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12 January 2015
Bank Employee Sentenced to Federal Prison for Embezzling More Than $450,000Read the Press Release
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Deirdre M, Daly, United States Attorney for the District of Connecticut, announced that MARIA ROSA ESTEVES, 41, of Bridgeport, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 12 months and one day of imprisonment, followed by six months of home confinement and three years of supervised release, for embezzling more than $450,000 from the bank where she was employed. ESTEVES also was ordered to pay full restitution, and to perform 60 hours of community service during her term of supervised release.
According to court documents and statements made in court, ESTEVES was employed by People’s United Bank from 1993 to 2014. Beginning in 2006, ESTEVES worked primarily in the bank’s Adjustments Department, ultimately holding the title of Lead Adjuster with responsibilities that included arranging for bank cashiers’ checks to be issued to customers when a customer’s account needed to be adjusted. ESTEVES used her position in the Adjustments Department to embezzle $452.122.08 from the bank by causing the bank to issue cashiers’ checks that ESTEVES would then use to pay persons or entities that she owed money to, including her utility company, homeowner’s insurance company and mortgage providers. ESTEVES also embezzled money by depositing cashiers’ checks into bank accounts she controlled and from which she, or others associated with her, were able to access the funds. In total, ESTEVES misappropriated more than 300 cashiers’ checks.
ESTEVES was ordered to report to prison on March 2, 2015.
On August 14, 2014, ESTEVES pleaded guilty to one count of embezzlement from a federally insured bank.
This case was investigated by the Federal Bureau of Investigation and was prosecuted by Senior Litigation Counsel Richard J. Schechter.
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(203) 821-3722 [email protected]Antioch Woman Charged with Fraudulently Obtaining CitizenshipRead the Press Release
SAN JOSE – Vivian Chike Obichere was arraigned on Friday, Jan. 9, 2015, on charges of making false statements in passport applications, unlawfully obtaining naturalization, and committing perjury in two interviews concerning her application for citizenship, announced United States Attorney Melinda Haag and Special Agent in Charge David Zebley of the U.S. Department of State, Diplomatic Security Service.
A federal grand jury in San Francisco indicted Obichere, 61, of Antioch, on Jan. 6, 2015. According to the indictment, Obichere submitted a fraudulent passport application using the identity of a deceased American citizen. The indictment also alleges that Obichere lied about her use of the false identity in her application to become a naturalized American citizen, which she filed in her own identity, and in the interviews concerning her naturalization application. As a result of those lies, Obichere’s application for American citizenship was granted. According to the indictment, Obichere also lied about her use of the false identity in a subsequent passport application submitted in her own identity after becoming a citizen.
Obichere was arrested at her home early Friday morning and made her initial appearance in federal court in San Jose that afternoon. Obichere was released on bond. Bail was set at $50,000. Obichere’s next scheduled appearance is at 1:30 p.m. on Feb. 9, 2015, before the Honorable Edward J. Davila, United States District Court Judge.
An indictment merely alleges that crimes have been committed, and defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendant faces a maximum sentence of ten years imprisonment, and a fine of $250,000, for each violation of 18 U.S.C. §§ 1542 (false statement in application for a passport) and 1425(b) (unlawful naturalization), and a maximum sentence of five years imprisonment, and a fine of $250,000, for each violation of 18 U.S.C. § 1621 (perjury). However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Rita F. Lin is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Marina Ponomarchuk. The prosecution is the result of an investigation led by the U.S. Department of State Diplomatic Security Service’s representative to the Document and Benefit Fraud Task Force (DBFTF) overseen by U.S. Immigration and Customs Enforcement Homeland Security Investigations. The DBFTF is a multi-agency task force that coordinates investigations into fraudulent immigration documents. U.S. Citizenship and Immigration Service’s Office of Fraud Detection and National Security also assisted with the investigation.
Antioch Resident Sentenced to 30-Months in Custody for Aggravated Identity Theft in Tax Fraud SchemeRead the Press Release
OAKLAND – Starkisha Benson was sentenced to 30 months in prison on Friday, Jan. 9, 2015, for conspiring to file false claims and aggravated identity theft, United States Attorney Melinda Haag and IRS-CI Internal Revenue Service – Criminal Investigation Division Special Agent in Charge José M. Martinez, announced.
Benson pleaded guilty on Oct. 3, 2014. According to her plea agreement, Benson filed false tax returns from her residence and from other locations along with her co-conspirators. Bensons admitted that she filed these false tax returns using stolen identities. Benson specifically acknowledged that she stole one person’s identity and used that information to file false 2009 and 2010 tax returns. Benson also misused the identity of that same person’s minor child. Benson further acknowledged embezzling fraudulent tax refunds from the Internal Revenue Service and keeping the money for her own use. In addition to the prison sentence, Benson was ordered to pay restitution in the amount of $98,927.
The charges against Benson were the result of an investigation initiated by the Berkeley Police Department. On April 7, 2011, during a consent search of a vehicle, the Berkeley Police Department uncovered a notebook with co-defendant Khyber Law’s name on the cover. The notebook contained the identity profiles of eleven people including their names, dates of birth, bank account numbers, bank routing numbers, email addresses, and passwords. Eight of these eleven identity profiles were used to file false federal income tax returns.
Benson, 36, of Antioch, was charged with Khyber Law and Jessika Green in a twenty-four count superseding indictment on Dec. 17, 2013. The defendants were all charged with wire fraud, conspiracy to file false claims, filing false claims, effecting fraudulent transactions with an access device, theft of public money, and aggravated identity theft. Law and Green each pleaded guilty to conspiracy to file false claims. Law, 26, of Antioch is scheduled to be sentenced on Jan. 30, 2015. Green, 33, also of Antioch, is scheduled to be sentenced on Feb. 20, 2015.
The sentence was handed down by the Honorable Jon S. Tigar, United States District Court Judge. Judge Tigar also sentenced the defendant to a three year period of supervised release and restitution. The defendant will begin serving the sentence on March 6, 2015.
Assistant U.S. Attorney Thomas Newman and Special Assistant U.S. Attorney Kate Patchen and are prosecuting the case. The prosecution is the result of an investigation by the Berkeley Police Department and the IRS, Criminal Investigation Division.
Another Member of Large Scale Pensacola Cocaine Trafficking Organization Sentenced to Federal PrisonRead the Press Release
PENSACOLA, FLORIDA – Victor D. Rome, 39, from the Pensacola area, was sentenced in federal court today on drug trafficking conspiracy charges. Rome was sentenced by Chief United States District Judge M. Casey Rodgers to 280 months’ imprisonment and 10 years of supervision upon his release. The sentence was announced today by Pamela C. Marsh, United States Attorney for the Northern District of Florida.
Rome’s indictment was part of a continuing investigation into a large scale distribution network that involved the transportation of cocaine from Texas into the Northern District of Florida. Rome’s co-conspirators Coneil T. Wilkins and Ricky L. Blankenship were sentenced last year. On February 13, 2014, Wilkins was sentenced by Senior United States District Judge Lacey A. Collier to 35 years in federal prison for his role in the distribution of approximately $20 million worth of cocaine in Pensacola. On May 15, 2014, Blankenship was sentenced by Judge Collier to life imprisonment for related drug trafficking offenses.
United States Attorney Marsh praised the work of the Drug Enforcement Administration (DEA), the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Escambia County Sheriff’s Office, the Pensacola Police Department, and the State Attorney's Office for the 1st Judicial Circuit, whose joint investigation led to the indictments in these cases.
The cases were prosecuted by Assistant United States Attorney David L. Goldberg.
“I commend our federal, state, and local law enforcement partners for their commitment to public service and community safety,” said United States Attorney Marsh. “This teamwork has resulted in the dismantling of a multi-year criminal conspiracy and demonstrates how the collaboration of all levels of government helps to protect the Northern District of Florida from dangerous drugs.”
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. The office strives to protect and serve the citizens of the Northern District of Florida through the ethical, vigorous, and impartial enforcement of the laws of the United States, to defend the national security, to improve the safety and quality of life in our communities through the protection of civil rights, and to protect the public funds and financial assets of the United States. To access available public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Andover Man Pleads Guilty to Mishandling ChemicalsRead the Press Release
WICHITA, KAN. - The owner of a plastics recycling company in El Dorado pleaded guilty Monday to mishandling waste chemicals and agreed to pay more than $118,000 in restitution to the Environmental Protection Agency, U.S. Attorney Barry Grissom.
Brian J. Riley, 41, Andover, Kan., owner of Integrated Plastic Solutions, LLC., pleaded guilty to one count of negligent exposure to a hazardous air pollutant. In his plea, he admitted the company stored hazardous wastes at its facility in the form of paints, solvents and other chemicals. The paints and solvents contained ethyl benzene, which is classified as a hazardous air pollutant. After becoming aware that the Kansas Department of Health and Environment was investigating the company’s waste handling practices, Riley allowed some paints and solvents to be dumped on the IPS grounds, releasing ethyl benzene and exposing employees to the risk of flash fire and explosion.
Sentencing is set for March 30. He faces a maximum penalty of a year in federal prison and a fine up to $100,000. Grissom commended the Environmental Protection Agency and Assistant U.S. Attorney Alan Metzger for their work on the case.
Anchorage Man Sentenced to more than 21 Years for Drug Trafficking, Causing Death of Young WomanRead the Press Release
Anchorage, Alaska B U.S. Attorney Karen L. Loeffler announced today that an Anchorage man was sentenced by United States District Court Judge Timothy M. Burgess to serve 262 months in federal prison for his role in a drug trafficking conspiracy that led to the death of a young woman.
Dwight Williams, 51, of Anchorage, Alaska previously pled guilty to participating in a drug conspiracy to distribute significant quantities of heroin and methamphetamine. As part of the conspiracy, in early August 2013, Williams and a co-conspirator sold approximately 14 grams of methamphetamine in exchange for $1350.
Williams also admitted that, just a few weeks later, he distributed heroin to a young woman, S.C., and that giving heroin to S.C. resulted in her death from an overdose. Specifically, Williams admitted that on August 26, 2013, he and S.C. traveled to a hotel in Anchorage where, in the early morning hours, Williams supplied S.C. with the heroin that ultimately caused her death. After distributing heroin to S.C., Williams took steps to conceal his involvement in her death by making false claims to law enforcement.
Just three days after S.C.’s tragic death, Williams continued his drug trafficking activities, this time working with others to distribute more than 100 grams of heroin and almost 30 grams of nearly pure methamphetamine. On August 29, 2013, Williams and a co-conspirator traveled to another hotel in Anchorage where the group rented a room. Williams arrived at the hotel on that date already in possession of both heroin and methamphetamine that he and his associates intended to distribute.
Upon his release from prison, Williams will remain under court supervision for five years. He was also ordered by Judge Burgess to forfeit a Cadillac Escalade that he used to facilitate his drug trafficking activities.
In sentencing Williams, Judge Burgess noted that he found it difficult to emphasize how sad this case is for the victims. He also called Williams’ actions extremely reckless and cited the need for the sentence in the case to protect the public from future crimes by Williams.
In announcing the sentence, U.S. Attorney Loeffler praised the Drug Enforcement Administration, the Anchorage Police Department, and Homeland Security Investigations for their investigation of the case.
Additional Charges in Ongoing National Guard Recruiting-Fraud InvestigationRead the Press Release
SACRAMENTO, Calif. — Steel A. Davis, 42, of Paradise, was arraigned today in federal court, charged with wire fraud in a scheme to obtain bonuses for purportedly referring individuals to enlist in the California National Guard, United States Attorney Benjamin B. Wagner announced. Davis pleaded not guilty to the charges.
According to court documents, the United States Army contracted with a company called Document and Packaging Broker Inc. (DOCUPAK) to administer the Guard Recruiting Assistance Program (G-RAP). Under G-RAP, members of the California National Guard served as Recruiting Assistants. If a Recruiting Assistant referred a potential Guard member to a recruiting office and that person ultimately enlisted, the Recruiting Assistant was eligible to receive monetary compensation disbursed by DOCUPAK.
According to the indictment, Davis, who was a recruiter with the California National Guard at the time, is alleged to have given recruits’ information to recruiting assistants, who would then file false claims with DOCUPAK that they had referred the recruits to join the Guard when, in fact, the recruits had joined on their own initiative. When the compensation was received, Davis is alleged to have then split the proceeds of the fraud with the recruiting assistants.
This case is the product of an ongoing investigation by the Army Criminal Investigative Command Major Procurement Fraud Unit, the Defense Criminal Investigative Service, and the Federal Bureau of Investigation. Assistant United States Attorney Matthew G. Morris is prosecuting the case.
If convicted, Davis faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
In May 2014, eight other National Guard soldiers were indicted in Sacramento and Fresno. Two of those defendants have pleaded guilty. The remaining cases are pending. The charges against them are only allegations; they are presumed innocent until and unless proven guilty beyond a reasonable doubt.
