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6 January 2015
Former Virginia Governor Sentenced to Two Years in Prison for Public Corruption SchemeRead the Press Release
RICHMOND, Va. – Former Virginia Governor Robert F. McDonnell, 60, of Glen Allen, Virginia, was sentenced today to two years in prison, followed by two years of supervised release, for soliciting and obtaining payments, loans, gifts and other items from Star Scientific, a Virginia-based corporation, and Jonnie R. Williams Sr., Star Scientific’s then chief executive officer, in violation of federal public corruption laws.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Leslie R. Caldwell, Assistant Attorney General of the Justice Department’s Criminal Division; Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office; Richard Weber, Chief, IRS Criminal Investigation (IRS-CI); and Colonel W. Steven Flaherty, Virginia State Police Superintendent, made the announcement after sentencing by Senior U.S. District Judge James R. Spencer.
Robert McDonnell and his wife, Maureen McDonnell, were convicted following a jury trial of one count of conspiracy to commit honest-services wire fraud and one count of conspiracy to obtain property under color of official right. Robert McDonnell was also convicted of three counts of honest-services wire fraud and six counts of obtaining property under color of official right, while Maureen McDonnell was convicted of two counts of honest-services wire fraud and four counts of obtaining property under color of official right. In total, Robert McDonnell was convicted of 11 of 13 counts and Maureen McDonnell was convicted of eight of 13 counts.
“As Governor of the Commonwealth of Virginia, Robert McDonnell violated the public’s trust and tarnished the highest office in state government,” said U.S. Attorney Boente. “This investigation, prosecution and sentence will help restore and maintain the high integrity of the governor’s office, while affirming our commitment to prosecuting public officials who commit crimes.”
“Robert McDonnell corrupted the most powerful office in Virginia and fractured the public’s trust,” said Assistant Attorney General Caldwell. “Taking bribes in exchange for official actions is not politics as usual—it is an insidious crime that strikes at the heart of public service and will not be tolerated.”
“This case was always about dishonesty and corruption,” said Special Agent in Charge Lee. “Today’s sentence illustrates that plainly. As I’ve said before, public corruption is the FBI’s highest criminal investigative priority and we will respond to any credible allegation of a public official subverting the public’s trust for their personal gain. I hope the court’s action today brings closure to Virginia’s concerned citizens and gives them reassurance that no one is above the law.
“Public officials hold positions of trust in the eyes of the public. Former Governor Robert McDonnell broke that trust when he used his government office for personal gain and today he is being held accountable for his criminal conduct,” said Richard Weber, Chief, IRS-Criminal Investigation. “IRS-CI will continue to investigate public corruption to ensure everyone plays by the same rules—regardless of job or elected position held.”
According to the evidence presented at trial, from April 2011 through March 2013, the McDonnells participated in a scheme to use the former governor’s official position to enrich themselves and their family members by soliciting and obtaining payments, loans, gifts and other things of value from Star Scientific and Jonnie R. Williams Sr. The McDonnells obtained these items in exchange for the former governor performing official actions to legitimize, promote and obtain research studies for Star’s products, including the dietary supplement Anatabloc.
According to evidence presented at trial, the McDonnells obtained from Williams more than $170,000 in direct payments as gifts and loans, thousands of dollars in golf outings, and numerous items. As part of the scheme, Robert McDonnell arranged meetings for Williams with Virginia government officials, hosted and attended events at the Governor’s Mansion designed to encourage Virginia university researchers to initiate studies of Star’s products and to promote Star’s products to doctors, contacted other Virginia government officials to encourage Virginia state research universities to initiate studies of Star’s products, and promoted Star’s products and facilitated its relationships with Virginia government officials.
The evidence further showed that the McDonnells attempted to conceal the things of value received from Williams and Star to hide the nature and scope of their dealings with Williams from the citizens of Virginia by, for example, routing gifts and loans through family members and corporate entities controlled by the former governor to avoid annual disclosure requirements.
Maureen McDonnell is scheduled to be sentenced on February 20, 2015.
The case is being prosecuted by Assistant U.S. Attorneys Michael S. Dry, Jessica D. Aber, and Ryan S. Faulconer of the U.S. Attorney’s Office for the Eastern District of Virginia, and Deputy Chief David V. Harbach II of the Criminal Division’s Public Integrity Section. The case is being investigated by the FBI, IRS-CI, and the Virginia State Police.A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:14-cr-12.
Former Toyoda Gosei Executive Agrees to Plead Guilty to Price Fixing and Bid Rigging on Automobile Parts Installed in U.S. CarsRead the Press Release
A former executive of Japan-based Toyoda Gosei Co. Ltd. has agreed to plead guilty and to serve one year and one day in a U.S. prison for his role in a conspiracy to fix prices and rig bids of automotive hoses installed in cars sold in the United States, the Department of Justice announced today.
A one-count felony charge was filed today in the U.S. District Court for the Northern District of Ohio in Toledo against Makoto Horie, a Japanese national. According to the charge, Horie along with co-conspirators, conspired to fix the prices of certain automotive hoses sold to Toyota Motor Corp. and certain of its subsidiaries, affiliates and suppliers, in the United States. According to the charge, Horie participated in the conspiracy from at least as early as March 2007 until at least September 2010. In addition to the prison term, Horie has agreed to pay a $20,000 criminal fine and to cooperate with the department’s ongoing investigation. The plea agreement is subject to court approval.
“The charge today once again demonstrates the Antitrust Division’s vigorous commitment to holding individuals accountable for engaging in anticompetitive conduct,” said Brent Snyder, Deputy Assistant Attorney General for the Antitrust Division’s criminal enforcement program. “The division’s ongoing investigation has resulted in more than two dozen executives serving prison time for their participation in illegal conspiracies involving auto parts.”
Toyoda Gosei manufactures and sells a variety of automotive parts, including certain automotive hoses. On Sept. 29, 2014, the Department of Justice announced that Toyoda Gosei had agreed to plead guilty and pay a $26 million criminal fine for its role in this conspiracy and another conspiracy involving automotive airbags and steering wheels.
Horie, a Japanese national, was employed at Toyoda Gosei North America, in Troy, Michigan, a subsidiary of Toyoda Gosei, as Vice President of Sales between March 2007 and December 2007, and as Senior Vice President of Sales between January 2008 and January 2010; and was employed at Toyoda Gosei in Japan as a sales general manager between February 2010 and September 2010.
To date, 49 individuals have been charged in the government’s ongoing investigation into price fixing and bid rigging in the auto parts industry. Additionally, 32 companies have pleaded guilty or agreed to plead guilty and have agreed to pay a total of over $2.4 billion in fines.
Horie is charged with price fixing and bid rigging in violation of the Sherman Act, which carries a maximum penalty of 10 years in prison and a $1 million criminal fine for individuals. The maximum fine for an individual may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.
Today’s charge is the result of an ongoing federal antitrust investigation into price fixing, bid rigging and other anticompetitive conduct in the automotive parts industry, which is being conducted by each of the Antitrust Division’s criminal enforcement sections and the FBI. Today’s charge was brought by the Antitrust Division’s Chicago Office and the FBI’s Cleveland Field Office, Lima Resident Agency with the assistance of the FBI headquarters’ International Corruption Unit and the U.S. Attorney’s Office for the Northern District of Ohio. Anyone with information on price fixing, bid rigging and other anticompetitive conduct related to other products in the automotive parts industry should contact the Antitrust Division’s Citizen Complaint Center at 1-888-647–3258, visit www.justice.gov/atr/contact/newcase.html or call the FBI’s Cleveland Field Office at 1-216-522-1400.
Former Topeka Man Pleads Guilty to Social Security FraudRead the Press Release
KANSAS CITY, KAN. – A former Topeka man pleaded guilty Tuesday to Social Security fraud, U.S. Attorney Barry Grissom said.
Brian David White, 43, who now lives in Kansas City, Mo., pleaded guilty to one count of Social Security fraud. In his plea, he admitted that the Social Security Administration paid more than $88,800 in disability benefits after he returned to work and failed to report it to the SSA.
In 2002, the SSA approved White’s application for disability benefits based on an inflammatory arthritis condition that made him unable to work. While receiving benefits, he attended Washburn University in Topeka and obtained a degree in radiologic technology. After earning his degree, he worked as a technician at Holton Community Hospital in Holton, Kan. Later, he began working full-time for the University of Kansas Medical Center in Kansas City, Kan. He admitted that he intentionally failed to report this work activity to the SSA so that he could obtain disability payments he was no longer entitled to receive.
Sentencing is set for April 6. He faces a maximum penalty of 5 years in federal prison, a fine up to $250,000 and restitution. Grissom commended the office of Inspector General for the Social Security Administration and Special Assistant U.S. Attorney Trey Alford for their work on the case.
Former Owner and President of Pennsylvania Consulting Companies Charged with Foreign BriberyRead the Press Release
The former owner and President of Chestnut Consulting Group Inc. and Chestnut Consulting Group Co. (generally referred to as the “Chestnut Group”) was indicted by a federal grand jury today for his alleged participation in a scheme to pay bribes to a foreign official in violation of the Foreign Corrupt Practices Act (FCPA) and the Travel Act, and to launder proceeds of those crimes.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Zane David Memeger of the Eastern District of Pennsylvania and Special Agent in Charge Edward J. Hanko of the FBI’s Philadelphia Division made the announcement.
“We are committed to combating foreign corruption, across the globe and across all industries, through enforcement actions and prosecutions of companies and the individuals who run those companies,” said Assistant Attorney General Caldwell. “As alleged, in this case, the owner and chief executive of a Pennsylvania financial consulting firm secured hundreds of millions of dollars in business by bribing a European banking official. He now faces an indictment for corruption in federal court. Bribery of foreign officials undermines the public trust in government and fair competition in business. The charges returned today reflect the clear message that we will root out corruption and prosecute individuals who violate the Foreign Corrupt Practices Act.”
“We will aggressively investigate and prosecute individuals in our district who use corrupt means like bribery to influence foreign officials,” said U.S. Attorney Memeger. “Our criminal statutes in this arena must be enforced to ensure fair dealing in a competitive global marketplace where foreign officials often hold significant decision-making authority. The alleged conduct here was particularly reprehensible because it undermined the legitimacy of a process designed to support businesses for the citizens of developing nations.”
“This is a great example of the FBI’s ability to successfully coordinate with our international law enforcement partners to tackle corruption,” said Special Agent in Charge Hanko. “Bribery – foreign or domestic – cripples the notion of fair competition in the marketplace.”
Dmitrij Harder, 42, of Huntingdon Valley, Pennsylvania, the former owner and president of the Chestnut Group, was charged with one count of conspiracy to violate the FCPA and Travel Act, five counts of violating the FCPA, five counts of violating the Travel Act, one count of conspiracy to commit international money laundering, and two counts of money laundering.
According to allegations in the indictment, the European Bank for Reconstruction and Development (EBRD) was a multilateral development bank headquartered in London, England, and was owned by over 60 sovereign nations. Among other things, the EBRD provided financing for development projects in emerging economies, primarily in Eastern Europe.
According to allegations in the indictment, Harder and others paid bribes for the benefit of a senior official at the EBRD in exchange for influencing the official’s actions on applications for financing submitted by the Chestnut Group’s clients and for directing business to the Chestnut Group. The EBRD ultimately approved applications for financing from two of the Chestnut Group’s corporate clients; the first resulted in the EBRD providing an $85 million investment and a 90 million Euro loan, while the second resulted in a $40 million investment and a $60 million convertible loan. The Chestnut Group allegedly earned approximately $8 million in “success fees” as a result of the EBRD’s approval of these two applications.
