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25 February 2015
Florida Telemarketer Pleads Guilty in Multimillion Dollar ScamRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that on February 25, 2015, James Currey, 55, of Orlando, FL, pled guilty to one count of conspiracy to commit mail and wire fraud in connection with telemarketing. The investigation determined that Currey was a telemarketer for National Solutions and related companies from October 7, 2010 until June 10, 2011.
Located in Orlando, Florida, National Solutions defrauded consumers across the continent using the fictitious names, Bluescape Timeshares International, Country Wide Timeshares, Countrywide Timeshares MA, Landmark Timeshares, Propertys Direct, Quicksale Propertys, Sun Property Networks, Sun Property’s, Universal Propertys, VIM Timeshares, Propertys DRK, Quick Sale Advisers, Quick Sale International, City Resorts, Resort Advisers, American Timeshares, Exit Week, and Resort Advisors International. National Solutions targeted owners of timeshares throughout the United States and Canada. In various court filings related to the National Solutions scam, the government has alleged that the overall scam bilked over 2,500 consumers out of at least $6 million, including eight victims within the Southern District of Illinois. Sentencing is set for June 12, 2015. Currey will face up to 25 years in prison, a fine of up to $250,000, and up to 5 years of supervised release.
This prosecution is one of nearly 75 timeshare resale fraud prosecutions brought in the Southern District of Illinois over the past four years. The case is part of an ongoing investigation by the Midwest Region Office of the Federal Trade Commission and the St. Louis Field Office of the Chicago Division of the United States Postal Service. The prosecution of this case is being handled by Assistant United States Attorneys Scott Verseman and Michael Hallock.
Felon Charged with Possessing Heroin, Three Loaded WeaponsRead the Press Release
PITTSBURGH – An Allegheny County man has been indicted by a federal grand jury in Pittsburgh on charges of possession with intent to distribute 100 grams or more of heroin, possession of firearms in furtherance of a drug trafficking crime, and possession of firearms by a convicted felon, United States Attorney David J. Hickton announced today.
The three-count indictment, returned on Feb. 24, named Antonuan Smith, 28, of Munhall, Pa.
According to the Indictment, on Dec. 23, 2014, Smith possessed over 100 grams of heroin, and with that heroin, possessed three firearms, including a loaded Taurus .40 caliber semi- automatic, a loaded Smith and Wesson .380 caliber semi-automatic, and a loaded .22 caliber assault rifle. Smith allegedly possessed those firearms in furtherance of his drug trafficking. Further, it is unlawful for Smith, who has previously been convicted of felony offenses, to possess firearms or ammunition.
The law provides for a maximum total sentence of not less than 10 years and up to life in prison, a fine of $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history of the defendant.
Assistant United States Attorney Eric S. Rosen is prosecuting this case on behalf of the government.
The Munhall Police Department, the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Federal Indictments Returned Against Jackson-Area Residents in Health Care Fraud Scheme Targeting Medicare Card-HoldersRead the Press Release
Jackson, Tenn. – Calvin Bailey, 64, of Jackson, Tennessee; Sandra Bailey, 64, of Jackson, Tennessee; and Cindy Mallard, 49, of Bradford, Tennessee; have been charged in an indictment alleging a conspiracy to commit health care fraud and to pay illegal kickbacks in connection with health care services, announced United States Attorney for the Western District of Tennessee, Edward L. Stanton III. Sandra Bailey was also indicted for eight counts of health care fraud and nine counts of paying illegal kickbacks to health care providers and patient-referral sources.
Initial appearances for all three defendants were held today at the United States Courthouse in Jackson, Tennessee, and all were released on bond. Sandra Bailey and Mallard each worked for several years in health care businesses in the Jackson, Tennessee area. Calvin Bailey has been employed as the principal at Medina Middle School in Medina, Tennessee, and has also been employed by medical equipment supply companies.
According to the indictment, Sandra Bailey and Calvin Bailey paid illegal kickbacks to referral sources to identify Medicare card-holders. Sandra Bailey and, on at least one occasion, Calvin Bailey, marketed power wheelchairs and back braces to the Medicare card-holders. Sandra Bailey told targeted Medicare card-holders that the equipment would be free and told card-holders that they needed to get the wheelchairs whether they were needed or not because Medicare might stop paying for them. Although Medicare paid only 80% of the costs for wheelchairs, some of the card-holders had secondary insurance carriers, including TennCare and TriCare, who paid the remaining 20%. For patients without secondary insurance, the defendants helped the patients fill out forms that would waive the requirement for any payment by the card-holder.
In addition to the illegal kickbacks to referral sources, Sandra Bailey also made illegal kickback payments to some health care providers who performed – or who were supposed to have performed – face-to-face evaluations of card-holders to qualify the card-holders for power wheelchairs. Cindy Mallard, who was the office manager at the Medina Family Medical Clinic in Medina, Tennessee, assisted Sandra Bailey by visiting card-holders with Sandra Bailey and filling out forms that were supposed to be filled out during a face-to-face evaluation of a patient by a physician or other qualified health care provider. Mallard then assisted Sandra Bailey in getting those forms signed by providers who were supposed to have conducted face-to-face evaluations of the card-holders. Mallard also received kickback payments on behalf of one of the health care providers who signed the forms.
After the defendants identified card-holders and arranged for evaluation paperwork to be submitted to Medicare for payment for medical equipment, sales commissions were then paid to Calvin Bailey, Sandra Bailey, Mallard, or other members of the Baileys’ and Mallard’s families.
This investigation is being conducted by the Department of Health and Human Services-Office of the Inspector General, the Federal Bureau of Investigation and the Tennessee Bureau of Investigation. Assistant U.S. Attorney John Fabian represents the government.
The charges and allegations contained in indictments are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Spanish Version
Farmer Charged with Crop Insurance FraudRead the Press Release
CORPUS CHRISTI, Texas – Leon Bernsen Jr., 65, of Corpus Christi, has been indicted for federal crop insurance fraud, announced U.S. Attorney Kenneth Magidson.
The indictment alleges Bernsen, who farms under the name Bernsen Farms, purchased a crop insurance policy from a company that contracted with the Federal Crop Insurance Corporation. Bernsen allegedly ginned more than 300 bales of cotton under a fictitious business name at a cotton gin in Robstown. Bernsen then filed a crop insurance claim and withheld the production of the bales of cotton from the insurance company resulting in fraudulent crop insurance payments, according to the allegations.
Bernsen is expected to make an initial appearance before a U.S. magistrate judge in Corpus Christi in the near future.
If convicted, Bernsen faces up to 30 years in federal prison.
Criminal investigation was conducted by the U.S. Department of Agriculture - Office of Inspector General. Assistant U.S. Attorney Hugo R. Martinez is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Former Commissioner of Mississippi Department of Corrections and Local Businessman Plead Guilty in Federal CourtRead the Press Release
Jackson, Miss – Christopher B. Epps, former Commissioner for the Mississippi Department of Corrections, and Cecil McCrory, a former Mississippi legislator, former Justice Court Judge, former Chairman of the Rankin County School Board, and a local businessman, entered guilty pleas today before U.S. District Judge Henry Wingate, announced Acting U.S. Attorney Harold Brittain, FBI Special Agent in Charge Donald Alway, IRS-Criminal Investigation Acting Special Agent in Charge Jerome R. McDuffie, U.S. Postal Inspector in Charge Robert Wemyss, and Mississippi State Auditor Stacey Pickering.
Christopher Epps pled guilty to one count of money laundering conspiracy and one count of filing a false tax return. Cecil McCrory pled guilty to one count of money laundering conspiracy.
Epps will be sentenced on June 9, 2015 at 9:30 a.m. and McCrory will be sentenced on June 10, 2015 at 9:30 a.m. The maximum penalty for money laundering conspiracy is 20 years in prison and a $500,000 fine or twice the value of the property involved in the transaction. The maximum penalty for filing a false tax return is three years in prison and a $250,000 fine.
This case was investigated by the FBI, IRS-Criminal Investigation, U.S. Postal Inspection Service, Mississippi State Auditor’s Office, and the Leake County Sheriff’s Office.
Assistant U.S. Attorneys Mike Hurst, Darren LaMarca, and Scott Gilbert, as well as financial analyst Kim Mitchell, are prosecuting the case.
Duquesne Teen Involved in Heroin Trafficking Scheme Gets 57-Month Prison SentenceRead the Press Release
PITTSBURGH – An Allegheny County resident has been sentenced in federal court to 57 months in jail for a charge of conspiracy to possess with intent to distribute and distribute one kilogram or more of heroin, and a charge of possession with intent to distribute and distribution of less than 100 grams of heroin, United States Attorney David J. Hickton announced today.
Chief United States District Judge Joy Flowers Conti imposed the sentence on Rahde Williamson, 19, formerly of Duquesne, Pa.
According to information presented to the court, from in and around January of 2014, and continuing thereafter to in and around April of 2014, Williamson conspired with others to possess with intent to distribute and distribute one kilogram or more of heroin and Williamson possessed with intent to distribute less than 100 grams of heroin.
Assistant United States Attorneys Amy L. Johnston and Cindy K. Chung prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation, the FBI Greater Pittsburgh Safe Street Task Force, 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 for the investigation leading to the successful prosecution of Williamson.
District Man Sentenced to 12-Year Prison Term for Attacking Woman in Alley, Then Assaulting Police Neighbors Heard Woman’s Screams, Called 911Read the Press Release
WASHINGTON - Kirk Cheeks, 45, of Washington, D.C., was sentenced today to 12 years in prison for abducting and assaulting a woman in an alley and then firing a gun during a confrontation with police, U.S. Attorney Ronald C. Machen Jr. announced.
Cheeks pled guilty in December 2014, in the U.S. District Court for the District of Columbia, to charges of kidnapping and assault with a dangerous weapon. The plea, which was contingent upon the Court’s approval, called for a 12-year prison sentence. The Honorable Colleen Kollar-Kotelly accepted the plea and sentenced Cheeks accordingly. Upon completion of his prison term, Cheeks will be placed on five years of supervised release.
A federal grand jury indicted Cheeks in June 2014 on federal and District of Columbia offenses. He pled guilty to two of the District of Columbia offenses. The defendant has prior convictions for drug, weapons, and felony assault offenses.
According to the government’s evidence, Cheeks encountered the victim early Feb. 2, 2014, in the area of the 700 block of Girard Street NW. He invited her to walk to his home and drink alcohol, to which she agreed. While walking through the alley behind the 700 block of Girard Street, he put her in a chokehold and dragged her to the rear of a building and down an incline next to the building. Neighbors heard her cry for help and called 911.
Officers from the Metropolitan Police Department (MPD) responded to the alley within minutes of the 911 calls. When officers arrived, they saw Cheeks on top of the victim, and saw that he was holding his hand over the victim’s mouth, telling her to “shut up.” An officer pulled Cheeks off the victim and directed him to walk up the incline to the alley, where other officers were waiting for him. Cheeks, however, resisted and began struggling with officers. He pointed a gun at one of the officers, and during the struggle it discharged a round. After further struggling with officers, the defendant was eventually placed in handcuffs.
The victim reported to detectives that Cheeks had smothered her, stuck a gun to her head, and raped her. In his guilty plea, Cheeks denied sexually assaulting her.
In announcing the sentence, U.S. Attorney Machen commended the work of the officers and detectives of the Metropolitan Police Department’s Third District and Sexual Assault Unit, who investigated the case. He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Criminal Investigator John Marsh; Victim/Witness Advocate Lezlie Richardson; Paralegal Specialist Jason Manuel, and Assistant U.S. Attorney Arvind K. Lal, who assisted with forfeiture issues.
