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11 February 2015
Anthony, N.M., Man Sentenced to Almost Eleven Years for Violating Federal Firearms and Narcotics LawsRead the Press Release
ALBUQUERQUE – Abel Romero, 31, of Anthony, N.M., was sentenced today in federal court in Las Cruces, N.M., to 131 months in prison followed by three years of supervised release for violating the federal firearms and narcotics laws. Romero was sentenced based on a guilty plea entered on Dec. 5, 2013.
Romero and co-defendants, Jaime Cano, 31, of El Paso, Texas, and Victor Cano, 31, of Anthony, N.M., were arrested in May 2013, on a criminal complaint charging them with drug trafficking and firearms offenses. The three co-defendants subsequently were indicted on Aug. 14, 2013, in a ten-count indictment. Counts 1, 2 and 3 charged Romero, Victor Cano and Jaime Cano with conspiracy to distribute cocaine and distribution of cocaine in Doña Ana County, N.M., between Feb. 5, 2013 and Feb. 19, 2013.
The remaining seven counts of the indictment charged Romero with violating the federal narcotics and firearms laws. Counts 5, 7 and 9 charged Romero with distributing cocaine on three occasions between Feb. 11, 2013 and Feb. 19, 2013. Counts 6, 8 and 10 charged Romero with being a felon in possession of firearms and ammunition on four dates in Feb. 2013. At the time, Romero was prohibited from possessing firearms or ammunition because he previously had been convicted of aggravated assault, distribution of marijuana, and aggravated assault with a deadly weapon.
According to court filings, Romero sold ounce quantities of cocaine and firearms and ammunition to an individual working with law enforcement on four separate dates in Feb. 2013. Romero obtained the cocaine with the help of Victor Cano and Jaime Cano.
Romero pled guilty to all ten counts of the indictment on Dec. 5, 2013. In entering the guilty plea, Romero admitted that from Feb. 5, 2013 through Feb. 19, 2013, he obtained quantities of cocaine from a source of supply and sold the cocaine to another person. Romero admitted receiving and selling an aggregate of 154.5 grams of cocaine to the buyer during this time period. Romero also admitted that during this time he unlawfully possessed a number of firearms and ammunition knowing that as a result of his prior felony conviction of aggravated assault with a deadly weapon he could not lawfully possess firearms.
On Nov. 7, 2013, Jaime Cano and Victor Cano each pled guilty to Counts 2 and 3 of the indictment. Each admitted to conspiring with the other to distribute quantities of cocaine to Romero. Victor Cano was sentenced on Mar. 6, 2014, to 37 months in federal prison followed by three years of supervised release. Jaime Cano was sentenced on June 4, 2014, to 40 months in federal prison followed by three years of supervised release.
This case was investigated by the Las Cruces office of the FBI and was prosecuted by Assistant U.S. Attorneys Sarah M. Davenport and Shaheen P. Torgoley of the U.S. Attorney’s Las Cruces Branch Office.
Alleged Head of Atlanta-Based Investment Fraud Scheme ArraignedRead the Press Release
ATLANTA - Andrew Avery has been arraigned on federal charges of wire fraud and mail fraud stemming from an alleged investment fraud scheme. He was indicted by a federal grand jury on October 7, 2014. Avery fled the country, but was extradited from Thailand and arrested on January 26, 2015. He is currently in federal custody.
“This defendant is charged with taking advantage of unknowing investors, stealing millions of dollars with false promises and misrepresentations about the profitability of purported Real Estate Investment Notes sold by New Day Atlanta Financial,” said Acting United States Attorney John Horn.
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “The FBI fully understands that investment fraud in not a victimless crime and it is hoped that the indictment, apprehension and return to the U.S. of Mr. Avery will illustrate that to the many victims in this case.”
According to Acting United States Attorney Horn, the charges, and other information presented in court: From April 2007 through May 2010, the defendant allegedly operated a company called New Day Atlanta Financial (NDA). Avery represented to potential investors that NDA sold “Real Estate Investment Notes,” or REINs, in a fund of “premium real estate investments” called “the Magnolia Fund.”
According to NDA’s website and prospectus, the REINs were promissory notes that would mature after a one- to five-year period, earning the investors up to 13% interest. The term “REIN” was invented by Avery, and a REIN is not an investment vehicle actually used by financial institutions. The Magnolia Fund was a purported $6 million dollar portfolio of Atlanta, Ga., properties that would be profitable through rental income, lease purchase income, or future sales.
Avery allegedly concealed the fact that NDA’s properties were worth far less than $6 million dollars. In addition, Avery used investor funds to purchase businesses in his own name, and for his own personal expenses. Over the course of NDA’s operation, over 70 investors lost over $3 million as a result of Avery’s misrepresentations.
In May 2010, the United States Securities and Exchange Commission filed a civil lawsuit in the Northern District of Georgia to shut down NDA. Shortly after being deposed by the SEC in connection with the lawsuit, Avery left the United States for Thailand. He was extradited from Thailand and arrested on January 26, 2015, and is currently in federal custody. Andrew Avery, 39, was arraigned before United States Magistrate Judge Gerrilyn G. Brill.
Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Federal Bureau of Investigation.
Assistant United States Attorney Shanya J. Dingle is prosecuting the case.
This 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.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Adams Man Pleads Guilty to Tobacco TraffickingRead the Press Release
BOSTON – An Adams man pleaded guilty in U.S. District Court in Springfield yesterday in a conspiracy to traffic in contraband tobacco.
Hasmit Kharbanda, 34, pleaded guilty to conspiracy and three counts of trafficking in contraband smokeless tobacco. In October 2014, Kharbanda and two others were charged in an Information. Kharbanda’s sentencing is scheduled for July 21, 2015 before U.S. District Judge Mark G. Mastroianni.
Kharbanda, two co-defendants, and others, worked together to avoid paying “thousands of dollars in” large sums of excise taxes on smokeless tobacco and cigars they sold from warehouses in Springfield, Mass. and Danbury, Conn. Co-defendants Jugjeev Kharbanda and Jaspal Singh pleaded guilty in January 2015 and October 2014 and are scheduled to be sentenced on June 25, 2015 and April 21, 2015, respectively.
United States Attorney Carmen M. Ortiz; Daniel J. Kumor, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Bruce M. Foucart, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. The case is being prosecuted by Assistant U.S. Attorneys Alex J. Grant of Ortiz’s Springfield Branch Unit and Veronica M. Lei of Ortiz’s Asset Forfeiture Unit.
10 February 2015
Woman Sentenced to Twenty-One Months Imprisonment for International Parental Kidnapping and Passport FraudRead the Press Release
Contact Person: Nathan Williams (843) 727-4381
Columbia, South Carolina ----United States Attorney Bill Nettles stated today that Dorothy Lee Barnett, a/k/a Alexandria Maria Canton, a/k/a Alexandria Maria Geldenhuys, age 53, of Queensland, Australia, formerly of Isle of Palms, South Carolina, pled guilty to one count of International Parental Kidnapping and two counts of False Statement in a Passport Application. Sentencing occurred immediately after the guilty plea, where Barnett was sentenced to twenty-one months imprisonment, to be followed by two years supervised release.
Facts at the plea hearing established that Barnett removed her infant child from the United States in 1994, obstructing the parental rights of the child’s father. Prior to fleeing the United States, Barnett assumed a false identity, which she maintained until the time of her arrest. Barnett was able to obtain a false passport, using the false identity, which she utilized to flee the United States. The false statements she made in order to obtain and renew the passport were the basis for her two passport fraud convictions. Barnett was located by FBI agents in early 2012, and extradited to the United States in September, 2014.
Barnett’s plea was heard, and sentence was imposed, by United States District Court Judge Richard M. Gergel. The International Parental Kidnapping count carried up to three years imprisonment under 18 U.S.C. § 1204 and each of the False Statement charges carried up to ten years imprisonment under 18 U.S.C. § 1542.
The convictions are the result of an investigation conducted by the Federal Bureau of Investigation, United States Department of State and the Australian Federal Police. Assistant United States Attorney Nathan Williams of the Charleston office prosecuted the case. The Department of Justice’s Office of International Affairs provided significant assistance.Winnebago Resident Sentenced for Social Security Fraud and Theft from A Tribal CasinoRead the Press Release
United States Attorney Deborah R. Gilg announced that Susan Marr, age 39, of Winnebago, Nebraska, was sentenced for her convictions in two separate cases. In the first case, Marr was convicted of knowingly stealing funds from the Social Security Administration. In the second case, Marr was convicted of stealing funds from an Indian tribal organization. On February 9, 2015, Chief United States District Court Judge Laurie Smith Camp sentenced Marr to 5 years’ probation. While on probation, Marr will have to perform 200 hours of community service and pay $38,171.64 in restitution to the Social Security Administration.. No restitution was ordered in the second case as Marr had made restitution prior to sentencing.
Marr is the mother of a disabled child and served as his representative payee. In July of 2007, she applied for Supplemental Security Income benefits for her son. SSI benefits were awarded based upon information provided by Marr in the application, and benefits were paid through October 19, 2012. However, the Social Security Administration discovered that Marr had failed to list all of her household income and resources and that she subsequently failed to advise the Social Security Administration of her marriage and the related income and resources of her husband. The Social Security Administration determined that Marr’s household resources always exceeded the allowable amount such that her son would not have been entitled to any of the $38,171.64 in SSI benefits that were paid.
Marr had been employed as the Manager of the Lucky 77 Casino in Walthill, Nebraska, on the Omaha Indian Reservation. That casino is owned by the Omaha Tribe of Nebraska. She was terminated from her position when the first Indictment was returned. The casino paid Marr all of her wages and vacation pay at the time of her termination. However, Marr subsequently gained access to the payroll system under the guise of showing a new employee how to process payroll and caused three additional checks to be issued to herself to which she was not entitled. The checks were in the amounts of $2,078.86 , $931.54 and $1,639.80. Marr was able to cash the first two of those unauthorized checks before the Omaha Tribe learned that they had been improperly issued.
These cases were investigated by the Federal Bureau of Investigation and the Social Security Administration Office of Inspector General.
Waterbury Man Admits Role in Massive Stolen Identity Tax Refund SchemeRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JULIO LARA TRINIDAD, 28, of Waterbury, pleaded guilty today in New Haven federal court to federal offenses stemming from a stolen identity tax refund fraud scheme that the government believes resulted in a loss of more than $7.5 million from the U.S. Treasury.
According to court documents and statements made in court, this matter stems from an investigation into individuals who, through various means, obtained fraudulent U.S. Treasury tax refund checks using stolen identities. After obtaining the checks, individuals sold them for less than face value of the checks, or deposited them into bank accounts that had been opened using fraudulent identifying documents. The funds were then quickly withdrawn from the bank accounts.
In 2011, TRINIDAD was arrested in New Jersey for stealing U.S. Treasury tax refund checks from mailboxes. He pleaded guilty to a related charge in the District of New Jersey in January 2012. An arrest warrant was issued for TRINIDAD after he failed to appear for his sentencing in May 2012. TRINIDAD was arrested on November 23, 2013, and subsequently was charged by indictment in the District of Connecticut.
The government alleges that in June 2012, while he was a fugitive from justice, TRINIDAD opened a checking account in the name of an identity theft victim. Between December 2012 and February 2013, the checking account was used to purchase six licenses for a brand of tax preparation software. According to the government, these licenses were used to file more than 60,000 federal income tax returns, seeking more than $234 million in federal tax refunds intended to be issued to TRINIDAD and his co-conspirators. Nearly $6.8 million in fraudulent refunds were issued before the scheme was identified.
The government further alleges that TRINIDAD and individuals he recruited used additional stolen identities to open other bank accounts into which hundreds of thousands of dollars in fraudulently-obtained tax refunds were deposited. TRINIDAD’s co-defendant, Jerry De Los Santos Rodriguez, has admitted that he and TRINIDAD opened bank accounts using fraudulent identities. In addition, between July and October 2013, TRINIDAD and Ramon Mena sold more than $60,000 in fraudulently-obtained U.S. Treasury checks to an individual working with law enforcement. TRINIDAD and Mena received some of these checks from Pricilla Brito and Yowandy DeLeon.
TRINIDAD pleaded guilty to one count of theft of public money, which carries a maximum term of imprisonment of 10 years, and one count of aggravated identity theft, which carries a mandatory consecutive sentence of two years of imprisonment. He is scheduled to be sentenced by Senior U.S. District Judge Ellen Bree Burns on May 5, 2015.
TRINIDAD has been detained since his arrest.
De Los Santos Rodriguez, Mena, Brito and DeLeon previously pleaded guilty.
This matter is being investigated by the United States Postal Inspection Service, the Internal Revenue Service – Criminal Investigation Division, the United States Secret Service and Homeland Security Investigations, with the assistance of the Danbury and Darien Police Departments. The case is being prosecuted by Assistant U.S. Attorney Sarala V. Nagala.
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(203) 821-3722 [email protected]Warren Businessman Pleads Guilty to FraudRead the Press Release
A Macomb County business owner pleaded guilty yesterday to intentionally setting a fire at his commercial laundry facility to collect on an insurance policy, U.S. Attorney Barbara L. McQuade announced today.
McQuade was joined in the announcement by Steven Bogdalek, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearm, and Explosives (ATF).
Alexandros Yfantidis, 74, of Clinton Township, admitted in court that on May 4, 2011, he intentionally burned down the building housing his commercial laundry service, which he operated as Best Textile Services. In pleading guilty to one count of mail fraud, Yfantidis admitted making a fraudulent claim to his insurance company in relation to fire. His agreement with the government calls for restitution to reimburse victims whose homes and/or personal properties were damaged by the fire explosion.
U.S. District Judge Stephen J. Murphy, III, set Yfantidis’s sentencing for June 5.
“Committing any fraud scheme harms victims, but intentionally setting a fire creates a danger to public safety that far exceeds the financial loss,” McQuade said. McQuade thanked the agents of ATF for their investigation of the case. She also thanked the Warren Fire Department for assisting in the investigation. The case is being prosecuted by Assistant U.S. Attorney Abed Hammoud.
