Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Tuesday 14 October 2014
Three Plead Guilty to Charges Related to Methamphetamine Trafficking in Kern CountyRead the Press Release
FRESNO, Calif. — Three men entered guilty pleas to drug-related charges arising out of two different cases, United States Attorney Benjamin B. Wagner announced. In the first case, two Southern California residents pleaded guilty today to use of an interstate facility to aid racketeering, and in the second case, a Bakersfield resident pleaded guilty today to conspiring to distribute and possess with intent to distribute methamphetamine.
Southern California Men Plead Guilty to Using a Cellphone to Aid Racketeering
According to court documents, Luis Alfonso Mendivil, 22, of Riverside, and Jonathen Leyva, 27, of Rialto, admitted that they conspired with others to distribute approximately 3.5 kilograms of methamphetamine. From September 1, 2013, to October 22, 2013, they used a cellphone to carry on an unlawful methamphetamine distribution operation in Bakersfield.This case is the product of an investigation by the Drug Enforcement Administration and the Kern County Sheriff’s Department.
Both men are scheduled to be sentenced by United States District Judge Lawrence J. O'Neill on December 22, 2014. Mendivil and Levya face a maximum statutory penalty of five years in prison and a $250,000 fine. 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.Bakersfield Man Pleads Guilty to Methamphetamine Distribution Conspiracy
According to court documents, Juan Angel Lopez, 32, of Bakersfield, admitted that from March 1, 2014, to July 10, 2014, he knowingly and intentionally conspired with others to distribute methamphetamine in Bakersfield. On April 18, 2013, a Kern County Sheriff’s deputy stopped Lopez’s vehicle and, hidden under the center console, found two firearms, a distribution amount of methamphetamine in a clear plastic bag, and $844 in cash. Also found in the vehicle were four cellphones. Lopez admitted that he knowingly possessed the 74.31 grams of methamphetamine seized from his vehicle and also acknowledged that he possessed the two firearms, which he was prohibited from possessing since he was a previously convicted felon.This case is the product of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation that is composed of the Drug Enforcement Administration, the Kern County Sheriff’s Office, the Bakersfield Police Department, the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Southern Tri-County High Intensity Drug Trafficking Area Task Force.
Lopez is scheduled to be sentenced by Judge O'Neill on December 22, 2014. Lopez faces a maximum statutory penalty of life in prison and a $10 million fine. 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.
Assistant United States Attorney Brian Delaney is prosecuting both cases.
Three Convicted of Conspiracy to Defraud Gulf Oil Spill FundRead the Press Release
BIRMINGHAM -- A federal jury on Monday convicted three people of conspiracy and fraud for their family run scheme to steal more than $3 million from the claims fund established by British Petroleum for victims of the 2010 Deepwater Horizon oil spill, announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Richard D. Schwein Jr.
Following a two-week trial before U.S. District Judge Sharon Lovelace Blackburn, the jury deliberated about seven hours and returned guilty verdicts on all 55 counts against MARCELLA TRUSS, 53, her husband, MARTEE DAVIS, 42, both of Grand Bay, Ala., and Marcella Truss' brother, HOWARD LENARD CARROWAY, 42, of Mobile. Sentencing dates have not been set.
All three were convicted of conspiracy to commit wire and mail fraud occurring between August 2010 and December 2011 for filing false claims with the Gulf Coast Claims Facility. Evidence at trial showed the oil spill fund paid almost $2 million on the fraudulent claims. The jury also convicted Truss, Davis and Carroway of aggravated identity theft in carrying out the scheme.
The jury convicted Truss on 31 counts of wire fraud for submitting, or causing to be submitted, false claims to the GCCF and on one count of mail fraud related to a check received as part of the scheme. Davis was convicted on three wire fraud counts.
Truss and Davis were convicted of laundering money stolen from the GCCF. Carroway was convicted on two counts of obstructing justice for telling recruits in the scheme to lie to prosecutors. He also was convicted on five wire fraud counts.
BP owned the Macondo Oil Well where the Deepwater Horizon drilling rig exploded in 2010. BP established the GCCF in June 2010 to administer and settle claims made against the company by individuals or business for losses, damages or other costs resulting from the massive oil spill.
"The people convicted Monday saw a disaster that harmed the Gulf of Mexico, much of its coastline and thousands of people, and their choice was to exploit the disaster and steal from the fund intended to help its victims," Vance said. "We place a high priority on investigating and prosecuting fraud related to natural and man-made disasters to ensure that funds available to help victims of those tragedies do not fall into the hands of criminals," she said.“Those who seek to scam benefits intended for honest citizens genuinely affected by disasters can expect the FBI to be right behind them, and ultimately to face the same result as those convicted today,” said Schwein.
Truss, Davis and Carroway originally were charged along with two other people, Truss' son, Robert Truss III, 26, of Houston, and Cedric Dion Ravizee, 37, of Birmingham. Robert Truss pleaded guilty in August to conspiracy, money laundering, wire fraud and mail fraud. Ravizee pleaded guilty in June to one count of wire fraud.
This week's guilty verdicts bring to 20 the number of people convicted in the Northern District of Alabama on charges related to the scheme to defraud the GCCF. Marcella and Robert Truss, Davis and Carroway recruited the 16 other defendants to provide personal information that was used to file false claims. Those recruited then received claim payments and provided a portion of the payments to the ringleaders.
All of the claims falsely stated that the individual had worked for a company called Built by Request and had lost wages because of the Deepwater Horizon incident. Marcella Truss owned BBR and dissolved the company after the scheme played out.
The maximum penalty for conspiracy is five years in prison and a $250,000 fine. The maximum penalty for wire fraud and mail fraud is 20 years in prison and a $250,000 fine. The penalty for aggravated identity theft is two years in prison added to any sentence imposed for the underlying felony. The maximum penalty for obstruction of justice is 20 years in prison and a $250,000 fine.The money-laundering charge for which Davis was convicted carries a maximum penalty of 20 years in prison and a maximum fine of $500,000, or twice the value of the money involved in the crime, whichever is greater. The money-laundering charge for which Marcella Truss was convicted carries a maximum penalty of 10 years in prison and $250,000 fine.
The FBI investigated this case. Assistant U.S. Attorneys Henry Cornelius, Jacquelyn M. Hutzell and Xavier O. Carter are prosecuting the case.
###Three Chiropractors Sentenced in Staged Automobile Accident SchemeRead the Press Release
93 defendants have been charged to date in Operation Sledgehammer I-VI
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Jeff Atwater, Florida Chief Financial Officer, and Dave Aronberg, State Attorney, Office of the State Attorney for Palm Beach County, announce that defendants Kenneth Karow, 54, chiropractor, of West Palm Beach, Hermann J. Diehl, 44, chiropractor, of Miami, and Hal Mark Kreitman, 50, former chiropractor, of Miami Beach, were sentenced before U.S. District Judge Kenneth A. Marra for their participation in a massive staged automobile accident scheme based in Palm Beach and Miami-Dade Counties.
Defendant Karow was sentenced to 11 years in prison; defendant Diehl was sentenced to nine years in prison; and defendant Kreitman was sentenced to eight years in prison.
After a seven-week trial before U.S. District Judge Kenneth A. Marra, a federal jury in West Palm Beach convicted all of the defendants of one count of conspiracy to commit mail fraud, in violation of Title 18, United States Code, Section 1341, all in violation of Title 18, United States Code, Section 1349; and one count of conspiracy to commit money laundering, in violation of Title 18, United States Code, Sections 1956(a)(1), all in violation of Title 18, United States Code, Section 1956(h). Defendant Karow was convicted of 48 substantive counts of mail fraud, in violation of Title 18, United States Code, Sections 1341 and 2, and 11 substantive counts of money laundering, in violation of Title 18, United States Code, Sections 1956(a)(1)(A)(i), 1956(a)(1)(B)(i), 1956(a)(1)(B)(ii) and 2. Defendant Diehl was convicted of two substantive counts of mail fraud and three substantive counts of money laundering. Defendant Kreitman was convicted of 21 substantive counts of mail fraud and two substantive counts of money laundering.
According to the fourth superseding indictment, these defendants were charged with defrauding insurance companies out of Personal Injury Protection (“PIP”) insurance payments through the use of the United States Mails. This indictment alleges that the fraud was committed in a number of ways, including: (1) by soliciting licensed chiropractors, including defendants Karow and Diehl, who would serve as the “named owners” of chiropractic clinics although others would maintain financial control over the businesses in order to avoid Florida’s licensing restrictions; (2) by recruiting individuals to participate in staged automobile accidents or persons who had been in real automobile accidents but who had not suffered any injuries to attend chiropractic clinics and make claims for reimbursement for treatments that were neither needed nor received; (3) submitting fraudulent claims to insurance companies stating that the bills were for treatments that were medically necessary and were actually received when neither was true; (4) submitting claims to insurance companies without attempting to collect co-pays and deductibles from the insureds and without disclosing that fact to the insurance companies; and (5) converting the money collected from the insurance companies to cash which would be used to pay recruiters, patients, and other participants, and to enrich the members of the conspiracy.
This superseding indictment was the latest in a series of federal and state charges that have been part of a four-year investigation into a massive staged automobile accident/fraudulent chiropractic clinic scheme based in Palm Beach and Miami-Dade Counties. The joint federal and state law enforcement investigation, dubbed Operation Sledgehammer, has resulted in charges filed against 93 defendants for their participation in this automobile insurance fraud scheme. Of those 93 defendants, 57 have been charged federally by the U.S. Attorney’s Office, resulting in court-ordered restitution of more than $11 million to the defrauded insurance companies, and 51 of those 57 defendants have been convicted by jury or by guilty plea. The remaining six defendants are fugitives. Another thirty-six defendants have been charged by the Palm Beach County State Attorney’s Office.
According to the evidence presented at trial, between October 2006 and December 2012, the defendants and their co-conspirators staged automobile accidents and thereafter caused the submission of false insurance claims through chiropractic clinics they controlled. To execute the scheme, the true owners of the chiropractic clinics allegedly recruited individuals, who had the medical or chiropractic licenses required by the state to open a clinic, to act as “nominee owners” of the clinics. The defendants also recruited individuals, whom they referred to as “Macho” and the “Hembra” or the “Perro” and “Perra,” to participate in the accidents, and others to help the clinics launder the insurance proceeds. The defendants also hired complicit chiropractors, including Diehl, Karow and Kreitman, and therapists who prescribed and billed for unnecessary treatments and/or for services that had not been rendered. Thereafter, complicit clinic employees prepared and submitted claims to the automobile insurance companies for payment for these unnecessary or non-rendered services. Twenty-one clinics participated in this scheme.
Mr. Ferrer commended the efforts of the FBI, IRS-CI, the Florida Division of Insurance Fraud, the Palm Beach County State Attorney’s Office, and the Greater Palm Beach County Health Care Fraud Task Force for their outstanding work in this case. Mr. Ferrer also recognized the National Insurance Crime Bureau (NICB) for its collaboration and assistance in this investigation. This case was handled by Assistant U.S. Attorneys A. Marie Villafaña and E.J. Yera.
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.
Registered Sex Offender Sentenced for Distributing Child PornographyRead the Press Release
ATLANTA – Billy Gene McCorkle, Jr., a registered sex offender, has been sentenced to 17 years in federal prison for distributing child pornography.
“McCorkle’s choice to continue to exploit children, even as a convicted sex offender has resulted in his exit from society” said United States Attorney Sally Quillian Yates. “Recidivist offenders like this defendant prey on the most innocent in our society who depend on us to protect them. We will continue to prosecute those who traffic in these horrific images and exhibit such blatant disregard for the welfare of young children.”
“The defendant’s repeated sexual exploitation of children is an egregious crime and well deserves this lengthy sentence,” said Brock D. Nicholson, Special Agent in Charge of ICE Homeland Security Investigations in Atlanta. “The distribution of child pornography continues the exploitation of its victims and creates a demand for the further abuse of other children. HSI is grateful to have such a strong partner in the U.S. Attorney’s Office for the Northern District of Georgia to aggressively investigate and prosecute the perpetrators of these vile crimes.”
According to United States Attorney Yates, the charges, and other information presented in court: On November 4, 2013, a special agent with the Department of Homeland Security Investigations (HSI) discovered that McCorkle had accessed a website used to exchange images of child pornography. On November 5, 2013, the agent, acting in an undercover capacity, sent an email to McCorkle, based on his profile information. During the email exchange that followed, McCorkle offered to, and did, send child pornography to the undercover agent depicting a young, nude girl who appeared to be about eight years old. The subsequent investigation revealed multiple occasions that McCorkle sent and received files containing child pornography.