Finally, he expressed appreciation for the work of Assistant U.S. Attorneys Amy H. Zubrensky and Cassidy Kesler Pinegar, who prosecuted the case.
15-031
Detroit Scrap Recycler Agrees to Settlement with United States to Reduce PollutionRead the Press Release
A Detroit scrap metal and iron recycling company has agreed to pay a $25,000 penalty and implement a compliance program to resolve allegations that it violated the Clean Air Act, U.S. Attorney Barbara L. McQuade announced today.
Joining McQuade in the announcement was Susan Hedman, Administrator of Region 5 of the Environmental Protection Agency.
The settlement resolves a lawsuit brought by the U.S. Attorney’s Office and the Environmental Protection Agency against Basic Recycling, alleging that its facility on Fulton Avenue in Detroit was releasing harmful chlorofluorocarbons (CFCs) into the environment. CFCs cause ozone depletion and have harmful effects on human health.
Under the settlement, Basic Recycling agreed to implement a Clean Air Act compliance program at its facility to eliminate the harmful release of CFCs.
The settlement requires Basic Recycling to pay a civil penalty of $25,000 and comply with all environmental regulations in accepting and processing small appliances which present a risk of harmful CFC emissions.
“This settlement will protect the health of Detroit residents and ensure cleaner air for future generations,” McQuade said.
“This settlement will help to preserve the earth’s ozone layer, which protects us from harmful radiation,” EPA Region 5 Administrator Hedman said. “Basic Recycling will also take steps to improve air quality in a community that has been disproportionately impacted by environmental contamination.”
While Basic Recycling did not admit any of the violations alleged by the government, it has agreed to all compliance provisions.
The settlement was lodged with the U.S. District Court for the Eastern District of Michigan and will be subject to a 30-day public comment period and final court approval. It can be viewed at: http://www.usdoj.gov/enrd/Consent_Decrees.html and will appear in the Federal Register. Comments can be directed to Assistant Attorney General, Environment and Natural Resources Division, with reference to United States v. Basic Recycling.Detroit Area Patient Recruiter and Physical Therapist Convicted in $1.6 Million Medicare Fraud SchemeRead the Press Release
A federal jury in Detroit today convicted a patient recruiter and a physical therapist for their roles in a $1.6 million Medicare fraud scheme, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan, Special Agent in Charge Paul M. Abbate of the FBI’s Detroit Field Office and Special Agent in Charge Lamont Pugh III of the Department of Health and Human Services Office of Inspector General (HHS-OIG) Chicago Regional Office.
Reginald Smith, 54, of Flint, Michigan, a patient recruiter, was found guilty of one count of conspiracy to commit health care fraud and one count of conspiracy to solicit and receive health care kickbacks. Rajan Patel, 30, of Clinton Township, Michigan, a physical therapist, was found guilty of one count of conspiracy to commit health care fraud, three counts of health care fraud, and three counts of making false statements relating to health care matters. Sentencing hearings are scheduled for April 16, 2015, and April 15, 2015, respectively, before U.S. District Judge Arthur J. Tarnow of the Eastern District of Michigan.
According to evidence presented at trial, Smith worked as a patient recruiter for Angle’s Touch Home Health Care LLC (Angle’s Touch) in 2011 and 2012. In that role, he solicited patients for foot care services at adult foster care homes. Smith then referred the patients to Angle’s Touch for medically unnecessary home health care services in exchange for kickbacks. The kickbacks were disguised as payments to Smith’s nonprofit Medicare provider, People Helping People of Detroit.
Patel worked as a physical therapist at Angle’s Touch. According to the evidence presented at trial, Patel and others recruited patients from an adult daycare center in Flint, Michigan. Patel then fabricated patient medical records to make it appear that the recruited patients qualified for and received the home health care services, when they did not.
Evidence presented at trial showed that Medicare paid Angle’s Touch over $1.6 million in the course of the conspiracy.
Four other individuals charged in this case pleaded guilty to conspiracy to commit health care fraud in connection with their roles in the fraud scheme.
The investigation was led by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and U.S. Attorney’s Office for the Eastern District of Michigan. This case was prosecuted by Trial Attorneys Niall M. O’Donnell, Aisling O’Shea and Allan Medina of the Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,100 defendants who have collectively billed the Medicare program for more than $6.5 billion. In addition, HHS’s Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Day Trader Pleads Guilty to Investment Fraud SchemeRead the Press Release
POCATELLO - Michael Justin Hoopes, 41, of Rexburg, Idaho, pleaded guilty yesterday to wire fraud and engaging in monetary transactions in property derived from specified unlawful activity, U.S. Attorney Wendy J. Olson announced. Hoopes pleaded guilty pre-indictment to a criminal information filed by the U.S. Attorney.
According to the plea agreement, Hoopes admitted that from 2007 through February of 2011, he engaged in a scheme to defraud investors in various investment opportunities he offered. Specifically, Hoopes solicited investors to provide him with capital he represented he would use in his commodities futures day trading activities and to invest in Connected Lyfe, a publicly traded company.
Hoopes misrepresented to investors that he earned returns day trading in excess of 20 to 25 percent, that he would invest all of the capital they provided in day trading and pay them from the profits generated by their investments, and he would receive personal compensation only from profits he made above the 20 to 25 percent return. Hoopes provided false monthly account statements to investors documenting the purported positive returns. Further, regarding Connected Lyfe, Hoopes misrepresented that an investor would double their investment within one year and would bear little risk of loss.
In reality, Hoopes did not invest all of the capital he received, used much of it for personal expenses, including to pay credit card bills, and paid “positive” returns to existing investors primarily from the capital raised from new investors. Between 2007 and February of 2011, Hoopes received in excess of $9 million from investors. Of this amount, the defendant did not invest and misappropriated approximately $620,000 for his own personal use. Contrary to monthly account statements showing positive returns, he lost most of the remainder day trading and in other failed investments.
The charge of wire fraud is punishable by up to 20 years in prison, a maximum fine of $250,000, and up to three years of supervised release. The charge of engaging in monetary transactions in property derived from specified unlawful activity is punishable by up to 10 years in prison, a maximum fine of $250,000, and up to three years of supervised release.
Sentencing is set for May 12, 2015, before U.S. District Judge Edward J. Lodge at the federal courthouse in Pocatello.
The case was investigated by the Internal Revenue Service, Criminal Investigation Division, and the Federal Bureau of Investigation, with the assistance of the Commodities Futures Trading Commission.
Today's announcement is part of efforts underway by President Obama's Financial Fraud Enforcement Task Force (FFETF), which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants.
Corona Woman Who Ran High-End Denim Jean Company Pleads Guilty in $15 Million Scheme That Defrauded Union BankRead the Press Release
LOS ANGELES – A Corona woman who was the chief executive officer of a high-end jean company that outfitted Hollywood celebrities pleaded guilty today in federal court to bank fraud and bankruptcy fraud offenses.
Carolyn Marie Jones, 51, pleaded guilty in federal court to one count of bank fraud and one count of concealing assets in a bankruptcy proceeding.
Jones pleaded guilty before United States District Judge Michael W. Fitzgerald, who is scheduled to sentence the defendant on May 11. At sentencing, Jones will face a statutory maximum sentence of 35 years in federal prison and a fine of $1.25 million.
According to a plea agreement filed late yesterday, Jones defrauded Union Bank of California in a scheme related to her company, DDI (sometimes known as Diamond Decisions, Inc.), which sold jeans under the labels Privacywear and PRVCY Premium. Union Bank issued an $8.5 million line of credit – which was later increased to $15 million – to Jones in late 2008, but Jones had filed a fraudulent loan application that used another person’s social security number, bogus tax returns that had never been filed with the Internal Revenue Service and false financial statements for DDI that grossly overstated the company’s profits.
Jones also admitted in the plea agreement that the accounting firm she claimed had audited her financial statements was a sham company. Jones also admitted she lied to Union Bank employees, including the loan officer. In court today, she apologized to the identity theft victim whose information was used on the fraudulent loan documents.
Jones soon defaulted on the $15 million loan, and Union Bank filed a civil lawsuit against DDI in state court. When the court issued an order authorizing Union Bank to seize the company’s assets, Jones filed a Chapter 11 bankruptcy petition in February 2010 that listed the bank as the sole creditor. In the following months, Jones concealed DDI assets, specifically about $120,000 that she had received from DDI customers.
As part of the plea, Jones agreed to pay $15 million in restitution to Union Bank and $124,000 in restitution to victims who invested in another scheme.
Jones pleaded guilty in relation to two cases that were the result of an investigation conducted by the United States Secret Service and IRS - Criminal Investigation. The United States Trustee’s Office provided valuable assistance during the investigation.
Release No. 15-020
Cleveland Woman Charged with making Straw Purchase of a FirearmRead the Press Release
A federal grand jury returned a one-count indictment charging Felicia D. Russell, 30, of Cleveland, with purchasing a firearm for a convicted felon, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment alleges that Russell acted as a straw purchaser of a firearm from Atlantic Gun & Tackle in Bedford Heights, Ohio. Russell accomplished her scheme by lying on the Bureau of Alcohol, Tobacco, Firearms, and Explosives Form, stating that she was the actual buyer and recipient of the firearm.
Assistant United States Attorney Matthew J. Cronin is prosecuting the case following an investigation by ATF.
If convicted, the Court will determine the defendant’s sentence after a review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum. In most cases, it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
Cleveland Man Convicted of Rape Found with 18 FirearmsRead the Press Release
A Cleveland man previously convicted of rape and unlawful sexual conduct with a minor was indicted in federal court for possessing 18 firearms and ammunition, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Charles Imbrugia, age 45, possessed the ammunition and firearms on Dec. 22, 2015. The firearms included a River Arms 7.62-caliber rifle, a Molot Oruzhie 7.62-caliber rifle, a Norinco 7.62-caliber rifle, multiple 12-gauge shotguns, a Remington .22-caliber rifle, an Israel Weapon Industries .50-caliber pistol and several other firearms, according to the indictment.
"This defendant had an arsenal," Dettelbach said. "Our office places a high priority on keeping firearms out of the hands of those who are forbidden by law from obtaining them."
Imbrugia was previously convicted in Cuyahoga County Common Pleas Court of three counts of rape and two counts of unlawful sexual conduct with a minor. As a convicted felon, he is forbidden by law from possessing firearms or ammunition.
If convicted, a defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal records, 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 investigation preceding the indictment was conducted by the Ohio Adult Parole Authority. The case is being prosecuted by Assistant United States Attorney Kelly Galvin.
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.
Clearfield Woman Charged with Mail, Wire Fraud and Identity Theft in Embezzlement Schemes Involving Two EmployersRead the Press Release
Indictment Alleges She Embezzled About $885,657.56SALT LAKE CITY - A federal grand jury returned a 10-count indictment late Wednesday afternoon charging Teri Ann Jarvis, aka Teri James, aka Teri Jaris, age 41, of Clearfield with mail and wire fraud in connection with embezzlement schemes involving two employers. She also faces one count of aggravated identify theft.
The indictment alleges Jarvis embezzled approximately $885,657.56 from at least two employers and diverted the money for her own use.
