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22 December 2014
Tennessee Federal Court Bars Owners of Memphis-Area Tax Return Preparation Stores from Preparing Returns for OthersRead the Press Release
A federal court in Memphis, Tennessee, permanently barred three individuals from preparing tax returns for others and owning or operating a tax return preparation business, the Justice Department announced today.
The civil injunction order, to which the defendants Shandon Allen, Tabitha Tunstall, and Shewanda Hamilton agreed, was signed by U.S. District Judge S. Thomas Anderson of the U.S. District Court for the Western District of Tennessee.
The United States brought the civil injunction suit in October 2014, alleging that the defendants and their employees prepare fraudulent tax returns that cause their customers to incorrectly report their federal tax liabilities and underpay their taxes. According to the complaint, the defendants and their employees prepare federal tax returns on which they falsely claim the Earned Income Tax Credit, improper filing status, and bogus education credits. Additionally, the defendants and their employees allegedly improperly prepare tax returns using paystubs rather than W-2 forms, fabricate bogus W-2 forms and file tax returns without some customers’ consent while charging deceptive and unconscionable fees, according to the suit.
The complaint alleged that the defendants were former managers of Mo’ Money Taxes, but began doing business as Southern King Taxes in 2012. The United States previously obtained an injunction permanently barring the owners of Mo’ Money Taxes, Markey Granberry and Derrick Robinson, as well as a former Mo’ Money manager, Eumora Reese, from preparing tax returns for others and owning or operating a tax return preparation business. The complaint alleged that Allen, Tunstall, and Hamilton continue to prepare tax returns in the same fraudulent manner as alleged in the complaint against the owners of Mo’ Money Taxes.
Return preparer fraud is one of the IRS’s Dirty Dozen Tax Scams for 2014. The IRS has some tips on their website for choosing a tax preparer. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Springfield Landlord Convicted of Fraud and Forgery ChargesRead the Press Release
SPRINGFIELD - A Springfield landlord was convicted in federal court today of fraud and related charged in connection with fires at two of his Springfield properties.
Wilkenson Knaggs, 43, was convicted by a jury following a five-day trial of three counts of mail fraud, two counts of negotiating checks with forged endorsements, and two counts of spending the mail fraud proceeds. U.S. District Judge Mark Mastroianni scheduled sentencing for March 20, 2015.
Following a Nov. 16, 2008 fire at 376-378 Franklin Street in Springfield, Knaggs submitted a fraudulent contract for rehabilitating the three-family house in order to obtain a payout on his homeowner’s policy. He also forged the endorsement of the City of Springfield on a second check, cashing the check at a Boston check cashing company, and using the proceeds to buy a two-family house at 99 Central Street. In addition, Knaggs recorded the title to 99 Central Street in the name of a relative and used the relative to make a claim on the insurance policy after a March 7, 2010, fire at the Central Street property.
The charging statutes provide for a sentence of no more than 20 years in prison, three years of supervised release and a $250,000 fine on each mail fraud count with lower maximum sentences on the other charges. Actual sentences for federal crimes are typically less than the statutory maximum penalties. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; Shelley Binkowski , Postal Inspector in Charge, United States Postal Inspection Service; and Vincent Lisi, Special Agent in Charge of the Federal Bureau of Investigation’s Boston Field Division made the announcement today. The case is being prosecuted by Assistant U.S. Attorneys Karen Goodwin and Deepika Shukla of Ortiz’s Springfield Branch Office.
South Jersey Man Sentenced to Six Hours in Jail for Shooting Four Species of Protected Hawks in his Residential NeighborhoodRead the Press Release
NEWARK, N.J. - A Somers Point, New Jersey, man was sentenced today to six hours in jail for killing, or attempting to kill, four different species of hawks protected by federal law, U.S. Attorney Paul J. Fishman announced.
Robert Losasso, 70, previously pleaded guilty before U.S. Magistrate Judge Steven C. Mannion to six counts of violating the Migratory Bird Treaty act for shooting the birds from his home. Judge Mannion imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Losasso admitted that he fatally shot or attempted to shoot red-tailed, sharp-shinned, red-shouldered and Cooper’s hawks on several occasions. These species are among the tens of thousands of birds of prey that migrate every year from Canada along the Atlantic Flyway through New Jersey. Losasso also admitted that he didn’t have any permit to shoot the birds.
The Migratory Bird Treaty Act is a statute that was enacted in 1918 and implements in the United States protections afforded migratory birds under several international conventions to which the United States is a party. Breeding populations of red-shouldered hawks are listed as endangered on the State of New Jersey’s Endangered and Threatened Wildlife list. Sharp-shinned hawks and populations of Cooper’s hawks also have special protections under New Jersey state law.
In addition to the incarceration, which will be served Jan. 5, 2015, Judge Mannion sentenced Losasso to 18 months of supervised release, during which time he may not possess any firearms. He must also pay a total of $4,350 in restitution to four wildlife rehabilitation facilities and perform 60 hours of community service at a wildlife facility.
In his plea agreement, Losasso must also pay more than $4,000 in restitution to the wildlife rehabilitation centers that incurred losses treating or euthanizing hawks injured as a result of his conduct.
U.S. Attorney Fishman credited special agents of U.S. Fish and Wildlife Service, Office of Law Enforcement, under the direction of Resident Agent in Charge Carmine Sabia, with the investigation leading to today’s sentencing. He also thanked the N.J. Division of Fish and Wildlife, Bureau of Law Enforcement, and the Somers Point Police Department for their roles in the case.
The government is represented by Assistant U.S. Attorney Kathleen P. O’Leary of the U.S. Attorney's Office Health Care and Government Fraud Unit in Newark.
14-457
Defense counsel: Linda Foster Esq., Assistant Federal Public Defender, NewarkScranton Woman Sentenced to Five Years Imprisonment for Trafficking HeroinRead the Press Release
The United States Attorney's Office for the Middle District of Pennsylvania announced that Siquana Wallace, age 39, Scranton, was sentenced on December 18, 2014 in federal court in Scranton on a charge of trafficking in excess of 100 grams of heroin.
United States District Court Judge Robert D. Mariani sentenced Wallace to 60 months imprisonment followed by eight years of supervised release. Wallace was charged in an indictment filed on October 16, 2012. She pleaded guilty on May 29, 2013 to conspiring to distribute in excess of 100 grams of heroin, a Schedule I controlled substance, from September 2011 through May 2012.
This case was part of an investigation of a conspiracy to distribute heroin between New York and Scranton and Wilkes-Barre by the Drug Enforcement Agency, the Lackawanna County District Attorney’s Office – Detective Division, the Pennsylvania State Police, as well as both the Scranton and Wilkes-Barre Police Departments. Assistant United States Attorney Michelle Olshefski prosecuted the case.
Retired Myrtle Beach Fireman Sentenced as a Sex OffenderRead the Press Release
Contact Person: Bill Watkins (864) 282-2100
Columbia, South Carolina ----United States Attorney Bill Nettles stated that Webster Douglas Williams, III, age 56, of Myrtle Beach, South Carolina was sentenced in federal court in Florence, South Carolina, for Sexual Exploitation of a Minor, a violation of 18 U.S.C. § 2251(a) and (e), Travel With Intent to Engage in Illicit Sexual Conduct, a violation of 18 U.S.C. § 2423(b), and Possession of Child Pornography, a violation of 18 U.S.C. § 2252A(a)(5)(B). United States District Judge R. Bryan Harwell of Florence sentenced Williams to 327 months imprisonment to be followed by Supervised Release for life during which Williams is required to register as a Sex Offender, attend Sexual Offender Treatment and submit to polygraph examinations. Williams was also ordered to pay restitution of $487,350.00 to his victims.
Evidence presented at the change of plea hearing established that Williams was employed by the Myrtle Beach Fire Department before he retired. Williams produced child pornography for six years by filming his activities with the children he was molesting. He also took children to Florida in 2009 and engaged in sexual activities with one of the children. When Williams’ house was searched by the Horry County Police Department in November 2011 more than 1 million images of child pornography were found in the form of pictures and videos on computers and elsewhere. Hidden cameras, computers, and other material used by Williams in producing and collecting the child pornography were also found and seized.
The case was investigated by agents of the Horry County Police Department and the Federal Bureau of Investigation. Assistant United States Attorney William E. Day II of the Columbia office prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information, please visit www.projectsafechildhood.gov.Porcupine Man Sentenced for Voluntary ManslaughterRead the Press Release
United States Attorney Brendan V. Johnson announced that a Porcupine, South Dakota, man convicted of Voluntary Manslaughter was sentenced on December 17, 2014, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Lawrence Red Shirt, age 28, was sentenced to 72 months in custody, 5 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
The conviction stems from Red Shirt using a sharp object to stab his father at least four times in the upper left arm and shoulder area at Rockyford, South Dakota, on November 8, 2013. The stab wounds inflicted on the victim were fatal.
This case was investigated by the Bureau of Indian Affairs, Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Kathryn N. Rich prosecuted the case.
Red Shirt was immediately turned over to the custody of the U.S. Marshals Service.
Pennsylvania Realtor Sentenced for Defrauding ClientsRead the Press Release
PHILADELPHIA - Joseph N. Reilly, 69, of Philadelphia, PA, was sentenced today to 26 months in prison for with mail fraud in connection with a million dollar fraud scheme. According to the information, Reilly, who owned Joseph N. Reilly Real Estate, Inc., diverted more than $1 million in client funds to himself, between January 2009 and April 2011, defrauding approximately 50 clients. He pleaded guilty on May 29, 2014.
Reilly, through his company, acted as a property manager for his clients, collecting rent and utilities payments for owners. He also paid utility and real estate tax bills. Reilly mailed monthly statements to tenants and property owners. Reilly sent at least one statement to a property owner indicating that the balance in the owner’s account was $490,565.58 when, in fact, the balance was $86.80.
In addition to the prison term, U.S. District Court Judge L. Felipe Restrepo ordered restitution of $668,856, two years of supervised release, and a $100 special assessment.
The case was investigated by the U.S. Postal Inspection Service and is being prosecuted by Assistant United States Attorney Judy G. Smith.
Pembroke Pines Resident Sentenced to 87 Months in Identity Theft Tax Refund Fraud SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and J. Scott Dennis, Chief, North Miami Beach Police Department, announce that Jude Estama, 42 of Pembroke Pines, Florida, was sentenced to 87 months in prison, followed by 3 years of supervised release, and was ordered to pay $759,992 in restitution.
Estama previously pled guilty to one count of wire fraud, in violation of Title 18, United States Code, Section 1343, and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A.
