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13 March 2015
Hayward Tax Return Preparer Pleads Guilty to Preparing False Tax ReturnsRead the Press Release
OAKLAND – Runnveer Singh pleaded guilty today to aiding and assisting in the filing of a false tax return, announced U.S. Attorney Melinda Haag and Internal Revenue Service, Criminal Investigation, Special Agent in Charge José M. Martinez.
In pleading guilty, Singh, 53, of Hayward, admitted he has prepared tax returns for approximately six years from 2008 through 2013. He obtained clients from the local Fijian community and prepared thousands of tax returns during that period. Singh prepared tax returns for the tax years 2009 through 2011 that claimed both false and ineligible deductions and credits including unreimbursed employee expenses, charitable deductions, Schedule C expenses, education credits and personal property tax deductions. By including both false and ineligible items on his clients’ tax returns, Singh caused at least $130,435 in inflated tax refunds to be issued.
On November 14, 2012, during the execution of a search warrant at his home, Singh admitted to IRS Special Agents that he knowingly prepared false tax returns in order to obtain returning customers. Then, after the search warrant was executed, Singh instructed one of his clients to submit both false and ineligible information to an IRS Revenue Agent during the audit of the client’s 2010 income tax return. Singh admitted he did so in an attempt to justify both false and ineligible business expenses on his client’s 2010 tax return.
Singh was charged in an indictment filed on March 25, 2014 with 24 counts of aiding and assisting in filing false tax returns, in violation of Title 26, U.S.C § 7206(2). He pleaded guilty to one count. Singh’s sentencing is scheduled for July 31, 2015 before the Honorable Jon S. Tigar, United States District Judge in San Francisco. The maximum penalty for one count of assisting in filing tax returns in violation of Title 26, U.S.C § 7206(2) is three years in prison and a fine of $250,000.
Assistant US Attorney Thomas Moore is prosecuting the case. The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigation.
Georgia Man Sentenced for Part in Heroin ConspiracyRead the Press Release
A Georgia man, convicted of Conspiracy to Distribute Heroin and Interstate and Foreign Travel or Transportation in Aid of Racketeering Enterprises, was sentenced to 24 months in federal prison on March 13, 2015, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Javier De Jesus Rodriguez, 31, of Norcross, Georgia, received a 21 month sentence for offenses which occurred in the Southern District of Illinois, Georgia, and the country of Columbia. Rodriguez had previously pled guilty to those offenses on December 17, 2014. Following release from imprisonment, Rodriguez will serve a 3 year term of supervised release. Watson was also ordered to pay a $200 fine and a $200 special assessment.
Evidence in support of this prosecution was obtained in an investigation which was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF initiative is designed to bring federal, state, and local law enforcement agencies and resources together to identify, target and dismantle large national and international drug trafficking organizations. Agencies participating in this case include the Drug Enforcement Administration, Internal Revenue Service, Criminal Investigations, and the United States Marshals Service,. This case was prosecuted by Assistant United States Attorney Deirdre A. Durborow.
Four Guilty in Smuggling Conspiracy Resulting in DeathRead the Press Release
McALLEN, Texas – With the guilty plea of Julia Resendez, 33, four people have now been convicted for their respective roles in an alien smuggling conspiracy that resulted in the death of two Guatemalan nationals, announced U.S. Attorney Kenneth Magidson.
Resendez, of Sullivan City, entered a guilty plea today, while Juan Manuel Garcia, 18, Eloy Mendoza Jr., 26, and Jose Manuel Lovato-Balleza, 23, pleaded guilty March 11, 2015. Garcia and Mendoza are also residents of Sullivan City, while Lovato is Mexican national. Garcia pleaded guilty to conspiracy to transport aliens and to transporting aliens, resulting in death. Mendoza, Lovato and Resendez were convicted of conspiracy to harbor aliens.
On Oct. 2, 2014, U.S. Border Patrol (BP) agents observed a truck appear to be transporting illegal aliens near Sullivan City. Garcia was driving and attempted to evade agents. He soon lost control of the vehicle on a caliche road, hitting an embankment and ejecting the majority of his passengers. BP agents responded immediately and observed Garcia and 11 illegal aliens at the scene of the rollover where one female Guatemalan national was found deceased. The majority of the other aliens had severe injuries and had to be hospitalized. Within a few days, a male Guatemalan national passed away as a result of his injuries sustained in the rollover.
Based on their investigation, law enforcement was able to determine that the aliens involved in the rollover had been harbored in two alien stash houses located in Sullivan City. Agents discovered 15 aliens at a house on Huisache St. and another 16 were being harbored at a house on Ebony St. Mendoza and Lovato were determined to be the caretakers of the aliens found in the Huisache house, while Resendez was the caretaker in the Ebony house. Two of the aliens that Resendez was harboring were visibly injured and admitted to being in the rollover and fleeing afterwards. Both of these aliens indicated that they had been harbored by Mendoza and Lovato at the Huisache residence prior to the rollover.
The defendants will remain in custody pending sentencing, which is set for May 26, 2015, before U.S. District Judge Randy Crane. At that time, Garcia faces of up to life in federal prison, while Mendoza, Lovato and Resendez face up to 10 ten years imprisonment. All also face a potential $250,000 maximum fine.
The charges are the result of an investigation by Homeland Security Investigations, BP and the Texas Department of Public Safety. Assistant U.S. Attorney David A. Lindenmuth is prosecuting the case.Former Millvale Police Officer Sentenced for Tasering Handcuffed ManRead the Press Release
PITTSBURGH – Nicole Murphy, a resident of Pittsburgh, Pennsylvania, has been sentenced in federal court to three years probation. The first three months of the sentence will be served in home confinement, followed by nine months of in-home detention. The sentence also requires that the defendant serve 100 hours of community service for each year of probation, and that the community service consist of outreach to law enforcement about the use of excessive force and the consequences of using excessive force. This sentence was imposed on the defendant for her conviction of deprivation of rights under color of law, United States Attorney David J. Hickton announced today.
United States District Judge Arthur J. Schwab imposed the sentence on Nicole Murphy, 31. On Sept. 21, 2012, Murphy, while acting under color of law as a police officer with the Millvale Police Department, deprived an individual identified as Thomas Smith of the constitutional right to be free from unreasonable force, by deploying a taser in both drive and probe-stun modes on Smith’s person while he was handcuffed behind his back and seated on the floor of the squad room at the Millvale Police Department.
Assistant United States Attorneys Carolyn J. Bloch and Cindy K. Chung prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation for the investigation leading to the successful prosecution of Murphy.
Former Kentucky Man Sentenced for Receipt of Child PornRead the Press Release
NORFOLK, Va. – Douglas Lawrence True, 23, formerly of Owensboro, KY, was sentenced today to 20 years in prison, followed by a life term of supervised release for receiving child pornography.
Dana J. Boente, United States Attorney for the Eastern District of Virginia and Susan E. Triesch, Special Agent-in-Charge of the Naval Criminal Investigative Service Norfolk Field Office, made the announcement after sentencing by United States District Judge Mark S. Davis.True pled guilty to the charge on November 10, 2014. According to court documents, True, an active duty sailor, came to the attention of investigators based upon the improper use of a Navy laptop computer. During an interview with True, the command developed probable cause to seize and search True’s cellphone. Investigators forensically analyzed the cellphone and found images of child pornography. In addition, agents learned that True was communicating with many different minors and enticing them to send explicit photos of themselves to him. Agents also found messages between True and his co-defendant, Rebecca Gibbs. In these communications, True convinced Gibbs to create child pornography videos and images and send them to him.
Rebecca Gibbs pleaded guilty to production of child pornography on September 30, 2014 and was sentenced on January 5, 2015 to 17 ½ years in prison, followed by a life term of supervised release.
This case was investigated by the Naval Criminal Investigative Service. Assistant U.S. Attorney Joseph L. Kosky and Special Assistant United States Attorney Alyssa Nichol prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:14-cr-97.Former Investment Manager Employee Pleads Guilty in Manhattan Federal Court to Obstruction of Justice and Perjury ChargesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that STEVEN HART pled guilty today to obstruction of justice and perjury relating to an investigation that the U.S. Securities and Exchange Commission (the “SEC”) had conducted into potential violations of the federal securities laws. HART, who was employed at an investment management firm headquartered in Englewood Cliffs, New Jersey (the “Investment Firm”), lied in sworn testimony to the SEC that he had obtained consent from the president of the Investment Firm (the “Investment Firm President”) to conduct match trades between a fund managed by the Investment Firm and a fund controlled and owned in part by HART. Moreover, when representatives of the SEC called the Investment Firm in an attempt to speak with the Investment Firm President, HART, on three occasions, answered the phone and pretended to be either the Investment Firm President or another employee. HART entered his guilty plea today before the Honorable Katherine P. Failla.
Manhattan U.S. Attorney Preet Bharara said: “Steven Hart went to great lengths to try to derail and avoid an investigation into his trading conduct. But, as his plea today shows, no one is above the law, including the law that governs investigations, and obvious attempts to change the course of a legal investigation will not be tolerated.”
According to the Information filed in Manhattan federal court and statements made during today’s proceeding:
HART worked at the Investment Firm, which managed several funds. HART, who reported directly to the Investment Firm President, served as a portfolio manager at the firm and, in that capacity, exercised trading authority over the brokerage accounts for one of the funds managed by the Investment Firm (the “Fund”). At the same time, HART also controlled and directed Octagon Capital Partners, LP (“Octagon”), a private investment fund with its principal place of business in New York, New York. Through Octagon, HART invested his own money and the money of several of his associates.
In or about 2009, the SEC was investigating HART’s trading activities at the Investment Firm (the “SEC Investigation”). First, the SEC was investigating whether HART, in his capacity as a portfolio manager at the Investment Firm, had conducted improper “match trades” or “cross trades” between his personal fund, Octagon, and the Fund. The SEC was also investigating whether HART had traded in securities based on material nonpublic information (“MNPI”) relating to confidentially marketed securities offerings – information that HART had obtained while being solicited to invest in these offerings.
As part of this investigation, SEC officials, among other things, issued a subpoena to the Investment Firm, care of the Investment Firm President, seeking the production of several different categories of documents. HART received the subpoena at the Investment Firm before it was seen by any other employee and produced documents to the SEC in New York, New York, without (1) informing anyone else at the Investment Firm about the subpoena, or (2) informing the SEC that it was HART alone who responded to the subpoena.
Moreover, in the course of providing sworn testimony to the SEC, HART made several materially false statements. He falsely testified that the Investment Firm President had agreed that HART should conduct match trades involving the Fund as part of an investment strategy for the Fund. HART also falsely testified that he and the Investment Firm President had discussed the SEC Investigation, and that the Investment Firm President was aware that HART had been subpoenaed to testify before the SEC.
On multiple occasions, HART impersonated other employees of the Investment Firm during telephone conversations with the SEC. Specifically, on December 8, 2009, an SEC attorney called the Investment Firm to speak with the firm’s President about the SEC Investigation. HART received the phone call and pretended to be another employee of the Investment Firm. The SEC attorney asked HART, who was pretending to be another employee, to ask the Investment Firm President to return the call, which HART failed to do. The following day, the same SEC attorney again called the Investment Firm to speak with the firm’s President. HART again received the phone call and, on this occasion, pretended to be the Investment Firm President. During that call, HART, pretending to be the Investment Firm President, falsely stated that: (1) the Investment Firm President was aware that HART had engaged in improper trading activity, but nevertheless wanted HART to remain an employee of the Investment Firm; and (2) the Investment Firm President was aware of, and had approved, Hart’s match trading activity as a means for the Fund to dispose of restricted shares of stock.
Finally, on December 11, 2009, the same SEC attorney, along with a second SEC attorney, called the Investment Firm to speak with the firm’s President. HART again received the phone call and again pretended to be the Investment Firm President. During that call, HART, speaking as the Investment Firm President, falsely stated to the SEC attorneys that: (1) HART’s match trading activity was an intentional strategy of the Investment Firm to take a loss on the trading in exchange for the ability to sell otherwise restricted shares of stock; (2) HART was still a valued employee of the Investment Firm who had earned the Investment Firm far more than whatever amount HART had gained through match trading; and (3) HART had fully disclosed to the Investment Firm President that HART had traded based on MNPI and that this was a one-time mistake that would not happen again. Each of these statements was false.
HART, 42, of New York, New York, faces a maximum sentence of ten years in prison. He is scheduled to be sentenced by Judge Failla on July 2, 2015. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the Judge.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Jason H. Cowley is in charge of the prosecution.
Former Des Moines, Iowa, Police Officer Convicted of Civil Rights ViolationRead the Press Release
Colin Boone, previously employed as an officer of the Des Moines, Iowa, Police Department, was convicted today on the charge of deprivation of rights under color of law for assaulting a civilian during the course of an arrest on Feb. 19, 2013, announced Acting Assistant Attorney General Vanita Gupta of the Civil Rights Division and U.S. Attorney Nicholas A. Klinefeldt of the Southern District of Iowa. The evidence presented at trial showed that Boone ran up to an arrestee and kicked him in the face while he was being held on the ground, face-down, by three other officers. The evidence also showed that Boone’s kick knocked out the victim’s front teeth and broke his nose.
“The Department of Justice is proud to stand behind the fine law enforcement officers with the Des Moines Police Department who honored their badges by providing truthful information about the defendant’s criminal actions,” said Acting Assistant Attorney General Gupta. “We are committed to working with our law enforcement partners to hold accountable officers such as former officer Boone, who engage in willful uses of excessive force.”
“This was a violent, criminal action” stated U.S. Attorney Klinefeldt. “Defendant Colin Boone kicked a defenseless man in the face. He will now be held responsible in the same way as all of the defendants he has helped put in jail. This was also a betrayal of trust: former police officer Colin Boone betrayed the trust of the public he served and of the officers with whom he served.”
The charge of deprivation of rights under color of law carries a statutory maximum sentence of ten years in prison and a maximum fine of $250,000. The sentencing hearing will be determined at a later date and Boone remains out of custody pending sentencing.
Today’s conviction is the result of an investigation conducted by the FBI’s Des Moines Resident Office. Prosecution of this matter was handled by the Justice Department’s Civil Rights Division and the U.S. Attorney’s Office in the Southern District of Iowa.
Former Charter School Director Convicted of Embezzling Government FundsRead the Press Release
Contact Person: Winston Holliday (803) 929-3000
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Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that a jury convicted Benita Dinkins-Robinson, age 40, of Bishopville, South Carolina, after a ten day trial in federal court. Dinkins-Robinson was convicted of two counts of embezzling government funds (18 U.S.C. § 641). United States Chief District Judge Terry Wooten of Columbia presided over the trial. He will impose sentence after he has reviewed the presentence report, which will be prepared by the U.S. Probation Office.
Attorneys presented evidence at the trial and during the asset forfeiture phase of the case that from 2007 to 2013, Dinkins-Robinson embezzled more than a million dollars in federal funds supplied by United States Department of Agriculture and the United States Department of Education that were intended to be used for the Mary L. Dinkins Higher Learning Academy, a charter school Dinkins-Robinson established in 2005. The jury also determined that Dinkins-Robinson must forfeit over $750,000 in annuities that she purchased while serving as the Executive Director of the charter school as well as her share in a Camden house that she owned.
Mr. Nettles stated that Dinkins-Robinson faces a maximum sentence of ten years’ imprisonment for each count.
The conviction was the result of an investigation by the Federal Bureau of Investigation. Assistant United States Attorneys Winston Holliday and Ben Garner of the Columbia office handled the case.Former Bloomington Parks Department office manager indicted for fraudRead the Press Release
INDIANAPOLIS – Josh J. Minkler, United States Attorney, announced today that federal criminal charges have been filed against a former office manager for the City of Bloomington Parks and Recreation Department. Judith A. Seigle, 51, of Gosport, Indiana, was indicted by a federal grand jury on a wire fraud charge alleging that Seigle executed a scheme to steal over $400,000 in funds intended for Parks Department projects and programs.
“The citizens of Bloomington deserve better from their paid city employees,” said Minkler. “This is the second employee in less than one year charged with stealing city funds. Public officials need to serve the public and not serve themselves. The projects and programs of the Park’s Department exist to benefit the citizens of Bloomington. The indictment alleges that Defendant Seigle used funds intended for the parks as a piggy bank to benefit herself.”
