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23 February 2015
Two Men Who Provided Material Support to Terrorists and Plotted to Kill Americans in Afghanistan Receive 25-Year Prison TermsRead the Press Release
RIVERSIDE, California – Two men with ties to the Inland Empire were each sentenced today to 300 months in federal prison for participating in plots to provide material support to terrorists and to kill American personnel.
The two men sentenced today by United States District Judge Virginia A. Phillips are:
Sohiel Omar Kabir, 37, a naturalized United States citizen who was born in Afghanistan and who until late 2011 resided in Pomona; and
Ralph Deleon, 26, of Ontario, a lawful permanent resident and citizen of the Philippines.
The sentencings follow a 6½-week trial last summer in which a federal jury convicted Kabir and Deleon for their role in a plot to travel overseas to fight against U.S. and Allied forces in Afghanistan and elsewhere. Specifically, the jury convicted Kabir and Deleon of conspiring to provide material support to terrorists and conspiring to murder United States military and government personnel.
The jury also found Kabir guilty of conspiring to provide material support to a designated foreign terrorist organization, namely Al-Qa’ida, and conspiring to receive military-type training from Al-Qa’ida. In addition, the jury convicted Deleon of conspiring to murder, maim or kindap overseas.
Two other defendants in the case – Miguel Alejandro Santana Vidriales and Arifeen David Gojali – previously pleaded guilty and are scheduled to be sentenced by Judge Phillips on March 16.
“This case demonstrates the need for vigilance and swift action to counter the false allure of violent extremism,” said United States Attorney Stephanie Yonekura. “When confronted with young Americans who succumbed to the empty promises of violent extremism and sought to assist a terrorist group in killing American soldiers abroad, law enforcement acted swiftly to eliminate the threat.”
David Bowdich, the Assistant Director in Charge of the FBI,s Los Angeles Field Office, commented: “The defendants betrayed the citizens of the United States by supporting terror and conspiring to murder military members serving overseas. The lengthy prison sentences handed to Mr. Kabir and Mr. DeLeon should send a clear message to those who support terror groups that the FBI and our partners are committed to preventing deadly plots hatched either at home or abroad targeting the United States.”
The evidence presented at trial showed Kabir introduced Deleon and Santana to radical Islamic ideology in 2010. Kabir left the United States in the final days of 2011, arriving in Afghanistan in July 2012. While in Afghanistan, Kabir continued to communicate with Deleon and others, encouraging them to join him in Afghanistan. Kabir told the group that he had contacts with terrorist organizations and that, when they arrived, he and the group would join “the Students” – referring to the Taliban – and later “the Professors” – referring to Al-Qa’ida.
Deleon, Kabir, and others involved in the plot were heavily influenced by the doctrine of now-deceased Al-Qa’ida in the Arabian Peninsula spokesman Anwar Al-Awlaki and other advocates of violent jihad, whose teachings they frequently invoked during their planning and preparation in this case.
In September 2012, Deleon recruited Gojali to join the plot to travel overseas to engage in violent jihad. As part of their planning and preparation, Deleon led Santana and Gojali in training activities in Southern California, including participating in paintball activities and traveling to firearms ranges to fire AK-47s and other assault weapons, which they expected to use in future fighting.
The men made plans to rejoin Kabir, who had relocated to Kabul, Afghanistan. In effort to avoid detection by law enforcement, Deleon and the others planned to cross the border into Mexico by land and from there to travel to the Middle East by air. In November 2012, Deleon purchased airline tickets for the group. On November 16, 2012, the FBI arrested Deleon, Santana and Gojali as they departed a Chino apartment in a car driven by one of Deleon’s associates intending to drive to Mexico. Kabir was taken into custody by American military personnel in Afghanistan.
The investigation of this terrorist plot was conducted by the Joint Terrorism Task Force (JTTF) in Riverside, California. The Riverside JTTF is comprised of members from the Riverside County Sheriff’s Office, the Riverside Police Department, the San Bernardino Sheriff’s Department, the Beaumont Police Department, the Ontario Police Department, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the United States Attorney’s Office, and the Federal Bureau of Investigation.
Release No. 15-018
Two Florida Couples Agree to Pay $1.13 Million to Resolve Allegations that they Accepted Kickbacks in Exchange for Home Health Care ReferralsRead the Press Release
Two South Florida medical doctors and their wives have agreed to settle allegations that they violated the False Claims Act when their wives accepted sham marketer salaries in exchange for their husbands’ referrals to a home health care company called A Plus Home Health Care Inc., the Justice Department announced today. Under the settlements, Dr. Alan and Lynn Buhler will pay to the United States $1.047 million and Dr. Craig and Cynthia Prokos will pay $90,000. Dr. Buhler practices in Plantation, Florida, and Dr. Prokos practices in Jupiter, Florida.
“The settlement announced today is another example of the Justice Department’s unrelenting efforts to hold accountable those who engage in kickback schemes,” said U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida. “Health care providers should generate business by offering their patients superior care. Financial relationships that put profits over patients undermine the quality and care given to patients and ultimately, the integrity of our public health care program upon which millions of Americans depend.”
“Kickbacks can corrupt the judgment of physicians and cause them to make decisions for their own financial benefit rather than for the benefit of their patients,” said Acting Assistant Attorney General Joyce R. Branda of the Justice Department’s Civil Division. “We will not tolerate these conflicts of interest where Medicare patients and dollars are concerned.”
The United States alleged that, beginning in 2006, A Plus and its owner, Tracy Nemerofsky, engaged in a scheme to increase Medicare referrals in the heavily saturated home health care market in South Florida. Specifically, the United States alleged that A Plus paid spouses of referring physicians for sham marketing positions in order to induce patient referrals. Among the spouses allegedly paid by A Plus as part of this scheme were Lynn Buhler and Cynthia Prokos. The United States alleged that the spouses were required to perform few, if any, of the job duties they were allegedly hired for and instead, the spouses’ salaries were intended as an inducement for the husband physicians to refer their Medicare patients to A Plus. The United States also alleged that Alan Buhler received medical director payments as part of A Plus’s scheme to obtain his referrals and he attempted to hide those payments from the United States.
The United States previously settled with A Plus, Tracy Nemerofsky and five other couples that allegedly accepted payments from A Plus.
The settlements announced today resolve allegations that were brought by William Guthrie, a former director of development at A Plus, under the qui tam or whistleblower provisions of the False Claims Act, which permit private parties to sue on behalf of the United States for the submission of false claims and to receive a share of any recovery. On Jan. 6, Judge William P. Dimitrouleas dismissed Mr. Guthrie’s suit without prejudice to the United States’ right to proceed. The lawsuit was captioned U.S. ex rel. Guthrie v. A Plus Home Health Care, Inc., 12 CV 60629 (S.D. Fla.).
“Being a physician in the Medicare program is a privilege, not a right,” said Special Agent in Charge Derrick L. Jackson of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “Physicians who engage in such in-your-face kickback schemes to refer Medicare patients to certain home health companies in exchange for money will be held accountable for their behavior. Our agency will continue to crack down on kickbacks, which undermine impartial medical judgment, corrode the public’s trust in the health care system and waste scarce Medicare funding.”
These settlements illustrate the government’s emphasis on combating health care fraud and mark another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $23.7 billion through False Claims Act cases, with more than $15.2 billion of that amount recovered in cases involving fraud against federal health care programs.
The investigation of this matter reflects a coordinated effort among the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the Southern District of Florida, HHS-OIG and the FBI. This matter is being handled by Assistant U.S. Attorney Susan Torres and Department of Justice Trial Attorneys Elizabeth Young and Derek M. Adams.
The claims resolved by the settlements are allegations only and there has been no determination of liability.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Two Florida Couples Agree to Pay $1.13 Million to Resolve Allegations that They Accepted Kickbacks in Exchange for Home Health Care ReferralsRead the Press Release
Two South Florida medical doctors and their wives have agreed to settle allegations that they violated the False Claims Act when their wives accepted sham marketer salaries in exchange for their husbands’ referrals to a home health care company called A Plus Home Health Care Inc., the Justice Department announced today. Under the settlements, Dr. Alan and Lynn Buhler will pay to the United States $1.047 million and Dr. Craig and Cynthia Prokos will pay $90,000. Dr. Buhler practices in Plantation, Florida, and Dr. Prokos practices in Jupiter, Florida.
“Kickbacks can corrupt the judgment of physicians and cause them to make decisions for their own financial benefit rather than for the benefit of their patients,” said Acting Assistant Attorney General Joyce R. Branda of the Justice Department’s Civil Division. “We will not tolerate these conflicts of interest where Medicare patients and dollars are concerned.”
“The settlement announced today is another example of the Justice Department’s unrelenting efforts to hold accountable those who engage in kickback schemes,” said U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida. “Health care providers should generate business by offering their patients superior care. Financial relationships that put profits over patients undermine the quality and care given to patients and ultimately, the integrity of our public health care program upon which millions of Americans depend.”
The United States alleged that, beginning in 2006, A Plus and its owner, Tracy Nemerofsky, engaged in a scheme to increase Medicare referrals in the heavily saturated home health care market in South Florida. Specifically, the United States alleged that A Plus paid spouses of referring physicians for sham marketing positions in order to induce patient referrals. Among the spouses allegedly paid by A Plus as part of this scheme were Lynn Buhler and Cynthia Prokos. The United States alleged that the spouses were required to perform few, if any, of the job duties they were allegedly hired for and instead, the spouses’ salaries were intended as an inducement for the husband physicians to refer their Medicare patients to A Plus. The United States also alleged that Alan Buhler received medical director payments as part of A Plus’s scheme to obtain his referrals and he attempted to hide those payments from the United States.
The United States previously settled with A Plus, Tracy Nemerofsky and five other couples that allegedly accepted payments from A Plus.
The settlements announced today resolve allegations that were brought by William Guthrie, a former director of development at A Plus, under the qui tam or whistleblower provisions of the False Claims Act, which permit private parties to sue on behalf of the United States for the submission of false claims and to receive a share of any recovery. On Jan. 6, Judge William P. Dimitrouleas dismissed Mr. Guthrie’s suit without prejudice to the United States’ right to proceed. The lawsuit was captioned U.S. ex rel. Guthrie v. A Plus Home Health Care, Inc., 12 CV 60629 (S.D. Fla.).
“Being a physician in the Medicare program is a privilege, not a right,” said Special Agent in Charge Derrick L. Jackson of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “Physicians who engage in such in-your-face kickback schemes to refer Medicare patients to certain home health companies in exchange for money will be held accountable for their behavior. Our agency will continue to crack down on kickbacks, which undermine impartial medical judgment, corrode the public’s trust in the health care system and waste scarce Medicare funding.”
These settlements illustrate the government’s emphasis on combating health care fraud and mark another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $23.7 billion through False Claims Act cases, with more than $15.2 billion of that amount recovered in cases involving fraud against federal health care programs.
The investigation of this matter reflects a coordinated effort among the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the Southern District of Florida, HHS-OIG and the FBI.
The claims resolved by the settlements are allegations only and there has been no determination of liability.
Timothy Caskey Sentenced to 25 Years in Prison for Kidnapping A Woman and Fleeing to MexicoRead the Press Release
United States Attorney Andrew M. Luger announced the sentencing of TIMOTHY GLEN CASKEY, 43, to 300 months in federal prison for assaulting a woman, kidnapping her, and robbing a bank in Kansas while in-transit to Mexico with the kidnapped victim. CASKEY was charged on September 21, 2011, with kidnapping and interstate domestic violence, and on October 19, 2011 with bank robbery. CASKEY pleaded guilty on February 6, 2014, to kidnapping and bank robbery. The defendant was sentenced on February 20, 2015, before Judge John R. Tunheim in U.S. District Court in Duluth, Minn.
“Timothy Caskey kidnapped the victim and took her to Mexico, where he repeatedly threatened her, and physically and sexually assaulted her,” said Assistant U.S. Attorney Michelle E. Jones. “The defendant funded his violent escapade by robbing a bank in Kansas and stealing a truck in Texas. His history of violent criminal behavior, combined with his guilty plea for these crimes, properly resulted in his 25-year prison sentence. I am grateful to the police departments in Virginia, Minnesota and New Braunfels, Texas, as well as the FBI and BCA for conducting an excellent investigation in this case.”
According to the defendant’s guilty plea and documents filed in court, on July 14, 2011, CASKEY forcibly kidnapped the victim from a street in Virginia, Minnesota, while she was walking with her 9-year-old son, and three others. CASKEY forced the victim into his car, attacked her 9-year-old son and another person, and fled with the victim. CASKEY attacked her repeatedly with the handle of a screwdriver before pulling off the highway and sexually assaulting the victim.
