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1 December 2014
Extradited Canadian Man Sentenced to Jail for 5 Years for Distribution of Child PornographyRead the Press Release
Tristram J. Coffin, United States Attorney for the District of Vermont, stated that Roy Aubie, 58, of Québec, Canada, was sentenced today by U.S. District Court Judge William K. Sessions III, to 60 months in prison for the distribution of child pornography. Aubie was also sentenced to eight years of supervised release after the completion of his prison term.
According to Court records, as part of an investigation into internet-facilitated child exploitation, a detective with the South Burlington Police Department created an undercover profile on Hi5, a social networking website, in the name of “Anna,” a fictitious thirteen-year-old girl from South Burlington. On December 6, 2007, the defendant sent a message to Anna asking if he could get to know her. They corresponded on Hi5 and Yahoo! instant messenger and over email for a period of approximately fifteen months, and, during this time, the defendant initiated and engaged in sexually explicit conduct and conversation with Anna in an attempt to entice her to engage in actual sexual conduct with him. One of the ways the defendant sought to accomplish this was by “grooming” Anna, by steering her to a number of his own websites designed for sharing images and videos of child pornography. Through his websites, the defendant had created virtual communities where he encouraged other individuals to post their own homemade or otherwise produced images and videos of child pornography. Pursuant to a federal search warrant, law enforcement searched the defendant’s Yahoo! account and discovered that the defendant had emailed images and videos of child pornography to others.
On June 23, 2009, Aubie was indicted by a federal grand jury on a four-count indictment charging him with two counts of Distribution of Child Pornography and two counts of Solicitation and Promotion of Child Pornography. On June 25, 2013, the defendant was extradited to the United States and arrested upon arrival. On that date, he appeared before United States Magistrate Judge John M. Conroy who detained the defendant pending trial. Aubie pled guilty to Count One of the indictment on February 5, 2014, based in part upon an agreement that the government and the defense jointly recommend a sentence of 60 months incarceration.
This case was investigated by the South Burlington Police Department and the United States Secret Service, with the assistance of Sûreté du Québec, the provincial police agency for Québec. The United States Attorney, Tristram J. Coffin, commends those agencies for their work and international cooperation. The case was prosecuted by Assistant United States Attorneys, Nancy J. Creswell and Paul Van de Graaf. Aubie was represented by Steven Barth of the Office of the Federal Public Defender.
Eight Indicted for Conspiracy to Obstruct Investigation and Law Enforcement Effort to Capture Jamal DeanRead the Press Release
Levon Varne Dean, Sr, age 55, Evette Morris-Hernandez, age 34, Kimberly Smith, age 50, and Steffan Dean, age 53, all of Sioux City, Ingmar Hernandez, age 26 and Monica Rocha-Contreras, age 21, both of South Sioux City, Nebraska, Anna Baker, age 24, of Winnebago, Nebraska, and Esteban Hernandez, age 36, of Mercedes, Texas, all have been charged with one count of conspiracy to defraud the United States by obstructing a Federal investigation. The charges are contained in an Indictment filed on November 20, 2014, in United States District Court in Sioux City. All had previously been charged in a Complaint filed on October 31, 2014.
The Indictment alleges that, from April 29, 2013 to about September 1, 2013, Levon Varne Dean, Sr., Morris-Hernandez, Smith, Steffan Dean, Hernandez, Rocha-Contreras, and Baker, conspired to interfere with and obstruct legitimate governmental activities of the United States Department of Justice (e.g., The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the United States Marshals Service) by interfering with and obstructing the federal investigation into the events of April 29, 2013, and the federal effort to apprehend Jamal Dean. Other charges in the Indictment include False Statements, Concealing Evidence, Accessory After the Fact, and Misprision of a Felony.If convicted each faces a possible maximum sentence of up to 5 years’ imprisonment, a $250,000 fine, $100 in special assessments, and 3-years of supervised release following any imprisonment.
Levon Varne Dean, Sr., Morris-Hernandez, Smith, Steffan Dean, Rocha-Contreras, and Baker were released on bond on November 7, 2014, and Ingmar Hernandez was held without bond. Steffan Dean, Smith and Ingmar Hernandez next appearance for arraignment is December 8, 2014. Levon Dean, Sr., Smith, Rocha-Contreras, and Morris-Hernandez’s have waived personal appearance at arraignment and their next appearance for trial is set for February 5, 2015.
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As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.The case is being prosecuted as a part of Project Safe Neighborhoods, a cooperative local, state, and federal program aimed at the enhanced prosecution of gun crimes. The case was investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Homeland Security Investigations; the Tri-State Drug Task Force, the Woodbury County Sheriff’s Office; the Sioux City Police Department, the United States Marshal’s Service; the Iowa Department of Public Safety; the Nebraska Department of Public Safety; and the Woodbury County Attorney’s Office. The case is being prosecuted by Assistant United States Attorney Forde Fairchild.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 14 CR 4088.
East Hampton Man Pleads Guilty in Manhattan Federal Court to Fraudulent Sales of Purported Jackson Pollock and Willem De Kooning ArtworksRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and George Venizelos, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced today that JOHN RE, 54, of East Hampton, New York, pled guilty to one count of wire fraud in connection with his nine-year scheme to defraud art collectors who sought to acquire works by famous American artists such as Jackson Pollock and Willem De Kooning, which resulted in approximately $2.5 million in losses to victims. RE pled guilty today before U.S. District Judge P. Kevin Castel.
According to the allegations set forth in the Criminal Complaint, other documents filed in the case, and statements made at related court proceedings:
From at least March 2005 through January 2014, RE invented a false provenance, the history demonstrating an artwork’s authenticity, for dozens of paintings, sketches, and pastels that he sold to art collectors in order to extract thousands of dollars from his victims for every piece that RE sold. RE persisted in selling these artworks despite his knowledge that their provenance was falsified and despite repeated instances of de-authentication by respected appraisers and experts in the field of forensic analysis. In at least one instance, when confronted by a victim, RE resorted to threats of violence, claiming that his victim should be wary of RE’s purported connections to organized crime.
In his plea agreement, RE expressly acknowledged that he has never discovered or sold any work of art found in a home that formerly belonged to a purported acquaintance of Jackson Pollock and Willem De Kooning, as RE had falsely represented to collectors, and RE further acknowledged that he knowingly and fraudulently fabricated such a provenance for every work of art to which he previously attributed such a provenance.
RE, 54, of East Hampton, New York, pled guilty to one count of wire fraud, which carries a maximum sentence of twenty years in prison. The statutory maximum sentence is prescribed by Congress and is provided here for informational purposes, as any sentencing of the defendant will be determined by the judge. RE also agreed to forfeit $2,500,000, representing the proceeds of RE’s sales of fraudulent artworks. In connection with today’s plea, Judge Castel issued a post-indictment restraining order that effectively restricts RE’s ability to sell a submarine – the “U.S.S. Deep Quest” – pending the satisfaction of RE’s forfeiture debt. RE purchased the submarine in Texas using proceeds he obtained from the fraudulent sale of a purported Jackson Pollock painting in the course of the scheme. RE is scheduled to be sentenced by Judge Castel on April 10, 2015.
Mr. Bharara praised the outstanding efforts of the FBI, the Suffolk County District Attorney’s Office, and the Suffolk County Police Department in the investigation. Mr. Bharara also thanked the Village of East Hampton Police Department for their assistance with this case.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Andrew C. Adams is in charge of the prosecution.
Detroit Man Pleads Guilty to Access Device FraudRead the Press Release
A Detroit man pleaded guilty today to access device fraud in connection with a scheme to defraud the Internal Revenue Service, United States Attorney Barbara McQuade announced today.
McQuade was joined in the announcement by Jarod J. Koopman, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation.
Entering the guilty plea before U.S. District Judge Gershwin A. Drain was Antonio R. Lundy, 43. According to court records, from September 2011 through April 2012, Lundy obtained the home addresses and personal identification information of individuals, which was used by others to prepare and file false and fraudulent income tax returns with the IRS. The returns requested refunds, which were paid by the IRS, loaded onto Turbo Tax Visa debit cards, and mailed to the home addresses provided by Lundy.
The names on the debit cards were of individuals who were unaware that their identities were being used as part of a scheme. Lundy picked up the debit cards and used them at ATMs in the Detroit area to withdraw cash. Lundy’s cash withdrawals totaled approximately $252,000, which he knew he was not entitled to and was a part of a scheme to defraud the IRS. Overall, the scheme involved approximately 180 fraudulent returns that requested approximately $1.7 million in refunds.
“IRS-CI is committed to working with our law enforcement partners to combat identity theft. Investigating and prosecuting identity thieves who attempt to defraud the government by filing fraudulent income tax returns remains a top priority for the IRS,” said IRS Criminal Investigation Special Agent in Charge Koopman.
Lundy’s sentencing is set for April 9, 2015. The crime to which he pleaded guilty carries a maximum term of imprisonment of ten years and a fine of $250,000. In addition, Lundy will be required to pay restitution to the IRS in the amount of $251,990.
The case was investigated by special agents of the IRS-Criminal Investigation and is being prosecuted by Assistant U.S. Attorney Stephen Hiyama.
Cricket Communications, Inc. to Pay $2.1 Million for Overcharging Law Enforcement Agencies for Court-Ordered WiretapsRead the Press Release
SAN FRANCISCO – Cricket Communications, Inc., a wireless telecommunications carrier based in San Diego, California, has agreed to pay the government $2,174,432 to resolve allegations that it overcharged federal law enforcement agencies for the costs of carrying out court-ordered wiretaps and pen registers, United States Attorney Melinda Haag and the U.S. Department of Justice Office of Inspector General, Special Agent in Charge M. Elise Chawaga, announced today.
Telecommunications carriers like Cricket are authorized by statute to recover the “reasonable expenses” they incur in providing facilities or assistance in executing a court-ordered wiretap or pen register. A pen register is a device that captures call identifying information transmitted by a particular telephone line, but not the content of the communication. A joint investigation by the Office of Inspector General and the U.S. Attorney’s Office revealed that Cricket overcharged federal law enforcement agencies for executing wiretaps and pen registers from 2007 until Cricket lowered its fees in 2010. The settlement agreement resolves the United States’ civil claims against Cricket based on the overbilling.
The settlement with Cricket Communications, Inc. was the result of a coordinated effort among the United States Attorney’s Office, and the U.S. Department of Justice Office of Inspector General.
Assistant U.S. Attorney Steven J. Saltiel handled the matter on behalf of the U.S. Attorney’s Office.