9 January 2015
Willoughby Hills Man Sentenced to Prison for False Tax ReturnsRead the Press Release
A Willoughby Hills man was sentenced to 18 months in prison for filing false tax returns, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Alexander J. Cucu, 41, filed false tax returns in 2008, 2009 and 2010, underreporting his income by approximately $139,434. He pleaded guilty to three counts last year.
This case is being handled by Assistant U.S. Attorney Mark S. Bennett following an investigation by the Internal Revenue Service – Criminal Investigations.
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
- Matthew Eash, 33, of Bristol, Indiana 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 April 8, 2015. This case is being prosecuted by Assistant United States Attorney Jesse Barrett.
- Derrick Smith, 40, of South Bend, Indiana pled guilty to the felony offense of 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 April 8, 2015. This case is being prosecuted by Assistant United States Attorney Frank Schaffer.
- Andre A. Forbes, 40, of South Bend, Indiana pled guilty to the felony offenses of distribution of crack cocaine and cocaine powder, being a felon in possession of a firearm, and tampering with a government witness. 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 April 15, 2015. 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
- Kevin A. Hoffman, 40, of St. John, Indiana was sentenced to 300 months imprisonment with 10 years supervised release after being found guilty by jury trial to the felony offenses of production and possession of child pornography. According to documents filed in this case, in September 2013, Hoffman was living with his girlfriend. Also living at the address were his girlfriend’s daughters ages 18 and 6. Hoffman used his cell phone to take nude photographs of the youngest child. This case was the result of an investigation by the Federal Bureau of Investigation. This case was prosecuted by Assistant United States Attorney John Maciejczyk.
- Carla Latice Merriweather, 25, of South Bend was sentenced to 60 months imprisonment with 2 years supervised release after pleading guilty to the felony offense of being an unlawful user of a controlled substance in possession of a firearm. According to documents filed in this case, in the early morning hours of August 6, 2014, the defendant stole a white pickup truck in South Bend, Indiana. Inside the truck was a loaded AMT pistol, model: Backup, caliber: .380. The defendant then used that firearm to shoot at a male who was pursuing her from whom she had obtained controlled substances in the past who she believed was following her in an effort to collect a drug debt. This occurred near the intersection of Western and Walnut in South Bend. A little after 3:00 a.m. on August 6, 2014, police then saw the defendant driving the stolen vehicle and attempted to stop the vehicle. The defendant then led police on high speed chase. At one point during the chase, the defendant ran a red light and narrowly missed colliding with another vehicle who was proceeding through the intersection on a green light. While police were in pursuit and attempting to apprehend her, the defendant fired multiple rounds from the stolen handgun at the pursuing officers. The vehicle pursuit ended at Barbie Street and Main Street in South Bend where Merriweather initially refused to exit the truck despite police commands to do so. Merriweather was subsequently taken into custody. After being placed in a police vehicle, the defendant then began to kick at the windows of the police car. Officers tried to restrain her, and she attempted to bite the officers. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives. This case was prosecuted by Assistant United States Attorney Donald Schmid.
Week in Review – HammondRead the Press Release
Hammond, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
DISPOSITIONS
- Marlon Carr, 31, of Gary, Indiana was sentenced to 30 months imprisonment with 1 year supervised release after pleading guilty to the felony offense of being a felon in possession of a firearm. According to documents filed in this case, on April 30, 2014, Carr was arrested by the Lake County Sheriff’s Department in the area of 2600 Jefferson in Gary, Indiana in possession of a firearm. Carr had been convicted of robbery in Lake County, Indiana . This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives. This case was prosecuted by Assistant United States Attorney Jennifer Chang-Adiga.
- Akeem Dillon, 28, of Sauk Village, Illinois was sentenced to 41 months imprisonment with 2 years supervised release after pleading guilty to the felony offense of being a felon in possession of a firearm. According to documents filed in this case, on February 24, 2014, Dillon possessed multiple firearms after being convicted of a felony drug crime in 2004. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms & Explosives and the Chicago Police Department. This case was prosecuted by Assistant United States Attorney Thomas McGrath.
- Ola Mohammad 33, of Bridgeview, Illinois was sentenced to 18 months imprisonment with 1 year supervised release and ordered to pay $401,300.16 in restitution after pleading guilty to the felony offenses of knowingly and willfully conspiring to defraud the United States Department of Agriculture (USDA) Supplemental Nutrition Assistance Program (SNAP) benefit program and defrauding the USDA SNAP benefit program through wire fraud. This case was the result of an investigation by the Federal Bureau of Investigation and the United States Department of Agriculture. This case was prosecuted by Assistant United States Attorney Diane Berkowitz.
Vienna man sentenced for participating in drug distribution ringRead the Press Release
CHARLESTON, W.Va. – United States Attorney Booth Goodwin announced today that Timothy A. Fields, 38, of Vienna, West Virginia, was sentenced to 72 months in federal prison with 3 years supervised release.
Bennett pleaded guilty in October 2014, to participating in a marijuana and cocaine distribution ring operating in and around Parkersburg, West Virginia and Belpre, Ohio. He admitted to receiving drugs through the mail, distributing the drugs and delivering or wiring cash proceeds at the direction of another party.
Between October 2013 and April 2014, task for officers from the Washington County Major Crimes Task Force (Ohio) and the Parkersburg Narcotics and Violent Crimes Task Force made multiple controlled purchases of marijuana and cocaine from Fields and other members of the distribution ring.
The investigation was conducted by the Internal Revenue Service, Parkersburg Narcotics and Violent Crimes Task Force and Washington County Major Crimes Task Force
United States District Judge John T. Copenhaver imposed the sentence.
Assistant United States Attorney Joshua Hanks handled the prosecution of this case.
United States Attorney announces arrest of Center Township officialRead the Press Release
Township Community Business Counselor alleged to have embezzled over $66,000 in Social Security benefits intended for the elderly and disabled
INDIANAPOLIS - Acting United States Attorney, Josh J Minkler announced this morning the arrest of Carmen Batts-Porter, 32, Indianapolis, who was charged by criminal complaint with theft/embezzlement of federal program funds. Batts- Porter serves as the Community Business Counselor for the Center Township Trustees Office, administering Social Security or SSI payments to beneficiaries who are incapable of managing their own payments.
"Stealing from those who are the least capable is a crime we will never look away from,” said Minkler. "If you do not uphold the public trust, our Public Integrity Working Group will find you, investigate you and the U.S. Attorney's Office will prosecute you to the fullest extent of the law." Minkler further stated. “This is the second time in six months federal law enforcement has had to police the Center Township Trustee’s Office. It is time for Center Township Government to clean up this mess.”
Batts-Porter worked at the Center Township Trustee’s Office which serves as the Representative Payee (RP) for Social Security benefits. The RP administered SSI payments to beneficiaries and whose main responsibility is to use the SSI benefits to pay for current and foreseeable needs of the beneficiary. The Center Township Trustee’s Office manages over $1 million annually for the Social Security Administration.
The criminal complaint alleges that from 2010 to 2014 Batts-Porter embezzled $66,682 in Social Security Administration (SSA) funds which were held in trust for SSA beneficiaries. It is further alleged that she used the embezzled money to pay person credit cards during that period. The funds were discovered to be missing during a routine audit by SSA investigators.
Minkler explained this case was the result of outstanding law enforcement work by the
Federal Bureau of Investigation, the Social Security Administration, Office of Inspector General, and the Indiana State Board of Accounts. All three agencies are partners in the U.S. Attorney's Public Integrity Working Group, which was launched in April 2012 with the stated purpose of aggressively investigating allegations of public fraud, waste and abuse by public officials in Indiana. Individuals with information on public corruption are encouraged to contact the U.S. Attorney's Office at (317) 229-2443.FBI Special Agent in Charge W. Jay Abbott said, ‘“The FBI is committed to investigating individuals that violate the public’s trust.”
SSA OIG, Office of Investigation, Special Agent in Charge William J. Cotter said, “It is unfortunate that, once again, the Public’s confidence in government is shaken by a civil servant lining her pockets with money stolen from some of the most vulnerable members of our society.”
According to Senior Litigation Counsel Bradley A. Blackington, who is prosecuting the case for the government, Batts-Porter could be sentenced up to 10 years in federal prison if convicted. She had her initial appearance before a magistrate judge yesterday and was released; no future court date has been set.A complaint is only charges and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Two Individuals Sentenced in Federal Court for Defrauding AIG out of Hundreds of Thousands of Dollars in West Des Moines, IowaRead the Press Release
DES MOINES, IA – Former Iowa resident Christina M. Pender and California resident Robert K. Taylor have pled guilty to defrauding insurance company AIG out of hundreds of thousands of dollars. Taylor also pled guilty to making false statements to a financial institution involving a mortgage fraud scheme in California. Pender pled guilty on April 17, 2014, and Taylor pled guilty on August 27, 2014.
On May 21, 2013, a federal grand jury in the Southern District of Iowa indicted Pender and Taylor for wire fraud. From approximately April 1, 2010 to January 5, 2011, Pender and Taylor perpetrated a scheme whereby Pender, then an AIG insurance adjuster located in West Des Moines, Iowa, approved payments to companies owned by Taylor for expert services that were never provided. Taylor’s companies were based in California, where he resided, and included TEI Group Associates, Inc., TEI Group, Inc., and Equitable Consulting Solutions. Pender also approved payments for expert services that were not provided to another Iowa-based company, MDP Group, which was owned, in part, by her then-boyfriend. All of the alleged services were supposed to be for consulting in furtherance of AIG’s handling of construction defect claims that were in litigation. In total, Pender admitted that she approved approximately $925,406 in payments by AIG for services that were not provided. Taylor received $666,128.98 of those payments.
During the pendency of the prosecution for wire fraud, the Government discovered that Taylor was also part of a mortgage fraud scheme in California. From approximately December 2005 through April 2006, Taylor applied for and received mortgage loans and lines of credit that he used for the purchase and refinance of several real properties in Kingsburg, California. In his mortgage loan and line of credit applications for these properties, Taylor knowingly and fraudulently identified his social security number as a number which he knew was not his social security number in an effort to influence the approval and funding of the loans. Taylor ultimately defaulted on his payment obligations, and the Kingsburg properties were foreclosed. Then, on November 20, 2012, Taylor subsequently filed a petition for bankruptcy using the fraudulent social security number. As a result of Taylor’s false statements for the purpose of obtaining the mortgage loans and lines of credit, Taylor caused lending institutions, including Countrywide Bank, losses of $326,100. Taylor pled guilty to an Information charging him with making false statements to a financial institution.
Pender was sentenced to 18 months in prison and ordered to pay restitution in the amount of $879,401.74 to AIG. Taylor was sentenced to 28 months in prison and ordered to pay restitution in the amount of $376,468.80 to Bank of America and $623,924.72 to AIG.
The wire fraud case was investigated by the Federal Bureau of Investigation and prosecuted by the United States Attorney’s Office for the Southern District of Iowa. The case involving false statements to a financial institution was investigated by the Federal Deposit Insurance Corporation—Office of Inspector General and prosecuted by the United States Attorney’s Offices for the Eastern District of California and the Southern District of Iowa.
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Two Conspirators Sentenced for Fraudulently Using the Identities of Others to Buy Luxury VehiclesRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Michael Lee Kelly, age 34, of Baltimore, today to 45 months in prison followed by four years of supervised release for bank fraud conspiracy and aggravated identity theft arising from a scheme to buy luxury vehicles using the personal identity information of others. On January 6, 2015, Judge Bennett sentenced co-conspirator Michael Christopher Marshall, age 35, also of Baltimore, who was the leader of the scheme, to 61 months in prison followed by four years of supervised release for the same offenses.The sentences were announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Brian Murphy of the United States Secret Service - Baltimore Field Office.
According to their plea agreements, from December 2009 to November 2010, Kelly and Marshall selected automobiles to buy from Maryland dealerships. They used the identities of others to finance the purchase of the vehicles because they knew that they would not qualify for financing using their own identities. In some cases, others were willing to allow the defendants to use their identities. In other cases, the defendants used stolen identity information, a counterfeit identification document and an imposter posing as the victim to complete the purchases.
For example, in December 2009, Marshall used the identity of another whose identity was stolen to purchase a 2007 Mercedes S550 from a car dealer in Owings Mills, Maryland.
In May of 2010, Marshall asked Kelly to find an individual who was about the same age as another man whose identity had been stolen. Kelly recruited his uncle, Guillermo Torres, to pose as this victim, and obtained a counterfeit identification bearing the personal identity of the victim but the picture of Torres. On May 28, 2010, Kelly drove Torres to a car dealer where Torres waited outside while Kelly selected a 2007 Mercedes S-550 and completed an application to purchase the car. Torres then signed as the victim and used the counterfeit driver’s license to obtain financing. On that same date, Marshall and Kelly drove Torres to another auto dealer where Torres again posed as the victim and provided the counterfeit driver’s license in order to obtain financing of a 2008 BMW and a 2009 Audi S5.