According to court documents, from January 2008 through August 2012, Estama engaged in an identity theft tax refund fraud scheme. In furtherance of the scheme, the defendant opened and controlled bank accounts at various banks in his own name and in the name of two corporations that listed him as president. Estama caused fraudulent individual income tax returns to be filed with the IRS using the identity information primarily of high school students and deceased persons. The defendant caused over $700,000 in refund monies to be direct deposited to the bank accounts he controlled, and he withdrew money from these refunds for his own personal use and benefit.
Mr. Ferrer commended the investigative efforts of IRS-CI. The case was prosecuted by Assistant U.S. Attorney Michael N. Berger.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Owner of Financial Services Company Sentenced to Four Years for Securities and Tax Fraud SchemesRead the Press Release
BOSTON – The former owner of a Lawrence-based financial services company was sentenced today for defrauding investors, filing false tax returns on behalf of certain clients, and filing his own false tax returns.
Robert Burton, 37, the former Managing Director of Pinnacle Financial Consulting LLC, Pinnacle Strategic Investments LLC, and the Pinnacle Asset and Capital Management Group LLC, was sentenced by U.S. District Court Senior Judge Mark L. Wolf to four years in prison, three years of supervised release, and ordered to pay $159,500 in restitution to the fraud victims, as well as $271,640 to the Internal Revenue Service. In August 2014, he pleaded guilty to three counts of securities fraud, two counts of procuring false tax returns, and three counts of subscribing false tax returns.
Burton acted as an investment advisor to at least some of his clients and promised to invest their money in various securities, including stocks, mutual funds, and in a debt portfolio allegedly managed by Pinnacle. In some instances, he promised to return the principal invested within approximately 30 days, along with an interest payment equal to 100% of the amount invested. Burton did not invest the money as promised, did not make the promised payments and, in some instances, provided investors with checks that ultimately bounced.
Through Pinnacle, Burton also provided tax preparation services and, in at least two instances, prepared, and filed, false tax returns on behalf of his clients. Finally, although Burton derived substantial income through the operation of Pinnacle, he failed to identify that income on his own tax returns and admitted to filing false tax returns for the 2008 through 2011 tax years.
United States Attorney Carmen M. Ortiz; Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and William P. Offord, Special Agent in Charge of the U.S. Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. The Massachusetts Attorney General’s Office, which has a civil case pending against Burton, cooperated with the investigation. The case was prosecuted by Assistant U.S. Attorney Sarah E. Walters, Chief of Ortiz’s Economic Crimes Unit.###
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
Organizer of $9 Million Health Care Scam Set for Arraignment TodayRead the Press Release
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USDOJ: US Attorney's Office - CENTRAL DISTRICT OF CALIFORNIA - 165Covina Hospice Sought Millions for ‘Treating’ Patients who were not Terminally Ill
LOS ANGELES – A Placentia woman already serving a prison sentence for defrauding Medi-Cal is expected to be arraigned this afternoon on new federal charges related to her operation of a hospice that submitted millions of dollars in fraudulent bills to Medicare and Medi-Cal for purportedly providing end-of-life care to patients who were, in fact, not dying.
Priscilla Villabroza, 68, has been transferred from a federal prison in Victorville and is expected to be arraigned on a 25-count indictment this afternoon in United States District Court in Los Angeles.
Villabroza is one of six defendants charged in relation to the scheme allegedly run out of the Covina-based California Hospice Care, which Villabroza purchased in late 2007 while under investigation in the earlier case that later sent her to prison for 4½ years.
Between March 2009 and June 2013, California Hospice submitted nearly $9 million in fraudulent bills to Medicare and Medi-Cal for hospice-related services, and the public health programs paid nearly $7.5 million.
According to the indictment, the fraud at California Hospice involved Villabroza and her daughter paying patient recruiters known as “marketers” or “cappers” to bring in Medicare and Medi-Cal beneficiaries. As part of the scheme, registered nurses at the facility performed “assessments” to determine whether the beneficiary was terminally ill and, regardless of the outcome, two doctors at the hospice certified that the beneficiary was terminally ill – even though the vast majority of them were not dying. Personnel at California Hospice allegedly altered medical records in response to Medicare audits to make the beneficiaries appear sicker. In the end, Medicare and Medi-Cal paid millions of dollars for medically unnecessary hospice-related services.
On December 17, the other five defendants were taken into custody and were arraigned on the indictment. They are:
Villabroza’s daughter, Sharon Patrow, 43, of Placentia, who appeared to own California Hospice and who operated the facility with her mother;
Dr. Sri Wijegoonaratna, 60, of Anaheim Hills, a physician who worked at the hospice and allegedly recruited patients;
Dr. Boyoa Huang, 41, of Pasadena, another doctor at California Hospice;
Nancy Briones, 74, of Mira Loma, a registered nurse who also allegedly recruited patients to be “treated” at California Hospice; and
Roseilyn Montana, 52, of San Bernardino, who recruited patients.
All five of the defendants arraigned last week pleaded not guilty, were released on bond and were ordered to stand trial before United States District Judge S. James Otero on February 10.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty.
All six defendants are charged in 13 counts of health care fraud, an offense that carries a statutory maximum sentence of 10 years in prison for each count.
Villabroza and Patrow are each charged with 12 counts of money laundering, each one of which carries a potential sentence of 20 years in prison.
Villabroza is currently in federal prison serving a 54-month term after being convicted of running a health care fraud scheme involving unlicensed nurses (see: http://www.justice.gov/usao/cac/Pressroom/pr2009/082.html).
The investigation into California Hospice was conducted by the United States Department of Health and Human Services, Office of Inspector General, the Federal Bureau of Investigation, the California Bureau of Medi-Cal Fraud & Elder Abuse, and IRS – Criminal Investigation.
Release No. 14-165
Omaha Man Sentenced to Ten Years for Child PornographyRead the Press Release
United States Attorney Deborah R. Gilg announced that on December 19, 2014, United States District Court Judge Joseph F. Bataillon sentenced Mark A. Swift of Omaha, Nebraska, to ten years of imprisonment. There is no parole in the federal prison system. After his release from prison Swift will begin a 10 year term of supervised release.
On March 7, 2014 members of the Douglas County Sheriff’s Office and the FBI Cyber Crimes Task Force served a search warrant looking for child pornography at Swift’s residence in South Omaha. Swift was in possession of seventy-five (75) videos of children, many prepubescent, engaged in sexually explicit conduct. Swift, a registered sex offender, was previously convicted in Florida for Lascivious Battery of a Child Over 12 years of age.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Old Forge Pharmacist Sentenced to 15 Months Imprisonment in Health Care Fraud CaseRead the Press Release
The United States Attorney's Office for the Middle District of Pennsylvania announced that an Old Forge pharmacist who previously plead guilty to health care fraud was sentenced on December 18, 2014 in federal court in Scranton.
United States District Court Judge Malachy E. Mannion sentenced Peter J. Capitano, age 58, to 15 months imprisonment followed by a 3-year term of supervised release. Capitano was also ordered to pay restitution in the amount of $166,287.03 to Blue Cross of Northeastern Pennsylvania and Medicaid.
According to United States Attorney Peter J. Smith, a criminal information was filed in January 2014 charging Capitano with engaging in a scheme to defraud Blue Cross of Northeastern Pennsylvania and Medicaid from 2007 through August 2013. The scheme involved submitting claims or causing claims to be submitted to those health benefit providers for drugs allegedly prescribed when the prescriptions did not exist and for drugs not actually dispensed.
The charges stemmed from an investigation initiated in February of 2011 by the Federal Bureau of Investigation and the Department of Health and Human Services, Office of Inspector General.
Assistant United States Attorney Michelle Olshefski prosecuted the case.
Oglala Sioux Tribal Advocate Found Guilty of Conspiracy and Possession with Intent to Distribute CocaineRead the Press Release
United States Attorney Brendan V. Johnson announced that Susan Schrader, age 53, of Pine Ridge, South Dakota, was found guilty of Conspiracy to Distribute and Possession with Intent to Distribute a Controlled Substance following a federal jury trial in Rapid City, South Dakota. The jury returned their verdict on December 18, 2014.
The charge carries a maximum penalty of up to 20 years in custody and/or a $1,000,000 fine, at least 3 years up to life of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
For close to 15 years, Schrader made her living as a leading tribal advocate working in the Oglala Sioux Tribe court system. Schrader was charged with conspiracy and possession with intent to distribute cocaine, primarily on the Pine Ridge Reservation, beginning as early as 2005 and continuing up to May 20, 2014, the date of her Indictment. In addition to evidence showing she was a virtual clearinghouse for the distribution of cocaine in Pine Ridge Village, there was testimony from several witnesses that Schrader would on occasion accept cocaine as payment for her advocacy services.
This case was investigated by the Northern Plains Safe Trails Drug Enforcement Task Force, the Federal Bureau of Investigation, the Bureau of Indian Affairs Office of Justice Services, the South Dakota Division of Criminal Investigation, and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Ted L. McBride prosecuted the case.
A presentence investigation was ordered and a sentencing date was set for March 20, 2015. The defendant was remanded to the custody of the U.S. Marshals Service.
Norcross Clinic Owner Sentenced for Healthcare FraudRead the Press Release
ATLANTA - Shinkweon Park has been sentenced for conspiring to commit healthcare fraud by submitting false claims for doctor visits, acupuncture, and physical therapy to Medicare and Blue Cross Blue Shield.
“Park cheated our healthcare system by filing over $2 million in fraudulent claims, diverting precious healthcare resources,” said United States Attorney Sally Quillian Yates. “He is now being held accountable for his crimes.”
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “This case not only provides an example of the problems facing the health care industry by those who engage in such extensive schemes to defraud that industry, but also the government’s efforts to eradicate the fraud that is putting such a strain on this industry. The FBI continues to work with its corporate healthcare partners such as Blue Cross Blue Shield, as well as its law enforcement partners, including the U.S. Health and Human Services Office of Inspector General, in stemming the tide on such damaging healthcare fraud cases that divert programs and services away from those who truly need them.”
“Shin Park used his position to take advantage of the Medicare program by submitting fraudulent claims for services he never rendered for hundreds of Medicare beneficiaries who placed their trust in him to do the right thing,” said Special Agent in Charge Derrick L. Jackson of the U.S. Department of Health and Human Services, Office of Inspector General, Atlanta Regional Office. “Today’s sentence demonstrates that HHS OIG is committed to combatting fraud and protecting America’s most vulnerable citizens, and shows how quickly justice can be achieved when we work closely with our fellow federal law enforcement partners and civilian counterparts.”
According to United States Attorney Yates, the charges and other information presented in court: From November 2009 through May 2012, Park owned and operated the LOMA Clinic in Norcross, Ga. Beginning in April 2010, the clinic began submitting false claims to Medicare in three ways. First, Park, a licensed acupuncturist, submitted claims for acupuncture treatments, which were not reimbursable by Medicare under any circumstances. Second, LOMA billed for massage and physical therapy services that were not performed by licensed physical therapists or physical therapy assistants, as required by Medicare. Third, LOMA billed Medicare for office visits purportedly performed by a medical doctor. In fact, the doctor hired by LOMA to serve as medical director of the clinic never examined or treated patients. However, all of LOMA’s claims were submitted using his unique provider code. Similar false claims were made to Blue Cross Blue Shield.
