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Wednesday 4 February 2015
Massachusetts Tax Return Preparer and Business Owner Pleads Guilty to Tax FraudRead the Press Release
A tax return preparer in Worcester and Hyde Park, Massachusetts, pleaded guilty today in the U.S. District Court for the District of Massachusetts to two counts of filing false claims with the Internal Revenue Service (IRS), the Department of Justice announced today.
Yaw Aboagye-Marfo, 42, of Worcester and Hyde Park, Massachusetts, was charged in a superseding indictment in August 2014 with filing false tax returns that claimed refunds to which clients were not entitled. According to the indictment, Aboagye-Marfo also filed false tax returns on his own behalf that claimed refunds from the IRS to which he was not entitled.
According to the indictment, Aboagye-Marfo owned and operated People’s Choice Tax Service and National Taxpert, located in Worcester and Hyde Park, respectively. Aboagye-Marfo used other individuals to recruit taxpayers for their personal identifying and related information so that he could use the information to file false tax returns on their behalf. In some cases, Aboagye-Marfo obtained only the personal identifying information of individual taxpayers and filed tax returns that claimed false Schedule C businesses, regardless of the individual’s income or employment status, qualifying that individual for large tax refunds. In some instances, Aboagye-Marfo also reported false dependents on the tax returns. Aboagye-Marfo charged a fee for his services and he also claimed a portion of the false tax refund proceeds for himself.
Sentencing is scheduled for May 15 before U.S. District Court Judge George A. O’Toole. Aboabye-Marfo faces a statutory maximum sentence of five years in prison and a $250,000 fine for each count.
This case was investigated by the special agents of IRS - Criminal Investigation. Trial Attorney Jeffrey B. Bender and Assistant Chief Karen Kelly of the Justice Department’s Tax Division are prosecuting the case.
Man Sentenced in Federal Court on Gun ChargesRead the Press Release
MOBILE, Ala. – Daniel Williams, 36, of Marion, Alabama, was sentenced in federal court on gun charges. Federal law prohibits possession of a firearm by a person who had been committed to a mental institution, and court documents showed that Williams had been committed by an Alabama state judicial officer to a mental institution on two separate occasions. Court documents also showed that he was found in possession of an AK 47 rifle and a 9 millimeter handgun in March of 2013 when Marion police officers searched his vehicle in connection with a shooting that occurred in Marion. Williams admitted to state investigators and to a special agent of the Bureau of Alcohol, Tobacco, Firearms and Explosives that he had his girlfriend buy the AK 47 for him because he was not able to buy it himself. Williams also admitted that he knew he could not possess the weapons legally.
United States District Court Judge Callie V. S. Granade imposed a sentence of 24 months imprisonment in the case, and ordered that Williams undergo mental health counseling and treatment while he is incarcerated. She also ordered that he undergo additional mental health treatment during a three-year term of supervised release, which will commence when Williams is released from prison. She further ordered that he be monitored for drug abuse during his supervision. No fine was imposed in Williams’ case, but he was ordered to pay $100 in special assessments.
The case was investigated by the 4th Judicial Circuit Task Force, the Alabama Attorney General’s Office, the Marion Police Department, the Alabama Bureau of Investigations, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted in the United States Attorney's Office by Assistant United States Attorney Gloria Bedwell.
Malvern Company Pays $265,000 to Resolve Overbilling AllegationsRead the Press Release
PHILADELPHIA - Silicon Power Corporation, a manufacturer of semiconductor devices and high-power utility systems in Malvern, Pennsylvania, has agreed to pay $265,000 to resolve civil allegations that the facility overbilled and mischarged the United States Army under two contracts, announced United States Attorney Zane David Memeger.
Specifically, the United States alleged that between 2004 and 2012, Silicon Power overbilled and mischarged the Army under the contracts by billing: the same amount on multiple vouchers; sums reflected in purchase orders when the invoices reflected lower actual costs; sums that subcontractors had credited back to Silicon Power; sums that reflected accrued expenses when Silicon Power incurred lower actual invoiced expenses; sums that failed to reflect volume discounts that Silicon Power received; sums for travel expenses that were higher than Silicon Power’s internal cost reports for the travel; sums that Silicon Power carried over from previous vouchers without adjusting to reflect current costs; and sums for project numbers for which the contracts did not allow payment. As part of the settlement, Silicon Power did not admit to liability or wrongdoing.
“This agreement demonstrates our commitment to ensuring that defense contractors meet their obligations and comply with Department of Defense rules and regulations,” said Memeger. “Agreements like these preserve the integrity of the procurement system and save money for the United States and the taxpayers.”
The allegations arose from an investigation led by the Defense Criminal Investigative Service and the United States Army Criminal Investigation Command – Major Procurement Fraud Unit. The case was handled by Assistant United States Attorneys Michael S. Macko and Mark J. Sherer.
Lower Brule Man Sentenced for Assault Resulting in Serious Bodily InjuryRead the Press Release
United States Attorney Brendan V. Johnson announced that a Lower Brule, South Dakota, man convicted of Assault Resulting in Serious Bodily Injury was sentenced on February 2, 2015, by U.S. District Judge Roberto A. Lange.
Joseph Thompson, age 23, was sentenced to 18 months in custody, 2 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Thompson was indicted by a federal grand jury on July 15, 2014. He pled guilty on November 18, 2014.
The conviction stems from an incident in the early morning hours of May 3, 2014, when Thompson, the victim, and others were at a party in Lower Brule. Thompson and the victim began to argue. The defendant assaulted the victim, which resulted in a deep wound to the victim’s forehead, penetrating the skull bone. The wound required 27 sutures to close.
This case was investigated by Bureau of Indian Affairs, Lower Brule Agency. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Thompson was immediately turned over to the custody of the U.S. Marshals Service.
Lincoln Man Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Deborah R. Gilg announced that on February 4, 2015, Jason Robert Jackson, 25, of Lincoln, was sentenced to 21 years and 10 months (262 months) in prison for conspiracy to distribute and possess with intent to distribute 500 grams or more of a mixture or substance containing methamphetamine and a mixture or substance containing marijuana between January of 2012 and October of 2013. In October of 2013, Jackson was found in possession of a small amount of methamphetamine, and a search of his Lincoln residence resulted in the seizure of five pounds of marijuana. Information provided to law enforcement indicated that Jackson was responsible for the distribution of at least 500 grams (approximately 18 ounces) of methamphetamine and at least 2.5 kilograms (5 ½ pounds) of marijuana during the term of the conspiracy. Following the prison term, Jackson will serve five years on supervised release.
This case was investigated by the Lincoln/Lancaster County Drug Task Force.
Lehigh County Couple Charged in Scheme to Defraud the GovernmentRead the Press Release
Yujie Ding, 52, and Yuliya Zotova, 40, of Center Valley, Pennsylvania, were charged by indictment, unsealed today, with ten counts of wire fraud related to a government program meant to increase research and development opportunities for small businesses, announced United States Attorney Zane David Memeger.
The Small Business Innovation Research (SBIR) program was created by Congress in 1982 and has requirements aimed to combat fraud, waste, and abuse. According to the indictment, in August 2009, Ding and Zotova submitted a proposal to NASA to fund a research project aimed at creating a device to detect trace levels of chemicals. The defendants’ proposal claimed they would conduct the research at their business, ArkLight, and would subcontract some of the work to an area university where Ding was employed. The indictment alleges that the defendants knew they had no such facility in which to conduct the research and were, instead, using ArkLight as a front to funnel federal grant money to themselves for research performed by students and others working in Ding’s university lab. It is further alleged that the defendants sent to NASA, via electronic transmission, invoices totaling $560,000 for work that was not performed to the specifications of the proposals and received a portion of that amount.
If convicted of all charges, each defendant faces a maximum possible statutory sentence of 200 years in prison, three years of supervised release, a fine of up to $2.5 million, a $1,000 special assessment, and forfeiture.
The case was investigated by the National Aeronautics and Space Administration's Office of Inspector General, the Defense Criminal Investigative Service, and the United States Air Force Office of Special Investigations. It is being prosecuted by Assistant United States Attorneys Elizabeth Abrams and Gregory David.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Las Vegas Man Indicted for Sex TraffickingRead the Press Release
United States Attorney Brendan V. Johnson announced that a Las Vegas, Nevada, man has been indicted by a federal grand jury on two counts of Sex Trafficking by Force, Fraud, or Coercion.
Robert Ryan Powell, age 34, was indicted on January 21, 2015. He appeared before U.S. Magistrate Judge Veronica Duffy on January 23, 2015, and pled not guilty to the Indictment.
The penalty upon conviction is a mandatory minimum of 15 years’ imprisonment up to life imprisonment and/or a $250,000 fine, a mandatory minimum of 5 years up to lifetime supervised release, and a $100 assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment charges that between January 1, 2014, and January 13, 2015, in Rapid City and elsewhere, Powell caused two females to engage in commercial sex acts, for his own financial benefit.
The charges are merely accusations and Powell is presumed innocent until and unless proven guilty.
The investigation was conducted by the Internet Crimes Against Children Task Force. Assistant U.S. Attorney Sarah B. Collins is prosecuting the case.
Powell was detained pending trial. A trial date has not been set.Las Cruces Man Pleads Guilty to Federal Methamphetamine Trafficking ChargesRead the Press Release
ALBUQUERQUE – David Enriquez, 27, of Las Cruces, N.M., pled guilty this morning in Las Cruces federal court to methamphetamine trafficking charges.
Enriquez is one of three residents of Las Cruces who were charged in a four-count indictment that was filed in June 2014. Enriquez and co-defendant Josh Almaguer, 32, were arrested in Aug. 2014; their co-defendant Renelle Serna, 24, previously was arrested in July 2014. The indictment charged the three with trafficking methamphetamine in Doña Ana County, N.M., in May 2014.
During today’s proceedings, Enriquez pled guilty to Counts 1 and 2 of the indictment charging him with distributing methamphetamine on two occasions in May 2014. In entering his guilty plea, Enriquez admitted distributing a gram of methamphetamine to an undercover agent on May 9, 2014. Enriquez also admitted that he and his co-defendants distributed 14 grams of methamphetamine to an undercover agent on May 20, 2014.
Serna pled guilty on Jan. 6, 2014, to a felony information charging her with two counts of distributing methamphetamine and two counts of possession of more than 50 grams of methamphetamine with intent to distribute. In entering her guilty plea, Serna admitted that she and her co-defendants distributed methamphetamine to an undercover agent on two occasions on May 20, 0214. The first distribution involved 14 grams of methamphetamine and the second involved 28 grams. Serna also admitted possessing 146 grams of methamphetamine with intent to distribute on May 23, 2014. She also admitted that on July 25, 2014, she possessed 134.6 grams of methamphetamine with the intention of distributing the drugs.
At sentencing, Enriquez faces a statutory maximum penalty of 20 years, and Serna faces a minimum of five years and a maximum of 40 years in prison. Both remain in federal custody pending their sentencing hearings which have yet to be scheduled.
Almaguer has entered a plea of not guilty to the indictment. The charges in the indictment are merely accusations and Almaguer is presumed innocent unless proven guilty.
This case was investigated by the Las Cruces office of the FBI and the HIDTA Regional Interagency Drug Task Force (RIDTF)/Metro Narcotics Task Force. The case is being prosecuted by Assistant U.S. Attorney Maria Y. Armijo of the U.S. Attorney’s Las Cruces Branch Office.
The HIDTA Regional Interagency Drug Task Force/Metro Narcotics Task Force is comprised of officers from the Las Cruces Police Department and the Doña Ana County Sheriff’s Office. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Lakewood Man Indicted for Possessing and Distributing Child PornographyRead the Press Release
Cory A. Buckholz, 24, of Lakewood, was charged with distributing and possessing visual depictions of minors engaged in sexually explicit conduct, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment charges that from on or about May 13, 2014, through on or about May 19, 2014, Buckholz knowingly received and distributed, by computer, numerous computer files, which contained visual depictions of real minors engaged in sexually explicit conduct. It is further alleged that on August 1, 2014, Barnhill possessed a black, homemade, tower computer, a Western Digital external hard drive, and a Seagate external hard drive that contained child pornography.