The indictment alleges that Harder made five payments totaling more than $3.5 million to the sister of the EBRD official, in part as an effort to conceal the bribes. These payments were allegedly made for purported consulting and other services provided to the Chestnut Group by the official’s sister, when in fact she provided no such services. Harder also allegedly participated in creating fake documents to justify these payments.
The charges contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
The case is being investigated by the FBI’s Philadelphia Division. The Criminal Division’s Office of International Affairs also provided assistance.
The case is being prosecuted by Assistant Chief Leo R. Tsao of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Michelle Morgan of the Eastern District of Pennsylvania.
Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Former Owner of Bucks County Financial Consulting Firm Charged with Bribing Foreign OfficialRead the Press Release
PHILADELPHIA - Dmitrij Harder, 42, of Huntingdon Valley, PA, was charged today by indictment with violating the Foreign Corrupt Practices Act and money laundering. Harder is the former owner and President of Chestnut Consulting Group, Inc. (“Chestnut”), a financial consulting firm that was located in Southampton, Pennsylvania.
The charges were announced today by United States Attorney Zane David Memeger, FBI Special Agent-in-Charge Edward J. Hanko, and Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division.
The indictment alleges that Harder participated in a scheme to pay bribes to a foreign government official and then laundered the proceeds of those crimes. Between 2007 and 2009, Harder allegedly paid approximately $3.5 million in bribes to corruptly influence a foreign official’s actions on applications submitted by clients of his and of the Chestnut Group, and to corruptly influence the foreign official to direct business to him, the Chestnut Group, and others.
The European Bank for Reconstruction and Development (“EBRD”) was a multilateral development bank headquartered in London, England, and was owned by over 60 sovereign nations. Among other things, the EBRD provided debt and equity financing for development projects in emerging economies, primarily in Eastern Europe. According to the indictment, Harder knew a senior banker at the EBRD from prior business dealings. The senior banker was responsible for leading the review of the applications for loans and equity investments, and also set the terms and conditions for that financing. Harder allegedly paid bribes to the senior banker in order to gain a favorable outcome in the review of applications for financing submitted by his clients. According to the indictment, the EBRD ultimately approved applications for financing from two of Chestnut’s corporate clients: an $85 million equity investment with a 90 million Euro loan; and a $40 million equity investment with a $60 million convertible loan. Chestnut allegedly earned approximately $8 million in “success fees” as a result of the EBRD’s approval of these two applications.
It is further alleged that the defendant made five payments, totaling more than $3.5 million, to the sister of the official at the EBRD in an effort to conceal the bribes. These alleged payments were made purportedly for consulting and other services provided to Chestnut by the official’s sister, when, in fact, she did not provide such services. According to the indictment, the defendant also participated in the creation of fake documents in an attempt to justify these payments to the official’s sister.
“We will aggressively investigate and prosecute individuals in our district who use corrupt means like bribery to influence foreign officials,” said Memeger. “Our criminal statutes in this arena must be enforced to ensure fair dealing in a competitive global marketplace where foreign officials often hold significant decision-making authority. The alleged conduct here was particularly reprehensible because it undermined the legitimacy of a process designed to support businesses for the citizens of developing nations.”
“This is a great example of the FBI’s ability to successfully coordinate with our international law enforcement partners to tackle corruption,” said Special Agent-in-Charge Hanko. “Bribery – foreign or domestic – cripples the notion of fair competition in the marketplace.”
“We are committed to combating foreign corruption, across the globe and across all industries, through enforcement actions and prosecutions of companies and the individuals who run those companies,” said Assistant Attorney General Caldwell. “As alleged, in this case, the owner and chief executive of a Pennsylvania financial consulting firm secured hundreds of millions of dollars in business by bribing a European banking official. He now faces an indictment for corruption in federal court. Bribery of foreign officials undermines the public trust in government and fair competition in business. The charges returned today reflect the clear message that we will root out corruption and prosecute individuals who violate the Foreign Corrupt Practices Act.”
Harder is charged with one count of conspiracy to violate the Foreign Corrupt Practices Act and Travel Act, five counts of violating the Foreign Corrupt Practices Act, five counts of violating the Travel Act, one count of conspiracy to commit international money laundering, and two counts of international money laundering. He faces a maximum possible statutory sentence of 190 years in prison, fines of up to $1.75 million, twice the value of the property involved in the transaction, or twice the value gained or lost.
The case is being investigated by the FBI’s Philadelphia Division. Significant assistance was also provided by the Criminal Division’s Office of International Affairs. The case is being prosecuted by Assistant U.S. Attorney Michelle Morgan of the Eastern District of Pennsylvania and Assistant Chief Leo R. Tsao of the Criminal Division’s Fraud Section.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
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EASTERN DISTRICT, PENNSYLVANIA Media Contact
Suite 1250, 615 Chestnut Street 215-861-8525
Philadelphia, PA 19106
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Former Midamar Operations Manager Pleads GuiltyRead the Press Release
Contact: Steve Young
Philip G. Payne, 50, of Ryan, Iowa, pleaded guilty today to one count of conspiracy to make and deliver false certificates and writings. Prosecution would be deferred on two additional counts pursuant to an agreement yet to be approved by the court. Payne entered his plea of guilty in United States District Court in Cedar Rapids.
According to facts admitted by Payne today, between about April 2007 and December 2009, employees of Midamar Corporation of Cedar Rapids, Iowa, knowingly and without authorization, removed USDA marks of inspection from meat products and replaced them with marks of inspection from facilities other than where the meat was slaughtered. This was done at the direction, and with the knowledge and approval, of Midamar’s owners and managers. Further, false USDA export documents, health certificates, and Halal export certificates were generated for at least 22 shipments of beef during the same period. These and other actions were taken with the intent to make the beef eligible for import into countries that would otherwise not have accepted the beef shipments.
Payne, the former Operations Manager for Midamar also admitted as part of his plea agreement that, as demand for Halal beef supplied by Midamar grew, Midamar supplemented its sales of purported Halal beef with kosher beef slaughtered by rabbis, without any participation or oversight by a Muslim slaughterman.
Payne could be sentenced up to one year imprisonment and fined up to $100,000. A term of supervised release of up to one year could be ordered following any term of imprisonment.
The case is being prosecuted by Assistant United States Attorneys Richard L. Murphy and Timothy Vavricek, and was investigated by the Department of Agriculture Office of Inspector General, and the Internal Revenue Service.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 14-CR-00143-LRR. ph Two.
Former Macy Residents Sentenced for Copyright InfringementRead the Press Release
United States Attorney Deborah R. Gilg announced that Carroll Webster, III, age 21, and Kayla Parker, age 22, of Wanblee, South Dakota, were sentenced for their convictions of copyright infringement. Senior United States District Court Judge Lyle E. Strom sentenced Webster and Parker to 5 years’ probation. While on probation, Webster and Parker will each have to perform 150 hours of community service and they will each have to pay $500 in restitution.
Webster and Parker resided together on the Omaha Indian Reservation during 2012 and 2013. From March of 2012 through May 6, 2013, Webster and Parker obtained pirated copies of copyrighted motion pictures which they reproduced and sold to persons on the Omaha Indian Reservation without the consent of the copyright holders. The investigation revealed that Webster and Parker sold approximately 600 DVDs during this time period.
This case was investigated by the Federal Bureau of Investigation.
Former Civilian Employee at McConnell AFB Sentenced for Theft of Public FundsRead the Press Release
WICHITA, KAN. – A former civilian employee at McConnell Air Force Base was sentenced Tuesday to three years federal probation for embezzling more than $50,000 in public funds, U.S. Attorney Barry Grissom said. In addition, she was ordered to pay approximately $53,000 in restitution.
Deidra N. Sanders, 44, Wichita, Kan., pleaded guilty to one count of theft of government money. In her plea, she admitted the crime occurred between March 2013 and April 2014 while she worked as a deputy dispersing officer for the U.S. Air Force at McConnell. In her position, she had access to the Defense Finance and Accounting Service Fund. She stole a total of $54,348 from the fund.
Grissom commended the U.S. Air Force and Assistant U.S. Attorney Alan Metzger for their work on the case.
Former Attorney Sentenced to over Four Years' Imprisonment for Defrauding Her ClientsRead the Press Release
Contact: Steve Young
A former attorney who defrauded fourteen former clients was sentenced today to more than four years in federal prison.
Susan Hense, 54, from Cedar Rapids, Iowa, received the prison term after an October 20, 2014, guilty plea to one count of wire fraud.
In a plea agreement, Hense admitted that she knowingly made up a scheme to defraud the clients of her law firm, Hense Law PLC, and to obtain money from her clients under false pretenses and promises. Hense admitted that she falsely represented to her clients that money belonging to them would be held in trust on their behalf in a bank account when, in fact, Hense intended to steal at least a portion of the clients’ money. Hense further admitted that over a three year period, she stole and misappropriated at least $837,011.31 in client funds. Hense has since been disbarred and can no longer practice law in Iowa.
Hense was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Hense was sentenced to 51 months’ imprisonment. A special assessment of $100 was imposed, and she was ordered to make $860,396.41 in restitution the victims of her fraud. She must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Hense was released on conditions of release previously set and is to surrender to the United States Marshal on January 20, 2015.
The case was prosecuted by Assistant United States Attorney Anthony Morfitt and was investigated by the Cedar Rapids Police Department.
Court file information is available at https://ecf.iand.uscourts.gov/. The case file number is 14-CR-00109.
Federal Inmate Sentenced to Two Years for Possession of A WeaponRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Margarito Morales-Oliva, age 35, formerly of Mexico, was sentenced by U.S. District Court Judge Richard P. Conaboy to 24 months in prison for possessing a sharpened weapon commonly referred to as a “shank.”
According to the United States Attorney Peter Smith, Morales-Oliva was charged in August of 2014 and pleaded guilty in October of 2014. The sentence imposed today is to be served after the expiration of the sentence he is currently serving.
The case was investigated by the FBI and the Special Investigation Section at the United States Penitentiary federal prison in Waymart, Pennsylvania. Prosecution is assigned to Assistant United States Attorney John Gurganus.
Federal Grand Jury IndictmentsRead the Press Release
Contact Person: Beth Drake (803) 929-3000
Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that a Federal Grand Jury in Columbia, South Carolina, returned Indictment(s) against the following: Florence Woman Indicted for Bank Fraud
Tamara Leigh Taylor, of Florence, South Carolina was charged with Bank Fraud in a 1-count indictment. The maximum penalty Taylor could receive is 30 years. The case was investigated by agents of the Secret Service and is assigned to Assistant United States Attorney William E. Day, II of the Columbia office for prosecution.
The United States Attorney stated that all charges in these Indictments are merely accusations and that all defendants are presumed innocent until and unless proven guilty.Fayetteville Man Sentenced for Failing to Register as A Sex OffenderRead the Press Release
WILMINGTON – United States Attorney Thomas G. Walker announced that in federal court today Senior United States District Judge James C. Fox sentenced ANDREW DAVID OWENS, 59, from Fayetteville, North Carolina, to 41 months’ imprisonment followed by 20 years’ supervised release.
On March 21, 2013, a Federal Grand Jury returned a Criminal Indictment charging OWENS with failing to register as a sex offenderOn September 2, 2014, OWENS pled guilty to the charge.
According to the investigation, OWENS was convicted of sexual offenses involving minors in 1992 and required to register as a sex offender for the remainder of his life. Upon release from the North Carolina Department of Public Safety on January 18, 2012, OWENS had stated that he planned to reside in Salt Lake City, Utah. However, as of February 20, 2012, he had not registered in either Utah or North Carolina. A warrant was issued for his arrest based on his failure to register as a sex offender.
