Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Monday 1 December 2014
Torrington Resident Sentenced to Federal Prison for Role in Real Estate Fraud Schemes, Obstructing JusticeRead the Press Release
Follow @USAO_CT
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that THOMAS PROVENZANO, 48, of Torrington, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to 18 months of imprisonment, followed by five years of supervised release, for his role in a series of fraudulent real estate transactions.
According to court documents and statements made in court, in November 2005, PROVENZANO obtained a $923,200 loan to purchase a lakefront home located at 27 Palmer Road in Morris for more than $1.1 million, despite lacking the income and savings to pay off the mortgage. The property was owned by an entity controlled by a co-conspirator and, on the mortgage loan application, PROVENZANO falsely listed his employment with a company owned by his co-conspirator. In fact, PROVENZANO never worked at the company. The application also falsely listed PROVENZANO’s income as $20,000 per month when, in fact, his annual income was less than $50,000. The company subsequently provided verification for the false employment and income information on the loan application.
In November 2006, PROVENZANO refinanced the loan, obtaining a $936,000 mortgage from a federally insured bank. The new loan application, like the prior application, falsely listed PROVENZANO as employed by the same company as in the original loan application, and falsely listed his monthly income as $28,000, equal to $336,000 annually. The company again provided verification for the false information on the loan application.
The loan is now in default, and the Palmer Road property is now in foreclosure.
In May and June 2010, PROVENZANO and the same co-conspirator learned that the FBI and IRS were investigating the real estate and mortgage transactions involving the Palmer Road property. Among other things, the federal agents were examining a discrepancy in the closing documents, which showed that PROVENZANO had been obligated to make a down payment of approximately $249,000, but had never paid it. PROVENZANO and his co-conspirator met and created a false promissory note in the amount of approximately $249,000, and backdated the note to November 2005, to serve as an explanation of why the $249,000 down payment had never been paid at the closing. In June 2010, PROVENZANO agreed to be interviewed by the FBI and IRS. During the interview he falsely claimed that he had not needed to make the down payment in November 2005 because he had signed a promissory note to the seller for the same amount. Later that same month, PROVENZANO met with the FBI and IRS agents and provided them with a copy of the false, backdated promissory note.
As part of a separate conspiracy, in December 2009 and January 2010, PROVENZANO, the same co-conspirator and others engaged in a series of discussions about how to defraud a title insurance company. According to the discussions, the scheme involves a real property sale based on a deliberately defective title search, where one or more liens on the property are deliberately omitted from the title search report. After the property is sold and title insurance is issued, the conspirators arrange an event that triggers a new title search, such as a resale of the property. The “overlooked” liens turn up, providing the conspirators with a legal claim against, and a large payout from, the title insurer.
The conspirators attempted the scheme on a property held in the name of an entity controlled by PROVENZANO’s co-conspirator located at 66 Donahue Road Extension in Litchfield. PROVENZANO assisted in a title search of the property in January 2010, but then ceased to participate in the scheme. The property was later sold in March 2010 to his co-conspirator’s brother, and title insurance was issued based upon a defective title search. Three liens against the property, totaling approximately $990,000, had been deliberately omitted from the title search report.
PROVENZANO was ordered to pay $299,000 in restitution.
On January 9, 2014, PROVENZANO waived his right to indictment and pleaded guilty to one count ofconspiracy to commit bank fraud, one count of conspiracy to obstruct justice and one count of conspiracy to commit mail and wire fraud.
Four other individuals who are alleged to be involved in these schemes have been charged by indictment and are awaiting trial.
This investigation is being conducted by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorney Henry Kopel.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]T.RAD Executive Agrees to Plead Guilty to Bid Rigging and Price Fixing on Automobile Parts Installed in U.S. CarsRead the Press Release
An executive of Japan-based T.RAD Co. Ltd. has agreed to plead guilty and to serve one year and one day in a U.S. prison for participating in a conspiracy to fix prices of radiators installed in cars sold in the United States and elsewhere, the Department of Justice announced today.
A one-count felony charge was filed today in the U.S. District Court for the Eastern District of Michigan in Detroit against Kosei Tamura, a general manager for T.RAD. According to the charge, Tamura, a Japanese national, conspired from as early as November 2002 until at least February 2010, by agreeing to allocate bids for, and prices of, radiators sold to Honda Motor Co. Ltd. and certain of its subsidiaries in the United States and elsewhere. In addition to the prison sentence, Tamura has agreed to pay a $20,000 criminal fine and to cooperate with the department’s ongoing investigation. The plea agreement is subject to court approval.
“Companies and their executives should do their part to ensure American consumers are guaranteed a fair marketplace within the automotive industry,” said Brent Snyder, Deputy Assistant Attorney General for the Antitrust Division’s criminal enforcement program. “The Antitrust Division will continue to hold accountable the companies and executives who ignore these laws in order to make this a reality.”
T.RAD is a manufacturer of radiators and was engaged in the sale of radiators in the United States and elsewhere. Radiators are devices located in the engine compartment of a vehicle that cool the engine.
In November 2013, T.RAD pleaded guilty and was sentenced to pay a $13.75 million criminal fine for its role in a conspiracy to fix the prices of radiators and automatic transmission fluid warmers.
Including today’s charges, 48 individuals have been charged in the department’s ongoing investigation into price fixing and bid rigging in the auto parts industry. Additionally, 32 companies have pleaded guilty or agreed to plead guilty and have agreed to pay a total of more than $2.4 billion in fines.
Tamura is charged with price fixing in violation of the Sherman Act, which carries a maximum sentence of 10 years in prison and a $1 million criminal fine for individuals. The maximum fine for an individual may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.
The current prosecution arose from an ongoing federal antitrust investigation into price fixing, bid rigging, and other anticompetitive conduct in the automotive parts industry, which is being conducted by each of the Antitrust Division’s criminal sections and the FBI. This case was brought by the Washington Criminal I Section of the Antitrust Division with the assistance of the Detroit Field Office of the FBI. Anyone with information concerning the focus of this investigation should contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258, visit www.justice.gov/atr/contact/newcase.html or call the Detroit Field Office of the FBI at 313-965-2323.
St. Anne Man to Serve More Than 14 Years in Federal Prison for Trafficking Heroin and Possession of A FirearmRead the Press Release
Urbana, Ill. – JB Brown, Jr., aka Cocoa, 37, of the 400 block of Circle Drive, St. Anne, Ill., was sentenced today to a term of 174 months (14 years, 6 months) in federal prison for trafficking heroin and possession of a firearm by a felon, as announced by Jim Lewis, U.S. Attorney for the Central District of Illinois. Brown was also ordered to remain on supervised release for a period of eight years following completion of his prison sentence. The court increased Brown’s advisory sentencing guideline range after finding that Brown committed perjury in July when he testified during his trial.
On July 29, 2014, a jury convicted Brown for possession of more than 100 grams of heroin, which he intended to distribute, and a loaded Glock .45 caliber semi-automatic pistol, in 2013, when Brown was a convicted felon. Brown has been in the custody of the U.S. Marshals Service since the jury conviction.
Assistant U.S. Attorney Eugene L. Miller prosecuted the case. The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Kankakee Area Project Safe Neighborhoods Task Force, and the Kankakee County Major Crimes Task Force.
Solon Man Sentenced to Nearly 11 Years in Prison for Defrauding Credit UnionRead the Press Release
The former chief executive officer of Taupa Lithuanian Credit Union sentenced to nearly 11 years in prison for leading a conspiracy that defrauded the credit union out of $15 million, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland office.
Alex Spirikaitis, 52, pleaded guilty earlier this year to one count of conspiracy to commit bank fraud. Spirikaitis personally embezzled about $4.2 million from Taupa between 2001 and 2013 and used the money to build a home in Solon, obtain a luxury suite at Cleveland Browns games, and buy multiple vehicles and firearms, according to court documents.
U.S. District Judge James Gwin sentenced Spirikaitis to 130 months in prison and ordered him to pay $15 million in restitution.
“This defendant is now paying the price for stealing millions of dollars from credit union members who entrusted him,” Dettelbach said. “He lived a life of luxury based on stolen money.”
“Alex Spirikaitis spent more than a decade engaged in corrupt actions before fleeing from the home he purchased with credit union funds,” Anthony said. “The FBI is proud that this fraudster was brought to justice.”
The National Credit Union Administration and the Ohio Department of Commerce took possession of Taupa last year and placed it into receivership due to its insolvency. Taupa had about 1,150 members and assets of approximately $24 million, according to court records.
Spirikaitis used the money he embezzled buy multiple firearms, which he stored at the credit union, and a suite for Cleveland Browns games. He used Taupa’s money to purchase nine vehicles for himself and his family between 2007 and 2012, according to court records.
He also used Taupa funds to write 26 checks between November 2011 and November 2012, totaling $1,655,000, to build a home on Liberty Road in Solon, according to court records.
He also engaged in a conspiracy with several other people, and their actions led to a loss of approximately $15 million to the credit union and NCUA. Spirikaitis allowed friends and associates to overdraw their accounts by more than $1 million. He also approved loans without seeking any relevant financial information, according to court documents.
This case is being prosecuted by Assistant United States Attorney Robert J. Patton and Special Assistant United States Attorney Derek Kleinmann. The case was investigated by the Federal Bureau of Investigation.
Rochester Man Sentenced in Tax SchemeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Norman Perry, 51, of Rochester, N.Y., who was convicted of making a false claim to the United States and aggravated identity theft, was sentenced to 90 months in prison and ordered to pay restitution to the Internal Revenue Service in the amount of $135,743 by U.S. District Judge Charles J. Siragusa.
Assistant U.S. Attorney Tiffany H. Lee, who handled the case, stated that the defendant posted advertisements in Rochester claiming that he could find lost or unclaimed funds. Individuals then provided Perry with their name, address and social security number and agreed to pay the defendant a fee, generally in the amount of $300, for each $1,000 check they received. In reality, Perry used the information to prepare and file false and fraudulent tax returns with the Internal Revenue Service, claiming that the individuals had qualified educational expenditures and were entitled to receive the American Opportunity Credit, a refundable tax credit for educational expenses. None of the individuals were students, none had incurred any educational expenditures and none provided such information to Perry.
In addition, the defendant filed a false tax return with the IRS in another individual’s name, and had the check sent to an address in Rochester. The check was subsequently cashed.
The sentencing is the culmination of an investigation on the part of Special Agents of the Internal Revenue Service – Criminal Investigations, under the direction of Shantelle P. Kitchen, Acting Special Agent in Charge, New York Field Office.
Rochester Man Sentenced for Obstructing Tax LawsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that Anthony Cerame, 65, of Fairport, N.Y., who was convicted of obstructing the administration of the tax laws, was sentenced to five years probation and ordered to pay restitution to the Internal Revenue Service in the amount of $270,335. by U.S. District Judge David G. Larimer.
