narcotics Task Force; Lauderdale County, Tennessee Sheriff’s Department; Lauderdale County, Alabama Drug Task Force. This case is being prosecuted by Assistant United States Attorney Beth Boswell on behalf of the government.
The charges and allegations contained in the indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Spanish Version
15 Sospechosos Acusados En El Oeste De Tennessee En Violaciones Federales Por Distribucion Ilegal De Medicamentos RecetadosRead the Press Release
Jackson, Tennessee. - Edward L. Stanton III, Fiscal Federal para el Distrito Oeste de Tennessee anunció hoy la revelación de una acusación formal contra 15 sospechosos en violaciones federales por narcotràfico. Los sospechosos fueron detenidos la madrugada de hoy durante una redada llevada a cabo por el gobierno federal (el Servicio de Alguaciles de Estados Unidos y la DEA), estatal (Oficina de Investigaciones de Tennessee, el Grupo Especializado Antidroga del 25to Distrito Judicial y la Patrulla de Caminos de Tennessee) y las agencias policiales locales (Departamento del Sheriff del Condado de Tipton, Departamento del Sheriff del Condado de Madison, Metro Narcóticos del Condado de Madison, Departamento de la Policía de Jackson y la Unidad de Pandillas del Departamento de la Policía de Jackson).Las acusaciones fueron devueltas por un gran jurado federal en Jackson el 24 de febrero 2015, pero se mantuvo en secreto hasta los arrestos de hoy. Cada acusación contenía recuentos alegando violaciones de las Ley de Sustancias Controladas.
Los sospechosos arrestados durante la operación fueron:
• Bryon Stevens, de 39 años de edad, (ya en custodia del Estado)
• Anita Stevens, de 60 años, del Condado de Haywood
• Sandy Stevens, de 37 años de edad, (ya en custodia del Estado)
• Helen Jackson, de 48 años, del Condado de Haywood
• Debra Harris, de 49 años, del Condado de Haywood
• Martha Taylor, de 53 años, del Condado de Haywood
• Edward Lynn Martin, de 47 años, del Condado de Haywood
• Helen Cole, de 67 años, del Condado de Haywood
• Bobby Joe Tyus, de 60 años, del Condado de Haywood
• Alice Marie Martin, de 45 años, del Condado de Haywood
• Cheryl Austin, de 56 años de edad, (ya en custodia del Estado)
• Bobby Joe Perry, de 51 años, del Condado de Haywood
• Grant Hendrix, de 28 años, del Condado de Haywood
• Lauren Turner, de 34 años, del Condado de Haywood
• William "Baldy" Taylor, de 59 años de edad, del Condado de LauderdaleLos cargos en las acusaciones se derivan de una conspiración ilegal para vender y distribuir oxicodona, hidrocodona, Xanax y la buprenorfina. Varios de los acusados también fueron acusados de intencionalmente adquirir u obtentar las mismas sustancias controladas por falsa, fraudulenta, falsificada, engañosa o subterfugio.
El caso fue investigado por los miembros de la DEA, la Oficina del Distrito de Nashville, el Escuadrón de Desviación Tàctica; Departamento del Sheriff del Condado de Tipton; el Grupo Especializado Antidroga del 25to Distrito Judicial; Grupo Especializado de Estupefacientes del Condado de Madison; el Departamento del Sheriff de Tennessee del Condado de Lauderdale; el Grupo Especializado Antidroga de Alabama del Condado de Lauderdale. Este caso està siendo procesado por el Fiscal Federal adjunto Beth Boswell en nombre del gobierno.
Los cargos y alegaciones contenidos en la acusación son meras acusaciones y los acusados son considerados inocentes hasta que se demuestre su culpabilidad.
Version en Inglés
Tuesday 24 February 2015
Week in Review –hammondRead the Press Release
Hammond, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
DISPOSITIONS
- Kevin J. Babich, 38, of Valparaiso, Indiana was sentenced to 18 months’ probation, with 8 months of periodic imprisonment after pleading guilty to wire and mail fraud. This case was the result of an investigation by the Federal Bureau of Investigation and the Internal Revenue Service Criminal Investigation Division. This case was prosecuted by Assistant United States Attorney Randall Stewart.
- Dameyon Bean, 37, of Speedway, Indiana was sentenced to 10 months imprisonment in the BOP after pleading guilty to theft of government funds (he obtained fraudulent unemployment funds). He was ordered to pay $53,000 in restitution. This case was the result of an investigation by the United States Department of Labor and United States Postal Inspection Service. This case was prosecuted by Assistant United States Attorney Randall Stewart.
- Jeremy L. Culver, 37, of Lafayette, Indiana was sentenced to 360 months imprisonment followed by 20 years of supervised release after pleading guilty to the felony offenses of production and distribution of child pornography. According to documents filed in this case, on or about November 8, 2011, Jeremy Culver caused an 11 year-old boy, referred to throughout the proceedings as John Doe, to engage in sexually explicit conduct for the purpose of producing a visual depiction of such conduct. Culver was also convicted of distributing child pornography in interstate commerce on or about March 18, 2010. This case was the result of an investigation by the Federal Bureau of Investigation. This case was prosecuted by Assistant United States Attorney Jill R. Koster.
- Michael L. Schnelle, 27, of Lafayette, Indiana was sentenced to 24 months home detention after pleading guilty to the felony offense of knowingly selling firearms to a person who was under felony indictment. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives. This case was prosecuted by Assistant United States Attorney Jacqueline Jacobs.
- Gopal Shah, 64, of Orland Hills, Illinois was sentenced to 10 months incarceration and 1 year of supervision after pleading guilty to conspiracy to defraud the Medicare and Medicaid programs through the solicitation of physicians to send their Medicare and Medicaid patients to his business in exchange for the payment of kickbacks. This case was the result of an investigation by the Federal Bureau of Investigation. This case was prosecuted by Assistant United States Attorney Diane Berkowitz.
Virginia man gets nearly six years for robbing drug dealersRead the Press Release
CHARLESTON, W.Va. – United States Attorney Booth Goodwin announced today that Brandon Davis, 24, from Wytheville, Virginia, was sentenced to 70 months in federal prison.
In October 2012, Davis pleaded guilty to his role in robbing Charleston drug dealer Cabell Franklin. He admitted that on Jan. 18, 2012, he and Robert Barcliff committed the robbery, during which Franklin was shot in the leg and stabbed.
This robbery was part of a larger conspiracy among Barcliff and his associates. Beginning in the fall of 2011, Barcliff, Davis, Keith Glenn, Darrell Gillespie, Jamaa Johnson and others conspired and agreed to commit armed home-invasion robberies of drug dealers in West Virginia, Virginia, Pennsylvania and Tennessee. The objective of the conspiracy and robberies was to steal drugs, drug proceeds and firearms. The group targeted drug dealers because they believed it unlikely they would call the police.
Barcliff was recently sentenced to 16 years in federal prison. Johnson and Gillespie are scheduled to be sentenced in May 2015
United States District Judge Thomas E. Johnson imposed the sentence.
The case was investigated by the Federal Bureau of Investigation, South Charleston Police Department and Charleston Police Department. Assistant United States Attorney Monica D. Coleman handled the prosecution.
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United States Attorney Announces $650,000 Settlement with Acadiana Cardiology, Acadiana Cardiovascular Center, and Convicted Doctor, Mehmood Patel, for False Claims AllegationsRead the Press Release
LAFAYETTE, La. – United States Attorney Stephanie A. Finley announced a $650,000 settlement was reached with Acadiana Cardiology LLC, Acadiana Cardiovascular Center and convicted doctor, Mehmood Patel, M.D., concerning allegations that Patel performed unnecessary medical procedures and billed Medicare.
In the criminal proceedings, Patel was indicted on 94 counts of health care fraud on February 16, 2006, and a jury found him guilty on December 30, 2008 after a two-month trial of 51 counts of health care fraud. He was sentenced on June 4, 2009, to serve 120 months in prison and five years of supervised release. He was also ordered to pay $387,511 in restitution and a $175,000 fine. In August of 2006, Our Lady of Lourdes agreed to pay a $3.8 million settlement, and in January of 2008, Lafayette General Medical Center agreed to pay a $1.9 million settlement to settle claims.
The United States intervened in the lawsuit Dr. Christopher Mallavarapu, a cardiologist who formerly practiced with Patel in Lafayette, brought against Acadiana Cardiology LLC, Acadiana Cardiovascular Center LLC, Mehmood Patel, a Professional Medical Corp., and Mehmood Patel, M.D., to recover damages under the False Claims Act. The False Claims Act, a federal civil fraud statute, allows individuals who have witnessed fraud to file suit on behalf of the United States under the statute’s qui tam provisions and, under appropriate circumstances, they are allowed to share in a portion of any monetary recovery that is made. The statute allows the government to recoup dollars obtained through fraud and misrepresentation.
From 2000 to 2003, the United States alleged that the defendants submitted 207 false claims for unnecessary cardiovascular, endovascular and related procedures that Patel performed at Our Lady of Lourdes Hospital, Lafayette General Medical Center, Acadiana Cardiology and Acadiana Cardiovascular Center. Federal law allows coverage and payment for only those services that are considered to be medically reasonable and necessary.
“This is a significant recovery,” Finley said. “Health care providers should know they will be held accountable for the care that they provide and the claims they submit for care. We hope this settlement sends a message that those in the health care industry who overcharge federal programs and perform medically unnecessary treatments will be held accountable, both criminally and civilly.”
“Any time greed replaces medical necessity as the primary factor in performing invasive diagnostic procedures, our most vulnerable citizens, the nation's elderly, are imperiled,” said Special Agent in Charge Mike Fields of the U.S. Health and Human Services Office of Inspector General’s (OIG) Dallas Regional Office. “This was a most egregious example of a money hungry physician unnecessarily placing his own patients at risk to line his pockets.”
The U.S. Department of Health and Human Services, Office of Inspector General, investigated the case. Assistant U.S. Attorney Karen J. King and Supervisory Assistant U.S. Attorney Katherine W. Vincent handled the civil case. Assistant U.S. Attorney Kelley P. Uebinger prosecuted the criminal case.
The claims resolved by this settlement are allegations only and there has been no determination of liability.
