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Monday 9 February 2015
Attorney Pleads Guilty to Bank Fraud ChargeRead the Press Release
PITTSBURGH – An attorney has pleaded guilty in federal court to a charge of bank fraud, United States Attorney David J. Hickton announced today.
Erik Sobkiewicz, 51, of Pittsburgh, Pa., pleaded guilty to one count before United States District Judge David Cercone.
Assistant United States Attorney Brendan T. Conway is prosecuting this case on behalf of the government. Mr. Conway provided the following information to the Court at the time of the plea:
Sobkiewicz was an attorney involved in a number of interrelated schemes. The first scheme, involved Sobkiewicz embezzling funds from the law firm that employed him. He used the resources of the law firm to advance businesses that he, unbeknownst to the law firm, controlled. He had the law firm invoice those businesses, knowing that the businesses would not pay the bills. The billings lulled the law firm into believing that what the defendant was doing was legitimate. In addition, he diverted money from a real estate closing owed to the law firm to a personal account, and he diverted client funds held in the law firm’s escrow account to his personal account.
Sobkiewicz was also involved in several loan fraud schemes. He applied for a series of loans from Indiana First Savings Bank. For the last of the loans, which was for $350,000, Sobkiewicz used the securities account of an individual as collateral for the loan without that individual’s permission, and he falsely represented that Indiana First Savings Bank would be in first lien position with regard to the property serving as collateral for the loan when, in fact, Indiana First Savings Bank was not going to be in first lien position because of a previous loan Sobkiewicz obtained collateralized by that property.
Another loan fraud scheme involved Milestone Bank and a property in Philadelphia that Sobkiewicz claimed he was developing. As with Indiana First Savings Bank, Sobkiewicz falsely represented to Milestone Bank, the lender in the Philadelphia transaction, that Milestone Bank would sit in first lien position when, in fact, Milestone Bank was going to be in second lien position because of a previous loan obtained by Sobkiewicz and collateralized by this property. Sobkiewicz forged a mortgage satisfaction of the lender in first lien position to make it appear as though Milestone Bank would be in first lien position.
In addition, Milestone Bank wanted to see that Sobkiewicz had invested his own money into the Philadelphia property and that he had equity in the property. He was able to show them a $600,000 investment of purportedly his own money. In reality, however, the $600,000 was not Sobkiewicz’s money. He obtained that money by soliciting the investment of another individual using a series of misrepresentations, including that the investor would be in second lien position behind only Milestone Bank with regard to the Philadelphia property and in first lien position with regard to other properties owned by Sobkiewicz. In reality, the investor is in third lien position with regard to the Philadelphia property in the second lien position with regard to the other properties.
Judge Cercone scheduled sentencing for May 21, 2015, at 10 am. The law provides for a total sentence of 50 years in prison, a fine of $1,250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
The Federal Bureau of Investigation and the Allegheny County District Attorney’s Office conducted the investigation that led to the prosecution of Sobkiewicz.
Ambulance Company Manager Sentenced to 78 Months in Prison for $5.5 Million Medicare Fraud SchemeRead the Press Release
The general manager of a Southern California ambulance company was sentenced today to 78 months in federal prison for his role in a $5.5 million scheme to defraud the Medicare program.
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 Agent in Charge Glenn R. Ferry of the U.S. Department of Health and Human Services, Office of Inspector General’s (HHS-OIG) Los Angeles Region and Assistant Director in Charge Bill Lewis of the FBI’s Los Angeles Field Office made the announcement.
Wesley Harlan Kingsbury, 34, of Bloomington, California, pleaded guilty on Sept. 15, 2014, to one count of conspiracy to commit health care fraud, one count of conspiracy to obstruct a Medicare audit and one count of making materially false statements to federal law enforcement officers. In addition to the prison sentence, U.S. District Judge Dale S. Fischer of the Central District of California ordered Kingsbury to pay $1,338,413 in restitution.
According to admissions made in connection with his guilty plea, Kingsbury was the general manager of Alpha Ambulance Inc. (Alpha), which specialized in the provision of non-emergency ambulance transportation services to Medicare beneficiaries, primarily to and from dialysis treatments. Kingsbury admitted that between April 2010 and July 2012, he conspired with the owners of Alpha, Alex Kapri and Aleksey Muratov, and the training supervisor, Danielle Medina, to bill Medicare for ambulance transportation services for individuals that did not need to be transported by ambulance. In addition, as general manager, Kingsbury instructed emergency medical technicians employed by Alpha to conceal the true medical condition of patients they were transporting by altering paperwork and creating false justifications for the transportation services.
In early 2012, Medicare notified Alpha that they would be subject to a Medicare audit. In response, Kingsbury admitted that he and his co-conspirators altered patient documentation to falsely justify the ambulance transportation services. Specifically, Kingsbury admitted that he and others used light tracing tables to trace over original documents and create falsified patient documentation for submission to Medicare. They then shredded the original patient documents.
Kingsbury and his co-conspirators submitted $5,522,079 in fraudulent claims to Medicare, and Medicare paid $1,338,413 on those claims.
Further, according to admissions in connection with Kingsbury’s guilty plea, in April 2012, Kingsbury was approached by law enforcement officers and asked to assist with the investigation into Alpha. Kingsbury disclosed to the owners of Alpha the names of the law enforcement officers who were conducting the investigation and the questions they had asked. On May 1, 2012, Kingsbury falsely denied to the law enforcement agents that he had disclosed that information to the owners of Alpha.
Kapri, Muratov and Medina pleaded guilty to conspiracy to commit health care fraud on Oct. 28, 2013. They were sentenced to 75 months, 108 months, and 30 months in prison, respectively.
The case was investigated by the FBI and the Los Angeles Region of HHS-OIG and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Central District of California. The case was prosecuted by Trial Attorneys Blanca Quintero and Alexander F. Porter, and Assistant Chief Ben Curtis of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 2,100 defendants who have collectively billed the Medicare program for more than $6.5 billion. In addition, HHS’s Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Accused Real Estate Fraudster Extradited from SpainRead the Press Release
HOUSTON - Robert Alan Berry, 60, is set to appear in federal court following his extradition from Spain on charges of wire fraud and money laundering in relation to an international real estate scam, announced U.S. Attorney Kenneth Magidson and Lucy Cruz, special agent in charge of Internal Revenue Service – Criminal Investigation (IRS-CI). Berry, a U.S. citizen formerly in Calistoga, Calif., is charged with two counts of wire fraud and two counts of money laundering.
The scam Berry allegedly executed affected residents of Houston as well as people in other cities in the U.S. and other countries around the world.
The four-count indictment charging Berry was returned Feb. 26, 2014. It alleges that in 1998, Berry co-founded Pelican Eyes Piedras y Olas S.A. (PEPO) as a hotel and resort in San Juan del Sur, Nicaragua. The resort grew over the next 10 years, but its financial health declined during that time, according to the allegations. Investors had provided approximately $31 million to PEPO and Berry built more than 60 units through two phases of development. However, the indictment alleges Berry ultimately sold more units to investors than he could afford to build.
In an attempt to keep the resort going, Berry allegedly turned to fraud. The charges indicate he lied to investors and lenders in order to obtain millions of dollars in investment funds and loans. Berry also would sell the same unit to more than one buyer, use already sold units as collateral for loans or sell units that he had already pledged as collateral, according to the allegations.
In October 2009, PEPO suffered a financial collapse, at which time Berry fled Nicaragua, eventually settling in Spain.
With the assistance of Interpol and Spanish authorities, Berry was arrested Oct. 24, 2014. He was eventually transported to the United States and arrived in Houston Feb. 6, 2015. He is set to make his initial appearance on the charges at 2:00 p.m. today before U.S. Magistrate Judge Stephen Smith.
If convicted, he faces up to 20 years on each count of wire fraud as well as a maximum of 10 years for each of the money laundering charges. Both convictions also carry a possible $250,000 fine.
The charges are the result of an investigation by IRS-CI. 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.Adams County Correctional Facility Inmate Pleads Guilty to Second Degree MurderRead the Press Release
Jackson, Miss - Jesus Beltran Rodriguez, 36, a federal inmate from Mexico, pled guilty today, before U.S. Senior District Judge David C. Bramlette III, to second degree murder, U.S. Attorney Gregory K. Davis announced.
The offense occurred on May 20, 2012 during a riot at the Adams County Correctional Center. Several correctional officers were assaulted and one Correctional Officer (CO) died as a result of injuries he received during the assaults. Other COs were taken captive and held hostage for several hours by participants in the riot. Total damage to ACCC was estimated to be $1,305,142.00.
Senior U.S. District Judge David C. Bramlette III will sentence Rodriguez on May 19, 2015. He faces a maximum sentence of life in prison and $250,000 fine.
This case was investigated by the Federal Bureau of Investigation, with assistance from the Adams County Sheriff’s Office. Assistant U.S. Attorneys Pat Lemon and Jerry Rushing are prosecuting the case.
Friday 6 February 2015
Zachary Man Indicted for Conspiracy to Commit Health Care Fraud and Wire FraudRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today that a federal grand jury has returned a twenty-five count indictment against SEDRIC C. BLAKES, age 42, of Zachary, Louisiana. The Grand Jury charged BLAKES with conspiring with others to commit healthcare fraud and wire fraud, in violation of Title 18, United States Code, Section 1349, as well as with committing multiple counts of healthcare fraud and wire fraud, in violation of Title 18, United States Code, Sections 1347 and 1343. The Indictment also includes a forfeiture allegation which requires BLAKES to forfeit the proceeds of his fraud if convicted.
The Indictment alleges that, from approximately January 2008 and continuing through March 2013, BLAKES engaged in a scheme to defraud Medicaid while employed as the Chief Operating Officer of Extraordinary Care Network, Inc. (“Extraordinary Care”). The Indictment continues that Extraordinary Care was a Baton Rouge-area Medicaid attendant care service provider, which purportedly provided direct support and assistance, including feeding, bathing, and grooming, to the mentally impaired and financially needy, thereby allowing recipients to achieve or maintain increased independence, inclusion in the community, or simply to relieve recipients’ primary caregivers.
As alleged in the Indictment, BLAKES and his co-conspirators submitted fraudulent claims to Medicaid in which they claimed to have provided attendant care services, when BLAKES and his co-conspirators provided no such services. To support the fraudulent claims submitted to Medicaid, BLAKES falsified and/or direct a co-conspirator to falsify recipients’ records to make it appear as though BLAKES, his co-conspirators, or other unwitting Extraordinary Care employees had provided care to particular recipients. Among other instances, BLAKES fabricated and signed fictitious records indicating he had provided attendant care services to recipients in their homes, while the investigation revealed that BLAKES was out of town, gambling at a casino, or elsewhere, at the time of the purported service.
The Indictment alleges BLAKES executed this scheme from approximately January 2008 until March 2013, during which time Extraordinary Care submitted approximately $16,428,814 in claims to Medicaid and was paid approximately $14,796,631.
This ongoing matter is being investigated by the Federal Bureau of Investigation (FBI) and the Medicaid Fraud Control Unit of the Louisiana State Attorney General’s Office (MFCU), and is being brought as part of the Medicare Fraud Strike Force, under the supervision of the United States Attorney’s Office and the Fraud Section of the Criminal Division of the U.S. Department of Justice. This case is being prosecuted by Assistant U.S. Attorney Shubhra Shivpuri and DOJ Trial Attorney Dustin M. Davis.
NOTE: An indictment is an accusation by the Grand Jury. The defendant is presumed innocent until and unless adjudicated guilty at trial or through a guilty plea.
Week in Review – South BendRead the Press Release
South Bend, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS
- Brandon Wright, 27, of Mishawaka, Indiana pled guilty to the felony offense of being a felon in possession of a firearm. The magistrate judge is recommending that the district court accept the tendered guilty plea. Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by Bureau of Alcohol, Tobacco, Firearms and Explosives. Sentencing has been set for May 11, 2015. This case is being prosecuted by Assistant United States Attorney Donald Schmid.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
Week in Review – HammondRead the Press Release
Hammond, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS
- Reggie Spencer, 27, of Dolton, Illinois pled guilty to the felony offense of distribution of cocaine base. The magistrate judge is recommending that the district court accept the tendered guilty plea. Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Drug Enforcement Administration. This case is being prosecuted by Assistant United States Attorney Thomas McGrath.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
Unlicensed Detroit Doctor Convicted in $4.69 Million Medicare Fraud SchemeRead the Press Release
A federal jury in Detroit today convicted an unlicensed physician for his participation in a nearly $4.7 million Medicare fraud scheme, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan, Special Agent in Charge Paul M. Abbate of the FBI’s Detroit Field Office and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) Chicago Regional Office.
Wilfred Griffith, 64, of Detroit, a graduate of a foreign medical school with no medical license, was found guilty of one count of conspiracy to commit health care fraud and one count of conspiracy to solicit and receive health care kickbacks. A sentencing hearing is scheduled for July 8, 2015, before U.S. District Judge Sean F. Cox of the Eastern District of Michigan.
According to evidence presented at trial, Griffith worked as an unlicensed physician at Phoenix Visiting Physicians in 2010 and 2011. At that clinic, Griffith treated Medicare beneficiaries and used prescription pads pre-signed by Dr. Dwight Smith to prescribe medicine.
The evidence demonstrated that Griffith also referred Medicare beneficiaries to a Detroit-area home health company called Cherish Home Health Services Inc. (Cherish) in exchange for kickbacks. In ordering the home health services, Griffith used the names and signatures of Dr. Smith and two other Detroit-area physicians to certify that the beneficiaries were homebound and needed home health services, when they did not.