Assistant United States Attorney John J. Field, who handled the case, stated that Cerame engaged in a decades-long campaign to avoid paying approximately $270,000 federal income taxes, and sought to impede Special Agents of the Internal Revenue Service from performing their duties. Among other acts, the defendant used trusts and aliases to hold assets, concealed income, claimed improper deductions, instructed witnesses to withhold information from the government, and destroyed evidence. After Cerame learned of the government’s criminal investigation, he paid $200,000 of his unpaid tax obligation.
The sentencing is the culmination of an investigation by the Internal Revenue Service, Criminal Investigation Division, under the direction of Shantelle P. Kitchen, Acting Special Agent in Charge, New York Field Office.
Reno Man Sentenced to 8 Years in Prison for Traveling Across State Lines to Engage in Sexual Conduct with MinorRead the Press Release
FRESNO, Calif. — Ismael Martinez, 26, of Reno, Nevada, was sentenced today by United States District Judge Lawrence J. O'Neill to eight years and one month in prison for traveling from Reno to Fresno with the intent of engaging in illicit sexual conduct with a 14-year-old, United States Attorney Benjamin B. Wagner announced.
According to court documents, in August 2013 the parents of the minor female victim reported to the Fresno County Sheriff’s Office that they discovered text messages on a cellphone suggesting that their daughter was engaging in sexual relations with someone with a phone number with an out-of-state area code. Further investigation revealed this person to be Martinez, and that he had traveled from Reno to Fresno on multiple occasions in order to engage in sexual relations with the minor. On December 19, 2013, Martinez was indicted, and he pleaded guilty to the charge on September 15, 2014.
This case was the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Fresno County Sheriff’s Office. Assistant United States Attorney Brian W. Enos prosecuted the case.
This case was the product of an investigation by the U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and the Fresno County Sheriff's Office and the Central Valley Internet Crimes Against Children Task Force. Assistant United States Attorney Brian W. Enos prosecuted the case.
" As this case underscores, parents need to talk to their kids about how to stay safe in cyberspace — cautioning them to always think before they click," said Michael J. Toms, the acting assistant special agent in charge who oversees HSI Fresno. "Young people, who would never approach a stranger in person, think nothing of interacting with someone they don't know online. The predators who are lurking on the Internet, exploit that trust. Homeland Security Investigations will continue to aggressively target online child predators, but parents, because of their proximity, are the first line of defense."This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the United States Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood Marshals, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. Click on the “resources” tab for information about Internet Safety.
Oxygen and Sleep Therapy Company Agrees to Resolve False Claims Act AllegationsRead the Press Release
BOSTON – Regional Home Care, Inc., (d/b/a North Atlantic Medical Services) (NAMS), a durable medical equipment supplier based in Leominster, Mass., has agreed to pay $852,378 to resolve allegations that it violated the False Claims Act by submitting claims to Medicare and Medicaid for respiratory care services provided by unlicensed personnel. NAMS provides equipment and services for the treatment of respiratory ailments, such as oxygen deficiency and sleep apnea.
“This respiratory care company flouted important licensure requirements, failed to provide patients the standard of care that they deserve, and fraudulently billed the federal government for improperly rendered services,” said U.S. Attorney Carmen M. Ortiz. “With the important assistance of whistleblowers, our health care fraud team seeks to ensure patient safety and protect the public fisc.”
“Respiratory care services should be performed by properly licensed personnel,” said Acting Assistant Attorney General Joyce R. Branda for the Justice Department’s Civil Division. “We will not tolerate companies prioritizing their own profits and convenience at the expense of patient safeguards.”
The Massachusetts Department of Public Health requires respiratory therapists to meet professional licensure requirements in order to provide respiratory care. To apply for a Massachusetts license, one must first earn an Associate’s Degree in Respiratory Therapy, or its equivalent, and then, must pass a licensure examination administered by the National Board for Respiratory Care. This settlement resolves allegations that, from September 2010 through January 2013, NAMS sent unlicensed employees into patients’ homes to set up sleep apnea masks and oxygen therapy equipment. The government alleged that, even after the Massachusetts Department of Public Health informed the company that the practice was illegal, NAMS continued to use unlicensed personnel and billed Medicare and Medicaid for these services as if they had been performed by licensed personnel.
Medicaid is jointly funded by the states and federal government. The Commonwealth of Massachusetts, which paid in part for the Medicaid claims at issue, will receive $229,210 of the settlement amount.
The case was investigated by the Department of Health and Human Services, Office of the Inspector General, and the Federal Bureau of Investigation, and was handled by District of Massachusetts Assistant United States Attorneys Giselle Joffre and George Henderson and Department of Justice Trial Attorney Benjamin Young.
The claims resolved by this settlement are allegations only; there has been no determination of liability
Owner of Regional Healthcare, Llc Pleads Guilty to $2.5 Million Payroll Tax Fraud SchemeRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today that CHARLES A. LANPHIER, age 68, of Lafayette, Louisiana, has pled guilty to a Bill of Information charging him with two counts of failing to truthfully account for and pay over taxes, in violation of Title 26, United States Code, Section 7202. LANPHIER faces significant incarceration, fines, and restitution orders.
According to the factual stipulation contained in the defendant’s written plea agreement with the United States, at all relevant times, LANPHIER owned and controlled Regional Healthcare, LLC (“Regional”), a health care company with operations throughout Louisiana and Florida. Regional operated through eleven (11) different corporate entities, and provided four different types of service, including patient care assistance, home health services, extended home health service (also known as pediatric care), and hospice services.
Regional was required to collect payroll taxes from its employees, make deposits of the payroll taxes to the Internal Revenue Service (“IRS”) on a periodic basis, and file quarterly federal income tax returns. As the defendant has admitted, however, throughout the tax years 2008 through 2011, as LANPHIER was causing Regional to withhold tax payments from its employees’ paychecks, LANPHIER knowingly and willfully failed to file the quarterly employment tax returns and knowingly and willfully failed to forward payroll taxes to the IRS. In total, during the tax years 2008 through 2011, LANPHIER failed to make payments on Regional’s behalf totaling more than $2.5 million. LANPHIER’s sentencing date has not been set.
This matter is being handled by the United States Attorney’s Office for the Middle District of Louisiana and the New Orleans Office of the Internal Revenue Service, Criminal Investigations. It is being prosecuted by Assistant United States Attorney Alan A. Stevens, who serves as a Deputy Chief in the Criminal Division.
Owner of Health Care Company Sentenced to Thirteen Years in PrisonRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced that U.S. District Judge Shelly D. Dick sentenced AHAOMA BONIFACE OHIA, age 60, of Missouri City, Texas, to serve one hundred fifty six (156) months in federal prison following his conviction earlier this year on seven counts of health care fraud. OHIA was also ordered to make restitution to the Medicare program in the amount of $1,239,283.58 and pay special assessments totaling $700. OHIA was also ordered to forfeit the proceeds of his criminal activity up to an additional $1,239,283.58. Finally, following his release from prison, OHIA will be required to serve a two-year term of supervised release.
The sentence follows a four-day jury trial last June at which OHIA was convicted of perpetrating a scheme to defraud Medicare through his company, All-Star Medical Supplies, which operated in Baton Rouge, Louisiana, and Houston, Texas. The evidence at trial established that from January 2007 through February 2009, OHIA caused All-Star to submit hundreds of false and fraudulent claims to Medicare. OHIA submitted hundreds of fraudulent claims, for instance, for “brace kits,” a package of nearly a dozen different braces, in matching left- and right-side pairs, regardless of whether any of the Medicare beneficiaries named in the claims needed or had prescriptions for the items. OHIA submitted hundreds of fraudulent claims for a highly-specialized, custom-fabricated device intended to be used by amputees, without ever actually providing a single such device to his clients, none of whom needed the device anyway. Finally, as the Court determined at today’s sentencing, OHIA submitted numerous claims for expensive power wheelchairs, through which claims the defendant falsely represented that he had replaced power wheelchairs for numerous beneficiaries whose original wheelchairs, OHIA falsely claimed, had been damaged or destroyed by a hurricane. In total, and as the Court determined today, the defendant, from January 2007 through February 2009, intended to obtain more than $2.2 million through the false claims described above.
U.S. Attorney Green stated: “Today’s sentence sends one of the clearest signals yet to those who would commit health care fraud in this district. Working with our law enforcement partners, we continue to work aggressively to combat health care fraud. When we are able to bring to justice and convict fraudsters who steal substantial amounts of money from the Medicare program over extended periods of time, such as OHIA did in this case, we will seek lengthy terms of imprisonment.”
“The sentence pronounced by the Court sends a clear message to health care providers that trying to make easy money by cheating Medicare isn’t worth it. There’s nothing easy about serving thirteen years in a federal penitentiary, as I’m sure this defendant will soon find out,” said Mike Fields, Special Agent-in-Charge of the Dallas Regional Office for the U.S. Department of Health and Human Services’ Office of Inspector General.
The case was investigated by the Office of Inspector General for the U.S. Department of Health and Human Services (DHH-OIG), the Federal Bureau of Investigation (FBI), and the Medicaid Fraud Control Unit of the Louisiana State Attorney General’s Office (MFCU), and was brought as part of the Medicare Fraud Strike Force, under the supervision of the United States Attorney’s Office and the Fraud Section of the Criminal Division of the U.S. Department of Justice. This case is being prosecuted by Assistant U.S. Attorney Alan A. Stevens, who serves as a Deputy Chief of the Criminal Division, and Assistant U.S. Attorney Cam Le.
Orlando Man Sentenced to More Than Five Years in Federal Prison for Credit Card FraudRead the Press Release
Orlando, Florida – U.S. District Judge Roy B. Dalton, Jr. today sentenced Tony Frith (36, Orlando) to 5 years and 10 months in federal prison for access device fraud. He was also ordered to pay more than $469,000 in restitution to the victims of his offense. Frith pleaded guilty on June 26, 2014.
According to court documents, officers from the Orlando Police Department conducted a traffic stop of Frith’s vehicle on September 15, 2013. Pursuant to the stop, officers conducted a search the vehicle and found a backpack containing a computer, an attached encoding device, and more than 200 counterfeit credit cards. Further investigation revealed that the credit cards were counterfeit and that they had been re-encoded with stolen credit card numbers. During a subsequent examination of Frith’s computer authorities found more than 3,000 credit card numbers, as well as text files with names, dates of birth, and Social Security numbers. The total amount of actual loss associated with the counterfeit credit cards and stolen credit card numbers found in Frith’s possession is over $470,000.
This case was investigated by the Orlando Police Department and the United States Secret Service. It was prosecuted by Assistant United States Attorney Roger B. Handberg.