According to the indictment, Jarvis was an employee of Positive Power, LLC, from about October 2006 until around September 2013. Positive Power is based in Ogden and provides electrical contracting services. Jarvis’ duties at the company included assisting with the management of company bank accounts, credit cards, collectables, payables and other financial records. She was not authorized to sign checks or credit cards.
Jarvis was an employee of Bronco Fence Company in Kaysville from about March 2014 through about October 2014. The company specializes in fence, deck, and railing construction. Jarvis’ responsibilities at Bronco Fence included assisting with the management of the office, coordinating with a merchant services company for payment processing, and making accounting entries.
The indictment alleges that beginning around 2008 and continuing to September 2014, Jarvis devised a scheme to obtain money from her employers using a variety of means. The indictment alleges she forged Positive Power company checks made payable to herself, her mortgage company, to pay for a car loan, and to her personal credit card. According to the indictment, Jarvis attributed fictitious expenses to closed or terminated work orders to conceal her embezzlement from the company and to avoid detection.
The indictment alleges that Jarvis used the alias Teri James in her employment application with Bronco fence to conceal her identity and avoid detection of her previous embezzlement from Positive Power.
According to the indictment, Jarvis provided false refund information to the merchant services company used by Bronco Fence so that the merchant servicer processed the false refunds and transferred money to Jarvis’ personal bank account. The indictment alleges Jarvis offset the money she embezzled from Bronco Fence as “material expenses” in the company records.
Jarvis altered company financial accounts to conceal her embezzlement of company funds from both of her employers.
The indictment charges four counts of mail fraud, five counts of wire fraud, and one count of aggravated identity theft. The potential maximum penalty for each count of wire and mail fraud is 20 years in federal prison and a fine of $250,000. The aggravated identity theft count carries a mandatory minimum two-year sentence.
A summons will be issued to Jarvis to appear in federal court in Salt Lake City on the charges in the indictment. An indictment is not a finding of guilt. Individuals charged in an indictment are presumed innocent unless or until convicted of the charges in court.
The case is being investigated by IRS Criminal Investigation special agents, the Weber County Sheriff’s Office, and the Kaysville Police Department and prosecuted by Assistant U.S. Attorneys in the U.S. Attorney’s Office in Salt Lake City.
Brooklyn Man Sentenced to 35 Months for Conspiracy to Distribute Cocaine Base in VermontRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Von Simmonds, 32, of Brooklyn, New York was sentenced today to 35 months for his participation in a conspiracy to distribute cocaine base in Vermont during the winter of 2012-2013. Chief Judge Christina Reiss also ordered that Simmonds serve a three-year period of supervised release after his incarceration.
Simmonds was convicted of this offense after a jury trial in Rutland in June 2014. According to the evidence presented at trial, law enforcement officers, acting on a tip, encountered Simmonds in a Rutland apartment on March 7, 2013. Officers located Simmonds in a bedroom of the apartment. Also found in the bedroom was a pillow case containing $4,503 in cash and a rock of cocaine base. Simmonds acknowledged making several trips from Brooklyn to Vermont with crack cocaine. Simmonds was arrested that night and charged with conspiracy to distribute cocaine base. He has remained in custody since his arrest.
This matter was investigated by the Federal Bureau of Investigation and the Rutland Police Department with the assistance of the Vermont Department of Corrections. The government was represented by Assistant U.S. Attorneys Kevin Doyle and Craig Nolan. Simmonds was represented by Steven L. Barth, Esq. of the Federal Public Defender’s Office.
Blackrock, N.M., Man Pleads Guilty to Federal Child Sexual Abuse ChargeRead the Press Release
ALBUQUERQUE – Vernon Niiha, 51, a member of Zuni Pueblo who resides in Blackrock, N.M., pleaded guilty this morning to an abusive sexual contact charge. Under the terms of his plea agreement, Niiha will be sentenced to prison term within the range of 36 to 48 months followed by a term of supervised release to be determined by the court. Niiha will be required to register as a sex offender.
Niiha was arrested in Aug. 2013, on an indictment alleging that he sexually abused a child under the age of 12 years from Mar. 2002 through Mar. 2003, in Indian country in McKinley County, N.M.
During today’s hearing, Niiha entered a guilty plea to a felony information charging him with abusive sexual contact, and admitted sexually abusing the victim by touching the victim’s genitalia. Niiha has been in the custody of the U.S. Marshals Service since his arrest and will remain detained pending his sentencing hearing, which has yet to be scheduled.
This case was investigated by the Albuquerque office of the FBI and Zuni Pueblo Tribal Police Department. The case is being prosecuted by Assistant U.S. Attorney Kyle T. Nayback as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Belleville Resident Pleads Guilty to Participating in Fraudulent Tax Refund SchemeRead the Press Release
Alicia Jackson, 40, from Belleville, pled guilty to conspiracy to defraud the United States by making false claims for tax refunds to the Internal Revenue Service by submitting false federal income tax returns, and also pled guilty to two additional counts for making false claims for federal tax refund, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Alicia Jackson faces a prison sentence of up to 20 years, a fine of up to $250,000, up to 3 years’ supervised release after serving her sentence, and mandatory restitution. Her sentencing has been scheduled for June 12, 2015.
The prosecution is the result of an investigation conducted by the Internal Revenue Service/Criminal Investigations. The case is being prosecuted by Assistant United States Attorney Norman R. Smith.
Beckley man sentenced on federal drug chargeRead the Press Release
BECKLEY, W.Va. – United States Attorney Booth Goodwin announced today that Demetrice Johnson, 42, of Beckley, was sentenced to 27 months in federal prison, followed by five years of supervised release.
In November 2014, Johnson pleaded guilty to distributing heroin to a confidential informant. The drug deal took place on Robert C. Byrd Drive in Beckley.
United States District Judge Irene C. Berger imposed the sentence.
The case was investigated by the Beckley Raleigh County Drug and Violent Crime Task Force, and was prosecuted under the Beckley Pill Initiative.
The case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and opiates. The U.S. Attorney’s Office, joined by federal, state and local law enforcement, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Beckley man pleads guilty to using phone to commit felonyRead the Press Release
BECKLEY, W.Va. – United States Attorney Booth Goodwin announced today that Richard Pfost, 32, of Beckley, pleaded guilty to using a telephone to commit a felony.
Pfost admitted that on Aug. 12, 2014, he used a telephone in the Beckley area to arrange a sale of oxycodone to a confidential informant.
Pfost faces up to four years in federal prison and a $250,000 fine. He is scheduled to be sentenced on June 24, 2015.
United States District Judge Irene C. Berger presided over the plea hearing.
The Beckley/Raleigh County Drug and Violent Crime Unit is conducting the investigation.
The case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and opiates. The U.S. Attorney’s Office, joined by federal, state and local law enforcement, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Beckley area woman pleads guilty to heroin distributionRead the Press Release
BECKLEY, W.Va. – United States Attorney Booth Goodwin announced today that Andrea Austin, 42, of Sophia, West Virginia, pleaded guilty to distributing heroin.
Austin admitted that on Aug. 11, 2014, she sold heroin to a confidential informant on East Camellia Street in Sophia.
Austin faces up to 20 years in federal prison and a $1 million fine. She is scheduled to be sentenced on June 17, 2015.
United States District Judge Irene C. Berger presided over the plea hearing.
The Beckley/Raleigh County Drug and Violent Crime Unit is conducting the investigation.
The case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and opiates. The U.S. Attorney’s Office, joined by federal, state and local law enforcement, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Beaver Falls Teen Sentenced to 3 Years in Prison for Burglarizing New Brighton Gun StoreRead the Press Release
PITTSBURGH - A Beaver County resident has been sentenced in federal court to 37 months imprisonment, to be followed by three years of supervised release, on his conviction of stealing firearms from the inventory of a federally licensed firearms dealer, United States Attorney David J. Hickton announced today.
United States District Judge Arthur J. Schwab imposed the sentence on Jaemere Scott, 19.
According to information presented to the court, on Feb. 7, 2014, Scott and Kyle Jones burglarized Shooters Place, a Federally Licensed Firearms Dealer, located at 416-F Constitution Boulevard in New Brighton, Pa., and stole fourteen handguns.
Assistant United States Attorney Brendan T. Conway prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Patterson Township Police Department, the Beaver County Sheriff’s Office, the Beaver County Detective Bureau, the Pennsylvania State Police, the Beaver Falls Police Department, and the New Brighton Police Department for the investigation leading to the successful prosecution of Scott.
Baltimore Man Admits to Armed Robbery of Prescription Drug VanRead the Press Release
Baltimore, Maryland – Stanley Duryea Johnson, age 60, of Baltimore, pleaded guilty today to robbery and using a gun during the robbery.
The plea agreement was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Chief James W. Johnson of the Baltimore County Police Department; Anne Arundel County Police Chief Tim Altomare; and Baltimore County State’s Attorney Scott Shellenberger.
According to his plea agreement, on June 18, 2013, a driver of a prescription drug van was waiting for a pharmacy to open at a parking lot on Reisterstown Road in Baltimore. The van contained $93,000 worth of pharmaceutical drugs, which the driver planned to deliver at a number of locations that day. Johnson approached the van, ordered the driver to move to the passenger seat, and began driving the van. Johnson eventually left the driver on the side of the road and drove off in the van.
Johnson and the government have agreed that Johnson is a career offender, and that if the Court accepts the plea agreement, Johnson will be sentenced to 20 years in prison. U.S. District Judge Marvin J. Garbis scheduled sentencing for June 3, 2015 at 9:30 a.m.
United States Attorney Rod J. Rosenstein commended the FBI, Baltimore County and Anne Arundel County Police Departments and Baltimore County State’s Attorney's Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Bonnie S. Greenberg, who is prosecuting the case.
Ashland Man Indicted for Robbing North Olmsted BankRead the Press Release
A grand jury returned a two-count indictment charging Jordon Louis Dongarra, 33, of Ashland, with one count of bank robbery and one count of brandishing a firearm during and in relation to a crime of violence, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment alleges that Dongarra robbed the Ohio Savings Bank, 28880 Lorain Road, in North Olmsted, Ohio, a federally insured financial institution, on December 30, 2014.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to his case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The case is being prosecuted by Assistant U.S. Attorney Justin Seabury Gould, and was investigated by the Federal Bureau of Investigation and North Olmsted Police Department.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Area Woman Sentenced for Crack Cocaine ConspiracyRead the Press Release
GREENEVILLE, Tenn. – Michelle Nicole Lane, 33, of Blountville, Tenn., was sentenced on Feb. 23, 2015, by the Honorable J. Ronnie Greer, U.S. District Court Judge, to serve 132 months in federal prison. Lane pleaded guilty in October 2014 to conspiracy to distribute, and to possess with the intent to distribute, 280 grams or more of a mixture and substance containing a detectable amount of cocaine base (“crack”). There is no parole in the federal system.
Over the course of roughly three years, Lane managed a large-scale crack cocaine conspiracy. In so doing, she was responsible for distributing multi-kilogram quantities of crack cocaine in the Tri-Cities area. As part of her part of her guilty plea, Lane admitted to being personally responsible for at least 840 grams, but less than 2,800 grams, of crack cocaine.
Lane managed a network of coconspirators who assisted in distributing her crack cocaine. These individuals included couriers, runners, and street-level dealers. Lane directed the actions of such individuals while she received the majority of the reward. As part of her conduct, Lane actively took steps to thwart law enforcement and skirt federal laws. These efforts failed and caused her to receive mandatory minimum sentences in federal prison.
