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19 November 2014
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.
Click here to view the information.
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.
Man Charged for Armed Robbery of Cleveland Heights StoreRead the Press Release
A federal grand jury returned a two-count indictment charging Willie L. Monroe, 32, of Cleveland, with one count of interference with commerce by means of robbery and one count of using and carrying a firearm during and in relation to a crime of violence.
The indictment alleges that Monroe, and other unknown individuals, attempted to rob a Family Dollar store in Cleveland Heights, Ohio, on September 23, 2014. It further alleges that Monroe and the other robbers carried and brandished a firearm during the incident.
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 violation. In all cases, the sentence will not exceed the statutory maximum and in most cases the sentence will be less than the maximum.
The case is being prosecuted by Assistant U.S. Attorney M. Kendra Klump following an investigation by the Federal Bureau of Investigation, Cleveland Division, and the Cleveland Heights Police 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.
Lincoln Man Sentenced for Harboring a FugitiveRead the Press Release
United States Attorney Deborah R. Gilg announced that on November 19, 2014, a Lincoln man was sentenced to two and one-half years (30 months) in prison for harboring a fugitive. Senior United States District Judge Richard G. Kopf ordered that Aaron James Jackson, 28, serve two years on supervised release after the completion of his prison term.
On March 20, 2014, members of the Metro Fugitive Task Force informed Aaron Jackson of the existence of a federal warrant for the arrest of his brother, Jason Robert Jackson. At that time, Aaron Jackson claimed not to know the whereabouts of his brother. However, information provided to law enforcement indicated that between March 20, 2014, and April 4, 2014, Aaron Jackson helped his brother avoid arrest.
This case was investigated by the Metro Fugitive Task Force, including officers and agents of the United States Marshals Service, the Lancaster County Sheriff’s Department, and the Lincoln Police Department.
Ladson Woman Charged with Bank FraudRead the Press Release
Contact Person: Beth Drake (803) 929-3000
Columbia, South Carolina ---- United States Attorney Bill Nettles stated that his office has filed an Information charging Yvondia “Susan” Young, age 57, with Bank Fraud in violation of 18 U.S.C. §1344 . The Information alleges that from 2007 to 2013, Young embezzled approximately $325,000 from her employer, the Heritage Trust Federal Credit Union, by issuing official credit union checks to make payments on her credit card bills.
The case was investigated by Special Agents with the Federal Bureau of Investigation. Assistant United States Attorney Eric Klumb is prosecuting the case.
The United States Attorney stated that the charges alleged in the Information are merely accusations and that all defendants are presumed innocent until and unless proven guilty.LaRose Man Pleads Guilty to Misuse of a Coast Guard LicenseRead the Press Release
U.S. Attorney Kenneth A. Polite announced that STEVEN BOURG, 51, of LaRose, Louisiana, pled guilty today to misuse of a federal license.
According to court documents, on or about October 10, 2012, the Coast Guard received information from Daigle Towing in Belle Chase, Louisiana, that BOURG had been hired by Daigle Towing to captain the uninspected towing vessel (UTV) Mason Ray but that BOURG had been found asleep while on watch. The Coast Guard checked the Marine Information for Safety and Law Enforcement database and found that since 2007 when he had voluntarily surrendered the license, BOURG had not possessed a merchant mariner license as issued by the Coast Guard and as required to captain a towing vessel.
The investigation revealed that BOURG submitted an altered merchant mariner license with his application to Daigle Towing. The license was in the name of BOURG, but listed the issuance date as January 2009 and the expiration date as January 2014. BOURG had not been issued a license nor had his license renewed in January 2009. As a result of BOURG’s submission of the altered license, he had been employed by Daigle Towing from September 19, 2012, until September 25, 2012. Prior to being employed by Daigle Towing, BOURG had used the altered license to apply and get employment with Triple C Towing, LLC, in Houma, Louisiana. BOURG applied to Triple C Towing on or about July 19, 2011, and ended his employment on or about February 1, 2012.
U.S. District Court Judge Kurt D. Engelhardt scheduled sentencing for February 4, 2015. BOURG faces a maximum of five years imprisonment and/or a maximum fine of $250,000.
U.S. Attorney Polite praised the work of the Coast Guard Investigative Service’s work on this matter. Assistant United States Attorney Emily K. Greenfield prosecuted the case.
Killeen Man Sentenced to Federal Prison for Defrauding Soldiers in Loan ScamRead the Press Release
In Waco today, 21-year-old Daniel Lee Rosales of Killeen, TX, was sentenced to two years in federal prison for stealing money from U.S. Army soldiers though a fraudulent loan scam announced United States Attorney Robert Pitman and Federal Bureau of Investigation Special Agent in Charge Christopher Combs, San Antonio Division.
In addition to the prison term, United States District Judge Walter S. Smith, Jr. ordered that Rosales pay $28,180 restitution to his victims and be placed on supervised release for a period of five years after completing his prison term.
On September 4, 2014, Rosales pleaded guilty to one count of false statement on loan or credit application. By pleading guilty, Rosales admitted that in May 2013, he posed as a Sergeant in the First Cavalry Unit at Fort Hood to befriend new Army enlistees and encourage them to apply for signature loans at area banks in order to build up their credit. Rosales further admitted to instructing them to place false residential and marital status information on loan applications in order to increase the loan amount enlistees could receive from the institution. After the loans were obtained and the checks cashed, Rosales insisted on retaining the majority of the loan proceeds, in his words, “for safekeeping.”
This investigation was conducted by the FBI and prosecuted by Assistant United States Attorney Mark Frazier.
Kansas City Man found Guilty of Defrauding Elderly VictimsRead the Press Release
United States Attorney Deborah R. Gilg announced that Thomas Whitlow, 53, formerly of Kansas City, Kansas, was convicted by a federal jury on November 18, 2014, of Conspiracy to Commit Wire Fraud and Wire Fraud, after a three-day trial.
Whitlow was indicted, along with four co-defendants, on the conspiracy and wire fraud charges in February of 2014. He is scheduled for sentencing on February 13, 2015. The maximum penalty that could be imposed is up to 20 years in prison, three years of supervised release, restitution to the victims, and a fine of up to $250,000. Three of Mr. Whitlow’s co-defendants have already pled guilty and have been sentenced, with a fourth scheduled to be sentenced on November 20, 2014.
Evidence presented at trial indicated that between May of 2011 and November of 2013, Whitlow was a member of a group which devised a conspiracy scheme to defraud elderly victims and to obtain money. As part of the scheme, Mr. Whitlow contacted the elderly victims, purporting to be a family relative, or a person acting on behalf of that relative. He then solicited money from the elderly victims under a false pretense, such as a motor vehicle accident or some other type of fabricated emergency. The victims were then instructed to obtain a money order and to have it sent to a specific person. The victims purchased money orders under the misguided notion that they were helping a family member. Over the course of this conspiracy, Whitlow and his co-defendants, obtained approximately $20,000.00 from their victims.