Chester County Business Owner Admits to Immigration Fraud SchemeRead the Press Release
Sudhakar Majety, 46, of Spring City, PA, pleaded guilty today to four counts of visa fraud in connection with a scheme to illegally bring more than 50 workers to the United States on H-1B visas to work as IT consultants for his company Upani Consultants. Majety created a series of shell corporations and sham contracts to pretend that Upani Consultants needed the additional workers. When the workers arrived in the United States, they learned that there were no jobs for them at Upani and they were forced to search for jobs elsewhere. Some workers who could not find employment had to pay Majety additional money to keep their visas active. Majety typically charged each worker $4,000 for the visa and kept 20% of any of their earnings in the United States.
U.S. District Court Judge John R. Padova scheduled a sentencing is scheduled for February 26, 2015. Majety faces a maximum possible sentence of 40 years in prison and a $1 million fine.
The case was investigated by the U.S. Department of Labor Office of the Inspector General, the U.S. Department of State Diplomatic Security Service, and U.S. Immigration and Customs Enforcement Homeland Security Investigations and Citizenship and Immigration Services. It is being prosecuted by Assistant United States Attorney Robert J. Livermore.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Ceres Mortgage Broker Sentenced to Prison for Filing A False Tax ReturnRead the Press Release
FRESNO, Calif. — United States District Judge Lawrence J. O’Neill sentenced Maria Vega, 54, of Ceres, today to six months in prison, to be followed by six months of home confinement, for filing a false tax return, United States Attorney Benjamin B. Wagner announced.
Judge O’Neill also ordered Vega to pay $179,465 in restitution to the Internal Revenue Service. Vega has already repaid approximately $161,000 of that amount.
According to her plea agreement, Vega owned and operated Vega's Financial Services and was licensed as a broker by the California Department of Corporations. Vega earned income from working as a loan officer on mortgage transactions at Vega's Financial Services, and she also earned income as real estate agent in connection with the purchase, sale, and refinancing of residential properties. Although Vega received substantial income in tax years 2005, 2006 and 2007, she did not file federal income tax returns for tax years 2005 and 2006 until 2008. When Vega did file federal income tax returns in April 2008 for tax years 2005, 2006, and 2007, she substantially underreported both her income and tax due for those tax years. Vega reported taxable income of $0 for 2005, $21,692 for 2006, and $0 for 2007, but in fact she had substantially higher taxable income for each of these three years.
This case was the product of an investigation by the Internal Revenue Service – Criminal Investigation. Assistant United States Attorneys Kirk E. Sherriff and Michael G. Tierney prosecuted the case.
Campaign Manager Pleads Guilty to Conspiracy to Buy Votes in a Donna, Texas, School Board ElectionRead the Press Release
A campaign manager pleaded guilty today in the Southern District of Texas for conspiring with others to pay voters to vote in a Donna, Texas, school board election, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Kenneth Magidson of the Southern District of Texas. Five campaign workers have already pleaded guilty to vote-buying charges in connection with this election.
Francisco “Frankie” Garcia, 47, of Donna, Texas, pleaded guilty to one count of conspiring to buy votes and one count of vote-buying in connection with the November 2012 general election. Garcia’s sentencing hearing is scheduled for Feb. 24, 2015, before Chief Judge Ricardo H. Hinojosa of the U.S. District Court for the Southern District of Texas.
At his plea hearing, Garcia admitted that a general election was held on Nov. 6, 2012, in Donna, Texas, which included candidates for the presidential election, as well as candidates for various state, county and local offices, including members of the Donna School Board. Garcia worked as a campaign manager for four school board candidates, and he and others agreed to pay voters with cash and cocaine to vote for those candidates.
This case was investigated by the FBI and is being prosecuted by Trial Attorneys Monique Abrishami and Maria Lerner of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Leo J. Leo of the Southern District of Texas.
- Campaign Manager Pleads Guilty to Conspiracy to Buy Votes in Donna School Board Election
Buffalo Police Officer Involved in Videotaped Beating Sentenced on Civil Right ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. – U.S. Attorney William J. Hochul, Jr. announced today that John Cirulli, of Buffalo, N.Y., who was convicted of two counts of deprivation of rights under color of law, was sentenced to 12 months probation by Chief U.S. District Judge William M. Skretny.
“The law provides police officers with a substantial amount of power, including the right to deprive a person of his liberty when that person breaks the law,” said U.S. Attorney Hochul. “The law is also clear, however, that an officer may not punch and kick a suspect when he is handcuffed, or is seated in the back of a police car, and the suspect poses no danger to anyone. By engaging in that precise conduct in this case, former Officer Cirulli crossed the line from being a police officer to a criminal defendant.”
Assistant U.S. Attorneys Trini E. Ross and Jack Rogowski, who handled the case, stated that on April 19, 2014, the defendant was employed as a police officer with the Buffalo Police Department. Between 9:30 and 10:30 p.m. on April 19, 2014, the defendant and his partner pulled their unmarked police car up to a vehicle being driven by the victim and told him that he was speeding. The victim got out of his car, fled, and a foot chased ensued.
After catching up to the victim, the defendant and another officer took the victim to the ground. At one point while the victim was on the ground, Cirulli placed his knee on the victim’s upper back area.
Once the victim was handcuffed by officers and under control, the defendant struck the suspect in the head with his hand, struck the suspect in his body with his boot, and struck the suspect again in the head area with his hand. The suspect was then placed in the back seat of a Buffalo Police vehicle, where the defendant struck the suspect yet again in the face.
A person in the neighborhood happened to record on his cellular telephone some of the contact between the suspect and the police, including the portion of the contact where the defendant struck the victim while he was already secured and in handcuffs. After the defendant was told about the recording by another officer, Cirulli approached the witness and took what he thought was the witness’s cellular telephone. In fact, the telephone the witness gave to the defendant actually belonged to a friend. After determining that the cellular telephone did not have any recording of the assault incident on it, the defendant returned the telephone to the witness.
U.S. Attorney Hochul further stated “This office will not hesitate to act when civil rights allegations are brought to our attention. The public should also understand, however, that the actions of Cirulli do not in any way reflect upon the fine men and women of the Buffalo Police Department or of any other police agency, who day in and out work within the Constitution and law to protect and serve all of us.”
The sentencing is the culmination of an investigation on the part of Special Agents of Federal Bureau of Investigation, and the Buffalo Police Department, under the direction of Commissioner Daniel Derenda.
Blair County Man Sentenced to Probation with Home Detention for Filing False Tax ReturnsRead the Press Release
JOHNSTOWN, Pa. - A resident of Hollidaysburg, Pa., has been sentenced in federal court to five years probation, the first 15 months of which must be served by a condition of home confinement, and a $500,000 fine on his conviction of filing false tax returns, United States Attorney David J. Hickton announced today.
United States District Judge Kim R. Gibson imposed the sentence on Michael Herman.
According to information presented to the court, Herman filed two individual income tax returns for the calendar years 2007 and 2008, whereby he failed to report $9,873,745 in taxable income, resulting in an underpayment of $655,934 in income tax owed to the United States.
Assistant United States Attorney John J. Valkovci, Jr., prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Internal Revenue Service/Criminal Investigation for the investigation leading to the successful prosecution of Herman.
Bakersfield Resident Pleads Guilty to Growing Marijuana on Ecological ReserveRead the Press Release
FRESNO, Calif. — Cruz Soria, 29, of Bakersfield, pleaded guilty today to conspiring to manufacture, distribute and possess with intent to distribute marijuana in the Fay Canyon area of the Canebrake Ecological Reserve, United States Attorney Benjamin B. Wagner announced.
The Canebrake Ecological Reserve is located 10 miles east of Lake Isabella in northeastern Kern County. It was first inhabited in about 1000 B.C. by the Tubatulabel culture and is currently home to numerous rare and protected plants and animals, including the federally protected golden and bald eagles and peregrine falcon, the federally threatened California red-legged frog and Valley elderberry longhorn beetle, and the endangered Southwestern willow flycatcher.
In pleading guilty, Soria acknowledged he was responsible for cultivating 454 marijuana plants in the ecological reserve. Law enforcement officers arrested Soria at the grow site and seized the plants and about 12 pounds of processed marijuana. Among the plants, the officers also found several highly toxic chemicals, including Fosfuro de Zinc or zinc phosphide, a rat poison illegal to use in the United States without a license, and Furadan, an insecticide banned by the EPA for usage on crops consumed by humans. The defendant has agreed to pay $2,568 in restitution to cover the costs incurred by the High Sierra Trail Volunteer Crew to clean up the damage to the reserve caused by the marijuana grow.
Soria is scheduled for sentencing on February 9, 2015, before Senior U.S. District Judge Anthony W. Ishii. Soria faces a mandatory minimum prison term of five years and a maximum prison term of 40 years, along with a fine of up to $5 million. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case is the product of an investigation by the U.S. Forest Service, the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), California Department of Fish and Wildlife, and Kern County Sheriff’s Office. Assistant United States Attorney Karen Escobar is prosecuting the case.
28 November 2014
Week in Review – South BendRead the Press Release
South Bend, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS
- Antonio King, 35, of Elkhart, IN pled guilty to the felony offense of being a felon in possession of a firearm. The magistrate judge is recommending that the district court accept the tendered guilty plea. Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by Bureau of Alcohol, Tobacco, Firearms and Explosives. Sentencing has been set for March 4, 2014. This case is being prosecuted by Assistant United States Attorney Donald Schmid.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS
- Jeffrey Miller, 46, of Osceola, IN was sentenced to 135 months imprisonment, 2 years supervised release and ordered to pay $1, 086,222.90 in restitution after pleading guilty to the felony offenses of interstate transportation of stolen goods and money laundering. According to documents filed in this case, from approximately June 2012 through January 2014, the defendant stole copper wire from his former employer, an RV manufacturer located in Elkhart, Indiana. Miller then sold the copper to scrapyards after transporting the copper wire across the state line from Indiana to Michigan locations. The defendant used these illegal funds to gamble at various casinos. The defendant deposited cash into his bank account when he won at the casino because then he was able to justify to the bank where the cash came from. The defendant intentionally avoided putting money from his sells of stolen copper wire directly into his bank accounts because he did not want to justify the source of the cash. The defendant intentionally made bank deposits of cash below $10,000 because he was told the bank would require persons to file a form with the government and he thought people would start to ask questions. This case was the result of an investigation by the Internal Revenue Service. This case was prosecuted by Assistant United States Attorney Donald Schmid.
Week in Review – HammondRead the Press Release
Hammond, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS
- Chavonne Jackson, 28, of Chicago, Illinois, formerly of Hammond, Indiana, pled guilty to the felony offense of conspiracy to commit identity theft and bank fraud before U.S. District Court Judge Joseph S. Van Bokkelen. The defendant’s sentencing is scheduled for February 20, 2015. The case was investigated by the U.S. Postal Inspection Service and is being prosecuted by Assistant United States Attorney Toi Denise Houston.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS
- Yousef Muhamad, 44, of Chicago, IL was sentenced to 33 months imprisonment (followed by 2 years of supervised release) and ordered to pay $213,999.12 in restitution after pleading guilty to the felony offense of knowingly and intentionally executing a scheme to defraud the Indiana SNAP benefit program, in violation of Title 18, United States Code 1343. The fraud scheme involved the fraudulent redemption of SNAP (supplemental nutrition assistance program) benefits at multiple Gary, Indiana convenience stores. Defendant, and his co-conspirators, purchased SNAP benefits for cash and allowed SNAP beneficiaries to use their benefits to purchase prohibited items like cigarettes and cell phones. This case was the result of an investigation by the Federal Bureau of Investigation. This case was prosecuted by Assistant United States Attorney Diane Berkowitz.