As part of the investigation, law enforcement conducted seven different controlled drug transactions with members of Lane’s conspiracy. On one of those occasions, Lane and a codefendant sold crack cocaine to confidential informants acting under the supervision of agents and officers.
This case was the product of cooperation between the Johnson City Police Department and Federal Bureau of Investigation. Assistant U.S. Attorney Nick Regalia represented the United States.
Appalachian Labs employee sentenced in water quality schemeRead the Press Release
BECKLEY, W.Va. – United States Attorney Booth Goodwin announced today that John W. Shelton, 47, of Daniels, West Virginia, was sentenced to 21 months in federal prison.
In October 2014, Shelton pleaded guilty to conspiring to violate the Clean Water Act. He admitted that he, and other employees, tampered with water samples to make them appear within permissible levels. He stated he diluted samples by adding distilled water, and substituted water samples from the “honeyhole,” named such because samples taken from that spot were always within permissible limits. Each time samples were diluted or water was substituted, Shelton allowed excessive pollutants to be discharged from mining operations into adjacent creeks and rivers.
Shelton also admitted that from 2008-2013, he and other Appalachian Laboratory employees failed to place samples on ice as required by law, and instead kept them in their trucks all day, compromising the integrity of the samples. They would place samples on ice inside coolers on known inspection days to give the appearance it was the regular practice.
United States District Judge Irene C. Berger imposed the sentence.
The case was investigated by the Federal Bureau of Investigation and Environmental Protection Agency’s Criminal Investigation Division. Assistant United States Attorney Blair L. Malkin and Larry R. Ellis handled the prosecution.
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Aliquippa Man Charged with Producing and Possessing Child PornographyRead the Press Release
PITTSBURGH - A Beaver County resident has been indicted by a federal grand jury in Pittsburgh on two charges of production of material depicting the sexual exploitation of a minor, and two charges of possession of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.
The four-count indictment, returned on Feb. 24, named Tyler Seevers, 24, as the sole defendant.
According to the indictment, on or about May 14-15, 2014, and on or about July 20-21, 2014, Seevers employed, used, persuaded, induced, enticed, and coerced one of two child victims to engage in sexually explicit conduct for the purpose of producing visual depictions, namely photographs, of such conduct. The indictment further charges that Seevers, on July 27, 2014, and on Aug. 2, 2014, unlawfully possessed, in computer graphics files, photographs depicting minors engaged in sexually explicit conduct.
The law provides for a maximum total sentence of 30 years in prison, a fine of $1,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Carolyn J. Bloch is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Pennsylvania State Police, and the Hopewell Township Police Department conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Albuquerque Man Sentenced to Five Years for Methamphetamine Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Jose Israel Villaba, 30, of Albuquerque, N.M., was sentenced this morning in federal court to 60 months in prison followed by four years of supervised release for his methamphetamine trafficking conviction.
Villaba was arrested on Feb. 21, 2013, at the Amtrak train station in Albuquerque after a search by DEA agents revealed that Villaba had concealed bundles containing methamphetamine inside a toy that was in his suitcase. Villaba subsequently was indicted on March 5, 2013, and charged with possession of methamphetamine with intent to distribute.
Villaba entered a guilty plea to the indictment on Oct. 3, 2013. According to court filings, the toy in Villaba’s possession contained more than 470 gross grams of methamphetamine.
This case was investigated by the Interdiction Unit of the DEA’s Albuquerque office, which focuses on disrupting the flow of narcotics, weapons, and the proceeds of illegal activities as they are smuggled into or through New Mexico in passenger buses, passenger trains, commercial vehicles and automobiles. Assistant U.S. Attorney Paul Mysliwiec prosecuted the case.
35 Defendants Charged with Drug Trafficking and Money Laundering Offenses Following Undercover InvestigationRead the Press Release
United States Attorney for the Middle District of Georgia, Michael J. Moore, announced today that an indictment was returned by a grand jury sitting in the United States District Court in Macon, Georgia on February 11, 2015, which charged 35 defendants with drug trafficking and money laundering offenses. During “Operation Southern Postal Powder”, Federal agents, assisted by state and local law enforcement officers, investigated a large scale drug organization based in Macon, Georgia. Over the course of the investigation, federal agents seized large amounts of cocaine and marijuana.
Penalties for the charges range from ten years up to life in prison without parole. Fines range from $500,000 to 10 million dollars.
United States Attorney Michael Moore stated: “This operation is the essence of law enforcement collaboration and teamwork to remove illegal drugs and to punish those who violate Federal narcotics laws.”
“The Postal Inspection Service is committed to preventing the US Mail from being used as a conduit for narcotic trafficking. We could not be successful without the collaborative efforts of our local, State, and Federal partners,” stated Assistant Inspector in Charge Barney D. Morris.
Daniel R. Salter, Special Agent in Charge of the DEA Atlanta Field Division remarked that the indictment, “is a victory, not only for the multitude of law enforcement agencies who dismantled this organization, but for the citizens of Macon, Griffin and Atlanta, Georgia.” He further stated that “this effort would not have been successful without the mission-oriented cooperation between our federal, state and local law enforcement counterparts.”
“We would like this operation to serve as a strong message to individuals throughout the region that we will not stand for the destruction that drugs and related criminal activity bring to our communities, stated Veronica F. Hyman-Pillot, Special Agent in Charge, IRS Criminal Investigation. “We will do everything within our power to assist our law enforcement partners with financially disrupting and dismantling drug trafficking organizations and stopping the violence and corruption they inflict upon society."
A copy of the indictment is attached. The indictment is only an allegation of criminal conduct. Each person is presumed innocent until and unless proven guilty in a court of law.
The case was investigated by the US Postal Inspection Service (USPIS), the Drug Enforcement Administration (DEA), the Internal Revenue Service (IRS), the Bibb County Sheriff’s Office, and the Peach County Sheriff’s Office. Assistant U.S. Attorneys Charles Calhoun and Sonja Profit are prosecuting the case for the Government.
For additional information, please contact Pamela Lightsey at (478) 621-2603.
DEFENDANTS
AGE
HOMETOWN
1) THADDEUS LAVETTE BONDS aka “STUPID,”
33
Macon, GA
2) DAVID RAY FELLS,
33
Eureka, CA
3) TIMMIE ANDERSON,
37
Oklahoma City, OK
4) TIFFANY McGRUDER,
32
Phoenix, AZ
5) MICHAEL THOMAS aka “POP,”
59
Conyers, GA
6) TAMIKA ANDERSON,
34
Phoenix, AZ
7) SHANNON MILLER,
23
Eureka, CA
8) BRANDON VITALE,
24
Fields Landing, CA
9) MICHELLE RAINEY (THOMAS),
48
Conyers, GA
10) KARL ANTHONY BOWEN,
68
Phoenix, AZ
11) ONTARIAN GREEN aka “SHENARD,”
45
Macon, GA
12) WILLIE EDWARD OWENS, JR. aka “TINK,”
43
Macon, GA
13) KEVIN LORENZ TAYLOR aka “K.T.,”
41
Macon, GA
14) GILBERT BALKCOM, JR. aka “SI MAN,”
36
Macon, GA
15) ARTEIUS CHUNTERA COTTON aka “TARA,”
30
Macon, GA
16) TRAKNOVOISE SIMMONS aka “ROD,”
37
Macon, GA
17) AUDREA LAMONT LAWRENCE aka “DRE,”
39
Macon, GA
18) ERIC KEITH BROWN aka “FIRE,”
44
Macon, GA
19) DONNIE WILLIAM BROWN aka “BIG DONNIE,”
35
Macon, GA
20) HAROLD HOLLAND,
58
Atlanta, GA
21) JEREMEY BARKLEY aka “BLOCKO,”
33
22) ANTONIO BERNARD RILEY aka “SLICK,”
39
Macon, GA
23) ANTWON ABRAMS,
29
Macon, GA
24) COREY BARKLEY,
32
Griffin, GA
25) QUATERRIO BARKLEY,
34
Griffin, GA
26) ANTWOIN BELL,
29
Macon, GA
27) NAKIA FEAZELL,
35
28) TAMEKA GRIFFIN,
34
Macon, GA
29) ANGEL CROSBY
37
Macon, GA
30) KIMBERLY JUHAN,
30
Macon, GA
31) JEREMY THOMAS,
41
Macon, GA
32) MARCUS RANDALL,
36
Covington, GA
33) AWRIS SMITH,
35
34) JIMMY WALKER,
36
Macon, GA
35) MARIA WHITE,
41
Phoenix, AZ
15 Suspects Indicted in West Tennessee on Federal Distribution of Illegal Prescription Drug ViolationsRead the Press Release
Jackson, Tenn. –Edward L. Stanton III, United States Attorney for the Western District of Tennessee announced today the unsealing of an indictment charging 15 suspects with federal drug trafficking violations. The suspects were arrested early today during a round-up conducted by federal (the DEA and U.S. Marshals Service), state (Tennessee Bureau of Investigation, 25th Judicial District Drug Task Force, and Tennessee Highway Patrol), and local law enforcement agencies (Tipton County Sheriff’s Department, Madison County Sheriff’s Department, Jackson Madison County Metro Narcotics, Jackson Police Department, and Jackson Police Department Gang Unit).
The indictments were returned by a federal grand jury in Jackson February 24, 2015, but remained under seal until today’s arrests. Each indictment contained counts alleging violations of the Controlled Substances Act.
The suspects arrested during the operation were:
• Bryon Stevens, age 39, (already in state custody) • Anita Stevens, age 60, of Haywood County • Sandy Stevens, age 37, (already in state custody) • Helen Jackson, age 48, of Haywood County • Debra Harris, age 49, of Haywood County • Martha Taylor, age 53, of Haywood County • Edward Lynn Martin, age 47, of Haywood County • Helen Cole, age 67, of Haywood County • Bobby Joe Tyus, age 60, of Haywood County • Alice Marie Martin, age 45, of Haywood County • Cheryl Austin, age 56, (already in state custody) • Bobby Joe Perry, age 51, of Haywood County • Grant Hendrix, age 28, of Haywood County • Lauren Turner, age 34, of Haywood County • William “Baldy” Taylor, age 59, of Lauderdale County
The charges in the indictments stem from an illegal conspiracy to sell and distribute oxycodone, hydrocodone, Xanax and buprenorphine. Several of the defendants were also charged with intentionally acquiring or obtaining possession of the same controlled substances by misrepresentation, fraud, forgery, deception or subterfuge.
The case was investigated by members of the DEA, Nashville District Office, Tactical Diversion Squad; Tipton County Sheriff’s Department; 25th Judicial District Drug Task Force; Jackson Madison County Narcotics Task Force; Lauderdale County, Tennessee Sheriff’s Department; Lauderdale County, Alabama Drug Task Force. This case is being prosecuted by Assistant United States Attorney Beth Boswell on behalf of the government.
The charges and allegations contained in the indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Spanish Version
15 Sospechosos Acusados En El Oeste De Tennessee En Violaciones Federales Por Distribucion Ilegal De Medicamentos RecetadosRead the Press Release
Jackson, Tennessee. - Edward L. Stanton III, Fiscal Federal para el Distrito Oeste de Tennessee anunció hoy la revelación de una acusación formal contra 15 sospechosos en violaciones federales por narcotràfico. Los sospechosos fueron detenidos la madrugada de hoy durante una redada llevada a cabo por el gobierno federal (el Servicio de Alguaciles de Estados Unidos y la DEA), estatal (Oficina de Investigaciones de Tennessee, el Grupo Especializado Antidroga del 25to Distrito Judicial y la Patrulla de Caminos de Tennessee) y las agencias policiales locales (Departamento del Sheriff del Condado de Tipton, Departamento del Sheriff del Condado de Madison, Metro Narcóticos del Condado de Madison, Departamento de la Policía de Jackson y la Unidad de Pandillas del Departamento de la Policía de Jackson).Las acusaciones fueron devueltas por un gran jurado federal en Jackson el 24 de febrero 2015, pero se mantuvo en secreto hasta los arrestos de hoy. Cada acusación contenía recuentos alegando violaciones de las Ley de Sustancias Controladas.