Over two years, LOMA submitted over $1.6 million in false claims to Medicare, along with an additional $475,000 in false BCBS claims. Based upon the claims, Medicare paid LOMA over $969,000, and LOMA received over $210,000 from BCBS.
Park, 43, of Suwanee, Ga., was sentenced by United States District Judge Thomas W. Thrash, Jr., to two years, nine months in prison, to be followed by three years of supervised release, and ordered to pay restitution in the amount of $1,190,166.31. Park was convicted on these charges on January 6, 2014, after he pleaded guilty to one count of conspiracy to commit healthcare fraud.
This case was investigated by the Federal Bureau of Investigation and the United States Department of Health and Human Services, Office of the Inspector General.
Assistant United States Attorney Shanya J. Dingle 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/.
Muskogee Man Pleads Guilty to Firearm PossessionRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that HANK JOSHUA BELL, age 34, of Muskogee, Oklahoma, pled guilty to Felon in Possession of a Firearm, in violation of Title 18, United States Code, Section 922(g)(1).
Charges arose from an investigation by the Muskogee Police Department and the Federal Bureau of Investigation. The defendant was indicted in November, 2014.
The Indictment alleged that on or about October 8, 2014, within the Eastern District of Oklahoma, the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, firearms, which had been shipped and transported in interstate commerce.
The Honorable Steven P. Shreder, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the guilty plea and ordered the completion of a presentence report. Sentencing will be scheduled following its completion. The defendant will remain in the custody of the United States Marshal Service pending sentencing.
The statutory range of punishment is not more than 10 years imprisonment and/or up to a $250,000 fine.
Assistant United States Attorney Kyle Waters represented the United States.
Morris County, New Jersey, Man Sentenced to 141 Months for Armed Bank RobberyRead the Press Release
NEWARK, N.J. – A Randolph, New Jersey, man was sentenced to 141 months in prison for robbing a bank at gunpoint, U.S. Attorney Paul J. Fishman announced today.
Rahman Fulton, 35, was previously convicted by a federal jury of one count of bank robbery and one count of using a firearm in furtherance of the bank robbery. Fulton was convicted after a two-week trial before U.S. District Judge Stanley R. Chester, who imposed the sentence today in Newark federal court.
According to documents filed in this case and the evidence at trial:
Fulton was charged with robbing the PNC bank in Randolph May 25, 2012. Fulton entered the bank wearing a black cloth mask covering his head and face and holding a handgun. He demanded and received money from a bank teller. The bank teller slipped a GPS tracking device into the money she handed over to Fulton. The GPS data placed the tracking device in Fulton’s bedroom minutes after the robbery. He later lied to the police about his whereabouts during the robbery and made other incriminating statements to his girlfriend and girlfriend’s sister, including a call just 10 minutes after the robbery to someone that worked across the street from the bank asking them if they had heard about the robbery.
In addition to the prison term, Judge Chester sentenced Fulton to serve three years of supervised release.
U.S. Attorney Paul J. Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford, with the investigation leading to the charge. He also thanked the Randolph Township Police Department and Morris County Prosecutor’s Office for their contributions to the case.
The government is represented by Assistant U.S. Attorneys Daniel V. Shapiro and Elizabeth Harris of the U.S. Attorney's Office General Crimes Unit in Newark.14-456
Defense counsel: Carol Gillen Esq. and K. Anthony Thomas Esq., Assistant Federal Public Defenders, NewarkMan Sentenced to 63 Months in Prison for Possessing Cocaine with Intent to DistributeRead the Press Release
St. Croix, USVI – On Friday December 19, 2014, Chief District Court Judge Wilma A. Lewis sentenced Miguel Angel Pascual-Pichardo, 37, to 63 months in prison for possession of cocaine with intent to distribute, United States Attorney Ronald W. Sharpe announced today. Chief Judge Lewis also sentenced Pascual-Pichardo to serve four years of supervised release and pay a $100 special assessment.
Court records show that on January 9, 2014, police lawfully searched the vehicle that Pascual-Pichardo was driving and found several duffle bags containing 228 kilos of cocaine. On January 27, 2014, Pascual-Pichardo pleaded guilty. At the conclusion of Friday’s sentencing hearing, he was remanded to the custody of the U.S. Marshals Service.
The case was investigated by U.S. Immigration and Customs Enforcement's Homeland Security Investigations with assistance from the U.S. Drug Enforcement Administration and the Virgin Islands Police Department. The case was prosecuted by Assistant U.S. Attorney Rhonda Williams-Henry.
Look-Out in Armed Pizza Store Robbery Sentenced to 9 Years in PrisonRead the Press Release
Greenbelt, Maryland – U.S. District Judge Deborah K. Chasanow sentenced Duane Thomas Mobley, age 40, of Upper Marlboro, Maryland, today to nine years in prison, followed by three years of supervised release, for conspiring to rob a business and brandishing a firearm during a crime of violence, in connection with the May 22, 2013 armed robbery of a pizza restaurant.The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Chief Mark A. Magaw of the Prince George’s County Police Department; and Prince George’s County State’s Attorney Angela D. Alsobrooks.
According to Mobley’s plea agreement, he conspired with Keith Dana Steedley, Jr. to rob a pizza restaurant in Largo, Maryland. Steedley went into the restaurant brandishing a shotgun, while Mobley stayed by the front door. Steedley pointed the shotgun at several employees and demanded money. Steedley took five dollars from a store employee and the cash register money drawer, which contained $90. Steedley and Mobley got into a vehicle and fled. Witnesses called 911 and provided a description of the getaway vehicle.
While responding to the 911 calls, a Prince George’s County Police Department (PGPD) officer saw a vehicle matching the description of the getaway car a few blocks from the restaurant. The officer saw the vehicle turn onto a dead end street and followed. As the officer turned into the street, he saw Steedley bail out of the passenger side of the vehicle and run into a wooded area. A K-9 search was conducted and Steedley was found hiding in the woods. A search of the area recovered forty-eight one dollar bills. Victims brought to the scene identified Steedley as the person who robbed them. A subsequent search of the vehicle recovered the shotgun used in the robbery, a starter’s pistol on the passenger floorboard, a money drawer from a cash register, and cash and receipts from the pizza restaurant. The vehicle was registered to Mobley.
The next morning a woman called 911 when she saw a man coming down the street shouting for help. The woman stated that the man – later identified as Mobley – was “taped up.” In an interview with PGPD officers, Mobley falsely claimed that he had been carjacked and kidnapped the night before and gave a written statement to police recounting his purported kidnapping. During the investigation of Mobley’s kidnapping, PGPD officers realized that Mobley was the registered owner of the vehicle used in the pizza restaurant robbery. After being questioned by police, Mobley admitted that he had been involved in the robbery and that his claim of being carjacked and kidnapped was false.
Telephone records also show several calls between Mobley and Steedley shortly before the robbery.
Keith Dana Steedley, Jr., age 29, of Germantown, Maryland, pleaded guilty to his role in the conspiracy and was sentenced to 11 years in prison.
United States Attorney Rod J. Rosenstein commended the ATF, Prince George’s County Police Department and Prince George’s County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Thomas M. Sullivan, who prosecuted the case.
Lanham PCP Dealer Sentenced to over 7 Years in PrisonRead the Press Release
Greenbelt, Maryland – U.S. District Judge Roger W. Titus sentenced David Chittams, age 34, of Lanham, Maryland, today to 92 months in prison, followed by four years of supervised release, for conspiracy to distribute and possess with intent to distribute phencyclidine (PCP).
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; and Chief Mark A. Magaw of the Prince George’s County Police Department.
According to Chittams’ plea agreement, between December 2012 and January 2013, Chittams conspired with Richard Brown and others to distribute PCP. Specifically, on three occasions between December 18, 2012 and January 16, 2013, Chittams was with Richard Brown when Brown distributed approximately 345 grams (over 12 ounces) of PCP to a cooperating witness, meeting the witness at the Capitol Heights Metro station to conduct the transactions.On January 31, 2013, after observing Chittams entering the residence through the carport, agents executed a search warrant Chittams’ residence. During the search, law enforcement seized a plastic Gatorade bottle containing approximately 502 grams of PCP, starter fluid (which is commonly used as a PCP cutting agent), and a large box of empty bottles frequently utilized for PCP distribution, all of which were found in a shed in the carport. Chittams was arrested.
At least a portion of the PCP that Richard Brown distributed to the cooperating witness was supplied by Chittams. Based on his involvement in the conspiracy, Chittams was responsible for the distribution of between one and three kilograms of PCP.
Richard Brown, age 29, of Lanham, Maryland, pleaded guilty to his role in the conspiracy and was sentenced to 10 years in prison.
United States Attorney Rod J. Rosenstein praised the DEA, ATF and Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Adam K. Ake and Arun G. Rao, who prosecuted the case.
Justice Department Settles Immigration-Related Discrimination Claim Against Diversified Business Consulting Group, Inc.Read the Press Release
The Justice Department reached an agreement today with Diversified Business Consulting Group Inc., an information technology staffing agency headquartered in Silver Spring, Maryland. The settlement resolves the department’s claims that Diversified discriminated against work-authorized non-U.S. citizens in violation of the Immigration and Nationality Act (INA).
The department’s investigation concluded that Diversified’s human resources personnel required non-U.S. citizens, but not U.S. citizens, to present specific types of documents during the employment eligibility verification process to establish their work authority. The INA’s anti-discrimination provision prohibits employers from specifying documents that employees must present during the employment eligibility verification process based on an employee’s citizenship status or national origin.
Under the settlement agreement, Diversified will pay $7,700 in civil penalties to the United States and undergo department-provided training on the anti-discrimination provision of the INA. Diversified’s corporate office and its branches will be subject to departmental monitoring and reporting requirements.
“The Civil Rights Division is committed to protecting work-authorized individuals from discriminatory practices in the employment eligibility verification process,” said Acting Assistant Attorney General Vanita Gupta for the Civil Rights Division. “We commend Diversified for working cooperatively with the division to resolve this matter.”
The Office of Special Counsel for Immigration-Related Unfair Employment Practices (OSC) is responsible for enforcing the anti-discrimination provision of the INA. The statute prohibits, among other things, citizenship status and national origin discrimination in hiring, firing, or recruitment or referral for a fee; document abuse; retaliation; and intimidation.