Evidence showed that based on the fraudulent referrals from Griffith and others, Cherish submitted false claims to Medicare for home health services that were never provided and were not medically necessary. Medicare beneficiaries pre-signed supporting medical paperwork that was then completed and signed by others at Cherish to falsely show that care was provided.
Between November 2009 and December 2013, Medicare paid Cherish nearly $4.7 million, which included more than $680,000 for home health services purportedly rendered to beneficiaries referred by Griffith using the names of Dr. Smith and the two other physicians.
Two other individuals have pleaded guilty for their roles in this scheme. Zia Hassan, 48, the owner of Cherish, pleaded guilty on Jan. 16, 2015, and Nathan Miller, 53, a patient recruiter who referred beneficiaries to Hassan in exchange for cash kickbacks, pleaded guilty on Aug. 4, 2014. On May 7, 2012, Dr. Smith also pleaded guilty to one count of conspiracy to commit health care fraud, and on June 12, 2014, U.S. District Judge Gerald E. Rosen of the Eastern District of Michigan sentenced Dr. Smith to three years in prison.
The case was investigated by HHS-OIG and the FBI and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Michigan. The case is being prosecuted by Trial Attorney Katharine A. Wagner and Special Trial Attorney Katie R. Fink of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Patrick J. Hurford of the Eastern District of Michigan.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,100 defendants who have collectively billed the Medicare program for more than $6.5 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
United States Settles False Claims Act Suit Against Good Shepherd Hospice Inc. and Related EntitiesRead the Press Release
Midwest Hospice Chain Allegedly Billed Medicare for Ineligible Patients
Today, Good Shepherd Hospice Inc., Good Shepherd Hospice of Mid America Inc., Good Shepherd Hospice, Wichita, L.L.C., Good Shepherd Hospice, Springfield, L.L.C., and Good Shepherd Hospice – Dallas L.L.C. (collectively Good Shepherd) agreed to pay $4 million to resolve allegations that Good Shepherd submitted false claims for hospice patients who were not terminally ill. Good Shepherd is a for-profit hospice headquartered in Oklahoma City which provides hospice services in Oklahoma, Missouri, Kansas and Texas.
“The Medicare hospice benefit is intended to provide comfort and care to patients nearing the end of life,” said Acting Assistant Attorney General Joyce R. Branda of the Justice Department’s Civil Division. “We will continue to aggressively pursue companies that abuse the hospice benefit to improperly inflate their profits.”
The Medicare hospice benefit is available for patients who elect palliative treatment (medical care focused on providing patients with relief from pain, symptoms or stress) for a terminal illness and have a life expectancy of six months or less if their illness runs its normal course. When a Medicare patient receives hospice services, that individual is no longer entitled to Medicare coverage for care designed to cure his or her illness.
The government alleged that Good Shepherd knowingly submitted or caused the submission of false claims for hospice care for patients who were not terminally ill. Specifically, the United States contended that Good Shepherd engaged in certain business practices that contributed to claims being submitted for patients who did not have a terminal prognosis of six months or less, by pressuring staff to meet admissions and census targets and paying bonuses to staff, including hospice marketers, admissions nurses and executive directors, based on the number of patients enrolled. The United States further alleged that Good Shepherd hired medical directors based on their ability to refer patients, focusing particularly on medical directors with ties to nursing homes, which were seen as an easy source of patient referrals. The United States also alleged that Good Shepherd failed to properly train staff on the hospice eligibility criteria.
“Health care fraud puts profits above patients, and steals from taxpayers,” said U.S. Attorney Tammy Dickinson of the Western District of Missouri. “In this case, company whistleblowers alleged that patients received unnecessary hospice care while Good Shepherd engaged in illicit business practices to enrich itself at the public’s expense. Today’s settlement fairly resolves those issues and puts measures in place to prevent similar conduct in the future.”
In addition, as part of the settlement, each Good Shepherd entity agreed to enter into a corporate integrity agreement with the U.S. Department of Health and Human Services-Office of the Inspector General (HHS-OIG), which will provide for procedures and reviews to be put into place to avoid and promptly detect conduct similar to that which gave rise to the settlement.
“Being a hospice provider in the Medicare program is a privilege, not a right,” said Special Agent in Charge Mike Fields of the HHS-OIG Dallas Region. “Hospice providers that seek to boost profits by providing hospice services to Medicare beneficiaries who are not terminally ill compromise both the health of its patients as well as the integrity of Medicare. Our agency will continue to hold such hospice providers accountable for their actions.”
The settlement resolves allegations filed by relators Kathi Cordingley and Tracy Jones, former employees of Good Shepherd, under the qui tam or whistleblower provisions of the False Claims Act, which authorize private parties to sue for fraud on behalf of the United States and share in the recovery. The relators will receive approximately $680,000.
This suit is part of the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $23.5 billion through False Claims Act cases, with more than $15 billion of that amount recovered in cases involving fraud against federal health care programs.
This matter was investigated by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the Western District of Missouri and HHS-OIG. The claims asserted against defendants are allegations only and there has been no determination of liability.
The lawsuit is captioned United States ex rel. Cordingley and Jones v. Good Shepherd Hospice, Mid America, Inc., No. 4:11-cv-1087 (W.D. Mo.).
U.S. Attorney Finley Keynote Speaker at Grambling State University's Annual Luncheon Recognizing Louisiana's LeadersRead the Press Release
GRAMBLING, La. – United States Attorney Stephanie A. Finley was the keynote speaker at Grambling State University’s Fourth Annual Martin Luther King Jr. Distinguished Leadership Awards Luncheon held Thursday.
“I am honored that Dr. Warrick asked me to address this group of outstanding citizens,” Finley said. “Their stories are incredible, and their commitment to our state is unwavering. These award recipients are an inspiration to me and everyone who hears their stories encouraging us to work harder to make our communities better. That’s what leadership is all about. It is not always glamorous and often the work is not easy, but it is rewarding when you make a difference.”
“United States Attorney Stephanie Finley’s motivating speech challenged the audience to lead and serve,” stated Grambling State University Interim President Dr. Cynthia Warrick. “She reminded us that it was just 50 years ago when justice advocates led and served through resistance; if they had not protested, we would not have the civil rights we experience today. It was an important message that inspired all in attendance and validated our honorees’ recognition.”
Grambling State University honored 10 recipients at the annual Martin Luther King Jr. Distinguished Leadership Awards Luncheon. Winners of the Fannie Lou Hamer Community Service and Leadership Award included: Mr. David Aubrey, the North Louisiana regional director of external affairs for AT&T Inc.; Ms. Janet Durden, president of United Way of Northeast Louisiana; Mr. Clarence W. Hawkins, Louisiana state director for U.S. Department of Agriculture Rural Development, Mrs. Hazel Hunter, a former manager with Louisiana Department of Social Services; Mr. Quentin Messer, assistant secretary for Louisiana Economic Development; Mr. Eldonta Osborne, chief professional officer of the Boys & Girls Club of North Louisiana; and Mr. Willie Washington, federal programs director (No Child Left Behind) at the Lincoln Parish School Board in Ruston, La.
Artist Frank Kelly Jr. was the recipient of the Alvin Ailey Arts and Letters Award, and John Belton, newly elected district attorney for the 3rd Judicial District Court for Lincoln and Union parishes, and his wife, Alana Belton, a former prosecutor, received the Thurgood Marshall Justice Award.
The Martin Luther King Jr. Distinguished Leadership Awards recognizes persons who, through their service to Grambling State University, the state, region and country, exemplify King’s character, leadership and selflessness. Each honoree must have been personally or corporately involved in making tangible, visible and meaningful contributions to the advancement of race relations and/or human rights causes in one or more of the following areas, including but not limited to, the arts, business, education, justice, politics, science and technology, religion and athletics. The awards are presented annually in February.
Grambling State University combines the academic strengths of a major university with the benefits of a small college, a combination that enables students to grow and learn in a serene and positive environment. It offers more than 800 courses and 68 degree programs in five colleges, including an honors college, two professional schools, a graduate school, and a Division of Continuing Education. To find out more about Grambling State University visit www.gram.edu.
Finley is the first female U.S. Attorney to serve in Louisiana. She was selected by President Barack Obama in January of 2010, after being recommended by U.S. Senator Mary Landrieu, and confirmed by the U.S. Senate in June of 2010. United States Attorney Finley was sworn into office on June 2, 2010 to serve the Western District of Louisiana as the chief law enforcement officer for 42 of the state’s 64 parishes. In addition to her duties as the U.S. Attorney, Finley is a Lieutenant Colonel in the U.S. Air Force, and currently serves as Chair of Attorney General Eric Holder’s Advisory Committee’s Office of Management and Budget Committee.
From left to right are: Frank Kelley Jr., Hazel Hunter, Quentin Messer Jr., Janet Durden, Eldonta’ Osborne, U. S. Attorney Finley, Dr. Cynthia Warrick, Clarence Hawkins, David Aubrey, Alana Belton, Honorable John Belton, and Freddie Washington (representing her husband, Willie Washington).
Tax Preparer Indicted for Tax Fraud and Identity Theft Scheme Involving over 200 Fraudulent Returns Seeking over $500,000Read the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today that a federal grand jury has returned an indictment against TAMEKIA CECILIA HARTON, age 34, of Baton Rouge, Louisiana. The indictment charges the defendant with false claims against the government, in violation of Title 18, United States Code, Section 287, theft of government funds, Title 18, United States Code, Section 641, misuse of a social security number, in violation of Title 42, United States Code, Section 408(a)(8), forged endorsement on Treasury checks, Title 18, United States Code, Section 510(a)(1), and aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1). The indictment also includes a forfeiture allegation which requires the defendant to forfeit the proceeds of his fraud if convicted. If convicted, the defendant faces a significant prison sentence, fine, and restitution order, as well as forfeiture.
The indictment alleges that the defendant filed 214 false and fraudulent tax returns between January 2011 and August 2012. The bogus tax returns falsely represented that individual taxpayers had worked for various companies, earned income, had income taxes withheld from their earnings, and were entitled to income tax refunds. The defendant allegedly misused the names and social security numbers of hundreds of taxpayers in order to carry out her scheme. The 214 tax returns requested refunds of approximately $505,709, of which about $346,321 was actually refunded and released. The proceeds of the fraud were allegedly used for the defendant’s personal enrichment.
U.S. Attorney Green stated: “My office will continue to devote the resources necessary to pursue fraudsters engaged in tax fraud and identity theft, and we look forward to continuing to work with our partners at IRS-CI and other agencies in the fight against such conduct.”
“We are pleased with the indictment returned today against Ms. Harton. The IRS will aggressively pursue individuals who use stolen Social Security numbers to file false tax returns,” said Jerome R. McDuffie, Acting Special Agent in Charge, IRS Criminal Investigation. “This case should serve as a strong warning to those who are considering similar conduct. Law enforcement will relentlessly pursue those who steal the identities of unsuspecting individuals; particularly those who are unable to protect themselves.”
This matter is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana and was investigated by the Internal Revenue Service-Criminal Investigations. It is being prosecuted by Assistant United States Attorney Rene I. Salomon.
NOTE: An indictment is an accusation by the Grand Jury. The defendant is presumed innocent until and unless adjudicated guilty at trial or through a guilty plea.
Six Defendants Charged with Conspiracy and Providing Material Support to TerroristsRead the Press Release
Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Richard Callahan of the Eastern District of Missouri and Special Agent in Charge William P. Woods of the FBI’s St. Louis Division announced that a federal indictment was unsealed earlier today charging six individuals with terrorist related crimes. Charged in the indictment are: Ramiz Zijad Hodzic, 40, his wife Sedina Unkic Hodzic, 35, and Armin Harcevic, 37, all of St. Louis County, Missouri; Nihad Rosic, 26, of Utica, New York; Mediha Medy Salkicevic, 34 of Schiller Park, Illinois; and Jasminka Ramic, 42, of Rockford, Illinois. All defendants are charged with conspiring to provide material support and resources to terrorists, and with providing material support to terrorists. Ramiz Zijad Hodzic and Nihad Rosic are also charged with conspiring to kill and maim persons in a foreign country.
All six individuals are natives of Bosnia who immigrated to the United States. Three have become naturalized citizens of the United States and the remaining three have either refugee or legal resident status. Five of the defendants are in the United States and have been arrested. A sixth defendant is overseas.
If convicted, the crimes of conspiring to provide material support and providing material support carry penalties ranging up to 15 years imprisonment for each count and/or fines up to $250,000. The crime of conspiring to kill and maim persons in a foreign country carries a penalty of up to life in prison. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
“Today’s charges and arrests underscore our resolve to identify, thwart, and hold accountable individuals within the United States who seek to provide material support to terrorists and terrorist organizations operating in Syria and Iraq,” said Assistant Attorney General Carlin. “Preventing the provision of supplies, money, and personnel to foreign terrorist organizations like ISIL remains a top priority of the National Security Division and our partners in the law enforcement and intelligence communities. I want to thank the many agents, analysts and prosecutors responsible for this case.”
“The indictment unsealed today epitomizes the FBI's commitment to disrupting and holding accountable those who seek to provide material support to terrorists and terrorist organizations,” said Special Agent in Charge Woods. “This case underscores the clear need for continued vigilance in rooting out those who seek to join or aid terrorist groups that threaten our national security.”