Seigle, in her position as office manager, was responsible for maintaining certain books and records for the Parks Department as well as books and records for the Bloomington Community Parks and Recreation Foundation, a 501(c)(3) charitable organization, which exists to provide support for Bloomington’s parks and community programs. The indictment alleges that from approximately 2001 to October 2014, she diverted, embezzled, and misappropriated approximately $430,000 in funds from the Foundation and Parks Department for her personal use and benefit. It is alleged that Seigle used Foundation credit cards to make purchases for her personal use and that she caused numerous funds transfers from Foundation and Parks Department bank accounts to her personal bank and credit card accounts. It is further alleged that, to conceal her fraudulent scheme, Seigle created false bank statements and, for several years on a monthly basis, provided them to the Foundation’s executive director and others.
According to Senior Litigation Counsel Steve DeBrota and Assistant United States Attorney Nick Linder, who are prosecuting this case for the United States, Seigle faces up to 20 years in prison if convicted.
An indictment is only a charge and not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which time the government must prove guilt beyond a reasonable doubt.
The investigation was conducted by the FBI and the Bloomington Police Department, with assistance from the Monroe County Prosecutor’s Office.
Separately, Justin Wykoff, former Manager for Engineering Services for the City of Bloomington, pled guilty in federal court today to 11 counts of wire fraud for receiving kickbacks from the operators of a local concrete company and awarding City contracts to the company.
In pleading guilty, Wykoff admitted that he was responsible for bidding and awarding contracts for public works projects in the City, like road paving and sidewalk construction. Between April 2011 to February 2014, Wykoff solicited and received substantial cash bribes and kickbacks from Roger Hardin and Zach Hardin, who operated a company called Reliable Concrete and Construction. In exchange for the kickbacks, Wykoff assisted the Hardins in obtaining over $800,000 in City construction contracts and payments for Reliable Concrete. Wykoff estimated project costs and prepared bid proposals, using his inside information to ensure Reliable Concrete was the low bidder. In some cases, Wykoff awarded City contracts to Reliable Concrete outright without obtaining bids from other contractors. Wykoff also authorized City payments to Reliable Concrete totaling approximately $807,000. Of that amount, approximately $300,000 was for work that was never completed by Reliable Concrete.
Wykoff and the Hardins took steps to conceal their scheme by creating false Reliable Concrete bid proposals after the fact. On February 17, 2014, Wykoff went to Roger Hardin’s home and created multiple bid proposal forms for projects that the City of Bloomington had already paid Reliable Concrete for – even though Reliable Concrete had not performed the work. The forms were backdated to coincide with the dates that the work was supposed to have taken place. Wykoff initialed or signed these forms as if he had approved the bids and then planted copies of the forms in his office in an attempt to further conceal the scheme.
FBI Special Agent in Charge W. Jay Abbott stated, “Public corruption is one of the FBI’s top investigative priorities and FBI Agents remain committed to pursuing those individuals that violate the public’s trust.”
According to Senior Litigation Counsel Steve DeBrota and Assistant United States Attorney Nick Linder, who are prosecuting the case for the government, if the court accepts Wykoff’s plea agreement, the court could impose a sentence of imprisonment of between 51 and 63 months and order full restitution of $446,335.26 to the City of Bloomington. The court, however, has the authority to make the final determination of the sentence.
The investigation was conducted by the FBI and the Bloomington Police Department.
Former Bank President Pleads Guilty to Bank Fraud and Money LaunderingRead the Press Release
PENSACOLA, FLORIDA – Michael “Sean” Davis, 43, of Crestview, pled guilty today to conspiracy to commit bank and mail fraud, money laundering, making false statements to a federally insured institution, and fraudulently benefitting from a loan by a federally insured institution. The plea was announced by Pamela C. Marsh, United States Attorney for the Northern District of Florida.
Between January 2006 and January 2011, while the president of Premier Community Bank of the Emerald Coast, Davis devised a scheme to defraud Premier Community Bank, Bank of America, and Beach Community Bank. As a part of the scheme, Davis solicited a straw buyer to submit false documents to purchase real properties via short sales from Bank of America. At Davis’s direction, the straw buyer then sold the properties the same day to third-party buyers. Davis authorized and approved loans from Premier Community Bank to these third-party buyers for the purchase of two of these properties from Davis’s straw buyer. As a result of these loans, Davis received approximately $297,408 through his company, MSD Investments. Through this scheme, Davis discharged approximately $743,425 in debt he owed to Bank of America for mortgage loans issued to Davis personally.
Sentencing is scheduled for May 28, 2015, before Chief United States District Judge M. Casey Rodgers at the United States Courthouse in Pensacola, Florida.
The case was investigated by Internal Revenue Service-Criminal Investigation with assistance from the Federal Deposit Insurance Corporation’s Office of Inspector General, the Okaloosa County Sheriff’s Office as part of the Northwest Florida Financial Crimes Task Force, and the United States Treasury Department’s Special Inspector General for the Troubled Asset Relief Program. This case is being prosecuted by Assistant United States Attorney Tiffany H. Eggers.
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.
Florida Man Admits Mailing Death Threats to Connecticut ResidentsRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that GARRETT SANTILLO, 35, last residing in Hollywood, Fla., pleaded guilty today in Hartford federal court to mailing numerous threatening letters to individuals in Connecticut, including two federal judges and Connecticut’s governor.
According to court documents and statements made in court, on July 15, 2014, a federal judge received a threatening letter at his Connecticut residence via the U.S. Postal Service. The letter was postmarked on July 11, 2014, from Miami, but did not bear a return address. The letter writer made certain demands and stated “You (sic) home addresses in Conn. are public information and if you mask your identity by name or appearance, we can still track you to wherever you go and will kill you if you don’t follow what this letter instructs.”
Following the judge’s receipt of the threatening letter, approximately 14 other individuals in Connecticut, including another federal judge and the governor of Connecticut, also received letters containing death threats. All of the letters were handwritten, were mailed from the Miami area to the victims’ home addresses in Connecticut, did not bear a return address, contained a demand for action and threatened death if the recipient failed to comply with the writer’s request.
The investigation revealed that SANTILLO wrote and mailed the threatening letters. He was arrested at his Florida residence on September 29, 2014.
SANTILLO pleaded guilty to one count of mailing threatening communications, which carries maximum term of imprisonment of 10 years. He is scheduled to be sentenced by U.S. District Judge Alvin W. Thompson on May 27, 2015.
SANTILLO, who has been detained since his arrest, has two prior federal convictions for sending threatening communications.
This matter has been investigated by the U.S. Marshals Service, Federal Bureau of Investigation, U.S. Postal Inspection Service, Connecticut State Police, the Yale University Police Department and the Broward County (Fla.) Sheriff’s Department, with the assistance of the U.S. Attorney’s Office for the Southern District of Florida. The case is being prosecuted by Assistant U.S. Attorney Tracy Dayton.
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(203) 821-3722 [email protected]Florida Dealer Sentenced for Illegally Trafficking in Marine LifeRead the Press Release
Wilfredo A. Ferrer, United States Attorney for the Southern District of Florida, David Pharo, Resident Agent in Charge, U.S. Fish & Wildlife Service (FWS), Miami Area Office of Law Enforcement, Thomas Tidwell, Resident Agent in Charge, U.S. Fish & Wildlife Service (FWS), Denver Area Office of Law Enforcement, FWS, and Tracy Dunn, Assistant Director, NOAA Fisheries Office of Law Enforcement, announced that Curtis W. Waters, 58, of Weeki Wachee, Florida, was sentenced for engaging in conduct that involved the sale and purchase of, and intent to sell and purchase, wildlife with a market value in excess of $350.00, that is, approximately 150 specimens of Ricordea florida, and did knowingly sell said wildlife in interstate commerce, knowing it was taken, possessed, transported, and sold in violation of and in a manner unlawful under the laws of the State of Florida, specifically, Florida Statute Section 379.361(2)(f), in violation of the Lacey Act, Title 16, United States Code, Sections 3372(a)(2)(A) and 3373(d)(1)(B), and Title 18, United States Code, Section 2.
U.S. District Court Judge James Lawrence King sentenced Waters to three months home confinement and a three year period of probation, but did not impose a fine after determining that Waters did not possess the resources to pay a criminal assessment. As a further consequence of his federal conviction, the Florida Fish & Wildlife Conservation Commission revoked all of Waters’ remaining licenses, and prohibited his transfer of the valuable “Marine Life Dive” endorsement he had held during the period of the criminal conduct.
According to the allegations of the Information filed against him, and a Joint Factual Statement submitted by the parties, at the relevant times, Waters, was a resident of Hernando County, Florida, and the holder of a Saltwater Products License (SPL) issued by the Florida Fish & Wildlife Conservation Commission (FWCC), which authorized him, among other things, to harvest live Ricordea florida, a corallimorph species native to the salt water reefs of South Florida.
The representative charge in the case noted that in August 2013, Waters called an individual in Colorado, with whom he had prior business dealings, stating that Waters would be in the Florida Keys shortly collecting marine specimens and offering to sell “more” Ricordea florida. At the direction of FWS agents, the cooperator ordered 150 ricordea. Waters advised he planned to ship the ricordea by September 3, 2013 at a price of $4.00 each for the ricordea.
Through surveillance and information provided by witnesses, the investigating agents determined that in order to conduct the harvest of Ricordea florida, Waters towed a boat from his residence to the Keys. The Joint Factual Statement further stated that on September 2, 2013, Waters called the buyer, confirming the order of 150 ricordea would be sent via Fed-Ex the following day. On September 4 a package from Waters was delivered via Fed-Ex to the Colorado address. Included in the shipment was an invoice for 150 ricordea at $4.00 each, for a total of $600.00, and a pre-completed bank deposit slip for Waters’s bank account for a deposit of $600.00. FWS Agents deposited $600.00 cash into the bank account associated with the deposit slip. Further evidence in the case established that during the relevant period, Waters illegally sold approximately 2,600 of the ricordea to a number of out-of-state buyers.
Mr. Ferrer commended the investigative efforts of the U.S. Fish & Wildlife Service Office of Law Enforcement and the NOAA Office of Law Enforcement who participated in the long-term investigation into the illegal harvesting and sale of marine life resources from the Florida Keys known as Operation Rock Bottom. This matter was prosecuted by Assistant U.S. Attorneys Thomas Watts-FitzGerald and Antonia Barnes.
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.
Federal Jury Finds Stockton Woman Guilty on All Counts in Criminal Tax CaseRead the Press Release
SACRAMENTO, Calif. — Terrylyn McCain, 67, of Stockton, was found guilty today by a federal jury of a scheme to defraud the United States by filing false tax returns and buying gold with the proceeds of the fraud, United States Attorney Benjamin B. Wagner announced.
The jury found McCain guilty of four counts of mail fraud in the fraud scheme for mailing false tax returns, four counts of making false claims against the United States by falsifying personal income tax returns for tax years 2005 to 2008, and three counts of money laundering for buying gold with proceeds of the fraud. After a five-day trial, the jury deliberated less than two hours.
According to court documents and evidence introduced at trial, McCain mailed tax returns to the IRS and claimed that banks, tow truck companies, department stores, interior designers and even her gardener had withheld income due to her. To support her scheme, she utilized false documents that indicated significant tax withholdings, including 1099–OID forms that were purportedly issued by financial institutions such as Bank of Stockton and national retailers such as Costco and Target. In reality, funds were never withheld, the 1099–OID forms were fraudulent, and McCain’s tax returns were falsely inflated by hundreds of thousands of dollars.
In total, McCain filed at least 12 fraudulent returns that sought nearly $3 million in tax refunds. In just one instance, early in the scheme, the IRS refunded $156,373 to McCain. Within the month, she had used the refund money to purchase approximately $62,000 in gold coins, forming the basis for the money laundering charges.
According to documents and evidence introduced at trial, the IRS attempted to collect the money it mistakenly paid McCain in response to one of her fraudulent tax returns. The trial evidence revealed that McCain refused to return the mistaken payment, going so far as to fraudulently prepare a counterfeit cashier’s check using an IRS payment voucher to satisfy her tax debt.
U.S. Attorney Wagner said: “As millions of Americans prepare to file their tax returns in the coming weeks, the jury’s swift guilty verdict on all counts in this case is a reminder that these few who attempt to cheat their country should expect little sympathy from federal law enforcement or from the citizens who are called to serve their civic duty as jurors.”
This case is the product of an investigation by the Internal Revenue Service-Criminal Investigation. Assistant United States Attorneys William S. Wong and Kevin Khasigian are prosecuting the case.
McCain is scheduled to be sentenced by United States District Judge Troy L. Nunley on June 4, 2015. She was ordered detained in custody pending sentencing. She faces a maximum sentence of 20 years in prison for the mail fraud counts, five years in prison for the false claims against the United States counts, and 20 years in prison for the money laundering counts. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Father, Son Sentenced for $1 Million Conspiracy to Steal Trucks and Trailers, CargoRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that two Kansas City, Mo., area men were sentenced in federal court today for their roles in a 14-year-long conspiracy to steal more than $1 million worth of trucks and trailers and their cargo.
Jon “Dirk” Dickerson, 57, of Raytown, Mo., and his son, Kyle Wayne Dickerson, 32, of Holden, Mo., were sentenced by U.S. Chief District Judge Greg Kays. Jon Dickerson was sentenced to 15 years and eight months in federal prison without parole. Kyle Dickerson was sentenced to nine years and two months in federal prison without parole. The court also ordered the Dickersons to pay $995,129 in restitution and a forfeiture money judgment of $1,270,089.
Jon and Kyle Dickerson have been in federal custody since the conclusion of a two-week trial on Feb. 28, 2014.
Jon and Kyle Dickerson, along with co-defendant Kenneth Ray Borders, 44, of Kansas City, Mo., were found guilty at trial of participating in a conspiracy that involved the theft of commercial trucks and trailers and their cargo in Missouri, Kansas, Florida, Arkansas, Oklahoma, and Nebraska from 1998 to December 2013. They worked together to steal trucks, trailers, and cargo and then dispose of them. Sometimes they used the trucks and trailers themselves to make money by hauling loads for customers and sometimes they sold the stolen trucks and trailers.
Eight additional defendants have pleaded guilty and been sentenced.
In addition to the conspiracy, Jon Dickerson was found guilty of three counts of aiding and abetting the possession of stolen goods and one count of aiding and abetting the possession of stolen vehicles. Kyle Dickerson also was found guilty of one count of aiding and abetting the transportation of stolen vehicles, two counts of aiding and abetting the possession of stolen goods and one count of aiding and abetting the possession of stolen vehicles. Borders also was found guilty of four counts of aiding and abetting the possession of stolen goods, one count of aiding and abetting the transportation of stolen goods and one count of aiding and abetting the possession of stolen vehicles.
Borders was sentenced on Dec. 8, 2014, to 21 years and 10 months in federal prison without parole. The court also ordered Borders to pay $1,270,089 in restitution to 27 victims. Borders’ sentence takes into account his previous criminal history of theft of a truck, trailer and cargo in this district and the District of Nebraska. He also has numerous instances of driving without a license or with a suspended license and was under a criminal sentence for driving while revoked during the conspiracy.
The conspiracy involved the thefts of five Freightliner trucks and 17 trailers between 2005 and 2011. The stolen trailers included refrigerated trailers containing such cargo as 39,000 pounds of meat, 565 boxes of beef valued at $149,790, $125,000 worth of frozen ribs, and several refrigerated trailers that each contained tens of thousands of dollars’ worth of frozen chicken, including a load of frozen chicken wings valued at $59,706. Also stolen were utility trailers containing such cargo as Budweiser beer valued at $16,657, Nike shoes valued at $217,353 and 21,018 pounds of Little Sizzler sausages.
Stolen cargo was sold cheaply to anyone who would buy it. Some of the cargo was sold out of the back of the trailer; some of it was sold to a tow truck driver or a convenience store operator to resell.
Jon Dickerson often had the first right to purchase stolen trucks and trailers. In fact, Borders actually had a “shopping list” from Dickerson listing the trucks and trailers that he wanted, so that Borders could keep an eye out for them and steal them if the opportunity presented itself. Jon Dickerson had Borders steal vehicles to provide him with a supply of replacement parts for his trucks. For example, if an engine failed on one of Jon Dickerson’s trucks, he would have Borders steal a truck with a similar engine to replace it.
Jon and Kyle Dickerson also were involved in stealing trucks and trailers. They used them in their own trucking business, sometimes just for replacement parts with the remains sold for scrap. Kyle Dickerson had the tools, ability, and willingness to disguise the stolen nature of the trucks and trailers by altering their Vehicle Identification Numbers (VINs) so that they could be used in their trucking business without alerting authorities when they were stopped or inspected.