Los sospechosos arrestados durante la operación fueron:
• Bryon Stevens, de 39 años de edad, (ya en custodia del Estado)
• Anita Stevens, de 60 años, del Condado de Haywood
• Sandy Stevens, de 37 años de edad, (ya en custodia del Estado)
• Helen Jackson, de 48 años, del Condado de Haywood
• Debra Harris, de 49 años, del Condado de Haywood
• Martha Taylor, de 53 años, del Condado de Haywood
• Edward Lynn Martin, de 47 años, del Condado de Haywood
• Helen Cole, de 67 años, del Condado de Haywood
• Bobby Joe Tyus, de 60 años, del Condado de Haywood
• Alice Marie Martin, de 45 años, del Condado de Haywood
• Cheryl Austin, de 56 años de edad, (ya en custodia del Estado)
• Bobby Joe Perry, de 51 años, del Condado de Haywood
• Grant Hendrix, de 28 años, del Condado de Haywood
• Lauren Turner, de 34 años, del Condado de Haywood
• William "Baldy" Taylor, de 59 años de edad, del Condado de LauderdaleLos cargos en las acusaciones se derivan de una conspiración ilegal para vender y distribuir oxicodona, hidrocodona, Xanax y la buprenorfina. Varios de los acusados también fueron acusados de intencionalmente adquirir u obtentar las mismas sustancias controladas por falsa, fraudulenta, falsificada, engañosa o subterfugio.
El caso fue investigado por los miembros de la DEA, la Oficina del Distrito de Nashville, el Escuadrón de Desviación Tàctica; Departamento del Sheriff del Condado de Tipton; el Grupo Especializado Antidroga del 25to Distrito Judicial; Grupo Especializado de Estupefacientes del Condado de Madison; el Departamento del Sheriff de Tennessee del Condado de Lauderdale; el Grupo Especializado Antidroga de Alabama del Condado de Lauderdale. Este caso està siendo procesado por el Fiscal Federal adjunto Beth Boswell en nombre del gobierno.
Los cargos y alegaciones contenidos en la acusación son meras acusaciones y los acusados son considerados inocentes hasta que se demuestre su culpabilidad.
Version en Inglés
24 February 2015
Week in Review –hammondRead the Press Release
Hammond, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
DISPOSITIONS
- Kevin J. Babich, 38, of Valparaiso, Indiana was sentenced to 18 months’ probation, with 8 months of periodic imprisonment after pleading guilty to wire and mail fraud. This case was the result of an investigation by the Federal Bureau of Investigation and the Internal Revenue Service Criminal Investigation Division. This case was prosecuted by Assistant United States Attorney Randall Stewart.
- Dameyon Bean, 37, of Speedway, Indiana was sentenced to 10 months imprisonment in the BOP after pleading guilty to theft of government funds (he obtained fraudulent unemployment funds). He was ordered to pay $53,000 in restitution. This case was the result of an investigation by the United States Department of Labor and United States Postal Inspection Service. This case was prosecuted by Assistant United States Attorney Randall Stewart.
- Jeremy L. Culver, 37, of Lafayette, Indiana was sentenced to 360 months imprisonment followed by 20 years of supervised release after pleading guilty to the felony offenses of production and distribution of child pornography. According to documents filed in this case, on or about November 8, 2011, Jeremy Culver caused an 11 year-old boy, referred to throughout the proceedings as John Doe, to engage in sexually explicit conduct for the purpose of producing a visual depiction of such conduct. Culver was also convicted of distributing child pornography in interstate commerce on or about March 18, 2010. This case was the result of an investigation by the Federal Bureau of Investigation. This case was prosecuted by Assistant United States Attorney Jill R. Koster.
- Michael L. Schnelle, 27, of Lafayette, Indiana was sentenced to 24 months home detention after pleading guilty to the felony offense of knowingly selling firearms to a person who was under felony indictment. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives. This case was prosecuted by Assistant United States Attorney Jacqueline Jacobs.
- Gopal Shah, 64, of Orland Hills, Illinois was sentenced to 10 months incarceration and 1 year of supervision after pleading guilty to conspiracy to defraud the Medicare and Medicaid programs through the solicitation of physicians to send their Medicare and Medicaid patients to his business in exchange for the payment of kickbacks. This case was the result of an investigation by the Federal Bureau of Investigation. This case was prosecuted by Assistant United States Attorney Diane Berkowitz.
Virginia man gets nearly six years for robbing drug dealersRead the Press Release
CHARLESTON, W.Va. – United States Attorney Booth Goodwin announced today that Brandon Davis, 24, from Wytheville, Virginia, was sentenced to 70 months in federal prison.
In October 2012, Davis pleaded guilty to his role in robbing Charleston drug dealer Cabell Franklin. He admitted that on Jan. 18, 2012, he and Robert Barcliff committed the robbery, during which Franklin was shot in the leg and stabbed.
This robbery was part of a larger conspiracy among Barcliff and his associates. Beginning in the fall of 2011, Barcliff, Davis, Keith Glenn, Darrell Gillespie, Jamaa Johnson and others conspired and agreed to commit armed home-invasion robberies of drug dealers in West Virginia, Virginia, Pennsylvania and Tennessee. The objective of the conspiracy and robberies was to steal drugs, drug proceeds and firearms. The group targeted drug dealers because they believed it unlikely they would call the police.
Barcliff was recently sentenced to 16 years in federal prison. Johnson and Gillespie are scheduled to be sentenced in May 2015
United States District Judge Thomas E. Johnson imposed the sentence.
The case was investigated by the Federal Bureau of Investigation, South Charleston Police Department and Charleston Police Department. Assistant United States Attorney Monica D. Coleman handled the prosecution.
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United States Attorney Announces $650,000 Settlement with Acadiana Cardiology, Acadiana Cardiovascular Center, and Convicted Doctor, Mehmood Patel, for False Claims AllegationsRead the Press Release
LAFAYETTE, La. – United States Attorney Stephanie A. Finley announced a $650,000 settlement was reached with Acadiana Cardiology LLC, Acadiana Cardiovascular Center and convicted doctor, Mehmood Patel, M.D., concerning allegations that Patel performed unnecessary medical procedures and billed Medicare.
In the criminal proceedings, Patel was indicted on 94 counts of health care fraud on February 16, 2006, and a jury found him guilty on December 30, 2008 after a two-month trial of 51 counts of health care fraud. He was sentenced on June 4, 2009, to serve 120 months in prison and five years of supervised release. He was also ordered to pay $387,511 in restitution and a $175,000 fine. In August of 2006, Our Lady of Lourdes agreed to pay a $3.8 million settlement, and in January of 2008, Lafayette General Medical Center agreed to pay a $1.9 million settlement to settle claims.
The United States intervened in the lawsuit Dr. Christopher Mallavarapu, a cardiologist who formerly practiced with Patel in Lafayette, brought against Acadiana Cardiology LLC, Acadiana Cardiovascular Center LLC, Mehmood Patel, a Professional Medical Corp., and Mehmood Patel, M.D., to recover damages under the False Claims Act. The False Claims Act, a federal civil fraud statute, allows individuals who have witnessed fraud to file suit on behalf of the United States under the statute’s qui tam provisions and, under appropriate circumstances, they are allowed to share in a portion of any monetary recovery that is made. The statute allows the government to recoup dollars obtained through fraud and misrepresentation.
From 2000 to 2003, the United States alleged that the defendants submitted 207 false claims for unnecessary cardiovascular, endovascular and related procedures that Patel performed at Our Lady of Lourdes Hospital, Lafayette General Medical Center, Acadiana Cardiology and Acadiana Cardiovascular Center. Federal law allows coverage and payment for only those services that are considered to be medically reasonable and necessary.
“This is a significant recovery,” Finley said. “Health care providers should know they will be held accountable for the care that they provide and the claims they submit for care. We hope this settlement sends a message that those in the health care industry who overcharge federal programs and perform medically unnecessary treatments will be held accountable, both criminally and civilly.”
“Any time greed replaces medical necessity as the primary factor in performing invasive diagnostic procedures, our most vulnerable citizens, the nation's elderly, are imperiled,” said Special Agent in Charge Mike Fields of the U.S. Health and Human Services Office of Inspector General’s (OIG) Dallas Regional Office. “This was a most egregious example of a money hungry physician unnecessarily placing his own patients at risk to line his pockets.”
The U.S. Department of Health and Human Services, Office of Inspector General, investigated the case. Assistant U.S. Attorney Karen J. King and Supervisory Assistant U.S. Attorney Katherine W. Vincent handled the civil case. Assistant U.S. Attorney Kelley P. Uebinger prosecuted the criminal case.
The claims resolved by this settlement are allegations only and there has been no determination of liability.
Three Kankakee Area Felons Sentenced to Prison for Illegal Possession of FirearmsRead the Press Release
Urbana, Ill. B Three Kankakee area men, with prior felony convictions, have been sentenced to federal prison terms for illegal possession of firearms, as announced by U.S. Attorney Jim Lewis, Central District of Illinois. The men, who have been in the custody of the U.S. Marshals Service since their arrests in September 2014, were sentenced on Friday, Feb. 20.
Antwon T. Crite, 38, last known address St. Anne, Ill., was sentenced to 10 years (120 months) in prison. According to the government’s factual basis presented in court, between November 2013 and June 2014, Crite illegally sold 10 different guns, including three sawed-off shotguns, a SKS assault rifle, and a handgun with an obliterated serial number. Crite has prior Illinois convictions for unlawful possession of a controlled substance and unlawful possession of marijuana.
Charles V. Williams, 39, of the 1200 block of E. Chestnut St., Kankakee, was ordered to serve five years in prison (60 months). On June 27, 2014, Williams illegally sold a 9 millimeter semi-automatic pistol to a person he believed to be a drug dealer, according to court documents. Williams has prior convictions for unlawful delivery of a controlled substance, illegal possession of a firearm, and conspiracy to sell a controlled substance.
Carlton Lashawn Smith, 35, of the 400 block of S. Rosewood Ave., Kankakee, was ordered to serve two and one-half years, (30 months) in prison. On May 17, 2011, Smith illegally sold a .32 caliber pistol. Smith has prior Illinois convictions for attempted armed robbery and delivery of a controlled substance.
The cases are the result of ongoing investigations related to gun violence in the Kankakee area by the Kankakee Area Project Safe Neighborhoods Task Force, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Kankakee Police Department. The cases are being prosecuted by Assistant U.S. Attorney Eugene L. Miller. The Kankakee Area Metropolitan Enforcement Group, Chicago Police Department, Illinois State Police, and Kankakee County Corrections assisted with the initial arrests in September 2014.
Tennessee Man Charged in Manhattan Federal Court with Misappropriating over $8 Million from Private Healthcare Services CompaniesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Diego Rodriguez, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the arrest of STEVEN RAWLINS, a former outside consultant to two healthcare services companies. As alleged, from 2009 through 2013, RAWLINS misappropriated at least $8 million from two healthcare services companies. In his capacity as a consultant for both companies, RAWLINS abused his authority to withdraw company funds for payment of legitimate business expenses and tax obligations by, among other things, using such funds to pay personal expenses incurred by RAWLINS, his family, and his associates.