On December 13, 2013, HSI special agents arrested McCorkle for distributing child pornography, and related offenses. At the time of his arrest, federal agents also seized a cellular telephone from McCorkle. When agents searched McCorkle’s telephone pursuant to a search warrant, they found more than 13,000 images of child pornography. Agents also learned that McCorkle was a registered sex offender, having been previously convicted of child molestation on February 22, 2006.
McCorkle, 46, of Canton, Ga., was sentenced to 17 years in federal prison, to be followed by lifetime supervised release. McCorkle pleaded guilty on May 8, 2014.
The case was investigated by the Department of Homeland Security.
Assistant United States Attorney Richard S. Moultrie, Jr. prosecuted the case.
This case is a part of Project Safe Childhood. In February 2006, the Attorney General launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices around the country, Project Safe Childhood marshals federal, state and local resources to apprehend and prosecute individuals who exploit children. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Raleigh Man Pleads Guilty to Child Pornography ChargeRead the Press Release
RALEIGH – United States Attorney Thomas G. Walker announced that in federal court today, MICHAEL JOSEPH PLOCAR, 62pled guilty before Chief United States District Judge James C. Dever III to receipt of child pornography, in violation of Title 18, United States Code, Section 2252(a)(2), during his arraignment.
On March 19, 2014, a Criminal Indictment was filed charging PLOCAR with the violation.
In October 2012, according to the investigation, an undercover officer discovered that PLOCAR’s IP address was downloading and sharing Child Pornography (CP). On November 1, 2012, a search warrant was executed at PLOCAR’s home and he was present at the time. During his non-custodial interview, PLOCAR admitted that he had been downloading and viewing child pornography for the past several years. Agents seized several computers, as well as other media devices, including a harddrive which was located in a locked safe that PLOCAR admitted he used to back-up his CP files. A subsequent computer forensics examination of these items revealed approximately 44 videos of CP on 2 computers and 3 harddrives. The videos were lengthy, several over 30 minutes long.
At sentencing, scheduled for the January 12, 2015 term of court, PLOCAR faces up to 20 years imprisonment. If he has had prior convictions relating to aggravated sexual abuse, sexual abuse, abusive conduct involving a minor or ward, sex trafficking of children, or the production, receipt, possession, sale, distribution, shipment, or transportation of children pornography, the penalty increases to up to 40 years imprisonment.
Investigation of this case was conducted by HSI, Wake County Sheriff’s Office, Cary Police Department, and the North Carolina State Bureau of Investigation. Assistant United States Attorney Ethan Ontjes prosecuted the case for the United States.
This case was part of the Project Safe Childhood initiative, a national program aimed at ensuring that criminals exploiting children are effectively prosecuted by making full use of all available law enforcement resources at every level. For more information about this important national project, Project Safe Childhood, go to www.projectsafechildhood.gov.
Radiology Billing Company to Pay $1.95 Million to Resolve False Claims Act AllegationsRead the Press Release
ATLANTA - The United States Attorney’s Office announced that it has reached a settlement with Medical Business Service, Inc. (MBS), which agreed to pay $1.95 million to settle claims that it violated the False Claims Act by fraudulently changing diagnosis codes on claims to Medicare and Medicaid, in order to get the rejected claims paid on behalf of radiologists. MBS was located in Florida, with an office in Duluth, Ga.
“Billing companies provide a key check-point to combat medical billing fraud. Consequently, they will be examined with the same scrutiny as healthcare providers,” said United States Attorney Sally Quillian Yates.J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “Federal funds designated for use through the Medicare and Medicaid programs are much needed but limited. When those funds are not used as intended, the system does not work as intended and people suffer. The FBI will continue to work with its various law enforcement partners in dedicating significant investigative resources toward ensuring that these federally funded healthcare based programs are not abused.”
“The health care providers who contracted with MBS placed their trust in the company to correctly process claims and not submit fraudulent information to the Medicare and Medicaid programs,” said Derrick L. Jackson, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General in Atlanta. “The lack of compliance and oversight by MBS placed all these providers at risk. Billing services such as MBS have no less of a duty to ensure truthful information on claims than do the providers who use these services.”
The civil settlement resolves the United States’ investigation into MBS’s billing practices. The United States alleges that MBS improperly coded and billed claims by radiologists that were submitted to the Medicare and Medicaid programs. Medicare and Medicaid issue guidance stating that they will not pay for certain procedures given to patients with specific diagnoses. Medicare and Medicaid will reject claims for payment that combine those procedures and diagnoses. MBS allegedly changed the diagnosis codes on previously rejected claims to avoid those restrictions in order to have the claims paid. The settlement covers a three year period, 2008-2010, during which the conduct allegedly occurred.
This civil settlement resolves a lawsuit filed by Katlisa N. Vaughn under the qui tam, or whistleblower, provisions of the False Claims Act, which allow private citizens to bring civil actions on behalf of the United States and share in any recovery obtained. The case, pending in the Northern District of Georgia, is filed under United States of America, State of Florida, State of Georgia, State of New York, State of Tennessee, and State of Texas ex rel. Katlisa N. Vaughn v. Medical Business Service, Inc., Civ. No. 1:10-CV-2953. The Federal government will receive $1.917 million from the settlement, while Florida, Georgia, New York, and Texas will split the remainder of the settlement. Ms. Vaughn will receive a share of the settlement payment that resolves the qui tam suit that she filed. The claims settled in the civil settlement are allegations only, and there has been no determination of liability.This resolution is part of the government’s emphasis on combating health care fraud under the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced by Attorney General Eric Holder and Kathleen Sebelius, Secretary of the Department of Health and Human Services, in May 2009. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in that effort is the False Claims Act, which the Justice Department has used to recover more than $14 billion since January 2009 in cases involving fraud against federal health care programs. The Justice Department’s total recoveries in False Claims Act cases since January 2009 are over $20 billion.
This case was investigated by Special Agents of the Federal Bureau of Investigation and Health & Human Services, Office of Inspector General.
The civil settlement was reached by Assistant United States Attorney Christopher J. Huber.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Pittsburgh Man Pleads Guilty in FBI Investigation into Heroin TraffickingRead the Press Release
PITTSBURGH- A Pittsburgh resident pleaded guilty in federal court to a charge of conspiracy, United States Attorney David J. Hickton announced today.
Samuel Brooks, age 28, pleaded guilty to one count before Chief United States District Judge Joy Flowers Conti.
In connection with the guilty plea, the court was advised that from in and around June, 2013, and continuing thereafter to in and around May, 2014, the Brooks conspired with others to possess with intent to distribute and distribute 100 grams or more of heroin.
Judge Conti scheduled sentencing for Feb. 19, 2015, at 3:30 p.m. The law provides for a total sentence of a mandatory minimum of five years and up to a maximum total sentence of 40 years in prison, a fine of $5,000,0000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Amy L. Johnston is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation that led to the prosecution of Brooks.
Penn Yan Man Sentenced for Attempting to Obtain Money from Bank by ExtortionRead the Press Release
ROCHESTER, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Jonathan A. Karcher, 21, of Penn Yan, N.Y., who was convicted of attempting to extort money from the Lyons National Bank in Penn Yan, was sentenced by U.S. District Judge David G. Larimer to 41 months in prison.
Assistant U.S. Attorney Everardo A. Rodriguez, who handled the case, stated that on June 5, 2013, Karcher called the manager of Lyons National Bank and demanded that the manager take $15,000 in cash and leave it by a dumpster behind the Rite Aid store across the street from the bank. During that conversation, the defendant threatened the bank manager by informing her that he had information about the manager’s residence and children. Karcher later drove to the area of Lyons National Bank and parked in the Rite Aid parking lot across the street. The defendant then walked by the dumpster behind the store to determine if the $15,000 had been left there as he had directed the branch manager to do.
Subsequent investigation by the FBI and Penn Yan Police Department identified Karcher as the offender. Investigators tracked the defendant down through the analysis of records tied to the cellular telephone used in the call to the bank.
The sentencing is the culmination of a joint investigation on the part of the Penn Yan Police Department, under the direction of Chief Mark Hulse, and the Federal Bureau of Investigation.Patricia Merz and Christopher Mcguigan Convicted for Embezzling from Mother's Bennington EstateRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that a federal jury in Burlington on Friday found Patricia Merz, 57, of Niskayuna, New York, guilty on charges of conspiracy, interstate transportation of stolen money, wire fraud and forgery after a three-day trial in U.S. District Court. The week before, Christopher McGuigan, 52, of Rutland, Merz's brother and co-defendant, pleaded guilty to the conspiracy charge. Chief Judge Christina Reiss has released both defendants on conditions pending their sentencings, which have been scheduled for early next year.
Earlier this year, a federal grand jury in Rutland returned an indictment charging the defendants with conspiracy, wire fraud, interstate transportation of stolen money and forgery. According to the indictment, the defendants' mother, Annelise McGuigan, died in Bennington in 2009. She left no will. In late 2009, the Bennington probate court appointed Merz and McGuigan as co-administrators of their mother's estate. As administrators, they had a legal duty to prepare an inventory of estate assets, pay the estate's debts and render an accounting to the court.
According to the indictment, Annelise McGuigan owned a house in Rupert at the time of her death. With the court's permission, Merz and McGuigan sold the house in 2010, a sale which netted the estate about $180,000. Although Merz and McGuigan had received claims against the estate totaling more than $88,000 -- debts incurred for funeral expenses, property maintenance, credit card expenses and nursing home and medical care -- Merz and McGuigan never paid any of those obligations. Instead, they used virtually all of the estate funds to benefit themselves, expending all the estate funds within about one year. Merz withdrew about $50,000 from the estate account by forging McGuigan's signatures on numerous banking withdrawal slips.
Over 30,000 Students to Take Pledge Against Gun ViolenceRead the Press Release
United States Attorney Kenneth Polite announced that on Wednesday, October 15, 2014, over 30,000 students in over 70 schools across Southeast Louisiana will participate in his Office’s first district-wide Student Pledge Against Gun Violence Day.
Middle and high school students will sign a voluntary pledge promising that they will never take a gun to school, will never resolve a dispute with a gun, and will use their influence to prevent friends from using guns to resolve disputes. Elementary school children will make a simpler commitment, pledging that if they see a gun they will not touch it, they will assume that any gun they see might be loaded, and they will tell a teacher or a trusted adult.
In coordination with the Department of Justice’s Project Safe Neighborhoods program, the Student Pledge Against Gun Violence is a national program that recognizes the role that young people, through their own decisions, can play in reducing gun violence. This campaign against youth gun violence culminates each October in a Day of National Concern about Young People and Gun Violence. Students from around the country will join together in pledging to do their part to end gun violence. Over 10 million students nationwide have signed the pledge since its inception in 1996.
U.S. Attorney Polite stated that his Office began using the pledge during the 2013-14 school year, with approximately 2500 students signing the pledge at seven schools. Because of the outstanding response from school leaders and students, the Office decided to expand the initiative district-wide to include all schools in all 13 parishes, including Assumption, Jefferson, Lafourche, Plaquemines, Orleans, St. Bernard, St. Charles, St. James, St. John the Baptist, St. Tammany, Tangipahoa, Terrebonne, and Washington. "Our Office is pleased to take this opportunity to reach out to students, engage in a dialogue about gun violence and the importance of making right choices, and encourage them to become peacemakers of our time," stated U.S. Attorney Polite.
In addition to providing the pledges, members of the U.S. Attorney’s Office and other state, local, and federal law enforcement agencies will serve as speakers at several schools to talk to students about what they can do to reduce gun violence in their communities.