For more information about protections against employment discrimination under immigration laws, call OSC’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call OSC’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a free webinar at www.justice.gov/crt/about/osc/webinars.php, email [email protected]; or visit OSC’s website at www.justice.gov/crt/about/osc.
Applicants or employees who believe they were subjected to: different documentary requirements based on their citizenship status, immigration status, or national origin; or discrimination based on their citizenship status, immigration status or national origin in hiring, firing, or recruitment or referral, should contact OSC’s worker hotline for assistance.
Jersey County Man Sentenced for $1.2 Million Dollar Tax Evasion and Unlawful Firearms PossessionRead the Press Release
Follow @SDILNewsA Jersey County resident was sentenced to federal prison for tax evasion and possession of a firearm by a user of controlled substances on December 19, 2014, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. David Ray, 55, of Fieldon, Illinois, was sentenced to 37 months in federal prison, a $7,500 fine, $1,272,904.83 in restitution, a $200 special assessment and three years of supervised release. Ray also forfeited a gun collection valued between $75,000-$100,000.
“In stealing from all of us by failing to pay his fair share of taxes, Ray not only ended up forfeiting his gun collection, but he forfeited his privilege to live in his mansion for the much harsher living conditions of federal prison.” noted United States Attorney Wigginton.
Ray waived his right to face a grand jury indictment and pled guilty to charges brought directly by the US Attorney’s Office on July 23, 2013. Documents filed in District Court established that Ray committed tax evasion by using his various businesses to pay personal expenses, by vesting ownership of personal assets in the name of his businesses, and by filing false tax returns with the IRS or refusing to file a US Individual Tax Return all together. In tax years 2005-2010, Ray concealed income from the IRS for the purpose of limiting his tax liability resulting in him avoiding $1,272,904.83 in federal income taxes that he otherwise would have been required to pay. Ray agreed to make full restitution to the IRS as a condition of his guilty plea.
Ray was also convicted for possessing firearms while being a cocaine user. Evidence presented at the plea hearing established that federal agents seized 96 firearms and more than 2,500 rounds of ammunition from Ray’s home when it was searched on February 13, 2012. In addition, agents also seized 110 grams of cocaine from Ray’s home. Ray admitted possessing the firearms as a hunter and gun collector. But he also acknowledged a serious cocaine habit, admitting that he purchased and used 3-5 ounces of cocaine every 2-3 weeks prior to his home being raided. Under federal law, drug users are categorically prohibited from possessing firearms.
Ray was ordered to remain in custody of the United States Marshal pending his transfer to federal prison.
The investigation was conducted by agents from the Internal Revenue Service/Criminal Investigations, the Jersey County Sheriff’s Department, the Bureau of Alcohol Tobacco, Firearms and Explosives, the Drug Enforcement Administration, and the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Steven D. Weinhoeft.
Jacksonville Man Charged in Federal Court with Receiving Child Pornography over the InternetRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces the return of an indictment charging Christopher Shawn Warnock (43, Jacksonville) with receiving child pornography over the Internet. If convicted, he faces a mandatory minimum penalty of five years, up to 20 years, in federal prison and a potential life term of supervision. Warnock was arrested on December 17, 2014, at his Jacksonville residence. He was arraigned today and ordered detained pending further proceedings.
According to the indictment, on or about December 14, 2014, Warnock knowingly received a visual depiction of a minor engaged in sexually explicit conduct over the Internet.
This case was investigated by the Federal Bureau of Investigation offices in Jacksonville and Newark, New Jersey, and the Jacksonville Sheriff’s Office. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent until, and unless, proven guilty.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.
Heroin and Methamphetamine Trafficking Enterprise Operating in Lowcountry and Upstate South Carolina Charged in Charleston, SCRead the Press Release
Contact Person: Beth Drake (803) 929-3000
Charleston, South Carolina ---- Bill Nettles, the United States Attorney for the District of South Carolina; John S. Comer, the acting Special Agent in Charge of the Atlanta Division of the Drug Enforcement Administration (“DEA”); Mark Keel, the Chief of the South Carolina Law Enforcement Division (“SLED”); and Gregory Mullen, the Chief of Police for the City of Charleston, SC announce the indictment and arrests of defendants in a drug trafficking enterprise. As specified in unsealed indictments, the defendants allegedly conspired to distribute more than 100 grams heroin and more than 500 grams of methamphetamine in South Carolina and elsewhere.
The listed defendants were arrested, arraigned or are in custody based on the indictment:
Over 6,000 grams of methamphetamine and over 350 grams of heroin were seized in the investigation. Approximately $25,000 in alleged drug proceeds were also seized. The indictment resulted from an Organized Crime Drug Enforcement Task Force investigation involving DEA Charleston Task Force, DEA Greenville Resident Office, SLED, Charleston Police Department, South Carolina Highway Patrol, Spartanburg County Sheriff’s Office, and Anderson County Sheriff’s Office.
"These arrests are the result of extensive coordination and investigation between federal, state and local law enforcement officials. Through their hard work, we have been able to remove significant quantities of drugs from the streets and apprehend a number of individuals involved in bringing those drugs into our district,” said United States Attorney Bill Nettles. The mission of DEA is unwavering--we combat drug traffickers by investigating and prosecuting those who distribute illicit drugs which causes immeasurable damage to our communities. Today's enforcement activity is a perfect example of how the law enforcement community works together to remove such criminals from the streets,” said Acting Special Agent in Charge John S. Comer of the DEA Atlanta Field Division.
The DEA Charleston Task Force is comprised of Special Agents and Task Force Officers from DEA, Berkeley County Sheriff’s Office, Charleston County Sheriff’s Office, Charleston Police Department, Dorchester County Sheriff’s Office, Hampton County Sheriff’s Office, North Charleston Police Department, Mount Pleasant Police Department, South Carolina Highway Patrol, South Carolina Law Enforcement Division, and Summerville Police Department.
Prosecution of the investigation is led by Assistant United States Attorney Nick Bianchi of the United States Attorney’s Office in Charleston, SC.
The charges contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.Fresno Man Sentenced for Possession of Stolen MailRead the Press Release
FRESNO, Calif. — United States District Judge Lawrence J. O’Neill sentenced Bee Yang, 31, of Fresno, today to 20 months in prison for unlawful possession of stolen mail, United States Attorney Benjamin B. Wagner announced.
According to court documents, on January 5, 2012, Yang was in possession of stolen mail that included stolen checks totaling approximately $36,000 from at least 250 victims. Additionally, Yang was also in possession of items used to steal mail and chemicals that could be used to erase previously written checks so that the payee and amount of a check could be rewritten.
This case was the product of an investigation by the United States Postal Inspection Service. Assistant United States Attorney Patrick R. Delahunty prosecuted the case.
Fresno Man Pleads Guilty to Possession of Child PornographyRead the Press Release
FRESNO, Calif. — Shane Paul Young, 44, of Fresno, pleaded guilty today to one count of possession of child pornography, United States Attorney Benjamin B. Wagner announced.
According to court documents, between February 2012 and October 2012, Young possessed more than 600 images of child pornography. Some of the images depicted prepubescent minors, and some were of violence or sadistic or masochistic conduct. He initially told investigators that he did not possess any child pornography, but later he conceded that he had been communicating with registered sex offenders and had saved images of child pornography on several DVDs that he had labeled “Turn in to DOJ.” He explained that he had intended to turn over the material to appropriate people at some time.
Young is scheduled to be sentenced by U.S. District Judge Lawrence J. O’Neill on March 30, 2015. Young faces 10 to 20 years in prison, a $250,000 fine, and a lifetime term of supervised release. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. Young has been in custody as a danger to the community and a flight risk since his initial federal court appearance on April 9, 2013.
This case is the product of an investigation by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Fresno County Sheriff’s Office and the Central Valley Internet Crimes Against Children Task Force. Assistant United States Attorney David Gappa is prosecuting the case.
The case is part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. Click on the “resources” tab for information about Internet safety education.
Fort Wayne, Indiana Woman Sentenced for Painkiller TraffickingRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Tara Tighe, Public Affairs SpecialistCLARKSBURG, WEST VIRGINIA – Paulette Sheree Lamb, 25, of Fort Wayne, Indiana, was sentenced today to 41 months in prison for oxycodone trafficking, United States Attorney William J. Ihlenfeld, II, announced.
An investigation by the Mon Valley Drug and Violent Crime Task Force revealed that Lamb was involved in a prescription painkiller trafficking operation. Oxycodone pills would be transported from Detroit, Michigan to Pittsburgh, Pennsylvania and then to Morgantown, West Virginia. In July 2012, Lamb was discovered traveling from Pittsburgh to Morgantown in possession of oxycodone pills. She pled guilty in August 2014 to one count of “Aiding and Abetting in the Possession with Intent to Distribute Oxycodone.”
In another matter, Ranad Jamal Straughter, 26, of Westland, Michigan, and Andrew W. Bolyard, 23, of Morgantown, West Virginia, each pled guilty today to one count of “Aiding and Abetting Possession with Intent to Distribute Oxycodone.” They each face up to 20 years in prison and a fine of up to $1,000,000.00. The defendants each further agreed to forfeit nearly $7,000.00 in U.S. currency.
Assistant U.S. Attorney Zelda Wesley prosecuted the cases on behalf of the government.
U.S. District Judge Irene M. Keeley presided in the Lamb hearing. U.S. Magistrate Judge John S. Kaull presided in the Bolyard and Straugther hearings.
Former Youth Minister Indicted on Child Pornography ChargesRead the Press Release
DALLAS — A former youth minister in Garland, Texas, was indicted by a federal grand jury in Dallas yesterday on child pornography offenses, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Derek Hutter, 37, was charged with one count of attempted production of child pornography and one count of receipt of child pornography. He was arrested on those charges and entered a plea of not guilty before U.S. Magistrate Judge Paul D. Stickney on December 18, 2014.
Hutter worked as a youth minister at the South Garland Baptist Church.
The indictment alleges that on approximately August 14, 2014, Hutter sent an email to Jane Doe #1, a minor girl, requesting she take sexually explicit photos of herself and text them to him. The indictment further alleges that on approximately September 14, 2014, Hutter received images of child pornography on his email account.
An indictment is an accusation by a federal grand jury. A defendant is entitled to the presumption of innocence unless proven guilty. If convicted, however, the statutory penalty for the attempted production count is not less than 15 or more than 30 years in federal prison and not less than five or more than 20 years on the receipt count. In addition, each count carries a maximum statutory fine of $250,000 and a lifetime of supervised release.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HIS) and the Garland Police Department investigated. Assistant U.S. Attorney Camille Sparks is in charge of the prosecution.
Former Winston County Deputy Pleads Guilty to Extorting Manufacture of MethamphetamineRead the Press Release
BIRMINGHAM -- A former Winston County sheriff's deputy pleaded guilty today in federal court to using his police authority to extort a woman to cook methamphetamine, and to causing her to manufacture and distribute the drug at the home where she lived with a minor child, announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Richard D. Schwein Jr.