If convicted, the sentence in this case will be determined by the court after consideration of the Federal Sentencing Guidelines which depend upon a number of factors unique to each case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the unique characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant United States Attorney Carol M. Skutnik. The case was investigated by the United States Secret Service and the Ohio Internet Crimes Against Children Task Force.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Kissimmee Man Sentenced to More Than 12 Years for Receiving Child Pornography OffenseRead the Press Release
Orlando, Florida – United States District Judge Paul G. Byron has sentenced Cruz Vicente, Jr. (57, Kissimmee) to 12 years and 7 months in federal prison for receiving child pornography. The Court also ordered him to serve a 20-year term of supervision following his release from prison and to forfeit the electronic devices that he had used to commit the crime. Vicente pleaded guilty on October 8, 2014.
According to court documents, an undercover FBI investigation determined that Vicente was making child pornography available for download by others using an Internet peer-to-peer file sharing program. On May 21, 2014, agents executed a federal search warrant at Vicente’s residence and recovered his laptop computer. Forensic analyses subsequently revealed that the computer contained more than 3,000 images and 76 videos depicting child pornography, including images of young children being sexually abused.
This case was investigated by the FBI and prosecuted by Assistant United States Attorney Andrew C. Searle.It is another case 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.justice.gov/psc.
Kanawha County woman pleads guilty to oxycodone crimeRead the Press Release
CHARLESTON, W.Va. – United States Attorney Booth Goodwin announced today that Whitney Reanne Kent, 26, of London, Kanawha County, West Virginia, pleaded guilty to possession of oxycodone with the intent to distribute.
On Dec. 5, 2012, investigators with the United States Postal Inspection Service and Metropolitan Drug Enforcement Network Team were conducting a drug interdiction operation at the United States Post Office in Charleston when they executed a search warrant on a package addressed to Kent. The package contained 87 30-mg oxycodone tablets.
The investigators confronted Kent on Dec. 7, when she came to pick up the package. She admitted it contained oxycodone, and she intended to distribute the pills to another individual.
Kent faces up to 20 years in federal prison, and a fine of $1 million. She is scheduled to be sentenced on May 11, 2015.
United States District Judge Thomas E. Johnson presided over the plea hearing.
The case is being investigated by the U.S. Postal Inspection Service and MDENT. Assistant United States Attorney Joshua Hanks is in charge of the prosecution.
This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets and curtailing the spread of opiate painkillers and heroin in communications across the Southern District.
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Jury Finds Rosebud Man Guilty of Possession of an Unregistered Firearm and Prohibited Person in Possession of A FirearmRead the Press Release
United States Attorney Brendan V. Johnson announced that Clyde Aquallo, age 40, of Rosebud, South Dakota, was convicted of Possession of an Unregistered Firearm and Prohibited Person in Possession of a Firearm, following a four-day jury trial in Pierre, South Dakota. The verdict was returned on January 30, 2015.
The jury found Aquallo not guilty of Assault with a Dangerous Weapon, Using and Carrying a Firearm During and In Relation to a Crime of Violence, and Distribution of a Controlled Substance.
The charges of conviction carry a maximum penalty of 10 years of imprisonment and/or a $250,000 fine, and forfeiture of firearms and ammunition.
Aquallo’s convictions arose from incidents that occurred on February 27, 2014, when Aquallo had been using methamphetamine and possessed several firearms at the home where he was residing in Todd County. Among the firearms he possessed was a sawed-off shotgun with a barrel of less than 18 inches in length. Aquallo said he kept the shotgun for a couple of weeks because he was going to fix it for a relative, but the firearm was not lawfully registered to him in in the National Firearms Registration and Transfer Record. Aquallo also never fixed the sawed-off shotgun.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case was prosecuted by Assistant U. S. Attorneys Tim Maher and Carrie Sanderson.
A presentence investigation was ordered, and a sentencing date was set for April 20, 2015, at 3:00 pm.
Aquallo was remanded to the custody of the U. S. Marshals Service to await sentencing.
Jury Convicts Waco Man of Federal Drug ChargeRead the Press Release
A Waco, TX, man faces up to 20 years in federal prison after a jury convicted him today of his role in a family-based marijuana distribution conspiracy announced Acting United States Attorney Richard L. Durbin, Jr.
A federal jury in Waco convicted 59-year-old Phillip Larry Koss of conspiracy to possess with intent to distribute in excess of 50 kilograms of marijuana. The jury acquitted him of one count of possession with intent to distribute marijuana and one count of maintaining a drug involved premise. According to evidence presented during trial, the defendant participated in a drug trafficking scheme by using his bank account to finance portions of the operation including paying for cell phones, marijuana cultivating equipment and other miscellaneous bills.
On November 29, 2013, authorities executed a search warrant at the defendant’s residence and discovered approximately 12 pounds of tetrahydrocannabinol, commonly known as THC, several firearms and $27,000 in U.S. Currency. Authorities have also recovered approximately 200 pounds of marijuana resulting from related search warrants executed in California as well as traffic stops during this investigation. Testimony also revealed that Koss’ son, Conner, among others, cultivated high grade marijuana in the State of California and arranged for it to be transported to and distributed in the Austin area.
In July 2014, Phillip Larry Koss entered a guilty plea to possession with intent to distribute marijuana, but withdrew his guilty plea in November 2014 prior to sentencing. Sentencing for Phillip Larry Koss based on the jury’s verdict is scheduled for April 1, 2015, in Waco before United States District Judge Walter S. Smith, Jr.
Koss’ four co-defendants, including his wife and two sons, have been convicted of their roles in the marijuana trafficking conspiracy and sentenced as a result of this investigation. Last year, Conner Phillip Koss received a sentence of 121 months incarceration; Le’Ann Koss, 70 months incarceration; and, Brian Thomas Smith, two years incarceration. On January 7, 2015, Chad Koss was sentenced to three years probation including six months home confinement and ordered to pay a $1,000 fine.
This investigation was conducted by the McGregor Police Department, Texas Department of Public Safety and the Yuba County (CA) Narcotics Enforcement Team. Assistant United States Attorney Mary F. Kucera prosecuted this case on behalf of the Government.
Judge Sends Former Philadelphia Police Officers to Prison for Robbery and Drug SchemeRead the Press Release
PHILADELPHIA - Former Philadelphia Police Officers Jonathan Garcia, 26, and Sydemy Joanis, 28, both of Philadelphia, were sentenced today to 210 months and 63 months, respectively, for a scheme to rob drug dealers of their cash proceeds. Garcia pleaded guilty July 30, 2013 to distribution of heroin, conspiracy to commit robbery, robbery, attempted robbery, and carrying a firearm during and in relation to a crime of violence. Joanis pleaded guilty February 11, 2014 to conspiracy to commit robbery, robbery, attempted robbery, and carrying a firearm during and in relation to a crime of violence.
The defendants were assigned to the 17th Police District when, in December 2009, they entered into a scheme by which they agreed to rob suspected drug dealers. Sometimes the defendants would stop and frisk individuals who were allegedly loitering, and if the defendants recovered any drugs, they would arrest the person and steal some or all of his money. Other times the defendants utilized Person #1, who, at the defendants’ direction, would meet with a suspected drug dealer inside the dealer’s car, buy a small quantity of drugs (usually crack cocaine), and then leave some of the drugs in plain view on the floorboard of the car. After Person #1 exited the dealer’s car, the defendants would pull up in their PPD patrol car, stop the dealer, and after seeing the drugs in plain view, arrest the dealer and ultimately steal some or all of the dealer’s money, which the defendants would split amongst themselves. When committing these robberies, the defendants wore their PPD uniform and openly carried firearms. To conceal their crimes, the defendants falsified police reports by failing to disclose their use of Person #1 and fabricating the basis for the stop, and by failing to disclose some or all of the money that they had stolen.
In addition to the prison terms, U.S. District Court Judge Legrome Davis ordered Garcia to pay a fine of $5,000, a special assessment of $900, and ordered five years of supervised release; Joanis was ordered to pay a fine of $2,000, a special assessment of $400, and was ordered to complete three years of supervised release.
The case was investigated by the FBI and the Philadelphia Police Department and was prosecuted by Assistant United States Attorney Kevin R. Brenner.
Investment Managers Arrested and Charged in $11 Million Investment and $8 Million Bank Fraud SchemesRead the Press Release
John R. Lakian and Diane W. Lamm have been charged in a five-count indictment alleging conspiracy to commit securities, wire and bank fraud, and two counts of substantive securities fraud in connection with schemes to defraud investors and banks of millions of dollars. The defendants will be arraigned later today at the federal courthouse in Brooklyn, New York.
The charges were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York and Diego G. Rodriguez, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI).
According to the indictment, between February 2009 and July 2013, the defendants were involved in two schemes to steal investors’ money. In the first, the defendants obtained more than $11 million by promising investors that their money would be used to purchase, consolidate and sell registered investment advisory businesses. Instead of investing
the money as promised, the defendants diverted a significant amount of it into their own pockets, to restaurant businesses they controlled, and to pay Lakian’s home mortgage. In the second scheme, the defendants perpetrated fraud through their management of the liquidation of a North Carolina-based investment fund with more than 100 investors. Instead of returning the fund’s proceeds to investors, Lakian and Lamm diverted investors’ money to themselves and to restaurant businesses they controlled. In addition, the indictment alleges a third scheme in which, between 2009 and 2012, Lakian and Lamm submitted fake tax returns, bank statements, and other false documents to banks in Brooklyn, Long Island, and elsewhere in applications to obtain more than $8 million in loans. These forged documents overstated Lakian’s income and assets by millions of dollars.
“As alleged, Lakian and Lamm preyed upon more than 100 investors, in multiple schemes, stealing their hard-earned money to use for their own purposes. They similarly disregarded the interests of lending institutions by submitting forged documents to banks in an attempt to fraudulently secure more than $8 million in loans” stated United States Attorney Lynch. “This Office will investigate and prosecute to the fullest extent those who victimize investors and commit financial fraud.”
“As charged, instead of carefully investing their clients’ money, one defendant paid off his mortgage, and in another instance the defendants diverted cash to a restaurant venture. They lied, cheated, and stole. This type of behavior is unacceptable. It’s also illegal. And it should be a stark reminder to anyone who is driven by greed. These insidious investment schemes will be identified and disrupted,” stated FBI Assistant Director-in-Charge Rodriguez.
The charges contained in the indictment are merely allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted, the defendants face a maximum sentence of 30 years’ imprisonment on the bank fraud count, 20 years on each of the securities fraud counts, and 5 years on the securities and wire fraud conspiracy counts. Additionally, if convicted, Lakian and Lamm may be fined up to $5 million for the securities fraud counts and $1 million for the bank fraud count.
The government’s case is being prosecuted by Assistant United States Attorney Whitman G.S. Knapp and Brian D. Morris.
This prosecution was the result of efforts by President Obama's Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ Offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory, and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state, and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions, and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit http://www.StopFraud.gov.
The Defendants:
JOHN R. LAKIAN
Age: 72
Highlands, North Carolina
DIANE W. LAMM
Age: 54
Highlands, North Carolina
E.D.N.Y. Docket No. 15-CR-0043 (FB)
Identity Theft and Bank Fraud Convictions Result in a Federal Prison SentenceRead the Press Release
Counterfeit Checks and Victim Identification Used in Scheme to
Defraud Banks and BusinessesMEDFORD, Ore. - Ryan Juan Pitcher, 38, and Shawn Francis Farrell, 31, both from Medford, Oregon, and Logan Chad Clark, 25, Rogue River, Oregon were sentenced to federal prison Tuesday by U.S. District Judge Owen M. Panner for their convictions for conspiracy to commit bank fraud, aggravated identity theft and possessing and passing counterfeit checks. Pitcher was sentenced to 94 months; Farrell was sentenced to 36 months; and, Clark was sentenced to 24 months in addition to the time he had already served in federal custody. As part of each sentence, each defendant received a mandatory consecutive term of two years in prison required by federal statute where a victim’s identification was possessed or used in committing bank fraud.
According to documents filed with the court, Assistant U. S. Attorney Byron Chatfield said Pitcher was instrumental in committing all of the offenses that occurred in the latter part of 2013. He stole mail from postal collection boxes and mailboxes belonging to businesses and individuals and then used the personal identification to create various counterfeit identification and numerous counterfeit checks. In accomplishing the scheme, he used computers, printers, check-making software and paper stock to make the checks. He provided the items to other co-conspirators instructing them on how and where to negotiate the counterfeit checks. As part of their compensation, he provided them with drugs and/or money. Pitcher also has four prior state convictions for identity theft that included the use of stolen mail in passing fraudulent checks, as well as one other federal conviction in Oregon for possessing stolen mail.