The Dickersons reduced their costs of doing business by stealing trucks and trailers themselves, or by buying stolen trucks and trailers from Borders, at a fraction of their fair market value. Since they had little financial investment in the stolen trucks and trailers, and knew that they had a readily-available and cheap supply of stolen trucks and trailers, they had little incentive to maintain and repair their fleet. As a result, their fleet wore out and had safety issues, such as problems with brakes and tires. When their fleet wore out, they simply replaced them with more stolen trucks and trailers.
The Dickersons did not bother to maintain and repair their trucks and trailers but continued to operate them in interstate commerce. As a result, the Department of Transportion (DOT) and other law enforcement repeatedly cited their company and drivers for failing inspections and violating regulations. The company's compliance reviews led to unsatisfactory safety ratings which led to a total of $450,000 in fines and numerous “out of service orders” directing them to cease operating in interstate commerce. The Dickersons just ignored the orders and the fines.
The abuse in the trucking industry not only impacts public commerce, the government charges, but also public safety. While the thefts themselves were egregious, the Dickersons’ audacious use of worn-out vehicles and not maintaining equipment such as brakes puts the public’s safety at considerable risk.
At a DOT roadside inspection, a Dickerson truck, trailer, or cargo could be delayed, or even impounded, if their poor record or condition prompted too many questions. The Dickersons’ scheme, however, included a way to downplay this risk. The Dickersons operated what is known in the industry as “chameleon carriers.” They simply abandoned their old company – along with its "baggage" of safety violations, “out of service” orders, and unpaid fines – and began operating with a new company under a new name. Thus, after Jon Dickerson’s company Fish and More was subject to more than $150,000 in fines and four orders to cease interstate transportation, he began operating under the name D&T Trucking. After D&T Trucking was subject to nearly $300,000 in fines and 17 orders to cease interstate transportation, the United States obtained a civil injunction and default judgment, and D&T Trucking was permanently enjoined from operating in interstate commerce. At that point, Kyle Dickerson got a DOT number for Night Line Trucking and Repair. Night Line Trucking and Repair received an unsatisfactory safety rating and an order to cease interstate transportation. The Dickersons then started operating under the name Nightline Trucking, LLC.
Beyond the direct losses to their victims, the Dickersons’ actions had significant impact on the trucking industry and its regulatory system. Their business morphed through four versions over 14 years - Fish and More, D&T Trucking, Night Line Trucking and Repair, and Nightline Trucking, LLC. – in an effort to avoid DOT sanctions for faulty or failed equipment that would have shut down the businesses. These business practices resulted in hundreds of vehicle stops and inspections which taxed various arms of the DOT and parallel state agencies and created extensive and expensive legal processes. The Dickersons, using their knowledge of the trucking regulations, took advantage of slow reporting and lack of federal-state consolidated record keeping to exploit the system until finally the extreme measure of an Out of Service and Record Consolidation Order was issued on July 29, 2013, putting their last company officially out of business.
This case was prosecuted by Senior Litigation Counsel Gregg R. Coonrod and Assistant U.S. Attorney Cindi S. Woolery. It was investigated by the Department of Agriculture – Office of Inspector General, the FBI, the Kansas City, Mo., Police Department, the National Insurance Crime Bureau, the National White Collar Crime Center, the Mid-States Organized Crime Information Center, Travelers Investigative Services, the Missouri State Highway Patrol, the Florida State Highway Patrol, and the U.S. Department of Transportation, Federal Motor Carrier Safety Administration.
Escape from San Francisco Federal Building Results in Additional Charges Against Alleged Art FraudsterRead the Press Release
SAN FRANCISCO – Yesterday a grand jury returned a superseding indictment against Luke D. Brugnara, adding charges that he escaped from custody and violated a court order governing a furlough established by the district court, announced United States Attorney Melinda Haag, Federal Bureau of Investigation Special Agent in Charge David Johnson and U.S. Marshal Don O’Keefe.
Brugnara, 50, previously had been charged with mail and wire fraud, in addition to false declarations before a court, in connection with his alleged agreement to purchase several works of art for a combined total of approximately $11,000,000. The new indictment re-alleges those charges, and adds that on February 5, 2015, Brugnara violated the terms of a court order when he escaped from his lawyer’s custody at 450 Golden Gate Avenue in San Francisco, California. A federal court order furloughed Brugnara to the custody of his lawyer in the federal building for the purpose of preparing for trial. After absconding, Brugnara remained a fugitive for six days until he was apprehended in Los Gatos, California, on February 11, 2015. He has remained in custody since.
Brugnara was apprehended as a result of a cooperative effort by the United States Marshals Service and the Federal Bureau of Investigation. His next court appearance is scheduled for Tuesday, March 17, at 2:00 p.m. before United States District Judge William Alsup.
Please note that an indictment contains only allegations and, as with all defendants, Brugnara must be presumed innocent unless and until proven guilty. The maximum statutory penalty for mail fraud, in violation of Title 18, United States Code, Section 1341, and wire fraud, in violation of Title 18, United States Code, Section 1343, is 20 years in prison, a fine of $250,000, forfeiture, and restitution. The maximum statutory penalty for false declarations to a court, in violation of Title 18, United States Code, Section 1623, and escape, in violation of Title 18, United States Code, Section 751(a), is 5 years in prison, a fine of $250,000, forfeiture, and restitution. The penalty for contempt of court, in violation of Title 18, United States Code, Section 401(3), is at the discretion of the court. Any sentence following conviction, however, would be imposed by the Court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorneys Benjamin Kingsley and Robin Harris are prosecuting the case with the assistance of Jessica Meegan, Trina Khadoo, and Mary Mallory. The prosecution is the result of an investigation by the Federal Bureau of Investigation and the United States Marshals Service.
Eigtheen Indicted in Nashville-Detroit Drug Distribution ConspiracyRead the Press Release
Tens of Thousands of Oxycodone and Oxymorphone Pills Distributed in Middle Tennessee
A federal grand jury in Nashville, Tenn., on Wednesday, returned a 2-count indictment, charging 18 individuals with conspiracy to distribute oxycodone and oxymorphone, announced David Rivera, U.S. Attorney for the Middle District of Tennessee. Three of the defendants were also charged with conspiracy to commit money laundering. The indictment also contains forfeiture allegations and the government seeks to forfeit any proceeds and property, including but not limited to a money judgment, representing all or part of the gross proceeds obtained as a result of the alleged crimes.
Yesterday, local, state and federal law enforcement officers in 2 states began arresting those charged in the indictment and also executed several search warrants in the Nashville area and in Detroit, Michigan.
“Illegal drug diversion has greatly contributed to the epidemic prescription drug abuse problem facing our communities today,” said U.S. Attorney David Rivera. “Those who choose to engage in this illegal activity face lengthy prison sentences and the U.S. Attorney’s Office will continue to work closely with the DEA and our local and state law enforcement partners to curtail the diversion of these highly addictive substances.”
“While this investigation involved the diversion of highly addictive pharmaceutical pills from out of state into Tennessee, it is another example of DEA and our federal, state, and local partners working jointly to stop the flow of these diverted pills into Tennessee,” said Michael J. Stanfill, Assistant Special Agent in Charge for DEA-Tennessee. “DEA, the U.S. Attorney’s Office, and our law enforcement partners will not only target those organizations in Tennessee who seek to profit from the illegal distribution of pharmaceuticals and negatively impact our communities, but we will also target the sources of these pills regardless of where they operate.”
Those charged in the drug distribution conspiracy include:
Ashley Kaye Aldrige, 30, of Antioch, Tenn; Walter Thomas Bowen, Jr., 36, of Smyrna, Tenn; Bernadette Bradley, aka Bernadette Nichole Colley 43, of Detroit, Mich; Howard Brons III, 33, of Murfreesboro, Tenn; Donald Duane Buchanan, Jr., aka Donald Gains, aka Ray Rhodes, 38 of Antioch, Tenn; Andrew Bradley Froome, 24, of Murfreesboro, Tenn; Robert Edwin Hampton, 38, of Smyrna, Tenn; Gene Roland Hardwick, 53, of Detroit, Mich; Benjamin Edward HenryBradley, 31, of Belleville, Mich; Tony Wade Holbrooks, 60, of Nashville, Tenn; James Edward Johnson, II, aka Red, 43, of LaVergne, Tenn; Felicia Ann Jones, aka Auntie, 55, of Westland, Mich; Frank Jeffrey Kelly, Jr., aka Little Man, 23, of Smyrna, Tenn; Eric Anthony McEwen, 38, of Detroit, Mich; Jonathan Lamar Moore, aka J-Boy, 24, of Antioch, Tenn; Pamela O’Neal, 52, of Detroit, Mich; Kai Elijah Ramos, 30, of Smyrna, Tenn. and
Bobby Deandrae Robertson, aka B.O., 27, of Nashville, Tenn.Donald Buchanan, Benjamin Bradley and Felicia Jones were also charged with conspiracy to commit money laundering.
If convicted, each defendant faces a maximum sentence of 20 years in prison on each charge.
This extensive investigation was conducted by the Drug Enforcement Administration; the IRS-Criminal Investigation; the Bureau of Alcohol, Tobacco, Firearms & Explosives; the FBI; the Tennessee Bureau of Investigation; the Rutherford County, Tenn. Sheriff’s Dept.; the Smyrna, Tenn. Police Dept.; the Mt. Juliet, Tenn. Police Dept.; the 20th Judicial District Drug Task Force; the Michigan State Police; the Brighton, Mich. Police Dept.; and the Clinton township, Mich. Police Dept. Assistant United States Attorney Cecil Vandevender is prosecuting the case.
An indictment is merely an accusation. All defendants are presumed innocent unless and until proven guilty in a court of law.
District of South Dakota Welcomes New U.S. AttorneyRead the Press Release
Randolph J. Seiler assumed the duties of Acting United States Attorney for the District of South Dakota on March 12, 2015. Randy Seiler has been with the U.S. Attorney’s Office for 20 years.
From November 2009 to March 2015, Seiler served as both the First Assistant United States Attorney and the Tribal Liaison for the District of South Dakota. Prior to serving in those two capacities, Seiler was an Assistant U.S. Attorney, and he spent 14 years prosecuting violent crime offenses in Indian country and other areas throughout the state. The U.S. Attorney’s Office for the District of South Dakota has jurisdiction on nine Indian reservations
As First Assistant, Seiler was responsible for the day-to-day management and operation of the U.S. Attorney's Office. He was also the supervisor of the U.S. Attorney’s branch office in Pierre, where he was directly involved in prosecutorial matters and decisions.
As Tribal Liaison, he consulted and coordinated with tribal justice officials and leaders, tribal communities, and victim advocates in an effort to address any issues in the prosecution of major crimes in Indian country in South Dakota.
Seiler also served as counsel to the Director in the Executive Office for U.S. Attorneys at the Department of Justice in Washington, D.C., in 2008. He has been an instructor at the National Advocacy Center in Columbia, South Carolina, as well as a presenter at numerous conferences and trainings on various topics including violent crime, sexual assault, domestic violence, and legal issues in the prosecution of crimes in Indian country.
He has received the Attorney General's Award for Fraud Prevention, as well as the Director's Award for Superior Performance in Indian Country.
Prior to joining the U.S. Attorney's Office in 1995, Seiler was in private practice in Mobridge, South Dakota, where he practiced criminal andcivil law. He also previously served as Campbell County Deputy States Attorney and Special Judge for the Cheyenne River Sioux Tribe.In his role as Acting U.S. Attorney, Seiler will continue with the priority areas of the office, and vowed to maintain former U. S. Attorney Brendan Johnson's strong commitment to prosecuting Indian country crimes and human trafficking.
Seiler grew up in Herreid, South Dakota, served his country in the U.S. Air Force, which included a year-long tour in Vietnam, and graduated from the University of South Dakota School of Law.
He and his wife, Wanda, live in Fort Pierre, and have four grown children and twograndchildren. Additionally, Seiler currently serves his community as a member of the Fort Pierre City Council.
Seiler plans to formally seek the nomination for U.S. Attorney for the District of South Dakota.
Deputy Director of Hudson County Correctional Facility Found Guilty of Illegal WiretappingRead the Press Release
NEWARK, N.J. – The deputy director of the Hudson County Correctional Facility was found guilty today of illegally wiretapping his co-workers and another individual, U.S. Attorney Paul J. Fishman announced.
Kirk Eady, 46, of East Brunswick, N.J. was found guilty of one count of intentionally intercepting the wire, oral or electronic communications of others following a four-day trial before Judge Jose L. Linares. The jury deliberated three hours before returning the guilty verdict.
According to the documents filed in this case and the evidence at trial:
From March 8, 2012, to July 8, 2012, while working as the deputy director of the Hudson County Correctional Facility, Eady used the services of a website on more than 10 occasions to intercept the telephone calls of other Hudson County Correctional Facility employees and another individual who were critical of his work performance. Eady was able to conceal the telephone number from which the call originated. He then called two of the employees at the same time and made it appear that one or both of the other individuals initiated the call. Eady also recorded these telephone conversations and never told the other employees he was recording these private communications. These individuals did not consent to their private conversations being monitored and recorded by Eady.
The wiretapping count on which Eady was convicted is punishable by a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for July 8, 2015.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark, with the investigation leading to today’s guilty verdict.
The government is represented by Assistant U.S. Attorneys David L. Foster and Amy Luria of the U.S. Attorney’s Office Special Prosecution Division.
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Defense counsel: Peter Willis Esq., Jersey City, N.J.Eady, Kirk Indictment
Department of Justice Statement of Interest Supports Meaningful Right to Counsel in Juvenile ProsecutionsRead the Press Release
The Department of Justice today filed a statement of interest in the Superior Court of Fulton County, Georgia, in N.P. et al. v. The State of Georgia, et al. The class action asserts that the public defense system in the Cordele Judicial Circuit is so underfunded and poorly staffed that indigent adults and juveniles accused of committing criminal acts are routinely denied their right to legal representation. The department’s statement of interest focuses solely on the due process rights of children accused of delinquency. It is the first department filing in a state court action to address the due process right to counsel for children established by the U.S. Supreme Court in In re Gault. In Gault the court recognized the critical needs of children for guidance and advocacy and the vital role counsel plays in ensuring fairness in delinquency proceedings. More recent Supreme Court decisions have emphasized the differences between adults and children in the criminal justice system. Applying this case law, the department’s filing identifies procedural safeguards that must be provided to children who appear before the court.
“For too long, the Supreme Court’s promise of fairness for young people accused of delinquency has gone unfulfilled in courts across our country,” said Attorney General Eric Holder. “Every child has the right to a competent attorney who will provide the highest level of professional guidance and advocacy. It is time for courts to adequately fund indigent defense systems for children and meet their constitutional responsibilities.”
“Every day, in communities across our country, under-resourced public defense systems fail to meet their constitutional obligation to provide effective representation for children,” said Acting Assistant Attorney General Vanita Gupta of the Civil Rights Division. “Children who depend on these failing systems often get the poorest representation, relegating them to second-class status in our courts. The systemic deprivation of counsel for children cannot be tolerated.”
In N.P., the plaintiffs allege that children in juvenile delinquency proceedings in the Cordele Judicial Circuit are denied their right to meaningful representation and are, at best, provided with “assembly-line justice.” They assert that because public defense counsel are understaffed and under-resourced, they often are not appointed on behalf of children, and that children routinely waive their right to counsel without the waiver being knowing, intelligent and voluntary. The plaintiffs claim that the denial is so total that it amounts to a systemic violation of the juveniles’ due process right to counsel, as required by Gault and the U.S. Constitution.
In its statement of interest, the department asserts that children are denied their right to counsel not only when an attorney is entirely absent, but also when an attorney is available in name only. It provides the court with a framework to assess the plaintiffs’ claim that the defendants are depriving young people accused of delinquency of their right to counsel. As the department summarized in the statement of interest, “due process requires that every child who faces the loss of liberty should be represented from their first appearance through, at least, the disposition of their case by an attorney with the training, resources and time to effectively advocate the child’s interest. If a child decides to waive the right to an attorney, courts must ensure that the waiver is knowing, intelligent, and voluntary by requiring consultation with counsel before the court accepts the waiver.”
N.P. et al. v. The State of Georgia et al. was filed in January 2014 and brought by adult defendants and juveniles accused of delinquency in the Cordele Judicial Circuit. The plaintiffs seek reform to prevent future due process and right to counsel violations.
Columbus Bussinessman Charged for Financial Fraud SchemeRead the Press Release
COLUMBUS – A federal grand jury has charged David H. DeMathews, 62, of Columbus, with wire fraud, money laundering, engaging in monetary transactions in property derived from unlawful activity, mail fraud and possessing a firearm as a convicted felon in a 39-count indictment unsealed today.