The participating schools and law enforcement agencies are as follows:
Schools:
Algiers Technology Academy (Orleans Parish)
Alice Birney Elementary School (Jefferson Parish)
Assumption High School (Assumption Parish)
Benjamin Franklin Elementary Mathematics and Science School (Orleans Parish)
C.T. Janet Elementary School (Jefferson Parish)
Christian Brothers School (Orleans Parish)
De La Salle High School (Orleans Parish)
Dwight D. Eisenhower Academy of Global Studies (Orleans Parish)
East Houma Elementary School (Terrebonne Parish)
East St. John Elementary School (St. John Parish)
East St. John High School (St. John Parish)
Emily C. Watkins Elementary (St. John Parish)
Esperenza Charter School (Orleans Parish)
Fannie C. Williams Charter School (Orleans Parish)
Fifth Ward Elementary (St. John Parish)
Fisher Middle/High School (Jefferson Parish)
G. T. Woods Elementary School (Jefferson Parish)
Garyville/Mt. Aire Math & Science Magnet (St. John Parish)
Gentilly Terrace Charter School (Orleans Parish)
Golden Meadow Lower Elementary School (Lafourche Parish)
Gretna No. 2 Academy for Advanced Studies (Jefferson Parish)
Hammond Junior High Magnet School (Tangipahoa Parish)
Harry Hurst Middle School (St. Charles Parish)
Helen Cox High School (Jefferson Parish)
Henry Ford Middle School (Jefferson Parish)
International High School of New Orleans (Orleans Parish)
J.C. Ellis Elementary (Jefferson Parish)
Jefferson Elementary (Jefferson Parish)
John L. Ory Communication Arts Magnet School (St. John Parish)
Johnson Gretna Park Elementary School (Jefferson Parish)
Joshua Butler Elementary School (Jefferson Parish)
KIPP Believe Primary School (Orleans Parish)
KIPP Renaissance High School (Orleans)
Lafayette Academy Charter School (Orleans Parish)
Lake Area New Tech Early College High School (Orleans Parish)
Lake Forest Charter School (Orleans Parish)
Lake Pontchartrain Elementary School (St. John Parish)
LaPlace Elementary School (St. John Parish)
Laurence D. Crocker College Prep (Orleans Parish)
Livaudais Middle School (Jefferson Parish)
Martin Behrman Elementary (Orleans Parish)
Mary McLeod Bethune Elementary School (Orleans Parish)
Mater Dolorosa Catholic School (Tangipahoa Parish)
McDonogh 32 Literacy Charter School (Orleans Parish)
McDonogh 26 Elementary (Jefferson Parish)
McDonogh 42 Elementary Charter School (Orleans Parish)
Medard H. Nelson Charter School (Orleans Parish)
Mildred Harris Elementary (Jefferson Parish)
Miller Wall Elementary (Jefferson Parish)
Myrtle C. Thibodeaux Elementary (Jefferson Parish)
New Orleans Military and Maritime Academy (Orleans Parish)
Northshore High School (St. Tammany Parish)
Our Lady of Grace School (St. John Parish)
Paul J. Solis Elememtary (Jefferson Parish)
Pierre A. Capdau Charter School (Orleans Parish)
Pierre Part Middle School (Assumption Parish)
St. Augustine High School (Orleans Parish)
St. Benedict the Moor (Orleans Parish)
St. Bernard Middle School (St. Bernard Parish)
St. Christopher School (Jefferson Parish)
St. Peter Claver Catholic School (Orleans Parish)
St. Mary's Academy (Orleans Parish)
Sylvanie Williams College Prep (Orleans Parish)
T. H. Harris Middle School (Jefferson Parish)
The Good Shepherd School (Orleans Parish)
Vic A. Pitre Elementary School (Jefferson Parish)
Village East Middle School (Terrebonne Parish)
West St. John Elementary (St. John Parish)
West St. John High School (St. John Parish)
Wesley Ray Elementary School (Washington Parish)
William Fischer Accelerated Academy (Orleans Parish)
William Hart Elementary (Jefferson Parish)Agencies:
Assumption Parish Sheriff’s Office
Bureau of Alcohol, Tobacco, Firearms and Explosives
Federal Bureau of Investigation
Gretna Police Department
Houma Police Department
Houma Sheriff’s Department
Jefferson Parish Sheriff’s Office
New Orleans Police Department
St. John Parish Sheriff’s Office
Tangipahoa Parish Sheriff’s Office
U.S. ProbationOmaha Man Pleads Guilty to Tax EvasionRead the Press Release
On October 9, 2014, Todd Shannon Bartusek, age 43 of Omaha, Nebraska, pled guilty to one count of Tax Evasion, a felony, before the Honorable Joseph F. Bataillon, Senior United States District Court Judge. The penalty for such offense includes a term of imprisonment of up to five years, a $250,000 fine, or both such fine and imprisonment, and a term of supervised release of up to three years. Bartusek is to be sentenced on January 9, 2015.
An investigation conducted by the Internal Revenue Service determined that between at least 2007 and 2010, Bartusek operated a sports bookmaking business while a resident of the District of Nebraska. While operating the sports bookmaking business, Bartusek collected losses, receiving payment in the form of cash, checks, and internet payments. Bartusek did not report any of the income he received from the sports bookmaking business on his 2007, 2008, 2009, and 2010 personal income tax returns. The unreported income for 2007, 2008, 2009, and 2010 resulted in an additional income tax due and owing the Internal Revenue Service of at least $256,902.
This case was investigated by the Internal Revenue Service.
November 2014 ElectionsRead the Press Release
GREENSBORO, N.C. – Middle District of North Carolina United States Attorney Ripley Rand announced today that Assistant United States Attorney Robert M. Hamilton will lead the efforts of the United States Attorney’s Office in connection with the Justice Department=s nationwide Election Day Program for the upcoming November 4, 2014, general elections. AUSA Hamilton has been appointed to serve as the Election Officer for the Middle District of North Carolina. In this capacity, AUSA Hamilton is responsible for overseeing the District=s handling of allegations of election fraud and voting rights abuses, as well as working in consultation with the Justice Department as to these allegations.
United States Attorney Ripley Rand said, "Every citizen must be able to vote without fear of interference or discrimination. Every citizen’s vote must be counted without fear that it will be stolen because of fraud. The Department of Justice will act promptly and aggressively to protect the integrity of the election process."
The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open on Election Day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are efforts to uncover illegal voting may violate federal voting rights law. Furthermore, federal law protects the right of voters to mark their own ballots or to be assisted in voting by a person of their choice.
Voting is the cornerstone of American democracy. We all must ensure that those who are entitled to vote exercise their rights if they choose, and that those who seek to corrupt the voting process are brought to justice. With respect to complaints of election fraud or voting rights abuses, United States Attorney Ripley Rand stated that AUSA Robert M. Hamilton will be on duty in the Middle District of North Carolina while the polls are open. AUSA Hamilton and the United States Attorney’s Office will ensure that such complaints are directed to the appropriate authorities. AUSA Hamilton can be reached by the public at the following telephone number: 336-333-5351.
Furthermore, the Federal Bureau of Investigation [FBI] will have Special Agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on Election Day. The local FBI field office can be reached by the public at 336-855-7770.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division’s Voting Section in Washington by phone at 1-800-253-3931 or (202) 307-2767, by fax at (202) 307-3961, by email to [email protected] or by complaint form at http://www.justice.gov/crt/complaint/votintake/index.php.
United States Attorney Ripley Rand said, “Ensuring that our elections are free and fair depends in large part on the cooperation of the public. If you have specific information about voters being harassed or discriminated against, voter fraud, or other voting irregularities, please make that information available immediately to our Office, the FBI, or the Department of Justice’s Civil Rights Division.”
Norwalk Man Sentenced to 5 Years in Federal Prison for Distributing CocaineRead the Press Release
Follow @USAO_CT
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that LAMAR POWELL, 60, of Norwalk, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 60 months of imprisonment, followed by four years of supervised release, for his role in a southwestern Connecticut narcotics trafficking ring.
This matter stems from a six-month investigation spearheaded by the Drug Enforcement Administration and the Stamford Police Department’s Narcotics and Organized Crime Squad. As a result of the investigation, 20 individuals were charged with various federal offenses related to the distribution of cocaine and crack cocaine in Bridgeport, Norwalk and Stamford. In addition, law enforcement officers seized more than $100,000 in cash, 500 grams of cocaine, 350 grams of crack cocaine, several vehicles and jewelry.
According to court documents and statements made in court, the investigation revealed that Marvin Wooten, also known as “Smash,” of Norwalk, was operating a significant crack cocaine distribution ring in Fairfield County. Between September 2012 and January 2013, Wooten regularly purchased multi-hundred gram quantities of cocaine from various sources of supply, including POWELL, and also from individuals who were distributing cocaine out of a Bridgeport barbershop. Wooten then converted the cocaine to crack cocaine and distributed it to other dealers and customers.
During the investigation, Wooten met with POWELL on several occasions to purchase hundreds of grams of cocaine.
On July 11, 2013, POWELL pleaded guilty to one count of conspiracy to possess with the intent to distribute 28 grams or more of cocaine base (“crack cocaine”) and 500 grams or more of powder cocaine.
Wooten also pleaded guilty and, on May 22, 2013, was sentenced to 120 months of imprisonment.
This matter has been investigated by the Drug Enforcement Administration’s Bridgeport High Intensity Drug Trafficking Area (HIDTA) Task Force – including the Bridgeport, Stamford, Norwalk, Milford, Westport, and Stratford Police Departments, and the Connecticut State Police – and the Stamford Police Department’s Narcotics and Organized Crime Squad. The U.S. Marshals Service also assisted in the arrests of several of the defendants.
This case is being prosecuted by Assistant U.S. Attorneys Sarah Karwan and Robert Spector.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]New Jersey Woman Sentenced to Prison for Defrauding Non-ProfitRead the Press Release
PHILADELPHIA – Rochelle Biesenthal, 64, of Brigantine, New Jersey, was sentenced today to 12 months and a day in prison. On May 28, 2014, Ms. Biesenthal pleaded guilty to one count of wire fraud and three counts of tax evasion.
As part of her wire fraud charge, Ms. Biesenthal engaged in a scheme to defraud the Jewish Heritage Programs (“JHP”). JHP is a non-profit organization in Philadelphia that provides opportunities for Jewish college students (at the University of Pennsylvania, Temple University and other universities), as well as young professionals, and other persons to engage with their Jewish heritage and reaffirm their Jewish identity. Ms. Biesenthal was carried out the scheme between 2002 and April 2009, while she was employed as a bookkeeper at JHP. She fraudulently prepared and issued checks drawn on JHP’s bank accounts and rather than use them for the non-profit’s mission, she made those unauthorized checks payable to her.
Ms. Biesenthal also fraudulently authorized electronic debits from JHP’s bank accounts to pay for her personal credit cards and her family’s personal credit cards. As part of the scheme, she defrauded JHP of a total of well over $400,000. In addition, she never reported her unauthorized income in her tax returns in tax years 2007 through 2009 and concealed the true sources of her income.
The case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service Criminal Investigations and was prosecuted by Assistant United States Attorney Sozi Pedro Tulante.
In addition to the prison term, Chief U.S. District Court Judge Petrese Tucker ordered Biesenthal to pay restitution in the amount of $171,187.04 to JHP and $61,637 to the Internal Revenue Service. The Court also imposed three years of supervised release, and a $400 special assessment.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Nevada, Mo., Woman Pleads Guilty to Failure to Pay over Employees' Payroll TaxesRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that the owner of a Nevada, Mo., business pleaded guilty in federal court today to failing to pay over more than $357,000 in federal taxes.
Dana L. Thompson Cavener, 51, of Nevada, waived her right to a grand jury and pleaded guilty before U.S. District Judge M. Douglas Harpool to failure to pay over employment taxes.
Cavener was corporate secretary of Cavener’s Library and Office Supplies, Inc., in Nevada, Mo., which she co-owned with her husband. The business employed an average of three to five employees during the 10 years of Cavener’s criminal conduct.
By pleading guilty today, Cavener admitted that she withheld federal income taxes, Social Security taxes and Medicare taxes from the wages of her employees but willfully failed to pay over those taxes to the IRS from 2001 to 2011. The total tax loss was $357,025.
Under federal statutes, Cavener is subject to a sentence of up to five years in federal prison without parole, plus a fine up to $250,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Steven M. Mohlhenrich. It was investigated by IRS-Criminal Investigation.Miami-Dade Business Owner Sentenced to 5.5 Years for Medicaid FraudRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Attorney General Pam Bondi announce the sentencing of Yamile Calvo-Gonzalez, 41, of Homestead. United States District Judge Joan A. Lenard sentenced Calvo-Gonzalez to 66 months in prison, to be followed by three years of supervised release, and ordered her to pay $2,015,286.24 in restitution to the Centers for Medicare and Medicaid Services.
Calvo-Gonzalez, who previously pled guilty to conspiracy to commit health care fraud, in violation of 18 U.S.C. §1349, was the owner of WY Medical Group and Rehabilitation Services, Inc., located in Miami-Dade County.
“Health care fraud threatens the strength and integrity of our health care system,” said U.S. Attorney Ferrer. “As I have previously stated, we remain steadfast in our efforts to protect Medicaid from fraud and abuse for those who need it – the sick, the elderly and the poor. We will continue to work with our state and local law enforcement partners to bring justice to anyone seeking to defraud Medicaid.”