Also according to court documents, Farrell committed much of the criminal activity on his own without participation of the other co-conspirators. He made counterfeit identification from a victim’s driver’s license he had stolen from the mail and used it multiple times to negotiate counterfeit payroll checks including opening a bank account in the victim’s name and, after depositing counterfeit checks, withdrawing money from bank branches in Ashland and Grants Pass, Oregon. Police arrested Farrell when he attempted to cash a counterfeit payroll check at another bank in Grants Pass. When police arrived, he assumed the identity of the victim, presenting the victim’s US Passport he had used in attempting to pass the counterfeit check. Several months earlier, Farrell was also convicted of identity theft in Jackson County, Oregon and was currently on probation when he committed the federal offenses.
Also according to court documents, defendant Clark traveled with Pitcher to various locations in Southern Oregon cashing counterfeit checks at businesses and banks. Clark was apprehended following a vehicle crash, but Pitcher eluded police on foot. Print logs from a laptop computer recovered from the vehicle revealed that out of 98 counterfeit checks, 37 checks were made payable to Clark. There were also other numerous counterfeit checks recovered from the vehicle made payable to Clark.
The other federally charged defendants, Shayna Campos, 23, and Nathan David Meyer, 29, are scheduled to be sentenced in the next few months. Cinnamon Danielle Duck, 23, is pending trial.
This case was investigated by the Medford Police Department, the Douglas County Sheriff’s office, Grants Pass Department of Public Safety and the U.S. Postal Inspection Service and prosecuted by Assistant U. S. Attorney Byron Chatfield.
Houston Man Sentenced for Beaumont Bank RobberyRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – A 23-year-old Houston man has been sentenced to federal prison for robbing a bank in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Christopher M. Carmon Thomas pleaded guilty on July 29, 2014 to bank robbery and was sentenced to 37 months in federal prison today by U.S. District Judge Thad Heartfield. Thomas was also ordered to pay restitution in the amount of $2,309.00.
According to information presented in court, on June 3, 2014, Thomas entered the Wells Fargo Bank on Gladys Avenue in Beaumont, Texas and presented the bank teller with a demand note. During the robbery, Thomas displayed a gun tucked into his pants by lifting his shirt. Thomas fled the bank with $2,309.00. Surveillance camera photographs were disseminated by the media and Thomas was identified by citizen tipsters and the victim bank teller. Thomas was taken into custody in Houston on June 25, 2014.
This case is being investigated by the Federal Bureau of Investigation and the Beaumont Police Department and prosecuted by Assistant U.S. Attorney John Craft.
Former Beaumont ISD Employees Indicted for Theft, CheatingRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – A former Beaumont Independent School District (BISD) Assistant Superintendent was one of two employees indicted on federal charges in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Patricia Adams Lambert, 60, of Beaumont and Victoria Gauthier Steward, 31, of Lake Charles, LA, were named in the five-count indictment returned by a federal grand jury today. Lambert and Steward are accused of conspiring to cheat on standardized test results while Lambert is also alleged to have embezzled over $750,000 from the school district.
According to the indictment, Lambert is alleged to have devised several schemes to defraud the school district and even the students directly while employed with BISD. In October 2006, while Lambert was principal of Central Medical Magnet High School (CMMHS), she took control of the CMMHS booster club, which raises money to support various athletic teams at the school. The booster club raises funds largely through concession sales at football games and had been controlled by parents in the past. Lambert is alleged to have diverted funds from the booster club account, which was not subject to BISD oversight or auditing, by writing checks payable to her children and then depositing them directly into her own personal account. In addition to stealing directly from the booster club account, Lambert is also alleged to have diverted funds which traditionally had been deposited into the Student Activity Account, which is subject to oversight and auditing, to the booster club account. An example of diverted funds is student transcript fees, which are usually $5 or less. Lambert also diverted money from the Medical Magnet program to the booster club account. Students enrolled in the program, which allows them to earn college credit while attending high school, were required to pay tuition fees which amounted to $275 per student per year for the 2010-2011 school year. However, Lambert is alleged to have inflated the fees, requiring students enrolled in the program to pay $1,000 per student per semester and that payments be made in cash or by money order. In 2007, Lambert assisted a close family member in becoming an authorized vendor with BISD. From 2007-2013, Lambert directed that all printing and graphic work prepared for CMMHS be done through her family member’s companies. This scheme alone resulted in approximately $480,000 paid by CMMHS or BISD at Lambert’s direction. The indictment alleges that Lambert’s fraudulent activity amounted to $751,602.76.
The indictment also alleges that in order to increase the standardized test scores at CMMHS, Lambert directed others to change students’ tests before submitting the answer documents to the BISD administration building for forwarding to the State of Texas’ contractor for analysis. Steward, a teacher at CMMHS, is alleged to have performed a large portion of the actual test changing and on more than one occasion, would provide teachers with a stack of tests and an answer key.
Lambert is charged with four counts of fraud upon programs receiving federal funds and if convicted, faces up to 10 years in federal prison on each count. Lambert and Steward are both charged with conspiracy and if convicted, each face up to five years in federal prison.
This case was prosecuted as part of the Joint Task Force established in March 2014 between the U.S. Attorney’s Office for the Eastern District of Texas and the Jefferson County District Attorney’s Office to investigate and prosecute major crimes – more specifically, violent crime and crimes related to the abuse of public trust in Jefferson County, Texas.
If you have any information related to this matter, please call the Federal Bureau of Investigation at 409-832-8571.
This investigation was conducted by the Federal Bureau of Investigation, the Department of Education Office of Inspector General, the Texas Education Agency, the Jefferson County District Attorney’s Office and the Beaumont Police Department. This case is being prosecuted by Assistant U.S. Attorneys Christopher T. Tortorice and Joseph R. Batte.
A grand jury indictment is not evidence of guilt and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Former Arrow Trucking Executive Pleads Guilty in Multi-Million Dollar FraudRead the Press Release
TULSA, Okla. – James Douglas Pielsticker, former Chief Executive Officer and President of Arrow Trucking Company, pleaded guilty today before United States District Court Chief Judge Gregory K. Frizzell to conspiring to commit bank fraud, tax fraud, and evading his personal income taxes.
United States Attorney Danny C. Williams Sr. of the Northern District of Oklahoma, Principal Deputy Assistant Attorney General Caroline D. Ciralo for the Justice Department’s Tax Division, Special Agent in Charge James E. Finch of the FBI’s Oklahoma City Division Office, and Special Agent in Charge Damon Rowe of the IRS-Criminal Investigation’s Dallas Division Office made the announcement.
Pielsticker, 46, of Dallas, Texas, formerly of Tulsa, Oklahoma, was indicted by a grand jury on December 1, 2014. According to court documents, Arrow Trucking withheld payroll taxes from employees’ wages. Beginning in 2009, Pielsticker, Jonathan Leland Moore, the former Chief Financial Officer of Arrow Trucking Company, and others conspired to defraud the United States by, among other things, failing to account for and pay over more than $9 million in payroll taxes, including federal income tax, Medicare and social security taxes, for Arrow Trucking employees. As part of the conspiracy, Pielsticker’s co-conspirators provided Transportation Alliance Bank (TAB), a financial institution in Ogden, Utah, with fraudulent and misleading invoice data that inflated amounts due to Arrow Trucking. As a result of this false information, the TAB paid Arrow Trucking more money than Arrow Trucking was entitled to receive under the companies’ agreement.
As part of the plea agreement, Pielsticker admitted that he evaded his individual income taxes due and owing to the United States for 2009 by causing Arrow Trucking to spend thousands of dollars on his various personal expenses, including payments related to his wedding and on Bentley and Maserati automobiles.
Pielsticker faces a statutory maximum penalty of ten years in prison. In addition, Pielsticker faces money judgments in an amount representing proceeds obtained as a result of his participation in a conspiracy to defraud the United States and to commit bank fraud.
The case was investigated by the FBI and IRS-CI; Department of Justice Tax Division Trial Attorney Charles A. O’Reilly and Assistant U.S. Attorneys Jeffrey A. Gallant and Catherine Depew are prosecuting the case.
(U.S. v. James Douglas Pielsticker )
Florida Man Sentenced to More Than 6 Years in Prison for Role in Multimillion Dollar Drug TheftRead the Press Release
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The United States Attorney for the District of Connecticut announced that YOSMANY NUNEZ, also known as “El Gato,” 42, of Southwest Ranches, Fla., was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to 75 months of imprisonment, followed by three years of supervised release, for his role in the theft of pharmaceuticals from an Eli Lilly Company warehouse and storage facility in Enfield, Conn.
According to court documents and statements made in court, in early 2010, NUNEZ, Amaury Villa, Amed Villa and Alexander Marquez planned to steal pharmaceuticals from the Eli Lilly Company warehouse and storage facility in Enfield. The investigation revealed that, prior to the theft, NUNEZ and Amaury Villa traveled from the Miami area to Connecticut to gather information about the warehouse facility and the surrounding area. Shortly before the theft, Amed Villa and Rafael Lopez traveled to Flushing, N.Y., where they purchased tools needed to break into the warehouse facility, and then traveled to Connecticut.
In the evening of March 13, 2010, individuals involved in the theft dropped off a ladder in the rear parking lot of the warehouse facility and left. That same night, Marquez drove a tractor trailer to the facility. Thereafter, Amed Villa and Amaury Villa carried the ladder to the building, checked for security in the front area, climbed onto the roof, used the tools Amed Villa and Lopez had purchased to cut a hole in the facility roof, dropped down into the facility and disabled the alarm system. Amaury Villa, Amed Villa and NUNEZ then loaded more than 40 pallets of pharmaceuticals into the tractor trailer, which had been backed up to the loading dock of the warehouse.
The pallets of pharmaceuticals included thousands of boxes Zyprexa, Cymbalta, Prozac, Gemzar and other medicines, valued between $50 and $100 million.
The individuals who participated in the theft split up in Connecticut. Marquez then drove the tractor trailer to Florida, where he subsequently reunited with Amaury Villa, Amed Villa and NUNEZ so the pharmaceuticals could be transferred from the tractor trailer into self-storage units in the Miami area.
On October 14, 2011, law enforcement authorities searched a storage facility in Florida and recovered pharmaceuticals that had been stolen from the Enfield warehouse.Judge Arterton ordered NUNEZ to pay restitution in the approximate amount of $60 million, but the exact amount of restitution to be ordered will be determined after further submissions by the parties.
NUNEZ, a citizen of Cuba, has been detained since his arrest on April 17, 2014. On November 5, 2014, he pleaded guilty to one count of transportation of stolen property.
Amaury Villa, Amed Villa, Marquez and Lopez have pleaded guilty and await sentencing.
This matter is being investigated by the Federal Bureau of Investigation and the Enfield Police Department, with the assistance of several other U.S. Attorney’s Offices and federal, state and local law enforcement agencies that have been investigating large-scale thefts of pharmaceuticals and other products.
The case is being prosecuted by Assistant U.S. Attorneys Anastasia E. King and Douglas P. Morabito.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Federal Law Enforcement Authorities Announce Formation of Task Force to Fight Public CorruptionRead the Press Release
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United States Attorney Deirdre M. Daly and representatives from five federal law enforcement agencies today announced the formation of the Connecticut Public Corruption Task Force to investigate corrupt public officials, the misuse of public funds and related criminal activity.
The Connecticut Public Corruption Task Force includes representatives from the Federal Bureau of Investigation, United States Postal Inspection Service, Internal Revenue Service – Criminal Investigation Division, and the Inspector General’s Offices of the United States Department of Health and Human Services and the United States Department of Housing and Urban Development.
“For the first time in Connecticut, we have brought together in a single investigative unit, agents and inspectors from the federal agencies that have primary responsibility for investigating public corruption,” said U.S. Attorney Daly. “Although each of these agencies has a history of working together, bringing some of the best agents in the state into one unit with a singular purpose of investigating all manner of corruption is an optimal way to address the complex and varied threats posed by corrupt activity.”
U.S. Attorney Daly explained that the Task Force is focused on rooting out not only corrupt elected officials, but also federal, state and municipal employees who use their position for personal gain at the expense of the public good. The Task Force also will investigate corruption that threatens public resources, the electoral process, and fair economic opportunities for citizens and businesses. In addition, the Task Force is charged with uncovering corruption within both public and private institutions that receive and misuse taxpayer dollars.