Carter M. Stewart, United States Attorney for the Southern District of Ohio and Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Division, announced the indictment returned March 3.
The indictment alleges that DeMathews used his positions as Director of National Accounts and Executive Vice President of American Escrow and Title Services, Inc. and President of DEMCO Advisory Corporation to execute a financial fraud scheme.
DeMathews allegedly told some victims he would invest their money in the construction of multi-million dollar buildings that were supposed to generate repayment to the investors. He allegedly promised some victims he would invest their money in Starbucks franchise opportunities in Central America, hospital projects in Panama and Nicaragua and a water treatment plant in Florida.
“None of the business ventures were ever consummated and no legitimate income was ever generated,” Assistant United States Attorney Jessica Kim told the court. “Rather than invest the money, DeMathews used it for personal use or to partially pay other investors.”
DeMathews received approximately $911,000 for the purpose of executing his scheme.
Wire fraud, money laundering and mail fraud are crimes punishable by up to 20 years in prison and a $250,000 fine. Engaging in monetary transactions in property derived from a specified unlawful activity and possession of a firearm by a convicted felon carry a maximum sentence 10 years in prison and a $250,000 fine.
U.S. Attorney Stewart commended the investigation of this case by the FBI, and Assistant United States Attorney Jessica Kim, who is prosecuting the case.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
Colfax County Sheriff’s Deputy Arrested on Federal Narcotics ChargeRead the Press Release
ALBUQUERQUE – U.S. Attorney Damon P. Martinez, Special Agent in Charge Carol K.O. Lee of the FBI’s Albuquerque Division, and Chief Pete N. Kassetas of the New Mexico State Police (NMSP) announced today that Vidal Sandoval, 45, a Deputy of the Colfax County Sheriff’s Office who resides in Cimarron, N.M., has been indicted for aiding and abetting a drug trafficking crime. Sandoval made his initial appearance on the indictment in federal court in Albuquerque, N.M., this afternoon, and was remanded into federal custody pending an arraignment and detention hearing which is scheduled for Monday, March 16, 2015.
Sandoval is charged in an indictment that was filed under seal on March 10, 2015, and was unsealed earlier today after he was arrested by the FBI and NMSP. The indictment alleges that on Feb. 28, 2015, Sandoval aided and abetted an attempt to possess cocaine with intent to distribute in Colfax County, N.M. The indictment includes forfeiture provisions seeking a money judgment in the amount of at least $19,500.00, the proceeds Sandoval allegedly obtained as a result of his unlawful conduct.
According to affidavits submitted in support of court-approved search warrants that were executed following Sandoval’s arrest, the investigation into Sandoval began in summer 2014, after two men reported to the NMSP that a law enforcement officer allegedly seized marijuana and cash from them during a traffic stop without giving them a receipt for the marijuana or money. Investigation by the NMSP identified Sandoval as the officer allegedly involved in the traffic stop.
The affidavits allege that from Dec. 2014 through Feb. 2015, the FBI and NMSP deployed undercover agents into areas of Colfax County that Sandoval was known to patrol. During that time, Sandoval allegedly conducted traffic stops on the undercover agents’ vehicles on three occasions during which he allegedly offered to escort the undercover agents through Colfax County with drugs and currency in exchange for a portion of their drug profits. In Feb. 2015, Sandoval allegedly agreed to escort an undercover agent with a load of drugs through Colfax County. On Feb. 28, 2015, Sandoval allegedly accepted cash for escorting the undercover agent, who was driving a vehicle containing cocaine, from Colfax County to the New Mexico/Colorado border.
If convicted of the offense charged in the indictment, Sandoval faces a mandatory minimum five years and a maximum of 40 years in federal prison. Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by the Santa Fe and Albuquerque offices of the FBI and the New Mexico State Police, and the Colfax County Sheriff’s Office is cooperating in the ongoing investigation. Assistant U.S. Attorney Sean J. Sullivan is prosecuting the case.
Colfax County Sheriff’s Deputy Arrested by FBI and New Mexico State PoliceRead the Press Release
ALBUQUERQUE – Vidal Sandoval, 45, a Deputy of the Colfax County Sheriff’s Office who resides in Cimarron, N.M., was arrested earlier today by the FBI and the New Mexico State Police. Additional information will be available when Sandoval makes his initial appearance in federal court in Albuquerque, N.M., later today.
Clay County Doctor Indicted for Distributing Controlled Substances Resulting in the Death of A PatientRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces the unsealing of an indictment charging Dr. Russell Sachs (56, Green Cove Springs) with four counts of dispensing and distributing, and causing to be dispensed and distributed, certain Schedule II and IV controlled substances to patients that were outside the usual course of professional practice and for no legitimate medical purpose. Count one also charges Sachs with dispensing controlled substances that resulted in the death of a patient. If convicted, he faces a mandatory minimum of 20 years, up to life, in federal prison on count one and up to 20 years’ imprisonment on each of the remaining three counts in the indictment.
According to the indictment, Dr. Sachs, a licensed medical doctor in Florida, owned and operated Physician Pain Management in Green Cove Springs. On various dates between 2011 and 2012, he dispensed and distributed, and caused to be dispensed and distributed, various combinations of the following controlled substances, outside the usual course of professional practice and for no legitimate medical purpose: alprazolam (Xanax), carisoprodol (Soma), clonazepam, hydromorphone (Dilaudid), methadone, morphine, and oxycodone.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Drug Enforcement Administration and the Internal Revenue Service - Criminal Investigation. It will be prosecuted by Assistant United States Attorney Diidri W. Robinson.
Chinese Chemical Supplier Pleads Guilty to Conspiracy and Importation of Synthetic Drugs, Controlled SubstancesRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces that Wei Zhang, a/k/a David Liteng (35, Tianjin, China) has pleaded guilty to conspiracy to import controlled substance analogues (synthetic cannabinoids), knowing that they were intended for human consumption. He also pleaded guilty to two counts of aiding and abetting the importation of controlled substances and cathinones, also known as “bath salts.” Zhang faces a maximum penalty of 60 years in federal prison. A sentencing date has not yet been scheduled.
According to the plea agreement, in late 2010, an individual met with Dan and Kevin Louie, the owners and operators of Source1Herbs, in Toronto, Canada. Source1Herbs was a large wholesale business that sold synthetic cannabinoids and cathinones. This individual met with the owners and learned that their Chinese-based supplier was Wei Zhang, a/k/a “David Liteng.” In October 2010, the individual made contact with Zhang and discussed ordering chemicals from him directly. In late February 2011, the individual and his business partner traveled to China and met with suppliers, including Zhang. During these meetings, the individual and Zhang discussed finding a replacement chemical for (1-napthoyl)indole (JWH-018), which was set to be temporarily listed as a Schedule I controlled substance by the DEA on March 1, 2011. As a result of the meeting, the individual obtained a more favorable pricing from Zhang for synthetic chemicals. Zhang, having a significant chemistry background, explained the best chemical alternatives for JWH-018 that would give the end user a similar high, including stimulant and hallucinogenic effects.
On March 1, 2011, Zhang and others exchanged e-mail communications (including news articles) for specific chemicals banned that day, which included JWH-018. One such e-mail from Zhang states, “Hi we know there will be ban jwh and similar product on 1th (sic) march. Pls let me know what happen tomorrow.” When JWH-018 was placed on the DEA’s banned list, Zhang and others began selling other chemicals, including AM-2201, JWH-081, JWH-122, JWH-203, JWH-210, and JWH-250. Zhang routinely shipped large quantities of those chemicals to customers in the United States, Russia, and Europe, distributing a portion of the synthetic cannabinoids through mailing facilities in the Middle District of Florida. From March 2011 through February 2012, Zhang shipped approximately 798 kilograms of these chemicals to the individual. In addition, he supplied Source1Herbs with large quantities of synthetic cannabinoids and cathinones.
On May 7, 2014, the United States Treasury Department - Office of Foreign Asset Control (OFAC) used the Kingpin Act to designate Source1Herbs and Dan and Kevin Louie, both Canadian nationals, on the Specially Designated National (SDN) List. The Kingpin Act permits the imposition of economic sanctions to preclude a variety of worldwide economic transactions.
In July 2013, the Zhang and the individual had several discussions about synthetic cannabinoids, the latest trends in the worldwide industry, and the controlled status of certain chemicals, including UR-144, 5F-UR-144, and RCS-4. Zhang sent the individual various samples of synthetic chemicals known as 5 Meo Dalt (a synthetic cathinone), A834, 5F-UR-144, JWH-308, and WIN48098. Zhang also discussed emerging synthetic cannabinoids PB-22 and 5F-PB-22, both of which were controlled substance analogues of JWH-018 at the time, and then later a Schedule I controlled substance. After receiving a spreadsheet of Zhang’s inventory, the individual negotiated a purchase deal with Zhang for large quantities of UR-144, 5F-UR-144, and RCS-4. The negotiated price for approximately 773 kilograms of chemicals was $265,000, and Zhang agreed to provide the chemicals on consignment. Zhang agreed to ship mislabeled parcels containing 2 or 3 kilograms of those substances per parcel to various mailing facilities within the Middle District of Florida.
From February 3, 2014, through May 16, 2014, Homeland Security Investigations received 48 packages containing 144 kilograms of UR-144, 47 packages containing 106 kilograms of 5F-UR-144 (XLR-11), and 8 packages containing 16 kilograms of RCS-4. During the receipt of those packages, the individual further negotiated to pay Zhang $150,000 for the 266 kilograms of Schedule I controlled substances. In April 2014, Zhang traveled to the United States to retrieve $150,000 in cash for the substances, where he was ultimately arrested.
This case was investigated by U.S. Immigration and Customs Enforcement Homeland Security Investigations, the Jacksonville Sheriff’s Office, and the North Florida High Intensity Drug Trafficking Area Task Force, as part of the Special Operations Division Project Synergy. The Special Operations Division, along with the Narcotic and Dangerous Drug Section of the Department of Justice, coordinated Project Synergy to investigate and prosecute the leaders in the synthetic drug business, both domestically and internationally. The Office of International Affairs in the Justice Department’s Criminal Division also provided assistance. This case is being prosecuted by Assistant United States Attorney A. Tysen Duva.
Chief Executive Officer and Orchestrator of $10 Million Advance Fee and Alaskan Gold Mine Investment Schemes Sentenced to More Than 20 Years’ ImprisonmentRead the Press Release
Earlier today, William C. Lange, the founder of Harbor Funding Group, Inc. (“HFGI”) and Black Sand Mine, Inc. (“BSMI”), was sentenced in federal court in Brooklyn to 262 months’ imprisonment. The defendant was remanded after sentencing. In September 2014, Lange pleaded guilty to two counts charging conspiracy to commit wire fraud and conspiracy to commit securities fraud and wire fraud for his leadership role in defrauding: (i) developers and their clients in areas devastated by Hurricane Katrina of more than $9 million through an advance fee scheme; and (ii) investors of almost $1 million through an Alaskan gold mine investment scheme. As part of the sentence, Lange was also sentenced to 3 years’ supervised release. The court will set restitution at a later date.
The sentences were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, Philip R. Bartlett, Inspector in Charge, New York Division, U.S. Postal Inspection Service (USPIS), and Frank Montoya, Jr., Special Agent in Charge, Federal Bureau of Investigation, Seattle Field Office (FBI).
“William Lange was a con man who stole more than $9 million from people looking to rebuild areas of the country that had been ravaged by the destructive force of Hurricane Katrina. He enticed his victims by promising financing through the use of loan documents and escrow agreements that were not worth the price of the paper used to print them. Today’s sentence sends a strong message to con men like Lange that they will be brought to justice and held accountable for their crimes,” stated United States Attorney Lynch. Ms. Lynch thanked the USPIS and the FBI for their hard work and dedication through the course of this six-year investigation and prosecution. Ms. Lynch also extended her appreciation to the United States Attorney’s Office for the Western District of Washington for their assistance in the case.
Lange, the Chief Executive Officer of HFGI and orchestrator of the advance fee scheme, told land developers and their clients seeking to rebuild areas devastated by Hurricane Katrina that HFGI had lenders and millions of dollars in funds available to provide financing for their real estate projects. As a condition for financing, HFGI required investors to place ten percent of the loan amount in an attorney escrow account. Contrary to Lange’s representations, HFGI did not have lenders or funds available to finance the loans. As soon as the money was placed in escrow, Lange and his co-conspirators stole it, at times through the use of a sham escrow agreement. Through this scheme, Lange and his co-conspirators stole more than $9 million from approximately 300 individuals. The $9 million was spent on, among other things, salaries, fishing and hunting trips for Lange and his son, remodeling and landscaping for Lange’s new house, three Harley-Davidson motorcycles, and other business ventures started by Lange.
After the $9 million was spent, Lange and his co-conspirators moved on to BSMI and the gold mine investment scheme. BSMI claimed that it would mine gold and other precious metals on Sitkinak Island in Alaska. Through the use of in-person presentations, cold calls, and “webinars,” Lange and his co-conspirators convinced investors to purchase BSMI stock by lying to them about the credentials of BSMI’s officers and directors, BSMI’s assets and liabilities, the intended use of investor funds, and by concealing their prior involvement in HFGI. Lange also concealed his own tarnished name and his leadership role in BSMI. Almost $1 million collected from investors in BSMI was spent on salaries and other personal expenses for Lange and his co-conspirators.
Today’s sentence was imposed by the Honorable Dora L. Irizarry, United States District Judge.
The government’s case is being prosecuted by Assistant United States Attorneys Winston M. Paes, Alixandra E. Smith, and Melanie Hendry.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force 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 is 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 2,900 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
The Defendant:
WILLIAM C. LANGE
Age: 67
Gig Harbor, Washington
E.D.N.Y. Docket No. 10-CR-968 (DLI)
Charleston man sentenced to 13+ years in carjacking caseRead the Press Release
Defendant participated in string of home-invasion robberies targeting drug dealers
CHARLESTON, W.Va. – United States Attorney Booth Goodwin announced today that Joe Croft, 41, of Charleston, was sentenced to 158 months in federal prison following a conviction for carjacking.
On May 21, 2012, Croft, Robert Barcliff, and David Himes carried out an armed home-invasion robbery in South Charleston, West Virginia, of a drug dealer they believed would have high quality marijuana or proceeds from the sale of such marijuana. Barcliff arranged for a female friend to lure the victim to an apartment. Croft and Himes, dressed in dark clothing, then stormed the apartment at gunpoint to carry out the robbery. After they zip-tied the victim, Croft stole his car keys, and Croft and Himes fled the apartment. Croft took the victim’s vehicle because the group believed drugs or drug proceeds were located inside the vehicle.
This robbery was just one in a string of robberies committed by Barcliff and his associates. Beginning in the fall of 2011, Barcliff, Keith Glenn, Brandon Davis, Darrell Gillespie, Jamaa Johnson and other individuals conspired and agreed to commit armed home-invasion robberies of drug dealers in several states, including West Virginia, Virginia, Pennsylvania, and Tennessee. Many of the robberies occurred in and around Charleston. The object of the conspiracy and the robberies was to steal drugs---including cocaine, pills, and marijuana---along with drug proceeds and firearms. The group targeted drug dealers because they believed that drug dealers were not likely to call the police if they were robbed.
United States District Judge Thomas E. Johnston sentenced Croft to 140 months’ imprisonment for the carjacking itself plus an additional 18 months for violating the terms of his supervised release from a prior conviction.
The Federal Bureau of Investigation, South Charleston Police Department, and Charleston Police Department conducted the investigation. Assistant United States Attorney Monica D. Coleman is in charge of the prosecution.
Charleston felon pleads guilty to illegally possessing firearmRead the Press Release
CHARLESTON, W.Va. – A Charleston man pleaded guilty today to illegally possessing a firearm, announced U.S. Attorney Booth Goodwin. Travis Devon Woods, 26, pleaded guilty in federal court in Charleston to being a felon in possession of a firearm. On December 16, 2013, on the West Side of Charleston, members of law enforcement approached Woods to discuss an incident that had occurred nearby. When officers asked Woods to stop to speak with them, Woods fled on foot down a nearby alley. Subsequent to stopping Woods after a brief chase, law enforcement located a loaded Taurus .45 caliber semiautomatic pistol in the alley where Woods fled. The West Virginia State Police Forensic Laboratory matched Woods’s DNA to DNA recovered from the weapon.