North Texas U.S. Attorneys Office Helps Collect More Than $17 Million in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2014Read the Press Release
DALLAS — U.S. Attorney Sarah R. Saldaña announced today that the Northern District of Texas collected $13,130,113.54 in criminal and civil actions in Fiscal Year 2014. Of this amount, $9,419,602.42 was collected in criminal actions and $3,710,511.12 was collected in civil actions.
Additionally, the Northern District of Texas worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $3,991,303.62 in cases pursued jointly with these offices. Of this amount, $101,976.45 was collected in criminal actions and $3,889,327.17 was collected in civil actions.
The District has also been successful seizing proceeds of crime for asset forfeiture. For the first three quarters of FY 2014, working with partner agencies and divisions, the office collected more than $35 million in asset forfeiture actions.
“This District is dedicated not only to protecting the public, but to recovering funds for victims of federal crimes and the federal treasury,” said U.S. Attorney Saldaña. “These statistics show this office’s commitment to recover ill-gotten gains from those who violate federal criminal and civil laws so that funds can be restored to crime victims and a variety of law enforcement programs can be funded.”
Substantial collections in the District in FY 2014 include:
• $1 million in forfeited assets restored as restitution, and disbursed to hundreds of victims in U.S. v. Gregory Rand, et al., an oil and gas investment fraud case;
• $1.125 million civil settlement paid by Kwik Industries, Inc., for falsified loan applications a former employee made to the Small Business Administration (SBA), plus $176,000 recovered from the former employee was disbursed to the SBA and other lenders who were victims in U.S. v. Janice Stallons, after the Fifth Circuit affirmed the garnishment of her accounts;
• $525,000 in fines paid by defendants in U.S. v. Califco, LLC and Jonathan Shokrian, for shoddy asbestos removal from a shopping center in Irving, Texas;
• $340,000 garnished from multiple bank and retirement accounts of Cyprian Akamnonu, the first convicted defendant in the massive health care fraud case, U.S. v. Jacques Roy, et al.;
• $300,000 in restitution to 39 victims of convicted securities fraudster Jason Kosova; and
• $255,000 garnished from the business of Travis Atterberry on a 17-year-old bank fraud judgment. .
Last month, Attorney General Eric Holder announced that the Justice Department collected $24.7 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2014. The more than $24 billion in collections in FY 2014 represents nearly eight and a half times the appropriated $2.91 billion budget for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period.
“Every day, the Justice Department’s federal prosecutors and trial attorneys work hard to protect our citizens, to safeguard precious taxpayer resources, and to provide a valuable return on investment to the American people,” said Attorney General Eric Holder. “Their diligent efforts are enabling us to achieve justice and recoup losses in virtually every sector of the U.S. economy. And this result shows the fruits of the Justice Department’s tireless work in enforcing federal laws; in protecting the American people from violent crime, national security threats, discrimination, exploitation, and abuse; and in holding financial institutions accountable for their roles in causing the 2008 financial crisis.”
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
Newton County Former Youth Pastor Sentenced for Child PornographyRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – A 23-year-old former youth pastor has been sentenced to federal prison for child pornography violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Trevion Lechay Ethridge, of Newton, Texas, pleaded guilty on June 3, 2014 to production of child pornography and was sentenced to 280 months in federal prison today by U.S. District Judge Ron Clark.According to information presented in court, from November 2012 to March 2013, while Ethridge was the youth pastor at a Newton County church, he persuaded a minor to video and photograph pornographic images and to send the pornography to Ethridge via smart phone. Ethridge was indicted by a federal grand jury on Oct. 3, 2013. Trial began in this case on May 12, 2014 and was recessed after two days. Trial resumed on June 3, 2014, at which time Ethridge changed his plea to guilty and under oath, admitted to sending the minor pornographic images and videos of himself and enticing the minor to send pornographic images and videos in return.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the ICE-HSI, the Newton Police Department and the Beaumont Police Department and prosecuted by Assistant U.S. Attorneys Randall L. Fluke and Lauren Gaston.
New London Man Admits Unlawfully Possessing Ammunition in Connection with New London ShootingRead the Press Release
Follow @USAO_CT
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that WEST ROBERTSON, also known as “Po,” 32, of New London, pleaded guilty today before U.S. District Judge Vanessa L. Bryant in Hartford to unlawfully possessing ammunition in connection with a recent shooting in New London.
According to court documents and statements made in court, on May 29, 2014, in the vicinity of Maple Avenue in New London, ROBERTSON became involved in an altercation with another individual and shot the victim several times. ROBERTSON then fled the scene.
The victim’s injuries were not life-threatening.
Eyewitness accounts identified ROBERTSON as the shooter, and a video surveillance camera captured his girlfriend’s car fleeing the scene of the shooting. Police also recovered ammunition shell casings in the Maple Avenue area.
ROBERTSON was arrested on June 6, 2014. The firearm he used in the shooting was later recovered.
ROBERTSON has multiple state felony convictions including those for robbery, kidnapping and possession of narcotics. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
ROBERTSON pleaded guilty to one count of being a felon in possession of ammunition. At sentencing, ROBERTSON faces up to 10 years of imprisonment. A sentencing date has not been scheduled.
ROBERTSON has been detained since his arrest.
This matter is being investigated by the New London Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives, with the assistance of the Connecticut State Police. The case is being prosecuted by Assistant U.S. Attorney Sarah Karwan.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Minot Man Sentenced for Possession of Firearm & Ammunition by Convicted FelonRead the Press Release
BISMARCK – U.S. Attorney Timothy Q. Purdon announced that on December 1, 2014, Samuel Davis Everson III, 48, Minot, N.D., was sentenced by U.S. District Judge Daniel L. Hovland on a charge of possession of firearm and ammunition by a convicted felon. Everson pleaded guilty to the charge on
September 5, 2014.Judge Hovland sentenced Everson to serve 15 years in federal prison, to be followed by five years of supervised release. Everson was ordered to pay a $100 special assessment to the Crime Victim’s Fund.
On January 30, 2013, Everson was stopped for a traffic offense by an officer with the McKenzie County Sheriff’s Department. After smelling the odor of marijuana coming from the vehicle and after Everson was arrested for driving under suspension, a law enforcement search resulted in the discovery of a loaded 9mm caliber handgun.
On October 7, 2013, Everson was arrested at his residence in Minot, N.D., on a Montana federal warrant for conspiracy to distribute methamphetamine. During that arrest, a .357/.38 caliber revolver was located in a nightstand in his bedroom.
Everson was prohibited from possessing a firearm by virtue of his eleven prior felony convictions. Due to the fact that three or more of these convictions were “serious drug offense” convictions, the federal firearm offense carried a maximum penalty of life imprisonment, and a minimum mandatory sentence of 15 years in federal prison.
In February 2014, Everson was convicted of the drug offense in United States District Court in the District of Montana and sentenced to 14 years in federal prison. The 15-year North Dakota federal sentence was imposed to run concurrently to the undischarged term of imprisonment on the Montana conviction.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives, the Drug Enforcement Administration, the McKenzie County Sheriff’s Office, the North Dakota Bureau of Criminal Investigation, the Minot Police Department and the Minot Drug Task Force.
Assistant U.S. Attorney David Hagler prosecuted the case.
Maricopa County Community College District Agrees to Pay $4 Million for Alleged False Claims Related to Award of AmeriCorps Education AwardsRead the Press Release
Maricopa County Community College District (MCCCD) has agreed to pay $4.08 million to resolve allegations under the False Claims Act that it submitted false claims to the Corporation for National and Community Service (CNCS) concerning AmeriCorps state and national grants, the Justice Department announced today. MCCCD is the entity responsible for operating community colleges in Maricopa County, Arizona, and is based in Phoenix.
“Those who receive federal funds must deal with the government openly and honestly,” said Acting Assistant Attorney General Joyce R. Branda for the Justice Department’s Civil Division. “The Department of Justice will ensure that financial assistance provided by the Corporation for National and Community Service is received only by eligible individuals who satisfy CNCS’s mission of promoting service and education.”
CNCS is an independent federal agency that administers AmeriCorps, among other national service programs. MCCCD obtained AmeriCorps funding for Project Ayuda, a program that proposed to engage students in national service. In order to receive an AmeriCorps education award, a student had to meet certain service-hour requirements. MCCCD allegedly improperly certified that students had completed the required number of service hours so that they would earn an education award. This resulted in CNCS providing education awards to these students. MCCCD also allegedly improperly received grant funds from CNCS to administer the project.
“Our internal process uncovered MCCCD’s mismanagement, and we worked with the Justice Department to ensure that taxpayer dollars were recovered,” said CNCS’s General Counsel Valerie Green. “This is an example of how interagency collaboration works.”
“Taxpayers are justifiably outraged when a community fails to receive promised services because national service funds were misused,” said CNCS’s Inspector General Deborah J. Jeffrey. “We hope that this settlement will deter other grantees from similar misconduct.”
The allegations resolved by this settlement arose from a whistleblower lawsuit filed under the False Claims Act by Christine Hunt, an MCCCD employee. Under the False Claims Act, private citizens can sue on behalf of the government and share in any recovery. Hunt’s share of the settlement is $775,827.
This case was handled by the Commercial Litigation Branch of the Civil Division and CNCS’s Office of Inspector General and Office of General Counsel.
The lawsuit is captioned United States ex rel. Hunt v. Maricopa County Community College District; Paula and Richard Vaughn, No. 11-cv-2241 (D. Ariz.). The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Managing Director Sentenced for Investment Fraud and EmbezzlementRead the Press Release
SAN DIEGO – United States Attorney Laura E. Duffy announced that Walter Andrew Mills, 45, of San Diego County was sentenced today to 30 months in prison for investment fraud and embezzlement.
U.S. District Court Judge Roger T. Benitez also ordered Mills to pay $844,800 in restitution.
Mills pleaded guilty to wire fraud on June 6, 2014. According to court documents and his admissions, Mills fraudulently convinced a victim to invest $419,800 in Mills’ company, Cabrillo Investment Group, LLC, by concealing the fact that the victim’s previous investments in HessGen, Inc. had been misappropriated. Upon receiving the investment, Mills diverted a significant portion of the money to his own personal use.
As part of a larger scheme, between November 5, 2010, and March 26, 2012, Mills convinced additional victims to invest $425,000 in HessGen and another company, Smart Gaming Software, knowing that a significant portion of the money would not be used for the purposes represented. Mills similarly diverted a significant portion of those funds to his own personal use.
“The defendant cheated investors out of hundreds of thousands of dollars and now he is being held to account,” said U.S. Attorney Laura Duffy. “The victims placed their faith and financial futures in the hands of a man who thought only of himself.”
FBI Special Agent in Charge Eric S. Birnbaum commented, “Mr. Mills violated the trust of the people who had faith in him and the ones he was supposed to serve. The FBI is committed to holding those accountable who abuse their position of trust for the sole purpose of unlawfully enriching themselves.”