At trial, witnesses testified that Whitlow directed co-conspirators to send and receive proceeds of the scheme through wire transfers, including wire transfers conducted in the District of Nebraska. Once the wire transfers were received by the co-conspirators, the money would then be provided to Whitlow or used to pay expenses of Whitlow.
The matter was investigated by Homeland Security Investigations, United States Department of Homeland Security and the Lincoln Police Department.
Kansas City Man Sentenced to 216 Months for Trafficking Crack Cocaine Near PlaygroundRead the Press Release
KANSAS CITY, KAN. - A man from Kansas City, Mo., was sentenced Wednesday to 216 months in federal prison for trafficking crack cocaine near a playground in Kansas City, Kan., U.S. Attorney Barry Grissom said.
Arrick Warren, 29, Kansas City, Mo., pleaded guilty to two counts of distributing crack cocaine within 1,000 feet of Bethany Park playground in Kansas City, Kan., one count of possession with intent to distribute crack cocaine within 1,000 feet of the playground, and one count of maintaining a residence within 1,000 feet of the playground in furtherance of drug trafficking.
Warren initially was charged in June 2013 in U.S. District Court in Kansas City, Kan. A criminal complaint alleged investigators with the Kansas City, Kan., Police Department arranged to make two controlled buys of crack cocaine from Warren, who was dealing drugs from a residence at 1026 Reynolds Ave., in Kansas City, Kan. On Jan., 16, 2013, investigators served a search warrant at the house, where they seized drugs, more than $25,000 in cash and a .45 caliber pistol.
Grissom commended the Kansas City, Kan., Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives and Special Assistant U.S. Attorney Erin Tomasic for their work on the case.
Justice Department’s Civil Rights Lawsuit Leads to Improved Conditions at Terrebonne Parish Juvenile Detention CenterRead the Press Release
Today, the Justice Department announced that its civil rights lawsuit involving the Terrebonne Parish Juvenile Detention Center in Houma, Louisiana, has resulted in improved conditions for the youth confined in the facility, and it asked the federal court to dismiss the case. Reforms Terrebonne Parish undertook over the past three years resulted in increased protections to prevent sexual abuse of youth by staff; reduce the use of isolation, inappropriate use of force and restraints by staff; to reduce physical abuse of youth by other youth; and to reduce suicide and other self-harming behavior.
In 2011, the department notified Terrebonne Parish officials that conditions at the detention center violated the constitutional rights of confined youth. Later that year, the department and Terrebonne Parish officials reached a settlement agreement to implement 43 specific substantive remedial measures to reform conditions at the facility. The parties appointed an independent monitor who closely monitored reform efforts and provided technical assistance to facility officials.
Although the settlement agreement pre-dated the Attorney General’s finalization of the National Standards to Prevent, Detect, and Respond to Prison Rape (PREA Standards), the required remedial measures incorporated several provisions eventually set forth in those Standards. For example, Terrebonne Parish began complying with PREA’s minimum staffing ratio requirements, ensuring that unannounced supervisory rounds were periodically conducted, established a zero-tolerance policy for sexual abuse, conducted post-incident reviews, ensured that all allegations of abuse were promptly investigated and referred to appropriate external investigative agencies, ensured that staff found to be violating agency policies were subject to formal discipline and trained all staff on sexual abuse identification and prevention practices.
In addition to remedial measures designed to eliminate sexual abuse of youth within the facility, the settlement also required several remedial measures to increase protections against suicide and other self-harming behavior, including a reduction in the facility’s over-reliance on isolation. For example, the settlement prohibited the routine use of isolation rooms for youth on suicide precautions, prohibited the use of isolation for all youth except where youth pose an imminent threat to themselves or others (or in rare cases where less severe disciplinary measures have proven ineffective), prohibited the use of any disciplinary isolation longer than 72 hours except in extraordinary circumstances and ensured that any use of isolation be accompanied by strict safeguards such as frequent youth welfare checks and frequent visits by clinicians. During the remedial action period, the facility proactively implemented an effective incentive-based behavior management program that rewarded youth for positive and pro-social behavior. In addition, the facility implemented and trained staff on Safe Crisis Management – a program for preventing and responding to disruptive behavior by youth. Implementation of these programs substantially reduced the frequency of serious incidents at the facility, and enabled facility-leadership to eliminate the use of sanctioned disciplinary isolation – an outcome that exceeded settlement agreement requirements.
In the spring of 2014, the monitor issued her fifth compliance report indicating that Terrebonne Parish had achieved substantial compliance with all required remedial measures in the settlement agreement. The department concurs with the monitor’s assessment.
During the course of the department’s investigation, including the enforcement period, Terrebonne Parish officials and the facility director have remained highly cooperative and steadfast in their commitment to improving conditions of confinement in the facility.
“We commend Terrebonne Parish for its commitment to protecting youth held in custody,” said Acting Assistant Attorney General Vanita Gupta for the Civil Rights Division. “These improvements will help to ensure the safety and security of all youth in the facility in a sustainable manner.”
“Rehabilitation of the district’s youth is the principal goal of juvenile justice and we are pleased that Terrebonne Parish has been diligent in remedying its facility,” said U.S. Attorney Kenneth A. Polite for the Eastern District of Louisiana. “These changes will help foster an environment where our at-risk youth can exit the juvenile justice system ready to positively contribute to their communities.”
The department initiated this investigation under the Violent Crime Control and Law Enforcement Act of 1994, which gives the department authority to seek a remedy for a pattern or practice of conduct that violates the constitutional or federal statutory rights of youth in juvenile justice institutions. Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt.
Justice Department's Civil Rights Lawsuit Leads to Improved Conditions at Terrebonne Parish Juvenile Detention CenterRead the Press Release
The Department Moves Court to Dismiss Civil Rights Case, Citing Reforms
Today, the Justice Department announced that its civil rights lawsuit involving the Terrebonne Parish Juvenile Detention Center in Houma, Louisiana, has resulted in improved conditions for the youth confined in the facility, and it asked the federal court to dismiss the case. Reforms Terrebonne Parish undertook over the past three years resulted in increased protections to prevent sexual abuse of youth by staff; reduce the use of isolation, inappropriate use of force and restraints by staff; to reduce physical abuse of youth by other youth; and to reduce suicide and other self-harming behavior.
In 2011, the department notified Terrebonne Parish officials that conditions at the detention center violated the constitutional rights of confined youth. Later that year, the department and Terrebonne Parish officials reached a settlement agreement to implement 43 specific substantive remedial measures to reform conditions at the facility. The parties appointed an independent monitor who closely monitored reform efforts and provided technical assistance to facility officials.
Although the settlement agreement pre-dated the Attorney General’s finalization of the National Standards to Prevent, Detect, and Respond to Prison Rape (PREA Standards), the required remedial measures incorporated several provisions eventually set forth in those Standards. For example, Terrebonne Parish began complying with PREA’s minimum staffing ratio requirements, ensuring that unannounced supervisory rounds were periodically conducted, established a zero-tolerance policy for sexual abuse, conducted post-incident reviews, ensured that all allegations of abuse were promptly investigated and referred to appropriate external investigative agencies, ensured that staff found to be violating agency policies were subject to formal discipline and trained all staff on sexual abuse identification and prevention practices.