Woods had previously been convicted in Kanawha County, West Virginia, in 2009 of nighttime burglary and first degree robbery. He faces up to ten years in federal prison when he is sentenced on June 11, 2015.
United States District Judge Thomas E. Johnston conducted today's plea hearing.
The Charleston Police Department, with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives, conducted the investigation. Assistant United States Attorney Jennifer Rada Herrald is in charge of the prosecution.
The case is being prosecuted as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a commitment of U.S. Attorney Goodwin’s office and other officials nationwide to reduce gun crime in the United States by networking existing local programs targeting gun crime.
Carlsbad Man Pleads Guilty to Federal Drug Trafficking and Firearms ChargesRead the Press Release
ALBUQUERQUE – David V. Munoz, 39, of Carlsbad, N.M., entered a guilty plea in federal court in Las Cruces, N.M., this morning to narcotics trafficking and firearms charges.
Munoz was charged by criminal complaint on Nov. 10, 2014, with methamphetamine trafficking charges, and was arrested on Dec. 15, 2014, after being transferred from state custody to federal custody. According to the complaint, on Oct. 20, 2014, the Pecos Valley Drug Task Force (PVDTF) executed a search warrant on Munoz’s residence and vehicle where they located ammunition and several firearms, approximately 784 grams of methamphetamine, approximately 9.42 grams of heroin, and approximately $1,391.00 in cash.
During today’s change of plea hearing, Munoz pled guilty to a three-count felony information charging him with possession of methamphetamine with intent to distribute methamphetamine; being a felon in possession of firearms and ammunition; and possession of heroin with intent to distribute. In his plea agreement, Munoz admitted that during an Oct. 20, 2014 search of his residence and vehicle, PVDTF officers seized approximately 81.81 grams of methamphetamine and 11.88 grams of heroin from his bedroom and several firearms and ammunition from throughout his residence. He also admitted that the officers seized approximately 613.58 grams of methamphetamine from his vehicle. Munoz admitted that in Oct. 2014, he was prohibited from possessing firearms or ammunition because he previously had been convicted of conspiracy to traffic illegal drugs in Oklahoma.
At sentencing, Munoz faces not less than five years and not more than 40 years in prison on the methamphetamine charge; a maximum of ten years in prison on the firearms charge; and not more than 20 years in prison on the heroin charge. Munoz remains in federal custody pending sentencing, which has yet to be scheduled.
This case was investigated by the Las Cruces office of the DEA and the Pecos Valley Drug Task Force, and is being prosecuted by Special Assistant U.S. Attorney Selesia Lee Winston of the U.S. Attorney’s Las Cruces Branch Office.
The Pecos Valley Drug Task Force is comprised of officers from the Eddy County Sheriff’s Office, Carlsbad Police Department and Artesia Police Department and is part of the HIDTA Region VI Drug Task Force. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
California Man Pleads Guilty to Federal Methamphetamine Trafficking Charge in New MexicoRead the Press Release
ALBUQUERQUE – Orlando Sanchez, Jr., 39, of Montclaire, Calif., pleaded guilty today in federal court in Albuquerque, N.M., to a methamphetamine trafficking charge.
Sanchez was arrested on a criminal complaint on Jan. 31, 2014, after a Bernalillo County Sheriff’s Deputy executed a traffic stop on his vehicle for a careless driving violation. A consensual search of Sanchez’s vehicle revealed that Sanchez was transporting approximately one pound of methamphetamine concealed in the engine compartment of his vehicle. Sanchez subsequently was indicted on Feb. 26, 2014, and charged with possession of methamphetamine with intent to distribute on Jan. 30, 2014, in Bernalillo County, N.M.
Today, Sanchez entered a guilty plea to a felony information charging him with possession with intent to distribute methamphetamine. In entering the guilty plea, Sanchez admitted that on Jan. 30, 2014, he unlawfully possessed approximately 431.8 grams of methamphetamine with the intention of transporting it east to be sold in other states.
Sanchez has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled. At sentencing, Sanchez faces a statutory maximum penalty of 20 years in prison followed by at least three years of supervised release.
This case was investigated by the Albuquerque office of the DEA and the Bernalillo County Sheriff’s Office. Assistant U.S. Attorney Jennifer M. Rozzoni is prosecuting this case.
Berks County Man Charged with Drug and Gun CrimesRead the Press Release
Jermaine McClary, 39, of Reading, PA, was charged yesterday by indictment with drug trafficking and firearms violations, announced United States Attorney Zane David Memeger and Berks County District Attorney John T. Adams.
According to the indictment, McClary possessed and intended to distribute, in Reading, PA, heroin and cocaine. It is further alleged that he possessed a .38 caliber revolver in furtherance of a drug trafficking crime, and possessed both that gun and a .40 caliber semiautomatic pistol as a convicted felon.
If convicted of all charges, the defendant faces a maximum possible sentence of life in prison, with a mandatory minimum of five years, six years supervised release, a fine of up to $2,750,000, and a $500 special assessment.
The case was investigated by the Reading Police department, the Berks County District Attorney’s Office, U.S. Immigration and Customs Enforcement Homeland Security Investigations, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. It is being prosecuted by Assistant United States Attorney Joseph A. LaBar and Special Assistant United States Attorney Jesse C. Leisawitz.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Baltimore Man Exiled to over Nine Years in Prison for Robbing Anne Arundel County Fast Food RestaurantRead the Press Release
Baltimore, Maryland – Chief U.S. District Judge Catherine C. Blake sentenced Terrence Major, age 52, of Baltimore, today to 115 months in prison followed by three years of supervised release for robbing a fast food restaurant, pistol whipping and threatening to infect the cashier with AIDS.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Anne Arundel County Police Chief Tim Altomare; and Anne Arundel County State’s Attorney Wes Adams.
According to his plea agreement, on October 3, 2013 Major walked into the restaurant in Linthicum Heights, Maryland, wearing a ski mask and a backpack. He pointed a BB gun that resembled a Walther P22 pistol at the cashier and demanded money. Major grabbed the cashier’s shirt collar and necklace, and pulled her to the front counter area. He struck her across the face with the gun. Major grabbed her by the head and pulled her forward, knocking off her glasses.
Major then demanded that the cashier open the register, and said that if she did not comply, she would never see her family again. The cashier replied that she could not open the register without a sale. Major told her that she had three seconds to open the register or he would shoot her. Major then withdrew a syringe from his pocket and squirted liquid on the counter, telling the cashier that the syringe was infected with AIDS and that he would stab her with it.
The cashier opened two cash registers, and Major took about $650.
United States Attorney Rod J. Rosenstein commended the FBI, Anne Arundel County Police Department and Anne Arundel County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Scott A. Lemmon and Bonnie S. Greenberg, who prosecuted the case.
Australian Man Pleads Guilty in Manhattan Federal Court to Helping Run the “Silk Road” WebsiteRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that PETER PHILLIP NASH, a/k/a “Samesamebutdifferent,” a/k/a “Batman73,” a/k/a “Symmetry,” a/k/a “Anonymousasshit,” pled guilty today to narcotics trafficking and money laundering charges in connection with his role in operating “Silk Road,” a hidden website designed to enable its users to buy and sell illegal drugs and other unlawful goods and services anonymously and beyond the reach of law enforcement. U.S. District Judge Thomas P. Griesa presided over the plea proceedings.
According to the allegations in the Indictment, and statements made at today’s plea and other court proceedings:
From January 2011, up to and including October 2, 2013, the “Silk Road” website hosted a sprawling black-market bazaar on the Internet, where illegal drugs and other illicit goods and services were regularly bought and sold by the site’s users. During its more than two-and-a-half years in operation, Silk Road was used by several thousand drug dealers and other unlawful vendors to distribute hundreds of kilograms of illegal drugs and other illicit goods and services to well over a hundred thousand buyers, and to launder hundreds of millions of dollars deriving from these unlawful transactions.
The owner and operator of Silk Road, Ross William Ulbricht, a/k/a “Dread Pirate Roberts,” a/k/a “DPR,” a/k/a “Silk Road,” ran the website with the assistance of a small support staff, including both site administrators and forum moderators. The site administrators were responsible for, among other things, monitoring user activity on Silk Road for problems, responding to customer service inquiries, and resolving disputes between buyers and vendors. The forum moderators were responsible for, among other things, monitoring user activity on discussion forums associated with the site, providing guidance to forum users concerning how to conduct business on Silk Road, and reporting any significant problems discussed on the forums to the site administrators and to Ulbricht. Ulbricht paid the site administrators and forum moderators salaries ranging from approximately $50,000 to approximately $75,000 per year for their services.
From January 2013, up to and including October 2, 2013, NASH worked as the primary moderator on the Silk Road discussion forums. NASH was arrested in December 2013 along with co-defendants Andrew Michael Jones, a/k/a “Inigo,” and Gary Davis, a/k/a “Libertas,” who worked as site administrators on Silk Road. NASH, Jones, and Davis were each paid salaries by Ulbricht for their roles on Silk Road’s customer support staff.
NASH, 41, of Brisbane, Australia, pled guilty to one count of narcotics conspiracy, which carries a maximum sentence of life in prison, and one count of money laundering conspiracy, which carries a maximum sentence of 20 years in prison. The maximum sentences are prescribed by Congress and are provided for informational purposes only, as the sentence will be determined by the judge. NASH is scheduled to be sentenced on May 26, 2015.
Ulbricht was convicted following trial on February 4, 2015, on charges relating to narcotics trafficking, computer hacking, trafficking in fraudulent identification documents, and money laundering. He is scheduled to be sentenced on May 15, 2015, before U.S. District Judge Katherine B. Forrest.
Jones pled guilty on October 2, 2014, before U.S. District Judge Thomas P. Griesa. He is currently scheduled to be sentenced on October 1, 2015.
Davis is currently pending extradition in Ireland.
Mr. Bharara praised the outstanding investigative work of the Federal Bureau of Investigation and its New York Special Operations and Cyber Division, as well as the outstanding investigative work of the Drug Enforcement Administration’s (“DEA”) New York Organized Crime Drug Enforcement Strike Force, which comprises agents and officers of the DEA, the Internal Revenue Service, the New York City Police Department, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the New York State Police, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Secret Service, the U.S. Marshals Service, Office of Foreign Assets Control, and New York Department of Taxation. Mr. Bharara also thanked the ICE-HSI Chicago-O’Hare office for its assistance and support, as well as the Department of Justice’s Computer Crime and Intellectual Property Section. Additionally, Mr. Bharara praised the foreign law enforcement partners whose contributions to the success of the investigation and prosecution have been invaluable, namely, the Australian Federal Police, the Irish Republic’s Computer Crime Investigation Unit of the An Garda Siochana, the Reykjavik Metropolitan Police of the Republic of Iceland, and the French Republic’s Central Office for the Fight Against Crime Linked to Information Technology and Communication.
Mr. Bharara also noted that the investigation remains ongoing.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorneys Serrin Turner and Tim Howard are in charge of the prosecution.
The charges contained in the Indictment remain pending and are merely accusations against Davis, who is presumed innocent unless and until proven guilty.
Ashburn Man Pleads Guilty to Filing over 1100 Fraudulent Tax ReturnsRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that Antonio Taylor, age 44, of Ashburn, Georgia, entered a plea of guilty on March 13, 2015 to one count of conspiracy to commit wire fraud and one count of aggravated identity theft before the Honorable W. Louis Sands, Senior U.S. District Court Judge, in Albany, Georgia.
As a part of his plea agreement, Mr. Taylor admitted he conspired with his wife, Patrice Taylor, Victoria Davis and Jarrett Jones to file over 1,100 fraudulent tax returns between January 2011 and February 2013. At least 1,089 of the returns were filed electronically from two IP addresses registered to Mrs. Taylor, both located at their home. From January 2012 to October 2012, a cell phone subscribed to Mrs. Taylor was used to call the Internal Revenue Service’s Automated Electronic Filing PIN Request 114 times. The actual loss, the amount of funds which was obtained by fraud, is approximately $1,199,897.00.
Mrs. Taylor entered a guilty plea to related charges on February 11, 2015. Likewise, Ms. Davis and Mr. Jones entered pleas of guilty to related charges on July 9, 2014 and October 9, 2014, respectively. All are awaiting sentencing.
For conspiracy to commit wire fraud, Mr. Taylor faces a maximum sentence of 20 years in prison, a maximum fine of $250,000, or both. For aggravated identity theft, he faces a mandatory minimum sentence of 2 years in prison, consecutive to any other sentence, a maximum fine of $250,000, or both.
“Wire fraud and identity theft have become the crime of choice for defendants seeking to steal money that belongs to the taxpayers. As we approach tax season, this case reminds those who follow the law to be careful with any personal information that may be vulnerable, and those who choose to break the law should know that we are going to catch you –it’s just a matter of time,” said U.S. Attorney Michael Moore.
“Individuals who engage in tax refund fraud will be held accountable for their actions,” stated Veronica F. Hyman-Pillot, Special Agent in Charge, IRS Criminal Investigation. “This defendant clearly took advantage of the people in his community as well as other unsuspecting Americans. It is our hope that today's plea will send a strong message that participation in refund fraud schemes does not pay and those who choose to participate will be prosecuted.”
The case was investigated by the Internal Revenue Service – Criminal Investigation, assisted by the Ashburn Police Department. Assistant United States Attorney Jim Crane is prosecuting the case for the Government.
Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
Arvada Man Sentenced to 30 Months in Federal Prison for Hacking into Computer System of His Former EmployerRead the Press Release
DENVER – Blake Douglas Snowden, age 44, of Arvada, Colorado, was sentenced yesterday by U.S. District Court Judge Christine M. Arguello to serve 30 months in federal prison, followed by 3 years of supervised release for unauthorized access to a protected computer and unauthorized interception of an electronic communication, the U.S. Attorney’s Office and the Federal Bureau of Investigation (FBI) announced. Snowden was also ordered to pay restitution of $25,354 to Onyx Healthcare, Inc., his former employer and the company whose computer and email he hacked. Judge Arguello found that the total loss Snowden caused to Onyx Healthcare was $1,697,471.76. The defendant, who appeared at the sentencing hearing free on bond, was ordered to report to a Bureau of Prisons facility within 30 days of designation.
Snowden, no relation to the infamous Edward Snowden, was indicted by a federal grand jury in Denver on November 20, 2013. He pled guilty before Judge Arguello on May 28, 2014. He was sentenced on March 12, 2015. The issue regarding loss took substantial time to resolve, explaining the nearly one year between guilty plea and sentencing.
According to the stipulated facts contained in the plea agreement, Snowden worked as a sales employee for Onyx MD, which is a Colorado company headquartered in Denver, Colorado. Onyx provides physician staffing services nationwide with their primary focus being temporary placement of physicians. The company uses a password-protected third-party web-based software application for customer relationship management. The web-based software is also used for numerous business functions, including employees accessing their email, reviewing calendar events and tasks, and accessing client and prospective client records.
In September 2011, Onyx noticed that its Development Director’s account was setup to forward copies of his email messages to another email address outside of the company. He had not configured that setting. It was later determined that three other Onyx executives also had copies of their emails rerouted without their permission. An investigation was initiated by the FBI after the executives determined that an intruder had not only rerouted copies of executives’ emails, but also accessed a proprietary company database that contained physician and client information. Of the information illegally accessed, ninety percent (90%) of the candidate physician profiles were surgeons.
Agents determined that the intruder masqueraded the true IP address. However, follow up determined that the intruder used a Qwest IP address affiliated with Snowden’s residence in Arvada, Colorado. Snowden had also used an IP address located in Kremmling, Colorado, where he owned or was associated with another residential property. The investigation then began to target Blake Snowden who was a sales employee at Onyx who primarily focused on recruitment and placement of surgeons until his employment was terminated on August 30, 2010.
In 2011 Snowden started to work for an affiliate of All Star Recruiting, Inc., a Florida-based physician recruiting company that competed with Onyx in the temporary placement of physicians market. On December 15, 2011, a search warrant was executed at Snowden’s Arvada residence. During the execution of the warrant, digital evidence, namely two laptops and removable storage media, were found. Numerous Microsoft Word documents, emails and recorded conversations were found on the electronic media seized from his residence. These files found on the laptops revealed that the defendant had obtained passwords that enabled him to fully access the Onyx web-based software beginning in March 2011 through September 2011. Further investigation into various email accounts controlled by Snowden revealed that he had intercepted approximately 19,502 unique email messages that had been sent to Onyx’s executives during that timeframe.