“As we know arson for profit crimes have many victims. Mr. Yfantidis chose to break the law for his personal gain by putting community and fire fighters at significant risk”, said ATF Special Agent in Charge Steven Bogdalek. “I would like to thank the ATF Special Agents, the Warren Fire Department and the United States Attorney’s office for their hard work and dedication in this investigation.”
For information concerning restitution potential victims are encouraged to contact the U.S. Attorney’s Office Victim Witness Coordinator at (313) 226-9633 or Tiesha Johnson of the Bureau of Alcohol, Tobacco, Firearms and Explosives at (313) 202-3400.Victor Verdin-Reyes Sentenced to 216 Months on Cocaine Conspiracy ChargesRead the Press Release
GREENEVILLE, Tenn. – Victor Verdin-Reyes, 49, of Johnson City, Tenn., was sentenced on Feb. 10, 2015, by the Honorable R. Leon Jordan, U.S. District Court Judge, to a federal prison term of 216 months, for his leadership role in a cocaine conspiracy centered in and around the Johnson City area.
According to the plea agreement signed and filed with the U.S. District Court Clerk’s Office, Verdin-Reyes stipulated that he conspired to distribute between 5 to 15 kilograms of cocaine in the Eastern District of Tennessee and elsewhere. Verdin-Reyes admitted that he had been selling cocaine since approximately the year 2000. He sold cocaine at his residence in Johnson City, Tenn., and also maintained a “stash house” located in Johnson City. Verdin and/or his wife, Ericka Jean Verdin, 45, of Johnson City, Tenn., sold various quantities of cocaine to an individual working on behalf of law enforcement on approximately 10 separate occasions during the period of the investigation. Ericka Jean Verdin is currently scheduled to be sentenced in the same case on Mar. 12, 2015.
On Feb. 9, 2014, law enforcement officers arrested Verdin-Reyes and his cocaine source of supply, Esteban Delgado Camacho, 48, of Weaverville, N.C., as they were conducting a drug deal involving a quarter kilogram of cocaine at the stash house maintained by Verdin-Reyes in Johnson City, Tenn.
A subsequent search warrant executed at the primary residence of Verdin-Reyes resulted in the seizure of an additional ounce of cocaine, digital scales, cutting agents, money order and Western Union receipts, $37,500.00 in U.S. currency and a .9mm handgun with a loaded magazine.
Another search warrant executed at Camacho’s residence in North Carolina resulted in the seizure of another approximate quarter kilogram of cocaine, an approximate ounce of crack cocaine, multiple firearms, digital scales, and over $41,000 in U.S. currency. Camacho was previously sentenced to serve 121 months for his role as the source of supply for Verdin-Reyes and for possessing firearms in furtherance of his cocaine trafficking.
Law enforcement agencies participating in the investigation which led to the indictment and subsequent conviction of Verdin-Reyes include the Tennessee Bureau of Investigation, Johnson City Police Department, First District Drug Task Force, Department of Homeland Security Investigations, Bureau of Alcohol, Tobacco, Firearms and Explosives, Washington County Sheriff’s Office, and Drug Enforcement Administration (in Tennessee and North Carolina). Assistant U.S. Attorney Wayne Taylor represented the United States.
Van Zandt County Convicted Felon Sentenced for Federal Firearms ViolationRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas - A 44-year-old Wills Point, Texas, man has been sentenced to federal prison for federal firearms violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Terry Dewayne Monk pleaded guilty on Sep. 16, 2014, to being a felon in possession of a firearm and was sentenced to 71 months in federal prison today by U.S. District Judge Leonard Davis.
According to information presented in court, on Mar. 14, 2014, Monk was stopped by a on a rural county road in Van Zandt County by sheriff’s deputy for an outstanding warrant. During the traffic stop, officers discovered the vehicle did not belong to Monk, but to a nearby resident. Officers went to the home and talked to the vehicle’s owner who advised them that Monk had been staying at her home for the about a week and that she had seen him with a sawed-off shotgun. The home-owner gave permission to search the residence. During the search, officers located the sawed-off shotgun which had an obliterated serial number. Further investigation revealed Monk was a convicted felon having been found guilty of aggravated assault with a deadly weapon in 1990 in Tarrant County, Texas. Convicted felons are prohibited by federal law from owning or possessing firearms or ammunition. Monk was indicted by a federal grand jury on May 28, 2014.
This case was prosecuted as part of Project Safe Neighborhoods, aimed at reducing gun and gang violence, deterring illegal possession of guns, ammunition and body armor, and improving the safety of residents in the Eastern District of Texas. Participants in the initiative include community members and organizations as well as federal, state and local law enforcement agencies.
This case was investigated by the Van Zandt County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms, and Explosives and prosecuted by Assistant U.S. Attorney Jim Noble.
U.S. Justice Department and North Carolina Attorney General Reach Settlement to Resolve Allegations of Auto Lending Discrimination by "Buy Here, Pay Here" Used-Car DealershipsRead the Press Release
Settlement Requires Substantial Improvements to Dealerships’ Policies and Provides $225,000 in Relief to Affected Customers
The U.S. Department of Justice Civil Rights Division, the U.S. Attorney’s Office for the Western District of North Carolina and the North Carolina Department of Justice today announced a settlement of the federal government’s first-ever discrimination lawsuit involving “buy here, pay here” auto lending. The settlement, which is subject to court approval, was filed today in the U.S. District Court for the Western District of North Carolina.
The settlement resolves a lawsuit, filed in January 2014 by the Department of Justice and the State of North Carolina, alleging that Auto Fare Inc. and Southeastern Auto Corp., two “buy here, pay here” used-car dealerships in Charlotte, North Carolina, and their owner – violated the federal Equal Credit Opportunity Act by engaging in a pattern or practice of “reverse redlining” by intentionally targeting African-American customers for unfair and predatory credit practices in the financing of used car purchases. The state of North Carolina also alleged that the dealerships’ actions violated the state’s Unfair and Deceptive Trade Practices Act. The settlement came after the court denied the dealerships’ motion to dismiss the case and agreed that reverse redlining by an auto lender is illegal discrimination.
“It is not only illegal, but also fundamentally wrong, to target borrowers of color for predatory loans and exploit their need for a car to do essential tasks such as getting to work,” said Acting Assistant Attorney General Vanita Gupta of the Civil Rights Division. “Combating discrimination in all segments of the auto lending market is, and will remain, a top priority for the Civil Rights Division. I am pleased that these dealerships have agreed to reform problematic lending and servicing practices and adopt policies that promote responsible lending. I hope that other buy here, pay here dealerships will evaluate their practices in light of this settlement.”
The settlement requires the dealerships to implement a number of specific practices to ensure that the terms of their loans and repossession practices are no longer unfair and predatory. The required changes include: limiting projected monthly payments to no more than 25% of a borrower’s income; requiring interest rates to be at least five percentage points below the state’s rate cap; mandating a lower interest rate for borrowers who have specified evidence of lower credit risk; requiring competitive sales prices; prohibiting hidden fees on top of the required down payment; prohibiting repossessions until at least two consecutive missed payments; providing down payment refunds to borrowers who quickly go into default; requiring strict compliance with provisions of state repossession law enacted to protected consumers; providing borrowers improved disclosures at the time of sale (including disclosing the presence of any GPS, or automatic shut off, device); allowing borrowers to obtain an independent inspection of the car before completing the purchase; and providing borrowers improved notices before repossession.
“All consumers deserve to be treated fairly when they buy a car,” said North Carolina Attorney General Roy Cooper. “We hope this case sends a strong message that car dealers cannot use race when targeting buyers with overpriced cars and oppressive loans.”
The settlement also requires defendants to establish a $225,000 settlement fund to compensate victims of their past discriminatory and predatory lending.
“Predatory lending practices that lock consumers into contracts they cannot afford are illegal and can spell financial disaster for borrowers of lower income or challenged credit history,” said U.S. Attorney Anne M. Tompkins of the Western District of North Carolina. “Today’s settlement ensures that all customers of Auto Fare Inc. and Southeastern Auto Corp. will have equal access to credit regardless of their race.”
The lawsuit alleged that the two dealerships’ sales prices, down payments, and interest rates were disproportionately high compared to other subprime used-car dealers. Because the dealerships did not meaningfully assess the customers’ creditworthiness or ability to repay, their rates of default and repossession were disproportionately high. Additionally, the dealerships engaged in repossessions when customers were not in default.
The U.S. Department of Justice’s enforcement of fair lending laws is conducted by the Fair Lending Unit of the Housing and Civil Enforcement Section in the Civil Right Division. Since the Fair Lending Unit was established in February 2010, it has filed or resolved 36 lending matters under the Fair Housing Act, Housing Equal Credit Opportunity Act (ECOA) and the Servicemembers Civil Relief Act. The settlements in these matters provide for over $1.2 billion in monetary relief for impacted communities and individual borrowers. The Attorney General’s annual reports to Congress on ECOA highlight the department’s accomplishments in fair lending and are available at www.justice.gov/crt/publications.
The Civil Rights Division and other agencies involved in this matter are members of the Financial Fraud Enforcement Task Force. President Obama established this task force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes. For more information on the task force, visit www.StopFraud.gov.
The settlement provides for an independent party to contact victims and distribute payments of compensation at no cost to borrowers whom the United States Department of Justice and the North Carolina Department of Justice identify as victims of defendants’ conduct. Former customers who are eligible for compensation from the settlement will be contacted by mail later this year. Individuals who believe that they may have been victims of illegal conduct by Auto Fare or Southeast Auto and have questions about the settlement may contact the United States Department of Justice and the North Carolina Department of Justice by calling 1-800-896-7743, mailbox 92, or emailing [email protected].
A copy of the proposed order and other documents related to this lawsuit, as well as additional information about fair lending enforcement by the United States Department of Justice, can be obtained from the United States Department of Justice website at www.justice.gov/fairhousing.
U. S. Attorney Timothy Q. Purdon to Step downRead the Press Release
Purdon’s term as U.S. Attorney highlighted by commitment to improving public safety in Indian country
Bismarck, North Dakota – Timothy Q. Purdon announced today that he will step down as the United States Attorney for the District of North Dakota on March 12, 2015, after serving more than four and a half years in office. Mr. Purdon has informed President Obama and Attorney General Eric Holder of his decision. First Assistant United States Attorney Chris Myers will become Acting United States Attorney for the District of North Dakota on March 13, 2015.
"Serving as United States Attorney for the District of North Dakota is the greatest honor and privilege a lawyer could ever have," United States Attorney Purdon said today. "In reflecting on all we have accomplished over the past four and half years, I am deeply grateful to President Obama and Attorney General Holder for the opportunity they have given me to serve the people of North Dakota. I leave with a deep respect for the skill and dedication of the career prosecutors, attorneys, and staff at the North Dakota United States Attorney’s Office and at the Department to Justice. I am proud of our successes over the past few years, and I am confident they will continue under the skilled leadership of Acting United States Attorney Chris Myers."
"Tim Purdon has been an outstanding United States Attorney, a fierce advocate for the people of North Dakota, and a strong national leader whose efforts to improve public safety in Indian Country have made a profound difference – and touched countless lives," said United States Attorney General Eric Holder. "Throughout his tenure, Tim has distinguished himself as a skilled attorney and a consummate public servant, rising to challenges as diverse as human trafficking, violent crime, drug trafficking, and fraud. His work to forge close partnerships with tribal leaders – and to develop and implement an Anti-Violence Strategy for Indian Country – have provided a model for success, increased federal prosecutions on North Dakota’s reservations, and laid a strong foundation on which future efforts can be built. His exceptional leadership and wise counsel at the national level – advising me and other Justice Department officials as Chair of the Native American Issues Subcommittee – have had an important and enduring impact. And although we are all sorry to see him go, I am proud to join Tim’s dedicated colleagues in thanking him for his exemplary service as United States Attorney, and wishing him all the best as he begins a new chapter in his career."
Mr. Purdon’s signature initiative as U.S. Attorney was the 2011 implementation of the Office’s Anti-Violence Strategy for Indian Country in North Dakota. The Anti-Violence Strategy dedicated much-needed additional resources to the fight to improve public safety on North Dakota’s Indian reservations. The core of the Anti-Violence Strategy involved a creative effort to put Assistant United States Attorneys on the reservations on a regular basis to forge ties with the tribal communities they serve. The Strategy also included new support for crime prevention and reentry programs to complement the U.S. Attorney’s Office’s renewed commitment to the vigorous enforcement of federal laws in reservation communities. Under the Anti-Violence Strategy, prosecutions of federal crimes committed on the reservations in North Dakota have increased markedly since 2009. On June 27, 2011, the editorial page of the Fargo Forum awarded "Prairie Roses" to the U.S. Attorney’s Office for the creation of the Anti-Violence Strategy. The editorial noted that Mr. Purdon was "delivering on [his] pledge" to "increase attention to reservation crime." The Forum wrote that Mr. Purdon "understands that solving entrenched problems must include building trust and relationships in addition to enforcement" and hailed the Anti-Violence Strategy as "a good start." Forum Editorial: Sheriff’s Otters Win Roses, The Forum, June, 27 2011.
U.S. Attorney Purdon also established an annual Tribal Consultation Conference between the Office and the Tribes in North Dakota. On March 16, 2011, the U.S. Attorney’s Office hosted the first such Conference. The editorial page of the Bismarck Tribune wrote that the event "confirmed Purdon’s passion and seriousness about trying to make a difference for those less fortunate, for the voices of so many that have been muted for years" and praised the Conference as "eclips[ing] other outreach efforts" in the recent past.State’s Largest Minority has Huge Impact, Bismarck Tribune, March 20, 2011. To date, four such Conferences have been held, and each has dramatically improved communication between the Office and the Tribes.