GRADY KEITH CONCORD, 42, of Lynn, entered his guilty pleas before U.S. District Judge Abdul K Kallon to one count of extortion under color of official right, one count of manufacturing methamphetamine and one count of manufacturing and distributing methamphetamine on premises where children are present or reside. The U.S. Attorney's Office filed the charges against Concord in November.
"Sheriff's deputies are supposed to protect people from harm. Instead, this defendant broke the law and coerced a woman into violating the law and manufacturing methamphetamine for him in a way that put lives, including a child's, in danger," Vance said. "Most law enforcement officers serve honorably, but we will prosecute those who break the law."
"We entrust law enforcement officers with certain powers and authority, which they are expected to wield with the utmost integrity," Schwein said. "Mr. Concord's actions breached the public trust and dishonored the badge that he once carried. This case shows that abuse of that power and authority will not be tolerated."
According to his plea, Concord was a Winston County Sheriff's deputy in July 2013 when he approached a woman living in the town of Nauvoo and pressured her to manufacture methamphetamine for him. Concord used the illegal drug and arranged to supply the woman with pseudoephedrine, a necessary ingredient of methamphetamine, in exchange for a portion of the finished product.
Concord disputes the woman's claim that he threatened her with an arrest warrant unless she agreed to the arrangement, but he concedes that because he was a sheriff's deputy, she may have felt that she "had no choice but to accept his offer," he acknowledged in his plea agreement with the government.
On several occasions between July 2013 through June 2014, Concord delivered pseudoephedrine to the woman's home, where she manufactured the methamphetamine, and where he picked up the illegal drug, he acknowledged during his guilty plea today. Concord obtained decongestant pills containing pseudoephedrine from the sheriff's office evidence room, and he and his wife both bought the pills, according to his plea.
Concord acknowledged that he knew the woman had two sons who lived with her, and that one of them was a minor.
He faces a maximum penalty of 20 years in prison and a $250,000 fine on the extortion count and a maximum penalty of 20 years in prison and a $1 million fine on the count of manufacturing methamphetamine. Any sentence imposed for the manufacture of methamphetamine where minors reside or are present must be served consecutively to any other sentence imposed. The maximum penalty for that count is 20 years in prison and a $2 million fine.
As part of Concord's plea agreement, he must surrender all law enforcement certifications and not seek future employment in law enforcement or custodial oversight, including as a correctional or probation officer or bail bondsman.
The FBI, State Bureau of Investigation, agents of the Lauderdale County Drug Task Force assigned to the FBI's Safe Streets Task Force, the Winston/Marion County District Attorney's Office, with the cooperation of the Winston County Sheriff's Office and the Lynn Police Department, investigated the case. Assistant U.S. Attorney Tamarra Matthews Johnson is prosecuting the case.
Former Security Contractor CEO Agrees to pay $4.5 Million to Settle Civil ClaimsRead the Press Release
Arlington Man was Mastermind of Disadvantaged Small Business Fraud SchemeALEXANDRIA, VA – Keith Hedman, 55, of Arlington, Virginia, the former chief executive officer of a Virginia-based security contracting firm, Protection Strategies, Inc., (PSI), has agreed to pay $4.5 million to settle civil claims relating to his involvement in a fraudulent scheme to create a front company to obtain contracts through the Small Business Administration’s (SBA) Section 8(a) program. The Section 8(a) program allows qualified small businesses to receive sole-source and competitive-bid contracts set aside for minority-owned and disadvantaged small businesses.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, made the announcement after the settlement agreement was signed by both parties.
“The civil settlement illustrates the importance of not stopping at a criminal resolution when a defendant has pled guilty to fraud against the government,” said U.S. Attorney Boente.
The settlement resolves civil claims against Hedman relating to the criminal plea entered by him in U.S. v. Hedman, 1:13cr74. According to court records, in or about 2001 Hedman formed PSI, which was approved to participate in the 8(a) program based on the 8(a) eligibility of its listed president and CEO, an African-American female. When the listed president and CEO left PSI in 2003, Hedman became its sole owner, and the company was no longer 8(a)-eligible.
In 2003, Hedman created Security Assistance Corporation (SAC), another Arlington-based security contractor, to ensure that he could continue to gain access to 8(a) contracting preferences for which PSI was no longer qualified. Prior to applying for SAC’s 8(a) status, Hedman selected an employee, Dawn Hamilton, to serve as a figurehead owner based on her Portuguese heritage and history of social disadvantage. In reality, the new company was managed by Hedman and PSI senior leadership in violation of 8(a) rules and regulations. To deceive the SBA, the co-conspirators falsely claimed that Hamilton formed and founded the company and that she was the only member of the company’s management. Based on those misrepresentations, SAC obtained 8(a) status in 2004.
From 2004 through February 2012, Hedman impermissibly exercised ultimate decision-making authority and control over SAC by directing its finances, allocation of personnel, and government contracting activities. Hedman nonetheless maintained the impression that Hamilton was leading the company, including through forgeries of signatures of Hamilton to documents she had not seen or drafted. Hedman also retained ultimate control over the shell business’s bank accounts throughout its existence. In total, the scheme netted SAC more than $31 million in fraudulently obtained contract payments.
As a result of Hedman’s criminal plea, he was sentenced to 72 months in prison, two years of supervised release, and was ordered to forfeit approximately $6.1 million and pay a $15,000 fine.
As part of the civil settlement, Hedman has agreed to pay $4.5 million to resolve allegations under the False Claims Act and other related statutory and common law remedies arising from the fraudulent scheme. The civil claims settled by Hedman and the United States are allegations only. There has been no determination of civil liability.
The resolutions obtained in this matter were the result of a coordinated investigation by the Civil and Criminal Divisions of the U.S. Attorney’s Office for the Eastern District of Virginia, and the Civil Division of the Department of Justice. The civil matter was investigated by Assistant U.S. Attorney Peter Hyun and DOJ Trial Attorney Allison Cendali. The criminal case was prosecuted by Assistant U.S. Attorneys Chad Golder and Ryan Faulconer, a former Trial Attorney for the Criminal Division’s Fraud Section.This case was investigated by National Aeronautics and Space Administration, Office of the Inspector General (OIG), the SBA -OIG, Defense Criminal Investigative Service-OIG, General Services Administration-OIG, and Department of Homeland Security-OIG, with assistance from the Defense Contract Audit Agency.
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. 1:13-cr-074.Tweet
Former North Liberty Man Sentenced for Federal Methamphetamine ConspiracyRead the Press Release
DAVENPORT, IA – On December 19, 2014, Terry Joe Burns, age 49, formerly of North Liberty, Iowa, was sentenced by United States District Judge John A. Jarvey to 180 months in prison for conspiracy to distribute methamphetamine, announced United States Attorney Nicholas A. Klinefeldt. Burns was also ordered to serve five years of supervised release following the imprisonment, and to pay $100 towards the Crime Victims Fund.
Beginning in approximately July 2013 and continuing until about November 14, 2013, Burns conspired with other persons to distribute ice methamphetamine in the North Liberty, Iowa, area. On November 14, 2013, law enforcement intercepted a vehicle occupied by co-defendant Donald Lee Engstrom as it arrived at Burns’ residence near North Liberty. The vehicle contained 333 grams of highly pure ice methamphetamine and $9,255 in U.S. currency. These items belonged to Engstrom, and he was traveling to meet Burns because Engstrom had arranged with Burns to meet with Burns and an acquaintance of his for the purpose of selling that person one-half pound of ice methamphetamine.
Co-defendant Engstrom has pled guilty to conspiracy to distribute methamphetamine and was sentenced by Judge Jarvey in September 2014 to 120 months in prison.
This case was investigated by the Johnson County Drug Task Force, the United States Drug Enforcement Administration, the Iowa Department of Narcotics Enforcement, and the North Liberty, Iowa, and Iowa City, Iowa, Police Departments. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Former Los Angeles Man Sentenced for Federal Heroin ConspiracyRead the Press Release
DAVENPORT, IA – On December 19, 2014, Lennon Hunter, Jr., age 56, formerly of Los Angeles, California, was sentenced by United States District Judge Stephanie M. Rose to 120 months in prison for conspiracy to distribute heroin, announced United States Attorney Nicholas A. Klinefeldt. Hunter was also ordered to serve five years of supervised release following the imprisonment, and to pay $100 towards the Crime Victims Fund.
Beginning in approximately July 2009 and continuing until about September 22, 2012, Hunter conspired with other persons to distribute heroin. On multiple occasions during this period Hunter obtained heroin—ranging in weight from approximately one ounce to one-half kilogram—in Los Angeles, California, and then either sent the heroin via parcel carrier to the Quad Cities area, or provided it to a co-conspirator who utilized rail and bus carriers to transport the heroin to the Quad Cities. Once in the Quad Cities, the heroin was delivered to co-conspirator Curtis Newman, Sr. in Davenport, Iowa, for further distribution. The quantity of heroin distributed by Hunter exceeded 1 kilogram.
Co-conspirator Curtis Newman, Sr. has pled guilty to conspiracy to distribute heroin and is awaiting sentencing.
This case was investigated by the Drug Enforcement Administration, and the Quad Cities Metropolitan Enforcement Group, and the case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Former Law Firm Partner and her Husband Charged with Defrauding Two Law Firms and the Firms' Client of $5 MillionRead the Press Release
NEWARK, N.J. - A former partner of a prominent New York law firm and her husband were arrested by federal law enforcement officers this morning for allegedly engaging in a conspiracy to obtain millions of dollars through fraudulent activity, U.S. Attorney Paul Fishman announced.
Agents of IRS-Criminal Investigation and the Drug Enforcement Administration, arrested Keila Ravelo, 49, and Melvin Feliz, 50, of Englewood Cliffs, New Jersey, this morning on a complaint charging them with conspiracy to commit wire fraud. They are scheduled to make their initial appearance this afternoon before U.S. Magistrate Judge Michael A. Hammer in Newark federal court.
According to the complaint:
An investigation conducted jointly by the IRS and DEA revealed that from 2008 through July 2014, Ravelo and Feliz used two companies (Vendor 1 and Vendor 2) to fraudulently obtain money from two New York law firms (Law Firm 1 and Law Firm 2) where Ravelo previously worked. Ravelo worked as a partner at Law Firm 1 from at least 2008 to October 2010. She then joined Law Firm 2 as a partner and worked there from October 2010 to November 2014. Vendor 1 and Vendor 2 purported to provide litigation support services to both of those law firms.