DEFENDANTS Case Number: 14-cr-01576-BEN Walter Andrew Mills Age: 45 San Diego, California CHARGESWire Fraud – Title 18, U.S.C., Section 1343
INVESTIGATING AGENCY
Maximum penalty: 20 years’ imprisonment and $250,000 fineFederal Bureau of Investigation
Man Sentenced to Prison for Passport Fraud and Social Security FraudRead the Press Release
A man who illegally obtained a passport and social security benefits was sentenced on November 25, 2014, to 12 months’ imprisonment.
Raymundo Sierra-Mendez, age 71, from Mexico, received the prison term after a September 18, 2014, guilty plea to one count of social security fraud and one count of passport fraud.
In a plea agreement, Sierra-Mendez admitted he used a fraudulent name, social security card and birth certificate to obtain a United States passport in 2008. He also applied for and obtained social security benefits in 2008, with the same documents.
Sierra-Mendez was sentenced in Sioux City by United States District Court Judge Mark W. Bennett. Sierra-Mendez was sentenced to 12 months’ imprisonment. He must also serve a 1-year term of supervised release. There is no parole in the federal system.
The case was prosecuted by Assistant United States Attorney Kevin C. Fletcher and investigated by HSI and the Enforcement and Removal Office of the Immigration and Customs Enforcement Bureau.
Court file information is available at https//ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 14-CR-4053.Man Sentenced to Prison for Illegal Re-entryRead the Press Release
A man who re-entered the United States following a felony conviction was sentenced on November 18, 2014, to 7 months’ imprisonment.
Jose Santillanes-Barraza, age 43, from Mexico, received the prison term after a June 17, 2014, guilty plea to one count of illegal re-entry as a felon.
At the guilty plea, Santillanes-Barraza admitted he had re-entered the United States without permission after being removed from the country on December 1, 2010. On August 26, 2010, Santillanes-Barraza was convicted of tampering with records in the Iowa District Court, Buena Vista County. Santillanes-Barraza came to the attention of Homeland Security Investigations (HSI) after he was arrested on April 30, 2014, in Hancock County, Iowa for OWI.
Santillanes-Barraza was sentenced in Sioux City by United States District Court Judge Mark W. Bennett. Santillanes-Barraza was sentenced to 7 months’ imprisonment. He must also serve a 3-year term of supervised release. There is no parole in the federal system.
The case was prosecuted by Assistant United States Attorney Kevin C. Fletcher and investigated by HSI and the Enforcement and Removal Office of the Immigration and Customs Enforcement Bureau.
Court file information is available at https//ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 14-CR-3027.Man Sentenced to Prison for Illegal Re-entryRead the Press Release
A man who re-entered the United States following a felony conviction was sentenced on November 18, 2014, to 54 months’ imprisonment.
Esteban Fuego-Sanchez, age 42, from Guatemala, received the prison term after an August 15, 2014, guilty plea to one count of illegal re-entry as an aggravated felon.
At the guilty plea, Fuego-Sanchez admitted he had re-entered the United States without permission after being removed from the country on October 2, 2004. On September 28, 1995, Fuego-Sanchez was convicted of theft of property, a felony, in Jefferson County, Arkansas. Fuego-Sanchez came to the attention of Homeland Security Investigations (HSI) after he was arrested on June 18, 2014, in Wright County, Iowa for driving without a license.
Fuego-Sanchez was sentenced in Sioux City by United States District Court Judge Mark W. Bennett. Fuego-Sanchez was sentenced to 54 months’ imprisonment. He must also serve a 3-year term of supervised release. A special assessment of $100 was imposed. There is no parole in the federal system.
The case was prosecuted by Assistant United States Attorney Kevin C. Fletcher and investigated by HSI and the Enforcement and Removal Office of the Immigration and Customs Enforcement Bureau.
Court file information is available at https//ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 14-CR-3038.Man Sentenced to Prison for Illegal Re-entryRead the Press Release
A man who re-entered the United States illegally was sentenced on November 20, 2014, to 4 months in prison.
David Ordonez-Lopez, age 20, from Guatemala, received the prison term after a September 22, 2014, guilty plea to one count of illegal re-entry.
At the guilty plea, Ordonez-Lopez admitted he had re-entered the United States without permission after being removed from the country on October 31, 2012. Ordonez-Lopez came to the attention of Homeland Security Investigations’ (HSI) on July 15, 2014, after he was arrested for OWI in Wright County, Iowa.
Ordonez-Lopez was sentenced in Sioux City by United States District Court Judge Mark W. Bennett. Ordonez-Lopez was sentenced to 4 months’ imprisonment. He must also serve a 1-year term of supervised release. There is no parole in the federal system.
The case was prosecuted by Assistant United States Attorney Kevin C. Fletcher and investigated by HSI and the Enforcement and Removal Office of the Immigration and Customs Enforcement Bureau.
Court file information is available at https//ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 14-CR-3044.Johnstown Man Pleads Guilty to Distributing Crack CocaineRead the Press Release
JOHNSTOWN, Pa. - A resident of Johnstown, Pa., pleaded guilty in federal court to a charge of distribution of cocaine base, in the form commonly known as "crack," United States Attorney David J. Hickton announced today.
John D. Malden, 40, pleaded guilty to one count before United States District Judge Kim R. Gibson.
In connection with the guilty plea, the court was advised that on April 25, 2013, Malden distributed less than 28 grams of crack cocaine.
Judge Gibson scheduled sentencing for April 9, 2015, at 10 a.m. The law provides for a total sentence of 20 years in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney John J. Valkovci, Jr., is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Cambria County Drug Task Force conducted the investigation that led to the prosecution of Malden.
Jayne Concialdi Imprisoned for White River Junction EmbezzlementRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that Jayne Concialdi, 51, a former resident of Quechee who now lives in Connecticut, was sentenced today in United States District Court in Burlington to 18 months of imprisonment following her guilty plea to a charge of wire fraud. U.S. District Judge William K. Sessions III also ordered that Concialdi serve three years of supervised release following her prison term and pay restitution of more than $129,000. The court directed Concialdi to surrender to the Bureau of Prisons on January 6 to begin serving her sentence.
Last July 24, Concialdi pled guilty to an information charging her with wire fraud. According to the information, Concialdi was employed as an administrative assistant to the treasurer of New England Research, Inc., a company in White River which specializes in the measurement and interpretation of rock properties for the energy industry. Concialdi had bookkeeping responsibilities. Between 2011 and early 2014, Concialdi misappropriated about $129,000 from her employer, primarily by using company funds to pay her personal credit card obligations. The defendant also misused company credit cards to make purchases for her own benefit. NERI uncovered the embezzlement this past February.
This case was investigated by the Hartford Police Department and the Federal Bureau of Investigation.
Concialdi is represented by Jordana Levine. The prosecutor is Assistant U.S. Attorney Gregory Waples.
Hinesburg Man Sentenced to Prison for Child Pornography OffenseRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Gregory Brusso, 57, of Hinesburg, Vermont, was sentenced on December 1, 2014, in United States District Court in Burlington, Vermont, to serve 18-months imprisonment and a five-year period of supervised release following his conviction on one count of possession of child pornography, in violation of 18 U.S.C. § 2252(a)(4)(B). Judge William K. Sessions III also ordered Brusso to pay a $100 special assessment.
According to court records and proceedings, Brusso, a former member of the Vermont Air National Guard, ordered a DVD containing child pornography from what he thought was a company that had such materials for sale. This company was actually an undercover operation being run by the U.S. Postal Inspection Service. After Brusso accepted delivery of the DVD at his residence, Postal Inspectors executed a search warrant and confiscated his computer. A forensic examination of the computer revealed the presence of images of child pornography on it.
In 2003, Brusso was identified through his credit card history as having made purchases at three websites known to sell child pornography. In 2008, law enforcement investigated Brusso for allegedly uploading an image of child pornography to an Internet group run by Yahoo!.
United States Attorney Coffin commended the efforts of the United States Postal Inspection Service in the prosecution of Brusso. The prosecution of Brusso was handled by Assistant U.S. Attorney Barbara A. Masterson. Brusso was represented by Richard C. Bothfeld.
U.S. Attorney Coffin noted that this prosecution is part of the U.S. Department of Justice=s Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney=s Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Government Settles False Claims Act Allegations Against Oxygen and Sleep Therapy CompanyRead the Press Release
North Atlantic Medical Services Inc. (NAMS), doing business as Regional Home Care Inc., has agreed to pay $852,378 to resolve allegations that it violated the False Claims Act by submitting claims to Medicare and Medicaid for respiratory therapy services provided by unlicensed personnel, the Department of Justice announced today. NAMS is a medical device company based in Massachusetts that provides equipment and services for the treatment of respiratory ailments, such as oxygen deficiency and sleep apnea.
“Respiratory care services should be performed by properly licensed personnel,” said Acting Assistant Attorney General Joyce R. Branda for the Civil Division. “We will not tolerate companies prioritizing their own profits and convenience at the expense of patient safeguards.”
Medicare and Medicaid require suppliers of respiratory therapy equipment and services to comply with state licensing standards. In Massachusetts, the Department of Public Health requires respiratory therapists to apply for and obtain a license. Applicants can do so by passing the National Board for Respiratory Care’s “Certification Examination for Entry-Level Respiratory Therapy Practitioners” or obtaining a reciprocal license from a different jurisdiction. This settlement resolves allegations that, from September 2010 to January 2013, NAMS used unlicensed employees to set up sleep apnea masks and oxygen therapy equipment for patients in Massachusetts. The government alleged that, even after the Massachusetts Department of Public Health informed the company that the practice was illegal, NAMS continued to use unlicensed personnel and bill Medicare and Medicaid for these services.
“This respiratory care company flouted important licensure requirements, failed to provide patients the standard of care that they deserve and fraudulently billed the federal government for improperly rendered services,” said U.S. Attorney Carmen M. Ortiz for the District of Massachusetts. “With the important assistance of whistleblowers, our health care fraud team seeks to ensure patient safety and protect the public fisc.”
“To safeguard patient health and ensure that taxpayer money is spent well, Medicare and Medicaid require providers of respiratory care services to follow state licensure rules,” said Special Agent in Charge Phillip M. Coyne for the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “Companies seeking to boost profits by using unlicensed personnel will be held accountable for their actions.”
Medicaid is jointly funded by the states and federal government. The Commonwealth of Massachusetts, which paid in part for the Medicaid claims at issue, will receive $229,210 of the settlement amount.
The government’s investigation was initiated by a qui tam, or whistleblower, lawsuit filed under the False Claims Act by former NAMS employees Konstantinos Gakis and Demetri Papageorgiou. The False Claims Act allows private citizens to file suit for false claims on behalf of the government and to share in the government’s recovery. Gakis and Papageorgiou will receive $153,428.
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 $23.2 billion through False Claims Act cases, with more than $14.9 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 District of Massachusetts, FBI, HHS-OIG, and the Commonwealth of Massachusetts.