This case was investigated by the St. Louis FBI’s Joint Terrorism Task Force, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), U.S. Postal Inspection Service, St. Louis Metropolitan and St. Louis County Police Departments, with assistance from multiple law enforcement agencies. The case is being prosecuted by Assistant U.S. Attorneys Matthew Drake, Howard Marcus and Kenneth Tihen of the Eastern District of Missouri and Mara Kohn, a Trial Attorney in the Counterterrorism Section of the Department of Justice.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Indictment
Six Bosnian Natives Charged with Providing Material Support to TerroristsRead the Press Release
St. Louis, MO – The United States Attorney’s Office for the Eastern District of Missouri announced that a federal indictment was unsealed earlier today charging six individuals with terrorist related crimes. Charged in the indictment are: RAMIZ ZIJAD HODZIC, his wife SEDINA UNKIC HODZI and ARMIN HARCEVIC, all of St. Louis County, Missouri; NIHAD ROSIC of Utica, New York; MEDIHA MEDY SALKICEVIC of Schiller Park, Illinois; and JASMINKA RAMIC of Rockford, Illinois. All defendants are charged with conspiring to provide material support and resources to terrorists, and with providing material support to terrorists. Ramiz Zijad Hodzic and Nihad Rosic are also charged with conspiring to kill and maim persons in a foreign country.
All six individuals are natives of Bosnia who immigrated to the United States. Three had become naturalized citizens of the United States and the remaining three have either refugee or legal resident status. Five of the defendants are in the United States and have been arrested. A sixth defendant is overseas. Defendants Ramiz Hodzic and Sedina Hodzic made their initial appearance before a federal magistrate in St. Louis early this evening.
If convicted, the crimes of conspiring to provide material support carry penalties ranging up to 15 years imprisonment for each count and/or fines up to $250,000. The crime of conspiring to kill and maim persons in a foreign country carries a penalty of up to life in prison. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
"The indictment unsealed today epitomizes the FBI's commitment to disrupting and holding accountable those who seek to provide material support to terrorists and terrorist organizations," said Special Agent in Charge Woods. "This case underscores the clear need for continued vigilance in rooting out those who seek to join or aid terrorist groups that threaten our national security."
This case was investigated by the St. Louis FBI’s Joint Terrorism Task Force, U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI), U. S. Postal Inspection Service, St. Louis Metropolitan and St. Louis County Police Departments, with assistance from multiple law enforcement agencies. The case is being prosecuted by Assistant U.S. Attorneys Matthew Drake, Howard Marcus and Kenneth Tihen of the Eastern District of Missouri and Mara Kohn, a Trial Attorney in the Counterterrorism Section of the Department of Justice.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
INDICTMENT
Second Ocean Shipping Executive Pleads Guilty to Price Fixing on Ocean Shipping Services for Cars and TrucksRead the Press Release
A former executive of Japan-based Kawasaki Kisen Kaisha Ltd. (K-Line) pleaded guilty today and was sentenced to 14 months in a U.S. prison for his involvement in a conspiracy to fix prices, allocate customers and rig bids of international ocean shipping services for roll-on, roll-off cargo, such as cars and trucks, to and from the United States and elsewhere, the Department of Justice announced today.
According to the one-count felony charge filed in U.S. District Court for the District of Maryland in Baltimore on Dec. 29, 2014, Takashi Yamaguchi, who was a general manager and executive officer in K-Line’s car carrier division, conspired to allocate customers and routes, rig bids and fix prices for the sale of international ocean shipments of roll-on, roll-off cargo to and from the United States and elsewhere, including the Port of Baltimore. Yamaguchi participated in the conspiracy from at least as early as July 2006 until at least April 2010.
Roll-on, roll-off cargo is non-containerized cargo that can be both rolled onto and off of an ocean-going vessel. Examples of this cargo include new and used cars and trucks and construction and agricultural equipment.
“Today’s sentencing is another step in our efforts to hold executives accountable for raising the cost of shipping cars, trucks and other equipment to and from the United States,” said Bill Baer, Assistant Attorney General for the Antitrust Division. “We will continue to pursue the corporations and executives whose illegal agreements have harmed American consumers.”
Pursuant to the plea agreement, which was accepted by the court today, Yamaguchi was sentenced to serve a 14-month prison term and pay a $20,000 criminal fine for his participation in the conspiracy. In addition, Yamaguchi has agreed to assist the department in its ongoing investigation into the ocean shipping industry.
Yamaguchi was charged with a violation of the Sherman Act, which carries a maximum sentence of 10 years in prison and a $1 million criminal fine for an individual. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.
Today’s sentence is the second imposed against an individual in the division’s ocean shipping investigation. Previously, three corporations have agreed to plead guilty and to pay criminal fines totaling more than $136 million, including Yamaguchi’s employer K-Line, which was sentenced to pay a criminal fine of $67.7 million in November 2014. Another K-Line executive was sentenced one week ago by the court in Baltimore.
Today’s plea agreement is the result of an ongoing federal antitrust investigation into price fixing, bid rigging and other anticompetitive conduct in the international roll-on, roll-off ocean shipping industry, which is being conducted by the Antitrust Division’s Washington Criminal I Section and the FBI’s Baltimore Field Office, along with assistance from the U.S. Customs and Border Protection Office of Internal Affairs, Washington Field Office/Special Investigations Unit. Anyone with information in connection with this investigation is urged to call the Antitrust Division’s Washington Criminal I Section at 202-307-6694, visit www.justice.gov/atr/contact/newcase.html or call the FBI’s Baltimore Field Office at 410-265-8080.
Renewal Escapee Sentenced to 18 More Months in PrisonRead the Press Release
PITTSBURGH - A local man has been sentenced in federal court to 18 months imprisonment to be served consecutive to the defendant’s other federal sentence, and followed by three years supervised release, on his conviction of escape, United States Attorney David J. Hickton announced today.
United States District Judge Terrence F. McVerry imposed the sentence on Termaine R. Washington, 25, of Pittsburgh, Pa.
According to information presented to the court, Washington was charged with escape on April 8, 2014. Washington had been transferred to the Renewal, Inc. Residential Re-entry Center located in Pittsburgh, PA. On April 8, 2014, Washington left Renewal, Inc. and did not return.
Assistant United States Attorney Shardul S. Desai prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the United States Marshals Service for the investigation leading to the successful prosecution of Washington.
Randallstown Man Sentenced to 11 Years in Prison in Baltimore Heroin Distribution ConspiracyRead the Press Release
Baltimore, Maryland – Chief U.S. District Judge Catherine C. Blake sentenced Sean Wilson, age 46, of Randallstown, Maryland today to 11 years in prison followed by five years of supervised release for conspiracy to distribute and possess with the intent to distribute heroin.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; Commissioner Anthony W. Batts of the Baltimore Police Department; Chief James W. Johnson of the Baltimore County Police Department; and Baltimore City State’s Attorney Marilyn J. Mosby.
“The sentence today of Sean Wilson emphasizes the proactive work that the Drug Enforcement Administration and our law enforcement partners undertake every day to stop the flow of drugs from entering the Baltimore metropolitan area,” stated Gary Tuggle, Assistant Special Agent in Charge of the Drug Enforcement Administration, Baltimore District Office. “This case was a multi-jurisdictional operation which targeted a large scale Drug Trafficking Organization (DTO) with direct ties from Mexico to Baltimore. The tentacles of this DTO spread near and far. DEA’s investigation of this DTO was a long-term, highly complex effort that could not have been accomplished without the assistance of our local partners.”
According to his plea agreement, from at least September 2013 to June 30, 2014, Wilson conspired with Fred Brooks and others to distribute heroin in Baltimore. DEA investigators in New Orleans, Louisiana and Baltimore identified Wilson as a heroin distributor in Baltimore supplied by Brooks.
Wilson coordinated with Brooks to obtain heroin from a Mexican source of supply. Wislon distributed the heroin to co-conspirators in Maryland by way of Chicago, Illinois. The heroin arrived in the Chicago area in car batteries containing approximately four to five kilograms of heroin. Maryland-based members of the conspiracy traveled to the Chicago area to retrieve the heroin. Chicago-based members of the conspiracy traveled to Maryland to deliver the heroin and retrieve money for prior heroin deals. Some of these transactions were coordinated by Brooks and Wilson.
Law enforcement intercepted phone calls and text messages in which Wilson discussed payment for drugs and arranged drug transactions with co-conspirators. After learning that a money transaction would be occurring on June 30, 2014, law enforcement located a stash location in Pikesville, Maryland that was used by the conspirators. Investigators saw Wilson enter the stash location and leave a short time later. Later that day, law enforcement executed search warrants and seized 10 kilograms of heroin, a money counter, and $464,283 from the stash location; and $74,980 and a hydraulic press used to package heroin from Wilson’s residence
During the course of the conspiracy, Wilson was responsible for the distribution of at least 30 kilograms of heroin.
Fred Douglas Brooks, age 47, of Houston, Texas, is facing federal drug charges in New Orleans.
United States Attorney Rod J. Rosenstein praised the DEA, Baltimore Police Department; Baltimore County Police Department and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Special Assistant U.S. Attorney Christopher Flagg, a cross-designated Baltimore City Assistant State’s Attorney assigned as part of the Baltimore initiative to combat violent crime, and Assistant U.S. Attorney A. David Copperthite, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Pike County Man Pleads Guilty to Receiving and Distributing Child PornographyRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Dingman’s Ferry man pleaded guilty today before U.S. District Court Judge Malachy E. Mannion in Scranton, to receiving and distributing child pornography.
According to United States Attorney Peter Smith, the defendant, Daniel Decker, age 29, admitted that he used a computer between January 2, 2015 and January 20, 2015, to obtain and distribute images of young children engaged in sexually explicit conduct.
Decker was charged in an Information filed by the United States Attorney on February 2, 2015. The charge resulted from an investigation by the Federal Bureau of Investigation and the Lackawanna County District Attorney’s Office.
Decker faces a mandatory minimum sentence of five years in prison and a potential maximum sentence of 20 years in prison. A sentencing date will be scheduled after the completion of a pre-sentence investigation report.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Assistant U.S. Attorney Francis P. Sempa is prosecuting the case.
Owners of Tax Preparation Business Convicted on All CountsRead the Press Release
The owners of a tax preparation business that filed fraudulent tax returns on behalf of inmates at various New Jersey prisons were convicted at trial today of conspiracy, mail fraud and making false claims to the United States for payment of fraudulent tax refunds, U.S. Attorney Paul J. Fishman of the District of New Jersey and Principal Deputy Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division announced.
Kamal J. James, aka Bro Messiah Aziz El, of Seaford, Delaware, and Crystal G. Hawkins, aka Sis. Crystal Gabri El, of Laurel, Delaware, had each been charged in a superseding indictment with one count of conspiracy, 16 counts of making false claims for income tax refunds and three counts of mail fraud. They were convicted on all counts following a one-week trial before U.S. District Judge Peter G. Sheridan in federal court in Trenton, New Jersey. The jury deliberated one hour before returning the guilty verdicts.
According to the superseding indictment and the evidence at trial:
Between October 2011 and October 2013, defendants James and Hawkins operated Release Refunds, a purported tax preparation business – previously based in Brick, New Jersey, and in Seaford, Delaware – through which they solicited current and former New Jersey prison inmates as clients and then filed fraudulent tax returns on their behalf.
James and Hawkins sent Release Refunds “promotional” flyers to inmates at various New Jersey prisons and halfway houses offering tax return preparation services. The pair asked inmates interested in Release Refunds’ services to provide basic identification information and to sign income tax returns and other Internal Revenue Service (IRS) documents, but not to include any information about their income or withholdings. James and Hawkins then filled in the missing income information on the return forms, fabricating the inmates’ earnings to trigger fraudulent and inflated refunds.
During the course of the investigation, an undercover IRS-Criminal Investigation agent posing as an inmate in a New Jersey prison submitted a completed Release Refunds form and sent it to James and Hawkins. They then sent the “inmate” blank income tax forms and other IRS documents and instructions to sign the documents. James and Hawkins did not request any financial information from the undercover agent before preparing three fraudulent tax returns – including false income information that James and Hawkins provided – to be filed on behalf of the agent for tax years 2010 through 2012. The fraudulent returns resulted in several thousand dollars in refunds and a $1,485 fee claimed by the defendants.
The conspiracy count carries a statutory maximum sentence of 10 years in prison. The fraudulent claims counts each carry a statutory maximum sentence of five years in prison and the mail fraud counts each carry a statutory maximum sentence of 20 years in prison. The defendants also face a fine of $250,000, or twice the amount of the gain or loss from the offense, for each count of conviction. Sentencing is scheduled for May 11.
U.S. Attorney Fishman and Principal Deputy Assistant Attorney General Ciraolo credited special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen, with the investigation leading to today’s charges. They also thanked the U.S. Postal Inspection Service, under the direction of Postal Inspector in Charge Maria L. Kelokates, and the New Jersey Department of Corrections, under the direction of Commissioner Gary M. Lanigan, for their roles in the case.
The government is represented by Assistant U.S. Attorney Nicholas P. Grippo of the U.S. Attorney’s Office Criminal Division in Trenton and Trial Attorney Thomas Jaworski of the Tax Division.
Owners of Tax Preparation Business Convicted on All CountsRead the Press Release
TRENTON, N.J. – The owners of a tax preparation business that filed fraudulent tax returns on behalf of inmates at various New Jersey prisons were convicted at trial today of conspiracy, mail fraud and making false claims to the United States for payment of fraudulent tax refunds, U.S. Attorney Paul J. Fishman and Principal Deputy Assistant Attorney General Caroline D. Ciraolo announced.
