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19 November 2014
Wernersville Resident Charged with Health Care FraudRead the Press Release
The United States Attorney for the Middle District of Pennsylvania, announced today that a criminal charge of health care fraud has been filed against Edward Evans of Wernersville, PA.
According to United States Attorney, Peter Smith, Evans, age 50, is charged in a one-count felony information with health care fraud based on the submission of false claims to the Pennsylvania Attendant Care Medicaid Waiver Program. The information alleges Evans’ billed for and received reimbursement for attendant care services which were never performed.
The investigation which is ongoing was conducted by the U.S. Department of Health and Human Services, Office of Inspector General, the Federal Bureau of Investigation, and the Pennsylvania Attorney General’s Medicaid Fraud Control Section. Assistant United States Attorney Wayne P. Samuelson is assigned to prosecute the case.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statues and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is ten years imprisonment, and a fine of $250,000. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.Washington Gas Energy Systems Agrees to Pay $2.5 Million in Fines and Penalties for Conspiring to Obtain Federal ContractsRead the Press Release
Washington Gas Energy Systems (WGESystems) has agreed to pay more than $2.5 million in fines and monetary penalties for conspiring to commit fraud on the United States by illegally obtaining contracts that were meant for small, disadvantaged businesses.
The court agreement was announced today by William J. Baer, Assistant Attorney General of the Antitrust Division; Principal Assistant U.S. Attorney Vincent H. Cohen Jr. of the U.S. Attorney’s Office for the District of Columbia; Robert C. Erickson, Acting Inspector General of the U.S. General Services Administration (GSA); Peggy E. Gustafson, Inspector General for the Small Business Administration (SBA), and Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office.
WGESystems, based in Virginia, is a wholly owned subsidiary of WGL Holdings Inc. (WGL). WGL is the parent company for all of the corporations within the Washington Gas family. WGESystems plays no direct role in the delivery of natural gas, and it is not a utility. It is a design-build firm that specializes in providing energy efficiency and sustainability solutions to clients.
A criminal information was filed today in the U.S. District Court for the District of Columbia charging WGESystems with one count of knowingly and willfully conspiring to commit major fraud on the United States. WGESystems waived the requirement of being charged by way of federal indictment, agreed to the filing of the information, and has accepted responsibility for its criminal conduct and that of its employees.
In addition, as part of a deferred prosecution agreement reached with the U.S. Attorney’s Office for the District of Columbia and the Antitrust Division, WGESystems agreed to pay a fine of $1,560,000 and a monetary penalty of $1,027,261 within five days of the approval of the agreement by the court.
According to court documents filed today, WGESystems conspired with a company that was eligible to receive federal government contracts set aside for small, disadvantaged businesses with the understanding that the business would illegally subcontract all of the work on the projects to WGESystems. In this way, WGESystems was able to capture a total of eight contracts worth $17,711,405 that should have gone to an eligible company. These contracts, awarded in 2010, were focused on making federal buildings in the Washington, D.C., area more energy efficient.
Under the illegal agreement, the company that was awarded these government contracts was allowed to keep 5.8 percent of the value of the contracts for allowing WGESystems to use the company’s small business status to win these contracts.
“Conspiracies to violate federal procurement laws will not be tolerated,” said Assistant Attorney General Bill Baer for the Antitrust Division. “Taxpayers deserve to have contracting processes that are fair and competitive, and fully comply with applicable laws and regulations.”
“Time and time again, we have seen government contractors abuse and exploit programs designed to help minority and socially disadvantaged small businesses,” said Principal Assistant U.S. Attorney Cohen. “This Washington Gas subsidiary obtained millions of dollars in federal contracts by using a small business that had no ability to actually complete the contract as a front company. Even though the subsidiary lost money on these contracts, it is required to pay $2.5 million in fines and penalties under this agreement. This resolution should cause other contractors to think twice about playing fast and loose with federal contracting rules.”
“Cases like this are important for us to maintain the integrity of the federal contracting process,” said GSA Acting Inspector General Erickson. “Companies cannot cheat to win federal contracts and expect to get away with their ill-gotten gains.”
“SBA’s 8(a) Business Development Program assists eligible socially and economically disadvantaged individuals in developing and growing their businesses,” said SBA Inspector General Gustafson. “Large businesses that fraudulently seek to gain access to contracts set aside for small businesses erode the public’s trust in this important program. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their professionalism and commitment to justice in this investigation.”
“Federal government contracting laws are in place to create a level playing field for small disadvantaged businesses whose work supports our country's diverse financial infrastructure,” said Assistant Director in Charge McCabe. “The FBI with our law enforcement partners will investigate those companies who fraudulently abuse federal contracting laws with the purpose of increasing their company's bottom line.”
According to the court documents, until 2010, GSA had an area-wide contract with WGESystems. This contract enabled GSA, without competition, to enter into contracts with WGESystems so that WGESystems could provide energy management services for federal buildings.
However, starting in 2010, the federal government changed its practices. The American Reinvestment and Recovery Act appropriated funds to make buildings in the District of Columbia and the surrounding area more energy efficient. These funds were to be awarded through the 8(a) program, which is administered by the SBA and which was created to help small, disadvantaged businesses access the federal procurement market.
To qualify for the 8(a) program, a business must be at least 51 percent-owned and controlled by a U.S. citizen (or citizens) of good character who meet the SBA’s definition of socially and economically disadvantaged. The firm also must be a small business (as defined by the SBA) and show a reasonable potential for success. Participants in the 8(a) program are subject to regulatory and contractual limits on subcontracting work from 8(a) set-aside contracts. The SBA regulations require, among other things, the 8(a) concern to agree that on construction contracts it “will perform at least 15 percent of the cost of the contract with its own employees (not including the costs of materials).”
As a result of this change, WGESystems – which was not certified to participate in the 8(a) program – faced the prospect of losing millions of dollars in revenue.
WGESystems, along with an 8(a) company it used to obtain these contracts, and others, engaged in and executed a scheme to defraud the SBA and GSA by, among other things: concealing that WGESystems, which was not eligible for the aforementioned SBA contracting preferences, exercised impermissible control over the 8(a) company’s bidding for and performance on GSA contracts; and misrepresenting that the 8(a) company was in compliance with SBA regulations pertaining to work on these contracts, including that the company’s employees had performed the required percentage of work on these contracts. Through these unlawful efforts, WGESystems and the 8(a) company with which it conspired obtained, at least, approximately $17,711,405 in U.S. government contracts related to work at eight different federal buildings. When these contracts were awarded, the 8(a) company’s registered place of business was the president of the company’s home, and the company had no employees who could provide design-build or contracting services.
WGESystems assisted the 8(a) company with identifying a project manager for the work at the eight buildings who was nominally an employee of the 8(a) company, but who, in actuality, took direction from WGESystems employees. For much of the relevant period, this project manager was the only employee of the 8(a) company performing work for any of the eight projects.
Under the agreement with WGESystems, the 8(a) company was entitled to 5.8 percent of the $17,711,405 total value of the contracts, which equals $1,027,261. To date, with all but one of the eight contracts completed or suspended, WGESystems has lost approximately $1,122,581 on the projects. WGESystems initially anticipated a profit margin that would have equaled about $1,560,000.
Since being informed of this investigation by the Justice Department, WGESystems has taken steps to enhance and optimize its internal controls, policies and procedures.
In light of the company’s remedial actions to date and its willingness to acknowledge responsibility for its actions, the U.S. Attorney’s Office for the District of Columbia and the Antitrust Division will recommend the dismissal of the Information in two years, provided WGESystems fully cooperates with, and abides by, the terms of the deferred prosecution agreement.
This investigation was conducted by the Inspector General’s Offices of the U.S. General Services Administration and the Small Business Administration and the FBI’s Washington Field Office. The prosecution is being handled by Assistant U.S. Attorney Matt Graves of the Fraud and Public Corruption Section of the U.S. Attorney’s Office for the District of Columbia, and Assistant Chief Craig Y. Lee and Trial Attorney Diana Kane, both of the Antitrust Division’s Washington Criminal I Section.
Washington Gas Statement of Offense
Washington Gas DPA
Washington Gas Information
Washington Gas Energy Systems Agrees to Pay $2.5 Million in Fines and Penalties for Conspiring to Illegally Obtain Federal ContractsScheme Involved Energy-Related Services at Government BuildingsRead the Press Release
WASHINGTON – Washington Gas Energy Systems (WGESystems) has agreed to pay more than $2.5 million in fines and monetary penalties for conspiring to commit fraud on the United States by illegally obtaining contracts that were meant for small, disadvantaged businesses.
The court agreement was announced today by Principal Assistant U.S. Attorney Vincent H. Cohen, Jr., of the U.S. Attorney’s Office for the District of Columbia; William J. Baer, Assistant Attorney General of the Antitrust Division; Robert C. Erickson, Acting Inspector General of the U.S. General Services Administration (GSA); Peggy E. Gustafson, Inspector General for the Small Business Administration (SBA); and Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office.
WGESystems, based in Virginia, is a wholly owned subsidiary of WGL Holdings, Inc. (WGL). WGL is the parent company for all of the corporations within the Washington Gas family. WGESystems plays no direct role in the delivery of natural gas, and it is not a utility. It is a design-build firm that specializes in providing energy efficiency and sustainability solutions to clients.
A Criminal Information was filed today in the U.S. District Court for the District of Columbia charging WGESystems with one count of knowingly and willfully conspiring to commit major fraud on the United States. WGESystems waived the requirement of being charged by way of federal indictment, agreed to the filing of the Information, and has accepted responsibility for its criminal conduct and that of its employees.
In addition, as part of a deferred prosecution agreement reached with the U.S. Attorney’s Office for the District of Columbia and the Antitrust Division, WGESystems agreed to pay a fine of $1,560,000 and a monetary penalty of $1,027,261 within five days of the approval of the agreement by the Court.
According to court documents filed today, WGESystems conspired with a company that was eligible to receive federal government contracts set aside for small, disadvantaged businesses with the understanding that the business would, illegally, subcontract all of the work on the projects to WGESystems. In this way, WGESystems was able to capture a total of eight contracts worth $17,711,405 that should have gone to an eligible company. These contracts, awarded in 2010, were focused on making federal buildings in the Washington, D.C., area more energy efficient.
Under the illegal agreement, the company that was awarded these government contracts was allowed to keep 5.8 percent of the value of the contracts for allowing WGESystems to use the company’s small business status to win these contracts.
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“Time and time again, we have seen government contractors abuse and exploit programs designed to help minority and socially disadvantaged small businesses,” said Principal Assistant U.S. Attorney Cohen. “This Washington Gas subsidiary obtained millions of dollars in federal contracts by using a small business that had no ability to actually complete the contract as a front company. Even though the subsidiary lost money on these contracts, it is required to pay $2.5 million in fines and penalties under this agreement. This resolution should cause other contractors to think twice about playing fast and loose with federal contracting rules.”
“Conspiracies to violate federal procurement laws will not be tolerated,” said Assistant Attorney General for the Antitrust Division Baer. “Taxpayers deserve to have contracting processes that are fair and competitive, and fully comply with applicable laws and regulations.”
“Cases like this are important for us to maintain the integrity of the federal contracting process,” said GSA Acting Inspector General Erickson. “Companies cannot cheat to win federal contracts and expect to get away with their ill-gotten gains.”
“SBA’s 8(a) Business Development Program assists eligible socially and economically disadvantaged individuals in developing and growing their businesses,” said SBA Inspector General Gustafson. “Large businesses that fraudulently seek to gain access to contracts set aside for small businesses erode the public’s trust in this important program. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their professionalism and commitment to justice in this investigation.”
“Federal government contracting laws are in place to create a level playing field for small disadvantaged businesses whose work supports our country's diverse financial infrastructure,” said Assistant Director in Charge McCabe. “The FBI with our law enforcement partners will investigate those companies who fraudulently abuse federal contracting laws with the purpose of increasing their company's bottom line.”
According to the court documents, until 2010, GSA had an areawide contract with WGESystems. This contract enabled GSA, without competition, to enter into contracts with WGESystems so that WGESystems could provide energy management services for federal buildings.
However, starting in 2010, the federal government changed its practices. The American Reinvestment and Recovery Act appropriated funds to make buildings in the District of Columbia and the surrounding area more energy efficient. These funds were to be awarded through the 8(a) program, which is administered by the SBA and which was created to help small, disadvantaged businesses access the federal procurement market.
To qualify for the 8(a) program, a business must be at least 51 percent-owned and controlled by a U.S. citizen (or citizens) of good character who meet the SBA’s definition of socially and economically disadvantaged. The firm also must be a small business (as defined by the SBA) and show a reasonable potential for success. Participants in the 8(a) program are subject to regulatory and contractual limits on subcontracting work from 8(a) set-aside contracts. The SBA regulations require, among other things, the 8(a) concern to agree that on construction contracts it “will perform at least 15 percent of the cost of the contract with its own employees (not including the costs of materials).”
As a result of this change, WGESystems – which was not certified to participate in the 8(a) program – faced the prospect of losing millions of dollars in revenue.
WGESystems, along with an 8(a) company it used to obtain these contracts, and others, engaged in and executed a scheme to defraud the SBA and GSA by, among other things: concealing that WGESystems, which was not eligible for the aforementioned SBA contracting preferences, exercised impermissible control over the 8(a) company’s bidding for and performance on GSA contracts; and misrepresenting that the 8(a) company was in compliance with SBA regulations pertaining to work on these contracts, including that the company’s employees had performed the required percentage of work on these contracts. Through these unlawful efforts, WGESystems and the 8(a) company with which it conspired obtained, at least, approximately $17,711,405 in U.S. government contracts related to work at eight different federal buildings. When these contracts were awarded, the 8(a) company’s registered place of business was the president of the company’s home, and the company had no employees who could provide design-build or contracting services.
WGESystems assisted the 8(a) company with identifying a project manager for the work at the eight buildings who was nominally an employee of the 8(a) company, but who, in actuality, took direction from WGESystems employees. For much of the relevant period, this project manager was the only employee of the 8(a) company performing work for any of the eight projects.
Under the agreement with WGESystems the 8(a) company was entitled to 5.8 percent of the $17,711,405 total value of the contracts, which equals $1,027,261. To date, with all but one of the eight contracts completed or suspended, WGESystems has lost approximately $1,122,581 on the projects. WGESystems initially anticipated a profit margin that would have equaled about $1,560,000.
Since being informed of this investigation by the Justice Department, WGESystems has taken steps to enhance and optimize its internal controls, policies, and procedures.
In light of the company’s remedial actions to date and its willingness to acknowledge responsibility for its actions, the U.S. Attorney’s Office for the District of Columbia and the Antitrust Division will recommend the dismissal of the Information in two years, provided WGESystems fully cooperates with, and abides by, the terms of the deferred prosecution agreement.
This investigation was conducted by the Inspector General’s Offices of the U.S. General Services Administration and the Small Business Administration and the FBI’s Washington Field Office. The prosecution is being handled by Assistant U.S. Attorney Matt Graves of the Fraud and Public Corruption Section of the U.S. Attorney’s Office for the District of Columbia, and Assistant Chief Craig Y. Lee and Trial Attorney Diana Kane, both of the Antitrust Division.
14-259Utah U. S. Attorney’s Office Collects $4,335,105.35 Through Civil and Criminal Actions in Fiscal Year 2014Read the Press Release
SALT LAKE CITY - Acting U.S. Attorney Carlie Christensen announced Wednesday that the District of Utah collected $4,335,105.35 in Fiscal Year (FY) 2014 related to criminal and civil actions in the fiscal year ending Sept. 30, 2014. Of this amount, $1,593,778.34 was collected in criminal actions and $2,741,327.01 was collected in civil actions. The U.S. Attorney’s Office is responsible for enforcing and collecting civil and criminal debts owed to the United States and restitution owed to federal crime victims. The District of Utah also worked with other U.S. Attorneys’ offices and components of the Department of Justice to collect an additional $3,432.187.83 in cases pursued jointly with these offices.
One of the largest collections in Utah this year came as a part of a civil settlement with Okland Construction Co., who agreed to pay the government $928,000 to resolve allegations that it made false statements and submitted false claims under the Small Business Administration’s Section 8(a) Program for Small and Disadvantaged Businesses. Okland Construction, a large construction company, entered into a mentor-protégé agreement with Saiz Construction, a participant in the 8(a) program. The government alleged that Okland had not formed a qualifying joint venture with Saiz, and as a result, had fraudulently obtained access to contracts set aside for small businesses.
Additionally, the U.S. Attorney’s Office in Utah, working with partner agencies and divisions, collected $11,871,702 in asset forfeiture actions in FY 2014, which is used to restore funds to crime victims and for a variety of law enforcement purposes. The office also paid $1,650,252 in forfeited funds to crime victims for restitution and shared $566,684 with local law enforcement agencies who participated in the prosecution of federal cases. Asset forfeiture is an effective deterrent to crime and is used to disrupt and dismantle criminal organizations that attempt to profit from their unlawful activity and to restore property to crime victims.
