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Thursday 30 October 2014
Another Defendant Sentenced in Identity Theft Fraud Scheme Involving Personal Identifying Information from AT&T Customer FilesRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce that Tracy Delva, 22, of Deerfield Beach, was sentenced to 37 months in prison, followed by three years of supervised release, and was ordered to pay $27,441 in restitution.
Delva previously pled guilty to one count of access device fraud, and one count of aggravated identity theft, in violation of Title 18, United States Code, Sections 1029(a)(2) and 1028A.
On October 15, 2014, Jacqueline Nicole Lee Warrick, 26, of Miami, was sentenced to 30 months in prison, followed by three years of supervised release. Warrick pled guilty to one count of using an authorized access device and one count of aggravated identity theft, in violation of Title 18, United States Code, Sections 1029(a)(2) and 1028A.
On August 6, 2014, co-defendant Chouman Emily Syrilien, 25, of Lauderdale Lakes, was sentenced to 34 months in prison, to be followed by three years of supervised release. Syrilien pled guilty to one count of possession of 15 or more unauthorized access devices and one count of aggravated identity theft, in violation of Title 18, United States Code, Sections 1029(a)(3) and 1028A.
On October 1, 2014, Carlos Antonio Alexander, 24, of Orlando, was sentenced to 16 months in prison, followed by three years of supervised release. Alexander pled guilty to one count of using an authorized access device and one count of aggravated identity theft, in violation of Title 18, United States Code, Sections 1029(a)(2) and 1028A.
On September 3, 2014, Angel Arcos, 23, of Pompano Beach, was sentenced to time served, to be followed by four years of supervised release. As a condition of his supervised release, Arcos was subject to 180 days of home detention with electronic monitoring. Arcos pled guilty to one count of conspiracy to commit bank fraud, in violation of Title 18, United States Code, Section 1349.
On September 3, 2014, Monique Smith, 31, of Pompano Beach, pled guilty to one count of conspiracy to commit bank fraud, in violation of Title 18, United States Code, Section 1349, and one count of aggravated identity theft in violation of Title 18, United States Code, Section and 1028A. Arrington Basil Segu, 28, of Miami pled guilty to one count of access device fraud and one count of aggravated identity theft, in violation of Title 18, United States Code, Sections 1029(a)(2) and 1028A. Sentencing for Smith and Segu is scheduled for November 19, 2014.
On September 22, 2014, Shantegra La’Shae Godfrey, 23, of Deerfield Beach, pled guilty to one count of conspiracy to commit bank fraud, in violation of Title 18, United States Code, Section 1349. Sentencing is scheduled for December 3, 2014.
According to court documents, defendant Syrilien was employed by Interactive Response Technologies, Inc. (IRT) located in Margate. IRT provides staffing for call centers to handle direct sales and customer inquiries for AT&T. Syrilien unlawfully provided a co-conspirator with the personal identifying information from multiple AT&T customer files. Segu also unlawfully provided personal identifying information of numerous individuals to the co-conspirator.
Alexander, Delva, Godfrey, Smith and Warrick were added as “authorized users” on victims’ credit or debit card accounts or bank accounts to access the accounts of persons whose personal identifying information had been stolen. Once a co-conspirator’s name was added as an “authorized user,” the bank and/or credit card company was directed to mail additional debit or credit cards bearing the names of these newly added “authorized users” to their addresses or addresses under their control, all without the true account holder's knowledge or consent. The defendants used these credit and debit cards to make purchases or obtain money.
Delva and Warrick both utilized fraudulently obtained debit and credit cards that bore their names as additional “authorized users” on victims’ accounts to make both retail purchases as well as cash advances in excess of $28,000. Alexander, Smith and Godfrey made retail purchases as well as cash advances in excess of $24,000, $12,000 and $8,200, respectively.
Arcos allowed his personal information to be used to open a bank account to further the fraudulent activity. From September 16 to 18, 2013, five withdrawals totaling $13,000 were made from the fraudulent account and deposited into Arcos’ checking account.
The defendants face a maximum of 30 years in prison for the conspiracy charge, a maximum of 10 years in prison for the access device fraud charge, and a mandatory term of two years in prison for the aggravated identity theft charge.
Mr. Ferrer commended the investigative efforts of IRS-CI and FBI. The case is being prosecuted by Assistant U.S. Attorney Cynthia R. Wood.
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.
***media Advisory***Read the Press Release
ALBUQUERQUE –Justice Department and City of Albuquerque officials will make an announcement regarding the Albuquerque Police Department at a press conference to be held at 1:30 p.m. MDT, on Friday, Oct. 31, 2014, at the Albuquerque office of the U.S. Attorney for the District of New Mexico.
WHO:
Acting Assistant Attorney General Vanita Gupta, Civil Rights Division
U.S. Attorney Damon P. Martinez for the District of New Mexico
Richard M. Berry, Mayor of the City of Albuquerque
Chief Gorden E. Eden, Jr., Albuquerque Police DepartmentWHAT:
Press conference regarding Albuquerque Police DepartmentWHEN:
FRIDAY, OCT. 31, 2014, 1:30 p.m. MDTWHERE:
U.S. Attorney’s Office
10th Floor Multi-Media Room (Reception on 9th Floor)
201 Third Street NW
Albuquerque, NM 87102
OPEN PRESSNOTE: All media must present government-issued photo ID (such as driver’s license) as well as valid media credentials. Please plan on 20 to 25 foot throws for cameras. Media may begin to arrive at 1:00 p.m. MDT. Press inquiries regarding logistics should be directed to Ron Lopez at 505-224-1466.
***aviso a Los Medios De Comunicacion***Read the Press Release
ALBUQUERQUE – El Departamento de Justicia y oficiales de la Ciudad de Albuquerque daràn un anuncio referente al Departamento de Policía de Albuquerque durante una conferencia de prensa que se llevarà a cabo el viernes 31 de octubre, 2014 a la 1:30 p.m. MDT (tiempo de montaña), en la oficina de Procurador Federal por Nuevo México.
QUIÉN:
Vanita Gupta, Procuradora General Asistente Interina, División de Derechos Civiles
Damon P. Martínez, Procurador Federal por el Distrito de Nuevo México
Richard M. Berry, Alcalde de la Ciudad de Albuquerque
Gorden E. Eden, Jefe del Departamento de Policía de la Ciudad de AlbuquerqueQUÉ:
Conferencia de prensa para hacer el anuncio referente APDCUÁNDO:
VIERNES 31 DE OCTUBRE, 2014, 1:30 P.M. MDTDÓNDE:
Oficina del Procurador Federal
10˚ Piso Cuarto Multi-Media (Recepción en el 9˚ piso)
201 Tercera Calle, NW
Albuquerque, NM 87102
ABIERTO A LA PRENSANOTA: Todos los representantes de los medios de comunicación deberàn de presentar una identificación otorgada por el gobierno (tal como una licencia de manejar) así como credencial de miembro de la prensa, vigente. Representantes de los medios de comunicación pueden empezar a llegar a la 1:00 p.m. MDT. Preguntas de la prensa referentes a logística deberàn ser dirigidas a Ron López al 505-224-1466.
$555,587 Fraudulent Tax Refund Brings Federal Indictment for Madison WomanRead the Press Release
BIRMINGHAM -- A federal grand jury today indicted a Madison woman on charges related to a scheme to obtain fraudulent tax refunds that included a $555,587 federal income tax refund deposited into her bank account, announced U.S. Attorney Joyce White Vance, IRS Criminal Division Special Agent in Charge Veronica Hyman-Pillot and FBI Special Agent in Charge Richard D. Schwein Jr.
A three-count indictment filed in U.S. District Court charges ANGELIQUE B. HARRIS, 48, with theft of government property, wire fraud and money laundering.
“Combating this type of tax refund scheme is a priority of the Justice Department because it harms the individuals whose identities are misused, as well as all U.S. taxpayers who fund the U.S. Treasury," Vance said. "Stealing from the IRS is stealing from every honest citizen who works hard and pays the taxes they owe. Such criminal conduct will be prosecuted," she said.
“Refund fraud is an egregious offense that affects honest taxpayers," Hyman-Pillot said. "Individuals who participate in refund schemes are stealing from the United States Treasury for personal gain. Internal Revenue Service Criminal Investigation has a zero-tolerance policy for refund fraud," she said. "Anyone who chooses to play a role in this crime will be investigated and ultimately prosecuted.”
“This type of fraud ultimately costs us all in some way," Schwein said. "That is why the FBI will continue working closely with our partners at IRS Criminal Division to hold scam artists and fraudsters to account.”
Count One of the indictment charges that Harris, aided by others who are not named, stole U.S. Treasury refunds between February 2013 and February 2014.
Count Two charges that Harris, again aided by others, committed wire fraud on Oct. 23, 2013, by causing the IRS to transfer a fraudulent $555,587 tax refund electronically from outside of Alabama to Harris' bank account at Iberia Bank in Huntsville. According to the indictment, Harris opened the Huntsville bank account and a fraudulent tax return in the name of a couple, identified in the indictment as “P. and A. O.,” was filed. The fraudulent tax return prompted the $555,587 IRS refund.
Count Three charges Harris with money laundering for using proceeds of the wire fraud on Oct. 28, 2013, to purchase a 2013 Lexus ES350 luxury automobile from a Huntsville dealership.
The indictment seeks to have Harris forfeit proceeds of the money laundering, including the Lexus.
The maximum penalty for theft of government property and money laundering is 10 years in prison and a $250,000 fine. The maximum penalty for wire fraud is 20 years in prison and a $250,000 fine.
The IRS and FBI investigated the case, which Assistant U.S. Attorney Russell E. Penfield is prosecuting.
The public is reminded that and indictment contains only charges and a defendant is presumed innocent unless and until proven guilty.
Wednesday 29 October 2014
- Zapata National Bank Employee and Another Charged in Bank Fraud Scheme
Yonkers Man Arrested for Lying to Federal Authorities About Fake Threat Against the PresidentRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced criminal charges today against JUAN MEDINA. MEDINA faces federal charges for lying to the United States Secret Service about his responsibility for making a fake emergency call about a plot to assassinate the President of the United States. MEDINA was arrested this morning at his home in Yonkers, and was presented this afternoon in White Plains federal court before United States Magistrate Judge Judith C. McCarthy, who released him on a $25,000 personal recognizance bond secured by two co-signers.
According to a Complaint filed today in White Plains federal court:
On or about August 29, 2014, when the President of the United States was visiting Westchester County, 911 emergency operators received a phone call reporting that a former roommate of the caller (“the suspect”) was traveling to New York with AR-14 and AK-47 firearms to kill the President. The caller, who identified himself only as “Hassan,” gave law enforcement the suspect’s address in New Haven, Connecticut, and a description of the roommate’s vehicle.
Following the 911 call, dozens of federal, state, and local law enforcement were dispatched in New York and Connecticut in an attempt to locate the roommate and his vehicle. Secret Service agents arrived at the suspect’s New Haven residence and interviewed his neighbors. Based on the results of their investigation, agents guided their interagency search teams to a few neighboring towns. Hours later, officers from the Hamden Police Department identified the suspect’s vehicle in a parking lot. Secret Service agents then located and interviewed the suspect at a nearby residence. Searches of the suspect’s vehicle and the residence revealed no evidence supporting the allegations in the 911 call. The suspect, who was surprised that the Secret Service was looking for him, cooperated with law enforcement and told agents that he believed an individual named “Juan,” who was a friend of his girlfriend, was responsible for the 911 call.
On or about September 1, 2014, Secret Service agents traveled to the home of the suspect’s girlfriend in Yonkers, New York. JUAN MEDINA, the defendant, answered the door. After being informed by the Secret Service agents that they were federal agents, MEDINA acknowledged that he disliked the suspect but, in response to questioning by the Secret Service about the 911 call, MEDINA denied having made the call.
On or about September 3, 2014, JUAN MEDINA voluntarily agreed to be interviewed by the Secret Service and Yonkers police. During the interview, MEDINA again denied making the 911 call about the plot to kill the President, and he denied knowing who made the call. MEDINA provided a written statement summarizing his denial.
At the request of the Secret Service, MEDINA agreed to be interviewed again. During this interview, MEDINA admitted that he was the one who made the 911 call. MEDINA told the Secret Service that he had made the call using a pre-paid “burner” cellphone, which he later sold on the street. MEDINA said he made the call because he did not approve of the relationship between his former roommate (the suspect) and the girlfriend, and he wanted to get his former roommate in trouble.
MEDINA, 30, a resident of Yonkers, New York, is charged with one count of making false statements to federal authorities, which carries a maximum sentence of 5 years’ imprisonment. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Bharara praised the investigative efforts of the United States Secret Service and their law enforcement partners, specifically the New York State Police, the Yonkers Police Department, the Connecticut State Police, the Hamden Police Department, the New Haven Police Department, the Fairfield Police Department, the East Haven Police Department, the Westchester County Department of Public Safety, and the FBI’s Joint Terrorism Task Forces in White Plains, New York and New Haven, Connecticut.
The charges contained in the federal Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
The case is being handled by the Office’s White Plains Division. Assistant U.S. Attorney Jessica K. Feinstein is in charge of the prosecution
Medina Complaint
Williston Man Found Guilty of Felon in Possession of a FirearmRead the Press Release
BISMARCK – U.S. Attorney Timothy Q. Purdon announced that on October 29, 2014, GABRIEL LAZARO GARCIA-HERNANDEZ, a/k/a GABRIEL L. GARCIA, 54, Williston, N.D., was found guilty by a federal jury on a charge of felon in possession of a firearm and ammunition and possession of a firearm with an obliterated serial number.