Assistant U.S. Attorney Christopher M. Mattei, who is Chief of the U.S. Attorney’s Office’s Financial Fraud and Public Corruption Unit, is coordinating the Task Force. The FBI has committed resources to support all Task Force investigations and serves as the lead investigative agency.
“The New Haven Division of the FBI is joining forces with our federal agency partners to combat public corruption throughout the State of Connecticut,” said FBI Special Agent in Charge Patricia M. Ferrick. “With the assistance and cooperation of these partners, the Connecticut Public Corruption Task force is well positioned to successfully root out and put an end to public corruption within our area. Public servants are entrusted by all of us to act in the best interests of the public they serve. It is important for the United States to bring to justice those who betray that trust. Public corruption at all levels of local, state, and federal government must not be tolerated, and this task force will leverage the best assets of the task force partner agencies to address the threat posed by corrupt public officials.”
The Task Force has been at work for several months and has already made significant gains in several investigations, including the recent arrest of the former Finance Director of Plymouth who is alleged to have embezzled more than $800,000 from the town.
“The Postal Inspection Service has enjoyed a close relationship with the Connecticut U.S. Attorney’s Office through the years working intricate and complex fraud cases that involve the illicit use of the U.S Mails,” said Inspector in Charge Shelly A. Binkowski of the U.S. Postal Inspection Service. “The U.S. Postal Inspection Service welcomes the formation of the Connecticut Public Corruption Task Force, a partnership that presents a tremendous opportunity for various agencies to pool resources and expertise to ensure public officials are held accountable.”
“Investigating public corruption remains one of IRS Criminal Investigation’s highest priorities,” said William Offord, Special Agent in Charge, Internal Revenue Service. “Public trust is broken when elected or appointed officials commit crimes – most often triggered by greed and resulting in unlawful personal financial gain. IRS agents contribute their financial investigative expertise to this formidable investigative team.”
“As part of the Public Corruption Task Force, HHS OIG will ensure that the department’s dollars are not misused though public corruption and are instead used for their intended purpose of ensuring that the most vulnerable members of our society – including the elderly, poor and children – receive services funded at least in part by taxpayers,” said Phillip Coyne, Special Agent in Charge of the Boston Regional Office of the Health and Human Services Office of the Inspector General. “Working with our federal, state and local law enforcement partners, we will continue to vigorously bring those who steal from these programs to justice.”
“The core mission of the U.S. Department of Housing and Urban Development (HUD) includes creating strong, sustainable communities and quality affordable homes for all,” said Christina Scaringi, Special Agent in Charge of the Northeast Region of HUD’s Office of Inspector General. “To carry out its mission, HUD depends on the services of housing authority staff; owners and management agents of HUD-assisted multifamily developments; state, local, and municipal governments that receive HUD funding in the form of community development grants; and nonprofit organizations that administer a variety of programs including housing the homeless. HUD also oversees the administration of over $150 million awarded to the State of Connecticut for Hurricane Irene and Sandy disaster relief purposes. HUD OIG is dedicated to aggressively pursuing those who choose to engage in corrupt behavior, and we are proud to be a part of this all-important task force.”
U.S. Attorney Daly encouraged citizens to report corrupt activity by calling 1-800-CALL-FBI (1-800-225-5324).
“Connecticut’s unfortunate recent history with corruption is well known, but so is this Office’s history of combating corrupt activity,” said U.S. Attorney Daly. “Our efforts have been aided by a dogged media and courageous, conscientious citizens, business owners and public officials who have provided information about corrupt activity in their midst. We call on public servants, the vast majority of whom are honest brokers, to not look the other way when they see indications of corruption. We cannot overstate the importance of citizen participation in our fight against corruption, and we urge all citizens to assist us in this effort.”
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Employee of Postal Contractor Charged with Taking Cash from Cranberry Township Mail RecipientRead the Press Release
PITTSBURGH - A highway contract route driver has been indicted by a federal grand jury in Pittsburgh on a charge of theft of mail, United States Attorney David J. Hickton announced today.
The one-count indictment, returned on Feb. 3, named April Kovach, 39, of Yatesboro, Pa.
According to the indictment, on or about Oct. 8, 2014, Kovach did abstract and remove two $20 Federal Reserve notes that had been the contents of a greeting card envelope addressed to an individual in Cranberry Township.
The law provides for a maximum total sentence of five years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Shardul S. Desai is prosecuting this case on behalf of the government.
The United States Postal Service – Office of Inspector General conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Eagle Butte Woman Pleads Guilty to Second Degree MurderRead the Press Release
United States Attorney Brendan V. Johnson announced that Jordyn Blue Coat, a/k/a Jordyn Swan, age 21, of Eagle Butte, South Dakota, appeared before District Judge Roberto A. Lange on February 2, 2015, and pled guilty to Second Degree Murder of a child.
The maximum penalty upon conviction is up to life in custody, 5 years of supervised release, and $100 to the Federal Crime Victims Fund.
The conviction stems from an incident that occurred on October 17, 2014, when Blue Coat was the caretaker of a 20-month old child. According to Blue Coat, in the last two months of the child’s life, he frequently cried and was hard to console. The evening of October 17, the child had a messy diaper, which Blue Coat changed and temporarily left on the bedroom floor near the child, while she stepped out to use the restroom. When she returned, the child had gotten ahold of the dirty diaper and had feces all over his clothes and himself. At this time, Blue Coat became angry, lost control of her emotions and kicked the child in the head. The kick pushed the child’s head into a television stand in the bedroom. As a result, the child was unconscious and his head began to swell from the injury he received. After spending some time trying to awaken the child, Blue Coat took him to the emergency room at the Indian Health Services (IHS) Hospital in Eagle Butte.
Blue Coat told hospital medical providers that the child had “fallen two days ago in the park” and hit his head. She did not provide an accurate medical history. The child was unresponsive at the hospital. Additionally, there was swelling around the child’s left ear, eyes were swollen shut, and there was a large burn injury to the leg. The child also had multiple chronic and acute burn injuries throughout his body. Doctors at IHS immediately suspected the child had a closed head injury and air evacuated him to Rapid City Regional Hospital, where emergency medical personnel worked on him for four hours. The child died in the emergency room on October 18, 2014.
The autopsy report listed the cause of death as blunt force trauma to the head that caused acute subdural hemorrhaging and led to bilateral cerebral brain failure. The autopsy also revealed multiple burns, contusions, abrasions, and injuries to the child’s head, face, and feet, along with old and recent bone fractures.
The parties stipulated and agreed that Blue Coat had malice aforethought when she unlawfully kicked the child in the head causing his death.
The investigation was conducted by the Federal Bureau of Investigation, the South Dakota Department of Social Services, and the Cheyenne River Sioux Tribe Law Enforcement Services. The case is being prosecuted by Assistant U.S. Attorney Mikal Hanson.
A presentence investigation was ordered and a sentencing date was set for April 27, 2015. Blue Coat was remanded to the custody of the U.S. Marshals Service pending sentencing.
Eagle Butte Man Sentenced for Possession of A Stolen FirearmRead the Press Release
United States Attorney Brendan V. Johnson announced that an Eagle Butte, South Dakota, man convicted of Possession of a Stolen Firearm was sentenced on February 2, 2015, by U.S. District Judge Roberto A. Lange.
Shilo Hill, a/k/a Shilo Robideau, age 19, was sentenced to 2 months in custody, 18 months of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Hill was indicted for Second Degree Burglary, Larceny, and Possession of a Stolen Firearm by a federal grand jury on July 15, 2014. He pled guilty to Possession of a Stolen Firearm on November 17, 2014.
The conviction arose from an incident in March 2014, when Hill knowingly and unlawfully received, possessed, concealed, and stored a .45 caliber Glock pistol, which he had stolen. The firearm was manufactured outside of South Dakota and was shipped and transported in interstate commerce before Hill took and possessed the firearm.This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Mikal Hanson prosecuted the case.
Hill was immediately turned over to the custody of the U.S. Marshals Service to begin serving his sentence.
Doctor Indicted on Charges He Illegally Distributed Drugs from Two OfficesRead the Press Release
PHILADELPHIA – Dr. Jeffrey Bado, 59, of Philadelphia, PA, was charged today by indictment with illegally distributing pain medications from his Philadelphia and Bryn Mawr medical offices, announced United States Attorney Zane David Memeger. Bado is charged with two counts of maintaining a drug-involved premises, 200 counts of illegally distributing oxycodone, a Schedule II controlled substance, outside the usual course of professional practice and for no legitimate medical purpose, as well as 33 counts of health care fraud and four counts of making false statements to federal agents.
According to the indictment, Bado, a doctor of Osteopathic Medicine, gave prescriptions for large numbers of oxycodone pills to “patients” who paid in cash for an “office visit” during which the “patient” would receive at most a cursory physical examination and little other medical care or treatment. During their first visit to Bado’s practice, new patients would still get prescriptions for large amounts of oxycodone even though they provided little or no recent medical records to verify their claim of pain, or provided medical records that were not consistent with their claims of pain.
The indictment alleges that Bado’s prescribing mirrored the needs of drug addicts and drug traffickers. Bado would allegedly comply with patient requests for pills with specific concentrations of oxycodone, and Bado would allegedly switch patients to pills with a higher street value even though there was no medical justification for the switch. Bado allegedly continued to prescribe high amounts of oxycodone even when he knew that his patients were addicted to oxycodone, were using illegal drugs, or were not even taking the oxycodone pills as prescribed.
The indictment further alleges that Bado committed health care insurance fraud by billing Medicare and private insurers for patient visits that occurred in February 2010, when Bado was out of the office and traveling in Haiti. Bado allegedly directed residents, nurses and other staff to see patients while he was away, and allegedly directed that they provide the patients with prescriptions that Bado had already filled out and signed. Before departing for his trip, Bado allegedly made notations in and signed medical charts to make it appear as though he had seen the patients when in fact he was away in Haiti during their appointments. Bado then allegedly had his office staff submit fraudulent claims to these patients’ health care insurers for the cost of the patients’ office visit as if Bado had seen these patients. It is alleged that Bado subsequently made several materially false statements to federal agents regarding the arrangements he made before leaving for Haiti, including falsely claiming that he had not filled out in advance out any medical records for the patient appointments that occurred while he was in Haiti.
If convicted of all charges, Bado faces an estimated sentencing guideline range of at least 24 years in prison with a maximum sentence of 20 years in prison for each count of oxycodone distribution and maintaining a drug premises counts, 10 years in prison for each count of health care fraud, and five years in prison for each count of making false statement counts. He also faces substantial fines and criminal forfeiture.
The case was investigated by the Federal Bureau of Investigation, the Department of Health and Human Services Office of the Inspector General, the Haverford Township Police Department and the Philadelphia Police Department. It is being prosecuted by Assistant U.S. Attorneys Nancy Beam Winter and Andrew J. Schell.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Doctor Admits Taking Bribes in Test-Referral Scheme with New Jersey Clinical LabRead the Press Release
Thirty-five Defendants – Including 24 Doctors – Have Pleaded Guilty to Roles in Massive Scheme
NEWARK, N.J. – A Middlesex County doctor with practices in Jersey City, New Jersey, today admitted accepting bribes in exchange for test referrals as part of a long-running and elaborate scheme operated by Biodiagnostic Laboratory Services LLC (BLS), of Parsippany, New Jersey, its president and numerous associates, U.S. Attorney Paul J. Fishman announced.
Anthony DelPiano, 53, of Monmouth Junction, New Jersey, pleaded guilty before U.S. District Judge Stanley R. Chesler in Newark federal court to an information charging him with one count of accepting bribes.
Including DelPiano, 35 people – 24 of them doctors – have pleaded guilty in connection with the bribery scheme, which its organizers have admitted involved millions of dollars in bribes and resulted in more than $100 million in payments to BLS from Medicare and various private insurance companies. The investigation has to date recovered more than $10.5 million through forfeiture.According to documents filed in this and related cases and statements made in court:
DelPiano admitted he accepted bribes in return for referring patient blood specimens to BLS and was paid approximately $2,300 per month. DelPiano’s referrals generated at least $1,752,603.24 in lab business for BLS.