“Financial recoveries are a critical part of the Department’s mission to hold those who violate the law accountable for the injury they cause to crime victims and the general public. This office takes that responsibility very seriously and will continue to aggressively pursue compensation from those who commit crimes and civil wrongs to ensure that the wrongdoers – not the public – bear the costs of unlawful conduct here in Utah,” Acting U.S. Attorney Christensen said today.
Attorney General Eric Holder announced on Wednesday that the Justice Department collected $24.7 billion in civil and criminal actions in FY 2014. This figure represents nearly eight-and- a-half times the appropriated $2.91 billion budget for the 94 U.S. Attorneys’ offices and the main litigating divisions of the Justice Department combined in that same period. The amount is more than three times the $8 billion collected in FY 2013.
“Every day, the Justice Department’s federal prosecutors and trial attorneys work hard to protect our citizens, to safeguard precious taxpayer resources, and to provide a valuable return on investment to the American people,” said Attorney General Holder. “Their diligent efforts are enabling us to achieve justice and recoup losses in virtually every sector of the U.S. economy. And it shows the fruits of the Justice Department’s tireless work in enforcing federal laws; in protecting the American people from violent crime, national security threats, discrimination, exploitation, and abuse; and in holding financial institutions accountable for their roles in causing the 2008 financial crisis.”
U.S. Attorneys’ offices, along with Department of Justice litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the United States and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or a financial loss. While restitution is paid directly to the victim, criminal fines and felony assessments are paid to the Department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections come from affirmative civil enforcements cases, in which the United States recovered government money lost to fraud, fire recovery, or other misconduct or collected fines imposed on individuals or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts are collected on behalf of federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration, and Department of Education.
The largest single source of collections came from civil penalties paid by financial institutions to resolve financial fraud claims stemming from the 2008 financial crisis, including significant amounts paid by JPMorgan and Citigroup Inc, to resolve federal and state civil claims related to the packaging, marketing, sale and issuance of residential mortgage-backed securities (RMBS). Both resolutions include record penalties under the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA) and in addition, also provide billions of dollars of relief to struggling homeowners.
Used Car Salesman Pleads Guilty to Tax EvasionRead the Press Release
United States Attorney Andrew M. Luger today announced the guilty plea of JAMES FRANCIS VOLIN, 64, of Inver Grove Heights, for hiding income from used car sales from the Internal Revenue Service. VOLIN pleaded guilty to an Information filed on November 18, 2014, charging him with Income Tax Evasion. He pleaded guilty before Chief Judge Michael J. Davis in U.S. District Court in Minneapolis. VOLIN will be sentenced at a future date.
According to his guilty plea and documents filed in court, in 2008 VOLIN agreed to pay nearly $100,000 in outstanding taxes to the IRS. VOLIN still owed the taxes in 2012 and 2013 when he was operating an unlicensed and illegal used car dealership which generated substantial income in cash. Instead of paying the back taxes as agreed, VOLIN hid the income. VOLIN admitted that he did not report the cash income or file tax returns and that he put money into cashier’s checks and used bank accounts opened under another’s name and social security number to avoid detection.
VOLIN was originally indicted earlier this year for structuring bank deposits. “Structuring” is a way of depositing money into bank accounts in amounts less than those required by law to be reported by the financial institution to the Financial Crimes Enforcement Network (FinCEN). According to that indictment, between April 2012 and April 2013, VOLIN made structured deposits totaling more than $200,000, in amounts insufficient to trigger mandatory reporting to the government.
This case is the result of an investigation by the Internal Revenue Service – Criminal Investigations and the Minnesota State Patrol Vehicle Crimes Unit.
The case is being prosecuted by Assistant United States Attorney Robert Lewis.
Defendant Information: JAMES FRANCIS VOLIN, 64
Inver Grove Heights, MN
Convicted: • Income Tax Evasion, 1 count###
United States Attorney Wigginton Announces Civil and Criminal Collections Amounting to Nearly $5.5 Million Dollars in Fiscal Year 2014Read the Press Release
Follow @SDILNewsUnited States Attorney Stephen R. Wigginton, Southern District of Illinois, announced today that the Southern District of Illinois collected $5,490,994.09 in criminal and civil actions in Fiscal Year 2014. Of this amount, $1,574,414.70 was collected in criminal actions and $3,916,579.39 was collected in civil actions.
Additionally, Southern District of Illinois worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $5,174,776.44 in cases pursued jointly with these offices. Of this amount, $8,746.63 was collected in criminal actions and $5,166,029.81was collected in civil actions.
Attorney General Eric Holder also announced today that the Justice Department collected $24.7 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2014. The more than $24 billion in collections in FY 2014 represents nearly eight and a half times the appropriated $2.91 billion budget for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period.
“Every day, the Justice Department’s federal prosecutors and trial attorneys work hard to protect our citizens, to safeguard precious taxpayer resources, and to provide a valuable return on investment to the American people,” said Attorney General Holder. “Their diligent efforts are enabling us to achieve justice and recoup losses in virtually every sector of the U.S. economy. And this result shows the fruits of the Justice Department’s tireless work in enforcing federal laws, in protecting the American people from violent crime, national security threats, discrimination, exploitation, and abuse, and in holding financial institutions accountable for their roles in causing the 2008 financial crisis.”
United States Attorney Wigginton noted, “As I have done for the last four years, I will continue to make crime pay the honest citizens of Southern Illinois. My office will not fail to collect monies due the United States. Whether you illegally take money with a gun or with a pen, I will see that you are punished and that your ill-gotten gains are returned to the treasury of the United States. As an example, I would highlight our case where we recovered $3,300,000.00 as part of the settlement in a qui tam case filed against Kmart Corporation. The case involved Kmart improperly issuing gift cards to customers who moved their Medicare and Medicaid prescriptions to Kmart from competing pharmacies contrary to federal medicare/medicaid re-imbursement regulations.”
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, the Internal Revenue Service, the Small Business Administration, and the Department of Education.
Additionally, the United States Attorney’s Office for the Southern District of Illinois, working with partner agencies and divisions, collected $1,745,492.00 in asset forfeiture actions in FY 2014. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
United States Attorney for Western District of Oklahoma Involved in Collecting over $36 Million in Fiscal Year 2014Read the Press Release
Oklahoma City, Oklahoma -- The United States Attorney’s Office for the Western District of Oklahoma was involved in collecting a total of $36,340,329.15 in civil and criminal cases and through asset forfeiture in Fiscal Year 2014, announced Sanford C. Coats, United States Attorney.
The Western District of Oklahoma collected $30,519,863.47 in criminal and civil actions handled by the district. Of this amount, $4,579,614.84 was collected in criminal actions and $25,940,248.63 was collected in civil actions.
The Western District also worked jointly with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $362,502.68 in civil cases pursued jointly with these offices.
Finally, the U.S. Attorney’s Office also worked with partner agencies and divisions to collect an additional $5,457,963.00 in asset forfeiture actions in FY 2014. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
Attorney General Eric Holder announced today that the Justice Department collected $24.7 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2014. The more than $24 billion in collections in FY 2014 represents nearly eight and a half times the appropriated $2.91 billion budget for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period.
"Every day, the Justice Department’s federal prosecutors and trial attorneys work hard to protect our citizens, to safeguard precious taxpayer resources, and to provide a valuable return on investment to the American people," said Attorney General Holder. "Their diligent efforts are enabling us to achieve justice and recoup losses in virtually every sector of the U.S. economy. And this result shows the fruits of the Justice Department’s tireless work in enforcing federal laws; in protecting the American people from violent crime, national security threats, discrimination, exploitation, and abuse; and in holding financial institutions accountable for their roles in causing the 2008 financial crisis."
"These results are due to the outstanding work done by the talented women and men in the U.S. Attorney’s Office, particularly in our Asset Recovery Unit," said Coats. "Our Office is clearly dedicated to recovering funds for the federal treasury and for victims of federal crime. We will continue to hold accountable those who seek to profit from fraud and other illegal activities."
Significant Cases in the Western District of Oklahoma
In May of 2014, the U.S. Attorney’s Office recovered $23,981,669.78 in the bankruptcy of Stelera Wireless, LLC, a rural internet broadband service provider in Texas, Colorado, Kansas and New Mexico. Stelera had received loans from the Rural Utilities Service of the U.S. Department of Agriculture to promote distance learning, telemedicine initiatives and rural broadband access. Stelera defaulted on its note and sought bankruptcy protection. During the bankruptcy case, the United States recovered the loan amounts owed after defeating arguments that the loan was not properly secured and that the debt should be reclassified and written down.
In January of 2014, Wildcat Concrete Services, Inc., a Kansas corporation, paid $372,750 to the North American Wetlands Conservation Fund as part of a non-prosecution agreement with the United States arising from the destruction of cliff swallow nests during a bridge repair project that were protected by the Migratory Bird Treaty Act.
In October of 2013, SSM Health Care of Oklahoma, Inc., which owns and operates St. Anthony Hospital in Oklahoma City, agreed to pay $475,000 to the United States to settle civil claims relating to SSM’s billing Medicare for inpatient services that should have been billed as outpatient services.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
U.S. Attorney’s Office Collects More Than $367 Million in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2014Read the Press Release
Tampa, FL - U.S. Attorney A. Lee Bentley, III announced today that the Middle District of Florida had its strongest financial year ever. In Fiscal Year 2014, which ended September 30th, the Office’s Civil, Criminal, and Asset Forfeiture Divisions collected over $367 million for taxpayers.
The Office’s Civil Division, led by Lacy R. Harwell, recovered $152,950,505 in affirmative civil fraud cases, most alleging health care fraud. In many of these cases, Middle District of Florida Assistant U.S. Attorneys worked closely with attorneys from the Department of Justice Civil Division. The total civil recovery amount was the result of settlements reached in the affirmative civil fraud cases set forth below, as well as an installment payment of approximately $20 million made as part of a settlement in an earlier case (United States ex rel. Hellein v. Wellcare Health Plans).
The Office’s Criminal Division, led by Rachelle DesVaux Bedke and Karen Gable, recovered another $19,705,136 in criminal cases, most of which was in the form of criminal fines, special assessments, and restitution. Providing restitution for the victims of crime is a top priority of the Middle District of Florida.
Finally, the Office’s Asset Forfeiture Division, led by Anita Cream, had its best year ever. Working with its partner agencies, the Middle District of Florida’s Asset Forfeiture Division collected more than $195 million in criminal and civil forfeitures. Depending on the type of case, forfeited assets are deposited into the Department of Justice Assets Forfeiture Fund or the Department of Treasury’s Assets Forfeiture Fund. Almost all of the monies recovered through asset forfeiture in Fiscal Year 2014 will be used to restore funds to crime victims. In addition, approximately $3.5 million in forfeited funds was shared with state and local law enforcement agencies. The Middle District of Florida’s most significant asset forfeiture cases are detailed below.
“Recovering monies from convicted criminals and others who have defrauded the government is critical in enforcing our nation’s laws,” said U.S. Attorney A. Lee Bentley, III. “Working in partnership with our law enforcement partners, and other federal, state, and local agencies, our efforts ensure that criminals and others committing fraud are held fully accountable for their offenses. Through these coordinated efforts, we are able to help victims recover from their losses, wherever possible, and replenish public resources.”
U.S. Attorney Bentley further stated, “In Fiscal Year 2014, the budget for our Office was approximately $23 million. That means that for every dollar we spent, the Assistant U.S. Attorneys working here recovered about $16.”
Attorney General Eric Holder announced today that the Justice Department collected $24.7 billion in civil and criminal actions in the fiscal year ending September 30, 2014. The more than $24 billion in collections in FY 2014 represents nearly eight and a half times the appropriated $2.91 billion budget for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period.
“Every day, the Justice Department’s federal prosecutors and trial attorneys work hard to protect our citizens, to safeguard precious taxpayer resources, and to provide a valuable return on investment to the American people,” said Attorney General Holder. “Their diligent efforts are enabling us to achieve justice and recoup losses in virtually every sector of the U.S. economy. And this result shows the fruits of the Justice Department’s tireless work in enforcing federal laws; in protecting the American people from violent crime, national security threats, discrimination, exploitation, and abuse; and in holding financial institutions accountable for their roles in causing the 2008 financial crisis.”
The U.S. Attorneys’ Offices, along with the Department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the Department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights, or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, the Department of Health and Human Services, the Internal Revenue Service, the Small Business Administration and the Department of Education.
Middle District of Florida Affirmative Case Highlights
United States ex rel. Baklid-Kunz v. Halifax Hospital
This whistleblower case was filed under the False Claims Act by a management hospital employee who alleged that her hospital had implemented compensation agreements with its employee physicians that violated federal law. Specifically, the whistleblower contended that the hospital had created a staffing company to employ the majority of hospital employees, and had paid the staffing company an amount equal to the exact cost of the employees= salary and benefits. In addition to a base salary, physicians also received a bonus based upon a percentage of their billings and, in some instances, upon the hospital=s profits from particular departments. These compensation agreements allegedly violated the Stark Act. The whistleblower also alleged that the defendant’s neurosurgery practice group had performed medically unnecessary spine surgery procedures that were billed to Medicare, and also had upcoded its bills for patient admissions that should have been properly billed at a lower level of service. The USAO/MDFL intervened on the Stark Act claims and filed its own complaint to address those issues. The whistleblower pursued the medical necessity and upcoding claims on her own. The Court granted our motion for partial summary judgment on the Stark claims and set the case for trial in March 2014. On the morning trial was to commence, after months of difficult negotiations over the defendant’s claimed inability to pay, the government settled the Stark Act claims for $85 million. At the time it was announced, this was the largest civil settlement ever reached under that statute. With the government’s consent, the whistleblower subsequently settled the medical necessity and upcoding claims for $1 million.
United States ex rel. Fuentes et al.v. Genzyme Corp.
Genzyme Corp. manufactures a product known as Seprafilm, which is approved by the FDA to prevent adhesions from forming during surgeries. Two former Genzyme employees filed a complaint under the False Claims Act alleging that Genzyme had illegally promoted off label use of the product in unapproved slurry form. Shortly thereafter, a second case was filed in the MDFL by a third whistleblower, making virtually identical allegations against Genzyme. Parallel proceedings were opened in response to the complaints and the USAO/MDFL comprehensively investigated the prevalence of Genzyme’s sales practices at a number of hospitals around the country. The investigation corroborated the whistleblowers’ allegations, and we confronted the defendant with our findings. Settlement negotiations led to an agreement that resolved the civil claims in these cases for $22.8 million.
United States ex rel. Wells v. Baptist Health System, et al.
A former administrator of the Baptist Health hospital chain filed a complaint against the hospital under the False Claims Act, claiming that a neurologist employed by the hospital intentionally misdiagnosed his patients with various neurological disorders and then billed government healthcare programs for medically unnecessary services, tests, and treatments. In addition, she alleged that the defendant hospital chain did not return overpayments it had received as a result of the misdiagnoses, after discovering the neurologist’s scheme. The USAO/MDFL investigated these allegations thoroughly and corroborated them. Settlement discussions led to an agreement that resolved our civil claims against the hospital for $2.5 million, amounting to treble damages on the most egregious claims in question, and double damages on the rest. Our claims against the defendant neurologist, Dr. Sean Orr, remain pending.
United States ex rel. Stone v. Hospice of the Comforter
This case was filed by a former employee of the defendant hospice provider, who alleged that the hospice agency had submitted claims for reimbursement of hospice services rendered to patients that did not qualify for the services. To be reimbursed by Medicare, a hospice patient must suffer from a terminal condition that will result in death within six months of diagnosis. The whistleblower contended that the provider had offered hospice care to patients for periods far exceeding six months, often for years. After a lengthy investigation, the USAO/MDFL negotiated an agreement in principle with the defendant to resolve our claims for $3 million, which was approved by the Department of Justice. The whistleblower objected to the reasonableness of the settlement, but the Court overruled the objection and upheld the agreement after an evidentiary hearing.
United States ex rel. Valenti v. Tai Shan Golden Gain Aluminum Products, Inc.
This case was filed by the CEO of an exporter of aluminum extrusion products, who alleged that a number of individuals and entities had avoided paying antidumping and countervailing duties owed on aluminum extrusions by misrepresenting the country of origin for the products as Malaysia, rather than the People’s Republic of China. The USAO/MDFL investigation into these allegations confirmed them as to five of the defendants (Robert Wingfield, Northeastern Aluminum Corporation, William Ma, Southeastern Aluminum Products, Basco Manufacturing Company, Waterfall Group, LLC, and C.R. Laurence Co.), as well as revealed other deceptive practices. The USAO/MDFL intervened and filed our own complaint against these five defendants, and declined to pursue the claims against the rest of the named defendants. Settlement discussions were eventually opened with one defendant, Basco Manufacturing Company, which led to a resolution that will pay the government $1.1 million on the claims against this exporter. This represents a recovery of double damages for the United States. The litigation over our claims against the other four defendants remains pending.