Week in Review – Fort WayneRead the Press Release
Fort Wayne, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS
- Laurence Rothschild, 62, of Harlan, Indiana pled guilty to the felony offense of theft of government money. The magistrate judge is recommending that the district court accept the tendered guilty plea. Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Social Security Administration and the United States Postal Inspection Service. Sentencing has not been set. This case is being prosecuted by Assistant United States Attorney Lovita Morris King.
- Martin Gonzalez Medina, 51, of Indianapolis, Indiana pled guilty to the felony offense of possessing with intent to distribute marijuana. The magistrate judge is recommending that the district court accept the tendered guilty plea. Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Drug Enforcement Administration, Indiana State Police, Fort Wayne Police Department, IMAGE Drug Task Force, Noble County Sheriff’s Department and the Steuben County Sheriff’s Department. Sentencing has not been set. This case is being prosecuted by Assistant United States Attorney Anthony W. Geller.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
Two Monroe County Men Charged with Heroin Trafficking OffenseRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that two men from Monroe County were indicted November 25 by a federal grand jury in Scranton for heroin trafficking.
According to United States Attorney Peter Smith, Joseph Crawford, age 41, of Marshalls Creek, and Harry Rivera, age 39, of East Stroudsburg, are charged with possession with intent to distribute heroin and aiding and abetting. In addition, Crawford is charged with being a convicted felon in possession of firearms, specifically, a Glock pistol and a Smith & Wesson rifle. The charges stem from an incident on June 17, 2014, in which investigators found approximately 100 grams of heroin within a hidden compartment in a vehicle in which Crawford and Rivera were travelling.
The investigation was conducted by the Drug Enforcement Administration, the Pocono Mountain Regional Police Department and the Stroud Area Regional Police Department. The case is being prosecuted by Assistant United States Attorney Robert J. O’Hara.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is imprisonment for twenty years, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public, and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Two McLaughlin Men Charged with Assault with A Dangerous WeaponRead the Press Release
United States Attorney Brendan V. Johnson announced that two McLaughlin, South Dakota, men have been indicted by a federal grand jury for Assault with a Dangerous Weapon.
Ronald Brown Otter, age 24, and Kenton Walks, age 20, were indicted on November 13, 2014. They both appeared before U.S. Magistrate Judge Mark A. Moreno on November 25, 2014, and both pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about December 1, 2012, Brown Otter and Walks unlawfully assaulted an adult male victim with a wooden board and a knife, with intent to do bodily harm to the victim, and they aided and abetted one another in the commission of said offense.
The charge is merely an accusation and Brown Otter and Walks are presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
Brown Otter and Walks were released on bond pending trial. A trial date has not been set.
Three Tobyhanna Men Charged with Counterfeiting SchemeRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today that an Indictment was returned on November 25 by a grand jury in Scranton charging Michael Turner, age 21, Andrew Turner, age 27, and Jason Mitchell, age 29, all of Tobyhanna, Pennsylvania, with conspiracy and dealing in counterfeit United States Federal Reserve Notes.
United States Attorney Peter Smith stated that the three-count Indictment charges that beginning in or about June 1, 2014 through June 30, 2014, the defendants conspired and aided abetted each other in a scheme to receive, exchange, transfer, and pass approximately $8700 in counterfeit $100 Federal Reserve Notes at the Mount Airy Casino in Mount Pocono and the Mohegan Sun Casino in Plains.
The defendants face a total statutory maximum term of 45 years and fines in the amount of $750,000.
The case was investigated by the United States Secret Service and the Pennsylvania State Police, Bureau of Gaming Enforcement.
Prosecution is assigned to Assistant United States Attorney Michelle Olshefski.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Rapid City Man Charged with Sexual AbuseRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rapid City, South Dakota, man has been indicted by a federal grand jury for one count of Aggravated Sexual Abuse by Force and one count of Sexual Abuse of a Person Incapable of Consenting.
Ronnie Keith Circle Bear, age 51, was indicted on November 13, 2014. He appeared before U.S. Magistrate Judge Mark A. Moreno on November 26, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to life in custody and/or a $250,000 fine, at least 5 years up to life of supervised release, and up to $200 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on June 23, 2014, at Eagle Butte, Circle Bear caused the victim to engage in a sexual act by the use of force. On that same date, Circle Bear is alleged to have engaged in a sexual act with a person that was incapable of declining, when Circle Bear knew the victim was so incapacitated.
The charges are merely accusations and Bear Eagle is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Mikal Hanson is prosecuting the case.
Circle Bear was released on bond pending trial. A trial date has not been set.
North Dakota Man Charged with Robbery and AssaultRead the Press Release
United States Attorney Brendan V. Johnson announced that a Fort Yates, North Dakota, man has been indicted by a federal grand jury for Robbery, Assault with a Dangerous Weapon, Assault of an Intimate Partner by Strangulation, and Assault Resulting in Substantial Bodily Injury to an Intimate Partner.
Alton Wood, age 33, was indicted on November 13, 2014. He appeared before U.S. Magistrate Judge Mark A. Moreno on November 24, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 15 years in custody and/or a $250,000 fine, 3 years of supervised release, and $400 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about August 14, 2014, Wood took an undetermined amount of money from his intimate partner, assaulted her with a screwdriver which resulted in substantial bodily injury, and strangled and suffocated her.
The charges are merely accusations and Wood is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Standing Rock Agency. Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
Wood was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
McLaughlin Man Charged with Aggravated Sexual Abuse by ForceRead the Press Release
United States Attorney Brendan V. Johnson announced that a McLaughlin, South Dakota, man has been indicted by a federal grand jury for Aggravated Sexual Abuse by Force.
Marc Dog Eagle, age 49, was indicted on November 13, 2014. He appeared before U.S. Magistrate Judge Mark A. Moreno on November 24, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to life in custody and/or a $250,000 fine, up to life of supervised release, and a $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about October 23, 2014, Dog Eagle knowingly engaged in, and attempted to engage in, a sexual act by the use of force with a female victim.
The charge is merely an accusation and Dog Eagle is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Standing Rock Agency. Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
Dog Eagle was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Marion Woman Pleads Guilty to Multiple FraudsRead the Press Release
Follow @SDILNewsTajuana L. Sullivan, 27, of Marion, Illinois, entered pleas of guilty in federal district court to fraud in a scheme to defraud and embezzle from U.S. Bank on November 26, 2014, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Sullivan faces a total prison sentence of up to 37 years, to be followed by up to three years of supervised release, a fine of up to $1,000,000, and mandatory restitution. Sentencing has been scheduled for March 26, 2015.
Facts revealed in Court showed that on February 19, 2013, deputies with the Shelby County Sheriff’s Office conducted a traffic stop on a car driven by Sullivan. A search of the car revealed over 50 debit cards and a notebook with names and identifying information. Using this evidence, the IRS located internet protocol (IP) addresses, employers, occupations, and electronic filing identification numbers (EFIN), which revealed a tax refund scheme, part of which involved stolen identities. The data provided by the IRS consisted of 2011 and 2012 tax returns, which were filed during the years 2012 and 2013, respectively. This tax refund scheme consisted of approximately 86 federal income tax returns, which claimed approximately $283,700 in fraudulent tax refunds.
This case was investigated by the Internal Revenue Service/Criminal Investigations, the Postal Inspection Service, the Secret Service, and the Shelby County Sheriff's Office. The prosecution is assigned to Assistant United States Attorney Norman R. Smith.
Dispensary Operator Indicted for Endangering Lives After Explosion Related to the Illegal Manufacturing of Hash OilRead the Press Release
SAN DIEGO – San Diego resident Steve Elar Mora is charged in a federal grand jury indictment unsealed today with various drug and weapons charges, including endangering human life while illegally manufacturing hashish oil, after an explosion at the marijuana dispensary that he operated alerted authorities to the location.
According to court records, the explosion allegedly occurred due to an illicit Butane Honey Oil lab operating at the marijuana dispensary. Butane Honey Oil is an extremely potent form of tetrahydrocannabinol, or THC, the chemical responsible for most of marijuana's psychological effects.
The product, known as “butane hash oil” or “honey oil,” is made by dissolving marijuana using dangerous substances such as butane – or lighter fluid - and selling the resulting residue to users at over twice the price of other high quality marijuana products.
Efforts to extract hash oil are on the rise. According to the DEA, in 2014 alone there have been eight fires or explosions related to the illegal production of Butane Honey Oil. Since October 2011, there have been approximately 20 BHO fires/explosions in San Diego County.
The explosion connected to the indictment of Mora occurred on July 21, 2014, at the Greenworks Dispensary in the Clairemont area of San Diego. While executing a search warrant after the explosion, law enforcement also found a handgun and ammunition at the dispensary. According to the indictment, Mora has been convicted of two state felonies and is not allowed to possess a firearm under federal law.
Law enforcement also searched Mora’s residence, located near Mission Bay High School, in the Pacific Beach area. At his residence, DEA agents found an AR-15 assault rifle among his possessions.
The process of extracting THC from marijuana is known as “blasting.”
Marijuana is tightly packed into an extraction device such as a glass, plastic, or metal tube. A butane canister is then sprayed into the top of the extraction device. The butane strips the plant matter of its cannabinoid-containing oils, which drip from the bottom of the extraction device, often through a filter and into a holding container. The resulting honey-like mixture of psychotropic plant oil and chemicals is then purified to improve the quality of the product. The end product is highly-profitable and can be ingested as an oil, consumed in edibles or solidified to make concentrated forms of cannabis known as “wax.” In an act called “dabbing,” dabs of wax are vaporized and inhaled with the use of electronic cigarettes and other vaporizing devices.
During the different purification methods, butane, a flammable gas that is odorless, colorless, and heavier than air, can evaporate out of the substance and collect on the floor, accumulating to explosive levels without proper ventilation. Thus, while chemists are in the process of manufacturing BHO, they may simultaneously create an invisible risk of explosion.
Given the popularity of BHO in the marijuana market, the inexpensive equipment needed to manufacture BHO, and the countless how-to-blast videos posted on YouTube, hash oil labs are multiplying, as are explosions.
Mora made his first appearance in court today before U.S. Magistrate Judge Jan M. Adler, who set a detention hearing for Monday at 2 p.m. He also scheduled a motions hearing before U.S. District Judge Barry Ted Moskowitz for Dec. 19.