In addition to remedial measures designed to eliminate sexual abuse of youth within the facility, the settlement also required several remedial measures to increase protections against suicide and other self-harming behavior, including a reduction in the facility’s over-reliance on isolation. For example, the settlement prohibited the routine use of isolation rooms for youth on suicide precautions, prohibited the use of isolation for all youth except where youth pose an imminent threat to themselves or others (or in rare cases where less severe disciplinary measures have proven ineffective), prohibited the use of any disciplinary isolation longer than 72 hours except in extraordinary circumstances and ensured that any use of isolation be accompanied by strict safeguards such as frequent youth welfare checks and frequent visits by clinicians. During the remedial action period, the facility proactively implemented an effective incentive-based behavior management program that rewarded youth for positive and pro-social behavior. In addition, the facility implemented and trained staff on Safe Crisis Management – a program for preventing and responding to disruptive behavior by youth. Implementation of these programs substantially reduced the frequency of serious incidents at the facility, and enabled facility-leadership to eliminate the use of sanctioned disciplinary isolation – an outcome that exceeded settlement agreement requirements.
In the spring of 2014, the monitor issued her fifth compliance report indicating that Terrebonne Parish had achieved substantial compliance with all required remedial measures in the settlement agreement. The department concurs with the monitor’s assessment.
During the course of the department’s investigation, including the enforcement period, Terrebonne Parish officials and the facility director have remained highly cooperative and steadfast in their commitment to improving conditions of confinement in the facility.
“We commend Terrebonne Parish for its commitment to protecting youth held in custody,” said Acting Assistant Attorney General Vanita Gupta for the Civil Rights Division. “These improvements will help to ensure the safety and security of all youth in the facility in a sustainable manner.”
“Rehabilitation of the district’s youth is the principal goal of juvenile justice and we are pleased that Terrebonne Parish has been diligent in remedying its facility,” said U.S. Attorney Kenneth A. Polite for the Eastern District of Louisiana. “These changes will help foster an environment where our at-risk youth can exit the juvenile justice system ready to positively contribute to their communities.”
The department initiated this investigation under the Violent Crime Control and Law Enforcement Act of 1994, which gives the department authority to seek a remedy for a pattern or practice of conduct that violates the constitutional or federal statutory rights of youth in juvenile justice institutions. Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt.
Justice Department Files Enforcement Actions to Shut Down "Psychic" Mail Fraud SchemesRead the Press Release
The United States filed civil complaints in U.S. District Court for the Eastern District of New York today against individuals and entities alleged to be running two related multimillion-dollar mail fraud schemes. The United States also filed a motion seeking a temporary restraining order and a preliminary injunction to immediately put a stop to the ongoing schemes.
According to the complaints, the defendants operate two mail fraud schemes in which they send solicitation letters purportedly written by world-renowned psychics to consumers through the U.S. mail. The first scheme, operated by Destiny Research Center and the Canadian company Infogest Direct Marketing, sends direct mail solicitations allegedly written by psychics Maria Duval and Patrick Guerin. The second scheme, operated by Christine Moussu through New York companies CLGE Inc. and I.D. Marketing Solutions Inc., sends direct mail solicitations allegedly written by psychics David Phild, Sandra Rochefort, Antonia Donera and Nicholas Chakan.
“The complaints filed today charge that the companies and individuals made blatant misrepresentations in order to reap financial gain by scamming thousands of Americans, many of whom were elderly and in a vulnerable financial condition,” said Acting Assistant Attorney General Joyce R. Branda for the Justice Department’s Civil Division. “Our job at the Justice Department is to put a stop to fraud schemes that seek to take advantage of vulnerable Americans.”
The complaints allege that in the letters, the purported psychics state that they are contacting the recipient based on a specific vision or psychic reading revealing that the recipient has the opportunity to dramatically improve his or her financial circumstance, including claims of winning millions in the lottery. The solicitation letters appear personalized, repeatedly referring to the recipient by first name and often containing portions that appear handwritten. The solicitations urge victims to purchase various products and services in order to ensure that the foreseen good fortune comes to pass. The complaints allege that in reality, the solicitations are identical, mass- produced form letters. Victims responded to the solicitations by completing a form and submitting a payment, usually around $20 to $50, via U.S. mail. Victims often also wrote personal, handwritten letters back to the purported psychics, which were never opened, and received worthless, mass-produced trinkets and further solicitations after sending these payments.
“Relying on superstition and fear, the defendants defrauded tens of millions of dollars from thousands of vulnerable citizens,” said U.S. Attorney Loretta Lynch for the Eastern District of New York. “We have, and will continue to, use all means at our disposal to protect our citizens from such schemes to defraud.”
“These mass solicitations containing purportedly personalized messages to unsuspecting victims were blatant fraud,” said Acting Inspector in Charge Troy Raper of the U.S. Postal Inspection Service's Criminal Investigation Group. “Postal Inspectors aggressively investigate any operations that use the U.S. mail to fleece unsuspecting victims.”
Metro Data Management Inc., doing business as Data Marketing Group Ltd., a company on Long Island, New York, along with its president, Keitha Rocco, performed “caging” services on behalf of both mail fraud schemes. According to the complaint, these services consisted of processing victim payments and maintaining databases of consumers who responded to the fraudulent solicitations. The government alleges that Data Marketing Group processed as much as $500,000 in victim payments in a given two-week period for the Destiny Research Center scheme, resulting in annual gross receipts of at least $13 million. The CLGE scheme brought in annual revenue of $1.5 to $2 million. Evidence presented by the United States in support of its motion indicates that victims of the mail fraud schemes were elderly, ill and in perilous financial condition.
The government is seeking an injunction under the Anti-Fraud Injunction Statute immediately shutting down the fraudulent schemes in order to protect victims from further harm. The injunctions sought by the United States would enjoin the defendants from using the mail to distribute the fraudulent solicitations or to collect victim payments, and from selling lists of consumers who have responded to the solicitations. The injunctions would also authorize the U.S. Postal Service to detain any outgoing solicitations mailed by the defendants and any incoming responses to solicitations.
The Justice Department’s case is being handled by the Civil Division’s Consumer Protection Branch and the U.S. Postal Inspection Service, in coordination with the U.S. Attorney’s Office in the Eastern District of New York.
The claims made in the complaints are allegations only, and there has been no determination of liability.
Justice Department Files Enforcement Actions to Shut Down “Psychic” Mail Fraud SchemesRead the Press Release
WASHINGTON - The United States filed civil complaints in U.S. District Court for the Eastern District of New York today against individuals and entities alleged to be running two related multimillion-dollar mail fraud schemes. The United States also filed a motion seeking a temporary restraining order and a preliminary injunction to immediately put a stop to the ongoing schemes.
According to the complaints, the defendants operate two mail fraud schemes in which they send solicitation letters purportedly written by world-renowned psychics to consumers through the U.S. mail. The first scheme, operated by Destiny Research Center and the Canadian company Infogest Direct Marketing, sends direct mail solicitations allegedly written by psychics Maria Duval and Patrick Guerin. The second scheme, operated by Christine Moussu through New York companies CLGE Inc. and I.D. Marketing Solutions Inc., sends direct mail solicitations allegedly written by psychics David Phild, Sandra Rochefort, Antonia Donera and Nicholas Chakan.