On January 7, 2014, officers with the Northwest Narcotics Task Force executed a search warrant at Garcia-Hernandez’s residence in Williston, N.D. They found a small amount of marijuana, drug paraphernalia, five firearms and over 300 rounds of various brands and calibers of ammunition. One of the firearms, a .22 caliber rifle, had the serial number scratched off to the point it was illegible. The other four firearms were handguns.
Garcia-Hernandez was prohibited from possessing either a firearm or ammunition by virtue of multiple felony convictions, including 1991 New Jersey convictions for aggravated assault and armed robbery, a 1995 Florida conviction for aggravated assault with a deadly weapon, and 2003 Florida convictions for armed robbery and kidnapping.
The charge of felon in possession of a firearm and ammunition carries a statutory maximum penalty of life in federal prison and a $250,000 fine. The charge of possession of a firearm with an obliterated serial number carries a statutory maximum penalty of five years in federal prison and a $250,000 fine. Sentencing for Garcia-Hernandez has not been scheduled.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives, the Northwest Narcotics Task Force, the Williams County Sheriff’s Office, the Williston Police Department and the Federal Bureau of Investigation.
Assistant U.S. Attorney David Hagler is prosecuting the case.
Washington County Man Charged with Theft of Government PropertyRead the Press Release
PITTSBURGH - A Washington County resident has been indicted by a federal grand jury in Pittsburgh on a charge of theft of government property, United States Attorney David J. Hickton announced today.
The one-count indictment returned on October 28, named Gregory Kavalec, 68, as the sole defendant.
According to the indictment presented to the court, from on or about Oct. 3, 2013, to on or about Sept. 3, 2014, Kavalec unlawfully received property of the United States, that is, OASDI Social Security benefits in the amount of approximately $17,985.
The law provides for a maximum total sentence of not more than 10 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant. Bond has been requested at $10,000 unsecured.
Assistant United States Attorney Margaret E. Picking is prosecuting this case on behalf of the government.
The Social Security Administration-Office of Inspector General conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Van Zandt County Convicted Felon Sentenced for Federal Firearms ViolationRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas - A 27-year-old Grand Saline, Texas, man has been sentenced to federal prison for federal firearms violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
James Matthew Herring pleaded guilty on Aug. 6, 2014, to being a felon in possession of a firearm and was sentenced to 63 months in federal prison today by U.S. District Judge Leonard Davis.
According to information presented in court, on Jan. 21, 2014, Herring was stopped by a sheriff’s deputy because he matched the description of a burglary suspect. During the traffic stop, a revolver and a semi-automatic pistol were located on the ground near the car. Drug paraphernalia, cash, and methamphetamine were also found in a bag near the vehicle. Herring submitted to a search of the car, during which deputies located another revolver in the dash where the radio had been and a bag of ammunition in the trunk. Further investigation revealed Herring was a convicted felon having been found guilty of theft and evading arrest with a vehicle in Collin County, Texas. As a convicted felon, Herring is prohibited by federal law from owning or possessing firearms or ammunition. Herring was indicted by a federal grand jury on Apr. 23, 2014.
This case was prosecuted as part of Project Safe Neighborhoods, aimed at reducing gun and gang violence, deterring illegal possession of guns, ammunition and body armor, and improving the safety of residents in the Eastern District of Texas. Participants in the initiative include community members and organizations as well as federal, state and local law enforcement agencies.
This case was investigated by the ATF, the Grand Saline Police Department and the Van Zandt County Sheriff’s Office and prosecuted by Assistant U.S. Attorney Jim Noble.Utah Resident Pleads Guilty to Tax Evasion, Filing over $1.5 Million in False Claims for Refunds and Presenting $6.05 Million in Ficticious Financial InstrumentsRead the Press Release
A man from Sandy, Utah, pleaded guilty today to one count of tax evasion, five counts of filing false claims for income tax refunds and three counts of filing fictitious obligations, the Justice Department and Internal Revenue Service (IRS) announced.
Paul Ben Zaccardi, who was charged by superseding indictment on Jan. 8, was released following his guilty plea and is scheduled to be sentenced on March 11, 2015, before U.S. District Judge Tena Campbell.
According to the superseding indictment, in April 2004, Zaccardi embarked on a scheme to evade the payment of his income taxes. As part of that scheme, Zaccardi re-titled his residence so that it was not in his name and caused his business receipts to be deposited into his wife’s account.
Zaccardi also presented five separate tax returns to the IRS claiming bogus refunds totaling $1,510,251. In addition, from June 2008 to October 2011, Zaccardi presented three false and fictitious financial instruments to the IRS, the U.S. Treasury and the U.S. District Court for the District of Utah for a combined total of $6.05 million for the purported payment of his federal income tax liabilities.
Zaccardi faces a statutory maximum sentence of 25 years in prison for each conviction of submitting fictitious obligations to the United States, a statutory maximum sentence of five years in prison for each conviction of presenting false, fictitious and fraudulent claims to the United States and a statutory maximum sentence of five years in prison for the tax evasion conviction.
This case was investigated by IRS-Criminal Investigation and prosecuted by Trial Attorneys Stuart Wexler and Ryan Raybould of the Justice Department’s Tax Division.
United States Attorney and California Attorney General Collaborate to Present First in A Series of Labor Trafficking TrainingsRead the Press Release
FRESNO, Calif. — On Friday, October 24, 2014, a training aimed at combatting the serious crime of labor trafficking was held, organized by U.S. Attorney Benjamin B. Wagner in conjunction with California Attorney General Kamala Harris. The training in Fresno was the first in a series of trainings on labor trafficking planned to be held in Sacramento, Bakersfield, and other California cities.
U.S. Attorney Wagner stated: “Labor trafficking is often an invisible crime. Our goal is to train government workers, who may be at worksites for other purposes, to see the signs of forced labor and to report it. While federal and state laws exist to combat forced labor, they have no power if no one reports it.”
The training was attended by federal, state, and local workers who visit worksites as part of their duties, including employees from the U.S. Department of Labor, California’s Employment Development Department, Department of Industrial Relations, Department of Fair Employment and Housing, the Agricultural Labor Relations Board, and Fresno, Kern, and Madera Counties’ departments of Environmental Health, Public Health, and Child Protective Services.
Ronna Bright, program manager of Central Valley Against Human Trafficking introduced the topic of labor trafficking. Jamelia Hines presented her story of domestic servitude. Speakers from the FBI, Homeland Security Investigations, U.S. Department of Labor, and California’s Department of Industrial Relations presented key indicators of labor trafficking and Fresno Police Sergeant Curt Chastain told how to report the crime.
One of the speakers, Mike Prado, Resident Agent in Charge of Homeland Security Investigations in Fresno stated: “Human trafficking, including forced labor trafficking, amounts to modern day slavery and represents one of the most deplorable crimes HSI investigates. Sadly, the egregious exploitation of workers by unscrupulous individuals and businesses occurs more frequently in the Central Valley than many people realize. Our hope is that by vigorously enforcing trafficking laws and raising public awareness, we can reduce the level of exploitation and bring those responsible to justice.”
If you or anyone you know is a victim of labor trafficking, you may call the National Human Trafficking Resource Center at any time at 1 (888) 373-7888. You may also text “HELP” or “INFO” to 233733, or visit traffickingresourcecenter.org.
Undocumented Alien, Elizar Gustavo Garcia-garcia, Pleads Guilty to Illegal ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that ELIZAR GUSTAVO GARCIA-GARCIA, age 30, a citizen of Honduras, pled guilty today to a one-count Bill of Information charging him with illegal reentry of a removed alien.
According to the Bill of Information, on or about August 4, 2014, GARCIA-GARCIA was found in the United States after having been officially deported and removed on or about March 11, 2014.
GARCIA-GARCIA faces a maximum term of imprisonment of two years and a fine of $250,000, one year supervised release after imprisonment, and a $100 special assessment. U.S. District Judge Stanwood R. Duval, Jr. set sentencing for January 28, 2015.
U.S. Attorney Polite praised the work of the Department of Homeland Security/Immigration and Custom Enforcement and Removal in investigating this matter. Assistant United States Attorney Irene Gonzàlez is in charge of the prosecution.
US Department of Justice - Election Day ProgramRead the Press Release
United States Attorney Timothy Q. Purdon announced today that Assistant United States Attorney (AUSA) Rick L. Volk will lead the efforts of his Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 4, 2014, general elections. AUSA Volk serves as the District Election Officer (DEO) for the District of North Dakota, and in that capacity is responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington.
United States Attorney Purdon said, “Every citizen must be able to vote without interference or discrimination and to have that vote counted without it being stolen because of fraud. The Department of Justice will act promptly and aggressively to protect the integrity of the election process.”
The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open on election day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice.
The franchise is the cornerstone of American democracy. We all must ensure that those who are entitled to the franchise exercise it if they choose, and that those who seek to corrupt it are brought to justice. In order to respond to complaints of election fraud or voting rights abuses on November 4, 2014, and to ensure that such complaints are directed to the appropriate authorities, United States Attorney Purdon stated that AUSA/DEO Volk will be on duty in this District while the polls are open. He can be reached by the public at the following telephone numbers: 701-530-2420 or 1-888-828-8050.
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on Election Day. The FBI’s Election Crimes Coordinator for the District of North Dakota can be reached by the public at 763-569-8000.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division’s Voting Section in Washington by phone at 1-800-253-3931 or (202) 307-2767, by fax at (202) 307-3961, by email to [email protected] or by complaint form at http://www.justice.gov/crt/complaint/votintake/index.php.
United States Attorney Purdon said, “Ensuring free and fair elections depends in large part on the cooperation of the American electorate. It is imperative that those who have specific information about discrimination or election fraud make that information available immediately to my Office, the FBI, or the Civil Rights Division.”
U.S. Department of Justice Nationwide Election Day ProgramRead the Press Release
U.S. Attorney’s Office for the Western District of North Carolina Leading Local Efforts
CHARLOTTE, N.C. – U. S. Attorney Anne M. Tompkins announced today that Michael E. “Mike” Savage and Richard Edwards, Assistant United States Attorneys (AUSAs) in the Charlotte and Asheville offices of the U.S. Attorney for the Western District of North Carolina will lead the efforts of this Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 4, 2014, general elections. AUSAs Savage and Edwards have been appointed to serve as the District Election Officers (DEOs) for the Western District of North Carolina and in that capacity are responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington.
United States Attorney Tompkins said, “Every citizen must be able to vote without interference or discrimination. The Department of Justice will act promptly and aggressively to protect the integrity of the election process.”
The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open on election day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice.
The franchise is the cornerstone of American democracy. We all must ensure that those who are entitled to the franchise exercise it if they choose, and that those who seek to corrupt it are brought to justice. In order to respond to complaints of election fraud or voting rights abuses on November 4, 2014, and to ensure that such complaints are directed to the appropriate authorities, United States Attorney Tompkins stated that AUSA/DEO Savage will be on duty in the Charlotte Office and AUSA/DEO Edwards in the Asheville Office while the polls are open. They can be reached by the public at the following telephone numbers:
In Charlotte: 704-344-6222 and in Asheville: 828-271-4661.
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day. The local FBI field office can be reached by the public at 704-672-6100.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division’s Voting Section in Washington by phone at 1-800-253-3931 or (202) 307-2767, by fax at (202) 307-3961, by email to [email protected] or by complaint form at http://www.justice.gov/crt/complaint/votintake/index.php. United States Attorney Tompkins said, “Ensuring free and fair elections depends in large part on the cooperation of the American electorate. It is imperative that those who have specific information about discrimination or election fraud make that information available immediately to my Office, the FBI, or the Civil Rights Division.”U.S. Attorney's Office and Anti-Defamation League Commemorate 5th Anniversary of the Federal Hate Crimes ActRead the Press Release
BOSTON – The United States Attorney's Office and the Anti-Defamation League’s (ADL) New England Division hosted an event yesterday commemorating the 5th anniversary of the signing of the Matthew Shepard and James Byrd, Jr. Hate Crimes Prevention Act.
On Oct. 28, 2009, President Barack Obama signed this landmark legislation which greatly expanded the federal government’s ability to prosecute hate crimes. The law enables the Justice Department to prosecute crimes motivated by race, color, religion and national origin without having to show that the defendant was engaged in a federally protected activity. The Shepard-Byrd Act also empowers the Department of Justice to prosecute assaults committed because of a person’s sexual orientation, gender identity, gender or disability as hate crimes. The law also marked the first time that the words, "lesbian, gay, bisexual and transgender" appeared in the United States Code.
“For over a decade, a coalition of civil rights, religious and law enforcement leaders from across the nation persistently advocated for a law to strengthen the protections against crimes based on race, color, religion, national origin, sexual orientation and gender identity -- a law, which in a perfect union, would not be necessary,” said United State Attorney Carmen Ortiz.
The law, which was a rider to the National Defense Authorization Act of 2010, was also fiercely advocated by the families of Matthew Shepard and James Byrd, Jr. In 1998, Matthew Shepard— a 21-year-old gay college student at the University of Wyoming was robbed, tortured, tied to a fence along a country road and left to die by two men who offered him a ride home from a local bar. That same year, James Byrd Jr.—a 49-year-old African-American man living in Jasper, Texas—accepted a ride home from three men who drove him to the remote edge of town where they beat him severely, tied him by the ankles to the back of a pickup truck, and dragged him to his death.
While the men responsible for the Shepard and Byrd killings were later convicted of murder, none of them were prosecuted for committing a hate crime. At the time these murders were committed, neither Wyoming nor Texas had a hate crimes law, and existing federal hate crimes protections did not include violent acts based on the victim’s sexual orientation and only covered racial violence against those engaged in a federally protected activity, such as voting or attending school.