Kamal J. James, aka “Bro Messiah Aziz El,” of Seaford, Delaware, and Crystal G. Hawkins, aka “Sis. Crystal Gabri El,” of Laurel, Delaware, had each been charged in a superseding indictment with one count of conspiracy, 16 counts of false claims and three counts of mail fraud. They were convicted on all counts following a one-week trial before U.S. District Judge Peter G. Sheridan in Trenton federal court. The jury deliberated one hour before returning the guilty verdicts.
According to the superseding indictment and the evidence at trial:
Between October 2011 and October 2013, defendants James and Hawkins operated Release Refunds, a purported tax preparation business – previously based in Brick, New Jersey, and in Seaford, Delaware – through which they solicited current and former New Jersey prison inmates as clients and then filed fraudulent tax returns on their behalf. The company is no longer in business.
James and Hawkins sent Release Refunds “promotional” flyers to inmates at various New Jersey prisons and halfway houses offering tax return preparation services. The pair asked inmates interested in Release Refunds’ services to provide basic identification information and to sign income tax returns and other IRS documents, but not to include any information about their income or withholdings. James and Hawkins then filled in the missing income information on the return forms, fabricating the inmates’ earnings to trigger fraudulent and inflated refunds.
During the course of the investigation, an undercover IRS-Criminal Investigation agent posing as an inmate in a New Jersey prison submitted a completed Release Refunds form and sent it to James and Hawkins. They then sent the “inmate” blank income tax forms and other IRS documents and instructions to sign the documents. James and Hawkins did not request any financial information from the undercover agent before preparing three fraudulent tax returns – including false income information that James and Hawkins provided – to be filed on behalf of the agent for tax years 2010 through 2012. The fraudulent returns resulted in several thousand dollars in refunds and a $1,485 fee for the defendants.
The conspiracy count carries a maximum potential penalty of 10 years in prison. The fraudulent claims counts each carry a maximum potential penalty of five years in prison and the mail fraud counts each carry a maximum potential penalty of 20 years in prison. The defendants also face a fine of $250,000 or twice the amount of the gain or loss from the offense for each count of conviction. Sentencing is scheduled for May 11, 2015.
U.S. Attorney Fishman and Principal Deputy Assistant Attorney General Ciraolo credited special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen, with the investigation leading to today’s charges. They also thanked the U.S. Postal Inspection Service, under the direction of Postal Inspector in Charge Maria L. Kelokates; and the N.J. Department of Corrections, under the direction of Commissioner Gary M. Lanigan, for their roles in the case.
The government is represented by Assistant U.S. Attorney Nicholas P. Grippo of the U.S. Attorney’s Office Criminal Division in Trenton and Trial Attorney Thomas Jaworski of the Justice Department’s Tax Division.
15-050Defense counsel:
James: Pro se; (Bruce Throckmorton Esq., Trenton, standby counsel)Hawkins: Pro se; (Andrea Bergman Esq. Assistant Federal Public Defender, Trenton, standby counsel)
Owner of Food Product and Supply Business Sentenced for Failing to Pay More Than $200,000 in Employment TaxesRead the Press Release
United States Attorney Andrew M. Luger today announced the sentencing of PEGGY EISCHENS, 45, to one year and one day in federal prison for failing to pay more than $200,000 in employment taxes. EISCHENS pleaded guilty on October 14, 2014, to one count of Willful Failure to Pay Over Taxes. She was sentenced on February 4, 2015, before Judge Michael J. Davis in U.S. District Court in Minneapolis, Minn.
According to the defendant’s guilty plea and documents filed in court, from 2002 through 2011, EISCHENS was a co-owner and employee of R.D. Hanson Associates, Inc. (“RDHA”), which conducted business under the names Kernel Pops of Minnesota and Kernel Concession Supply. During her employment, EISCHENS was responsible for handling payroll and accounting for RDHA, which included the preparation of employee paychecks and the preparation and filing of Form 941 quarterly tax returns with the IRS.
According to her guilty plea and documents filed in court, from 2003 through December 2011, EISCHENS willfully failed to pay over to the IRS federal income taxes and Federal Insurance Contribution Act (“FICA”) taxes, meaning Social Security and Medicare taxes, deducted and collected from the wages of RDHA employees. In total, EISCHENS failed to pay over approximately $201,285 of withheld federal income taxes, withheld FICA taxes, and the employer’s share of FICA taxes.
This case is the result of an investigation conducted by the Internal Revenue Service-Criminal Investigations.
Assistant U.S. Attorney Joseph H. Thompson prosecuted the case.
Defendant Information:
PEGGY EISCHENS, 45
LeSueur, Minn.
Convicted:
• Willful Failure to Pay Over Taxes, 1 count
Sentenced:
• 1 year and 1 day in prison
• 3 years supervised releaseOwner and Director of Eden Prairie Daycare Center Pleads Guilty to Theft of Public MoneyRead the Press Release
United States Attorney Andrew M. Luger today announced the guilty plea of KHADRA ABDISAFAD HIRSI, 47, for stealing money in the form of child care subsidies from the U.S. Department of Health and Human Services and the State of Minnesota. The defendant pleaded guilty on February 4, 2015, before Judge Donovan W. Frank in U.S. District Court in St. Paul, Minn., to one count of Theft of Public Money.
According to her guilty plea and documents filed in court, HIRSI was the director and co-owner of Ace DayCare Center, Inc. (Ace DayCare) located in Eden Prairie, Minn. Many of the families for whom Ace DayCare provided childcare services participated in the Child Care Assistance Program, which provides low-income families with childcare assistance. HIRSI was responsible for submitting truthful and accurate billing forms for childcare services provided by Ace DayCare to families participating in the Child Care Assistance Program. Under the Child Care Assistance Program, child-daycare providers submit billing forms for reimbursement directly to the counties where qualifying families reside.
According to her guilty plea and documents filed in court, in February and March of 2013, HIRSI knowingly submitted Child Care Assistance Program billing forms that falsely inflated the number of children who received childcare services provided by Ace DayCare. As a result, HIRSI fraudulently obtained approximately $20,000 from the U.S. Department of Health and Human Services and the State of Minnesota for childcare services that were not actually provided.
"With our partners, we are aggressively targeting child care providers who try to collect payments from public programs for services they don't provide," said Minnesota Department of Human Services Inspector General Jerry Kerber, whose office oversees fraud prevention and detection efforts for state public assistance programs. "The seriousness of this crime is underscored by the fact that more than 6,100 Minnesota families are waiting to receive child care assistance."
This case is the result of an investigation conducted by the Federal Bureau of Investigation and the U.S. Department of Health and Human Services – Office of Inspector General.
U.S. Attorney Luger thanked the Minnesota Department of Human Services for their assistance.
Assistant U.S. Attorney John E. Kokkinen is prosecuting the case.
Defendant Information:
KHADRA ABDISAFAD HIRSI, 47
Eden Prairie, Minn.
Convicted:
• Theft of Public Money, 1 countNotice of HearingRead the Press Release
Contact Person: Beth Drake (803) 929-3000
Charleston, South Carolina ---- A plea and sentencing hearing has been scheduled in connection with United States v. Dorothy Barnett, a case involving International Parental Kidnapping and False Statements in a Passport Application. United States District Court Judge Richard M. Gergel will preside over the proceedings as indicated below.Northampton County, Pennsylvania, Man Charged with Downloading Images of Child Sexual AbuseRead the Press Release
NEWARK, N.J. – A Northampton County, Pennsylvania, man was arrested at his home this morning for allegedly downloading multiple images and videos of child sexual abuse, U.S. Attorney Paul J. Fishman announced.
Derrick Baer, 32, of Bath, Pennsylvania, and formerly of Pohatcong, New Jersey, is charged by complaint with one count of receiving child pornography and one count of possessing child pornography. He is scheduled to make his initial court appearance later today before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court.
According to documents filed in this case and statements made in court:
In May 2010, in connection with an investigation into a suspicious death at Baer’s residence, law enforcement obtained Baer’s consent to seize computer equipment in his residence. A subsequent forensic review of that equipment made pursuant to a search warrant revealed 368 images and 29 video files of child pornography. Law enforcement later determined that Baer used a file sharing program to download multiple files in January and February 2009.
The receipt of child pornography count with which Baer is charged is punishable by a maximum potential penalty of 20 years in prison, a minimum penalty of five years in prison, and a fine of $250,000. The possession count is punishable by a maximum potential sentence of 10 years in prison.
U.S. Attorney Fishman credited special agents of the FBI’s Child Exploitation Task Force, under the direction of Acting Special Agent in Charge Eric Welling in Newark; the Pohatcong Township Police Department, under the direction of Chief Jeffrey S. Greenemeir; and the Warren County Prosecutor’s Office, under the direction of Prosecutor Richard T. Burke, with the investigation leading to today’s arrest.
The government is represented by Assistant U.S. Attorney David W. Feder of the U.S. Attorney’s Office Criminal Division in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
15-049
Nigerian National Pleads Guilty to Fraud Charges in International Conspiracy CaseRead the Press Release
Gulfport, Miss – Teslim Olarewaju Kiriji, 30, a Nigerian national and one of eighteen defendants indicted in a nine-count federal indictment filed in the Southern District of Mississippi, entered a guilty plea today before U.S. District Judge Sul Ozerden to conspiracy to commit laundering of monetary instruments, announced U.S. Attorney Gregory K. Davis.
Kiriji faces a maximum penalty of twenty years in federal prison and a $500,000 fine or twice the value of the property involved. Kiriji admitted to being part of an international organization involved in multiple on-line fraud schemes which included the use of victims’ personal identification, banking and credit information.
The indictment alleges that a West African transnational organized criminal enterprise was involved in numerous complex financial fraud schemes over the internet. This mass marketing fraud included romance scams, reshipping scams, fraudulent check scams, and work-at-home scams along with bank, financial and credit card account take-overs.
The investigation was initiated in October, 2011, by Homeland Security Investigations ("HSI") agents in Gulfport after U.S. law enforcement officers were contacted by a female victim in Mississippi who was the victim of a sweetheart scam. The victim received a package in the mail requesting that she reship the merchandise to an address in Pretoria, South Africa. The investigation later revealed that the merchandise was purchased using stolen personal identity information and fraudulent credit card information of persons in the United States. Investigators have identified thousands of victims of this scam in the United States, resulting in the loss of millions of U.S. dollars.
The indictment in this case is the result of an investigation led by the HSI Gulfport office in partnership with the U.S. Postal Inspection Service, South African Police Service, Toronto
Police, HSI Cyber Crimes Center, Treasury Executive Office of Asset Forfeiture, HSI Ontario, HSI Charleston, Interpol South Africa, HSI Pretoria and HSI Atlanta.
The case in Mississippi is prosecuted by Assistant U.S. Attorneys Annette Williams and Scott Gilbert along with Robert Tully of the Organized Crime Gang Section of the Department of Justice.
Mortgage Fraud Ringleader, Mortgage Broker, and Title Agent Sentenced in Multi-Million Dollar Fraud SchemeRead the Press Release
Orlando, Florida – United States District Court Judge John A. Jarvey today sentenced James Fidel Sotolongo (49, Port Orange), Stephanie Musselwhite (52, Daytona Beach), and Christopher Mencis (53, Longwood) for their respective roles in a mortgage fraud scheme. Sotolongo was sentenced to eight years and four months in federal prison, Musselwhite received a sentence of five years’ imprisonment, and Mencis was sentenced to two years and four months in prison. They were also ordered to pay restitution, joint and severally, totaling $12,543,246 to JP Morgan Chase ($9,350,932), Wells Fargo ($1,640,467), and Bank of America ($1,551,847).
Sotolongo, Musselwhite, and Mencis were indicted on April 24, 2013. On February 4, 2014, Mencis, a mortgage broker, pleaded guilty to making false statements to a federally insured financial institution. A federal jury found Sotolongo and Musselwhite guilty on April 29, 2014. Sotolongo was convicted of one count of conspiracy and eleven counts of bank fraud. Musselwhite, a title agent in Orlando, was found guilty of one count of conspiracy, nine counts of bank fraud, and one count of making false statements to a federally insured financial institution.
According to evidence presented at trial, Sotolongo and Musselwhite were part of a scheme that recruited straw buyers with high credit scores to apply for and obtain 11 mortgages (first and second mortgages were obtained) totaling more than $12 million. The purpose of the scheme was to obtain the properties with no money down and no money at closings, rent the properties, and then sell them for a profit. To carry out the plan, Sotolongo enlisted the straw buyers and told them that they did not need to bring a deposit or cash to the closing, and that they only needed to be involved in the loan application process. The straw buyers testified that the loan applications submitted in their names contained false information, including the use of the property as a primary residence, their income, their assets, and their liabilities. Other false information included grossly inflated checking and savings account balances.
Mencis prepared the loan applications and submitted them through his brokerage company, Real Estate Mortgage Professionals (REMP). REMP has since gone out of business. He also used a former bank branch manager at SunTrust bank, at the direction of Sotolongo, to falsely verify the incomes and assets for the straw buyers. The loan applications were then sent off to several lenders, all of whom testified that they would not have funded the loans had they known that the information contained in the loan applications was false or grossly inflated.