United States ex rel. Thomas v. Sarasota Pain Associates, et al.
Two former employees of a Sarasota pain management clinic filed a whistleblower complaint that alleged the clinic had systematically billed Medicare for services not rendered, and had sought reimbursement for other procedures as though they were performed by a physician, when in fact they had been performed by a registered nurse. The whistleblowers further alleged that the defendant had upcoded bills for reimbursement of evaluation and management services by several levels of care. After investigating these claims, the USAO/MDFL intervened in the case and actively litigated it against the clinic and its proprietor, Dr. Steven Chun. The case was settled at mediation for $750,000, which amounted to a recovery of roughly double the Government’s claimed single damages.
United States ex rel. Lovell v. Sharma
This case was filed by a former office manager of a local vascular surgeon, Dr. Ravi Sharma. The whistleblower alleged that she had been instructed to perform injection procedures on patients without a supervising doctor present, even though she had no medical training. She also alleged that the defendant billed Medicare for reimbursement of these injections as though he had performed them. In addition, she claimed that the defendant had submitted false claims for services rendered at his weight loss center. The whistleblower stated that she had exclusively seen patients at the center, and that the defendant had never gone into the facility, but that he nonetheless had billed her sessions with patients as office visits with a physician. The USAO/MDFL investigated these claims and corroborated them, ultimately negotiating a settlement that paid the government $400,000 (double the amount of damages suffered as a result of the conduct in question).
Middle District of Florida Asset Forfeiture Case Highlights
United States v. Assets Described in Attachment A (262 gold bars, etc.)
As detailed in the civil forfeiture complaint, a Spanish citizen based in Spain and Panama, operated Evolution Market Group (EMG), which did business as FinanzasForex. FinanzasForex was an on-line multi-layer marketing scheme that purported to provide an investment opportunity in the Foreign Exchange (Forex) market. However, only a small portion of the money received from investors was invested in Forex, and those investments resulted in losses. Instead, investor money was used to pay back prior investors, and to support the Orlando-based associates’ lifestyles and to pay their business expenses, including the use of $1 million in investor funds to purchase luxury vehicles and more than $50 million to pay off properties they owned. Due to the quick work of law enforcement, more than $180 million in assets purchased or funded with investor funds were seized, including gold bars valued at over $100 million, luxury vehicles, and bank accounts.
The gold bars were purchased with investor funds that had previously been held in a bank account controlled by a business in Oregon that specialized in brokering precious metal purchases. The Oregon company, for a large fee, had allowed its accounts to be used to accept FinanzasForex investor payments and transfer money back to investors. Because of the voluminous number of incoming deposits by foreign investors into its accounts, banks ceased doing business with the company. As a result, in order to get the funds back to Cardona, the Oregon company purchased 294 gold bars with the funds in its accounts. In order to make some additional money from the transaction, the company then attempted to obtain a 20% fee to deliver the gold bars to Cardona. When the United States liquidated the gold bars, they were sold on the open market.
The United States has hired a claims administrator to help distribute the forfeited funds back to the victims of the fraud. It is believed that there are more than 15,000 victims located in over 50 countries.
United States v. David Smith
In fiscal year 2014, we completed the criminal forfeiture of $1,662,715 from David Smith. Smith operated four successive “investment clubs” in which he claimed investors’ funds would be used to engage in foreign currency trading. In 2005, Smith established Overseas Locket International Corporation in Panama and OLINT Corporation in Jamaica. In April 2006, Jamaican authorities issued a cease and desist order which barred Smith from obtaining new clients. Within weeks, Smith relocated and established two new companies, OLINT TCI and TCI FX Traders. He told investors that he traded on two foreign currency platforms, Oanda in Canada and New York, and I-Trade in Lake Mary, Florida. Evidence established that Smith had a little more than $100,000 in an account at Oanda. Smith deposited over $128 million into 4 trading accounts at I-Trade, but he engaged in little to no trading with those accounts. Most of the money was laundered through accounts opened by co-conspirators at other financial institutions, then wired back to Smith as he needed it to pay investors. Smith pleaded guilty to a wire fraud conspiracy and multiple money laundering violations. In prior years, we had criminally forfeited $3,695,905 from another trading account and obtained a $50,000 payment towards the $128 million forfeiture money judgment.
United States v. Gene Tyrell
According to court documents, Gene Tyrell and his co-defendants participated in an $18.4 million fraud scheme from late 1996 through August 2000, utilizing a succession of unregistered securities offerings to defraud hundreds of investors. The defendants were convicted and sentenced in 2005 for their roles in the fraud scheme. In FY 2013, we completed the forfeiture of Tyrell’s interest in Woodbridge International, Inc., and Woodbridge International Management, LLC, companies created by Tyrell and used by him and his co-defendants in unregistered fraudulent securities offerings that post-dated the fraud charged in the original indictment. More than a decade after his indictment, we pursued the forfeiture of these companies as substitute assets because, by virtue of their ownership, the companies were entitled to approximately $1 million in proceeds from the sale of that stock. When he was sentenced on September 22, 2005, Tyrell was ordered to serve 136 months’ imprisonment, and among other financial penalties, a $2.5 million forfeiture money judgment was included in his Judgment. By his own admission, Tyrell had small bank balances, minimal liquid assets, and significant debt; consequently, there did not appear to be any assets to forfeit.
However, after Tyrell’s sentencing the United States was contacted by an individual interested in purchasing shares of stock in iCrossing, Inc. held by the Woodbridge entities, indicating that Gene A. Tyrell was the President of Woodbridge. Following up on that tip, the United States learned that a law firm in Arizona was handling the sale of iCrossing to Hearst. After contacting the law firm, the United States confirmed that, according to the Common Stock Ledger, Tyrell, through the Woodbridge entities, had purchased three stock certificates (for a total of nearly 118,000 shares) for more than $350,000, and that those shares were worth approximately $1 million when acquired by Hearst. Therefore, the United States forfeited the Woodbridge entities in order to take title to the stock.
United States v. Paul Robert Gunter, et al.
On March 10, 2009, a federal grand jury returned a superseding indictment charging Paul Robert Gunter, Zibiah Joy Gunter, Lawrence S. Hartman, Richard Sinclair Pope, Simon Andrew Odoni, Roger Lee Shoss, and Nicolette Loisel with conspiracy to commit mail fraud and wire fraud, and conspiracy to commit wire fraud and money laundering, and other substantive counts of money laundering, mail fraud, and wire fraud. In the superseding indictment, the government provided the conspirators with notice of our intent to seek forfeiture. According to the evidence and testimony presented at trial, from at least as early as July 2004 through at least March 13, 2008, Gunter, Odoni, Pope, and others engaged in a sophisticated investment fraud and money laundering scheme in which worthless stock in hijacked dormant, publicly-traded companies in the United States was sold to victim-investors, primarily in the United Kingdom. The scheme used boiler room telemarketers, mostly in Spain, who employed high pressure and misleading sales techniques. The victim-investors wired more than $127 million to Gunter's bank accounts in the Middle District of Florida. The conspirators bilked victim-investors out of another $10 million via a FOREX currency trading scheme, which also utilized the boiler rooms in Spain. On April 19, 2013, Paul Gunter and Simon Odoni were found guilty by a federal jury following a 19-day trial. Specifically, the jury returned verdicts of guilty on three counts of conspiracy to commit mail fraud, wire fraud, and money laundering, as well as 19 counts of mail and wire fraud, and 14 counts of money laundering. Prior to trial, on March 10, 2011, Richard Pope pleaded guilty to one count of conspiracy to commit wire and mail fraud. Pope cooperated with the government and testified at trial.
In addition to sentencing the defendants to serve terms of imprisonment, the Court ordered all three individuals to forfeit their interests in real property and bank accounts in the U.S. and abroad, an airplane, vessels, and vehicles purchased with proceeds of the fraud scheme and imposed forfeiture money judgments against them. As part of the investigation, federal agents seized nearly $5 million in domestic bank accounts. At the sentencing hearing, the court agreed with the government that entry of an order of restitution would be impracticable because considerable additional resources were needed to notify potential victims and determine the amount of their losses; therefore, the court agreed that the United States should be permitted to use forfeited funds to compensate victims through the remission process. The United States has retained a claims administrator to assist in this process. The last defendant to be sentenced was Lawrence S. Hartman, an American lawyer who was residing in Costa Rica, who conspired with Gunter, Odoni, Pope and others. In May 2013, Hartman was arrested on an immigration violation by Nicaraguan authorities. After being expelled and deported from Nicaragua, Hartman entered a guilty plea and was sentenced to 10 years in prison. Pursuant to his plea agreement, he has consented to the forfeiture of significant assets and has agreed to provide assistance in locating and liquidating those assets. Because most of his assets are in foreign countries, the forfeiture process is likely to be lengthy. Funds obtained from the forfeiture of his assets will also be distributed by the claims administrator.
In a related trial that took place in May 2012, American lawyers Roger Lee Shoss and Nicolette Loisel were convicted of one count of conspiracy to commit wire fraud in connection with their participation in the corporate identity theft aspect of the scheme. A $800,000 forfeiture money judgment was entered against both defendants and Shoss’s home is the subject of a Final Order of Forfeiture.U.S. Attorney’s Office Collects More Than $13 Million in Fiscal Year 2014Read the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Tara Tighe, Public Affairs SpecialistWHEELING, WEST VIRGINIA – Through a combination of civil and criminal actions, the United States Attorney’s Office for the Northern District of West Virginia collected more than $13 million during Fiscal Year 2014, United States Attorney William J. Ihlenfeld, II, announced today.
The office collected $5,378,951.98 from civil actions, $957,890.18 from criminal actions, and $1,521,711.40 from civil and criminal asset forfeitures for a total of $13,095,953.31.
“My office has many talented and hardworking people dedicated to recovering funds for victims of crimes and for the federal treasury,” said U.S. Attorney Ihlenfeld. “We’ll remain aggressive in 2015 to prosecute and hold accountable all those who seek to profit from illegal activities.”
Large criminal collections from 2014 include:
• $333,787.32 paid by Joseph Yurigan, D.C. of New Alexandria, PA as a result of his conviction for submitting fraudulent claims to Medicare and Medicaid. Yurigan was convicted in 2013, and paid a total of $836,265.95 in Fiscal Years 2013 and 2014. In addition to restitution paid to the Centers for Medicare and Medicaid, individual victims included Ohio Bureau of Workers’ Compensation, the WV Offices of the Insurance Commissioner, and Brickstreet Insurance.
Large civil collections for FY 2014 include:
• $2,000,000.00 paid by Judy’s Drug Store as a result of a civil settlement with Judy’s Drug Store, Inc., Darin Judy, Emily Judy, Kimberly Arbaugh and Casey Watts. The defendants paid to settle accusations that Judy’s Drug Store repeatedly filled prescriptions for controlled substances, such as oxycodone and hydromorphone, not written for legitimate medical purposes. The pharmacists filled these prescriptions outside the scope of professional practice. The federal investigation into Judy’s Drug Store arose after the U.S. Attorney’s Office prosecuted and obtained a conviction against Hardy County, West Virginia physician, Rajan Masih, in 2011. Dr. Masih was convicted of distributing controlled substances for other than legitimate medical purposes and outside the scope of professional practice. Dr. Masih wrote many of the prescriptions for controlled substances improperly filled by Judy’s Drug Store.
• $1,600,000.00 paid by Chesapeake Appalachia for civil violations of the United States Clean Water Act and West Virginia’s Water Pollution Control Act and West Virginia’s requirements governing water quality standards, by discharging pollutants, including dredged or fill material, and/or controlling and directing the discharge of pollutants, including dredged or fill material, into waters of the United States and/or the State, without authorization, at various locations in Boone, Kanawha, Lewis, Marshall, Mingo, Preston, Upshur and Wetzel counties of West Virginia.
• $1,000,000.00 civil penalty paid by Devender Batra, M.D. and Belmont Cardiology, Inc., after causing East Ohio Regional Hospital and Ohio Valley Medical Center to submit fraudulent claims to Medicare from January 2009 to August of 2010, for prohibited referrals for various health services in violation of the Federal False Claims Act.
• $660,000.00 paid by the Ohio Valley Health Education & Services Corporation (OVHS&E), Ohio Valley Medical Center (OVMC), and East Ohio Regional Hospital (EORH) in Fiscal Year 2014 on a case that was settled in FY 2012. Since settlement, these entities have paid over $2.0 million and still owe $1.7 million dollars to the federal government for violations of the Stark Act and improper compensation arrangements with physicians.
Large criminal asset forfeitures for FY 2014 include:
• $192,325.00 in forfeited assets from Anita Ambler, a former bookkeeper at the Mountaineer Racetrack, who was convicted by a federal jury trial in April of 2013 on eleven counts of “Mail Fraud”, ten counts of “Wire Fraud”, and four counts of “Transacting in Criminal Proceeds.” In addition to the forfeiture, Ambler was required to pay a money judgment of $1,305,090.15.
• $76,625.00 in assets seized from Kimberly Mull, who entered a guilty plea to the offense of “Conspiracy to Distribute Schedule I and Schedule II Controlled Substances,” which included the sale and distribution of heroin, cocaine, and oxycodone pills. The source state for most of the heroin referenced in the Mull indictment was Pennsylvania, while the pain pills came from Pennsylvania, Ohio, and West Virginia. As part of her sentence, Mull was ordered to pay $11,000 to the Ohio Valley Drug Task Force as reimbursement for funds that were paid to her during the controlled purchases of narcotics. She must also pay a money judgment of $50,000 to the United States of America.
• $75,000.00 in forfeited assets seized from David Tamm, a former vice-president at Fairmont State University, who was convicted of stealing funds from the school through the use of state-issued purchasing cards as well as funds from federal education grants. In addition to the forfeiture, the Court also imposed a money judgment in the amount of $639,174.33.
U.S. Attorneys’ Offices throughout the country are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid directly to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
Attorney General Eric Holder announced today that the Justice Department collected $24.7 billion though civil and criminal actions in the fiscal year ending September 30, 2014.
U.S. Attorney's Office Indicts 14 for Acadiana Methamphetamine Distribution ConspiracyRead the Press Release
LAFAYETTE, La. –United States Attorney Stephanie A. Finley announced today that a federal grand jury indicted 14 people in a methamphetamine distribution conspiracy in Lafayette, New Iberia and the surrounding areas.
Those named in the 20-count indictment are:
Gary Hunt, 58, of Spendora, Texas; Elliot Jolet, 34, of New Iberia, La.; Anita Desormeaux, 42, of New Iberia; Ko Chanhkongshinh, 37, of Youngsville, La.; Jenee Lynn Hargrave, 29, of Scott, La.; David Lowery, 32, of New Iberia; Everette Dupuis, 39, of New Iberia; Michael Guidry, 44, of Erath, La.; Tyrone Howard, 42, of Youngsville; Kevin Jefferson, 31, of New Iberia; Nared Souphannavong, 29, of New Iberia; Brandi Boullion, 27, of New Iberia; Dewey Migues, 35, of New Iberia; and
Corey Freyou, 37, of New Iberia.According to the indictment, the defendants conspired to distribute and possess with intent to distribute methamphetamine in New Iberia, Lafayette, and the surrounding areas. Jolet and Desormeaux purchased methamphetamine from Hunt in Texas and other sources and then transported it to the South Central Louisiana area. It was then sold or distributed in reduced quantities among the other conspirators. The investigation also resulted in the seizure of crystal methamphetamine, more than $5,400, a vehicle, and several firearms. Of the defendants, 12 have been arrested. Dupuis and Hargrave still remain at large. If you have information on the location of the defendants who are still at large, please call the DEA at 337-706-3940 or the U.S. Marshal’s Service at 337-262-6666.
The defendants face various possible penalties depending on the drug quantity involved and their drug histories. Some defendants face up to 20 years in prison, and some face up to life in prison, and up to 10 years of supervised release, for the conspiracy to possess and distribute methamphetamine count. The defendants also face up to 40 years in prison, and some up to life, and up to eight years of supervised release, for the distribution of methamphetamine count; they face up to eight years in prison and up to three years of supervised release for the use of a communication facility in causing or facilitating a drug trafficking crime count; and defendant Migues faces up to 10 years in prison and up to three years of supervised release for the possession of firearms and ammunition by a convicted felon count. They also face a fine of up to $20 million and forfeiture of the money and property seized in the case.