On April 9, 2013, federal agents arrested David Nicoll, 40, of Mountain Lakes, New Jersey, Scott Nicoll, 33, of Wayne, New Jersey, a senior BLS employee and David Nicoll’s brother, and Craig Nordman, 35, of Whippany, New Jersey, a BLS employee and the CEO of Advantech Sales LLC – one of several entities used by BLS to make illegal payments. They were charged by federal complaint with the bribery conspiracy, along with the BLS company and Frank Santangelo, 44, of Boonton, New Jersey. In June 2013, David and Scott Nicoll, Nordman and four other associates of BLS pleaded guilty to charges related to their involvement. Santangelo, a doctor, pleaded guilty in August 2013 to charges relating to his role in the scheme
The bribery count to which DelPiano pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for May 12, 2015. As part of his guilty plea, DelPiano must forfeit $204,475, representing the total bribe monies received from BLS.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Acting Special Agent in Charge Eric Welling; U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Scott J. Lampert; IRS– Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen; and inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates, with the ongoing investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Joseph N. Minish, Senior Litigation Counsel Andrew Leven, and Jacob T. Elberg, Chief of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark, as well as Assistant U.S. Attorney Barbara Ward of the office’s Asset Forfeiture and Money Laundering Unit.
U.S. Attorney Paul J. Fishman reorganized the health care fraud practice at the New Jersey U.S. Attorney’s Office shortly after taking office, including creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered more than $635 million in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act and other statutes.
15-046Defense counsel: Wick Sollers Esq., Washington, D.C.
Detroit man pleads guilty to heroin crimeRead the Press Release
HUNTINGTON, W.Va. – United States Attorney Booth Goodwin announced Tuesday that Bryant Donavan Taylor, 35, of Detroit, pleaded guilty to aiding and abetting possession of heroin with the intent to distribute.
On August 21, 2013, agents with the Huntington Violent Crimes and Drug Task Force executed a search warrant at a residence in the 200 block of 8th Ave. in Huntington. The residence was rented by another man, and utilized by Taylor and others to distribute heroin. During the search, Taylor and two other men were present, and agents seized 134.8 grams of heroin and $10,431.76.
Taylor stated that he jointly possessed the heroin with a partner for distribution.
On August 22, 2013, agents executed a second search warrant at the same residence, and seized $3,000 concealed within a television.
Taylor stated the currency seized during both searches was proceeds from heroin distributions.
Taylor faces up to 40 years in federal prison and, a $5 million fine. He is scheduled to be sentenced on May 4, 2015.
Chief United States District Judge Robert C. Chambers presided over the plea hearing.
The case is being investigated by the Huntington Violent Crimes and Drug Task Force. Assistant United States Attorney Joseph Adams is in charge of the prosecution.
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Detroit man pleads guilty to heroin chargeRead the Press Release
HUNTINGTON, W.Va. – United States Attorney Booth Goodwin announced Tuesday that Kenneth D. Bowden, 28, of Detroit, pleaded guilty to possession of heroin with intent to distribute.
On April 8, 2014, Huntington Police Department officers executed a search warrant at an apartment in the 900 block of 6th St. in Huntington. Bowden was staying in the apartment at the time of the search warrant. When they entered the apartment, officers observed Bowden and a second individual exiting through the rear bedroom. During the search, officers found a bag containing 113.7 grams of heroin. The HPD Forensic Investigations Unit located a usable print on the bag, and verified it to be Bowden’s right thumb print.
Bowden stated he possessed the heroin for the purpose of distribution.
Bowden faces up to 40 years in federal prison and, a $5 million fine. He is scheduled to be sentenced on May 11, 2015.
Chief United States District Judge Robert C. Chambers presided over the plea hearing.
The case is being investigated by the Huntington Violent Crimes and Drug Task Force. Assistant United States Attorney Joseph Adams is in charge of the prosecution.
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Detroit drug dealer convicted by federal jury gets 30 yearsRead the Press Release
CHARLESTON, W.Va. – United States Attorney Booth Goodwin announced today that Willie Slocum, Jr., 36, of Detroit, was sentenced to 30 years in federal prison.
Following a five-day trial in November 2014, Slocum was convicted by a federal jury in Charleston of conspiracy to distribute heroin, conspiracy to distribute oxycodone, two counts of being a felon in possession of a firearm and one count of tampering with a witness.
Fifteen witnesses who purchased pills and heroin from Slocum, or sold them for him in the Charleston area testified before the jury to his guilt. Slocum ran his drug trafficking organization from Detroit, traveling to West Virginia while still on parole for a 1999 murder conviction in Michigan. It was this conviction, along with convictions for assault with intent to murder and felony possession of firearms, that prohibited Slocum from possessing a firearm.
Slocum used violence and threats of violence to keep his lower level dealers in line. He told Matt Quinn, an addict and low-level dealer, that if he got behind on his money that “he might as well jump in the river.” Going beyond words, Slocum stabbed Chris O’Dell after he found O’Dell had stolen money and heroin from one of Slocum’s dealers.
United States District Judge John T. Copenhaver imposed the sentence.
The case was investigated by the Kanawha County Sheriff’s Department. Assistant United States Attorney Steven I. Loew was in charge of the prosecution.
This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets and curtailing the spread of opiate painkillers and heroin in communications across the Southern District.
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Delray Beach Doctor Charged with Health Care FraudRead the Press Release
A Delray Beach doctor has been charged with eight counts of health care fraud.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, FBI, Miami Field Office, and Derrick Jackson, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), made the announcement.
According to allegations in the indictment, Isaac Kojo Anakwah Thompson, M.D., 55, operated Isaac K. A. Thompson, M.D., P.A. in Delray Beach, and IM Medical P.A. in Boynton Beach, Florida. These clinics were Primary Care Physicians (PCP) in Humana’s HMO network. Therefore, a beneficiary enrolled in a Humana health maintenance organization (HMO) Medicare Advantage plan could choose Thompson’s clinics as the beneficiary’s PCP. Humana paid each clinic approximately 80% of the capitated fee associated with each beneficiary who had selected the clinic as his or her PCP.
Thompson defrauded Medicare by submitting fraudulent diagnoses to Humana for Medicare Advantage beneficiaries. Humana reported the diagnoses to Medicare, and Medicare in turn increased the capitation payments associated with many of the beneficiaries. In total, Medicare paid at least approximately $2.1 million in excess capitation fees as a result of the scheme. Humana paid approximately 80% of the increased capitation payments to Thompson’s clinics. Because the diagnoses were false, Thompson did not have any corresponding increase in his cost to treat the patients.
According to the allegations in the indictment, the Medicare Advantage program is a voluntary program which allows Medicare beneficiaries to enroll in health insurance plans sponsored by private insurance companies. For each beneficiary who chooses to enroll in a Medicare Advantage plan, Medicare pays the sponsoring insurance company a fixed, or capitated, monthly fee. Medicare does not adjust the fee based on the cost of providing medical care to the beneficiary. Instead, Medicare adjusts the fee based on the beneficiary’s medical conditions. In other words, Medicare generally pays a larger capitated fee for a beneficiary with more serious medical conditions than it does for a healthier beneficiary. Medicare determines a beneficiary’s medical conditions in part using diagnoses submitted by the beneficiary’s Medicare Advantage plan. The fraud in this case involved certain Medicare Advantage plans sponsored by Humana, Inc. These Humana plans operated as HMO: each enrolled beneficiary selected a PCP enrolled in Humana’s network. Before seeing a specialist, the beneficiary generally needed a referral from his or her PCP.
If convicted, Thompson faces maximum possible statutory sentences of 10 years in prison for each count.
Mr. Ferrer commended the investigative efforts of the FBI and HHS-OIG. This case is being prosecuted by Assistant U.S. Attorney Marc Osborne.
An indictment is only an accusation and a defendant is presumed innocent unless and until proven guilty.
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.
Dansville Man Pleads Guilty to Production of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
Buffalo, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Ryan C. Lander, 28, of Dansville, NY, pleaded guilty to production of child pornography before U.S. District Judge Richard J. Arcara. The charge carries a minimum penalty of 15 years in prison, a maximum of 30 years, a fine of $250,000 or both.Assistant U.S. Attorney Kathleen A. Lynch, who is handling the case, stated that between July 2011 and March 7, 2013, the defendant coerced a minor under the age of 12 to engage in sexually explicit conduct. During this conduct, Lander took pictures of the minor. The images were produced using electronic materials, including a computer.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The plea is the culmination of an investigation on the part of Special Agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero.
Sentencing is scheduled for May 14, 2015 at 12:30 p.m. before Judge Arcara.
Dallas Man Faces up to Life in Federal Prison for Sex Trafficking A 17-Year-Old RunawayRead the Press Release
DALLAS — A Dallas man who met a 17-year-old female on the Internet, convinced her to leave her foster home and go to Texas with him where he facilitated her engagement in commercial sex acts, pleaded guilty yesterday in federal court, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
Ladestro Douglas, a/k/a “Derek Douglas,” 35, appeared before U.S. Magistrate Judge David L. Horan and pleaded guilty to one count of conspiracy to commit sex trafficking of children. Douglas faces a maximum statutory sentence of life in federal prison. Sentencing is set for June 3, 2015.
According to documents filed in the case, in May 2012, Douglas contacted 17-year-old “Jane Doe #1” on the Internet and began communicating with her. He convinced her to leave her foster home in Alabama and travel with him to Texas. When they arrived in Texas, Douglas facilitated Jane Doe #1 engaging in commercial sex acts. He took provocative photos of her for use on commercial sex websites; posted her on Backpage.com and other similar commercial sex websites; provided her with contraceptives to use with customers; and drove her to various cities to engage in commercial sex acts. Jane Doe #1 gave Douglas all of the money she earned.
In June 22, 2012, officers with the Dallas Police Department responded to a disturbance call at a local hotel. In the parking lot, they encountered Jane Doe #1, who explained that she had gotten in an altercation with her pimp, Douglas. Officers learned Jane Doe #1 was a 17-year-old runaway from Alabama, and they arrested Douglas. Douglas admitted that he knew she was age 17 and that she had been engaging in commercial sex acts throughout Texas. Afterwards, Jane Doe #1 lost contact with Douglas for several months, but after she turned 18, they reunited and Douglas continued to facilitate her commercial sex acts.
In December 2013, Jane Doe #1 and another woman were in Odessa, Texas, working at Douglas’s direction. They encountered 16-year-old Jane Doe #2 walking down the street, offered her a ride and she joined them. Jane Doe #1 contacted Douglas about Jane Doe #2 and he travelled to Odessa to meet her.
Douglas, Jane Doe #1 and Jane Doe #2 traveled back to Dallas on a bus, and after they arrived, Jane Doe #1 began facilitating Jane Doe #2’s engaging in commercial sex acts. They took provocative photos of her and posted her ad on Backpage.com. Jane Doe #1, at Douglas’s direction, contacted certain customers to see if they wanted to pay to have sex with Jane Doe #2. Jane Doe #1 rode in the car with Jane Doe #2 to her commercial sex transactions, but she did not go into the room where they occurred. Jane Doe #2 gave all of the money she earned to Douglas.
Ultimately, in late December 2013, Jane Doe #2 told Douglas she wanted to go home for the Christmas holidays, and he allowed her to leave.
U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) investigated. Assistant U.S. Attorney Cara Foos Pierce is prosecuting.
Chestertown Felon Pleads Guilty to Illegally Possessing Firearms and Co-Defendant Pleads Guilty to Conspiring to Unlawfully Obtain Guns for A FelonRead the Press Release
Baltimore, Maryland – Jonathan M. Sutton, age 36, of Chestertown, Maryland, pleaded guilty today to conspiring to unlawfully obtain firearms for a prohibited person. Yesterday, Daniel P. Welch, age 36, of Crumpton and Chestertown, Maryland, the person for whom Sutton obtained the weapons, pleaded guilty to being a felon in possession of firearms.
The guilty pleas were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Queen Anne’s County Sheriff R. Gary Hofmann III; Chief G. Adrian Baker of the Chestertown Police Department; and Queen Anne’s County State’s Attorney Lance G. Richardson.