“We will continue to partner with federal, state and local agencies to uphold the integrity of the Medicaid program and to protect taxpayer dollars,” said Attorney General Pam Bondi.
The Health Care Fraud Prevention and Enforcement Action Team (HEAT), is comprised of the Department of Health and Human Services-Office of the Inspector General (HHS-OIG), the Department of Justice and other federal, state and local agencies. The Florida Office of the Attorney General’s Medicaid Fraud Control Unit and HHS-OIG investigated this case.
Mr. Ferrer commended the investigative efforts of Florida Office of the Attorney General, Medicaid Fraud Control Unit. The case was prosecuted by Special Assistant United States Attorney Hagerenesh Simmons.
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.
Masked Baton-Wielding Bandit Sentenced to 78 Months in Prison for Oakland Bank Robbery SpreeRead the Press Release
OAKLAND – Noah Blue was sentenced on October 10, 2014, to 78 months in prison for a summer bank robbery spree in Oakland, announced United States Attorney Melinda Haag and FBI Special Agent in Charge David J. Johnson.
In pleading guilty, Blue admitted to committing the following bank robberies:
Date
Bank
Location
Amount Stolen
7/26/2013
Bank of the West
2023 Mountain Boulevard, Oakland
$1,805
8/1/2013
Bank of the West
2023 Mountain Boulevard, Oakland
$684
8/26/2013
Bank of the West
2023 Mountain Boulevard, Oakland
$1,849
9/4/2013
Chase Bank
3310 International Boulevard, Oakland
$1,732
During the commission of the robberies, Blue entered the banks hooded with his face masked and wearing gloves. Blue passed the victim tellers notes announcing that he was robbing the bank and demanded they give him money. In his Aug. 26, 2013 robbery of the Bank of the West, Blue, armed with an 18-inch baton, jumped the teller counter and confronted the victim tellers face to face. Blue raised the baton at one victim teller and threated to beat her if she did not give him money.
Blue, 22, of Oakland, was arrested on Sept. 4, 2013. He was charged by federal criminal complaint on Oct. 17, 2013, and a grand jury returned an indictment on Oct. 24, 2013, charging him with one count of armed bank robbery, in violation of 18 U.S.C. § 2113(a) and (d), and three counts of unarmed bank robbery, in violation of 18 U.S.C. § 2113(a). Blue pleaded guilty on July 18, 2014, without an agreement with the government, admitting all four of the charged bank robberies. Blue was remanded into custody after he pleaded guilty to the charged offenses.
The sentence was handed down by the Honorable Jon S. Tigar, United States District Court Judge. Judge Tigar sentenced Blue to 78 months in prison to be followed by a 5-year period of supervised release. Blue was also ordered to pay full restitution to Bank of the West. The money stolen from the Chase Bank was seized at the time of Blue’s arrest.
Brian C. Lewis is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Janice Pagsanjan. The prosecution is the result of an investigation by the Oakland Police Department and the FBI.
(Blue complaint )
(Blue indictment )
Manhattan U.S. Attorney Announces Guilty Plea of Mayor of Mount Vernon Ernest D. Davis to Failing to File Income Tax ReturnsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that ERNEST D. DAVIS, the mayor of the City of Mount Vernon, pled guilty in White Plains federal court to failing to file corporate and personal income tax returns. DAVIS surrendered today and entered his plea before U.S. Magistrate Judge Paul E. Davison.
According to the Information and today’s plea proceeding:
In 1988, ERNEST D. DAVIS purchased a rental property located at 14-16 Sandford Boulevard East in Mount Vernon, New York. He held the building through a corporation known as 14-16 Sandford East, Inc. DAVIS admitted that he sold the building in 2003 but he failed to file the required federal corporate income tax return with the Internal Revenue Service on which he should have reported the proceeds of the sale. In addition, DAVIS also failed to report the proceeds of the sale of 14-16 Sandford Blvd. on his 2003 U.S. Individual Income Tax Return, Form 1040, which he filed on or about February 1, 2005.
DAVIS also admitted today that he knowingly failed to file a personal federal income tax return for the tax year 2011, when he earned approximately $106,743 in adjusted gross income.
DAVIS, 76, of Mount Vernon, New York, pled guilty to two counts of willfully failing to file federal income tax returns. He faces a maximum sentence of two years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
DAVIS is scheduled to be sentenced by Judge Davison at 11a.m. on January 26, 2015.
Mr. Bharara praised the investigative work of the Internal Revenue Service, the Federal Bureau of Investigation, and the U.S. Department of Housing and Urban Development’s Office of the Inspector General.
The case is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys Perry A. Carbone, Kathryn Martin and James McMahon are in charge of the prosecution.
U.S. v. Ernest Davis Information
Man Sentenced to over Four Years in Prison for DUI Death in Kings Canyon National ParkRead the Press Release
FRESNO, Calif. — Nicholas Moser, 25, was sentenced today four years and four months in prison by United States District Judge Lawrence J. O’Neill for involuntary manslaughter and driving under the influence of alcohol, United States Attorney Benjamin B. Wagner announced.
According to court documents, Moser was intoxicated when he lost control and rolled his truck near Cedar Grove, in the Kings Canyon National Park. The incident occurred during the early morning hours of Saturday, August 31, 2013, the first day of the Labor Day weekend. Three of Moser’s passengers, who were sitting in the rear of his truck, were ejected, causing the death of Thomas Wefald and serious injuries to the other two. Another passenger in the cab was also injured, as was Moser.
Moser and others drank alcohol and smoked marijuana before Moser drove the group several miles from Cedar Grove to Muir Rock, located at the end of Highway 180, where they remained for about a half an hour. The accident occurred shortly after Moser began the return trip to Cedar Grove.
This case was the product of an investigation by the National Park Service. Assistant United States Attorney Michael Frye prosecuted the case.Man Pleads Guilty to Bank Fraud ConspiracyRead the Press Release
BOSTON - An Everett, Mass. man pleaded guilty today to conspiracy to bank fraud conspiracy.
Gean Fabio DaSilva, 33, pleaded guilty before Senior U.S. District Judge Rya W. Zobel to conspiracy to commit bank fraud and money laundering. It is alleged that the defendant conspired to defraud banks by depositing worthless checks into accounts opened in fictitious names and then withdrawing funds before the banks realized the deposits were worthless. In July 2012 the defendant allegedly used illegally obtained funds to purchase, at least in part, a cashier's check used to buy real estate in Everett.
Judge Zobel scheduled sentencing for Jan. 13, 2015.
The maximum sentence under the bank fraud conspiracy statute is 30 years in prison, followed by up to five years of supervised release and a fine of up to $1 million. The maximum sentence under the money laundering statute is 10 years in prison, up to three years of supervised release, and a fine of up to $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and Bruce M. Foucart, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations in Boston, made the announcement today. The case is being prosecuted by Robert E. Richardson of Ortiz’s Major Crimes Unit.
Liberal Man Sentenced for Child PornRead the Press Release
Project Safe Childhood
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Liberal, Mo., man was sentenced in federal court today for receiving child pornography over the Internet.
Matthew W. Splitter, 25, of Liberal, was sentenced by U.S. District Judge M. Douglas Harpool to seven years in federal prison without parole. The court also ordered Splitter to pay $2,000 in restitution to one of the victims portrayed in the child pornography images.
On March 11, 2014, Splitter pleaded guilty to receiving child pornography over the Internet.
According to court documents, an officer with the Southwest Missouri Cyber Crimes Task Force identified Splitter’s computer as distributing and receiving child pornography over the Internet through a peer-to-peer file-sharing program. A search warrant was executed at Splitter’s residence on Oct. 5, 2011, and his computer was seized. A forensic examination of the computer revealed 62 videos of child pornography and 493 images of child pornography. The images involved a child as young as 1 to 2 years of age. Court documents describe a large number of “hideous and violent” images that involve young children being raped by adults, bondage and animals.
This case was prosecuted by Assistant U.S. Attorney Gary Milligan. It was investigated by Southwest Missouri Cyber Crimes Task Force, the Missouri State Highway Patrol and the Joplin, Mo., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Lawrence Man Sentenced for Theft of over $230,000 in Federal Tax Refund ChecksRead the Press Release
BOSTON - A Lawrence man was sentenced today in connection with the theft of $230,000 in federal tax refund checks.
Wilson Santana, 41, was sentenced today to 21 months in prison to be followed by three years of supervised release. He was also ordered to pay restitution in the amount of $237,277.18 to the U.S. Department of the Treasury. Santana pleaded guilty in May 2014 to 34 counts of theft of public money.
Between November 2011 and March 2012, Santana provided Robert Montero, a bank teller at Metro Credit Union in Lawrence, with 30 U.S. Treasury checks containing fraudulently obtained tax refunds to be negotiated through various bank accounts controlled by or associated with Santana. Santana paid a fee to Montero for each check Montero negotiated. The U.S. Department of the Treasury had issued the checks based on tax returns that later were determined to contain false information. For example, although the tax returns contained biographical information of real people in Puerto Rico, their addresses were falsely listed in New York and Massachusetts. The tax returns also contained false employment information. Santana, knowing that the tax return checks had been issued based on false information, negotiated them with Montero’s help at Metro West Credit Union. The total value of the 30 refund checks was $211,214.18.
Between March and April 2012, Santana sold four more U.S. Treasury checks containing fraudulently obtained tax refunds to Montero. Unbeknownst to Santana, those transactions were monitored by federal agents. The four U.S. Treasury checks contained tax refunds in the amount of $26,227.00.
United States Attorney Carmen M. Ortiz; William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Lisa Quinn, Special Agent in Charge of the U.S. Secret Service made the announcement today. The case is being prosecuted by Maxim Grinberg of Ortiz’s Health Care Fraud Unit.
Last of Eight Defendants in Oxycodone Trafficking Ring SentencedRead the Press Release
Boston – The last of eight defendants was sentenced in U.S. District Court in Boston on Friday in connection with an oxycodone trafficking ring that distributed more than 70,000 Oxycodone pills in New England.
Michael Chenoy, 29, of Royal Palm Beach, Fla., was sentenced by U.S. District Court Judge Nathaniel M. Gorton to 52 months in prison and three years of supervised release in connection with his role in supplying Oxycodone from Florida. Chenoy pleaded guilty to conspiracy to distribute oxycodone in January 2014.
Chenoy along with Michael Wilson, Ryan McGinnis, and Jonathan Deleeuw were Florida-based suppliers of Oxycodone. They sold the pills to Steven Kostenblatt of New Hampshire, who was the leader of the conspiracy. Kostenblatt and his then-girlfriend, Jillian Reis distributed the pills to other Oxycodone drug dealers on the South Shore of Massachusetts and in New Hampshire.
Wilson, McGinnis, Deleeuw, Kostenblatt and Reis each previously pleaded guilty in connection with their roles in the conspiracy and have been sentenced to terms ranging from 168 months to 42 months in federal prison.
According to prosecutors, the Florida-based members of the conspiracy obtained Oxycodone pills from one or more so-called pain clinics in or around Boca Raton, Fla. after first obtaining fraudulent MRIs from a mobile MRI trailer located behind a gentlemen’s club. Members of the conspiracy also paid individuals who had obtained prescriptions from the so-called pain clinics for their pills and purchased pills from other drug dealers.
The Florida-based suppliers then delivered the Oxycodone pills to Kostenblatt using various means, including runners and UPS packages. Two runners, Simeon Schwartz, of Florida, and Mark Devereaux, of Massachusetts, also pleaded guilty and have been sentenced.
During the course of the investigation, law enforcement agents seized more than 4,000 Oxycodone 30 mg. pills and in excess of $170,000 in drug proceeds in Boston, South Carolina, and Florida.
Sentences previously imposed on the defendants are as follows:
- Steven Kostenblatt, age 27, of Keene, N.H., was sentenced on May 23, 2014, by U.S. District Judge Nathaniel M. Gorton to 168 months in prison and three years supervised release.
- Jillian Reis, age 30, of Boston, Mass., was sentenced on Sept. 11, 2014, by U.S. District Judge George A. O’Toole, Jr. to 84 months in prison and three years supervised release.
- Jonathan Deleeuw, age 30, of Lake Worth, Fla., was sentenced on Aug. 8, 2014, by U.S. District Judge Nathaniel M. Gorton to 56 months in prison and two years supervised release.