The defendants were arrested as part of an Organized Crime Drug Enforcement Task Force (OCDETF) Operation. The DEA, Iberia Parish Sheriff’s Office, Lafayette Parish Sheriff’s Office, Vermilion Parish Sheriff’s Office, and the Lafayette Police Department participated in this OCDETF investigation. The U.S. Marshal’s Service, U.S. Department of Homeland Security and the Lafayette City Marshal’s Office assisted in the arrests. The OCDETF program is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
Assistant U.S. Attorneys Myers P. Namie, Daniel J. McCoy and Robert F. Moore are prosecuting the case.
An indictment is merely an accusation and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
U.S. Attorney's Office in Kansas Collects $11.4 Million in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2014Read the Press Release
KANSAS CITY, KAN. - U.S. Attorney Barry Grissom announced today that the District of Kansas collected more than$11.4 million in criminal and civil actions in Fiscal Year 2014. Of this amount, $5 million was collected in criminal actions and $6.4 million was collected in civil actions
“We work very hard to be good stewards of the taxpayers’ money,” said U.S. Attorney Barry Grissom. “Our collections in Fiscal Year 2014 almost equaled our office’s total direct budget of $11.9 million.”
On the national level, Attorney General Eric Holder announced today that the Justice Department collected $24.7 billionin civil and criminal actions in the fiscal year ending Sept. 30, 2014.The more than $24 billion in collections in FY 2014 represents nearly eight and a half times the appropriated $2.91 billion budget for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period.“Every day, the Justice Department’s federal prosecutors and trial attorneys work hard to protect our citizens, to safeguard precious taxpayer resources, and to provide a valuable return on investment to the American people,” said Attorney General Holder. “Their diligent efforts are enabling us to achieve justice and recoup losses in virtually every sector of the U.S. economy. And this result shows the fruits of the Justice Department’s tireless work in enforcing federal laws; in protecting the American people from violent crime, national security threats, discrimination, exploitation, and abuse; and in holding financial institutions accountable for their roles in causing the 2008 financial crisis.”
Grissom said an investigation of a cancer clinic in Kansas this year was a good example of how his office recovers money for taxpayers. In April 2014, the Hope Cancer Institute, and Dr. Raj Sadasivan, agreed to pay $2.9 million to resolve allegations that they violated the False Claims Act by submitting claims to Medicare, Medicaid and the Federal Health Benefits Program for drugs and services that were not provided to the beneficiaries.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.U.S. Attorney's Office Collects $9,437,113 in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2014Read the Press Release
St. Louis, MO – Assistant United States Attorney Nicholas Llewellyn, Chief of the Civil Division, announced today that the Eastern District of Missouri collected $9,437,113 in criminal and civil actions in Fiscal Year 2014. Of this amount, $7,293,407 was collected in criminal actions and $2,143,706 was collected in civil actions
Additionally, the Eastern District of Missouri worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional$1,877,106 in cases pursued jointly with these offices. Of this amount, $5,457 was collected in criminal actions and $1,871,649 was collected in civil actions.
Attorney General Eric Holder announced on November 19, 2014 that the Justice Department collected $24.7 billionin civil and criminal actions in the fiscal year ending September 30, 2014. The more than $24 billion in collections in FY 2014 represents nearly eight and a half times the appropriated $2.91 billion budget for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period."Every day, the Justice Department’s federal prosecutors and trial attorneys work hard to protect our citizens, to safeguard precious taxpayer resources and to provide a valuable return on investment to the American people," said Attorney General Holder. "Their diligent efforts are enabling us to achieve justice and recoup losses in virtually every sector of the U.S. economy. And this result shows the fruits of the Justice Department’s tireless work in enforcing federal laws; in protecting the American people from violent crime, national security threats, discrimination, exploitation and abuse; and in holding financial institutions accountable for their roles in causing the 2008 financial crisis."
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
Additionally, the U.S. Attorney's office in the Eastern District of Missouri, working with partner agencies and divisions, collected $4,393,864 in asset forfeiture actions in FY 2014. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
U.S. Attorney Collects more than $44 Million in Civil and Criminal PenaltiesRead the Press Release
ALBANY, NEW YORK – Albany, NY - U.S. Attorney Richard S. Hartunian announced today that the U.S. Attorney’s Office for the Northern District of New York collected more than $44 million in civil and criminal penalties this past fiscal year. Of this amount, $17,655,763 was collected from criminal prosecutions and $2,319,703 was collected in civil cases in Fiscal Year 20141. Additionally, the U.S. Attorney’s Office, working in conjunction with other U.S. Attorney’s Offices and agencies in the Department of Justice, collected an additional $2,050,000 in civil cases.
On top of this amount, the U.S. Attorney’s Office worked with partner agencies to make substantial recoveries of money and forfeited assets. These typically represent proceeds of criminal conduct which can be forfeited under federal law. $22,034,435 was collected and deposited into the Department of Justice Assets Forfeiture Fund. These moneys are used to make restitution to crime victims and for a variety of other law enforcement purposes.
Nationally, Attorney General Eric Holder announced this morning that the Justice Department collected $24.7 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2014. The more than $24 billion in collections in FY 2014 represents nearly eight and a half times the appropriated $2.91 billion budget for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period.
“Every day, the Justice Department’s federal prosecutors and trial attorneys work hard to protect our citizens, to safeguard precious taxpayer resources, and to provide a valuable return on investment to the American people,” said Attorney General Holder. “Their diligent efforts are enabling us to achieve justice and recoup losses in virtually every sector of the U.S. economy. And this result shows the fruits of the Justice Department’s tireless work in enforcing federal laws; in protecting the American people from violent crime, national security threats, discrimination, exploitation, and abuse; and in holding financial institutions accountable for their roles in causing the 2008 financial crisis.”
“This year’s collections far exceed last year’s amounts for our office,” said U.S. Attorney Richard S. Hartunian. “We have doubled our criminal, civil and administrative forfeitures over the past year. Additionally, approximately $15 million more was collected this year in criminal cases. These are ill-gotten funds and profits from criminal activities. We take great satisfaction in knowing we’ve taken them back from the hands of lawbreakers.”
Some notable cases in which funds were recovered by the U.S. Attorney’s Office during fiscal year 2014 include the following:
Forfeited bank accounts in illegal gambling business:
Forfeiture of nearly $10 million was ordered for the government in an illegal gambling business, run by multiple co-defendants2, which used internet websites that allowed bettors to place thousands of wagers from the Capital District, Florida, Indiana, California, Texas, and Nevada. The wager money was transferred to offshore accounts in Panama, Andorra, and the Cayman Islands, all of which were forfeited.
Forfeited property in bath salts case:
In February of this year, an RV and cash, together worth nearly $300,000, were among assets forfeited in the U.S. v John Tebbetts case which focused on the illegal distribution of bath salts.
Small Business Administration loan recovery:
A civil complaint was filed against Clifton Park LLC, and 3 individuals (Chetan Patel, Magan Patel, and Dalpat Patel) who were guarantors on an SBA loan for $ 1,367,000. The purpose of the loan was the purchase/rehab of a Comfort Inn in Clifton Park, NY. The complaint was settled for a total amount of $ 609,208.00 spread out over 8 months. To date, $442,104.00 has been collected.
Forfeited and returned artifacts:
Two Italian artifacts, the Attic Red-Figure Skyphos, valued at $35,000, and the Apulian Red-Figure Bell Krater, valued at $20,000, were subject to forfeiture pursuant to federal law which pertains to stolen, smuggled, and clandestinely imported or introduced merchandise. The two artifacts smuggled into the U.S. were forfeited and will be returned to the Italian Ministry of Cultural Heritage and Tourism.
Marketing of prescription drugs for unapproved uses:
The U.S. Attorney’s Office for the Northern District of New York, in conjunction with its colleagues in the Eastern District of Pennsylvania and at the Department of Justice, resolved criminal and civil investigations arising from Endo Pharmaceuticals’ marketing of the prescription drug Lidoderm for uses not approved as safe and effective by the Food and Drug Administration, including payment by Endo of $192.7 million. In a deferred prosecution agreement to resolve the criminal Information filed in the Northern District of New York, Endo admitted that it intended that Lidoderm be used for unapproved indications and that it promoted Lidoderm to health care providers for those unapproved indications, agreed to pay a total of $20.8 million in monetary penalties and forfeiture, and agreed to implement enhanced compliance measures. Endo also agreed to civil false claims settlements with the United States and the states totaling $171.9 million. This settlement emphasized that public health is protected by compliance with FDA’s drug approval process and requirement that product labeling be based on performance, rather than profitability.
Restitution secured through pension benefit:
On May 16, 2001, Paul Ryan was sentenced by U.S. District Judge Lawrence E. Kahn to pay restitution in the amount of $2,881,662.90 to Albany Savings Bank in connection with his securities fraud conviction covering the period of 1993-1998. During the course of the investigation it was discovered that the defendant was entitled to a 401(k) pension benefit distribution from Integra Networks, Inc. in the amount of $65,000. A Writ of Execution was issued on Integra Networks, Inc. on October 29, 2013. As a result, a check in the amount of $54,473.34 was issued to the United States District Court Clerk on November 5, 2013, which was applied to the court-ordered restitution. Efforts to enforce the remaining restitution continue.
Violations of the Recovery Act’s “Buy American” requirement:
The U.S. Attorney’s Office recently resolved, for $500,000, a case involving allegations that Jett Industries, a Colliersville-based general contractor, had falsely certified compliance with the American Recovery and Reinvestment Act’s “Buy American” provision. Jett purchased key project components in France, and then created and submitted paperwork in an effort to mislead the government into believing that the cheaper, French-made products were produced in the United States.
City acknowledges that it mismanaged federal funds:
Another recent case that involved a seven-figure monetary recovery, an admission of wrongdoing, and other forward-looking (non-monetary) components was a settlement reached last month with the City of New York. This settlement resolved allegations, brought to our attention by a whistleblower, that the New York City Human Resources Administration (HRA) violated the False Claims Act by causing various managed care organizations to provide health care coverage to individuals that HRA knew, or should have known, were ineligible to receive benefits through New York State’s Medicaid program. As part of the settlement, HRA accepted responsibility for failing to timely review and close Medicaid cases after being provided information that the beneficiaries moved outside of New York City, and it admitted that its inaction caused one or more MCOs to receive payments to insure individuals who were ineligible for benefits through New York State’s Medicaid program. HRA also agreed as part of the settlement to establish a process to investigate and close Medicaid cases whenever it learns that a beneficiary no longer resides within its coverage area.
Unlawful physician compensation arrangements:
A settlement was reached in August 2014 with the New York Heart Center. In that case, a group of upstate New York cardiologists agreed to pay $1.34 million to resolve allegations that its physicians’ compensation was determined using a formula that took into account the volume or value of each physician’s ordering of designated health services from other physicians in the practice, in violation of the Stark Law.
Attached is a chart showing how the Northern District of New York’s FY2014 $44,064,710 collections were distributed to the victims, government agencies serving the public and state and local law enforcement agencies.
All U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
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1 The federal fiscal year runs from October 1st to September 30th.
2 U.S. v. Any and All Funds on Deposit in Bank of America, N.A. in the name of Jay Goldman, et al case 1:13-CV-765, U.S. v. $65,000.00 in U.S. Currency case 1:13-CV-776, and U.S. v. Michelle Lasso case 1:13-CR-413
Two People Charged in A Scheme to Defraud Their Former Employers of Millions of DollarsRead the Press Release
NEWARK, N.J. – Two Bergen County, New Jersey, residents were charged today in a scheme to defraud two international companies out $3 million by fraudulently billing them for services that were never completed, U.S. Attorney Paul J. Fishman announced.
Barbara Brown, 64, and Philip Charles de Gruchy, 61, both of Park Ridge, New Jersey, surrendered to federal agents this morning and were charged by complaint with one count of conspiracy to commit mail fraud. The defendants made their initial appearances this afternoon before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court. Each was released on $250,000 unsecured bond.
According to the complaint filed in this case:
From August 2007 through April 2, 2010, Brown was employed by “Company A,” a toy and juvenile products retailer headquartered in Wayne, New Jersey, first as director of customer relationship management and then as director of global customer relations management. As part of her position, she had authority to hire and pay contractors. Brown caused Company A to enter into a business relationship with CEM, a company that Brown and de Gruchy secretly controlled. From Nov. 5, 2007, through March 4, 2010, CEM submitted more than 60 invoices to Company A for alleged marketing consulting work. The purported work was either copied from other vendors’ work, was related to other businesses or did not correspond to items on CEM’s invoices.
The net amount that CEM billed and collected from Company A was $2.855 million. Although each of the checks that Company A issued to CEM was mailed to various Canadian addresses, the checks were ultimately deposited at bank branches located in White Plains, New York. Checks were written out of the CEM account payable directly to either de Gruchy or Brown or to Silk Farm and Ontario LLC, companies affiliated with de Gruchy. Monies obtained from the scheme were used for personal purposes, including home renovations and mortgage payments on the Park Ridge residence that Brown and de Gruchy shared, and credit card bills.
From July 2010 through Nov. 11, 2011, de Gruchy was employed as the director of global relations management for “Company B,” an international manufacturer and retailer of luxury travel suitcases and accessories, headquartered in South Plainfield, New Jersey. As part of his job, de Gruchy was responsible for a data migration project designed to assist Company B with identifying customer purchasing patterns. De Gruchy obtained verbal approval from Company B to hire Brown to assist on the migration project. At no time did de Gruchy reveal his personal or business relationship with Brown.
From Nov. 4, 2010, through Sept. 22, 2011, Company B mailed $216,835 in checks to a Canadian address purporting to belong to Brown or BI Insights, an alleged Canadian company engaged in marketing consulting services and controlled by Brown. De Gruchy approved all of the invoices submitted by Brown and BI Insights. An examination of documents that purported to support the invoices to Company B revealed that no meaningful work product was furnished. Additional invoices submitted by Brown to Company B, totaling $124,150, were not paid after the scheme to defraud was uncovered.
The counts of conspiracy to commit mail fraud with which the defendants are charged carry a maximum penalty of 20 years in prison.
U.S. Attorney Fishman praised special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Leslie Faye Schwartz of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
The charges and allegations contained in the complaint are merely accusations and the defendants are considered innocent unless and until proven guilty.
- Two Convicted in Separate Cases Involving the Robbery or Attempted Robbery of Armored Cars
Three Men Sentenced for Federal Drug ViolationsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that CLEMMON BRIDGES, age 56, of Houston, Texas, and DARIN FIELDS, age 32, of Bogalusa, Louisiana, were sentenced today after having previously pled guilty to conspiracy to distribute and conspiracy to possess with intent to distribute cocaine hydrochloride and cocaine base. In addition, WALTER VAUGHN, age 49, of Amite, Louisiana, was sentenced today after having previously pled guilty to conspiracy to distribute and conspiracy to possess with intent to distribute cocaine hydrochloride and cocaine base and possession with the intent to distribute cocaine base.
U.S. District Judge Jay C. Zainey sentenced BRIDGES to a 30-month term of imprisonment and 3 years of supervised release, FIELDS to a 151-month term of imprisonment and 3 years of supervised release, and VAUGHN to a 37-month term of imprisonment and 3 years of supervised release.
On February 6, 2014, BRIDGES, FIELDS, and VAUGHN were three of 15 defendants charged in an 8-count indictment. According to court documents, the indictment was based on court-authorized wiretaps that recorded conversations between STEVEN HAYNES and the defendants, concerning the distribution of powder cocaine that was later converted to crack and sold in Washington and Tangipahoa Parishes.
U.S. Attorney Polite praised the work of the Drug Enforcement Administration, the Louisiana State Police, and Washington Parish Sherriff’s Office in investigating this matter. Assistant United States Attorney Michael E. McMahon is in charge of the prosecution.
Three Charged in Eagle Ford Shale Oil Theft CaseRead the Press Release
In Laredo, TX, today, federal authorities arrested 37-year-old Victor Manuel Guerra, Jr., in connection with an alleged theft of Eagle Ford Shale oil announced United States Attorney Robert Pitman; Christopher Combs, Federal Bureau of Investigation (FBI) Special Agent in Charge of the San Antonio Division; and William Cotter, Internal Revenue Service (IRS) Criminal Investigation Acting Special Agent in Charge.
Last month, a federal grand jury in Del Rio, TX, indicted the Laredo resident and two others--49-year-old Juan Martin Bernal of Eagle Pass, TX, and 25-year-old Carlos Samuel Pena of Del Rio--on charges of theft of oil from interstate shipment, wire fraud, and money laundering. Guerra is charged with two counts of theft from interstate shipment, sixty-nine counts of wire fraud and fifty-eight counts of money laundering. Bernal and Pena, who were arrested earlier this month, are both charged with one count of theft from interstate shipment and sixty-nine counts of wire fraud.