According to their guilty pleas, Welch is a previously convicted felon and therefore is prohibited from possessing firearms. Welch and Sutton have known each other since they were small children. Between January 29, 2011 and January 31, 2014, Sutton obtained six firearms for Welch through private sellers and through “straw purchases” by Sutton from a federally licensed firearms dealer. A “straw purchase” occurs when an individual, who is ineligible to lawfully purchase a firearm, such as a previously convicted felon, solicits another to conduct the transaction. As part of the purchase, the middleman-buyer must complete the ATF Form 4473, which notifies the buyer that such purchases are unlawful. On the first page of the form, the buyer is asked: “Are you the actual transferee/buyer of the firearm . . .?” The question is followed by a warning in bold print that states: “Warning: You are not the actual buyer if you are acquiring the firearm(s) on behalf of another person.” Finally, the buyer’s certification explicitly states that falsely answering “yes” to the actual buyer question is a crime punishable as a felony.
Welch and Sutton admitted that on January 29, 2011, they visited four ATMs in Stevensville, Maryland, near a federally licensed firearms dealer, and Welch withdrew approximately $1,700 in cash. Welch and Sutton then went to the firearms dealer and selected firearms for Sutton to purchase for Welch. Sutton purchased a Smith & Wesson MP5-22, a Mossberg Persuada 500, and a Century Arms SKS. Sutton completed Form 4473 indicating the he was the actual buyer of the firearms and was not acquiring the firearms for another person. On February 1, 2011, Sutton picked up the guns, which he then transferred to Welch. On February 11, 2011, Sutton purchased a Marlin rifle from the firearms dealer, again completing the Form 4473 and falsely indicting that he was buying the gun for himself. In 2012, Sutton acquired a Remington Arms 597 and a Ruger Single Six, both .22 caliber, through private purchases. Those guns were subsequently possessed by Welch.
Welch also admitted that on May 17, 2013, he broke into a neighbor’s home and stole an express pump action 20 gauge shotgun with a 21 inch barrel and other items. On June 14, 2103, officers with the Queen Anne’s County Sheriff’s Office executed a search warrant at Welch’s residence in Crumpton and recovered items Welch had stolen from the neighbor, including the shotgun. Welch had sawed off a portion of the barrel and removed the serial number. During the search, officers also located the two firearms Welch received from Sutton in 2012.
Welch faces a maximum of 10 years in prison for being a felon in possession of a firearm, and Sutton faces a maximum sentence of five years in prison for the conspiracy. Chief Judge Blake has scheduled sentencing for Welch on April 7, 2015 at 9:15 a.m., and for Sutton on April 16, 2015, at 9:00 a.m.
United States Attorney Rod J. Rosenstein praised the FBI, Queen Anne’s County Sheriff’s Office, Chestertown Police Department and the Queen Anne’s County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Zachary A. Myers, who is prosecuting the case.
Canadian Youth Soccer Coach Arrested for Seeking Sex with Undercover Agent Posing as 12-Year-Old GirlRead the Press Release
A 47-year-old man from Surrey, British Columbia was arrested yesterday afternoon at a park in Burlington, Washington, where he was expecting to meet a 12-year-old girl whom he had tried to entice into having sexual contact with him, announced Acting United States Attorney Annette L. Hayes. KULDIP “KELLY” SINGH MAHAL, responded to a Craigslist posting and began communicating with what he believed to be a 12-year-old girl. In fact, he sent multiple sexually explicit messages and photos to an undercover agent with U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI). MAHAL, who works as a facilities manager for a Vancouver BC tech firm, crossed the border into the U.S. at Blaine yesterday and headed toward the park where he had agreed to meet the girl. MAHAL is a volunteer coach for a U-16 soccer team in British Columbia. He made his initial appearance in U.S. District Court in Seattle today and will remain detained pending a hearing on Monday, February 9, 2015.
“Homeland Security Investigation Agents work hard each day to keep our country, and in this case our children, safe from those who would do them harm,” said Acting United States Attorney Annette L. Hayes. “I am grateful for their hard work in this case.”
According to the complaint filed in the case, MAHAL responded to a posting on the Vancouver BC Craigslist site on January 15, 2015. MAHAL sent a picture of his arms and upper body, and expressed interest in a sexual relationship. MAHAL continued to communicate with the undercover agent even after the agent said she was 12-years-old. In fact MAHAL is alleged to have sent sexually explicit photos of himself and repeatedly requested the “girl” send sexually explicit photos of herself back to him. MAHAL allegedly engaged in lengthy sexualized chats via text message with the “girl.”
“In three weeks’ time, the defendant went from responding to an online posting to traveling from Canada to Washington State to meet a minor for illicit sex,” said Brad Bench, special agent in charge of Homeland Security Investigations in Seattle. “Fortunately, he was actually communicating with an undercover HSI special agent. Individuals who cross international borders to sexually abuse children, whether they are Americans traveling overseas or foreigners traveling to the U.S., are within HSI’s jurisdiction and will be held to account for their crimes.”
Enticement of a Minor is punishable by a mandatory minimum term of imprisonment of ten years, and up to life.
The charges contained in the complaint are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) and is being prosecuted by Assistant United States Attorney Kate Vaughan. Ms. Vaughan heads up the Project Safe Childhood efforts of the U.S. Attorney’s Office. More on Project Safe Childhood here.
California Source of Crystal Meth Sentenced to Federal PrisonRead the Press Release
PENSACOLA, FLORIDA – Javier E. Rivas, 35, of San Francisco, was sentenced in a Pensacola federal courtroom today for conspiracy to traffic methamphetamine. Senior United States District Judge Roger Vinson sentenced Rivas to 25 years’ imprisonment and 10 years of supervision upon release. The sentence was announced today by Pamela C. Marsh, United States Attorney for the Northern District of Florida.
Between January and October 2013, Rivas furnished multi-ounce quantities of high purity methamphetamine, known as “ice” and “crystal meth,” to a California drug supplier, who, in turn, mailed the drugs to local distributors in the Pensacola area. In September 2014, Rivas pled guilty to a one-count indictment charging him with conspiracy.
Rivas is the sixth defendant charged and convicted as part of a continuing investigation into the large-scale importation of crystal methamphetamine from Mexico to Northern California and Pensacola, Florida. Local members of the organization include Bryan Gaston, Mark Jergenson, Victor Pinckard, and William Thomas. All of the defendants have been sentenced to federal prison.
United States Attorney Marsh praised the work of the Drug Enforcement Administration, Homeland Security Investigations (HSI), the Escambia County Sheriff’s Office, the Santa Rosa County Sheriff’s Office, the Pensacola Police Department, and the State Attorney’s Office for the 1st Judicial Circuit, whose joint investigation led to the indictments in this case.
“The United States Attorney’s Office for the Northern District of Florida is proud to join a multi-agency law enforcement investigation to combat drug trafficking in our communities,” said United States Attorney Marsh. “Together, we are saving lives and protecting the district, state, and nation from the threat of deadly drugs.”
“Trafficking methamphetamine is a serious offense that destroys lives and wreaks havoc on entire communities,” said Susan L. McCormick, special agent in charge at HSI Tampa. “HSI, together with its federal, state, and local law enforcement partners, is committed to using every resource and authority at its disposal to combat the menace posed by this dangerous drug.”
The case was prosecuted by Assistant United States Attorney David L. Goldberg.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. The office strives to protect and serve the citizens of the Northern District of Florida through the ethical, vigorous, and impartial enforcement of the laws of the United States, to defend the national security, to improve the safety and quality of life in our communities through the protection of civil rights, and to protect the public funds and financial assets of the United States. To access available public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
California Man Sentenced in New Mexico for Methamphetamine Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Eddieberto Garcia, 36, of Oceanside, Calif., was sentenced today in federal court in Las Cruces, N.M., to 97 months in federal prison followed by four years of supervised release for his methamphetamine trafficking conviction. Garcia’s crime of conviction involved possession of approximately two kilograms of methamphetamine with intent to distribute.
Garcia was arrested on Aug. 22, 2013, in Las Cruces, N.M., on a criminal complaint alleging possession of methamphetamine with intent to distribute following a routine traffic stop. According to the complaint, Garcia was stopped on July 27, 2013, in Doña Ana County, N.M., for speeding. After issuing a citation to Garcia, the officer requested and obtained Garcia’s consent to a search of his vehicle. After a narcotics canine alerted to narcotics, the officer found three bundles containing methamphetamine that were wrapped in cellophane and concealed within the vehicle’s door panels. Garcia subsequently was indicted in a two-count indictment charging him with conspiracy and possession of methamphetamine with intent to distribute.
Garcia pled guilty on Feb. 14, 2014, to possession of methamphetamine with intent to distribute. In entering his guilty plea, Garcia admitted that on July 27, 2013, he possessed 2.06 kilograms of methamphetamine with intent to distribute. He further admitted that on that date he was driving to meet another individual and planning to deliver the methamphetamine to that individual.
This case was investigated by the Border Enforcement Security Taskforce of Homeland Security Investigations and the HIDTA Regional Interagency Drug Task Force (RIDTF)/Metro Narcotics Task Force. The case was prosecuted by Assistant U.S. Attorney Alexander B. Shapiro of the U.S. Attorney’s Las Cruces Branch Office.
The HIDTA Regional Interagency Drug Task Force/Metro Narcotics Task Force is comprised of officers from the Las Cruces Police Department and the Doña Ana County Sheriff’s Office. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
California Charter Bus Company Owners Sentenced to Prison for Tax Fraud and Bank Home Mortgage FraudRead the Press Release
Two San Jose, California, brothers were sentenced to prison for committing tax fraud and bank fraud, Principal Deputy Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney Melinda Haag of the Northern District of California announced.
Fidencio Moreno, 52, was sentenced to serve 41 months in prison and three years of supervised release, and Arturo Moreno, 38, was sentenced to serve 28 months in prison and three years of supervised release. The court also ordered Arturo Moreno to pay $422,962 in restitution and to forfeit $3,328,600 and his interest in two pieces of real property. In January 2015, Elena Moreno, 40, the wife of Fidencio Moreno, was sentenced to serve 22 months in prison and three years of supervised release for her role in the conspiracies as a bookkeeper at the company. Prior to pleading guilty in this case, the three co-defendants collectively paid more than $200,000 in restitution to the Internal Revenue Service (IRS) for losses associated with their conspiracy to defraud the United States by filing false and fraudulent tax returns.
According to court documents, beginning in 2005 and continuing through at least 2010, Arturo, Fidencio and Elena Moreno conspired to defraud the United States by failing to report substantial amounts of gross receipts from their charter bus company, Quality Assurance Travel (QAT), on the federal corporate tax returns for QAT and on their personal income tax returns that they filed with the IRS. The total amount of unreported gross receipts of QAT during those years exceeded $966,908. Arturo and Fidencio Moreno were each 50 percent owners of QAT. The unreported income consisted primarily of cash receipts that were paid by passengers as they boarded the bus, but that were not deposited into the business bank accounts or disclosed to the Morenos’ tax return preparer.
According to court documents, between 2005 and July 2013, Arturo, Elena and Fidencio Moreno also conspired to commit bank fraud and wire fraud by submitting false and fraudulent home mortgage loan applications that overstated the applicants’ income and assets in order to acquire and refinance homes located in San Jose. In total, the defendants fraudulently obtained more than $3.3 million in home loans. After the defendants fell behind on the loan payments, they attempted to avoid foreclosure by submitting false and fraudulent applications to modify these loans. Two of the financial institutions approved the fraudulent applications, reducing the principal due on these loans. One of the four properties was ultimately sold via a short sale in 2013, while another was foreclosed upon in 2014. The total losses to the financial institutions resulting from the foreclosure and short sale exceeded $325,000.
The case was investigated by special agents of IRS-Criminal Investigation. Trial Attorney Todd P. Kostyshak of the Tax Division and Assistant U.S. Attorneys Thomas Moore and Katherine Wong prosecuted the case.
Buffalo Man Pleads Guilty to Heroin Distribution ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y. – U.S. Attorney William J. Hochul. Jr. announced today that Ivan Rosario, 20, of Buffalo, NY, pleaded guilty before U.S. District Court Judge Richard J. Arcara to conspiracy to possess with intent to distribute and to distribute 100 grams or more of heroin. The charge carries a mandatory minimum sentence of five years in prison, a maximum of 40 years, a fine of $5,000,000 or both.Assistant U.S. Attorney Edward H. White, who is handling the case, stated that from 2011 through February 4, 2014, the defendant conspired with others to possess and distribute 100 grams or more of heroin and fentanyl, a Schedule II controlled substance. As part of the conspiracy, Rosario maintained a residence in Buffalo for the purpose of distributing heroin and fentanyl to his customers. The defendant sold the drugs on a daily basis and received cash paid by customers.