According to the defendant’s guilty plea and documents filed in court, on July 15, 2011, CASKEY robbed the Great Southern Bank in Ottawa, Kansas. Before entering the bank, CASKEY used shoelaces to tie up the kidnapping victim and left her in his vehicle. The defendant later stole a pickup truck from a used car dealership in New Braunfels, Texas. Thereafter, CASKEY crossed the border into Mexico, where he continued to physically and sexually assault the kidnapping victim. He threatened to kill her if she tried to escape, and also withheld food and water from the victim. CASKEY was apprehended on August 8, 2011 in Mexico.
This case resulted from an investigation conducted by the Federal Bureau of Investigation, the Minnesota Bureau of Criminal Apprehension, Virginia Police Department (Minnesota), and the New Braunfels Police Department (Texas).
This case was prosecuted by Assistant U.S. Attorneys Michelle E. Jones and Nate Petterson.
Defendant Information: TIMOTHY GLEN CASKEY, 43
Virginia, Minn.
Convicted: • Kidnapping, 1 count
• Bank Robbery, 1 count
Sentenced: • 300 months in prison
• 5 years of supervised releaseSuburban Police Departments and Sheriffs' Offices to get Crime Analysis Training through Justice Department GrantRead the Press Release
Seven suburban police department in Cuyahoga County and four county sheriffs’ offices will have increased crime analysis capability through a $300,000 Justice Department grant, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio.
“Our office will continue to support law enforcement beyond prosecuting cases, whether that means paying for more officers or advanced training or supportive technology,” Dettelbach said. “This grant will help departments utilize their resources more effectively, making both the community and the officers safer.”
The police departments which will undergo the crime analysis training are Beachwood, Bedford, Berea, Euclid, Mayfield Heights, Parma and Rocky River, as well as the sheriff’s offices in Ashtabula, Geauga, Lake and Lorain counties.
The departments will receive training, technical support, computer software and hardware related to crime analysis. When the work is completed, the departments will be capable of using their training and software to effectively map and analyze crime trends, and to also share that data with other area departments which have already undergone the training.
The grant was made to the Northern Ohio Violent Crime Consortium, a project administered by the U.S. Attorney’s Office which brings together leadership from the police departments of Akron, Canton, Cleveland, Elyria, Lorain, Mansfield, Toledo and Youngstown, federal and state law enforcement agencies as well as researchers from Kent State University and the University of Akron.
The eight NOVCC cities underwent similar crime analysis training last year and will receive continued training through this grant.
Each department will designate officers to receive intense training over several days. Technical support will be provided by computer and crime analysis experts. Funding will be provided for crime analysis software where necessary. Follow-up will be done to insure crime analysis capabilities are being fully implemented into all aspects of the department.
The Northeast Ohio Regional Fusion Center is also a partner in this effort. The goal will be to develop a toolkit to increase crime analysis capacity that can be replicated and shared across the country. Northern Ohio was one of three regions to be awarded the grant, along with Tempe, Ariz. and Charlotte/Mecklenburg, N.C.
The project will start Tuesday, Feb. 24, with an all-day kickoff meeting at Mayfield Village Civic Center. Marty Sumner, chief of the High Point (N.C.) Police Department, will address the group on his city’s success in reducing crime using crime analysis, evidence-based practices and community engagement. Police leadership from the NOVCC cities will also address the group on their progress and on previous projects, sharing success stories and lessons learned.
Springfield Man Pleads Guilty to Heroin and Cocaine DistributionRead the Press Release
BOSTON – Alberto Correa-Martinez, 26, of Springfield, pleaded guilty today to conspiracy to possess with intent to distribute and to distribute cocaine, distribution of heroin, and three counts of distribution of cocaine. U.S. District Judge Timothy S. Hillman scheduled sentencing for June 17, 2015.
On July 23, 2013, Correa-Martinez sold heroin and cocaine to an undercover federal agent. A week later, on July 31, 2013, Correa-Martinez sold cocaine to the same agent. Then on August 6, 2013, Correa-Martinez, along with a co-conspirator, met the agent on Main Street in Springfield, just yards from the state courthouse, to sell him cocaine once again. The drug purchases were captured on video.
The charging statutes each provide a sentence of no greater than 20 years in prison, a period of supervised release, and a fine of $1 million. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and Daniel J. Kumor, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Deepika Bains Shukla of Ortiz’s Springfield Branch Office.
Springfield Felon Sentenced to 10 Years in Prison for Firearms and Drug ChargesRead the Press Release
BOSTON – A Springfield man was sentenced today in U.S. District Court for conspiring to illegally possess a firearm and ammunition and for conspiring to distribute cocaine.
Kevin Sligar, 30, was sentenced by U.S. District Judge Timothy S. Hillman to 10 years in prison and ten years of supervised release. In October 2014, Sligar pleaded guilty to conspiring to illegally possess a firearm and ammunition and conspiring to distribute cocaine.
From April 1, 2012 through July 21, 2012, Sligar operated a narcotics distribution operation in and around Springfield, with three co-conspirators in which they distributed at least 300 grams of cocaine and an indeterminate amount of marijuana. In connection with the operation, Sligar and a co-conspirator jointly possessed a Hi-Point Model C9, 9mm pistol, even though both had previous convictions.
During the night of July 21, 2012, Sligar and his co-conspirators were leaving the Polish Festival in Ludlow, Mass. in a Dodge Neon when they encountered another car occupied by three individuals. While both cars were stopped at a traffic light, an argument broke out between the occupants and Sligar brandished the pistol. Shortly thereafter, the other car drove away, and the occupants called 911. The Neon attempted to escape the Springfield Police by driving fast, but ultimately crashed at an intersection, injuring Sligar and his three co-conspirators. During the search of the Neon, the pistol, which was fully loaded with 9mm ammunition, was recovered.
In a related case, Sligar pleaded guilty to assault with a dangerous weapon in Hampden Superior Court.
United States Attorney Carmen M. Ortiz; Daniel J. Kumor, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Boston Field Office; and Springfield Police Commissioner William John Barbieri, made the announcement today. The case was prosecuted by Assistant U.S. Attorney Steven H. Breslow of Ortiz's Springfield Branch Office.
Psychologist and Pschotheraphy Services Owner Sentenced to over Seven Years, and Employee Sentenced to over Five Years in $1.5 Million Medicare FraudRead the Press Release
Chicago − Bryce Woods, 37, an employee of Take Action, Inc., and Inner Arts, Inc., which claimed to provide psychotherapy services to Medicare beneficiaries residing in skilled nursing homes in the Chicago area, was sentenced today by U.S. District Court Judge Virginia M. Kendall to 70 months in federal prison for submitting false claims totaling more than $1.5 million to Medicare for psychotherapy services. Codefendant Keenan R. Ferrell, 55, who was the owner and operator of Take Action, Inc., and Inner Arts, Inc., as well as a licensed psychologist in Illinois, was sentenced to 88 months in federal prison back in August 2014.
“This is an abuse of a program designed for people who need it,” remarked U.S. District Judge Kendall in imposing the sentence today. “This was an egregious fraud.” Judge Kendall also ordered both Woods and Ferrell to serve two-year terms of supervised release and to pay $1,525,496 in restitution.
Ferrell and Woods, both of Chicago, were each convicted of six counts of health care fraud at a jury trial in June 2013. The defendants were convicted of submitting false claims to Medicare for over five years. In each fraudulent claim, Ferrell and Woods represented that Ferrell had provided 45-50 minutes of one-on-one psychotherapy to patients living in skilled nursing homes, when in fact, the sessions were conducted by Woods, psychology graduate students recruited by Ferrell, or others with limited or no supervision.
Knowing that psychotherapy services were reimbursable by Medicare only when performed by an enrolled provider or when “incident to” the services of an enrolled provider, Ferrell and Woods arranged for Ferrell, who was an enrolled Medicare provider and licensed medical doctor, to authorize Inner Arts and Take Action to accept assignment of his claims to Medicare. Ferrell and Woods arranged with psychology graduate students and others to see patients at various skilled nursing facilities. Ferrell himself did not attend or otherwise participate in or supervise any therapy sessions conducted in the nursing homes. As a result, Ferrell was not physically present and immediately available when Take Action and Inner Arts therapists were in nursing homes to visit with patients. As part of the scheme, Ferrell and Woods billed Medicare for more patient visits than had actually been conducted. The defendants also billed Medicare for psychotherapy sessions that Ferrell purportedly provided to patients who in fact were deceased at the time of the purported sessions. In his sentencing arguemnt, Assistant U.S. Attorney Paul Tzur said, “Defendant Woods filed over 31,000 separate claims to Medicare, which was an out and out lie.”
The sentence was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Robert J. Holley, Special Agent-in-Charge for the Chicago Office of the Federal Bureau of Investigation; and Lamont Pugh, Special Agent-in-Charge of the Health and Human Services, Office of Inspector General.
The government is represented by Assistant U.S. Attorney Paul Tzur. The case was investigated by the FBI and the Health and Human Services, Office of Inspector General.
Owners of Floating Kodiak Strip Club Indicted by Federal Grand JuryRead the Press Release
Anchorage, Alaska – United States Attorney Karen L. Loeffler announced today that a federal grand jury returned a three-count indictment against Kimberly Christina Reidel-Byler, 46, and Darren K. Byler, 54, both residing near Kodiak, Alaska, charging them with offenses relating to the improper disposal of human waste into waters in and around Kodiak, Alaska.
According to the Indictment filed in this case, the Bylers owned and operated the Wild Alaskan, a converted 94-foot Bering Sea crabber anchored in St. Herman Harbor, Kodiak, Alaska. Between June 25, 2014, and November 30, 2014, the Wild Alaskan was a floating bar and strip club. Customers were ferried to the vessel from shore by the Gulf Coast Responder, a 35-foot landing craft.
During its operation, Kimberly Byler told the U.S. Coast Guard that human waste from the Wild Alaskan was being stored in a 5,000 gallon tank on the vessel, and then disposed of shore side by a commercial waste disposal firm. Darren Byler told the U.S. Coast Guard that waste from the Wild Alaskan was being disposed of at Pier 2, St. Herman Harbor, or that he would transport the human waste in the Gulf Coast Responder to a point three nautical miles offshore, where he would then dump it into the ocean.
The Indictment alleges that these representations to the U.S. Coast Guard were false. Indeed, waste from the Wild Alaskan was being piped from the customer and employee bathrooms directly overboard and into St. Herman Harbor. Disposal of human waste without a permit into waters within three nautical miles of shore is a violation of the Refuse Act, Title 33, United States Code, Sections 407 and 411. Making material false statements to the U.S. Coast Guard is a violation of Title 18, United States Code, Section 1001.
The case was the product of an investigation by the U.S. Coast Guard Investigative Service. Assistant United States Attorney Kyle Reardon is prosecuting the case.
Darren Byler made his initial appearance and was arraigned on February 23, 2015. Kimberly Byler is not yet in federal custody.
If convicted of violating the Refuse Act, the Bylers face not less than 30 days in jail and up to one year, a fine of $25,000 for each day the act was violated, a one-year term of supervised release, and a $25 special assessment. If convicted of making false statements, the Bylers face up to five years in prison, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment. 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. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
North Carolina Man Pleads Guilty to Fraud Charge in Real Estate SchemeRead the Press Release
St. Louis, MO – HUBOLIST ELLIOTT pled guilty to mail fraud in connection with a real estate investment scheme involving fractional interests in vacation properties.
According to court documents, between 2009 and 2014, Elliott, and his company, Travel World Vacations, Inc., offered investment opportunities in vacation properties in Florida. The investment opportunity typically involved a fractional real estate transaction which Elliott and Travel World Vacations, Inc., presented to investors as an opportunity to purchase and own a deeded interest in a specific vacation property. As part of the scheme, typically neither Elliott nor Travel World Vacations, Inc. owned any interest in the properties being offered to investors as available for a fractional real estate purchase. In some instances, the real property represented as an opportunity for investment and ownership did not exist. In other instances, the real property represented as an opportunity for investment and ownership did exist but neither Elliott nor Travel World had a legal interest, fractional or otherwise, that could be conveyed to an investor or any right to enter into a transaction regarding that property. A number of investors from around the country, including one investor from the St. Louis area, invested in Elliott’s fractional real estate scheme. Expected losses as a result of the scheme total more than $1,000,000.
Elliott, Cary, North Carolina, pled guilty to one felony count of mail fraud before United States District Judge Rodney W. Sippel. Sentencing has been set for May 29, 2015.
This charge carries a maximum penalty of 20 years in prison and/or fines up to $250,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Federal Bureau of Investigation and the U.S. Postal Inspection Service. Assistant United States Attorney Charles Birmingham is handling the case for the U.S. Attorney’s Office.