The indictment alleges that between January 2011 and August 2014, the defendants devised a scheme to steal oil from energy companies operating in the South Texas’ Eagle Ford Shale, including a company Bernal worked for, Newfield Exploration Company, and Anadarko Petroleum Corporation, a company that employed Pena. Guerra, who owned Las Lomas Vacuum Services and AVG Vacuum Services, provided wastewater removal services from oil field well sites. According to the indictment, Guerra’s trucks had no authority from the Texas Railroad Commission to receive or transport oil. Further, the wastewater trucks were not designed to safely carry and transport oil.
The indictment further alleges that although Guerra’s company had no contract or permission to be on Newfield or Andranko property, Pena and Bernal covertly allowed the wastewater trucks onto the victims’ properties. Instead of removing wastewater from the oil field storage tanks, the drivers, in collusion with Pena and Bernal, would take oil. The pilfered oil was then transported to Guerra’s property where Guerra would sell the stolen product for financial gain to third-party buyers who would pay for the oil via wire transfer.
The indictment also includes a notice of criminal forfeiture wherein the Government is seeking proceeds derived from the fraudulent scheme as well as funds totaling more than $1.5 million, which represents the amount of proceeds obtained, directly or indirectly, as a result of the criminal scheme.
“The vast expanse of the Eagle Ford Shale and the high level of oil and gas drilling and production in the area provide many opportunities for those inclined to cheat and steal. This indictment gives notice that this office will work closely with federal and state law enforcement agencies to vigorously investigate and prosecute those who perpetrate unlawful schemes to exploit the financial opportunities presented in the oil field,” stated United States Attorney Robert Pitman.
“While the theft the defendantsallegedly engaged inresulted in significant losses for two publicly traded companies, this type of criminal activity often harms the American public as well by hindering the creation of new jobs, raising prices for consumers, and depriving communities of tax revenue needed to fund infrastructure and other vital projects,” said Christopher Combs, Special Agent in Charge of the San Antonio Division of the Federal Bureau of Investigation. “The FBI will continue to work side-by-side with our law enforcement partners to investigate and prosecute those who put their greed above the law.”
IRS Criminal Investigation Acting Special Agent in Charge William Cotter said: “No matter how slick a criminal thinks he is, there’s always a trail to follow. In this case, IRS CI Special Agents employed their financial investigative expertise to separate the oil from the water, leading them to Guerra Jr., Bernal, and Pena.”
Upon conviction, the theft and money laundering counts are punishable by imprisonment up to ten years and a fine of $250,000 and the wire fraud counts are punishable by imprisonment up to 20 years and a fine of $250,000.
This indictment resulted from an investigation conducted by agents with the Federal Bureau of Investigation (FBI), Internal Revenue Service (IRS) Criminal Investigation, Texas Attorney General’s Special Investigations Unit, Bexar County District Attorney’s Office, Texas Department of Public Safety, Texas Rangers, Dimmit County Sheriff’s Office, and the Texas Railroad Commission. Assistant United States Attorneys Bryan Nathan Reeves and Timothy Adam Duree are prosecuting this case on behalf of the Government.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
Third Defendant Pleads Guilty to Second Degree Murder Charge in Case Arising from Kidnapping and Murder of Navajo WomanRead the Press Release
Justin Benally to Serve 22-Year Prison Sentence for Aiding and Abetting Murder
ALBUQUERQUE – Justin Benally, 26, of Farmington, N.M., pled guilty today to a second degree murder charge arising out of the kidnapping and brutal murder of a 28-year old Navajo woman. Two co-defendants, Mariah Benally, 22, and LaSheena Jacquez, 27, both of Kirtland, N.M., entered similar guilty pleas last month.
Justin Benally, Mariah Benally and Jacquez are three of five individuals, all of whom are enrolled members of the Navajo Nation, who were indicted in Jan. 2014, on criminal charges arising from the kidnapping and murder of the victim on Oct. 23, 2013. The five defendants previously had been arrested in Dec. 2013, on a criminal complaint that was filed after law enforcement authorities received information that the victim, who had been reported as missing in Nov. 2013, had been murdered. The victim’s remains were recovered on Dec. 9, 2013.
In addition to charging Justin Benally, Mariah Benally and Jacquez, the four-count indictment also charged Patrick Benally, 26, of Kirtland, and Scott Thompson, 28, of Farmington, with first degree murder, kidnapping, and conspiracy to kidnap. It also charged Justin Benally, Mariah Benally, Jacquez and Thompson with harboring Patrick Benally to prevent his arrest on a warrant for an unrelated crime. The indictment alleges that the crimes charged occurred on the Navajo Indian Reservation within San Juan County, N.M.
This morning, Justin Benally pled guilty to a felony information charging him with second degree murder. In entering his guilty plea, Justin Benally admitted aiding and abetting the victim’s murder by participating in her kidnapping and taking actions that ultimately resulted in the victim’s death. Under the terms of his plea agreement, Justin Benally will be sentenced to a 22-year term of imprisonment. He remains in custody pending his sentencing hearing, which has yet to be scheduled.
On Oct. 29, 2014, Mariah Benally also pled guilty to a second degree murder charge. Mariah Benally admitted causing the victim’s death by throwing rocks at her, and aiding and abetting others who also caused the victim’s death. She also admitted throwing rocks at the victim after the victim had been repeatedly stabbed by three of her co-defendants and thrown off a cliff by one of the co-defendants. Mariah Benally also aided her co-defendants in restraining the victim and transporting her to the murder site, and destroying evidence of their crimes.
Jacquez pled guilty to a second degree murder charge on Oct. 16, 2014, and admitted causing the victim’s death on Oct. 23, 2013, by repeatedly stabbing the victim with a knife, throwing rocks at the victim, and aiding and abetting others who also caused the victim’s death. Jacquez also admitted that she destroyed evidence and aided and abetted others in the destruction of evidence in an effort to evade prosecution.
Mariah Benally and Jacquez have been in federal custody since they were arrested and remain detained pending their sentencing hearings, which have yet to be scheduled. Each faces a maximum statutory penalty of life imprisonment.
The two remaining co-defendants have entered not guilty pleas to the indictment and are detained pending trial, which has not yet been scheduled. If convicted of the charges in the indictment, each faces a maximum statutory penalty of life imprisonment. Charges in indictments are merely accusations and defendants are presumed innocent unless convicted in a court of law.
This case was investigated by the Farmington office of the FBI, the Farmington Police Department and the San Juan County Sheriff’s Office. Assistant U.S. Attorneys Niki Tapia-Brito and David Adams are prosecuting the case.
The United States Attorney’s Office for the Eastern District of Washington Collects over $2,350,216.67 in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2014Read the Press Release
SPOKANE – Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced today that his office collected $2,350,216.67 in civil and criminal actions in the Fiscal Year ending September 30, 2014. Of this amount, Mr. Ormsby’s office collected $1,546,303.16 in criminal cases and $803,913.51 in civil actions.
United States Attorney General Eric Holder announced on November 19, 2014 that the Justice Department collected $24.7 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2014. The more than $24 billion in collections in FY 2014 represents nearly eight and a half times the appropriated $2.91 billion budget for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period.
“Every day, the Justice Department’s federal prosecutors and trial attorneys work hard to protect our citizens, to safeguard precious taxpayer resources, and to provide a valuable return on investment to the American people,” said Attorney General Holder. “Their diligent efforts are enabling us to achieve justice and recoup losses in virtually every sector of the U.S. economy. And this result shows the fruits of the Justice Department’s tireless work in enforcing federal laws; in protecting the American people from violent crime, national security threats, discrimination, exploitation, and abuse; and in holding financial institutions accountable for their roles in causing the 2008 financial crisis.”
The U.S. Attorneys’ Offices, along with the Department of Justice’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
Michael C. Ormsby stated, “The United States Attorney’s Office’s enforcement actions help to not only ensure justice is served, but also to deliver a valuable return to the taxpayer. Attorneys and staff in my office are fully committed to collecting funds owed to victims of crime and to agencies of the federal government through on-going efforts to collect restitution from criminals, debts owed to agencies of the federal government for money borrowed or fines levied and money from government contractors and others who are found to have defrauded the government. The United States Attorney’s Office for the Eastern District of Washington will continue to prioritize its collection efforts, particularly in these tight financial times.”
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
Of further note, the United States Attorney’s Office for the Eastern District of Washington, working with partner agencies and divisions, collected $ 667,936.00 in asset-forfeiture actions during Fiscal Year 2014. In aggregate, the Department of Justice collected $4,531,566,571.00 in such actions during the same time period. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
Temple Man Sentenced to Federal Prison for Possession of Child PornographyRead the Press Release
In Waco today, 47-year-old James Fudge of Temple, TX, was sentenced to 108 months in federal prison for possession of child pornography announced United States Attorney Robert Pitman and Special Agent in Charge Janice Ayala, Homeland Security Investigations (HSI) in San Antonio.
In addition to the prison term, United States District Judge Walter S. Smith, Jr. ordered that Fudge pay a $1,000 fine and be placed on supervised release for a period of five years after completing his prison term.
On September 18, 2014, Fudge pleaded guilty to possession of child pornography. By pleading guilty, Fudge admitted to being in possession of child pornography and sharing child pornography with others via the Internet. On October 15, 2013, HSI agents executed a search warrant at the defendant’s residence and seized his computer and other related media. A forensics examination of the computer revealed the presence of approximately 970 images depicting child pornography.
"The prevention and investigation of the exploitation of minors is a priority for HSI," said Special Agent in Charge Janice Ayala, HSI San Antonio. "These investigations are pursued by dedicated special agents who not only work with the United States Attorney's Office to bring predators to justice, but work tirelessly to prevent these crimes through extensive outreach and education."
Assistant United States Attorney Greg Gloff prosecuted this case on behalf of the Government.
Tax Return Preparer Sentenced to 97 Months in Prison for $10 Million Tax Fraud, Money Laundering ConspiraciesRead the Press Release
JACQUELINE J. ARIAS, 40, a tax return preparer from Spruce Pine, Alabama, was sentenced today for her role in conspiracies to file false tax returns and commit money laundering, announced U.S. Attorney Kenneth Allen Polite, Jr. and Acting Deputy Assistant Attorney General Larry J. Wszalek of the Justice Department’s Tax Division.
In addition to incarceration, U.S. District Court Judge Helen G. Berrigan sentenced ARIAS to 97 months in prison, three years of supervised release, and restitution to the United States totalling $10,589,326. ARIAS was further ordered to forfeit nearly $400,000 in United States currency that was seized as part of the case.
On July 8, 2014, ARIAS pled guilty to one count of conspiracy to defraud the United States, six counts of mail fraud, and one count of money laundering conspiracy. As part of her plea, ARIAS admitted to her role in a years-long scheme to defraud the United States by filing false income tax returns that fraudulently claimed large tax refunds. ARIAS, her husband, and nineteen other individuals, all of whom were foreign nationals, as well as her tax preparation business were charged as part of the case. Sixteen defendants have pleaded guilty, four remain fugitives overseas, and one defendant, who was recently arrested in Panama, is currently set for trial in December.
All of the defendants in this case who pleaded guilty thus far were sentenced to the following terms of imprisonment: CESAR ALEJANDRO SORIANO (42 months); OSCAR ARMANDO PERDOMO, (42 months); YONI PERDOMO, (38 months); ARNULFO SANTOS-MEDRADO, (38 months); ELSIDES EDGARDO ALVARADO-CANALES, (36 months); ELIECER OBED RODRIGUEZ, (34 months); OCTAVIO JOSUE PERDOMO, (34 months); ELBER MENDOZA-LOPEZ, (34 months); AURELIO MONTIEL-MARTINEZ, (24 months); MILLER PERDOMO-ACEITUNO, ( 24 months); SANTOS MARTIN HERNANDEZ, (24 months); and SUSANA CARILLO MENDOZA, (19 months).
According to court documents, ARIAS and her coconspirators filed false returns listing Individual Taxpayer Identification Numbers (ITINs). An ITIN is a tax processing number issued by the Internal Revenue Service (IRS) to individuals who do not have, and are not eligible to obtain, a Social Security Number. As alleged in the second superseding indictment, ARIAS was a Certified Acceptance Agent, meaning that she was entrusted by the IRS with the responsibility of reviewing the documentation of an ITIN applicant’s identity and alien status for authenticity, completeness and accuracy before submitting their application to the IRS. The indictment charged that ARIAS filed false applications for ITINs, false income tax returns, and collected preparation fees from the fraudulently-obtained tax refunds. The indictment also charged ARIAS with filing false tax returns for her corporation, JB Tax Professional Services, and for herself individually.
“The Department of Justice Tax Division remains committed to vigorously prosecuting complex, large-scale tax fraud schemes that often stretch across our borders,” stated Acting Deputy Assistant Attorney General Larry J. Wszalek of the Justice Department’s Tax Division. Ms. Arias’ sentence and the sentences of twelve of her co-conspirators, who are collectively spending over thirty-two years in prison, sends a strong message to return preparers and individuals who engage in this type of tax fraud. The Tax Division will continue to work with state and local authorities to prosecute these criminals and will resolutely pursue fugitives who commit tax crimes, as the recent arrest in Panama of a co-conspirator demonstrates.”
“Today's sentence reflects our Office's commitment to rooting out tax fraud,” stated U.S. Attorney Polite. “As a tax preparer, Arias was entrusted with drafting and submitting filings in accordance with our tax laws. Instead, she violated those laws by spearheading a scheme to defraud our government out of over $10 million in tax revenue. In addition to paying full restitution and a significant fine, she will spend 8 years in prison for her criminal conduct.”
“Identifying financial crimes that threaten the health of our national economy andexposing criminals who attempt to steal from law-abiding taxpayers will continue to be a major investigative priority for Homeland Security Investigations," said Special Agent in Charge of HSI New Orleans Raymond R. Parmer Jr. "This case further illustrates the excellent working relationship between HSI and its federal, state and local partners to identify, investigate and referthese criminals for prosecution.”
“Jacqueline Arias cast a wide net of fraud, and, in return, captured a lengthy prison sentence,” said Gabriel L. Grchan, Special Agent in Charge, IRS Criminal Investigation. “Today's announcement is the result of collaborative work between local, state and federal law enforcement. Dismantling such a large network required the manpower of many agencies, and I would like to express my gratitude to our law enforcement partners who supported the investigation and prosecution of this very significant case.”
The case was investigated by U.S. Immigration and Customs Enforcement, which oversees U.S. Homeland Security Investigations; IRS-Criminal Investigation; the U.S. Secret Service; the U.S. Postal Inspection Service; and the Social Security Administration, Office of the Inspector General, in partnership with the St. Tammany Parish and Jefferson Parish Sheriffs’ Departments. The case was prosecuted by Department of Justice, Tax Division Trial Attorney Hayden Brockett and Assistant United States Attorney David Haller.
Tarrant and Parker County Men Receive Lengthy Federal Prison Sentences for Roles in Cocaine Distribution ConspiracyRead the Press Release
FORT WORTH, Texas — Six defendants who were convicted of federal felony offenses for their respective roles in a cocaine distribution conspiracy in North Texas have been sentenced, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Francisco Favela, 46, of Crowley, Texas, was sentenced on Monday by U.S. District Judge Reed C. O’Connor to 96 months in federal prison. Favela pleaded guilty to one count of conspiracy to possess a controlled substance with the intent to distribute (cocaine).
Two other coconspirators pleaded guilty to the same offense and have been sentenced. Jorge Villarreal-Flores, 30, of Weatherford, Texas, was sentenced to 87 months in federal prison and Ricky Johnson, 35, of Fort Worth, was sentenced to 108 months in federal prison.
Another coconspirator, Terrance Montgomery, 30, of Fort Worth, was convicted at trial in July 2014 on one count of conspiracy to possess with intent to distribute a controlled substance (cocaine) and one substantive count of possession with intent to distribute a controlled substance (cocaine). He was sentenced to 360 months in federal prison.
Two other codefendants, Eugenio Quintero, 42, of Fort Worth, and Miguel Angel Ayala, 39, of Weatherford, Texas, each pleaded guilty to one count of possession with intent to distribute a controlled substance (cocaine). Quintero was sentenced to 108 months in federal prison and Ayala was sentenced to 51 months in federal prison.
According to documents filed in the case, since approximately May 2013, Favela received cocaine from various Mexico-based cocaine suppliers – usually receiving several kilograms of cocaine every few weeks on consignment. When Favela received cocaine from a courier, Favela would give that same courier, or another courier, the money he owed for the previous cocaine shipment. Usually, Favela paid approximately $26,000 for each kilogram of cocaine.
Typically, once Favela received cocaine from Mexico, he personally distributed it, often on consignment, to others, including Montgomery, Johnson, Quintero and Ayala. When they received this cocaine, they would then pay Favela for their previous cocaine shipments.