“The complaints filed today charge that the companies and individuals made blatant misrepresentations in order to reap financial gain by scamming thousands of Americans, many of whom were elderly and in a vulnerable financial condition,” said Acting Assistant Attorney General Joyce R. Branda for the Justice Department’s Civil Division. “Our job at the Justice Department is to put a stop to fraud schemes that seek to take advantage of vulnerable Americans.”
The complaints allege that in the letters, the purported psychics state that they are contacting the recipient based on a specific vision or psychic reading revealing that the recipient has the opportunity to dramatically improve his or her financial circumstance, including claims of winning millions in the lottery. The solicitation letters appear personalized, repeatedly referring to the recipient by first name and often containing portions that appear handwritten. The solicitations urge victims to purchase various products and services in order to ensure that the foreseen good fortune comes to pass. The complaints allege that in reality, the solicitations are identical, mass- produced form letters. Victims responded to the solicitations by completing a form and submitting a payment, usually around $20 to $50, via U.S. mail. Victims often also wrote personal, handwritten letters back to the purported psychics, which were never opened, and received worthless, mass-produced trinkets and further solicitations after sending these payments.
“Relying on superstition and fear, the defendants defrauded tens of millions of dollars from thousands of vulnerable citizens,” said U.S. Attorney Loretta Lynch for the Eastern District of New York. “We have, and will continue to, use all means at our disposal to protect our citizens from such schemes to defraud.”
“These mass solicitations containing purportedly personalized messages to unsuspecting victims were blatant fraud,” said Acting Inspector in Charge Troy Raper of the U.S. Postal Inspection Service's Criminal Investigation Group. “Postal Inspectors aggressively investigate any operations that use the U.S. mail to fleece unsuspecting victims.”
Metro Data Management Inc., doing business as Data Marketing Group Ltd., a company on Long Island, New York, along with its president, Keitha Rocco, performed “caging” services on behalf of both mail fraud schemes. According to the complaint, these services consisted of processing victim payments and maintaining databases of consumers who responded to the fraudulent solicitations. The government alleges that Data Marketing Group processed as much as $500,000 in victim payments in a given two-week period for the Destiny Research Center scheme, resulting in annual gross receipts of at least $13 million. The CLGE scheme brought in annual revenue of $1.5 to $2 million. Evidence presented by the United States in support of its motion indicates that victims of the mail fraud schemes were elderly, ill and in perilous financial condition.
The government is seeking an injunction under the Anti-Fraud Injunction Statute immediately shutting down the fraudulent schemes in order to protect victims from further harm. The injunctions sought by the United States would enjoin the defendants from using the mail to distribute the fraudulent solicitations or to collect victim payments, and from selling lists of consumers who have responded to the solicitations. The injunctions would also authorize the U.S. Postal Service to detain any outgoing solicitations mailed by the defendants and any incoming responses to solicitations.
The Justice Department’s case is being handled by the Civil Division’s Consumer Protection Branch and the U.S. Postal Inspection Service, in coordination with the U.S. Attorney’s Office in the Eastern District of New York.
The claims made in the complaints are allegations only, and there has been no determination of liability.
Justice Department Collects More Than $24 Billion in Civil and Criminal Cases in Fiscal Year 2014Read the Press Release
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. Attorneys’ 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.”
The amount is more than three times the $8 billion collected in FY 2013. The largest civil collections were from affirmative civil enforcement cases, many of which were brought under the whistleblower provisions of the False Claims Act, in which the United States recovered government money lost to fraud or other misconduct or collected from individuals and/or corporations for violations of federal health, safety, civil rights, tax, 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.
The total includes all monies collected as a result of Justice Department-led enforcement actions and negotiated civil settlements. It includes approximately $13.7 billion in payments made directly to the Justice Department, and $11 billion in indirect payments made to other federal agencies, states and other designated recipients.
In measuring collections recovered in FY 2014, this figure necessarily includes some cases that were resolved in previous years but the proceeds of which were collected in FY 2014.
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.
Department collections also included hundreds of millions in fines from an ongoing investigation into institutions involved in the manipulation of the London Interbank Offered Rate (LIBOR), including UBS Securities Japan Co. Ltd., and RBS Securities Japan Ltd., a wholly owned subsidiary of The Royal Bank of Scotland plc (RBS). Hundreds of millions in additional collections resulted from the department’s ongoing investigation into international price-fixing and bid rigging in the auto parts industry. For instance, Bridgestone Corp., a company based in Tokyo, Japan, agreed to plead guilty and to pay a criminal fine for its role in a conspiracy to fix prices of automotive anti-vibration rubber parts installed in cars sold in the United States and elsewhere.
The department continued to make polluters pay to safeguard the environment and the taxpayer, collecting several multi-million dollar payments in connection with environmental cleanups. This included a May 2014 settlement with Titanium Metals Corporation (TIMET) under which the titanium-parts manufacturer paid $14 million in civil penalties under the Toxic Substances Control Act (TSCA) and the Resource Conservation and Recovery Act (RCRA) and agreed to perform an extensive cleanup following the unauthorized manufacture and disposal of PCBs (polychlorinated biphenyls) at its manufacturing facility in Henderson, Nevada.
The department also collected millions in criminal penalties after resolving investigations into violations of the Foreign Corrupt Practices Act (FCPA). For instance, Diebold Inc., an Ohio-based provider of integrated self-service delivery and security systems, pleaded guilty to violating the FCPA by bribing government officials in China and Indonesia and falsifying records in Russia in order to obtain and retain contracts to provide ATMs to state-owned and private banks in those countries.
Jury Convicts Millvale Police Officer on Civil Rights ChargeRead the Press Release
PITTSBURGH - After deliberating approximately four hours, a federal jury found Nicole Murphy guilty of deprivation of rights under color of law, United States Attorney David J. Hickton announced today.
U.S. Attorney Hickton said, “Law enforcement officers are sworn to uphold and obey the law. Nicole Murphy did neither when she used a dangerous weapon to subdue a handcuffed defendant, thereby violating his civil rights.”
Murphy, 30, was tried before United States District Judge Arthur J. Schwab in Pittsburgh, Pennsylvania.
According to Assistant United States Attorneys Carolyn J. Bloch and Cindy Chung, who prosecuted the case, the evidence presented at trial established that Murphy, on Sept. 21, 2012, while acting under color of law as a police officer with the Millvale Police Department, deprived an individual identified as Thomas Smith of the constitutional right to be free from unreasonable force, by deploying a taser in both drive and probe-stun modes on Smith’s person while he was handcuffed behind his back and seated on the floor of the squad room at the Millvale Police Department.
Judge Schwab scheduled sentencing for March 13, 2015, at 10 a.m. The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued defendant on bond.
The Federal Bureau of Investigation conducted the investigation that led to the prosecution of Murphy.