Three Kankakee Area Felons Sentenced to Prison for Illegal Possession of FirearmsRead the Press Release
Urbana, Ill. B Three Kankakee area men, with prior felony convictions, have been sentenced to federal prison terms for illegal possession of firearms, as announced by U.S. Attorney Jim Lewis, Central District of Illinois. The men, who have been in the custody of the U.S. Marshals Service since their arrests in September 2014, were sentenced on Friday, Feb. 20.
Antwon T. Crite, 38, last known address St. Anne, Ill., was sentenced to 10 years (120 months) in prison. According to the government’s factual basis presented in court, between November 2013 and June 2014, Crite illegally sold 10 different guns, including three sawed-off shotguns, a SKS assault rifle, and a handgun with an obliterated serial number. Crite has prior Illinois convictions for unlawful possession of a controlled substance and unlawful possession of marijuana.
Charles V. Williams, 39, of the 1200 block of E. Chestnut St., Kankakee, was ordered to serve five years in prison (60 months). On June 27, 2014, Williams illegally sold a 9 millimeter semi-automatic pistol to a person he believed to be a drug dealer, according to court documents. Williams has prior convictions for unlawful delivery of a controlled substance, illegal possession of a firearm, and conspiracy to sell a controlled substance.
Carlton Lashawn Smith, 35, of the 400 block of S. Rosewood Ave., Kankakee, was ordered to serve two and one-half years, (30 months) in prison. On May 17, 2011, Smith illegally sold a .32 caliber pistol. Smith has prior Illinois convictions for attempted armed robbery and delivery of a controlled substance.
The cases are the result of ongoing investigations related to gun violence in the Kankakee area by the Kankakee Area Project Safe Neighborhoods Task Force, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Kankakee Police Department. The cases are being prosecuted by Assistant U.S. Attorney Eugene L. Miller. The Kankakee Area Metropolitan Enforcement Group, Chicago Police Department, Illinois State Police, and Kankakee County Corrections assisted with the initial arrests in September 2014.
Tennessee Man Charged in Manhattan Federal Court with Misappropriating over $8 Million from Private Healthcare Services CompaniesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Diego Rodriguez, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the arrest of STEVEN RAWLINS, a former outside consultant to two healthcare services companies. As alleged, from 2009 through 2013, RAWLINS misappropriated at least $8 million from two healthcare services companies. In his capacity as a consultant for both companies, RAWLINS abused his authority to withdraw company funds for payment of legitimate business expenses and tax obligations by, among other things, using such funds to pay personal expenses incurred by RAWLINS, his family, and his associates.
RAWLINS was arrested by the FBI this morning at his residence in Tennessee, and was presented in federal court in the Middle District of Tennessee earlier today.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, as a consultant for two companies, Steven Rawlins broke his clients’ trust by misusing more than $8 million. His alleged crimes carry a maximum penalty of up to 20 years in federal prison.”
FBI Assistant Director-in-Charge Diego Rodriguez said: “As an outside consultant hired to handle internal financial matters, Rawlins allegedly took advantage of his authority and helped himself to millions of dollars of embezzled funds. His lifestyle flourished while his victims paid the ultimate price, incurring staggering financial losses resulting from the crime with which he is accused. Today, he faces the error of his ways and the due process of law.”
According to the allegations in the Complaint unsealed today in Manhattan federal court:
From 2004 to 2013, RAWLINS was retained as an outside consultant by a private healthcare services company, which is headquartered in Tennessee (“Company-1”) to assist with financing and accounting matters. RAWLINS’s responsibilities included securing financing for Company-1 and facilitating tax payments. During that time period, RAWLINS was retained by another private healthcare services company, which at the time had operations in Florida and New York (“Company-2”), to perform a similar role. As part of his responsibilities, RAWLINS was authorized to bill both Company-1 and Company-2 for legitimate business expenses incurred in connection with his services.
RAWLINS abused his authority to withdraw company funds and ultimately misappropriated more than $8 million, which he used to pay personal expenses incurred by himself, his family, and his associates. For instance, as part of his responsibilities as a consultant to Company-1, RAWLINS represented that he would handle necessary tax payments by Company-1 to the State of Tennessee. From 2011 to 2012, RAWLINS withdrew over $693,000, purportedly in order to pay Company-1’s outstanding tax liabilities to Tennessee. In reality, during that time period, Company-1 owed less than $16,000 in applicable Tennessee state taxes. Moreover, from 2012 to 2013, RAWLINS caused over $615,457 to be withdrawn from a Company-1 bank account in order to pay bills associated with an American Express credit card account. That American Express account was in turn used to pay for numerous personal expenses incurred by RAWLINS, or those associated with him, including a payment of $30,000 to a Ferrari dealership on Long Island and a payment of over $21,500 to a professional hockey franchise.
RAWLINS, 58, of Brentwood, Tennessee, is charged with one count of wire fraud. He faces a maximum sentence of 20 years in prison, a maximum term of three years of supervised release, and a fine of the greatest of $250,000, or twice the gross pecuniary gain derived from the offense or twice the gross pecuniary loss to the victim. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Bharara praised the investigative work of the FBI. He added that the investigation is continuing.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Since the inception of FFETF in November 2009, the Justice Department has filed more than 12,841 financial fraud cases against nearly 18,737 defendants including nearly 3,500 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Edward Y. Kim and Andrew J. DeFilippis are in charge of the prosecution, and Margaret S. Graham is in charge of the forfeiture aspects of the case.
The allegations contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Suspended Physician Sentenced to 1 ½ Years for Illegally Dispensing Oxycodone and Falsely Billing Medicare in Undercover ProbeRead the Press Release
CHICAGO — A suburban physician whose medical license was suspended was sentenced today to 18 months in prison for health care fraud and illegally prescribing controlled substance medications. The defendant, SATHISH NARAYANAPPA BABU, who owned Anik Life Sciences Medical Corp., pled guilty in September 2014 to illegally prescribing oxycodone and other controlled substances, and fraudulently billing Medicare approximately $500,000, and fraudulently collecting approximately $216,000, for services he did not provide. Babu, 48 of Bolingbrook, operated Anik Life Sciences, a home-visiting physician’s office, in Darien and, previously, in Arlington Heights.
U.S. District Court Judge John J. Tharp also imposed a term of three years of supervised release and a restitution amount of $221,012. Babu agreed to forfeit the approximately $126,000, which was seized at the time of his arrest and will be credited toward the restitution ordered. Also forfeited were three automobiles ― a 2013 BMW, a 2001 BMW, and a 2010 Lexus. Babu was ordered to begin serving his sentence on May 13, 2015.
“This crime wasn’t an isolated act, it was a calculated, systematic effort to milk Medicare,” commented Judge Tharp while imposing sentence, “The defendant was stealing money from those in need….putting many in need at risk.” Babu admitted that he engaged in a scheme to defraud Medicare from approximately November 2011 through February 2014. In addition, Babu admitted that between November 2012 and December 2013, he issued multiple prescriptions for controlled substances to a patient, who was actually an undercover agent, despite never having seen or examined the patient. Babu also permitted unlicensed personnel associated with Anik Life Sciences to issue prescriptions to the patient. During the same period, Babu submitted false claims to Medicare for services provided to the patient that were not rendered by Babu or another licensed medical professional.
According to court documents, the undercover agent posed as a healthy individual covered by Medicare and seeking physician services to obtain prescription medication, including oxycodone. The agent claimed to have shoulder pain from a previous injury and to be on disability. On approximately 10 occasions, representatives from Anik Life Sciences, none of whom were licensed as physicians, nurses, or other medical professionals, visited the undercover agent in his purported apartment.
Babu caused unlicensed personnel from Anik Life Sciences to provide medical care ― including prescriptions issued under Babu’s name and DEA registration number for controlled substances ― to the undercover agent and then billed Medicare for that care. Medicare and its contractor paid about $4,000 to cover the costs of the prescriptions that Babu issued to the undercover agent.
In addition to the undercover agent, Babu had other patients, whom he certified and re-certified as eligible for home health services under Medicare, and submitted claims for care he provided, including home visits and diagnostic testing and review, without regard to whether the claimed services were medically necessary. Babu hired three foreign medical school graduates who were not licensed physicians in the United States to conduct home visits and advertised these individuals as “MDs” or doctors. Babu submitted Medicare claims indicating that he personally conducted the patient visits and provided comprehensive medical evaluations that he did not actually perform.
Babu also maintained an office staff that he directed to order certain diagnostic tests for every patient, including ultrasound and autonomic nervous system testing, without regard to medical necessity. He further prescribed controlled substances to patients who he had never seen or examined and permitted his unlicensed staff to fill out prescriptions and order refills for patients.
The guilty plea was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Dennis A. Wichern, Special Agent-in-Charge of the Chicago Field Division of the Drug Enforcement Administration; Lamont Pugh III, Special Agent-in-Charge of the Chicago Regional Office of the HHS-OIG; and Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation. The government was represented by Assistant U.S. Attorney Sarah Streicker.
Superseding Indictment Charges Two Brothers with Filing 30 Fraudulent Tax Returns Seeking Refunds of More Than $200 MillionRead the Press Release
A federal grand jury has returned a superseding indictment against two brothers late yesterday, adding conspiracy to commit wire fraud, mail fraud, aggravated identity theft and money laundering charges arising from a scheme in which they filed 30 fraudulent tax returns seeking refunds of more than $204 million, announced U.S. Attorney Rod J. Rosenstein of the District of Maryland, Principal Deputy Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service-Criminal Investigation (IRS-CI) Washington, D.C., Field Office.
“As millions of U.S. taxpayers prepare to honestly file their returns, the Tax Division, working with its law enforcement partners, remains committed to prosecuting those individuals who seek to abuse and manipulate our nation’s tax system for personal gain,” said Principal Deputy Assistant Attorney General Ciraolo.
“The IRS allegedly sent $16 million to two criminals who filed bogus tax returns claiming ‘refunds’ that were not owed,” said U.S. Attorney Rosenstein. “Federal agents and prosecutors have a duty to pursue perpetrators of such fraud schemes and try to recover money stolen from the United States Treasury.”
“The American tax system is designed to fund vital government services to people in this country,” said Special Agent in Charge Kelly. “It is not a slush fund for thieves and fraudsters. Those who illegally target our nation’s tax dollars for personal financial gain could face criminal prosecution and lengthy prison sentences."
The six-count superseding indictment alleges that Sean Aude Gallman, 38, of Upper Marlboro, Maryland, and Eric Maurice Gallman, 41, of Huntersville, North Carolina, established trusts and business entities, and used mailboxes at numerous private commercial postal carrier stores in Maryland and North Carolina as the addresses for the trusts and business entities. The defendants, acting as trustees and agents, mailed fraudulent tax returns to the IRS in the names of the trusts and businesses requesting refunds.