- Ryan McGinnis, age 30, of Lake Worth, Fla., was sentenced on July 31, 2014, by U.S. District Judge Nathaniel M. Gorton to 42 months in prison and three years supervised release.
- Michael Wilson, age 30, of Lake Worth, Fla., was sentenced on June 23, 2014, by U.S. District Judge Nathaniel M. Gorton to 42 months in prison and one year supervised release.
- Simeon Schwartz, age 26, of Boyton Beach, Fla, was sentenced on June 25, 2014, by U.S. District Judge Nathaniel M. Gorton to 26 months in prison and two years supervised release.
- Mark Devereaux, age 25, formerly of Rockland, Mass., was sentenced earlier in the investigation in federal court in the District of Columbia by U.S. District Judge Ellen S. Huvelle to 28 months in prison and three years supervised release.
United States Attorney Carmen M. Ortiz; Michael J. Ferguson, Acting Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; and Quincy Police Chief Paul Keenan, made the announcement today. Significant assistance was also provided by the Billerica Police Department, the Massachusetts State Police, the Drug Enforcement Administration’s Office in West Palm Beach, Fla., Charleston, South Carolina, and the District of Columbia, the Massachusetts State Police, the South Carolina Highway Patrol, the Clarendon County South Carolina Sheriff’s Office, the Manchester New Hampshire Police Department, the Hancock New Hampshire Police Department, the Hillsborough County New Hampshire Attorney’s Office, the Middlesex District Attorney’s Office and the District of Columbia Metropolitan Police Department.
The case was prosecuted by Assistant U.S. Attorney James E. Arnold of Ortiz’s Organized Crime Drug Enforcement Task Force.
Las Cruces Man Sentenced to 130 Months for Participating in Las Cruces-Based Methamphetamine Trafficking RingRead the Press Release
ALBUQUERQUE – Ernest Joe Marquez, 46, of Las Cruces, N.M., was sentenced in Las Cruces federal court this morning to 130 months in federal prison followed by five of supervised release for his methamphetamine trafficking conviction. The sentence was announced by U.S. Attorney Damon P. Martinez, Special Agent in Charge Will R. Glaspy of the DEA’s El Paso Field Division, and Special Agent in Charge Thomas Atteberry of the Phoenix Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Marquez was one of eleven defendants arrested in May 2012 and charged with participating in a conspiracy to possess methamphetamine with intent to distribute from Jan. 2012 through May 2012. According to a superseding indictment filed in Oct. 2012, members of the conspiracy transported methamphetamine from El Paso, Texas, and Phoenix, Ariz. to Doña Ana County, N.M., where the methamphetamine was distributed to local drug dealers.
Nine of the eleven defendants resolved the charges against them by entering guilty pleas to various drug trafficking charges. Marquez and Melchor Arroyos, 53, of El Paso, Texas, elected to proceed to trial on the following counts of the superseding indictment: Count 1, charging both men with conspiracy to possess methamphetamine with intent to distribute; Count 13, charging Marquez with using a communication device to facilitate a drug trafficking crime; Count 16, charging Marquez with possession of methamphetamine with intent to distribute; and Count 17, charging Arroyos with possession of methamphetamine with intent to distribute. On July 31, 2013, a federal jury returned guilty verdicts against Arroyos and Marquez after a three-day trial.
The evidence at trial established that in March 2012, the DEA received authorization to conduct a wiretap investigation and listen to communications occurring over Marquez’s telephone. During the investigation, the investigators learned that Marquez was conspiring with others to bring large quantities of methamphetamine from Texas and Arizona to New Mexico so that the drugs could be divided up, repackaged, and sold on the streets of Las Cruces. Among other things, the investigation revealed that in April 2012, Marquez sent two women to Arizona to pick up a pound of methamphetamine. Through intercepted conversations, the investigators learned that, after taking possession of the methamphetamine, Marquez sold the methamphetamine to local drug dealers.
The investigation also revealed that in May 2012, Marquez made arrangements for the delivery of another pound of methamphetamine. This time, Arroyos was responsible for delivering the methamphetamine. After Arroyos’ initial attempt to deliver the methamphetamine to Marquez was unsuccessful, the two men had a telephone conversation during which they made arrangements for Arroyos to deliver the methamphetamine to Marquez at his home. Before Arroyos could make the delivery, he was arrested by an officer who executed a traffic stop on Arroyos’ vehicle and found a pound of methamphetamine hidden in the engine area of the vehicle.
On Aug. 12, 2014, Arroyos was sentenced to ten years of federal prison followed by five years of supervised release.
The case was investigated by the Las Cruces offices of the DEA and ATF, with assistance from the U.S. Border Patrol, Hatch Police Department, Motor Transportation Division of the New Mexico Department of Public Safety, New Mexico State Police, Las Cruces/Doña Ana County Metro Narcotics Agency, and Las Cruces Police Department Gang Task Force. It is being prosecuted by Assistant U.S. Attorneys Sarah M. Davenport, Marisa Lizarraga and Aaron O. Jordan.
The case was the result of a five-month investigation led by the DEA and ATF, which was designated as part of the Organized Crime Drug Enforcement Task Force (“OCDETF”) program. OCDETF is a nationwide Department of Justice program that combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations.
Jefferson County Receives DOJ Funding to Establish Alabama’s First Day Reporting CenterRead the Press Release
BIRMINGHAM – The Department of Justice has awarded the Alabama Board of Pardons and Paroles a Second Chance Act grant of $687,176 to establish a Day Reporting Center in Birmingham, announced U.S. Attorney Joyce White Vance and Pardons and Paroles Executive Director Cynthia Dillard.
The Day Reporting Center will deliver services to people on parole from state prisons to help them successfully return to society and reduce the likelihood of Birmingham area probationers committing new crimes.
“This grant demonstrates the Department of Justice’s commitment to helping states that are on the path to curbing criminal recidivism," Vance said. "The day reporting center will follow best practices that have curtailed the rate at which new crimes are committed by ex-offenders in other areas," she said. “Jefferson County contributes more inmates to state prisons than any other county in Alabama, so starting here is a strong step in the right direction.”
Since 2010, Vance has worked with state and local agencies and community organizations through the North Alabama Reentry Council to reduce crime by increasing successful reentry outcomes for newly released offenders.
Through the Department of Justice’s Smart on Crime initiative, the department promotes a holistic approach to reducing crime – prevention, enforcement and reentry. Smart on Crime prioritizes crime reduction efforts that are committed to data-driven, evidenced-based methodology, and that are collaborative efforts among all stakeholders. The DRC will collaborate with community-based service providers to improve reentry outcomes for ex-offenders.
The DRC services will include employment options, education, substance abuse rehabilitation, and behavioral training, all which have been proven to increase the chances that an ex-offender will avoid re-offending and returning to prison.
Community-based reentry services, such as DRCs, are effective in reducing criminal recidivism and are more cost-efficient, compared to incarceration. The Birmingham center will be modeled after DRCs in Georgia, where only 7 percent of DRC participants reoffend. Alabama’s current ex-offender recidivism rate is about 35 percent. The projected daily cost of the Birmingham center is a fraction of the $43 a day for each inmate within Alabama’s prison system.
Reentry programs that have proven effective in other states towards reducing crime and prison populations are a topic being reviewed by the Alabama Prison Reform Task Force. Taskforce Chairman, State Sen. Cam Ward, R-Alabaster, said, "Community-based, reentry services are the key component to reducing recidivism in our corrections system. These programs are crucial to the reform efforts under way in Alabama."
State Sen. Arthur Orr, R-Decatur, a taskforce member, added, "We are appreciative of the Department of Justice’s support to help us reduce recidivism among our inmates under community supervision. The improved supervision measures created by this grant will not only help our prison overcrowding situation in Alabama, but also help newly released individuals get on the right track."
Congress created the Second Chance Act in 2008. It has received broad bipartisan support within Congress, and from former President George W. Bush and President Barack Obama. The Second Chance Act is the first-of-its-kind legislation that authorizes federal grants to government agencies and nonprofit organizations to provide support strategies and services designed to reduce recidivism by improving outcomes for people returning from prisons, jails and juvenile facilities.
The Second Chance Act is administered by the Office of Justice Programs within the Department of Justice.
Information: Federal Court ArraignmentsRead the Press Release
The United States Attorney's Office announced that those persons listed below were arraigned before the U.S. Magistrate and the indictments handed down by the Grand Jury unsealed.
Appearing before U.S. Magistrate Judge Ostby in Billings on October 10, 2014, and entering pleas of Not Guilty were:
ZECHARIAH JOE WHITE, a 20-year-old resident of Lodge Grass, appeared on charges of assault on a federal officer. If convicted of the charge contained in the indictment, WHITE, faces 20 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference: 14-97
Appearing before U.S. Magistrate Judge Lynch in Missoula on October 10, 2014, and entering pleas of Not Guilty were:
BRUCE ANTHONY GLASS, a 37-year-old resident of Stevensville, appeared on charges of conspiracy to distribute methamphetamine and possession of a firearm in furtherance of a drug trafficking crime. . If convicted of the most serious charge contained in the indictment, GLASS, faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by the Missoula HIDTA. PACER Case Reference: 14-43
Appearing before U.S. Magistrate Judge Lynch in Missoula on October 9, 2014, and entering pleas of Not Guilty were:
ROBERT LEWIS WHITE, a 51-year-old resident of Butte, appeared on charges of distribution of child pornography and receipt of child pornography. If convicted of the most serious charges contained in the indictment, WHITE, faces 20 years in prison, $250,000 in fines and lifetime supervised release. The case was investigated by the Internet Crimes Against Children Task Force, the Federal Bureau of Investigation and the Montana Division of Criminal Investigations.. PACER Case Reference: 14-20
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system so that you stay current and not miss any important developments in the case.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court's calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
- Illegal Alien Sentenced for Using Deceased Boy’s Identity
IRS Employee Arrested Today Following Indictment for Filing False Tax ReturnsRead the Press Release
FRESNO, Calif. — Kimberly Brown-English, 52, of Fresno, was arrested today after a grand jury indicted her last Thursday for filing fraudulent tax returns while she was an employee of the IRS and for making an opportunity for others to file false tax returns, United States Attorney Benjamin B. Wagner announced. Brown-English is scheduled to be arraigned today at 1:30 p.m. before U.S. Magistrate Judge Gary S. Austin in Fresno.
According to court documents, Brown-English filed returns with claims for false deductions and credits, such as dependents, the child tax credit, and the head of household status. The false returns allowed Brown-English and other tax payers to obtain undue tax refunds or improperly reduce their tax liabilities.
This case is the product of an investigation by the Treasury Inspector General for Tax Administration and the Tax Division of the Department of Justice. Assistant United States Attorney Patrick R. Delahunty is prosecuting the case.
If convicted, Brown-English faces a maximum statutory penalty of five years in prison, a $10,000 fine, and dismissal from office. Any sentence, however, would be determined at the discretion of the court after consideration of the Federal Sentencing Guidelines, which take into account a number of variables and applicable statutory sentencing factors.
The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Huntington Man Admits Being A Heroin DealerRead the Press Release
HUNTINGTON, W.Va. – United States Attorney Booth Goodwin announced that Mark R. Tabb, 46, of Huntington, West Virginia pled guilty today in federal court in Huntington to possession with intent to distribute heroin. On August 15, 2012, Tabb was arrested at his 4th Avenue home by officers with the Huntington Violent Crime and Drug Task Force. In a search of his home conducted at the time of his arrest, officers located more than ten grams of heroin and $9,500 in cash. Tabb admitted that the heroin was his and he intended to sell it in the Huntington area. Tabb faces up to 20 years imprisonment and up to a $1 million fine when he is sentenced on January 26, 2015.
Grand Island, Nebraska, Man Sentenced for Possession with Intent to Distribute MethamphetamineRead the Press Release
DES MOINES, IA - On Tuesday, October 14, 2014, Juan Carlos Gomez, age 20 of Grand Island, Nebraska, was sentenced by United States District Court Judge Stephanie M. Rose to 12 months imprisonment after pleading guilty to possession with the intent to distribute methamphetamine, announced United States Attorney Nicholas A. Klinefeldt. Gomez was also ordered to serve a term of three years of supervised release following imprisonment, and pay a $100 special assessment to the Crime Victim’s Fund.
On May 7, 2013, Gomez was the driver of a vehicle that carried approximately 863.90 grams of a mixture containing methamphetamine. There were two other occupants in the vehicle, Alberto Anguiano and Thomas Lee Boswell, both of whom have pleaded guilty. Alberto Anguiano was sentenced to 120 months imprisonment, and Thomas Boswell is awaiting sentencing.