During Marshall’s participation in the conspiracy, he and his co-conspirators obtained or attempted to obtain between $400,000 and $1 million in financing, and defrauded between 10 and 50 individuals and financial institutions. During Kelly’s participation in the conspiracy, he and his co-conspirators obtained or attempted to obtain between $200,000 and $400,000 in financing, and defrauded at least 10 individuals and institutions.
Guillermo Torres, age 50, of Owings Mills, previously pleaded guilty to his participation in the scheme and is scheduled to be sentenced on January 15, 2015 at 3:00 p.m.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Since the inception of FFETF in November 2009, the Justice Department has filed more than 12,841 financial fraud cases against nearly 18,737 defendants including nearly 3,500 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein commended the U.S. Secret Service for its work in the investigation and thanked Assistant U.S. Attorney Tamera L. Fine, who prosecuted the case.
Twenty Year-Old Man Sentenced for Child PornographyRead the Press Release
SAN JUAN, P.R. – Today, defendant Anthony Alemàn-Pagàn was sentenced to a term of imprisonment of 97 months followed by 18 years of Supervised Release Term by US District Court Judge Daniel R. Domínguez, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico.
On June 13, 2012, Alemàn-Pagàn was charged with transportation, receipt and possession of child pornography. According to the charging document, Alemàn-Pagàn knowingly sent an email message from his personal email account to more than 50 addressees containing two compressed files entitled “Girls.zip” and “Boys.zip, which when extracted revealed images depicting graphic and violent images of child pornography. The indictment revealed that, on several occasions, he received files containing child pornography. On April 3, 2014, the defendant pled guilty to one count of receipt of child pornography.
“I sincerely hope that a sentence of 8 years incarceration sends a clear message to anyone who knowingly searches for, receives and downloads images of child pornography from the internet. If you do or have considered doing so, please think long and hard what a sentence of 8 years incarceration would do to your life and that of your family. The U.S. Department of Justice, through its Project Safe Childhood, continues day-in and day-out investigating and prosecuting online sexual predators of minors,” said United States Attorney for the District of Puerto Rico, Rosa Emilia Rodríguez-Vélez.
The investigation was led by Immigration and Customs Enforcement (ICE) Homeland Security Investigations (DHS) and the Puerto Rico Police Department. The case was prosecuted by Assistant U.S. Attorney Marshal Morgan.Three Individuals Sentenced on Identity Theft and Credit Card Fraud ChargesRead the Press Release
St. Louis, MO – These individuals recruited young United States citizens with promises of large financial gain with relatively limited risk if they agreed to travel throughout the United States and pass credit cards embedded with the numbers obtained from the various databases.
According to court documents, in May 2014, individuals residing in Mexico and Arizona initiated a scheme to fraudulently obtain access to the databases of credit card processing systems. These individuals recruited young United States citizens with promises of large financial gain with relatively limited risk if they agreed to travel throughout the United States and pass credit cards embedded with the numbers obtained from the various databases. Upon obtaining the consent of their recruits, the individuals produced credit cards bearing the names of financial institutions operating in Mexico and embossed with the names of the recruits. The counterfeit credit cards were hidden in items such as magazines and sent through interstate carriers such as Federal Express to the carriers shipping offices. A more experienced individual traveled with the recruits in order to instruct them as to the type of purchases to make and how to handle the logistics of the scheme, such as obtaining transportation and lodging. When the recruits and their supervisor arrived at the designated location, they retrieved the packages from the shipping location, and proceeded to use the counterfeit cards to purchase assorted merchandise.
In the fall of 2013, unknown individuals breached the database of Heartland Payment Systems, a credit card processing system that services business, such as a restaurant in Ellisville, Missouri. Unfortunately, the restaurant did not receive notice of the breach until June 2014. In the intervening time, near May 20, 2014, in Tucson, Arizona, an unidentified individual approached Israel Olivas Jr. with the offer of participating in the scheme. Olivas agreed to participate and Olivas recruited Carlos Alonso Serna, Jr. to join the endeavor. Upon obtaining the consent of Olivas and Serna, the unidentified individual introduced Olivas to Luis Ruben Sanchez-Castro, a citizen of Mexico who entered the United States in Nogales, Arizona, with proper documentation. Sanchez-Castro had participated in the conspiracy on four to five occasions prior to meeting Olivas.
Olivas, Serna and Sanchez-Castro flew from Arizona to Kansas City, Missouri, in May 2014. Sanchez-Castro rented a vehicle using a counterfeit credit card. He and Olivas drove to a FedEx store in the Western District of Missouri to accept delivery of the package containing the counterfeit credit cards that had been sent from Arizona. Between May 22, 2014, and May 26, 2014, Olivas, Serna and Sanchez-Castro traveled from the Western District of Missouri, to the Eastern District of Missouri and continued to the Southern District of Illinois, using counterfeit credit cards embedded with the account numbers of individuals they believed to be residents of the St. Louis Metropolitan area. Of the 155 cards transported into the Eastern District of Missouri, the account numbers of approximately 105 residents of the St. Louis Metropolitan area were embedded on the cards bearing the names of the defendants. As a result of the number of cards, the loss exceeded $70,000Olivas, Serna, Jr. and Sanchez-Castro appeared today for sentencing before United States District Judge Carol E. Jackson. Sanchez-Castro, who was also charged with aggravated identity theft, was sentenced to 45 months incarceration. Olivas was sentenced to 24 months incarceration and Serna, Jr. received a sentence of 30 months incarceration. Each of the defendants was also ordered to pay restitution to the identified victims of the scheme.
Two additional people, Yesenia Melissa Celaya-Rivera and Yennica Guadalupe Soto-Campa, citizens of Mexico, were charged this week in a separate indictment based upon their participation in the scheme between December 12 and December 15, 2014.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
These cases were investigated by the United States Postal Inspection Service, the Illinois State Police and the City of Chesterfield, Missouri Police Department. Assistant United States Attorney Tracy Berry handled the cases for the U.S. Attorney's Office.Texan Sentenced to 84 Months in Prison for Methamphetamine Distribution ConspiracyRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced that a Dallas man was sentenced Thursday to 84 months in prison for a conspiracy to sell methamphetamine in the Shreveport area.
Leonardo A. Gonzalez, 36, of Dallas, was sentenced by U.S. District Judge Donald E. Walter for one count of conspiracy to possess with intent to distribute 5 or more grams of methamphetamine. He was also sentenced to five years of supervised release. According to the February 26, 2014 guilty plea, the DEA conducted two controlled purchases of methamphetamine from codefendant Bruce A. Lee in the Shreveport area in September of 2013. Lee and Gonzalez were later questioned and searched. Agents found 3 ounces of methamphetamine in Lee’s vehicle and 5 ounces of methamphetamine in an apartment Lee was using in Shreveport. Gonzalez admitted to obtaining the drugs from a Texas source and selling them to Lee. Agents recovered $10,000 from Gonzalez’s vehicle.
Lee was sentenced to 60 months in prison and five years of supervised release on July 9, 2014 for one count of conspiracy to possess with intent to distribute 5 or more grams of methamphetamine.
The DEA, Caddo Parish Sheriff’s Office, and the Texas Department of Public Safety took part in the investigation. Assistant U.S. Attorney Allison D. Bushnell prosecuted the case.
Tax Preparer Sentenced to Prison for Filing False ReturnsRead the Press Release
Claimed False Deductions, Business Losses and First Time Homebuyer Credits on Federal Tax Returns
Baltimore, Maryland - U.S. District Judge Marvin J. Garbis sentenced Judianne Horn, age 44, of Owings Mills, Maryland today to 33 months in prison followed by one year of supervised release for aiding in the preparation of false tax returns.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.
According to her plea agreement, from 2007 to at least 2010, Horn prepared approximately 3,000 tax returns for clients. Horn was self-employed and operated a tax preparation business out of her home in 2007 and again in 2010. In 2008 to 2009, Horn was employed at two other tax preparation businesses located in Owings Mills and Randallstown, Maryland. In all these years, Horn filed federal tax returns which she knew included false deductions or false business losses, thus generating a larger tax refund than the client was otherwise lawfully entitled. Horn admitted that 42 of these tax returns were false and that the total tax loss generated by the fraudulent tax returns is $281,764.Additionally, Horn also filed numerous false tax returns which claimed that the client was entitled to the first time home buyer credit. The credit was designed for persons who purchased a new home after April 8, 2008, and before May 1, 2010 and who did not own a home in the prior three years. A qualified taxpayer could receive a credit of up to $8,000. On at least five tax returns, Horn claimed that the taxpayer qualified for this credit, when in fact the taxpayer had not purchased a home at all. Horn directed the full $8,000 credit to a bank account she controlled.
United States Attorney Rod J. Rosenstein praised the IRS Criminal Investigation for its work in the investigation, and thanked Assistant U.S. Attorneys David I. Sharfstein and Gregory R. Bockin, who prosecuted the case.
Statement on Shootings of Albuquerque Police OfficersRead the Press Release
ALBUQUERQUE – This week two Albuquerque Police Department officers were shot and seriously injured in the line of duty. These tragic events underscore the very real dangers that our brave law enforcement officers face every day they are on the job. It is our great hope that both of these officers will recover fully and that the community will support them and their families during this difficult time. We owe our courageous law enforcement officers a tremendous debt of gratitude for their service and sacrifices.
Seymour Man Who Filed False Tax Return, Structured Funds, Is SentencedRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that MICHAEL S. VASATURO, 57, of Seymour, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to two years of probation for filing a false tax return. He was also ordered to pay a $16,000 fine and perform 100 hours of community service.
According to court documents and statements made in court, VASATURO, a business executive, earned supplemental income of approximately $132,500 in 2007 based on a private sale of copper to a scrap metal dealer, but failed to report any of the copper sale income on his 2007 federal income tax return.
VASATURO has previously paid the Internal Revenue Service $80,964.81 for the taxes plus interest and penalties due and owing on his unreported income. He also agreed to forfeit an additional $144,888 in cash that he admits to having “structured” into his bank account to avoid federal cash transaction reporting requirements.
On August 22, 2014, VASATURO pleaded guilty to one count of filing a false tax return.
This matter was investigated by the Internal Revenue Service – Criminal Investigation Division and was prosecuted by Assistant U.S. Attorney Henry K. Kopel.
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(203) 821-3722 [email protected]Sentencing in Cocaine CaseRead the Press Release
United States Attorney Kenyen R. Brown of the Southern District of Alabama announced that Schevris Hawkins, a resident of Mobile, Alabama, was sentenced today by United States District Court Judge Granade to a custody sentence of 113 months.
Hawkins had previously entered a guilty plea to attempt to possess with intent to distribute a kilogram of cocaine.
The matter was investigated by the Office of Homeland Security, HSI, and the Mobile County Sheriff’s Office and was prosecuted by AUSA Deborah Griffin.
Second Man Sentenced in Armed Robbery of Tampa BankRead the Press Release
Tampa, Florida – U.S. District Judge Charlene Edward Honeywell today sentenced Keverick Lavar Brown (27, Tampa) to eight years and nine months in federal prison for bank robbery and brandishing a firearm in furtherance of a crime of violence. The Court also ordered him to forfeit the high-capacity firearm used in the robbery. He pleaded guilty on August 27, 2014.
According to court documents, on March 14, 2014, Brown and Erskine James McKinley committed an armed robbery of a Fifth Third Bank in Tampa. Both wore hats, masks, sunglasses, gloves, and dark clothing. During the robbery, Brown pointed a loaded .45 caliber pistol at bank employees and customers. The men escaped with more than $5,000, but discarded it when a dye pack exploded in the parking lot. Later that same day, law enforcement officers located the men at Brown’s residence in Tampa. Inside the residence, they found items the pair had used in the bank robbery, including their disguises and the firearm.
McKinley (24, Belle Glade) pleaded guilty to his role in the crime on June 12, 2014. He was sentenced on October 12, 2014, to 16 years and 8 months in federal prison.
This case was investigated by the Federal Bureau of Investigation and the Tampa Police Department. It was prosecuted by Assistant United States Attorney Josephine W. Thomas.
Porcupine Woman Charged with False StatementRead the Press Release
United States Attorney Brendan V. Johnson announced that a Porcupine, South Dakota, woman has been indicted by a federal grand jury for False Statement.
Danishia Marshall, age 19, was indicted on December 16, 2014. She appeared before U.S. Magistrate Judge Veronica L. Duffy on January 6, 2015, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 5 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 October 3, 2013, Marshall knowingly and willfully made a materially false, fictitious, and fraudulent statement when she told a special agent that she had been sexually assaulted by an officer when she, in fact, knew she had not been sexually assaulted.