DEFENDANTS Steve Elar Mora Age: 34 San Diego, California CHARGESCount 1: Manufacturing of Marijuana and Hashish Oil-21 U.S.C. § 841(a)(1)
Maximum penalty: 20 years’ imprisonment and $1,000,000 fine
Count 2: Conspiracy to Manufacture/Distribute Hashish Oil -21 U.S.C. §§ 841(a)(1) and 846
Maximum penalty: 5 years’ imprisonment and $250,000 fineCount 3: Maintaining Drug-Involved Premises -21 U.S.C. § 856(a)(1)
Maximum penalty: 20 years’ imprisonment and $500,000 fineCount 4: Endangering Human Life While Illegally Manufacturing Hashish Oil -21 U.S.C. § 858
Maximum penalty: 10 years’ imprisonment and $250,000 fineCount 5,6: Felon in Possession of Firearm and Ammunition-18 U.S.C. § 922(g)(1)
Maximum penalty: 10 years’ imprisonment and $500,000 fineCount 7: Possession of Firearm in Furtherance of Drug Trafficking Crime-18 U.S.C. § 924(c)
INVESTIGATING AGENCY
Mandatory 5 years’ imprisonment consecutive to drug trafficking sentenceDrug Enforcement Agency
*Indictments and complaints are not evidence that the defendant committed the crime charged. All defendants are presumed innocent until the United States meets its burden in court of proving guilt beyond a reasonable doubt.
DeLand Man Charged with Sexual Exploitation of ChildrenRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces the return of an indictment charging David Jacob William Guite (30, DeLand) with producing, distributing, receiving, and possessing child pornography. If convicted, he faces a mandatory minimum penalty of 15 years in federal prison and a potential life term of supervision. Guite was arrested on October 29, 2014, at his residence in DeLand, Florida, pursuant to a federal criminal complaint. During his initial court appearance, he was ordered detained pending trial.
According to the criminal complaint, an agent with the Federal Bureau of Investigation, acting in an undercover capacity, posted an advertisement on an online website for individuals who have a sexual interest in children and incest. Guite responded to the agent’s advertisement and, during the ensuing conversation, sent the agent sexually explicit images of a male child.
On October 29, 2014, FBI agents executed a federal search warrant at Guite’s residence. During an interview, he admitted to manufacturing, possessing, and distributing multiple sexually explicit images of minor children. A search and subsequent analysis of Guite’s smart phone revealed sexually explicit images of a male child taken during the time of the conversation with the undercover FBI agent.
An indictment and a criminal complaint are merely formal charges that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent until, and unless, proven guilty.
This case was investigated by the Federal Bureau of Investigation, the DeLand Police Department, and the Volusia County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Embry J. Kidd.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.
Additional Charges Filed Against Five Men Known as the “Tat-Gang” for Distribution of Heroin and Crack Cocaine in WilliamsportRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today the return of a 12-count second superseding indictment by a federal grand jury in Williamsport on November 26 charging the following Williamsport and Philadelphia men with conspiracy to distribute heroin, crack cocaine, and cocaine and other drug distribution and firearms violations:
Defendant Age Recent Address
ALPHONSO BATTEN 27 Williamsport aka “Bugatti” aka “Boo”
THEODORE SHOCKLEY III 22 Williamsport aka “Glock”
STEVEN OLIVER SINGLETARY 27 Williamsport aka “Steven Carter”
SHARIF JONES 22 Williamsport aka “Reef” aka “Chief Reef” aka “Bucketz”
MALIKI HASSAN CHAPMAN 27 Philadelphia
Aka “Terrence Wallace”Batten, Shockley, and Jones were indicted previously in September 2014. The superseding indictment includes a new co-defendant, Maliki Chapman, who is charged with conspiring with the other defendants to distribute heroin, crack cocaine, and cocaine powder.
According to United States Attorney Peter Smith, the indictment alleges that from January 2010 through the date of the indictment the co-conspirators distributed heroin, crack cocaine, and cocaine to drug users and sellers in Williamsport and in Lycoming and Tioga Counties.
The five men, who were known as the “Tat-Gang,” allegedly used mobile phones, social media, three addresses in Williamsport, and multiple motor vehicles in their drug distribution activities. The co-conspirators allegedly bought, sold, traded, and possessed firearms in exchange for cash and controlled substances and to facilitate the distribution of controlled substances.
Shockley and Singletary are also charged with illegal possession of firearms, and Shockley is charged with using and carrying a firearm during a drug trafficking crime. Allegations in indictment also seek forfeiture of two firearms and proceeds from the criminal offenses totaling $1.75 million.
The case was investigated by the Williamsport Bureau of Police, the Pennsylvania State Police, and the Federal Bureau of Investigation. The prosecution is assigned to Assistant United States Attorney George J. Rocktashel.
If convicted of the conspiracy and drug distribution offenses charged in the indictment, the defendants face a maximum penalty of life in prison, a mandatory minimum sentence of ten years’ imprisonment, a maximum fine of $10 million, and a supervised release term of at least five years. In addition Shockley faces a consecutive mandatory five-year prison term if convicted of using and carrying a firearm during a drug trafficking crime.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
26 November 2014
West Milford Woman Sentenced for Falsifying Tax ReturnRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Tara Tighe, Public Affairs SpecialistCLARKSBURG, WEST VIRGINIA – Pamela S. Bailey, 55, of West Milford, West Virginia, was sentenced to one year and one day in prison for providing false information on her 2011 income tax return, United States Attorney William J. Ihlenfeld, II, announced today.
An Internal Revenue Service investigation revealed that Bailey underestimated her taxable income resulting in unpaid taxes in excess of $42,000.00. Bailey pled guilty in July 2014 to one count of "Filing a False Personal Income Tax Return." Bailey will receive credit for time served since August 2014.
Assistant U.S. Attorney Robert McWilliams, Jr. prosecuted the case on behalf of the government.
U.S. District Judge Irene M. Keeley presided.
Waubay Man Sentenced to 30 Years for MurderRead the Press Release
United States Attorney Brendan V. Johnson announced that a Waubay, South Dakota, man convicted of Second Degree Murder and Assault Resulting in Serious Bodily Injury was sentenced on November 25, 2014, by U.S. District Judge Lawrence L. Piersol.
Mario Contreras, age 36, was sentenced to 360 months on each count to run concurrently. He was also ordered to be on federal supervised release for a period of 5 years after his release.
Contreras was indicted on the charges by a federal grand jury on August 14, 2012. A jury trial was held on August 1, 2013, and Contreras was convicted of Second Degree Murder and Assault Resulting in Serious Bodily Injury.
The victim was born on December 31, 2009, and was murdered by her father on January 9, 2012, just days after she turned 2 years old. The victim’s mother and father were never married and were no longer close. The defendant was not very involved in the victims’ first year and a half of her life. On January 4, 2012, the victim’s mother asked Contreras if he could watch their daughter for a few days. Contreras had custody of the victim from January 4th through January 9th, the date of death.
Contreras told investigators that on January 9th his daughter was having a cup of water and a banana and he left the room. He said that is when she fell off the chair and sustained the injuries that cased her death.
The Assistant Medical Examiner of Ramsey County, Minnesota, who performed the autopsy, discovered 18 round bluish-colored contusions on four sides of the victim’s head, indicative of blunt force trauma. He concluded that the multiple contusions and resulting subdural hematoma could not have been caused by a single fall from a chair and that the cause of death was a homicide. Another government expert on child abuse also concluded that the injuries were inconsistent with falling from a chair or table. An additional expert for the government determined that there were small hemorrhages to the retinas and concluded that the child was beaten. Two government experts testified that the chances of such a short fall causing death were “one in a million.”
This case was investigated by the Federal Bureau of Investigation, the Sisseton-Wahpeton Tribal Law Enforcement Services, and the Bureau of Indian Affairs. The case was prosecuted by Assistant U.S. Attorneys Thomas J. Wright and Jay P. Miller.
The defendant was remanded to the custody of the U.S. Marshals Service.
Waterloo Man Sentenced to Federal Prison for Falsely Testifying in Sawed-Off Shotgun CaseRead the Press Release
A man who committed perjury in federal court proceedings relating to a sawed-off shotgun charge was sentenced November 24, 2014, to nearly three years in federal prison.
Clay Willie Gilmer, age 20, from Waterloo, Iowa, received the prison term after an August 8, 2014, guilty plea to making material false declarations before a court or grand jury. The prosecution stemmed from Gilmer’s testimony before the grand jury and at a trial of Patrelle Green-Bowman. Evidence at Green-Bowman’s trial showed a sawed-off shotgun was found on August 2, 2013, by Waterloo Police in a car primarily used by Gilmer. The sawed-off shotgun was partially wrapped in Green-Bowman’s coat and was sitting immediately behind Green-Bowman in the car, in which he was the only occupant.
At the guilty plea, Gilmer admitted he testified before a federal grand jury in September 2013 that he had seen Green-Bowman with the sawed-off shotgun. Gilmer also admitted that during Green-Bowman’s December 2013 federal trial on the sawed-off shotgun charges, he testified he had not seen Green-Bowman with a gun on the relevant date. The jury found Green-Bowman guilty of the firearms charges in December, but the court granted Green-Bowman a new trial in April 2014. Gilmer testified in Green-Bowman’s May 2014 retrial, and Green-Bowman was again convicted. Green-Bowman was later sentenced to 78 months in federal prison.
At Gilmer’s sentencing, the court found Gilmer had testified falsely at both trials, and also that he lied under oath at his own guilty plea hearing about his drug use and criminal history.
Gilmer was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Gilmer was sentenced to 33 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
Gilmer is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Dan Chatham and investigated by the Waterloo Police Department.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR14-44-LRR.
United States Attorney’s Office Recovers $20,000,000 in Fiscal Year 2014 – With A Record Amount Distributed to VictimsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney William J. Hochul, Jr. announced today that the Western District of New York Office recovered in Fiscal Year 2014, $20,456,183.00 as a result of wide-ranging efforts in criminal, civil and asset forfeiture cases. Of that, a record amount, $14,541,000.00, was returned to victims of crime. This money was also used as aid to law enforcement agencies, and in largest part, provided to taxpayers as a result of being transmitted to the United States Treasury.
In making the announcement, U.S. Attorney Hochul praised the hard work and dedication of Office attorneys and support staff that sought not only to put convicted defendants in jail, but took the profit out of crime in a more literal sense. “In addition to removing criminals from the streets of our community, another key mission of our Office is to return the profits of crime to those who have been victimized,” said U.S. Attorney Hochul. “As a result of the efforts of prosecutors in both our criminal and civil divisions, over $14,500,000 has been returned to victims of crime.”