During his remarks yesterday, Robert Trestan, Regional Director of ADL’s New England Division, said, “In the United States bigotry cannot be outlawed, but hate crime laws demonstrate an important commitment to confront and deter criminal activity motivated by prejudice. Hate crimes continue to impact communities at a rate of almost one every hour. Today’s anniversary is an opportunity for us to increase our efforts at preventing these crimes from happening in the first place by focusing on training and outreach.”
The event also featured Mary L. Bonauto, Civil Rights Project Director at Gay & Lesbian Advocates & Defenders (GLAD). Attorney Bonauto has litigated groundbreaking cases expanding the rights of same-sex couples. Her work has been recognized with numerous awards, including most recently the 2014 MacArthur Fellowship.
Among other reflections, Ms. Bonauto shared her view on the impact of this law: “Laws affect attitudes. This law says that criminal acts committed with bias will be punished more severely because they strike beyond the individual and his or her family to a wider community.”
The Macedonia and First Church of God in Christ in Springfield is one of those communities that had been affected by bias and prejudice. On Nov. 5, 2008, hours after President Barack Obama was elected as the nation’s first black president, Thomas Gleason, Michael Jacques and Benjamin Haskell set fire to the predominantly black church.
Bishop Bryant Robinson, Jr., Pastor of the Macedonia and First Church of God in Christ also made remarks at the event. He expressed his gratitude for those who helped to bring those responsible to justice which provided “a degree of healing” to his congregation. In his message, he stated that, “we have much that we can celebrate, but we have so many more miles to journey.”
Individuals are encouraged to report incidents of hate to their local
police department, the FBI or an advocacy group.More about the Shepard-Byrd Act can be found at http://www.justice.gov/crt/about/crm/matthewshepard.php
U.S. Attorney Will Monitor Election Complaints in KansasRead the Press Release
KANSAS CITY, KAN. - A federal prosecutor will be on duty during election day to respond promptly to complaints of possible election fraud and voting rights violations in Kansas, U.S. Attorney Barry Grissom said today.
Assistant U.S. Attorney Leon Patton will be available to the public at 913-551-6730 while the polls are open on Nov. 4.“Anyone who has evidence of possible electoral corruption or voting rights abuses should call my office immediately,” Grissom said.
Grissom said he does not expect any problems during the voting, but warned that there are penalties under federal law for any efforts to fraudulently influence the outcome of the election or to improperly prevent another person from exercising the right to vote.
As the lawyer in the Kansas U.S. Attorney’s Office responsible for election matters, Patton will join other federal prosecutors across the nation as part of the election-day program of the U.S. Department of Justice. They will be responsible for overseeing the handling of complaints of election fraud and voting rights abuses in consultation with Justice Department headquarters.
The FBI’s Kansas City Field Office will also have Special Agents available to receive allegations of election fraud, intimidation, suppression, and other election abuses. The public can provide information regarding possible election crimes to the FBI’s Kansas City Field Office’s toll-free hotline, 1-855-527-2847, or email [email protected] .
Citizen complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division’s Voting Section in Washington by phone at 1-800-253-3931 or 202-307-2767, by fax at 202-307-3961, by email to [email protected], or by complaint form at http://www.justice.gov/crt/complaint/votintake/index.php.
Any questions involving state or local issues may be referred to the Elections Division of the Kansas Secretary of State’s Office at 785-296-4561 or 1-800-262-8683, or to the pertinent county election office.
Two New Jersey Residents Charged with Fatal Robbery of Ossining ManRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, George Venizelos, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and Joseph Burton, Jr., the Chief of Police of the Village of Ossining Police Department, announced the filing of a federal criminal Complaint charging ANTHONY GRECCO, 33, of Manville, New Jersey, and ANDREA BEATTY, 27, of New Brunswick, New Jersey, in connection with the fatal robbery of Ryan Ennis of Ossining, New York. BEATTY was arrested this morning and is expected to be presented later today in White Plains federal court before United States Magistrate Judge Judith C. McCarthy. GRECCO is currently detained at the Somerset County Jail in Somerville, New Jersey. It is expected that he will be presented in White Plains federal court later this week.
U.S. Attorney Preet Bharara stated: “As alleged in the Complaint, the defendants carried out a violent robbery that resulted in a brutal death. Thanks to the dogged investigative work of the FBI and the extraordinary dedication of our local partners, the defendants will have to answers for their crimes. I particularly want to thank District Attorney Janet DiFiore and her team at the Westchester County District Attorney’s Office for their assistance with this investigation.”
Assistant Director in Charge George Venizelos stated: “This murder was as violent as it was gruesome and is the most recent example of the violence drugs can cause. The impressive cooperation between the Ossining Police Department, Westchester District Attorney and federal law enforcement made today’s arrest a reality.”
Chief Joseph Burton, Jr. of the Village of Ossining Police Department stated: Chief Joseph Burton, Jr. of the Village of Ossining Police Department stated: “I would like to thank all of the agencies that helped us continue our investigation across state lines, especially the Westchester County District Attorney’s Office, the Westchester County Police Forensic Investigation Unit, the United States Attorney’s Office, the Federal Bureau of Investigation and all of our counterparts in New Jersey. I am especially proud of Detective Lieutenant William Sullivan for his leadership and the members of the Ossining Police Department Detective Division for their dedication and perseverance. Their determination and tenacious approach were critical in apprehending these suspects. This was a total team effort involving 10 law enforcement agencies from New York and New Jersey, all working together as a team, which resulted in the timely arrest of these two defendants. Hopefully this will give some closure to the victim’s family.”
According to allegations in the Complaint:
On August 27, 2014, shortly after 9:00 p.m., Ryan Ennis was found dead in an apartment in Ossining, New York. An autopsy was performed, and Ennis’s death was ruled a homicide. There was a large wound to the left side of Ennis’s neck, a large wound to the back of Ennis’s head, and additional wounds on his abdomen and upper left arm. The medical examiner determined that Ennis had been killed between 18 and 36 hours earlier.
The account history for Ennis’s cellphone shows that on August 26, 2014, between the hours of 9:37 a.m. and 7:28 p.m., there were 35 text messages between Ennis’s cellphone and a cellphone identified as belonging to GRECCO. The text messages discuss a drug transaction between Ennis and GRECCO scheduled to take place after 4:00 p.m. on August 26.
After the 7:28 p.m. message between Ennis and GRECCO on August 26, no other text messages were received by, or transmitted from Ennis’s cellphone. There was an incoming call to Ennis’s cellphone at 7:36 p.m. from GRECCO’s phone. Cellphone data shows that at the time of the 7:36 p.m. call, GRECCO’s phone was located in the vicinity of Croton Avenue, at the intersection of Routes 9 and 133, approximately half a mile from the apartment where Ennis was found dead.
On September 23, 2014, law enforcement officers interviewed GRECCO in Manville, New Jersey. During the interview, GRECCO admitted that in August he traveled to New York with another person for the purposes of robbing Ennis, to whom GRECCO had sold marijuana in the past, and that the robbery had not gone according to plan.
On October 22, 2014, law enforcement officers interviewed BEATTY in Ossining, New York. BEATTY admitted that in August 2014, she went to New York with GRECCO and another man for the purpose of committing a robbery. BEATTY knew before she made the trip that GRECCO intended to rob a man who owed him money in connection with drugs. BEATTY described the apartment complex where she drove GRECCO to commit the robbery and led officers to the apartment where Ennis was found dead.
BEATTY recalled that when GRECCO came back to her car after going into the apartment building to commit the robbery, he appeared flustered and said that the robbery had not proceeded according to plan. GRECCO also said, in effect, that “it” had been easier than he thought it would have been.
After they left the apartment complex, BEATTY drove GRECCO to a rooming house in New Jersey. Inside of the rooming house, GRECCO handed BEATTY a stack of money. She later counted it and found that it totaled $8900. GRECCO used the rooming house bathroom to shower. When he came out of the bathroom, he was carrying a garbage bag with clothing in it. GRECCO asked BEATTY if she knew where he could dispose of the clothing.
The Complaint charges GRECCO and BEATTY each with one count of Hobbs Act Robbery and one count of conspiracy to commit Hobbs Act Robbery, in violation of Title 18, United States Code, Section 1951. If convicted of the two offenses charged in the Complaint, GRECCO and BEATTY each face a combined maximum prison term of 40 years. The maximum potential sentences are prescribed by Congress and are provided for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Bharara praised the outstanding investigative work of the Ossining Police Department and the FBI’s Westchester County Violent Crimes Task Force, which is comprised of investigators from the FBI, the Westchester County Department of Public Safety, the Westchester County District Attorney’s Office, and the City of Yonkers Police Department. Mr. Bharara also thanked the following agencies for their assistance with the investigation: the FBI’s Newark Division; the Manville, New Jersey Police Department; the New Brunswick, New Jersey Police Department; the Middlesex County Prosecutor’s Office; and the Somerset County Prosecutor’s Office.
The prosecution is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys Michael Gerber and Scott Hartman are in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Grecco et al.Complaint
Grecco et al.Complaint
Two Montgomery Men Sentenced for $900K Tax Refund SchemeRead the Press Release
Montgomery, Alabama - Yesterday, two Montgomery men were sentenced for their roles in a tax refund scheme, announced U.S. Attorney George L. Beck Jr. for the Middle District of Alabama.
Edmund Lee McCall (39) was sentenced to 108 months imprisonment for conspiracy to commit wire fraud, and 24 months for aggravated identity theft. When combined with his conviction for bank and wire fraud and aggravated identity theft from a prior case, McCall will serve a total of twenty-years in prison for his financial fraud crimes. McCall’s Co-Defendant, Antonio Devon Harris (39), was sentenced to 87 months imprisonment for conspiracy to commit wire fraud and 24 months for aggravated identity theft. Both defendants’ sentences will be followed by 3 years of supervised release.
From 2010 to 2012, McCall and Harris employed a scheme to file false tax returns by obtaining the names, social security numbers, dates of birth, and other personal identifying information of unsuspecting individuals. They would use this information to create W2s with fraudulent employee and wage information and would then file fraudulent income tax returns on-line.
As part of the scheme, McCall and Harris also created a fraudulent tax preparing business. They used this business as a front to order a large number of pre-paid credit cards and had a false tax return proceeds diverted to the cards for their own use. Using this scheme, they were able to steal approximately $920,872.00 from the Internal Revenue Service. Both men were ordered to make restitution in that amount to the IRS.
This case was investigated by the United States Department of Treasury Internal Revenue Service Criminal Investigation Division, the United States Postal Inspection Service, and the United States Secret Service. The case was prosecuted by Assistant United States Attorney Denise O. Simpson.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Timothy Thomas, Former Owner of United Benefits of America, and Wife IndictedRead the Press Release
Telemarketing Company Misrepresented Health Care Benefit Plans in $15 Million Scheme That Defrauded Thousands Seeking Health Care Coverage
Timothy Thomas, 52, and his wife, Kennan Dozier Thomas, 56, of Franklin, Tenn., were indicted today on charges related to the operation of United Benefits of America, LLC, a telemarketing company that sold health benefits on behalf of various companies, announced United States Attorney David Rivera.
Specifically, Timothy Thomas was indicted on charges of wire fraud, mail fraud, money laundering, and criminal contempt. Also indicted was Thomas’ wife, Kennan Dozier Thomas, who faces charges of money laundering and criminal contempt. The contempt charges are based on the Thomas’ transfer of funds, in violation of an order freezing assets that was issued by the U.S. District Court for the Middle District of Tennessee in a related case. Thomas and his wife had been prohibited by the U.S. District Court from making such transfers.
“Schemes such as this, that target individuals who so desperately need health insurance, are particularly egregious and the U.S. Attorney’s Office and our law enforcement partners will direct all necessary resources to thoroughly investigate and bring justice to those who would inflict such harm and leave such a vulnerable group in the wake of their greed,” said U.S. Attorney David Rivera.
According to the indictment, from 2007 through August 2010, Timothy Thomas operated United Benefits of America, LLC (also known as Health Care America and United States Benefits, among other names). Thomas entered into contracts with various companies to market “limited benefits plans,” “association memberships,” health benefits, health insurance, or other “lifestyle benefits” sold by those companies. Thomas bundled the products of one or more of those companies into “benefits packages” which he marketed to consumers, including self-employed individuals, small business owners, and employees of small businesses.Whenever a representative of United Benefits sold a “benefits package,” Timothy Thomas received a fee or a commission for each product from the company whose product was sold. If consumers kept their “benefits package” for a certain period of time, Thomas received additional commission payments.
The majority of the “benefits packages” sold by United Benefits were actually nothing more than “association memberships,” which included a combination of “limited benefit plans,” accidental life insurance, other “lifestyle benefits,” or various products that entitled the purchaser to certain limited medical benefits or discounts on prescription drugs.
The indictment alleges that Timothy Thomas directed sales representatives to place telephone calls to individuals in an effort to sell the “benefits packages” marketed by United Benefits. The indictment further alleges that the majority of consumers contacted by United Benefits sales representatives were targeted because they did not have major medical health insurance because they had lost their jobs, or they were paying a high price for temporary continuation of group coverage, or they were not eligible for major medical health insurance because they had pre-existing medical conditions.
The indictment also alleges that Timothy Thomas was aware that United Benefits sales representatives made various misrepresentations and material omissions to consumers in order to sell the “bundled products” marketed by United Benefits, including misrepresentations that the “limited health benefits” offered by Untied Benefits were major medical health insurance or the equivalent of major medical health insurance. Sales representatives also misled consumers about the limitations on the coverage offered by United Benefits, intentionally misleading consumers into believing that purchasing a plan offered by United Benefits required the consumer to be approved or accepted, or misleading customers that there was only a limited time during which the consumer could enroll in the plans.