The indictment alleges that in January 2013, Sean Gallman mailed to the IRS a fraudulent 2012 tax return in the name of the Gallman Charitable Trust, requesting a refund of $8,218,930. Also around this time, the defendants mailed to the IRS a fraudulent 2012 tax return in the name of LEA Group Holdings Trust, requesting a refund of $8,293,562. The defendants knew that the trusts were not entitled to the tax refunds. After receiving refund checks in these amounts, on Feb. 15 and March 11, 2013, the defendants deposited the two refunds in bank accounts they controlled. To hide their receipt of these refunds, the defendants used cashier’s checks and other financial instruments to transfer a portion of the money to third parties and other bank accounts.
The indictment further alleges that from January 2013 to March 23, 2014, Sean Gallman filed an additional 19 fraudulent tax returns for 2012 or 2013, in the name of numerous purported trusts and business entities, seeking $200,924,949 in refunds. On March 16, 2014, Eric Gallman filed a fraudulent tax return for 2013 in the name of a business entity, seeking a refund of $275,548. And from February 2013 to March 2014, the defendants together filed eight fraudulent tax returns for 2012 or 2013 in the name of purported trusts and business entities, seeking $42,091,389 in refunds.
Altogether, the defendants are alleged to have filed a total of 30 fraudulent tax returns seeking refunds totaling $204,971,904, for which the IRS paid two refunds totaling $16,512,492.
The indictment seeks forfeiture of the two refunds paid by the IRS; $11,529,954 seized from numerous bank accounts; foreign currency and gold and silver coins seized from a residence in Upper Marlboro; nine residential properties located in Upper Marlboro and Laurel, Maryland, North Carolina and South Carolina; and two Mercedes-Benz vehicles and one Hyundai vehicle.
The defendants each face a statutory maximum sentence of 20 years in prison for each count of conspiring to commit mail and wire fraud, conspiring to commit money laundering, and mail fraud. Sean Gallman also faces a statutory maximum sentence of 20 years in prison for an additional count for mail fraud and for money laundering, and a statutory mandatory minimum sentence of two years in prison consecutive to any other sentence imposed for aggravated identity theft.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
U.S. Attorney Rosenstein praised the Tax Division and IRS-Criminal Investigation for its work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Thomas P. Windom and Trial Attorney Erin Pulice of the Department of Justice Tax Division, who are prosecuting the case.
Superseding Indictment Charges Two Brothers with Filing 30 Fraudulent Tax Returns Seeking Refunds of over $200 MillionRead the Press Release
Greenbelt, Maryland - A federal grand jury has returned a superseding indictment against Sean Aude Gallman, age 38, of Upper Marlboro, Maryland, and his brother Eric Maurice Gallman, age 41, of Huntersville, North Carolina, late yesterday, adding conspiracy to commit wire fraud, mail fraud, aggravated identity theft and money laundering charges arising from a scheme in which they filed 30 fraudulent tax returns seeking refunds of over $204 million.
The superseding indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Principal Deputy Assistant Attorney General Caroline D. Ciraolo for the Tax Division of the Department of Justice; and Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.
“The IRS allegedly sent $16 million to two criminals who filed bogus tax returns claiming ‘refunds’ that were not owed,” said U.S. Attorney Rod J. Rosenstein. “Federal agents and prosecutors have a duty to pursue perpetrators of such fraud schemes and try to recover money stolen from the United States Treasury.”
“As millions of U.S. taxpayers prepare to honestly file their returns, the Tax Division, working with its law enforcement partners, remains committed to prosecuting those individuals who seek to abuse and manipulate our nation’s tax system for personal gain,” said Principal Deputy Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division.
“The American tax system is designed to fund vital government services to people in this country,” said Special Agent in Charge Thomas J. Kelly. “It is not a slush fund for thieves and fraudsters. Those who illegally target our nation’s tax dollars for personal financial gain could face criminal prosecution and lengthy prison sentences."
The six count superseding indictment alleges that Sean and Eric Gallman established trusts and business entities, and used mailboxes at numerous private commercial postal carrier stores in Maryland and North Carolina as the addresses for the trusts and business entities. The defendants, acting as trustees and agents, mailed fraudulent tax returns to the IRS in the names of the trusts and businesses requesting refunds.
The indictment alleges that in January 2013, Sean Gallman mailed to the IRS a fraudulent 2012 tax return in the name of the Gallman Charitable Trust, requesting a refund of $8,218,930. Also around this time, the defendants mailed to the IRS a fraudulent 2012 tax return in the name of LEA Group Holdings Trust, requesting a refund of $8,293,562. The defendants knew that the trusts were not entitled to the tax refunds. After receiving refund checks in these amounts, on February 15 and March 11, 2013, the defendants deposited the two refunds in bank accounts they controlled. To hide their receipt of these refunds, the defendants used cashier’s checks and other financial instruments to transfer a portion of the money to third parties and other bank accounts.
The indictment further alleges that from January 2013 to March 23, 2014, Sean Gallman filed an additional 19 fraudulent tax returns for 2012 or 2013, in the name of numerous purported trusts and business entities, seeking $200,924,949 in refunds. On March 16, 2014, Eric Gallman filed a fraudulent tax return for 2013 in the name of a business entity, seeking a refund of $275,548. And from February 2013 to March 2014, the defendants together filed eight fraudulent tax returns for 2012 or 2013 in the name of purported trusts and business entities, seeking $42,091,389 in refunds.
Altogether, the defendants are alleged to have filed a total of 30 fraudulent tax returns seeking refunds totaling $204,971,904, for which the IRS paid two refunds totaling $16,512,492.
The indictment seeks forfeiture of the two refunds paid by the IRS; $11,529,954 seized from numerous bank accounts; foreign currency, and gold and silver coins, seized from a residence in Upper Marlboro; nine residential properties located in Upper Marlboro and Laurel, Maryland, North Carolina and South Carolina; and two Mercedes-Benz vehicles and a Hyundai vehicle.
The defendants face a maximum sentence of 20 years in prison for conspiring to commit mail and wire fraud, conspiring to commit money laundering, and mail fraud. Sean Gallman also faces a maximum sentence of 20 years in prison for an additional count for mail fraud and for money laundering; and a mandatory minimum of two years in prison consecutive to any other sentence imposed for aggravated identity theft.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein praised the Tax Division and IRS-Criminal Investigation for its work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Thomas P. Windom and Trial Attorney Erin Pulice of the Department of Justice Tax Division, who are prosecuting the case.
St. Johnsbury Man Sentenced to Prison for Child Pornography OffenseRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Jose Bruzual, 51, of St. Johnsbury, Vermont, was sentenced on February 23, 2015, in United States District Court in Burlington, Vermont, to serve 30-months imprisonment and a five-year period of supervised release following his conviction on one count of possession of child pornography, in violation of 18 U.S.C. § 2252(a)(4)(B). Judge William K. Sessions III also ordered Bruzual to pay a $100 special assessment.
According to court records and proceedings, in the fall of 2013, law enforcement was conducting undercover investigation into the use of file-sharing programs on the Internet to trade child pornography. It discovered that a computer with an IP address later associated with Bruzual had images of child pornography on it. Bruzual was then a teacher at St. Johnsbury Academy and a dorm proctor. On November 21, 2013, law enforcement executed a warrant to search Bruzual’s residence and computers, and discovered more than 1,000 still images and hundreds of videos of child pornography. Bruzual was taken into custody and later fired by St. Johnsbury Academy. Bruzual’s collection included sadistic and masochistic material. Among the images of child pornography found in Bruzual’s collection were images in which Bruzual had altered photographs of the victim child to feature the faces of known little girls.
The government advocated for a sentence of 78 months, which was at the low-end of the advisory Sentencing Guidelines range. In rejecting the government’s recommended sentence and granting the defendant’s request for a variance, Judge Sessions noted that at the time it was seized by law enforcement, Bruzual’s computer had the “share function” turned off, meaning that images of child pornography could not be uploaded by other offenders from his computer. Judge Sessions also noted that Bruzual had no prior criminal record, he is likely to be deported as he is a Venezuelan citizen, he will not receive treatment in prison because he will likely be deported, and the advisory Guideline for child pornography offenses can lead to excessive sentences. Based on the foregoing, Judge Sessions granted the requested variance and reduced Bruzual’s sentence from the 78-month sentence called for by the advisory Guidelines to 30-months.
Acting United States Attorney Eugenia A.P. Cowles commended the efforts of Homeland Security Investigations and investigators with the Vermont Attorney General’s Office in the investigation and prosecution of Bruzual. The prosecution of Bruzual was handled by Assistant U.S. Attorney Barbara A. Masterson. Bruzual was represented by David L. McColgin.
Acting U.S. Attorney Cowles noted that this prosecution is part of the U.S. Department of Justice=s Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney's Offices, 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 identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Smithfield Resident Pleads Guilty to Money Laundering and Harboring a FugitiveRead the Press Release
NEWPORT NEWS, Va. – Danish Syed, 19, of Smithfield, Va., pleaded guilty today to Conspiracy to Commit Money Laundering and Harboring a Fugitive.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Thomas J. Kelly, Special Agent in Charge of the Internal Revenue Service Criminal Investigation’s Washington, D.C., Field Office; and John S. Adams, Special Agent in Charge of the FBI’s, Norfolk Field Office, made the announcement after the plea was accepted by U.S. District Judge Raymond A. Jackson.Danish Syed was indicted by a federal grand jury on December 24, 2014. Syed faces a maximum penalty of twenty years in prison for conspiracy to commit money laundering and ten years in prison for harboring a fugitive. 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 with his plea agreement, Danish Syed is the half-brother of Mehdi Syed, who was charged, in March, 2014, with an account take over and identity theft scheme. As alleged in the indictment, Mehdi, under the guise of a legitimate company sought to obtain thousands of dollars from customers of SunTrust Bank by fraudulently transferring funds from individual accounts to nominee checking accounts established by Mehdi in the names of aliases and purported business entities. In April, 2014, Mehdi was located in North Carolina and agreed to surrender to authorities. Mehdi relocated his family from North Carolina to Smithfield, Virginia; the home of his mother, his step-father and his half-brother, Danish. After Mehdi failed to turn himself in, authorities interviewed his family members and they each claimed they did not know his whereabouts. The next day Mehdi’s mother, “NS,” contacted authorities and admitted they had lied to the FBI and that they did know Mehdi’s location as Danish Syed drove Mehdi to a hotel on the Eastern Shore of Virginia. Mehdi was arrested and on May 28, 2014 was released on bond and electronic monitoring. In June, 2014, Mehdi opened several bank accounts with FirstView in the names of aliases. On July 9, 2014 Mehdi’s electronic monitoring bracelet was located in a wooded area off of Mercury Blvd. in Hampton, Virginia, and on the same day a warrant was issued for his arrest.