As for how the recoveries came about, the Office collected $20,456,183.00 in criminal and civil actions. Criminal actions include fines and restitution totaling $5,581,041.00. The Office also collected $3,273,141 in civil actions, which include proceedings involving health care fraud, government fraud, foreclosures and more.
In addition, the Office collected $11,602,748.00 in criminal and civil forfeitures. Forfeitures generally involve proceeds of crime, as well as property used to commit crime. Of that amount, $2,286,615 was shared with state and local law enforcement partners who work with the U.S. Attorney’s Office.
Over the last five years, the amount of money recovered by the WDNY Office exceeds $234,000,000. This is a result of the Office recovering in Fiscal Year 2010, $31,800,000, in 2011, $29,300,000, in 2012, $53,600,000, and in 2013, $94,220,047.00
The WDNY also forfeited 115 dangerous firearms, along with ammunition, and 33 computers used in child exploitation and fraud crimes in Fiscal Year 2014.
In addition to the $20,456,183.00 collected locally, the WDNY worked with five other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $120,382,112.00.
The following cases are examples of successful forfeiture and affirmative civil enforcement concluded this past year in the Western District of New York:
United States v. Mangione:
Vincent Mangione was convicted of tax evasion and bank fraud. The defendant was ordered to pay restitution to his victims in the amount of $840,196.00 and agreed to turn over $125,000 in cash and real property which consisted of a four-unit apartment building and a vacant piece of land. The real property was recently sold and netted an additional $284,248.27 for victims. This brought the total amount of restitution collected on behalf of victims to $409,248.27.
OPERATION HOUND DOG:
Defendant Ronald Walker was convicted of conspiracy to distribute and possess with intent to distribute, five kilograms or more of cocaine and one kilogram or more of heroin, and conspiracy to commit money laundering. Walker forfeited $2,500,000 in drug proceeds, including approximately $1,500,000 in U.S. currency, two real properties, various items of jewelry and a motor vehicle.
TONAWANDA COKE:
The Tonawanda Coke Corporation, which was convicted of 11 counts of violating the Clean Air Act and three counts of violating the Resource Conservation and Recovery Act by a federal jury in March 2013, was sentenced to pay a $12,500,000 fine. The Corporation was also ordered to pay $12,200,000 to fund two environmental studies to help determine the extent of health and environmental impacts Tonawanda Coke has had in the community.
AMEDIYSIS:
Between 2008 and 2010, certain Amedisys offices were accused of improperly billing Medicare for ineligible patients and services. Amedisys allegedly billed Medicare for nursing and therapy services that were medically unnecessary or provided to patients who were not homebound, and otherwise misrepresented patients conditions to increase its Medicare payments. These billing violations were the alleged result of management pressure on nurses and therapists to provide care based on the financial benefits to Amedisys, rather than the needs of patients. An investigation was conducted by the Justice Department’s Commercial Litigation Branch of the Civil Division; multiple United States Attorney’s Offices, including WDNY; the Department of Health and Human Services’ Office of Inspector General; the Federal Bureau of Investigation; the Office of Personnel Management’s Office of Inspector General; the Defense Criminal Investigative Service of the Department of Defense; and the Railroad Retirement Board’s Office of Inspector General. As a result of these combined efforts, Amedisys paid a $116,000,000 settlement.
For further information, the United States Attorneys’ Annual Statistical Reports can be found on the internet at:
http://www.justice.gov/usao/resources/annual-statistical-reports
Two Sentenced for Selling Heroin Near Local SchoolsRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Tara Tighe, Public Affairs SpecialistCLARKSBURG, WEST VIRGINIA – Two Morgantown, West Virginia residents were sentenced for selling heroin near local schools, United States Attorney William J. Ihlenfeld, II, announced today.
Angela Nelson, 35, was sentenced to 51 months in prison for selling heroin near Brookhaven Elementary School in Morgantown, West Virginia. She pled guilty in March 2014 to one count of "Distribution of Heroin within 1000' of Protected Location."
Bartley Jefferson, 25, was sentenced to 21 months in prison for selling heroin near the West Virginia University campus in Morgantown, West Virginia. He pled guilty in February 2014 to one count of "Aiding and Abetting Distribution of Heroin within 1000' of Protected Location."
Additionally, Christina Shaffer, 29, also of Morgantown, West Virginia, was sentenced to 41 months in prison for selling heroin in April 2012. She pled guilty in February 2014 to one count of "Distribution of Heroin."
Each defendant was also ordered to forfeit $1,551.00.
Assistant U.S. Attorney Zelda Wesley prosecuted the cases on behalf of the government. The case was investigated by the West Virginia State Police Bureau of Criminal Investigations.
U.S. District Judge Irene M. Keeley presided.
Three Individuals Plead Guilty to Drug, Money Laundering and Gun ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Anthony Avery and Spiwe Barnes pleaded guilty to conspiracy to possess with intent to distribute, and to distribute, five kilograms or more of cocaine before U.S. District Judge William M. Skretny. The charge carries a minimum penalty of 10 years in prison, a maximum of life and a 10,000,000 fine. Avery also pleaded guilty to conspiracy to commit money laundering and Barnes pleaded guilty to being a felon in possession of a firearm. In addition, co-defendant Linda Johnson pleaded guilty to conspiracy to possess with intent to distribute, and to distribute, cocaine. That charge carries a maximum penalty of 20 years in prison and a $1,000,000 fine.
Assistant U.S. Attorneys Timothy C. Lynch and Joel L. Violanti, who are handling the case, stated that beginning in early 2010 and continuing through June 14 2011, the defendants distributed between five and 15 kilograms of cocaine in the Buffalo area. Avery and Barnes initially obtain cocaine from a source in Ohio. This source utilized Linda Johnson to transport the cocaine to Avery in Buffalo. Later on, Avery and Barnes obtained cocaine from Tyree Bishop, who was obtaining the cocaine in Detroit, Michigan. On the date of their arrest, law enforcement officers seized a loaded 9mm handgun as well as $5,000 in cash from Barnes’s residence.
Tyree Bishop was also convicted and sentenced to 96 months in prison.
The pleas are the culmination of an investigation by the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Division, the Buffalo Police Department, under the direction of Commissioner Daniel Derenda, and the Erie County Sheriff’s Department, under the direction of Sheriff Timothy Howard. Assistance was also provided by the Erie County District Attorney’s Office, under the direction of Frank Sedita.
Sentencing is scheduled for March 16, 2015, 2:00 p.m. before Judge Skretny.
Tammy Nguyen Pleads Guilty to Making False Statements to A Welfare Benefit Plan and Filing A False Income Tax ReturnRead the Press Release
Tristram J. Coffin, United States Attorney for the District of Vermont, stated that Tammy Nguyen, 34, formerly of Essex Junction, Vermont, appeared in United States District Court and pled guilty to making false statements to obtain health care benefit coverage from the Vermont Health Access Plan (“VHAP”) and to filing a false tax return with the Internal Revenue Service (“IRS”). Sentencing has been set for March 6, 2014, in Burlington, Vermont. The Honorable Christina Reiss presided at the change of plea.
The False Statements To A Welfare Benefit Plan
According to Court records, on or about September 22, 2010, TAMMY NGUYEN sent a Health Care Programs Application to the Vermont Department for Children and Families via facsimile using the fax cover sheet of the United States Social Security Administration, her employer. The Application was for health care coverage for herself under the Vermont Health Access Plan (“VHAP”) and for her two children under the Dr. Dynasaur program. VHAP and Dr. Dynasaur are health care benefit programs funded by Medicare. Both health benefit programs received federal funds and were designed to assist low-income Vermonters. On her application, she materially under-reported her gross income from employment and failed to report other material income, including interest income from personal loans she made to other individuals in the Burlington, Vermont area.
The materially false, fictitious and fraudulent statements enabled TAMMY NGUYEN to receive health insurance benefits at a lesser amount than would otherwise have been due.
The False ReturnAccording to Court records, for the federal income tax year ending December 31, 2009, TAMMY NGUYEN filed a tax return with the Internal Revenue Service, under penalty of perjury, reporting only her wages as a Service Representative at the Burlington Office of the Social Security Administration. In addition to that income, however, she also received reportable interest income from her private money lending activities. Moreover, she had received fraudulently obtained VHAP benefits as well as public housing assistance benefits that were reportable to the IRS during that tax year. By failing to report the interest income and fraudulently obtained benefits, TAMMY NGUYEN willfully made and subscribed to a federal tax return that she knew was not true and correct as to every material matter.
In her plea agreement, Nguyen agreed to pay restitution to VHAP (Medicare), the Burlington Housing Authority (Department of Housing and Urban Development), and to the IRS. Nguyen faces a sentence of up to 5 years in prison and a $250,000 fine. The actual sentence will be imposed after a presentence investigation is completed and the Court has considered the United States Sentencing Guidelines and other sentencing factors.
United States Attorney, Tristram J. Coffin, thanks the Internal Revenue Service, the Office of the Inspector General, Social Security Administration, the Department of Housing and Urban Development, the Secret Service, and the Federal Protective Service for their investigative assistance during this case. The case was prosecuted by Assistant United States Attorney Nancy J. Creswell. The defendant was represented by Attorney Mark A. Kaplan.
San Antonio Texas Mexican Mafia Member Arrested and Charged in Connection with Three MurdersRead the Press Release
In San Antonio this morning, FBI agents arrested 36–year-old Texas Mexican Mafia (TMM) member Ruben Reyes (aka “Menace”) in connection with the alleged murders of three high ranking TMM members announced United States Attorney Robert Pitman and Federal Bureau of Investigation Special Agent in Charge Christopher Combs, San Antonio Division.
A federal criminal complaint filed today charges Reyes, a former TMM “Lieutenant of Lieutenants,” with one count of using or discharging a firearm during a crime of violence, specifically, violent crimes in aid of racketeering (VICAR). According to the complaint, on January 13, 2014, Reyes shot and killed TMM “Captain” Mark Anthony Bernal (aka “Lefty”), TMM “General” Carlos Chapa (aka “Worm”), and TMM “Lieutenant of Lieutenants” Johnny Solis (aka “Smiley”) for their alleged mishandling of approximately $60,000 and making poor decisions in regards to the TMM daily operations. The complaint further alleges that Reyes transported and buried the bodies of Bernal, Chapa and Solis in Pearsall, TX.
Reyes, who remains in federal custody, faces between ten years and up to life in federal prison upon conviction.
This complaint resulted from an investigation conducted by the FBI together with the San Antonio Police Department, Texas Department of Public Safety Criminal Investigations Division, Bexar County Sheriff’s Department and the Texas Department of Criminal Justice.
A criminal complaint is merely a charge and should not be considered as evidence of guilt. The defendant is presumed innocent until proven guilty in a court of law.
Royal Oak Resident Pleads Guilty to Tax EvasionRead the Press Release
Robin Petty, age 53, of Royal Oak, Michigan, part owner of Superior Metal Finishing Corporation, a Detroit, MI corporation, pleaded guilty to one count of income tax evasion, United States Attorney Barbara McQuade announced today.