After the loans were approved, Musselwhite prepared settlement statements listing closing costs and payments to a company called American Signature Homes, which was partly owned by Sotolongo. Musselwhite, who owned Orlando Title and Abstract of Florida, Inc., would wire lender money to American Signature Homes, and Sotolongo would use a portion of the lender money to finance the deposit and closing costs that Musselwhite would collect after the closings. The banks did not know that they were actually funding 100% of the loans on the multi-million dollar homes.
This case was investigated by the Federal Bureau of Investigation, the Florida Department of Financial Services, and the City of Daytona Beach Shores Department of Public Safety. It was prosecuted by Assistant United States Attorney Shawn P. Napier.
Mission Man Sentenced for Assault by Striking, Beating and WoundingRead the Press Release
United States Attorney Brendan V. Johnson announced that a Mission, South Dakota, man convicted of Assault by Striking, Beating, and Wounding was sentenced on February 5, 2015, by U.S. Magistrate Judge Mark A. Moreno.
Joseph Lambert, age 27, was sentenced to 12 months of probation and a special assessment of $25 to the Federal Crime Victims Fund.
Lambert was indicted by a federal grand jury on May 13, 2014. He pled guilty on December 5, 2014.
The conviction stems from an incident on April 23, 2014, when Lambert had an argument with his girlfriend and the mother of his two children. While arguing, the victim threw a cup at Lambert and Lambert grabbed the victim from behind, wrapped his arms around her upper body, and assaulted her. The victim bit his arm, he released her and she fled the residence.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Tim Maher prosecuted the case.
Mission Man Sentenced for Assault by Striking, Beating and WoundingRead the Press Release
United States Attorney Brendan V. Johnson announced that a Mission, South Dakota, man convicted of Assault by Striking, Beating, and Wounding was sentenced on February 5, 2015, by U.S. Magistrate Judge Mark A. Moreno.
Joseph Lambert, age 27, was sentenced to 12 months of probation and a special assessment of $25 to the Federal Crime Victims Fund.
Lambert was indicted by a federal grand jury on May 13, 2014. He pled guilty on December 5, 2014.
The conviction stems from an incident on April 23, 2014, when Lambert had an argument with his girlfriend and the mother of his two children. While arguing, the victim threw a cup at Lambert and Lambert grabbed the victim from behind, wrapped his arms around her upper body, and assaulted her. The victim bit his arm, he released her and she fled the residence.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Tim Maher prosecuted the case.
Mexican National Indicted for Illegal ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that NAZARIO HERNANDEZ-MALDONADO, age 53, from Mexico, was charged today in a one-count Indictment with illegal reentry into the United States after having been previously deported.
According to the indictment, on January 23, 2015, Immigration and Customs Enforcement agents encountered HERNANDEZ-MALDONADO in Lafourche. Records showed he had been previously deported from the United States to Mexico on both August 8, 1998, and July 1, 2000.
If convicted, HERNANDEZ-MALDONADO faces a maximum term of two years imprisonment, a maximum fine of $250,000, a maximum term of supervised release of one year, and a mandatory $100 special assessment.
U. S. Attorney Polite reiterated that an Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the Immigration and Customs Enforcement and the Lafourche Parish Sheriff’s Department in investigating this matter. Assistant U.S. Attorney Rick Veters is in charge of the prosecution.
Merritt Island Man Sentenced to Life in Federal Prison for Child Exploitation OffensesRead the Press Release
Orlando, Florida – Senior United States District Judge John Antoon, II today sentenced Michael Glenn Glascock (39, Merritt Island) to life in federal prison for attempted online sexual enticement of a minor. He was also sentenced to a concurrent term of 30 years for sexual exploitation of a minor for the purpose of producing child pornography. Glascock pleaded guilty on August 18, 2014.
According to court documents, from October 11, 2012, through October 11, 2013, Glascock used a three-year-old victim to produce visual depictions of the child engaging in sexually explicit conduct. In the fall of 2013, an undercover agent with the Brevard County Sheriff’s Office responded to an online advertisement that Glascock had posted on Craigslist. The agent communicated with Glascock over the Internet and by cell phone. During these conversations, Glascock described his sexual abuse of the minor victim and expressed an interest in meeting the agent and the agent’s fictitious minor daughter. Glascock further expressed a desire to meet and engage in illegal sexual activity with the fictitious child, and he offered to allow the agent to engage in sexual activity with the minor victim. After finalizing plans to meet, agents went to Glascock’s home, where they met him and located the minor victim. The victim was taken to a medical facility and examined for sexual assault. Subsequent laboratory tests revealed the presence of Glascock’s semen on the child’s body, as well as in the child’s diaper.
During an interview with agents, Glascock admitted to producing pornographic images of the minor victim, to sexually abusing the minor as depicted in some of the images, and to distributing and receiving images of child pornography over the Internet. Agents executed a search warrant at Glascock’s home and recovered his cell phones, SD cards, and the digital camera that he had used to produce some of the explicit images involving the minor victim. A forensic examination of these devices revealed that there were 24 images depicting explicit sexual conduct involving the minor victim on one of the SD cards.
Agents also searched Glascock’s email accounts and discovered explicit images of the minor victim that Glascock had sent to another individual. In these and other emails, Glascock had numerous discussions about his sexual abuse of the minor victim. In a series of emails discovered by agents, Glascock, and an individual identified to be Jonathan Tyler Prive, discussed an incident where Prive sexually abused the minor victim at Glascock’s home, as Glascock watched the abuse. A subsequent investigation led to Prive’s arrest. He pleaded guilty to attempted enticement of a minor on August 27, 2014, and is scheduled to be sentenced on February 27, 2015.
“This sadistic criminal has preyed on the most vulnerable members of our society, our children, and this sentencing underscores the serious consequences of those crimes,” said Susan L. McCormick, special agent in charge of HSI Tampa. “HSI, and our law enforcement partners, like the Brevard County Sheriff’s Office, will not rest in our efforts to protect our youth and communities from predators like this.”
This case was investigated by the Brevard County Sheriff’s Office and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). It was prosecuted by Assistant United States Attorney Andrew C. Searle.
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.jutice.gov/psc.
Medtronic Inc. to Pay $2.8 Million to Resolve False Claims Act Allegations Related to "SubQ Stimulation" ProceduresRead the Press Release
Medical device manufacturer Medtronic Inc. has agreed to pay the United States $2.8 million to resolve allegations under the False Claims Act that Medtronic caused certain physicians to submit false claims to federal health care programs for a medical procedure known as “SubQ stimulation,” the Justice Department announced today. Medtronic Inc. is a medical technology company based in Minnesota.
“Today’s settlement demonstrates our commitment to ensure that beneficiaries of federal health care plans, including Medicare recipients and military families, receive medical treatments that have been proven safe and effective,” said Acting Assistant Attorney General Joyce R. Branda of the Justice Department’s Civil Division. “Targeting chronic pain patients with a medical procedure that lacks evidence of clinical efficacy wastes the country’s health care resources.”
The United States alleged that from 2007 through 2011, Medtronic knowingly caused dozens of physicians located throughout more than 20 states to submit claims to Medicare and TRICARE for investigational medical procedures known as SubQ stimulation that were not reimbursable. In these procedures, Medtronic’s spinal cord stimulation devices were placed just beneath the skin near an area of pain, most often in the lower back, where the devices could provide electrical impulses to create a “tingling” sensation intended to alleviate chronic pain. The United States alleged that even though the safety and efficacy of SubQ stimulation had not been established as required by the Food and Drug Administration (FDA), the company promoted this procedure by, among other strategies, arranging to have physician-customers attend Medtronic-sponsored “on-site training programs” regarding the use of Medtronic spinal cord stimulation devices for SubQ stimulation.
“Patients should be able to trust that their health care providers only use – and bill Medicare for – medical procedures that have been shown to be safe and effective,” said Special Agent in Charge Scott J. Lampert of the Department of Health and Human Services’ Office of Inspector General (HHS–OIG). “Our agency will continue to pursue medical device makers that ignore requirements designed to protect patient health and federal health care programs.”
The civil settlement resolves a lawsuit filed under the whistleblower provision of the False Claims Act, which permits private parties to file suit on behalf of the United States for false claims and obtain a portion of the government’s recovery. The lawsuit was filed by Jason Nickell, who formerly worked as a Medtronic sales representative. Nickell will receive $602,000.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $23.5 billion through False Claims Act cases, with more than $15 billion of that amount recovered in cases involving fraud against federal health care programs.
The settlement with Medtronic was the result of a coordinated effort among the U.S. Attorney’s Office for the Western District of New York, the Civil Division’s Commercial Litigation Branch, HHS–OIG, the Defense Health Agency, the FDA’s Office of Chief Counsel and the FDA’s Office of Criminal Investigations.
The claims resolved by this settlement are allegations only and there has been no determination of liability. The lawsuit is captioned United States ex rel. Nickel v. Medtronic, Inc. Civ. No. 09 - CV - 0203-S (W.D.N.Y.).
Longmont Man Pleads Guilty to Investment Fraud SchemeRead the Press Release
DENVER – Gary Snisky, age 48, of Longmont, Colorado, pled guilty yesterday before U.S. District Court Judge Raymond P. Moore to mail fraud and money laundering, federal authorities announced. Judge Moore is scheduled to sentence Snisky on June 18, 2015. Snisky was indicted by a federal grand jury in Denver on November 19, 2013. Snisky’s co-conspirator, Richard Greeott, plead guilty on October 7, 2013 to mail fraud and money laundering charges. Greeott is scheduled to be sentenced by Judge Phillip A. Brimmer on April 24, 2015.
According to information contained in court documents for both cases, including the plea agreements and indictment, from 2009 through 2011, Snisky operated Colony Capital in Colorado, which purported to be a private equity firm offering investment opportunities in bonds, futures trading, and other offerings. In 2011, Snisky shut down Colony Capital and formed Arete in Longmont, Colorado, which operated in a similar manner.
Beginning in late 2009, as a paid independent contractor, co-conspirator Richard Greeott began doing website development work for Colony Capital. In 2010, Snisky asked Greeott to develop a fully-automated trading system for trading in the futures market, particularly an algorithm. In 2011, Greeott believed that he had developed an algorithm for trading in the futures market that he tested in a simulated environment for several months. Eventually, Greeott began testing the algorithm by trading small amounts of money in small, but real, futures contracts. At all times, the algorithm was still in a developmental phase. At no time did anyone at Colony Capital or Arete trade a significant amount of money or make any real profit.
In 2010, Snisky falsely led investors, potential investors, and financial advisors to believe the algorithm was being used by Colony Capital, and later Arete, to profitably trade in the futures market in order to falsely bolster their appearance of success and overall financial stability. Between July 2011 and January 2013, Snisky falsely led investors, potential investors, and financial advisors to believe that they were trading “live” in the futures markets and that they had a history of trading profitably in the futures market. Also, from July of 2011 through January 2013, Snisky offered investors a “proprietary value model” which was based on using the investors’ money to purchase Ginnie Mae bonds. Throughout 2012, Snisky continued to make false assurances about the safety of investing in the Bond Program despite the fact that Snisky knew that he had not purchased any Ginnie Mae bonds as promised.
The net loss Snisky caused to investors in the bond and futures trading program was $5,226,965.93. To date, as a result of asset forfeiture proceedings, victims are in the process of being paid restitution in the amount of $2,695,913.32. The remaining amount of restitution is $2,531,052.61, most of which is jointly liable between Snisky and Greeott.
Snisky plead to one count of mail fraud, which carries a penalty of not more than 20 years in federal prison, and a fine of up to $250,000; one count of money laundering, which carries a penalty of not more than 10 years in federal prison, and a fine of up to $500,000.
This case was investigated by the Internal Revenue Service – Criminal Investigation, the Federal Bureau of Investigation, and the United States Postal Inspection Service.
This case is being prosecuted by Assistant U.S. Attorney Pegeen D. Rhyne, with Assistant U.S. Attorney Tonya Andrews is handling the forfeiture proceedings.
Lighting Contractor Sentenced to One Year in Prison for Agreeing to Bribe Broward Public OfficialRead the Press Release
A lighting contractor was sentenced today to one year and a day imprisonment for agreeing to bribe a Broward County public official.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, FBI, Miami Field Office, made the announcement.
William E. Pino, 60, of Miami, was sentenced before U.S. District Court Judge Beth Bloom to one year and a day in prison, followed by one year of supervised release during which the defendant is required to perform 300 hours of community service, and was ordered to pay a $25,000 fine. Pino previously pled guilty to a one-count information charging him with offering and agreeing to give something of value to a public official with the intent to influence or reward said public official in connection with a transaction or series of transactions and thereby committing bribery in programs receiving federal funds.
According to the information and the stipulated statement of facts executed by the parties and filed with the Court, Pino was involved in a number of companies in South Florida that were in the business of installing, repairing and maintaining street lights, traffic signals, and traffic systems and the sale of products needed to make such installations and repairs, such as light poles. From in or about April 2012 through on or about June 27, 2012, Pino met with a confidential informant who advised Pino that there were upcoming public works projects in Broward County for traffic systems, traffic signs, street lights and light poles. The informant advised Pino that the informant had a contact in Broward County, but that Pino would need to “take care of” the public official. Pino agreed to ?take care of? the public official.
On or about May 24, 2012, Pino was told that the public official had a purchase order for $100,000 in light poles for Pino’s company. Pino agreed to pay the public official $5,000 in exchange for the purchase order containing $100,000 of his light poles. On or about June 27, 2012, there was a meeting between Pino, the informant, and the public official in Plantation, Florida. Pino was handed a purchase order for his company to provide Broward County with $100,000 worth of light poles and Pino then handed the public official an envelope containing $5,000 in U.S. currency.