One of the customers whose account was fraudulently accessed was “DS.” Beginning in August, 2014 Mehdi caused “DS’s” account to be accessed without his permission. Through third party payroll services thousands of dollars were transferred out of “DS’s” account and into the FirstView accounts Mehdi had created while on pre-trial release. FirstView closed several of the accounts they suspected were opened on suspicion of fraud and the funds were mailed to the address on record; Danish Syed’s home in Smithfield. Thereafter Danish Syed communicated with Mehdi Syed about the funds. On or about October 14, 2014 through October 16, 2014, Danish Syed deposited the FirstView checks, which represented fraudulent funds, into an account accessible by Mehdi. From October 15, 2014 through October 30, 2014 Mehdi withdrew nearly all of the funds that Danish had deposited into the account from ATM machines located in Lahore, Pakistan.
This case was investigated by IRS-CI and FBI. Assistant U.S. Attorneys Brian J. Samuels and Kaitlin Gratton are prosecuting the case on behalf of the United States.
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. 4:14CR72.Shafter Man Convicted of Possession with Intent to Distribute Four Pounds of MethamphetamineRead the Press Release
FRESNO, Calif. — United States Attorney Benjamin B. Wagner announced today that Santos Acevedo Gutierrez, 41, resident of Shafter, pleaded guilty yesterday to possession with attempt to distribute methamphetamine and agreed to the forfeiture of over $10,123.
According to court documents, on April 30, 2014 Kern County Sheriff Deputies executed a search warrant at Gutierrez’s home in Shafter, CA and seized approximately four pounds of methamphetamine as well as a digital scale, packaging materials and over $10,000 in United States Currency.
Gutierrez is scheduled to be sentenced by United States District Judge Lawrence J. O'Neill on May 18, 2015 at 8:30 AM. Gutierrez faces a maximum penalty of life in prison and a $10,000,000 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
This case was the product of the work of the Kern County Sheriff’s Office, and the Department of Homeland Security Investigations. Assistant United States Attorney Brian K. Delaney is prosecuting the case.Sanford Man Charged for Circle K RobberyRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces the arrest and charge by a federal complaint of Dontreaun Alexander (24, Sanford) with interference of interstate commerce by robbery. If convicted, he faces a maximum penalty of 20 years in federal prison.
According to the complaint, on December 28, 2014, Alexander and Brandon Maurice Long committed an armed robbery of the Circle K store located at 7530 Forest City Road in Orlando. Long was apprehended on the night of the robbery. He was indicted on February 4, 2015. Alexander fled the scene and was later arrested on February 23, 2015.
A complaint is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Federal Bureau of Investigation and the Orange County Sherriff’s Office. It will be prosecuted by Assistant United States Attorneys Vincent Chiu and Kara M. Wick.
Roswell Man Pleads Guilty to Federal Narcotics Trafficking ChargesRead the Press Release
ALBUQUERQUE – Simon Nicholas Sais, 44, of Roswell, N.M., pleaded guilty this afternoon in federal court in Las Cruces, N.M., to methamphetamine and cocaine trafficking charges. The guilty plea was entered without the benefit of a plea agreement.
Sais was arrested on Oct. 22, 2014, on a criminal complaint charging him with distribution of methamphetamine and cocaine. According to the complaint, between June 2013 and Aug. 2013, Sais sold approximately 359.4 grams of pure methamphetamine and approximately 43.5 grams of cocaine to an undercover agent working with the Lea County Drug Task Force (LCDTF) in Roswell and Hobbs, N.M. Sais subsequently was charged on Jan. 14, 2015, in a six-count indictment charging him with distributing methamphetamine on five occasions between June 2013 and Aug. 213, and distributing cocaine in June 2013.
During today’s proceedings, Sais pled guilty to the indictment, admitting that between June 26 and Aug. 13, 2013, he distributed methamphetamine and cocaine throughout Lea County and Chaves County, N.M.
Sais has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled. At sentencing, Sais faces a mandatory minimum of ten years and a maximum of life in prison.
This case was investigated by the Roswell office of the FBI and the Lea County Drug Task Force, and is being prosecuted by Assistant U.S. Attorney Marisa A. Lizarraga of the U.S. Attorney’s Las Cruces Branch Office.
The Lea County Drug Task Force is comprised of officers from the Lea County Sheriff’s Office, Hobbs Police Department, Lovington Police Department, Eunice Police Department the Tatum Police Department and the Jal Police Department, and is part of the HIDTA Region VI Drug Task Force. 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.
Reward Announced for Cyber FugitiveRead the Press Release
The Justice Department, in partnership with the U.S. Department of State’s Transnational Organized Crime (TOC) Rewards Program, announced today a reward of up to $3 million for information leading to the arrest and/or conviction of a prolific cyber criminal. Evgeniy Mikhailovich Bogachev was charged with numerous violations for his role as an administrator of the GameOver Zeus botnet.
The software was used to capture bank account numbers, passwords, personal identification numbers and other information necessary to log into online banking accounts. It is believed GameOver Zeus is responsible for more than 1 million computer infections, resulting in financial losses of more than $100 million.
Bogachev is on the FBI’s Cyber’s Most Wanted and is believed to be at large in Russia.
The TOC reward offer reaffirms the commitment of the U.S. government to bring those who participate in organized crime to justice, whether they hide online or overseas.
Bogachev was charged in 2014 in Pittsburgh, Pennsylvania, with conspiracy, computer hacking, wire fraud, bank fraud, and money laundering in connection with his alleged role as an administrator of the GameOver Zeus botnet. Bogachev was also indicted by criminal complaint in Omaha, Nebraska, in 2012 and charged with conspiracy to commit bank fraud related to his alleged involvement in the operation of a prior variant of Zeus malware known as Jabber Zeus.
Anyone with information on Bogachev should contact the FBI via the Major Case Contact Center, 1-800-CALL-FBI (225-5324), or the nearest U.S. Embassy or Consulate. You may also submit a tip online via tips.fbi.gov. All information will be kept strictly confidential.
Reward Announced for Cyber FugitiveRead the Press Release
WASHINGTON – The Justice Department, in partnership with the U.S. Department of State’s Transnational Organized Crime (TOC) Rewards Program, announced today a reward of up to $3 million for information leading to the arrest and/or conviction of a prolific cyber criminal. Evgeniy Mikhailovich Bogachev was charged with numerous violations for his role as an administrator of the GameOver Zeus botnet.
The software was used to capture bank account numbers, passwords, personal identification numbers and other information necessary to log into online banking accounts. It is believed GameOver Zeus is responsible for more than 1 million computer infections, resulting in financial losses of more than $100 million.
Bogachev is on the FBI’s Cyber’s Most Wanted and is believed to be at large in Russia.
The TOC reward offer reaffirms the commitment of the U.S. government to bring those who participate in organized crime to justice, whether they hide online or overseas.
Bogachev was charged in 2014 in Pittsburgh, Pennsylvania, with conspiracy, computer hacking, wire fraud, bank fraud, and money laundering in connection with his alleged role as an administrator of the GameOver Zeus botnet. Bogachev was also indicted by criminal complaint in Omaha, Nebraska, in 2012 and charged with conspiracy to commit bank fraud related to his alleged involvement in the operation of a prior variant of Zeus malware known as Jabber Zeus.
“To achieve justice in the cybersphere, we must be aggressive, innovative and relentless to ensure that those living outside our borders do not have a pass to commit crimes within them,” stated David J. Hickton, U.S. Attorney for the Western District of Pennsylvania. “We are ready to bring Evgeniy Bogachev to justice in federal court in Pittsburgh. We will use every available legal and diplomatic means to bring all cyber-criminals to justice wherever they reside.”
Anyone with information on Bogachev should contact the FBI via the Major Case Contact Center, 1-800-CALL-FBI (225-5324), or the nearest U.S. Embassy or Consulate. You may also submit a tip online via tips.fbi.gov. All information will be kept strictly confidential.
Removed Alien Sentenced to Time Served for Re-entering United States Without PermissionRead the Press Release
PITTSBURGH - A citizen of Mexico, plead guilty and has been sentenced in federal court to time served (5 ½ months incarceration) on his conviction of violating federal immigration laws, United States Attorney David J. Hickton announced today.
United States District Judge Mark R. Hornak imposed the sentence on Joel Sanchez-Lara, 38, of Mexico.
According to information presented to the court, on or about Sept. 8, 2014, Sanchez-Lara was found in Carnegie, Pa., after having unlawfully re-entered the United States following removal on three previous occasions and not having applied for or received permission to re-enter.
Assistant United States Attorney Margaret E. Picking prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended United States Immigration and Customs Enforcement (ICE) for the investigation leading to the successful prosecution of Sanchez-Lara.
Raleigh Resident Sentenced to 60 Months for Loan and Insurance FraudRead the Press Release
GREENVILLE – United States Attorney Thomas G. Walker announced that today in federal court, Senior United States District Judge Malcolm J. Howard sentenced TERESA LYN FLETCHER , age 55, of Raleigh, North Carolina, to 60 months imprisonment, followed by 5 years of supervised release.
FLETCHER pleaded guilty to a Criminal Information filed on September 3, 2014, charging her with two counts of bank fraud and one count of mail fraud. According to the investigation, charging documents and statements made in court, FLETCHER engaged in separate schemes to defraud Bank of North Carolina, TD Bank, and Liberty Mutual Insurance over a 10-month span in 2013.
In January 2013, FLETCHER provided false information about her income and assets to Bank of North Carolina in order to obtain a personal loan. Among other things, FLETCHER falsified her credit application and submitted bogus wage records. After Bank of North Carolina approved the loan based on FLETCHER’s fraudulent representations, FLETCHER proceeded to rapidly dissipate the loan proceeds. When FLETCHER defaulted on the loan for non-payment, she filed a false identity theft report with Equifax claiming that someone else had opened the loan account.