Ravelo and Feliz either created or caused to be created both vendors, including having bank accounts opened in Vendor 1’s and Vendor 2’s names, and controlled those bank accounts. Ravelo and Feliz used Vendor 1 and Vendor 2 to fraudulently obtain money from Law Firm 1, Law Firm 2, and a client of both those firms by submitting invoices to both law firms for work that was not performed. Funds paid to Vendor 1 and Vendor 2 were allegedly used to pay the personal expenses of Ravelo and Feliz or were transferred to a joint account held by them. Checks were issued from accounts controlled by Ravelo and Feliz to certain individuals for allegedly performing litigation support work. Law enforcement officers interviewed some of these individuals, who stated that they never performed any legal or litigation support work for Vendor 1 and/or Vendor 2. Law firm employees who worked with Ravelo on matters allegedly supported by the vendors stated that they reviewed no work product produced by either Vendor 1 or Vendor 2. Individuals who opened the respective bank accounts for Vendor 1 and Vendor 2 said they did so at the request of either Ravelo or Feliz and then signed blank checks, which were given to Ravelo or Feliz.
The two law firms paid Vendor 1 and Vendor 2 more than $5 million. Ravelo, in her capacity as a partner at the law firms, approved many of the payments from the law firms to Vendor 1 and Vendor 2. The couple funneled the majority of the fraudulently obtained funds into their joint bank account and used the funds to pay for their personal expenses and investments, which included $250,000 in payments to a jewelry store.
Both law firms and the client have cooperated with the investigation.
The charge of conspiracy to commit wire fraud carries a maximum potential penalty of 20 years in prison and a fine of the greater of $250,000, twice the gross profits to the defendants or twice the gross loss sustained by the victims.U.S. Attorney Fishman credited special agents of the DEA, Newark Division, under the direction of Special Agent in Charge Carl J. Kotowski; and special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen, New Jersey, with the investigation leading to today’s arrest.
The government is represented by Assistant U.S. Attorneys Andrew Kogan, Brian Urbano, Ronnell Wilson and Marion Percell, of the U.S. Attorney’s Office Criminal Division and Assistant U.S. Attorney David Foster of the U.S. Attorney’s Office Special Prosecution’s Division in Newark.
The charge and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
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Defense counsel: Ravelo: Aidan O’Connor Esq., Hackensack, N.J., and Steve H. Sadow Esq., Atlanta, Ga.
Feliz: Patrick Joyce Esq., New York
Former Investment Advisor Sentenced on Wire Fraud, Tax Evasion ChargesRead the Press Release
ROANOKE, VIRGINIA – A former investment advisor employed by the Roanoke, Va. branch of an unnamed global financial services firm, was sentenced today in the United States District Court for the Western District of Virginia in Roanoke on wire fraud and tax evasion charges.
Donna J. Tucker, 58, of Roanoke, Va., previously waived her right to be indicted and pleaded guilty to a two-count Information charging her with one count of wire fraud and one count of tax evasion. Today in District Court, Tucker was sentenced to 60 months of Federal incarceration. In addition, was ordered to pay $976,485 in restitution to victims.
In evidence presented at today’s sentencing by Assistant United States Attorney Daniel P. Bubar and United States Secret Service Special Agent Andrew Beaman, Tucker stole directly from and caused loss to the accounts of two sets of victims. Evidence showed that all of the victims in this case were elderly and one couple was particularly vulnerable, as they are both legally blind. The Court took these factors into consideration and specifically included the recommended sentencing enhancements regarding the vulnerability of these victims and Tucker’s abuse of a position of trust.
According to information presented at previous hearings, Tucker was an investment advisor in Roanoke from 2007 through April 2013. In August 2010, Tucker forged the signature of one of her clients, an elderly couple who held a joint account, in order to obtain a line of credit, supposedly for the clients, through her firm’s banking arm. Tucker took these actions without the knowledge or consent of the victim.
Approximately one year later, on August 4, 2011, Tucker caused to be transmitted a wire transfer of $295,000 from the victim’s account to her own account at a local credit union. These funds were used to benefit Tucker and her family. In addition, Tucker took steps to ensure the victims did not learn of the unauthorized transfer by instructing others at her firm to place the victims in an all-electronic delivery system that would send the victim’s account statements by email. Tucker also made false statements to the victims, other employees at the firm and created false documents in order to carry out the scheme.
Additionally, in calendar year 2011, Tucker reported to the Internal Revenue Service a taxable income of $125,333. The defendant has admitted to knowingly failing to report additional taxable income of at least $340,000, which resulted in an additional tax of at least $115,000 being owed to the United States.
The investigation of the case was conducted by the United States Secret Service, the Federal Bureau of Investigation, the Internal Revenue Service-Criminal Investigations and the Roanoke City Police Department. Assistant United States Attorney Daniel P. Bubar and Special Assistant United States Attorney Drew Bradylyons prosecuted the case for the United States.
Former Corrections Officer Pleads Guilty to Wire Fraud and Identity Theft ChargesRead the Press Release
Jacksonville, Forida – United States Attorney A. Lee Bentley, III announces that Harold B. Walbey, III (46 Jacksonville) has pleaded guilty to wire fraud and identity theft. He faces a maximum penalty of 20 years in federal prison. His sentencing hearing has not yet been scheduled. Walbey was indicted on December 11, 2013.
According to court documents, from at least in or about 2010 and continuing through about May 2012, Walbey, in his capacity as a correctional officer at the John E. Goode Pre-trial Detention Facility (PTDF), stole the personal identifying information of unknowing inmates that were housed at the facility. As a part of this scheme, Walbey maintained a notebook that contained 49 names, social security numbers, and dates of births of prisoners that were incarcerated at the PTDF. Once this information was stolen, fraudulent debit card accounts and W-2 forms were created in the inmates’ names. A fraudulent tax return was then electronically filed using various online tax software tools such as Turbo Tax. From 2010 through 2012, Walbey filed tax returns in 38 different prisoners’ names, claiming more than $250,000 in fraudulent refunds.
This case was investigated by the Jacksonville Sheriff’s Office, Internal Revenue Service – Criminal Investigation, and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Malisa Chokshi.
Federal Inmate Gets 20-Month Sentenced for Possessing Suboxone in PrisonRead the Press Release
ERIE, Pa. - An inmate at the McKean Federal Correctional Institution in Bradford, Pennsylvania pleaded guilty and was sentenced in federal court to 20 months in jail on his conviction of possession of contraband in prison, United States Attorney David J. Hickton announced today.
United States District Judge David S. Cercone imposed the sentence on Ricardo Ramos, 34. The sentence was imposed to run consecutively to the sentence Ramos is currently serving.
According to information presented to the court, on or about April 29, 2014, Ramos was in possession of contraband, namely, a quantity of buprenorphine (suboxone).
Assistant United States Attorney Christian A. Trabold prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended Officers of the McKean Federal Correctional Institution for the investigation leading to the successful prosecution of Ramos.
Federal Court Permanently Bars Five Texas Tax Return Preparers from Preparing Returns for OthersRead the Press Release
A federal court in Waco, Texas has permanently barred Patricia Foley aka Sissy Foley; Amanda Smith; April Leann Morgan aka April Leann Ercanbrack; Cassandra Egbert and Joshua Stifle, individually and doing business as Accounting System Services and doing business as A Kind Bookkeeping and Tax Service from preparing tax returns for others, the Justice Department announced today. The five defendants agreed to the stipulated order of permanent injunction, which U.S. District Judge Walter S. Smith Jr. entered on Dec. 19.
The complaint alleges that the defendants prepared income tax returns for their customers that contained false, improper or inflated business expense deductions on Schedule F (Profit or Loss from Farming) on their returns. These activities led to the defendants’ customers filing tax returns that unlawfully understated income and tax liabilities and overstated refunds, according to the suit.
The injunction requires the defendants to turn over to the United States a list of all persons for whom they prepared federal tax returns or claims for a refund for tax years 2009 through 2014. The order granting the injunction further authorizes the United States to monitor the defendants’ compliance with the terms of the order.]\
Return preparer fraud is one of the IRS’s Dirty Dozen Tax Scams for 2014. The IRS has some tips on their website for choosing a tax preparer. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
El Departamento de Justicia Resuelve una Demanda contra Diversified Business Consulting Group, Inc.Read the Press Release
WASHINGTON – El Departamento de Justicia anuncio hoy que llegó a un acuerdo con Diversified Business Consulting Group, Inc., una agencia de empleo con sede en Silver Spring, Maryland. El acuerdo resuelve la alegación del departamento que Diversified discriminó en contra de individuos que no son ciudadanos estadounidenses pero que sí tienen permiso de trabajar, en contra de la Ley de Inmigración y Nacionalidad (INA por sus siglas en inglés).
La investigación del departamento reveló que Diversified requería que personas que no eran ciudadanos estadounidenses presentaran documentos específicos durante el proceso de verificación de elegibilidad de empleo para establecer su autorización de trabajo, mientras que a los ciudadanos estadounidenses se les permitía presentar los documentos de su elección. La provisión antidiscriminatoria de la INA prohíbe a los empleadores que especifiquen los documentos que los trabajadores deben presentar durante el proceso de verificación de elegibilidad de empleo basado en el estatus de ciudadanía u origen nacional del empleado.
Según el acuerdo, Diversified le pagará $7,700 en multas a Los Estados Unidos y se someterá a un adiestramiento proporcionado por el departamento sobre la provisión antidiscriminatoria de la INA. La oficina corporativa de Diversified y sus ramas estarán sujetas a monitoreo del departamento y a requisitos de informacóin.
"La División de Derechos Civiles está comprometida a proteger a las personas autorizadas a trabajar contra prácticas discriminatorias en el proceso de verificación de elegibilidad de empleo," dijo Vanita Gupta Subprocuradora General Interina para la División de Derechos Civiles. "Felicitamos a Diversified por trabajar cooperativamente con la División para resolver este asunto."
La Oficina del Consejero Especial para Prácticas Injustas en el Empleo Relacionadas a la Inmigración es responsable por hacer cumplir con la provisión antidiscriminatoria de la INA. Entre otras cosas, la ley prohíbe discriminación por estatus de ciudadanía u origen nacional durante la contratación, el despido, el reclutamiento o la referencia por comisión; las prácticas injustas de documentación; represalias e intimidación.
Para más información sobre las protecciónes contra la discriminación en el empleo bajo las leyes de inmigración, llame a la línea directa de la OSC para el trabajador, al 1-800-255-7688 (teléfono de texto 1-800-237-2515, para las personas con discapacidades auditivas), o a la línea directa de la OSC para el empleador, al 1-800-255-8155 (teléfono de texto 1-800-237-2515, para las personas con discapacidades auditivas); suscríbase a un seminario por internet gratis en www.justice.gov/crt/about/osc/webinars.php, envíe un correo electrónico a [email protected]; o visite el sitio del internet de OSC en www.justice.gov/crt/about/osc.