RAWLINS was arrested by the FBI this morning at his residence in Tennessee, and was presented in federal court in the Middle District of Tennessee earlier today.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, as a consultant for two companies, Steven Rawlins broke his clients’ trust by misusing more than $8 million. His alleged crimes carry a maximum penalty of up to 20 years in federal prison.”
FBI Assistant Director-in-Charge Diego Rodriguez said: “As an outside consultant hired to handle internal financial matters, Rawlins allegedly took advantage of his authority and helped himself to millions of dollars of embezzled funds. His lifestyle flourished while his victims paid the ultimate price, incurring staggering financial losses resulting from the crime with which he is accused. Today, he faces the error of his ways and the due process of law.”
According to the allegations in the Complaint unsealed today in Manhattan federal court:
From 2004 to 2013, RAWLINS was retained as an outside consultant by a private healthcare services company, which is headquartered in Tennessee (“Company-1”) to assist with financing and accounting matters. RAWLINS’s responsibilities included securing financing for Company-1 and facilitating tax payments. During that time period, RAWLINS was retained by another private healthcare services company, which at the time had operations in Florida and New York (“Company-2”), to perform a similar role. As part of his responsibilities, RAWLINS was authorized to bill both Company-1 and Company-2 for legitimate business expenses incurred in connection with his services.
RAWLINS abused his authority to withdraw company funds and ultimately misappropriated more than $8 million, which he used to pay personal expenses incurred by himself, his family, and his associates. For instance, as part of his responsibilities as a consultant to Company-1, RAWLINS represented that he would handle necessary tax payments by Company-1 to the State of Tennessee. From 2011 to 2012, RAWLINS withdrew over $693,000, purportedly in order to pay Company-1’s outstanding tax liabilities to Tennessee. In reality, during that time period, Company-1 owed less than $16,000 in applicable Tennessee state taxes. Moreover, from 2012 to 2013, RAWLINS caused over $615,457 to be withdrawn from a Company-1 bank account in order to pay bills associated with an American Express credit card account. That American Express account was in turn used to pay for numerous personal expenses incurred by RAWLINS, or those associated with him, including a payment of $30,000 to a Ferrari dealership on Long Island and a payment of over $21,500 to a professional hockey franchise.
RAWLINS, 58, of Brentwood, Tennessee, is charged with one count of wire fraud. He faces a maximum sentence of 20 years in prison, a maximum term of three years of supervised release, and a fine of the greatest of $250,000, or twice the gross pecuniary gain derived from the offense or twice the gross pecuniary loss to the victim. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Bharara praised the investigative work of the FBI. He added that the investigation is continuing.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Since the inception of FFETF in November 2009, the Justice Department has filed more than 12,841 financial fraud cases against nearly 18,737 defendants including nearly 3,500 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Edward Y. Kim and Andrew J. DeFilippis are in charge of the prosecution, and Margaret S. Graham is in charge of the forfeiture aspects of the case.
The allegations contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Suspended Physician Sentenced to 1 ½ Years for Illegally Dispensing Oxycodone and Falsely Billing Medicare in Undercover ProbeRead the Press Release
CHICAGO — A suburban physician whose medical license was suspended was sentenced today to 18 months in prison for health care fraud and illegally prescribing controlled substance medications. The defendant, SATHISH NARAYANAPPA BABU, who owned Anik Life Sciences Medical Corp., pled guilty in September 2014 to illegally prescribing oxycodone and other controlled substances, and fraudulently billing Medicare approximately $500,000, and fraudulently collecting approximately $216,000, for services he did not provide. Babu, 48 of Bolingbrook, operated Anik Life Sciences, a home-visiting physician’s office, in Darien and, previously, in Arlington Heights.
U.S. District Court Judge John J. Tharp also imposed a term of three years of supervised release and a restitution amount of $221,012. Babu agreed to forfeit the approximately $126,000, which was seized at the time of his arrest and will be credited toward the restitution ordered. Also forfeited were three automobiles ― a 2013 BMW, a 2001 BMW, and a 2010 Lexus. Babu was ordered to begin serving his sentence on May 13, 2015.
“This crime wasn’t an isolated act, it was a calculated, systematic effort to milk Medicare,” commented Judge Tharp while imposing sentence, “The defendant was stealing money from those in need….putting many in need at risk.” Babu admitted that he engaged in a scheme to defraud Medicare from approximately November 2011 through February 2014. In addition, Babu admitted that between November 2012 and December 2013, he issued multiple prescriptions for controlled substances to a patient, who was actually an undercover agent, despite never having seen or examined the patient. Babu also permitted unlicensed personnel associated with Anik Life Sciences to issue prescriptions to the patient. During the same period, Babu submitted false claims to Medicare for services provided to the patient that were not rendered by Babu or another licensed medical professional.
According to court documents, the undercover agent posed as a healthy individual covered by Medicare and seeking physician services to obtain prescription medication, including oxycodone. The agent claimed to have shoulder pain from a previous injury and to be on disability. On approximately 10 occasions, representatives from Anik Life Sciences, none of whom were licensed as physicians, nurses, or other medical professionals, visited the undercover agent in his purported apartment.
Babu caused unlicensed personnel from Anik Life Sciences to provide medical care ― including prescriptions issued under Babu’s name and DEA registration number for controlled substances ― to the undercover agent and then billed Medicare for that care. Medicare and its contractor paid about $4,000 to cover the costs of the prescriptions that Babu issued to the undercover agent.
In addition to the undercover agent, Babu had other patients, whom he certified and re-certified as eligible for home health services under Medicare, and submitted claims for care he provided, including home visits and diagnostic testing and review, without regard to whether the claimed services were medically necessary. Babu hired three foreign medical school graduates who were not licensed physicians in the United States to conduct home visits and advertised these individuals as “MDs” or doctors. Babu submitted Medicare claims indicating that he personally conducted the patient visits and provided comprehensive medical evaluations that he did not actually perform.
Babu also maintained an office staff that he directed to order certain diagnostic tests for every patient, including ultrasound and autonomic nervous system testing, without regard to medical necessity. He further prescribed controlled substances to patients who he had never seen or examined and permitted his unlicensed staff to fill out prescriptions and order refills for patients.
The guilty plea was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Dennis A. Wichern, Special Agent-in-Charge of the Chicago Field Division of the Drug Enforcement Administration; Lamont Pugh III, Special Agent-in-Charge of the Chicago Regional Office of the HHS-OIG; and Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation. The government was represented by Assistant U.S. Attorney Sarah Streicker.
Superseding Indictment Charges Two Brothers with Filing 30 Fraudulent Tax Returns Seeking Refunds of More Than $200 MillionRead the Press Release
A federal grand jury has returned a superseding indictment against two brothers late yesterday, adding conspiracy to commit wire fraud, mail fraud, aggravated identity theft and money laundering charges arising from a scheme in which they filed 30 fraudulent tax returns seeking refunds of more than $204 million, announced U.S. Attorney Rod J. Rosenstein of the District of Maryland, Principal Deputy Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service-Criminal Investigation (IRS-CI) Washington, D.C., Field Office.
“As millions of U.S. taxpayers prepare to honestly file their returns, the Tax Division, working with its law enforcement partners, remains committed to prosecuting those individuals who seek to abuse and manipulate our nation’s tax system for personal gain,” said Principal Deputy Assistant Attorney General Ciraolo.
“The IRS allegedly sent $16 million to two criminals who filed bogus tax returns claiming ‘refunds’ that were not owed,” said U.S. Attorney Rosenstein. “Federal agents and prosecutors have a duty to pursue perpetrators of such fraud schemes and try to recover money stolen from the United States Treasury.”
“The American tax system is designed to fund vital government services to people in this country,” said Special Agent in Charge Kelly. “It is not a slush fund for thieves and fraudsters. Those who illegally target our nation’s tax dollars for personal financial gain could face criminal prosecution and lengthy prison sentences."
The six-count superseding indictment alleges that Sean Aude Gallman, 38, of Upper Marlboro, Maryland, and Eric Maurice Gallman, 41, of Huntersville, North Carolina, established trusts and business entities, and used mailboxes at numerous private commercial postal carrier stores in Maryland and North Carolina as the addresses for the trusts and business entities. The defendants, acting as trustees and agents, mailed fraudulent tax returns to the IRS in the names of the trusts and businesses requesting refunds.
The indictment alleges that in January 2013, Sean Gallman mailed to the IRS a fraudulent 2012 tax return in the name of the Gallman Charitable Trust, requesting a refund of $8,218,930. Also around this time, the defendants mailed to the IRS a fraudulent 2012 tax return in the name of LEA Group Holdings Trust, requesting a refund of $8,293,562. The defendants knew that the trusts were not entitled to the tax refunds. After receiving refund checks in these amounts, on Feb. 15 and March 11, 2013, the defendants deposited the two refunds in bank accounts they controlled. To hide their receipt of these refunds, the defendants used cashier’s checks and other financial instruments to transfer a portion of the money to third parties and other bank accounts.
The indictment further alleges that from January 2013 to March 23, 2014, Sean Gallman filed an additional 19 fraudulent tax returns for 2012 or 2013, in the name of numerous purported trusts and business entities, seeking $200,924,949 in refunds. On March 16, 2014, Eric Gallman filed a fraudulent tax return for 2013 in the name of a business entity, seeking a refund of $275,548. And from February 2013 to March 2014, the defendants together filed eight fraudulent tax returns for 2012 or 2013 in the name of purported trusts and business entities, seeking $42,091,389 in refunds.
Altogether, the defendants are alleged to have filed a total of 30 fraudulent tax returns seeking refunds totaling $204,971,904, for which the IRS paid two refunds totaling $16,512,492.
The indictment seeks forfeiture of the two refunds paid by the IRS; $11,529,954 seized from numerous bank accounts; foreign currency and gold and silver coins seized from a residence in Upper Marlboro; nine residential properties located in Upper Marlboro and Laurel, Maryland, North Carolina and South Carolina; and two Mercedes-Benz vehicles and one Hyundai vehicle.
The defendants each face a statutory maximum sentence of 20 years in prison for each count of conspiring to commit mail and wire fraud, conspiring to commit money laundering, and mail fraud. Sean Gallman also faces a statutory maximum sentence of 20 years in prison for an additional count for mail fraud and for money laundering, and a statutory mandatory minimum sentence of two years in prison consecutive to any other sentence imposed for aggravated identity theft.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
U.S. Attorney Rosenstein praised the Tax Division and IRS-Criminal Investigation for its work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Thomas P. Windom and Trial Attorney Erin Pulice of the Department of Justice Tax Division, who are prosecuting the case.
Superseding Indictment Charges Two Brothers with Filing 30 Fraudulent Tax Returns Seeking Refunds of over $200 MillionRead the Press Release
Greenbelt, Maryland - A federal grand jury has returned a superseding indictment against Sean Aude Gallman, age 38, of Upper Marlboro, Maryland, and his brother Eric Maurice Gallman, age 41, of Huntersville, North Carolina, late yesterday, adding conspiracy to commit wire fraud, mail fraud, aggravated identity theft and money laundering charges arising from a scheme in which they filed 30 fraudulent tax returns seeking refunds of over $204 million.