The case is captioned United States ex rel. John Does v. Regional Home Care, Inc. d/b/a North Atlantic Medical also d/b/a North Atlantic Medical Tolman Clinical Laboratory and as North Atlantic Medical Services, Docket No. 12-CA-11979 (D. Mass.). The claims resolved by this settlement are allegations only, and there has been no determination of liability.
Fort Yates Man Sentenced of Sexual AssaultRead the Press Release
BISMARCK – U.S. Attorney Timothy Q. Purdon announced that on December 1, 2014, Austin Agard, Age 28, of Fort Yates ND, was sentenced by U.S. District Judge Daniel L. Hovland on a charge of Sexual Assault when he, Agard, performed sexual acts on a person incapable of declining participation in the act.
Judge Hovland sentenced Agard to serve 70 months imprisonment, to be followed by five years supervised probation.
The case was investigated by the Bureau of Indian Affairs.
Assistant U.S. Attorney Gary Delorme prosecuted the case.
Former Ohio Deputy Treasurer and Friend Sentenced for Roles in Bribery and Money Laundering SchemeRead the Press Release
Ohio’s former deputy treasurer and a Chicago businessman were sentenced to federal prison today for their roles in a bribery and money laundering scheme involving the Ohio Treasurer’s Office.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, First Assistant U.S. Attorney Mark T. D’Alessandro of the Southern District of Ohio, Acting Special Agent in Charge John A. Barrios of the FBI’s Cincinnati Division and Attorney General Mike DeWine of Ohio made the announcement.
Amer Ahmad, 40, and Joseph Chiavaroli, 34, both of Chicago, were sentenced today by U.S. District Judge Michael H. Watson of the Southern District of Ohio to serve 15 years in prison and 18 months in prison, respectively. Ahmad was ordered to forfeit $3.2 million, and Chiavroli was ordered to forfeit $400,000. Last year, Ahmad pleaded guilty to federal program bribery and conspiracy to commit honest services wire fraud, federal program bribery and money laundering, and Chiavaroli pleaded guilty to money laundering. Following his guilty plea, former Deputy Treasurer Ahmad fled to Pakistan and was sentenced today in absentia. He is currently in Pakistani custody pending an extradition request from the United States government.
According to the defendants’ admissions in connection with their guilty pleas, from January 2009 through January 2011, Ahmad used his position as deputy treasurer to direct official state of Ohio business to securities broker Douglas E. Hampton in return for bribes. Ahmad and Chiavaroli concealed the payments received from Hampton by passing them through the accounts of their landscaping business. Hampton also funneled more than $123,000 to Mohammed Noure Alo, an attorney and lobbyist who was Ahmad’s close personal friend and business associate. Over the course of the scheme, Hampton paid in excess of $500,000 in bribes and received, in exchange, approximately $3.2 million in commissions for 360 securities trades on behalf of the Ohio Treasurer’s Office.
Hampton and Alo were sentenced on Nov. 12, 2014, and Nov. 13, 2014, to 45 months in prison and 48 months in prison, respectively, for their roles in the scheme.
The case was investigated by the FBI’s Central Ohio Public Corruption Task Force, which includes special agents from the FBI and the Ohio Bureau of Criminal Investigation. The case is being prosecuted by Trial Attorneys Eric L. Gibson and Menaka Kalaskar of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Douglas W. Squires of the Southern District of Ohio.
Former Mitsuba Executive Agrees to Plead Guilty to Bid Rigging and Price Fixing on Automobile Parts Installed in U.S. CarsRead the Press Release
A former executive of Japan-based Mitsuba Corporation has agreed to plead guilty and serve 13 months in a U.S. prison for conspiring to fix the prices of products installed in cars sold in the United States and elsewhere, the Department of Justice announced today.
A one-count felony charge was filed today in the U.S. District Court for the Eastern District of Michigan in Detroit against Kazumi Umahashi, a Japanese national and former General Manager of Mitsuba. Umahashi conspired from in or about June 2005 to in or about December 2009 by agreeing upon bids and prices for, and allocating the supply of, windshield wiper systems and starter motors sold to Honda Motor Co. Ltd. and its subsidiaries and affiliates in the United States and elsewhere, according to the charge. Umahashi also has agreed to pay a $20,000 criminal fine and cooperate with the department’s ongoing investigation. The plea agreement is subject to court approval.
“The Antitrust Division has uncovered dozens of conspiracies to fix prices in the automotive industry,” said Brent Snyder, Deputy Assistant Attorney General for the Antitrust Division’s criminal enforcement program. “The impact of these schemes has affected nearly every American. We will continue our efforts to hold culpable companies and individuals accountable for their illegal actions.”
Mitsuba manufactures and sells a variety of automotive parts, including starter motors, which are small electric motors used in internal combustion engines, and windshield wiper systems. On Nov. 6, 2013, Mitsuba pleaded guilty for its involvement in the conspiracy and agreed to pay $135 million in criminal fines.
Umahashi is charged with price fixing and bid rigging in violation of the Sherman Act, which carries a maximum sentence for individuals of 10 years and a fine of $1 million. The maximum fine for an individual may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.
Including today’s charges, 48 individuals have been charged in the department’s ongoing investigation into price fixing and bid rigging in the auto parts industry. Additionally, 32 companies have pleaded guilty or agreed to plead guilty and have agreed to pay a total of more than $2.4 billion in fines.
This prosecution arose from an ongoing federal antitrust investigation into price fixing, bid rigging, and other anticompetitive conduct in the automotive parts industry, which is being conducted by the Antitrust Division’s criminal enforcement sections and the FBI. Today’s charge was brought by the Antitrust Division’s Washington Criminal I Section with the assistance of the FBI’s Detroit Field Office and the FBI headquarters’ International Corruption Unit. Anyone with information on price fixing, bid rigging and other anticompetitive conduct related to other products in the automotive parts industry should contact the Antitrust Division’s Citizen Complaint Center at 888-647-3258, visit www.justice.gov/atr/contact/newcase.html, or call the Detroit Field Office of the FBI at 313-965-2323.
Former Builder's Release from Federal Prison Revoked Following More Complaints of FraudRead the Press Release
TOPEKA, KAN. – A federal judge has found former Kansas City builder F. Jeffrey Miller violated the terms of his release from federal prison after hearing evidence Miller was involved in a new real estate scam, U.S. Attorney Barry Grissom said Monday.
In a 16-page order dated Nov. 26, U.S. District Judge Julie A. Robinson cited evidence that Miller lied to his probation officer about his involvement with his son, Brandon, in a company called Tri-States Holding, LLC (TSH). She cited “substantial evidence about the fraudulent practices and transactions” by the company.
Miller, 53, will remain in custody awaiting sentencing. Miller was convicted by a jury of conspiracy to commit bank fraud, money laundering and criminal contempt. In August 2012, he was sentenced to 72 months in federal prison. He began supervised release Jan. 10, 2014.
During sentencing hearings, prosecutors submitted evidence that Miller began planning the new business while he was in prison. He formed the new company with his 23-year-old son, Brandon. Although Brandon Miller was represented as the owner, his father controlled the company. The Millers claimed to be in business to buy, refurbish and sell houses. In fact, Judge Robinson said in her order, the business was engaged in a “contract for deed scam.”
The company purchased more than 40 houses at Jackson County, Mo., tax sales and then advertised the houses for sale to low-income people in the urban core of Kansas City. The company advertised home ownership for just $500 down, sweat equity of no more than $2,000 in the form of cosmetic repairs including painting and clean up, and then monthly payments of $399. The buyers signed contracts for purchase prices in the $35,000 range.
Prosecutors presented evidence the company failed to complete promised repairs, performing shoddy repairs or virtually no repairs at all and then harassed and threatened buyers who ceased to make payments.
Judge Robinson ruled Miller violated four conditions of his supervised release by:
- Controlling the new company even though he was prohibited from working in any capacity involving authority in financial matters.
- Telling his probation officer that that he was a mere laborer at the new company when in fact he controlled the company.
- Making false monthly reports to the probation office that he was not committing any federal crimes.
- Making threats of bodily harm to a woman who purchased a house from the new company.
Miller is scheduled for sentencing Dec. 15 in U.S. District Court in Topeka.
Former Branch Manager of Bank Pleads Guilty in Manhattan Federal Court to Cashing over $400,000 in Fraudulently Obtained Tax Refund ChecksRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Shantelle P. Kitchen, Acting Special Agent in Charge of the New York Office of the Internal Revenue Service, Criminal Investigation Division (“IRS-CID”), and James T. Hayes, Jr., the Special Agent in Charge of the New York Field Office of the U.S. Immigration and Customs Enforcement’s (“ICE”) Homeland Security Investigations (“HSI”), announced that EDWIN MEJIA pled guilty today to participating in a scheme to cash more than $400,000 in fraudulently obtained federal tax refund checks issued in other people’s names. MEJIA was arrested in March 2014 and pled guilty today before U.S. District Judge Paul A. Engelmayer.
According to the allegations in the Complaint and Information filed in Manhattan federal court, and statements made during today’s plea proceeding:
Until approximately March 2014, MEJIA worked at branches of a bank (“Bank-1”) in Yonkers and Manhattan. MEJIA initially was a banker and later became the branch manager of multiple branches of Bank-1. From approximately 2010 through 2013, MEJIA participated in a scheme to fraudulently obtain and cash tax refund checks issued by the United States Treasury. The fraudulent refund checks were generated by the filing of false and fraudulent tax returns in the names of other people (the “purported filers”), and the checks were made payable to the purported filers. As part of this scheme, MEJIA helped facilitate the cashing of the fraudulent refund checks.
In particular, MEJIA obtained personal identification information for the purported filers, including their Social Security numbers and dates of birth. MEJIA then cashed the fraudulent checks himself or by paying a co-conspirator to do so. When cashing a fraudulent check himself, MEJIA presented the refund check, along with the corresponding Social Security number and date of birth of the purported filer, to a complicit bank employee. Other times, MEJIA paid a co-conspirator to open bank accounts in the names of the purported filers and cash the checks. As part of the scheme, MEJIA cashed, or caused others to cash, more than $400,000 in fraudulent Treasury checks.
* * *
MEJIA, 31, of Yonkers, New York, pled guilty to one count of theft of public funds, which carries a maximum sentence of 10 years in prison, and one count of aggravated identity theft, which carries a mandatory consecutive sentence of two years in prison. The statutory minimum and maximum sentences are prescribed by Congress and are provided here for informational purposes, as any sentencing of the defendant will be determined by the judge. As part of his plea, MEJIA also agreed to pay $442,642.58 in forfeiture. He is scheduled to be sentenced by Judge Engelmayer on March 12, 2015, at 2:15 p.m.
Mr. Bharara praised the outstanding efforts of IRS-CID and HSI in the investigation.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Jonathan Cohen is in charge of the prosecution.