In February 2009, after receiving complaints that sales representatives at United Benefits were grossly misrepresenting the actual benefits of the products they were selling, the Tennessee Department of Insurance searched the United Benefits office and seized voluminous materials and records. In April and May 2009 WSMV-TV in Nashville, Tenn., aired a series of news stories about United Benefits, during which they interviewed consumers complaining that they had been misled by United Benefits employees and televised footage from a hidden camera in which United Benefits employees were seen and heard discussing misleading sales practices.
According to the indictment, Timothy Thomas set up an employee disciplinary system designed to “fine” employees when they made misrepresentations. However, Thomas often waived or reduced the fines, and the “fined” employees continued to receive a monetary bonus for their sales tactics. Moreover, the indictment alleges that when Thomas learned about specific misrepresentations by sales representatives, he took no action to inform consumers or to reverse the sales. In fact, Thomas rarely fired employees for making misrepresentations or material omissions.
According to the indictment, Thomas, in an effort to deceive regulatory authorities, consumers, and companies with whom United Benefits contracted, used other corporate names and caused other individuals to be named as officers in company documents in order to conceal his ownership and control of the company.
The indictment also alleges that Thomas received payments of approximately $15.7 million for the plans offered by United Benefits.
On August 3, 2010, the Federal Trade Commission and the State of Tennessee filed a complaint against United Benefits and Timothy Thomas and Keenan Dozier Thomas, in the United States District Court for the Middle District of Tennessee. On August 4, 2010, a United States District Court judge issued a Temporary Restraining Order that prohibited Timothy Thomas and Kennan Dozier Thomas from transferring any funds owned or controlled by them or by United Benefits. The prohibition applied to any assets of Timothy Thomas, Kennan Dozier Thomas, or United Benefits at the time of the issuance of the order, or any funds which were assets derived from the conduct described in the complaint and obtained after the time of issuance of the order.
According to the indictment, the day following the issuance of the order, Timothy Thomas violated the Court’s order by withdrawing funds totaling over $124,000 from bank accounts he and his wife controlled. Also in violation of the order, on August 6, 2010, Timothy Thomas and Kennan Dozier Thomas asked a friend to deposit into her bank account, approximately $411,000 in commission payments that Timothy Thomas had received through his operation of United Benefits, in order to conceal those funds.
"Deceptively marketing medical discount plans as major medical health insurance creates traumatic hardships for victims,” said A. Todd McCall, Special Agent in Charge of the Memphis Division of the FBI. “Today's indictment represents the collaborative efforts of our law enforcement partners and our commitment to seek justice for victims."
“The U. S. Postal Inspection Service is committed to protecting the American Public from individuals who make misrepresentations to prey on innocent victims,” said Thomas L. Noyes II, Inspector in Charge of the Charlotte Division of the U.S. Postal Inspection Service. “The collaborative effort between federal agencies in this case is an excellent example of the partnerships that focus on bringing those to justice who violate the law and defraud hardworking citizens.”
If convicted, Timothy Thomas faces up to 20 years in prison and a fine of $250,000 on each count of wire fraud and mail fraud, and 20 years in prison and a fine of $500,000 on each count of money laundering. Kennan Dozier Thomas faces up to 20 years in prison and a fine of $500,000 on the one count of money laundering in which she is charged. The court retains discretion as to the penalty to be imposed if they are convicted of criminal contempt.
This case was investigated by the Federal Bureau of Investigation, the United States Postal Inspection Service, and the U.S. Department of Labor Employee Benefits Security Administration’s Health Benefits Security Project (HBSP) which focuses on egregious and corrupt health arrangements. The project further seeks to identify potential criminal violations and to assist the victims of crimes related to employee health benefits.
Assistant United States Attorneys Kathryn W. Booth and William F. Abely represent the government.
An indictment is merely an accusation and is not evidence of guilt. Defendants are presumed innocent unless and until proven guilty in a court of law.
Thurmont Heroin Dealer Sentenced to 7 Years in PrisonRead the Press Release
Sold Heroin to a Customer Resulting in the Man’s Death
Baltimore, Maryland – U.S. District Judge William D. Quarles, Jr. sentenced Kathleen Elizabeth Myers, age 21, of Thurmont, Maryland today to 7 years in prison followed by three years of supervised release for conspiracy to distribute and possess with intent to distribute heroin. Judge Quarles also ordered Myers to pay more than $7,000 in restitution, to cover the medical costs and funeral expenses of the person who died after Myers and a co-defendant supplied him with heroin.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; Frederick County Sheriff Charles A. “Chuck” Jenkins; and Colonel Marcus L. Brown, Superintendent of the Maryland State Police.
According to Myers’ plea agreement, between July 2012 and June 2014, Myers conspired with others, including Jacob Alexander Powell, to distribute heroin in western Maryland. Myers and Powel regularly obtained heroin from sources in Baltimore and re-sold that heroin to customers in and around Thurmont and Emmitsburg, Maryland.On June 11, 2013, Myers and Powell sold heroin to Derek Dunsmore in Emmitsburg. The heroin Myers and Powell sold caused the death of Derek Dunsmore.
Jacob Powell, age 21, of Thurmont, previously pleaded guilty to the same charge and faces a maximum penalty of 20 years in prison. Judge Quarles has scheduled his sentencing for November 4, 2014, at 1:00 p.m.
United States Attorney Rod J. Rosenstein praised the DEA, Frederick County Sheriff’s Office, Maryland State Police and the Frederick County Narcotics Task Force for their work in the investigation and thanked Special Assistant U.S. Attorney Anthony J. Enright and Assistant U.S. Attorney Robert R. Harding, who prosecuted the case.Three Sentenced in Fraudulent Mississippi Driver’s License CaseRead the Press Release
Hattiesburg, Miss – Yolanda Jean Perkins, 48, of Laurel, a former driver’s license examiner for the Mississippi Department of Public Safety; Lorena Gomez, 33, of Laurel; and Elmer Enrique Martinez-Velasquez a/k/a Jose Martell Rivera, 32, an illegal alien from Mexico residing in Albertville, Alabama, were sentenced in U.S. District Court on October 27, 2014 for conspiracy to commit ID theft, United States Attorney Gregory K. Davis announced today.
Perkins was sentenced to 24 months in prison followed by three years of supervised release. She was also ordered to pay a $5000 fine and $2500 in restitution. Perkins was involved in the sale of 167 fraudulent driver’s licenses or ID cards.
Gomez was sentenced to 39 months in prison followed by three years of supervised release. She was also ordered to pay a $5000 fine and $2500 in restitution.
Martinez-Velasquez was sentenced to 24 months in prison followed by three years of supervised release and $2500 in restitution. He was further ordered to be turned over to immigration authorities after his term of imprisonment for possible deportation.
The defendants were ordered to forfeit $4,928 in U.S. currency and one HP Laptop computer. A money judgment in the amount of $28,850 was also ordered.
“HSI will continue to work with MBI and our other law enforcement partners to investigate these kinds of cases and ensure that our national security is not compromised by illegal activities like this,” said Special Agent in Charge Raymond Parmer with Homeland Security Investigations. Parmer oversees a five-state area which includes Mississippi, Alabama, Arkansas, Louisiana, and Tennessee.
The case was investigated by Homeland Security Investigations and the Mississippi Bureau of Investigation. It was prosecuted by Assistant United States Attorney Annette Williams.If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
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Help us combat the proliferation of sexual exploitation crimes against children.
Three Dover Men Indicted for Conspiracy Involving Straw Purchase of HandgunRead the Press Release
WILMINGTON, Del. – Charles M. Oberly III, United States Attorney for the District of Delaware, announced that an Indictment has been handed down by a federal grand jury charging Shakil Miller (age 21), Jon Henry (age 20), and Corey Harris (age 19), all of Dover, with Conspiracy to Provide False Information to a Federal Firearms Licensee, in violation of Title 18 U.S.C. Section 371, and separately charging Miller with Providing False Information to a Federal Firearms Licensee, in violation of Title 18 U.S.C. Section 922(a)(6) and 924(a)(2). The defendants face up to 5 years imprisonment and a maximum of $250,000 fine on the Conspiracy count, and Miller faces 10 years imprisonment and a $250,000 fine on the Providing False Information count.
The Indictment alleges that Miller traveled with Henry and Harris to Milford Trade and Exchange to purchase a firearm for others. After Harris picked out a particular handgun for purchase, Miller filled out an ATF Form 4473 for that firearm and falsely represented that he was the actual transferee or buyer of the handgun. In reality, Miller was purchasing the firearm, at Harris’ request, for others. Miller is alleged to have acted as a straw purchaser. The prosecution of straw purchasers and those with whom they allegedly conspire is an important step in keeping firearms out of the hands of those who will not or cannot lawfully purchase firearms.
This case is the result of an investigation conducted by the Dover Police Department and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. The prosecution is being handled by Assistant United States Attorney Jennifer K. Welsh.
The charges in the Indictment are only allegations. The defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Texas Oil Company to Pay $1.6 Million Civil Penalty in Settlement of Alleged Oil Spill and Spill Prevention ViolationsRead the Press Release
Superior Crude Gathering Inc. (Superior Crude) has agreed to pay a civil penalty for alleged violations of the Clean Water Act stemming from a 2010 crude oil spill from tanks at Superior’s oil storage facility in Ingleside, Texas, the Department of Justice and the Environmental Protection Agency (EPA) announced today. Under the consent decree lodged today in federal court, Superior will pay $1.61 million to resolve the government’s claims.
The United States’ complaint, which was also filed today in the U.S. District Court for the Southern District of Texas, alleges that Superior discharged at least 2,200 barrels (or 92,400 gallons) of crude oil in violation of Section 311 of the Clean Water Act. The oil discharged from two tanks at the facility on Feb. 9 and 10, 2010, and crude oil flowed into an unnamed lake and wetlands near the Intracoastal Waterway and Redfish Bay. The complaint also includes related violations of the Clean Water Act’s spill prevention, control, and countermeasure regulations and spill response plan regulations.
The $1.61 million penalty is in addition to the costs incurred by Superior Crude to respond to the oil spill and to repair the tanks and containment areas. Superior Crude has ceased operations at the facility, which is located within the former Falcon Refinery.
“Operators have a responsibility to prevent oil spills and protect the public and the environment through vigilance and preparation,” said Acting Assistant Attorney General Sam Hirsch for the Justice Department’s Environment and Natural Resources Division. “This settlement underscores the consequences of failing to meet that responsibility.”
“Water resources are precious, especially in Texas,” said EPA Regional Administrator Ron Curry. “We rely on businesses to be effective partners in protecting these resources, and to take responsibility when their operations harm the environment.”
The Clean Water Act makes it unlawful to discharge oil or hazardous substances into or upon the navigable waters of the United States or adjoining shorelines in quantities that may be harmful to the environment or public health. The penalty paid for this spill will be deposited in the federal Oil Spill Liability Trust Fund managed by the National Pollution Fund Center. The Oil Spill Liability Trust Fund is used to pay for federal response activities and to compensate for damages when there is a discharge or substantial threat of discharge of oil or hazardous substances to waters of the United States or adjoining shorelines.
The proposed consent decree, lodged in the Southern District of Texas, is subject to a 30-day public comment period and court review and approval. A copy of the consent decree is available on the Department of Justice website.
Texas Electronics Business Sentenced for Violating Cash Reporting RequirementRead the Press Release
A Texas electronics business was ordered today to forfeit more than $1.3 million for failing to report that amount in cash transactions to the IRS, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division.
D-Tronics, a McAllen, Texas, electronics business, was sentenced today by U.S. District Judge Micaela Alvarez of the Southern District of Texas for failing to file an IRS Form 8300 corresponding to a cash transaction of more than $10,000. In addition, in accordance with its plea agreement, D-Tronics will forfeit more than $1.350 million, which represents the amount of unreported currency. The forfeiture is among the highest against a trade or business for violating the Form 8300 filing requirement. A Form 8300 filing is required to be filed when anyone engaged in trade or business receives more than $10,000 in U.S. currency in one or two or more related sales transactions.
In addition, Pedro Diaz, 45, the owner of D-Tronics, was sentenced to one year of probation for failing to supply information concerning foreign bank accounts in which he had an interest. Both Diaz and D-Tronics entered guilty pleas in July 2014.
The case was investigated by the Internal Revenue Service – Criminal Investigation and prosecuted by Trial Attorney Keith Liddle in the Money Laundering and Bank Integrity Unit of the Criminal Division’s Asset Forfeiture and Money Laundering Section.
Tax Preparer Sentenced to 33 Months in Prison for Filing A False Tax Return and Lying on Loan ApplicationRead the Press Release
CHARLOTTE, N.C. – Nkhenge Shropshire, a/k/a Konjay Shropshire, 41, of Charlotte, was sentenced to 33 months in prison today for filing false tax returns and lying on a loan application, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. Chief U.S. District Judge Frank D. Whitney ordered Shropshire to serve five years under court supervision following her prison term and to pay $582,933 as restitution to IRS and $14,309.17 and $25,000 respectively to two credit unions she defrauded.
U.S. Attorney Tompkins is joined by Thomas J. Holloman III, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division (IRS-CI) in making today’s announcement.
According to filed court documents and today’s sentencing hearing, Shropshire was the owner of “Tax Connections” a Charlotte tax return preparation business. Court records indicate that from 2009 to 2011, Shropshire aided and assisted in the preparation of more than 600 tax returns for clients which were e-filed with the IRS. According to court records, many of the tax returns prepared by Shropshire falsely included Schedule C losses and refundable education credits, which decreased the clients’ tax liabilities, resulting in larger tax refunds and false Earned Income Tax Credits. The tax loss associated with the false education credits is more than $580,000. Court records show that Shropshire directed that many of the fraudulent tax refunds be deposited into a business bank account she controlled, and kept a portion of the refund as payment for her services. On some occasions, according to court records, Shropshire did not provide her clients with copies of their completed tax returns or gave them incomplete copies, so clients would not know their returns contained false information.