"My four and a half years as U.S. Attorney have been in the pursuit of one unbending belief: we can make the reservations in North Dakota safer," United States Attorney Purdon said today. "I have had many, many partners in this effort, but none have been more important to me than the Assistant U.S. Attorney’s and staff in my Office who come to work every day and fight to reach the goal of reducing violent crime on the reservations. These men and women are remarkable public servants, and the reservations are safer today because of their work."
Mr. Purdon’s efforts to improve public safety on American Indian reservations have made him a national leader within the Department of Justice on this issue. In 2013, Mr. Purdon was appointed by Attorney General Eric Holder to serve as the Chair of the Department Of Justice’s Native America Issues Subcommittee ("NAIS"). The NAIS is made up of 30 U.S. Attorneys from across the United States whose Districts contain Indian Country and it is responsible for making policy recommendations to the Attorney General regarding public safety and legal issues that impact tribal communities. In February of 2014, in his capacity as Chair of NAIS, Tim testified before the United States Senate Committee on Indian Affairs on behalf of the Department.
Mr. Purdon’s creative approach to improving public safety in Indian County brought the top leadership of the Department of Justice to North Dakota during his tenure to observe first-hand the steps being taken to improve public safety in Indian Country. Attorney General Eric Holder spoke at the Tribal Consultation Conference in Bismarck in June of 2014. The Justice Department’s second-in-command, Deputy Attorney General James Cole, spoke at the April 2012 Tribal Consultation Conference and visited the Standing Rock Sioux Reservation. Associate Attorney General Tony West, the number three official at Justice, visited North Dakota and spoke with tribal members in both December 2013 and April 2014. In addition, Mr. Purdon hosted a meeting of the NAIS in Bismarck in September 2012, which drew 20 U.S. Attorneys from around the country to North Dakota. In addition to a daylong consultation with tribal leaders form North Dakota and South Dakota, the group attended and was recognized at the United Tribes Technical College Pow Wow.
Mr. Purdon has also led the charge by federal, state, local, and tribal law enforcement to counter the new and violent threat from drug trafficking organizations that have targeted western North Dakota’s Bakken Oil Patch in recent years. "Our hometowns in the Bakken are developing some big city crime problems." U.S. Attorney Purdon said today. "The U.S. Attorney’s Office has led the way in fighting back to preserve our North Dakota way of life and to ensure that our hometowns remain places where people cannot only work, but also raise a family." In a series of meetings and strategy sessions in the spring of 2012, Mr. Purdon and his law enforcement partners planned a robust federal law enforcement response to the growing threats in the Bakken. The execution of this response over the last three years has included securing assignment of a record number of federal agents and prosecutors working in the Bakken region. Mr. Purdon’s leadership and commitment to protecting the citizens of western North Dakota resulted in specific investigation successes such as: Operation Winter’s End on the Fort Berthold Reservation, a joint operation between federal, state, and tribal partners that dismantled a large-scale heroin trafficking ring in the Oil Patch; the dismantling of "The Family," a violent drug trafficking cell in Williston; Operation Pipe Cleaner in Dickinson, a joint operation that took down a large drug trafficking ring in Dickinson, North Dakota; and a more than 150% increase in the number of defendants charged by the U.S. Attorney’s Office in western North Dakota.
Finally, Mr. Purdon has led North Dakota’s response to the growing threat of human trafficking in the state. In late 2013, the U.S. Attorney’s Office—working with state and federal law enforcement partners—executed Operation Vigilant Guardian stings in Williston and Dickinson, North Dakota. The arrests of 14 defendants who had sought to arrange commercial sex with underage girls revealed a previously unknown level of demand for underage commercial sex in western North Dakota. In response, Mr. Purdon has led the Office’s ongoing efforts to address this issue by raising the profile of the human trafficking issue in the law enforcement community, pursuing federal prosecutions of traffickers themselves, arranging training for law enforcement and prosecutors, and assisting in the creation of a state-wide network of victim service providers to support the growing number of victims of human trafficking. "The U.S. Attorney’s Office’s efforts to combat the growing threat of human trafficking in North Dakota are one of my proudest achievements," said Purdon. "The progress we have made since the Operation Vigilant Guardian stings were conducted in November of 2013 is real and substantial. There is always more to do, but we are moving toward a sustainable strategy to fight this horrible crime."
In 2014, Tim was appointed by Attorney General Eric Holder to a seat on the Attorney General’s Advisory Committee ("AGAC"). The AGAC advises the Attorney General on criminal justice matters and serves as the voice of the United States Attorney community in setting Department of Justice policies. The members of the AGAC meet regularly with the Attorney General and other top Department of Justice officials in Washington, DC. "My time on AGAC gave me an opportunity to provide important input into national policy issues faced by Attorney General Holder and the Department of Justice and to highlight North Dakota issues like Indian Country and the increasing organized crime threat in the Bakken Oil Patch at the highest levels of the Department," United States Attorney Purdon observed.
While serving as United States Attorney, Mr. Purdon supervised the office’s most impactful litigation. Notable case during Mr. Purdon’s tenure, in addition to those discussed above, include the prosecution of Valentino Bagola for the murders of two children on the Spirit Lake Reservation; the Operation Stolen Youth investigation into drug trafficking organization that distributed the synthetic drug that lead to two overdose deaths in the Grand Forks, North Dakota area – an investigation which won the Office’s first Department of Justice Organized Crime and Drug Enforcement Task Force National Award; the million dollar international mail fraud prosecution of Adekunle Adetiloye; the first-in-the-nation civil case under Jenna (North)’s Act against Extradition Transport of America, LLC to recoup costs incurred by local governments in the search for an escaped prisoner near Valley City, North Dakota; Operation Prairie Thunder, a coordinated law enforcement response to drug trafficking on the Standing Rock Reservation; the investigation and prosecution of Safe Drinking Water Act violations that occurred at the Halek 5-22 produced water disposal well near Dickinson, North Dakota; the Project Safe Childhood prosecution of Darrien Anderson who had used Facebook to target underage girls in the Red River Valley for sex; and the J-LOT prosecutions of dozens of individuals, from both the Unites States and Jamaica, for their involvement in a Jamaican Lottery Scam that targeted North Dakotans.
In addition to his leadership of the Office and management duties, Purdon also participated directly in numerous criminal cases, including personally briefing and arguing several criminal appeals before the United States Court of Appeals for the Eighth Circuit.
Mr. Purdon was unanimously confirmed by the United States Senate as the 18th United States Attorney for the District of North Dakota on August 5, 2010. He is a graduate of the North Dakota State College of Science, Minnesota State University – Moorhead, and the Hamline University School of Law and has practiced law in North Dakota since 1995.
Following his resignation, Mr. Purdon will return to private practice in Bismarck, North Dakota where he will establish a new North Dakota office for a national law firm.
Two Plead Guilty in Bank Fraud Scheme at Zapata National BankRead the Press Release
LAREDO, Texas - Petra Del Bosque, 54, and Anita Arredondo, 53, both of Zapata, have both been convicted of embezzling money in a long-running bank fraud scheme targeting Zapata National Bank (ZNB), announced United States Attorney Kenneth Magidson. Arredondo entered her plea this morning, while Del Bosque previously pleaded last month.
Del Bosque is a former employee of Zapata National Bank (ZNB), while Arredondo worked for a Zapata-based construction company as a clerk in the accounts payable department and had responsibility for issuing company checks.
For two years, Arredondo issued numerous false company checks made payable to contractors who had not performed the work that was the alleged basis for the checks.
Arredondo admitted to endorsing the false checks by forging the signatures of the contractors and then delivering the checks to Del Bosque at ZNB. Del Bosque led ZNB bank tellers to believe she was cashing the checks on behalf of the contractors who were unable to come to the bank themselves and that she would deliver the funds from the cashed checks. However, she actually pocketed the money and split the proceeds of the fraud with Arredondo.
Both have admitted that the loss as a result of the scheme totals more than $800,000.
U.S. District Judge Marina Garcia Marmolejo accepted the pleas and has set sentencing for April 28, 2015. At that time, each faces up to 30 years in federal prison and a possible $1 million fine.
The FBI investigated. Assistant U.S. Attorneys Robert S. Johnson and Sanjeev Bhasker are prosecuting the case.
Two Pensacola Men Sentenced to Federal Prison for Tax Refund Fraud and Identity Theft SchemeRead the Press Release
PENSACOLA, FLORIDA – Andrey C. Cook, 34, and Richard J. Beverly II, 25, both of Pensacola, were sentenced to federal prison today by United States Senior District Court Judge Lacey Collier on charges of mail fraud and aggravated identity theft. The sentence was announced today by Pamela C. Marsh, United States Attorney for the Northern District of Florida.
Cook, who worked in a group home for disabled patients, stole the personal identification information of the patients and gave it to Beverly in August 2013 for use in filing fraudulent tax returns. In exchange, Beverly agreed to give Cook a percentage of the refunds that were issued as a result of the fraudulent tax returns. Between 2012 and 2014, Beverly used the stolen identities of deceased persons, severely disabled people, and others, in an attempt to steal more than $265,000 from the United States Treasury, through the filing of at least 40 fraudulent tax returns.
Cook was sentenced to 12 months in prison and Beverly was sentenced to 102 months in prison. Beverly was also ordered to pay $87,783.00 in restitution to the Internal Revenue Service. Cook was ordered to pay $10,682.00 in restitution.
This case resulted from an investigation by the Internal Revenue Service-Criminal Investigation and was prosecuted by Assistant United States Attorney Alicia Kim.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. The office strives to protect and serve the citizens of the Northern District of Florida through the ethical, vigorous, and impartial enforcement of the laws of the United States, to defend the national security, to improve the safety and quality of life in our communities through the protection of civil rights, and to protect the public funds and financial assets of the United States. To access available public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Two Individuals Indicted in February Federal Grand JuryRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office announced today the results of the February 2015 Federal Grand Jury.
“The following named individuals have been charged with a federal crime or crimes by the return of an indictment by the Grand Jury. A grand jury Indictment does not constitute evidence of guilt. A grand jury Indictment is a method of bringing formal charges against the defendant. A defendant is presumed innocent of the charges and may not be found guilty unless evidence establishes guilt beyond a reasonable doubt. Statutory maximum punishments are in parentheses. United States Sentencing Guidelines may be considered, upon conviction, by the sentencing court. Federal prison sentences are non-parolable.”
TORY DERREL LARKINS, age 30, of Lithia, GA
Possession Of Counterfeit SecuritiesPossession And Utterance Of A Counterfeit Security
The Indictment alleges that on or about October 8, 2014, and October 9, 2014, within the Eastern District of Oklahoma, defendant herein, knowingly possessed, uttered and caused to be uttered counterfeit checks purported to be genuine checks of MTW Creations, LLC, drawn on an account at Bank of America, an organization which operates in interstate commerce, with intent to deceive another.
The charges arose from an investigation by the Oklahoma Highway Patrol and the United States Secret Service. The charges are in violation of Title 18, United States Code, Section 513(a), punishable not more than 10 years imprisonment; up to a $250,000.00 fine or both.
Assistant United States Attorney Rob Wallace
MARNITA CAROL PARKER, age 48, of Ravia, OKa/k/a MARNITA CAROL FOSTER
Theft Of Government FundsMaking A False Statement
The Indictment alleges that on or about October 16, 2009, and continuing until on or about May 1, 2014, within the Eastern District of Oklahoma, the defendant did knowingly and willfully embezzle, steal, and purloin money of the Department of Veterans Affairs, a department or agency of the United States, namely, Department of Veterans Affairs Dependency and Indemnity Compensation payments to which she knew she was not entitled, in the excess of $1000.00.
It is further alleged that on or about September 20, 2013, in the Eastern District of Oklahoma, the Defendant did knowingly and willfully make and cause to be made a materially false, fictitious, and fraudulent statement and representation in a matter within the jurisdiction of the Department of Veterans Affairs, an agency of the United States, in that on a Department of Veterans Affairs form known as “Marital Status Questionnaire” MARNITA CAROL FOSTER a/k/a Marnita Carol Parker completed the form and signed the form with her mother’s name, when in truth and fact, as defendant well knew, her mother was deceased.
The charges arose from an investigation by the Department of Veterans Affairs, Office of Inspector General. The charges are in violation of Title 18, United States Code, Section 641, punishable by not more than 10 years imprisonment; up to a $250,000.00 fine and Title 18, United States Code, Section 1001(a)(2), punishable by not more than 5 years imprisonment; up to a $250,000.00 fine or both.
Assistant United States Attorney Rob Wallace
Three Colorado Springs Residents Sentenced to Federal Prison for Conspiracy to Defraud the Irs and Related Tax Charges Following Jury TrialRead the Press Release
DENVER – George Brokaw, age 68, John Pawelski, age 66, and Mimi Vigil, age 63, all from Colorado Springs, Colorado, were sentenced today by U.S. District Court Judge Christine M. Arguello for conspiracy to defraud the IRS and related tax charges, federal law enforcement authorities announced. The three defendants failed to appear at their original sentencing hearing. Judge Arguello then issued a bench warrant for all three defendants, which resulted in Deputy U.S. Marshals locating and arresting the defendants. Today, Brokaw was sentenced to serve 78 months in federal prison, followed by 3 years on supervised release. Pawelski was sentenced to serve 78 months in federal prison, followed by 3 years on supervised release. Both defendants were also ordered to pay a $15,000 fine. Vigil was sentenced to serve 72 months in federal prison, followed by 3 years on supervised release. She was also ordered to serve 200 hours of community service. At the conclusion of the hearing, Judge Arguello ordered all three defendants to remain in federal custody.
All three defendants were indicted by a federal grand jury in Denver on May 22, 2013, which was followed by a superseding indictment on October 21, 2013. They were convicted, following a 5-day jury trial on November 7, 2014. The jury deliberated for an hour and a half before reaching their verdicts. They were sentenced on February 10, 2015.According to the superseding indictment, and evidence presented at trial, beginning in October 2008, and continuing through May 2009, Brokaw, Pawelski, Vigil, and others conspired with each other to defraud the United States by submitting false claims for income tax refunds to the Internal Revenue Service.