North Carolina Man Charged for Making $2.3 Million Fraudulent Claim to Deepwater Horizon Spill Compensation FundRead the Press Release
A North Carolina resident was arrested today for allegedly making a fraudulent claim on the fund set up to compensate victims of the 2010 Deepwater Horizon oil spill, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division.
Michael R. Rosella, 45, of Wilmington, North Carolina, was arrested in connection with an indictment returned last week and unsealed following his arrest. The indictment by a grand jury in the District of Columbia charges Rosella with one count of mail fraud, three counts of wire fraud and two counts of money laundering.
According to allegations in the indictment, Rosella, who lived in the District of Columbia in 2010, submitted a claim for compensation in the amount of $2.3 million to the Gulf Coast Claims Facility (GCCF), the entity that formerly handled claims for persons and businesses injured by the Deepwater Horizon oil spill. Rosella allegedly submitted the claim on behalf of a fictitious entity called the Bayou Barataria Sportsmen’s Resort, which Rosella allegedly represented to have been a successful hotel and sport fishing business in Louisiana immediately before the spill, and to have suffered lost profits due to the spill’s impact on the Gulf of Mexico. The documents submitted by Rosella allegedly included false affidavits of the Resort’s “owners,” federal tax filings, state sales tax records, financial statements, and invoices.
The charges contained in an indictment are merely accusations, and a defendant is presumed innocent unless and until proven guilty.
The case is being investigated by the U.S. Secret Service and is being prosecuted by Trial Attorney Gary A. Winters of the Criminal Division’s Fraud Section.
Rosella Indictment
Mayfield Man Pleads Guilty to Production of Child PornographyRead the Press Release
ALBANY, NEW YORK – RICHARD HASTINGS, 19, of Mayfield, NY entered a plea of guilty in Albany today to production and possession of child pornography before Chief United States District Judge Gary L. Sharpe, announced United States Attorney Richard S. Hartunian, Nicolas DiNicola, Assistant Special Agent in Charge, Homeland Security Investigations, and Captain Timothy Munro, New York State Police Troop G, Bureau of Criminal Investigation. Sentencing is set for June 3, 2015 at 10 AM.
In July 2013, RICHARD HASTINGS produced sexually explicit photographs of a minor victim and e-mailed some of these photographs to an undercover law enforcement officer in an effort to trade them for additional images of child pornography. On August 8, 2013, law enforcement officers executed a federal search warrant at the defendant’s Mayfield residence and seized his computer which contained the images of the minor victim and additional images of child pornography. As a result, he was placed under arrest. His brother, ROBERT HASTINGS, was also charged with federal child pornography offenses and is currently awaiting trial.
*The charges are merely accusations and the defendant is presumed innocent until and unless proven guilty.
RICHARD HASTINGS faces a statutory minimum of fifteen years of imprisonment, a maximum sentence of thirty years of imprisonment, and a maximum fine of $250,000. He will remain in custody until sentencing.
This case was investigated by Homeland Security Investigations and the New York State Police. The case is being prosecuted by Assistant United States Attorney Sean O’Dowd, as part of Project Safe Childhood.
Project Safe Childhood is a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Launched in May 2006 by the Department of Justice, and 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
Many Resident Sentenced to 15 Years in Prison for Distributing MethamphetamineRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced that a Many resident was sentenced last week to 188 months in prison for distributing methamphetamine in the Sabine Parish area.
Scottron Cordell Medlock, 33, of Many, La., was sentenced Friday by U.S. District Judge Elizabeth E. Foote on one count of distribution of methamphetamine. The defendant was also sentenced to four years of supervised release. According to evidence presented at the July 24, 2014 guilty plea, law enforcement agents recorded Medlock selling 24 grams of methamphetamine in Many on July 17, 2013. Video showed Medlock combining several small bags of methamphetamine into a larger one before selling the drug for $1,400.
“Methamphetamine is a dangerous narcotic,” Finley stated. “My office, along with our federal, state and local partners, will continue in their efforts to bring drug dealers to justice. These cases demonstrate the tremendous impact that collaborative investigations can have to combat methamphetamine distribution.”
The DEA and the Sabine Parish Sheriff’s Office conducted this Organized Crime Drug Enforcement Task Force (OCDETF) investigation called “Crystal Bend.” OCDETF is a joint multi-agency group consisting of federal, state, and local law enforcement agencies with a cooperative approach to combat drug trafficking.
Assistant U.S. Attorney Brandon B. Brown prosecuted the case.
MS-13 Member Extradited from Mexico on Murder, Gang ChargesRead the Press Release
SAN FRANCISCO – Defendant Jaime Balam (a/k/a “Tweety”) appeared in U.S. District Court in San Francisco today following his extradition from Mexico on a variety of gang-related charges, including racketeering conspiracy and racketeering murder, announced United States Attorney Melinda Haag and Tatum King, Acting Special Agent in Charge for U.S. Immigration and Customs Enforcement’s (ICE), Homeland Security Investigations (HSI) San Francisco.
According to court records, a federal grand jury in San Francisco indicted Jaime Balam on August 21, 2012. As alleged in the indictment, Balam, 26, a native and citizen of Mexico, was a member of La Mara Salvatrucha, or “MS-13,” a transnational criminal gang operating in various Central American countries and in numerous states across the United States. The defendant is alleged to have been a member of MS-13 who conspired to engage in the conduct of the affairs of MS-13 through a pattern of racketeering activity that included murder, attempted murder, and other acts of violence. The indictment also charges the defendant with the February 19, 2009, gang-related racketeering murder of a victim in Daly City, as well as three attempted racketeering murders arising from the same incident, and firearms-related offenses.
According to the indictment, MS-13 was a Sureño or “Southern” street gang, whose members generally were born outside the United States, claimed Southern California as their base, and acknowledged the primacy of the Mexican Mafia prison gang. The principal rivals of MS-13 in the San Francisco Bay Area were members of the area’s various Norteño or “Northern” gangs, whose members generally were born in the United States, claimed Northern California as their base, and acknowledged the primacy of the Nuestra Familia prison gang. According to the indictment, one of the principal rules of MS-13 is that its members must “hunt” – that is, attack and kill – Norteños and other rivals whenever possible. The indictment specifically alleges that all three defendants conspired to kill actual and suspected members of other gangs.
The 2012 indictment and the 2015 extradition of Balam stem from the government’s efforts, commenced in approximately 2005, to investigate and prosecute members of the MS-13 transnational gang operating in the Bay Area. Balam was arrested on October 21, 2013, in Mexico, and was subsequently ordered extradited to the United States on February 10, 2015.
“This successful extradition culminates years of outstanding investigative work by our federal law enforcement partners with Homeland Security Investigations, and illustrates the lengths to which we will go to pursue justice for victims,” stated United States Attorney Melinda Haag.
“As this case makes clear, we will not allow our borders to be barriers to bringing accused violent criminals to justice,” said Acting Special Agent in Charge Tatum King. “In addition to the tireless efforts by HSI special agents in the Bay Area and Mexico City, we also owe a tremendous debt to authorities in Mexico, whose cooperation was vital to assuring this defendant’s return. HSI will continue to work closely with its law enforcement counterparts in Mexico to assure the safety of law-abiding citizens in both nations.”
Balam is charged with the following crimes, which carry the corresponding maximum terms of imprisonment:
- Racketeering conspiracy in violation of 18 U.S.C. § 1962(d) – life in prison and a $250,000 fine;
- Conspiracy to commit murder in aid of racketeering activity in violation of 18 U.S.C. ' 1959(a)(5) – ten years in prison and a $250,000 fine;
- Conspiracy to commit assault with a dangerous weapon in aid of racketeering activity in violation of 18 U.S.C. § 1959(a)(6) – three years in prison and a $250,000 fine;
- Murder in aid of racketeering activity in violation of 18 U.S.C. ' 1959(a)(1) – life imprisonment, and a $250,000 fine;
- Attempted murder in aid of racketeering activity in violation of 18 U.S.C. § 1959(a)(5) (three counts) – 10 years in prison and a $250,000 fine;
- Carrying and using a firearm during and in relation to a crime of violence, in violation of 18 U.S.C. ' 924(c)(1)(A) – is a mandatory consecutive prison term of five years to life in prison (or seven years to life in prison if the firearm is brandished; or ten years to life in prison if the firearm is discharged), and a $250,000 fine;
- Causing death in the commission of a violation of 18 U.S.C. ' 924(c) – if the death constitutes murder as defined in 18 U.S.C. ' 1111, in violation of 18 U.S.C. § 924(j) – life in prison and a $250,000 fine;
- Being an alien unlawfully in possession of a firearm or ammunition in violation of 18 U.S.C. § 922(g)(5) – ten years in prison and a fine of $250,000.
However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. ' 3553. Please note, an indictment contains only allegations and, as with all defendants, Balam must be presumed innocent unless and until proven guilty.
Balam appeared before the Honorable Joseph C. Spero, United States Magistrate Judge, and was ordered detained pending further proceedings in front of Judge Spero tomorrow morning at 9:30 am. The case is assigned to the Honorable William H. Alsup, U.S. District Judge. The defendant was ordered to appear before Judge Alsup on March 3, 2015, at 2:00 p.m. for status conference.
Andrew M. Scoble is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Legal Tech Ponly Tu. The prosecution is the result of more than seven years’ investigation by Homeland Security Investigations, the San Francisco Police Department, and the Daly City Police Department.
Local Investment Advisor Pleads Guilty to Fraud ChargesRead the Press Release
St. Louis, MO – CHARLES WILLIAMS pled guilty to defrauding investors of their funds between on or about November 1, 2007 and January 31, 2013. The 11 individuals whose funds were invested in the C.R. Williams Investment Fund, LLC, and the C.R. Williams Tax Advantaged Investment Fund, LLC reported that they provided defendant more than $753,144. By December 28, 2012, UMB Bank records revealed that only $11,800 remained in the C.R. Williams Investment Fund, LLC account, and $54,400 in the C.R. Williams Tax Advantaged Investment Fund, LLC account.
According to court documents, on March 6, 2008, the Securities and Exchange Commission barred Williams from association with any investment adviser, and revoked the investment adviser registration of C. R. Williams, Inc. Nevertheless, Williams and his corporation continued to accept investments into C.R. Williams Investment Fund, LLC, and C.R. Williams Tax Advantaged Investment Fund, LLC, until 2012 from existing account holders. Between November 2007 and January 2013, Williams devised a scheme to defraud financial investors by promising that the funds they provided to him were maintained in the C.R. Williams Investment Fund, LLC and C.R. Williams Tax Advantaged Investment Fund, LLC. Without the authorization of the investors, Williams made multiple electronic transfers from investor accounts into his two investment funds. In order to conceal the transfers of funds from the two investment accounts into other financial accounts, Williams prepared and mailed fraudulent portfolio valuations for C.R. Williams Investment Fund, LLC and C.R. Williams Tax Advantaged Investment Fund, LLC to investors. Williams used the investors’ funds to pay for his office rental, personal expenses, mortgage and vehicle expenses, as well as to draft checks which he made payable to himself.
Williams, St. Louis, Missouri, pled guilty to one felony count of wire fraud and two felony counts of mail fraud before United States District Judge Henry Autrey. Sentencing has been set for May 26, 2015.
This case was investigated by the Federal Bureau of Investigation and the Securities and Exchange Commission. Assistant United States Attorney Tracy Berry is handling the case for the U.S. Attorney’s Office.
Each of these charges carries a maximum penalty of 20 years in prison and/or fines up to $250,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.Kentucky man sentenced on heroin, cocaine chargeRead the Press Release
HUNTINGTON, W.Va. – United States Attorney Booth Goodwin announced today that Leroy “B.K.” Wilson, 33, of Lexington, Kentucky, was sentenced to 51 months in federal prison.
In November 2014, Wilson pleaded guilty to conspiracy to distribute heroin and cocaine. He admitted that between 2010 and 2014, he conspired with others to distribute cocaine in Huntington. During that period, Wilson worked as a drug courier for Mark Silverburg transporting cocaine from Lexington to Kenneth Newman in Huntington.
On Jan. 8, 2014, Wilson traveled from Huntington to Lexington with nearly $7,000 to purchase cocaine for Newman. Silverburg placed a brown paper bag in the trunk of Wilson’s vehicle, which was opened by Newman in Huntington to reveal two plastic bags of cocaine.
Wilson also did construction work on rental property owned by George Newman, for which he was paid in cash and heroin. Newman instructed Wilson to pay those working for him in heroin.
Chief United States District Judge Robert C. Chambers imposed the sentence.
The Drug Enforcement Administration and Huntington Police Department conducted the investigation. Assistant United States Attorney Greg McVey handled the prosecution.