14-345
Edwin Mejia Information
Former Branch Manager of Bank Pleads Guilty in Manhattan Federal Court to Cashing over $400,000 in Fraudulently Obtained Tax Refund ChecksRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Shantelle P. Kitchen, Acting Special Agent in Charge of the New York Office of the Internal Revenue Service, Criminal Investigation Division (“IRS-CID”), and James T. Hayes, Jr., the Special Agent in Charge of the New York Field Office of the U.S. Immigration and Customs Enforcement’s (“ICE”) Homeland Security Investigations (“HSI”), announced that EDWIN MEJIA pled guilty today to participating in a scheme to cash more than $400,000 in fraudulently obtained federal tax refund checks issued in other people’s names. MEJIA was arrested in March 2014 and pled guilty today before U.S. District Judge Paul A. Engelmayer.
According to the allegations in the Complaint and Information filed in Manhattan federal court, and statements made during today’s plea proceeding:
Until approximately March 2014, MEJIA worked at branches of a bank (“Bank-1”) in Yonkers and Manhattan. MEJIA initially was a banker and later became the branch manager of multiple branches of Bank-1. From approximately 2010 through 2013, MEJIA participated in a scheme to fraudulently obtain and cash tax refund checks issued by the United States Treasury. The fraudulent refund checks were generated by the filing of false and fraudulent tax returns in the names of other people (the “purported filers”), and the checks were made payable to the purported filers. As part of this scheme, MEJIA helped facilitate the cashing of the fraudulent refund checks.
In particular, MEJIA obtained personal identification information for the purported filers, including their Social Security numbers and dates of birth. MEJIA then cashed the fraudulent checks himself or by paying a co-conspirator to do so. When cashing a fraudulent check himself, MEJIA presented the refund check, along with the corresponding Social Security number and date of birth of the purported filer, to a complicit bank employee. Other times, MEJIA paid a co-conspirator to open bank accounts in the names of the purported filers and cash the checks. As part of the scheme, MEJIA cashed, or caused others to cash, more than $400,000 in fraudulent Treasury checks.
MEJIA, 31, of Yonkers, New York, pled guilty to one count of theft of public funds, which carries a maximum sentence of 10 years in prison, and one count of aggravated identity theft, which carries a mandatory consecutive sentence of two years in prison. The statutory minimum and maximum sentences are prescribed by Congress and are provided here for informational purposes, as any sentencing of the defendant will be determined by the judge. As part of his plea, MEJIA also agreed to pay $442,642.58 in forfeiture. He is scheduled to be sentenced by Judge Engelmayer on March 12, 2015, at 2:15 p.m.
Mr. Bharara praised the outstanding efforts of IRS-CID and HSI in the investigation.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Jonathan Cohen is in charge of the prosecution.
Final Four Members of Major Heroin Distribution Ring Plead GuiltyRead the Press Release
HARRISONBURG, VIRGINIA – The final four members of a heroin distribution ring that brought hundreds of grams of heroin per week into the Winchester area, pled guilty late last week in the United States District Court for the Western District of Virginia in Harrisonburg to federal drug conspiracy charges. In all, the conspiracy brought multiple kilograms of heroin into the area during the life of the conspiracy.
In all, thirteen individuals have been convicted of drug distribution conspiracy and an additional defendant from New York has been arrested and charged via federal criminal complaint.
“Mr. Jones and his co-conspirators supervised a significant illegal business that imported heroin from New York and distributed it across Virginia,” United States Attorney Timothy J. Heaphy said today. “We will continue to do all we can to identify patterns of heroin trafficking and dismantle the criminal conspiracies that bring this poison into our communities. We must also do all we can to enhance prevention efforts and provide treatment services to those struggling with addiction. A comprehensive approach is essential if we are going to stem the tide of heroin abuse in our communities.”
“This is another excellent example of Inter-Agency cooperation in eradicating a violent and dangerous drug gang. I commend the courage and dedication of all the agents and officers, whether they be ATF, State or Local, who worked so diligently on this investigation to bring it to its successful conclusion” said Charles E. Smith, Special Agent in Charge of the Washington Field Division. “It is part and parcel of ATF’s “Frontline Initiative” which concerns the investigating and targeting of the most violent and destructive elements of society today.”
As of last week, thirteen defendants have pled guilty to drug distribution conspiracy charges. Those defendants who have pled guilty are as follows:
- Ronny Maurice Jones, 37, of Woodstock, Virginia
- Kareem Allen Shaw, 39, of Oxon Hill, Maryland
- Columbus Butler, 59, of Edinburg, Virginia
- Charles William Smith Jr., 47, of Edinburg, Virginia
- Joshua Adam Pettyjohn, 29, of Woodstock, Virginia
- Logan Montgomery Rose, 26, of Woodstock, Virginia
- Arthur Marquinton Ronnelle Kinnard, 29, of Winchester, Virginia
- Ashton Grace Kern, 23, of Strasburg, Virginia
- Francis D. Alvarez, 38, of Woodstock, Virginia
- Arthur Sean Bailey, 36, of Sterling, Virginia
- Kimberle Ann Hodsden, 31, of Stafford, Virginia
- Keith Thomas Marshall, 39, of Reston, Virginia
- Ryan Kenneth McQuinn, 28, of Stafford, Virginia
In addition, Matthew Santiago, of New York, has been arrested and charged via a federal indictment with heroin distribution conspiracy charges.
According to evidence presented at various hearings by Assistant United States Attorney Donald Wolthuis, Jones and Shaw were major heroin cocaine distributors in the western and eastern districts of Virginia. Jones supplied heroin to sub-distributors for locations in the Western District of Virginia (Rockingham County, Frederick County, Shenandoah County, Page County, Warren County) while Shaw controlled the flow of heroin to locations in the Eastern District of Virginia (Prince William County, Stafford County).
The United States has put forth evidence that Jones was bringing approximately 80-150 grams of heroin into the Western District of Virginia each week. Shaw, operating in the Eastern District of Virginia, was bringing in hundreds grams of heroin each week. In addition to charges again Jones, Shaw and their local sub-distributors, the United States Attorney’s Office for the Western District of Virginia has also arrested and charged, via a federal indictment, Matthew Santiago, the man charged as the source of heroin for both Jones and Shaw.
In addition, several firearms were recovered as part of the investigation, including one stolen pistol from Shenandoah County.
The investigation of this case was conducted by the Martinsburg Field Office of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Washington Field Division, the Virginia State Police’s Northwest Virginia Regional Drug Task Force and RUSH Drug Task Force and the Stafford County Special Investigation Unit. Assistant United States Attorney Donald Wolthuis is prosecuting the case for the United States.
Extradited Canadian Man Sentenced to Jail for 5 Years for Distribution of Child PornographyRead the Press Release
Tristram J. Coffin, United States Attorney for the District of Vermont, stated that Roy Aubie, 58, of Québec, Canada, was sentenced today by U.S. District Court Judge William K. Sessions III, to 60 months in prison for the distribution of child pornography. Aubie was also sentenced to eight years of supervised release after the completion of his prison term.
According to Court records, as part of an investigation into internet-facilitated child exploitation, a detective with the South Burlington Police Department created an undercover profile on Hi5, a social networking website, in the name of “Anna,” a fictitious thirteen-year-old girl from South Burlington. On December 6, 2007, the defendant sent a message to Anna asking if he could get to know her. They corresponded on Hi5 and Yahoo! instant messenger and over email for a period of approximately fifteen months, and, during this time, the defendant initiated and engaged in sexually explicit conduct and conversation with Anna in an attempt to entice her to engage in actual sexual conduct with him. One of the ways the defendant sought to accomplish this was by “grooming” Anna, by steering her to a number of his own websites designed for sharing images and videos of child pornography. Through his websites, the defendant had created virtual communities where he encouraged other individuals to post their own homemade or otherwise produced images and videos of child pornography. Pursuant to a federal search warrant, law enforcement searched the defendant’s Yahoo! account and discovered that the defendant had emailed images and videos of child pornography to others.
On June 23, 2009, Aubie was indicted by a federal grand jury on a four-count indictment charging him with two counts of Distribution of Child Pornography and two counts of Solicitation and Promotion of Child Pornography. On June 25, 2013, the defendant was extradited to the United States and arrested upon arrival. On that date, he appeared before United States Magistrate Judge John M. Conroy who detained the defendant pending trial. Aubie pled guilty to Count One of the indictment on February 5, 2014, based in part upon an agreement that the government and the defense jointly recommend a sentence of 60 months incarceration.
This case was investigated by the South Burlington Police Department and the United States Secret Service, with the assistance of Sûreté du Québec, the provincial police agency for Québec. The United States Attorney, Tristram J. Coffin, commends those agencies for their work and international cooperation. The case was prosecuted by Assistant United States Attorneys, Nancy J. Creswell and Paul Van de Graaf. Aubie was represented by Steven Barth of the Office of the Federal Public Defender.
Eight Indicted for Conspiracy to Obstruct Investigation and Law Enforcement Effort to Capture Jamal DeanRead the Press Release
Levon Varne Dean, Sr, age 55, Evette Morris-Hernandez, age 34, Kimberly Smith, age 50, and Steffan Dean, age 53, all of Sioux City, Ingmar Hernandez, age 26 and Monica Rocha-Contreras, age 21, both of South Sioux City, Nebraska, Anna Baker, age 24, of Winnebago, Nebraska, and Esteban Hernandez, age 36, of Mercedes, Texas, all have been charged with one count of conspiracy to defraud the United States by obstructing a Federal investigation. The charges are contained in an Indictment filed on November 20, 2014, in United States District Court in Sioux City. All had previously been charged in a Complaint filed on October 31, 2014.
The Indictment alleges that, from April 29, 2013 to about September 1, 2013, Levon Varne Dean, Sr., Morris-Hernandez, Smith, Steffan Dean, Hernandez, Rocha-Contreras, and Baker, conspired to interfere with and obstruct legitimate governmental activities of the United States Department of Justice (e.g., The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the United States Marshals Service) by interfering with and obstructing the federal investigation into the events of April 29, 2013, and the federal effort to apprehend Jamal Dean. Other charges in the Indictment include False Statements, Concealing Evidence, Accessory After the Fact, and Misprision of a Felony.If convicted each faces a possible maximum sentence of up to 5 years’ imprisonment, a $250,000 fine, $100 in special assessments, and 3-years of supervised release following any imprisonment.
Levon Varne Dean, Sr., Morris-Hernandez, Smith, Steffan Dean, Rocha-Contreras, and Baker were released on bond on November 7, 2014, and Ingmar Hernandez was held without bond. Steffan Dean, Smith and Ingmar Hernandez next appearance for arraignment is December 8, 2014. Levon Dean, Sr., Smith, Rocha-Contreras, and Morris-Hernandez’s have waived personal appearance at arraignment and their next appearance for trial is set for February 5, 2015.