“Hacking into a secure computer system is a federal crime that can lead to significant federal prison time,” said U.S. Attorney John Walsh. “The prison sentence handed down by Judge Arguello reflects the particularly malicious nature of the criminal conduct in this case, in which the defendant hacked with intent to harm a company and its employees.”
“A personal vendetta against a former employer turned into a criminal act,” said FBI Denver Special Agent in Charge Thomas Ravenelle. “In this instance, the defendant was able to inflict great damage to the victim company by accessing and taking information from the database system that is pivotal to the victim’s business operations. This was done to gain an unfair competitive advantage. This behavior was aggravated by the defendant’s complete disregard for the privacy of several employees at the victim company by intercepting and accessing their email communications. Regardless of motivation, the FBI is committed to tracking down cybercriminals who launch such malicious, targeted attacks.”
This case was investigated by the FBI’s Cyber Squad.
The defendant was prosecuted by Assistant U.S. Attorney David Tonini.
Armstrong County Man Sentenced to 8 Years in Prison for Gun, Drug Law ViolationsRead the Press Release
PITTSBURGH - A resident of Ford City, Pennsylvania, has been sentenced in federal court to 96 months imprisonment, followed by 5 years supervised release on his conviction of violating federal narcotics and firearms laws, United States Attorney David J. Hickton announced today.
Chief United States District Judge Joy Flowers Conti imposed the sentence on William Smith, 32.
According to information presented to the court, from in and around October 2013, and continuing thereafter to in and around May 2014, Smith conspired with others to distribute and possess with intent to distribute more than 80 grams, but less than 100 grams of a mixture and substance containing a detectable amount of heroin, a Schedule I controlled substance. Additionally, on or about April 16, 2014, Smith carried a firearm in furtherance of the aforementioned drug trafficking crime when he made arrangements to trade a .40 caliber handgun for heroin.
Assistant United States Attorneys Amy L. Johnston and Cindy K. Chung prosecuted this case on behalf of the government.
A federally administered Organized Crime and Drug Enforcement Task Force (OCDETF) conducted the investigation leading to the indictment in this case. The task force is headed by the Federal Bureau of Investigation and is comprised of members drawn from the FBI Greater Pittsburgh Safe Street Task Force including Wilkinsburg Police Department, Allegheny County Sheriff’s Office, Pennsylvania Office of the Attorney General, Munhall Police Department, Duquesne Police Department, Monroeville Police Department, Allegheny County Police Department, West Mifflin Police Department, and the Pittsburgh Bureau of Police. The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Alabama and Georgia Women Plead Guilty to Involvement in $4 Million Stolen Identity Refund Fraud RingRead the Press Release
Two Phenix City, Alabama, women and a Columbus, Georgia, woman pleaded guilty for their roles in a stolen identity refund fraud (SIRF) conspiracy, Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department's Tax Division and U.S. Attorney George L. Beck Jr. of the Middle District of Alabama announced today.
Tamaica Hoskins, a resident of Phenix City, pleaded guilty today in U.S. District Court in the Middle District of Alabama to one count of conspiracy to commit wire fraud and one count of aggravated identity theft. Roberta Pyatt, also of Phenix City, previously pleaded guilty on Feb. 25 to one count of conspiracy to commit wire fraud. Lashelia Alexander, of Columbus, pleaded guilty to one count of conspiracy to commit wire fraud on Nov. 18, 2014. According to court documents, between September 2011 and June 2014, Hoskins, Pyatt and others filed more than 1,000 false federal income tax returns using stolen identities and requested more than $4 million in tax refunds. Hoskins obtained stolen identities from various sources, including the identities of employees from a Columbus company.
In order to file the false tax returns, Hoskins and Pyatt obtained two Electronic Filing Identification Numbers (EFINs) in the names of sham tax businesses. The tax refunds claimed on the false returns were paid out via prepaid debit cards, U.S. Treasury checks and deposits to financial institutions connected to the business EFINs that allowed participants in the scheme to print refund checks and obtain prepaid debit cards. Hoskins and Pyatt cashed fraudulent refund checks at several businesses located in Alabama and Georgia.
Lashelia Alexander worked for Walmart’s money center located in Columbus. In January 2014, Alexander was approached about cashing fraudulent tax refund checks that were issued in the names of third parties. In return for cashing the checks, Alexander would receive payment. Alexander cashed more than $100,000 in fraudulently obtained third-party refund checks issued based on false tax returns that were filed by Hoskins and Pyatt.
At sentencing, the defendants face a statutory maximum sentence of 20 years in prison and a fine of $250,000 for wire fraud conspiracy. Hoskins also faces a minimum mandatory consecutive sentence of two years in prison and a statutory maximum fine of $250,000 for aggravated identity theft.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Beck Jr. commended special agents of Internal Revenue Service – Criminal Investigation, who investigated the case, and Trial Attorneys Michael C. Boteler and Gregory P. Bailey of the Tax Division and Assistant U.S. Attorney Todd Brown of the Middle District of Alabama, who are prosecuting the case.
12 March 2015
Woman Admits Billing Home Services Program While in JailRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that on March 12, 2015, Angela Jones, 51, of Madison, IL, pled guilty to a one-count indictment charging that she engaged in a scheme to commit health care fraud. At her sentencing Jones will face up to 10 years of imprisonment, a fine of up to $250,000 and up to 3 years of supervised release. Sentencing has been set for July 10, 2015, at 2:30 pm in United States District Court in East St. Louis, Illinois.
During her plea hearing, Jones admitted that she had submitted false and fraudulent bills in regard to the providing of personal assistant services in the Home Services Program, a Medicaid Waiver Program designed to allow individuals to stay in their homes instead entering a nursing home. Jones admitted that she was actually incarcerated while she was billing the Home Services Program.
The investigation was conducted by the U.S. Department of Health and Human Services, Office of Inspector General, the Federal Bureau of Investigation, and the Illinois State Police, Medicaid Fraud Control Bureau. The cases were prosecuted by Assistant United States Attorneys Ranley R. Killian and Michael Hallock.
Week in Review –fort WayneRead the Press Release
Fort Wayne, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
DISPOSITIONS
- Martin Gonzalez Medina, 51, of Indianapolis, Indiana was sentenced to 108 months imprisonment with 4 years supervised release after pleading guilty to the felony offense of possession with intent to distribute marijuana. According to documents filed in this case, on or about April 28, 2014, Medina did knowingly and intentionally possess with intent to distribute 100 kilograms or more of marijuana. This case was the result of an investigation by the Drug Enforcement Administration, Indiana State Police, Fort Wayne Police Department, IMAGE Drug Task Force, Noble County Sheriff’s Department and the Steuben County Sheriff’s Department. This case was prosecuted by Assistant United States Attorney Anthony W. Geller.
- Orlando Paschall, 23, of Indianapolis, Indiana was sentenced to 130 months imprisonment with 2 years supervised release after pleading guilty to the felony offense of conspiracy to commit robbery. According to documents filed in this case, on or about November 13, 2012, Paschall did unlawfully obstruct, delay and affect interstate commerce by knowingly and intentionally conspiring to commit robbery by agreeing to unlawfully take and obtain personal property from another person by means of actual and threatened force, violence and fear of injury to the person. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Fort Wayne Police Department, Allen County Police Department and the New Haven Police Department. This case was prosecuted by Assistant United States Attorney Tina L. Nommay.
- Darrell Hayes, 29, of Detroit, Michigan was sentenced to 27 months imprisonment with 1 year supervised release after pleading guilty to the felony offense of being a felon in possession of a firearm. According to documents filed in this case, on or about June 18, 2014, Hayes, being a convicted felon, did possess a firearm and ammunition. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Allen County Police Department. This case was prosecuted by Assistant United States Attorney Anthony W. Geller.
- Michael Fabini, 35, of Fort Wayne, Indiana was sentenced to 168 months imprisonment with 5 years supervised release, and forfeiture after pleading guilty to the felony offenses of conspiring to distribute and possession with intent to distribute 1,000 kilograms or more of marijuana and engaging in a monetary transaction in property derived from drug trafficking. According to documents filed in this case, from on or about September 21, 2007, and continuing to on or about December 6, 2012, Fabini did knowingly and intentionally conspire, combine, confederate and agree to distribute and possess with the intent to distribute 1,000 kilograms or more of marijuana and on or about August 7, 2009, did knowingly engage in a monetary transaction affecting commerce in depositing $70,154.99 derived from drug trafficking. This joint investigation was conducted by the Allen County Police Department Vice and Narcotics Division, New Haven Police Department, and the FBI Fort Wayne Safe Streets Task Force, which is comprised of FBI agents and officers from the Indiana State Police, Allen County Police Department, and the Fort Wayne Police Department. This case was prosecuted by Assistant United States Attorney Anthony W. Geller.
- Luis Juarez-Cabrera, 33, of Warsaw, Indiana was sentenced to 60 months imprisonment with 4 years supervised release after pleading guilty to the felony offense of aiding and abetting possession with intent to distribute 500 grams or more of cocaine. According to documents filed in this case, on or about December 11, 2012, Juarez-Cabrera did knowingly and intentionally posses with the intent to distribute 500 grams or more of cocaine. This case was the result of an investigation by the Drug Enforcement Administration and the Fort Wayne Police Department. This case was prosecuted by Assistant United States Attorneys Tina L. Nommay and Nathaniel C. Henson.
VA Hospital Union Official Arrested for Stealing from UnionRead the Press Release
BIRMINGHAM -- Federal authorities on Wednesday arrested the former president of the federal employees union at Birmingham's Veterans Affairs Hospital on charges she embezzled more than $132,000 from the local chapter.
A federal grand jury last month indicted STEPHANIE HICKS, 43, of Birmingham, on bank fraud, forgery and aggravated identity theft charges. U.S. Attorney Joyce White Vance, U.S. Department of Veterans Affairs, Office of Inspector General, Special Agent in Charge Monty Stokes, and U.S. Department of Labor, Office of Labor-Management Standards, Investigator Hollis Lindley Jr. announced the indictment, which was unsealed following Hicks' arrest.
"Union members elect officials to represent them and protect their interests," Vance said. "A labor union official who chooses, instead, to live the high life by stealing from local members has committed a crime and should prepare to go to prison."
"This indictment is a testament to the excellent interagency cooperation with the U.S. Department of Labor and the U.S. Department of Justice," Stokes said. "As president of the local union, Hicks represented Local 2207, with more than 400 VA members. VA OIG will continue to pursue those that abuse their positions of trust and steal from innocent victims."
"OLMS aggressively investigates allegations of financial mismanagement by union officers," Lindley said. "Union members have an expectation that their elected officers are using the union funds for legitimate union purposes," he said. "This particular case was severe in the amount of money stolen and in the degree of concealment."
Hicks was elected president of the American Federation of Government Employees, Local 2207, AFL-CIO, at the Birmingham VA Hospital in July 2007 and served until July 2013 when members elected a new president. The local collects dues biweekly from its more than 440 members. During Hicks' tenure, the local maintained the money in two bank accounts -- a general operating account and a legal fund account, first at Wachovia Bank and, following a merger, at Wells Fargo Bank, according to the indictment.
From at least Jan. 1, 2008 until July 26, 2013, Hicks schemed to defraud the banks, using her position as Local 2207 president to conduct unauthorized transactions taking money from the union's accounts to use for her personal benefit, the indictment charges.
Those transactions included writing checks to herself for travel that did not take place, forging the name of other Local 2207 officers and members on checks she wrote to herself, and making unauthorized debit card purchases and cash withdrawals, according to the indictment.
To conceal her fraud, Hicks did not maintain records of the financial transactions, as required by federal law and Local 2207's constitution and bylaws, nor did she seek approval for the expenditures, the indictment charges.
The indictment brings eight bank fraud, eight forged security and three aggravated identity theft counts against Hicks.
The maximum prison penalty for bank fraud is 30 years and for forged securities, 10 years. Both charges carry a $250,000 fine. The penalty for aggravated identity theft is two years in prison, in addition to any time received as punishment on the other charges.
Veterans Affairs, OIG, and the Department of Labor, OLMS and OIG, investigated the case, which Assistant U.S. Attorney Xavier O. Carter is prosecuting.
The public is reminded that an indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
Two Texas Men Indicted for Transporting 28 Kilograms of CocaineRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced today that a federal grand jury indicted two Texas men for conspiring to sell approximately 28 kilograms of powder cocaine.
Ricardo Garcia, 37, and Jesus Christian Martinez, 33, both of Brownsville, Texas, were indicted on one count of conspiracy with intent to distribute and one count of possession with intent to distribute powder cocaine. According to the indictment and testimony at a preliminary examination and detention hearing held on February 6, 2015, Louisiana State Police conducted a traffic stop on February 3, 2015 on a vehicle traveling eastbound on I-20 in Bossier Parish. The vehicle displayed North Carolina license plates but was not registered to either the driver or the passenger. After further investigation, a police dog was deployed, and the dog began to paw at the speaker box in the trunk. Inside the speaker box troopers found 28 kilogram size packages of powder cocaine.
The defendants face 10 years to life in prison, five years of supervised release, and a $10 million fine on each count.
The DEA-Shreveport Office and Louisiana State Police conducted the investigation. Assistant U.S. Attorney Allison D. Bushnell is prosecuting the case.
An indictment is merely an accusation and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
Two Former Correctional Officers Sentenced to Prison for A Racketeering ConspiracyRead the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced former correctional officers Kimberly Dennis, age 27, and Antonia Allison, age 29, both of Baltimore, Maryland to 24 months and 20 months in prison, respectively, each followed by two years of supervised release, for a racketeering conspiracy in which they smuggled drugs and other contraband for members of the Black Guerilla Family (BGF) gang inside several correctional facilities. Dennis was sentenced today and Allison was sentenced on March 10, 2015.
The sentences 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; Secretary Stephen T. Moyer of the Maryland Department of Public Safety and Correctional Services; Baltimore Police Commissioner Anthony W. Batts; and Baltimore City State’s Attorney Marilyn J. Mosby.
According to court documents, BGF has been the dominant gang at the Baltimore City Detention Center (BCDC), and in several connected facilities, including the Baltimore Central Booking Intake Center, the Women’s Detention Center, which houses many men, and in the Jail Industries Building. Tavon White and other BGF leaders and members incarcerated at BCDC were involved with and often directed the smuggling of contraband into BCDC, including cell phones, tobacco and drugs, through the services of correctional officers (CO’s), who received payments, gifts or a share of the profits.
According to her plea, Kimberly Dennis worked as a Correctional Officer (CO) at Baltimore City Detention Center (BCDC) from 2006 to 2013. She entered into personal and sexual relationships with two inmates who were members of the Black Guerilla Family (“BGF). Dennis smuggled contraband, including marijuana, tobacco and prescription pills, into BCDC on behalf of BGF inmates, who would then sell that contraband to other BCDC inmates who were members of BGF. Allison admitted she also smuggled contraband, including prescription pills and marijuana, into BCDC for eventual distribution by inmates with the BGF. Dennis and Allison were aware of the inmates’ BGF affiliation and assisted in furthering the racketeering enterprise. Dennis and Allison worked with other CO’s to assist in the smuggling and were aware that other co-defendants and correctional officers also smuggled contraband and were involved in sexual relationships.
Forty of the 44 defendants charged in the racketeering conspiracy have been convicted, including 24 correctional officers. Thirty-five defendants pleaded guilty; five defendants were convicted after trial. Three defendants were acquitted and one defendant died.
Inmate Tavon White, a/k/a Bulldog and Tay, age 37, of Baltimore was sentenced to 12 years in prison.
U.S. Attorney Rosenstein recognized the efforts of the other members of the Maryland Prison Task Force, including: the Maryland State Police, Prince George’s County Police Department, United States Marshals Office, DEA, Washington-Baltimore High Intensity Drug Trafficking Area and Maryland Coordination and Analysis Center.
United States Attorney Rod J. Rosenstein praised the FBI, Maryland Department of Public Safety and Correctional Services, Baltimore Police Department, and Maryland Prison Task Force, for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Robert R. Harding and Ayn B. Ducao, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Two Florida Brothers Plead Guilty to Terrorism Violations and Assault on Two Deputy U.S. MarshalsRead the Press Release
Younger Sibling Plotted to Attack New York City with a Weapon of Mass Destruction
Assistant Attorney General for National Security John Carlin, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Director Stacia A. Hylton of the U.S. Marshals Service, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office and members of the South Florida Joint Terrorism Task Force (JTTF) announced today that Raees Alam Qazi and his brother, Sheheryar Alam Qazi, pleaded guilty to terrorism violations and to assaulting two Deputy U.S. Marshals while in custody.