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Justin Ede Sentenced to 18 Months in Prison and 5 Years of Supervised Release for Possession of Child PornographyRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Justin Ede, 30, of Enosburg Falls, Vermont was sentenced to 18 months in prison, having pled guilty to one count of possessing child pornography. Senior United States District Judge William K. Sessions III, sitting in Burlington, also sentenced Ede to 5 years of supervised release.
Court records indicate that in June 2014, federal agents executed a federal search warrant for Ede=s Swanton residence. The warrant stemmed from an internet lead that suggested that someone in Ede=s residence was sharing child pornography using peer-to-peer file sharing software. During the search, Ede admitted that he had downloaded child pornography over a two-month period using file-sharing software. Child pornography images were subsequently located on Ede's computer.
Court records further show that Ede had a felony conviction in 2007 for lewd and lascivious conduct. That case involved Ede engaging in non-consensual touching of a 17-year-old female. Ede committed several violations of probation in that case, resulting in his incarceration. At the time of his federal offense, Ede was a registered sex offender as a result of the state conviction.
For his crime, Ede faced a maximum penalty of 10 years in prison, and up to a $250,000 fine. In sentencing Ede, Judge Sessions cited his prior conviction for a contact sexual offense and past violations of probation. He also commented that Ede's risk of recidivism was reduced by his stable environment, including employment and family support.
The investigation was led by the Department of Homeland Security Investigations. Assistant United States Attorney Christina E. Nolan prosecuted the case. Ede is represented by Steven Barth, Esq., of the Federal Public Defender's Office.
This prosecution was 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 and the Internet Crimes Against Children Task Force, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Jacksonville Tax Return Preparer Pleads Guilty to Tax FraudRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces that Fuada Delic (32, Jacksonville) today pleaded guilty to aiding and assisting in the filing of a false tax return. He faces a maximum penalty of three years in federal prison. As part of the plea, Delic has agreed to make full restitution to the Internal Revenue Service for the tax loss arising from the 43 counts charged against her in the original indictment.
Delic was indicted on December 19, 2013.
According to the plea agreement, Delic was the owner, operator, and sole tax preparer at Delica’s Tax Service, a company which offered tax return preparation services. On February 6, 2009, she prepared a Form 1040 on which she represented that the taxpayer had made charitable contributions in the total amount of $14,220. She also represented that the taxpayer had incurred $1,820 in education expenses for which he was entitled to an education credit of $1,510. When Delic prepared the return, she knew that the taxpayer had not made the claimed charitable contributions or incurred the claimed education expenses. Delic submitted the return to the IRS, which issued a refund in the amount of $3,323. Without the false statements, the taxpayer would have been entitled to a refund of $808. Delic was an experienced tax return preparer and knew that making such false statements on a return was against the law.
This case was investigated by the Internal Revenue Service – Criminal Investigation. It is being prosecuted by Assistant United States Attorney Arnold B. Corsmeier.
Huntington Beach Woman Sentenced to over 5 Years in Federal Prison for Embezzling Millions of Dollars from Her EmployerRead the Press Release
SANTA ANA, California – A Huntington Beach woman was sentenced today to 63 months in federal prison for embezzling nearly $3.5 million from her former employer, a warehouse and trucking-services company.
Patricia A. Francisco, 62, was sentenced today by United States District Judge Cormac J. Carney after the defendant pleaded guilty in August to four counts of wire fraud.
In addition to the prison term, Judge Carney ordered Francisco to pay $3,474,199 in restitution to her former employer, California Multimodal, LLC (CM), which is based in Long Beach.
For more than 15 years, Francisco stole money from CM, where she worked as a bookkeeper. According to court documents, Francisco used three basic means to misappropriate company funds: she stole company checks, which she made out to “cash;” she caused checks to be written to legitimate vendors, which she then stole and deposited into her bank accounts; and she created bogus expense vouchers for other employees, which allowed to obtain checks that she deposited into her own accounts. As part of her scheme, Francisco used a signature stamp belonging to her boss to sign the checks.
Francisco used the money to finance personal expenses, such as a $300,000 down payment on her house, a down payment on a condominium, a $40,000 Cadillac Escalade, approximately $100,000 worth of jewelry, and numerous trips to locations like Hawaii. Francisco told investigators that she stole the money “because she wanted a better life,” prosecutors wrote in a sentencing memorandum filed with the court that cited a simple motive for the crimes: “greed – she wanted to live a more luxurious lifestyle.”
This case was investigated by the Federal Bureau of Investigation.
Release No. 15-017
Horse Trainer Sentenced for Rigging RacesRead the Press Release
A Central Pennsylvania thoroughbred horse trainer who raced horses at Penn National Race Course in Grantville was in Dauphin County Court in Harrisburg was sentenced today to rigging races by administering drugs to horses on race day in violation of rules and regulations banning such treatment.
The United States Attorney’s Office for the Middle District of Pennsylvania and the Dauphin County District Attorney’s Office announced that David J. Wells, 50, Grantville, was sentenced today by Court of Common Pleas Judge Deborah E. Curcillo to 6 months in prison for rigging publicly exhibited contests, in this case, thoroughbred races at Penn National Race Course. Wells was sentenced to 5 years intermediate punishment with the first 6 months in prison. The first 3 months are to be served in the Dauphin County Prison followed by 3 month’s confinement in Dauphin County Prison’s secure work release center.
According to United States Attorney Peter Smith, Wells was charged in October 2014 and plead guilty in December 2014. At the guilty plea proceeding, Wells admitted that he orally or by hypodermic injection illegally administered drugs to horses he trained and raced in order to give him and his horses an advantage in the races. Wells admitted that he was fully aware that this was in violation of the criminal laws of the Commonwealth of Pennsylvania, as well as racing rules and regulations. Wells also admitted that efforts were made to conceal this activity from the public and the Racing Commission. The activity took place between 2009 and 2013.
The prosecution stemmed from an investigation conducted by the FBI, the Pennsylvania Department of Agriculture’s Racing Commission, the Pennsylvania State Police and the Dauphin County District Attorney’s Office into alleged wrongdoing in races at Penn National Race Course. As part of the investigation, Daniel Robertson, the official clocker at Penn National, was indicted in U.S. District Court on federal wire fraud charges in November 2013 and pleaded guilty on July 22, 2014.
The Wells investigation was transferred to the Dauphin County District Attorney’s Office for prosecution of the violation of state law as part of plea negotiations between Wells and the United States. Assistant United States Attorney William A. Behe was specially appointed by Dauphin County District Attorney Edward Marsico as a Special Assistant District Attorney to handle the Wells prosecution and other related prosecutions that may arise from the ongoing federal investigation.
# # #Home Health Worker Sentenced for Defrauding Elderly PatientRead the Press Release
A St. Louis, Missouri, resident was sentenced to federal prison for access device fraud and aggravated identity theft on February 20, 2015, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Melissa Charlton, originally from Valmeyer, Illinois, was sentenced to 36 months in federal prison, $5,271.69 in restitution, a $200 special assessment and three years of supervised release.
Evidence presented in Court established that Charlton exploited an 82 year old woman from O’Fallon, Ill. Charlton obtained unauthorized access to the victim’s credit cards and her checking account to obtain money and goods valued at more than $5,000. The victim attempted to stop the fraud after she discovered fraudulent credit card purchases, but Charlton also stole her replacement credit cards and misused the victim’s social security number and date of birth to activate the replacement cards. She also used the victim’s personal information to apply for an additional credit card account without the victim’s knowledge or consent.
The investigation was conducted by agents from the US Postal Inspection Service. The case was prosecuted by Assistant United States Attorney Steven D. Weinhoeft.
Frederick Financial Officer Sentenced for Stealing over $1.2 Million from an Elderly ClientRead the Press Release
Greenbelt, Maryland – U.S. District Judge Deborah K. Chasanow sentenced Travis Wetzel, age 36, of Frederick, Maryland today to 42 months in prison followed by three years of supervised release for wire fraud and money laundering in connection with a fraudulent scheme to take $1,282,224 from an elderly client’s annuity account. Judge Blake also entered an order that Wetzel forfeit and pay restitution of $1,282,224.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
Wetzel processed financial distribution documents for an investment advisory firm located in Rockville, Maryland. In 2009, Wetzel was promoted to branch operations manager. According to his plea agreement, from July 2010 to September 2012, Wetzel took advantage of his position of trust and embezzled a total of approximately $1,282,224 from an annuity account of an elderly client without the client’s knowledge, and used the money for his personal benefit. Wetzel knew that the client was elderly, whose age and physical condition facilitated repeatedly taking money from the client’s account.
Wetzel also laundered some of the money he took by transferring the money to other bank accounts he controlled.
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. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein praised the FBI for its work in the investigation and thanked Assistant United States Attorneys David Salem and Leah J. Bressack, who prosecuted the case.
Four Charged in Tax Refund Fraud and Identity Theft SchemeRead the Press Release
PANAMA CITY, FLORIDA – A federal grand jury indictment, unsealed today, charges Jermaine Winters, 38 of Coleman, Florida, Senora Cotton, 24 of Chipley, Florida, Rosetta Presley, 22 of Chipley, Florida, and Fontella Keith, 47 of Chipley, Florida, with conspiracy, wire fraud and identity theft in connection with the electronic filing of false federal income tax returns. The indictment was announced today by Pamela C. Marsh, United States Attorney for the Northern District of Florida.
The indictment alleges that, between July 2011 and July 2012, the defendants used the stolen identities of assisted-living facility residents, clinical laboratory patients, and others, in an attempt to steal more than $118,000 from the United States Treasury, through the electronic filing of fraudulent tax returns.
Keith is alleged to have stolen the personal identifying information of patients at the Dogwood Inn, an assisted-living facility in Bonifay, Florida, where Keith worked. The indictment alleges that Keith gave this information to Winters, Cotton, and Presley, who then filed the fraudulent tax returns. The defendants also are alleged to have used the personal identifying information of patients from Sun Laboratory Services, a clinical laboratory in the Tampa, Florida area, to file additional fraudulent tax returns. The defendants allegedly caused the United States Treasury to pay fraudulent income tax refunds by loading refunds onto prepaid debit cards mailed by various financial institutions to addresses in the Northern District of Florida.
The arraignment for Cotton and Keith is scheduled for Monday, February 23, 2015, at 1:30 p.m. before Magistrate Judge Larry A. Bodiford at the United States Courthouse, 30 West Government Street, Panama City, Florida. The arraignment has not been scheduled for Winters or Presley.
The indictment results from an investigation by the Internal Revenue Service – Criminal Investigation, the United States Postal Inspection Service, the Florida Department of Law Enforcement, the Chipley Police Department, and the Leon County Sheriff’s Office. The case is being prosecuted by Assistant United States Attorney Gayle Littleton.
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt in a court of law.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. The office strives to protect and serve the citizens of the Northern District of Florida through the ethical, vigorous, and impartial enforcement of the laws of the United States, to defend the national security, to improve the safety and quality of life in our communities through the protection of civil rights, and to protect the public funds and financial assets of the United States. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Former Security Contractor and Owner Agree to Pay $300,000 to Settle Civil Fraud ClaimsRead the Press Release
ALEXANDRIA, VA – Dawn Hamilton, 48, of Brownsville, Maryland, the chief executive officer and “figurehead” of a now-defunct Virginia-based security contracting firm, Security Assistance Corporation (“SAC”), has agreed to pay $300,000 to settle civil claims arising from a fraudulent scheme to establish SAC as a front company, which obtained more than $31 million in contract payments intended for disadvantaged small businesses through the Small Business Administration’s (SBA) Section 8(a) program.
As a result of her participation in the scheme, Hamilton pleaded guilty to major government fraud in U.S. v. Hamilton, which can be found on PACER by searching for case number 1:13cr75. Hamilton was sentenced to 48 months in prison and three years of supervised release. She was also ordered to forfeit approximately $1.2 million and pay a fine of $1 million.
According to court documents, in or about 2004, SAC received certification as 8(a) contractor. Prior to obtaining that status, a co-conspirator of the scheme, Keith Hedman, 53, of Arlington, Virginia, the owner of a then 8(a)-ineligible company Protection Strategies, Inc. (“PSI”), agreed with Hamilton to use her as a figurehead owner of SAC based on her Portuguese heritage and history of social disadvantage to obtain 8(a) contracting preferences. The Section 8(a) program allows qualified small businesses to receive sole-source and competitive-bid contracts set aside for minority-owned and disadvantaged small businesses.
According to court documents, to deceive the SBA, Hedman, Hamilton, and other co-conspirators from PSI falsely claimed that Hamilton formed and founded SAC and that she was the only member of SAC’s management, even though SAC was managed by Hedman and PSI senior leadership in violation of 8(a) rules and regulations. After SAC fraudulently obtained 8(a) status in 2004, it netted more than $31 million in fraudulently obtained contract payments in the ensuing years.