According to filed court documents, in October 2011 Shropshire applied for membership with a federal credit union using a different social security number and home address. On the same day, court records show, Shropshire also filled out an application for a car loan with the same credit union for the purchase of a 2008 Mercedes CLS 550 vehicle. On that car loan application, Shropshire listed a false employer, false annual salary and false job title. Court records also show that Shropshire was approved for a $40,075 car loan but only made two payments totaling $2,508.50. Shropshire pleaded guilty to conspiracy to defraud the IRS and to making false statements on a loan application in October 2013.
In handing down Shropshire’s sentence today, Judge Whitney noted that we have a “system based on truth” and “self-reporting,” and that we rely on individuals filing taxes to be honest and even more on return preparers. Judge Whitney also stated that the victims in this case are honest tax payers and that this crime victimizes every single honest taxpayer.
Shropshire will be ordered to self-report to the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
The investigation was handled by IRS-CI. Assistant United States Attorney Jenny G. Sugar of the U.S. Attorney’s Office in Charlotte prosecuted the case.
St. Petersburg Man Sentenced to over 15 Years in Federal Prison for Unlawfully Possessing Firearms and AmmunitionRead the Press Release
Tampa, FL – U.S. District Judge James S. Moody, Jr. today sentenced Cordey Jermel Adams (34, St. Petersburg) to 15 years and eight months in federal prison for being a felon in possession of firearms and ammunition. Adams pleaded guilty on November 25, 2013.
According to court documents, on December 12, 2012, law enforcement officers executed a search warrant at Adams’s residence in St. Petersburg. During the search, they found approximately five to six pounds of marijuana, digital scales, a video surveillance system, and a total of $3,709.00 in cash. Also inside the residence, officers discovered three loaded firearms. At the time of the incident, Adams was a previously convicted felon, including multiple drug distribution offenses, and was therefore prohibited from possessing firearms or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the St. Petersburg Police Department. It was prosecuted by Assistant United States Attorney Joseph W. Swanson.
This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” Program - a nationwide, gun-violence reduction strategy. United States Attorney A. Lee Bentley, III, along with Trevor Velinor, Acting Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials. It is also a part of ATF’s Frontline Strategy to prevent violent crime in communities.
Second Kirtland Woman Pleads Guilty to Second Degree Murder ChargeRead the Press Release
ALBUQUERQUE – Mariah Benally, 22, of Kirtland, N.M., pleaded guilty this morning to a second degree murder charge. One of her co-defendants, LaSheena Jacquez, 27, also of Kirtland, N.M., entered a similar guilty plea earlier this month.
Mariah Benally and Jacquez are two of five individuals, all of whom are enrolled members of the Navajo Nation, who were indicted in Jan. 2014, on criminal charges arising from the kidnapping and brutal murder of a 28-year-old Navajo woman on Oct. 23, 2013. The five defendants previously had been arrested in Dec. 2013, on a criminal complaint that was filed after law enforcement authorities received information that the victim, who had been reported as missing in Nov. 2013, had been murdered. The victim’s remains were recovered on Dec. 9, 2013.
In addition to charging Mariah Benally and Jacquez, the four-count indictment also charged Patrick Benally, 26, of Kirtland, and Justin Benally, 26, and Scott Thompson, 28, both of Farmington, N.M., with first degree murder, kidnapping, and conspiracy to kidnap. It also charged Mariah Benally, Jacquez, Justin Benally and Thompson with harboring Patrick Benally to prevent his arrest on a warrant for an unrelated crime. The indictment alleges that the crimes charged occurred on the Navajo Indian Reservation within San Juan County, N.M.
This morning, Mariah Benally pled guilty to a felony information charging her with second degree murder. In entering her guilty plea, Mariah Benally admitted causing the victim’s death by throwing rocks at her, and aiding and abetting others who also caused the victim’s death. Benally admitted throwing rocks at the victim after the victim had been repeatedly stabbed by three of her co-defendants and thrown off a cliff by one of the co-defendants. Mariah Benally also admitted aiding her co-defendants in restraining the victim and transporting her to the murder site, and destroying evidence of their crimes.
On Oct. 16, 2014, Jacquez pled guilty to a second degree murder charge, and admitted causing the victim’s death on Oct. 23, 2013, by repeatedly stabbing the victim with a knife, throwing rocks at the victim, and aiding and abetting others who also caused the victim’s death. Jacquez also admitted that she destroyed evidence and aided and abetted others in the destruction of evidence in an effort to evade prosecution.
Mariah Benally and Jacquez have been in federal custody since they were arrested and remain detained pending their sentencing hearings, which have yet to be scheduled. Each faces a maximum statutory penalty of life imprisonment.
The women’s three co-defendants have entered not guilty pleas to the indictment and are detained pending trial, which has not yet been scheduled. If convicted of the charges in the indictment, each faces a maximum statutory penalty of life imprisonment. Charges in indictments are merely accusations and defendants are presumed innocent unless convicted in a court of law.
This case was investigated by the Farmington office of the FBI, the Farmington Police Department and the San Juan County Sheriff’s Office. Assistant U.S. Attorneys Niki Tapia-Brito and David Adams are prosecuting the case.Schenectady Man Pleads Guilty to Firearms ChargeRead the Press Release
ALBANY, NEW YORK – JAMES A. WAGONER, 40, of Schenectady, New York, pled guilty to making a false statement in the acquisition of a firearm before United States District Court Judge Mae A. D’Agostino, on October 14, 2014, announced United States Attorney Richard S. Hartunian and James S. Higgins, Acting Special Agent-in-Charge of the New York Field Division of the United States Bureau of Alcohol, Tobacco, and Firearms. Wagoner faces up to ten years in prison, a fine of up to $250,000, and supervised release of up to three years. Sentencing is scheduled for February 12, 2015 in Albany, New York.
As part of his guilty plea, WAGONER admitted that in October 2009 he made a false statement to a federally licensed firearm dealer when he purchased a rifle in Albany, New York. Specifically, on an ATF 4473 Firearms Transaction Record, in response to a question about whether he was subject to a court order prohibiting him from harassing, stalking, or threatening his child or an intimate partner or the child of an intimate partner, he answered, no. At the time, he was subject to such an order. Federal firearms laws prohibit people subject to such orders from possessing firearms.
The case was investigated by the United States Bureau of Alcohol, Tobacco, and Firearms (ATF), Albany, NY. The case was prosecuted by Assistant United States Attorney Edward P. Grogan.
Rochester Man Sentenced for Passport FraudRead the Press Release
ROCHESTER, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that Leroy Malcolm, 45, of Rochester, NY, who was convicted of passport application fraud, was sentenced to two years of probation by U.S. District Judge Charles J. Siragusa.
Assistant U.S. Attorney Tiffany H. Lee, who is handling the case, stated that in July 2004, Malcolm, a Jamaican national, submitted a United States passport application to the Rochester City Clerk’s Office. The defendant used his own picture but the name, date of birth, and place of birth of another individual.
The sentencing is the culmination of an investigation on the part of the United States Department of State, Diplomatic Security Service, under the direction of William Ferrari.Rochester Man Sentenced for His Role in Oxycontin ConspiracyRead the Press Release
ROCHESTER, N.Y. – U.S. Attorney William J. Hochul, Jr. announced today that James Marsh, 73, of Rochester, NY, who was convicted following a jury trial of conspiring to distribute OxyContin, was sentenced by U.S. District Judge David G. Larimer to five years in prison and ordered to pay restitution of $34,033.61 to the Medicaid program.
Assistant U.S. Attorneys Charles Moynihan and John Field, who handled the case, stated that Marsh conspired with co-defendants Shantel Williams, Jimmie Lee Simmons, Anestacia Wilson, Betina Wilson, and Stacy Clark, to obtain OxyContin through fraudulent prescriptions. Marsh paid Shantel Williams approximately $800 for each fraudulent prescription that was written using the names and Medicaid information of fake patients Anestacia Wilson, Bettina Wilson, Stacy Clark, and others. The defendant escorted the fake patients to various local pharmacies, where they would have the fraudulent prescriptions filled. Marsh would then distribute the OxyContin to his customers.
All defendants in the case have been convicted.
The sentencing is the culmination of an investigation on the part of Special Agents of the Drug Enforcement Administration under the direction of James J. Hunt, Acting Special Agent in Charge of the New York Division, and the Office of the New York State Attorney General, Medicaid Fraud Control Unit, under the direction of Acting Director Amy Held.Ring of Union Members Charged with Conspiring to Steal from Health FundRead the Press Release
ROCHESTER, N.Y.--U.S. Attorney William J. Hochul, Jr. today that eight present and former members of Plumbers & Steamfitters Local 267 have been charged by criminal complaint with conspiring to steal funds belonging to their union-sponsored health care plan. The charges carry a maximum sentence of five years in prison, a fine of $250,000, or both.
Assistant U.S. Attorney John J. Field, who is handling the case, stated that according to the complaint, Paul Harnas, Jr., Brandon Wilson, Cory Bennett, Eric Field, Jamie Davenport, Jared Stevens, Chris Beach and Gregory Haller, all of the Southern Tier area of NY, schemed to defraud their union health care plan by submitting fraudulent claims for reimbursement of purported dental work. The fraudulent claims were supported by fictitious receipts that Paul Harnas, Jr. prepared and sold to the other defendants for approximately $100 per receipt. From June 2011 to April 2013, the defendants submitted at least 28 fraudulent claims to obtain more than $65,000 from the health care plan.
The criminal complaint is the culmination of an investigation by Special Agents the U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, under the Direction of Special Agent-in-Charge Cheryl Garcia of the New York Regional Office, and the New York State Department of Financial Services, Frauds Bureau, under the direction of Superintendent Benjamin Lawsky.
Paul Harnas, Jr. made an initial appearance on October 28, 2014 before U.S. Magistrate Judge Payson and was released. Harnas and the remaining defendants will be in court on November 4, 2014 at 9:00 a.m. before Judge Payson.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.Prisoners Plead Guilty to Assault ChargeRead the Press Release
ALEXANDRIA, La. –United States Attorney Stephanie A. Finley announced today that two prisoners at the U.S. Penitentiary in Pollock, La., pleaded guilty to beating a fellow inmate resulting in traumatic brain injury.
Jeffrey Lovell, 32, and Christopher Simpson, 36, pleaded guilty before U.S. District Judge Dee D. Drell to one count of assault resulting in serious bodily injury. According to evidence presented at the guilty plea, video cameras captured Lovell and Simpson assaulting a third inmate outside of his cell on June 11, 2013 at the U.S. Penitentiary in Pollock. The inmate was struck around his head and torso repeatedly. The prisoner was later brought to a hospital where he was treated for traumatic brain injury, which required a feeding tube.
The defendants face up to 10 years in prison, three years of supervised release, and a $250,000 fine. A sentencing date of February 13, 2015 was set.
The FBI and the U.S. Bureau of Prisons conducted the investigation. Assistant U.S. Attorney Seth D. Reeg prosecuted the case.
Pocatello Man Indicted on Assault with A Dangerous Weapon and Using A Firearm in the Commission of A Violent CrimeRead the Press Release
Defendant Under the Influence of a Controlled Substance While Illegally Possessing a Firearm
POCATELLO - Raymond Hye Broncho, 39, of Fort Hall, Idaho, was indicted yesterday by the federal grand jury on two counts of assault on an officer, three counts of assault with a dangerous weapon, two counts of illegal possession of a firearm by a drug user, one count of using firearms in the commission of violent crimes, and forfeiture of the SKS assault rifle and the .22 caliber rifle involved in these crimes, U.S. Attorney Wendy J. Olson announced. An arraignment date has not been set.
According to the indictment, on September 20, 2014, Broncho pointed a rifle and fired multiple shots at officers who were responding to a report on the Fort Hall Indian Reservation. At the time of the assault, Broncho was under the influence of a controlled substance.
Assault on an officer is punishable by up to twenty years imprisonment. Assault with a dangerous weapon and unlawful possession of a firearm by a drug user are punishable by up to ten years imprisonment. The three crimes are also punishable by a $250,000 fine and three years of supervised release. Use of firearms in the commission of a violent crime is punishable by a ten year sentence, consecutive to all other sentences.
The case was investigated by the Fort Hall Police Department and the Federal Bureau of Investigation.
An indictment is a means of charging a person with criminal activity. It is not evidence. The person is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Physician and Others Sentenced in “Pill Mill” CaseRead the Press Release
DALLAS — A physician who ran a “cash only clinic” in Dallas that operated not as a legitimate medical facility, but as a place to unlawfully obtain controlled substances, and several coconspirators who operated as “dealers,” were sentenced this afternoon, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Nicolas Alfonso Padron, 55, of Garland, Texas, was sentenced by U.S. District Judge Barbara M. G. Lynn to 87 months in federal prison. He pleaded guilty in September 2013 to one count of conspiracy to unlawfully distribute a Schedule III controlled substance. Judge Lynn also ordered forfeiture on his house, two cars, a boat, and several bank accounts.
Dr. Padron and co-defendant Jose L. Martinez, 54, of Flower Mound, Texas, opened Padron Wellness Clinic (PWC), located at 1000 Emerald Isle Drive in Dallas in Fall 2010. PWC operated as a “pill mill,” or place to unlawfully obtain controlled substances, such as hydrocodone. Martinez was convicted at trial in February 2014 on one count of conspiracy to unlawfully distribute controlled substances and is awaiting sentencing. He faces a maximum statutory penalty of 10 years in federal prison, a $250,000 fine and restitution.
Today, other defendants who were convicted for their roles in the conspiracy were also sentenced:
Josephis Austin, 60, of Dallas was sentenced to 84 months;
Patricia A. Bryant, 60, of Dallas, was sentenced to 54 months;
Dennis J. Wade, 36, of Dallas, was sentenced to 21 months.