McQuade was joined in the announcement by Jarod J. Koopman, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation.
Petty entered the guilty plea before U.S. District Judge Avern Cohn.
According to court records, Petty served as the treasurer of Superior Metal Finishing, a Sub-S Corporation and received wages, as well as the income that was generated by her ownership of Superior Metal Finishing Corporation shares. During 2008, Petty received income totaling $119,117, which she reported on her Federal Income Tax return. However, evidence showed that in 2008, Petty had received a total of $356,050 in Superior Metal Finishing Corp. checks made payable to her. Her deliberate failure to report $236,933 in income received from Superior Metal Finishing caused her tax liability to be understated by $70,073 for the 2008 tax year. Under her plea agreement, Petty is also being held responsible for filing similar false returns for the years 2009-2011. In all, she evaded $339,526 in federal income taxes for the years 2008-2011.
“Every American has a duty to pay their fair share of taxes. By her guilty plea today, Petty is acknowledging and accepting the consequences of evading that duty,” said Special Agent in Charge Jarod J. Koopman.
Petty’s sentencing will be set by the court. The charge of income tax evasion carries a maximum term of imprisonment of five years and/or a fine of $250,000.
The case was investigated by special agents of the IRS-Criminal Investigation. The case is being prosecuted by Assistant U.S. Attorney Ross I MacKenzie.
Rexford Respiratory Therapist Sentenced to 12 Months and One Day for $1.4 Million Medicaid Fraud and $200,000 Tax FraudRead the Press Release
MISSOULA – A respiratory therapist from Rexford, Montana has been sentenced to 12 months and one day for defrauding Medicaid of over $1.4 million and filing tax returns that failed to report her correct income resulting in a tax loss of over $200,000. Anna Sue Tope, 67, was the vice president of Eagle Calf Technical Corporation (Eagle Calf), a company providing medical equipment and services on the Blackfeet Indian Reservation. Eagle Calf’s clients in the Browning area are generally low-income patients eligible for Medicaid.
Assistant U.S. Attorney Chad Spraker told the court that Tope, a respiratory therapist, had worked at various hospitals and owned a medical supply business prior to starting the Montana company with a business associate started in 1998. In 2001, Tope became the sole signatory for Eagle Calf bank accounts.
From 2003 until 2011, Spraker explained, an Eagle Calf customer received catheter supplies from the company. The patient required the use of one of two types of tracheal suction catheters. Cath-n-Glove kits, which cost approximately $2.70 each, are much less expensive than a closed system catheter (approximately $16 each). Cath-n-Glove kits are disposable and designed for one-time use, but a patient may require multiple kits each day. A closed system catheter, however, may be used for a longer period of time—typically multiple days to one week before a patient requires a new one.
Eagle Calf provided Cath-n-Glove kits from the time the patient started receiving supplies from Eagle Calf in 2003 until November 2011. Investigators located six wholesale suppliers who had sold 20,626 Cath-n-Glove kits to Eagle Calf on 59 invoices during the period of the indictment. None of the invoices showed Eagle Calf ever purchased a closed system catheter from any supplier.
Although furnishing the patient with the less expensive catheter, Tope fraudulently billed Medicaid for the more expensive closed system catheters. Medicaid was billed for more than $1.7 million for over 108,000 closed system catheters purportedly supplied to the patient. Had the Medicaid program not been misled as to the medical equipment actually being provided, reimbursement to Eagle Calf would have been approximately $300,000. Tope’s fraudulent scheme cost the government $1.4 million.
The case was investigated by the Montana Medicaid SURS Unit, the Internal Revenue Service, the Health Care Fraud investigator for the U.S. Attorney’s Office, and the Federal Bureau of Investigation.
PACER Case Reference: 14-57
Owings Mills Man Convicted for a Drug Conspiracy and Illegal Possession of a GunRead the Press Release
Baltimore, Maryland – A federal jury convicted Jamaican national, Lyndon Fascisco Miller, age 50, of Owings Mills, Maryland, late yesterday, on charges of conspiracy, possession with intent to distribute heroin, cocaine and crack cocaine, and three counts of distribution of heroin. Miller was also convicted of being a felon in possession of a loaded semi-automatic handgun.The conviction was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; the members of the Harford County Task Force, Harford County Sheriff L. Jesse Bane; Colonel Marcus L. Brown, Superintendent of the Maryland State Police; Chief Henry Trabert of the Aberdeen Police Department; Bel Air Police Chief Leo Matrangola; Chief Teresa Walter of the Havre de Grace Police Department; and Harford County State’s Attorney Joseph I. Cassilly; and Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office.
The evidence presented at Miller’s one week trial was based on, among other things, wiretaps on multiple cell phones used by Miller, none of which were in Miller’s name. Several of the intercepted calls were in Patois, a Jamaican dialect. Witnesses testified that Miller would routinely travel in rental cars, changing them frequently, to distribute narcotics to customers in Harford County, where he falsely claimed his name was “Charlie” and that he lived in Cecil County. Miller was video-taped engaging in drug transactions, including the sale of heroin to an undercover task force officer. Miller was arrested on June 22, 2013, after returning from meeting his source of supply for the heroin and cocaine in Gettysburg, Pennsylvania.
A search warrant was executed at Miller’s residence, where law enforcement seized heroin, cocaine and crack cocaine, along with the loaded handgun. Law enforcement also seized almost ½ kilo of heroin from the rental vehicle Miller had been driving, and from another vehicle associated with Miller that was parked at Miller’s apartment complex law enforcement recovered more than $70,000 in cash, which had been bundled with rubber bands, a common practice by narcotics traffickers.
Miller faces a mandatory sentence of 20 years in prison at his sentencing. U.S. District Judge Marvin J. Garbis has scheduled sentencing for March 2, 2015.
United States Attorney Rod J. Rosenstein commended the Harford County Task Force and DEA, for their work in the investigation, and recognized DEA Harrisburg, and the Baltimore County Police Department for their assistance, as well as a police officer with the University of Maryland Police Department, who spoke Patois. Mr. Rosenstein thanked Assistant United States Attorney Christopher J. Romano, who is prosecuting this Organized Crime Drug Enforcement Task Force case.
Oglala Woman Sentenced for Involuntary ManslaughterRead the Press Release
United States Attorney Brendan V. Johnson announced that an Oglala, South Dakota, woman convicted of Involuntary Manslaughter was sentenced on November 25, 2014, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Valerie Good Voice Flute, age 37, was sentenced to 30 months in custody, 3 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Good Voice Flute was indicted for Involuntary Manslaughter by a federal grand jury on August 27, 2013. She pled guilty to the charge on July 10, 2014.
The conviction stems from Good Voice Flute operating and crashing a motor vehicle while under the influence on May 19, 2013, near Loneman. The crash resulted in the death of Gillard Good Voice Flute.
This case was investigated by the Federal Bureau of Investigation, Bureau of Indian Affairs, Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Kathryn N. Rich prosecuted the case.
Good Voice Flute was immediately turned over to the custody of the U.S. Marshals Service.
Miami Resident Sentenced to Life in Prison for Obstruction of Justice by Murder and Firearms TraffickingRead the Press Release
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, Hugo Barrera, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office, and J.D. Patterson, Director, Miami-Dade Police Department (MDPD), announce the sentencing of Andres Campo, 26, of Miami. On September 5, 2014, a jury had convicted Campo on all counts of a 12-count indictment, charging Campo with obstruction of justice by murder, possession of a firearm in furtherance of a crime of violence, and a number of export violation charges related to Campo’s role as the leader of a arms trafficking organization shipping firearms, and firearm parts, to Colombia. Campo was sentenced today by U.S. District Court Judge Cecilia Altonaga to a mandatory sentence of life in prison.
Specifically, Campo was convicted of conspiring to obstruct justice by murder (18 U.S.C. § 1512); obstruction of justice by murder (18 U.S.C. § 1512); possession of a firearm in furtherance of a crime of violence, resulting in death (18 U.S.C. §§ 924(c)(1)(A) and (j)); conspiracy to export firearms without a license (18 U.S.C. § 554); six counts of possessing firearms parts that were intended for illegal exportation (18 U.S.C. § 554); and two counts of possessing a firearm while a fugitive from justice (18 U.S.C. § 922(g)(2)). The jury further found the murder was premeditated.
According to the evidence at trial, Campo was the leader of an international arms trafficking organization responsible for the shipment of numerous AR-15 rifles, .50 caliber rifles, and other firearms and firearm parts to Cali, Colombia. Campo employed straw purchasers to buy firearms and firearm parts from legal firearm dealers in south and central Florida. The firearms and firearm parts were gathered at various locations in Miami, taken apart into smaller pieces, and then hidden inside of boxes of miscellaneous materials that were shipped to Colombia.
In October 2009, ATF detained one of Campo’s employees, Erik Comesana, after an ATF Special Agent noticed Comesana’s accomplice purchasing an unusual number of AR-15 lower receivers. Comesana provided a statement to the agents. The investigation continued until March 2011, when Comesana was ultimately arrested and charged with firearms trafficking violations in the Southern District of Florida. During Campo’s trial, multiple witnesses testified that Campo was concerned that Comesana would cooperate with law enforcement.
On May 27, 2011, Comesana notified the federal court that he intended to plead guilty. Later that evening, Comesana’s body was found burning in southwest Miami-Dade County, after being murdered in another location. A joint investigation by the MDPD Homicide Bureau and ATF subsequently identified Campo and Carlos Rios as the perpetrators.
According to the evidence at trial, after Comesana was arrested, Campo grew increasingly paranoid about the prospect that Comesana would cooperate with the ongoing federal investigation.
On May 27, 2011, Campo instructed Comesana to appear at a warehouse, purportedly to give him money to pay for Comesana’s attorney. Instead, Comesana was shot twice and died at the scene. Comesana’s body was transported to another location and set on fire. Campo and Rios then fled Florida for a period of time before ultimately returning to resume their arms trafficking business.
During the next year, the investigation continued as the investigator’s search for Campo and Rios. On July 3, 2012, both Campo and Rios narrowly missed being arrested when agents searched a home in which their identification and firearms trafficking paraphernalia was found. Ultimately, on July 26, 2012, Campos and Rios were arrested in a Miami motel parking lot, after they emerged from a room that they had rented in a false name. A loaded firearm and an upper AR-15 was recovered from Campo’s vehicle.
Rios previously pled guilty to participating in the murder and received a sentence of life in prison. Five other members of Campo’s organization have been prosecuted for their role in the arms trafficking offenses and received sentences between probation and 15 years in prison.