The charge is merely an accusation and Marshall is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Marshall was released on bond pending trial, which has been set for March 17, 2015.
Phoenix Man Sentenced for Distributing MethamphetamineRead the Press Release
United States Attorney Deborah R. Gilg announced that United States District Judge John M. Gerrard sentenced Jose Luis Meza-Lopez, age 39, to 210 months in federal prison on two counts of conviction, followed by 5 years of supervised release. The sentences are to be served concurrently.
Mr. Meza-Lopez, from Phoenix, Arizona, pled guilty to conspiracy to distribute methamphetamine and conspiracy to launder money on October 16, 2014. Meza-Lopez had been involved in the transportation of methamphetamine from Phoenix to Lincoln where it was distributed in the eastern Nebraska area by a group headed by Ramon Garcia. Meza-Lopez prepared cars in Phoenix which transported large quantities of methamphetamine to Lincoln. Those cars then took cash back to Phoenix from Lincoln. He was found responsible for 45 pounds of methamphetamine sent to Lincoln by the organization between February and October 22, 2013. The organization made about 19 round trips during that time. The last known trip resulted in Ramon Garcia’s arrest in Lincoln on October 22, 2013. Garcia was about to exchange a car containing $10,000.00 in cash for one which had just been driven from Phoenix which contained about 4 pounds of methamphetamine.
This case was investigated by the FBI and the Lincoln/Lancaster County Drug Task Force.
Pharmacy Owner and Manager Sentenced for Conspiracy to Distribute Oxycodone and Money Laundering in Fort MyersRead the Press Release
Fort Myers, Florida – United States District Judge John E. Steele has sentenced Cape Coral residents Jeffrey R. Green (51) and Karen S. Hebble (44) for conspiracy to unlawfully distribute oxycodone and money laundering. Green, the former owner of Gulf Coast Medical Pharmacy, was sentenced to seven years in federal prison. Hebble, the pharmacy manager, was sentenced to five years’ imprisonment. The Court entered a money judgment against the defendants, in the amount of $4,918,603.36, representing the proceeds earned from unlawfully selling oxycodone. Green was also ordered to forfeit $1,253,419.09 seized from his company’s bank account; $347,423.56 used to pay off the mortgage on his Cape Coral home; his Florida pharmacy technician’s license; and all of his interest in both Gulf Coast Medical Pharmacy, Inc. and Gulf Coast Infusion Center, Inc.
Green and Hebble were found guilty by a federal jury on May 1, 2014.
According to testimony and evidence presented at trial, from 2009 through October 6, 2011, Green and Hebble filled, or caused to be filled, prescriptions for oxycodone that had not been issued for legitimate medical purposes. They also distributed oxycodone without the supervision and control of a licensed pharmacist.
This case was investigated by the Drug Enforcement Administration Task Force, which includes the Naples Police Department, the Charlotte County Sheriff’s Office, and other local law enforcement agencies. This case was prosecuted by Assistant United States Attorneys Yolande G. Viacava, Robert P. Barclift, and David Lazarus.
Pharmaceutical Manufacturer Daiichi-Sankyo to Pay $39 Million to Resolve Allegations that It Paid Kickbacks to PhysiciansRead the Press Release
Boston – Daiichi Sankyo, Inc., a global pharmaceutical company with its U.S. headquarters in New Jersey, has agreed to pay the United States and state Medicaid programs $39 million to resolve allegations that it violated the False Claims Act by using lavish meals and speaker program honoraria as kickback vehicles to induce physicians to prescribe the drugs Azor, Benicar, Tribenzor, and Welchol.
“Drug companies are prohibited from using lavish entertainment and padded speaker program payments to induce physicians to prescribe their drugs for beneficiaries of federal health care programs,” said Carmen M. Ortiz, U.S. Attorney for the District of Massachusetts. “Settlements like this one show that the government will continue to pursue health care companies that use kickbacks to promote their products.”
The settlement resolves allegations that Daiichi caused the submission of false claims for Azor, Benicar, Tribenzor, and Welchol. The claims were false because they resulted from kickbacks that Daiichi provided to physicians who prescribed the drugs. Specifically, it is alleged that Daiichi’s kickbacks took the form of honoraria payments, meals and other remuneration to physicians who participated, or supposedly participated, in Physician Opinion & Discussion programs (PODs) from Jan. 1, 2005, through March 31, 2011, and other speaker programs from Jan. 1, 2004, through Feb. 4, 2011. The United States contends that the honoraria, meals and other remuneration were kickbacks because Daiichi paid physicians who participated in the speaker programs even if, among other things: (1) the honoraria recipient spoke only to members of his or her own staff in his or her own office; (2) the physician participants in PODs took turns accepting a “speaker” honoraria for duplicative discussions; (3) the audience included the honoraria recipient’s spouse; (4) the honoraria recipient did not speak at all because the event was cancelled beforehand; and/or (5) the associated dinners were lavish and at times even exceeded Daiichi’s own internal cost limitations of $140 per person.
“The Anti-Kickback Statute prohibits payments intended to influence a physician’s ordering or prescribing decisions,” said Acting Assistant Attorney General Joyce R. Branda for the Department of Justice’s Civil Division. “The Department of Justice is committed to preserving the independence and objectivity of those decisions, which is a cornerstone of our public health programs.”
"This settlement is evidence of the continuing efforts of the Defense Criminal Investigative Service and our law enforcement partners to protect medical beneficiaries and assure integrity within the pharmaceutical industry," said Craig W. Rupert, Special Agent in Charge of the DCIS Northeast Field Office, the investigative arm of the Office of the Inspector General, Department of Defense. "The Department of Defense purchases substantial quantities of pharmaceuticals and is affected by fraud schemes within this industry. DCIS will continue to aggressively pursue allegations of fraud and corruption harmful to U.S. taxpayers and the Department."
"It is vital to veterans receiving care at the VA that they are prescribed safe and effective medications for the sole purpose of healing their ailments,” said Special Agent in Charge Jeffrey Hughes. “The VA Office of Inspector General will continue to work with our partners in the law enforcement community to ensure that is the case.”
“Schemes such as this are particularly abhorrent,” said Inspector General Daniel R. Levinson for the U.S. Department of Health and Human Services. “Manufacturers and physicians who engage in them are cheating Medicare and Medicaid out of millions of dollars and threatening programs upon which many elderly and disabled Americans rely. My office will take whatever steps necessary to guard against improper alliances between manufacturers of drugs and those who prescribe them. Through our Corporate Integrity Agreement we will be closely monitoring Daiichi.”
“This settlement is another example of the FBI’s commitment to ensure those who refuse to play by the rules and provide illegal incentives to influence the decision-making of health care providers are held accountable,” said Vincent B. Lisi, Special Agent in Charge of the FBI’s Boston Division.”
The Anti-Kickback Statute was enacted to ensure that physicians’ medical judgment is not compromised by improper payments or gifts. The statute generally prohibits anyone from offering, paying, soliciting or receiving remuneration to induce referrals of items or services covered by federal health care programs, including Medicare and Medicaid.
As part of the settlement, Daiichi has agreed to enter into a Corporate Integrity Agreement with the Department of Health and Human Services, Office of Inspector General (HHS-OIG), which obligates Daiichi to undertake substantial internal compliance reforms for the next five years.
The settlement announced today stems from a complaint filed by Kathy Fragoules, a former Daiichi sales representative, under the whistleblower provisions of the False Claims Act, which authorize private parties to sue on behalf of the United States, and to receive a portion of any recovery. Ms. Fragoules will receive $6.1 million of the federal recovery.
This matter was investigated by the Department of Defense Criminal Investigative Service; the Department of Veterans Affairs, Office of the Inspector General; HHS-OIG; and the Federal Bureau of Investigation. The matter was handled by Assistant U.S. Attorneys Gregg Shapiro, Lisa Asiaf, and Giselle Joffre of Ortiz’ office; Department of Justice Trial Attorney Douglas Rosenthal; Zachary Cunha, currently an Assistant U.S. Attorney in the District of Rhode Island; and Kimberly Friday, currently an Assistant U.S. Attorney in the Northern District of California.
The case is captioned U.S. ex rel. Fragoules v. Daiichi Sankyo, Inc., Civil Action No. 10-10420 (D. Mass.).
Palmetto Woman Sentenced to More Than Five Years for Embezzling FundsRead the Press Release
Tampa, Florida – United States District Judge Steven D. Merryday has sentenced Beverly Sue Gingell (61, Palmetto) to five years and three months in federal prison for wire fraud and obstructing and impeding the administration of the Internal Revenue Service. She was also ordered to pay restitution in the amount of $651,347.42 and to forfeit $745,000, which represents the proceeds of the fraud.
Gingell pleaded guilty on October 22, 2014.
According to court documents, Gingell was formerly employed as the finance manager at Pro-Link, a company located in Bradenton. Gingell falsely represented to the company that she was a Certified Public Accountant with years of experience as a comptroller, and was an enrolled IRS agent, when she was not. From July 2010, through March 2011, Gingell embezzled $745,000 from the company. She did so by sending money to her own bank account via wire transfer and by obtaining money orders payable to herself and others. She used one wire transfer to pay off the remaining balance on her mortgage. Gingell also misrepresented the results of an IRS audit to Pro-Link’s owners, and effectively concealed her forgery on documents to the IRS, which resulted in a substantial tax liability to the company.
This case was part of a joint investigative effort by the Federal Bureau of Investigation, the Internal Revenue Service – Criminal Investigation, and the Bradenton Police Department. It was prosecuted by Assistant United States Attorney Kelley Howard-Allen.
Owner of Miami Home Health Company Pleads Guilty for Role in $32 Million Medicare Fraud SchemeRead the Press Release
A Miami owner of a home health care company pleaded guilty today in connection with a $32 million Medicare fraud scheme.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office and Special Agent in Charge Derrick Jackson of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office made the announcement.
Felix Gonzalez, 45, of Miami, pleaded guilty to one count of conspiracy to commit health care fraud before U.S. District Judge Kathleen M. Williams of the Southern District of Florida. A sentencing hearing is scheduled for March 19, 2015.
According to his plea documents, Gonzalez was an owner of AA Advanced Care Inc. (AA Advanced), a Miami home health care agency that purported to provide home health and therapy services to Medicare beneficiaries. In connection with his guilty plea, Gonzalez admitted that he and his co-conspirators operated AA Advanced for the purpose of billing the Medicare program for, among other things, expensive physical therapy and home health care services that were not medically necessary or not provided at all.
Gonzalez further admitted that he negotiated and paid kickbacks and bribes to patient recruiters in exchange for patient referrals, as well as prescriptions, plans of care (POCs) and certifications for medically unnecessary therapy and home health services for Medicare beneficiaries. Gonzalez admitted that he and his co-conspirators used these prescriptions, POCs and medical certifications to fraudulently bill the Medicare program for home health care services.
From approximately January 2006 through March 2009, AA Advanced submitted approximately $32 million in claims for home health services that were not medically necessary or not provided, and Medicare paid approximately $22 million for these fraudulent claims.
The case was investigated by the FBI and HHS-OIG, and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. This case is being prosecuted by Assistant Chief Joseph S. Beemsterboer and Trial Attorney Kelly Graves of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,000 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers. To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Owner of Financial Services Company Pleads Guilty to Cashing More Than $17 Million in Fraudulent Federal Tax Refund ChecksRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces that Wilson Benjamin (55, Apopka) has pleaded guilty to theft of government property. He faces a maximum penalty of 10 years in federal prison. A sentencing date has not yet been scheduled.
According to the plea agreement, Benjamin used his company, Benjamin Financial Services, to cash approximately 2,000 fraudulently filed federal income tax return checks worth $17.8 million. More than 400 of the returns were filed in the names of deceased taxpayers.
This case was investigated by the Internal Revenue Service - Criminal Investigation and the United States Secret Service. It is being prosecuted by Assistant United States Attorney Vincent S. Chiu.
Owner of Allergy Lab Sentenced for Faking Allergy Test ResultsRead the Press Release
ATLANTA - Rahsaan Jackson Garth has been sentenced to federal prison for committing health-care fraud by faking the results of allergy tests that patients’ doctors had ordered.
“Garth endangered the health and safety of citizens, including children, by faking their allergy test results and misleading their doctors,” said United States Attorney Sally Quillian Yates. “People trust doctors to make decisions that could permanently affect a patient’s health based on those results. Garth put his own financial wealth ahead of people’s health.”
“The defendant placed the pursuit of his own prosperity ahead of the well-being of patients, many of whom were children and the elderly” said Derrick L. Jackson, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General in Atlanta. “Today’s sentence should serve as an example of the OIG’s commitment to pursue those who seek to exploit the trust and confidence of patients and doctors for their own gain.”