In September, 2012, OWENS was arrested in Bethel, Pennsylvania and subsequently transported back to North Carolina to face the charge of failure to register as a sex offender.
The criminal investigation of this case was conducted by the United States Marshals Service Violent Fugitive Task Force and the Cumberland County Sheriff’s Office. Assistant United States Attorney Ethan Ontjes handled the prosecution on behalf of the Eastern District of North Carolina.
Erie Man Pleads Guilty to Federal Gun ChargesRead the Press Release
ERIE, Pa. - A resident of Erie, Pennsylvania, pleaded guilty in federal court to charges of violating federal gun laws, United States Attorney David J. Hickton announced today.
Gerald Szymanowski, 66, pleaded guilty to two counts before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that on or about June 19, 2014, Szymanowski possessed approximately 38 unregistered firearms, including machineguns, silencers and destructive devices not registered to him in the National Firearms Registration and Transfer record and manufactured approximately 372 devices of varying sizes containing explosive materials.
Judge Cercone scheduled sentencing for May 11, 2015 at 2:15 p.m. The law provides for a total sentence of 20 years in prison, a fine of $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued Szymanowski on bond.
Assistant United States Attorney Marshall J. Piccinini is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation that led to the prosecution of Szymanowski.
Elmira Man Sentenced for Selling and Importing Synthetic DrugsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Ronald Tuttle, 44, of Elmira, NY, who was convicted of conspiracies to import and distribute narcotics, and importation and attempted possession of a narcotic following a jury trial, was sentenced to 97 months in prison by U.S. District Court Judge Frank P. Geraci, Jr.
Assistant U.S. Attorneys Jennifer M. Noto and Douglas E. Gregory, who handled the case, stated that the defendant imported hundreds of grams of MDPV, a synthetic drug similar to methamphetamine, over the internet from China between November 2011 and February 7, 2013. Tuttle used Western Union to send money orders to China to pay for the drugs. Once the defendant received the imported drugs, he then distributed the MDPV to others for resale. Tuttle, who testified at trial in September 2014, claimed that he was importing and selling the weight-loss supplement Sensa. During sentencing Judge Geraci called the defendant’s trial testimony “incredible.”
The sentencing is the culmination of an investigation on the part of Special Agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero.
El Paso Couple Sentenced to Federal Prison for Inducing Foreign or Interstate Travel for ProstitutionRead the Press Release
In El Paso today, 45-year-old Maria Blake (aka “Jessica”, “Yvonne”) and her 45–year-old husband, Ronald, were sentenced to 30 months and six months in federal prison respectively inducing foreign or interstate travel for prostitution announced Acting United States Attorney Richard L. Durbin, Acting Homeland Security Investigations (HSI) Special Agent in Charge Tom Hernandez and Federal Bureau of Investigation (FBI) Special Agent in Charge Douglas E. Lindquist.
In addition to the prison terms, United States District Judge Kathleen Cardone ordered that Maria Blake pay a $1,000 fine and be placed under supervised release for a period of ten years after completing her prison term. Judge Cardone also ordered that Ronald Blake pay a $500 fine, remain under home confinement for six months and be placed under supervised release for a period of ten years after completing his prison term. Furthermore, Judge Cardone ordered that the defendants’ residence located in the 2400 block of Tierra Nueva in El Paso be forfeited to the Government as it was used to facilitate their prostitution scheme.
In October 2014, both defendants pleaded guilty to one count of aiding and abetting coercion and enticement. By pleading guilty, the Blakes admitted that from July 2011 until January 2013, they ran a prostitution service whereby they knowingly persuaded, or attempted to persuade, approximately five females to travel from Juarez to El Paso to engage in sexual activity for financial gain.
The Blakes were arrested based on an investigation initiated by the El Paso Anti-trafficking Coordination Team (ACT Team). The ACT Team is a human trafficking task force composed of members from the FBI, HSI and the Department of Labor.
“The ACT Team is an effective and efficient law enforcement force multiplier by which we can identify, arrest and prosecute criminals involved in luring and prostituting young women,” said Acting HSI SAC Hernandez. “Criminal networks that may have operated in our region and gone undetected before are on our radar now.”
Assistant United States Attorney Rifian Newaz prosecuted this case on behalf of the Government.
East Hartford Resident Charged with Setting Fire to Middletown Restaurant to Collect Insurance ProceedsRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, and Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, today announced that a federal grand jury sitting in Hartford has returned an indictment charging JOHN A. BARILE, 51, of East Hartford, with one count of conspiracy, one count of arson, and two counts of mail fraud. The indictment was returned on December 30, 2014, and BARILE was arrested at his home last night.
The indictment alleges that BARILE and others conspired to set fire to Enzo’s Restaurant and Lounge, a restaurant that he jointly owned that was located on Main Street in Middletown, in order to collect the insurance proceeds. Shortly after midnight on January 10, 2010, BARILE ignited the fire, left the restaurant and locked the doors, leaving the other owner inside. After the fire, BARILE sought payment from an insurance company for losses suffered as a result of the fire, and concealed his role in the fire from the insurance company and law enforcement. The insurance company ultimately paid approximately $165,000 to BARILE to settle the insurance claims related to the fire.
The other owner who was in the restaurant at the time of the fire was rescued by the Middletown Fire Department.
At his arraignment today before U.S. Magistrate Judge Donna F. Martinez in Hartford, BARILE entered a plea of not guilty and was ordered detained pending a hearing scheduled for January 9, 2014.
If convicted of arson, BARILE faces a mandatory minimum term of imprisonment of seven years and a maximum term of imprisonment of 40 years. The mail fraud charges carry a maximum term of imprisonment of 20 years on each count, and the conspiracy charge carries a maximum term of imprisonment of five years.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation, with the assistance of the Middletown Police Department and the Connecticut State Police. This case is being prosecuted by Assistant U.S. Attorneys Anastasia E. King and Neeraj N. Patel.PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Dallas County Man Sentenced to 108 Months in Federal Prison for Role in Staged Accident Fraud SchemeRead the Press Release
DALLAS — Leroy Nelson, 61, of DeSoto, Texas, was sentenced yesterday by U.S. District Judge Sam A. Lindsay to 108 months in federal prison and ordered to pay $4,973,046 in restitution for his role in a staged accident fraud scheme, announced Acting U.S. Attorney John Parker of the Northern District of Texas.
Nelson pleaded guilty in March 2014 to one count of mail fraud and one count of engaging in illegal monetary transactions. According to the plea agreement in the case, Nelson agreed to forfeit several vehicles, a motor home, a boat and trailer and real estate in Duncanville and Cooper, Texas.
According to the factual resume filed in the case, beginning in 2005 and continuing through 2012, Nelson engaged in a scheme to defraud automobile insurance companies by fabricating and submitting false and fraudulent claims for damage to technical equipment damaged in fictitious road accidents.
As part of the scheme, Nelson promised cash payments to individuals he recruited for them to falsely report to their automobile insurance company that, while driving, they inadvertently damaged a piece of equipment. Typically, the individual would falsely report that while driving, he or she had either rear-ended a trailer pulling equipment, or swerved to avoid something in the road and collided with equipment on the side of the road. Nelson would instruct the individual on how to make the telephone call to the insurance company.
Nelson then prepared and submitted the claims for property damage in the name of a “DBA” he created. The claim would include a photo of the equipment and a fictitious repair estimate that Nelson prepared. The damaged equipment was described as very technical in nature, such as: a “Remote Aircraft Landing Marker,” a “chemical Pipeline Examiner” or a “Seismographic Probe.” . The claimed repair expenses would usually be from $16,000 to $19,000.
Nelson opened private mailboxes in states including Minnesota, Missouri, Washington, Arizona, Connecticut and Louisiana to receive the insurance checks. The mailboxes were opened under an assumed business name that Nelson used as the owner of the damaged equipment in the claims. Nelson also used the addresses of two warehouses on Explorer Street in Dallas, and directed that mail received at the private mailboxes be forwarded to one of those two addresses.
The cumulative total of the insurance claims prepared and submitted to insurance companies by Nelson from 2005 to 2012 totaled approximately $5 million.
This investigation was brought to the attention of federal law enforcement by the National Insurance Crime Bureau (NICB) and Farmers Insurance Group, Special Investigations. The FBI, Internal Revenue Service Criminal Investigation and U.S. Postal Inspection Service conducted the investigation. Assistant U.S. Attorney Christopher Stokes prosecuted.
Crownpoint Man Sentenced to Ten Years for Federal Child Sexual Abuse ConvictionRead the Press Release
ALBUQUERQUE – Elban Al Johnson, 34, an enrolled member of the Navajo Nation who resides in Crownpoint, N.M., was sentenced this morning to ten years in federal prison followed by five years of supervised release for his child sexual abuse conviction. Johnson will be required to register as a sex offender when he completes his prison sentence.
Johnson was arrested in March 2013, on a criminal complaint charging him with sexually assaulting an 11-year-old Indian child in Crownpoint, N.M., which is located within the Navajo Indian Reservation, in Nov. 2012. According to court filings, the child victim was in Johnson’s care when Johnson committed the crime.On Aug. 27, Johnson pleaded guilty to a felony information charging him with abusive sexual contact. At his plea hearing, Johnson admitted sexually assaulting the child victim on Nov. 5, 2012.
This case was investigated by the Gallup office of the FBI and the Crownpoint office of the Navajo Nation Division of Public Safety, and was prosecuted by Assistant U.S. Attorney Novaline D. Wilson.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Convicted Dallas Lawyer Pleads Guilty to Additional Mail Fraud ChargeRead the Press Release
DALLAS — Andrew Lee Siegel, a Dallas attorney, appeared this morning before U.S. Magistrate Judge Irma C. Ramirez and pleaded guilty to Count Two of a Superseding Information charging mail fraud, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
In July 2014, Siegel pleaded guilty to one count of felony criminal infringement of a copyright – Count One of the Superseding Information.
Siegel, 54, faces a maximum statutory penalty of 20 years in federal prison and a $250,000 fine, or twice any pecuniary gain to the defendant or loss to the victim, on the mail fraud conviction and five years and a $250,000 fine on the criminal infringement conviction. Restitution may be ordered. Siegel remains on bond pending sentencing, which is set for April 22, 2015, before U.S. District Judge Ed Kinkeade.
In fall 2010, Siegel established Dynasty Spirits, LLC, and later Dynasty Spirits, Inc. and Speak Easy Distillers, LLC, to facilitate the production and bottling of “Nue Vodka.” In February 2012, Siegel created a private placement memorandum for Dynasty Spirits, Inc. (Dynasty) authorizing the sale of up to $2 million of common stock shares by Dynasty. In June 2013, Siegel became the registered agent and manager of Vanguard Spirits, LLC, which was established for the purpose of distilling, branding and marketing “Vanguard Vodka.”
From September 2011 through July 2012, Siegel collected approximately $1,595,000 from 35 investors for the sale of Dynasty stock certificates. Siegel concealed from Dynasty owners that he unlawfully used up to $410,000 of that amount for his personal benefit, which he had collected from no more than six of the 35 investors.
In November 2012, Dynasty owners suspected Siegel had unlawfully used investor funds, and when confronted, Siegel falsely stated that he had attempted to wire $185,000 in investor funds to Dynasty but the transfer was misrouted. The following month, Siegel created fraudulent and fictitious emails to Dynasty owners representing he attempted to wire transfer $185,000 from his bank account to the Dynasty owners’ bank account. Some of the fraudulent emails Siegel created contained copyrighted writings and the logo of The Northern Trust Company.