During the hearing, the Qazi brothers acknowledged that Raees Alam Qazi, the younger brother, was going to initiate an attack using a weapon of mass destruction in New York City and that he had been financially and emotionally supported by his older brother, Sheheryar Alam Qazi, who encouraged him to launch the attack.
“With today’s guilty pleas, Raees Qazi and his brother Sheheryar Qazi are being held accountable for their roles in a plot to conduct a terrorist attack using a weapon of mass destruction in New York City and their assault on two federal officers during their pretrial detention,” said Assistant Attorney General Carlin. “This case highlights our commitment to pursue any individuals who would seek to conduct an attack on U.S. soil or to injure law enforcement officials who risk their lives to protect us. I want to thank the many agents, analysts, and prosecutors who are responsible for this successful result.”
“The plot by Raees Qazi to perform a terrorist attack in New York City – and his older brother’s financial support of that plot – was intended to further Al Qa’ida’s message in the United States,” said U.S. Attorney Ferrer. “The Qazi brothers later attacked federal law enforcement agents. As today’s guilty pleas demonstrate, we will respond by holding those who plan terrorist acts on American soil accountable. This case serves as an example of our commitment to protecting civilians from violent jihadi attacks.”
“Any attempt on the life of a law enforcement official is heinous,” said Director Hylton. “To attempt to murder two Deputy U.S. Marshals while in a federal cellblock is a total disregard for life and the entire judicial process.”
“The Qazi brothers are a great example why the FBI’s number one priority is counterterrorism,” said Special Agent in Charge Piro. “We remain committed in our steadfast efforts to detect, deter and disrupt every threat to the United States.”
Raees Alam Qazi, 22, and his brother, Sheheryar Alam Qazi, 32, were living in Oakland Park, Florida, in November 2012 when they were arrested and charged with conspiracy to provide material support to terrorists and conspiracy to use a weapon of mass destruction (explosives). In January 2015, a federal grand jury added additional terrorism charges and five counts of conspiracy, assault and attempted murder relating to an attack on two Deputy U.S. Marshals in April 2014 while the Qazis were in federal custody.
Raees Alam Qazi pleaded guilty to one count of conspiring to provide material support and resources to terrorists in preparation for the use of a weapon of mass destruction, one count of attempting to provide material support to a foreign terrorist organization and one count of conspiring to assault a federal employee. Under the terms of the plea agreement, the parties jointly agreed to recommend a 32-year prison sentence for Raees Qazi.
Sherheyar Alam Qazi pleaded guilty to one count of conspiring to provide material support and resources to terrorists in preparation for the use of a weapon of mass destruction and one count of conspiring to assault a federal employee. Under the terms of the plea agreement, the parties jointly agree to recommend a 17-year prison sentence for Sheryheyar.
The sentencing hearing for both brothers is currently set before U.S. District Judge Beth Bloom of the Southern District of Florida on June 5.
Raees Alam Qazi and Sheheryar Alam Qazi face a potential statutory maximum sentence of 35 years and 20 years, respectively.
The brothers are naturalized U.S. citizens from Pakistan.
The case was investigated by the FBI’s Miami Field Office and the South Florida JTTF. The case is being prosecuted by Assistant U.S. Attorneys Karen E. Gilbert and Adam S. Fels of the Southern District of Florida, and Trial Attorney Jennifer E. Levy of the Justice Department’s National Security Division.
Raees Alam Qazi Plea Agreement
Sheheryar Alam Qazi Plea Agreement
Raees Alam Qazi et al Factual Proffer
Two Florida Brothers Plead Guilty to Terrorism Violations and Assault on Two Deputy U.S. MarshalsRead the Press Release
Younger Sibling Plotted to Attack New York City with a Weapon of Mass Destruction
U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Assistant Attorney General for National Security John Carlin, Director Stacia A. Hylton of the U.S. Marshals Service, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office and members of the South Florida Joint Terrorism Task Force (JTTF) announced today that Raees Alam Qazi and his brother, Sheheryar Alam Qazi, pled guilty to terrorism violations and to assaulting two Deputy U.S. Marshals while in custody.
During the hearing, the Qazi brothers acknowledged that Raees Alam Qazi, the younger brother, was going to initiate an attack using a weapon of mass destruction in New York City and that he had been financially and emotionally supported by his older brother, Sheheryar Alam Qazi, who encouraged him to launch the attack.
“The plot by Raees Qazi to perform a terrorist attack in New York City – and his older brother’s financial support of that plot – was intended to further Al Qa’ida’s message in the United States,” said U.S. Attorney Ferrer. “The Qazi brothers later attacked federal law enforcement agents. As today’s guilty pleas demonstrate, we will respond by holding those who plan terrorist acts on American soil accountable. This case serves as an example of our commitment to protecting civilians from violent jihadi attacks.”
“With today’s guilty pleas, Raees Qazi and his brother Sheheryar Qazi are being held accountable for their roles in a plot to conduct a terrorist attack using a weapon of mass destruction in New York City and their assault on two federal officers during their pretrial detention,” said Assistant Attorney General Carlin. “This case highlights our commitment to pursue any individuals who would seek to conduct an attack on U.S. soil or to injure law enforcement officials who risk their lives to protect us. I want to thank the many agents, analysts, and prosecutors who are responsible for this successful result.”
“The Qazi brothers are a great example why the FBI’s number one priority is counterterrorism. We remain committed in our steadfast efforts to detect, deter and disrupt every threat to the United States,” said Special Agent in Charge George L. Piro of the FBI’s Miami Division.
“Any attempt on the life of a law enforcement official is heinous,” said Director Hylton. “To attempt to murder two Deputy U.S. Marshals while in a federal cellblock is a total disregard for life and the entire judicial process.”
Raees Alam Qazi, 22, and his brother, Sheheryar Alam Qazi, 32, were living in Oakland Park, Florida, in November 2012 when they were arrested and charged with conspiracy to provide material support to terrorists and conspiracy to use a weapon of mass destruction (explosives). In January 2015, a federal grand jury added additional terrorism charges and five counts of conspiracy, assault and attempted murder relating to an attack on two Deputy U.S. Marshals in April 2014 while the Qazis were in federal custody.
Raees Alam Qazi pled guilty to one count of conspiring to provide material support and resources to terrorists in preparation for the use of a weapon of mass destruction, one count of attempting to provide material support to a foreign terrorist organization and one count of conspiring to assault a federal employee. Under the terms of the plea agreement, the parties jointly agreed to recommend a 32-year prison sentence for Raees Qazi.
Sherheyar Alam Qazi pled guilty to one count of conspiring to provide material support and resources to terrorists in preparation for the use of a weapon of mass destruction and one count of conspiring to assault a federal employee. Under the terms of the plea agreement, the parties jointly agree to recommend a 17-year prison sentence for Sheryheyar.
The sentencing hearing for both brothers is currently set before U.S. District Judge Beth Bloom on June 5 in the Southern District of Florida.
Raees Alam Qazi and Sheheryar Alam Qazi face a potential statutory maximum sentence of 35 years and 20 years, respectively.
The brothers are naturalized U.S. citizens from Pakistan.
The case was investigated by the FBI’s Miami Field Office and the South Florida JTTF. The case is being prosecuted by Assistant U.S. Attorneys Karen E. Gilbert and Adam S. Fels of the Southern District of Florida, and Trial Attorney Jennifer E. Levy of the Justice Department’s National Security Division.
Attachments:
Factual Basis in Support of Plea - Qazi, Raees Alam (PDF)
PleaAgreement - Qazi, Raees Alam (PDF)
PleaAgreement - Qazi, Sheheryar Alam (PDF)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.
Twenty Individuals and One Corporation Indicted for Conspiracy to Commit $30 Million in Health Care FraudRead the Press Release
U.S. Attorney Kenneth A. Polite announced that a 26-count indictment was returned against twenty individuals and one corporation, charging approximately $30,052,295 in Medicare fraud.
Specifically, LISA A. CRINEL, age 51; WILNEISHA HARRISON JAKES, age 28; HENRY EVANS, age 70; THREASA ADDERLEY, age 63; MICHAEL JONES, age 45; PAULA JONES, age 44; SHELTON BARNES, age 61; CARY PAYTON, age 60; EVELYN ODOMS, age 63; SHEILA MATHIEU, age 46; SUPRENIA WASHINGTON, age 58; ERICA EDWARDS, age 30; ZELLISHA DEJEAN, age 36; CAREN BATTAGLIA, age 48; SHEILA HOPKINS, age 62; VERINESE SUTTON, age 62, all of New Orleans; JONATHON NORA, age 27, of River Ridge; ELESHIA WILLIAMS, age 44, of Harvey; and PCAH, INC. a/k/a PRIORITY CARE AT HOME, INC. (PCAH) d/b/a ABIDE HOME CARE SERVICES, INC., a Louisiana corporation, were indicted today for conspiracy to commit health care fraud, conspiracy to defraud the United States and to receive and pay health care kickbacks, and health care fraud. CLARA AITCH, age 39, of New Orleans, and WENDY ERVIN, age 41, of Laplace, were indicted for conspiracy to commit wire fraud along with CRINEL and JAKES. CRINEL is also charged with wire fraud.
According to the indictment, the defendants participated in a criminal organization for the purpose of fraudulently billing Medicare. CRINEL was the owner and operator of a home health company known as ABIDE. Through her operation of ABIDE, CRINEL and her daughter JAKES, as Chief Administrative Officer, hired “House Doctors” to sign orders and plans of care for Medicare beneficiaries who had no legitimate medical necessity for home health services. The House Doctors, including DRS. BARNES, EVANS, ADDERLEY and MICHAEL JONES, falsely signed home health orders regardless of the beneficiary’s needs, homebound status, or diagnoses. In return, DRS. BARNES, EVANS, and ADDERLEY received monthly payments fraudulently characterized as medical consultant or director fees for which they provided no services other than fraudulently certifying Medicare beneficiaries for unnecessary home health services. Instead of making monthly payments to DR. MICHAEL JONES like the other House Doctors, CRINEL and ABIDE hired PAULA JONES, DR. MICHAEL JONES’s wife, and thereafter, inflated salary payments to PAULA JONES, representing MICHAEL JONES’s fees for fraudulently certifying home health for ineligible Medicare beneficiaries.
WILLIAMS and other ABIDE marketers contacted JONATHON NORA and others to confirm that the person fraudulently referred for home health was a Medicare beneficiary. Once NORA determined the referred individual was a Medicare beneficiary, NORA scheduled a physician visit, usually with an ABIDE House Doctor, knowing that the individual referral to ABIDE was by a Marketer, instead of the beneficiary’s own health care professional.
Registered nurses, including MATHIEU, EDWARDS, WASHINGTON, DEJEAN, and HOPKINS were assigned to go to the homes of Medicare beneficiaries to complete assessments that determined the necessary level of care required for the beneficiary and the reimbursement rate for the claims made by ABIDE. When MATHIEU, EDWARDS, WASHINGTON, DEJEAN and HOPKINS, completed these assessments, they routinely and fraudulently included a group of diagnoses that were unrelated to the needs of the beneficiaries and included items suggesting the need for assistance with different activities of daily living in order to falsely inflate the reimbursement rates paid by Medicare to ABIDE. MATHIEU, EDWARDS, WASHINGTON, HOPKINS and DEJEAN also fraudulently included other items in the assessment to falsely document the beneficiary’s homebound status.
After assessments were completed, ABIDE generated plans of care reflecting the falsely created assessments. The plans of care were given to DRS. BARNES, EVANS, ADDERLEY and MICHAEL JONES to falsely certify and recertify medically unnecessary episodes of home health. Licensed practical nurses (LPNs) assigned to beneficiaries, including ODOM, PAYTON and BATTAGLIA, performed skilled nursing visits usually once a week, and ODOM, PAYTON and BATTAGLIA routinely falsified documentation of visits to support the ongoing fraudulent billing by PAULA JONES, on behalf of ABIDE, of medically unnecessary home health services.
In the wire fraud conspiracy and three individual wire counts, CRINEL is charged with filing fraudulent applications for relief relating to the April 20, 2010 explosion and fire which occurred on the Deepwater Horizon, an oil rig in the Gulf of Mexico where British Petroleum (BP) had been drilling a well. After the disaster, BP established the Gulf Coast Claims Facility (GCCF) to administer, mediate, and settle claims of individuals and businesses for losses incurred as a result of the Deepwater Horizon incident. The GCCF began receiving and processing such claims in August 2010. The GCCF required any individual filing a claim to submit valid documentation as proof of loss or reduction in earnings due to the oil spill. CRINEL and a Georgia accountant created false documentation on behalf of AITCH, ERVIN, and JAKES, to include in fraudulent applications for reimbursement for lost wages. The false documentation stated that AITCH, ERVIN and JAKES, at the time of the BP disaster, were employed by LACE, a reception hall owned and operated by CRINEL, when, in truth, AITCH and ERVIN were full time employees of ABIDE and JAKES was attending school out of state. After AITCH and ERVIN received payments from BP, they had to kick back some of the funds to CRINEL. The loss to BP from the fraudulent claims totals $37,800.
If convicted, the defendants face the following possible maximum terms of imprisonment:
- VERINESE SUTTON, CLARA AITCH and WENDY ERVIN - 5 years;
- JONATHON NORA - 10 years;
- ELESHIA WILLIAMS, PAULA JONES and CARY PAYTON - 15 years;
- ERICA EDWARDS, WILNEISHA HARRISON JAKES and SUPRENIA WASHINGTON - 20 years;
- CAREN BATTAGLIA and ZELLISHA DEJEAN - 30 years;
- DRS. HENRY EVANS and MICHAEL JONES - 35 years;
- SHEILA MATHIEU - 35 years;
- EVELYN ODOMS - 50 years;
- SHEILA HOPKINS - 80 years;
- DR. SHELTON BARNES - 85 years;
- THRESA ADDERLEY – 85 years; and
- LISA A. CRINEL - 270 years.
For each count for which any defendant is convicted, they are subject to a $250,000 fine. And, if convicted, PCAH, INC. a/k/a PRIORITY CARE AT HOME, INC. (PCAH) d/b/a ABIDE HOME CARE SERVICES, INC. faces millions in fines.
The indictment also charges forfeiture of property including real estate, bank and life insurance accounts, and jewelry purchased with the proceeds of health care fraud.
U. S. Attorney Polite reiterated that the indictment is merely a charge and that the guilt of the defendants must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation; and the U.S. Department of Health and Human Services, Office of Inspector General in this ongoing investigation. Assistant U.S. Attorneys Patrice Harris Sullivan, Sharan Lieberman and Andre Lagarde are in charge of the prosecution.
Twenty Individuals and One Corporation Indicted for Conspiracy to Commit $30 Million in Health Care FraudRead the Press Release
U.S. Attorney Kenneth A. Polite announced that a 26-count indictment was returned against twenty individuals and one corporation, charging approximately $30,052,295 in Medicare fraud.
Specifically, LISA A. CRINEL, age 51; WILNEISHA HARRISON JAKES, age 28; HENRY EVANS, age 70; THREASA ADDERLEY, age 63; MICHAEL JONES, age 45; PAULA JONES, age 44; SHELTON BARNES, age 61; CARY PAYTON, age 60; EVELYN ODOMS, age 63; SHEILA MATHIEU, age 46; SUPRENIA WASHINGTON, age 58; ERICA EDWARDS, age 30; ZELLISHA DEJEAN, age 36; CAREN BATTAGLIA, age 48; SHEILA HOPKINS, age 62; VERINESE SUTTON, age 62, all of New Orleans; JONATHON NORA, age 27, of River Ridge; ELESHIA WILLIAMS, age 44, of Harvey; and PCAH, INC. a/k/a PRIORITY CARE AT HOME, INC. (PCAH) d/b/a ABIDE HOME CARE SERVICES, INC., a Louisiana corporation, were indicted today for conspiracy to commit health care fraud, conspiracy to defraud the United States and to receive and pay health care kickbacks, and health care fraud. CLARA AITCH, age 39, of New Orleans, and WENDY ERVIN, age 41, of Laplace, were indicted for conspiracy to commit wire fraud along with CRINEL and JAKES. CRINEL is also charged with wire fraud.