-more-
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.The case is being prosecuted as a part of Project Safe Neighborhoods, a cooperative local, state, and federal program aimed at the enhanced prosecution of gun crimes. The case was investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Homeland Security Investigations; the Tri-State Drug Task Force, the Woodbury County Sheriff’s Office; the Sioux City Police Department, the United States Marshal’s Service; the Iowa Department of Public Safety; the Nebraska Department of Public Safety; and the Woodbury County Attorney’s Office. The case is being prosecuted by Assistant United States Attorney Forde Fairchild.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 14 CR 4088.
East Hampton Man Pleads Guilty in Manhattan Federal Court to Fraudulent Sales of Purported Jackson Pollock and Willem De Kooning ArtworksRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and George Venizelos, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced today that JOHN RE, 54, of East Hampton, New York, pled guilty to one count of wire fraud in connection with his nine-year scheme to defraud art collectors who sought to acquire works by famous American artists such as Jackson Pollock and Willem De Kooning, which resulted in approximately $2.5 million in losses to victims. RE pled guilty today before U.S. District Judge P. Kevin Castel.
According to the allegations set forth in the Criminal Complaint, other documents filed in the case, and statements made at related court proceedings:
From at least March 2005 through January 2014, RE invented a false provenance, the history demonstrating an artwork’s authenticity, for dozens of paintings, sketches, and pastels that he sold to art collectors in order to extract thousands of dollars from his victims for every piece that RE sold. RE persisted in selling these artworks despite his knowledge that their provenance was falsified and despite repeated instances of de-authentication by respected appraisers and experts in the field of forensic analysis. In at least one instance, when confronted by a victim, RE resorted to threats of violence, claiming that his victim should be wary of RE’s purported connections to organized crime.
In his plea agreement, RE expressly acknowledged that he has never discovered or sold any work of art found in a home that formerly belonged to a purported acquaintance of Jackson Pollock and Willem De Kooning, as RE had falsely represented to collectors, and RE further acknowledged that he knowingly and fraudulently fabricated such a provenance for every work of art to which he previously attributed such a provenance.
RE, 54, of East Hampton, New York, pled guilty to one count of wire fraud, which carries a maximum sentence of twenty years in prison. The statutory maximum sentence is prescribed by Congress and is provided here for informational purposes, as any sentencing of the defendant will be determined by the judge. RE also agreed to forfeit $2,500,000, representing the proceeds of RE’s sales of fraudulent artworks. In connection with today’s plea, Judge Castel issued a post-indictment restraining order that effectively restricts RE’s ability to sell a submarine – the “U.S.S. Deep Quest” – pending the satisfaction of RE’s forfeiture debt. RE purchased the submarine in Texas using proceeds he obtained from the fraudulent sale of a purported Jackson Pollock painting in the course of the scheme. RE is scheduled to be sentenced by Judge Castel on April 10, 2015.
Mr. Bharara praised the outstanding efforts of the FBI, the Suffolk County District Attorney’s Office, and the Suffolk County Police Department in the investigation. Mr. Bharara also thanked the Village of East Hampton Police Department for their assistance with this case.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Andrew C. Adams is in charge of the prosecution.
Detroit Man Pleads Guilty to Access Device FraudRead the Press Release
A Detroit man pleaded guilty today to access device fraud in connection with a scheme to defraud the Internal Revenue Service, United States Attorney Barbara McQuade announced today.
McQuade was joined in the announcement by Jarod J. Koopman, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation.
Entering the guilty plea before U.S. District Judge Gershwin A. Drain was Antonio R. Lundy, 43. According to court records, from September 2011 through April 2012, Lundy obtained the home addresses and personal identification information of individuals, which was used by others to prepare and file false and fraudulent income tax returns with the IRS. The returns requested refunds, which were paid by the IRS, loaded onto Turbo Tax Visa debit cards, and mailed to the home addresses provided by Lundy.
The names on the debit cards were of individuals who were unaware that their identities were being used as part of a scheme. Lundy picked up the debit cards and used them at ATMs in the Detroit area to withdraw cash. Lundy’s cash withdrawals totaled approximately $252,000, which he knew he was not entitled to and was a part of a scheme to defraud the IRS. Overall, the scheme involved approximately 180 fraudulent returns that requested approximately $1.7 million in refunds.
“IRS-CI is committed to working with our law enforcement partners to combat identity theft. Investigating and prosecuting identity thieves who attempt to defraud the government by filing fraudulent income tax returns remains a top priority for the IRS,” said IRS Criminal Investigation Special Agent in Charge Koopman.
Lundy’s sentencing is set for April 9, 2015. The crime to which he pleaded guilty carries a maximum term of imprisonment of ten years and a fine of $250,000. In addition, Lundy will be required to pay restitution to the IRS in the amount of $251,990.
The case was investigated by special agents of the IRS-Criminal Investigation and is being prosecuted by Assistant U.S. Attorney Stephen Hiyama.
Cricket Communications, Inc. to Pay $2.1 Million for Overcharging Law Enforcement Agencies for Court-Ordered WiretapsRead the Press Release
SAN FRANCISCO – Cricket Communications, Inc., a wireless telecommunications carrier based in San Diego, California, has agreed to pay the government $2,174,432 to resolve allegations that it overcharged federal law enforcement agencies for the costs of carrying out court-ordered wiretaps and pen registers, United States Attorney Melinda Haag and the U.S. Department of Justice Office of Inspector General, Special Agent in Charge M. Elise Chawaga, announced today.
Telecommunications carriers like Cricket are authorized by statute to recover the “reasonable expenses” they incur in providing facilities or assistance in executing a court-ordered wiretap or pen register. A pen register is a device that captures call identifying information transmitted by a particular telephone line, but not the content of the communication. A joint investigation by the Office of Inspector General and the U.S. Attorney’s Office revealed that Cricket overcharged federal law enforcement agencies for executing wiretaps and pen registers from 2007 until Cricket lowered its fees in 2010. The settlement agreement resolves the United States’ civil claims against Cricket based on the overbilling.
The settlement with Cricket Communications, Inc. was the result of a coordinated effort among the United States Attorney’s Office, and the U.S. Department of Justice Office of Inspector General.
Assistant U.S. Attorney Steven J. Saltiel handled the matter on behalf of the U.S. Attorney’s Office.
Chester County Business Owner Admits to Immigration Fraud SchemeRead the Press Release
Sudhakar Majety, 46, of Spring City, PA, pleaded guilty today to four counts of visa fraud in connection with a scheme to illegally bring more than 50 workers to the United States on H-1B visas to work as IT consultants for his company Upani Consultants. Majety created a series of shell corporations and sham contracts to pretend that Upani Consultants needed the additional workers. When the workers arrived in the United States, they learned that there were no jobs for them at Upani and they were forced to search for jobs elsewhere. Some workers who could not find employment had to pay Majety additional money to keep their visas active. Majety typically charged each worker $4,000 for the visa and kept 20% of any of their earnings in the United States.
U.S. District Court Judge John R. Padova scheduled a sentencing is scheduled for February 26, 2015. Majety faces a maximum possible sentence of 40 years in prison and a $1 million fine.
The case was investigated by the U.S. Department of Labor Office of the Inspector General, the U.S. Department of State Diplomatic Security Service, and U.S. Immigration and Customs Enforcement Homeland Security Investigations and Citizenship and Immigration Services. It is being prosecuted by Assistant United States Attorney Robert J. Livermore.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Ceres Mortgage Broker Sentenced to Prison for Filing A False Tax ReturnRead the Press Release
FRESNO, Calif. — United States District Judge Lawrence J. O’Neill sentenced Maria Vega, 54, of Ceres, today to six months in prison, to be followed by six months of home confinement, for filing a false tax return, United States Attorney Benjamin B. Wagner announced.
Judge O’Neill also ordered Vega to pay $179,465 in restitution to the Internal Revenue Service. Vega has already repaid approximately $161,000 of that amount.
According to her plea agreement, Vega owned and operated Vega's Financial Services and was licensed as a broker by the California Department of Corporations. Vega earned income from working as a loan officer on mortgage transactions at Vega's Financial Services, and she also earned income as real estate agent in connection with the purchase, sale, and refinancing of residential properties. Although Vega received substantial income in tax years 2005, 2006 and 2007, she did not file federal income tax returns for tax years 2005 and 2006 until 2008. When Vega did file federal income tax returns in April 2008 for tax years 2005, 2006, and 2007, she substantially underreported both her income and tax due for those tax years. Vega reported taxable income of $0 for 2005, $21,692 for 2006, and $0 for 2007, but in fact she had substantially higher taxable income for each of these three years.
This case was the product of an investigation by the Internal Revenue Service – Criminal Investigation. Assistant United States Attorneys Kirk E. Sherriff and Michael G. Tierney prosecuted the case.
Campaign Manager Pleads Guilty to Conspiracy to Buy Votes in a Donna, Texas, School Board ElectionRead the Press Release
A campaign manager pleaded guilty today in the Southern District of Texas for conspiring with others to pay voters to vote in a Donna, Texas, school board election, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Kenneth Magidson of the Southern District of Texas. Five campaign workers have already pleaded guilty to vote-buying charges in connection with this election.
Francisco “Frankie” Garcia, 47, of Donna, Texas, pleaded guilty to one count of conspiring to buy votes and one count of vote-buying in connection with the November 2012 general election. Garcia’s sentencing hearing is scheduled for Feb. 24, 2015, before Chief Judge Ricardo H. Hinojosa of the U.S. District Court for the Southern District of Texas.
At his plea hearing, Garcia admitted that a general election was held on Nov. 6, 2012, in Donna, Texas, which included candidates for the presidential election, as well as candidates for various state, county and local offices, including members of the Donna School Board. Garcia worked as a campaign manager for four school board candidates, and he and others agreed to pay voters with cash and cocaine to vote for those candidates.
This case was investigated by the FBI and is being prosecuted by Trial Attorneys Monique Abrishami and Maria Lerner of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Leo J. Leo of the Southern District of Texas.
- Campaign Manager Pleads Guilty to Conspiracy to Buy Votes in Donna School Board Election
Buffalo Police Officer Involved in Videotaped Beating Sentenced on Civil Right ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. – U.S. Attorney William J. Hochul, Jr. announced today that John Cirulli, of Buffalo, N.Y., who was convicted of two counts of deprivation of rights under color of law, was sentenced to 12 months probation by Chief U.S. District Judge William M. Skretny.
“The law provides police officers with a substantial amount of power, including the right to deprive a person of his liberty when that person breaks the law,” said U.S. Attorney Hochul. “The law is also clear, however, that an officer may not punch and kick a suspect when he is handcuffed, or is seated in the back of a police car, and the suspect poses no danger to anyone. By engaging in that precise conduct in this case, former Officer Cirulli crossed the line from being a police officer to a criminal defendant.”