This investigation was conducted by the Iowa State Patrol, Dallas County Sheriff’s Office, and the United States Drug Enforcement Administration. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa
(Download Press Release)
Fresno Man Sentenced to over 6 Years in Prison on Firearm ChargeRead the Press Release
FRESNO, Calif. — United States District Judge Lawrence J. O’Neill sentenced Anthony Murua, 36, of Fresno, to six years and five months in prison for being a convicted felon in possession of a firearm, United States Attorney Benjamin B. Wagner announced.
According to court documents, a report was filed with the Fresno Police Department alleging that Murua was making harassing telephone calls and sending threatening text messages, including a picture of a gun. During a search of Murua’s home, a Jimenez Arms 9 mm handgun and ammunition were found in his bedroom. Murua’s prior felony convictions include domestic abuse, assault and robbery.
This case was the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Fresno Police Department. Assistant United States Attorney Melanie L. Alsworth prosecuted the case.
Fort Yates Man Sentenced for Domestic Assault by a Habitual OffenderRead the Press Release
Bismarck - U.S. Attorney Timothy Q. Purdon announced that on October 14, 2014, Brett See Walker, age 28, Fort Yates, ND, was sentenced before U.S. District Judge Daniel L. Hovland to serve 24 months imprisonment for Domestic Assault by a Habitual Offender.
Walker was charged by Indictment with Domestic Assault by a Habitual Offender and Assault with a Dangerous Weapon on March 26, 2013. Walker later changed his plea to guilty. Judge Hovland also sentenced Walker to three years supervised release and ordered him to pay $100 special assessment to the Crime Victims Fund, as well as restitution in the amount of $1.398.63
This case was investigated by the Bureau of Indian Affairs.
Assistant U.S. Attorney Gary Delorme prosecuted the case.
Former Senior Finance Analyst at Pharmaceutical Company Charged in Manhattan Federal Court with Insider TradingRead 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 Field Office of the Federal Bureau of Investigation (“FBI”), announced today that ZACHARY ZWERKO was arrested on securities fraud charges stemming from his involvement in an insider trading scheme. Specifically, ZWERKO passed material nonpublic information about potential merger and acquisition activity related to certain pharmaceutical companies to a co-conspirator, who then traded on the information, resulting in profits of approximately $722,000. ZWERKO was arrested on Friday, October 10, 2014, in Cambridge, Massachusetts, and is expected to be presented today in Boston federal court before a United States Magistrate Judge.
Manhattan U.S. Attorney Preet Bharara said: “Today we announce charges against yet another individual for alleged insider trading. As alleged, Zachary Zwerko was a spy in the camp of his own company who passed secret merger and acquisition information to his co-conspirator so that lucrative illegal trades could be made. Those with access to inside information who contemplate releasing it for financial profit should understand that this Office and our law enforcement partners will track them down and prosecute them.”
FBI Assistant Director-in-Charge George Venizelos said: “Zwerko is charged, like so many others, with insider trading. This is a crime that undermines the public’s faith in our financial markets and puts companies at risk. The FBI remains committed to curbing corruption to better ensure fairness in the marketplace.”
According to the allegations contained in the Complaint unsealed in Manhattan federal court:
From at least 2012 through the present, ZWERKO was engaged in an insider trading scheme related to the acquisitions of certain pharmaceutical companies. ZWERKO, a Senior Finance Analyst in the Financial Evaluation and Analysis Group of a pharmaceutical company that operates in New Jersey (the “Pharma Company”), performed work in connection with numerous potential and actual corporate transactions, including acquisitions. As a Financial Evaluation and Analysis Group employee, ZWERKO had access to a computer directory maintained by the Pharma Company that contained material, nonpublic information related to the Pharma Company’s potential acquisitions.
On multiple occasions, ZWERKO passed to another person (“CC-1”) material, nonpublic information related to future acquisitions by the Pharma Company, including the identities of companies that were in negotiations with the Pharma Company for potential acquisitions (the “Target Companies”). CC-1 then traded in the securities of the Target Companies. The Target Companies were later acquired, in one instance by the Pharma Company, and the prices of the shares of the Target Companies increased after the acquisitions were announced publicly. CC-1 then sold CC-1’s positions in the shares of the Target Companies, thereby profiting from the movement in stock price. From this illegal trading, CC-1 earned profits of at least approximately $722,000.
ZWERKO, 32, is charged with one count of conspiracy to commit securities fraud, which carries a maximum sentence of five years in prison and a maximum fine of $250,000, or twice the gross gain or loss from the offense. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
The U.S. Securities and Exchange Commission (“SEC”) announced civil charges against ZWERKO in a separate action.
Mr. Bharara praised the work of the Federal Bureau of Investigation, and thanked the SEC for its assistance. He added that the investigation is continuing.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Since the inception of FFETF in November 2009, the Justice Department has filed more than 12,841 financial fraud cases against nearly 18,737 defendants including nearly 3,500 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Jessica Masella and Edward Kim are in charge of the prosecution.
The allegations contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Former Charlotte Mayor Patrick D. Cannon Sentenced to 44 Months in PrisonRead the Press Release
CHARLOTTE, N.C. – Today, Chief U.S. District Judge Frank D. Whitney sentenced former Charlotte Mayor Patrick D. Cannon, 47, to 44 months in prison followed by two years of supervised release for accepting more than $50,000 in bribes while serving in office, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina and John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division. Judge Whitney also ordered Cannon to pay a $10,000 fine and forfeiture in the amount of $50,500.
U.S. Attorney Tompkins stated, “Patrick Cannon betrayed the public’s trust and embarrassed the city he was elected to serve. Cannon accepted more than $50,000 in bribes, but the social injury to this community is far deeper. While the perception of rampant public corruption can slowly tear a community apart, justice can bind us together and restore our faith in our government. Today, Cannon was held accountable for using his official position for personal gain. His sentence is also a reminder that my office will prosecute those who put personal interests ahead of the people they were elected to serve.”
“Patrick Cannon sold his oath of office, violated the integrity of our government, and betrayed the citizens of Charlotte. Public corruption will not be tolerated; no matter the position or names of those involved. As outlined in the criminal complaint, the FBI is uniquely positioned to dedicate whatever resources necessary to expose even the most deeply entrenched and secretive pay to play schemes," said John Strong, Special Agent in Charge of the FBI in North Carolina.
According to filed court documents and today’s sentencing hearing, from 2009 to March 2014, while serving as City Council Member and/or Mayor Pro Tem, and later as the Mayor of Charlotte, Cannon solicited and accepted bribes such as gifts, cash and other things of value totaling over $50,000, in exchange for a pattern of official actions. Court records show that Cannon accepted the bribes from a Charlotte business owner and two undercover agents posing as investors interested in opening businesses in Charlotte, in exchange for use of his official position on an “as needed” basis. Court records indicate that Cannon promised to use his influence with city and county officials and others to assist his payors’ with business projects and to intervene with any zoning, permitting and transportation issues, among others. In June 2014, Cannon pleaded guilty to one count of honest services wire fraud.
In announcing today’s sentence, Judge Whitney commented on the seriousness of the offense, stating that public corruption undermines the legitimacy of government and the public’s faith in its elected leaders and it feeds the cynics who believe that all government is corrupt.
Following the sentencing hearing, Cannon was released on bond. The court rejected the defendant’s request for a later reporting date and he will be ordered to self- report to the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
The investigation was handled by the Charlotte Division of the FBI. Assistant United States Attorneys Michael E. Savage and Craig D. Randall of the U.S. Attorney’s Office in Charlotte prosecuted the case.
Federal Jury Finds Tarpon Springs Woman Guilty of Tax EvasionRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that a federal jury has found Nova A. Montgomery guilty of five counts of tax evasion and five counts of failure to file an income tax return. She faces a maximum penalty of five years’ imprisonment for each tax evasion count, and one year in prison for each count of failing to file a tax return. The jury returned the verdict on October 10, 2014, and a sentencing hearing is scheduled for January 12, 2015.
According to testimony and evidence presented at trial, Montgomery was self-employed as a distributor for a multi-level marketing company that sold nutritional and other products. Between 2002 and 2012, she received commissions and other income exceeding $2.7 million. Montgomery set up a complex corporate structure that made it appear that she personally received virtually none of the income from the commissions and sales. Further, on February 12, 2009, in the midst of an Internal Revenue Service audit, Montgomery filed false and fraudulent federal income tax returns claiming that she had no income for 2002 through 2006. In addition, she failed to file personal income tax returns for 2008 through 2012.
This case was investigated by the Internal Revenue Service – Criminal Investigation. It is being prosecuted by Assistant United States Attorney Mark E. Bini.
Federal Court Bars Alabama Tax Return Preparer from Preparing Returns for OthersRead the Press Release
A federal court in Montgomery, Alabama, has permanently barred a Montgomery tax preparer from preparing federal tax returns for others, the Justice Department announced today.
The complaint alleged that Jenika Williams prepared returns that falsely claimed or inflated taxpayers’ income tax refunds by using social security numbers and other identifying information of third parties to falsely claim dependents in order to overstate the taxpayers’ claim to the Earned Income Tax Credit.
Williams, the suit alleges, previously pleaded guilty to conspiracy to defraud the United States, wire fraud and aggravated identity theft. Altogether, the loss to the U.S. Treasury from Williams’ activities may exceed $1 million. The permanent injunction was entered by U.S. District Judge W. Keith Watkins for the Middle District of Alabama after Williams failed to respond to the lawsuit.
Return preparer fraud is one of the Internal Revenue Service’s (IRS) Dirty Dozen Tax Scams for 2014. The IRS has some tips on their website for choosing a tax preparer. In the past decade, the Justice Department’s Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department website.
Related Materials:
United States v. Tonja Renee Toney, et al.
Permanent Injunction Against Jenika WilliamsEmployees and Manager of La Bodega Yakimex Sentenced for Food Stamp Fraud SchemeRead the Press Release
Spokane – Today, Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Roberto Medina and Benjamin Soberanes, two former employees of La Bodega Yakimex, a business operated in Yakima, Washington, were sentence for their roles in a food stamp fraud scheme. United States District Judge Thomas O. Rice sentenced Medina to a 13 month term of imprisonment and Soberanes to a six month term. Both will be under court supervision for three years following their release from Federal prison. Manpreet Singh, the manager of La Bodega Yakimex, was sentenced on September 23, 2014 to a 24 month term of imprisonment to be followed by a one year term of court supervision upon his release from prison.
Under the SNAP (Supplemental Nutrition Assistance Program) program, authorized recipients are issued a certain amount of benefits each month, which they may use to purchase eligible food items. SNAP recipients typically receive their benefits in the form of a credit on their personal electronic benefit transfer (“EBT”) card. SNAP benefits may not be used to purchase items other than food, and they cannot be redeemed for cash.
The Defendants participated in a scheme whereby SNAP recipients took their EBT cards to La Bodega Yakimex and, instead of purchasing food items, would say they wanted cash. Defendants would run the card as though food items had been purchased but, in fact, they would simply give the SNAP recipient half of the value in cash and the store would keep or “pocket” the other half. The scheme resulted in a total estimated loss of $315,382.77. Defendants Singh and Medina have been ordered to pay restitution to the United States Department of Agriculture (USDA) in this amount.
Michael C. Ormsby said, “Food stamps are essential to supplement the income of members of our community and ensure families can afford the groceries they need. When opportunistic retailers defraud the system, as happened in this case, those families, particularly children who have no say in how food stamps are utilized, suffer, and our community suffers as a result.” The U.S. Attorney indicated this will not be an isolated prosecution and that other retailers engaged in this practice should be advised these cases are being aggressively investigated.
The investigation was conducted by the USDA Office of Inspector General and the Washington State Department of Social and Health Services Office of Fraud and Accountability. The case was prosecuted by Alison L. Gregoire and Mary K. Dimke, Assistant United States Attorneys for the Eastern District of Washington.
2:13-CR-02054-TOR-2
Drug Courier Convicted of Delivering Kilogram of CocaineRead the Press Release
OAKLAND – Frank Anthony Morton, was convicted of two federal drug trafficking offenses, conspiracy to distribute and possess with intent to distribute cocaine, and possession with intent to distribute and distribution of cocaine, by a federal jury on Oct. 10, 2014, announced United States Attorney Melinda Haag and Drug Enforcement Administration Special Agent in Charge Jay Fitzpatrick.