On several occasions, Villarreal-Flores worked as a money-courier for Favela’s Mexico-based supplier, transporting drug proceeds from Favela in Fort Worth to Mexico. On February 15, 2014, Favela gave Villarreal-Flores approximately $150,000 in drug proceeds that was to be delivered to the Mexico-based supplier. Villarreal-Flores, however, was arrested in Hillsboro, Texas, before he could complete the journey to Mexico.
The investigation was conducted by the Drug Enforcement Administration (DEA) High Intensity Drug Trafficking Area (HIDTA) task force and Internal Revenue Service (IRS) Criminal Investigation. Assistant U.S. Attorney Shawn Smith prosecuted.
Southern District of Florida U.S. Attorney’s Office Collects Close to $85 Million in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2014Read the Press Release
U.S. Attorney Wifredo A. Ferrer announced today that the Southern District of Florida collected $39,972,936.93 in criminal and civil actions in Fiscal Year 2014. Of this amount, $35,262,477.55 was collected in criminal actions and $4,710,459.38 collected in civil actions.
Additionally, the Southern District of Florida worked with other U.S. Attorneys’ offices and components of the Department of Justice to collect an additional $44,362,280.04 in cases pursued jointly with these offices. Of this amount, $12,622.83 was collected in criminal actions and $44,349,657.21 was collected in civil actions.
Attorney General Eric Holder announced on November 19, 2014 that the Justice Department collected $24.7 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2014. The more than $24 billion in collections in FY 2014 represents nearly eight and a half times the appropriated $2.91 billion budget for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period.
“Every day, the Justice Department’s federal prosecutors and trial attorneys work hard to protect our citizens, to safeguard precious taxpayer resources, and to provide a valuable return on investment to the American people,” said Attorney General Holder. “Their diligent efforts are enabling us to achieve justice and recoup losses in virtually every sector of the U.S. economy. And this result shows the fruits of the Justice Department’s tireless work in enforcing federal laws; in protecting the American people from violent crime, national security threats, discrimination, exploitation, and abuse; and in holding financial institutions accountable for their roles in causing the 2008 financial crisis.”
U.S. Attorney Wifredo A. Ferrer stated, “I am proud of the men and women of our office through whose diligence we are able to secure restitution for crime victims and recover monies for the U.S. taxpayers. They work hard not only to protect the people of our great nation, but to ensure that criminals do not profit from their crime. Today’s numbers reflect that the U.S. Attorney’s Office collects substantially more money than it spends and provides the taxpayers with an excellent return on their investment.”
Within the last 6 months, the Southern District of Florida recovered in excess of $600,000,000 from the sale of properties belonging to the Defendants who agreed before sentencing to tender the properties towards restitution. This was possible due to the joint effort of the AUSA who handled the criminal case and the Financial Litigation Unit.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
Additionally, the U.S. Attorney’s office in the Southern District of Florida working with partner agencies and divisions, collected $33,305,397.00 in asset forfeiture actions in FY 2014. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
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.
South Florida Tax Preparer Pleads Guilty to Preparing False Tax Returns and Identity TheftRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Larry J. Wszalek, Acting Deputy Assistant Attorney General for Criminal Matters, Tax Division, and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announce that Rony Maurival, 39, of Fort Pierce, a tax preparer, pled guilty to preparing six false income tax returns. Specifically, Maurival pled guilty to four counts of filing false income tax returns, in violation of 26 U.S.C. § 7206, one count of theft of government funds, in violation of 18 U.S.C. § 641, and one count of aggravated identity theft, in violation of 18 U.S.C. § 1028A.
According to the indictment and Maurival’s admissions as part of his guilty plea, from July 2008 to March 2012, Rony Maurival owned and operated “RJ’s Tax & Services,” a tax return preparation business located in Fort Pierce. Maurival admitted to adding false wage and income information to his client’s tax returns in order to illegally maximize the earned income tax credit (EITC) claimed on their tax returns. The EITC is a refundable tax credit designed to assist low to moderate income taxpayers. Maurival agreed that his actions in this regard resulted in a tax loss to the IRS of between $1 million and $2.5 million.
Maurival also admitted to filing his own false 2009 and 2010 tax returns. Specifically, Maurival admitted to not reporting over $250,000 in tax preparation fee income earned through his business in those years.
Maurival further admitted to using stolen identity information to file false tax returns with the IRS in order to steal money from the United States. In doing so, he would direct the false tax refunds to bank accounts that he controlled.
As a result of his plea, Maurival faces a maximum sentence of 24 years in prison and a $1.5 million fine. Maurival remains detained pending sentencing, which was scheduled by the Court for January 27, 2015.
Mr. Ferrer and Mr. Wszalek commended the investigative efforts of the IRS-CI. This case is being prosecuted by Assistant United States Attorney Russell Killinger and Tax Division Trial Attorney Charles M. Edgar, Jr.
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.
South Carolina Man Admits Tampering with Witness and Lying During Federal Criminal TrialRead the Press Release
CAMDEN, N.J. - A South Carolina man today admitted tampering with a witness in a federal criminal trial that concluded in September 2013, U.S. Attorney Paul J. Fishman announced.
Dennis Nadeau, 53, of Myrtle Beach, South Carolina, pleaded guilty before U.S. District Judge Noel L. Hillman in Camden federal court to an information charging him with one count of witness tampering.
According to documents filed in this case and in the prior criminal case and statements made in court:
From 2010 through 2013, Nadeau worked at the New Jersey-based Vacation Ownership Group LLC (VO Group) and its successor VO Financial. In 2013, 13 former VO Group employees pleaded guilty to conspiring to defraud timeshare owners. Four other VO Group employees, including VO Group President Adam Lacerda and his wife, Ashley Lacerda, were convicted by a jury of conspiracy to defraud and related charges after a seven-week trial that concluded in September 2013. The Lacerdas have been in custody since the trial and all defendants are awaiting sentencing.
Shortly before the start of last year’s trial, Ashley Lacerda directed Nadeau to call former VO Group customers who had spoken to the FBI. Nadeau was told to try to convince them that everything had been explained to them and that any problems occurred because they had not followed the VO Group’s instructions. After Nadeau had an initial call with a witness, Adam Lacerda gave Nadeau a written script and directed him to call the witness again using the script. Adam Lacerda told Nadeau that he wanted to obtain ammunition to use when the witness testified at trial and instructed him to record the call without the witness’ knowledge. With Adam Lacerda standing over him, Nadeau called witness using the script and tried to get the witness to agree with several false statements.
The witness testified at trial and the recording was played during the witness’ trial testimony.
Nadeau then testified at trial as one of Adam Lacerda’s defense witnesses. Adam Lacerda prepared Nadeau to testify and told Nadeau to tell two lies during his trial testimony. Nadeau admitted today that he complied with Adam Lacerda’s instructions and gave false testimony at trial.
The count of witness tampering carries a maximum potential penalty of 20 years in prison and a fine of the greater of $250,000 or twice the gain or loss caused by the offense. Sentencing is scheduled for Feb. 24, 2015.
U.S. Attorney Fishman credited special agents of FBI’s Atlantic City Resident Agency, under the direction of Special Agent in Charge Aaron T. Ford; and special agents from the Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, under the direction of Special Agent in Charge Cheryl Garcia, NewYork Region, with the ongoing investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney R. David Walk Jr. of the U.S. Attorney’s Office in Camden.
14-406
Defense counsel: Stanley O. King Esq., Woodbury, N.J.
Nadeau, Dennis Information
Six People Charged with Bringing Crystal Meth to Cleveland from CaliforniaRead the Press Release
Six people were indicted in federal court for their roles in a conspiracy to bring crystal methamphetamine from California and sell it in Cleveland, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Named in the six-count indictment are: Chauncey D. Dennis, 35, Michael J. Coolidge, 51, and Ross Cipolla, 49, all of Cleveland; Aja S. Brown, 33, of Van Nuys, Calif.; Christian Joe Villasenor, 32, and Hazel Hamilton, 28, both of Los Angeles.
Dennis, Coolidge and Cipolla obtained the crystal meth from Brown, Villasenor and Hamilton in California, then redistributed the drug in Cleveland between August and October 2014, according to the indictment.
Dennis sent money orders to dealers in Los Angeles and Van Nuys, Calif., who in turn mailed packages containing crystal meth to Dennis at 10121 Unity Ave., Upper Unit, in Cleveland. On Sept. 15, Coolidge picked up the drugs from Dennis and delivered them to Cipolla at a storage facility at 6000 Clark Ave. in Cleveland, according to the information.
Count 1 charged all six for their roles in the conspiracy.
Count 2 charged Cipolla with possession of GHB with intent to distribute.
Counts 3 and 4 charged Dennis and Brown with using a communication facility to facilitate a felony, while Counts 5 and 6 charge them with conducting financial transactions involving proceeds from unlawful activity.
The case is being prosecuted by Special Assistant U.S. Attorney Margaret Tomaro, an Assistant Attorney General for the State of Ohio. The case was investigated by U.S. Postal Inspection Service.
If convicted, the defendants’ sentences will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendant’s prior criminal record (if any), the defendant’s role in the offense and the characteristics of the violation.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
San Fernando Valley Doctor Resolves Lawsuit That Alleged Fraudulent and Improper Pain Management Billing PracticesRead the Press Release
SANTA ANA, California – A doctor who operates a pain management clinic in Valencia has agreed to pay $1.2 million to resolve allegations that he submitted fraudulent bills and received improper payments from federal and state health insurance programs.
In a case partially unsealed today, Dr. Narinder S. Grewal, of Chatsworth, and his pain clinic, the Santa Clarita Surgery Center for Advanced Pain Management agreed to pay $1,087,176 to the United States and $112,823 to the State of California.
The settlement concludes a federal “whistleblower” lawsuit filed by a billing agent, who used to provide billing and collection services to the Grewal’s clinic.
The lawsuit alleged that Grewal and his clinic obtained improper reimbursements from government-run health insurance programs, including Medicare, Medi-Cal and Tricare, a federal health insurance program for military and related military personnel. The lawsuit alleged that Grewal and his clinic submitted fraudulent claims by “upcoding” medical services, which means that he allegedly submitted bills that were not justified by the services that were actually provided.
The settlement was announced today after United States District Judge Andrew J. Guilford unsealed the lawsuit. The parties have asked the court to dismiss the suit, which was filed pursuant to federal and state False Claims Acts.
The whistleblower provisions of the False Claims Acts permit a private person to sue on behalf of the United States and California, and to share in the proceeds of the suit. As a result of the settlement announced today, the billing agent will receive a total of $204,000.
The case was handled by the United States Attorney’s Office and the California Attorney General’s Office, in conjunction with the Department of Health and Human Services, Office of Inspector General, and the Department of Defense, Defense Criminal Investigative Service.
- SDTX Helps Collect More Than $150 Million in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2014
Rochester Man Sentenced on Drug ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y. — U.S. Attorney William J. Hochul, Jr. announced today that James Webb, a/k/a Butch, 57, of Rochester, NY, who was convicted of conspiracy to possess with intent to distribute and to distribute 280 grams or more of crack cocaine, was sentenced to 151 months in prison by U.S. District Judge Charles J. Siragusa. The defendant was also ordered to forfeit $9,172 in drug trafficking proceeds, a firearm and ammunition.
Assistant U.S. Attorney Robert A. Marangola, who handled the case, stated that Webb led a Rochester-based drug organization which distributed large quantities of powder cocaine in Rochester. The organization processed powder cocaine into crack cocaine, packaged and resold it in various quantities. On June 14, 2011, the defendant and others were arrested when law enforcement raided the epicenter of the drug operation at 392 and 401 Norton Street in Rochester. Webb was located inside 392 Norton Street with crack cocaine and drug paraphernalia in plain view. During the raids, officers seized over 40 grams of crack cocaine packaged for sale, a loaded 9mm handgun, $9,172 in U.S. currency, and paraphernalia for processing, packaging, and distributing cocaine.
The sentencing is the culmination of an investigation on the part of Rochester Police Department, under the direction of Chief Michael L. Ciminelli, and Special Agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Acting Special Agent in Charge James S. Higgins, New York Field Division, and the New York State Division of Parole, under the direction of Acting Commissioner Anthony J. Annucci.
Registered Sex Offender Sentenced to 35 Years in Prison for Attempting to Engage in Sex with a Minor and Child Pornography-Related OffensesRead the Press Release
A registered sex offender with prior convictions for the possession of child pornography and attempted sexual conduct with minors was sentenced to 35 years in prison today for traveling across state lines to engage in sex with a minor and various child pornography-related offenses.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and Acting U.S. Attorney Josh Minkler of the Southern District of Indiana made the announcement. U.S. District Judge Jane E. Magnus-Stinson of the Southern District of Indiana imposed the sentence.
John Alan Lewis, 65, of Lima, Ohio, was convicted in August 2014 following a three-day trial for traveling across state lines to engage in illicit sexual conduct with a minor, attempted production of child pornography, and transportation and possession of child pornography.
According to evidence presented at trial, Lewis met an individual online that he believed to be a 14 year-old girl. The individual was actually an adult male registered sex offender from New York who was posing as a 14 year-old girl. From November 2011 until May 2012, Lewis exchanged numerous images of a minor under the age of 12 engaging in sexually explicit conduct via email with that individual, still believing that he was communicating with a 14 year-old girl.
Following the August 2012 arrest of the New York sex offender who was posing as the 14 year-old girl, law enforcement assumed the New York sex offender’s online profile and continued to communicate with Lewis. In the weeks leading up to his arrest, Lewis engaged in a series of online chats with the purported 14 year-old girl, during which he discussed his plan to travel from Ohio to Indiana to take her to a motel to engage in sexual acts. On Sept. 19, 2012, Lewis rented a car in Lima, Ohio, and drove to Plainfield, Indiana, to meet with the girl. He was arrested when he arrived at the agreed upon meeting location.
At the time of his arrest, Lewis had three electronic devices, each of which contained images depicting a minor, between the ages of 10 and 12, fully nude and engaging in sexually explicit conduct.
This case was investigated by the Indianapolis Metropolitan Police Department, the Indiana State Police Cyber Crime Unit, the FBI’s Violent Crimes Against Children Section and the Indiana Internet Crimes Against Children Task Force, which is made up of federal and state law enforcement agencies. The case was prosecuted by Trial Attorney Amy E. Larson of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Steven D. DeBrota of the Southern District of Indiana.
The National Center for Missing and Exploited Children assisted the investigation by providing information to the Indianapolis Police Department, which led to the identification of a minor child victim in Indiana.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.projectsafechildhood.gov. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Raleigh Man Sentenced in Case Involving Threats to Raleigh MayorRead the Press Release
RALEIGH – United States Attorney Thomas G. Walker announced that yesterday in federal court, United States District Judge Terrence W. Boyle sentenced ALEC REDNER, 28 years old, of Raleigh, North Carolina to 21 months imprisonment, followed by three years of supervised release.
REDNER was named in an Indictment filed on May 13, 2014 charging him with obstruction of justice and aiding and abetting. On July 19, 2014, REDNER pled guilty to that charge.
According to the investigation, REDNER was in possession of a laptop computer that he used to send a threatening email message to Raleigh Mayor Nancy McFarlane via her website. During the course of the investigation, REDNER unsuccessfully attempted to have the laptop destroyed in order to prevent detectives from being able to link the laptop to the threatening communication to Mayor McFarlane.
Investigation of this case was conducted by the Raleigh Police Department, the Wake County Sheriff’s Department and the Federal Bureau of Investigation. Assistant United States Attorney Jason M. Kellhofer represented the government.
Rochester Woman Sentenced for Her Role in a Conspiracy to Defraud the United StatesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Kelly Nicole Borger, 32, of Rochester, NY, and Los Angeles, CA, was sentenced by U.S. District Judge David G. Larimer to one year in prison, and ordered to pay restitution to the Internal Revenue Service totaling $532,351.
Assistant U.S. Attorney John J. Field, who handled the matter, stated that from April 2011 to April 2012, Borger conspired with Michael Carney of Los Angeles, CA, to prepare and submit false income tax returns. Borger emailed Carney the names and other identifying information of 40 individuals in Rochester known to Borger. Carney then prepared 50 fraudulent tax returns in the names of these individuals claiming undeserved tax refunds totaling $532,351. Borger received at least $169,000 for her role in conspiracy.
Michael Carney was convicted and sentenced to 41 months in prison.
The sentencing is the culmination of an investigation by the Internal Revenue Service, Criminal Investigation Division, under the direction of Shantelle P. Kitchen, Acting Special Agent in Charge, New York Field Office.
Philadelphia Man Charged with Heroin TraffickingRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Tara Tighe, Public Affairs SpecialistMARTINSBURG, WEST VIRGINIA – A federal grand jury returned an indictment charging Reginald Maurice Teasley, Jr., 38, of Philadelphia, PA with heroin trafficking, United States Attorney William J. Ihlenfeld, II, announced today.