Assistant U.S. Attorneys Trini E. Ross and Jack Rogowski, who handled the case, stated that on April 19, 2014, the defendant was employed as a police officer with the Buffalo Police Department. Between 9:30 and 10:30 p.m. on April 19, 2014, the defendant and his partner pulled their unmarked police car up to a vehicle being driven by the victim and told him that he was speeding. The victim got out of his car, fled, and a foot chased ensued.
After catching up to the victim, the defendant and another officer took the victim to the ground. At one point while the victim was on the ground, Cirulli placed his knee on the victim’s upper back area.
Once the victim was handcuffed by officers and under control, the defendant struck the suspect in the head with his hand, struck the suspect in his body with his boot, and struck the suspect again in the head area with his hand. The suspect was then placed in the back seat of a Buffalo Police vehicle, where the defendant struck the suspect yet again in the face.
A person in the neighborhood happened to record on his cellular telephone some of the contact between the suspect and the police, including the portion of the contact where the defendant struck the victim while he was already secured and in handcuffs. After the defendant was told about the recording by another officer, Cirulli approached the witness and took what he thought was the witness’s cellular telephone. In fact, the telephone the witness gave to the defendant actually belonged to a friend. After determining that the cellular telephone did not have any recording of the assault incident on it, the defendant returned the telephone to the witness.
U.S. Attorney Hochul further stated “This office will not hesitate to act when civil rights allegations are brought to our attention. The public should also understand, however, that the actions of Cirulli do not in any way reflect upon the fine men and women of the Buffalo Police Department or of any other police agency, who day in and out work within the Constitution and law to protect and serve all of us.”
The sentencing is the culmination of an investigation on the part of Special Agents of Federal Bureau of Investigation, and the Buffalo Police Department, under the direction of Commissioner Daniel Derenda.
Blair County Man Sentenced to Probation with Home Detention for Filing False Tax ReturnsRead the Press Release
JOHNSTOWN, Pa. - A resident of Hollidaysburg, Pa., has been sentenced in federal court to five years probation, the first 15 months of which must be served by a condition of home confinement, and a $500,000 fine on his conviction of filing false tax returns, United States Attorney David J. Hickton announced today.
United States District Judge Kim R. Gibson imposed the sentence on Michael Herman.
According to information presented to the court, Herman filed two individual income tax returns for the calendar years 2007 and 2008, whereby he failed to report $9,873,745 in taxable income, resulting in an underpayment of $655,934 in income tax owed to the United States.
Assistant United States Attorney John J. Valkovci, Jr., prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Internal Revenue Service/Criminal Investigation for the investigation leading to the successful prosecution of Herman.
Bakersfield Resident Pleads Guilty to Growing Marijuana on Ecological ReserveRead the Press Release
FRESNO, Calif. — Cruz Soria, 29, of Bakersfield, pleaded guilty today to conspiring to manufacture, distribute and possess with intent to distribute marijuana in the Fay Canyon area of the Canebrake Ecological Reserve, United States Attorney Benjamin B. Wagner announced.
The Canebrake Ecological Reserve is located 10 miles east of Lake Isabella in northeastern Kern County. It was first inhabited in about 1000 B.C. by the Tubatulabel culture and is currently home to numerous rare and protected plants and animals, including the federally protected golden and bald eagles and peregrine falcon, the federally threatened California red-legged frog and Valley elderberry longhorn beetle, and the endangered Southwestern willow flycatcher.
In pleading guilty, Soria acknowledged he was responsible for cultivating 454 marijuana plants in the ecological reserve. Law enforcement officers arrested Soria at the grow site and seized the plants and about 12 pounds of processed marijuana. Among the plants, the officers also found several highly toxic chemicals, including Fosfuro de Zinc or zinc phosphide, a rat poison illegal to use in the United States without a license, and Furadan, an insecticide banned by the EPA for usage on crops consumed by humans. The defendant has agreed to pay $2,568 in restitution to cover the costs incurred by the High Sierra Trail Volunteer Crew to clean up the damage to the reserve caused by the marijuana grow.
Soria is scheduled for sentencing on February 9, 2015, before Senior U.S. District Judge Anthony W. Ishii. Soria faces a mandatory minimum prison term of five years and a maximum prison term of 40 years, along with a fine of up to $5 million. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case is the product of an investigation by the U.S. Forest Service, the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), California Department of Fish and Wildlife, and Kern County Sheriff’s Office. Assistant United States Attorney Karen Escobar is prosecuting the case.
Friday 28 November 2014
Week in Review – South BendRead the Press Release
South Bend, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS
- Antonio King, 35, of Elkhart, IN pled guilty to the felony offense of being a felon in possession of a firearm. The magistrate judge is recommending that the district court accept the tendered guilty plea. Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by Bureau of Alcohol, Tobacco, Firearms and Explosives. Sentencing has been set for March 4, 2014. This case is being prosecuted by Assistant United States Attorney Donald Schmid.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS
- Jeffrey Miller, 46, of Osceola, IN was sentenced to 135 months imprisonment, 2 years supervised release and ordered to pay $1, 086,222.90 in restitution after pleading guilty to the felony offenses of interstate transportation of stolen goods and money laundering. According to documents filed in this case, from approximately June 2012 through January 2014, the defendant stole copper wire from his former employer, an RV manufacturer located in Elkhart, Indiana. Miller then sold the copper to scrapyards after transporting the copper wire across the state line from Indiana to Michigan locations. The defendant used these illegal funds to gamble at various casinos. The defendant deposited cash into his bank account when he won at the casino because then he was able to justify to the bank where the cash came from. The defendant intentionally avoided putting money from his sells of stolen copper wire directly into his bank accounts because he did not want to justify the source of the cash. The defendant intentionally made bank deposits of cash below $10,000 because he was told the bank would require persons to file a form with the government and he thought people would start to ask questions. This case was the result of an investigation by the Internal Revenue Service. This case was prosecuted by Assistant United States Attorney Donald Schmid.
Week in Review – HammondRead the Press Release
Hammond, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS
- Chavonne Jackson, 28, of Chicago, Illinois, formerly of Hammond, Indiana, pled guilty to the felony offense of conspiracy to commit identity theft and bank fraud before U.S. District Court Judge Joseph S. Van Bokkelen. The defendant’s sentencing is scheduled for February 20, 2015. The case was investigated by the U.S. Postal Inspection Service and is being prosecuted by Assistant United States Attorney Toi Denise Houston.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS
- Yousef Muhamad, 44, of Chicago, IL was sentenced to 33 months imprisonment (followed by 2 years of supervised release) and ordered to pay $213,999.12 in restitution after pleading guilty to the felony offense of knowingly and intentionally executing a scheme to defraud the Indiana SNAP benefit program, in violation of Title 18, United States Code 1343. The fraud scheme involved the fraudulent redemption of SNAP (supplemental nutrition assistance program) benefits at multiple Gary, Indiana convenience stores. Defendant, and his co-conspirators, purchased SNAP benefits for cash and allowed SNAP beneficiaries to use their benefits to purchase prohibited items like cigarettes and cell phones. This case was the result of an investigation by the Federal Bureau of Investigation. This case was prosecuted by Assistant United States Attorney Diane Berkowitz.
Week in Review – Fort WayneRead the Press Release
Fort Wayne, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS
- Laurence Rothschild, 62, of Harlan, Indiana pled guilty to the felony offense of theft of government money. The magistrate judge is recommending that the district court accept the tendered guilty plea. Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Social Security Administration and the United States Postal Inspection Service. Sentencing has not been set. This case is being prosecuted by Assistant United States Attorney Lovita Morris King.
- Martin Gonzalez Medina, 51, of Indianapolis, Indiana pled guilty to the felony offense of possessing with intent to distribute marijuana. The magistrate judge is recommending that the district court accept the tendered guilty plea. Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Drug Enforcement Administration, Indiana State Police, Fort Wayne Police Department, IMAGE Drug Task Force, Noble County Sheriff’s Department and the Steuben County Sheriff’s Department. Sentencing has not been set. This case is being prosecuted by Assistant United States Attorney Anthony W. Geller.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
Two Monroe County Men Charged with Heroin Trafficking OffenseRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that two men from Monroe County were indicted November 25 by a federal grand jury in Scranton for heroin trafficking.
According to United States Attorney Peter Smith, Joseph Crawford, age 41, of Marshalls Creek, and Harry Rivera, age 39, of East Stroudsburg, are charged with possession with intent to distribute heroin and aiding and abetting. In addition, Crawford is charged with being a convicted felon in possession of firearms, specifically, a Glock pistol and a Smith & Wesson rifle. The charges stem from an incident on June 17, 2014, in which investigators found approximately 100 grams of heroin within a hidden compartment in a vehicle in which Crawford and Rivera were travelling.
The investigation was conducted by the Drug Enforcement Administration, the Pocono Mountain Regional Police Department and the Stroud Area Regional Police Department. The case is being prosecuted by Assistant United States Attorney Robert J. O’Hara.
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.
In this case, the maximum penalty under the federal statute is imprisonment for twenty years, a term of supervised release following imprisonment, and a fine. 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.
Two McLaughlin Men Charged with Assault with A Dangerous WeaponRead the Press Release
United States Attorney Brendan V. Johnson announced that two McLaughlin, South Dakota, men have been indicted by a federal grand jury for Assault with a Dangerous Weapon.
Ronald Brown Otter, age 24, and Kenton Walks, age 20, were indicted on November 13, 2014. They both appeared before U.S. Magistrate Judge Mark A. Moreno on November 25, 2014, and both pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about December 1, 2012, Brown Otter and Walks unlawfully assaulted an adult male victim with a wooden board and a knife, with intent to do bodily harm to the victim, and they aided and abetted one another in the commission of said offense.
The charge is merely an accusation and Brown Otter and Walks are presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
Brown Otter and Walks were released on bond pending trial. A trial date has not been set.
Three Tobyhanna Men Charged with Counterfeiting SchemeRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today that an Indictment was returned on November 25 by a grand jury in Scranton charging Michael Turner, age 21, Andrew Turner, age 27, and Jason Mitchell, age 29, all of Tobyhanna, Pennsylvania, with conspiracy and dealing in counterfeit United States Federal Reserve Notes.
United States Attorney Peter Smith stated that the three-count Indictment charges that beginning in or about June 1, 2014 through June 30, 2014, the defendants conspired and aided abetted each other in a scheme to receive, exchange, transfer, and pass approximately $8700 in counterfeit $100 Federal Reserve Notes at the Mount Airy Casino in Mount Pocono and the Mohegan Sun Casino in Plains.
The defendants face a total statutory maximum term of 45 years and fines in the amount of $750,000.
The case was investigated by the United States Secret Service and the Pennsylvania State Police, Bureau of Gaming Enforcement.
Prosecution is assigned to Assistant United States Attorney Michelle 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.