The plea was the culmination of an investigation on the part of Special Agents of the Drug Enforcement Administration, under the direction of James J. Hunt, Special Agent in Charge, New York Field Division.
Sentencing is scheduled for May 13, 2015 at 12:30 p.m. before Judge Arcara.
Broward Bank Robbery Suspect Arrested and ChargedRead the Press Release
A Pompano Beach, Florida, resident was arrested and charged in a criminal complaint with bank robbery.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, FBI, Miami Field Office, and Scott Israel, Sheriff, Broward Sherriff’s Office (BSO), made the announcement.
Craig Joseph Naughtin, 43, was arrested by the Broward Sheriff’s Office and the FBI in connection with a bank robbery. Naughtin made his initial appearance in court this morning.
According to the affidavit filed in support of the criminal complaint, on February 3, 2015, a white male, later identified as Naughtin, entered the Wells Fargo Bank in Pompano Beach. Naughtin walked into the bank, approached the victim bank teller and handed the teller a white piece of paper. The teller read the first part of the note that stated “give me all the money in your drawer.” The teller stated she was in fear for her safety and gave the subject a stack of money. Naughtin then fled the bank.
The bank robbery was recorded on Wells Fargo Bank’s video surveillance cameras and the subject was later identified as Naughtin. In a search incident to Naughtin’s arrest, law enforcement officers found $3,561.00, on the defendant as well as the demand note stating “no this is not a joke all the money in the cash draw, no GPS, no dye packs, I’ll be on my way no problems.”
Mr. Ferrer commended the investigative efforts of the FBI, BSO and the South Florida Violent Crimes Task Force for their work on this case. The case is being prosecuted by Assistant U.S. Attorney Randy Katz.
A complaint is only an accusation, and a defendant is presumed innocent unless and until proven guilty.
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.
Box Elder Man Sentenced for Failure to Register as A Sex OffenderRead the Press Release
United States Attorney Brendan V. Johnson announced that a Box Elder, South Dakota, man convicted of Failure to Register as a Sex Offender was sentenced on February 2, 2015, by U.S. District Judge Roberto A. Lange.
Dewey Shane Marrowbone, age 45, was sentenced to 14 months in custody, 5 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Marrowbone was indicted by a federal grand jury on September 16, 2014 for Failure to Register as a Sex Offender, and pled guilty on November 17, 2014.
The conviction stems from Marrowbone’s failure to register and update his sex offender registration between July 4, 2014, and August 20, 2014. Marrowbone was convicted of Sexual Abuse in 2006, and therefore required by federal law to register and update his place of residence.
This case was investigated by the U.S. Marshals Service and the Cheyenne River Sioux Tribe Law Enforcement Division. Assistant U.S. Attorney Mikal Hanson prosecuted the case.
Marrowbone was immediately turned over to the custody of the U.S. Marshals Service to begin serving his sentence.
Boone County man sentenced for role in heroin conspiracyRead the Press Release
CHARLESTON, W.Va. – United States Attorney Booth Goodwin announced today that James Harry Barker, 63, of Ashford, Boone County, West Virginia, was sentenced to 30 months in federal prison, followed by three years of supervised release.
In April 2014, Barker, also known as “Firebug,” pleaded guilty to conspiracy to distribute heroin. On June 6, 2013, officers executed a search warrant at Barker’s residence, and a business he operated. Cash and drug distribution packing material were seized.
Barker stated that the money seized was proceeds from illegal drug distribution. He admitted that he had obtained heroin from a source since June 2012, and distributed hundreds of heroin packets in the Boone County area until summer 2013.
Barker also admitted to supplying his daughter heroin daily while he was distributing. United States District Judge Thomas E. Johnston, who imposed the sentence, commented that was like giving her a gun and telling her to play Russian roulette.
The case was investigated by the United States 119 Drug Task Force. Assistant United States Attorney Haley Bunn was in charge of the prosecution.
This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets and curtailing the spread of opiate painkillers and heroin in communications across the Southern District.
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Bergen County, New Jersey, Man Admits Conspiring to Sell Firearms Purported to Belong to the Family of Saddam HusseinRead the Press Release
NEWARK, N.J. - A New Milford, New Jersey, man today admitted his role in conspiring to sell seven firearms believed to have belonged to the family of Saddam Hussein, U.S. Attorney Paul J. Fishman announced.
Carlos Manuel Quirola, a/k/a “Carlos Quirola-Ordonez,” a/k/a “Manny, 58, pleaded guilty before U.S. District Judge Katharine S. Hayden to Count One of an indictment charging him with conspiracy to transport stolen firearms.
According to documents filed in this case and statement made in court:
In April 2012, law enforcement received information that valuable firearms allegedly belonging to members of the family of the late Iraqi president Saddam Hussein were available for sale. The weapons were believed to be kept in Florida, and Quirola and others attempted to find a buyer for them in New Jersey. The firearms had been appraised at $250,000 to $350,000. Seven firearms were shipped to New Jersey for viewing by potential buyers.
Federal law enforcement officers seized the following firearms in the course of the investigation:
(1) One Coonan Arms Inc., .357 semi-automatic pistol, nickel finish, made in St. Paul, Minn., with gold inlay and a medallion “QS” on left side grip (believed to be the initials of Qusay Saddam Hussein al-Tikriti, the second son of former Iraqi President Saddam Hussein);
(2) One Korth, .357 magnum revolver (six shot) stamped “Made in W. Germany Waffenfabrik Koth Ratzeburg/LBG,” with gold inlay, black finish, wood grips, which displays a drawing of a wild boar;
(3) One Korth, .357 magnum, revolver (six shot) stamped “Made in W. Germany Waffenfabrik Koth Ratzeburg/LBG,” with gold inlay, black finish, wood grips, which displays a drawing of a moose;
(4) One Chinese State Factories type 64 pistol, .32 caliber semi-auto pistol, black finish, with Yemen flag icon on both sides of grip and Arabic writing on the slide;
(5) Two Cosmi, 12 gauge shotguns, break top, single barrel;
(6) One Llama Semiautomatic .45 ACP pistol with gold leaf and gold inlays, hand engraved, bearing the initials “Q.S.”
The count to which the defendant pleaded guilty carries a maximum penalty of five years in prison and a fine of $250,000. Sentencing is scheduled for June 1, 2015.
Two other individuals, Karlo Sauer and Howard Blumenthal, have pleaded guilty to their roles in this conspiracy. Blumenthal has been sentenced, and Sauer is awaiting sentencing.
Another individual, David Ryan is charged by indictment, and a trial date is scheduled for May 11, 2015. The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
U.S. Attorney Fishman credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge George P. Belsky; and Immigration and Customs Enforcement-Homeland Securities Investigation, under the direction of Acting Special Agent in Charge John P. Woods, with the investigation leading to today’s guilty plea.The government is represented by Assistant U.S. Attorney Joyce M. Malliet of the National Security Unit in Newark.
15-048
Defense Counsel: Miles Feinstein Esq., Clifton, N.J.
Quirola, Carlos Indictment
BGF Gang Member Exiled to 9 Years in Prison for Heroin Distribution ConspiracyRead the Press Release
Baltimore, Maryland – U.S. District Judge William D. Quarles, Jr., sentenced Rodney Russell, age 52, of Baltimore, today to nine 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; and Baltimore City State’s Attorney Marilyn J. Mosby.
According to Russell’s plea agreement, beginning sometime in July 2012 and continuing through November 2013 and after, the Russell conspired with others to obtain and distribute heroin in and around the Park Heights and Belvedere neighborhood of Baltimore. During the period of the conspiracy, the investigation showed that Russell was a member of the Black Guerrilla Family (BGF), and received money and drugs from the street level drug distribution shop operated by other members of BGF in the Park Heights and Belvedere neighborhood, as well as selling his own heroin at that location.
During the time of the conspiracy Russell is responsible for the distribution of between one and three kilograms of heroin.
United States Attorney Rod J. Rosenstein commended the DEA, Baltimore Police Department and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney James T. Wallner, who prosecuted the case.
Albuquerque Man Arraigned on Federal Conspiracy, Hobbs Act and Firearms ChargesRead the Press Release
ALBUQUERQUE – Raymond Castillo, 25, of Albuquerque, N.M., was arraigned this morning on an indictment charging him with violating the Hobbs Act and the federal firearms laws. Castillo entered a not guilty plea to the charges against him. Castillo will remain in federal custody pending trial of this case which has yet to be scheduled.
Castillo was arrested on Dec. 12, 2014, on a criminal complaint charging him with conspiracy to rob a business involved in interstate commerce at gunpoint in violation of the Hobbs Act. The criminal complaint alleged that Castillo and an unidentified co-conspirator robbed a convenience store located at 1111 Lomas Blvd. NW in Albuquerque at gunpoint on Dec. 7, 2014. It further alleges that the co-conspirator, who was wearing a hooded sweatshirt and a bandana that covered his face, shot and injured the store clerk during the robbery, and that Castillo drove the co-conspirator away from the scene of the robbery.
On Jan. 21, 2015, a federal grand jury returned a five-count indictment charging Castillo and five co-defendants with commercial armed robbery and firearms charges. The charges in the indictment are unrelated to the charges in the criminal complaint.
Count 1 of the indictment charges Castillo, Daniel Maestas, 34, Johnny Ramirez, 30, Frank Gallegos, 29, Reyes Lujan, 26, and Henry Lujan, 21, with conspiracy to violate the Hobbs Act. Count 2 alleges that the six men interfered with interstate commerce by robbing a Wal-Mart Store located in Bernalillo County, N.M., on Oct. 29, 2014. Count 3 charges Castillo with discharging a firearm during the robbery of the Wal-Mart store, and Count 4 charges Maestas with using and carrying a firearm during that robbery. Count 5 charges Ramirez, Gallegos, Reyes Lujan and Henry Lujan with aiding and abetting the use of firearms during the robbery.
Gallegos was arraigned on the indictment on Feb. 3, 2015, after he was transferred from state custody to federal custody to face the charges in this case. Gallegos entered a not guilty plea to the indictment and was ordered detained pending trial. The remaining four defendants are in state custody and will be transferred to federal custody to face the charges in the indictment.
With the exception of Castillo, the defendants each face a statutory maximum penalty of 20 years in prison if convicted on Counts 1 and 2, the conspiracy and Hobbs Act charges. With the exception of Castillo, the defendants each face a mandatory five-year prison sentence if convicted of using and carrying a firearm or aiding and abetting that crime. The five-year sentence must be served consecutive to any sentence imposed on the conspiracy and Hobbs Act charges.
On Feb. 1, 2015, the United States filed a prior felony information against Castillo under 18 U.S.C. § 3559(c), the federal “three strikes” law, based on Castillo’s prior serious felony convictions. Consequently, if convicted of any of the three charges against him, Castillo faces the enhanced sentence of mandatory life imprisonment. If convicted of the crimes charged in the criminal complaint, Castillo faces a statutory maximum penalty of 20 years in prison on the Hobbs Act count and a mandatory ten year prison sentence for aiding and abetting the discharge of a firearm during a crime of violence. The ten-year sentence must be served consecutive to any sentence imposed on the Hobbs Act charges.
Charges in indictments are merely accusations. All criminal defendants are presumed innocent unless proven guilty beyond a reasonable doubt.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Albuquerque Police Department. Assistant U.S. Attorneys Norman Cairns and Samuel A. Hurtado are prosecuting this case.
This case is being prosecuted as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
Akron Man Accused of Defrauding Agencies out of nearly $350,000Read the Press Release
An 11-count federal indictment was filed charging Akron man with defrauding federal and state agencies out of nearly $350,000 by claiming he was disabled while actually working as a home-repair contractor, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
James Van Buskirk, 53, faces charges of theft of government funds, wire fraud, and fraudulently securing Social Security benefits.
"These programs exist to help those who are truly disabled and cannot work," Dettelbach said. "We will continue to prosecute those who abuse programs like these for their own enrichment."
The indictment alleges Van Buskirk stole $75,823 in Social Security benefits designated for the truly disabled by reporting complete disability while still performing physical labor as a home repair contractor. He similarly falsely applied for and received $269,932 from the Ohio Bureau of Worker’s Compensation (OBWC) through the same scheme to defraud.
Van Buskirk executed this scheme from approximately November 2002 through April 2014, according to the indictment.
The indictment also alleges that Van Buskirk concealed and failed to disclose his self-employment, knowing that it would affect his right to Social Security disability benefits.