The three filed or caused to be filed false, fictitious and fraudulent Form 1040 tax returns containing false claims for refunds in their names. A total of twelve fraudulent returns were filed attempting to receive over twenty-four million dollars in fraudulent refunds. In connection with these false tax returns they submitted or caused to be submitted false Forms 1099-OID. The 1099-OID forms falsely reported that financial institutions, lenders, or other entities had withheld and paid over to the IRS interest income from accounts which did not generate such interest income and from which no such withholdings were made. The Form 1040 tax returns claimed false refunds based on these false claims of withholdings.
Furthermore, from March 2008 and continuing through April 2012, the defendants willfully conspired with each other to obstruct and impede the due administration of the Internal Revenue laws by attempting to thwart the legitimate collection of taxes owed to the IRS by them and others. They caused to be filed or submitted to the IRS a variety of false, fraudulent, or illegitimate documents which purported to constitute payments of taxes owed to the IRS as well as purported electronic funds transfer (EFT) drawn on closed bank accounts. In addition, the defendants filed a variety of false and fraudulent liens or other documents which falsely claimed that IRS employees, who were engaged in legitimate tax collection efforts against one or more of the defendants, owed one or more of the defendants amounts of money ranging from tens of millions of dollars to billions of dollars.
All three defendants face statutory maximum sentences ranging from not more than 3 years to not more than 10 years, plus up to a $250,000 fine, per count of conviction.
“It is everyone’s responsibility, their obligation, to cooperate with the IRS and their collection of taxes,” said U.S. Attorney John Walsh. “In this case, the defendants not only refused to pay their taxes, they also impeded the IRS and ignored a court order by failing to appear at the originally scheduled sentencing. Today’s prison sentence demonstrates the serious penalties one faces when interfering with the lawful collection of taxes.”
“IRS – Criminal Investigations is working vigorously to stop abusive tax schemes that unfairly shift the tax burden to honest American taxpayers,” said Stephen Boyd, Special Agent in Charge for IRS Criminal Investigation, Denver Field Office. “As our tax season gears up, this sentencing reinforces our commitment to every taxpayer that we will identify and prosecute those who try to defraud the tax system and evade paying their fair share of taxes.”
“The prison sentences handed down today reflect the serious nature of interfering with the lawful collection of taxes,” said Preston C. Lamb, Special Agent in Charge of the Treasury Inspector General for Tax Administration (TIGTA). “Hopefully this prosecution will deter those who think they can avoid or work around our tax system.”
This case was investigated by Internal Revenue Service – Criminal Investigation (IRS CI), and Treasury Inspector General for Tax Administration (TIGTA). The case was prosecuted by Assistant U.S. Attorneys Mathew Kirsch and Martha Paluch.Three Brandon, Mississippi, Men Sentenced for Their Roles in the Racially Motivated Assault and Murder of an African-American ManRead the Press Release
Victim Died After Being Run Over by Truck
The Justice Department announced today that Deryl Paul Dedmon, 22, John Aaron Rice, 21, and Dylan Wade Butler, 23, all of Brandon, Mississippi, were sentenced today in U.S. District Court in Jackson for their roles in federal hate crime charges in connection with an assault culminating in the death of James Craig Anderson, an African-American man, in the summer of 2011. Dedmon, Rice and Butler each previously pleaded guilty to one count of conspiracy and one count of violating the Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act for their roles in the death-resulting assault of Anderson, 47, of Jackson, Mississippi. Dedmon was sentenced to 600 months; Rice was sentenced to 220 months; and Butler was sentenced to 84 months.
“The defendants targeted African-American people they perceived as vulnerable for heinous and violent assaults – hate crimes, motivated solely by race, that shook an entire community and claimed the life of an innocent man,” said Attorney General Eric Holder. “These sentences bring a fitting end to the case against these three men. Although nothing can erase the grievous harms inflicted, or ease the grief of the victim’s friends and loved ones, this outcome holds those responsible for these horrific crimes fully to account. And it illustrates the Justice Department’s steadfast commitment to combating hate crimes, supporting victims, and seeing that justice is done – in every case and circumstance.”
“This case demonstrates that the Department of Justice will vigorously pursue those who commit racially motivated assaults and will cast a broad net to ensure that all who commit such acts are brought to justice,” said Acting Assistant Attorney General Vanita Gupta of the Civil Rights Division. “These sentences are just the first three of ten in what we hope will help provide some closure to the victim’s family and to the larger community affected by Mr. Anderson’s death.”
“Hate crimes not only injure the victims and their families, but intimidate entire communities,” said U.S. Attorney Gregory K. Davis of the Southern District of Mississippi. “The sentences imposed today send a clear message to the community that this office, in partnership with department’s Civil Rights Division, will prioritize and aggressively prosecute hate crimes and other civil rights violations in Southern Mississippi.”
“The guilty pleas and resulting sentences handed down today are the result of the tremendous efforts by men and women in law enforcement who worked on this case,” said Special Agent in Charge Donald Alway of the FBI in Mississippi. “The FBI takes very seriously its responsibility to protect the civil rights of all Americans, and remains committed to its pursuit of justice for anyone who is deprived of those rights."
In prior court hearings, the defendants had admitted that beginning in the spring of 2011, they and others conspired with one another to harass and assault African Americans in and around Jackson. On numerous occasions, the co-conspirators used dangerous weapons, including beer bottles, sling shots and motor vehicles, to cause, and attempt to cause, bodily injury to African Americans. They would specifically target African Americans they believed to be homeless or under the influence of alcohol because they believed that such individuals would be less likely to report an assault. The co-conspirators would often boast about these racially motivated assaults. The defendants further admitted that on June 25, 2011, they and others attended a birthday party in Puckett, Mississippi, for a mutual friend. During the party, the defendants and others talked about going to Jackson to harass and assault African Americans.
By the early morning hours of June 26, 2011, the defendants and four other co-conspirators agreed to carry out their plan to find, harass and assault African Americans. At around 4:15 a.m., Rice, Butler and two co-conspirators drove to west Jackson in a white Jeep with the understanding that Dedmon and two other co-conspirators would join them a short time later. Rice, Butler and the other two occupants of the Jeep then drove around west Jackson and threw beer bottles from the moving vehicle at African American pedestrians they encountered.
At approximately 5:00 a.m., Rice, Butler and the other two occupants of the Jeep spotted Anderson in a motel parking lot off Ellis Avenue. The occupants of the Jeep decided that Anderson would be a good target for an assault because he was African-American and appeared to be intoxicated. Rice and another co-conspirator decided to get out of the Jeep to distract Anderson while they waited for Dedmon and the other co-conspirators to arrive. After Dedmon and the other two co-conspirators arrived in Dedmon’s Ford F250 truck, Dedmon and Rice physically assaulted Anderson. Rice first punched Anderson in the face with sufficient force to knock Anderson to the ground, and then Dedmon punched Anderson in the face multiple times while he was on the ground. After the assault, Rice, Butler and two co-conspirators left the motel parking lot in the Jeep. As they left, one of the occupants of the Jeep yelled, “White Power!” Prior to getting back into his truck, Dedmon responded by also yelling “White Power!”
Once back in his truck, Dedmon deliberately used his truck to run over Anderson, causing injuries which resulted in Anderson’s death. After Anderson’s death, a number of the co-conspirators including Rice and Butler agreed to, and did, give false statements to law enforcement officials about the nature of their interactions with Anderson.
Seven other defendants involved in related cases, William Kirk Montgomery, 25, of Puckett, Mississippi, Sarah Adelia Graves, 21, of Crystal Springs, Mississippi, Shelby Brooke Richards, 21, of Pearl, Mississippi, John Louis Blalack, 20, Jonathan Kyle Gaskamp, 22, Robert Henry Rice, 24, and Joseph Paul Dominick, 23, all of Brandon, Mississippi, are awaiting sentencing.
This case was the result of a cooperative effort among the Justice Department’s Civil Rights Division, the U.S. Attorney’s Office for the Southern District of Mississippi and the Hinds County, Mississippi, District Attorney’s Office. This case was investigated by the Jackson Division of the FBI and the Jackson Police Department. It is being prosecuted by Trial Attorney Sheldon L. Beer and Deputy Chief Paige M. Fitzgerald of the Civil Rights Division of the Department of Justice, and Glenda R. Haynes of the U.S. Attorney’s Office for the Southern District of Mississippi.
Suburban Attorney Sentenced to 70 Months for Stealing $2.34 Million in Clients’ FundsRead the Press Release
Chicago --- A suburban real estate attorney and radio talk show host was sentenced today to 70 months imprisonment for stealing approximately $2.34 million from her clients. The defendant, KATHLEEN NIEW, 59, of Burr Ridge, was also ordered to pay restitution of $2.34 million to the victims of her fraud and forfeit assets related to the crime. “The sentence must promote respect for the law . . . something has to be done when a case like this comes up.” U.S. District Court Judge Harry Leinenweber said in imposing the sentence. Judge Leinenweber also ordered three years of supervised release, and Niew is to report to the Federal Bureau of Prisons on April 14, 2015.
Niew operated Niew Legal Partners, LLC, in Oak Brook. She was charged with 10 counts of wire fraud by a federal grand jury in August 2013 and pled in June 2014 to all counts of the indictment. She was disbarred in 2013.
According to court records, the victims, a husband and wife, who were Niew’s clients, transferred approximately $2.34 million into Niew’s attorney escrow account to be used for closings on commercial real estate transactions. Niew used the funds for her own benefit, contrary to the false representations she made to the couple. Without the victims’ knowledge, Niew used their funds to finance the purchases of various gold mining operations and not to purchase any commercial property for the victims as originally intended. Further, as part of the fraud scheme, Niew arranged to receive a 20 percent finder’s fee for herself from mining operation investments in exchange for providing approximately $1.5 million in funds that belonged to her clients.
At the sentencing hearing today, Judge Leinenweber also found Niew responsible for defrauding another client out of $500,000. Niew falsely told that victim that she needed to borrow $500,000 to help buy assets in her upcoming divorce proceeding. Niew, however, was not divorcing her husband, and she sent the victim’s funds to one of the same investment operations where she had sent previous victims’ money.
“Niew blatantly stole $2.8 million of her clients’ money, and then lied to cover up the scam. When confronted and caught, Niew undertook acts that can only be described as shocking for an attorney licensed by the bar – creating false cover-up documents, lying to her clients, and lying under oath (once again) to the ARDC,” argued Assistant United States Attorney Sunil Harjani in the government’s sentencing memorandum.
The sentence was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Robert J. Holley, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorneys Sunil Harjani and Andrew Boutros.
Stuttgart Man Charged with Arson in Courthouse Annex FireRead the Press Release
LITTLE ROCK – Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas and Grover Crossland, Resident Agent in Charge for the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) announced the unsealing of a two-count Indictment on Monday, February 9, 2015, charging Donald Aaron, age 45 of Stuttgart, with arson in the destruction of the Stuttgart Courthouse Annex, which housed the Arkansas County Sheriff’s office, among numerous other government agencies.
The ATF took a lead role in investigating a fire on September 23, 2014, that took place in the Stuttgart Courthouse Annex Building on 312 South College. This building housed the Arkansas County Sheriff’s Office, offices of the Arkansas State Police, the 911 coordinator, the Office of Emergency Management, the Arkansas County Tax Assessor and County Tax Collector, the County Judge and the Emergency Operations Center. The ATF investigation determined the fire to be incendiary, or intentionally set.
“This fire essentially destroyed millions of tax-payer dollars and put the lives of people in the area at risk when the 911 operations were not operational,” stated Thyer. “Thankfully, 911 operations were able to be rerouted and the services were able to relocate and continue serving the citizens of the Stuttgart area. I’m grateful for the diligent work of the ATF investigators who were able to determine, not only the cause, but also the alleged perpetrator of this crime.”
For a period of time 911 operations were interrupted. Ultimately, the building had to be demolished with estimated damage of $2.5-$3 million. During suppression and clean-up efforts following the fire, a Stuttgart city employee was injured in a construction equipment accident.
Aaron was arrested Monday morning in Stuttgart and appeared before United States Magistrate Judge J. Thomas Ray Monday afternoon. He was remanded to the custody of the U.S. Marshals pending trial. If convicted, Aaron will face a statutory minimum sentence of seven years’ imprisonment on each count.
The investigation was conducted by the ATF, with assistance from several law enforcement agencies including the Stuttgart Police Department, Stuttgart Fire Department, Arkansas County Sheriff’s Office, Arkansas County Prosecuting Attorney’s Office, Arkansas County Office of Emergency Management, and Arkansas Community Correction. The case is being prosecuted by Assistant United States Attorney Chris Givens.
An indictment contains only allegations. A defendant is presumed innocent unless and until proven guilty.
St. Joseph Man Sentenced to 17 Years, Among 10 St. Joseph Residents Sentenced for Drug TraffickingRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that 10 St. Joseph, Mo., residents have been sentenced in federal court for their roles in a drug-trafficking conspiracy.
Operation Family Feud was a partnership between the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the St. Joseph, Mo., Police Department, the Buchanan County, Mo., Sheriff’s Department and the Buchanan County Drug Strike Force. Numerous firearms and various quantities of crack cocaine, powder cocaine and marijuana were seized or purchased during the investigation.
Terrance A. Johnson, also known as “Skurge,” 34, of St. Joseph, was sentenced by U.S. District Judge Dean Whipple today to 15 years in federal prison without parole. Johnson was sentenced to an additional two years in prison for violating his supervised release in a separate and unrelated case, for a total sentence of 17 years in federal prison without parole.
Johnson was the source of cocaine and crack cocaine for the conspiracy. Johnson is among 16 defendants who have pleaded guilty to participating in a conspiracy to distribute 280 grams or more of crack cocaine and five kilograms or more of powder cocaine between Jan. 1, 2009, and Oct. 17, 2012. An additional co-defendant has pleaded guilty to a related drug-trafficking charge.
Johnson pleaded guilty to being a felon in possession of a firearm in 2006 and was sentenced to three years and one month in federal prison. Following his incarceration for that conviction, he was serving a three-year term of supervised release while he was involved in the drug-trafficking conspiracy. His supervised release was revoked today.