Mr. Ferrer commended the investigative efforts of the FBI. The case was prosecuted by Assistant U.S. Attorney Jeffrey N. Kaplan.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Lehigh Acres Woman Convicted of Drug ConspiracyRead the Press Release
Fort Myers, Florida – United States Attorney A. Lee Bentley, III announces that a federal jury has found Deena Williams (40, Lehigh Acres) guilty of conspiracy to possess with intent to distribute methylone. She faces a maximum penalty of 20 years in federal prison. Her sentencing hearing is scheduled for May 4, 2015.
Williams was indicted on April 30, 2014.
According to evidence presented at trial, on April 21, 2014, U.S. Customs and Border Protection officials at an international mail facility in New York encountered an International Express Mail Service parcel from the People’s Republic of China. After searching the parcel, they determined that it contained methylone. U.S. Immigration and Customs Enforcement’s Homeland Security Investigations agents made a controlled delivery of the package to a Lehigh Acres address, where Williams accepted the package. She subsequently opened the package and removed the drugs. Further investigation revealed that the package belonged to her brother, Titus Lamar Bellot, who was also charged as part of the same conspiracy. His trial is scheduled to begin on February 9, 2015.
This case was investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It is being prosecuted by Assistant United States Attorney Jeffrey F. Michelland.
Lead Man Indicted for Possession of an Unregistered FirearmRead the Press Release
United States Attorney Brendan V. Johnson announced that a Lead, South Dakota, man has been indicted by a federal grand jury for Possession of an Unregistered Firearm.
Archie Roberts, age 28, was indicted on December 16, 2014. He appeared before U.S. Magistrate Judge Veronica L. Duffy on February 4, 2015, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge relates to Roberts possessing two sawed off shotguns, which were not registered to him, on September 30, 2014, in Lead.
The charge is merely an accusation and Roberts is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Lead Police Department. Assistant U.S. Attorney Eric Kelderman is prosecuting the case.
Roberts was released on bond pending trial. A trial date has been set for April 14, 2015.
Investment Advisor Sentenced to 42 Months in Prison for Tax EvasionRead the Press Release
United States Attorney Andrew M. Luger and Special Agent in Charge of the Internal Revenue Service – Criminal Investigation Division St. Paul Field Office Shea Jones today announced the sentence of JOEL WILLIAM CARLSON, 43, of Vadnais Heights, MN, to 42 months in prison. CARLSON pleaded guilty on September 10, 2014, to two counts of tax evasion for tax years 2010 and 2011.
According to his guilty plea and documents filed in court, CARLSON acted as an investment advisor during 2010 and 2011. He deposited client investments, as well as additional funds solicited from his father, into a Trust Financial Group (“TFG”) account, that CARLSON treated as his personal bank account. Instead of investing the funds, CARLSON spent the money on personal items and, when confronted, lied to his clients about the existence of their investments. In addition to intentionally misappropriating both client assets and his father’s assets, totaling more than $1.5 million, CARLSON failed to file personal income tax returns for tax years 2010 and 2011.
According to his guilty plea, CARLSON also failed to timely file personal income tax returns for tax years 2005 through 2007. As a result, the IRS filed a federal tax lien against CARLSON for approximately $495,000.
In addition to paying restitution of approximately $1.9 million to the investment fraud victims and his father, CARLSON will also pay approximately $1.2 million in restitution to the Internal Revenue Service.
Assistant U.S. Attorney Tracy L. Perzel prosecuted this case.
This case was the result of an investigation by the Internal Revenue Service – Criminal Investigation Division.
Defendant Information:
JOEL WILLIAM CARLSON
Vadnais Heights, MN
Convicted:
• Attempt to Evade and Defeat Tax, 2 counts
Sentenced:
• 42 months in prison
• Ordered to pay approximately $3.1 million in restitutionInternational Terrorism Defendant Sentenced in Manhattan to 25 Years in PrisonRead the Press Release
Assistant Attorney General for National Security John P. Carlin and U.S. Attorney Preet Bharara of the Southern District of New York announced that Adel Abdel Bary, aka “Adel Mohammed Abdul Almagid Abdel Bary,” aka “Abbas,” aka “Abu Dia,” aka “Adel” (Bary), was sentenced in Manhattan federal court to 25 years in prison for his conviction on international terrorism charges in connection with Bary’s work on behalf of al Qaeda and the Egyptian Islamic Jihad. Bary was extradited to the United States from the United Kingdom on Oct. 6, 2012. On Sept. 19, 2014, Bary pleaded guilty to a three-count superseding Information charging him with one count of conspiring to make a threat to kill, injure, intimidate, and damage and destroy property by means of an explosive, one count of making such a threat, and one count of conspiring to kill U.S. nationals. Bary pleaded guilty before U.S. District Judge Lewis A. Kaplan, who also imposed today’s sentence.
“Adel Abdel Bary was a member of the London cell of the Egyptian Islamic Jihad and worked closely with al Qaeda leadership both before and after the bombings of the U.S Embassies in Kenya and Tanzania in 1998 to disseminate al Qaeda threats against U.S. citizens and interests around the world,” said Assistant Attorney General Carlin. “This sentence holds him accountable for his key role in facilitating the delivery of al Qaeda’s message to extremists around the world encouraging the commission of violent acts against the United States and its citizens. I commend all of the people who worked on this case over many years in order to reach this result.”
“Adel Abdel Bary occupied important positions in Egyptian Islamic Jihad and al Qaeda,” said U.S. Attorney Bharara. “As he admitted at his plea last September, he facilitated communications by Osama bin Laden and other al Qaeda leaders, including publication of the 1998 al Qaeda fatwah to kill Americans, and al Qaeda’s claims of responsibility for the 1998 bombings of two American embassies in Africa. The sentence imposed today reflects the seriousness of Bary’s crimes, his role, and his acceptance of responsibility for them.”
According to the indictment based on which Bary was extradited, the superseding information to which he pleaded, other documents filed in Manhattan federal court, and statements made at Bary’s guilty plea and at today’s sentencing:
In 1997 and 1998, Bary led the London, England, cell of the Egyptian Islamic Jihad (EIJ) organization. EIJ, which was led for years by co-defendant Ayman al Zawahiri, was dedicated to the forceful overthrow of the Egyptian Government and to violent opposition of the United States, in part, for its support of the Government in Egypt. By February 1998, EIJ had effectively merged with al Qaeda and EIJ joined with al Qaeda in targeting American civilians. To that end, in February 1998, indicted co-defendant Usama Bin Laden and Zawahiri endorsed a purported fatwah under the banner of the “International Islamic Front for Jihad on the Jews and Crusaders.” This fatwah stated that Muslims should kill Americans – including civilians – anywhere in the world where they can be found. Then again, on Aug. 4, 1998, EIJ published a statement threatening to retaliate against America for its claimed involvement in the apprehension of EIJ members. A copy of this statement was found in an office used by Bary and his London-based co-conspirators.
While in London, Bary pledged his commitment to pursue the goals of EIJ and to follow the orders of the leadership of the group. Many of the leading members of EIJ became influential members of al Qaeda, including Zawahiri and indicted co-defendant Muhammad Atef, both of whom later sat on the majlis al shura (or consultation council) of al Qaeda. Zawahiri is now the declared leader of al Qaeda.
On Aug. 7, 1998, three days after EIJ published its threat to retaliate against America, al Qaeda operatives bombed the United States Embassies in Nairobi, Kenya, and Dar es Salaam, Tanzania, killing 224 people. Bary transmitted, via international telephone calls to the media, the contents of al Qaeda’s claims of responsibility for the Aug. 7, 1998, bombings. These claims of responsibility included threats of future terrorist attacks by al Qaeda and its allies, and were sent from London to media organizations in France, Qatar, and the United Arab Emirates on Aug. 8, 1998 – the day after the embassy bombings.
In August 1998, both before and after the bombings, Bary additionally arranged for messages to be transmitted from members of the media to his co-conspirators, including Bin Laden and Zawahiri, and conveyed messages from his co-conspirators, including Bin Laden and Zawahiri, to members of the media. Bary also used an office in London, which he shared with co-conspirators, to store documents, including the claims of responsibility described above, as well as for other conduct related to the conspiracy to murder U.S. nationals.
* * *
In addition to his prison term, Bary, 54, was ordered to pay restitution in the amount of $33,816,561, including $7,516,561 to victims’ family members for loss of income and $26,300,000 to the United States for property loss.
A co-defendant, Khalid al Fawwaz, aka “Khaled Abdul Rahman Hamad al Fawwaz,” aka “Abu Omar,” aka “Hamad” (Fawwaz), is currently on trial before U.S. District Judge Kaplan. The charges against Fawwaz are merely accusations, and Fawwaz is presumed innocent unless and until proven guilty.
Assistant Attorney General Carlin and U.S Attorney Bharara praised the outstanding efforts of the FBI’s New York-based Joint Terrorism Task Force – which principally consists of special agents of the Federal Bureau of Investigation and detectives of the New York City Police Department – as well as the outstanding efforts of the United States Marshals Service, Metropolitan Police Department of London (New Scotland Yard) and the Department of Justice’s Office of International Affairs.
This case is being prosecuted by Assistant U.S. Attorneys Sean S. Buckley, Adam Fee, Nicholas J. Lewin, and Stephen J. Ritchin of the Southern District of New York’s Terrorism and International Narcotics Unit.
International Terrorism Defendant Sentenced in Manhattan Federal Court to 25 Years in PrisonRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and John P. Carlin, Assistant Attorney General for National Security, announced that ADEL ABDEL BARY, a/k/a “Adel Mohammed Abdul Almagid Abdel Bary,” a/k/a “Abbas,” a/k/a “Abu Dia,” a/k/a “Adel” (“BARY”), was sentenced in Manhattan federal court to 25 years in prison for his conviction on international terrorism charges in connection with BARY’s work on behalf of al Qaeda and the Egyptian Islamic Jihad. BARY was extradited to the United States from the United Kingdom on October 6, 2012, 13 years after the United States had sought his extradition. On September 19, 2014, BARY pled guilty to a three-count superseding Information charging him with one count of conspiring to make a threat to kill, injure, intimidate, and damage and destroy property by means of an explosive, one count of making such a threat, and one count of conspiring to kill U.S. nationals. BARY pled guilty before United States District Judge Lewis A. Kaplan, who also imposed today’s sentence.
Manhattan U.S. Attorney Preet Bharara said: “Adel Abdel Bary occupied important positions in Egyptian Islamic Jihad and al Qaeda. As he admitted at his plea last September, he facilitated communications by Osama bin Laden and other al Qaeda leaders, including publication of the 1998 al Qaeda fatwah to kill Americans, and al Qaeda’s claims of responsibility for the 1998 bombings of two American embassies in Africa. The sentence imposed today reflects the seriousness of Bary’s crimes, his role, and his acceptance of responsibility for them.”
Assistant Attorney General John Carlin said: “Adel Abdel Bary was a member of the London cell of the Egyptian Islamic Jihad and worked closely with al Qaeda leadership both before and after the bombings of the U.S Embassies in Kenya and Tanzania in 1998 to disseminate al Qaeda threats against U.S. citizens and interests around the world. This sentence holds him accountable for his key role in facilitating the delivery of al Qaeda’s message to extremists around the world encouraging the commission of violent acts against the United States and its citizens. I commend all of the people who worked on this case over many years in order to reach this result.”
According to the Indictment based on which BARY was extradited, the Superseding Information to which he pled, other documents filed in Manhattan federal court, and statements made at BARY’s guilty plea and at today’s sentencing:
In 1997 and 1998, BARY led the London, England, cell of the Egyptian Islamic Jihad (“EIJ”) organization. EIJ, which was led for years by co-defendant Ayman al Zawahiri, was dedicated to the forceful overthrow of the Egyptian Government and to violent opposition of the United States, in part, for its support of the Government in Egypt. By February 1998, EIJ had effectively merged with al Qaeda, and EIJ joined with al Qaeda in targeting American civilians. To that end, in February 1998, indicted co-defendant Usama Bin Laden, now deceased, and Zawahiri endorsed a purported fatwah under the banner of the “International Islamic Front for Jihad on the Jews and Crusaders.” This fatwah stated that Muslims should kill Americans – including civilians – anywhere in the world where they can be found. Then again, on August 4, 1998, EIJ published a statement threatening to retaliate against America for its claimed involvement in the apprehension of EIJ members. A copy of this statement was found in the London office used by BARY and his London-based co-conspirators.
While in London, BARY pledged his commitment to pursue the goals of EIJ and to follow the orders of the leadership of the group. Many of the leading members of EIJ became influential members of al Qaeda, including Zawahiri and indicted co-defendant Muhammad Atef, both of whom later sat on the majlis al shura (or consultation council) of al Qaeda. Zawahiri is now the declared leader of al Qaeda.
On August 7, 1998, three days after EIJ published its threat to retaliate against America, al Qaeda operatives bombed the United States Embassies in Nairobi, Kenya, and Dar es Salaam, Tanzania, killing 224 people. BARY transmitted, via international telephone calls to the media, the contents of al Qaeda’s claims of responsibility for the August 7, 1998, bombings. These claims of responsibility included threats of future terrorist attacks by al Qaeda and its allies, and were sent from London, England, to media organizations in France, Qatar, and the United Arab Emirates on August 8, 1998 – the day after the embassy bombings.