In February 2013, FLETCHER closed on the purchase of a $1.85 million residence in Raleigh. To finance the purchase, FLETCHER applied to TD Bank for over $1.65 million in loans. During the loan approval process, FLETCHER gave false information to TD Bank about her financial condition and the nature of the sales transaction. Among other things, FLETCHER completed a loan application in which she falsified her assets, provided TD Bank with counterfeit bank records and fake IRS Forms W-2 reflecting grossly inflated wages, and fraudulently represented in the HUD-1 settlement statement that she had received a “gift of equity” to be applied to the purchase price, when, in fact, it was a concealed side loan. After defaulting on her loan obligations to TD Bank, FLETCHER submitted a false identity theft report to Experian in an effort to prevent the negative item from appearing on her credit report.
FLETCHER’s Raleigh residence was thereafter insured by Liberty Mutual Insurance. From approximately May 2013 to October 2013, FLETCHER made repeated false claims against the Liberty Mutual homeowner’s policy for reimbursement of expenses she purportedly incurred to repair the residence after a spring storm hit the Raleigh area. In furtherance of the scheme, FLETCHER generated counterfeit records from contractors and vendors and provided them to Liberty Mutual to support her claims.
Investigation of this case was conducted by the United States Secret Service. The prosecution was handled by Assistant United States Attorney Adam F. Hulbig.
Orange County Man Sentenced for Child Pornography ViolationsRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – A 32-year-old Orange, Texas man has been sentenced to 10 years in federal prison for child pornography violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Jason Ryan Bickham pleaded guilty on Sep. 17, 2014 to possession of child pornography and was sentenced to 120 months in federal prison today by U.S. District Judge Thad Heartfield.According to information presented in court, law enforcement authorities were alerted by a citizen that Bickham had images containing child pornography on his cellular phone. Bickham provided officers consent to search the phone and a forensic analysis revealed multiple images and videos of child pornography. Bickham was indicted by a federal grand jury on June 4, 2014.
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.
This case was investigated by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Orange Police Department and the Beaumont Police Department and prosecuted by Assistant U.S. Attorney Randall L. Fluke.Ohio man sentenced for role in heroin conspiracyRead the Press Release
HUNTINGTON, W.Va. – United States Attorney Booth Goodwin announced today that Eric Greer, 39, of Gallipolis, Ohio, was sentenced to 46 months in federal prison.
In October 2014, Greer pleaded guilty to his role in a conspiracy to transport heroin from Detroit for distribution in Gallipolis, Ohio, and Mason County, West Virginia. He admitted to participating in the conspiracy from the summer of 2011 to October 2012.
Chief United States District Judge Robert C. Chambers imposed the sentence.
The case was investigated by the West Virginia State Police and Drug Enforcement Administration. Assistant United States Attorney John Frail handled the prosecution.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of heroin and prescription drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal heroin and pill trafficking, eliminating open air drug markets and curtailing the spread of opiate painkillers in communities across the Southern District.
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Nurse Practitioner Indicted on Health Care Fraud and Aggravated Identity Theft ChargesRead the Press Release
ATLANTA - Daphne Maria Patterson has been arraigned on federal charges of health care fraud and aggravated identity theft. She allegedly stole patients and their family member’s identities and billed insurance providers for services she did not render. Patterson was indicted by a federal grand jury on February 17, 2015.
“This health care provider is charged with committing an egregious violation of her patients’ trust. The indictment alleges that she not only used patients’ information to submit false claims to insurance companies, she also tried to make even more profits by stealing the personal information of patients’ family members and filing additional false claims on their behalf,” said Acting U.S. Attorney John Horn. “When someone steals money through health care fraud, it’s not just a matter of illegal profit by the thief, as the theft impacts all of our medical costs.”
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “Health care programs are critical to those who are truly in need. Such conduct by those individuals who would divert those much needed but limited funds for personal gain should not and will not be condoned. The FBI takes all allegations of health care fraud very seriously and will continue to work with its various law enforcement partners to present for prosecution those individuals involved in this criminal activity.”
“Thanks to the combined efforts of my office and federal agencies, I believe we have stopped a major perpetrator of insurance fraud,” said Georgia Insurance Commissioner Ralph Hudgens. “I credit the excellent investigative work by all agencies with breaking this case open.”According to Acting U.S. Attorney Horn, the charges, and other information presented in court: Daphne Patterson is a registered nurse practitioner and owner of Healthier U 4 Ever Wellness Center, a clinic in Stone Mountain, Georgia. The indictment alleges that while employed with another medical practice in Lawrenceville, Georgia, Patterson stole the personal information of her patients to file false claims with United Insurance Company for various allergy tests and treatment that the patients never received. Additionally, she used her access to the patients’ personal information in order to steal family members’ identifying information and to seek further reimbursement from United for services she had not rendered to patients she had never seen.
The indictment further alleges that after leaving the medical office and opening her own clinic in Stone Mountain, Patterson continued the fraudulent scheme by billing several insurance companies for allergy tests and treatments that she did not provide to her patients. In total, Ms. Patterson obtained more than $1 million from the insurance companies on the basis of her false claims.
Daphne Maria Patterson, 44, of Stone Mountain, Georgia, was arraigned before U.S. Magistrate Judge E. Clayton Scofield III. Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Federal Bureau of Investigation and the Georgia Department of Insurance.
Assistant United States Attorney Jamie Mickelson is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Nassau County Man Sentenced to More Than 19 Years in Prison for Producing and Receiving Child PornographyRead the Press Release
Jacksonville, Florida – U.S. District Judge Brian J. Davis today sentenced John Dewey Todd (61, Fernandina Beach) to 19 years and 7 months in federal prison for producing and receiving child pornography over the Internet. The Court also ordered him to serve a 10-year term of supervision upon his release from prison and to register as a sex offender. Todd pleaded guilty to the offenses on September 25, 2014.
According to court documents, law enforcement agents executed a federal search warrant at Todd’s residence in Fernandina Beach on November 15, 2013, during which they recovered several electronic devices. In an interview with agents, Todd admitted to having “child pornography” on his computers. He further admitted to collecting child pornography for a “couple of years.” At sentencing, evidence was presented showing that Todd had been collecting child pornography for 15 years.
Fifty-one media discs were found hidden in Todd’s attic containing at least 12,000 files of child pornography, including 550 videos and 11,500 still images. An additional 4,000 files of child pornography were found on other media. Todd’s collection included videos depicting thousands of instances of minors engaged in sexually explicit conduct, depictions of bondage, sadistic and masochistic conduct, and other portrayals of violence. Police also found five thumb drives in a jacket pocket hanging in Todd’s closet. Upon examination of the thumb drives, agents discovered four self-produced videos made by Todd, in which he secretly recorded the genitalia of prepubescent girls using the bathroom in his home.
"This sentencing underscores the severity of crimes against our children," said Susan L. McCormick, special agent in charge of HSI Tampa. "HSI will continue to direct our vast resources toward protecting the most vulnerable in our society."
This case was investigated by the U.S. Immigration and Customs Enforcement's Homeland Security Investigations and the Jacksonville Sheriff's Office, with assistance from the Nassau County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Kelly S. Karase.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by 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 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.projectsafechildhood.gov. For more information about internet safety education, please visit www.projectsafechildhood.gov and click on the tab "other resources."
Monroe Woman Sentenced to 6½ Years for Firearm and Drug ConvictionsRead the Press Release
Contact: Andrew McCormack
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Darlene Ford, 59, of Monroe, was sentenced in U.S. District Court by Judge John A. Woodcock, Jr. to 6½ years in prison, to be followed by 3 years of supervised release, for conspiring to manufacture marijuana, maintaining a drug involved premises, and aiding and abetting a felon in possession of a firearm. Ford was found guilty after a jury trial on February 6, 2014.
Court proceedings revealed that in November 2011 a search warrant was executed at the defendant’s home in Monroe where agents found a large and sophisticated indoor marijuana growing operation and two rifles. Trial evidence revealed that the defendant and other family members conspired to grow hundreds of marijuana plants at the residence. The defendant also illegally aided and abetted her husband, a convicted felon, to possess the two rifles found during the search of her home.
The investigation was conducted by the Maine Drug Enforcement Agency, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Waldo County Sheriff’s Office and the Maine State Police.
Miami Resident Pleads Guilty in Mortgage Fraud SchemeRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that Enrique Hernandez (34, Miami) today pleaded guilty to conspiracy to commit bank and mail fraud. He faces a maximum penalty of 30 years in federal prison. As part of the plea, Hernandez has agreed to make full restitution in the amount of $899,700, the approximate losses resulting from his role in the conspiracy.
According to the plea agreement and court proceedings, Hernandez participated in a mortgage fraud conspiracy in which some conspirators entered into agreements to purchase properties for amounts in excess of the original asking price. The conspirators then inserted false and fraudulent information about the various conspirator-purchasers on mortgage loan applications, or Fannie Mae Form 1003s, that were submitted in support of the loan requests. Upon closing each sale, the conspirators would use a portion of the inflated loan proceeds to pay the seller the original asking price for the property. The remaining excess funds, the amount between the original asking price and the inflated mortgage loan amount, were then shared amongst the conspirators. The purchased properties were subsequently allowed to fall into foreclosure.
Hernandez obtained $108,724 in proceeds for his participation in the scheme.
This case was investigated by the Federal Bureau of Investigation and the Federal Housing Finance Agency, Office of Inspector General. It is being prosecuted by Assistant United States Attorney Jay G. Trezevant and Special Assistant United States Attorney Chris Poor.
Maryland Man Found Guilty of Assault with Intent to Kill in Shooting Outside Northeast Washington Shoe Store Four People Were Hit by Gunfire on Busy Street in Broad Daylight AttackRead the Press Release
WASHINGTON – Victor L. Coley, 52, of Upper Marlboro, Md., was found guilty by a jury today of four counts of assault with intent to kill while armed and other offenses for a broad daylight shooting that took place outside a shoe store in Northeast Washington, U.S. Attorney Ronald C. Machen Jr. announced.
Coley was found guilty of a total of 15 charges following a trial in the Superior Court of the District of Columbia. The Honorable Michael Ryan scheduled sentencing for April 27, 2015.