Jury Convicts KC Man of Bank Robbery, Attempted Casino RobberyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was convicted by a federal trial jury today of robbing a bank and attempting to rob a casino.
James T. Smith, 62, of Kansas City, was found guilty of both counts contained in an April 29, 2014 federal indictment.
Evidence introduced during the trial indicated that Smith used a demand note to steal $1,053 from Commerce Bank, 118 W. 47th Street, Kansas City, Mo., on May 18, 2013. Just after midnight the next morning, Smith threatened a cashier in an unsuccessful attempt to rob the Isle of Capri Casino, 1800 E. Front St., Kansas City, Mo. In both instances, Smith used a demand note and verbally threatened to blow up the bank and casino with nitroglycerin.
Following the presentation of evidence, the jury in the U.S. District Court in Kansas City, Mo., deliberated for about one and a half hours before returning the verdicts to U.S. District Judge Dean Whipple, ending a trial that began Monday, Nov. 17, 2014.
Under federal statutes, Smith is subject to a sentence of up to 40 years in federal prison without parole, plus a fine up to $500,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorneys Christina Y. Tabor and Justin Davids. It was investigated by the FBI, the Kansas City, Mo., Police Department and the Missouri State Highway Patrol, Gaming Division.Jury Convicts Dayton Man of Buying Stolen Identities Online, Filing False Income Tax Returns, and Access Device FraudRead the Press Release
DAYTON – A United States District Court jury convicted Lance Ealy, 28, of Dayton, of buying stolen identities online and using the identities to file more than 150 fraudulent federal income tax returns seeking refunds to which he was not entitled.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Kathy Enstrom, Special Agent in Charge, Internal Revenue Service Criminal Investigation (IRS), and Mark Porter, Special Agent in Charge, U.S. Secret Service, announced the verdict reached today which was returned following an 11-day trial that began on November 3 before U.S. District Judge Michael Barrett.
According to court testimony, between approximately January 2013 and October 2013, Ealy electronically filed at least 150 fraudulent federal income tax returns, including returns filed using the personal information of others that he had unlawfully acquired from an illicit online source. Ealy opened dozens of bank accounts at multiple financial institutions using the names and social security numbers of other individuals – without their knowledge or permission – in order to electronically deposit the fraudulent tax refunds.
The jury convicted Ealy of 46 charges, including one count of illegally possessing 15 or more unauthorized access devices, 11 counts of filing false claims for income tax refunds with the IRS, 14 counts of wire fraud, 14 counts of aggravated identity theft, one count of mail fraud, and one count of using unauthorized access devices to obtain $1,000 or more in a one-year period. An access device includes things such as payment cards and bank account numbers used to access financial accounts.
Ealy faces up to 10 years in prison on each count of possessing 15 or more unauthorized access devices with intent to defraud and using unauthorized access devices to obtain items of $1,000 or more in value; up to five years in prison on each count of filing false claims for income tax refunds with the IRS; up to 20 years in prison on each count of wire fraud and each count of mail fraud; and mandatory two-year sentences on each count of aggravated identity theft that must run consecutive to whatever sentence may ultimately be handed down. Each count of conviction also carries a fine of up to $250,000.
Ealy was initially charged in a federal complaint filed on October 28, 2013 following an investigation by Secret Service agents that revealed that Ealy had purchased stolen identities from an illicit online source. A federal grand jury initially indicted Ealy in November 2013, charging him with one count of knowingly possessing 15 or more access devices with intent to defraud.
“Individuals who commit refund fraud and identity theft of this magnitude deserve to be punished to the fullest extent of the law,” stated Kathy A. Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. “We, along with our law enforcement partners and the United States Attorney's Office, continue to do our part in protecting the integrity of the tax system and those individuals whose identities were stolen.”
Ealy became a fugitive this past weekend, after he removed his electronic monitoring device and fled while under bond conditions. Judge Barrett has issued a warrant for Ealy’s arrest. Ealy remains at large and the public is asked to contact the United States Marshal at 937-225-2917 with reliable information regarding Ealy’s whereabouts.
U.S. Attorney Stewart commended the investigation of this case by Secret Service and IRS-Criminal Investigation agents and Assistant U.S. Attorneys Alex R. Sistla and Andrew J. Hunt, who are prosecuting the case.
International Drug Dealer Sentenced to Fifteen YearsRead the Press Release
RALEIGH – United States Attorney Thomas G. Walker announced that in federal court, Chief United States District Judge James C. Dever III sentenced ANDREW WAYNE LANDELLS , 47, of Jamaica, to 180 months imprisonment, followed by three years of supervised release.
LANDELLS was named in a three count, Criminal Indictment filed on May 15, 2013 charging him with one count of Conspiracy to Launder Monetary Instruments and two counts of Money Laundering and Aiding and Abetting. On September 30, 2013, LANDELLS pled guilty to Count 1, Conspiracy to Launder Monetary Instruments in violation of Title 18, United States Code, Section 1956(h).
According to the investigation, ANDREW WAYNE LANDELLS directed the activities of his estranged wife, and at least seven coconspirators to assist him in the trafficking of marijuana and laundering of drug proceeds from 2002 until April 2012. The investigation revealed that from 2002 to 2012, the defendant was involved in the trafficking of marijuana from Mexico throughout, New York, Florida, Virginia, Arizona, and North Carolina. The defendant then used the drug proceeds to purchase luxury vehicles and residences, and to rent residences in others’ names. LANDELLS used numerous residences across the country to store the drugs. Additionally, he maintained storage units and United Parcel Service mail boxes in Raleigh, North Carolina; West Palm Beach, Florida; Cary, North Carolina; and Wellington, Florida, for purposes of storing illegal substances and furthering his illegal activities.
In order to disguise the source of the proceeds from his illegal activities, LANDELLS also operated sham companies purporting to be in the candle manufacturing business. He established the following business fronts to facilitate the laundering of drug proceeds: Olufina Candle in Durham; LuGhan in Durham; Heru in Durham; and Botanica Olomi in Raleigh. To date, there is no evidence of any actual revenue from candle manufacturing. LANDELLS used numerous aliases, dates of birth, Social Security numbers, driver’s licenses, and passports to avoid detection by law enforcement as he was wanted by authorities in multiple states, having escaped from a hospital in New York following an arrest for passport fraud when he was intercepted on a flight from England to the United States using a fraudulent passport in 1999. LANDELLS had also been federally indicted in the Eastern District of Virginia on drug charges in 1989; however those charges were eventually dismissed due to the inability to locate LANDELLS. Furthermore, he has pending charges in New York for felonious counts of Criminal Possession of a Weapon, Possession of a Loaded Firearm, and Reckless Endangerment. Agents recovered multiple alias identifications for LANDELLS in two storage units in Raleigh. Co-conspirators in the scheme further reported that LANDELLS obtained, used, and also provided them with false driver’s licenses, birth certificates, and Social Security numbers to facilitate the offense.