According to the indictment, the defendants participated in a criminal organization for the purpose of fraudulently billing Medicare. CRINEL was the owner and operator of a home health company known as ABIDE. Through her operation of ABIDE, CRINEL and her daughter JAKES, as Chief Administrative Officer, hired “House Doctors” to sign orders and plans of care for Medicare beneficiaries who had no legitimate medical necessity for home health services. The House Doctors, including DRS. BARNES, EVANS, ADDERLEY and MICHAEL JONES, falsely signed home health orders regardless of the beneficiary’s needs, homebound status, or diagnoses. In return, DRS. BARNES, EVANS, and ADDERLEY received monthly payments fraudulently characterized as medical consultant or director fees for which they provided no services other than fraudulently certifying Medicare beneficiaries for unnecessary home health services. Instead of making monthly payments to DR. MICHAEL JONES like the other House Doctors, CRINEL and ABIDE hired PAULA JONES, DR. MICHAEL JONES’s wife, and thereafter, inflated salary payments to PAULA JONES, representing MICHAEL JONES’s fees for fraudulently certifying home health for ineligible Medicare beneficiaries.
WILLIAMS and other ABIDE marketers contacted JONATHON NORA and others to confirm that the person fraudulently referred for home health was a Medicare beneficiary. Once NORA determined the referred individual was a Medicare beneficiary, NORA scheduled a physician visit, usually with an ABIDE House Doctor, knowing that the individual referral to ABIDE was by a Marketer, instead of the beneficiary’s own health care professional.
Registered nurses, including MATHIEU, EDWARDS, WASHINGTON, DEJEAN, and HOPKINS were assigned to go to the homes of Medicare beneficiaries to complete assessments that determined the necessary level of care required for the beneficiary and the reimbursement rate for the claims made by ABIDE. When MATHIEU, EDWARDS, WASHINGTON, DEJEAN and HOPKINS, completed these assessments, they routinely and fraudulently included a group of diagnoses that were unrelated to the needs of the beneficiaries and included items suggesting the need for assistance with different activities of daily living in order to falsely inflate the reimbursement rates paid by Medicare to ABIDE. MATHIEU, EDWARDS, WASHINGTON, HOPKINS and DEJEAN also fraudulently included other items in the assessment to falsely document the beneficiary’s homebound status.
After assessments were completed, ABIDE generated plans of care reflecting the falsely created assessments. The plans of care were given to DRS. BARNES, EVANS, ADDERLEY and MICHAEL JONES to falsely certify and recertify medically unnecessary episodes of home health. Licensed practical nurses (LPNs) assigned to beneficiaries, including ODOM, PAYTON and BATTAGLIA, performed skilled nursing visits usually once a week, and ODOM, PAYTON and BATTAGLIA routinely falsified documentation of visits to support the ongoing fraudulent billing by PAULA JONES, on behalf of ABIDE, of medically unnecessary home health services.
In the wire fraud conspiracy and three individual wire counts, CRINEL is charged with filing fraudulent applications for relief relating to the April 20, 2010 explosion and fire which occurred on the Deepwater Horizon, an oil rig in the Gulf of Mexico where British Petroleum (BP) had been drilling a well. After the disaster, BP established the Gulf Coast Claims Facility (GCCF) to administer, mediate, and settle claims of individuals and businesses for losses incurred as a result of the Deepwater Horizon incident. The GCCF began receiving and processing such claims in August 2010. The GCCF required any individual filing a claim to submit valid documentation as proof of loss or reduction in earnings due to the oil spill. CRINEL and a Georgia accountant created false documentation on behalf of AITCH, ERVIN, and JAKES, to include in fraudulent applications for reimbursement for lost wages. The false documentation stated that AITCH, ERVIN and JAKES, at the time of the BP disaster, were employed by LACE, a reception hall owned and operated by CRINEL, when, in truth, AITCH and ERVIN were full time employees of ABIDE and JAKES was attending school out of state. After AITCH and ERVIN received payments from BP, they had to kick back some of the funds to CRINEL. The loss to BP from the fraudulent claims totals $37,800.
If convicted, the defendants face the following possible maximum terms of imprisonment:
- VERINESE SUTTON, CLARA AITCH and WENDY ERVIN - 5 years;
- JONATHON NORA - 10 years;
- ELESHIA WILLIAMS, PAULA JONES and CARY PAYTON - 15 years;
- ERICA EDWARDS, WILNEISHA HARRISON JAKES and SUPRENIA WASHINGTON - 20 years;
- CAREN BATTAGLIA and ZELLISHA DEJEAN - 30 years;
- DRS. HENRY EVANS and MICHAEL JONES - 35 years;
- SHEILA MATHIEU - 35 years;
- EVELYN ODOMS - 50 years;
- SHEILA HOPKINS - 80 years;
- DR. SHELTON BARNES - 85 years;
- THRESA ADDERLEY – 85 years; and
- LISA A. CRINEL - 270 years.
For each count for which any defendant is convicted, they are subject to a $250,000 fine. And, if convicted, PCAH, INC. a/k/a PRIORITY CARE AT HOME, INC. (PCAH) d/b/a ABIDE HOME CARE SERVICES, INC. faces millions in fines.
The indictment also charges forfeiture of property including real estate, bank and life insurance accounts, and jewelry purchased with the proceeds of health care fraud.
U. S. Attorney Polite reiterated that the indictment is merely a charge and that the guilt of the defendants must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation; and the U.S. Department of Health and Human Services, Office of Inspector General in this ongoing investigation. Assistant U.S. Attorneys Patrice Harris Sullivan, Sharan Lieberman and Andre Lagarde are in charge of the prosecution.
Toledo Man Charged with Receiving and Distributing Child PornographyRead the Press Release
An indictment was unsealed today charging a Toledo man with crimes related to child pornography, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Dennis Orzechowski, 50, is charged with receiving and distributing child pornography between March 2014 and April 2014 and possessing child pornography on September 11, 2014.
If convicted, the defendant’s sentence will be determined by the Court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, and the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agency in this case is the United States Secret Service, Toledo Resident Agency, and the Sylvania Police Department. The case is being handled by Assistant United States Attorney Noah P. Hood.
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.
Tobacco Broker Pleads Guilty to Structuring Financial Transactions to Evade Reporting ObligationsRead the Press Release
RALEIGH - United States Attorney Thomas Walker announced that yesterday in federal court, DAVID THOMAS STEPHENSON, III , 68, of Lumberton, NC, waived indictment and pled guilty to a Criminal Information charging him with structuring transactions to evade reporting requirements and aiding and abetting the same. Structuring is the breaking up of a single cash transaction of more than $10,000 into two or more separate transactions for the purpose of evading the federal reporting requirement. Federal law requires banks and other financial institutions to file Currency Transaction Reports with the U.S. Treasury Department for all cash transactions that exceed $10,000.
According to the Criminal Information filed on January 26, 2015, and information presented in open court, STEPHENSON was a tobacco warehouseman in Lumberton, NC and former board member for the Golden Leaf Foundation. He operated a tobacco warehouse/tobacco receiving station under the name of S & P Tobacco Marketing. STEPHENSON also operated as an independent tobacco broker, buying and selling tobacco on his own. On his tax returns, STEPHENSON failed to report all of his tobacco purchases and sales.
Between 2009 and 2012, STEPHENSON converted tobacco checks made payable to him and others (third party checks) to cash by withholding cash from deposits, exchanging tobacco checks for cashier’s checks, mainly in amounts less than $10,000, that were subsequently cashed or converted to additional cashier’s checks that were cashed, and by making cash withdrawals after tobacco checks and cashier’s checks were deposited.
During that same time frame, STEPHENSON structured $382,562.37 in financial transactions to evade the $10,000 trigger for the filing of currency transaction reports. He did so at three domestic financial institutions. STEPHENSON structured the transactions as part of a pattern of illegal activity involving more than $100,000 in a 12-month period. Between September 2011 and January 2012, he structured just over $150,000, with transactions in varying amounts such as $9,500; $9,600; and $9,700.
At sentencing, set for the June 15, 2015, term of court, STEPHENSON faces up to 10 years imprisonment followed by up to 3 years of supervised release and a fine of $500,000. This case is part of the ongoing investigation of crop insurance fraud in the Eastern District of North Carolina.
The criminal investigation of this case was conducted by United States Department of Agriculture – Office of the Inspector General – Investigations, the United States Department of Agriculture - Risk Management Agency – Special Investigations Branch, and the Internal Revenue Service - Criminal Investigations. Assistant United States Attorney Banumathi Rangarajan is handling the prosecution on behalf of the Eastern District of North Carolina.
Three Sentenced for Roles in Mortgage Fraud SchemeRead the Press Release
RICHMOND, Va. – Marvin Leon Clair, 61, of Richmond, Virginia, was sentenced today to sixty months in prison, followed by three years of supervised release, for Conspiring to Commit Mail Fraud, Wire Fraud, and Making False Statements to FDIC-Insured Institutions. He was also ordered to pay restitution in the amount of $1,770,670.72. Two other defendants were also sentenced on charges arising from the same scheme. Janelle Irene Davis, 47, of Waynesboro, Virginia, and Jeffrey Paul Evans, 53, of Waldorf, Maryland, were each sentenced to one day of incarceration followed by three years of supervised release and seven months of home detention for, respectively, Conspiring to Commit Mail Fraud, Wire Fraud, and Make False Statements to FDIC-Insured Institutions and Bank Fraud. Davis was ordered to pay restitution in the amount of $818,978 and Evans was ordered to pay restitution in the amount of $777,283.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case Nos. 3:13-mj-447, 3:13-cr-172, 3:14-cr-14, and 3:14-cr-168.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Adam Lee, Special Agent-in-Charge of the Federal Bureau of Investigation Richmond Field Office; Cary Rubenstein, Special-Agent-in-Charge of the HUD-OIG Philadelphia Field Office; Gary Barksdale, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service; and Douglas S. Mease, Special Agent-in-Charge of the U.S. Secret Service Richmond Field Office, made the announcement after sentencing by U.S. Senior District Judge Robert E. Payne.
Clair pled guilty on September 10, 2014. Davis pled guilty on February 25, 2014. Evans pled guilty on February 7, 2014. According to court documents, Clair, Davis, and Evans were all involved in a scheme to obtain mortgage loans by making false statements about income, assets, and liabilities on loan applications and about the disposition of closing proceeds on HUD-1 settlement statements. Many of the transactions were closed by Walter L. Hooker, a Richmond attorney. Hooker was charged with Conspiracy to Commit Bank Fraud via criminal information, but died before adjudication of that charge.
Two other defendants have been sentenced on charges arising from this scheme. On October 27, 2014, Tiffany Nicole Robinson was sentenced to time-served followed by three years of supervised release and ordered to pay $352,975 in restitution. On March 18, 2014, Magarette Stanton, who was employed in Hooker’s office, was sentenced to five years of probation and ordered to pay $204,803.04 in restitution.
This case was investigated by the Federal Bureau of Investigation; Department of Housing and Urban Development—Office of Inspector General; U.S. Postal Inspection Service; and U.S. Secret Service. Assistant U.S. Attorney Michael C. Moore is prosecuting the case on behalf of the United States.Three Harrisburg Men Sentenced for Cracker Barrel Armed RobberyRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that George Stoney, age 40, Tory Dobbin, age 41, and Nathaniel Mosley, age 43, all from Harrisburg, were sentenced after pleading guilty to armed robbery and use of a firearm during a crime of violence.
Stoney was sentenced by United States District Court Judge Sylvia H. Rambo on March 12, 2015 to 188 months’ imprisonment, Dobbin was sentenced on March 9, 2015 to 210 months’ imprisonment, and Mosley was sentenced on December 3, 2014 to 168 months’ imprisonment.
According to U.S. Attorney Peter Smith, on December 3, 2013, Mosley, Dobbin and Stoney robbed the Cracker Barrel restaurant on Brindle Road in Harrisburg at gunpoint. The Susquehanna Township Police Department was alerted after a caller advised that individuals were inside the building robbing the restaurant. Officers arrived almost immediately and set up a perimeter around the building. Shortly thereafter three men wearing masks exited the restaurant and fled on foot. After a brief pursuit, all three men were apprehended. Officers located the stolen money and seized three firearms. All three men were federally charged on January 15, 2014.
The investigation was conducted by the Federal Bureau of Investigation Capital City Safe Streets Task Force and the Susquehanna Township Police Department. The case was prosecuted by Assistant United States Attorney Daryl F. Bloom.
Ten Members and Associates of Decavalcante Organized Crime Family ArrestedRead the Press Release
Charged With Murder Plot, Cocaine Distribution and Prostitution Business
NEWARK, N.J. – Ten members and associates of the DeCavalcante organized crime family of La Cosa Nostra were arrested today and charged with various plots to commit murder, distribute drugs and run a prostitution business, U.S. Attorney Paul J. Fishman announced.
Charles Stango, 71, of Henderson, Nevada; Frank Nigro, 72, of Toms River, New Jersey; and Paul Colella, 68, of Toms River, were arrested this morning and charged by complaint for their roles in a plot to kill a rival gang member. Charles Stango was also charged along with his son, Anthony Stango, 33 of Brick, New Jersey, with conspiring with members of his New Jersey-based “crew” to distribute cocaine and run a prostitution business. John Capozzi, 34, of Union, New Jersey; Mario Galli, 23, of Toms River, New Jersey; and Nicholas Degidio, 37, of Union, New Jersey, were also charged with cocaine distribution.
“Though its ranks have been thinned by countless convictions and its own internal bloodletting, traditional organized crime remains a real problem,” U.S. Attorney Fishman said. “As today’s complaint shows, members and associates of a long-standing organized crime family continue to ply their illegal trade, selling dangerous drugs and illegal cigarettes, promoting prostitution and threatening to settle internal scores with violence and death.”
“Today Newark FBI arrested 10 members of the DeCavalcante organized crime family, disrupting one of the most notorious crime families,” FBI Special Agent in Charge Richard M. Frankel said. “The FBI is confident this is a severe blow to the La Cosa Nostra family. It is also a message to La Cosa Nostra that FBI Newark will do everything possible within in its legal powers to eradicate La Cosa Nostra from New Jersey.
“The Commission remains committed to working with all its law enforcement partners to eliminate organized crime in and around the port district,” Walter Arsenault, Executive Director of the Waterfront Commission of New York Harbor, said.
According to the complaint unsealed today: Stango, a captain in the DeCavalcante family, allegedly sought and obtained permission from Nigro, the crime family’s consigliore – or counsel – and other upper-echelon members of the crime family, to kill a rival member living in New Jersey. Colella’s role was to speak on behalf of Charles Stango to ensure the killing would be approved by other ranking members. Charles Stango discussed his plans with an undercover agent, which included hiring two members of an outlaw biker gang to shoot the rival gang member.
Charles and Anthony Stango also allegedly planned to operate a high-end escort service targeting white collar businessmen and professionals in the Toms River area. As part of the plan, their crew would establish a legal club as a front for the prostitution business in order to avoid law enforcement scrutiny.
On several occasions between Dec. 12, 2014, and March 9, 2015, Stango and various conspirators were audio or video recorded conducting drug transactions with an undercover law enforcement officer.
Authorities also arrested three members of a separate “crew” of the crime family: James Heeney, 35, of Elizabeth, New Jersey, and Rosario Pali, 35, of Linden, New Jersey, were charged with conspiring to distribute more than 500 grams of cocaine. Heeney and Pali were recorded on various occasions between Aug. 29, 2012, and March 14, 2013, providing undercover officers with quantities of cocaine in exchange for cash and counterfeit goods. Luigi Oliveri, 41, of Elizabeth, was charged with the possession of contraband cigarettes. Between June 6, 2013, and Nov. 6, 2013, Oliveri bought multiple cases of untaxed cigarettes from undercover law enforcement officers.
All of the defendants arrested in New Jersey are scheduled to appear this afternoon before U.S. Magistrate Judge Mark Falk in Newark federal court. Charles Stango is scheduled to appear later today before U.S. Magistrate Judge Nancy Koppe in Las Vegas, Nevada, federal court.
U.S. Attorney Fishman credited the members of the FBI’s Organized Crime Task Force under the direction of Special Agent in Charge Richard M. Frankel in Newark; the Waterfront Commission of New York Harbor, under the direction of Executive Director Walter Arsenault; the Bayonne Police Department, under the direction of Chief Drew Niekrasz; and the N.J. State Commission of Investigation, under the direction of Chairman Joseph F. Scancarella, with the investigation leading to today’s charges. He also thanked the FBI’s Las Vegas office and the Union County Prosecutor’s Office for their roles in the investigation.
The government is represented by Senior Litigation Counsel V. Grady O’Malley and Assistant U.S. Attorney James Donnelly of the U.S. Attorney’s Office’s Organized Crime/Gangs Unit.15-088
Stango, Charles et al. Complaint
Heeney, James & Pali, Rosario Complaint
Oliveri, Luigi Complaint