Los solicitantes o empleados que creen que han sido sometidos a: (1) requisitos documentarios diferentes por causa de su estado de ciudadanía, estado de inmigración u origen nacional; o (2) discriminación por causa de su estado de ciudadanía, estado de inmigración u origen nacional, en la contratación, el despido, el reclutamiento o la recomendación por un honorario, deberán comunicarse a la línea directa de la OSC para el trabajador para recibir ayuda.
Easton Hospital Agrees to Pay the Government $662,000 to Resolve False Claims Act AllegationsRead the Press Release
PHILADELPHIA - Northampton Hospital Company, LLC and Northampton Hospital Corporation, doing business as Easton Hospital (“Easton Hospital”), have agreed to a $662,000 settlement with the government to resolve allegations of health care fraud arising under the False Claims Act. The United States contends Easton Hospital billed Medicare for procedures performed by Dr. Thomas Walden, including extracorporeal shock wave lithotripsy, cystometrogram, green light laser, and transurethral resection of the prostate. According to the United States, some of these procedures were not performed, were only partially completed, or were medically unnecessary. The settlement was announced today by United States Attorney Zane David Memeger. Easton Hospital denies the allegations.
Easton Hospital provides inpatient and outpatient healthcare services in Easton, Pennsylvania. The hospital’s services include cardiovascular, orthopedic, oncology, maternal, child health, pediatric, physical therapy rehabilitation, and mental health services. In addition, it offers surgical care, emergency care, occupational and speech therapy, wound healing management, imaging, radiology, home health, hospice, and laboratory services. While employed at Easton Hospital, two former employees discovered a Medicare fraud scheme perpetrated at Easton Hospital. In specific, these employees observed urologic procedures and tests performed by Dr. Walden for which the government should not have been billed by Easton Hospital.
The two employees filed a complaint in the Eastern District of Pennsylvania captioned U.S. ex rel. David Kasprzak and David Heaton v. Defendant Northampton Hospital Company LLC d/b/a Easton Hospital and Northampton Hospital Corporation d/b/a Easton Hospital, Civil Action Number 10-6264. This complaint was filed under the qui tam, or whistleblower, provisions of the False Claims Act. The qui tam provisions permit private citizens to bring civil actions on behalf of the United States.
“The United States Attorney’s Office for the Eastern District of Pennsylvania places a high priority on criminal and civil enforcement in cases involving health care fraud,” said Memeger. “Health care fraud wastes tax dollars, harms patients, and drives up medical costs for everyone. We encourage our citizens to report potential health care fraud so that we can effectively investigate and prosecute this type of wrongdoing.”
Under the parties’ settlement agreement, Easton Hospital will pay $662,000 to the United States. The two whistleblowing employees will receive a share of the settlement payment.
The case was investigated by the United States Attorney’s Office for the Eastern District of Pennsylvania, the United States Department of Health and Human Services- Office of Inspector General, and the United States Office of Personnel Management-Office of Inspector General. Within the United States Attorney’s Office, the case was handled by Assistant U.S. Attorneys Veronica J. Finkelstein and Joel M. Sweet.
Individuals with information regarding fraud, waste, or abuse related to Medicare or other federal programs are encouraged to file a complaint with the United States Attorney’s Office by calling 215-861-8200.
UNITED STATES ATTORNEY'S OFFICE Contact: PATTY HARTMAN
EASTERN DISTRICT, PENNSYLVANIA Media Contact
Suite 1250, 615 Chestnut Street 215-861-8525
Philadelphia, PA 19106
Dunbar heroin dealer pleads guilty in federal courtRead the Press Release
CHARLESTON, W.Va. – U.S. Attorney Booth Goodwin today announced that William Leon Sales, 37, of Dunbar, West Virginia, pleaded guilty to possession with intent to distribute heroin, in a hearing before U.S. District Judge John T. Copenhaver, Jr., in Charleston.
On July 16, 2014, officers with the Metropolitan Drug Enforcement Network Team (MDENT) located approximately 75 grams of heroin and more than $4,000 in cash at Sales’ home in Dunbar. Sales admitted he intended to distribute the heroin in the Dunbar area.
On July 1, 2014, Sales provided a gram of heroin to a middleman to distribute for $150 to a confidential informant working with MDENT. Sales told the informant he had another half-ounce of heroin in his residence if the informant wished to purchase additional heroin.
Sales faces up to 20 years in federal prison, and is scheduled to be sentenced on March 24, 2015.
MDENT conducted the investigation. Assistant United States Attorney Jennifer Rada Herrald is in charge of the prosecution.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
District Man Pleads Guilty to Second-Degree Murder While Armed in Southeast Washington Shooting-Defendant Shot Victims Inside Car in Barry Farm Area-Read the Press Release
WASHINGTON – Donald Dubose, 25, of Washington, D.C., pled guilty today to a charge of second-degree murder while armed stemming from a fatal shooting that took place in 2012 in Southeast Washington, U.S. Attorney Ronald C. Machen Jr. announced.
Dubose pled guilty in the Superior Court of the District of Columbia. He is to be sentenced on Feb. 20, 2015, by the Honorable Jennifer Anderson. The plea, which is contingent on the Court’s approval, calls for a sentence between 15 and 17 years of incarceration.
According to the government’s evidence, on May 12, 2012, at approximately 5:35 a.m., the victim, Michael Smith, 34, and another man left Northwest Washington in a gray Mercedes Benz. They headed towards the Barry Farm community in Southeast Washington. The other man drove while Mr. Smith sat in the front passenger seat. Dubose followed behind them in a black Ford Fusion with the intention of causing physical harm and injury to Mr. Smith and the other man in the Mercedes Benz. At least two of Dubose’s associates were in the car with him.
When they reached Stevens Road SE, in Barry Farm, the other man pulled the Mercedes to the side of the road in the 1100 block of Stevens Road. Dubose stopped the Ford Fusion beside the Mercedes, on the driver’s side of the Mercedes. The individuals in the Ford Fusion shot at Mr. Smith and the other man with multiple guns. Mr. Smith was shot twice in the head and died shortly thereafter. The other man survived the gunfire, but suffered a gunshot wound to his arm. Though injured with a gunshot wound, he attempted to drive the Mercedes away. He crashed the Mercedes into the side of a nearby house across the street. Dubose and the shooters, meanwhile, fled from the shooting in the Ford Fusion, which defendant drove.
In announcing the guilty plea, U.S. Attorney Machen commended the work of the detectives of the Criminal Investigations Division Homicide Branch, crime scene officers, and the Seventh Police District of the Metropolitan Police Department. He also expressed appreciation to those who worked on the case from the U.S. Attorney’s Office, including Marcia Rinker, M. Laverne Forrest, Tanya Via and Michael Hailey of the Victim/Witness Assistance Unit; former Paralegal Specialists Fern Rhedrick and Marian Russell; Paralegal Specialist Vanessa Trent-Valentine; Investigative Analyst Zachary McMenamin; Assistant U.S. Attorney Michael Brittin; and former Assistant U.S. Attorney Justin Dillon. He also praised the efforts of Assistant U.S. Attorney Shana L. Fulton, who investigated, indicted, and prosecuted the case.
14-285Defense Contractor Sentenced to 6 Months in Prison for Manufacturing Defective Aircraft Parts and Falsifying Safety RecordsRead the Press Release
PHOENIX – On Dec. 22, 2014, U.S. District Court Judge Diane J. Humetewa sentenced Malcom Robert Markson, 45, of Peoria, Ariz., to six months in prison. Markson previously pleaded guilty to the crimes of fraud involving aircraft parts and obstruction of federal investigation.
U.S. Attorney John S. Leonardo stated, “The U.S. Attorney’s Office is committed to aggressively prosecuting fraud by defense contractors, particularly when that fraud endangers members of our military.”
“Our men and women in combat deserve equipment that meets critical safety and performance requirements,” said Special Agent in Charge Janice M. Flores of the Defense Criminal Investigative Service (DCIS) Southwest Field Office. “This case demonstrates that the DCIS, along with our law enforcement partners, will aggressively pursue cases where contractors knowingly provide defective equipment that puts the safety of American military service members at risk.”
Hector Sanchez, the Special Agent in Charge of the Air Force Office of Special Investigations, Procurement Fraud Office, Southwest Region, stated: “AFOSI is committed to supporting the warfighter and ensuring that those who unlawfully defraud members of the armed services are held accountable. Successful prosecution of this case exemplifies collaborative efforts between AFOSI, DCIS, and Department of Justice partners in the fight against fraud waste and abuse.”
Markson is the former owner of Action Machine, LLC, a Phoenix-based defense contractor. Between 2009 and 2012, Markson obtained a series of contracts on behalf of Action Machine to manufacture wing pins for the Department of Defense. Wing pins are critical safety parts that are used to secure the wings of F-15 fighter aircraft. The contracts contained detailed design specifications that required Action Machine to use a particular type of hardened steel when manufacturing the wing pins and to subject the wing pins to a particular safety inspection process. Based on these contracts, Markson manufactured and shipped a total of 212 wing pins to the Department of Defense and supplied certification forms verifying that the wing pins met all of the design specifications. In fact, these certifications were false - some of the wing pins were made with the wrong type of steel and some had not been subjected to the required safety testing.
In 2013, the Department of Defense discovered that the wing pins supplied by Action Machine might be defective. (This discovery occurred before any accidents or injuries occurred.) Based on this discovery, auditors were dispatched to Phoenix to interview Markson and inspect Action Machine’s books and records. During this process, Markson supplied auditors with a document that appeared to show that a third-party testing company had conducted all of the necessary safety testing on the wing pins. In fact, this document was a forgery created by Markson.
The investigation in this case was conducted by the Defense Criminal Investigative Service. The prosecution was handled by Dominic Lanza, Assistant U.S. Attorney, District of Arizona.
CASE NUMBERS: CR-14-1152-PHX-DJH
RELEASE NUMBER: 2014-077_MarksonFor more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Davenport Man Sentenced in Federal Court for Possession of Firearm as FelonRead the Press Release
DAVENPORT, IA- On December 19, 2014, Ronnell Monshanique Henderson, age 33, of Davenport, Iowa, was sentenced by United States District Court Judge Stephanie M. Rose to 100 months imprisonment, after pleading guilty to possession of a firearm as a felon, announced United States Attorney Nicholas A. Klinefeldt. Henderson was also ordered to serve three years of supervised release following his conviction, and to pay $100 towards the Crime Victims Fund.
On March 20, 2014, officers with the Davenport, Iowa, Police Department responded to a report of a burglary in progress. Witnesses were able to provide a description of the subjects involved as well as a description and license plate number of the maroon SUV they left in. Davenport police officers in the area observed a vehicle with occupants that matched this description and conducted a traffic stop.