The jury found that Morton, 26, of Pittsburg, worked with his uncle, Miguel Nunez, to deliver a kilogram of cocaine on Aug. 28, 2013 in Oakland, Calif. Nunez, 46, of San Leandro previously pleaded guilty to the cocaine trafficking offenses and is awaiting sentencing. The guilty verdict against Morton followed a four-day jury trial before the Honorable Phyllis J. Hamilton, United States District Court Judge. Following the jury’s guilty verdict, Morton was remanded to the custody of the United States Marshals.
Evidence at trial showed that Morton and Nunez arrived to a Walmart shopping center parking lot, located at 8400 Edgewater Drive in Oakland, at approximately 1:00 p.m. Recorded telephone calls introduced at trial showed that Nunez had previously arranged to meet a cocaine buyer at this location and agreed to sell a kilogram of cocaine in exchange for $18,000. Agents testified that Nunez and Morton arrived in a large white box truck and were observed exiting the truck and entering a nearby video game store. Inside, Morton and Nunez were captured on security cameras as they stood at the storefront windows overlooking the parking lot. The government’s drug trafficking expert testified that their behavior was consistent with counter-surveillance techniques. The video game store security camera also captured Nunez handing Morton a white paper bag, later determined to contain the kilogram brick of cocaine. Morton and Nunez exited the video game store and were again captured on exterior security cameras as they walked towards the cocaine buyer’s vehicle. Morton entered the buyer’s car and placed the kilogram of cocaine on the floorboard while his uncle went into a nearby juice store. DEA agents arrested Nunez and Morton immediately after the cocaine delivery.
Later the same afternoon, Nunez was due in federal court on a separate drug trafficking case. In April of 2013, Nunez was arrested in possession of approximately five kilograms of cocaine. Nunez was subsequently indicted and released on bond while his case was pending. Later, DEA received a tip that Nunez was continuing to distribute cocaine while on pre-trial release. DEA agents resumed their investigation into Nunez, which lead to the arrests of Nunez and Morton in August of 2013.
Morton’s sentencing hearing is scheduled for Jan. 28, 2014 before Judge Hamilton in Oakland. Nunez’s sentencing hearing is scheduled for Nov. 5, 2014. The maximum statutory penalty for each count of the convicted offenses, in violation of 21 U.S.C. §§ 841(a)(1),(b)(1)(C) and 860 is a twenty year term of imprisonment and a fine of $1,000,000. However, any sentence will be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Aaron Wegner and Katie Burroughs Medearis are the Assistant U.S. Attorneys prosecuting the case, with the assistance of Ana Guerra and Vanessa Vargas. The prosecution is the result of an investigation by DEA.
(Morton second superseding indictment )
Driver Stopped with A Pound of Heroin Pleads Guilty in Wichita Federal CourtRead the Press Release
WICHITA, KAN. – An Oklahoma man who was stopped with a pound of heroin hidden in the car pleaded guilty Tuesday to a federal drug charge, U.S. Attorney Barry Grissom said.
Nestor D. Duenas-Vazquez, 26, Glenpool, Okla., pleaded guilty to one count of possession with intent to distribute heroin. In his plea, he admitted that on June 26, 2014, a Wichita police officer stopped a car in which Duenas-Vazquez was a passenger. In the trunk, officers found a bucket of detergent with a broken seal. Hidden in the detergent they found a package containing 496 grams (more than a pound) of heroin.
Investigators learned that Duenas-Vazquez was on the way back to Oklahoma after traveling to Denver to obtain the heroin.
Sentencing is set for Jan. 5. He faces a penalty of not less than five years and not more than 40 years. Co-defendant Kyndal Upson is set for sentencing Dec. 8.
Grissom commended the Wichita Police Department, the Drug Enforcement Administration and Special Assistant U.S. Attorney Michelle Jacobs for their work on the case.
Detroit Man Sentenced for Role in Huntington Heroin ConspiracyRead the Press Release
HUNTINGTON, W.Va. – A Detroit man was sentenced today for his participation in a conspiracy to distribute heroin in Huntington, West Virginia announced U.S. Attorney Booth Goodwin. Steven Edward Lewis, also known as “Rico,” 27, who previously pleaded guilty in July of 2014 to conspiring to distribute 100 grams or more of heroin, was sentenced to five years in federal prison by Chief Judge Robert C. Chambers.
From at least the summer of 2013 to December 31, 2013, Lewis conspired to distribute heroin with Christopher Lamarr-Shawn Harris, Denzell Lamar Bunkley, Jakaiser Wesley Jackson, and Brandon S. Keaton. Harris recruited Lewis and other co-conspirators to distribute heroin, mostly in the West Huntington area, and frequently arranged for the transportation of heroin from Detroit, Michigan, to Huntington. Lewis used multiple locations to store, prepare and distribute heroin, including the Red Roof Inn Hotel on Route 60 in Huntington and an apartment at 1416 Jefferson Avenue in West Huntington. Lewis, Bunkley, Jackson, and Keaton, Harris also recruited local residents to assist with drug distributions.
On December 31, 2013, officers with the Huntington Police Department’s Special Investigations Unit executed a search warrant at the Jefferson Avenue apartment. Officers seized approximately 413 grams of heroin and $12,349 in cash during the search. Officers also arrested Harris, Bunkley, and Lewis who were inside the apartment.
Harris was arrested again on February 20, 2014, in Ohio by the Ohio State Highway Patrol while travelling from Huntington to Detroit. During his arrest, officers seized another $24,930 from Harris.
Harris was arrested for a third time on April 2, 2014, after officers received information that he was selling heroin from the Red Roof Inn in Huntington. Officers executed a search warrant for two rooms at the hotel and seized approximately 192 grams of heroin and $3,000 in cash. Harris and Jackson, had arranged to bring the heroin from Detroin to Huntington just days prior to the search.
Keaton was sentenced to 15 months in federal prison in July 2014. Harris was sentenced to 147 months and Bunkley was sentenced to 37 months in federal prison, both on October 6, 2014. Jackson is scheduled to be sentenced on October 27, 2014.
The Huntington Police Department Special Investigations Unit, the West Virginia State Police, the United States Drug Enforcement Administration, and the United States Marshals Service all participated in the investigation. Assistant United States Attorney Joseph F. Adams handled the prosecution.
This case was brought as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of heroin and prescription drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiates and heroin in communities across the Southern District.
Department of Justice Reaches Settlement Agreement with Colorado School District to Address Racial Harassment and DiscriminationRead the Press Release
The Justice Department announced that it has entered into a comprehensive settlement agreement with the Falcon School District 49 in Colorado Springs, Colorado, to resolve complaints about the district’s response to racial harassment and discrimination in its schools.
The agreement will continue for at least three years and replaces a settlement agreement reached by the parties in 2010 which addressed similar issues. The agreement requires the district to take affirmative steps to eliminate and prevent racial harassment and discrimination in schools. Specifically, the district agrees to:
- revise its policies and procedures on harassment and discrimination;
- maintain adequate records of all incidents of racial harassment and discrimination;
- analyze incidents of racial harassment and discrimination to ensure that all incidents are properly identified, investigated, and resolved;
- train staff in preventing and responding to harassment and discrimination;
- provide training to students to prevent and address harassment and discrimination;
- include restorative justice techniques and positive behavior interventions and supports in the district’s disciplinary responses to incidents of harassment and discrimination; and
- hire a consultant to identify any additional measures the district should take to effectively address, prevent, and respond to harassment and discrimination.
“We applaud the Falcon School District 49 for working cooperatively with the Department of Justice to resolve this matter and ensure that all students can attend school without fear of harassment or discrimination from their peers,” said Acting Assistant Attorney General Molly Moran for the Civil Rights Division.
The enforcement of Title IV of the Civil Rights Act of 1964, which prohibits discrimination on the basis of race, color, national origin, sex and religion in public schools, is a top priority of the Justice Department’s Civil Rights Division. Additional information about the Civil Rights Division of the Justice Department is available on its website at www.justice.gov/crt.
Defendant Previously Convicted of Sexual Assault Sentenced for Failing to Register as A Sex OffenderRead the Press Release
ALBANY, NEW YORK – ANDRE NADEAU, age 55, of New Haven, Connecticut, was sentenced yesterday by the Honorable Thomas J. McAvoy to 18 months in federal prison followed by 20 years of supervised release for failing to comply with the Sex Offender Registration and Notification Act (“SORNA”). The sentence follows NADEAU’s May 1, 2014 guilty plea.
SORNA, also known as the Adam Walsh Protection and Safety Act, requires that a convicted sex offender register where he or she resides, is employed, or is enrolled as a student, and to keep any registrations current.
NADEAU, who was convicted of sexual assault and designated a sex offender by Connecticut, registered with Connecticut in 2001. In 2005, NADEAU was found in Mississippi and convicted by a Mississippi court for failing to register as a sex offender. In 2012, NADEAU registered as a sex offender in Mississippi and signed documents acknowledging his duty to register. In 2013, NADEAU was found living in Albany, New York, and he had not registered or updated his sex offender registration with New York, Mississippi, or Connecticut.
This case was investigated by the U.S. Marshals Service and prosecuted by Assistant United States Attorney Wayne A. Myers.
Defendant Indicted for Attempt to Kill A Federal Officer and for Discharge and Use of A Firearm During A Federal Crime of ViolenceRead the Press Release
United States Attorney Michael J. Moore announced today that a federal grand jury returned a two-count Indictment in the United States District Court for the Middle District of Georgia, Athens Division, charging Steven Maurice McKinley, also known as “Stevo,” aged 21, of Athens, Georgia, with Attempt to Kill a Federal Officer (Count One) and Discharge and Use of a Firearm during a Federal Crime of Violence (Count Two).
If convicted, McKinley faces a maximum term of incarceration of twenty years for Count One and life in prison for Count Two. By law, any term of incarceration for Count Two must be imposed consecutive to any term of incarceration for Count One. In addition, McKinley faces a maximum fine of $250,000 for each count.The indictment is only an allegation and the accused are presumed innocent until and unless proven guilty.
This indictment stems from the intentional and unlawful shooting of an agent of the Bureau of Alcohol, Tobacco, Firearms and Explosives who was engaged in his official duties on September 30, 2014, in Athens, Georgia. The case is being investigated by the Federal Bureau of Investigation and the Georgia Bureau of Investigation. Assistant United States Attorneys Tamara A. Jarrett and Danial E. Bennett are prosecuting the case for the government.
Inquiries regarding this case should be directed to Pamela Lightsey, United States Attorney’s Office at (478) 621-2603.
Decatur Among Pilot Sites for DOJ-Funded Intensive Probation Supervision ProgramRead the Press Release
DECATUR – The Department of Justice has awarded the Alabama Board of Pardons and Paroles $370,000 through a Bureau of Justice Assistance grant to develop four intensive supervision pilot programs across Alabama, announced U.S. Attorney Joyce White Vance and Pardons and Paroles Executive Director Cynthia Dillard.
The pilot programs will take place in local Pardons and Paroles offices in Mobile, Montgomery, Decatur and Greenville. Those cities are in counties that collectively contribute more than 20 percent of inmates annually admitted to the Department of Corrections. Within the four pilot programs, individuals deemed moderate- to high-risk to reoffend will receive intensive supervision by local Pardons and Paroles officers and will be subject to swift, certain sanctions if they violate the terms and conditions of release.
Swift and certain sanction programs are intended to: (a) improve supervision strategies that reduce recidivism; (b) promote and increase collaboration among agencies and officials who work in community corrections and related fields; (c) enhance the offender's perception that the supervision decisions are fair, consistently applied and consequences are transparent; and (d) improve the outcomes of individuals participating in these initiatives.
Alabama’s program will be based upon Hawaii’s Opportunity Probation and Enforcement program. Within three months of its implementation, the HOPE program led to an 83 percent reduction in failed drug tests, 71 percent reduction in missed appointments with probation officers, and a 70 percent reduction in the revocation rate for participating probationers.
“Programs like HOPE have led to lower recidivism rates around the country by taking action before a probationer becomes a repeat offender," Vance said. "Swift and certain sanctions ensure that probationers and parolees receive prompt attention and additional supervision at the first indication of misconduct.”
As nearly 40 percent of inmates coming into Alabama prisons each year are individuals who were unsuccessful in their probation or parole supervision, the Alabama Prison Reform Taskforce is currently examining methods to improve the success rates of parolees and probationers. State Sen. Cam Ward, R-Alabaster, chairman of the Prison Reform Task Force, said, "The reform efforts underway in Alabama seek to develop programs such as this, that are proven to reduce recidivism in corrections systems. By making community supervision work better, we will make our communities safer and save taxpayer dollars."