Assistant United States Attorney Matthew J. Cronin is prosecuting the case following an investigation by the SSA Office of Inspector General and the OBWC.
If convicted, the court will determine the defendant’s sentence after a review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum. In most cases, it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
Ageless Salud De Los Hombres, LLC Pagara $1.6 Millones Al Gobierno Por Sobrefacturarle Al Medicare Y TricareRead the Press Release
Memphis, Tenn. - Ageless Salud de los Hombres, LLC (AMH) pagarà $1.6 millones al gobierno para resolver las acusaciones en la que se le facturó al Medicare y Tricare por servicios de evaluación y manejo (consultas) médicas innecesarias mientras administraba inyecciones de testosterona. AMH tiene aproximadamente 30 localidades en todo Estados Unidos donde opera clínicas con testosterona.
Bajo la ley federal, Medicare y Tricare se le reembolsa a los proveedores médicos sólo por los procedimientos que son médicamente necesarios. Los Estados Unidos sostiene que desde 2009 hasta el 2013, AMH facturó por visitas innecesarias al consultorio médico cada vez que se administraba una inyección de testosterona.
Las denuncias se resolvieron mediante el acuerdo donde se plantearon hoy por primera vez en una demanda presentada en contra del acusado en virtud de qui tam, o del denunciante, de la Ley de Reclamos Falsos. La ley permite a los ciudadanos privados con conocimiento de fraude a interponer una demanda civil en nombre del gobierno y contribuir en cualquier recuperación.
Ademàs del pago de $1.6 millones, AMH entró en un acuerdo de integridad corporativa con el Departamento de la Oficina del Inspector General de Servicios Humanos y de Salud destinado a impedir la conducta ilegal en el futuro. El acuerdo requiere mejorar la rendición de cuentas y monitoreo de actividades para ser llevadas a cabo por revisores internos y externos independientes.
"Este acuerdo demuestra nuestro compromiso de asegurar que los fondos de Medicare y Tricare no sean desviados por las empresas tomando màs en consideración las ganancias que la atención legítima del paciente", declaró el Fiscal Federal Stanton. "Junto con nuestros socios de las fuerzas del orden, vamos a seguir para hacer de la Ley de Reclamos Falsos una prioridad."
El caso se subtitula Estados Unidos ex rel Booth y Scallorn vs. Ageless Salud de los Hombres, LLC, Caso No. 13-CV-02490-SHL (W.D. Tenn.) Las reclamaciones resueltas por este acuerdo son sólo imputaciones, y no ha habido ninguna determinación del cargo.
Esta investigación fue realizada por el Departamento de Salud y Servicios Humanos del Inspector General, la Oficina Federal de Investigaciones y el Departamento de Defensa Servicio de Investigación Criminal de los Estados Unidos. Este caso fue procesado por el gobierno por los Fiscales Federales Auxiliares Stuart Canale y William Siler.
Version en Inglés
Ageless Men’s Health, LLC to Pay $1.6 Million to the Government for Overbilling Medicare and TricareRead the Press Release
Memphis, Tenn. – Ageless Men’s Health, LLC (AMH) will pay $1.6 million to the government to resolve allegations that it billed Medicare and Tricare for medically unnecessary evaluation and management services (office visits) while administering testosterone replacement therapy shots. AMH has approximately 30 locations throughout the United States and operates testosterone replacement therapy clinics.
Under federal law, Medicare and Tricare reimburse medical providers only for procedures that are medically necessary. The United States contends that from 2009 through 2013, AMH billed for a medically unnecessary office visit each time a testosterone shot was administered.
The allegations resolved by today’s settlement were first raised in a lawsuit filed against the defendant under the qui tam, or whistleblower, provisions of the False Claims Act. The act allows private citizens with knowledge of fraud to bring civil actions on behalf of the government and to share in any recovery.
In addition to the $1.6 million payment, AMH entered into a Corporate Integrity Agreement with the Department of Health and Human Services’ Office of Inspector General intended to deter wrongful conduct in the future. The agreement requires enhanced accountability and monitoring activities to be conducted by both internal and independent external reviewers.
“This settlement demonstrates our commitment to ensuring that Medicare and Tricare funds are not siphoned off by companies more concerned with bottom line profits than legitimate patient care,” stated U.S. Attorney Stanton. “Together with our law enforcement partners, we will continue to make enforcement of the False Claims Act a priority.”
The case is captioned United States ex rel. Booth and Scallorn v. Ageless Men’s Health, LLC, Case No. 13-CV-02490-SHL (W.D. Tenn.) The claims settled by this agreement are allegations only, and there has been no determination of liability.
This investigation was conducted by the United States Department of Health and Human Services Office of the Inspector General, the Federal Bureau of Investigation and the Department of Defense Criminal Investigative Service. This case was prosecuted for the government by Assistant United States Attorneys Stuart Canale and William Siler.
Spanish Version
7 Charged in Pasadena Bank RobberyRead the Press Release
HOUSTON – A federal grand jury has returned a two-count indictment against seven local men in connection with the armed robbery of the Shared Resources Credit Union at 2102 SH 225 in Pasadena on July 28, 2014, announced U.S. Attorney Kenneth Magidson.
Raynard Gray, 31, Leroy Carlton Richardson, 34, Howard Bernard Glaze, 22, Christopher Braziel, 27, and Kwhun Dominique Johnson, 22, were taken into custody last week by local authorities and are expected to make an initial appearance before a U.S. magistrate judge in Houston in the near future. Sonny Floyd Pervis, 25, has been in custody in Louisiana on unrelated charges and is expected to be transferred to Houston to answer these charges in the near future. The seventh defendant - Keith Derwin McGee, 24 - is currently a fugitive and a warrant remains outstanding for his arrest.
Crime Stoppers is offering up to $5,000 for information leading to the charging and arrest of McGee. If you have information about him, please call the Crime Stoppers tip line at 713-222-TIPS (8477) or the Houston office of the FBI at 713-693-5000.
Anyone with information about his whereabouts is asked to contact the FBI at 713-693-5000.
All seven men are charged with aiding and abetting bank robbery, which carries a maximum 25-year-term of federal imprisonment and a possible $250,000 maximum fine, upon conviction.
Gray, Pervis, Richardson, Glaze, McGee and Braziel were also charged with aiding and abetting the use and carrying of a firearm during and in relation to a crime of violence. If convicted, they will each face a minimum of seven years, which must be served consecutively to any other sentence imposed for the underlying crime.
This charges are the result of a joint investigation by the Pasadena Police Department and the FBI Violent Crimes Task Force, which includes such agencies as the Harris County Sheriff’s Office and Houston Police Department, with assistance from the Montgomery County and Fort Bend County Sheriff’s Offices. Assistant U.S. Attorney Richard D. Hanes 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.20 Facing Federal Drug Charges Filed in ErieRead the Press Release
ERIE, Pa. – Twenty individuals from various locations in the United States have been indicted by a federal grand jury in Erie and/or have been arrested on charges of violating federal drug laws, retaliation against a witness or informant, and money laundering, United States Attorney David J. Hickton announced today.
“Today’s actions demonstrate that our strategy to identify, disrupt and dismantle criminal drug trafficking organizations is relentless,” stated U.S. Attorney Hickton. “This prosecution will go a long way toward making the citizens of Western Pennsylvania safer.”
The first, 16-count Indictment, named the following individuals who have been arrested:
Raul Gerardo Ruiz-Maldonado, 41, Houston, Texas;
Maria Remedios Urrutia, 23, Erie, Pa.;
Marco Antonio Melchor, 34, Erie, Pa.;
Dana Scott Ball, 37, Waterford, Pa.;
Jorge Daniel Montes-Cervantes, 25, Erie, Pa.;
Jenny Eileen Urrutia, 34, Elkhart, Ind.;
Reyna Urrutia, 35, Elkhart, Ind.;
Christina Urrutia Rojas, 29, Edinboro, Pa.;
Sammar Aimee Melchor, 33, Erie, Pa.;
Ancelmo Ayala, 40, Elkhart, Ind.;
Jose Merced Gomez Murillo, 54, Columbus, Ohio;
Oscar Mata Garcia, 26, Forrest City, Ark.;
Safa Gobah, 21, Forrest City, Ark;
Juan Jose Ramos, 28, Akron, Ohio;
Robert Jovaun Harris, 36, Erie, Pa.;
Efrain Ramon Pagan Rosario, 24, Erie, Pa.; and
Nathanael Ortiz Andino, 28, Erie, Pa.According to the Indictment and additional information presented in Court, from June 2013 through January 2015, the defendants engaged in a conspiracy to distribute and possess with intent to distribute in excess of 150 kilograms of cocaine, ounces of high purity methamphetamine, and ounces of heroin. In addition, according to the Indictment and information presented in Court, multiple ounces of methamphetamine and heroin were distributed from the premises at 2709 West 12th Street, Erie, Pa., between August and December 2013 and multiple kilograms of cocaine and quantities of methamphetamine were seized in Erie in December 2013. In addition, according to the Indictment, a member of the conspiracy allegedly threatened to harm an individual for giving information to law enforcement. In September and October 2014, according to the Indictment, members of the conspiracy distributed more than 500 grams of cocaine, and defendant Marco Melchor engaged in money laundering activity in the purchase of a BMW vehicle.
The law provides for a maximum total sentence for all counts of life in prison, a fine of $38,250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
The second, two-count indictment, named Marco Antonio Melchor, 34, Erie, Pa., and Wilson Enrique-Reyes, 32, Lawrence, Mass., as defendants.
According to this Indictment, from in and around July 2014 to in and around January 2015, the defendants conspired to possess with intent to distribute and to distribute five kilograms or more of cocaine. In addition, they are charged with using a communication facility in the commission of a drug trafficking crime.
The law provides for a maximum total sentence of life in prison, a fine of $4,250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
The final, one-count indictment, named Dana Scott Ball, 37, William Condon, Jr., 26, Erie, Pa., and Vincent Jamal Carter, 37.
According to this Indictment, from in and around September 2013 to in and around January 2015, the defendants conspired to possess with intent to distribute and to distribute one hundred kilograms or more of a mixture and substance containing a detectable amount of marijuana.
The law provides for a maximum total sentence of 40 years in prison, a fine of $5,000,000 or both for each defendant. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant United States Attorney Marshall J. Piccinini is prosecuting this case on behalf of the government.
Homeland Security Investigations, the Drug Enforcement Administration, the Pennsylvania State Police, U.S. Border Patrol, the Internal Revenue Service, Criminal Investigation; the Pennsylvania Office of Attorney General Organized Crime Section, the U.S. Postal Inspection Service, the U.S. Marshals Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the City of Pittsburgh Bureau of Police and the Allegheny County District Attorney’s Detectives conducted the investigation leading to the indictments in these cases.
In addition to the indictments and arrests announced today, law enforcement operations as part of the investigation commenced at nine residences in Erie, Pa., one residence in Waterford, Pa., one residence in Conneaut Lake, Pa., one residence in Pittsburgh, Pa., one garage in Erie, Pa., three business locations in Erie, Pa., one business location in Pittsburgh, Pa.. Additional law enforcement activity occurred in Texas, Ohio, Indiana and Massachusetts. In addition, as part of today’s law enforcement operation, 20 vehicles were seized.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Tuesday 3 February 2015
Worley Women Plead Guilty in Theft from Benewah MarketRead the Press Release
COEUR D'ALENE B Camille Ellen Desautel, 45, and Twilla Marie St. Pierre, 37, both of Worley, Idaho, pleaded guilty today to theft from the Benewah Market, a Coeur d'Alene tribal organization, U.S. Attorney Wendy J. Olson announced. Desautel and St. Pierre were indicted by a federal grand jury in Coeur d'Alene on October 21, 2014.
According to court documents, Desautel and St. Pierre admitted that on August 21, 2014, they, along with a co-defendant, entered the closed market and stole cash and checks totaling approximately $22,650.
The charge of theft from a tribal organization is punishable by up to five years in prison, a maximum fine of $250,000, and up to three years of supervised release.
Sentencing for Desautel and St. Pierre is set for April 28, 2015, before U.S. District Judge Edward J. Lodge at the federal courthouse in Coeur d'Alene. Co-defendant Adam Lee SiJohn pleaded guilty on December 10, 2014, and will be sentenced on March 3, 2015.
The case was investigated by Coeur d’Alene Tribe and the Federal Bureau of Investigation.