Henderson stepped out of the vehicle at the request of the officers, and an officer instructed him to turn around and face the vehicle. As Henderson started to turn, he swung his arm back, struck the officer and attempted to run. Two officers were able to catch Henderson and physically placed him on the ground. Henderson continued to physically resist. Henderson kept his hands underneath him and failed to respond to repeated commands to give officers his hands. Officers were finally able to get control of Henderson’s hands. Henderson continued to physically struggle with officers as they searched him. Officers found a loaded black revolver in Henderson’s right front jacket pocket. Both officers sustained injuries as a result of Henderson’s resistance to arrest.
The firearm seized was an Uberti Outlaw 44/40 caliber revolver loaded with five rounds, which had been reported stolen in February 2011. Prior to March 20, 2014, Henderson had been convicted of a robbery, a Class C felony under Iowa law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Davenport, Iowa, Police Department. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa as part of the Project Safe Neighborhood initiative.
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Davenport Man Sentenced in Federal Court for Possession of Child PornographyRead the Press Release
DAVENPORT, IA- On December 19, 2014, Robert Lee Burton, age 49, of Davenport, Iowa, was sentenced by United States District Court Judge Stephanie M. Rose to 90 months in prison, announced United States Attorney Nicholas A. Klinefeldt. Burton was also ordered to serve five years of supervised release following his imprisonment, and to pay $100 towards the Crime Victims Fund. Burton was also ordered to pay $2800 in restitution to one of the victims involved in this offense.
Based on an investigation involving the Internet Crimes Against Children (ICAC) task force and the Scott County Sheriff’s Office, a search was performed on January 11, 2012, at Burton’s Davenport residence. Multiple hard drives, DVDs, thumb drives and computers were seized and later found to contain images and videos of child pornography. Burton pled guilty on July 1, 2014, and he will be required by state and federal law to register as a sex offender.
This case was investigated by the Internet Crimes Against Children Task Force, the Scott County Sheriff’s Office, the Davenport Police Department and the Clinton County Sheriff’s Office. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa as part of the Project Safe Child initiative.
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Corry Physician Pleads Guilty to Possessing Child PornographyRead the Press Release
ERIE, Pa. - A resident of Corry, Pennsylvania, pleaded guilty in federal court to a charge of violating federal laws relating to the sexual exploitation of children, United States Attorney David J. Hickton announced today.
William Jay Blazes, 47, pleaded guilty to one count before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that Blazes possessed approximately 7,000 computer images and movies depicting minors engaging in sexually explicit conduct.
Judge Cercone scheduled sentencing for April 6, 2015 at 12:45 p.m. The law provides for a total sentence of 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued Blazes on bond.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Corry Police Department, the Erie County District Attorney’s Office, and the Pennsylvania State Police conducted the investigation that led to the prosecution of Blazes.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Cleveland, Ohio Man Sentenced for Selling Heroin Near Local PlaygroundRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Tara Tighe, Public Affairs SpecialistWHEELING, WEST VIRGINIA – Jewan Kyle, 26, of Cleveland, Ohio, was sentenced today to 44 months in prison for distributing heroin near a local playground, United States Attorney William J. Ihlenfeld, II, announced.
An investigation by the Ohio Valley Drug and Violent Crime Task Force, a HIDTA-funded initiative, revealed that Kyle sold heroin near Bloch Playground in Wheeling, West Virginia, in February 2013. Kyle, who has multiple prior felony drug convictions, pled guilty in October 2014 to one count of “Distribution of Heroin Within 1000’ of a Protected Location.”
United States Attorney Ihlenfeld prosecuted the case on behalf of the government.
Senior U.S. District Judge Frederick P. Stamp presided.
Civilian Navy Employee Found Guilty of Obstruction and False Statement after Jury TrialRead the Press Release
WASHINGTON – A federal jury today returned a guilty verdict against a civilian employee of the U.S. Navy posted at the Capodichino Navy Base near Naples, Italy, for obstructing an investigation and making false statements, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Nicholas A. Klinefeldt of the Southern District of Iowa.
Steven William Ashton, 41, with a last known U.S. residence in Davenport, Iowa, was found guilty after a nine-day jury trial of creating false documents to obstruct the Naval Criminal Investigative Service (NCIS) investigation into Ashton’s private consulting business called BlackGrid Consulting LLC. The jury also found Ashton guilty of making false statements about his tour of duty in order to obtain federal benefits and access to military bases worldwide.
The evidence at trial showed that the NCIS was investigating Ashton for conflicts of interest and using inside government information to advance his business. When Ashton learned about the investigation, he created fraudulent documentation purporting to show that he had fully disclosed his business to Navy authorities and received approval. At Ashton’s direction, his defense counsel unwittingly submitted those false documents to the prosecutors and gave other false explanations to the Justice Department.
According to the evidence presented at trial, from April 2004 to March 2013, Ashton was employed by the Navy as the North Atlantic Treaty Organization and Host Nation Programs Manager for the regions of Europe, Africa and Southwest Asia, responsible for managing contracts and agreements among the Navy and other countries to support the United States’ military efforts.
He was found not guilty on charges of theft of government funds for obtaining housing benefits, called Living Quarters Assistance, to which he was not entitled, and of obstructing that investigation.
This case was investigated by the NCIS and the Air Force Office of Special Investigations. The case is being prosecuted by Director of Procurement Fraud Litigation Catherine Votaw of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Clifford Cronk of the Southern District of Iowa.
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Change of Plea Hearing Scheduled January 8, 2015 at 12:30pm for Defendant John HarderRead the Press Release
A hearing before Judge Michael Simon is scheduled on January 8, 2015, 12:30 PM at Mark O Hatfield Courthouse, Courtroom 13B, for the case which involves defendant Jon Harder. The purpose of this hearing is for the defendant to enter a plea of guilty.
Jon Harder is scheduled to plead guilty to one count of mail fraud and one count of money laundering. The prosecutors would like to meet with victims to describe the entry of plea and the sentencing process. The meeting will take place at the U.S. Attorney's Office, Suite 600, at 10:30am.
Cedar Rapids Man to Federal Prison for Selling OVer $85,000 Worth of MarijuanaRead the Press Release
A man who sold expensive “high-grade” marijuana in the Cedar Rapids area will spend 9 months in federal prison.
Tyler Scheer, 26, from Cedar Rapids, Iowa received the prison term after an August 18, 2014 guilty plea to Conspiracy to Distribute Marijuana.
At a prior guilty plea hearing, Scheer admitted he agreed with others to sell marijuana in the Cedar Rapids area from August 2012 through April 2013. According to information disclosed in court and in court documents, Scheer sold or possessed with intent to sell over 11 kilograms (over 24 pounds) of marijuana over the course of the conspiracy. Valued at approximately $3,450 per pound, Scheer sold over $85,000 worth of this high-grade marijuana.
Scheer was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Scheer was sentenced to 9 months’ imprisonment and fined $3,000. A special assessment of $100 was imposed. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
Scheer was released on the bond previously set and is to surrender to the Bureau of Prisons on a future date.
The case was prosecuted by Assistant United States Attorney Justin Lightfoot and investigated by was investigated by the Drug Enforcement Administration (DEA) Task Force as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice. The DEA Task Force consists of the DEA; the Linn County Sheriff's Office; the Cedar Rapids Police Department; the Marion Police Department; the Iowa City Police Department; the Clinton Police Department; the Iowa Division of Narcotics Enforcement; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Sixth Judicial District Department of Correctional Services; and the Iowa National Guard.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/ login.pl. The case file number is CR 14-82.
Canadian Man Sentenced to Seven Years in Prison for Swindling Elderly Victims in $8 Million Telemarketing Scam from the PhilippinesRead the Press Release
CHICAGO — A Canadian man who cooperated with U.S. law enforcement and voluntarily traveled from the Philippines to face federal prosecution was sentenced to seven years in prison for swindling 168 elderly victims nationwide of approximately $8 million in a telemarketing fraud scheme, federal law enforcement officials announced today.
The defendant, AUSTIN ETCHES, 56, “was up to his eyeballs” in the “heinous” crime, U.S. District Judge Thomas Durkin said in imposing the sentence on Friday in Federal Court. Etches, who has remained in federal custody since he voluntarily traveled to the United States in June 2013, was also ordered to pay restitution totaling approximately $8 million.
Etches, who last resided in Toronto before Manila, pleaded guilty to mail fraud in June of this year and cooperated in the investigation, which has resulted in pending charges against two alleged co-schemers, who are believed to be outside the United States.
Citing letters to the judge from widows and retirees who were among the victims, Assistant U.S. Attorney Rachel Cannon argued in a sentencing memo, “Many of the victims were at the most vulnerable point of their lives, between their advanced ages, the death of their spouses, and their or their spouse’s health issues, not to mention their need for income.”
According to court documents, Etches and two co-schemers operated a series of companies through telemarketing call centers located in and around Manila. Between 2008 and 2012, they raised more than $8 million by fraudulently selling phony certificates of deposit and non-existent real estate investments to American senior citizens. They made false statements about the risks of the investments, the expected and actual rates of return, and the ways in which investors’ funds would be used. They provided investors with fraudulent account statements purporting to show that investments had increased in value, knowing that they had misappropriated the funds and the investments were worthless.
One elderly victim attended Etches’ sentencing with her son, who spoke on her behalf. He noted that his mother was an emigrant from Yugoslavia, and his parents had worked their entire lives in factory jobs. They managed to save $161,000, all of which Etches and others stole. The son described how the schemers hounded his mother with repeated phone calls, and they stopped calling her only when her son intervened.
In late 2013, related federal fraud charges were filed in Chicago against JONATHAN PAPA, 42, who is believed to be in the Philippines, and METHSIRI PALLIYAGURU, 56, who was formerly in the Philippines and is now believed to be in Canada. The charges are not evidence of guilt and they are presumed innocent.
The sentence was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; and Tony Gómez, Inspector-in-Charge of the U.S. Postal Inspection Service in Chicago. The FBI’s Los Angeles office and the U.S. Securities and Exchange Commission assisted in the investigation.
California Man Sentenced for Possession of an Unregistered FirearmRead the Press Release
United States Attorney Brendan V. Johnson announced that a Fontana, California, man convicted of Possession of an Unregistered Firearm was sentenced on December 16, 2014, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Gregorio Aguirre, age 26, was sentenced to 24 months in custody, 3 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Aguirre pled guilty to the charge on August 22, 2014. The charge related to Aguirre knowingly being in possession of an unregistered, sawed-off Remington .22 caliber rifle when he was pulled over by the South Dakota Highway Patrol on April 12, 2014.
This case was investigated by the Unified Narcotics Enforcement Team, the South Dakota Highway Patrol, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorney Eric Kelderman prosecuted the case.
Aguirre was immediately turned over to the custody of the U.S. Marshals Service.