According to the government’s evidence, the shootings took place at 1:10 p.m. on Nov. 6, 2013, outside the Payless shoe store at the corner of Minnesota Avenue and Clay Place NE. Coley shot one man in the back and another man in the back of the head and then the chest. As the second victim managed to stumble away, Coley fired additional shots, two of which struck innocent bystanders. The man who was shot in the back is paralyzed from the waist down; the other three victims have recovered from their injuries. Dozens of people were outside the shoe store and at a nearby bus stop at the time that the gunfire began.
The investigation revealed that Coley had tried to enlist the intended targets as part of his drug-dealing crew, but they refused. After the shooting, he hid the gun in a house behind the shoe store. Coley was arrested minutes later, while coming out of the house. He has been in custody ever since.
In announcing the verdict, U.S. Attorney Machen commended the work of the officers and detectives who investigated the case for the Metropolitan Police Department. He also commended the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Richard Cheatham and Stephanie Gilbert; Victim/Witness Advocate Diana Lim, Assistant U.S. Attorney Robert Eckert, and former Assistant U.S. Attorney James Smith. Finally, he expressed appreciation for the work of Assistant U.S. Attorneys Jeffrey Nestler and David Misler, who investigated and prosecuted the case.
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Manteca Oncologist Agrees to Pay $550,000 to Resolve False Claims Act AllegationsRead the Press Release
SACRAMENTO, Calif - United States Attorney Benjamin B. Wagner announced today that Prabhjit S. Purewal, M.D., a Manteca based oncologist, agreed to pay the United States $550,000 to settle allegations that he defrauded Medicare, Tricare and Medicaid by billing these public insurers for chemotherapy drugs the US Food and Drug Administration had not approved for use in the United States. Dr. Purewal has paid the United States $400,000 to date.
The settlement resolves the United States’ contentions that Dr. Purewal had, over a two year period ending in May 2011, purchased chemotherapy drugs from Warwick Healthcare Solutions, Inc., also known as Richard’s Pharma (“Warwick”), administered the drugs to his patients, and improperly sought and received reimbursement for the drugs from Medicare and other public insurers. Warwick, a former United Kingdom based drug distributer, did not have a license to distribute drugs in the United States, and many of the drugs Dr. Purewal purchased from Warwick were not FDA approved. The FDA regulates pharmaceuticals in the US to ensure the drugs are safe and effective. The United States contended that by claiming and receiving reimbursement from Medicare, Tricare, and Medicaid for these drugs, Dr. Purewal violated the federal False Claims Act.
“Investigating healthcare related fraud allegations is one of our District’s top priorities,” said U.S. Attorney Wagner. “My office works closely with our federal and state partners to ensure that our publicly funded healthcare insurers reimburse practitioners only for approved services and medicines.”
“Patients -- especially those battling cancer and other life-threatening illnesses -- should be able to trust that their physicians only use medicines approved by the FDA, medicines proven to be safe and effective,” said Special Agent in Charge Ivan Negroni of the U.S. Department of Health and Human Services Office of Inspector General. “Our agency will continue to pursue health care providers that ignore requirements designed to protect patient health and federal health care programs.”
“Ensuring that patients receive FDA-approved prescription drugs from the legitimate supply chain is an FDA priority,” said Lisa Malinowski, Special Agent in Charge of the FDA’s Office of Criminal Investigations. “For drugs that enter the U.S. from outside that protected system, there is no guarantee that the drug is FDA-approved, not counterfeit, or otherwise lacks safety or effectiveness. We will continue to work to protect the health of patients who rely on prescription drugs and to ensure the safety and effectiveness of those drugs.”
The case was investigated by the United States Office of Inspector General of the US Department of Health and Human Services, the FDA’s Office of Criminal Investigations and the US Defense Health Agency. Assistant United States Attorney Kurt A. Didier prosecuted the case.
Manhattan Deputy U.S. Attorney and FBI Assistant Director Announce Return to Italy of A Painting Attributed to Giambattista Tiepolo and Ancient Etruscan Bronze Sculpture of HeraklesRead the Press Release
Richard Zabel, the Deputy United States Attorney for the Southern District of New York, and Diego Rodriguez, Assistant Director in Charge New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the return to the Italian Government of two pieces of Italian cultural heritage – “The Holy Trinity Appearing to Saint Clement,” attributed to the 18th Century painter Giambattista Tiepolo (the “Tiepolo”), and an ancient Etruscan bronze statuette of Herakles dating from the 6th or 5th Century B.C.E. (the “Statuette”). Each artwork was returned to Warrant Officer Angelo Ragusa of the Rome Office of the Archaeological Section of the Carabinieri Tutela Patrimonio Culturale, today at a repatriation ceremony at the United States Attorney’s Office in Manhattan.
Manhattan Deputy U.S. Attorney Richard Zabel stated: “These two works of art were stolen from their owners many decades ago and through shadowy channels arrived in the United States. Both the Tiepolo painting and the Etruscan sculpture represent Italy’s rich cultural history and today will be returned to their homeland. We will continue to work with the FBI to return stolen items to their rightful owners.”
FBI Assistant Director Diego Rodriguez stated: “For decades, two significant pieces of Italian heritage have been on the run. Elusive. And out of reach, until today. We are proud to be able to return these key pieces of work back to the Italians – and to the Oliveriano Archaeological Museum.”
The Tiepolo was previously reported stolen from a private home in Turin, Italy, in or about August 1982. Following the theft, the painting’s whereabouts were unknown until it appeared for auction in New York in January 2014. After being provided with evidence that the painting was the same piece previously reported stolen in 1982, the Tiepolo’s consignor agreed to its seizure by the FBI and its return to Italy. The United States Attorney’s Office submitted a proposed stipulation and order providing for the Tiepolo’s seizure and return, and the U.S. District Court for the Southern District of New York entered that order on January 23, 2015. Italian authorities continue to investigate the circumstances surrounding the theft of the painting, including the circumstances of its importation into the United States.
The Statuette was reported stolen from the Oliveriano Archeological Museum in Pesaro, Italy, in January 1964 along with several other items, including ivory tablets of the 9th and 13th centuries, early Christian glass artifacts from the Catacombs of Rome, and Italic and Roman statuettes. After its theft from the museum, the Statuette passed through several hands, and was eventually discovered by Italian and U.S. authorities when it was offered for sale by an auction house in Manhattan. After being provided with evidence that the Statuette was the same piece stolen from the museum, the consignor agreed to the FBI’s seizure of the Statuette for repatriation to Italy. The United States Attorney’s Office submitted a proposed stipulation and order providing for the Statuette’s seizure and return, and the U.S. District Court for the Southern District of New York entered that order on October 2, 2014.
Mr. Zabel thanked the Washington Bureau of INTERPOL, which originally brought the painting to the attention of the FBI and the U.S. Attorney’s Office following the painting’s importation into the United States. Mr. Zabel further praised the investigative work of the FBI in this matter, and its ongoing efforts to find and repatriate stolen and looted art and cultural property.
Each case is being handled by the Office’s Money Laundering and Asset Forfeiture Unit. Assistant United States Attorney Andrew C. Adams is in charge of the case involving the Tiepolo painting, and Assistant United States Attorney Christine I. Magdo is in charge of the case involving the Etruscan statuette.
In re Ancient Etruscan Bronze Herakles Stipulation and Order
In re Giambattista Tiepolo Painting Stipulation and Order
Man pleads guilty to threatening Senator ManchinRead the Press Release
CHARLESTON, W.Va. – United States Attorney Booth Goodwin announced today that Steven Anthony Major, 50, from Barboursville, West Virginia, pleaded guilty to threatening to murder United States Senator Joseph Manchin, III.
Major made four separate threats to murder Sen. Manchin from Mar. 17-20, 2014. He admitted to making calls to Sen. Manchin’s Charleston and Washington D.C. offices, during which he left messages identifying himself, and making violent threats against the senator and his family.
Major faces up to 10 years in federal prison. He is scheduled to be sentenced on May 27, 2015.
United States District Judge Thomas E. Johnston presided over the plea hearing.
The investigation is being conducted by the Federal Bureau of Investigation, United States Capitol Police and West Virginia State Police. Assistant United States Attorney Haley Bunn is handling the prosecution.
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Los Angeles-Area Executive Arrested in $9 Million Bank Fraud SchemeRead the Press Release
A Los Angeles-area executive was arrested today in connection with a $9 million scheme to defraud United Commercial Bank and East West Bank, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Acting U.S. Attorney Stephanie Yonekura of the Central District of California, Special Inspector General Christy Romero for the Troubled Asset Relief Program (SIGTARP), Assistant Director in Charge David L. Bowdich of the FBI’s Los Angeles Field Office and Special Agent in Charge Erick Martinez of the IRS-Criminal Investigation’s (IRS-CI) Los Angeles Field Office.
Chung Yu “Louis” Yeung, 37, of San Dimas, California, was indicted on Oct. 22, 2014, in the Central District of California for one count of conspiracy to commit bank fraud and five counts of bank fraud. The indictment was under seal until his arrest today. Guo Xiang “David” Fan, 52, was also indicted for conspiracy to commit bank fraud and bank fraud, as well as money laundering, and remains at large.
According to the indictment, Yeung was Vice President and Fan was President of Eastern Tools and Equipment, an Ontario, California company that sold portable generators and other equipment. The indictment charges Yeung and Fan with defrauding United Commercial Bank (UCB) and East West Bank, which took over UCB’s accounts, of more than $9 million.
Specifically, the indictment alleges that Yeung, Fan, and others overstated Eastern Tools’ accounts receivable to increase its line of credit with UCB and later East West. To support the inflated accounts receivable submitted to the banks, Yeung, Fan, and others allegedly opened approximately 20 shell companies, backstopped with fictitious business name statements, post office boxes, bank accounts, and telephone numbers. They then allegedly moved money from Eastern Tools’ bank accounts into the shell companies’ bank accounts to create the false appearance of substantial commercial activity. Finally, Yeung, Fan, and others allegedly siphoned those funds into their own personal accounts.
East West Bank allegedly sustained a loss of approximately $9,157,172 as a result of the fraud scheme.
In November 2008, UCBH Holdings, Inc., UCB’s parent company, received $298.7 million in federal taxpayer funds through the U.S. Department of the Treasury Troubled Asset Relief Program (TARP). On Nov. 6, 2009, UCB failed and was taken over by state and federal regulators. As a result of the bank’s failure, none of the TARP funds were repaid, and the $298.7 million TARP investment has been written-off.
The charges contained in an indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
The case is being investigated by SIGTARP, the FBI and IRS-CI, and prosecuted by Trial Attorney Fred Medick of the Criminal Division’s Fraud Section.