Teasley is charged with one count of “Possession with Intent to Distribute Heroin,” following an investigation by the Greater Harrison County Drug and Violent Crime Task Force, a HIDTA-funded initiative. He was discovered in possession of heroin in October 2014 in Clarksburg, West Virginia.
Teasley faces up to 20 years in prison and a fine of up to $1,000,000.00. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Philadelphia Man Charged with Assaulting Federal OfficersRead the Press Release
John L. Williams, 61, of New York, NY, was charged today by information with one count of conspiracy and one count of bank fraud, announced United States Attorney Zane David Memeger. The information alleges that from August 2013 to February 2014, Williams used fraudulent identification cards, including driver’s licenses, containing stolen personal information of account holders at Wells Fargo Bank to impersonate the account holders and withdraw money from the accounts. Williams and his co-conspirators stole at least $83,000 using forged withdrawal slips.
If convicted the defendant faces a maximum possible sentence of 35 years of imprisonment, five of supervised release, a $1,250,000 fine, and a special assessment of $200.
The case was investigated by the Secret Service and U.S. Immigration and Customs Enforcement Homeland Security Investigations. It is being prosecuted by Assistant United States Attorney Laurie Magid.
An information is an accusation. A defendant is presumed innocent unless and until proven guilty.
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UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Perry Woman Pleads Guilty to Drug and Food Stamp Fraud ChargesRead the Press Release
Contact: Jim Moore
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Tonia
Smith, 42, of Perry, Maine, pled guilty yesterday in U.S. District Court to fraudulently acquiring
Hydrocodone and food stamp fraud.According to court records, from July to November 2013, Smith used her position as a pharmacy technician at the Indian Health Service Center on Pleasant Point Reservation in Perry to steal the pain medication Hydrocodone from the pharmacy and then shredded records that the pharmacy was required to keep in order to conceal her thefts. The investigation also revealed that from January to November 2013, Smith bought EBT cards from food stamp recipients for amounts less than the credit assigned to each card and then used the cards to make unauthorized purchases.
Smith faces up to 4 years in prison on the drug charge, up to 5 years in prison on the food stamp fraud charge and a fine of up to $250,000 on each charge. She will be sentenced after completion of a presentence investigation report by the U.S. Probation Office.
The investigation was conducted by the Offices of Inspector General of the U.S.
Departments of Health and Human Services and Agriculture and the Pleasant Point Police
Department.Owner of Debt Relief Company Sentenced in Manhattan Federal Court to 108 Months in Prison for Multimillion-Dollar Scheme That Victimized over 1,200 Financially Struggling PeopleRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that MICHAEL LEVITIS, the owner of MISSION SETTLEMENT AGENCY (“MISSION”), was sentenced in Manhattan federal court to 108 months in prison in connection with a multimillion-dollar scheme that victimized more than 1,200 financially struggling people across the country. MISSION was also sentenced today, and ordered to pay a fine of $4,393,044. LEVITIS and MISSION pled guilty on April 8, 2014, before U.S. District Judge Paul G. Gardephe, who also imposed today’s sentences.
Manhattan U.S. Attorney Preet Bharara said: “Michael Levitis preyed upon people across the country who, like so many Americans, were struggling to pay off their debts after the financial downturn. Through Mission Settlement Agency, Levitis lied about quick, guaranteed cures to their serious financial problems in order to trick them out of money they could not afford to lose. Worse, he created, for many people, a nightmare of spiraling debt and plummeting credit scores that plagues them to this day. With his sentence today, he has been held responsible and punished for his crimes. As we demonstrated just yesterday through our announcement of another consumer debt-related case, this Office is committed to working with our law enforcement partners to pursue and prosecute those who seek to profit by exploiting financially struggling and vulnerable people. I would like to thank the U.S. Postal Inspection Service for their work on this case, and the Consumer Financial Protection Bureau for bringing this matter to our attention.”
According to the allegations contained in the Indictment and Superseding Information, other documents filed in Manhattan federal court, and statements made in court proceedings:
Beginning in 2009, MISSION offered “debt settlement” services to financially disadvantaged people who were struggling or unable to pay their credit card debts. Like other purported debt settlement providers, MISSION held itself out as a company that could successfully negotiate to lower the overall debt its customers owed to credit card companies and banks. MISSION solicited prospective customers through telemarketing and mail solicitations. Thereafter, MISSION’s sales representatives typically spoke to the prospective customers on the phone, describing MISSION’s work and its supposed ability to renegotiate debt.
LEVITIS was MISSION’s beneficial owner, and was responsible for managing MISSION’s day-to-day operations, its finances, its hiring and termination of employees, and its advertising and solicitation of customers.
From 2009 through May 2013, at LEVITIS’s direction, he and his co-conspirators Denis Kurlyand, Boris Shulman, Manuel Cruz, Felix Lemberskiy, and Zakhir Shirinov systematically exploited and defrauded over 1,200 customers across the country, who were financially disadvantaged people struggling to pay their credit card debts. They tricked people into paying MISSION for purported debt settlement services by lying to prospective customers about MISSION’s ability to help settle their debts, the fees that MISSION charged, and MISSION’s purported affiliation with the federal government. Among other things, the defendants: (1) lied about and/or concealed MISSION’s fees, falsely assuring customers that MISSION would charge a mere $49 per month when, in truth, MISSION took thousands of dollars in fees from funds that its customers believed would be used to pay creditors, (2) deceived customers by fraudulently and falsely promising that MISSION could slash their debts – typically, by 45% -- when, in fact, for the majority of its customers, MISSION did little or no work and failed to achieve any reduction in debt, and (3) sent prospective customers solicitation letters that falsely suggested that the agency was acting on behalf of or in connection with a federal governmental program, which letters included an image of the Great Seal of the United States and indicated that they were coming from the “Reduction Plan Administrator” of the purported “Office of Disbursement.” As a result of the defendants’ scheme, in addition to losing money, most of MISSION’s customers failed to achieve the reduction in debt that the defendants had promised them, and some of them suffered further declines in their credit ratings, were sued by their creditors, and/or fell into bankruptcy.
MISSION received over $6.6 million in fees during the course of the scheme. For more than 1,200 of its customers, MISSION took fees totaling nearly $2.2 million but never paid a penny to the customers’ creditors. LEVITIS used the money that MISSION took from its customers to pay for, among other things, the operating expenses of Rasputin, a restaurant/nightclub he controlled, lease payments for two different luxury Mercedes cars, credit card bills for his mother, and expenses for parties and other events featured in a reality television show in which he starred during the course of the scheme.
In addition to his prison term, LEVITIS, 38, of Brooklyn, New York, was sentenced to three years of supervised release, and ordered to pay forfeiture and restitution of $2,196,522 and a fine of $15,000.
In sentencing LEVITIS, Judge Gardephe said, “There is something special and extraordinary about the crimes here: the fact that they were directed at desperate people, hundreds of desperate people drowning in debt, trying to find a way out of their problems. […] The determination to extract from these people their last few dollars makes this crime extraordinary.”
LEVITIS and MISSION previously entered into a stipulation of settlement of the civil forfeiture action filed by the United States Attorney’s Office for the Southern District of New York entitled United States v. All Right, Title, and Interest in Rasputin Restaurant, 13 Civ. 3069 (GHW). As part of that stipulation of settlement, LEVITIS and MISSION consented to the entry of a permanent injunction barring them from providing, directly or indirectly, any debt relief or mortgage relief services in the future.
Five other defendants, Denis Kurlyand, Boris Shulman, Felix Lemberskiy, Zakhir Shirinov, and Manuel Cruz, previously pled guilty for their roles in the fraudulent scheme, and await sentencing.
Mr. Bharara praised the investigative work of the United State Postal Inspection Service. He also thanked the Consumer Financial Protection Bureau for referring this case to this Office and for their assistance in this matter. Mr. Bharara also thanked the New York City Department of Consumer Affairs for their assistance in the case.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorneys Nicole W. Friedlander and Edward A. Imperatore are in charge of the prosecution. Assistant United States Attorney Carolina A. Fornos of the Office’s Asset Forfeiture Unit is responsible for the forfeiture aspects of the case.
Ohio Man Sentenced for Painkiller, Cocaine DistributionRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Tara Tighe, Public Affairs SpecialistWHEELING, WEST VIRGINIA – Dustin Namack, 37, of Adena, Ohio, was sentenced to 15 months in prison for his role in a for his role in a painkiller and cocaine distribution ring, United States Attorney William J. Ihlenfeld, II, announced today.
Namack pled guilty in July 2014 to one count of “Conspiracy to Distribute Schedule II and Schedule III Controlled Substances” after an investigation by the U.S. Drug Enforcement Administration and the Ohio Valley Drug and Violent Crime Task Force, a HIDTA-funded initiative.
Assistant U.S. Attorney John Parr prosecuted the case on behalf of the government.
Senior U.S. District Judge Frederick P. Stamp presided.
Ohio Man Charged with Making ThreatsRead the Press Release
A federal grand jury returned a two-count indictment charging Charles James Reighard, age 67, of Burghill, Ohio, with mailing threatening communications, and threatening to damage or destroy a building by means of an explosive, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Count 1 of the indictment charges that from on or about September 4, 2014, to on or about October 17, 2014, Reighard sent communications to his victim with the intent to extort money from him and which contained a threat to injure him and/or his family.
Count 2 of the indictment charges that on or about October 16, 2014, Reighard engaged in conduct with the intent to convey false or misleading information that the offices at 6630 Seville Drive, in Canfield, Ohio, would be damaged or destroyed by an explosive.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The case is being prosecuted by Assistant United States Attorney Justin Seabury Gould, following an investigation by the Federal Bureau of Investigations of Youngstown, and the Mahoning County Sheriff’s Department.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Northern District of Oklahoma U.S. Attorney's Office Collects Nearly $2.1 Million in Civil and Criminal Cases for U.S. Taxpayers in Fiscal Year 2014Read the Press Release
TULSA, Okla. – United States Attorney Danny C. Williams Sr. announced today that the Northern District of Oklahoma collected $2,089,219.07 in criminal and civil actions in Fiscal Year 2014. Of this amount, $891,527.25 was collected in criminal actions and $1,197,691.82 was collected in civil actionsAdditionally, the Northern District of Oklahoma worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $1,348.15 in cases pursued jointly with these offices.
Furthermore, the Northern District of Oklahoma, working with partner agencies and divisions, collected$1,106,290in asset forfeiture actions in FY 2014. Additionally, criminal forfeiture money judgments were entered totaling $21,066,698 representing proceeds from defendants’ offenses of conviction. During this fiscal year, forfeited assets deposited into the Department of Justice Assets Forfeiture Fund were used to restore $3,648,140 to crime victims and $812,213 was used for a variety of law enforcement purposes.
Attorney General Eric Holder announced today that the Justice Department collected $24.7 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2014. The more than $24 billion in collections in FY 2014 represents nearly eight and a half times the appropriated $2.91 billion budget for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period.“Every day, the Justice Department’s federal prosecutors and trial attorneys work hard to protect our citizens, to safeguard precious taxpayer resources, and to provide a valuable return on investment to the American people,” said Attorney General Holder. “Their diligent efforts are enabling us to achieve justice and recoup losses in virtually every sector of the U.S. economy. And this result shows the fruits of the Justice Department’s tireless work in enforcing federal laws; in protecting the American people from violent crime, national security threats, discrimination, exploitation, and abuse; and in holding financial institutions accountable for their roles in causing the 2008 financial crisis.”
"The Northern District’s commitment to the recovery of funds has yielded nearly $2.1 million in litigated matters and $3.6 million in asset forfeitures for federal crime victims,” said U.S. Attorney Williams. “This total is a reflection of the office’s priority and the work of dedicated collections staff in the Financial Litigation Unit and Asset Forfeiture division. We will continue to ensure justice is served and hold accountable those who seek to profit from their illegal activities.”
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
Press Release: Department of Justice Collects More Than $24 Billion in Civil and Criminal Cases in Fiscal Year 2014
The full video of the Attorney General’s message is available at http://www.justice.gov/agwa.php.
Northern District of California U.S. Attorney’s Office Collects over $327 Million Dollars in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2014Read the Press Release
SAN FRANCISCO – United States Attorney Melinda Haag announced today that the Northern District of California collected $327,128,651.76 in criminal and civil actions in the fiscal year ending Sept. 30, 2014 – the fifth highest amount of money collected by a U.S. Attorney’s Office in the country. Of this amount, $321,472,322.57 was collected in criminal actions and $5,656,329.19 was collected in civil actions.
Additionally, the Northern District of California worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $1,591,862,774.04 in cases pursued jointly with these offices. Of this amount, $3,717.65 was collected in criminal actions and $1,591,859,056.39 was collected in civil actions.
Attorney General Eric Holder announced today that the Justice Department collected $24.7 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2014. The more than $24 billion in collections in FY 2014 represents nearly eight and a half times the appropriated $2.91 billion budget for the 94 U.S. Attorney’s offices and the main litigating divisions of the Justice Department combined in that same period.
“Every day, the Justice Department’s federal prosecutors and trial attorneys work hard to protect our citizens, to safeguard precious taxpayer resources, and to provide a valuable return on investment to the American people,” said Attorney General Holder. “Their diligent efforts are enabling us to achieve justice and recoup losses in virtually every sector of the U.S. economy. And it shows the fruits of the Justice Department’s tireless work in enforcing federal laws; in protecting the American people from violent crime, national security threats, discrimination, exploitation, and abuse; and in holding financial institutions accountable for their roles in causing the 2008 financial crisis.”
“Last year our office collected millions of dollars from financial institutions and others that had defrauded and committed crimes against the federal government as well as private individuals and institutions,” said United Sates Attorney Melinda Haag. “This office’s Financial Litigation Unit works relentlessly to ensure that those found accountable make their victims whole.”
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the Department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
North Alabama U.S. Attorney's Office Collects $7.5 Million in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2014Read the Press Release
BIRMINGHAM - U.S. Attorney Joyce White Vance announced today that the Northern District of Alabama collected $7.5 million in criminal and civil actions in Fiscal Year 2014. Of this amount, the office collected $3.2 million in criminal actions and $4.3 million in civil actions.
Additionally, the Northern District worked with other U.S. Attorney's Offices and components of the Department of Justice to collect an additional $117.8 million in cases pursued jointly. The $117.8 million was collected in civil actions.
U.S. Attorney General Eric Holder announced today that the Justice Department collected $24.7 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2014. The more than $24 billion in collections in FY 2014 represents nearly eight and a half times the appropriated $2.91 billion budget for the 94 U.S. Attorney's offices and the main litigating divisions in that same period."Every day, the Justice Department's federal prosecutors and trial attorneys work hard to protect our citizens, to safeguard precious taxpayer resources, and to provide a valuable return on investment to the American people," Holder said. "Their diligent efforts are enabling us to achieve justice and recoup losses in virtually every sector of the U.S. economy. And this result shows the fruits of the Justice Department's tireless work in enforcing federal laws; in protecting the American people from violent crime, national security threats, discrimination, exploitation, and abuse; and in holding financial institutions accountable for their roles in causing the 2008 financial crisis."
"Seeking justice is the primary objective of the U.S. Attorney's Office," Vance said. "The people in my office pursue that goal every day, working to put criminals behind bars and to ensure that money taken through wrongful action is returned to the federal government and the American taxpayer. In addition, we try to be good stewards of the public trust and the funding our office is given to do our work. The $117.8 million we recovered this past year, working with other districts and the Civil Division, as well as the $7.5 million our office recovered independently, exceeds the budget of this office more than tenfold," she said.
The Northern District of Alabama's two largest independent collections came in false claims settlements with health care providers. The district collected $3.93 million from the parent company of Hospice Compassus as part of an agreement to settle allegations that the company submitted false claims to Medicare for patients treated at its hospice facilities. The district also collected $1.2 million from American Family Care Inc. to settle allegations that it knowingly submitted claims to Medicare for outpatient office visits that it billed at higher than appropriate rates.
The Northern District of Alabama worked with the Justice Department's Civil Division and U.S. Attorney's Offices in north Georgia, eastern Pennsylvania and eastern Kentucky to secure a $150 million payment to the federal government from Amedisys, one of the nation's largest home health providers. Amedisys made the payment as part of a settlement to resolve allegations that some of its offices improperly billed Medicare for ineligible patients and services.