Later that month, Siegel created another fraudulent email to Dynasty owners that contained copyrighted writings, letterhead and logos of the Federal Reserve Bank Services. In fact, Siegel used several fraudulent and fictitious emails that falsely represented to Dynasty owners that he was in contact with The Northern Trust Company and the Federal Reserve Bank Services in connection with his “attempted” $185,000 wire transfer to the Dynasty owners. Siegel engaged in this fraudulent conduct to deceive the owners of Dynasty and convince them that he was making a good faith effort to transfer investor funds to the investors of Dynasty.
On June 24, 2013, Siegel fraudulently disbursed $210,000 from a client’s (EP) escrow account to use as part of a legal settlement payment to owners of Dynasty Spirits. Those owners were the victims in Siegel’s infringement conviction. Siegel continued to fraudulently disburse funds from EP’s escrow account through November 2014.
On May 21, 2014, Siegel reimbursed EP by fraudulently and secretly disbursing $285,310 of Vanguard Spirits investor funds. Siegel concealed this fraudulent disbursement of Vanguard investor funds from Vanguard investors and management.
When Siegel pleaded guilty to Count One in July 2014, he made no admission or reference to his fraudulent disbursement of funds from both EP’s escrow account and from Vanguard Spirits’ investor funds.
The FBI is investigating, and Assistant U.S. Attorney David L. Jarvis is in charge of the prosecution.
Columbus Man Sentenced to more than 17 years in Prison for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Deborah R. Gilg announced that Matthew D. Renner, 35, of Columbus, Nebraska, was sentenced on January 5, 2015, to 212 months in prison by United States District Judge Laurie Smith Camp. Renner had previously pled guilty for his involvement in distributing methamphetamine in the Columbus area dating back to the summer of 2013.
The investigation began after Renner’s federal probation officer received information from law enforcement that Renner was involved in distributing methamphetamine in early 2014. On April 11, 2014, a search of Renner’s residence revealed approximately $1,930 in his dresser drawer, and approximately 15 grams of methamphetamine in a shed. At the time Renner was serving a Term of Supervised Release for a previous drug conviction. As a result, his sentence of imprisonment for the instant case was increased by two years.
This case was the result of an investigation by the Columbus Police Department and the United States Probation Office.Christopher Cook Charged with Violating Federal Firearms LawsRead the Press Release
ALBUQUERQUE – Christopher Cook, 36, of Albuquerque, N.M., has been charged with violating the federal firearms laws in a criminal complaint filed by the Bureau of Alcohol, Tobacco, Firearms and Explosives earlier today.
The criminal complaint charges Cook with being a felon in possession of a firearm. It alleges that Cook unlawfully possessed a firearm and ammunition on Jan. 3, 2015. According to the criminal complaint, Cook was prohibited from possessing either firearms or ammunition because he previously has been convicted of multiple felony offenses.
Cook was arrested earlier today on related state charges and currently is in state custody. He will be transferred to federal custody to answer to the federal charge in the criminal complaint.
If convicted of the charge in the criminal complaint, Cook faces up to ten years in federal prison. If the court determines that Cook is an armed career criminal, Cook faces an enhanced sentence of a mandatory minimum of 15 years in prison to a maximum of life imprisonment.
Charges in criminal complaints are mere accusations. Defendants are presumed innocent unless found guilty in a court of law.
This case was investigated by the Albuquerque Office of the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Albuquerque Police Department, the U.S. Marshals Service, the Albuquerque office of the FBI, the Bernalillo County Sheriff’s Office and the New Mexico State Police. Assistant U.S. Attorney David M. Walsh is prosecuting the case.
This case is being prosecuted as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
Christopher Cook Federal Criminal Complaint
Cedar Rapids Man Pleads Guilty to Being A Felon in Possession of A FirearmRead the Press Release
Contact: Steve Young
A man who purchased a handgun and more than 100 rounds of ammunition pled guilty yesterday in federal court in Cedar Rapids.
Montarrance Wilson, age 27, from Chicago, Illinois, was convicted of one count of being a felon in possession of a firearm and ammunition.
In a plea agreement, Wilson admitted that, on July 16, 2013, he purchased a handgun and more than 100 rounds of ammunition from a Marion, Iowa, man who had pawned the firearm. In exchange for $700, the man retrieved the firearm from the Marion pawnshop and sold it, and the ammunition, to Wilson. Later that same day, probation officers made an unannounced home visit to another felon’s apartment. Wilson fled when the officers knocked on the door. Inside, the officers found a bag belonging to Wilson containing the firearm and ammunition. Wilson was arrested in Illinois on these charges in November 2014, and was removed to this district to answer charges. Wilson was prohibited from possessing a firearm because he is a felon, having been convicted in 2007 of Deliver of Cocaine in Cook County, Illinois.
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Wilson will remain in the custody of the United States Marshal pending sentencing. Wilson faces a possible maximum sentence of ten years’ imprisonment, a $250,000 fine, $100 in special assessments, and three years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney C.J. Williams and was investigated by the Federal Bureau of Investigation and the Cedar Rapids Police Department as part of the FBI’s Safe Street’s Task Force. Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 13-cr-84.
Cairo Man Sentenced for Firearm OffenseRead the Press Release
Follow @SDILNewsDeldrick L. Spence, 28, from Cairo, Illinois, was sentenced on January 5, 2015, in United States District Court in East St. Louis, Illinois, on one count of unlawful possession of a firearm by a previously convicted felon, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Spence was sentenced to 57 months in prison, two years of supervised release, fined $200 and ordered to pay $100 special assessment, following his plea of guilty on September 22, 2014. The charges stem from a traffic stop conducted by the Clair County Sheriff’s Department that occurred on December 21, 2013, in Belleville, Illinois, when Spence, a passenger in the vehicle, admitted to owning a .9mm pistol uncovered during a search of the car, found inside the passenger seat side pocket. Spence also agreed to forfeiture of the firearm.
The investigation was conducted by the St. Clair County Sheriff’s Department and prosecuted by Special Assistant United States Attorney Jonathan S. Drucker.
Boise Man Sentenced for Bankruptcy Fraud for Concealing Interest in BusinessRead the Press Release
BOISE –Steven Gregory, 66, of Boise, was sentenced today to 30 months in prison and three years of supervised release for one count of bankruptcy fraud by asset concealment, U.S. Attorney Wendy J. Olson announced. Chief U.S. District Judge B. Lynn Winmill also ordered Gregory to pay $165,343 in restitution. Gregory pleaded guilty to the charge on October 21, 2014.
According to the plea agreement, Gregory filed bankruptcy in 2010 and during that bankruptcy proceeding, knowingly and fraudulently concealed a five percent ownership interest in a company. During the pendency of the bankruptcy case, Gregory demanded, and received, a payout of that interest in the amount of $330,464.19. However, Gregory failed to disclose both the ownership interest and the payment in his filed bankruptcy schedules and statements. Gregory intentionally and fraudulently concealed the interest and the payment from the Bankruptcy Court, the trustee, and his creditors.
The case was investigated by the Internal Revenue Service.
Bloomfield Township Theater Agrees to Improve Access for People with DisabilitiesRead the Press Release
The Maple Theater in Bloomfield Township has agreed to improve physical accessibility for people with disabilities at the theater, U.S. Attorney Barbara L. McQuade announced today.
The settlement agreement resolves an investigation under the Americans with Disabilities Act, alleging that the theater’s 2012 renovations allowed insufficient room for wheelchair seating. The complaint was filed by a Bloomfield Hills moviegoer with a mobility disability.
Under the agreement, the Maple Theater agreed to construct a new accessible unisex bathroom, relocate some of the existing accessible seating, ensure that the theater has accessible aisle seating and handrails in each auditorium, and make the bar area more accessible. Construction on some of the modifications is scheduled to begin this month, and the entire project should be completed within six months. Today’s agreement was reached under Title III of the ADA, which prohibits discrimination against individuals with disabilities by public accommodations.
“The law ensures that people with disabilities have the same access to public accommodations as all other Americans,” McQuade said. “This case is a reminder to businesses considering renovations that the Americans with Disabilities Act requires that building alterations comply with design standards.”
For more information on the ADA or today’s agreement with the Maple Theater, visit www.ada.gov or call the United States Justice Department’s toll-free ADA Information line at (800) 514-0301 or (800) 514-0383 (TTY) or the U.S. Attorney’s Civil Rights hotline at (313) 226-9151.
Bloomfield Man Sentenced to Forty-Six Months for Involuntary Manslaughter ConvictionRead the Press Release
Defendant Prosecuted as Part of Federal Initiative to Address the Epidemic Incidence of Violence Against Native Women
ALBUQUERQUE – Jasper Fernandez, 40, an enrolled member of the Navajo Nation who resides in Bloomfield, N.M., was sentenced this morning in federal court in Santa Fe, N.M., to 46 months in federal prison for his involuntary manslaughter conviction. Fernandez will be on supervised release for three years after completing his prison sentence. Fernandez also was ordered to pay $1,324.16 in restitution to cover funeral expenses for the victim.
Fernandez was arrested on Feb. 22, 2012, on a criminal complaint charging him with the Nov. 4, 2011, murder of a 36-year-old Navajo woman on the Navajo Indian Reservation. Fernandez entered a guilty plea on Dec. 22, 2014 to a felony information charging him with involuntary manslaughter. During the plea hearing, Fernandez admitted that he killed the victim while defending himself from a physical assault by the victim.According to court filings, Fernandez and the victim were both intoxicated when the victim began kicking and punching Fernandez because he criticized her. Fernandez, who lost a tooth as a result of the assault, pushed the victim away too hard and caused her to hit her head against the door pillar of a vehicle and die. In his plea agreement, Fernandez acknowledged that instead of seeking medical attention for the victim or contacting the police, he attempted to conceal his crime by burying the victim’s remains.
The case was investigated by the Albuquerque and Farmington offices of the FBI, the Navajo Nation Department of Public Safety and San Juan County Sheriff’s Office. Assistant U.S. Attorney Paul H. Spiers prosecuted the case.
This case was brought pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Bergen County, N.J. Man Sentenced to 18 Months in Prison for Tax EvasionRead the Press Release
NEWARK, N.J. – A Bergen County, New Jersey, man was sentenced today to 18 months in prison for tax evasion, U.S. Attorney Paul J. Fishman announced.
Mikhail Goldman, 63, of Fort Lee, New Jersey, previously pleaded guilty before U.S. Magistrate Judge Michael A. Hammer to a one-count information charging him with tax evasion for failing to report a total of $600,000 in income that he received between 2007 and 2011. Goldman was sentenced to 18 months in prison by United States District Judge Faith S. Hochberg.
According to documents filed in this case and statements made in court: Goldman received $12 million in checks written to various companies controlled by him, which he cashed for a fee of 5 percent of the face amount of each check. Goldman then failed to disclose those retained fees of $600,000 on his income tax returns to avoid paying the taxes he owed.In addition to the prison term, Judge Hochberg sentenced Goldman to three years of supervised release and ordered Goldman to pay over $120,000 in restitution to the United States.
U.S. Attorney Fishman credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen, for the investigation leading to today’s sentence.
The government is represented by Senior Litigation Counsel Andrew Leven of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark.
14-003
Defense counsel: George Farkas Esq., Brooklyn, New York
Baltimore, MD man convicted of selling crack cocaineRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Tara Tighe, Public Affairs SpecialistCLARKSBURG, WEST VIRGINIA – Justin Troy Clark, 24, of Baltimore, Maryland, was convicted in federal court for selling crack cocaine, United States Attorney William J. Ihlenfeld, II, announced today.