U.S. Attorney Ferrer stated “Andres Campo brutally murdered another young man to prevent that man from providing information about Mr. Campo’s illegal arms trafficking business to federal authorities. The resulting life sentence sends a strong message that this conduct will not be tolerated. The joint investigation by ATF and Miami-Dade Police Department into Erik’s murder is an excellent example of federal and state agencies successfully working together to ensure justice is served on those who violate the law.”
“Today’s sentencing demonstrates law enforcement’s commitment to protect our communities from violent crime, to have quality life,” said ATF Special Agent in Charge Hugo Barrera, Miami Field Division. “ATF will continue to collaborate with our law enforcement partners to eradicate violent gun related crime and dismantle international firearms trafficking organizations.”
Mr. Ferrer thanked the many law enforcement agencies involved in this South Florida High Intensity Drug Trafficking Area Task Force (HIDTA) operation. In particular, Mr. Ferrer thanked ATF and MDPD. This case is being prosecuted by Assistant U.S. Attorneys Anthony LaCosta and Seth M. Schlessinger.
The South Florida HIDTA was established in 1990. This program, made up of federal, state and local law enforcement agencies, fosters intra-agency cooperation among law enforcement agencies in South Florida and involves them in developing a strategy to target the region’s drug-related threats to public safety. The South Florida HIDTA uses the funding provided by the Office of National Drug Control Policy that sponsors a variety of law enforcement initiatives that target the region’s illicit drug threats.
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.
Miami Home Health Agency Owner and Operator Pleads Guilty for Role in Multiple Medicare Fraud SchemesRead the Press Release
An owner and operator of a Miami home health care agency pleaded guilty today in connection with a long-running $6.2 million Medicare fraud scheme involving Professional Medical Home Health LLC (Professional Home Health), and similar schemes at two other Miami home health care agencies.
U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office and Special Agent in Charge Derrick Jackson of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office made the announcement.
Ernesto Fernandez, 48, of Miami, pleaded guilty to one count of conspiracy to commit health care fraud before U.S. Magistrate Judge Chris M. McAliley of the Southern District of Florida. According to his plea agreement, Fernandez also agreed to forfeit $9,061,867, which represents the proceeds traceable to his criminal conduct. His sentencing is scheduled for Feb. 3, 2015.
According to admissions in his plea agreement, Fernandez was an owner and operator of Professional Home Heath, a Miami home health care agency that purported to provide home health and therapy services. He was also the owner and operator of two other South Florida home health agencies. At each of these companies, Fernandez and his co-conspirators billed the Medicare program for expensive physical therapy and home health services that were not medically necessary or were not provided. Fernandez admitted that he caused patient documentation to be falsified, managed and supervised personnel, and planned, organized and oversaw the submission of fraudulent claims submitted to the Medicare program.
Fernandez also admitted to being a patient recruiter for all three home health agencies. In that capacity, Fernandez recruited patients for the agencies in exchange for kickbacks, knowing that the agencies would bill the Medicare program on behalf of these recruited patients for expensive home health and therapy services that were not medically necessary or not provided.
Fernandez was the eighth defendant to plead guilty in connection with the fraudulent schemes at Professional Home Health. Earlier this month, five other defendants charged in this case also pleaded guilty. Dennis Hernandez, 32, Jose Alvarez, 48, and Joel San Pedro, 44, all of Miami, and Alina Hernandez, 38, of West Palm Beach, each pleaded guilty to one count of conspiracy to commit health care fraud. Juan Valdes, 37, of Palm Springs, Florida, pleaded guilty to one count of conspiracy to defraud the United States and receive health care kickbacks. Sentencing hearings for these five defendants are set for Jan. 29, 2015.
Earlier this year, two additional individuals pleaded guilty and were sentenced in connection with the same scheme. Annarella Garcia, an owner of Professional Home Health, was sentenced to serve 70 months in prison. Annilet Dominguez, an administrator of Professional Home Health, was sentenced to serve 68 months in prison. Both were also ordered to pay $6,257,142 in restitution.
This case was investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. This case is being prosecuted by Trial Attorney Anne P. McNamara of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,000 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
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.
Mexican National Guilty of Immigration OffenseRead the Press Release
United States Attorney Kenneth A. Polite announced that RIGO PACHECO-RODRIGUEZ, age 25, a Mexican citizen who was illegally in the United States, was sentenced yesterday after previously pleading guilty to a one-count indictment for illegal entry of a removed alien, in violation of Title 18, United States Code, Section 1326(a).
United States District Court Judge Jay C. Zainey sentenced PACHECO-RODRIGUEZ to time served, followed by 1 year of supervised release, and a $100 special assessment fee.
According to court documents, on July 6, 2014, PACHECO-RODRIGUEZ was found in the United States after having been officially deported and removed on May 19, 2014.
U.S. Attorney Polite praised the work of the Department of Homeland Security/Immigration and Customs Enforcement in investigating this matter. Assistant United States Attorney Jon Maestri is in charge of the prosecution.
Meth Plus A Gun Equals 15 Years in Federal PrisonRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced the sentencing of Travis Hill, age 35, of Columbus, Georgia, on November 24, 2014, by the Honorable Clay D. Land, Chief United States District Judge for the Middle District of Georgia, in Columbus, Georgia.Mr. Hill was sentenced by Chief Judge Land, to serve 124 months for possession of methamphetamine with intent to distribute plus a consecutive 60 months for possession of a firearm in furtherance of a drug trafficking crime. The total sentence of imprisonment was 184 months.
On July 25, 2014, Mr. Hill entered a guilty plea to the charges. According to facts stipulated in the plea agreement, on October 15, 2013, law enforcement officers executed a search warrant at Mr. Hill’s residence. The search produced a loaded Taurus .40 caliber pistol with a laser attachment, a digital scale, baggies with suspected drug residue, a baggie with over 40 grams of suspected methamphetamine and a pistol magazine. Mr. Hill claimed the firearm and all of the drugs in the house. A check by law enforcement revealed that the gun had been reported stolen on May 13, 2013, following a break-in of a storage unit owned by a third party. Mr. Hill was previously convicted of felony crimes in 1997 and 2011, therefore, prohibited from possessing a firearm.
“Guns and drugs don’t mix. I hope the message from this sentence will be that gun crimes really do equal hard time. Thanks to the good work by the Sheriff’s Office, the DEA, and the ATF, we were able to take an individual, who was both a drug dealer and a felon in possession of a firearm, off the streets for the next 15 years,” said United States Attorney Michael Moore.
The case was investigated by the Muscogee County Sheriff’s Office, Drug Enforcement Administration (DEA), Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and prosecuted by Assistant United States Attorney Crawford Seals.
Inquiries regarding this case should be directed to Pamela Lightsey, Public Affairs Specialist, United States Attorney’s Office, at (478) 621-2603Meth Dealer Sentenced to 10 Years in PrisonRead the Press Release
LAS VEGAS, Nev. – A local man who possessed over two kilos of methamphetamine in his car and another 4½ kilos of methamphetamine in a rented storage locker in Las Vegas, has been sentenced to 121 months in prison and five years of supervised release, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.
John Ortega, 25, of Las Vegas, was sentenced on Tuesday, Nov. 25, by Chief U.S. District Judge Gloria M. Navarro. Ortega pleaded guilty in August to one count of conspiracy to possess a controlled substance with intent to distribute methamphetamine and one count of money laundering.
According to the court records, law enforcement investigators learned in early 2013 that Ortega was supplying kilo quantities of methamphetamine to co-defendant Keith Alcos, of Honolulu, Hawaii. In August 2013, investigators obtained information that on Aug. 21, Alcos and two other co-defendants, James Richardson, Jr., and George Flores, were traveling from Honolulu to Las Vegas to obtain methamphetamine. Investigators conducted surveillance of the defendants when they arrived in Las Vegas, and detected phone calls between the co-defendants and Ortega. On Aug. 25, they followed Ortega from his residence to a storage facility, where Ortega entered a storage unit and left with a black bag. Investigators conducted a traffic stop on Ortega’s vehicle and during a search of the vehicle, recovered approximately two kilos of methamphetamine from a compartment. A later search of the storage unit resulted in the recovery of approximately 4½ kilos of liquid methamphetamine, $13,000, and a 9 mm handgun with an obliterated serial number. Investigators determined that Ortega rented the storage locker using a fake Mexican driver’s license bearing his photograph but the name of Jose Veltran Perez.
Keith Alcos pleaded guilty to conspiracy to possess a controlled substance with intent to distribute methamphetamine, and is scheduled to be sentenced on Jan. 8, 2015. Richardson, Jr. and Flores are fugitives.This case was investigated by the FBI, IRS Criminal Investigation, DEA, and Las Vegas Metropolitan Police Department, and prosecuted by Assistant U.S. Attorney Amber M. Craig.
Melbourne Man Pleads Guilty to Production of Child PornographyRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces that Eugene Edward Hudome (60, Melbourne) has pleaded guilty to using a minor to produce images of child pornography. He faces a mandatory minimum penalty of 15 years, up to 30 years, in federal prison. Hudome’s sentencing is scheduled for April 2, 2015.
According to the plea agreement, in 2003, Hudome used a camcorder to produce pornographic images of a female minor. In 2014, he uploaded at least two pornographic images of female minors onto his Microsoft SkyDrive account, after which Microsoft notified law enforcement. Agents subsequently executed a search warrant at Hudome’s residence and recovered a video, 170 CD/DVDs, and a computer, all of which contained pornographic images of minor victims. Agents also located additional child pornography on other electronic devices and storage media. During an interview with the agents, Hudome admitted that he had produced the pornography of the original female minor victim sometime in 2003, as she slept in his residence. He further admitted to subsequently converting the images from videotape to digital media.
This case was investigated by the Federal Bureau of Investigation and the Brevard County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Andrew C. Searle.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Marion County Man Sentenced to Seven Years for Receiving Child PornographyRead the Press Release
Ocala, Florida – Senior United States District Judge W. Terrell Hodges sentenced Dominick Nardone (35, Belleview) yesterday to seven years in federal prison for receiving images of child pornography. In addition to the prison term, he will be required to serve a 10-year term of supervision following his release and must register as a sex offender. Nardone pleaded guilty on August 26, 2014.
According to court documents, on January 13, 2014, federal agents executed a search warrant at Nardone’s Belleview residence, after discovering Internet Protocol (IP) addresses linked to known images of child pornography at that location. During an interview with agents, Nardone admitted that he had been downloading child pornography since “sometime in the 1990s.” He expressed a preference for images of young boys between the ages of three and eleven. Nardone also told the agents that they would find thousands of images and movie files of child pornography on his personal computer and on multiple CDs and DVDs throughout the home. A forensic examination of these items subsequently confirmed that Nardone had received approximately 85,000 images of child pornography over the Internet.
This case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). It was prosecuted by Assistant United States Attorney Robert E. Bodnar, Jr.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Man Pleads Guilty to Violation of Outer Continental Shelf Lands ActRead the Press Release
U.S. Attorney Kenneth A. Polite announced that SEAN GRANGER, 36, of Rayne, Louisiana, pleaded guilty to knowingly and willfully tampering with a method of record required to be maintained under the Outer Continental Shelf Lands Act.