According to United States Attorney Yates, the charges and other information presented in court: The defendant, Rahsaan Jackson Garth, a/k/a/ R. Jackson Garth, opened an allergy laboratory in 2011, named Polaris Allergy Labs, Inc., located in East Point, Ga. Doctors sent their patients’ blood samples to Polaris Allergy Labs, Inc. to be tested for food and environmental allergies. Beginning in approximately September 2012, and continuing through February 2014, Garth directed his allergy laboratory technician not to test some of the blood samples for allergens in order to save money by not using the allergen reagents necessary for testing. Instead of testing the blood, Garth created fake allergy test result reports for the patients, and then had the fake test result reports sent back to the patients’ doctors.
Sometimes Garth created results showing no allergic reaction, and other times he created results showing an allergic reaction, in order to avoid raising the suspicions of the doctors to whom he sent fake test result reports. The patients’ doctors were unaware that Garth was sending them fake allergy test results for their patients, putting each of those patients at risk.
After creating a fake allergy test report for a patient, Garth caused a bill to be submitted to the patient’s health care benefit program, even though no service had in fact been provided.During the investigation, law enforcement officials notified the doctors and patients who were potentially affected by Garth’s fraudulent testing activities.
Garth, 40, of Hampton, Ga., was sentenced by United States District Judge Timothy C. Batten, Sr., to three years and ten months in federal prison, three years of supervised release, ordered to pay $246,536.50 in restitution, and perform 100 hours of community service. On July 22, 2014, Garth pleaded guilty to one count of healthcare fraud.
This case is being investigated by Special Agents of the U.S. Department of Health and Human Services, Office of the Inspector General.Assistant United States Attorney Mary L. Webb prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Okreek Man Sentenced for Assault by Strangulation and SuffocationRead the Press Release
United States Attorney Brendan V. Johnson announced that an Okreek, South Dakota, man convicted of Assault by Strangulation and Suffocation was sentenced on January 5, 2015, by U.S. District Court Judge Roberto A. Lange.
Joe Scott, age 36, was sentenced to 27 months in custody, 2 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Scott was indicted by a federal grand jury on April 22, 2014. He pled guilty on October 27, 2014.
The conviction stems from an incident on or about March 23, 2014, when Scott, his girlfriend and her three children were traveling from Mission to Okreek, where Scott lives. Scott was intoxicated, and he started to argue with his girlfriend and threatened her. While she was driving, he struck her and put his hands around her throat, which impacted her normal breathing and the circulation of blood in her neck and throat. He also reached over from the passenger seat and grabbed the steering wheel and directed the vehicle across the centerline and toward oncoming vehicles. The victim fought to retain control of the steering wheel and was able to get the vehicle back into the proper lane. Once at their destination, Scott struck, pinned, and strangled the victim again.
This case was investigated by Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Tim Maher prosecuted the case.
Scott was immediately turned over to the custody of the U.S. Marshals Service.
New York Alien Smuggler SentencedRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that Roberto Rivera-Ortiz, 28, a resident of the New York City area, was sentenced today in United States District Court in Burlington following his guilty plea to a charge that he made false statements to members of the United States Border Patrol. Chief U.S. District Judge Christina Reiss sentenced Rivera-Ortiz to time served, to be followed by one year of supervised release. As a condition of supervised release, the court ordered Rivera-Ortiz to perform 100 hours of community service.
According to court records, on the morning of September 2, 2014, Border Patrol agents in Derby Line encountered a male and a female after they had walked across the United States-Canadian border through a clump of trees in a residential area. When the two individuals noticed a marked Border Patrol cruiser nearby, they began running in a southerly direction. Agents apprehended the male, a Mexican national with no status in the United States. The female, who proved to be a citizen of El Salvador, was arrested the next day.
At about the same time, another Border Patrol agent noticed Rivera-Ortiz standing beside a vehicle on a street in Derby Line, near where the aliens had been encountered. The hood on Rivera-Ortiz's vehicle was up and he was talking on a cellphone. Immigrations records showed that Rivera-Ortiz's car had entered Canada at Niagara Falls last June, and had entered the United States at Derby Line earlier that morning. When questioned about his nationality and immigration status, Rivera-Ortiz appeared nervous. Agents escorted the defendant to the Newport Border Patrol station, where they soon established that he had transported the two aliens from Montreal to just north of the border, let them out to cross the border on foot, entered the United States lawfully in his car and was in the process of attempting to pick them up to drive them to New York when he was approached by the Border Patrol.
Rivera-Ortiz is represented by Assistant Federal Public Defender David McColgin. The prosecutor is Assistant U.S. Attorney Gregory Waples.
Mustafa Kamel Mustafa, AKA “Abu Hamza,” Sentenced in Manhattan Federal Court to Life ImprisonmentRead the Press Release
Convicted After Trial of Multiple Counts of Providing Material Support to al Qaeda
Charges Based on Participating in a Deadly Hostage-Taking in Yemen,
Conspiring to Establish a Terrorism Training Camp in the United States, and
Sending One of his Followers to Train and Fight with al Qaeda in Afghanistan
Assistant Attorney General for National Security John P. Carlin and U.S. Attorney Preet Bharara for the Southern District of New York announced that Mustafa Kamel Mustafa, aka “Abu Hamza,” aka “Abu Hamza al Masri,” (“Abu Hamza”) was sentenced today in Manhattan federal court to life imprisonment by U.S. District Judge Katherine B. Forrest for his participation in a hostage-taking in Yemen in 1998 that resulted in four deaths, a conspiracy to establish a terrorist training camp in Bly, Oregon, and sending a follower to train and fight with al Qaeda in Afghanistan in 2000. Abu Hamza, who was extradited from the United Kingdom to the Southern District of New York in October 2012, was found guilty on May 19, 2014, following a four-week jury trial, of each of the 11 charges he faced.
“Abu Hamza is an unrepentant all-purpose terrorist,” said Assistant Attorney General Carlin. “With today’s sentence, he is being held accountable for the many ways in which he supported terrorism and other terrorists through much of his life, including his role in a hostage-taking in Yemen, his plot to create a terrorist training camp on U.S. soil, and his facilitation of violent jihad in Afghanistan. This case was charged over ten years ago and was tried after years of extradition proceedings—and is but one example of our resolve to pursue those who threaten the United States and our interests anywhere in the world, no matter how long it takes. I applaud the many prosecutors, agents, and analysts who have devoted years of hard work to the pursuit of justice in this case.”
“Abu Hamza’s blood-soaked journey from cleric to convict, from Imam to inmate, is now complete,” said U.S. Attorney Bharara. “In May, after a fair and public trial, a jury pronounced Abu Hamza guilty for his leadership and support of, as well as participation in, terrorist activities, ranging from a fatal hostage-taking in Yemen to establishing a terrorist training camp in Oregon to sending a follower to aid Al Qaeda in Afghanistan. After years of fighting extradition, Abu Hamza finally faced justice, as all those who engage in terrorism against innocent civilians must, here in the U.S., and all around the globe, as the terrible events in Paris remind us.”
According to the evidence presented at trial, statements made during other public proceedings including today’s sentencing, and other court documents:
Hostage-Taking in Yemen in December 1998
On Dec. 28, 1998, in Yemen, hostage-takers stormed a caravan of sport utility vehicles carrying 16 tourists, including two United States citizens, and took the tourists hostage by force. Before the hostage-taking, Abu Hamza issued a public warning to “infidels” not to travel to Yemen. In addition, five days prior to the hostage-taking, Abu Hamza’s stepson and other associates of Abu Hamza were arrested in Yemen. During the hostage-taking, the hostages told their victims that they were taken prisoner to free the hostage-takers’ “friends.”
Before the hostage-taking, Abu Hamza provided the leader of the hostage-takers with a satellite telephone, and subsequently spoke with him on that satellite telephone the night before the hostage-taking and during the hostage-taking. During the call on the day of the hostage-taking, Abu Hamza agreed to act as an intermediary on behalf of the hostage-takers. Abu Hamza also provided advice to the leader of the hostage-takers over the telephone.
On Dec. 29, 1998, the Yemeni military launched a rescue operation to free the hostages. The hostage-takers fought the Yemeni military, using the hostages as human shields. During the rescue operation, four of the hostages were killed and several others were wounded.
Subsequently, in a recorded interview with one of the surviving hostages conducted at his mosque, Abu Hamza said that hostage-taking was “a good thing” under Islam, that people had been warned to stay out of Yemen, that the plan was to hold the tourists captive “until the government let my people go,” and that the hostage-takers “snatched you to exchange you.”
Efforts to Create a Terrorist Training Camp in Bly, Oregon, in 1999
In late 1999, Abu Hamza and several of his followers, including Oussama Abdullah Kassir, Haroon Rashid Aswat, Earnest James Ujaama, and others, attempted to create a terrorist training camp to support al Qaeda on property located in Bly, Oregon. The primary purpose of the Bly, Oregon, camp was to provide various types of terrorist training, including weapons training. In late November 1999, at Abu Hamza’s direction, Kassir and Aswat traveled from London, England, to Bly to assist in setting up the camp. Kassir brought with him to the camp a manual on the use of sarin nerve gas and letters of appreciation to Usama bin Laden and Abu Hamza. Aswat subsequently was present at an al Qaeda guest house in Pakistan.
On May 12, 2009, after a four-week jury trial in this district, Kassir was convicted of various criminal offenses, including conspiring to provide material support to terrorists and to al Qaeda, and conspiracy to kill persons overseas, as a result of Kassir’s participation in the efforts to establish the Bly terrorist training camp. On Sept. 15, 2009, United States District Judge John F. Keenan sentenced Kassir to multiple terms of life in prison. The conviction was subsequently affirmed by the Court of Appeals.
Aswat was arrested in Zambia in July 2005 and then deported to England, where he was arrested at the request of the United States, pursuant to a warrant issued in this district. Aswat was extradited to the United States on Oct. 21, 2014. The charges against Aswat are currently pending, and trial is scheduled to commence before Judge Forrest on June 1, 2015.
Facilitating Violent Jihad in Afghanistan in 2000 and 2001
In November 2000, Abu Hamza requested that Ujaama escort another one of Abu Hamza’s followers, Feroz Abassi, from London to Ibn Sheikh al-Libi, a commander at a terrorist training camp in Afghanistan. Thereafter, Ujaama and Abassi traveled from London to Pakistan. Ujaama and Abassi then separately entered Afghanistan. Abu Hamza subsequently conveyed instructions for Abassi to contact Ibn Sheikh al-Libi, who was expecting Abassi. Thereafter, Abassi passed through an al Qaeda safe house in Afghanistan, attended al Qaeda’s al Faruq training camp, and met with senior al Qaeda leaders. In December 2001, United States forces took Abassi into custody in Afghanistan.
In addition, from the spring of 2000 through late 2001, Abu Hamza provided goods and services to the Taliban by, among other things, directing Ujaama to deliver money to Taliban-controlled parts of Afghanistan.
Ujaama was arrested in 2002 and testified against Abu Hamza as a cooperating witness for the government.
* * *
Abu Hamza, 56, a naturalized citizen of the United Kingdom, was convicted after trial of 11 offenses, including conspiracy to take hostages; hostage-taking; conspiracy to provide material support to terrorists; providing material support to terrorists; conspiracy to provide material support to a foreign terrorist organization (al Qaeda); providing material support to a foreign terrorist organization (al Qaeda); and conspiracy to provide goods and services to the Taliban.
In addition to the prison term, Abu Hamza was ordered to pay a $1,100 special assessment fee. In addressing Abu Hamza's conduct, Judge Forrest described it as "barbaric, misguided and wrong," and remarked, "It is important to me that you have not expressed sympathy for the victims of the Yemeni kidnappings."
Abu Hamza’s conviction is the result of the close cooperative efforts of the U.S. Attorney’s Office for the Southern District of New York, the Justice Department's National Security Division, the Federal Bureau of Investigation, the New York City Police Department, the United States Marshals Service, and New Scotland Yard in the United Kingdom.
The U.S. Department of Justice’s Office of International Affairs contributed extraordinary assistance with the extradition in this case. The U.S. Attorney also thanked the FBI’s Seattle Field Office, the Home Office of the United Kingdom, the United States Department of State, and the United States Department of the Treasury’s Office of Foreign Assets Control for their assistance.
The prosecution is being handled by the Office’s Terrorism and International Narcotics Unit, with assistance from the Counterterrorism Section of the Justice Department's National Security Division. Assistant U.S. Attorneys John P. Cronan, Edward Y. Kim and Ian McGinley are in charge of the prosecution.