An investigation by the Eastern Panhandle Drug and Violent Crimes Task Force revealed that Clark sold crack cocaine in October 2013 in Martinsburg, West Virginia.Clark pleded guilty to one count of “Distribution of Cocaine Base.” He faces up to 20 years in prison and a fine of up to $1,000,000.00. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Paul Camilletti is prosecuting the cases on behalf of the government.
U.S. Magistrate Robert W. Trumble presided.
Baltimore Heroin Dealer Exiled to over 10 Years in PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge William D. Quarles, Jr., sentenced Davon Taylor, age 25, of Baltimore, today to 130 months in prison followed by three years of supervised release for conspiracy to distribute and possess with intent to distribute heroin.The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; and Commissioner Anthony W. Batts of the Baltimore Police Department.
According to his plea agreement, from July through November 2012, Taylor conspired with Shawn Jackson and others to obtain and distribute heroin in and around the Park Heights and Belvedere neighborhoods of Baltimore. During the conspiracy Taylor and others operated a street level drug distribution shop in those areas, dispensing street level and wholesale quantities of heroin to customers, some of who traveled from Pennsylvania to acquire the heroin. In September 2012, the DEA obtained a court-ordered wiretap on Shawn Jackson’s cell phones. Based on these intercepted conversations, law enforcement determined that Taylor was working as a “street hitter” for the organization. On several occasions, DEA intercepted conversations between Jackson and customers in Pennsylvania, who were traveling to obtain heroin. Jackson would direct Taylor, or another “hitter” to serve the Pennsylvania customer the requested quantity of heroin
As a result of his participation in the drug conspiracy, Taylor was responsible for the distribution of between one and three kilograms of heroin.
Shawn Jackson, age 25, of Baltimore, previously pleaded guilty to his role in the conspiracy and was sentenced to five years in prison.
United States Attorney Rod J. Rosenstein commended the DEA and Baltimore Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys James T. Wallner and Scott A. Lemmon, who prosecuted the case.
Atlanta Man Sentenced for Theft of Government FundsRead the Press Release
ATLANTA - Rupert Morgan has been sentenced to two years, and three months in federal prison for theft of VA and Social Security funds paid to a beneficiary who died in 1997.
“Morgan stole more than $400,000 to which he was not entitled,” said United States Attorney Sally Quillian Yates. “This case is particularly troubling because he had a successful and lucrative career in the legal profession during the entire time period that he was committing this fraud on the United States government.”
Special Agent in Charge Monty Stokes, U.S. Department of Veterans Affairs Office of Inspector General (VA OIG) – Southeast Field Office, said “this sentencing is a testament to the excellent interagency cooperation with VA OIG, Social Security Administration, and the Department of Justice. We are committed to aggressively pursuing those who commit fraud against our nation’s veterans, the Department of Veterans Affairs and its programs.”
“The Social Security Office of the Inspector General is committed to pursuing those who violate the public’s trust by failing to report Social Security beneficiary deaths and continuing to receive the deceased’s benefits, sometimes for many years. We are working closely with Social Security and the Department of Justice to identify and prosecute these people and recover stolen funds, as one of our many efforts to protect the integrity of Social Security’s programs for those who rely on them now and into the future,” said Thomas Caul, Special Agent-in-Charge of the SSA OIG’s Atlanta Field Division.
According to United States Attorney Yates, the charges and other information presented in court: In December 1996, Morgan was a paralegal who has been employed by various law firms in the Atlanta area, and R.V., a VA disability and Social Security Administration (SSA) retirement beneficiary, was a patient at a personal care home owned and operated by Morgan’s now ex-wife. Morgan and R.V. opened a joint SunTrust bank account into which R.V.’s benefits were deposited. R.V. died in November 1997. After R.V.’s death, the defendant kept the joint bank account open while VA and SSA benefits continued to be deposited into the account.
In 2007, ten years after R.V.’s death, the defendant opened a second joint bank account in both his and R.V.’s names. He then frequently transferred money from the original joint account to the second joint account. Morgan often let large sums of money accumulate in the accounts before he spent it. When the SSA discovered the fraud, it was able to reclaim over $101,000 that was sitting in the defendant’s and R.V.’s joint bank account. In total, the defendant stole $258,045.00 from the VA and $142,372.00 from the SSA.
Morgan, 53, of Atlanta, Ga., has been sentenced to two years, three months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $299,164.75. Morgan was convicted of these charges on September 26, 2014, after he pleaded guilty.
This case was investigated by the Social Security Administration, Office of the Inspector General and Department of Veterans Affairs, Office of Inspector General.
Special Assistant United States Attorney Diane C. Schulman 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/.
Armed Career Offender Sentenced to 192 Months in Prison for Possessing Multiple Stolen FirearmsRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced today that a Bossier Parish man was sentenced to 192 months in prison for illegally possessing multiple firearms.
Donald W. “Duck” Reyenga, 49, of Bossier City, La., was sentenced by U.S. District Judge S. Maurice Hicks Jr. on one count of possession of a firearm by a person previously convicted of a felony. He was also sentenced to five years of supervised release after he completes his prison term. According to evidence presented at the August 6, 2014 guilty plea, members of the Bossier Combined Narcotics Task Force learned that Reyenga was attempting to sell stolen firearms. On April 17, 2014, agents scheduled a controlled purchase at a Bossier City hotel. There, Reyenga sold a Hi-Standard, model Double 9, .22 caliber revolver, a Savage model 93 .22LR caliber rifle, and ammunition. His sale of the stolen firearms was recorded and he was arrested. Agents later recovered another stolen rifle that Reyenga had sold that morning along with other items stolen from residences in Red River Parish.
During the guilty plea hearing, Reyenga admitted he was an Armed Career Offender as defined by the Armed Career Criminal Act (ACCA). The ACCA increases the mandatory minimum sentence to 15 years for a defendant if he has three previous convictions for either a violent felony or a serious drug offense. Reyenga has numerous previous felony convictions in Bossier and Caddo parishes including attempted manslaughter, burglary, attempted aggravated burglary, distribution of marijuana, possession of cocaine and illegal possession of stolen things.
“This sentence is a reminder that it is illegal for felons to sell or possess firearms,” Finley stated. “Those with felony records must comply with firearms laws. We will vigorously prosecute dangerous and persistent felons in order to protect the public”
The ATF and the Bossier Combined Narcotics Task Force conducted the investigation. Assistant U.S. Attorney Robert W. Gillespie Jr. prosecuted the case as part the Department of Justice Project Safe Neighborhoods initiative. This initiative is designed to reduce firearm crimes by using federal statutes to remove dangerous and persistent felons from the community.
$18 Million Seized from Owners of New England Compounding CenterRead the Press Release
BOSTON – More than $18,000,000 was seized from accounts connected to the owners of New England Compounding Center (NECC). The funds were seized from 13 different financial institutions, pursuant to 26 seizure warrants issued by the federal court in Boston. The seizure warrants were unsealed today.
Approximately $1,500,000 was seized from three accounts held by Barry J. Cadden, a shareholder and the head pharmacist of NECC. Cadden was recently charged in a 131-count criminal indictment along with 13 other individuals, in connection with the 2012 fungal meningitis outbreak caused by contaminated medications made by NECC. Among the charges that Cadden faces are 25 acts of second degree murder as well as mail fraud, conspiracy and violations of the Food, Drug and Cosmetic Act.
In addition, approximately $16,800,000 was frozen in accounts held by or connected to Carla Conigliaro, 51, and Douglas A. Conigliaro, 53, of Dedham, Mass. Carla Conigliaro is the majority shareholder of NECC, and Douglas A. Conigliaro is her husband. Both were recently charged with transferring assets following the 2012 fungal meningitis outbreak.
According to the allegations in the application for the seizure warrants unsealed today, the Conigliaros transferred millions the same month that NECC surrendered its pharmacy license and shortly before NECC’s petition for bankruptcy. Carla and Douglas A. Conigliaro also allegedly transferred millions more after the bankruptcy court issued two orders prohibiting them from transferring any assets.
United States Attorney Carmen M. Ortiz; Jeffrey Ebersol, Special Agent in Charge of the Food and Drug Administration, Office of Criminal Investigations; and Shelly Binkowski, Postal Inspector in Charge of the U.S. Postal Inspection Service, Boston Division, made the announcement today. The asset forfeiture seizures are being handled by Assistant U.S. Attorney Veronica M. Lei of Ortiz’s Asset Forfeiture Unit. The case is being prosecuted by Assistant U.S. Attorneys George P. Varghese and Amanda P.M. Strachan of the Health Care Fraud Unit for the U.S. Attorney’s Office in the District of Massachusetts, and Trial Attorney John W.M. Claud of the Civil Division’s Consumer Protection Branch.
5 January 2015
Warren, Ohio, Man Sentenced to Prison for Role in Ohio to Western PA Cocaine Trafficking PipelineRead the Press Release
PITTSBURGH - A resident of Warren, Ohio, has been sentenced in federal court to 21 months imprisonment followed by 3 years supervised release on his conviction of violating federal drug trafficking laws, United States Attorney David J. Hickton announced today.
Senior United States District Judge Terence F. McVerry imposed the sentence on Allan Williams, 40.
According to information presented to the court, from in and around January 2011 and continuing thereafter to in and around June 2012, Williams conspired with others to distribute and possess with intent to distribute cocaine.
The prosecution of Williams was the result of a long-term investigation that involved wiretaps on cell phones utilized by several members of the conspiracy. At the conclusion of the investigation, twenty defendants (including Williams) were charged in a large-scale cocaine conspiracy that operated between Warren, Ohio, and Washington, Pennsylvania. All twenty defendants have since pleaded guilty. The same investigation also resulted in the prosecution of ten defendants charged in a large-scale heroin conspiracy that operated between Detroit, Michigan, and Washington, Pennsylvania. All ten defendants have likewise pleaded guilty.
Assistant United States Attorneys Charles A. Eberle and Barbara K. Doolittle prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation and the Pennsylvania State Police for the investigation leading to the successful prosecution of Williams.
Two Defendants Charged for their Role in an Attempted Coup in the GambiaRead the Press Release
Defendants Charged with Conspiracy to Violate the Neutrality Act and Conspiracy to Possess Firearms in Furtherance of a Crime of Violence
United States Attorney General Eric Holder, Assistant Attorney General for National Security John P. Carlin, United States Attorney Andrew M. Luger for the District of Minnesota, and Federal Bureau of Investigation Special Agent in Charge Richard T. Thornton of the Minneapolis Division today announced a criminal complaint charging Cherno Njie, 57, and Papa Faal, 46, for their role in a recent attempted coup in The Gambia. Both men are in custody and are expected to have initial appearances in court today. Njie will appear in United States District Court in Baltimore, Maryland. Faal will appear in U.S. District Court in Minneapolis, Minnesota. Both defendants are charged with conspiring to violate the Neutrality Act by making an expedition against a friendly nation from the United States and conspiring to possess firearms in furtherance of a crime of violence.
On Dec. 30, 2014, there was an unsuccessful attempted coup against the government of The Gambia. The Gambia is a country in West Africa bordered by Senegal and the Atlantic Ocean.
“These defendants stand accused of conspiring to carry out the violent overthrow of a foreign government, in violation of U.S. law,” said Attorney General Eric Holder. “The United States strongly condemns such conspiracies. With these serious charges, the United States is committed to holding them fully responsible for their actions.”