As part of the civil settlement, Hamilton, on behalf of herself and the now-defunct SAC, has agreed to pay $300,000 to resolve allegations under the False Claims Act, and other related statutory and common law remedies arising from the fraudulent scheme. The civil claims settled by Hamilton and SAC are allegations only; there has been no determination of civil liability.
The resolutions obtained in this matter were the result of parallel investigations by the Civil and Criminal Divisions of the U.S. Attorney’s Office for the Eastern District of Virginia, and the Civil Division of the Department of Justice. The civil matter was investigated by Assistant U.S. Attorney Peter Hyun and DOJ Trial Attorney Allison Cendali. The criminal case was prosecuted by Assistant U.S. Attorneys Chad Golder and Ryan Faulconer, a former Trial Attorney for the Criminal Division’s Fraud Section.
This case was investigated by NASA Office of the Inspector General (OIG), the SBA -OIG, DCIS-OIG, GSA-OIG, and DHS-OIG, with assistance from the Defense Contract Audit Agency.
Former Newark City Hall Employee Sentenced to Three Years' Probation for Producing Fraudulent Birth CertificatesRead the Press Release
NEWARK, N.J. – A former Newark City Hall employee was sentenced today to three years of probation for producing fraudulent New Jersey birth certificates, U.S. Attorney Paul J. Fishman announced.
Cory Cooke, 45, of Newark, previously pleaded guilty before U.S. District Judge Susan D. Wigenton to an information charging him with one count of producing false identification documents. Judge Wigenton imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Cooke was previously employed by the City of Newark at its Office of Vital Statistics and was responsible for issuing official New Jersey birth certificates. From August 2013 to October 2013, Cooke produced four fraudulent New Jersey birth certificates using four different individuals’ personal identifying information, which Cooke had acquired from a conspirator. After producing the fraudulent New Jersey birth certificates, Cooke gave the documents to his conspirator, who subsequently sold them.
As part of the sentence, Judge Wigenton ordered Cooke to spend six months at a residential re-entry center/halfway house and ordered 200 hours of community service.
U.S. Attorney Fishman credited special agents of the U.S. Department of Homeland Security, Immigration and Customs Enforcement, Homeland Security Investigations (ICE HSI), under the direction of Acting Special Agent in Charge John P. Woods in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney J. Jamari Buxton of the U.S. Attorney’s Office Criminal Division in Newark.
15-066
Defense counsel: Stephen N. Dratch Esq., Livingston, New Jersey
Former New Haven Resident Pleads Guilty to Violating Federal Sex Offender Registration and Notification ActRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that LESTER JOY, 34, pleaded guilty today in Hartford federal court to failing to register as a sex offender.
The Sex Offender Registration and Notification Act (“SORNA”), which was passed by Congress in 2006 as part of the Adam Walsh Act, provides a comprehensive set of minimum standards for sex offender registration and notification in the United States and seeks to strengthen the nationwide network of sex offender registration and notification programs. In part, SORNA requires registered sex offenders to register and keep their registration current in each jurisdiction in which they reside, work, or go to school.
According to court documents and statements made in court, on October 25, 2002, JOY was convicted in the State of New Jersey of sexual assault in the second degree, endangering the welfare of a child in the third degree and theft in the third degree. For these offenses, he was sentenced to three years of imprisonment, lifetime community supervision and was subject to lifetime registration as a sex offender. On January 4, 2006, JOY was convicted in Suffolk County, New York, of three counts of rape in the third degree, two counts of criminal sexual acts in the third degree and two counts of disseminating indecent material to a minor. For these offenses, he was sentenced to a period of 42 to 84 months of incarceration and lifetime probation.
In 2013, prior to his release from prison, JOY was informed of his registration obligations under SORNA and he signed forms stating that he understood his sex offender registration requirements in both New York and New Jersey.
On November 30, 2013, JOY was released from the Morris County, New Jersey jail following service of a sentence for violation of his lifetime term of community supervision in New Jersey. However, he did not register as a sex offender in either New Jersey or New York, and moved to Connecticut. He failed to notify New Jersey, New York and Connecticut officials of his move to Connecticut, as required.
JOY was arrested in New Haven on March 16, 2014.
JOY has been detained since his arrest. He is scheduled to be sentenced by U.S. District Judge Michael P. Shea in Hartford on May 18, 2015, at which time he faces a maximum term of imprisonment of 10 years.
This matter was investigated by the U.S. Marshals Service and is being prosecuted by Assistant U.S. Attorney Deborah R. Slater.
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(203) 821-3722 [email protected]Former Maverick County Commissioner, Former County Employee and Three Contractors Sentenced to Federal Prison in Connection with a Bribery, Kickback and Bid-Rigging SchemeRead the Press Release
In Del Rio today, a former Maverick County commissioner, a former Maverick County employee and three contractors were sentenced for their roles in a bribery, kickback and bid-rigging scheme that caused the County to lose more than $1.3 million announced Acting United States Attorney Richard L. Durbin, Jr., and FBI Special Agent in Charge Christopher Combs, San Antonio Division.
“The corruption in the cases sentenced this week works like a cancer on the body politic, eating away public confidence in local government. We will make every effort to counter its effects and hold accountable those who abuse the public trust for their personal gain,” stated Acting United States Attorney Richard L. Durbin, Jr.
“These defendants created a culture of corruption that spread throughout Maverick County, enabling theft and waste to thrive while taxpayers and honest businesses suffered,” stated FBI SAC Christopher Combs, San Antonio Division.
United States District Judge Alia Moses sentenced:
- former Maverick County Precinct 2 Commissioner Rodolfo Bainet Heredia, age 56, to ten years in federal prison followed by three years of supervised release and ordered him to perform 1,200 hours of community service after completing his prison term. Heredia was also ordered to pay a maximum $567,003.88 in restitution to Maverick County. On June 4, 2013, Heredia pleaded guilty to one count of receiving a bribe by an agent of an organization receiving federal funds. By pleading guilty, Heredia admitted that in 2010 and 2011, he manipulated the bidding process to guarantee that contractors he chose would be awarded Maverick County construction contracts. Furthermore, Heredia admitted that he instructed the private contractors to submit inflated bids to Maverick County in order to ensure the availability of sufficient funds to perform the construction work, make a profit, and also to pay him bribes;
- Alejandra Garcia, a 28-year old former Maverick County employee whose duty was to issue Maverick County checks to private contractors, to 109 months in federal prison followed by three years of supervised release and ordered her to perform 800 hours of community service after completing her prison term. Garcia was also ordered to pay a maximum $382,254.29 in restitution to Maverick County and to report to federal authorities no later than June 8, 2015, to begin serving her prison term. In January 2013, Garcia pleaded guilty to receiving numerous cash payments of $200 to $500 in bribes from contractors and commissioners in return for her issuing thousands of dollars in Maverick County checks to contractors before the funds were approved for issuance by the Maverick County auditor’s office;
- Marcelo Alvarez, a 56-year-old surveyor and consultant from Eagle Pass, to 112 months in federal prison followed by three years of supervised release and ordered to pay a maximum $1,022,303.94 restitution to Maverick County. In April 2014, Alvarez pleaded guilty to one count of paying a bribe to an agent of an organization receiving federal funds. According to court documents, between 2010 and 2012, Alvarez paid $100 to $200 on multiple occasions to Maverick County elected officials, including two county commissioners, for their support in securing county construction projects. Ultimately, Maverick County paid in excess of $800,000 to Amistad Consulting, a company to which Alvarez was connected, to perform engineering, project management and consulting services for the county. Alvarez, designated by Amistad Consulting as the Resident Project Representative, received payment for his services of approximately $300,000 between 2010 and 2012;
- Salvador Castillon, 53-year-old owner of South Texas Concrete based in Eagle Pass, to 87 months in federal prison followed by three years of supervised release. Castillon was also ordered to pay a maximum $175,804.71 in restitution to Maverick County and perform 800 hours of community service after completing his prison term. Judge Moses also ordered that Castillon report to federal authorities by June 8, 2015, to begin serving his sentence. In December 2013, Castillon pleaded guilty to one count of paying a bribe to an agent of an organization receiving federal funds. According to court records, Castillon was awarded Maverick County construction contracts totaling $416,800 in 2010 and $148,000 in 2011. Castillon admitted that during that time period, he paid then Maverick County Precinct 2 commissioner Rodolfo Bainet Heredia approximately $57,000 in return for being awarded the construction contracts; and,
- Saul Lombrana, 65-year-old owner and operator of Fiesta Contractors based in Eagle Pass, to 33 months in federal prison followed by three years of supervised release. Lombrana was also ordered to pay a maximum $14,500.00 in restitution to Maverick County and perform 300 hours of community service after completing his prison term. Judge Moses also ordered that Lombrana report to federal authorities by June 8, 2015, to begin serving his sentence. In February 2014, Lombrana pleaded guilty to one count of paying a bribe to an agent of an organization receiving federal funds. By pleading guilty, Lombrana admitted that in March 2011, he submitted a $14,500 bid to construct 155 linear feet of concrete drain swell on Rafael Street in Precinct 1. After being awarded the contract, Lombrana never constructed the concrete drain swell, but requested and received full payment for the project. Of the $14,500 he received, Lombrana admittedly only kept $5,000 while giving the rest to a Maverick County employee Jaime Flores as a bribe.
This afternoon, Judge Moses remanded Maverick County Precinct 4 Commissioner Cesar Flores into federal custody while postponing his sentencing. A new sentencing date has yet to be scheduled. On September 5, 2013, Flores pleaded guilty to one count of receiving a bribe. By pleading guilty, Flores admitted that he agreed to be influenced and rewarded for using his position to ensure that certain contractors were awarded construction contracts in Maverick County Precinct 4 in 2010 and in 2011.
To date, eight individuals have been sentenced in connection with this investigation. Hipolito Amaya, Jose Aguilar and David Gelacio have previously received sentences of 41 months incarceration, 14 months incarceration and 12 months incarceration, respectively. Nine more defendants are scheduled for sentencing tomorrow in Del Rio before Judge Moses.
This case is part of an ongoing investigation being conducted by the Federal Bureau of Investigation with assistance from Customs and Border Protection Office of Internal Affairs, Texas Department of Public Safety Criminal Investigative Division, Texas Rangers, the Drug Enforcement Administration, and the Eagle Pass ISD Police Department. Individuals who have first-hand information about corruption, fraud, or bribery related to Maverick County are urged to contact the FBI at (210) 225-6741. Assistant United States Attorneys Bryan N. Reeves, Michael Galdo and Katie Griffin prosecuted this case on behalf of the Government.
Former Fresno Police Department Detective and Fresno Marijuana Trafficker Plead Guilty to Bribery ConspiracyRead the Press Release
FRESNO, Calif. —Derik Carson Kumagai, 41, and Saykham Somphoune a/k/a, “Oat,” 41, both residents of Fresno, pleaded guilty today to conspiring to commit bribery, United States Attorney Benjamin B. Wagner announced.
According to the defendants’ plea agreements and other court documents, beginning in April of 2012, federal law enforcement was investigating a group of individuals, including defendant Somphoune and one of his associates, for suspected cultivation and distribution of marijuana. In October and November of 2013, defendant Somphuone had a series of meetings with his associate, some of which were attended by defendant Kumagai. At the time, Kumagai was a Fresno Police Department Detective. During these meetings, the associate was told that he was under federal investigation, but that in return for a bribe payment, defendant Kumagai could close the investigation and arrange to have the associate designated as a confidential informant for the Fresno Police Department. On November 6, 2013, the associate paid Kumagai approximately $20,000 cash. A few hours later, the associate signed documents for the purported purpose of becoming a confidential informant for the Fresno Police Department. The defendants were arrested in March of 2014, and the associate never actually served as a confidential informant for the Fresno Police Department.
“The defendants attempted to take advantage of the trust placed in law enforcement officers for their personal gain,” said U.S. Attorney Wagner. “Law enforcement officers who accept bribes put the public and other law enforcement officers in danger.”
“There is absolutely no room for such egregious misconduct in law enforcement,” said Special Agent in Charge Monica M. Miller of the Sacramento FBI. “Individuals who commit such crimes undermine public trust and betray the other fine officers who serve the public honestly and with the highest degree of integrity, while risking their lives daily to protect their communities.”
DEA Acting Special Agent in Charge Bruce C. Balzano stated, "The DEA will diligently work with our law enforcement counterparts to hold those accountable who tarnish the badge by engaging in criminal behavior."