State Sen. Arthur Orr, a member of the Prison Reform Taskforce, and whose district includes Decatur, said, "We are appreciative of the Department of Justice’s support to help us reduce recidivism among our inmates under community supervision. By working together, we not only help our prison overcrowding situation in Alabama but also, and more importantly, we help newly released individuals get on the right path through the improved supervision measures funded by this grant."
Compounding Pharmacist Admits Paying Kickbacks for Referrals, Health Care FraudRead the Press Release
CAMDEN, N.J. – A pharmacist with a compounding pharmacy in Lakewood, New Jersey, admitted today to paying tens of thousands of dollars in cash bribes to physicians for referring pain cream prescriptions, defrauding health care benefit programs out of hundreds of thousands of dollars, U.S. Attorney Paul J. Fishman announced.
The president and pharmacist-in-charge of Prescriptions R US – Vladimir Kleyman, 43, of Lakewood, New Jersey – pleaded guilty to an information charging him with conspiracy to pay kickbacks and to commit health care fraud. Kleyman, who originally was charged by complaint in January of 2014, entered his guilty plea before U.S. District Judge Joseph H. Rodriguez in Camden federal court.
According to documents filed in this case and statements made in court:
From January 2013 through January 2014, Kleyman provided another individual with tens of thousands of dollars in cash and checks to provide bribes to physicians for referring prescriptions for a compounded pain cream to Prescriptions R US. Compounding pharmacies prepare medication, using different types and dosages of drugs, in order to provide more personalized medications for patients. The compounded pain cream prepared by Prescriptions R US in this case contains several components, including ketamine (a Schedule III non-narcotic), lidocaine and diclofenac.
During his guilty plea proceeding, Kleyman admitted that in a series of meetings in November and December 2013 alone, he arranged for the middleman to receive more than $40,000 in cash or checks with the understanding it would be used to pay bribes for the referral of pain cream prescriptions.
Kleyman also admitted he knew certain health insurance carriers, including federal health care benefit programs, did not cover compounded pain cream, but he nevertheless dispensed the pain cream to these patients and obtained payment from their insurance carriers by falsely representing the pain cream to be other covered items. Kleyman also acknowledged he defrauded health insurance carriers by making false and misleading representations about the quantity of the pain cream that he dispensed and the frequency with which he dispensed it. As a result, private insurance payors paid the pharmacy hundreds of thousands of dollars.
The conspiracy count with which Kleyman is charged carries a maximum potential penalty of five years in prison and a $250,000 fine. The government is also seeking Kleyman’s forfeiture of any proceeds derived from his offense. Sentencing is currently scheduled for Jan. 20, 2015.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark; the U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Thomas O’Donnell; and IRS–Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen, with the ongoing investigation.The government is represented by Assistant U.S. Attorney Jane H. Yoon and Senior Litigation Counsel Andrew Leven of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark.
U.S. Attorney Paul J. Fishman reorganized the health care fraud practice at the New Jersey U.S. Attorney’s Office shortly after taking office, including creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered more than $540 million in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act and other statutes.
14-367
Defense counsel: Alain Jeff Ifrah, Esq., Washington
Kleyman, Vladimir Information
Columbia Station Man Sentenced to 20 Years in Prison for Child Pornography and Related CrimesRead the Press Release
A Columbia Station man was sentenced to 20 years in prison for production of child pornography, child exploitation, extortion, identity theft and related crimes, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation's Cleveland office.
William T. Koch, age 25, previously pleaded guilty to 18 counts, including sexual exploitation of children, extortion, identity theft, receipt and distribution of minors engaged in sexually explicit conduct and unauthorized distribution of live musical performance.
Koch attempted to coerce more than a dozen minors to engage in sexually explicit conduct between 2010 and 2013 for the purpose of producing visual depictions of such conduct; knowing and having reason to know that such visual depictions would be transmitted, using any means or facility of interstate and foreign commerce, and in and affecting interstate and foreign commerce, according to court documents.
Koch used, persuaded, induced, enticed, and coerced a minor to engage in sexually explicit conduct for the purpose of transmitting a live visual depiction of such conduct, knowing and having reason to know that such visual depiction would be transmitted, using any means or facility of interstate and foreign commerce, and in and affecting interstate and foreign commerce, according to court documents.
Koch attempted to coerce a minor to engage in sexually explicit conduct with his 10-year-old brother, for the purpose of transmitting a live visual depiction of such conduct, knowing and having reason to know that such visual depiction would be transmitted, using any means or facility of interstate and foreign commerce, and in and affecting interstate and foreign commerce, according to court documents.
Koch distributed, in and affecting interstate and foreign commerce, by computer, any material in a manner that reflected the belief and was intended to cause another to believe that the material was a visual depiction of an actual minor engaging in sexually explicit conduct, according to court documents.
Koch, with the intent to extort a thing of value from some of the aforementioned minors, transmitted in interstate and foreign commerce, communications threatening to injure the reputations of said minors. He knowingly used, without lawful authority, in and affecting interstate and foreign commerce, a means of identification of another person, with the intent to commit, and in connection with, the offenses charged in the indictment.
This case is being prosecuted by Assistant United States Attorney Michael A. Sullivan.
The case was investigated by the Federal Bureau of Investigation and the Department of Homeland Security, Homeland Security Investigations.
Chateauguay man sentenced to 90 years for producing child pornographyRead the Press Release
Former karate instructor receives maximum penalty
ALBANY, NY – United States Attorney Richard S. Hartunian announced a 90 year sentence imposed upon RYAN STAPLES, 37 years old, of Chateauguay, NY. The sentence was imposed today by U.S. District Court Senior Judge Thomas J. McAvoy.
On May 1, 2014, Staples pled guilty to three counts of production of child pornography involving three different minor victims. He admitted that he videotaped and took photographs of himself engaged in sexually explicit conduct with the victims between July and October 2010.
The Court imposed the maximum sentence of imprisonment for thirty years on each of the three counts and ordered the sentences on each count to run consecutively. The Court also imposed a lifetime term of supervised release and an order of forfeiture. The United States Attorney’s Office dismissed Count 4 of the indictment, Possession of Child Pornography. The defendant was remanded to the custody of the U.S. Marshals.
“Sexual exploitation crimes are among the most heinous, imposing a ‘life-time’ sentence on the minor victims involved,” stated United States Attorney Richard S. Hartunian. “It is fitting this defendant received a life-time of imprisonment as well. The damage done to these children is tragic. The most we can do is make sure this defendant will never be near another child again.”
U.S. Attorney Hartunian praised the collaborative work of law enforcement agencies in the north country of New York. “The cooperative work of the Department of Homeland Security, Homeland Security Investigations, Rouses Point and the Clinton County Sheriff’s Office was vital in this case. They did an outstanding investigative job.”
“These types of crimes are appalling and made worse when their perpetrators have ready access to young people," said HSI Special Agent in Charge James Spero. "However, the significant sentencing handed down today ensures Mr. Staples will never victimize another child. The sentencing should also serve as a stark reminder of the severe penalties that await those who engage in this type of depraved activity. The Clinton County Sheriff provided invaluable assistance in the investigation by conducting all of the forensic examinations."
This case was investigated by Homeland Security Investigations, Rouses Point and the Clinton County Sheriff Office. Prosecuting the case was Assistant United States Attorney Katherine Kopita.
Cambridge Pharmacy Robber Imprisoned 7 YearsRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that on September 29, 2014, Russell John Thaxton, 48, of Morrisville, was sentenced by United States District Judge J. Garvan Murtha to eighty-four months imprisonment on his guilty plea to a charge of pharmacy robbery. Judge Murtha also ordered Thaxton to serve two years on supervised release after his incarceration ends, and to pay restitution for the controlled substances he stole during the robbery.
According to court records, on August 29, 2013, Thaxton, Jennifer Stancliff, 30, of Morrisville, and Amanda Tetreault, 31, of Eden, traveled from Morrisville to Cambridge to rob the Kinney Drugs pharmacy. Shortly after entering the store, Thaxton pulled a black ski mask over his face, and approached the pharmacy counter. He brandished an airsoft gun, which had the appearance of a semi‑automatic pistol. Pointing the weapon at the pharmacist, Thaxton shouted that he wanted Aall your opiates and stimulants.@ The pharmacist complied with the demands, and defendant departed the store with 1,102 controlled substance pills with a wholesale value of more than $5,000. Thaxton joined his accomplices in a vehicle, and was arrested shortly thereafter by Vermont State Police (VSP). Lamoille County State=s Attorney Joel Page charged all three in state court. After further investigation by VSP and the Drug Enforcement Administration (DEA), a federal grand jury indicted Thaxton and Stancliff for robbing the pharmacy. Stancliff is scheduled for sentencing on December 15, 2014. Tetreault entered a guilty plea to a related charge in state court.
United States Attorney Tristram J. Coffin commended the investigation by VSP and DEA, and thanked State=s Attorney Page for his cooperation. Coffin added, AThis office will continue to work closely with federal, state and local law enforcement to investigate and prosecute violent crimes, including robberies of pharmacies and other commercial establishments.@ Thaxton was represented by Assistant Federal Defender David McColgin. The case is being prosecuted by Assistant U.S. Attorney Craig S. Nolan.Bioscan Principal Pleads Guilty in Multi-Million Dollar Health Care Fraud and Money Laundering SchemeRead the Press Release
A Florida managing member of a shell company pleaded guilty today in federal court in Tampa, Florida, for his role in a multi-million dollar health care fraud and money laundering scheme.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney A. Lee Bentley III of the Middle District of Florida, Acting 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 and Special Agent in Charge Paul Wysopal of the FBI’s Tampa Field Office made the announcement.
Gregory J. Sylvestri, 44, formerly of Lake Worth, Florida, pleaded guilty in the U.S. District Court for the Middle District of Florida to two charges related to money laundering of health care fraud proceeds. His sentencing date will be set by the court at a later date. In his plea agreement, Sylvestri agreed to the forfeiture of a $60,000 platinum and diamond engagement ring that he purchased with health care fraud proceeds.
According to his plea agreement, from June 2010 through April 2014, Sylvestri’s co-conspirators submitted over $12 million in fraudulent claims to Medicare through three purported health clinics, Cornerstone Health Specialists of Lakeland, Florida, Summit Health Specialists P.L. of Tampa, and Coastal Health Specialists LLC of Lakeland and Melbourne, Florida. These fraudulent claims included claims resulting from illegal kickback arrangements and claims for radiology, audiology, neurology and cardiology services that were never rendered. In fact, some of the services were purportedly provided to Medicare beneficiaries who had died before the supposed date of service. Medicare paid over $2,500,000 in reimbursement on the fraudulent claims.
Sylvestri admitted that he and his co-conspirators used bank accounts for the clinics and shell companies, including his shell company, BONB LLC, aka BioScan, to conceal and disburse the fraud proceeds.
Four other defendants were indicted in this case on health care fraud and money laundering charges. In addition to Sylvestri, one of the other defendants has pleaded guilty. The remaining three defendants are scheduled for a jury trial in April 2015. An indictment is merely an accusation, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This case is being investigated by HHS-OIG and the FBI and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and U.S. Attorney’s Office for the Middle District of Florida. This case is being prosecuted by Trial Attorney Christopher J. Hunter 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 Team (HEAT), go to: www.stopmedicarefraud.gov.
Beaver County Man Found Guilty of Selling Merchandise Stolen in PA at Ohio Flea MarketRead the Press Release
PITTSBURGH - After deliberating for approximately four hours, a federal jury found Terry L. Sempf guilty of two counts of conspiracy and Interstate transportation of stolen goods, United States Attorney David J. Hickton announced today.
Terry L. Sempf, 58, of New Brighton, Pa., was tried before United States District Judge David S. Cercone in Pittsburgh.
According to Assistant United States Attorney Shaun E. Sweeney, who prosecuted the case, the evidence presented at trial established that from between 2006 and September of 2010, Sempf paid professional thieves to steal merchandise from various retail stores in Western Pennsylvania. The evidence further established that after purchasing the stolen goods from the thieves, Sempf transported the items to the Rogers Community Auction in Rogers, Ohio, where he then resold the stolen items.
Judge Cercone scheduled sentencing for Feb. 23, 2014, at 11:30 a.m. The law provides for a total sentence of 15 years in prison, a fine of $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based on the seriousness of the offenses and the prior criminal history, if any, of the defendant.
The Federal Bureau of Investigation and the New Brighton Police Department conducted the investigation that led to the prosecution of Sempf.