At sentencing, LANDELLS was held accountable for the distribution of up to 1,000 kilograms of marijuana. He was held accountable for laundering money from drug proceeds through the straw purchase of at least seven pieces of real property, thirteen motor vehicles, and four businesses, all with a combined value of over $1,000,000.00. Additionally, LANDELLS possessed firearms during his drug-trafficking activities, maintained premises to store marijuana for the purpose of distribution and the Court found that he maintained an aggravating role in the offense by directing the activities of more than five participants to assist him in the trafficking of marijuana and laundering of drug proceeds from 2002 to April 2012.
As a result of this case, the Government has seized and forfeited a 2005 BMW motorcycle, 2004 BMW 645 automobile, 2006 Bentley Flying Spur, 2011 Mercedes Benz C300W, 2006 Rolls Royce Phantom, a home located at 12716 Richmond Run Drive in Raleigh, NC, custom candle-making equipment, a Yamaha Clavinova piano and over $51,700 in United States currency, which has allowed the United States to recover approximately $1,298,004.64 to date. As part of the sentence, the Court entered a money judgment against LANDELLS in the amount of $1,000,000 and forfeited his interest in several properties located in New Jersey and Florida.
Investigation of this case was conducted by the Drug Enforcement Administration and Internal Revenue Service Criminal Investigation as part of the High Intensity Drug Trafficking Area (HIDTA) initiative. The United States Marshals Service assisted with the forfeiture of assets.
“Today’s sentencing illustrates that while the road to justice may sometimes be long, it is certain”, said Thomas J. Holloman, III, Special Agent in Charge, IRS Criminal Investigation. “LANDELLS operated as a high-level drug trafficker for many years, reaping the profits of his illegal activity, and now the time for him to pay for his crimes has arrived. The tireless efforts of the case agents and our law enforcement partners in bringing LANDELLS to justice, and recovering the assets he obtained through his criminal activity are to be commended.”
DEA ASAC, William F. Baxley commented on the sentencing, “Drug traffickers utilize a multitude of sophisticated methods in which to hide their assets. One of DEA’s highest priorities is to relentlessly pursue and destroy these drug trafficking and money laundering organizations. This global drug trafficking and money laundering investigation was a success because of the local, regional, national, and foreign law enforcement partnerships and our commitment to bring this organization to justice in the United States.”
Special Assistant United States Attorney Augustus Willis represented the government. Mr. Willis is a prosecutor with the District 3-B District Attorney’s Office encompassing Carteret, Craven and Pamlico Counties. District Attorney Scott Thomas has assigned him to the United States Attorney’s Office to prosecute federal Organized Crime Drug Enforcement Task Force criminal matters. Mr. Wills’ position is funded through a grant provided by the Governor’s Crime Commission. Assistant United States Attorneys Joshua Royster and Steve West assisted with the forfeiture proceedings.
Information: Federal Court ArraignmentsRead the Press Release
The United States Attorney’s Office announced that those persons listed below were arraigned before the U.S. Magistrate and the indictments handed down by the Grand Jury unsealed. Appearing before U.S. Magistrate Judge Strong in Great Falls on November 20, 2014, and entering pleas of Not Guilty were:
• HARVEY RICHARD BRANDEN, a 37-year-old resident of Kalispell, appeared on charges of conspiracy to possess with intent to distribute methamphetamine. If convicted of the charge contained in the indictment, BRANDEN faces life in prison, $10,000,000 in fines and 5 years supervised release. The investigation is a cooperative effort between the Russell Country Drug Task Force which includes law enforcement officers from the Great Falls Police Department, Cascade County Sheriff’s Office, Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, Homeland Security Investigations and the U.S. Border Patrol, as well as the Montana Division of Criminal Investigation, Tri-Agency Task Force and U.S. Internal Revenue Service. PACER Case Reference: 14-96
• THEODORA ANN MORSETTE, a 60-year-old resident of Box Elder, appeared on charges of theft from an Indian tribal government receiving federal funds, theft from an Indian tribal organization and theft from a health care facility. If convicted of the most serious charges contained in the indictment, MORSETTE faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the U.S. Department of Health and Human Services Office of Inspector General. PACER Case Reference: 14-99
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system so that you stay current and not miss any important developments in the case.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court's calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
Information: Federal Court ArraignmentsRead the Press Release
The United States Attorney's Office announced that those persons listed below were arraigned before the U.S. Magistrate and the indictments handed down by the Grand Jury unsealed.
Appearing before U.S. Magistrate Judge Ostby in Billings on November 19, 2014, and entering pleas of Not Guilty were:
KELLY STEEN, a 50-year-old resident of Baker, appeared on charges of transportation of hazardous materials without placards and transportation of hazardous materials with improper transportation documents. If convicted of the most serious charge contained in the indictment, STEEN faces 5 years in prison and $250,000 in fines. The case was investigated by the Environmental Protection Agency and the Department of Transportation Office of Inspector General. PACER Case Reference: 14-111
Appearing before U.S. Magistrate Judge Ostby in Billings on November 17, 2014, and entering pleas of Not Guilty were:
THOMAS EDELMAN, a 33-year-old resident of Bridger, appeared on charges of felon in possession of firearm, fugitive in possession of firearms, and possession of stolen firearms. If convicted of the most serious charges contained in the indictment, EDELMAN faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. PACER Case Reference: 14-104
Appearing before U.S. Magistrate Judge Ostby in Billings on November 14, 2014, and entering pleas of Not Guilty were:
EDWIN CHARLES FALCON, a 54-year-old resident of Poplar, appeared on charges of conspiracy to possess with intent to distribute methamphetamine, possession with intent to distribute methamphetamine, and distribution of methamphetamine. If convicted of the most serious charges contained in the indictment, FALCON faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference: 14-60
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system so that you stay current and not miss any important developments in the case.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court's calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
Indictment: Postal Employee Stole Rx Drugs from MailRead the Press Release
TOPEKA, KAN. – A Topeka postal employee was indicted Wednesday on a federal charge of stealing prescription medications from the mail, U.S. Attorney Barry Grissom said.
Terry D. Ricley, 44, Burlingame, Kan., who worked sorting mail at the Topeka Post Office North Station, was charged with one count of theft by a postal employee. The indictment alleged he stole Hydrocodone and Tramadol being delivered by mail.
If convicted, he faces a maximum penalty of five years in federal prison and a fine up to $250,000. The U.S. Postal Service - OIG investigated. Assistant U.S. Attorney Christine Kenney is prosecuting.
OTHER INDICTMENTS
Daeshawn Lavar Bryant, 19, who is in custody in the Riley County Jail, is charged with one count of being an accessory after the fact to a robbery of a commercial business. The indictment alleges that on April 16, 2014, he provided assistance to a person who committed a robbery.
In September, Christopher James Wilhoite pleaded guilty to two counts of commercial robbery and one count of unlawful possession of a firearm in furtherance of a robbery. It is alleged Bryant aided and abetted Wilhoite in connection with an April 16, 2014, robbery at the Dollar General store at 2321 Tuttle Creek Boulevard in Manhattan, Kan.