Mustafa Kamel Mustafa, A/k/a “Abu Hamza,” Sentenced in Manhattan Federal Court to Life in PrisonRead the Press Release
Charges Based on Participating in a Deadly Hostage-Taking in Yemen, Conspiring to Establish a Terrorism Training Camp in the United States, and Sending One of his Followers to Train and Fight with al Qaeda in Afghanistan
Preet Bharara, the United States Attorney for the Southern District of New York, and John P. Carlin, Assistant Attorney General for National Security, announced that MUSTAFA KAMEL MUSTAFA, a/k/a “Abu Hamza,” a/k/a “Abu Hamza al Masri,” (“ABU HAMZA”) was sentenced today in Manhattan federal court to life in prison by U.S. District Judge Katherine B. Forrest, for his participation in a hostage-taking in Yemen in 1998 that resulted in four deaths, a conspiracy to establish a terrorist training camp in Bly, Oregon, and sending a follower to train and fight with al Qaeda in Afghanistan in 2000. ABU HAMZA, who was extradited from the United Kingdom to the Southern District of New York in October 2012, was found guilty on May 19, 2014, following a four-week jury trial, of each of the 11 charges he faced.
Manhattan U.S. Attorney Preet Bharara said: “Abu Hamza’s blood-soaked journey from cleric to convict, from Imam to inmate, is now complete. In May, after a fair and public trial, a jury pronounced Abu Hamza guilty for his leadership and support of, as well as participation in, terrorist activities, ranging from a fatal hostage-taking in Yemen to establishing a terrorist training camp in Oregon to sending a follower to aid Al Qaeda in Afghanistan. After years of fighting extradition, Abu Hamza finally faced justice, as all those who engage in terrorism against innocent civilians must, here in the U.S., and all around the globe, as the terrible events in Paris remind us.”
Assistant Attorney General Carlin said: “Abu Hamza is an unrepentant all-purpose terrorist. With today’s sentence, he is being held accountable for the many ways in which he supported terrorism and other terrorists through much of his life, including his role in a hostage-taking in Yemen, his plot to create a terrorist training camp on U.S. soil, and his facilitation of violent jihad in Afghanistan. This case was charged over ten years ago and was tried after years of extradition proceedings—and is but one example of our resolve to pursue those who threaten the United States and our interests anywhere in the world, no matter how long it takes. I applaud the many prosecutors, agents, and analysts who have devoted years of hard work to the pursuit of justice in this case.”
According to the evidence presented at trial, statements made during other public proceedings including today’s sentencing, and other court documents:
Hostage-Taking in Yemen in December 1998
On December 28, 1998, in Yemen, hostage-takers stormed a caravan of sport utility vehicles carrying 16 tourists, including two United States citizens, and took the tourists hostage by force. Before the hostage-taking, ABU HAMZA issued a public warning to “infidels” not to travel to Yemen. In addition, five days prior to the hostage-taking, ABU HAMZA’s stepson and other associates of ABU HAMZA were arrested in Yemen. During the hostage-taking, the hostages told their victims that they were taken prisoner to free the hostage-takers’ “friends.”
Before the hostage-taking, ABU HAMZA provided the leader of the hostage-takers with a satellite telephone, and subsequently spoke with him on that satellite telephone the night before the hostage-taking and during the hostage-taking. During the call on the day of the hostage-taking, ABU HAMZA agreed to act as an intermediary on behalf of the hostage-takers. ABU HAMZA also provided advice to the leader of the hostage-takers over the telephone.
On December 29, 1998, the Yemeni military launched a rescue operation to free the hostages. The hostage-takers fought the Yemeni military, using the hostages as human shields. During the rescue operation, four of the hostages were killed and several others were wounded.
Subsequently, in a recorded interview with one of the surviving hostages conducted at ABU HAMZA’s mosque, ABU HAMZA said that hostage-taking was “a good thing” under Islam, that people had been warned to stay out of Yemen, that the plan was to hold the tourists captive “until the government let my people go,” and that the hostage-takers “snatched you to exchange you.”
Efforts to Create a Terrorist Training Camp in Bly, Oregon in 1999
In late 1999, ABU HAMZA and several of his followers, including Oussama Abdullah Kassir, Haroon Rashid Aswat, Earnest James Ujaama, and others, attempted to create a terrorist training camp to support al Qaeda on property located in Bly, Oregon. The primary purpose of the Bly, Oregon, camp was to provide various types of terrorist training, including weapons training. In late November 1999, at ABU HAMZA’s direction, Kassir and Aswat traveled from London, England, to Bly to assist in setting up the camp. Kassir brought with him to the camp a manual on the use of sarin nerve gas and letters of appreciation to Usama bin Laden and ABU HAMZA. Aswat subsequently was present at an al Qaeda guest house in Pakistan.
On May 12, 2009, after a four-week jury trial in this District, Kassir was convicted of various criminal offenses, including conspiring to provide material support to terrorists and to al Qaeda, and conspiracy to kill persons overseas, as a result of Kassir’s participation in the efforts to establish the Bly terrorist training camp. On September 15, 2009, United States District Judge John F. Keenan sentenced Kassir to multiple terms of life in prison. The conviction was subsequently affirmed by the Court of Appeals.
Aswat was arrested in Zambia in July 2005 and then deported to England, where he was arrested at the request of the United States, pursuant to a warrant issued in this District. Aswat was extradited to the United States on October 21, 2014. The charges against Aswat are currently pending, and trial is scheduled to commence before Judge Forrest on June 1, 2015.
Facilitating Violent Jihad in Afghanistan in 2000 and 2001
In November 2000, ABU HAMZA requested that Ujaama escort another one of ABU HAMZA’s followers, Feroz Abassi, from London to Ibn Sheikh al-Libi, a commander at a terrorist training camp in Afghanistan. Thereafter, Ujaama and Abassi traveled from London to Pakistan. Ujaama and Abassi then separately entered Afghanistan. ABU HAMZA subsequently conveyed instructions for Abassi to contact Ibn Sheikh al-Libi, who was expecting Abassi. Thereafter, Abassi passed through an al Qaeda safe house in Afghanistan, attended al Qaeda’s al Faruq training camp, and met with senior al Qaeda leaders. In December 2001, United States forces took Abassi into custody in Afghanistan.
In addition, from the spring of 2000 through late 2001, ABU HAMZA provided goods and services to the Taliban by, among other things, directing Ujaama to deliver money to Taliban-controlled parts of Afghanistan.
Ujaama was arrested in 2002 and testified against ABU HAMZA as a cooperating witness for the Government.
ABU HAMZA, 56, a naturalized citizen of the United Kingdom, was convicted after trial of the following 11 offenses:
One - Conspiracy to take hostages (18 U.S.C. § 1203)
Two - Hostage-taking (18 U.S.C. §§ 1203, 2)
Three - Conspiracy to provide material support to terrorists (18 U.S.C. § 371)
Four - Providing material support to terrorists (18 U.S.C. §§ 2339A, 2)
Five - Conspiracy to provide material support to a foreign terrorist organization (al Qaeda) (18 U.S.C. §2339B)
Six - Providing material support to a foreign terrorist organization (al Qaeda) (18 U.S.C. §§ 2339B, 2)
Seven - Conspiracy to provide material support to terrorists (18 U.S.C. § 2339A)
Eight - Providing material support to terrorists (18 U.S.C. §§ 2339A, 2)
Nine - Conspiracy to provide material support to a foreign terrorist organization (al Qaeda) (18 U.S.C. § 2339B)
Ten - Providing material support to a foreign terrorist organization (al Qaeda) (18 U.S.C. §§ 2339B, 2)
Eleven - Conspiracy to provide goods and services to the Taliban (18 U.S.C. § 371)
In addition to the prison term, ABU HAMZA was ordered to pay a $1,100 special assessment fee. In addressing ABU HAMZA’s conduct, Judge Forrest described it as “barbaric, misguided and wrong,” and remarked, “It is important to me that you have not expressed sympathy for the victims of the Yemeni kidnappings.”
Abu Hamza’s conviction is the result of the close cooperative efforts of the U.S. Attorney’s Office for the Southern District of New York, the Justice Department's National Security Division, the Federal Bureau of Investigation, the New York City Police Department, the United States Marshals Service, and New Scotland Yard in the United Kingdom.
The U.S. Department of Justice’s Office of International Affairs contributed extraordinary assistance with the extradition in this case. The U.S. Attorney also thanked the FBI’s Seattle Field Office, the Home Office of the United Kingdom, the United States Department of State, and the United States Department of the Treasury’s Office of Foreign Assets Control for their assistance.
The prosecution is being handled by the Office’s Terrorism and International Narcotics Unit, with assistance from the Counterterrorism Section of the Justice Department's National Security Division. Assistant U.S. Attorneys John P. Cronan, Edward Y. Kim and Ian McGinley are in charge of the prosecution.
Medical College of Wisconsin, Inc. Pays $840,000 to Settle Alleged False Claims for NeurosurgeriesRead the Press Release
United States Attorney James L. Santelle of the Eastern District of Wisconsin announced today that the Medical College of Wisconsin, Inc. (MCW) has paid the federal government $840,000 to resolve allegations that it violated the False Claims Act. MCW is alleged to have knowingly billed federal healthcare programs for neurosurgeries involving residents who did not receive the required level of supervision from teaching physicians.
MCW is a medical school in Milwaukee, Wisconsin, that employs teaching physicians who provide medical care to patients and supervise residents. The civil settlement resolves a lawsuit filed under the qui tam—or whistleblower—provisions of the False Claims Act, which allows private citizens with knowledge of fraud to bring a civil action on behalf the United States and share in any recovery. As part of the resolution, the whistleblower will receive a share of the settlement.
The qui tam complaint alleged that MCW submitted false claims to the Medicare and TRICARE programs for teaching physicians’ services in performing neurosurgeries involving residents. If a resident helps perform a surgery, Medicare will pay for a teaching physician’s services only if he was present for the surgery’s key parts and either remained immediately available throughout the surgery or else arranged for a back-up surgeon to be available. MCW allegedly billed for teaching physicians’ services even though they were responsible for multiple overlapping surgeries and did not satisfy those supervision requirements. The settlement resolves certain claims submitted between April 16, 2006, and March 31, 2013. MCW denied the allegations.
“The settlement we are announcing today reflects the focused, sustained, and purposeful efforts of the Justice Department, together with our partnered federal agencies, to investigate and redress fraud in our health care system,” said Mr. Santelle. “Under the authority of the False Claims Act, we are aggressive yet even-handed in pursuing health care fraud to ensure that taxpayer dollars are spent lawfully and that federal monies that should not have been paid are returned with an appropriate penalty.”
Mr. Santelle specially commended the Federal Bureau of Investigation and the Offices of the Inspectors General for the Department of Health and Human Services and the Department of Defense for the investigative efforts that led to today’s settlement. The case was handled by Assistant United States Attorney Matthew D. Krueger.
McLaughlin Man Sentenced for Assault Resulting in Serious Bodily InjuryRead the Press Release
United States Attorney Brendan V. Johnson announced that a McLaughlin, South Dakota, man convicted of Assault Resulting in Serious Bodily Injury was sentenced on January 5, 2015, by U.S. District Judge Charles B. Kornmann. He was found guilty by a federal jury on October 8, 2014, following a two day trial in Pierre, South Dakota.
Brett Roach, age 27, was sentenced to 120 months in custody, 2 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund. Roach was indicted by a federal grand jury on June 6, 2013.
The conviction stems from an incident on May 22, 2013, when Roach, who was babysitting his wife’s three young children, forcefully threw one of the children off the bed and across the room after the child repeatedly woke him up. The Defendant then noticed the ten-month old victim was unconscious and called 911 to summon an ambulance. The victim was transported to the Mobridge Regional Hospital and then airlifted to Sanford USD Medical Center in Sioux Falls due to the severity of the child’s head injuries, which included bilateral skull fractures and subdural hematomas. The child also suffered multiple bruises over numerous parts of the body. The victim was in critical condition for an extended period of time.
This case was investigated by the Federal Bureau of Investigation and the Bureau of Indian Affairs, Standing Rock Agency. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Roach was immediately turned over to the custody of the U.S. Marshals Service to begin serving his sentence.
Maryland Man Pleads Guilty to Assaulting Transgender Girl in July 2014 Attack on Metrorail TrainDefendant Threatened, Harassed and Stabbed 15-Year-Old VictimRead the Press Release
WASHINGTON – Reginald Klaiber, 25, of Greenbelt, Md., pled guilty today to a charge of assault with a dangerous weapon, with a hate crime enhancement, for stabbing a transgender girl while she was on board a Metrorail train, U.S. Attorney Ronald C. Machen Jr. announced.
Klaiber, also known as Reginald Kaliber, pled guilty to the charge in the Superior Court of the District of Columbia. The Honorable Juliet McKenna scheduled sentencing for March 11, 2015. Because the offense was a hate crime, the charge includes a bias enhancement. Assault with a dangerous weapon is punishable by up to 10 years in prison. However, with the bias enhancement, it is punishable by up to 15 years of incarceration.