According to the criminal complaint and documents filed in court, in December 2014, Cherno Njie and Papa Faal separately traveled from the United States to The Gambia for the purpose of overthrowing the Gambian government. Faal is a dual U.S./Gambian citizen and a resident of Brooklyn Center, Minnesota. Njie, a U.S. citizen of Gambian descent and a resident of Austin, Texas, is a businessman who served as financier and leader of the conspiracy. Njie and his co-conspirators expected that Njie would have served as the interim leader of The Gambia had the coup attempt succeeded.
According to the criminal complaint, approximately 10-12 members of the conspiracy entered The Gambia to carry out the coup attempt, with the expectation that others in the country would join and assist them. Prior to departing for The Gambia, between August and October 2014, Faal and other co-conspirators purchased multiple firearms, including M4 semi-automatic rifles, and shipped them to The Gambia for use in the coup attempt. Members of the conspiracy also acquired night-vision goggles, body armor, ammunition, black military style uniform pants, boots, and other personal equipment.
According to the criminal complaint, on Dec. 30, 2014, a number of the co-conspirators, including Faal, met in the woods near the State House in Banjul, which is the home of the Gambian president, and split into two assault teams. Njie was not present at that meeting, instead waiting in a safe place until the assault teams took control of the facility. However, when one of the assault teams approached the State House and fired a shot into the air, the team began taking heavy fire from the guard towers. Although numerous conspirators on the assault teams were killed or injured during the failed attempt to take control of the government building, Faal was able to flee the scene and he ultimately returned to the U.S. Njie also returned to the U.S. Both men have since been arrested.
This investigation is being led by the Federal Bureau of Investigation and its partners on Joint Terrorism Task Forces in multiple field offices.
Assistant U.S. Attorney Charles Kovats of the United States Attorney’s Office for the District of Minnesota is prosecuting this case, with assistance from Richard Scott, a Deputy Chief in the Counterespionage Section of the Justice Department's National Security Division. A number of other U.S. Attorney’s Offices, including those in the District of Maryland and the Western District of Texas provided critical support during the investigation.
Defendant Information:
CHERNO NJIE, 57
Austin, Texas.
Charges:
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Conspiracy to violate the Neutrality Act, 1 count
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Conspiracy to possess a firearm in furtherance of a crime of violence, 1 count
PAPA FAAL, 46
Brooklyn Center, Minnesota.
Charges:
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Conspiracy to violate the Neutrality Act, 1 count
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Conspiracy to possess a firearm in furtherance of a crime of violence, 1 count
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Two Defendants Charged for Their Role in an Attempted Coup in the GambiaRead the Press Release
Defendants Charged with Conspiracy to Violate the Neutrality Act and Conspiracy to Possess Firearms in Furtherance of a Crime of Violence
United States Attorney General Eric Holder, United States Attorney for the District of Minnesota Andrew M. Luger, Assistant Attorney General for National Security John P. Carlin, and Federal Bureau of Investigation Special Agent in Charge of the Minneapolis Division Richard T. Thornton today announced a criminal complaint charging CHERNO NJIE, 57, and PAPA FAAL, 46, for their role in a recent attempted coup in The Gambia. Both men are in custody and are expected to have initial appearances in court today. NJIE will appear in United States District Court in Baltimore, Maryland. FAAL will appear in U.S. District Court in Minneapolis, Minnesota. Both defendants are charged with conspiring to violate the Neutrality Act by making an expedition against a friendly nation from the United States and conspiring to possess firearms in furtherance of a crime of violence. 1
On December 30, 2014, there was an unsuccessful attempted coup against the government of The Gambia. The Gambia is a country in West Africa bordered by Senegal and the Atlantic Ocean.
“These defendants stand accused of conspiring to carry out the violent overthrow of a foreign government, in violation of U.S. law,” said Attorney General Eric Holder. “The United States strongly condemns such conspiracies. With these serious charges, the United States is committed to holding them fully responsible for their actions.”
United States Attorney for the District of Minnesota Andrew M. Luger said: “This case would not be possible without the dedication of prosecutors around the country and FBI agents around the world, who worked non-stop to uncover evidence of the plot to overthrow the Gambian government. My office will continue to work cooperatively with our law enforcement partners here and abroad to bring these defendants to justice.”
FBI Special Agent in Charge for the Minneapolis Division Richard T. Thornton said: “This investigation reinforces the continued success of the FBI's Joint Terrorism Task Force in Minneapolis. The FBI, along with its many task force partners, remains committed to disrupting and preventing political violence no matter what form it takes.”
According to the criminal complaint and documents filed in court, in December 2014, CHERNO NJIE and PAPA FAAL separately traveled from the United States to The Gambia for the purpose of overthrowing the Gambian government. FAAL is a dual U.S./Gambian citizen and a resident of Minnesota. NJIE, a U.S. citizen of Gambian descent and a resident of Texas, is a businessman who served as financier and leader of the conspiracy. NJIE and his co-conspirators expected that NJIE would have served as the interim leader of the Gambia had the coup attempt succeeded.
According to the criminal complaint, approximately 10-12 members of the conspiracy entered The Gambia to carry out the coup attempt, with the expectation that others in the country would join and assist them. Prior to departing for The Gambia, between August and October 2014, FAAL and other co-conspirators purchased multiple firearms, including M4 semi-automatic rifles, and shipped them to The Gambia for use in the coup attempt. Members of the conspiracy also acquired night-vision goggles, body armor, ammunition, black military style uniform pants, boots, and other personal equipment.
According to the criminal complaint, on December 30, 2014, a number of the co-conspirators, including FAAL, met in the woods near the State House in Banjul, which is the home of the Gambian President, and split into two assault teams. NJIE was not present at that meeting, instead waiting in a safe place until the assault teams took control of the facility. However, when one of the assault teams approached the State House and fired a shot into the air, the team began taking heavy fire from the guard towers. Although numerous conspirators on the assault teams were killed or injured during the failed attempt to take control of the government building, FAAL was able to flee the scene and he ultimately returned to the U.S. NJIE also returned to the U.S. Both men have since been arrested.
The criminal complaint (including the affidavit) is attached as a pdf document.
This investigation is being led by the Federal Bureau of Investigation and its partners on Joint Terrorism Task Forces in multiple field offices. U.S. Attorney Luger commended the many agents, analysts, and prosecutors in multiple offices who are responsible for this ongoing investigation.
Assistant U.S. Attorney Charles Kovats of the United States Attorney’s Office for the District of Minnesota is prosecuting this case, with assistance from Richard Scott, a Deputy Chief in the Counterespionage Section of the Justice Department's National Security Division. A number of other U.S. Attorney’s Offices, including those in the District of Maryland and the Western District of Texas provided critical support during the investigation.
Defendant Information: CHERNO NJIE, 57
Austin, Tex.
Charges: • Conspiracy to violate the Neutrality Act, 1 count
• Conspiracy to possess a firearm in furtherance of a crime of violence, 1 count
PAPA FAAL, 46
Brooklyn Center, Minn.
Charges: • Conspiracy to violate the Neutrality Act, 1 count
• Conspiracy to possess a firearm in furtherance of a crime of violence, 1 countComplaint and Affidavit
1 The charges contained in the criminal complaint are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
The charges are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Topeka Woman Sentenced for Aiding Robbery, Unlawful Access to State RecordsRead the Press Release
TOPEKA, KAN. - A Topeka woman was sentenced Monday to three years in federal prison for aiding and abetting an armed robbery at a Red Robin restaurant, U.S. Attorney Barry Grissom. The sentence also includes a $1,000 fine in connection with her plea in a separate count to unlawfully accessing state motor vehicle records while she worked for the Kansas Department of Revenue.
Johanna Ross, 23, Topeka, Kan., pleaded guilty to one count of aiding and abetting an armed robbery and one count of unlawfully accessing a state database. In her plea, she admitted she assisted co-defendants Derick Renee Crawford and Travis Jeremy Coffman during an armed robbery Aug. 18, 2013, at the Red Robin restaurant at 6230 S.W. 6th in Topeka.
Crawford, who was armed with a handgun, and Coffman, who was armed with a can of mace, robbed the restaurant. During the robbery, they held employees at gunpoint and threatened to kill them.
In her plea, Ross admitted she was present in the parking lot when Crawford and Coffman planned the robbery and she drove Crawford away after the robbery. She also admitted retrieving the firearm used by Crawford, the pink can of mace used by Coffman and a shirt used by Crawford during the robbery.
In a separate count not related to the robbery, Ross admitted that while she worked for the Kansas Department of Revenue she used her access to a database of motor vehicle records to retrieve the address of an individual and pass that information on to a third party for payment, all in violation of federal law.
Co-defendants included:
Derick Renee Crawford, who was sentenced to 84 months in federal prison.
Travis Jeremy Coffman, who was sentenced to 49 months in federal prison.
Grissom commended the Topeka Police Department, the FBI, the Shawnee County District Attorney’s Office and Assistant U.S. Attorney Jared for their work on the case.
SoCal Doctor Who Distributed Addictive Painkiller Hydrocodone and Laundered More Than $1 Million in Illegal Proceeds Sentenced to over 5 Years in Federal PrisonRead the Press Release
LOS ANGELES – A Los Angeles-area doctor who was convicted last summer of narcotics trafficking for illegally distributing the powerful painkiller best known by the brand names Vicodin and Norco was sentenced today to 63 months in federal prison.
Dr. Andrew Sun, 79, of La Mirada, was sentenced this afternoon by United States District Judge Manual Real.
A federal jury in August found Sun guilty of 14 counts of narcotics distribution after determining that he illegally issued prescriptions for hydrocodone and alprazolam – the drug best known as Xanax – in exchange for cash payments from “patients.” According to a sentencing memo filed by federal prosecutors, “When prescribed together, these drugs form an especially potent and deadly cocktail for which there is no legitimate medical purpose.”
The evidence at trial showed that Sun issued more than 24,000 prescriptions over a three-year period and generated more than $1.1 million in cash through what prosecutors called “a cash-and-carry narcotics store.”
Sun was also found guilty of three counts of money laundering.
“The jury convicted defendant of using his pedigree as a doctor to endanger his patients’ lives and to profit from their addiction,” prosecutors said in court papers. “Consistent with the guilty verdicts, defendant acted with no legitimate medical purpose and defendant sought to cover his tracks through systematic fraud and deception, including his attempt to conceal the hundreds of thousands of dollars of illegal proceeds.”
Sun, who operated medical clinics in San Gabriel and East Los Angeles, issued prescriptions to a dozen “patients” – in reality, undercover law enforcement officers – who made cash payments. Two medical experts retained by the government to review Sun’s interaction with the undercover operatives (UCs) concluded that “that there was no medical legitimacy to defendant’s meetings with the UCs, and that his conduct was an extreme departure from the accepted standard of care.”
Sun’s conviction last year in United States District Court was the second time he was found culpable for illegally writing prescriptions. In 2007, the Medical Board of California placed Sun on probation for four years and required him to complete special training and to generate special reports on his activities. But in 2010, the Medical Board found that he submitted false statements to the regulatory agency and extended his probation for another four years, which included a ban on prescribing certain medications, including the highly addictive drug best known under the brand name OxyContin.
The investigation into Sun was conducted by the Drug Enforcement Administration, IRS - Criminal Investigation, the Medical Board of California, the California Department of Health Care Services and the Monterey Park Police Department.