The U.S. Attorneys' Offices, along with the department's litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department's Crime Victims' Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
Additionally, the U.S. Attorney's office in north Alabama, working with partner agencies and divisions, collected $2.2 million in asset forfeiture actions in FY 2014. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
Niles Man Sentenced to Seven Years in Federal Prison for Bank RobberyRead the Press Release
GRAND RAPIDS, MICHIGAN – Richard David Smith, 46, of Niles, Michigan, was sentenced today, November 18, 2014, to seven years in federal prison for Bank Robbery, U.S. Attorney Patrick Miles announced. In addition to the prison term, U.S. District Judge Robert Jonker ordered Smith to pay $1,817 in restitution and $1,000 in fines, and Judge Jonker imposed a three-year term of supervised release that will commence once Smith is released from imprisonment.
A jury returned a guilty verdict on the charge of Bank Robbery on August 7, 2014, after a three-day trial. The evidence presented at trial showed that on February 15, 2013, the defendant entered a Chemical Bank located in Niles, Michigan, and placed a backpack in the foyer. He then walked up to one of the bank employees and displayed a demand note that had a bullet taped to it. The note stated that a bomb had been placed in the building, and it instructed the teller to put all of the money in an envelope. The note further advised that the defendant had people watching the bank, and if the teller contacted police within 30 minutes of the robbery, he would detonate the bomb. The bank employee surrendered $1,817 to the defendant, who then fled the bank, taking the money and his demand note, but leaving his backpack in the foyer.
Local and federal law enforcement officers, including a bomb squad, responded to the scene of the robbery. The defendant’s bag was recovered, but it did not contain a bomb. The bag was swabbed for DNA, and testing later confirmed that DNA recovered from the backpack matched the defendant’s DNA. Based on a tip, police tracked the defendant down and arrested him on February 20, 2013. The defendant confessed to police, telling them why he committed the robbery and admitting there was no excuse for it. The defendant also admitted to another person that he had committed the robbery, but he said the government was going to have to prove it at trial.
Smith committed the bank robbery in this case less than four months after he completed parole for a 2007 state conviction for Bank Robbery and Armed Robbery.
The Federal Bureau of Investigation (FBI), the Michigan State Police (MSP), and the Niles Police Department investigated the case. Assistant U.S. Attorney Sean M. Lewis prosecuted the case.
END
New York Woman Sentenced for Distributing CocaineRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today that United States District Court Judge Robert D. Mariani sentenced Jalani Kornegay, age 33, of New York, New York, for distributing cocaine. Judge Mariani imposed a time-served sentenced of 59 days and further ordered that Kornegay serve four-month of home confinement.
On July 16, 2014, Kornegay pleaded guilty to a Criminal Information which charged that she distributed cocaine in Luzerne County on May 18, 2013. The charges are the result of an investigation by the Federal Bureau of Investigation and the Pennsylvania State Police into the sale of cocaine at motels in Luzerne and Lackawanna Counties. The case was prosecuted by Assistant United States Attorney John Gurganus.
In addition to the imprisonment and home-confinement sentence, Judge Mariani ordered that Kornegay be under the supervision of a United States Probation Officer for three years.
New York City Man Sentenced to Five Years for Oxycodone TraffickingRead the Press Release
Contact: Joel B. Casey
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that William
Waters, 33, of Bronx, New York, was sentenced today in U.S. District Court by Chief Judge
John A. Woodcock, Jr., to five years in prison and three years of supervised release for possession with intent to distribute oxycodone. Waters pled guilty on March 31, 2014.Court records reveal that on March 15, 2013, the defendant and Ebony Howard were encountered by officers with the Waterville Police Department who had information that Waters and Howard were travelling with a large number oxycodone tablets. Waters and Howard were driven to police headquarters where officers seized 645 oxycodone 30 mg tablets from
Howard. Waters admitted that Howard was doing him a favor transporting the pills, that he got them in New York City and that he intended to distribute them to customers in Maine. At sentencing, Waters was identified as a courier for a central Maine drug dealer, Maurice McCray, who was sentenced yesterday.
In imposing sentence, Chief Judge Woodcock told Waters that his name was “all over the
Maurice McCray case” and told him the March 15th event in Waterville was “not a one-time event.”
The case was investigated by the Waterville Police Department, with assistance from the
Maine Drug Enforcement Agency and the U.S. Drug Enforcement Administration.Nevada U.S. Attorney's Office Collects $10.9 Million in 2014Read the Press Release
LAS VEGAS, Nev. – U.S. Attorney Daniel G. Bogden announced today that the Nevada U.S. Attorney’s Office collected $10.9 million in Fiscal Year (FY) 2014 related to criminal, civil and asset forfeiture actions. Of this amount, approximately $4.6 million was collected in criminal actions, $1.4 million was collected in civil actions, and $5 million was collected in criminal and civil forfeitures.
Additionally, the District of Nevada worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $14 million in cases pursued jointly with these offices. This additional shared amount was almost entirely collected in civil actions.“The collection of monetary penalties in federal litigation is a critical aspect of our work that frequently gets overlooked,” said U.S. Attorney Bogden. “These collections are used to help crime victims and for a variety of other law enforcement purposes. Our FY 2014 collections far exceeded the total appropriated budget for our office for FY 2014.”
An example of a recent case in which the U.S. Attorney’s Office for the District of Nevada collected a significant amount of money was a settlement of the Como Fire litigation. That case involved a claim against Silver Reserve Corp. and Mining Contractor's Inc. for recoupment of fire suppression costs and rehabilitation of federal land. The fire was caused by the negligent operation of an excavator that struck a power pole and ignited vegetation. The contractor settled the claim and paid $250,000 to the United States.
Attorney General Eric Holder also announced today that the Justice Department collected $24.7 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2014. The more than $24 billion in collections in FY 2014 represents nearly eight and a half times the appropriated $2.91 billion budget for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period.“Every day, the Justice Department’s federal prosecutors and trial attorneys work hard to protect our citizens, to safeguard precious taxpayer resources, and to provide a valuable return on investment to the American people,” said Attorney General Holder. “Their diligent efforts are enabling us to achieve justice and recoup losses in virtually every sector of the U.S. economy. And this result shows the fruits of the Justice Department’s tireless work in enforcing federal laws; in protecting the American people from violent crime, national security threats, discrimination, exploitation, and abuse; and in holding financial institutions accountable for their roles in causing the 2008 financial crisis.”
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
Monroeville Man Indicted on Charges of Distributing, Receiving and Possessing Child PornRead the Press Release
PITTSBURGH - A resident of Allegheny County, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of distribution, receipt and possession of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.
The three-count indictment, returned on Nov. 18, named Andrew Patterson, 45, as the sole defendant.
According to the indictment, from on or about June 15, 2014, to on or about June 16, 2014, Patterson distributed videos and images containing material depicting the sexual exploitation of minors. The indictment further alleges that on or about Sept. 8, 2014, Patterson received videos containing material depicting the sexual exploitation of minors. Lastly, the indictment alleges that on or about Oct. 16, 2014, Patterson knowingly possessed videos and images in computer graphic and digital files, the production of which involved the use of minors engaging in sexually explicit conduct, some of whom had not yet attained 12 years of age.
The law provides for a maximum total sentence of 50 years in prison, a fine of $750,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Jessica Lieber Smolar is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Indiana County District Attorney’s Office, the Allegheny County District Attorney’s Office, and the Monroeville Police Department conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Medical Clinic Owners Indicted for Medicare and Medicaid FraudRead the Press Release
ATLANTA – Miguel Angel Hernandez and Maria del Pilar Moreira have been indicted on charges of conspiracy and healthcare fraud for filing fraudulent claims with Medicare and the Georgia Medicaid program.
“These defendants are charged with preying on senior citizens to steal millions of dollars in Medicare and Medicaid funds,” said United States Attorney Sally Quillian Yates. “They are now being held accountable for their outrageous conduct.”
“Health care business owners who try to make a quick buck by billing taxpayer-funded health care programs for services they never actually provided will instead pay a high price for their greed-fueled fraud,” said Derrick L. Jackson, Special Agent in Charge at the U.S. Department of Health and Human Services, Office of Inspector General in Atlanta.
Attorney General Sam Olens said, “The alleged scam by the defendants in this case is reprehensible. We work diligently to protect our Medicaid dollars, and we will not allow our finite funds to be used as a personal piggy bank for dishonest providers. We look forward to working with the U.S. Attorney’s Office in prosecuting this case.”
According to United States Attorney Yates, the charges and other information presented in court: Hernandez and Moreira owned and operated two medical clinics, East Point Medical Center in East Point, Ga., and Family First Medical Center, in Chamblee, Ga. From 2010 to 2013, the defendants allegedly submitted false claims to Medicare and Medicaid for medical services that were never provided to their clinics’ patients.
As part of the alleged scheme, the defendants transported patients in vans daily from locations including senior centers, with up to 60 patients arriving for treatment each day. Physical therapists sometimes led the patients in group exercises, but other times unlicensed aids supervised the patients. Although these patients received little medical treatment, the defendants allegedly submitted bills claiming falsely that each patient had received multiple physical therapy procedures. The defendants billed Medicare and Medicaid over $2 million for various individual physical therapy procedures they claimed to have provided to patients. A Medicare audit revealed that on occasion the defendants billed more than 24 hours’ worth of medical services in a single day.
The defendants also allegedly billed Medicare and Medicaid for numerous trigger point injections that were never given. Although some patients received a limited number of trigger point injections as a treatment for pain, the defendants billed for many more injections than were actually given. The defendants sometimes gave patients Vitamin B-12 injections and then billed them as trigger point injections. This part of the fraud was particularly profitable, because Medicare paid $0.66 for a B-12 shot whereas it paid $58.52 and $60.56 for two kinds of trigger point injections.
The defendants submitted the bills to Medicare and Medicaid under the name of a medical doctor who did not perform the services claimed. The doctor was in the clinic only a couple of days a week and saw a limited number of patients, yet his name appeared as the provider for most of the services billed by the defendants.
The defendants also designed and implemented promotions to attract patients to their clinic. They offered the patients massages, cash, gift cards, food, dollar prizes, and raffles for televisions, to induce the patients to visit the clinic on a regular basis. They also held Bingo games at the clinic and hosted holiday luncheons for the patients.
Three holiday luncheons are described in the indictment. On November 28, 2011, the defendants had patients driven to a Thanksgiving party at Big Daddy’s Dish restaurant in College Park, Ga. On December 30, 2011, patients were driven to a Christmas party at Piccadilly restaurant in Atlanta, Ga. On May 14, 2012, patients were driven to a Mother’s Day party again at Piccadilly restaurant. The defendants submitted bills to Medicare and Medicaid for physical therapy procedures and trigger point injections allegedly provided to the patients on the days of these parties, even though the patients received no medical services there. At the Thanksgiving and Christmas parties, the defendants held raffles and gave away televisions.
A federal grand jury indicted Hernandez, 58, and Moreira, 47, both formerly of Atlanta, Ga. The indictment charges the defendants with one count of conspiracy to commit healthcare fraud and 24 counts of healthcare fraud. The defendants’ whereabouts are currently unknown. Anyone with information about the location of these defendants is asked to contact the U.S. Department of Health and Human Services, Office of Inspector General toll-free at 1-888-476-4453, or submit this form: https://forms.oig.hhs.gov/hotlineforms/fugitive-form.aspx.
Members of the public are reminded that the indictment contains only allegations. The defendants are presumed innocent of the charges and it will be the government’s burden to prove the defendants’ guilt beyond a reasonable doubt at trial.
This case is being investigated by Special Agents of the U.S. Department of Health and Human Services, Office of the Inspector General, and Investigators from the Georgia Medicaid Fraud Control Unit and the Georgia Department of Community Health.
Assistant United States Attorney Stephen H. McClain and Georgia Assistant Attorney General Lyndie M. Freeman are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Information Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Maryland U. S. Attorney’s Office Collects over $27 Million in Civil and Criminal Actions for U.S. Taxpayers in FY2014Read the Press Release
Also Collected Over $17 Million in Asset Forfeitures
Baltimore, Maryland – U.S. Attorney Rod J. Rosenstein announced that financial collections in criminal and civil actions in Fiscal Year (FY) 2014 in the District of Maryland reached $27,364,401.50. The U.S. Department of Justice keeps statistics on a fiscal year basis, closing the books each September 30.Attorney General Eric Holder announced today that the Justice Department collected $24.7 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2014. The more than $24 billion in collections in FY 2014 represents nearly eight and a half times the appropriated $2.91 billion budget for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period.
“Every day, the Justice Department’s federal prosecutors and trial attorneys work hard to protect our citizens, to safeguard precious taxpayer resources, and to provide a valuable return on investment to the American people,” said Attorney General Holder. “Their diligent efforts are enabling us to achieve justice and recoup losses in virtually every sector of the U.S. economy. And this result shows the fruits of the Justice Department’s tireless work in enforcing federal laws; in protecting the American people from violent crime, national security threats, discrimination, exploitation, and abuse; and in holding financial institutions accountable for their roles in causing the 2008 financial crisis.”
“Thanks to the hard work and dedication of employees of the U.S. Attorney’s Office and our partner agencies, funds recovered far exceed the cost of operating the office,” said Maryland U.S. Attorney Rod J. Rosenstein. “We will continue to hold accountable anyone who seeks to profit from illegal activities.”
According to statistics from the Department of Justice, the U.S. Attorney’s Office for the District of Maryland in FY 2014 collected $9,928,842.84 in criminal debts owed to the U.S. government and to federal crime victims, including restitution, criminal fines and felony assessments.
The statistics show that the $17,435,558.66 collected in civil actions in Maryland, include affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected penalties imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws, and debts collected on behalf of several federal agencies, including the U.S. Department of Education, Housing and Urban Development, Health and Human Services, Internal Revenue Service, and Small Business Administration.
Additionally, the District of Maryland worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $151,698,129.29 in cases pursued jointly with these offices, including cases resolved under the False Claims Act on behalf of victim agencies such as the Department of Health and Human Services and the General Services Administration. These cases include the successful resolutions of United States ex rel. Thakur v. Ranbaxy Laboratories Limited, United States ex rel. Marcus v. Tumbleweed Communications Corp., United States ex rel. Ryan v. Trans 1, Inc. and an investigation of Foundation Health Services, Inc.
The U.S. Attorneys’ offices, along with the Department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the United States and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid directly to the victim, criminal fines and felony assessments are paid to the Department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
In addition, the U.S. Attorney’s Office for the District of Maryland, working with partner agencies and divisions, collected $17,337,191 in asset forfeiture actions in FY 2014. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.For more information, the Department’s Annual Statistical Reports on prior fiscal years can be found on the internet at: http://www.justice.gov/usao/reading_room/foiamanuals.html.
Man Sentenced to 151 Months in Federal Prison for Murder for HireRead the Press Release
Contact Person: Nathan Williams (843) 727-4381
Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that Edward Clinton Jones III, age 42, of Charleston, was sentenced to 151 months imprisonment for Use of Interstate Commerce Facilities in the Commission of Murder for Hire, 18 U.S.C. § 1958(a), and Solicitation of Murder for Hire, 18 U.S.C. § 373.
Jones pled guilty to the offenses on August 29, 2014. Facts set forth at his guilty plea and sentencing established that Jones solicited an individual to have his wife murdered so that Jones could collect the insurance proceeds from her death. This individual then went to the police, and an undercover officer was introduced to Jones. Jones then discussed details of having his wife killed with the undercover officer, and provided the undercover officer with a picture of his wife so they could properly identify her. Jones also discussed where his wife could be located, the type of vehicle she drove, where the murder could best be committed, and how he would divide the life insurance money with those he recruited to commit the murder.
Jones was sentenced by United States District Judge Richard M. Gergel. The convictions and sentences are the result of an investigation conducted by the City of Charleston Police Department and the Federal Bureau of Investigations. Assistant United States Attorney Nathan Williams of the Charleston office prosecuted the case.Man Pleads Guilty During Trial on Charge of Unlawfully Procuring CitizenshipRead the Press Release
PITTSBURGH - A resident of Allegheny County pleaded guilty after the first witness’s testimony in today’s trial in federal court in Pittsburgh on a charge of unlawful procurement of citizenship or naturalization, United States Attorney David J. Hickton announced today.
Lahbib Hannoune, 35, pleaded guilty to one count before United States District Judge Terrence F. McVerry.
In connection with the guilty plea, Hannoune falsely answered in the negative a question about whether he had committed a crime for which he had not yet been arrested during his naturalization proceedings. At the time he answered the question, Hannoune had already engaged in unlawful contact with a person represented to be a minor for the purpose of engaging in online video display of sexual conduct. The person was actually an undercover police officer. Hannoune procured naturalized U.S. citizenship based upon his answer.
Judge McVerry scheduled the sentencing for Feb. 11, 2015, at 9:30 a.m. The law provides for a maximum total sentence of ten years and a mandatory order rescinding his citizenship. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Paul E. Hull is prosecuting this case on behalf of the government.
The U.S. Department of Homeland Security Investigation-Immigration Customs Enforcement and the Office of Attorney General conducted the investigation that led to the prosecution of Lahbib Hannoune.