According to court documents, on June 4, 2012, GRANGER was employed as a coil tubing supervisor to perform coil tubing services on a well at a drilling rig located in the Gulf of Mexico at Ship Shoal 359 in the Eastern District of Louisiana. Prior to starting the contracted coil tubing services at Ship Shoal 359, GRANGER tested his coil tubing unit’s blowout preventer. A coil tubing unit should not be placed into service for the contract until all the BOP components pass pressure testing.
The results of BOP tests are recorded on a circular graphic chart known as the BOP pressure test chart. To record pressures, a test chart is placed into a chart recorder that has a needle with a pen attached to it. As the recorder spins, the needle makes a record on the test chart of how much pressure the BOP components are holding. The BOP test chart is the record that inspectors review to determine if the BOP units are functioning properly.
On June 4, there were irregularities in the BOP testing process. Rather than take action to properly document the pressures of the BOP components or remedy the irregularities in the testing, GRANGER tampered with the pressure test chart by spinning it on the recorder. When inspectors reviewed the pressure test chart a few days later, they were unable to determine whether the BOP on the coil tubing unit was functioning properly.
U.S. District Court Judge Sarah Vance scheduled sentencing for March 18, 2015. GRANGER’s conviction carries a maximum term of imprisonment of 10 years and/or a maximum fine of $250,000.
U.S. Attorney Polite praised the work of the Department of Interior-Office of Inspector General and Bureau of Safety and Environmental Enforcement for their work on this matter. Assistant United States Attorney Emily K. Greenfield of the United States Attorney’s Office’s National Security Unit prosecuted the case.
Man Admits Robbing Two Banks in Amarillo in One WeekRead the Press Release
LUBBOCK, Texas — Jon-Michael Murray, 30, most recently of Arizona, pleaded guilty this afternoon before U.S. District Judge Mary Lou Robinson to one count of bank robbery, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Murray, who remains in federal custody, faces a maximum statutory penalty of 20 years in federal prison and a $250,000 fine. A sentencing date was not set.
According to documents filed in the case, Murray admitted committing the August 27, 2014, robbery of the Wells Fargo Bank located at 1838 S. Georgia Street in Amarillo and the September 2, 2014, robbery of the Wells Fargo Bank located at 200 S. Washington Street in Amarillo. Murray claimed he committed the robberies because he was short of money after moving to Amarillo and trying to care for his family.
He committed both robberies during the early afternoon hours. He entered each bank, wearing a dark cap and sunglasses, and in each robbery, he presented a threatening demand note to a teller. On one of the notes, he wrote, “Put all the money in the bag and nobody gets hurt I know where you work so be smart.” A hangman, smiley face, stitches, and a tombstone with the letters “RIP” were also drawn on the note. During each robbery, a teller gave him cash and afterwards, he fled on foot. Video surveillance from both robberies showed the robber to be the same person. Video surveillance from nearby businesses showed that following the August 27 robbery, he later drove a silver minivan with no front license plate and no visible registration or inspection stickers in the front windshield.
The day after the September 2 robbery, however, an officer with the Amarillo Police Department spotted and stopped what appeared to be the silver mini-van from the August 27 robbery. Murray was the driver of the vehicle. Officers then searched his vehicle and residence and additional evidence, including clothing worn during the robberies and cash taken from the banks, was found.
The FBI and the Amarillo Police Department investigated. Assistant U.S. Attorneys Tim Hammer and Joshua Frausto are prosecuting.
Lubbock Man Faces up to 10 Years in Federal Prison for Possessing Child PornographyRead the Press Release
LUBBOCK, Texas — A 57-year-old Lubbock, Texas, resident appeared in federal court yesterday and pleaded guilty to one count of possession of child pornography, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Rassie Cleveland Martin, who remains on bond, faces a maximum statutory penalty of 10 years in federal prison, a $250,000 fine and a lifetime of supervised release. U.S. District Judge Sam R. Cummings ordered a presentence investigation report with a sentencing date to be set after the completion of that report.
According to plea documents filed in the case, Martin used a desktop computer at his residence to search the Internet for images and videos of child pornography. He searched with the intent of locating material depicting minors engaging in sexually explicit conduct, and in the course of searching for this material, located, downloaded, and viewed numerous images and videos constituting child pornography.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about Internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) investigated. Assistant U.S. Attorney Steven M. Sucsy is prosecuting.
Lengthy Prison Sentence for Possessing Child PornographyRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced the sentencing of Christopher Oates, age 37, a resident of Columbus, Georgia, on November 24, 2014, by the Honorable Clay D. Land, Chief United States District Judge for the Middle District of Georgia, in Columbus, Georgia.On September 5, 2014, following a three day jury trial, Mr. Oates was convicted of one count of possession of child pornography. He was sentenced by Chief Judge Land to serve ten (10) years in prison (120 months), followed by lifetime supervised release.
In 2012, Homeland Security Investigations (HSI), while investigating the distribution of child pornography on the Internet, downloaded several files containing child pornography from an individual on a peer-to-peer file sharing network. HSI traced the user’s Internet Protocol (IP) address to the Internet service provider, who in turn provided law enforcement with the subscriber’s name and address.
Mr. Oates was later interviewed by HSI Agents and made several incriminating statements. His computer was seized and later searched pursuant to a valid search warrant. A forensic examination of Mr. Oates' computer revealed evidence that he had been searching for, viewing, and downloading child pornography. Numerous videos and images depicting children engaged in sexual acts were discovered on his computer.
“Child victims are subject to being victimized again and again every time someone views or downloads a photo or video depicting child pornography. The diligence and good work by Homeland Security helped us get one more criminal away from his computer. At least for the next 10 years, he won’t be downloading any child pornography,” said United States Attorney Michael Moore.
The case was investigated by Homeland Security Investigations (HSI) and prosecuted by Assistant United States Attorney Crawford Seals.
Inquiries regarding this case should be directed to Pamela Lightsey, Public Affairs Specialist, United States Attorney’s Office, at (478) 621-2603.
Laguna Pueblo Man Sentenced to Federal Prison for Assault ConvictionRead the Press Release
ALBUQUERQUE – Keith J. Carr, 30, a member of Laguna Pueblo, N.M., was sentenced yesterday to a year and a day in federal prison for his assault conviction. Carr will be on supervised release for three years after he completes his term of incarceration.
Carr was arrested on Feb. 28, 2014, on an indictment charging him with assault resulting in serious bodily injury. According to the indictment, the assault, which injured another Laguna Pueblo man, occurred on Dec. 20, 2012, within Laguna Pueblo in Cibola County, N.M.
On June 27, 2014, Carr pled guilty to the indictment. Carr admitted that the victim sustained serious bodily injury on Dec. 20, 2012, when Carr crashed the vehicle he was driving and in which the victim was a passenger. According to the plea agreement, Carr was intoxicated and driving at a high rate of speed when he lost control of his vehicle and caused the vehicle to roll and crash. The victim sustained multiple fractures, nasal bone fractures, fracture of the pneumothorax, orbital fractures, and rib fractures as a result of the assault.
This case was investigated by the Laguna/Acoma Agency of the BIA’s Office of Justice Services and was prosecuted by Assistant U.S. Attorney Paul H. Spiers.Justice Department Requires Divestiture in Order for Nexstar to Proceed with its Acquisition of Communications Corporation of AmericaRead the Press Release
The Department of Justice announced today that it will require Nexstar Broadcasting Group Inc., Mission Broadcasting Inc., Communications Corporation of America (CCA), and Silver Point Partners L.P. to divest their interests in WEVV‑TV, a CBS and FOX affiliate in Evansville, Indiana, in order for Nexstar to proceed with its acquisition of CCA. Without this divestiture, the department said, Nexstar, with its control of Mission would have gained a dominant position in broadcast television spot advertising in the Evansville, Indiana area, resulting in higher prices to advertisers. The Nexstar-CCA transaction is valued at approximately $270 million.
The Antitrust Division filed a civil antitrust lawsuit today in the U.S. District Court for the District of Columbia to block the proposed acquisition. Concurrent with the filing of the lawsuit, the division filed a proposed settlement that, if approved by the court, would resolve the competitive concerns alleged in the lawsuit.
“This divestiture maintains the status quo in Evansville, Indiana, and avoids a loss of competition for local broadcast television spot advertising,” said Bill Baer, Assistant Attorney General in charge of the Antitrust Division. “By ensuring that Nexstar does not come to control three of four major network affiliations, consumers will benefit as these stations continue to compete to attract viewers and advertisers.”
The department’s complaint alleges that the proposed acquisition would lessen competition in broadcast television spot advertising in the Evansville, Indiana, Designated Market Area (DMA). In the Evansville DMA, the transaction would result in Nexstar owning or controlling three TV stations and three of the four major broadcast network affiliations in Evansville. Had the transaction been consummated as originally proposed, Nexstar would have owned or controlled WEHT (ABC affiliate), WEVV-TV (CBS & FOX affiliate), and WTVW (CW affiliate). To remedy this likely harm, the proposed settlement requires Nexstar and
CCA to divest CCA’s WEVV-TV to Bayou City Broadcasting Evansville Inc., or an alternative, independent buyer to be approved by the United States.
Nexstar, a Delaware corporation with headquarters in Irving, Texas, owns or operates 72 broadcast television stations located in 41 markets in 18 states. Nexstar reported revenues of $378 million for 2013. Mission, a Delaware corporation with headquarters in Westlake, Ohio, owns broadcast television stations for which Nexstar sells the advertising time. Nexstar receives substantially all of Mission’s available cash and is deemed to have a controlling interest in Mission under generally accepted accounting principles.
CCA, a Delaware corporation with headquarters in Lafayette, Louisiana, owns or operates 25 broadcast television stations in 10 markets throughout Louisiana, Texas and Indiana. CCA had revenues of $98.3 million for 2012. Silver Point Capital Fund L.P., based in Greenwich, Connecticut, controls and is the ultimate parent entity of CCA.
Bayou City Broadcasting Evansville Inc., a Delaware corporation headquartered in Boston, Massachusetts, is a newly formed entity that will be run by individuals with significant experience owning, managing and operating broadcast television stations.
As required by the Tunney Act, the proposed settlement, along with a competitive impact statement, will be published in the Federal Register. Any person may submit written comments concerning the proposed settlement during a 60‑day comment period to Scott A. Scheele, Chief, Telecommunications & Media Enforcement Section, Antitrust Division, U.S. Department of Justice, 450 Fifth Street, N.W., Suite 7000, Washington, D.C. 20530. At the conclusion of the 60‑day comment period, the U.S. District Court for the District of Columbia may approve the proposed settlement upon finding that it is in the public interest.