Release No. 15-001
Sequim Drug Trafficker Pleads Guilty to Meth Distribution ConspiracyRead the Press Release
The former owner of ‘Sellin Style’ car dealership in Sequim, Washington pleaded guilty last week to conspiracy to distribute methamphetamine and possession of methamphetamine with intent to distribute, announced Acting U.S. Attorney Annette L. Hayes. TIMOTHY P. SMITH, 30, was arrested in February 2014, following a high speed chase that ended after two sets of spike strips were placed on the highway. All of SMITH’s charged co-conspirators, Kelsey J. Davis, Tammy R. Coburn, Holli A. Bell, Jacob E. Davis, and Charles D. Aslin, have also pleaded guilty in the case. SMITH faces a mandatory minimum ten years in prison, and up to life imprisonment, when sentenced by U.S. District Judge Robert J. Bryan on March 27, 2015.
According to records in the case, SMITH and his cohorts were under investigation by federal law enforcement since 2011. Some of the federally indicted offenses, investigated by local law enforcement, went back even further. In particular, SMITH sold methamphetamine to a person working with law enforcement on multiple occasions in June, July and August 2013 at his ‘Sellin Style’ car dealership on Old Blyn Highway near Sequim.
In conjunction with a separate investigation and take-down of a larger drug ring, which was supplying methamphetamine to SMITH and others, law enforcement arrested SMITH as he traveled back to Sequim from Kitsap County on Sunday evening, February 23, 2014. Shortly after SMITH’s vehicle crossed the Hood Canal Bridge, the Washington State Patrol pulled the car over. After initially stopping, SMITH sped away, traveling at speeds nearing 100 mph and weaving into the lane for oncoming traffic. Troopers noticed white bags tossed from the car; inside was 1.6 pounds of methamphetamine. The car hit one set of spike strips and continued on. After hitting a second set of spike strips the car came to a halt and SMITH and his girlfriend, Kelsey Davis, were taken into custody. Davis also had $4,000 in cash on her person, which she revealed in a monitored jail call to have been given to her by SMITH during the police chase.
The case was investigated by the FBI, ATF, and Olympic Peninsula Narcotics Enforcement Team (OPNET), a task force containing officers from Clallam County Sheriff’s Office, Jefferson County Sheriff’s Office, Port Angeles Police Department, Sequim Police Department, Neah Bay Department of Public Safety, Elwha Klallam Police, LaPush Police, the U.S. Coast Guard, U.S. Border Patrol, the Washington Department of Corrections, Washington State Patrol and the West Sound Narcotics Enforcement Team (WestNet).
The case is being prosecuted by Assistant United States Attorney Gregory A. Gruber.
Riverside County Man Pleads Guilty to Conspiracy to Grow Marijuana and Setting Fires in National ForestRead the Press Release
FRESNO, Calif. — Edgardo Fournier, aka Edgardo Fournier-Nigaglioni, 46, of Perris, pleaded guilty today to conspiring to manufacture, distribute and possess with intent to distribute marijuana, and setting timber afire in the Sequoia National Forest, U.S. Attorney Benjamin B. Wagner announced.
According to the guilty plea, from about April 1, 2014 to July 12, 2014, Fournier helped water and tend 2,090 marijuana plants at a grow site in the Smith Canyon area of the Sequoia National Forest in Kern County. He admitted that on July 11 and 12, he lit fires in the vicinity of the grow site within the boundaries of the federally designated Kiavah Wilderness Area. The fires converged and became known as the Nicolls Fire. The Nicolls Fire destroyed about 1,680 acres of public land causing over $6.5 million of damage. The fire did not damage the marijuana cultivation site, which also caused significant damage to the land and natural resources of the forest.
Fournier is scheduled for sentencing on March 30, 2015. He faces a prison term of between five and 40 years for the drug conspiracy and up to a $5 million fine. The arson charge carries a maximum penalty of five years in prison and $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory sentencing factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case is the product of an investigation by the U.S. Forest Service, the U.S. Bureau of Land Management, and the Kern County Sheriff’s Office. Assistant United States Attorney Karen A. Escobar is prosecuting the case.
Portsmouth Man Sentenced to Eleven Years for Receiving Child PornographyRead the Press Release
NORFOLK, Va. – Justin Carter, 31, of Portsmouth, was sentenced today to 132 months in prison, followed by a life term of supervised release for receipt of child pornography.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia and Clark E. Settles, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Washington, D.C., made the announcement after sentencing by U.S. District Judge Mark S. Davis.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:14cr116.
Carter pleaded guilty on August 27, 2014. According to court documents, Carter was engaged in the soliciting, receiving, and sharing of images of child pornography via the Internet using a computer at a friend’s home. A forensic examination of the computer showed that Carter exchanged numerous emails with other individuals in which they attached pictures of children engaged in various forms of sexually explicit conduct. The images included prepubescent girls performing sexual acts with adults. Some of the children depicted were of toddler age. The computer contained approximately 547 images of child pornography on the hard drive.
This case was investigated by Homeland Security Investigations. Assistant U.S. Attorney Randy Stoker is prosecuting the case on behalf of the United States.Tweet
Portsmouth Man Sentenced to Eleven Years for Receiving Child PornographyRead the Press Release
NORFOLK, Va. – Justin Carter, 31, of Portsmouth, was sentenced today to 132 months in prison, followed by a life term of supervised release for receipt of child pornography.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia and Clark E. Settles, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Washington, D.C., made the announcement after sentencing by U.S. District Judge Mark S. Davis.
Carter pleaded guilty on August 27, 2014. According to court documents, Carter was engaged in the soliciting, receiving, and sharing of images of child pornography via the Internet using a computer at a friend’s home. A forensic examination of the computer showed that Carter exchanged numerous emails with other individuals in which they attached pictures of children engaged in various forms of sexually explicit conduct. The images included prepubescent girls performing sexual acts with adults. Some of the children depicted were of toddler age. The computer contained approximately 547 images of child pornography on the hard drive.
This case was investigated by Homeland Security Investigations. Assistant U.S. Attorney Randy Stoker is prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:14cr116.Tweet
North Jersey Doctor Sentenced to One Year of House Arrest and Three Years' ProbationRead the Press Release
Admitted Accepting Bribes for Test Referrals to Clinical Laboratory
NEWARK, N.J. – A doctor with a practice in Paterson, New Jersey, was sentenced today to three years’ probation, which includes one year of house arrest with electronic monitoring, for accepting more than $200,000 in bribes from Parsippany, New Jersey-based Biodiagnostic Laboratory Services LLC (BLS) as part of a long-running scheme operated by the lab, its president, and numerous associates, U.S. Attorney Paul J. Fishman announced.
Claudio Dicovsky, 52, of Fort Lee, New Jersey, previously pleaded guilty before U.S. District Judge Stanley R. Chesler to an information charging him with one count of accepting bribes. Judge Chesler imposed the sentence today in Newark federal court.
Including Dicovsky, 33 people – 22 of them physicians – have pleaded guilty in connection with the bribery scheme, which its organizers have admitted involved millions of dollars in bribes and resulted in more than $100 million in payments to BLS from Medicare and various private insurance companies.
According to documents filed in this and other cases and statements made in court:
Dicovsky admitted he agreed with BLS president David Nicoll, 40, of Mountain Lakes, New Jersey, to accept bribes in exchange for his referral of blood specimens. To disguise those bribes, Dicovsky and BLS entered into a sham lease agreement and a sham service agreement in which the monthly bribe payments of more than $5,000 were characterized as “lease” and “service” payments. While the lease agreement purported to be for 1,000 square feet of space, little or no space was allocated to BLS in Dicovsky’s medical office in Paterson. Between November 2006 and August 2009, Dicovsky received more than $224,000 in bribe payments from BLS, and BLS made more than $800,000 through testing on blood specimens referred by Dicovsky.
In addition to probation and house arrest, Judge Chesler fined Dicovsky $75,000 and sentenced him to 1,500 hours of community service. He must also forfeit more than $222,000.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford; U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Thomas O’Donnell; IRS– Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen; and inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates, with the ongoing investigation leading to today’s guilty pleas.The government is represented by Senior Litigation Counsel Andrew Leven, Assistant U.S. Attorney Joseph Minish, and Jacob T. Elberg, Chief of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark, as well as Assistant U.S. Attorney Barbara Ward of the office’s Asset Forfeiture and Money Laundering Unit.
U.S. Attorney Paul J. Fishman reorganized the health care fraud practice at the New Jersey U.S. Attorney’s Office shortly after taking office, including creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered more than $620 million in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act and other statutes.
15-002
Defense counsel: Gerald Miller Esq., Jersey City, N.J.
Lexington Woman Sentenced to 18 Months for Immigration and Labor ViolationsRead the Press Release
Defendant Harbored Undocumented Mexican Migrant for Labor on Tobacco Farm
The Department of Justice announced today that Pedra Perez-Gumeta, 52, of Lexington, Kentucky, was sentenced to serve 18 months in federal prison by United States Senior District Court Judge Joseph M. Hood for harboring an undocumented Mexican migrant for labor at a tobacco farm, illegally re-entering the United States after deportation and failing to pay a minimum wage to the undocumented Mexican migrant. Judge Hood also ordered Perez-Gumeta to pay restitution to the Mexican migrant in the amount of $1,311 and mandatory special assessments totaling $210.
Perez-Gumeta previously admitted that she had brought a woman to Lexington from Mexico to provide the woman with a job. Perez-Gumeta also admitted that she knew the woman was from Mexico and not legally within the United States, nor was the woman able to work legally in the United States. Perez-Gumeta also admitted that she had been previously deported from the United States and that she had re-entered the United States illegally. Perez-Gumeta further admitted that she did not pay the woman for all of the labor the woman performed, instead keeping a portion of the woman’s wages for herself. Perez-Gumeta pleaded guilty to the charges in September of 2014. In sentencing Perez-Gumeta, the court found that the defendant used coercion in the course of harboring the undocumented Mexican woman for financial gain.
Under federal law, Perez-Gumeta must serve 85 percent of her prison sentence, and, upon release, will be under the supervision of the United States Probation Office for one year, unless she is deported.
Kerry B. Harvey, United States Attorney for the Eastern District of Kentucky, Steven L. Igyarto, Resident Agent in Charge, Homeland Security Investigations (HSI), Department of Homeland Security (DHS), Rodney Brewer, Commissioner, Kentucky State Police (KSP), and Mark Barnard, Chief, Lexington-Fayette Urban County Government Division of Police, jointly made the announcement today after the sentencing.
The investigation was conducted by the DHS-HSI, the KSP, and the Lexington Police Department. The United States was represented by Trial Attorney Victor Boutros of the Civil Rights Division’s Human Trafficking Prosecution Unit and Assistant United States Attorneys Hydee R. Hawkins and David A. Marye.
Lexington Woman Sentenced to 18 Months for Immigration and Labor ViolationsRead the Press Release
Defendant Harbored Undocumented Mexican Migrant for Labor on Tobacco Farm
WASHINGTON, DC - The Department of Justice announced today that Pedra Perez-Gumeta, 52, of Lexington, Kentucky, was sentenced to serve 18 months in federal prison by United States Senior District Court Judge Joseph M. Hood for harboring an undocumented Mexican migrant for labor at a tobacco farm, illegally re-entering the United States after deportation and failing to pay a minimum wage to the undocumented Mexican migrant. Judge Hood also ordered Perez-Gumeta to pay restitution to the Mexican migrant in the amount of $1,311 and mandatory special assessments totaling $210.