Austin and Bryant were each convicted at trial in February 2014 on one count of conspiracy to distribute controlled substances unlawfully. Wade and Allen C. Burkins, Jr., 43, of Dallas, each pleaded guilty earlier this year to the same offense. Burkins is scheduled to be sentenced on December 19, 2014.
All four were “dealers” who would recruit “patients,” often from homeless shelters, and drive them in groups to PWC. The dealers would typically escort the patients into the clinic, coordinate with Martinez, and pay cash for the office visits. Sometimes, Dr. Padron would see two or more patients at a time in the examination room. Patient visits were short and patients would normally leave with a 30-day prescription of 120 units (pills) of hydrocodone and 30-90 units of alprazolam. Dr. Padron diagnosed the majority of his patients with lower back pain and anxiety without regard to their true condition. For most of these patients, Dr. Padron did not prescribe or treat these “symptoms” with anything other than hydrocodone and alprazolam. Thus, the prescriptions were medically unnecessary and outside the scope of professional practice.
Once Dr. Padron issued the prescriptions, the coconspirator dealers would drive groups of patients to Urban Independent Pharmacy, located at 6300 Samuell Blvd., in Dallas, to get the prescriptions filled. Convicted co-conspirator and licensed pharmacist, Lisa Hollier, 44, of Sunnyvale, Texas, owned and operated that pharmacy. She was convicted at trial earlier this year on one count of conspiracy to distribute, unlawfully, a controlled substance and was sentenced in July 2014 to 60 months in federal prison.
At Urban Independent Pharmacy, Hollier had large amounts of hydrocodone and alprazolam in pre-filled bottles ready each day to handle the large group of dealers and their patients from PWC and other clinics. Dealers would furnish the money to pay for the narcotics, and at times, they paid Hollier directly for multiple patients’ prescriptions. After Hollier filled the prescriptions, the patients would give the dealers the pills, which they sold on the street for a profit.
Dr. Padron is currently serving a 57-month federal prison sentence following his guilty plea in September 2013, in a separate and unrelated case, to conspiracy to commit health care fraud. That conviction stems from his role as the medical director of A Medical House Calls, a physician house-call company that provided physician visits to Medicare beneficiaries in their homes, rather than in a doctor’s office. Dr. Padron was also ordered to pay nearly $9.5 million in restitution to the Centers for Medicare and Medicaid Services (CMS). Today’s sentence will run consecutive to that sentence, for a total sentence of 144 months in federal prison.
A total of 17 defendants have been convicted in this “pill mill” case. With today’s sentencings, all but two defendants, Martinez and Burkins, remain to be sentenced. A total of 14 “dealers” were convicted in the case.
The Dallas Health Care Fraud Prevention and Enforcement Action Team (HEAT) Strike Force, which includes the U.S. Department of Health and Human Services - Office of Inspector General (HHS-OIG), the FBI and the Texas Attorney General’s Medicaid Fraud Control Unit, investigated. Assistant U.S. Attorneys Kate Pfeifle and J. Nicholas Bunch prosecuted and Assistant U.S. Attorney John de la Garza is handling the forfeiture.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,000 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, the HHS’s CMS, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the HEAT Strike Force, see: www.stopmedicarefraud.gov
Pharmacist Pleads Guilty to Stealing Approximately 67,000 Doses of Prescription NarcoticsRead the Press Release
United States Attorney Andrew M. Luger today announced the guilty plea of ANISSA JEANNE SHORES, 37, to one count of Obtaining a Controlled Substance by Fraud. SHORES was charged by criminal information on October 16, 2014, for Obtaining a Controlled Substance by Fraud. She pleaded guilty on October 28, 2014, before United States District Court Judge David S. Doty.
“Pharmacist Anissa Jeanne Shores abused her position as a trusted member of the medical community by diverting significant quantities of opioid based prescription drugs,” said Dan Moren, Assistant Special Agent in Charge of the Drug Enforcement Administration. “In order to combat the threat of opioid prescription drug addiction, which has been linked to heroin abuse, it is vital that the medical industry and the state licensing boards continue to work diligently with DEA and its federal, state, and local law enforcement partners in deterring, detecting, and investigating those individuals and groups responsible for diverting prescription drugs for non- medical purposes.”
“Prescription drug abuse is both a law enforcement and public health challenge,” said U.S. Attorney Luger. “Pharmaceutical drugs taken without a prescription or a doctor’s supervision can be just as dangerous as using illegal drugs like heroin. I am grateful to the DEA and our law enforcement partners for the ongoing and successful efforts to curb prescription drug abuse in Minnesota. Working together, we are reducing illegal access to these highly addictive and potentially deadly drugs.”
According to the charges and documents filed in court, SHORES was employed at a pharmacy in Burnsville, Minn., as a full-time pharmacist responsible for maintaining inventory records of controlled substances. The inventory procedures included accounting for the pharmacy’s receipt of controlled substances in written logbooks and/or computer logs. The purpose of the inventories is to track all controlled substances to ensure that they are lawfully dispensed by prescription and not illegally diverted.
Beginning no later than 2011, SHORES began stealing Hydrocodone, Oxycodone, Carisoprodol, and Diazepam, all controlled substances, as well as Tramadol, a non-controlled substance, from the pharmacy for her own personal use. According to her guilty plea and documents filed in court, SHORES stole approximately 67,000 dosages of controlled and non-controlled substances from the pharmacy.
According to her guilty plea, SHORES falsified the pharmacy’s written and computer logs, making it appear that the pharmacy received smaller quantities of the drugs than had actually been received. SHORES then stole the quantity of controlled substances that had been omitted from the logbooks for her own use and benefit.
This investigation was conducted by the DEA, Minneapolis/St. Paul District Office, Tactical Diversion Squad (TDS). The TDS is comprised of investigators from the DEA, FBI, FDA, Hennepin County Sheriff’s Office, Washington County Sheriff’s Office, Ramsey County Sheriff’s Office, Minneapolis Police Department, and the Plymouth Police Department.
This case is being prosecuted by Assistant United States Attorney David M. Genrich.
Defendant Information:
ANISSA JEANNE SHORES, 37
Burnsville, Minn.
Convicted:
• Obtaining a Controlled Substance by Fraud, 1 count###
Oregon Armed Career Criminal Receives 15-Year Prison TermRead the Press Release
EUGENE, Ore. – Richard Gene Stephens, 43, of Linn County, Oregon, appeared before United States District Court Chief Judge Ann Aiken in Eugene yesterday and was sentenced to 15 years in prison for being an armed career criminal and for possessing a revolver that had been stolen during a burglary of a home by another felon, Mitchell Wayne Brolin.
On May 13, 2013, Albany police officers arrested Stephens after seeing him in a stolen car. A subsequent search of the vehicle revealed an overnight bag containing Stephens’ identification documents, syringes, pawn shop receipts, and a stolen revolver. When arrested, Stephens was wanted for violating his Oregon parole.
On July 2, 2014, Stephens pled guilty to being a felon in possession of a stolen firearm. Chief Judge Aiken sentenced him as an armed career criminal because he possessed the stolen revolver after having been previously convicted of robbery, two burglaries and twice delivering methamphetamine. According to court documents, in the past 24 years, Stephens has been convicted of 18 felonies, including four convictions for being a felon in possession of a firearm, and more than 20 misdemeanors.
On September 9, 2014, Brolin pled guilty to being a felon in possession of a stolen firearm and is scheduled to be sentenced on December 16, 2014, before United States District Court Judge McShane.
Stephens’ guilty plea, admissions and sentence of 15 years were part of a global plea agreement with the United States Attorney’s Office and the Linn County District Attorney’s Office. This case was investigated by the U.S. Bureau of Alcohol, Tobacco and Firearms, and the Albany Police Department. The case was prosecuted by Assistant United States Attorney Frank R. Papagni, Jr. with the assistance of Deputy District Attorney Jonathan Crow.
November 2014 ElectionsRead the Press Release
Tampa, FL - United States Attorney A. Lee Bentley, III announced today that Assistant United States Attorney (AUSA) Robert Mosakowski will lead the efforts of his Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 4, 2014 general elections. AUSA Mosakowski has been appointed to serve as the District Election Officer (DEO) for the Middle District of Florida. In that capacity, he is responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses, in consultation with Justice Department Headquarters in Washington.
United States Attorney Bentley said, “Every citizen should be free to vote without interference and to have his or her vote count, without the fear that it will be stolen because of fraud. The Department of Justice will act promptly and aggressively to protect the integrity of the electoral process.”
The Department of Justice plays an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact for the public to report possible violations on Election Day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters and provides that they can vote free from acts that intimidate or harass them. Such acts may include questioning, challenging, photographing, or videotaping voters at polling places, under the pretext of uncovering violations of federal voting rights laws. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice.
In order to respond to complaints of election fraud or voting rights abuses on November 4, 2014, and to ensure that such complaints are directed to the appropriate authorities, United States Attorney Bentley stated that AUSA/DEO Bob Mosakowski will be on duty in this District while the polls are open. Public complaints may be reported to him at (813) 274-6129.
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on Election Day. Local FBI field offices can be reached by the public at either 1-866-838-1153 (Tampa Division) or (904) 248-7000 (Jacksonville Division). Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division’s Voting Section, in Washington, by phone at 1-800-253-3931 or (202) 307-2767, by fax at (202) 307-3961, by email to [email protected] or by complaint form.
“Ensuring free and fair elections depends, in large part, on the cooperation of the American public,” said U.S. Attorney Bentley. “It is imperative that anyone with specific information about discrimination or election fraud immediately contact my Office, the FBI, or the Civil Rights Division.”
North Florida Shipyards to Pay $1 Million to Resolve False Claims AllegationsRead the Press Release
North Florida Shipyards and its president, Matt Self, will pay the United States $1 million to resolve allegations that they violated the False Claims Act by creating a front company, Ind-Mar Services Inc., in order to be awarded Coast Guard contracts that were designated for Service Disabled Veteran Owned Small Businesses (SDVOSBs), the Justice Department announced today. North Florida Shipyards has facilities in Jacksonville, Florida.
“Those who expect to do business with the government must do so fairly and honestly,” said Acting Assistant Attorney General Joyce R. Branda for the Justice Department’s Civil Division. “We will not tolerate contractors who seek to profit at the expense of our veterans and taxpayers.”
To qualify as a SDVOSB on Coast Guard ship repair contracts, a company must be operated and managed by service disabled veterans and must perform at least 51 percent of the labor. The government alleged that North Florida created Ind-Mar merely as a contracting vehicle and that North Florida performed all the work and received all the profits. The government further alleged that if the Coast Guard and the Small Business Administration (SBA) had known that Ind-Mar was nothing but a front company, the Coast Guard would not have awarded it contracts to repair five ships.
In December 2013, the SBA suspended North Florida, Matt Self, Ind-Mar and three others from all government contracting. In April 2014, North Florida and Matt Self entered into an administrative agreement with the SBA in which they admitted to having created and operated Ind-Mar in violation of its Coast Guard contracts and SBA statutes and regulations.
“Special programs to assist service disabled veterans are an important part of the SBA’s business development initiative,” said U.S. Attorney A. Lee Bentley III for the Middle District of Florida. “False claims such as this undermine the integrity of this vital program and, where found, will be vigorously pursued by our Office.”
“This settlement sends a strong message to those driven by greed to fraudulently obtain access to contracting opportunities set-aside for deserving small businesses owned and operated by service disabled veterans,” said Inspector General Peggy E. Gustafson for the SBA. “We are committed to helping ensure that only eligible service disabled veteran owned small businesses benefit from that SBA program.”
The settlement resolves allegations originally filed in a lawsuit by Robert Hallstein and Earle Yerger under the qui tam, or whistleblower provisions of the False Claims Act, which permit private individuals to sue on behalf of the government for false claims and to share in any recovery. The act also allows the government to intervene and take over the action, as it did in this case. Hallstein and Yerger will receive $180,000.
The investigation was a coordinated effort by the Civil Division, the U.S. Attorney’s Office for the Middle District of Florida, the Department of Homeland Security’s-Office of Inspector General and the SBA Office of Inspector General.
The claims resolved by the settlement are allegations only, except to the extent that North Florida and Matt Self have admitted to the conduct in their agreement with the SBA.
The case is captioned United States ex rel. Yerger, et al, v. North Florida Shipyards, et al., Case No. 3:11-cv-464J-32 MCR (M.D. Fla.).
Niagara Falls Corporation Sentenced for Violation of Clean Air ActRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y. – U.S. Attorney William J. Hochul, Jr. announced today that Tier NY, LLC, located in Niagara Falls, NY, which was convicted of negligent endangerment under the Clean Air Act, was sentenced to two years probation and a $25,000 fine by U. S. Magistrate Judge Hugh B. Scott.Judge Scott also ordered the company to make $25,000 in capital improvements, relating to environmental compliance within the first 18 months of probation. Tier was also ordered to develop and institute an environmental training program which will provide an overview of the pertinent environmental statutes and regulations, and shall be provided to all current employees within 60 days of being approved by Probation, and shall be provided to all new employees within seven days of being hired.
Assistant U.S. Attorney Aaron J. Mango, who handled the case, stated that Tier, NY, LLC is engaged in the business of cleaning tanks that once carried hazardous materials, including titanium tetrachloride. Titanium tetrachloride, when combined with water, forms hydrochloric acid gas--a hazardous air pollutant listed under the Clean Air Act.
The charges stem from an incident that occurred on June 11, 2013. Tier employees cleaned a tank that last contained titanium tetrachloride. During the cleaning process, employees introduced a caustic solution with an unverified concentration of sodium hydroxide and water into the vessel and negligently caused the release of an unknown quantity of hydrochloric acid gas. The gas then travelled to an adjacent business and placed other people in imminent danger of death or serious bodily injury.