Yeung Indictment
Local Man Pleads Guilty to Theft of Government FundsRead the Press Release
St. Louis, MO – MICHAEL LEON ADKINS, SR. pled guilty to theft of government funds in connection with a scheme to obtain housing benefits through the United States Department of Housing and Urban Development (HUD) between 2009 and 2014.
According to the plea agreement, Adkins abused HUD subsidized housing programs in two ways: 1) by "renting" his own house to his wife who accepted housing benefits from HUD and 2) by fraudulently seeking and accepting HUD benefits for a separate apartment he occupied. Adkins admitted to failing to report the government funds he received as his wife’s "landlord" while applying for benefits as a tenant. Adkins was able to conceal the funds he received as a landlord by placing his home in the name of his son. In all, Adkins admitted his scheme netted him more than $30,000 in funds intended for the indigent.
Adkins, St. Louis, Missouri, pled guilty to one count of theft of government funds before U.S. District Judge E. Richard Webber. Sentencing has been set for June 5, 2015.
This charge carries a maximum penalty of 10 years in prison and/or a fine of up to $250,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
The case was investigated by the HUD Office of the Inspector General. Assistant United States Attorney Tom Albus is handling the case for the U.S. Attorney’s Office.
Lake Jackson Attorney and Others Charged in Mortgage Fraud SchemeRead the Press Release
HOUSTON - Kirk Lawrence Brannan, 60, a real estate and tax attorney in Lake Jackson, has turned himself in to authorities following the return of a federal indictment alleging he and others participated in a mortgage fraud scheme involving properties in Surfside and Freeport, announced U.S. Attorney Kenneth Magidson.
Brannan is charged in the two-count indictment along with Chucobie Lanier, 37, David Lee Morris, 52, and Derwin Jerome Blackshear, 47. They are set to make their initial appearance today before U.S. Magistrate Judge Nancy K. Johnson at 2:00 p.m.
The indictment, returned under seal Feb. 18, 2015, and unsealed today, alleges that during 2005 through 2009 Brannan sold a number of beach homes that he or family members owned in Surfside and Freeport through a mortgage fraud scheme. Lanier approached Brannan and offered to obtain buyers for Brannan’s homes if Brannan would kick-back to Lanier the proceeds from the sales that were above an agreed upon amount, according to the indictment. Lanier allegedly distributed the fraudulently obtained funds to Morris and Blackshear who helped organize the fraud scheme.
The indictment further alleges Brannan’s beach homes were purchased by “straw buyers” who had no intention of paying of the mortgage loans on their own or living in the homes. Numerous misrepresentations were allegedly made in the mortgage loan applications, and the lenders were induced to lend inflated sums for the purchases.
According to the indictment, all of the beach homes sold through the scheme ended up in foreclosure.
All four defendants are charged with conspiracy and face up to 30 years in federal prison as well as a possible $1 million fine, upon conviction. Brannan, Lanier and Morris are also charged with one count of bank fraud and face the same penalty if convicted on that charge.
The charges are the result of an investigation by FBI and the Texas Department of Public Safety. Assistant U.S. Attorney Robert S. Johnson is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Jury Finds Two More Brothers Guilty in Human Trafficking SchemeRead the Press Release
A jury today returned guilty verdicts against Mykhaylo Botsvynyuk, and his brother Yaroslav Botsvynyuk, a/k/a Yaroslav Churuk, both Ukrainian nationals living in Canada, on the charge of conspiracy to participate in a racketeering enterprise in connection with a human trafficking scheme. They face up to 20 years in prison. The defendants’ brothers, Omelyan and Stepan Botsvynyuk, were convicted at trial in October of 2011. A fifth brother, Dmytro Botsvynyuk, remains in Ukraine, a country that has not entered into an extradition treaty with the United States.
From the Fall of 2000 through the Spring of 2007, the defendants operated a human trafficking organization which smuggled young Ukrainian immigrants into the United States and then forced them to work for little or no pay. The defendants promised the victims they would earn $500 per month with free room and board by working for their organization. They smuggled the workers into the United States then put them to work as cleaning crews in retail stores, private homes, and office buildings without paying them. They used physical force, threats of force, sexual assault, and debt bondage to keep the victims in involuntary servitude. Even after some of the victims escaped, the defendants continued with their extortionist activities in order to recoup the organization’s investment in the workers. If direct threats failed and the workers did not return or make good on their debts, the Botsvynyuk brothers threatened violence to the workers’ families still residing in Ukraine. Some of the threats included threats to place the children of the workers, children who were still in Ukraine, into prostitution to work off the victims’ debts if the victims ran away.
Rather than bringing the workers to the United States legally, the Botsvynyuk Organization obtained tourist visas to Mexico and had operatives who coached the workers on how to enter the United States illegally. While some of the workers successfully entered the United States, others were taken into custody by U.S. immigration officials, where they remained in detention for almost two months. Once the victims were released, with immigration documents and summonses to appear for immigration hearings, the Botsvynyuk Organization transported them to Philadelphia, Pennsylvania, either by bus or by plane. The brothers then confiscated the immigration documents and summonses from the workers and put them to work cleaning large chain stores at night, such as Target, Acme, Best Buy and Walmart, as well as smaller stores. Throughout their employment with the brothers, the workers lived with up to five people in one room, slept on dirty mattresses on the floor, and were rarely, if ever, paid. None of the victims was paid what was promised and they were told that they had to continue working until their debts, usually $10,000 or more, were paid. Workers were allegedly struck and beaten, sometimes in the presence of others, if they attempted to quit or leave the employ of the Botsvynyuk brothers. One female worker was brutally raped by one of the coconspirators. After some workers escaped, Omelyan Botsvynyuk resorted to extorting the workers’ families in Ukraine, threatening them with harm if the workers did not return to work or pay their debts. In one instance, he threatened the mother of a victim that he would kidnap her younger son and send him back to her finger-by-finger if the victim did not return to work.
Omelyan Botsvynyuk was sentenced to life in prison plus 20 years and was ordered to pay restitution in the amount of $288,272.29; Stepan was sentenced to 20 years in prison and was ordered to pay restitution in the amount of $288,272.28.
The case was investigated by the Joint FBI Organized Crime/ICE Human Trafficking Alien Smuggling Task Force. Assistance was provided by Pennsylvania State Police, the Philadelphia Police Department, the U.S. Department of Labor Office of Inspector General, the Toronto Police Department, the German National Police, the Berlin State Police, the Ukraine Security Service, the US National Central Bureau, the Department of Justice Office of International Affairs, the FBI LEGAT’s Office in Kiev, Ukraine, and INTERPOL.
Indictment Charges Convicted Felon in Possession of A FirearmRead the Press Release
Domingo Vargas, 36, of Philadelphia, Pennsylvania was charged today by Indictment with possession of a firearm by a convicted felon, announced United States Attorney Zane David Memeger.
If convicted the defendant faces a maximum possible sentence of 10 years in prison, three years of supervised release, a $250,000 fine, and a $100 special assessment.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Philadelphia Police Department and is being prosecuted by Assistant United States Attorney Jeffery W. Whitt.
Husband of Former DeKalb County Commissioner Boyer Charged with Stealing County FundsRead the Press Release
ATLANTA – John Boyer, the husband of former DeKalb County, Georgia, Commissioner Elaine Boyer, has pleaded guilty to stealing county money that was paid to a third party, who then funneled the funds into a personal bank account used by the Boyers. The plea stems from Elaine Boyer’s conviction on similar charges in September, 2014.
“John Boyer exploited his wife’s position as a DeKalb County Commissioner to steal thousands of dollars in county funds. The Boyers’ scheme put tax payer money in their pockets – and left the citizens of DeKalb County with the tab,” said Acting U.S. Attorney John Horn.
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “The use of public office for personal gain is a serious breach of trust that should not be tolerated. The FBI has ranked public corruption as its number one criminal program priority due to its vast harm created along many lines and asks that anyone with information regarding such activity to please contact their nearest FBI field office.”
According to Acting U.S. Attorney Horn, the charges, and other information presented in court: In DeKalb County, Georgia, the Board of Commissioners serves as the legislative branch of the DeKalb County Government. The Board of Commissioners is comprised of seven part-time commissioners, who are elected to serve four-year terms. Each of the seven Commissioners is responsible for the management of their respective offices, which includes controlling the offices’ budget and hiring staff members, contractors, and consultants. In recent years, the operating budget for a Commissioner’s office has been approximately $250,000 per year. The Commissioners may use their budget only for county-related business. In 1992, Elaine Boyer began serving as the Commissioner of District 1, which serves citizens in north DeKalb County, including in Brookhaven, Dunwoody, Tucker, and Smoke Rise, Georgia. In August 2014, Elaine Boyer resigned as the Commissioner of District 1.
In 2009, Elaine and John Boyer experienced financial difficulties. As a result, John Boyer devised an unlawful kickback scheme to obtain money from DeKalb County. In particular, in or about September 2009, Elaine Boyer, as the Commissioner of District 1, hired a family friend as a political advisor (“Advisor”), allegedly to assist her with government consulting.
From September 2009 to November 2011, false invoices were submitted to Elaine Boyer’s office for services supposedly rendered by Advisor. In fact, Advisor performed no services for DeKalb County. Elaine Boyer used the false invoices as the basis to authorize payments to Advisor. Based on requisition requests from Elaine Boyer, DeKalb County mailed approximately 35 checks, via the United States Postal Service, to Advisor for consulting services that were never performed. In total, DeKalb County paid Advisor more than $80,000.
John Boyer then instructed Advisor to deposit the money that the Advisor received from DeKalb County into a bank account used by Elaine and John Boyer. Consequently, after being paid by DeKalb County, Advisor funneled approximately $60,000 received from DeKalb County into a personal bank account used by the Boyers. In turn, the Boyers used the money deposited into the account to pay personal living expenses.
On September 3, 2014, Elaine Boyer, 58, of Stone Mountain, Georgia, pleaded guilty to one count each of conspiring to commit mail fraud and wire fraud. Ms. Boyer is scheduled to be sentenced before U.S. District Judge Orinda D. Evans on March 20, 2015, at 1:30 p.m.
John Boyer, 62, of Stone Mountain, Georgia, was charged via a criminal information with conspiring to commit mail fraud. Boyer pleaded guilty to that charge. In determining Boyer’s sentence, the Court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.
The sentencing hearing for Mr. Boyer is scheduled for May 6, 2015, at 2:00 p.m., also before Judge Evans.