"Mr. Kumagai took an oath to uphold the law and protect citizens,” said IRS Criminal Investigation Special Agent in Charge José M. Martinez. “Instead, he used his position for personal gain and betrayed the community he swore to protect. IRS-CI will continue to investigate public corruption to ensure everyone plays by the same rules—regardless of job or position.”
This case was the product of an investigation by the Federal Bureau of Investigation, the Drug Enforcement Administration, and the Internal Revenue Service, Criminal Investigation. Fresno Police Chief Jerry Dyer and the Fresno Police Department cooperated with federal law enforcement throughout the investigation. Assistant United States Attorneys Grant B. Rabenn and Kevin P. Rooney are prosecuting the case.
Kumagai and Somphoune are scheduled to be sentenced by Judge Anthony W. Ishii on May 4, 2015. Kumagai and Somphoune face a maximum statutory penalty of 5 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case is the product of the Organized Crime Drug Enforcement Task Force (OCDETF), a focused multi-agency, multi-jurisdictional task force investigating and prosecuting the most significant drug trafficking organizations throughout the United States by leveraging the combined expertise of federal, state and local law enforcement agencies.
Former Doral Employee and Contractor Indicted for Bank FraudRead the Press Release
SAN JUAN, P.R. – On Wednesday, February 18, a Federal grand jury returned a 13-count indictment charging two individuals for financial institution fraud, misapplication of bank funds, wire fraud and money laundering, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The FBI is in charge of the investigation.
Defendant Annelise I. Figueroa was an employee of Doral Bank, and Vice-President of the Property and Facilities Department. Her duties and responsibilities included supervision of the maintenance of Doral Bank’s branch offices. Figueroa did not have authority to sign or approve contracts on behalf of Doral Bank, and her approval authority to commit bank funds was approximately $5,000.00. Defendant Rolando Rivera Solis was Vice-President of San Juan Tropical, a for profit corporation that provided cleaning services to Doral Bank.
The defendants engaged in a deceptive course of conduct designed to defraud Doral Bank. Defendant Annelise Figueroa would surreptitiously change the terms of a maintenance contract with San Juan Tropical, by issuing a letter of intent which materially changed the terms of a maintenance contract with Doral Bank, by specifying that the monthly fee would, in fact, be paid on a weekly basis, thereby causing the bank to pay San Juan Tropical and its principals fees to which they were not entitled, and securing benefits for herself and other family members, from San Juan Tropical.
For example, on January 21, 2011, the defendant Annelise Figueroa, issued a letter of intent indicating that the contract fee of $27,350.00 would be paid on a monthly basis. The letter was not signed by the defendant’s supervisor or any other bank executive. On January 24, 2011, Figueroa, issued a letter of intent indicating that the contract fee of $27,288.27 would be paid on a weekly basis. The letter was not signed by the defendant’s supervisor or any other bank executive.
Defendant Annelise I. Figueroa, being an employee of Doral Bank, a financial institution whose funds are insured by the Federal Deposit Insurance Corporation, with intent to injure and defraud Doral Bank, willfully misapplied, abstracted, or purloined the sum of approximately $2,350,000.00 of the moneys, funds, or credits of such institution, in that the defendant without authority altered the material conditions of a maintenance contract with San Juan Tropical, for the purpose of causing Doral Bank to make the contractually stipulated monthly payments on a weekly basis.
As part of the manner and means of the scheme to defraud, defendant Figueroa, would pressure the Accounting Department to issue the weekly payments, and would also cause other bank employees to similarly direct the Accounting Department to issue the checks to San Juan Tropical, due to her personal relationship with defendant Rivera-Solis.
“We are committed to ensuring the integrity of the banking system and to prosecuting those who through their financial crimes undermine it for their personal gain,” stated Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. “The fraudulent schemes devised to exploit our banking system for personal gain will be investigated and prosecuted to the full extent of the law. This investigation continues.”
“We will continue to aggressively investigate fraudulent financial schemes that put in jeopardy the integrity of our financial system and are often a gateway to further criminal activity,” said Carlos Cases, Special Agent in Charge of the FBI in Puerto Rico.
If convicted, the defendants face a maximum possible sentence of 30 years on the financial institution charge, 30 years on the wire fraud charge and 10 years for the money laundering charge. Figueroa is also facing a possible sentence of 30 years on the misapplication of bank funds.
The case is being investigated by FBI and prosecuted by Assistant United States Attorney José Capó-Iriarte. Indictments are only charges and are not evidence of guilt. Defendants are presumed to be innocent unless and until proven guilty. The investigation is ongoing.
Former Deputy Indicted for Civil Rights Violations and Obstruction of JusticeRead the Press Release
Fort Myers, Florida – United States Attorney A. Lee Bentley, III announces the unsealing of an indictment charging Michael J. Ronga (43, Cape Coral) with deprivation of civil rights and obstruction of justice. If convicted, he faces a maximum penalty of 10 years in federal prison for the civil rights charge and up to 20 years in federal prison for the obstruction of justice charge.
The indictment alleges that on May 5, 2013, while working as a deputy sheriff with the Lee County Sheriff’s Office, Ronga assaulted “R.L.C.” causing bodily injury, and also took money and a cellphone from “R.L.C.” Ronga also allegedly lied to law enforcement about his interactions with “R.L.C.” on that day.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Lee County Sheriff’s Office and the Federal Bureau of Investigation. It will be prosecuted by Special Assistant United States Attorney Amira D. Fox and Chief Assistant United States Attorney Jesus M. Casas.
Former Art Gallery Employee Sentenced to Two Years for Embezzling More Than $1 MillionRead the Press Release
Orlando, Florida – U.S. District Judge Roy B. Dalton, Jr. today sentenced Jeffery Hall (48, Maitland) to two years in federal prison for mail fraud. He was also sentenced to serve three years of supervised release, and will be ordered to pay restitution in an amount to be determined at a later proceeding. Hall pleaded guilty on November 25, 2014.
According to court documents, Hall worked at a local art gallery that also had locations outside of Florida. Over a two-year period, he used his position at the gallery to embezzle more than $1 million. Hall did this by diverting proceeds from the sale of artwork to his own personal bank accounts, or to a business account that belonged to him. He also used the gallery’s artwork as loan collateral for himself and sold some of the artwork on eBay.
This case was investigated by Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Roger B. Handberg.
Five Indicted for Identity Theft Refund Fraud ConspiracyRead the Press Release
Jackson, Miss - Timothy Benjamin Taylor, 46, of Clinton; Terence Antonio Thompson, 45, of Lithonia, Georgia; Christopher Lashawn Chamberlin, 38, of Bailey; Donald Price, 40, of Jackson; and Tamia Patrice Herndon, 44, of Jackson were indicted by a federal grand jury for conspiracy to submit false claims, conspiracy to commit wire fraud, and conspiracy to commit identity theft for their roles in a scheme to submit fraudulent federal income tax returns to the IRS, announced U.S. Attorney Gregory K. Davis and Jerome R. McDuffie, Acting Special Agent in Charge, IRS - Criminal Investigation.
According to the indictment filed on January 7, 2015, the defendants obtained stolen identification information, used that information to fill out federal tax returns, submitted those returns with false wage and deduction information and attempted to receive the refunds generated by those returns.
The defendants have been arraigned by U.S. Magistrate Judge Linda Anderson and the case is set for trial before U.S. District Judge Carlton W. Reeves during the court term beginning on March 2, 2015. If convicted, the defendants each face up to ten years in prison for conspiracy to submit false claims, twenty years in prison for conspiracy to commit wire fraud, and five years in prison for conspiracy to commit identity theft. Each count of the indictment carries a maximum fine of $250,000.
Jerome R. McDuffie, Acting Special Agent in Charge, IRS - Criminal Investigation, stated, "Putting an end to tax-fraud-related identity theft is still a major investigative priority for IRS – CI. We want to protect taxpayers from being victimized by these crimes, and are working diligently to let individuals know that IRS-CI is watching and will investigate and seek prosecution in instances where identity theft crimes violate the statutes we protect."
This case was investigated by IRS - Criminal Investigation and will be prosecuted by Assistant U.S. Attorney Scott Gilbert.
The public is reminded that an indictment is a formal charge that a defendant has committed a violation of the federal criminal laws. All defendants are presumed innocent unless and until proven guilty.
Elmira Man Pleads Guilty to Producing Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y. - U.S. Attorney William J. Hochul, Jr. announced today that Shannon T. Lewis, 41 of Elmira, NY, pleaded guilty to producing child pornography before U.S. District Court Judge Charles J. Siragusa. The charge carries a mandatory minimum 15 years and a maximum penalty of 30 years in prison, a fine of up to $250,000, or both.Assistant U.S. Attorney Craig R. Gestring, who is handling the case, stated that Lewis was first identified during a sexual assault investigation being conducted by the Elmira Police Department. Police learned that the defendant harbored at risk minors who ran away from a nearby juvenile facility. While in his custody, Lewis gave the minors drugs including bath salts. Investigators learned that the defendant and another adult raped one of the minors, a 16 year old girl and that Lewis videotaped the rape. Police then contacted the Corning Resident Office of the Federal Bureau of Investigation for assistance.
During the investigation, several homemade sexually explicit videos of the child were found on the defendant’s computer. The videos showed Lewis hiding the camera in his room before bringing the child in and raping her. The defendant was also seen giving the child victim bath salts before, during, and after the rape.
Lewis was convicted of Rape in Chemung County and is presently serving a sentence of two and a half years in State Prison for that offense. Following today’s plea, the defendant was remanded to the custody of the United States Marshals Service pending his federal sentencing.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The plea is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, Corning Resident Office, and members of the Elmira Police Department, under the direction of Chief Michael Robertson.
Sentencing is scheduled for May 27, 2015, at 11:00 a.m. before Judge Siragusa.
Dickson, Tennessee Medical Practice to Pay More Than Half A Million Dollars to Settle False Claims Act AllegationsRead the Press Release
Dickson Medical Associates, P.C. (“DMA”) of Dickson, Tennessee has agreed to pay civil damages of over $500,000 to settle allegations that it violated the False Claims Act, announced David Rivera, United States Attorney for the Middle District of Tennessee. The alleged false claims involved the importation and distribution of foreign, non-FDA approved prescription drugs prohibited under the Food, Drug, and Cosmetic Act.
Specifically, the settlement resolves allegations by the United States that a doctor, through DMA and as one of its physicians and shareholders, obtained Aclasta®, a non-FDA approved version of the drug Reclast®, from foreign distributors at various times from 2008 through 2012. The doctor prescribed these drugs to patients and then, through DMA, billed for the foreign drugs as FDA-approved Reclast®, despite the fact that the foreign drugs were not intended for distribution in the United States and in some instances, the drug labels appeared in foreign languages. The drug is predominantly used to treat osteoporosis and bone damage.
“The Food, Drug and Cosmetic Act and its enacting regulations exist to ensure the safety and efficacy of prescription drugs sold within the United States,” said U.S. Attorney David Rivera. “The resolution set forth in this settlement agreement should send a clear message that this Office will diligently pursue any violations of those laws.”
This matter was investigated by the U.S. Food and Drug Administration- Office of Inspector General, the U.S. Department of Health and Human Services- Office of Inspector General, the Tennessee Bureau of Investigation, and the United States Attorney’s Office for the Middle District of Tennessee. The United States was represented by Assistant U.S. Attorney Christopher C. Sabis.
This settlement agreement is neither an admission of liability by DMA nor a concession by the United States or the State of Tennessee that the claims are not well founded.
Detroit man sentenced on heroin chargeRead the Press Release
HUNTINGTON, W.Va. – United States Attorney Booth Goodwin announced today that Anthony M. Barnes, 38, of Detroit, was sentenced to 21 months in federal prison.
In November 2014, Barnes pleaded guilty to possession of heroin with the intent to distribute. On April 8, 2014, officers with the Huntington Police Department executed a search warrant in the 900 block of 6th St. in Huntington. Barnes was there when they entered, attempting to conceal heroin by smashing it into the carpet. Officers seized around 18 grams of heroin, which Barnes admitted to possessing for distribution.
Chief United States District Judge Robert C. Chambers imposed the sentence.
The case was investigated by the Huntington Violent Crimes and Drug Task Force. Assistant United States Attorney Joseph F. Adams handled the prosecution.
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Detroit man pleads guilty to heroin chargeRead the Press Release
HUNTINGTON, W.Va. – United States Attorney Booth Goodwin announced today that Robert Lamar Payne, 31, of Detroit, pleaded guilty to possession of heroin with the intent to distribute.
Payne admitted that from 2012 to 2014, he conspired with other individuals to distribute heroin from Detroit in the Huntington area. He used an apartment in the 1000 block of 12th Avenue in Huntington to store and distribute the heroin. On Feb. 13, 2014, agents with the Huntington Violent Crimes and Drug Task Force searched the apartment, recovering around 41 grams of heroin, two firearms and $2,411 in cash.