Perez-Gumeta previously admitted that she had brought a woman to Lexington from Mexico to provide the woman with a job. Perez-Gumeta also admitted that she knew the woman was from Mexico and not legally within the United States, nor was the woman able to work legally in the United States. Perez-Gumeta also admitted that she had been previously deported from the United States and that she had re-entered the United States illegally. Perez-Gumeta further admitted that she did not pay the woman for all of the labor the woman performed, instead keeping a portion of the woman’s wages for herself. Perez-Gumeta pleaded guilty to the charges in September of 2014. In sentencing Perez-Gumeta, the court found that the defendant used coercion in the course of harboring the undocumented Mexican woman for financial gain.
Under federal law, Perez-Gumeta must serve 85 percent of her prison sentence, and, upon release, will be under the supervision of the United States Probation Office for one year, unless she is deported.
Kerry B. Harvey, United States Attorney for the Eastern District of Kentucky, Steven L. Igyarto, Resident Agent in Charge, Homeland Security Investigations (HSI), Department of Homeland Security (DHS), Rodney Brewer, Commissioner, Kentucky State Police (KSP), and Mark Barnard, Chief, Lexington-Fayette Urban County Government Division of Police, jointly made the announcement today after the sentencing.
The investigation was conducted by the DHS-HSI, the KSP, and the Lexington Police Department. The United States was represented by Trial Attorney Victor Boutros of the Civil Rights Division’s Human Trafficking Prosecution Unit and Assistant United States Attorneys Hydee R. Hawkins and David A. Marye.
Las Vegas Man who Earned over $7 Million during 2007 Sentenced to 10 Months in Prison for Failing to File a Tax ReturnRead the Press Release
LAS VEGAS, Nev. – A Las Vegas man who earned over $7 million during 2007 and failed to file a 2008 federal tax return with the IRS, was sentenced today to 10 months in prison, one year of supervised release, and ordered to pay approximately $2.5 million in restitution to the IRS, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.
“We work with the IRS to enforce the nation's tax laws,” said U.S. Attorney Bogden. “We will do this fully, fairly, and consistently, through both criminal and civil litigation, in order to promote voluntary compliance with the tax laws and to maintain public confidence in the integrity of the tax system.”
Shawn Lampman, 49, was sentenced by U.S. District Judge James C. Mahan. Lampman was originally charged in April 2013 and pleaded guilty on April 14, 2014, to one count of failure to file an individual tax return. He must report to federal prison by April 6, 2015.
According to the guilty plea agreement, during 2007, Lampman earned income in excess of $7 million and willfully failed to make and file an individual tax return with the IRS on or before April 15, 2008.
The case was investigated by IRS Criminal Investigation and prosecuted by First Assistant U.S. Attorney Steven W. Myhre.
Las Vegas Man Sentenced to 15 Months in Prison for Tax EvasionRead the Press Release
LAS VEGAS, Nev. – A Las Vegas man who formerly operated a well-known local adult entertainment club and owned an escort service business, was sentenced today by U.S. District Judge Phillip M. Pro to 15 months in prison for his guilty plea to tax evasion, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.
Emannouil “Manny” Varagiannis, 44, was also ordered to pay $230,651 in restitution and to forfeit two homes in Las Vegas. Varagiannis was originally charged in September 2012, and pleaded guilty on April 9, 2014, to one count of tax evasion. He must report to federal prison by April 3, 2015.
“We work with the IRS to enforce the nation's tax laws,” said U.S. Attorney Bogden. “We will do this fully, fairly, and consistently, through both criminal and civil litigation, in order to promote voluntary compliance with the tax laws and to maintain public confidence in the integrity of the tax system.”
According to the guilty plea agreement and court records, IRS Criminal Investigation began investigating Varagiannis in 2012 as a result of him conducting unusual banking activities. At that time, Varagiannis was the owner of Midnight Entertainers, an adult escort service in Las Vegas. The investigation revealed that Varagiannis was structuring deposits into two financial institution accounts in order to avoid reporting the money to the IRS. Specifically, between Jan. 6, 2009, and Aug. 16, 2012, Varagiannis made 182 deposits totaling approximately $1.5 million. Further investigation revealed that Varagiannis and his wife used the funds from the two accounts to purchase two separate homes for cash. Further investigation also revealed that Varagiannis failed to declare federal taxes he owed for the years 2009 through 2011, totaling $230,651, and that he willfully took affirmative steps to evade or defeat payment of the taxes, including conducting transactions to avoid financial institution reporting requirements to the IRS.
The case was investigated by IRS Criminal Investigation and the Las Vegas Metropolitan Police Department, and prosecuted by Assistant U.S. Attorney Cristina D. Silva.Kentucky Woman Sentenced for Production of Child PornographyRead the Press Release
NORFOLK, Va. – Rebecca Mae Gibbs, age 24, of Lewisport, KY, was sentenced today to 17 ½ years in prison, followed by a life term of supervised release for production of child pornography.
Dana J. Boente, United States Attorney for the Eastern District of Virginia and Susan E. Triesch,Special Agent-in-Charge of the Naval Criminal Investigative Service Norfolk Field Office, made the announcement after sentencing by United States District Judge Mark S. Davis.
Gibbs pled guilty to the charge on September 30, 2014. According to court documents, Gibbs’s co-defendant, Douglas Lawrence True, 23, of Clarksville, Indiana, asked her to produce images and videos of child pornography, and facilitate visits wherein True could sexually abuse the minor victim, who had not reached one year of age. Gibbs performed a sexual act on the victim, recorded it on video, and sent it via cellular phone to True, located in the Eastern District of Virginia. True pled guilty to receipt of child pornography on November 10, 2014 and is scheduled to be sentenced on February 20, 2015. True is facing a maximum of 20 years in prison.
This case was investigated by the Naval Criminal Investigative Service, with the assistance of the Kentucky State Police. Assistant United States Attorney Joseph Kosky is prosecuting the case on behalf of the United States.A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:14-cr-97.
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Kankakee Man Sentenced to More Than 22 Yearsin Prison for Armed Robbery of Credit UnionRead the Press Release
Springfield, Ill. – Today, U.S. District Judge Sue E. Myerscough sentenced Brandon J. Thomas, 34, of Kankakee, Ill., to prison for the August 2012 armed robbery of the SDC Employees Credit Union in Kankakee. Thomas was ordered to serve a total of 272 months (22 years, eight months) in the federal Bureau of Prisons. Thomas has remained in law enforcement custody since his arrest in August 2012.
Thomas pled guilty on Sept. 2, 2014, to one count each of armed bank robbery, felon in possession of a firearm, and brandishing a firearm during a crime of violence for the August 13, 2012 robbery of the SDC Employees Credit Union. According to court documents, Thomas entered the credit union, located at 296 West Jeffery Street, at approximately 12:17 p.m., pointed a chrome revolver at employees and demanded money. After employees placed money into the bag held by Thomas, he fled on foot. A short time later, law enforcement officers arrested Thomas at a residence approximately two blocks north of the credit union.
Thomas was ordered to serve 15 years and 8 months for the armed bank robbery, plus a consecutive seven-year sentence for brandishing a firearm during a crime of violence.
The Kankakee Area Project Safe Neighborhoods Task Force, which includes the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Kankakee Police Department, conducted the case investigation. The FBI also provided assistance in the investigation. Assistant U.S. Attorney Elly M. Peirson prosecuted the case.\Heroin Trafficker Sentenced to 36 Months in Federal PrisonRead the Press Release
PROVIDENCE, R.I. – Pedro Mercado, 32, of Providence, was sentenced today to 36 months in federal prison for possession of heroin with the intent to distribute. Mercado was arrested by Providence Police in February 2014, during an on-going investigation into heroin trafficking in the City of Providence.
At sentencing, U.S. District Court Chief Judge William E. Smith also ordered Mercado to serve 4 years supervised release upon completion of his prison term. Mercado pleaded guilty on May 23, 2014, to possession of heroin with the intent to distribute.
Mercado’s sentence is announced by United States Attorney Peter F. Neronha and Providence Police Chief Colonel Hugh T. Clements, Jr.
According to court documents and information presented to the court, in January and February 2014, Providence Police detectives developed information regarding the drug trafficking activities of Mercado during an investigation into the distribution of heroin in the City of Providence. The investigation included several controlled purchases of heroin from the defendant.
On February 27, 2014, law enforcement executed court authorized search warrants for the defendant’s residence and two vehicles with ties to Mercado. In total, law enforcement seized 154 grams of heroin, $9,660 in cash, assorted items used in the packaging and distribution of heroin, and two firearms.
Receipts seized by law enforcement indicated that the firearms were legally purchased by the defendant.
The case was prosecuted by Assistant U.S. Attorney Pamela E. Chin.
Providence Police were assisted by the Rhode Island DEA Drug Task Force and the Bureau of Alcohol, Tobacco, Firearms and Explosives.###
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Contact: 401-709-5357
[email protected]Government Intervenes in Lawsuit Against Florida Cardiologist Alleging Unnecessary Peripheral Artery Interventions and Payment of KickbacksRead the Press Release
The government has intervened in two lawsuits against a Florida cardiologist, Dr. Asad Qamar, and his physician group, the Institute for Cardiovascular Excellence PLLC (ICE), alleging that Qamar and ICE billed Medicare for medically unnecessary peripheral artery interventions and paid kickbacks to patients by waiving Medicare copayments irrespective of financial hardship, the Justice Department announced today.
“Performing medically unnecessary procedures puts patients at risk and contributes to the soaring costs of health care,” said Acting Assistant Attorney General Joyce R. Branda for the Justice Department’s Civil Division. “Today’s action evidences the Department of Justice’s efforts both to safeguard federal health care program beneficiaries and to protect public funds.”
The lawsuits allege that Qamar and ICE performed excessive and medically unnecessary peripheral artery interventional services and affiliated procedures on Medicare patients. One of the lawsuits further alleges that Qamar induced patients to undergo those unnecessary procedures by routinely waiving the 20 percent Medicare copayment, regardless of the patients’ financial need.
“Physicians should make medical decisions on the basis of their patients’ needs,” said U.S. Attorney A. Lee Bentley III for the Middle District of Florida. “Performing medically unnecessary procedures solely to line a physician’s pockets strains our nation’s health care system, and can also jeopardize the health and safety of patients. Fighting Medicare and other health care fraud is one of our office’s most important priorities.”
The lawsuits were filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private parties to sue on behalf of the government when they discover evidence that defendants have submitted false claims for government funds and to receive a share of any recovery. The False Claims Act also permits the government to intervene in such lawsuits, as it has done in these cases. The cases are captioned United States ex rel. Doe v. Institute of Cardiovasular Excellence, PLLC, ICE Holdings, PLLC, Dr. Asad Qamar, & Dr. Humera Qamar, Case No. 5:11-CV-406-OC-KRS (M.D. Fla.) and United States ex rel. Taylor & the State of Florida v. Institute of Cardiovascular Excellence & Dr. Asad Qamar, Case No. 8:14-CV-1454-T-35-EAS (M.D. Fla.)
“Physicians who try to enrich themselves and their practices by performing medically unnecessary, invasive procedures can cause patients very serious health issues, waste millions in taxpayer dollars each year, and undercut the public’s trust in the medical profession,” said Special Agent in Charge Derrick L. Jackson of the U.S. Department of Health and Human Services-Office of Inspector General (HHS-OIG). “We will continue to work with our law enforcement partners to protect beneficiaries and hold health care providers accountable for such outrageous fraud schemes.”
This matter illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $23.3 billion through False Claims Act cases, with more than $14.9 billion of that amount recovered in cases involving fraud against federal health care programs.
The investigation was conducted by HHS-OIG, the Civil Division’s Commercial Litigation Branch and the U.S. Attorney’s Office for the Middle District of Florida. The claims asserted by the government are allegations only and there has been no determination of liability.