In August 1998, both before and after the bombings, BARY additionally arranged for messages to be transmitted from members of the media to his co-conspirators, including Bin Laden and Zawahiri, and conveyed messages from his co-conspirators, including Bin Laden and Zawahiri, to members of the media. BARY also used an office in London, which he shared with co-conspirators, to store documents, including the claims of responsibility described above, as well as for other conduct related to the conspiracy to murder U.S. nationals.
In addition to his prison term, BARY, 54, was ordered to pay restitution in the amount of $33,816,561.75, including $7,516,561.75 to victims’ family members for loss of income and $26,300,000.00 to the United States for property loss.
A co-defendant, Khalid al Fawwaz, a/k/a “Khaled Abdul Rahman Hamad al Fawwaz,” a/k/a “Abu Omar,” a/k/a “Hamad” (“Fawwaz”), is currently on trial before Judge Kaplan. The charges against Fawwaz are merely accusations, and Fawwaz is presumed innocent unless and until proven guilty.
Mr. Bharara praised the outstanding efforts of the FBI’s New York-based Joint Terrorism Task Force – which principally consists of special agents of the Federal Bureau of Investigation and detectives of the New York City Police Department – as well as the outstanding efforts of the United States Marshals Service and the Metropolitan Police Department of London (New Scotland Yard). Mr. Bharara also thanked the U.S. Department of Justice’s Office of International Affairs and National Security Division for their ongoing assistance.
This case is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys Sean S. Buckley, Adam Fee, Nicholas J. Lewin, and Stephen J. Ritchin are in charge of the prosecution.
Husband and Wife Who Fled Prior to Trial in Colorado Arrested in the BahamasRead the Press Release
BOTH DEFENDANTS MAKE COURT APPEARANCE IN MIAMI AFTER BEING DEPORTED BY BAHAMIAN GOVERNMENT
DENVER – Donald and Karlien Winberg, of Earth, Texas, appeared in federal court in Miami today after being arrested at Miami International Airport yesterday on charges of bond violations in Colorado, U.S. Attorney John Walsh and FBI Special Agent in Charge Thomas Ravenelle announced. Donald Winberg, age 44, and Karlien Winberg, age 33, were originally detained in the Bahamas after fleeing the United States to avoid trial on conspiracy and wire fraud charges in Colorado. Authorities in the Bahamas had detained the defendants, who were accompanied by their seven children, for failing to have proper identification and travel documents. Bahamian authorities also knew of the federal arrest warrants based on the bond condition violations, which resulted in the Winbergs being deported. The two defendants and their seven children were put on a flight to the United States, landing in Miami, where they were taken into custody by FBI agents.The Winbergs were indicted by a federal grand jury in Denver on April 22, 2014. As their case progressed in U.S. District Court in Denver, Colorado, and as the defendants neared trial, they committed alleged bond violations and later fled, resulting in the issuance of arrest warrants in October 2014.
The Winbergs, beginning in 2010, advertised on the internet that they had hay and corn for sale. Once a potential buyer contacted the defendants, a sale would be negotiated. Defendants claimed to buyers that they owned extensive farmland in Idaho and Texas; that they produced hay, straw, potatoes, and other agricultural crops in substantial quantities; that they shipped large quantities of agricultural products throughout the United States; that they had between 15,000 and 65,000 tons of hay for sale; and that they had trucks to deliver the large quantities of purchased hay or corn to the buyer. The defendants would then take the victims’ money and not deliver the material that was advertised, purchased and promised.
As the case was moving toward trial, the Winbergs fled, at one point staying in the Galveston, Texas area. The defendants purchased a sail boat that they then ran aground not far from the shore. At that time it was believed that they had a large amount of cash. Around that same time, the defendants were the subject of local publicity in the Galveston area. The Winbergs were able to obtain another boat and successfully travelled to the Bahamas. They were arrested without incident on a boat near the Staniel Cay Yacht Club in the Bahamas. The arrest was made by Bahamian authorities after a Louisiana family vacationing in the Bahamas recognized the family from a press story out of Galveston. The defendants failed to provide identification documents, and the Bahamian authorities, knowing about the federal arrest warrants, arrested the two defendants. They were then deported back to the United States, where they were arrested. After the court orders that they be sent to Colorado, the U.S. Marshals Service will be responsible for their transportation. No time table has been set for that transport. Social Services is working to determine what happens to the seven children.
The defendants face one count of conspiracy to commit wire fraud. If convicted of that count, they face not more than 20 years in federal prison, and up to a $250,000 fine. They each face 14 counts of wire fraud and/or aiding and abetting. If convicted of wire fraud, or aiding and abetting, the defendants face not more than 20 years in federal prison, and up to a $250,000 fine per count.
This case was originally investigated by the FBI. The FBI wants to recognize the following agencies that assisted in the search and arrest of the Winbergs: Drug Enforcement Administration, Customs and Border Protection, American Citizen Services at the U.S. Embassy in Nassau, Bahamas, and the Royal Bahamas Police Force.
The defendants are being prosecuted by Assistant U.S. Attorney Patricia Davies. The Justice Department’s Office of International Affairs also provided assistance in this case.
The indictment is an allegation, and the defendants are presumed innocent unless and until proven guilty.
Houston Man Pleads Guilty to Sex Trafficking of a ChildRead the Press Release
ALEXANDRIA, Va. – Michael Anthony Randall, aka “Divine tha Victorious Mack,” 32, previously from Charlottesville, Virginia, and Galveston, Texas, but mostly recently from Houston, Texas, pleaded guilty today to sex trafficking of a child.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Clark E. Settles, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Washington, D.C.,; and Colonel Edwin C. Roessler, Jr., Chief of the Fairfax County Police Department, made the announcement after the plea was accepted by U.S. District Judge Liam O’Grady.
Randall faces a maximum penalty of life in prison. 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.
In a statement of facts filed with the plea agreement, Randall admitted that he was a member of a sex trafficking venture that was sometimes known as, “Horse Block Pimpin’.” The sex trafficking venture operated from at least 2009 to at least 2013. Randall conceded that he used force and coercion to maintain control over victims who were prostituted and to keep them from leaving. He and other members of this venture used force, threats of force, and coercion to prostitute more than 55 women and girls, some of whom were minors.
Randall prostituted victims in several different states, including Virginia, North Carolina, Maryland, New Jersey, New York, Pennsylvania, and Texas. Randall held a supervisory role in the sex trafficking venture, which included recruiting, harboring, and prostituting women and girls, and arranging for the transportation of girls and women who were prostituted. Among other things, he used false promises of a better life, force and coercion to recruit women and keep them prostituting. The victims were required to give nearly all of the prostitution proceeds to Randall and other co-conspirators of Horse Block Pimpin’.
This case was investigated by Homeland Security Investigations and the Fairfax County Police Department, with the assistance of the Stafford County Sheriff’s Office, the Henrico County Police Department, the Spotsylvania County Sheriff’s Office, and the Lynchburg Police Department. Assistant U.S. Attorney Michael J. Frank and Special Assistant U.S. Attorney Kathryn A. Kimball are prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:15-cr-39.Houston Couple Sentenced in Chinese Restaurant Employment ConspiracyRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – A Houston husband and wife have been sentenced to federal prison for racketeering violations in connection with an employment referral conspiracy in the Eastern District of Texas, announced U.S. Attorney John M. Bales and Brian M. Moskowitz, special agent in charge of Homeland Security Investigations in Houston today.
Lina Sun, 55, and Chenglun Ma, 58, both pleaded guilty on June 3, 2014, to RICO conspiracy and were sentenced on Feb. 5, 2015 by U.S. District Judge Thad Heartfield. Sun was sentenced to 18 months in federal prison and Ma received 13 months in federal prison. They were also jointly ordered to submit to forfeiture of a residence located at 8715 Bellaire Blvd. in Houston, $2.2 million money judgment, and forfeiture of $50,000 cash.
According to court documents, Lina Sun and her husband, Chenglun Ma operated the “Hong Li employment agency” in Houston Texas for more than a decade. The principal purpose of the employment agency was the placement of prohibited aliens as food service workers in Chinese/Asian restaurants across the United States. Restaurants securing employees from this scheme have been identified in 20 states, including some as far away as Maine. Some of the most prolific restaurants in the scheme were located in Jefferson County, Texas.
Federal indictments were returned on Nov. 7, 2013, charging 32 individuals with RICO conspiracy and conspiracy to transport, harbor, and encourage and induce aliens to reside in the United States.
This case was investigated by U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI) offices in: Houston, Dallas, San Antonio and New Orleans; U.S. Customs and Border Protection, Office of Air and Marine; U.S. Marshals Service; and Police Department’s in Houston, Port Author and Beaumont. This case was prosecuted by Assistant U.S. Attorney John Craft.Honduran National Pleads Guilty to Illegal ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JOSE EDGARDO CANALES-MADRID, age 25, a citizen of Honduras, pled guilty today to a one-count Bill of Information for illegal reentry of removed alien.
According to the Bill of Information, on or about December 1, 2014, CANALES-MADRID was found in the United States after having been officially deported and removed on or about October 6, 2011.
CANALES-MADRID faces a maximum term of imprisonment of two years and a fine of $250,000, or the greater of twice the gross gain to the defendant, one year supervised release after imprisonment, and a $100 special assessment. U.S. District Judge Carl J. Barbier set sentencing for March 19, 2015.
U.S. Attorney Polite praised the work of the United States Department of Homeland Security, U.S. Border Patrol in investigating this matter. Assistant United States Attorney Irene González is in charge of the prosecution.
Harrison County, WV man guilty of unlawful possession of a firearmRead the Press Release
CLARKSBURG, WEST VIRGINIA – Following a three day trial, a jury found convicted felon Joseph Garrett, 50, of Haywood, West Virginia, guilty of unlawful possession of a firearm, United States Attorney William J. Ihlenfeld, II, announced.
Garrett was previously convicted of multiple offenses in the Circuit Court of Marion County, West Virginia, including “Breaking and Entering” in 1983, “Sexual Assault in the Third Degree” in 1988, and “Second Degree Murder” in 1998. As a result of these convictions, Garrett is prohibited from possessing firearms.
Evidence presented at trial revealed that in May 2014, Garrett was in unlawful possession of a 12 gauge shotgun in Harrison County, West Virginia.
The jury found Garrett guilty of one count of “Felon in Possession of Firearm,” for which he faces up to 10 years in prison and a fine of up to $250,000.00. The jury also found Garrett guilty of one count of “Possession of a NFA Firearm Not Registered to a Person in the National Firearms Registration and Transfer Record,” for which he faces up to 10 years in prison and a fine of up to $10,000.00. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Shawn Morgan prosecuted the case on behalf of the government. The Harrison County Sheriff’s Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives led the investigation.U.S. District Judge Irene M. Keeley presided.
Heidelberg Man Sentenced to Prison for Sexual Contact with a MinorRead the Press Release
Jackson, Miss. – Aaron Grant Willis, 25, of Heidelberg, Mississippi, a member of the Mississippi Band of Choctaw Indians, was sentenced on February 5, 2015 by U.S. District Judge Keith Starrett to 18 months in prison followed by 10 years of supervised release for sexual contact with a minor under the age of twelve, announced U.S. Attorney Gregory K. Davis.
Willis was also ordered to pay a $5,000.00 fine and register as a sex offender. The crime occurred on the tribal lands of the Mississippi Band of Choctaw Indians.
This case was investigated by the Federal Bureau of Investigation and the Choctaw Police Department. It was prosecuted by Assistant U.S. Attorney Patrick Lemon.
Georgia Couple Arrested in New Mexico on Federal Methamphetamine Trafficking ChargesRead the Press Release
ALBUQUERQUE – Alex Thomas Burns, 24, of Atlanta, Ga., and Riana Latel Cunningham, 22, of Stockebridge, Ga., entered not guilty pleas this morning to a criminal complaint charging them with methamphetamine trafficking charges.
Burns and Cunningham were arrested on Feb. 3, 2015, in Albuquerque, N.M., on a criminal complaint charging them with possession of methamphetamine with intent to distribute. According to the criminal complaint, Burns and Cunningham were arrested after officers allegedly found more than nine kilograms of methamphetamine in their vehicle during a routine traffic stop on Interstate 40 on the west side of Albuquerque. The methamphetamine was found after Burns allegedly consented to have the officer search the vehicle.
If convicted of the charges in the criminal complaint, Burns and Cunningham each face a statutory maximum penalty of not less than ten years and not more than life in prison. Charges in complaints are merely accusations and defendants are presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by the Border Enforcement Security Taskforce of Homeland Security Investigations and is being prosecuted by Assistant U.S. Attorney Joel R. Meyers.
Fredericksburg Man Pleads Guilty for Investment Fraud Scheme Related to Quantico Corporate Center at StaffordRead the Press Release
RICHMOND, Va. –James Ashby Moncure, Jr., 42, of Fredericksburg, Virginia, pleaded guilty today to charges of Wire Fraud and Engaging in Unlawful Monetary Transactions.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office; Thomas J. Kelly, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI); and David M. McGinnis, Acting Postal Inspector in Charge of the U.S. Postal Inspection Service – Washington Division, made the announcement after the plea was accepted by U.S. District Judge Henry E. Hudson.Moncure was indicted by a federal grand jury on October 7, 2014. He faces a maximum penalty of 30 years in prison when he is sentenced on May 15, 2015. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
In a statement of facts filed with the plea agreement, Moncure agreed that, as a partial owner of Moncure Brothers LLC, he had partnered with The Silver Companies to develop property known as the Quantico Corporate Center at Stafford (QCCS), a business park located in Stafford County, Va., along Interstate 95 and US 1, adjacent to Marine Corps Base Quantico. Beginning prior to January 2010 and continuing through March 2014, Moncure solicited individuals for investment opportunities in exchange for short term promissory notes offering returns ranging from 10 percent up to 25 percent. In connection with those investments, Moncure claimed that the investment funds would be used for acquiring and developing land for the QCCS or another specified property. He also made misrepresentations about how the promised returns would be generated and the security of investment funds.