That same day, agents also searched a room at the Super 8 Motel on 16th Street Road in Huntington. There, agents found Payne, and accomplice Derrick Goodwin, with more than 200 grams of heroin and $2,915 in cash. Payne and Derrick Goodwin stated they jointly possessed the heroin for the purpose of distribution.
Payne face up to 40 years in federal prison and a $5 million fine. He is scheduled to be sentenced on May 26, 2015.
Chief United States District Judge Robert C. Chambers presided over the plea hearing.
The case is being investigated by the Huntington Violent Crimes and Drug Task Force. Assistant United States Attorney Joseph Adams is in charge of the prosecution.
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Davenport Man Sentenced in Federal Court for Felon in Possession of a FirearmRead the Press Release
DAVENPORT, IA - On February 20, 2015, Terrell Devon Lillybridge, age 33, of Davenport, Iowa, was sentenced by United States District Court Judge Stephanie M. Rose to 46 months in prison, after pleading guilty to being a felon in possession of a firearm, announced United States Attorney Nicholas A. Klinefeldt. Lillybridge was also ordered to serve three years of supervised release following imprisonment, and to pay $100 towards the Crime Victims Fund.
On June 27, 2014, a Davenport, Iowa, Police Department officer attempted a traffic stop of a vehicle driven Terrell Devon Lillybridge. Prior to this date in 2007, Lillybridge had been convicted of a felony offense. Lillybridge did not stop in response to the officer’s visual indications to stop, and officers thereafter located Lillybridge a short distance away. After Lillybridge got out of the driver’s side of the vehicle, two officers approached him and observed Lillybridge drop a small baggie containing what was later determined to be marijuana. Officers placed Lillybridge into custody. During a pat down of Lillybridge, officers found in his right front pocket a loaded High Point 9mm handgun.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Davenport, Iowa, Police Department. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa as part of the Project Safe Neighborhood initiative.
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Davenport Man Sentenced in Federal Court for Felon in Possession of a FirearmRead the Press Release
DAVENPORT, IA - On February 20, 2015, Bradley Joseph Patton, age 46, of Davenport, Iowa, was sentenced by United States District Court Judge Stephanie M. Rose to 15 months in prison, after pleading guilty to being a felon in possession of a firearm, announced United States Attorney Nicholas A. Klinefeldt. Patton was also ordered to serve three years of supervised release following his imprisonment and to pay $100 towards the Crime Victims Fund.
On April 2, 2014, Davenport, Iowa, Police officers conducted a search warrant at a Davenport house where Patton resided. Officers found and seized four firearms out of a safe. These firearms were identified as a Bushmaster XM15-E2S rifle and loaded magazine, a Remington 1100 12 gauge shotgun, a Glock 21 .45 caliber handgun with loaded magazine, and a Taurus "the Judge" .410 gauge revolver. Patton admitted that he knowingly possessed all four of these firearms. Patton was convicted of a felony in 1991.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Davenport, Iowa, Police Department. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa as part of the Project Safe Neighborhood initiative.
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Court Imposes $1.8 Million Restitution Order Against Three Defendants in Merced County Unlawful Asbestos Abatement CaseRead the Press Release
FRESNO, Calif. —Defendants, Joseph Cuellar, age 74, a resident of Fresno, California; Patrick Bowman, age 48 of Los Banos, California; and Rudolph Buendia, age 52 of Planada, California, were ordered today to pay a total of $1,801,832.50 in restitution to 65 victims exposed to airborne asbestos as a result of defendants' unlawful asbestos abatement at Building 325 at the former Castle Air Force Base in Atwater, California, United States Attorney Benjamin B. Wagner announced. The order, which was a result of the defendants’ prior convictions for knowingly violating the asbestos work practice standards of the National Emissions Standards for Hazardous Air Pollutants, was part of a written ruling issued by United States District Judge Lawrence J. O’Neill. All three defendants previously entered guilty pleas and all had been sentenced to terms of imprisonment of between 24 and 27 months.
The 65 victims referenced in the order made claims for restitution for the costs of medical monitoring necessary for the early detection of asbestos-related illnesses that might arise as a result of their exposure to airborne asbestos caused by defendants' unlawful asbestos abatement crimes.
According to court documents, Firm Build, Inc., performed the demolition and renovation work to convert the former Castle Air Force Base's motor pool at Building 325 into an automotive mechanic training center. Bowman was Firm Build's president, Cuellar was its administrative manager, and Buendia was its construction project site manager. The prosecution stemmed from defendants' unlawful asbestos abatement during the demolition and renovation of Building 325 during September 2005 through January 31, 2006. During the renovation at Building 325, Firm Build, Inc., directed its employees and high school students from the Workplace Learning Academy to remove and dispose of asbestos containing insulation on pipe and on other facility components without utilizing proper protective equipment or taking protective measures. Bowman was also the Vice-Principal in charge of the Workplace Learning Academy.
This case is the result of an investigation by the Merced County District Attorney's Office, the San Joaquin Valley Unified Air Pollution Control District, and the United States Environmental Protection Agency.
“There is no safe level of exposure to asbestos,” said Jay Green, Special Agent-in-Charge of EPA’s criminal enforcement program in California. “By directing student workers to illegally remove demolition debris containing asbestos, knowing the students had neither the training nor the proper safety equipment, the defendants in this case exposed the students and other workers at the job site, and their respective families to dangerous and potentially deadly carcinogens, and jeopardized all of their futures. Today's sentence sends a strong message that EPA and its partner agencies will continue to protect those vulnerable to environmental crimes by vigorously prosecuting criminals who place profit ahead of public health.”
Assistant United States Attorneys Samuel Wong and Melanie Alsworth prosecuted the case.
District Judge O'Neill previously ordered Cuellar to self-surrender for service of his sentence on March 9, 2015.Corpus Christi Man Charged for Kidnapping ChildRead the Press Release
CORPUS CHRISTI, Texas – Austin Carlin, 19, of Corpus Christi, has been charged in a criminal complaint for violating the federal kidnapping act, announced U.S. Attorney Kenneth Magidson.
According to the federal criminal complaint filed this afternoon, Carlin abducted a child from her residence in the early morning hours of Feb. 22, 2015. Carlin allegedly stole a vehicle and drove out of Corpus Christi with the child. An Amber Alert was immediately disseminated in pursuit of Carlin and the child.
Authorities pulled Carlin over as he drove on Interstate 10 approximately 350 miles west of San Antonio. Law enforcement was able to arrest Carlin and successfully recover the child and return her to her family.
Carlin is in custody and expected to make his initial appearance before U.S. Magistrate Judge Jason Libby tomorrow at 2:00 p.m.
If convicted, he faces a minimum of 20 years and up to life in federal prison as well as a possible $250,000 fine.
The charges are the result of the investigative efforts of the FBI, Corpus Christi Police Department and the Texas Department of Public Safety. Assistant U.S. Attorney Hugo R. Martinez is prosecuting the case.
A criminal complaint is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Coralville Man Sentenced in Federal Court on Possession of Child Pornography ChargeRead the Press Release
DAVENPORT, IA - On February 20, 2015, Anthony Arn, age 44, formerly of Coralville, was sentenced by United States District Court Stephanie M. Jones to 45 months in prison, announced United States Attorney Nicholas A. Klinefeldt. Arn was also ordered to serve ten years of supervised release following imprisonment, and to pay $100 towards the Crime Victims Fund. Arn will also be required to register as a sex offender.
On July 19, 2011, law enforcement officers conducted a search of Arn’s Coralville residence and seized several computers and related equipment. A forensic examination of the equipment seized found 110 digital images and 4 videos of minor engaged in sexually explicit conduct. Arn pled guilty to possession of child pornography on October 6, 2014.
This case was investigated by the United States Department of Homeland Security, and the case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa as part of the Project Safe Childhood initiative.
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Concord Man Sentenced to more than Three Years in Prison for Defrauding Credit UnionRead the Press Release
A Concord Township man was sentenced to more than three years in prison for defrauding Taupa Lithuanian Credit Union out of $2.3 million, law enforcement officials said.
John Struna, 52, was sentenced to 43 months in federal prison and ordered to pay more than $2.3 million in restitution. He pleaded guilty to seven counts -- one count of conspiracy to commit bank fraud, one count of bank fraud, one count of making false statements and four counts of money laundering.
Struna has forfeited a restaurant he owned – the Sunny Street Café in Concord Township – a condominium in Florida and a 2014 Mazda because they were purchased with proceeds of the fraud, according to court documents.
The guilty plea was announced by Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland office, and Kathy Enstrom, Special Agent in Charge of the Internal Revenue Service – Criminal Investigations.
The National Credit Union Administration and the Ohio Department of Commerce took possession of Taupa last year and placed it into receivership due to its insolvency. Taupa, based in Cleveland, had about 1,150 members and assets of approximately $24 million, according to court records.
Credit union CEO Alex Spirikaitis, former teller Michael Ruksenas and Vytas Apanavicius have previously been found guilty for their roles in conspiracies related to defrauding the credit union.
Struna maintained both personal and corporate accounts at Taupa dating back to 1995. He began a conspiracy with Spirikaitis in 2002 and continued through 2013, during which time Spirikaitis caused Taupa to make approximately 46 fraudulent transfers into Struna’s accounts, according to court documents.
In 2011, Struna requested and received $112,105 from Spirikaitis for the purchase of a condominium located in Ft. Myers, Florida. At no time did Struna submit any credit applications or loan documents, according to court documents.
The fraudulent transfers totaled approximately $2.3 million. From 2002 through 2013, Struna repaid only approximately $15,000 of the $2.3 million Spirikaitis transferred into his accounts, according to court documents.
This case is being prosecuted by Assistant United States Attorney Robert J. Patton and Special Assistant United States Attorney Derek Kleinmann. The case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service.
Colombian Man Pleads Guilty to Visa Fraud Related to Drug Trafficking and Conspiracy to Possess with Intent to Distribute MarijuanaRead the Press Release
Click here for a copy Hector Diaz plea agreement
DENVER – Hector Diaz, age 50, of Colombia, pled guilty this morning before U.S. District Court Judge Robert E. Blackburn to one count of visa fraud committed in facilitation of a drug trafficking crime and one count of conspiracy to possess with intent to distribute less than 50 kilograms of marijuana, federal authorities announced. Diaz, who is free on bond, is scheduled to be sentenced on May 29, 2015 at 9:00 a.m. by the Honorable Judge Blackburn.
If convicted of visa fraud committed in facilitation of a drug crime, the defendant faces not more than 20 years in federal prison, and up to a $250,000 fine. If convicted of conspiracy to possess with intent to distribute less than 50 kilograms of marijuana, Diaz faces not more than 5 years imprisonment, and up to a $250,000 fine.
This case is being investigated by the Drug Enforcement Administration (DEA), the IRS – Criminal Investigations (IRS CI), and the U.S. Department of State, Diplomatic Security Services (DSS).
Diaz is being prosecuted by Assistant U.S. Attorneys M.J. Menendez and Bradley Giles, with assistance regarding asset forfeiture from Assistant U.S. Attorney Tonya Andrews.
Boone County man sentenced on drug chargeRead the Press Release
CHARLESTON, W.Va. – United States Attorney Booth Goodwin announced today that Terry L. Daugherty, 50, of Nellis, Boone County, West Virginia, was sentenced to 32 months in federal prison, followed by three years of supervised release.
In November 2013, Daugherty pleaded guilty to arranging the delivery of a package containing methamphetamine to resident of Chris Curry. Curry pleaded guilty to agreeing to the scheme with the reward of receiving a small amount of the drugs, and is scheduled to be sentenced in March 2015.
On March 14, 2014, the package was delivered to Curry’s residence by undercover police officers, who had intercepted it in transit. After Curry accepted the package, officers executed a search warrant for the residence and retrieved the package. Curry provided a statement detailing his involvement with Daugherty, who admitted the package was his when questioned by law enforcement.
United States District Judge Thomas E. Johnston imposed the sentence.
The case was investigated by the West Virginia State Police and Drug Enforcement Administration. Assistant United States Attorney John J. Frail handled the prosecution.
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Bergen County, New Jersey, Doctor Charged with Fraudulently Billing for Office Visits that were Never RenderedRead the Press Release
Altered Patients’ Medical Records to Conceal Scheme
NEWARK, N.J. – A family medicine physician with offices in Cresskill and Little Falls, New Jersey, was arrested this morning and charged with fraudulently billing Medicare, Medicaid and private health care insurance companies hundreds of thousands of dollars for physician office visits that were never rendered, U.S. Attorney Paul J. Fishman announced.