If convicted, Bryant faces a maximum penalty of 20 years in federal prison and a fine up to $250,000. The Riley County Police Department, the Topeka Police Department and the FBI investigated. Assistant U.S. Attorney Jared Maag is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.Imperial Sand Dunes Storage Firm and Owner Plead Guilty to Illegal Disposal of Untreated Human Waste and SewageRead the Press Release
SAN DIEGO - Glamis Dunes Storage Inc. and its owner, Michael Mamelli, Sr., pleaded guilty today to the illegal underground disposal of potentially millions of gallons of untreated human waste and sewage at the Glamis Dunes Storage site for more than four years, in violation of the Safe Drinking Water Act. The Glamis Dunes site is located off of Highway 78 in Imperial County, and advertises storage services near the Imperial Sand Dunes Recreation Area.
The defendants admitted at today’s hearing that in August of 2007, Glamis Dunes Storage obtained a conditional use permit from Imperial County to install and operate a 20,000 gallon holding tank for RV waste (including human waste and grey water) at the facility. When acquiring the permit, Glamis Dunes Storage represented that the wastewater would be pumped out by a licensed septage hauler and disposed of at the Holtville wastewater treatment plant. According to Glamis Dunes Storage, the holding tank could be expected to dispose of approximately 1,250,000 gallons of RV sewage and grey water per year. The permit specifically prohibited any underground leach system attached to the holding tank.
As the defendants admitted, however, between February 16, 2010, and March 12, 2010, the defendants arranged for a contractor to build a leach field in the rear of the property, install a pump in the RV holding tank, and connect a pipe directly from the RV holding tank out to the leach field. The defendants also arranged for the power connection for the pump to be concealed under gravel near the RV holding tank. Thereafter, they admitted that they repeatedly disposed of the human waste and sewage from the RV holding tank by activating the pump and discharging the sewage through the underground leach field.
The defendants acknowledged that between August and October of 2012, they had a contractor add a new pump and two 2,500 gallon tanks in series to the pipe connecting the RV holding tank to the leach field. The defendants continued to illegally dispose of the sewage in the RV holding tank by discharging it through the underground tanks and leach field without a permit or other authorization from the EPA.
The defendants agreed to forfeiture of the sum of $50,000, as the proceeds of the offense, and to make restitution to the Bureau of Land Management and the Imperial County Department of Environmental Health and to fund the restoration of the site to the satisfaction of the Imperial County Department of Environmental Health.
Michael Mamelli and Glamis Dunes Storage, Inc. are scheduled to appear before U.S. District Court Judge William Q. Hayes on February 17, 2015, at 9:00 a.m. for sentencing.
DEFENDANTS Case Number: 14-CR-1766-WQH Glamis Dunes Storgage, Inc. Inc., 2006 Glamis, California Michael J. Mamelli, Sr. Age: 63 Newport Beach, California CHARGESUnlawful Injection of Pollutants, a felony, in violation of Title 42, United States Code, Section 300h-2(b)(2)
Maximum Penalty for Individual: Three years in prison; up to $250,000 fine or twice the illegal gain or loss, whichever is greater.
Maximum Penalty for corporation: Fine of up to $500,000.
INVESTIGATING AGENCYEnvironmental Protection Agency, Criminal Investigations Division
Bureau of Land ManagementHunters in Kansas Plead Guilty to Violating Migratory Bird ActRead the Press Release
WICHITA, KAN. – Seven hunters in Kansas pleaded guilty and were sentenced Wednesday for violating the Migratory Bird Treaty Act, U.S. Attorney Barry Grissom said.
The men admitted they violated the federal law protecting migratory birds when they participated in an annual opening weekend dove hunt in Graham County, Kan., on Sept. 1-2, 2013.
The Migratory Bird Treaty Act classifies mourning doves as migratory game birds. It classifies owls as migratory non-game birds. Restrictions on hunting mourning doves include a daily bag limit of 15 and a possession limit of three times the daily bag limit.
PLEAS
Defendants pleading and sentenced were:
Daniel R. Dinkel, 63, Hill City, Kan., one count of exceeding the daily bag limit for mourning doves.
Kent A. Webber, 52, Derby, Kan., one count of exceeding the daily bag limit for mourning doves, and one count of taking an owl.
Evan Webber, 25, Derby, Kan., one count of exceeding the daily bag limit for mourning doves, and one count of taking an owl.
Kenneth R. Beran, 67, Derby, Kan., one count of exceeding the daily bag limit for mourning doves.
Clark Law, 57, Hill City, Kan., one count of exceeding the daily bag limit for mourning doves.
Tracy D. Higgins, 54, El Dorado, Kan., one count of exceeding the daily bag limit for mourning doves, and one count of taking an owl.
John Kobler, 62, Topeka, Kan., one count of exceeding the daily bag limit for mourning doves.Another defendant, George Morgan, 52, Gordonville, Texas, who is charged with one count of exceeding the daily bag limit for mourning doves, is set for a change of plea hearing Nov. 24.
SENTENCES
Dinkel, Kobler, Law and Beran were sentenced to a year on probation in which they are not allowed to hunt, fish or trap, a $2,000 fine, and $3,000 restitution to the state of Kansas.
Kent Weber, Evan Weber and Higgins were sentenced to two years on probation in which they are not allowed to hunt, fish or trap, a $2,000 fine and $5,000 restitution.
Grissom commended the U.S. Fish and Wildlife Service investigated. Assistant U.S. Attorney Matt Treaster is prosecuting.
- Humble Woman Indicted in Second Fraud Scheme
Houma Man is Convicted of Drug Distribution ChargeRead the Press Release
U.S. Attorney Kenneth A. Polite announced that today a federal jury convicted, DONALD RICHARDSON, age 36, of Houma, Louisiana, of distribution of a quantity of cocaine base (“crack”).
RICHARDSON was charged in a two-count indictment, alleging that on March 17, 2011, and March 23, 2011, RICHARDSON distributed a quantity of crack. After a two-day trial before U.S. District Judge Sarah S. Vance, a jury returned a guilty verdict against RICHARDSON for the March 23, 2011 distribution charge.
RICHARDSON faces a maximum term of imprisonment of twenty years, a maximum fine of $1,000,000, three years of supervised release after imprisonment, and a $100 special assessment. Judge Vance set sentencing for March 4, 2015.
U.S. Attorney Polite praised the work of the Drug Enforcement Administration and the Terrebonne Parish Department’s Narcotics Unit in investigating this matter. Assistant United States Attorney Andre’ Jones and Special Assistant United States Attorney Brian C. Ebarb were in charge of the prosecution.
Hospice Company Owner Found Guilty of Committing Medicare Fraud, Conspiracy, Obstruction of Federal Audit, and Making False StatementsRead the Press Release
Oklahoma City, Oklahoma – A federal jury in Oklahoma City found PAULA KLUDING, 39, from Chandler, Oklahoma, the owner of Prairie View Hospice, Inc., an Oklahoma corporation located in Chandler, guilty on 39 separate counts relating to Medicare fraud, conspiracy, obstruction of a federal audit, and making false statements in health care matter, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
PATRICIA CARTER, 43, from Tecumseh, Oklahoma, was the general manager of Prairie View Hospice and was indicted along with Kluding in this case. Carter pled guilty on November 3, 2014, to one count of obstruction of a federal audit and testified at the trial.