According to the government’s evidence, Klaiber confronted the 15-year-old victim on July 30, 2014, at about 4:30 p.m., while both were on a Green Line train approaching the Fort Totten Metro station in Northeast Washington. The victim, who was dressed in women’s clothing, was with two of her friends on the train. Klaiber attempted to engage her in conversation and she asked him to leave her alone. Klaiber began harassing her, saying, among other things, “Are you a boy, you are a boy, right?” and “Why you be looking like a woman?”
The victim again asked Klaiber to leave her alone and to get away. As the train pulled into the Fort Totten station, she stood up. Klaiber stood up as well, pulled out a knife, grabbed the victim in a bear hug and stabbed her in the back. One of the victim’s friends sprayed Klaiber in the face with Mace or pepper spray. Klaiber released the victim, and she and her friends fled through interior train doors into a different Metro car. Klaiber continued to follow them until the exterior doors opened. The victim and her friends then ran into the Metro station, with Klaiber making threatening and harassing statements as he kept following them.
One of the friends pointed out the defendant to Metro Transit Police officers, who apprehended him just outside the station. Police recovered a black folding knife with a three-inch, partially serrated blade in a search of the defendant.
The victim, who later identified Klaiber as her assailant, required medical treatment for her injuries.
Klaiber has been in custody since his arrest.
In announcing the plea, U.S. Attorney Machen commended the work of the Metro Transit Police. He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Supervisory Victim/Witness Advocate Jennifer Clark and Assistant U.S. Attorney Christopher Bruckmann, who is prosecuting the case.
15-009Man Who Dealt Heroin Out of Hartford Grocery Store, Illegally Possessed Gun, Sentenced to Federal PrisonRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that JESUS AGOSTO, also known as “Gordo,” 24, of Hartford, was sentenced yesterday by U.S. District Judge Stefan R. Underhill in Bridgeport to 41 months of imprisonment, followed by three years of supervised release, for distributing heroin and illegally possessing a firearm.
According to court documents and statements made in court, in 2013, law enforcement received information that AGOSTO was selling significant quantities of heroin out of the Family Beltre Grocery store located on Broad Street in Hartford, and that AGOSTO was allegedly involved in illegal firearm trafficking. In July and August 2013, investigators made multiple controlled purchases of heroin from AGOSTO at the grocery store.
AGOSTO has been detained since his arrest on September 11, 2013. On that date, investigators executed search warrants at the grocery store and AGOSTO’s nearby apartment. The search of the apartment revealed a .9mm semi-automatic handgun, a magazine loaded with seven rounds of .9mm ammunition, a shoe-box with narcotics-related materials and approximately $25,000 in cash.
AGOSTO was previously convicted of robbery in the first degree after he and an associate robbed a woman at gun point.
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.
On July 1, 2014, AGOSTO pleaded guilty to one count of possession with intent to distribute and distribution of heroin, and one count of possession of a firearm by a previously convicted felon.
This matter was investigated by the Drug Enforcement Administration Hartford Task Force, including the Hartford, New Britain, Bristol, Wethersfield, Newington and Manchester Police Departments. The case was prosecuted by Assistant U.S. Attorney Geoffrey M. Stone.
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(203) 821-3722 [email protected]Man Sentenced in “Force Posting” Scheme that Defrauded AppleRead the Press Release
Tampa, FL – U.S. District Judge Susan C. Bucklew today sentenced Sharron Laverne Parrish, Jr. (25, Tampa) to four years and nine months in federal prison for committing wire fraud. The Court also ordered him to forfeit $309,768.41, which are traceable to proceeds of the offense.
Parrish pleaded guilty on October 3, 2014.
According to court documents, from at least December 8, 2012, through July 17, 2014, Parrish engaged in wire fraud by providing fake bank authorization codes to merchants, particularly Apple, which allowed him to override denials of his closed bank and debit cards when he made purchases.
Typically, when a person attempts to use a bank or debit card to make an electronic purchase, the store merchant swipes the person’s card at a point of sale terminal. A bank authorization code is then generated by the issuing institution of the credit or debit card. This code signals the vendor that the account is active, that funds or credit is available, and it allows the vendor to accept payment using that card. Conversely, if the financial institution determines that the swiped card is affiliated with a closed account, or that funds or credit are insufficient to cover the purchase, no bank authorization code is generated. Rather, the merchant receives a declination.
Parrish had at least three Chase debit cards and one SunTrust debit card, all of which were associated with closed bank accounts. Thus, if used properly, the cards would have been declined by merchants when swiped at point of sale terminals. According to court documents, Parrish employed a scheme whereby he continued to use these canceled debit cards. He primarily used the cards to purchase expensive electronics, rent cars, and stay at hotels. When his canceled debit cards were declined by a merchant, he would pretend to call his financial institution and obtain an authorization code. He would then provide the cashier with a fraudulent bank authorization code, represent to the merchant that his debit cards and accounts were still active, and instruct the cashier to manually enter the authorization code. This would cause the merchant to override the declination and allow the transaction to be completed. This practice is commonly referred to as “force posting.” In one instance in January 2013, Parrish entered the Apple store at Brandon Town Center Mall and purchased $7,753.22 in merchandise using this scheme.
To date, the investigation has shown that Parrish used this “force post” scheme to defraud Apple stores in at least 16 states, including stores in the Middle District of Florida, resulting in approximately 42 different transactions and a fraud loss to Apple alone totaling $309,768.41. There is an additional $50,931.76 in intended loss to Apple from seven transactions that were either aborted by Parrish or declined by Apple.
This case was investigated by the United States Secret Service. It was prosecuted by Assistant United States Attorney Mandy Riedel.
Man Sentenced to Serve A Total of Five Years in Federal Prison in Swatting CaseRead the Press Release
DALLAS — Jason Allen Neff, 34, was sentenced yesterday by U.S. District Judge Sam A. Lindsay to serve a total of 60 months in federal prison and ordered to pay $79,440 in restitution, following his guilty plea in a “swatting” case last summer, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
Swatting refers to falsely reporting an emergency to a police department to cause a Special Weapons and Tactics (SWAT) response to a physical address, or making a false report to elicit an emergency response by other first responders to a specific physical address.
Neff has been in custody since FBI special agents arrested him in April 2011 on charges outlined in a related criminal complaint filed in the Northern District of Texas in September 2010.
Neff, also known as “Crazy J,” is from Omaha, Nebraska, although he was living in Jackson, Missouri at the time of his arrest. Neff pleaded guilty to one count of aiding and abetting the conspiracy to use access devices to modify telecommunications instruments and to make unauthorized access to protected telecommunications computers and one count of obstruction by retaliating against a witness, victim or informant.
According to documents filed in the case, Neff, along with previously charged and convicted co-conspirators Guadalupe Martinez, Stuart Rosoff, Jason Trowbridge, Chad Ward, Matthew Weigman, Angela Roberson and others, were members of, and participated in, telephone chat/party lines in which they made, or facilitated the making of, swatting 911 calls. They concealed the true caller ID and made false reports of violent crimes to elicit a police SWAT response to the targeted members of the telephone chat/party line, their family members, and associated persons.[1]
Neff participated in multiple telephone party line chat groups (party lines) that conspirators and thousands of other callers frequented. Participants in these party lines generally used pseudonyms or nicknames to protect their identities, and they would often be rude and obnoxious to antagonize other party line participants, other conspirators and their families.
Neff, along with Martinez, Rosoff and Weigman, according to the indictment, were “phone phreakers,” using social engineering or subterfuge to acquire sensitive information from telephone service providers. That sensitive information enabled them to exploit telephone network computer service by obtaining subscriber information; altering billing information and service plans; redirecting, changing service charges, and discontinuing telephone service; monitoring or taping telephone lines; and obtaining telephone company security policies and procedures.
In May 2006, Neff obtained publicly available voter information about another party line member and provided it to co-conspirator Roberson so she could repeat the information in the party line. Neff knew the information could be used for harassment.
A few days later, Neff obtained identifying information about another party line member with whom co-conspirator Roberson was upset. Neff listened in on a three-way phone call made from a private room on the party line where co-conspirator Rosoff used information that Roberson provided in order to social engineer an SBC employee and obtain the caller’s current phone number and address. That information was verified and used to prompt a neighbor of the caller to respond to a false request for assistance.
In January 2007, Neff confronted a party line member, “SP,” about her providing what he claimed was misleading and inaccurate information to the FBI regarding his ownership of a party-line related website, which he did not own, and his being a member of the group that had previously swatted her. Neff threatened her on the party line, stating, “snitches get stitches.” Neff made the threats to intimidate SP and to retaliate against her for providing information about him to the FBI.
The FBI investigated the case. Assistant U.S. Attorney C.S. Heath prosecuted.
[1] Martinez sentenced in March 2008 to 30 months; Rosoff sentenced in May 2008 to 60 months; Trowbridge sentenced in May 2008 to 60 months; Ward sentenced in May 2008 to 60 months; Weigman sentenced in June 2009 to 135 months; and Roberson sentenced in July 2008 to 30 months.
Man Sentenced for Assault with A Dangerous WeaponRead the Press Release
U.S. Attorney Christopher A. Crofts announced that on January 8, 2015, twenty-two year old TomElk Redman, a Northern Arapaho Tribal member of Ethete, Wyoming, was sentenced by United States District Court Judge Scott W. Skavdahl, to 15 months imprisonment, three years of supervised release, and a $100.00 special assessment for his March 2014, assault with a dangerous weapon on the Wind River Indian Reservation. This case was investigated by the Federal Bureau of Investigation and the Bureau of Indian Affairs.
Luzerne County Man Sentenced to 48 Months in Prison and Lifetime Supervision for His Role in Sex Trafficking ConspiracyRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that Randy Coleman, Jr., age 32, Pittston, Pennsylvania, was sentenced today by Senior U.S. District Court Judge Edwin M. Kosik to 48 months in prison for his role in a conspiracy to recruit, harbor, and transport 17-year-old minor females to engage in commercial sex acts for money during the summer of 2013 in Luzerne and Dauphin counties. After serving his prison sentence, Coleman will be under probation supervision for life.
According to United States Attorney Peter Smith, Coleman admitted to participating in a scheme to use minor females to engage in prostitution. Coleman’s co-conspirators, including Gregory Boone, used cell phones to produce and transmit photographs of the females which were posted on a website to facilitate prostitution activities in motels in Luzerne County and in the Harrisburg area of Pennsylvania. Boone was recently sentenced to 72 months in prison for his role in the scheme.
Coleman was indicted by a federal grand jury in December 2013, as a result of an investigation by U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), the Pennsylvania State Police, Pittston Police, and the Luzerne County District Attorney’s Office.
Coleman will also have to register as a sex offender and comply with sex offender registration, notification, and association requirements.
The case was prosecuted by Assistant U.S. Attorney Francis P. Sempa.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the 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 federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc for more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Lowell Felon Pleads Guilty in Illegal Firearm SalesRead the Press Release
BOSTON – A previously convicted felon pleaded guilty yesterday in connection with the sale of multiple firearms, including handguns with obliterated serial numbers.
Shayne Sullivan, 25, of Lowell, pleaded guilty to being a felon in possession of firearms and ammunition. U.S. District Judge Richard G. Stearns scheduled sentencing for April 2, 2015.
On March 5, 2014, Sullivan, sold a .357 caliber revolver with an obliterated serial number as well as ammunition to an undercover agent for $600. Eleven days later, Sullivan arranged for another convicted felon to sell several other firearms, including two revolvers with obliterated serial numbers and a rifle, to another criminal for $1,300. Sullivan’s prior convictions include, among other offenses, armed robbery with a gun and assault and battery on a disabled person over the age of 65.
The charging statute provides a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Daniel J. Kumor, Special Agent in Charge of Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; and Lowell Police Superintendent William Taylor, made the announcement. The case is being prosecuted by Assistant U.S. Attorney Suzanne Sullivan Jacobus of Ortiz's Major Crimes Unit.
Loan Shark Sentenced to 24 Months in PrisonRead the Press Release
A former Palm Beach County resident was sentenced today to serve 24 months in prison for charging an undocumented worker an annual interest rate of 180% on a $10,000.00 loan.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Scott Israel, Sheriff, Broward Sheriff’s Office, made the announcement.
The evidence at trial revealed that in September 2009, Francisco Aletto, Sr., 60, worked at a pawn shop in Boca Raton, Florida. An undocumented worker entered the pawn shop to pawn a gold chain for his gas station business located nearby. Instead of accepting the chain as collateral, Aletto loaned the worker $10,000 and charged him $375 interest per week (180% annually). After the worker made several weekly payments, Aletto introduced him to several of Aletto’s friends who subsequently loaned the victim an additional $30,000. After 13 months, the victim paid over $57,000 in interest and lost to Aletto a 2004 Dodge Ram truck on a $3,000 pawn. When the victim was unable to continue to pay the mounting debt, Aletto and his friends threatened to kill him. Based on information received from a confidential source, the FBI located the victim and prevented him from being harmed. Four of Aletto’s accomplices have pled guilty and also have been sentenced for their roles in making and collecting extortionate extensions of credit. .