“Today's case represents yet another example of this Office's commitment to protecting the health and safety of the community,” said U.S. Attorney Hochul.
The sentencing is the culmination of an investigation on the part of the U.S. Environmental Protection Agency, Criminal Investigation Division, under the direction of Special Agent-In-Charge, Vernesa Jones-Allen and Investigators of the New York State Department of Environmental Conservation Police, BECI, under the direction of Captain Frank Lauricella.
Niagara Falls Corporation Pleads Guilty to Violation of Clean Air ActRead the Press Release
BUFFALO, N.Y. – U.S. Attorney William J. Hochul, Jr. announced today that Tier NY, LLC, located in Niagara Falls, NY, pleaded guilty before U.S. Magistrate Judge Hugh B. Scott, to negligent endangerment under the Clean Air Act. The charge is punishable by a fine of $200,000 and a possible term of probation of up to five years.
Assistant U.S. Attorney Aaron J. Mango, who is handling the case, stated that Tier, NY, LLC is engaged in the business of cleaning tanks that once carried hazardous materials, including titanium tetrachloride. Titanium tetrachloride, when combined with water, forms hydrochloric acid gas--a hazardous air pollutant listed under the Clean Air Act.
Sentencing is scheduled for January 8, 2015 at 10:00 a.m. before Magistrate Judge Scott.
The charges stem from an incident that occurred on June 11, 2013. Tier employees cleaned a tank that last contained titanium tetrachloride. During the cleaning process, employees introduced a caustic solution with an unverified concentration of sodium hydroxide and water into the vessel and negligently caused the release of an unknown quantity of hydrochloric acid gas. The gas then travelled to an adjacent business and placed other people in imminent danger of death or serious bodily injury.
The plea is the culmination of an investigation on the part of Special Agents of the U.S. Environmental Protection Agency, Criminal Investigation Division, under the direction of Special Agent-In-Charge, Vernesa Jones-Allen and Investigators of the New York State Department of Environmental Conservation Police, BECI, under the direction of Captain Frank Lauricella.New York Attorney Convicted of Fraud and Perjury in $5 Million Advance Fee SchemeRead the Press Release
Robert Bardey, an attorney in New York, was convicted yesterday by a federal jury in Brooklyn on all four counts of the indictment, including wire fraud and perjury, for defrauding an individual entrepreneur of $5 million through, among other things, false representations about the disbursement of funds placed in his purported escrow account and then lying in a federal grand jury. Co-defendant Theodore Sweeten pleaded guilty in June 2013 to wire fraud and was sentenced to 48 months in prison in January 2014. Co-defendant Thomas Bannon pleaded guilty in June 2014 to wire fraud and will be sentenced on November 7, 2014.
The guilty verdict was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI).
“Robert Bardey had a license to practice law, but used it instead as a license to steal. Instead of protecting clients’ deposits placed in his attorney escrow account, he stole from that account. Bardey abused his position of trust and defrauded a sole investor of $5 million, and when questioned about it in a federal grand jury, he lied under oath. This conviction sends a strong message to attorneys in positions of trust that we will vigorously pursue them and bring them to justice if they use their positions to perpetrate fraud,” stated United States Attorney Lynch. Ms. Lynch expressed her grateful appreciation to the FBI, the agency responsible for leading the government’s investigation.
Bardey, together with co-defendants Bannon and Sweeten, falsely represented to the victim, among other things, that they had access to hedge funds and wealthy investors who were willing, in exchange for a substantial fee, to “lease” funds and set up bank accounts in their clients’ names that contained the leased funds. Based on this and other misrepresentations, Bardey and his co-conspirators induced the victim to invest $5 million in order to “lease” a credit line of $100 million, which in turn would enable them to generate millions of dollars in profit through special investment programs. In furtherance of that scheme, Bardey and his co-conspirators falsely represented that the victim’s funds would be held in an attorney escrow account pending confirmation of the posting of $100 million in the leased-funds account. In fact, Bardey and his co-conspirators distributed the victim’s $5 million among themselves and falsely represented that a $100 million account had been created at HSBC by sending the victim fabricated bank documents on HSBC letterhead.
When the victim discovered that the bank documents on HSBC letterhead were phony, he requested a refund of the $5 million that he had deposited into Bardey’s attorney escrow account. In response, Bardey and his co-conspirators told the victim that the money had been disbursed to the investors who created the $100 million account. In particular, Bardey concealed from the victim the fact that he had begun withdrawing the escrowed funds for his personal use on the same day that the victim had deposited the $5 million into the escrow account.
When sentenced by United States District Judge Nina Gershon, Bardey faces a sentence of up to 20 years’ imprisonment for wire fraud conspiracy and wire fraud counts and five years’ imprisonment for the perjury count.
The government’s case is being prosecuted by Assistant United States Attorneys Jack Dennehy and Marcia M. Henry.
This prosecution was the result of efforts by President Obama’s Financial Fraud Enforcement Task Force (FFETF), which was created in November 2009 to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory, and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state, and local authorities; addressing discrimination in the lending and financial markets, and conducting outreach to the public, victims, financial institutions, and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants. For more information on the task force, visit http://www.StopFraud.gov.
The Defendant:
ROBERT BARDEY
Age: 82
Residence: New York, New York
E.D.N.Y. Docket No. 12-CR-471
New Haven Man Charged with Illegal Gun PossessionRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that a federal grand jury in New Haven returned an indictment yesterday charging JEROME T. WALKER, 27, of New Haven, with possession of a firearm by a convicted felon.
As alleged in court documents, on October 14, 2014, officers from the New Haven Police Department conducted a traffic stop of WALKER, who was driving with a suspended license, in the vicinity of Norton Street and Elm Street. After initially pulling over, WALKER accelerated from the scene at high rate of speed. A short time later, New Haven and Hamden Police officers found WALKER’s vehicle parked at a residence on Warner Street in Hamden. Officers then observed WALKER walking in front of the residence and he was placed under arrest. In the vicinity, officers found a duffel bag containing a Smith and Wesson .38 caliber revolver and set of car keys belonging to the vehicle that WALKER had been driving.
Prior to that date, it is alleged that WALKER had sustained multiple felony convictions. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
If convicted, WALKER faces a maximum term of imprisonment of 10 years and a fine of up to $250,000. He has been detained since his arrest.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the New Haven Police Department and the Hamden Police Department. This case is being prosecuted by Assistant U.S. Attorneys Anthony Kaplan and Jennifer Laraia.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]New Hampshire Woman Pleads Guilty to Transportation of Stolen Property and Tax EvasionRead the Press Release
Contact: Halsey B. Frank
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Janis
F. Woods, 65, of Conway, New Hampshire pleaded guilty in U.S. District Court to interstate
transportation of stolen checks and tax evasion.According to court documents, between 2009 and 2012, Woods used her position as
bookkeeper for Grover Gundrilling, Inc., of Norway, Maine, to issue herself 169 unauthorized
checks totaling over $742,000 which she deposited into a bank account in New Hampshire.
Between 2007 and 2009, she used her position as bookkeeper for VM Foods of Conway, New
Hampshire to issue herself $220,000 in unauthorized checks. By failing to report the stolen
funds on her federal income tax returns, she evaded almost $284,000 in taxes.
Woods faces up to ten years in prison and twice the gain or loss as a fine for the interstate
transportation charge and up to five years in prison and twice the gain or loss on the tax evasion
charge. She will be sentenced after completion of a presentence investigation report by the U.S.
Probation Office.
The case was investigated by the Federal Bureau of Investigation and the Internal
Revenue Service.Mexican National Convicted of Illegal ReentryRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Tara Tighe, Public Affairs SpecialistCLARKSBURG, WEST VIRGINIA – Mexican national Julio Ruiz de los Santos, 26, was convicted of illegal reentry after authorities discovered that he was in the U.S. illegally for the third time, United States Attorney William J. Ihlenfeld, II, announced today.
Julio Ruiz de los Santos, who was previously deported twice from California to Mexico in 2007, pled guilty to one count of “Reentry of Removed Alien” after he was discovered in Morgantown, West Virginia without the consent of the Attorney General of the United States for reapplication for admission into the United States. He was sentenced to time served since September 2014 and remanded into the custody of U.S. Immigration and Customs Enforcement pending deportation.
Assistant U.S. Shawn Morgan prosecuted the case on behalf of the government.
U.S. District Judge Irene M. Keeley presided.
Mexian National Sentenced to 35 Years in Prison for Cocaine and Heroin Trafficking and Related ChargesRead the Press Release
CHARLOTTE, N.C. – On Tuesday, October 28, 2014, Chief U.S. District Judge Frank D. Whitney sentenced Molina-Sanchez, 35, of Mexico, to serve 420 months in prison on drug trafficking and firearms charges, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. A federal jury convicted Molina-Sanchez in May 2013 of conspiracy to distribute and to possess with intent to distribute at least five kilograms of cocaine and at least one kilogram of heroin, conspiracy to launder proceeds of drug trafficking, possession with intent to distribute cocaine and possession of a firearm in furtherance of drug trafficking.
U.S. Attorney Tompkins is joined in making today’s announcement by Brock D. Nicholson, Special Agent in Charge of ICE/Homeland Security Investigations (HSI) in Georgia and the Carolinas and Sheriff Kevin L. Auten of Rowan County Sheriff’s Office (RCSO).
According to filed court documents, trial evidence and today’s sentencing hearing, from 2004 to 2011, Molina-Sanchez and his conspirators obtained more than 350 kilograms of cocaine with a street value of more than $30 million from a supplier in California. Molina-Sanchez and his conspirators transported and distributed the cocaine to traffickers in North Carolina who then sold it throughout the state. Court records show that to transport the drugs without being detected, Molina-Sanchez and his conspirators hid the drugs and drug proceeds in secret car compartments. During the investigation, law enforcement found hundreds of thousands of dollars, three kilograms of cocaine, and a kilogram of heroin, all hidden in various locations within vehicles. When officers arrested Molina-Sanchez in October 2012, he was in possession of almost three ounces of cocaine, two handguns, and more than 100 rounds of ammunition, according to court records. Finally, based on evidence elicited at Molina-Sanchez’s May 2013 trial, law enforcement, post-trial, conducted a search of one of his vehicles and found a hidden compartment containing almost $50,000 in cash and three handguns.
This prosecution is part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF) that has resulted in the conviction of 14 defendants on cocaine trafficking, money laundering, and firearms charges. OCDETF is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
Molina-Sanchez has been in federal custody since October 2012. He will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
The case was investigated by HSI in Charlotte and RCSO, assisted by the Charlotte-Mecklenburg Police Department and its crime laboratory, the Iredell County Sheriff’s Office and its crime laboratory, and the North Carolina State Bureau of Investigation. The prosecution was handled by Assistant U.S. Attorney Steven R. Kaufman.
Maryland Woman Admits to Treating Patients while Fraudulently Posing as a Physician’s AssistantRead the Press Release
Used Stolen Identity to Gain Employment at a Pediatrician’s Office;
Treated 200 Patients, Including Infants, and Wrote Over 400 Prescriptions
Baltimore, Maryland - Shawna Michelle Gunter, age 37, of Annapolis, Maryland, pleaded guilty today to wire fraud and aggravated identity theft in connection with a scheme to pose as a physician’s assistant to obtain employment, during which she diagnosed and treated over 200 infants and children, and wrote over 400 prescriptions, all without a medical license.The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Nicholas DiGiulio, Office of Investigations, Office of Inspector General of the Department of Health and Human Services; and Colonel Marcus L. Brown, Superintendent of the Maryland State Police; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Colonel George F. Johnson IV, Superintendent of the Maryland Natural Resources Police.
“Shawna Michelle Gunter admitted that she fraudulently posed as a licensed physician’s assistant, treating patients and writing prescriptions, although she has no medical training,” said U.S. Attorney Rod J. Rosenstein.
According to her plea agreement, in June 2013, Gunter was a surgical assistant in a doctor’s office in Maryland. She told the doctor that she needed a $7,800 loan for emergency repairs to her septic system, when in fact she was remodeling her boyfriend’s house. Despite receiving this money, on June 21, 2013, Gunter stole a check from the doctor and forged the doctor’s signature on the check for $14,400. When confronted, she admitted the theft and was fired. These funds, totaling $22,200, have not been repaid.
Gunter searched for another job and learned that a prior acquaintance, a pediatrician who had offices in Centreville and Chestertown, Maryland, was looking for a physician’s assistant. Gunter falsely told the doctor that she had just graduated from Howard University with a degree as a physician’s assistant. Gunter faxed a false resume to the doctor. The doctor hired Gunter with the understanding that she would provide documentation of her education, Maryland physician assistant’s license and DEA certification reflecting her authority to issue prescriptions.
Gunter began work for the pediatrician as a physician’s assistant on July 5, 2013. She was immediately asked for the documentation. Knowing that she was not licensed as a physician’s assistant in Maryland, Gunter provided a forged physician’s assistant certificate bearing the license number of an actual physician’s assistant, as well as an altered copy of that individual’s DEA controlled substance registration certificate. She also provided a fabricated diploma, purportedly from Howard University.
Gunter began seeing pediatric patients without direct supervision on August 18, 2013. From August 19 to 29, Gunter diagnosed and treated over 200 infants and children, including for sick visits, ADHD follow-ups, newborn visits and routine physicals. During this time, Gunter issued over 400 prescriptions for controlled substances.
Gunter’s provision of unlicensed and unqualified medical care resulted in the pediatrician’s practice unwittingly submitting hundreds of false claims for Medicaid coverage, and the payment of $19,668.19 in fees on those false claims.