The superseding indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Principal Deputy Assistant Attorney General Caroline D. Ciraolo for the Tax Division of the Department of Justice; and Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.
“The IRS allegedly sent $16 million to two criminals who filed bogus tax returns claiming ‘refunds’ that were not owed,” said U.S. Attorney Rod J. Rosenstein. “Federal agents and prosecutors have a duty to pursue perpetrators of such fraud schemes and try to recover money stolen from the United States Treasury.”
“As millions of U.S. taxpayers prepare to honestly file their returns, the Tax Division, working with its law enforcement partners, remains committed to prosecuting those individuals who seek to abuse and manipulate our nation’s tax system for personal gain,” said Principal Deputy Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division.
“The American tax system is designed to fund vital government services to people in this country,” said Special Agent in Charge Thomas J. Kelly. “It is not a slush fund for thieves and fraudsters. Those who illegally target our nation’s tax dollars for personal financial gain could face criminal prosecution and lengthy prison sentences."
The six count superseding indictment alleges that Sean and Eric Gallman established trusts and business entities, and used mailboxes at numerous private commercial postal carrier stores in Maryland and North Carolina as the addresses for the trusts and business entities. The defendants, acting as trustees and agents, mailed fraudulent tax returns to the IRS in the names of the trusts and businesses requesting refunds.
The indictment alleges that in January 2013, Sean Gallman mailed to the IRS a fraudulent 2012 tax return in the name of the Gallman Charitable Trust, requesting a refund of $8,218,930. Also around this time, the defendants mailed to the IRS a fraudulent 2012 tax return in the name of LEA Group Holdings Trust, requesting a refund of $8,293,562. The defendants knew that the trusts were not entitled to the tax refunds. After receiving refund checks in these amounts, on February 15 and March 11, 2013, the defendants deposited the two refunds in bank accounts they controlled. To hide their receipt of these refunds, the defendants used cashier’s checks and other financial instruments to transfer a portion of the money to third parties and other bank accounts.
The indictment further alleges that from January 2013 to March 23, 2014, Sean Gallman filed an additional 19 fraudulent tax returns for 2012 or 2013, in the name of numerous purported trusts and business entities, seeking $200,924,949 in refunds. On March 16, 2014, Eric Gallman filed a fraudulent tax return for 2013 in the name of a business entity, seeking a refund of $275,548. And from February 2013 to March 2014, the defendants together filed eight fraudulent tax returns for 2012 or 2013 in the name of purported trusts and business entities, seeking $42,091,389 in refunds.
Altogether, the defendants are alleged to have filed a total of 30 fraudulent tax returns seeking refunds totaling $204,971,904, for which the IRS paid two refunds totaling $16,512,492.
The indictment seeks forfeiture of the two refunds paid by the IRS; $11,529,954 seized from numerous bank accounts; foreign currency, and gold and silver coins, seized from a residence in Upper Marlboro; nine residential properties located in Upper Marlboro and Laurel, Maryland, North Carolina and South Carolina; and two Mercedes-Benz vehicles and a Hyundai vehicle.
The defendants face a maximum sentence of 20 years in prison for conspiring to commit mail and wire fraud, conspiring to commit money laundering, and mail fraud. Sean Gallman also faces a maximum sentence of 20 years in prison for an additional count for mail fraud and for money laundering; and a mandatory minimum of two years in prison consecutive to any other sentence imposed for aggravated identity theft.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein praised the Tax Division and IRS-Criminal Investigation for its work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Thomas P. Windom and Trial Attorney Erin Pulice of the Department of Justice Tax Division, who are prosecuting the case.
St. Johnsbury Man Sentenced to Prison for Child Pornography OffenseRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Jose Bruzual, 51, of St. Johnsbury, Vermont, was sentenced on February 23, 2015, in United States District Court in Burlington, Vermont, to serve 30-months imprisonment and a five-year period of supervised release following his conviction on one count of possession of child pornography, in violation of 18 U.S.C. § 2252(a)(4)(B). Judge William K. Sessions III also ordered Bruzual to pay a $100 special assessment.
According to court records and proceedings, in the fall of 2013, law enforcement was conducting undercover investigation into the use of file-sharing programs on the Internet to trade child pornography. It discovered that a computer with an IP address later associated with Bruzual had images of child pornography on it. Bruzual was then a teacher at St. Johnsbury Academy and a dorm proctor. On November 21, 2013, law enforcement executed a warrant to search Bruzual’s residence and computers, and discovered more than 1,000 still images and hundreds of videos of child pornography. Bruzual was taken into custody and later fired by St. Johnsbury Academy. Bruzual’s collection included sadistic and masochistic material. Among the images of child pornography found in Bruzual’s collection were images in which Bruzual had altered photographs of the victim child to feature the faces of known little girls.
The government advocated for a sentence of 78 months, which was at the low-end of the advisory Sentencing Guidelines range. In rejecting the government’s recommended sentence and granting the defendant’s request for a variance, Judge Sessions noted that at the time it was seized by law enforcement, Bruzual’s computer had the “share function” turned off, meaning that images of child pornography could not be uploaded by other offenders from his computer. Judge Sessions also noted that Bruzual had no prior criminal record, he is likely to be deported as he is a Venezuelan citizen, he will not receive treatment in prison because he will likely be deported, and the advisory Guideline for child pornography offenses can lead to excessive sentences. Based on the foregoing, Judge Sessions granted the requested variance and reduced Bruzual’s sentence from the 78-month sentence called for by the advisory Guidelines to 30-months.
Acting United States Attorney Eugenia A.P. Cowles commended the efforts of Homeland Security Investigations and investigators with the Vermont Attorney General’s Office in the investigation and prosecution of Bruzual. The prosecution of Bruzual was handled by Assistant U.S. Attorney Barbara A. Masterson. Bruzual was represented by David L. McColgin.
Acting U.S. Attorney Cowles noted that this prosecution is part of the U.S. Department of Justice=s Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney's Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Smithfield Resident Pleads Guilty to Money Laundering and Harboring a FugitiveRead the Press Release
NEWPORT NEWS, Va. – Danish Syed, 19, of Smithfield, Va., pleaded guilty today to Conspiracy to Commit Money Laundering and Harboring a Fugitive.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Thomas J. Kelly, Special Agent in Charge of the Internal Revenue Service Criminal Investigation’s Washington, D.C., Field Office; and John S. Adams, Special Agent in Charge of the FBI’s, Norfolk Field Office, made the announcement after the plea was accepted by U.S. District Judge Raymond A. Jackson.Danish Syed was indicted by a federal grand jury on December 24, 2014. Syed faces a maximum penalty of twenty years in prison for conspiracy to commit money laundering and ten years in prison for harboring a fugitive. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
According to the statement of facts filed with his plea agreement, Danish Syed is the half-brother of Mehdi Syed, who was charged, in March, 2014, with an account take over and identity theft scheme. As alleged in the indictment, Mehdi, under the guise of a legitimate company sought to obtain thousands of dollars from customers of SunTrust Bank by fraudulently transferring funds from individual accounts to nominee checking accounts established by Mehdi in the names of aliases and purported business entities. In April, 2014, Mehdi was located in North Carolina and agreed to surrender to authorities. Mehdi relocated his family from North Carolina to Smithfield, Virginia; the home of his mother, his step-father and his half-brother, Danish. After Mehdi failed to turn himself in, authorities interviewed his family members and they each claimed they did not know his whereabouts. The next day Mehdi’s mother, “NS,” contacted authorities and admitted they had lied to the FBI and that they did know Mehdi’s location as Danish Syed drove Mehdi to a hotel on the Eastern Shore of Virginia. Mehdi was arrested and on May 28, 2014 was released on bond and electronic monitoring. In June, 2014, Mehdi opened several bank accounts with FirstView in the names of aliases. On July 9, 2014 Mehdi’s electronic monitoring bracelet was located in a wooded area off of Mercury Blvd. in Hampton, Virginia, and on the same day a warrant was issued for his arrest.
One of the customers whose account was fraudulently accessed was “DS.” Beginning in August, 2014 Mehdi caused “DS’s” account to be accessed without his permission. Through third party payroll services thousands of dollars were transferred out of “DS’s” account and into the FirstView accounts Mehdi had created while on pre-trial release. FirstView closed several of the accounts they suspected were opened on suspicion of fraud and the funds were mailed to the address on record; Danish Syed’s home in Smithfield. Thereafter Danish Syed communicated with Mehdi Syed about the funds. On or about October 14, 2014 through October 16, 2014, Danish Syed deposited the FirstView checks, which represented fraudulent funds, into an account accessible by Mehdi. From October 15, 2014 through October 30, 2014 Mehdi withdrew nearly all of the funds that Danish had deposited into the account from ATM machines located in Lahore, Pakistan.
This case was investigated by IRS-CI and FBI. Assistant U.S. Attorneys Brian J. Samuels and Kaitlin Gratton are prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:14CR72.Shafter Man Convicted of Possession with Intent to Distribute Four Pounds of MethamphetamineRead the Press Release
FRESNO, Calif. — United States Attorney Benjamin B. Wagner announced today that Santos Acevedo Gutierrez, 41, resident of Shafter, pleaded guilty yesterday to possession with attempt to distribute methamphetamine and agreed to the forfeiture of over $10,123.
According to court documents, on April 30, 2014 Kern County Sheriff Deputies executed a search warrant at Gutierrez’s home in Shafter, CA and seized approximately four pounds of methamphetamine as well as a digital scale, packaging materials and over $10,000 in United States Currency.
Gutierrez is scheduled to be sentenced by United States District Judge Lawrence J. O'Neill on May 18, 2015 at 8:30 AM. Gutierrez faces a maximum penalty of life in prison and a $10,000,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables
This case was the product of the work of the Kern County Sheriff’s Office, and the Department of Homeland Security Investigations. Assistant United States Attorney Brian K. Delaney is prosecuting the case.Sanford Man Charged for Circle K RobberyRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces the arrest and charge by a federal complaint of Dontreaun Alexander (24, Sanford) with interference of interstate commerce by robbery. If convicted, he faces a maximum penalty of 20 years in federal prison.
According to the complaint, on December 28, 2014, Alexander and Brandon Maurice Long committed an armed robbery of the Circle K store located at 7530 Forest City Road in Orlando. Long was apprehended on the night of the robbery. He was indicted on February 4, 2015. Alexander fled the scene and was later arrested on February 23, 2015.
A complaint is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Federal Bureau of Investigation and the Orange County Sherriff’s Office. It will be prosecuted by Assistant United States Attorneys Vincent Chiu and Kara M. Wick.
Roswell Man Pleads Guilty to Federal Narcotics Trafficking ChargesRead the Press Release
ALBUQUERQUE – Simon Nicholas Sais, 44, of Roswell, N.M., pleaded guilty this afternoon in federal court in Las Cruces, N.M., to methamphetamine and cocaine trafficking charges. The guilty plea was entered without the benefit of a plea agreement.
Sais was arrested on Oct. 22, 2014, on a criminal complaint charging him with distribution of methamphetamine and cocaine. According to the complaint, between June 2013 and Aug. 2013, Sais sold approximately 359.4 grams of pure methamphetamine and approximately 43.5 grams of cocaine to an undercover agent working with the Lea County Drug Task Force (LCDTF) in Roswell and Hobbs, N.M. Sais subsequently was charged on Jan. 14, 2015, in a six-count indictment charging him with distributing methamphetamine on five occasions between June 2013 and Aug. 213, and distributing cocaine in June 2013.