Mr. Ferrer commended the investigative efforts of FBI’s Organized Crime Task Force and the Broward Sheriff’s Office. This case was prosecuted by Assistant U.S. Attorneys Mark Dispoto and William Shockley.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Little Elm, Texas Man Sentenced for Conspiracy to Produce and Distribution of Child PornographyRead the Press Release
Department of Justice
Office of Public AffairsPLANO, Texas – A 38-year-old man has been sentenced to federal prison for child pornography violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Charles Smolens, of Little Elm. Texas, pleaded guilty on April 29, 2014 to conspiracy to produce child pornography and distribution of child pornography, and was sentenced to 365 months in federal prison today by U.S. District Marcia Crone.
According to information presented in court, in December of 2012, Judith Williams was babysitting an 8 month old baby girl when she videotaped herself performing a sex act on the infant. Williams then emailed the video to her boyfriend, Charles Smolens. During the investigation, FBI Agents discovered that Smolens had written a 22-page story about adults having sex with and raping children. Smolens also provided Williams with a thumb drive that contained hundreds of images of child pornography, including an image of an adult male attempting to perform a sex act on an infant as well as images of his live-in girlfriend’s six-year old daughter.
Judith Williams is scheduled for sentencing on February 25, 2015.
This case was investigated by the Federal Bureau of Investigations and the McKinney Police Department. Assistant U.S. Attorneys Tracey M. Batson and Amanda Griffith prosecuted the case.
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.
Lincoln Man Receives 13 Years for Possessing Child PornographyRead the Press Release
United States Attorney Deborah R. Gilg announced today that Glenn L. Ogden, age 53 of Lincoln, was sentenced in federal court in Lincoln for possessing child pornography. The Honorable John M. Gerrard sentenced Ogden to a 13 year term of imprisonment. There is no parole in the federal system. After his release from prison Ogden will be on supervised release for 20 years and be required to register as a sex offender.
Ogden had previously been convicted in Stanton and Madison Counties in Nebraska in 2002 for possessing child pornography. He received sentences of probation and 30 days in jail.
In January 2014 an Investigator with the Nebraska State Patrol, acting in an undercover capacity, was contacted by Ogden. During online chats Ogden expressed an interest in meeting the undercover with the intent of engaging in sexual relations with a four-year-old girl. Ogden sent 14 images of child pornography, 10 of which involved prepubescent minors, to the undercover investigator.
Ogden was arrested after he traveled from Lincoln to Kearney, Nebraska to meet the undercover investigator. At the time of his arrest Ogden had a Dora the Explorer doll and condoms in his vehicle.
United States Attorney Deborah R. Gilg commended the Nebraska State Patrol for the investigation and arrest of this dangerous predator. She expressed her appreciation to the Patrol and the Internet Crimes Against Children agencies that it oversees for their diligent efforts in protecting the children of Nebraska.
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 U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Lemmon Man Indicted on Child Pornography ChargesRead the Press Release
United States Attorney Brendan V. Johnson announced that a Lemmon, South Dakota, man has been indicted by a federal grand jury for Receipt of Child Pornography and Possession of Child Pornography.
Donavon Lee Klein, age 60, was indicted on December 16, 2014. He appeared before U.S. Magistrate Veronica L. Duffy on January 6, 2015, and pled not guilty to the Indictment.
The penalty upon conviction is a mandatory minimum of 5 years’ imprisonment up to 20 years’ imprisonment and/or a $250,000 fine, a lifetime of supervised release, and a $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment charges that between June 2011 and July 2014, at Lemmon, Klein knowingly received and possessed computer files containing images of child pornography.
The charges are merely accusations and Klein is presumed innocent until and unless proven guilty.
The investigation was conducted by the South Dakota Internet Crimes Against Children Task Force. Assistant U.S. Attorneys Ben Patterson and Sarah Collins are prosecuting the case.
Klein was released pending trial with conditions limiting his use of the internet and contact with children. A trial date has been set for March 17, 2015.
Law Enforcement Agencies and Community Organizations Gather to Recognize Human Trafficking Prevention Month and to Raise Community AwarenessRead the Press Release
The Charlotte Metropolitan Human Trafficking Task Force Highlights Its Ongoing Efforts To Fight Human Trafficking And Provide Victim Assistance
CHARLOTTE, N.C. – Federal, state and local law enforcement agencies and representatives of community organizations gathered today in recognition of “National Slavery and Human Trafficking Prevention Month.” During an early morning press conference, Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina, emphasized the importance of raising public awareness on this issue and highlighted the continued efforts of the Charlotte Metropolitan Human Trafficking Task Force (CMHTTF) in fighting this modern-day form of slavery.
The Charlotte Metropolitan Human Trafficking Task Force comprises law enforcement agencies – including ICE-Homeland Security Investigations, the FBI, and the Charlotte-Mecklenburg Police Department – federal and state prosecutors and community organizations. In today’s remarks, U.S. Attorney Tompkins noted that a coalition of law enforcement agencies working side by side with community groups, equally committed to fighting this epidemic, is a powerful combination of resources in the fight against human trafficking. Ms. Tompkins praised the work of the task force’s community partners for their commitment to helping rescued victims and providing them with much-needed assistance, such as food, shelter, medical attention and mental health services.
“Human Trafficking Prevention Month is a painful reminder that there are men, women and children within our communities trapped in a life of bonded labor, violence and forced prostitution for little or no pay. The Charlotte Metropolitan Human Trafficking Task Force is a strong coalition of law enforcement agencies and community organizations working together to fight this form of modern-day slavery, assist victims and prosecute the criminals who commit these acts,” said U.S. Attorney Tompkins.
“Homeland Security Investigations is committed to working with our partners both inside and outside of law enforcement to break the victims of human trafficking free from their bondage,” said Joe Gallion, Deputy Special Agent in Charge of ICE Homeland Security Investigations in Charlotte. “By working together across the enforcement and advocacy spectrum, we will ensure that the criminals are put behind bars and their victims have help in taking their first steps on the journey to healing.”
“Human trafficking victims are trapped in lives of misery—often beaten, starved, and forced to work as prostitutes or to take grueling jobs with little or no pay. The FBI devotes a significant amount of resources to hold those accountable who sacrifice another person’s civil rights and freedom for their own profit,” said John A. Strong, Special Agent in Charge of the FBI in North Carolina.
“Moore & Van Allen launched its Human Trafficking Pro Bono Project in late 2013, to offer victims of human trafficking free legal representation in a variety of areas including victim-witness advocacy, criminal record expunction, and civil protective orders. The Project also focuses on facilitating community collaboration and awareness. The firm looks forward to the continued momentum of this important work,” said Sarah Byrne, Moore & Van Allen Conflicts Counsel and Charlotte Metropolitan Human Trafficking Task Force Member. “Gathering members of the bar and the bench, together with law enforcement and service providers like we have today is important because of the intersections between trafficking and domestic violence, trafficking and child abuse, trafficking and the juvenile justice system, and trafficking and runaway children. Only by recognizing these often hidden victims and connecting them to necessary services can we, as a community, offer justice and healing to survivors of this horrific crime,” Byrne added.
U.S. Attorney Tompkins thanked all the law enforcement agencies and community groups for their invaluable assistance and praised their work and ongoing collaboration. The press conference was followed by a half-day training workshop organized by the task force. The training was open to service providers, law enforcement, members of the judiciary and attorneys, and focused on the realities of human trafficking, victim identification and best practices support services.
If you believe you are the victim of a trafficking situation or may have information about a potential trafficking situation, call the National Human Trafficking Resource Center (NHTRC) at 1-888-373-7888. NHTRC is a national, toll-free hotline, with specialists available to answer calls from anywhere in the country, 24 hours a day, seven days a week, every day of the year related to potential trafficking victims, suspicious behaviors, and/or locations where trafficking is suspected to occur. You can also submit a tip to the NHTRC online.
You can also contact ICE-Homeland Security Investigations at 1-866-DHS-2-ICE (1-866-347-2423) or the Charlotte Office of the FBI at 704-672-6100.
Last Defendant Pleads Guilty in Methamphetamine Distribution ConspiracyRead the Press Release
LUBBOCK, Texas — Seven defendants charged with various offenses stemming from their respective roles in a methamphetamine distribution conspiracy have pleaded guilty, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
Today, the last defendant charged in the case entered a guilty plea. Flor Angelica Bustillos, 26, of Phoenix, Arizona, pleaded guilty, before U.S. District Judge Sam R. Cummings, to one count of unlawful use of a communication facility. She faces a statutory maximum penalty of four years in federal prison and a $250,000 fine.
Last month, Gregorio Hernandez-Perez, 27, pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute 500 grams or more of methamphetamine. He faces a maximum statutory penalty of life imprisonment, a $10 million fine and a life term of supervised release.
According to plea documents filed in the case, on July 16, 2014 search warrants were executed at multiple locations in Lubbock County, including, Hernandez-Perez’s residence in Slaton, Texas, after law enforcement in Lubbock, Texas, seized 4.47 kilograms of methamphetamine attributable to Hernandez-Perez. During the execution of the search warrant, law enforcement seized surveillance cameras, drug ledgers, drug trafficking paraphernalia, wire transfer receipts, and a handgun. During the arrest of Hernandez-Perez, an additional handgun was found in his possession.
Each of the four below-listed defendants pleaded guilty in October 2014 to one count of possession with intent to distribute methamphetamine and aiding and abetting. Each faces a statutory maximum penalty of 20 years in federal prison and a $1 million fine.
Haylie Nicole Moreno, 26, of Lubbock
Jesus Adrian Murillo-Angulo, 21, of Lubbock
Michael Alvarado Garcia, 42, of Lubbock
Miguel Angel Ruiz-Cabanillas, 30, of Lubbock
Edward Adam Rodriguez, 23, of Lubbock, pleaded guilty on October 31, 2014, to one count of possession of a firearm in furtherance of a drug trafficking crime and aiding and abetting. He faces a statutory maximum penalty of life in federal prison and a $250,000 fine.
Natividad Gumaro Lopez-Guzman, 48, of Phoenix, pleaded guilty October 17, 2014, to one count of conspiracy to distribute and possess with intent to distribute 500 grams or more of methamphetamine. He faces a statutory maximum penalty of life in federal prison and a $10 million fine.
Presentence investigation reports have been ordered for all defendants; sentencing dates will be set after the completion of those reports.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, Lubbock County Sheriff’s Office, Lubbock Police Department, Texas Department of Public Safety, United States Border Patrol, Department of Homeland Security, and Maricopa County Sheriff’s Office investigated.
Assistant U.S. Attorney Justin Cunningham is prosecuting the case.
Ketchikan Resident Sentenced to Prison for Assault on Federal OfficerRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that a Ketchikan resident was sentenced in federal court in Juneau for assault on a federal officer.
Jon William Munhoven, 57, a resident of Ketchikan, was sentenced by United States District Court Judge Timothy M. Burgess to 48 months of incarceration and three years of supervised release.
According to Assistant U.S. Attorney Jack S. Schmidt and Special Assistant United States Attorney Lt. Cmdr. Stanley P. Fields, who jointly prosecuted the case, on September 2, 2013, the United States Coast Guard (USCG) at Coast Guard Station Ketchikan dispatched six personnel in a 25-foot response boat small (RBS) in response to a call for help from a mariner who had been assaulted on his vessel. After travelling through thick fog, the RBS contacted the mariner who had a bloody nose, a female passenger, and Jon William Munhoven. Munhoven was irate and hostile during the initial contact and was ordered to disembark the mariner’s vessel by the USCG Boarding Team. Munhoven was placed in handcuffs and seated on the aft deck box of the RBS. Munhoven refused to listen to the instructions of the USCG Boarding Team and would not calm down. He then became actively resistant to the USCG Boarding Team. As the members of the boarding team were attempting to safely control Munhoeven, he intentionally kicked one of the USCG Boarding Team Members in the face with a shod foot, using it as a dangerous weapon and causing bodily injury to the USCG Boarding Team Member.Judge Burgess noted the seriousness of the offense, defendant’s extensive violent criminal history that included numerous felony and misdemeanor assaults, sexual assaults, robbery, and menacing with a firearm, and deterrence of the defendant and others as reasons for the sentence imposed.
Ms. Loeffler commended the United States Coast Guard 17th District Legal Office, United States Coast Guard Investigative Service (USCGIS), and Ketchikan Police Department for the investigation leading to the prosecution of Munhoven.