Also sentenced today to 10 years in federal prison were Anthony M. Busey, also known as “Bew” or “AB,” 36, Dejuan Ford, also known as “Lil Doe,” 23, and Ramon W. Ford, also known as “R-Lo,” 25, all of St. Joseph. Anthony A. Wilson, also known as “Tone Loc,” 28, of St. Joseph, was sentenced today to two years and three months in prison.
Five co-defendants were sentenced on Monday, Feb. 9, 2015. Keyon R. Wilkinson, also known as “Key” or “Lovey,” 23, of St. Joseph, was sentenced to five years and 10 months in federal prison without parole. Wilkinson was identified in court documents as a member of a St. Joseph street gang, the “17th Street Zillas.” A confidential informant bought crack cocaine from Wilkinson approximately 150 times over the course of the conspiracy.
Also sentenced yesterday were St. Joseph residents Donald J. Greer, also known as “DJ,” 34, to five years in federal prison, Dareal S. Green, also known as “DG,” 27, to seven years and three months in prison, and Duran Hughes, also known as “Bozey,” 29, to eight years in prison.
Co-defendant Jarrodd D. Page, also known as “JP” or “Pistol,” 22, of St. Joseph, was sentenced on Feb. 2, 2015, to seven years in federal prison without parole.
Co-defendants Jaron M. Ewing, also known as “Pork,” 21, Elliott D. Ross, also known as “El,” 22, Markanthony T. Greer, also known as “Nate,” 31, Jamie G. Beattie, 54, Karlo L. Ginn, also known as “Los,” 32, all of St. Joseph, and Tyrell W. E. Page, also known as “Relby Gunz” or “Young Gunna,” 29, of Gladstone, Mo., have pleaded guilty to their roles in the conspiracy and await sentencing. Susan A. Thomas, also known as “Mama Sue,” 58, pleaded guilty to maintaining an apartment that was made available for the unlawful distribution of crack cocaine, and awaits sentencing.
This case is being prosecuted by Assistant U.S. Attorney Patrick C. Edwards. It was investigated by the Buchanan County, Mo., Sheriff’s Department, the St. Joseph, Mo., Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Buchanan County Drug Strike Force.
Shonto Man Sentenced to 7 Years for AssaultRead the Press Release
PHOENIX – On Feb. 9, 2015, Norman George Begay, Jr., 31, of Shonto, Ariz., a member of the Navajo Nation, was sentenced by U.S. District Judge Douglas L. Rayes to seven years’ imprisonment for stabbing his victim, resulting in serious bodily injuries. Begay pleaded guilty on Sept. 22, 2014, to assault resulting in serious bodily injury, occurring on the Navajo Indian Reservation.
The investigation was handled by the Federal Bureau of Investigation and the Navajo Nation Department of Criminal Investigation. The prosecution was handled by Dimitra H. Sampson.
CASE NUMBER: CR-14-8093-PCT-DLR
RELEASE NUMBER: 2015-014_Begay
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
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Saratoga Couple Indicted for Tax and Mortgage FraudRead the Press Release
SAN JOSE – Meili Lin, AKA Ally Lin, and Jyh-Chau Horng, AKA Henry Horng, were arraigned today on charges of tax and mortgage fraud, announced United States Attorney Melinda Haag and Internal Revenue Service, Criminal Investigation Special Agent in Charge José M. Martinez
A federal grand jury in San Jose indicted Lin and Horng on two counts of filing false tax returns, in violation of 26 U.S.C. § 7206(1), on January 28, 2015. Horng was also charged with one count of making false statements to a government agency, in violation of 18 U.S.C. § 1001(a)(2), and two counts of making false statements to a federally insured institution, in violation of 18 U.S.C. § 1014. Lin was also separately charged with one count of making false statements to a federally insured institution, in violation of 18 U.S.C. § 1014.
According to the Indictment, Lin and Horng, then a married couple residing in Saratoga, Calif., filed joint federal income tax returns for 2006 and 2007 which underreported their income, and which failed to disclose Lin’s interest in foreign financial accounts in 2006. The Indictment alleges that Horng subsequently made several materially false statements to an IRS Revenue Agent regarding the couple’s income and Lin’s foreign accounts, among other things. The Indictment further alleges that Lin and Horng both submitted mortgage applications to federally insured lenders that contained materially false information.
Lin and Horng were arrested and made their initial appearances in federal court today in San Jose before the Honorable Paul S. Grewal, U.S. Magistrate Judge. Lin and Horng are next scheduled to appear before Judge Grewal on February 13, 2015 at 1:30 pm.
The maximum statutory penalty for each count of filing a false tax return, in violation of 26 U.S.C. § 7206(1), is three years in prison and a $250,000 fine. The maximum statutory penalty for making false statements to a government agency. in violation of 18 U.S.C. § 1001(a)(2), is five years in prison and a $250,000 fine. The maximum statutory penalty for each count of making false statements to a federally insured institution, in violation of 18 U.S.C. § 1014, is thirty years in prison and a $1,000,000 fine. 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.
Michael G. Pitman is the Assistant U.S. Attorney who is prosecuting the case. The prosecution is the result of an investigation by the IRS, Criminal Investigation.
Please note, an indictment contains only allegations against an individual and, as with all defendants, Lin and Horng must be presumed innocent unless and until proven guilty.
Salinas Man Sentenced to 181 Month in Prison for Drug Trafficking and Firearm OffensesRead the Press Release
SAN JOSE – Hector David Lopez-Banuelos was sentenced yesterday to 181 months in prison, announced United States Attorney Melinda Haag and U.S. Immigration and Customs Enforcement, Homeland Security Investigations Acting Special Agent in Charge Tatum King.
Lopez-Banuelos, 35, of Salinas, Calif., was convicted by a jury on August 27, 2014, of possession of cocaine with intent to distribute, possession of methamphetamine with intent to distribute, being a felon in possession of a firearm, and possessing a firearm in furtherance of a drug trafficking offense.
Evidence at trial showed that Lopez-Banuelos possessed 814.5 grams of cocaine, 464.7 grams of actual methamphetamine, and a loaded Smith and Wesson 9mm semi-automatic pistol. Law enforcement officers discovered the drugs and weapon during the execution of a state probation search on Lopez-Banuelos’s residence. During the search, officers found a digital scale, a cutting agent, and notebooks containing entries consistent with drug trafficking activity. Officers also found 50 rounds of ammunition hidden behind a false outlet box in the wall. In addition, officers found a bulletproof vest in the residence.
Lopez-Banuelos was indicted by a federal grand jury on September 18, 2013. The sentence was handed down by the Honorable Edward J. Davila, U.S. District Court Judge, following the jury’s return of guilty verdicts on two counts of 21 U.S.C. Section 841, one count of 18 U.S.C. Section 922(g), and one count of 18 U.S.C. Section 924(c). Judge Davila also sentenced the defendant to a five-year period of supervised release. The defendant, who had been in custody, was remanded to the Bureau of Prisons to commence service of his sentence.
The prosecution is the result of an investigation by the Immigration and Customs Enforcement – HSI, the Monterey County Peninsula Regional Violence and Narcotics Team, the Seaside Police Department, and the Monterey County Probation Department.
Rossford Woman Charged with StructuringRead the Press Release
A criminal information was filed charging Jacquelyn A. Bradley, 58, of Rossford, Ohio, with structuring a currency transaction to avoid a reporting requirement, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
If convicted, the defendant’s sentence will be determined by the Court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agency in this case is the Internal Revenue Service – Criminal Investigations, Toledo, Ohio. The case is being handled by Assistant United States Attorney Gene Crawford.
An information is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Rossford Man Charged with Crimes Related to Fraudulent Sales of 33 Homes in Toledo AreaRead the Press Release
A criminal information was filed charging Herman Wayne Bradley, 59, of Rossford, Ohio, for his role in a bank fraud conspiracy, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Bradley is accused of defrauding several lending institutions related to the sale of at least 33 properties in the Toledo area in 2005 and 2006. He did this by representing to various lenders false sales prices on homes, then adding “addendums” for a lower sales price and keeping the difference, according to court documents.
Bradley faces one count each of conspiracy to commit bank fraud, bank fraud, money laundering and filing a false tax return.
The conspiracy took place between November 2005 and continuing through December 2008, according to the information.
Prosecutors are also seeking to forfeit more than $2 million in cash seized in 2011 from 713 Glenwood Road, Rossford, as well as a 2010 Ford F-150 truck.
If convicted, the defendant’s sentence will be determined by the Court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agency in this case is the Internal Revenue Service-Criminal Investigations, Toledo, Ohio. The case is being handled by Assistant United States Attorney Gene Crawford.
An information is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Ronald Randolph Radford Sentenced to 15 Years in Prison for Distributing Child PornographyRead the Press Release
GREENEVILLE, Tenn.- Ronald Randolph Radford, 68, of Johnson City, Tenn., was sentenced on Feb. 9, 2015, to serve 15 years in prison followed by a 10 year term of supervised release with special conditions of release, by the Honorable J. Ronnie Greer, U.S. District Judge for the Eastern District of Tennessee. The sentence was the result of a guilty plea by Radford on Aug. 14, 2014, to a federal grand jury indictment charging him with distributing, receiving, and possessing child pornography. Radford has been in federal custody since his arrest on Apr. 17, 2014.
The indictment and subsequent conviction of Radford was the result of an investigation conducted by the Federal Bureau of Investigation, Tennessee Bureau of Investigation, and Johnson City Police Department. Assistant United States Attorney Helen Smith represented the United States.
At sentencing, Judge Greer noted the seriousness of the offense Radford committed, the high image count of Radford's child porn collection, the need to promote respect for the law, the need to adequately deter such offenses in the general public, the need to protect the public, and Radford's personal history and characteristics.
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.
Rochester Man Pleads Guilty in Plot to Murder A Witness in Sex Trafficking CaseRead 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 Robert J. Palermo, 31, of Rochester, NY, pleaded guilty before U.S. District Judge Frank P. Geraci, Jr. to conspiracy to murder a witness. The charges carry a maximum penalty of 30 years iIn prison, a fine of $250,000 or both.Assistant U.S. Robert A. Marangola, who is handling the case, stated that Palermo, who was in jail on pending federal charges of conspiracy to commit sex trafficking and sex trafficking of a minor, attempted to obtain a hitman to murder the 15 year-old female sex trafficking victim. Over the telephone and in letters, the defendant spoke to multiple individuals about his plot to have a hitman murder the victim in order to prevent her from testifying against him.
To bring the murder plot to fruition, Palermo provided the victim’s name, description and directions to an address as well as the phone number for a person outside of jail for the hitman to contact on behalf of Palermo. Law enforcement officers learned of the plot before any harm came to the victim.
The conviction is the culmination of an investigation on the part of the Federal Bureau of Investigation's Cyber Crimes Task Force, which includes the Rochester Police Department, under the direction of Chief Michael Ciminelli, the Monroe County Sheriff's Office, under the direction of Sheriff Patrick O'Flynn, and Special Agents of the Federal Bureau of Investigation, Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero, and the Monroe County District Attorney's Office, under the direction of Sandra Doorley.
Sentencing is scheduled for May 14, 2015 at 4:00 p.m. before Judge Geraci, Jr.
Robertson County Schools Reach Settlement with the Department of Justice to Further School DesegregationRead the Press Release
Today, the Department of Justice reached a settlement agreement with the Robertson County, Tennessee, school district to resolve the department’s determination that the district had yet to fulfill its desegregation obligations in the areas of student assignment and school construction. The department identified a series of district decisions that, over decades, impeded desegregation by building and expanding almost all-white schools while leaving African-American students disproportionately in overcrowded schools with portable classrooms.
As a school system formerly segregated by law, the district has a duty to remedy past discrimination and avoid actions that reestablish segregated schools. The district also has an ongoing obligation under federal civil rights laws to treat all students equitably regardless of race or ethnicity. Under the agreement, all Robertson County students will be assigned to schools, and school facilities will be constructed and maintained, in a desegregated and non-discriminatory manner.
In addition, the agreement ensures that:
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the new elementary school set to open next year will be desegregated,
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overcrowding at predominately minority schools is addressed,
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anticipated changes in student assignment to middle and high schools will further desegregation, and
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cultural sensitivity and competency training is provided to teachers and staff.
“We are pleased that the Robertson County Schools has committed to take steps to provide all students with equitable educational opportunities regardless of race,” said Acting Assistant Attorney General Vanita Gupta of the Civil Rights Division. “We will work closely with the district as it implements the agreement and develops an effective student assignment plan for its middle and high schools.”
Promoting school desegregation is a priority of the department’s Civil Rights Division. Additional information about the Division is available at www.justice.gov/crt.
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Pennsylvania Man Admits Defrauding Computer Equipment Companies for $2.5 MillionRead the Press Release
TRENTON, N.J. – A Gladwyne, Pennsylvania, man today admitted using phony documents and “straw buyers” to fraudulently secure millions of dollars in discounted computer equipment from Hewlett-Packard Co. (HP) and Cisco Systems Inc. (Cisco), U.S. Attorney Paul J. Fishman announced.
Andrew Silverman, 51, pleaded guilty before U.S. District Judge Michael A. Shipp in Trenton federal court to an information charging him with one count of wire fraud.
According to documents filed in this case and statements made in court:
From January 2008 through May 2012, Silverman exploited HP and Cisco discount programs that provided reduced prices on products used locally within a certain country and were not resold. As the president and owner of DataQ Internet Equipment Corp., which sold computer hardware and software, Silverman was not eligible to receive these discounts.
Silverman admitted that he recruited business owners to pose as buyers interested in securing a large volume of computing products. He directed these straw buyers to falsely tell HP and Cisco that the procured products would be used internally by those individuals’ businesses and not resold. Once negotiations were complete and the straw buyers fraudulently secured the discounts, Silverman sent funds via international wire transfers to the straw buyers to cover the purchase cost. He then had the discounted equipment shipped to destinations other than the straw buyer’s businesses, including to New Jersey and other locations in the United States.