Gunter faces a maximum sentence of 20 years in prison for wire fraud; and two years in prison, consecutive to any other sentence, for aggravated identity theft. U.S. District Judge Richard D. Bennett scheduled sentencing for January 30, 2015, at 10:00 a.m.
United States Attorney Rod J. Rosenstein praised the Department of Health and Human Services Office of Inspector General, Maryland State Police, HSI and Maryland Natural Resources Police for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Tamera L. Fine, who is prosecuting the case.
Marydel Woman Pleads Guilty in Scheme to Embezzle over $1.2 Million from Her EmployerRead the Press Release
Greenbelt, Maryland - Janice McCumbie, age 45, of Marydel, Maryland, pleaded guilty today to conspiring to commit wire fraud in connection with a scheme to steal over $1.2 million from a consulting company.The plea agreement was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
According to her plea agreement, McCumbie worked for a global consulting business that served clients in various industries and had offices in Maryland and elsewhere. Clients paid large retainers to secure consulting services. The consulting company would issue refund checks to the clients in certain circumstances, including when a client’s retainer exceeded the amount of work that the consulting company actually performed or when the client made duplicate payments to the consulting company. McCumbie’s duties included coordinating client refunds.
Between June and December 2008, McCumbie caused the consulting company to issue six fraudulent refund checks totaling $121,081.22 to a co-conspirator in exchange for a share of the check proceeds.
From February 2009 to October 2013, McCumbie caused the consulting company to issue 42 false refund checks totaling $910,490.74 to defendant Leonard Smedley in exchange for a share of the check proceeds. Similarly, from October 2010 to November 2013, McCumbie caused the consulting company to issue 17 false refund checks totaling $217,695.57 to her niece, defendant Amber Gayleard, who cashed the checks and shared the proceeds with McCumbie. Smedley and Gayleard were not clients of the consulting company.
McCumbie has agreed to forfeit and pay restitution of $1,249,267.53, the loss resulting from her conduct.
McCumbie faces a maximum sentence of 20 years in prison. U.S. District Judge George J. Hazel scheduled her sentencing for January 27, 2015, at 9:30 a.m.
Leonard Smedley II, age 35, of Capitol Heights, Maryland; and Amber Gayleard, age 29, of Schuylkillhaven, Pennsylvania, previously pleaded guilty to the conspiracy and are scheduled to be sentenced on January 15 and 20, 2015, respectively, both at 9:00 a.m.
United States Attorney Rod J. Rosenstein praised the FBI for its work in the investigation and thanked Assistant United States Attorneys Leah Jo Bressack and David Salem, who are prosecuting the case.
Manhattan U.S. Attorney Obtains Temporary Restraining Order Against Outpatient Chemical Dependency Clinics Engaged in A Fraudulent Kickback SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Thomas O'Donnell, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General’s (“HHS-OIG”) New York Region, announced today that the United States has obtained a temporary restraining order (“TRO”) in Manhattan federal court against NARCO FREEDOM, INC. (“NARCO FREEDOM”), a provider of health care services including outpatient chemical dependency clinics. The TRO addresses an ongoing fraudulent kickback scheme whereby NARCO FREEDOM offers Medicaid recipients short-term housing in residences known as “three-quarter houses” or “Freedom Houses,” conditioned upon those residents attending NARCO FREEDOM’s outpatient clinics, thereby generating tens of millions of dollars in Medicaid funds for NARCO FREEDOM. The TRO enjoins NARCO FREEDOM from evicting the residents of its Freedom Houses for refusing to engage in the kickback scheme. U.S. District Judge John G. Koeltl entered the TRO today.
Manhattan U.S. Attorney Preet Bharara said: “Through its alleged scheme, Narco Freedom has both defrauded the government and profited from the exploitation of vulnerable individuals specifically when they are most in need of help. There is now a temporary restraining order in place that protects these vulnerable individuals, and this Office looks forward to obtaining further relief to remedy the alleged fraud that Narco Freedom has perpetrated.”
HHS-OIG Special Agent in Charge Thomas O'Donnell said: “The conduct displayed by Narco Freedom is another example of the damage personal greed does to our nation’s healthcare system. HHS-OIG recognizes the importance of substance abuse treatment, and will continue to ensure that those who provide those services do so in an honest fashion that complies with the law.”
As set forth in the complaint filed on October 28, 2014, in Manhattan federal court:
Since in or about 2006, NARCO FREEDOM has been engaged in a scheme to induce individuals who qualify for Medicaid, and who lack stable housing, to enroll in and attend NARCO FREEDOM’s outpatient clinics in exchange for short-term housing in residences known as “three-quarter houses,” which NARCO FREEDOM refers to as “Freedom Houses.” NARCO FREEDOM allows individuals without housing, many of whom have been recently released on parole, to reside in the Freedom Houses for approximately six to nine months, but requires all Freedom House residents to enroll in and attend its outpatient clinics, and evicts residents who do not comply. NARCO FREEDOM operates the Freedom Houses specifically in order to drive business to its outpatient clinics, and forces residents of its Freedom Houses who are already enrolled in other outpatient programs to transfer to NARCO FREEDOM’s outpatient programs, in violation of the Patients’ Rights provision of the New York State Code.
The complaint alleges that residents of the Freedom Houses are forced to sign paperwork purporting to relinquish any housing rights as well as privacy rights under the Health Care Portability and Accountability Act and other federal statutes. Staff at the Freedom Houses then monitor the residents’ attendance at outpatient programs and evict residents who do not attend all outpatient services as directed. NARCO FREEDOM obtains substantial financial gain from these outpatient services, which are funded almost entirely through Medicaid. NARCO FREEDOM also requires the Freedom House residents to direct their monthly shelter allowance provided by the New York City Human Resources Administration to NARCO FREEDOM. The Freedom Houses are the subject of numerous building code violations and resident complaints, including lack of basic sanitation and failure to curb drug use in the residences. The scheme exploits vulnerable individuals who are forced to comply with NARCO FREEDOM’s rules because they lack stable housing options.
According to the complaint, NARCO FREEDOM has subjected HHS to tens of millions of dollars in losses in Medicaid funds paid as a result of its fraudulent kickback scheme.
Mr. Bharara thanked the Office of the Inspector General at HHS-OIG for its investigative efforts and ongoing support and assistance with the case.
The case is being handled by the Office’s Civil Frauds Unit. Assistant U.S. Attorneys Kirti Vaidya Reddy and Cristine Irvin Phillips are in charge of the case.
US v. Narco Freedom Complaint_14-CV-8593
US v. Narco Freedom TRO
MS-13 Gang Member Sentenced to Life in Prison for Murder and Attempted MurderRead the Press Release
A member of the MS-13 gang has been sentenced to life in prison for his role in a gang-related murder and the attempted murder of two rival gang members in the Atlanta metropolitan area.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Sally Quillian Yates of the Northern District of Georgia, Special Agent in Charge Brock D. Nicholson of Immigration and Customs Enforcement’s Homeland Security Investigations’ (ICE HSI) Atlanta Office and Special Agent in Charge J. Britt Johnson of the FBI’s Atlanta Field Office made the announcement.
Remberto Argueta, aka Pitufo, 27, of Lilburn, Georgia was sentenced to life in prison in the Northern District of Georgia. Argueta was convicted of related charges on Nov. 22, 2013, following a three-week jury trial, of RICO conspiracy, violent crime in aid of racketeering and using a firearm to commit a crime of violence in connection with the murder of a suspected drug dealer and attempted murder of two rival gang members. Twenty-two additional defendants have been convicted of related charges as part of this case.
“Nearly two dozen MS-13 members have been convicted as a part of this investigation, wiping out the leaders and top members of an international street gang that spread violence and fear throughout the Atlanta area,” said Assistant Attorney General Caldwell. “Sentences like the one handed down today help us to put MS-13 out of business in Atlanta and throughout the United States.”
“Argueta helped MS-13 live up to its reputation as a ruthless, violent gang that spread fear throughout the community,” said U.S. Attorney Yates. “He displayed a callous disregard for human life and has fittingly earned his place behind prison walls for the remainder of his life.”
“The world will be a safer place with this defendant behind bars for the rest of his life,” said Special Agent in Charge Nicholson. “HSI is strongly committed to working with our partners at the FBI and local law enforcement agencies to identify and arrest the dangerous transnational gang members victimizing our communities.”
“This sentencing of a hardened MS-13 gang member is one of a series of convictions and sentences of members of this gang known for their violence in the northern metro Atlanta area,” said Special Agent in Charge Johnson. “While these dangerous gang members have now been neutralized, the FBI will continue to dedicate substantial investigative resources in this area to ensure that the void now created will not be filled by additional gang members or other gangs.”
According to evidence presented at trial, MS-13 is an international gang that has operated in the Atlanta area since at least 2005. The gang members claimed Gwinnett and DeKalb Counties as their home territory and used violence to defend their territory. They attacked rival gang members and committed armed robberies in furtherance of the MS-13 gang.
The evidence presented at trial showed that Argueta and other members of MS-13 planned to rob a suspected drug dealer at a hotel in April 2007. During the attempted robbery, Argueta and his fellow MS-13 members killed the suspected drug dealer, who was also armed, in a shootout. Hotel surveillance video showed one of the MS-13 members stopping to pick up the victim’s gun, which he later showed off as a trophy.
Additional evidence showed that in October 2007, Argueta and several other MS-13 members were at an apartment complex in Gwinnett County when Argueta spotted suspected rival gang members. He approached them and asked them who they “claimed” – that is, what gang they belonged to – and two of the rival gang members responded that they were members of the 18th Street gang. Argueta replied, “You’re going to die,” pulled out a handgun and started chasing and shooting at the rival gang members. During the pursuit, he shot one rival in the back and one in the hip and arm. Argueta fired several rounds during the pursuit, some of which went into the apartments of nearby residents. An elderly woman testified that one of Argueta’s bullets hit the headrest of an armchair that she had been sitting in just a few minutes earlier.
This case was investigated by ICE HSI and the FBI with assistance from the DeKalb County Police Department, Gwinnett County Police Department, and Gwinnett County Sheriff’s Office.
The case is being prosecuted by Trial Attorney Joseph K. Wheatley of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Paul R. Jones of the Northern District of Georgia.
MS-13 Gang Member Sentenced to Life in PrisonRead the Press Release
ATLANTA - Remberto Argueta, a/k/a Pitufo has been sentenced to two concurrent life sentences for his role in a gang-related murder and attempted murders in the Atlanta metropolitan area.
“Argueta helped MS-13 live up to its reputation as a ruthless, violent gang that spread fear throughout the community,” said United States Attorney Sally Quillian Yates. “He displayed a callous disregard for human life and has fittingly earned his place behind prison walls for the remainder of his life.”
“Nearly two dozen MS-13 members have been convicted as a part of this investigation, wiping out the leaders and top members of an international street gang that spread violence and fear throughout the Atlanta area,” said Assistant Attorney General Caldwell. “Sentences like the one handed down today help us to put MS-13 out of business in Atlanta and throughout the United States.”
“The world will be a safer place with this defendant behind bars for the rest of his life,” said Special Agent in Charge Brock D. Nicholson, ICE Homeland Security Investigations (HSI) in Atlanta. “HSI is strongly committed to working with our partners at the FBI and local law enforcement agencies to identify and arrest the dangerous transnational gang members victimizing our communities.”
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “This sentencing of a hardened MS-13 gang member is one of a series of convictions and sentences of members of this gang known for their violence in the northern metro Atlanta area. While these dangerous gang members have now been neutralized, the FBI will continue to dedicate substantial investigative resources in this area to ensure that the void now created will not be filled by additional gang members or other gangs.”
According to United States Attorney Yates, the charges and other information presented in court: MS-13 is an international gang that has operated in the Atlanta, Ga., area since at least 2005. The gang members staked out Gwinnett and DeKalb Counties as their home territory and used violence to defend their territory, attack rival gang members and commit armed robberies. The evidence presented at trial showed that Argueta, along with other members of MS-13, planned to rob Arpolonio Rios-Jarquin, a suspected drug dealer, at a hotel in April 2007. When Rios-Jarquin turned out to have his own gun, Argueta and his fellow MS-13 members engaged in a shootout with Rios-Jarquin that spilled outside the hotel room. Rios-Jarquin died from the multiple gunshot wounds inflicted on him. Surveillance video showed one of the MS-13 members stopped to pick up Rios-Jarquin’s weapon, which he later showed off as a trophy.
Additional evidence showed that in October 2007, Argueta and several other MS-13 members were at an apartment complex in Gwinnett County when Argueta spotted suspected rival gang members. He approached them and asked them who they “claimed”—that is, what gang they belonged to. When Christian Escobar responded that he and his friend, Jose Garcia-Barajas, were members of the rival 18th Street gang, Argueta said, “You’re going to die.” Argueta pulled out a handgun and started chasing and shooting at Escobar and Garcia-Barajas. He shot Escobar in the back and Garcia-Barajas in the hip and arm. While shooting at them, Argueta also fired shots into the apartments of nearby residents. An elderly woman testified that one of Argueta’s bullets hit the headrest of an armchair that she had been sitting in just a few minutes earlier.
Argueta, 27, of Lilburn, Ga., has been sentenced to two concurrent life sentences in prison. On November 22, 2013, after a trial lasting three weeks, a jury found Argueta guilty of RICO conspiracy involving murder, violent crime in aid of racketeering involving murder, and using a firearm to commit a crime of violence. Parole has been abolished in the federal system.
This case was investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Federal Bureau of Investigation with assistance from the DeKalb County Police Department, Gwinnett County Police Department, and Gwinnett County Sheriff’s Office.
Assistant United States Attorney Paul R. Jones and U.S. Department of Justice, Organized Crime and Gang Section Trial Attorney Joseph K. Wheatley 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/.