During today’s proceedings, Sais pled guilty to the indictment, admitting that between June 26 and Aug. 13, 2013, he distributed methamphetamine and cocaine throughout Lea County and Chaves County, N.M.
Sais has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled. At sentencing, Sais faces a mandatory minimum of ten years and a maximum of life in prison.
This case was investigated by the Roswell office of the FBI and the Lea County Drug Task Force, and is being prosecuted by Assistant U.S. Attorney Marisa A. Lizarraga of the U.S. Attorney’s Las Cruces Branch Office.
The Lea County Drug Task Force is comprised of officers from the Lea County Sheriff’s Office, Hobbs Police Department, Lovington Police Department, Eunice Police Department the Tatum Police Department and the Jal Police Department, and is part of the HIDTA Region VI Drug Task Force. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Reward Announced for Cyber FugitiveRead the Press Release
The Justice Department, in partnership with the U.S. Department of State’s Transnational Organized Crime (TOC) Rewards Program, announced today a reward of up to $3 million for information leading to the arrest and/or conviction of a prolific cyber criminal. Evgeniy Mikhailovich Bogachev was charged with numerous violations for his role as an administrator of the GameOver Zeus botnet.
The software was used to capture bank account numbers, passwords, personal identification numbers and other information necessary to log into online banking accounts. It is believed GameOver Zeus is responsible for more than 1 million computer infections, resulting in financial losses of more than $100 million.
Bogachev is on the FBI’s Cyber’s Most Wanted and is believed to be at large in Russia.
The TOC reward offer reaffirms the commitment of the U.S. government to bring those who participate in organized crime to justice, whether they hide online or overseas.
Bogachev was charged in 2014 in Pittsburgh, Pennsylvania, with conspiracy, computer hacking, wire fraud, bank fraud, and money laundering in connection with his alleged role as an administrator of the GameOver Zeus botnet. Bogachev was also indicted by criminal complaint in Omaha, Nebraska, in 2012 and charged with conspiracy to commit bank fraud related to his alleged involvement in the operation of a prior variant of Zeus malware known as Jabber Zeus.
Anyone with information on Bogachev should contact the FBI via the Major Case Contact Center, 1-800-CALL-FBI (225-5324), or the nearest U.S. Embassy or Consulate. You may also submit a tip online via tips.fbi.gov. All information will be kept strictly confidential.
Reward Announced for Cyber FugitiveRead the Press Release
WASHINGTON – The Justice Department, in partnership with the U.S. Department of State’s Transnational Organized Crime (TOC) Rewards Program, announced today a reward of up to $3 million for information leading to the arrest and/or conviction of a prolific cyber criminal. Evgeniy Mikhailovich Bogachev was charged with numerous violations for his role as an administrator of the GameOver Zeus botnet.
The software was used to capture bank account numbers, passwords, personal identification numbers and other information necessary to log into online banking accounts. It is believed GameOver Zeus is responsible for more than 1 million computer infections, resulting in financial losses of more than $100 million.
Bogachev is on the FBI’s Cyber’s Most Wanted and is believed to be at large in Russia.
The TOC reward offer reaffirms the commitment of the U.S. government to bring those who participate in organized crime to justice, whether they hide online or overseas.
Bogachev was charged in 2014 in Pittsburgh, Pennsylvania, with conspiracy, computer hacking, wire fraud, bank fraud, and money laundering in connection with his alleged role as an administrator of the GameOver Zeus botnet. Bogachev was also indicted by criminal complaint in Omaha, Nebraska, in 2012 and charged with conspiracy to commit bank fraud related to his alleged involvement in the operation of a prior variant of Zeus malware known as Jabber Zeus.
“To achieve justice in the cybersphere, we must be aggressive, innovative and relentless to ensure that those living outside our borders do not have a pass to commit crimes within them,” stated David J. Hickton, U.S. Attorney for the Western District of Pennsylvania. “We are ready to bring Evgeniy Bogachev to justice in federal court in Pittsburgh. We will use every available legal and diplomatic means to bring all cyber-criminals to justice wherever they reside.”
Anyone with information on Bogachev should contact the FBI via the Major Case Contact Center, 1-800-CALL-FBI (225-5324), or the nearest U.S. Embassy or Consulate. You may also submit a tip online via tips.fbi.gov. All information will be kept strictly confidential.
Removed Alien Sentenced to Time Served for Re-entering United States Without PermissionRead the Press Release
PITTSBURGH - A citizen of Mexico, plead guilty and has been sentenced in federal court to time served (5 ½ months incarceration) on his conviction of violating federal immigration laws, United States Attorney David J. Hickton announced today.
United States District Judge Mark R. Hornak imposed the sentence on Joel Sanchez-Lara, 38, of Mexico.
According to information presented to the court, on or about Sept. 8, 2014, Sanchez-Lara was found in Carnegie, Pa., after having unlawfully re-entered the United States following removal on three previous occasions and not having applied for or received permission to re-enter.
Assistant United States Attorney Margaret E. Picking prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended United States Immigration and Customs Enforcement (ICE) for the investigation leading to the successful prosecution of Sanchez-Lara.
Raleigh Resident Sentenced to 60 Months for Loan and Insurance FraudRead the Press Release
GREENVILLE – United States Attorney Thomas G. Walker announced that today in federal court, Senior United States District Judge Malcolm J. Howard sentenced TERESA LYN FLETCHER , age 55, of Raleigh, North Carolina, to 60 months imprisonment, followed by 5 years of supervised release.
FLETCHER pleaded guilty to a Criminal Information filed on September 3, 2014, charging her with two counts of bank fraud and one count of mail fraud. According to the investigation, charging documents and statements made in court, FLETCHER engaged in separate schemes to defraud Bank of North Carolina, TD Bank, and Liberty Mutual Insurance over a 10-month span in 2013.
In January 2013, FLETCHER provided false information about her income and assets to Bank of North Carolina in order to obtain a personal loan. Among other things, FLETCHER falsified her credit application and submitted bogus wage records. After Bank of North Carolina approved the loan based on FLETCHER’s fraudulent representations, FLETCHER proceeded to rapidly dissipate the loan proceeds. When FLETCHER defaulted on the loan for non-payment, she filed a false identity theft report with Equifax claiming that someone else had opened the loan account.
In February 2013, FLETCHER closed on the purchase of a $1.85 million residence in Raleigh. To finance the purchase, FLETCHER applied to TD Bank for over $1.65 million in loans. During the loan approval process, FLETCHER gave false information to TD Bank about her financial condition and the nature of the sales transaction. Among other things, FLETCHER completed a loan application in which she falsified her assets, provided TD Bank with counterfeit bank records and fake IRS Forms W-2 reflecting grossly inflated wages, and fraudulently represented in the HUD-1 settlement statement that she had received a “gift of equity” to be applied to the purchase price, when, in fact, it was a concealed side loan. After defaulting on her loan obligations to TD Bank, FLETCHER submitted a false identity theft report to Experian in an effort to prevent the negative item from appearing on her credit report.
FLETCHER’s Raleigh residence was thereafter insured by Liberty Mutual Insurance. From approximately May 2013 to October 2013, FLETCHER made repeated false claims against the Liberty Mutual homeowner’s policy for reimbursement of expenses she purportedly incurred to repair the residence after a spring storm hit the Raleigh area. In furtherance of the scheme, FLETCHER generated counterfeit records from contractors and vendors and provided them to Liberty Mutual to support her claims.
Investigation of this case was conducted by the United States Secret Service. The prosecution was handled by Assistant United States Attorney Adam F. Hulbig.
Orange County Man Sentenced for Child Pornography ViolationsRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – A 32-year-old Orange, Texas man has been sentenced to 10 years in federal prison for child pornography violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Jason Ryan Bickham pleaded guilty on Sep. 17, 2014 to possession of child pornography and was sentenced to 120 months in federal prison today by U.S. District Judge Thad Heartfield.According to information presented in court, law enforcement authorities were alerted by a citizen that Bickham had images containing child pornography on his cellular phone. Bickham provided officers consent to search the phone and a forensic analysis revealed multiple images and videos of child pornography. Bickham was indicted by a federal grand jury on June 4, 2014.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Orange Police Department and the Beaumont Police Department and prosecuted by Assistant U.S. Attorney Randall L. Fluke.Ohio man sentenced for role in heroin conspiracyRead the Press Release
HUNTINGTON, W.Va. – United States Attorney Booth Goodwin announced today that Eric Greer, 39, of Gallipolis, Ohio, was sentenced to 46 months in federal prison.
In October 2014, Greer pleaded guilty to his role in a conspiracy to transport heroin from Detroit for distribution in Gallipolis, Ohio, and Mason County, West Virginia. He admitted to participating in the conspiracy from the summer of 2011 to October 2012.
Chief United States District Judge Robert C. Chambers imposed the sentence.
The case was investigated by the West Virginia State Police and Drug Enforcement Administration. Assistant United States Attorney John Frail handled the prosecution.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of heroin and prescription drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal heroin and pill trafficking, eliminating open air drug markets and curtailing the spread of opiate painkillers in communities across the Southern District.
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Nurse Practitioner Indicted on Health Care Fraud and Aggravated Identity Theft ChargesRead the Press Release
ATLANTA - Daphne Maria Patterson has been arraigned on federal charges of health care fraud and aggravated identity theft. She allegedly stole patients and their family member’s identities and billed insurance providers for services she did not render. Patterson was indicted by a federal grand jury on February 17, 2015.
“This health care provider is charged with committing an egregious violation of her patients’ trust. The indictment alleges that she not only used patients’ information to submit false claims to insurance companies, she also tried to make even more profits by stealing the personal information of patients’ family members and filing additional false claims on their behalf,” said Acting U.S. Attorney John Horn. “When someone steals money through health care fraud, it’s not just a matter of illegal profit by the thief, as the theft impacts all of our medical costs.”
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “Health care programs are critical to those who are truly in need. Such conduct by those individuals who would divert those much needed but limited funds for personal gain should not and will not be condoned. The FBI takes all allegations of health care fraud very seriously and will continue to work with its various law enforcement partners to present for prosecution those individuals involved in this criminal activity.”
“Thanks to the combined efforts of my office and federal agencies, I believe we have stopped a major perpetrator of insurance fraud,” said Georgia Insurance Commissioner Ralph Hudgens. “I credit the excellent investigative work by all agencies with breaking this case open.”According to Acting U.S. Attorney Horn, the charges, and other information presented in court: Daphne Patterson is a registered nurse practitioner and owner of Healthier U 4 Ever Wellness Center, a clinic in Stone Mountain, Georgia. The indictment alleges that while employed with another medical practice in Lawrenceville, Georgia, Patterson stole the personal information of her patients to file false claims with United Insurance Company for various allergy tests and treatment that the patients never received. Additionally, she used her access to the patients’ personal information in order to steal family members’ identifying information and to seek further reimbursement from United for services she had not rendered to patients she had never seen.
The indictment further alleges that after leaving the medical office and opening her own clinic in Stone Mountain, Patterson continued the fraudulent scheme by billing several insurance companies for allergy tests and treatments that she did not provide to her patients. In total, Ms. Patterson obtained more than $1 million from the insurance companies on the basis of her false claims.
Daphne Maria Patterson, 44, of Stone Mountain, Georgia, was arraigned before U.S. Magistrate Judge E. Clayton Scofield III. Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Federal Bureau of Investigation and the Georgia Department of Insurance.
Assistant United States Attorney Jamie Mickelson is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.