Silverman also admitted he sent multiple emails to HP representatives posing as an individual named “P.B,” regarding the purchase of deeply discounted HP equipment. Silverman created a company called Integrated Data Centers to conduct negotiations with an HP representative so he could fraudulently obtain discounted HP products.
The estimated combined losses to HP and Cisco are $2.5 million.
The wire fraud charge to which Silverman pleaded guilty carries a maximum potential penalty of 20 years in prison and a $250,000 fine. Silverman will be required to forfeit $2.5 million under terms of the plea agreement. Sentencing is scheduled for May 19, 2015.U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark; and inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Lakshmi Srinivasan Herman of the U.S. Attorney’s Economic Crimes Unit in Newark.15-052
Defense counsel: William Winning and Megan Scheib Esqs., Conshohocken, Pa., and Gerald Krovatin Esq., Newark
Owner of Miami Home Health Company Pleads Guilty for Role in $6.9 Million Medicare Fraud SchemeRead the Press Release
The owner of a Miami home health care agency pleaded guilty today in connection with a $6.9 million Medicare fraud scheme.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office and Special Agent in Charge Derrick Jackson of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office made the announcement.
Orelvis Olivera, 45, of Miami, pleaded guilty to one count of conspiracy to commit health care fraud before U.S. District Judge Robert N. Scola Jr. of the Southern District of Florida. A sentencing hearing is scheduled for April 21, 2015.
According to his plea documents, Olivera was an owner and operator of Acclaim Home Healthcare Inc. (Acclaim Home Health), a Miami home health care agency that purported to provide home health and therapy services to Medicare beneficiaries. Olivera admitted that he and his co-conspirators operated Acclaim Home Health for the purpose of billing the Medicare program for, among other things, expensive physical therapy and home health care services that were not medically necessary.
Olivera further admitted that he paid kickbacks and bribes to patient recruiters in exchange for patient referrals, as well as prescriptions, plans of care (POCs) and certifications for medically unnecessary therapy and home health services for Medicare beneficiaries. Olivera admitted that he and his co-conspirators used these prescriptions, POCs and medical certifications to fraudulently bill the Medicare program for home health care services.
From May 2008 to September 2014, Acclaim Home Health billed Medicare approximately $6.9 million for fraudulent claims, and was paid approximately $5.7 million for the same.
The case was investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. This case is being prosecuted by Trial Attorney Kelly Graves of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,100 defendants who have collectively billed the Medicare program for more than $6.5 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Operator of Northeastern Pennsylvania Investment Firm Charged with Two Million Dollar Fraud SchemeRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania has filed criminal charges against Jason A. Muskey, age 37, of Moosic, Pennsylvania, the operator of a financial services firm, alleging that Muskey diverted approximately two million dollars from clients’ accounts at the firm over a seven year period from 2007 to 2014.
According to United States Attorney Peter Smith, Muskey is charged with mail fraud, money laundering and identity theft in a Criminal Information filed today in the United States District Court in Scranton. The charges allege that Muskey, through his firm, Muskey Financial Services, offered financial advice and investment services to clients. After being entrusted with his clients’ funds, Muskey allegedly forged clients’ signatures to obtain funds from his clients’ investment accounts, deposited funds into his personal accounts and used the money for his own personal benefit. Muskey allegedly falsely represented to clients that the funds were being used to better their investments. When clients requested return or withdrawal of their funds, Muskey allegedly took funds from accounts of other clients and purchased cashier checks to pay the clients who requested withdrawal. Some of the diverted funds came from individual retirement accounts (IRA’s) of clients. Muskey also allegedly used identification information of other persons to gain access to funds to carry out his scheme.
According to the United States Attorney’s Office, there were approximately 26 victims of Muskey’s scheme. The Criminal Information alleges that the government is seeking forfeiture of property obtained with the proceeds of the fraud scheme, including:
- property in Nuangola, Pennsylvania; - proceeds from property in Moosic, Pennsylvania; - timeshare properties in Mountain Laurel Resort and Spa, White Haven, Pennsylvania and the Grand Cayman Island Resort; - the contents of bank accounts at PNC Bank, Peoples Security Bank and a Union Central 401(k) plan; - two boats, three trailers and a pickup truck.
The Government also filed a plea agreement with the defendant which is subject to the approval of the court. If convicted, Muskey faces a maximum of 22 years in prison and $1,000,000 in fines.
The investigation is being conducted by the United States Secret Service with the assistance of the United States Postal Inspection Service. The case is being prosecuted by Assistant U.S. Attorney Michelle L. Olshefski.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Nevada Man Sentenced to Nearly 10 Years in Prison in Fraud Scheme Targeting Chiropractors Who Developed Pain-Relieving Back BraceRead the Press Release
SANTA ANA, California – A Nevada man who was already serving seven years in federal prison for running an investment scheme has received a second sentence of nearly 10 years for defrauding the inventors of a back brace device called the “Gorillaback.”
Jonathan Glen Turner, 40, of Las Vegas, was sentenced to 115 months in federal prison late yesterday by United States District Judge James V. Selna. In addition to the prison term of almost 10 years – which will run consecutive to an 84-month sentence Turner received in May 2014 – Judge Selna ordered the defendant to pay $229,500 in restitution.
Following a three-week trial in August 2013 in which he represented himself, Turner was found guilty of three counts of wire fraud and one count of committing a felony while on pre-trial release. The evidence at trial showed that Turner, while free on bond in the earlier investment fraud case, befriended a Las Vegas chiropractor who had invented the Gorillaback device. Turner advised the inventor that he had been in the sales business and could sell the Gorillaback product. Turner, the chiropractor, and the chiropractor’s wife then formed a company – Products International – to manufacture and sell the back brace.
However, Turner made no effort to sell the device. He instead created fraudulent purchase orders to create the false impression that more than 10,000 Gorillabacks had been ordered and sold. Turner concealed the fact that he did not have the means to manufacture the device and there were no actual buyers.
Turner persuaded the victims to obtain investment money from their family and friends to have the “pre-sold” devices manufactured. Between March 2011 and January 2012, four additional victims in Orange County invested to have the devices manufactured, for a total loss to all victims of approximately $229,500.
Instead of using the money to manufacture Gorillabacks, Turner deposited the funds into bank accounts under his control and used the money for his personal use. Turner was arrested in this case in April 2012 and has been held without bond since that time.
While conducting the fraud involving the Gorillaback device, Turner was pending trial in another fraud that cost victims $2.6 million. Turner went to trial in that case in October 2012 and was convicted by a jury of two counts of mail fraud and two counts of wire fraud. He was sentenced in May 2014 (see: http://www.fbi.gov/losangeles/press-releases/2014/las-vegas-man-sentenced-to-more-than-seven-years-in-fraud-scheme-that-caused-orange-county-victims-to-lose-more-than-1-million).
Both cases against Turner were the product of investigations by the Federal Bureau of Investigation.
Release No. 15-012
Mt. Vernon, Indiana, man sentenced to nine years for robbery with a sawed off shotgunRead the Press Release
PRESS RELEASE
Evansville – Josh J. Minkler, Acting United States Attorney, announced today that a Mount Vernon man was sentenced in federal court for his role in a summer 2013, robbery of a convenience store. Roger Thomas, Jr., 20, was sentenced to 108 months (nine years) in prison by U.S. District Chief Judge Richard L. Young after being found guilty of robbery, use of a firearm in connection with a crime of violence, and possession of a sawed off shotgun.
Court documents indicated, Thomas entered a convenience store on West Fourth Street in Mount Vernon, just after midnight on August 20, 2013. He was wearing dark clothing over his head and face as he approached the clerk with a saw-off shotgun and demanded money, threatening to shoot if the clerk did not comply. Thomas took cash, several cartons of cigarettes and lottery tickets as he ran from the store.
Officers from the Mount Vernon Police Department quickly responded and located Thomas sitting in a vehicle near the robbery location. They secured a search warrant for the vehicle and found cash, lottery tickets, cigarettes and the loaded saw-off shotgun used in the robbery.
“The reduction of violent crime remains a top priority for this office,” said Minkler. “Those who choose to terrorize our neighborhoods using violence, will be held strictly accountable and find themselves serving federal time.”
This case was the result of an investigation by the Federal Bureau of Investigation Safe Streets Task Force and the Mt. Vernon Police Department.
According to Assistant U.S. Attorney Todd S. Shellenbarger, who prosecuted the case for the government, Thomas must serve three years of supervised release after his sentence.
Miami-Dade County Resident Convicted for being a Felon in Possession of a FirearmRead the Press Release
An Overtown resident was convicted by a jury for being a felon in possession of a firearm.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, Hugo J. Barrera, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Division, Rodolfo Llanes, Chief, City of Miami Police Department (MPD), made the announcement.
Jarod Montell Alonso, a/k/a “Rob Dough,” 29, was convicted in a three-day trial before U.S. District Judge Beth Bloom for being a felon in possession of a firearm. The jury was presented with evidence of the terror Alonso brought upon the residents of Overtown. The facts of the conviction include Alonso shoving the barrel of an AK-47 into the face of a 50-year old grandmother, as she walked from a neighborhood corner store. Just minutes after Alonso threatened to kill the grandmother, Alonso was tracked down to a nearby apartment and arrested. During his arrest, a defiant Alonso yelled to police, “I run that block.” Police searched the apartment where Alonso was found, and discovered the firearm Alonso used during the assault, hidden inside a 5-year old child’s bedroom.
Alonso has previously been convicted of state felony crimes, including attempted first degree murder, and now faces a minimum sentence of 15 years in prison as an armed career criminal.
Alonso is scheduled to be sentenced on April 17, 2015, at 9:00 a.m.
This case is, in large part, the result of the Violence Reduction Partnership, launched by the U.S. Attorney’s Office. Through this Partnership, the U.S. Attorney’s Office and its federal and local law enforcement allies have sought to dismantle the most violent criminal networks in various neighborhoods, while simultaneously working with community leaders and concerned citizens to mentor at-risk youths, provide jobs and job training to young families, and help probationers and parolees successfully re-enter society.
Mr. Ferrer commended the investigative efforts of ATF and MPD. The case is being prosecuted by Assistant U.S. Attorneys Breezye Telfair and Benjamin Widlanski.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Miami Resident Convicted for Assault on a Federal Law Enforcement OfficerRead the Press Release
After a week-long trial, a federal jury convicted a trucker and Miami, Florida resident of assault upon a federal law enforcement officer. Evidence presented at trial showed that the defendant, after being asked to leave the Claude Pepper Federal Building in downtown Miami, punched a security officer in the face.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Curtis Huston, Threat Management Branch Chief, Federal Protective Service (FPS), made the announcement.
According to the evidence presented at trial, on February 20, 2014, Lark Suddith, 67, who was in the security line in the lobby of the Claude Pepper Federal Building, began complaining about the wait time so loudly and inappropriately that he created a disturbance. A security officer asked Suddith multiple times to calm down and to stop yelling and cursing, but Suddith refused. Over the next several minutes, Suddith continued to disrupt business in the building and create a security concern, and ignored further warnings from the security officer to cease or face removal from the building. Finally, the security officer asked Suddith to leave the building and, when Suddith refused, the security officer had to use physical force to remove Suddith, who was twice the officer’s size. The security officer put his hands on Suddith’s shoulder and back and walked him out of the building. While the security officer was walking Suddith through the doors of the building, Suddith turned and punched the security officer in the face.
At trial, the security officer testified about how the incident occurred, and the jury watched the building security video, which captured the entire incident. In addition, a Special Agent with the FPS testified about how the security officer’s use of force to remove Suddith was appropriate, as Suddith’s defense at trial was that the security officer used excessive force such that he was justified in punching the officer in the face. Evidence at trial further revealed that this was not the first incident of violence involving the defendant, as he was also convicted by a jury of misdemeanor battery in 2012.
At sentencing, Suddith faces up to 33 months in prison for assault. Suddith is scheduled to be sentenced on April 6, 2015, at 3:00 p.m., before U.S. District Judge Joan A. Lenard.
Mr. Ferrer commended the investigative efforts of FPS. This case is being prosecuted by Assistant U.S. Attorney Vanessa Snyder.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Man Who Operated Reno Consulting Firm Sentenced to 2 1/2 Years in Prison for Theft and Failing to Pay Employment TaxesRead the Press Release
RENO, Nev. – Michael Stickler, 54, of Reno, was sentenced on Monday, Feb. 9, 2015, by U.S. District Judge Miranda M. Du to 2½ years in federal prison, three years of supervised release, 100 hours of community service, and ordered to pay $200,000 in restitution to the U.S. Department of Health and Human Services and $100,899 to the IRS for his convictions on theft of federal grant money and failing to pay employment taxes, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.
“Government programs are often the victims of scams and fraud,” said U.S. Attorney Bogden. “If you steal from a federal program, you risk being investigated, prosecuted and sent to prison.”
Stickler owned and operated a company in Reno called Faith Based Solutions from 1999 to 2009. In 2007, Faith Based Solutions, received $500,000 in federal grant money to teach non-profit organizations how to apply for federal government grants. Part of the grant terms required that $200,000 of the grant funds be paid to sub-grantees. However, Stickler drew down all of the grant funds in the first seven months of the grant period and no money was ever provided to any sub-grantee. Rather, Stickler put the money in accounts that he controlled and used it to pay large salaries to himself and family members, to take elaborate vacations, and for other items that were not approved by the grant. Stickler also collected and withheld employment and FICA taxes from his employees’ wages, but failed to pay them over to the IRS.
Stickler pleaded guilty to one tax charge and was convicted by a jury of the theft charge. He is released on a personal recognizance bond and must report to federal prison by May 11, 2015.
The cases were investigated by IRS Criminal Investigation and the U.S. Department of Health and Human Services Office of Inspector General. They were prosecuted by Assistant U.S. Attorney Carla B. Higginbotham.