This case is being investigated by Federal Bureau of Investigation.
Assistant U.S. Attorney Jeffrey W. Davis is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Huntsville Police Officer Pleads Guilty to Conspiracy to Fix Cocaine Trafficking ChargesRead the Press Release
BIRMINGHAM - A Huntsville police officer pleaded guilty today in federal court to taking part in a conspiracy to fix cocaine trafficking charges against an individual arrested by another Huntsville officer, announced U.S. Attorney Joyce White Vance, FBI Special Agent in Charge Roger C. Stanton and Huntsville Police Chief Lewis Morris.
LEWIS BERNARD HALL, 45, of Meridianville, Ala., entered his guilty plea to the conspiracy before U.S. District Judge R. David Proctor. His sentencing date has not been set.
“A corrupt police officer poisons the public's trust in law enforcement. Most officers work hard to protect their communities and are willing to put their lives on the line in that service," Vance said. "Our communities need and deserve police officers with that integrity. The conduct of individuals like this defendant is not worthy of the badge and I applaud the work of the Huntsville Police Department and the FBI in bringing Mr. Hall to justice."
"While the majority of police officers serve and protect the public with honor, there are those few, like Mr. Hall, who violate the public’s trust and bring dishonor to their badge," Stanton said. "Simply stated, there is no place in law enforcement for individuals who lack integrity, lie, and violate the very laws they are sworn to uphold."
In his plea, Hall acknowledged that he conspired with someone identified in court documents as "Individual B" to pay a fellow police officer $5,000 if that officer would claim a July 29 vehicle search he conducted, which resulted in drug-trafficking charges against "Individual A," was unlawful, thereby making the criminal case against Individual A go away. The Huntsville officer who conducted the vehicle search and, subsequently, assisted in the investigation of Hall is identified only as "Cooperating Officer."
According to Hall's written plea agreement with the government, Individual A was on supervised release following a 15-year prison sentence for conspiracy to distribute a controlled substance when the Cooperating Officer pulled him over on a traffic stop July 29. The officer searched the passenger compartment of the vehicle, found about three ounces of cocaine, and took Individual A into custody on a charge of trafficking cocaine, according to the plea agreement.
Hall admits in his plea that on July 31, he and Individual B discussed offering the Cooperating Officer a bribe to tell other law enforcement officers that his search of Individual A's vehicle was unlawful. Hall offered the bribe to the Cooperating Officer on July 31, paid him $1,000 on Aug. 12, and had two follow-up conversations in November about what the officer was supposed to say when asked about the search of Individual A's vehicle, the indictment says.
The maximum penalty for the conspiracy charge is five years in prison and a $250,000 fine.The FBI investigated the case in conjunction with the Huntsville Police Department. Assistant U.S. Attorney George A. Martin Jr. is prosecuting the case.
###Heroin and Methamphetamine Traffickers Ordered to PrisonRead the Press Release
LAREDO, Texas – A total of 12 drug traffickers have been handed federal prison sentences for their convictions related to a far-reaching drug trafficking conspiracy, announced U.S. Attorney Kenneth Magidson. Edgar Loera and Miguel Angel Vives-Macias were convicted by a federal jury of multiple counts involving heroin and methamphetamine on March 3, 2014, following a five-day trial and less than four hours of deliberation. Ten others pleaded guilty in advance of that trial.
Today, U.S. District Judge Keith P. Ellison handed Loera, 31, of Mira Loma, Calif., and Vives-Macias, 35, of San Antonio, respective sentences of 225 and 188 months in federal prison. Those that had previously pleaded guilty in the case were also sentenced today. Luis Daniel Aguilar, 23, of Laredo, received 157 months, while Juan Trevino Jr., 24, Eduardo Gonzalez, 41, Clementina Aguilar-Castillo, 29, and Jose Librado Sanchez-Guerra, 30, all also of Laredo, received respective sentences of 100, 90, 81 and 75 months in federal prison. Antonio De Jesus Mejia-Contreras, 24, of Mira Loma, Calif., was sentenced to 81 months of federal imprisonment. Ericka Pina, 38, of Corpus Christi, and Leticia Corona, 38, of Dallas, received 54 and 70 months, respectively. Eduardo Segura, 23, of Tucson, Ariz., received 73 months, while Carlos Vasquez, 25, of Pomona, Calif., will serve a 30-month-term
During trial, jurors heard testimony from several co-conspirators who detailed several instances of heroin and methamphetamine trafficking from Mexico to Laredo, San Antonio, Houston and Dallas as well as distributions to California, Illinois, Oregon, Tennessee, Kansas, Washington and the Carolinas. The government also presented numerous vehicle title histories from California and Texas as well as vehicle and passenger crossing records from the ports of entry along the entire U.S.-Mexico border.
Testimony of several witnesses, including the 10 co-defendants, tied Loera and Vives-Macias to the trafficking organization between 2011 and 2012. Their testimony implicated both with recruiting drivers and couriers for the drugs in California and Texas.
The case was investigated as part of the Organized Crime Drug Enforcement Task Force by agents with Homeland Security Investigations, Drug Enforcement Administration and Texas Department of Public Safety. Assistant U.S. Attorney José Angel Moreno prosecuted the case.Glen Burnie Attorney Admits to Filing Fraudulent Tax ReturnsRead the Press Release
Baltimore, Maryland – Maryland attorney Don F. Lindner, age 61, of Severna Park, Maryland, pleaded guilty today to filing a false tax return.
The plea agreement was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.
"As tax season approaches, this case should be a reminder to everyone about the consequences of tax fraud," said U.S. Attorney Rod J. Rosenstein.
“As an attorney, Mr. Lindner is well educated regarding his federal income tax obligations, making his actions even more egregious,” said Thomas J. Kelly, Special Agent in Charge, IRS Criminal Investigation, Washington D.C. Field Office. “Today’s plea should be a warning to others that IRS Criminal Investigation is focused on those that intentionally underreport taxable income.”
According to his plea, Lindner practiced law in Glen Burnie, Maryland, and treated his law practice as a sole proprietorship. For his tax returns for 2007 and 2011, Lindner omitted $1,230,614 of gross receipts from his law practice. Lindner also maintained a rental property. Lindner falsely reported on his tax returns that he paid over $82,700 in repairs on the rental property during the same tax years, when in fact no repairs were done, thereby fraudulently decreasing his purported taxable income.
Lindner has agreed to pay restitution of $341,730 to the IRS for the tax years 2007 to 2011, which is the total amount of taxes he owed as a result of falsely reporting gross receipts and rental expenses.
Lindner faces a maximum sentence of three years in prison and a fine of $250,000. U.S. District Judge William D. Quarles Jr. scheduled sentencing for May 13, 2015, at 10:00 a.m.
United States Attorney Rod J. Rosenstein praised the IRS-Criminal Investigation for its work in the investigation and thanked Assistant United States Attorney David I. Sharfstein, who is prosecuting the case.
Four Delaware Men Plead Guilty in Wilmington Drug Conspiracy CaseRead the Press Release
WILMINGTON, Del. – Aaron Cephas, 33, of Wilmington, Del., Dashawn Broomer, 20, of Claymont, Del., and Andre Green, 20, of Claymont, Del., pled guilty yesterday to conspiring to distribute heroin in Wilmington, Del., announced Charles M. Oberly, III, United States Attorney for the District of Delaware.
This case is the result of a year-long Federal Bureau of Investigation (“FBI”) investigation into these men, who ran a heroin trafficking organization based in Wilmington. The investigation culminated in a one-and-a-half-month long wiretap investigation involving the interception of three telephones – one used by Cephas, one used by Broomer, and one used by Green.
Co-conspirator Joshua Cirwithian, 28, of Wilmington, Del., previously pled guilty to the same conspiracy charge on December 22, 2014. All defendants remain in custody pending their sentencing hearings. Cirwithian’s sentencing hearing is scheduled for April 23, 2015. Cephas’, Broomer’s, and Green’s sentencing hearings are scheduled for June 10, 2015.
According to the indictment and other court records filed in support of today’s guilty pleas, Cephas, Broomer, and Green were arrested on June 27, 2014. At that time, pursuant to a federal warrant, Broomer’s residence in Claymont, Del. was searched. Detectives found over 900 bags of heroin, a loaded handgun, and over $28,500 in cash. Cirwithian has been incarcerated since February 24, 2014, when he was arrested in a car in Virginia with a loaded handgun and approximately $65,000 in cash.
Cephas and Broomer face a maximum penalty of 40 years imprisonment (with a mandatory minimum of five years), up to a lifetime of supervised release (with a mandatory minimum of 4 years), a fine of up to $5,000,000, and a $100 special assessment. Green and Cirwithian face a maximum penalty of 20 years imprisonment, up to a lifetime of supervised release (with a mandatory minimum of 3 years), a fine of up to $1,000,000, and a $100 special assessment.
The case is the product of an investigation conducted by the Federal Bureau of Investigation (“FBI”) Violent Crime Task Force, which is part of the New Castle County HIDTA, a recently established collaborative effort among federal, state, and local law enforcement agencies. The FBI Violent Crime Task Force includes members from the following agencies: FBI, Delaware State Police, New Castle County Police Department, Delaware State Probation and Parole, and the Delaware Attorney General’s Office. In addition, the Wilmington Police Department assisted on this case. Assistant United States Attorney Shawn A. Weede and Special Assistant United States Attorney Elizabeth L. Van Pelt are prosecuting the case on behalf of the United States.Fort Lawn Man Sentenced for Social Security FraudRead the Press Release
Contact Person: Bill Day (803) 929-3000
Columbia, South Carolina---- United States Attorney Bill Nettles stated that Gerald W. Costner, age 71, of Fort Lawn, South Carolina has been sentenced in federal court in Columbia, South Carolina, for theft of government funds, a violation of 18 U.S.C. § 641. Chief United States District Judge Terry L. Wooten of Columbia sentenced Costner to five months imprisonment and ordered him to pay restitution of $92,925.00.
Evidence presented at the change of plea hearing established that Costner obtained Social Security Administration (SSA) benefits by collecting his roommate’s benefits from June 1992 until January 2014, after his roommate died. Costner failed to notify the SSA of the death and collected $92,925.00 in fraudulent Social Security Benefits.
The case was investigated by agents of the Office of Inspector General, Social Security Administration. Assistant United States Attorney William E. Day II of the Columbia office prosecuted the case.#####