Instead, Moncure misappropriated a significant amount of investor funds for payment of returns to earlier investors and transfers to investment trading accounts from which he day-traded stocks and options. For the Wire Fraud transaction in Count Four, Moncure admitted receiving $200,000 from investor T.S. on January 28, 2014. The defendant had promised T.S. that the money would be used to expand and enhance the QCCS and to purchase land. In reality, on January 29, 2014, Moncure wire transferred $190,000 of T.S.’s funds to his own Options Express, Inc. trading account, where the money was used for his stock trading activities. He followed the same pattern for the Engaging in Unlawful Monetary Transactions charge in Count Seven. After receiving $800,000 in QCCS investment monies from investor C.C. on June 6, 2013, Moncure transferred those same funds to his Options Express, Inc. trading account on June 7, 2013. He then used C.C.’s funds for his stock trading activities, as opposed to investment into the QCCS.
This case was investigated by FBI’s Fredericksburg Resident Agency, Internal Revenue Service-Criminal Investigations, and U.S. Postal Inspection Service. Assistant U.S. Attorneys Michael Gill and Katherine Martin are prosecuting the case on behalf of the United States.
This investigation has been coordinated by the Virginia Financial and Securities Fraud Task Force, an unprecedented partnership between criminal investigators and civil regulators to investigate and prosecute complex financial fraud cases in the nation and in Virginia. The task force is comprised of several federal and state agencies, including the Virginia Attorney General’s Office, and it also serves as an investigative arm of the President’s Financial Fraud Enforcement Task Force (FFETF), an interagency national task force. For more information on FFETF, visit www.stopfraud.gov.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:14-cr-137.Fourth Circuit Court of Appeals Affirms Michael Juan Smith's Federal ConvictionRead the Press Release
Contact Person: Stacey Haynes (803) 929-3000
Columbia, South Carolina ---- The United States Attorney’s Office stated today that the Fourth Circuit Court of Appeals issued an unpublished opinion today affirming the federal conviction of Michael Juan Smith, age 22, of Columbia, South Carolina. The written opinion may be found at http://www.ca4.uscourts.gov/opinions/daily-opinions. Smith was sentenced to the maximum sentence of 120 months (10 years) imprisonment for the federal charge of being a felon in possession of a firearm and ammunition, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2). Smith pled guilty on February 19, 2014. United States District Judge Joseph F. Anderson, Jr. imposed the maximum sentence on June 20, 2014, which will be followed by three (3) years of federal supervised release.Former Philadelphia Police Officer Pleads Guilty to Extortion SchemeRead the Press Release
PHILADELPHIA - Christopher Saravello, 37, of Philadelphia, PA, pleaded guilty today, to a scheme to extort drugs and money from drug dealers and drug buyers while working as a Philadelphia Police Officer. He was charged with one count of conspiracy to commit Hobbs Act extortion and five counts of Hobbs Act extortion.
Between November 2011 and June 2012, while employed as a Philadelphia Police Officer assigned to the 6th District, Saravello conspired with others to rob drug dealers and drug buyers of cash and Oxycontin and other controlled substances. Saravello’s co-conspirators would alert him to a drug transaction. Saravello would then interrupt the planned drug transaction, identifying himself as a law enforcement officer by approaching the transaction in a marked police vehicle, wearing a police uniform, displaying an official badge and identification, or verbally identifying himself as a police officer. Saravello seized the money or narcotics brought to the transaction by the buyer or seller victim and shared the seized proceeds with his co-conspirators. In doing so, Saravello used his position as a police officer to extort drugs and money from others. The scheme resulted in the illegal taking of more than $9,800 in drug money and quantities of Oxycontin and other narcotics.
U.S. district Court Judge Eduardo Robreno scheduled a sentencing hearing for June 2, 2015. Saravello faces a maximum possible sentence of 120 years in prison, $1.5 million fine, three years of supervised release and a $600 special assessment.
The case was investigated by the Federal Bureau of Investigation and the Philadelphia Police Department. It is being prosecuted by Assistant United States Attorney Arlene Fisk.
Former Pharmacist Sentenced for RoleIn Drug Distribution Scheme and Money LaunderingRead the Press Release
A Dearborn pharmacist was sentenced yesterday to six years in prison for conspiracy to illegally distribute prescription pills and money laundering, U.S. Attorney Barbara L. McQuade announced today.
McQuade was joined in the announcement by Special Agent in Charge Jarod J. Koopman, Internal Revenue Service Criminal Investigation and Special Agent in Charge Marlon Miller, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
In March 2013, Waleed Yaghmour was charged with 43 others in a health care fraud and drug distribution scheme. The indictment alleged that Sardar Ashrafkhan, Deepak Kumar, John Check and David Vezzossi, who owned home health agencies, provided kickbacks, bribes and other illegal benefits to physicians in exchange for prescriptions for patients with Medicare, Medicaid and private insurance. The prescriptions were for controlled substances including oxycodone (Oxycontin), hydrocodone (Vicodin) and alprazolam (Xanax). Patient recruiters or “marketers” would pay kickbacks and bribes to patients in exchange for the patients’ permitting the pharmacies and physicians to bill their insurers for medications and services that were medically unnecessary and/or never provided. During the conspiracy, prescriptions were presented to the Sav-Mart Pharmacy in Detroit, which was owned and operated by Yaghmour, as well as several other pharmacies.
In his guilty plea, Yaghmour, 48, admitted that he knew that the controlled substances he dispensed for these fraudulent prescriptions had no legitimate medical purposes. Yaghmour has admitted to dispensing at least 1,500 oxycodone 100,000 hydrocodone and 100,000 alprazolam doses as part of the scheme.
Yaghmour received nearly $2 million in cash payments for illegally dispensing the controlled substances. Yaghmour has agreed to forfeit $973,177.87 that was seized from an account that he maintained at HSBC Bank Middle East Limited, Ramallah, Palestine.
“More people die in America every year from prescription drug overdoses than from overdoses of all other drugs combined,” McQuade said. “In addition, prescription drug addiction has led to a resurgence in heroin use. Pharmacists who divert prescription drugs to the street market are contributing to this epidemic, and we are focusing our enforcement efforts on stopping them.”
"We entrust physicians and healthcare providers with monitoring, caring, and treating members of our community," said Miller. "When that trust is violated, the integrity of the system is compromised and lives are put at risk. HSI will continue to partner with the law enforcement community to ensure that unscrupulous physicians and healthcare providers are brought to justice"
“The public rightfully expects that doctors and pharmacists will uphold the oath that they take to “do no harm.” When they abuse their professional license for financial gain they put the public at risk, in this case by dispensing highly addictive controlled substances. IRS Criminal Investigation's unique role in these investigations is to follow the money trail in order to disrupt these criminal drug organizations that diminish the quality of life in our communities” said Jarod J. Koopman, Special Agent in Charge, IRS Criminal Investigation.
Many of the defendants charged in the indictment have been convicted by pleas and have been sentenced already. Others are scheduled to be sentenced in the near future.
The case was investigated by special agents from the Internal Revenue Service Criminal Investigation, the U.S. Immigration and Custom’s Enforcement’s Department of Homeland Security Investigations, the Drug Enforcement Administration, the Federal Bureau of Investigation, the Bureau of Alcohol Firearms and Explosives, Detroit Police Dept., Portsmouth, Ohio, Police Dept., Scioto County Sheriff’s Office, the Department of Health and Human Services Office of Inspector General, and the Detroit Violent Crimes Task Force and Michigan State Police. The case is being prosecuted by Assistant U.S. Attorneys Terrence R. Haugabook, Michael Martin, and Wayne F. Pratt. They are assisted by Assistant U.S. Attorneys Jonathan Grey and Gjon Juncaj of the Forfeiture Section.Former Official Charged with Stealing Funds from Buffalo Schools; Son Indicted by Grand JuryRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney William J. Hochul, Jr. announced today that Debbie Buckley, 54, of Niagara Falls, NY, was charged by criminal complaint with theft of government funds. The charge carries a maximum penalty of 10 years and a $250,000 fine.
In addition, Buckley’s son, Hassan El Saddique, who was arrested and charged by criminal complaint on January 13, 2015, has been indicted by a federal grand jury, also on a charge of theft of government funds.
“Those in positions of trust must be held to a higher standard,” said U.S. Attorney Hochul. “This defendant was responsible for disbursing federal funding to children in our community who need it the most. Instead she stands accused of lining her pockets and those of her son with money targeted to assist school kids.”
“Today’s charges allege that Mrs. Buckley knowingly and willfully abused her position of trust to steal funds from the very ones she promised to serve – the children of Buffalo Public Schools. That is completely unacceptable,” said Geoffrey Wood, Assistant Special Agent in Charge of the U.S. Department of Education Office of Inspector General’s Mid-Atlantic Regional Office. “OIG Special Agents will continue to aggressively pursue those who seek to enrich themselves at the expense of our nation’s students. America’s students, their families, and taxpayers deserve nothing less.”
Assistant U.S. Attorneys Kathleen A. Lynch and Stephanie Lamarque, who is handling the case, stated that Debbie Buckley served as Supervisor of Title I, Office of Federal and State Programs for the Buffalo School District. Title I is a federally funded program that provides assistance to school districts with high numbers of children from low income families. In March 2010, Buckley was promoted to Assistant Superintendent of Federal and State Programs.
In June 2009, Buckley met with a representative of the Universal School which moved into the City of Buffalo. During the meeting, Buckley asked for and was provided with blank Universal School letterhead signed by the representative. The defendant indicated the letterhead would be used to include the Universal School with other non-public schools to increase resources available.
According to the complaint, a record obtained during the investigation included an undated letter on Universal School letterhead purportedly written by the school representative. The letter, addressed to Buckley, requested Hassan El Saddique to administer the Title I computer assisted program at the Universal School during the 2009-10 school year. The complaint further states that the school representative did not write or sign the letter, the Universal School did not have a Title I computer assisted program, nor did El Saddique ever work at the school.
While El Saddique did not work at the Universal School, he did work at Bishop Timon High School in Buffalo. El Saddique was told the Title I funding at Timon was obligated so he agreed to volunteer at the school. Subsequently, El Saddique was contracted to assist with a Title I after school program at Timon. According to the complaint, El Saddique submitted invoices to the Buffalo School District for the period of September 8, 2009 through June 30, 2010 when in fact, the regular Title 1 program at Bishop Timon ran November 2, 2009 through the end of May, 2010.
In addition to submitting invoices for days not worked at Timon, El Saddique also submitted invoices for services that were never performed at the Universal School.
According to the complaint, Buckley changed the approval process by which a contractor was paid for Title I services provided in non-public schools. The defendant eliminated the need for a signature from an official at the non-public school. Some of the invoices submitted by El Saddique included the name of an employee of the Universal School where he never actually worked while other invoices contained an illegible signature. In addition, Debbie Buckley’s name appears on three of these invoices that did not contain a signature from a non-public school official. The dates of these invoices coincide with the period during which Buckley was promoted to Assistant Superintendent.
El Saddique received 18 paychecks from the Buffalo School District totaling $15,120. Of those paychecks, 13 were deposited into two union accounts controlled by Buckley for a total of $10,320 and another check was cashed using one of those accounts.
Buckley made an initial appearance this morning before U.S. Magistrate Judge H. Kenneth Schroeder and was released on bond. Hassan El Saddique was arraigned this morning before U.S. Magistrate Judge Hugh B. Scott. He pleaded not guilty and continues to be released on bond. Oral argument on motions is scheduled for June 25, 2015 at 10:00 a.m.
The criminal complaint and indictment are the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation and the U.S. Department of Education, Office of Inspector General, under the direction of Assistant Special Agent in Charge Geoff Wood.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Former Medical Technician Sentenced to over One Year in Prison for Accepting Bribes in Exchange for Falsifying Urinalysis Drug TestsRead the Press Release
TULSA, Okla. —A former medical technician was sentenced to 18 months in federal prison for accepting bribes in exchange for submitting fraudulent urinalysis drug tests and to submitting a falsified certification, announced United States Attorney Danny C. Williams Sr. for the Northern District of Oklahoma.
William Ray Allen, 33, of Tulsa, was responsible for collecting urine specimens for random urinalysis drug testing while employed by 12 & 12, Incorporated, a drug treatment facility. Allen admitted to warning those selected for court ordered random drug testing that they were going to be tested. He also substituted his own urine or the urine of others for drug testing and submitted falsified certifications with the substituted urine for analysis. Allen knowingly shipped the fraudulent substituted urine samples via Federal Express to the United States Probation Drug Laboratory. The drug treatment facility is contracted by the United States Probation Office to provide court ordered drug testing and treatment services to persons under supervision.Allen was indicted by a grand jury on September 4, 2014, and pleaded guilty on October 9, 2014, to four counts of honest services mail fraud and three counts of accepting a bribe. Due to a conflict of interest, Allen was sentenced by United States District Court Judge David L. Russell of the Western District of Oklahoma.
The case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Joel-lyn A. McCormick on behalf of the United States.