Macy Residents Sentenced for Copyright InfringementRead the Press Release
United States Attorney Deborah R. Gilg announced that William Cayou, age 34,of Lincoln, Nebraska, and Holly Cayou, age 39, of Macy, Nebraska, were sentenced upon their convictions for copyright infringement. On February 9, 2015, Chief United States District Court Judge Laurie Smith Camp sentenced William Cayou to 5 years’ probation. On January 12, 2015, United States Magistrate Judge Thomas D. Thalken sentenced Holly Cayou to 5 years’ probation. While on probation, the Cayous will each have to perform 200 hours of community service and each defendant will have to separately pay $1,500 in restitution.
William Webster and Holly Cayou were formerly married and resided in Macy, Nebraska on the Omaha Indian Reservation from 2011 through 2013. From May 1, 2011 through May 6, 2013, the Cayous obtained pirated copies of copyrighted motion pictures which they reproduced and sold to persons on the Omaha Indian Reservation without the consent of the copyright holders. The investigation revealed that Holly Cayou sold approximately 600 DVDs and William Cayou sold approximately 1,250 DVDs during the time period.
This case was investigated by the Federal Bureau of Investigation.
Lawn Care Business Owner Sentenced for Lying to Receive Workers' Compensation BenefitsRead the Press Release
LAFAYETTE, La. – United States Attorney Stephanie A. Finley announced that a Breaux Bridge man was sentenced Monday to six months in prison and six months of home confinement for lying in order to continue receiving disability benefits to which he was not entitled.
Mervin J. Noel, 51, of Breaux Bridge, La., was sentenced by U.S. District Judge Elizabeth E. Foote for one count of making false statements to continue receiving workers’ compensation benefits under the Longshore and Harbor Workers’ Compensation Act. He was also sentenced to three years of supervised release and ordered to pay $138,247 restitution to the Social Security Administration (SSA) and Louisiana Workers Compensation Corporation (LWCC).
According to evidence presented at the October 7, 2014 guilty plea, Noel began receiving workers’ compensation and Social Security disability benefits after sustaining an injury while working on an offshore oil platform in 1994. In 2007, Noel began operating a lawn care business without informing either the LWCC or SSA that he was employed and earning income. Instead, on four occasions Noel falsely reported on official documents mailed to LWCC officials that he had no earnings from employment. Noel also appeared in person before SSA officials on April 11, 2014 and falsely reported that he had not worked since becoming disabled. As a result, Noel received $20,776 in workers’ compensation benefits and $118,220 in Social Security benefits to which he was not entitled.
The SSA conducted the investigation. Assistant U.S. Attorney David C. Joseph prosecuted the case.
Jury Convicts Houston Man of Smuggling Almost 9 Kilograms of MethamphetamineRead the Press Release
HOUSTON – A federal jury in Houston has convicted Larry Maurice Favorite, 32, of Houston, of possession with intent to distribute at least 500 grams of a mixture or substance containing methamphetamine and conspiracy to do the same, announced U.S. Attorney Kenneth Magidson. The jury returned its verdict this afternoon following a two-day trial before U.S. District Judge Gray Miller.
The jury hard that on June 22, 2012, Favorite drove a Honda minivan from Laredo to the Border Patrol immigration checkpoint on Highway 59, approximately 16 miles west of Freer. His mother, Juanita Eva Velasquez, was riding as a front seat passenger. A law enforcement canine alerted to the van in primary inspection, at which time agents sent the van and occupants to secondary inspection. A search was conducted which revealed three unmarked glass bottles in a bag located near the front passenger seat of the van. The bottles contained a brown liquid that appeared to be thicker than water.Agents then found six more identical looking bottles behind the center console area. The nine bottles held a total of approximately nine liters of liquid, which agents field tested positive for methamphetamine.
Velasquez and Favorite were immediately arrested and agents with the Drug Enforcement Administration (DEA) conducted further investigation. Favorite initially told agents he did not know there were any bottles in the van and that he and his mother had driven down from Houston.
However, when agents asked if the bottles belonged to his mother, Favorite then claimed they were only his. He stated he received them previously from a Hispanic male, but would not elaborate.
The bottles were sent to the DEA laboratory for more thorough testing. The laboratory confirmed the liquid contained methamphetamine having a net weight of 8.966 kilograms with a purity level of 48.4%. The total amount of actual methamphetamine in the bottles was 4.339 kilograms.
As a result of the conviction today, Favorite faces a minimum of 10 years and up to life in federal prison and a possible $10 million fine. He is set for sentencing May 22, 2015.
Velasquez was also charged and pleaded guilty last week to the methamphetamine trafficking conspiracy. She will also be sentenced May 22, 2015.
The investigation leading to the charges in this case was conducted by DEA and Border Patrol. Assistant U.S. Attorney Arthur R. Jones and Anibal Alaniz prosecuted the case.
Joplin, Mountain Grove brothers indicted for $5.6 Million SchemeRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that two brothers in Joplin, Mo., and Mountain Grove, Mo., and two employees have been indicted by a federal grand jury for their roles in a conspiracy to sell more than $5.6 million worth of spent cooking oil – stolen from restaurants across five states – to a recycling facility in Oklahoma.
Jeffery Lynn Fleming, 58, of Joplin, his brother, Brian Dale Fleming, 48, of Mountain Grove, and Virgil Orin Bird, Jr., 51, and Neal Sawyer Robbins, 28, both of Joplin, were charged in a 12-count indictment returned under seal by a federal grand jury in Springfield, Mo., on Jan. 20, 2015. That indictment was unsealed and made public today upon Jeffery and Brian Fleming’s arrests and initial court appearances.
According to the indictment, Jeffery and Brian Fleming sold approximately $5,658,636 worth of spent cooking oil that had been stolen from restaurants to a grease recycling business in Tulsa, Okla., between Nov. 1, 2010, and Sept. 30, 2011.
Spent cooking oil was the by-product of cooking oil that restaurants used for frying food. Restaurants had on-site collection tanks in which their spent cooking oil was stored. Many restaurants established contracts with various companies for the collection and removal of spent cooking oil.
Jeffery Fleming operated Fleming Recycling, LLC, in Carterville, Mo. Fleming Recycling allegedly bought stolen spent cooking oil from drivers who stole it from numerous restaurants in Missouri, Tennessee, Iowa, Kansas and Oklahoma. Fleming Recycling then allegedly sold the stolen spent cooking oil to a grease recycling business in Tulsa. Bird and Robbins worked for Jeffery Fleming at Fleming Recycling.
Brian Fleming operated Tri-State Grease in Cabool, Mo. Tri-State Grease allegedly bought stolen spent cooking oil from drivers who stole it both inside and outside the state of Missouri. Tri-State Grease then allegedly sold the stolen spent cooking oil to Fleming Recycling.
All four defendants are charged with participating in a conspiracy to commit the crime of interstate transportation of stolen property.
According to the indictment, a grease recycling business in Tulsa sent a tanker truck to Fleming Recycling on an almost-daily basis. Each tanker truck held approximately 45,000 pounds of stolen spent cooking oil that was valued at approximately $20,000.
The indictment alleges a number of specific instances in which stolen spent cooking oil was sold to the Tulsa business. For example, on Jan. 31, 2011, three tanker truck loads of stolen spent cooking oil allegedly were transported to Tulsa. The Tulsa recycling business then allegedly sent three wire transfers totaling $44,873 to Jeffery Fleming as payment.
The federal indictment cites several instances in which undercover law enforcement officers sold truck-loads of purportedly stolen spent cooking oil to Fleming Recycling and received payment. For example, on July 11, 2011, Brian Fleming allegedly assisted undercover officers in the purported theft of approximately 32,000 pounds of spent cooking oil with a purported value of approximately $9,000 from an undercover tanker truck. The next day, the indictment says, Brian Fleming paid an undercover officer $4,650 for the purported stolen spent cooking oil.
During the conspiracy, the indictment says, Jeffery Fleming (through Fleming Recycling) paid Brian Fleming, Bird, Robbins and other co-conspirators approximately $2,600,709 for stolen spent cooking oil.
In addition to the conspiracy, Jeffery Fleming is charged with one count of interstate transportation of stolen goods, two counts of conducting financial transactions with criminally-derived proceeds, one count of making false statements on tax returns, one count of structuring a financial transaction in order to evade federal reporting requirements and one count of causing a financial institution to fail to file a transaction report. Jeffery Fleming and the other defendants are also charged in five separate money-laundering counts for conducting financial transactions to promote an unlawful activity.
The federal indictment also contains a forfeiture allegation, which would require the defendants to forfeit to the government $595,429 seized by law enforcement officers and a money judgment of $5,658,636, representing the proceeds of the alleged offenses.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorneys Abram McGull and Patrick Carney. It was investigated by IRS-Criminal Investigation, the Missouri State Highway Patrol and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Iowa Home Care Company to Pay $5.63 Million to Settle False Claims Act AllegationsRead the Press Release
ResCare Iowa Inc. has agreed to pay $5.63 million to the United States and the state of Iowa to resolve allegations that it violated the False Claims Act by submitting false home healthcare billings to the Medicare and Medicaid programs, the Department of Justice announced today. ResCare Iowa – a subsidiary of Louisville, Kentucky, based ResCare Inc. – provides home healthcare services to patients in the state of Iowa.
“Home health agencies that bill Medicare and Medicaid must follow the rules,” said Acting Assistant Attorney General Joyce R. Branda of the Justice Department’s Civil Division. “This settlement demonstrates the Department’s commitment to safeguarding taxpayer dollars and ensuring that they are used to provide medically necessary services to federal health care beneficiaries.”
The rules of both Medicare and the state of Iowa’s Medicaid program require an independent physician to certify that home healthcare services are medically necessary and to order the specific type and amount of healthcare services to be provided by the home health agency. Additionally, since 2011, Medicare and Iowa Medicaid rules require these independent physicians to perform an in-person “face-to-face” assessment of each patient before the home health agency can bill the government for any home healthcare services. The settlement resolves allegations that between 2009 and 2014, ResCare Iowa billed the government for services provided to Medicare and Medicaid patients in Iowa without documenting compliance with these requirements.
“We commenced this investigation due to concerns that this provider was not complying with the rules and was not submitting accurate claims for payment,” said U.S. Attorney Kevin W. Techau of the Northern District of Iowa. “When the government pays for home-based medical services, we are dedicated to ensuring the money is well spent and medically deserving patients receive the care to which they are entitled.”
“Home health care providers that receive Medicare and Medicaid funds must abide by rules designed to ensure taxpayer funds are spent properly and that patients receive the appropriate care,” said Special Agent in Charge Gerald T. Roy of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “We will continue to hold health care providers accountable for submitting improper claims.”
Medicaid is jointly funded by the states and the federal government. The state of Iowa, which paid part of the Medicaid funds at issue, will receive $2.32 million of the settlement amount.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $23.6 billion through False Claims Act cases, with more than $15.1 billion of that amount recovered in cases involving fraud against federal health care programs.
This settlement was the result of a coordinated effort by the Civil Division, the U.S. Attorney’s Office for the Northern District of Iowa, HHS-OIG and the Iowa Attorney General’s Office. The claims settled by this agreement are allegations only, and there has been no determination of liability.
Iowa Home Care Company to Pay $5.63 Million to Settle False Claims Act AllegationsRead the Press Release
Contact: Steve Young
CEDAR RAPIDS – ResCare Iowa Inc. has agreed to pay $5.63 million to the United States and the state of Iowa to resolve allegations that it violated the False Claims Act by submitting false home healthcare billings to the Medicare and Medicaid programs, the Department of Justice announced today. ResCare Iowa – a subsidiary of Louisville, Kentucky, based ResCare Inc. – provides home healthcare services to patients in the state of Iowa.
“We commenced this investigation due to concerns that this provider was not complying with the rules and was not submitting accurate claims for payment,” said U.S. Attorney Kevin W. Techau of the Northern District of Iowa. “When the government pays for home-based medical services, we are dedicated to ensuring the money is well spent and medically deserving patients receive the care to which they are entitled.”
“Home health agencies that bill Medicare and Medicaid must follow the rules,” said Acting Assistant Attorney General Joyce R. Branda of the Justice Department’s Civil Division. “This settlement demonstrates the Department’s commitment to safeguarding taxpayer dollars and ensuring that they are used to provide medically necessary services to federal health care beneficiaries.”
The rules of both Medicare and the state of Iowa’s Medicaid program require an independent physician to certify that home healthcare services are medically necessary and to order the specific type and amount of healthcare services to be provided by the home health agency. Additionally, since 2011, Medicare and Iowa Medicaid rules require these independent physicians to perform an in-person “face-to-face” assessment of each patient before the home health agency can bill the government for any home healthcare services. The settlement resolves allegations that between 2009 and 2014, ResCare Iowa billed the government for services provided to Medicare and Medicaid patients in Iowa without documenting compliance with these requirements.
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“Home health care providers that receive Medicare and Medicaid funds must abide by rules designed to ensure taxpayer funds are spent properly and that patients receive the appropriate care,” said Special Agent in Charge Gerald T. Roy of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “We will continue to hold health care providers accountable for submitting improper claims.”Medicaid is jointly funded by the states and the federal government. The state of Iowa, which paid part of the Medicaid funds at issue, will receive $2.32 million of the settlement amount.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $23.6 billion through False Claims Act cases, with more than $15.1 billion of that amount recovered in cases involving fraud against federal health care programs.
This settlement was the result of a coordinated effort by the Civil Division, Assistant U.S. Attorney Jacob Schunk for the Northern District of Iowa, HHS-OIG, and the Iowa Attorney General’s Office. The claims settled by this agreement are allegations only, and there has been no determination of liability.
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INFORMATION: Federal Court ArraignmentsRead the Press Release
The United States Attorney’s Office announced that those persons listed below were arraigned before the U.S. Magistrate and the indictments handed down by the Grand Jury unsealed.