Albert Ades, 60, of Englewood, New Jersey, was indicted by a federal grand jury in Newark on Feb. 20, 2015, on one count of health care fraud and 35 counts of making false statements relating to health care matters. The indictment was unsealed today. Ades is scheduled to appear later today before U.S. Magistrate Judge Steven C. Mannion in Newark federal court.
According to the indictment:
Ades, a licensed family medicine doctor who owns and operates Albert Ades M.D., P.A., fraudulently billed insurers for face-to-face physician office visits. Instead, he wrote prescriptions, authorized refills, or performed other tasks, without ever seeing those patients on the billed dates. Ades altered, and instructed individuals working at his medical practice to alter, patients’ medical charts by inserting fabricated blood pressure readings, among other notations, to make it appear as if patients had visited Ades’s office on dates for which Ades had billed their insurance plans.
From 2005 through June 2014, Ades billed Medicare, Medicaid and various private payors for physician office visits with patients on dates when he, in fact, had written prescriptions, authorized refills, or performed other tasks, without ever having seen those patients on the billed dates. To conceal his scheme, Ades altered patients’ medical records to make it appear as if patients had been seen at his office, when in fact they had not been there. When one insurance plan initiated an audit after a patient reported Ades for billing prescription refills as office visits, Ades shredded original medical records and created bogus medical records to obstruct the audit. Between 2008 and 2013, at least four individuals working at Ades’s medical offices told Ades that his billing of prescriptions or refills out as office visits was illegal.
The charge of health care fraud carries a maximum penalty of up to 10 years in prison. Each of the 35 charges of making a false claim as to health care matters carries a maximum penalty of up to five years in prison. Each count in the indictment carries a maximum fine of $250,000 or twice the gross gain or loss resulting from the crime.
U.S. Attorney Fishman credited special agents of the Federal Bureau of Investigation, under the direction of Special Agent in Charge Richard M. Frankel; U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Scott J. Lampert; and investigators with the U.S. Attorney’s Office with the investigation leading to the indictment.
The government is represented by Jane H. Yoon of the U.S. Attorney’s Health Care and Government Fraud Unit.U.S. Attorney Paul J. Fishman reorganized the health care fraud practice at the New Jersey U.S. Attorney’s Office shortly after taking office, including creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered more than $635 million in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act and other statutes.
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Defense counsel: Miles Feinstein Esq., Clifton, New JerseyBelleville Man Charged with Possession of Child PornographyRead the Press Release
Michael M. Anderson, 25, of Belleville, IL, was arraigned today on a one count Indictment charging him with Possession of Prepubescent Child Pornography. The Indictment alleges that on or about September 4, 2014, Anderson knowingly possessed a digital recording which contained child pornography that involved a prepubescent minor or a minor who had not attained 12 years of age. Trial is scheduled for April 29, 2015 in front of the Honorable Nancy J. Rosenstengel. If convicted, Anderson faces a term of imprisonment of not more than twenty years, a fine of up to $250,000, and a term of supervised release of not less than five years, up to life.
An indictment is merely the method by which federal charges are lodged. A defendant is presumed innocent until proven guilty beyond a reasonable doubt.
The case was investigated by the Federal Bureau of Investigation and is assigned to Assistant United States Attorney Laura Reppert.
Bank Robber Sentenced to 188 Months ImprisonmentRead the Press Release
FRESNO, Calif. — Fausto Arthur Cruz Hernandez, 44, resident of Mexico, was sentenced today by United States District Judge Lawrence J. O'Neill to over 15 years in prison for bank robbery and for violating a previously imposed term of federal supervised release, United States Attorney Benjamin B. Wagner announced.
According to court documents, on July 22, 2014, the defendant robbed the Bank of the West at 7062 N. First Street in Fresno. The defendant presented a note to a teller that said, “I want $50,000,” and “This is a robbery.” The defendant demanded, “hundreds only.” The teller gave him the hundred dollar bills in her drawer, and he asked what else she had. She said she had nothing else and attempted to push the alarm button. The defendant saw what she was doing and said, “don’t push the button, put your hands up.” The defendant showed her what the teller recognized as a black handgun, and told all of the tellers to “get on the floor.” They did and the defendant left the bank.
Due to prior felony convictions, the defendant qualified as a career criminal, which results in enhanced penalties under federal law. In sentencing the defendant, Judge O’Neill recognized the need to protect the community from the defendant’s violent behavior.
"We are thankful for the Fresno Police Department's collaborative efforts and for the assistance that was received from the public. Together, we ensured an armed and dangerous criminal faced justice," said Supervisory Special Agent Jacqueline Neumann of the Sacramento FBI's Fresno Resident Agency. "The public is not powerless and can fight crime by providing information to identify individuals who put their communities at significant risk.”
This case was the product of an investigation by the Federal Bureau of Investigation and the Fresno Police Department. Assistant United States Attorney Kimberly A. Sanchez prosecuted the case. The case is part of the Project Safe Neighborhoods (PSN) initiative which is a coordinated effort between federal, state and local law enforcement authorities aiming to make our community safer by targeting firearm offenses.
The defendant is currently in custody and will remain there throughout the remainder of his sentence.Baltimore Man Sentenced for Embezzling over $200,000 of Social Security Benefits in A Period of 18 YearsRead the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced John Wharton, age 74, of Baltimore, late on Friday, February 20, 2015 to one year and a day in prison followed by three years of supervised release for conspiring to defraud the federal government of social security benefits, making a false statement in regard to social security benefits, and two counts of theft of government property. Judge Hollander also entered an order that Wharton forfeit and pay restitution of $172,731.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Michael McGill of the Social Security Administration (SSA) - Office of Inspector General, Philadelphia Field Division; and Special Agent in Charge Nicholas DiGiulio, Office of Investigations, Office of Inspector General of the Department of Health and Human Services.
According to evidence presented at trial, John Wharton lived with his wife Joeann Wharton, except for a few brief periods of time. John Wharton knew that Joeann applied for disability benefits with the SSA, falsely stating that she was separated from John Wharton. Based on that false claim, she was approved for disability benefits with the diagnosis of mental retardation. From May 1997 to December 2012, Joeann fraudulently received not less than $106,613 in disability benefits.
Trial evidence showed that in 1993, Joeann applied with SSA and was approved for disability benefits as a representative payee for the couple’s then-minor son. Although she was required by SSA to spend the SSI benefits for their son on his care and support, John and Joeann hid the benefits from him. From January 1996 to December 2004, Joeann unlawfully received over $36,000 in disability benefits as representative payee for their son. Although Joeann provided a written statement to SSA in which she falsely claimed that her son was living with her, the son testified at trial that he had not lived with his parents since the mid-1990’s, and he had to work two jobs to make ends meet during most of the period when his mother was collecting disability benefits on his behalf.
In late 2000, Joeann Wharton signed the couple’s son up for benefits as a disabled adult on John Wharton’s Title II record, which would entitle their son to benefits in addition to his disability benefits, if he was disabled and unable to work—which he was not. Between 2001 and 2004, Joeann received at least $15,121 in Title II benefits for their son, none of which she spent for his care or support. The son testified at trial that he was also unaware of these benefits. Prior to 2004, SSA became aware of his work activity and assessed an overpayment of $10,328 against him, which he paid to SSA despite never receiving the benefits in the first instance. He paid back the overpayment from wage and income tax refund garnishments. When he called his parents to complain, they both disclaimed any knowledge of the benefits paid in his name.
After the death of one of the Whartons’ daughters, Joeann applied and was approved to be representative payee for their two granddaughters in May 2002, who at that time were seven and nine years old. In July 2011, Joeann forged a granddaughter’s signature on a check from SSA that she then deposited into her personal account. From June 2009 to August 2012, Joeann received $50,152 in SSA survivor’s benefits as representative payee for her two granddaughters, despite the fact that both granddaughters had moved into their aunt’s house no later than June of 2009. The granddaughters testified at trial that from 2002 to 2009, their grandparents sometimes did not provide them food, and never provided clothing and school supplies. The granddaughters also testified that while living with their grandparents, they were required to spend most of their time in their room, and were not allowed to enter the office, kitchen or living room. Joeann and John Wharton concealed Joeann’s receipt of the survivor’s insurance benefits from their granddaughters, and failed to spend the benefits for their care and support as required by SSA.
Twice in August 2012, John and Joeann Wharton appeared together at an SSA office in Towson and made false statements that their granddaughters continued to reside with them. At her initial appearance and arraignment on February 22, 2013, Joeann falsely claimed to U.S. Pretrial Services that she occupied the upper floors of her home, while John Wharton lived exclusively in the basement. A subsequent search of the home revealed that the Whartons resided together in the home.
John Wharton previously pleaded guilty to theft of government property in connection with his scheme to collect a second set of Title II retirement benefits under the alias “James L Wharton,” for which he received more than $30,000 in benefits after April 2010. He received these benefits while also collecting retirement benefits under his true name and social security account number. At trial, John Wharton was convicted by the federal jury of conspiring to defraud the federal government of social security benefits, making a false statement in regard to social security benefits and a second count of theft of government property.
Joeann Wharton, age 61, of Baltimore, was convicted by the federal jury of the conspiracy, making a false statement in regard to social security benefits, social security benefit fraud, and two counts of theft of government property. Judge Hollander sentenced Joeann Wharton on February 12, 2015 to five years of probation, and entered an order that she forfeit and pay restitution of $155,783.
United States Attorney Rod J. Rosenstein praised the SSA – OIG and HHS - OIG for their work in the investigation. Mr. Rosenstein thanked Special Assistant U.S. Attorney Paul K. Nitze and Assistant United States Attorney Judson T. Mihok , who prosecuted the case.
Attorney General Holder Statement on the Departure of Anne Tompkins as the United States Attorney of the Western District of North CarolinaRead the Press Release
Attorney General Eric Holder released the following statement on the departure of U.S. Attorney Anne Tompkins:
“As United States Attorney for the Western District of North Carolina, Anne Tompkins has pursued the cause of justice with passion, with integrity, and with results,” said Attorney General Holder. “In her outstanding work on matters involving health care and financial fraud, she helped safeguard the well-being of the American people and bring wrongdoers to justice. Through her service on the Attorney General’s Advisory Committee, she proved herself to be an indispensable advisor on a range of vital issues. And with her efforts to protect civil rights and combat human trafficking, she stood up for innumerable men, women, and children who are too frequently overlooked and too often underserved. Over the course of her extraordinary career, Anne has never lost sight of the most vulnerable in her own community, and has spearheaded trailblazing projects to engage young people in the work of building a more just society, from anti-bullying efforts to leadership development. Through her work at all levels, she has served as an inspiring example to public servants throughout the country – including me. And while I will miss her distinguished leadership and wise counsel, I look forward to all that she will achieve in the next stage of her already remarkable career.”
Anderson Woman Pleads Guilty to Fraud Involving Tax Refund ChecksRead the Press Release
Contact Person: Bill Watkins (864) 282-2100
Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that Helen Jean Anderson, age 57, of Anderson, South Carolina, pled guilty today in federal court in Greenville, to conspiracy to commit mail fraud, a violation of Title 18, United States Code, Section 1349. Senior United States District Henry M. Herlong, Jr. of Greenville accepted the plea and will impose sentence after he has reviewed the presentence report which will be prepared by the U.S. Probation Office.
The evidence at the change of plea hearing established that Anderson and various co-conspirators would obtain the means of identification of other individuals and then file fraudulent tax returns. Once the Treasury checks arrived, the co-conspirators sought ways to negotiate the checks. An eye-witness at a convenience store in the upstate told law enforcement that Helen Anderson had recently been in the store and claimed to have 200 Treasury checks to cash and said that she would pay $500 per check to cash them. The eye-witness contacted the police.
On August 6, 2013, a confidential informant working with United States Postal Inspectors was wired for audio and video and met with Helen Anderson. Anderson gave the informant multiple Treasury checks to cash. Anderson instructed the informant to bring her the money from the cashing of the checks within 2 days. She told the informant that she might have more Treasury checks available to cash once the informant returned the money to her.
In order to hide her ties to the Treasury checks, Anderson paid co-conspirators to allow her to use their addresses so checks and other tax documents would be sent to those addresses and would not obviously be associated with Anderson.
Law enforcement estimates that Anderson and her co-conspirators negotiated $483,294.40 in Treasury checks derived from fraudulent returns.
Mr. Nettles stated the maximum penalty Anderson can receive is a fine of $250,000 and/or imprisonment for 20 years, plus a special assessment of $100.
The case was investigated by agents of the Internal Revenue Service, the United States Postal Inspection Service, and the Anderson County Sheriff’s Office. Assistant United States Attorney Bill Watkins of the Greenville office handled the case.#####