Appearing before U.S. Magistrate Judge Johnston in Great Falls on February 10, 2015, and entering pleas of Not Guilty were:
- JAMES CAMPBELL, a 37-year-old resident of Poplar, appeared on charges of strangulation. If convicted of the charge contained in the indictment, CAMPBELL faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Fort Peck Tribes Department of Law & Justice. PACER Case Reference: 15-15
- SARA LYNN DARNELL, a 42-year-old resident of Poplar, appeared on charges of conspiracy to possess with intent to distribute methamphetamine, possession with intent to distribute methamphetamine, distribution of methamphetamine. If convicted of the most serious charges contained in the indictment, DARNELL faces 40 years in prison, $5,000,000 in fines and 4 years supervised release. The case was investigated by the Bureau of Indian Affairs. PACER Case Reference: 15-13
- GARY O’NEAL DRUM, a 27-year-old resident of Poplar, appeared on charges of burglary. If convicted of the charge contained in the indictment, DRUM faces 20 years in prison, $50,000 in fines and 3 years supervised release. The case was investigated by the Fort Peck Tribes Department of Law & Justice. PACER Case Reference: 15-14
- JEFFERY JOHN HELM, a 60-year-old resident of Nashua, appeared on charges of conspiracy to possess with intent to distribute oxycodone and morphine, possession with intent to distribute oxycodone and morphine, and distribution of oxycodone and morphine. If convicted of the most serious charges contained in the indictment, HELM faces 20 years in prison, $1,000,000 in fines and 3 years supervised release. The case was investigated by the Drug Enforcement Administration. PACER Case Reference: 15-12
Appearing before U.S. Magistrate Judge Lynch in Missoula on February 10, 2015, and entering pleas of Not Guilty were:
- ERIKA RAE BROWN, a 44-year-old resident of San Diego, California, appeared on charges of money laundering and false statements to a government agency. If convicted of the most serious charge contained in the indictment, BROWN faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Federal Bureau of Investigation and the Internal Revenue Services. PACER Case Reference: 15-01
- ROBIN RENEE SERVERA, a 44-year-old resident of Helena, appeared on charges of conspiracy to possess methamphetamine with intent to distribute and possession with intent to distribute methamphetamine. If convicted of the most serious charge contained in the indictment, SERVERA faces 40 years in prison, $5,000,000 in fines and 4 years supervised release. The case was investigated by the Missouri River Drug Task Force. PACER Case Reference: 15-04
Appearing before U.S. Magistrate Judge Johnston in Great Falls on February 9, 2015, and entering pleas of Not Guilty were:
- TERRY MICHAEL CROFF, a 55-year-old resident of Cut Bank, appeared on charges of conspiracy to possess with intent to distribute methamphetamine, possession with intent to distribute methamphetamine and distribution of methamphetamine. If convicted of the most serious charges contained in the indictment, CROFF faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by the Bureau of Indian Affairs and Federal Bureau of Investigation. PACER Case Reference: 15-11
- AUSTIN JAY MANCHA, a 32-year-old resident of Browning, appeared on charges of assault with a dangerous weapon, use and brandishing of a firearm during a crime of violence and felon in possession of a firearm. If convicted of the most serious charges contained in the indictment, MANCH faces life in prison, $250,000 in fines and 5 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference: 15-10
- SEAN MILO STIFFARM, a 24-year-old resident of Harlem, appeared on charges of involuntary manslaughter. If convicted of the charge contained in the indictment, STIFFARM faces 8 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Federal Bureau of Investigation and Fort Belknap Law Enforcement Services. PACER Case Reference: 15-08
Appearing before U.S. Magistrate Judge Lynch in Missoula on February 6, 2015, and entering pleas of Not Guilty were:
- OSCAR VILLALOBOS, a 26-year-old resident of Washington, appeared on charges of conspiracy to distribute methamphetamine, possession with intent to distribute methamphetamine and possession of a firearm in furtherance of a drug trafficking crime. If convicted of the most serious charges contained in the indictment, VILLALOBOS faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by the Drug Enforcement Administration and the Missoula HIDTA. PACER Case Reference: 15-02
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system so that you stay current and not miss any important developments in the case.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
Hopi Man Sentenced to 43 Months in Federal Prison for Sexual Abuse of a MinorRead the Press Release
PHOENIX – On Feb. 9, 2015, U.S. District Judge Neil V. Wake sentenced Devonte Lee Silas, 19, of Hotevilla, Ariz., to 43 months in federal prison. Silas was also sentenced to a life term of supervised release following his release from prison. On Nov. 20, 2014, Silas, a member of the Hopi Tribe, pleaded guilty to one count of sexual abuse of a minor, occurring on the Hopi Reservation.
The investigation in this case was conducted by the BIA-Hopi Agency.
CASE NUMBER: CR-14-8216-NVW (BSB)
RELEASE NUMBER: 2015-012_Silas
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az
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Hidalgo HUD Officials Charged with Conspiracy to Commit Bribery and EmbezzlementRead the Press Release
McALLEN, Texas ‐ Susana Munguia, 61, and Lubina Pedraza, 54, both of Hidalgo, have been arrested and charged with conspiracy to commit bribery and embezzlement and several counts of bribery, announced U.S. Attorney Kenneth Magidson.
Munguia and Pedraza were former officials with the City of Hidalgo Housing Authority who worked directly with the Department of Housing and Urban Development (HUD) Housing Choice Voucher Program (HCVP). Munguia was the executive director and Pedraza was a secretary.
The indictment charging them was returned under seal Feb. 3, 2015, and unsealed today upon their arrest. They made their initial appearances before U.S. Magistrate Judge Dorina Ramos this morning, at which time they were temporarily ordered into custody pending a detention hearing set for Feb. 13, 2015, at 11:00 a.m.
From July 2011 to May 2014, Munguia and Pedraza allegedly used their positions as public officials to engage in a bribery scheme. According to the indictment, the two women solicited and received bribes in exchange for allowing individuals to skip the Section 8 waitlist and immediately obtain housing assistance from the HCVP. Individuals paid, directly or through a third party, a monetary bribe to Munguia and Pedraza in order to bypass the waitlist system and to receive immediate approval to obtain vouchers for housing subsidies under the HCVP, according to the indictment.
Pedraza was responsible for assigning housing to the payee or beneficiary and issued checks to subsidize their rent payments. The indictment alleges that after Munguia and Pedraza received the bribe, the paying party (or the person for whom payment was made), would immediately receive their subsidized housing.
The indictment further alleges that from July 2013 to May 2014, Munguia and Pedraza also engaged in an embezzlement scheme, during which they took more than $5,000 in HUD funds through the issuance of false and fraudulent checks for Section 8 housing assistance. Pedraza was also responsible for the processing of rental subsidies to various landlords/owners.The indictment alleges that uponpreparing the legitimate checks to pay the subsidies, Pedraza did cause multiple false and fraudulent check requests to be issued based on a falsified need for monthly Housing Authority payments to a particular owner/landlord. These fraudulent checks were made out to owners/landlords who either did not own or maintain a rental property and/or the property was not occupied by a Section 8 tenant, according to the allegations.
Munguia was responsible for the verification of the payment and the authorizing signature on the check. The indictment alleges that after Mungia issued and signed the fraudulent checks, Pedraza would then cash the fraudulent checks at Casa de Cambio or deposit the check at a BBVA Compass Bank and subsequently withdraw the money. Both women allegedly shared in the fraudulent proceeds.
If convicted, Munguia and Pedraza face up to 15 years in federal prison for the bribery charges and up to five years for the conspiracy charges.
The investigation leading to the charges was conducted by HUD-Office of Inspector General and the FBI. Assistant U.S. Attorney Kristen Rees is prosecuting the case.
An Indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Hartford Man Admits Manufacturing and Distributing PcpRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that a KEVIN BETTS, also known as “KK,” 28, of Hartford, pleaded guilty today in Hartford federal court to a federal charge stemming from his manufacture and distribution of PCP.
According to court documents and statements made in court, BETTS manufactured Phencyclidine (“PCP”) in his apartment at 57 Sumner Street in Hartford and, on five occasions in July and August 2014, sold the drug out of his apartment to an individual working with law enforcement.
On August 1, 2014, investigators searched the apartment and recovered more than 60 grams of PCP, scales, packaging material, six firearms, approximately 215 rounds of ammunition and a bullet proof vest.
BETTS pleaded guilty to one count of maintaining a drug-involved premises, which carries a maximum term of imprisonment of 20 years. He is scheduled to be sentenced by U.S. District Judge Michael P. Shea on May 5, 2015. As part of the resolution of this case, BETTS agreed to the forfeiture of the firearms, ammunition and bullet proof vest.
This prosecution stems from Project Longevity, a comprehensive initiative to reduce gun violence in Connecticut’s major cities. Through Project Longevity, community members and law enforcement directly engage with members of groups that are prone to commit violence. A critical component of the Project Longevity strategy is the “call-in,” a face-to-face meeting where Project Longevity partners engage group members and deliver a community message against violence, a law enforcement message about the consequences of further violence and an offer of help for those who want it. Close associates of BETTS attended a call-in on April 1, 2014, in Hartford, but members of their group are suspected of being involved in several shooting incidents since then.
This ongoing investigation is being conducted by the Hartford Police Department and the FBI’s Northern Connecticut Violent Crimes Task Force. The FBI task force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The case is being prosecuted by Assistant U.S. Attorney Michael J. Gustafson.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Hartford Heroin Trafficker Sentenced to 46 Months in Federal PrisonRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that CHRISTOPHER CARDONA, also known as “Tito,” 30, of Hartford, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 46 months of imprisonment, followed by three years of supervised release, for trafficking heroin.
According to court documents and statements made in court, a joint investigation into heroin trafficking in the Hartford area identified CARDONA as a distributor of the drug. On two occasions in March 2014, an individual working with law enforcement purchased approximately nine grams of heroin from Antonio Baez of Hartford. The investigation revealed that CARDONA and another individual supplied the heroin to Baez, and had been supplying Baez with heroin for approximately two years.
CARDONA has been detained since his arrest on March 12, 2014. On November 19, 2014, he pleaded guilty to one count of conspiracy to possess with intent to distribute heroin, and to distribute, heroin.
Baez has pleaded guilty and awaits sentencing.
This matter is being investigated by the Drug Enforcement Administration, Federal Bureau of Investigation and Hartford Police Department. The case is being prosecuted by Assistant U.S. Attorneys Patrick Caruso and Brian Leaming.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Harrisburg Man Sentenced to 139 Months for Distribution of Crack CocaineRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today that United States District Court Judge John E. Jones sentenced Terrell Hickerson, age 35, of Harrisburg, to 139 months’ imprisonment after Hickerson pleaded guilty in August 2014 to distribution and possession with intent to distribute cocaine base, also known as crack cocaine.
According to U.S. Attorney Peter Smith, as early as the fall of 2012, Hickerson began selling crack cocaine in the Harrisburg area. This conviction represents Hickerson’s third drug trafficking conviction; he was most recently released in September 2011 after serving a 97 month term of imprisonment for conspiracy to distribute crack cocaine.
This case was investigated by the Federal Bureau of Investigation Capital City Safe Streets Task Force, the Harrisburg Bureau of Police, the Hampden Township Police Department and the Dauphin County Drug Task Force. The case was prosecuted by Assistant United States Attorney Daryl F. Bloom.
Gila River Man Sentenced to 14 Years in Prison for MurderRead the Press Release
PHOENIX – On Feb. 9, 2015, Lorenzo Dale Flores, 20, a member of the Gila River Indian Community, was sentenced by U.S. District Judge John J. Tuchi to 168 months in prison. Flores pleaded guilty on Oct. 14, 2014, to second degree murder, occurring within the Gila River Indian Community.
On May 26, 2014, Flores shot the victim multiple times outside a home in Bapchule, Ariz.
The investigation in this case was conducted by the Gila River Police Department. The prosecution was handled by Raynette Logan, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-14-00923-PHX-JJT
RELEASE NUMBER: 2015-015_Flores
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
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Fresno Woman Pleads Guilty to Embezzling More Than $300,000 from Former Law Firm EmployerRead the Press Release
FRESNO, Calif. — Shelley Corkins, also known as Shelley Kimbrell, 38, of Fresno, pleaded guilty today to three counts of wire fraud in connection with her embezzlement of money from the law firm that formerly employed her, United States Attorney Benjamin B. Wagner announced.
According to the plea agreement, Corkins formerly was employed by a Fresno-based law firm as a bookkeeper and accounting department supervisor. Between January 2008 and May 2012, Corkins abused her access and authority to manage the law firm’s finances and embezzled the law firm’s money for her own personal use. Corkins used her company credit card to make personal purchases at various retail outlets, including clothing and toy stores, electronically transferred funds from the law firm’s bank accounts to her own, and embezzled the law firm’s petty cash. Corkins admitted that while employed with the law firm, she embezzled at least $317,000 of the law firm’s money.
This case was the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorney Christopher Baker is prosecuting the case.
Corkins is scheduled to be sentenced by Senior U.S. District Judge Anthony W. Ishii on May 11, 2015. The maximum statutory penalty for each of the three counts of wire fraud is 20 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 sentencing factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Franklin County Woman Sentenced to 27 Months in Federal Drug Trafficking CaseRead the Press Release
The United States Attorney=s Office for the Middle District of Pennsylvania announced today that Senior U.S. District Court Judge Sylvia H. Rambo sentenced Perla Roman, 32, of Waynesboro, Pennsylvania to 27 months of incarceration for her participation in a drug trafficking conspiracy. On July 28, 2014, Roman pleaded guilty to conspiring with others to distribute and possess with the intent to distribute cocaine hydrochloride.
According to U.S. Attorney Peter Smith, from 2010 to 2013, Roman and others distributed cocaine hydrochloride in the Middle District of Pennsylvania, Maryland and Virginia. This organization obtained cocaine in Chicago, Illinois, transported it back to the Waynesboro, PA area and distributed it in the surrounding counties as well as Maryland and Virginia.
This case was investigated by the Drug Enforcement Administration and is being prosecuted by Assistant United States Attorney Meredith A. Taylor.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.