According to evidence presented at trial, Prairie View Hospice was in business to provide hospice care to Medicare beneficiaries. Hospice care consists of providing health care, medication, medical equipment, and other goods and services to terminally ill patients. From July of 2010 through July of 2013, Kluding conspired with others to conceal the true medical condition of Prairie View Hospice’s patients and the true quality and quantity of health care services they were receiving in order to “pass” a Medicare audit and to fraudulently obtain money from Medicare. Specifically, certain medical documents were falsified to make it appear that nurses had visited patients or conducted necessary assessments when such visits and assessments had not, in fact, been made. Nursing notes were also falsified to make it appear that patients were in worse health than they actually were in order to justify to Medicare the patient’s continued hospice care. In addition, Prairie View Hospice, acting through Kluding, sent the falsified documents to a Medicare subcontractor in response to requests to audit patient files and in support of claims for Medicare reimbursement.
The trial lasted for four and half days and the jury deliberated about six hours before returning a guilty verdict on all counts.
At sentencing, Kluding faces up to 5 years imprisonment and a fine of $250,000 on each count, as well as paying restitution to the government. Carter faces 5 years imprisonment and a fine of $250,000. The government also seeks forfeiture of all proceeds obtained by Kluding from the criminal acts. Sentencing will take place in approximately 90 days.
This case is the result of an investigation by the U.S. Department of Health and Human Services Office of Inspector General and the Federal Bureau of Investigation. The case was prosecuted by Assistant U.S. Attorneys Amanda Maxfield Green and Jessica Perry.
Hong Kong Man Pleads Guilty to Conspiracy to Smuggle Turtles out of the United States and to Violation of the Lacey ActRead the Press Release
U.S. Attorney Kenneth A. Polite announced that HON KIT LAU, age 34, from Hong Kong, pled guilty today to a one-count superseding Bill of Information charging him with conspiring to smuggle turtles out of the United States and to violate the Lacey Act.
According to the superseding Bill of Information, LAU was part of a group of individuals involved in capturing the threatened species of North American Wood turtles from the wild, shipping the turtles by mail though the United States, and then illegally exporting the turtles to Hong Kong.
U.S. District Court Judge Helen G. Berrigan scheduled sentencing for February 25, 2015. LAU faces a maximum term of five years in prison, a fine of $250,000, and three years of supervised release following any term of imprisonment.
U.S. Attorney Polite praised the work of the U.S. Fish and Wildlife Service, Homeland Security Investigations, and the United States Postal Inspection Service in investigating this matter. Assistant United States Attorney David Haller is in charge of the prosecution.
Honduran National Pleads Guilty to Illegal Re-Entry of a Removed AlienRead the Press Release
U.S. Attorney Kenneth A. Polite announced that MELVIN JOSUE AVELAR-CASTRO (“AVELAR”), age 34, a citizen of Honduras, pled guilty today to one-count of illegal re-entry of a removed alien.
According to court documents, AVELAR was arrested by Immigration and Customs Enforcement (“ICE”) agents at a residence in Metairie, Louisiana. The arrest followed an investigation by ICE agents which determined that AVELAR was illegally present in the United States. AVELAR had been convicted of re-entry of a removed alien on two previous occasions.
AVELAR faces a maximum term of imprisonment of ten years on the illegal re-entry charge, a fine of $250,000 and up to three years of supervised release following any term of imprisonment. U.S. District Judge Martin L.C. Feldman scheduled sentencing on March 18, 2015.
U.S. Attorney Polite praised the work of U.S. Immigration and Customs Enforcement in investigating this matter. Assistant U.S. Attorney Michael M. Simpson is in charge of the prosecution.
Honduran Man Sentenced for Violating the Federal Gun Control ActRead the Press Release
U.S. Attorney Kenneth A. Polite announced that SANTOS GAVARRETE-NATAREN, 36, a native of Honduras, pled guilty today to knowingly delivering a firearm to a common carrier without written notice.
According to court documents, on or about December 2, 2013, Dip Shipping, a common carrier based in Kenner, Louisiana, received a plastic container for international shipment at its West Bank drop-off location. The container was purportedly from Alfredo Barahona, addressed to Yessenia Martinez in Yoro, Honduras. The shipping label noted that the shipment contained kitchen items and shoes.
While scanning packages with a company owned X-ray machine, a Dip Shipping employee observed the image of two firearms inside the container. On December 9, 2013, HSI Special Agents were notified of the discovery and responded to Dip Shipping. Upon inspecting the container, the agents discovered that it contained a Smith & Wesson model 642, .38 revolver (SN: CJJ4544) and a Lorcin model L380, .380 semi-automatic handgun (SN: 125407).
HSI agents determined that GAVARRETE shipped the package. GAVARRETE admitted that he did not apply for an export license to ship the firearms. Further, he did not advise Dip Shipping that the package contained firearms.
U.S. District Judge Kurt D. Engelhardt scheduled sentencing for February 4, 2015. GAVARRETTE faces a maximum of 5 years imprisonment and a maximum fine of $250,000.
U.S. Attorney Polite praised the work of the Homeland Security Agents investigating this matter. Assistant United States Attorney Emily K. Greenfield is in charge of prosecuting this case.
Honduran Man Pleads Guilty to Immigration OffenseRead the Press Release
U.S. Attorney A. Kenneth Polite announced that ELVIS CANO-MORALES, age 33, a citizen of Honduras, pled guilty today to a one-count indictment for illegal reentry of a removed alien.
According to court documents, CANO-MORALES was found in the United States on August 1, 2014, after having been previously removed from the United States on June 10, 2011.
CANO-MORALES faces a maximum term of imprisonment of two years, as well as a fine of $250,000. U.S. District Judge Stanwood R. Duval set sentencing for January 28, 2015.
U.S. Attorney Polite praised the work of the U.S. Customs and Border Patrol in investigating this matter. Assistant United States Attorney Jon Maestri is in charge of the prosecution.
Homer Man Sentenced to 38 Months in Prison for Stealing more than $59,000 from EmployerRead the Press Release
SHREVEPORT, La. –United States Attorney Stephanie A. Finley announced today that a Homer man was sentenced to 38 months in prison for stealing more than $59,000 from his Claiborne Parish employer’s bank account.
John Bob Jr., 47, of Homer, La., was sentenced by U.S. District Judge Elizabeth E. Foote for one count of bank fraud and one count of aggravated identity theft. He was also sentenced to five years of supervised release and ordered to pay $58,248 restitution. According to the evidence presented at the July 15, 2014 guilty plea, the defendant used his employer’s debit card and personal identification number to make approximately 200 withdrawals totaling $59,602 from May 2012 to July 2013 from banks across northwest Louisiana.
The FBI and Claiborne Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Seth D. Reeg prosecuted the case.Happy's Pizza Founder Convicted of Multi-Million Dollar Tax Fraud SchemeRead the Press Release
On November 19, in the U.S. District Court for the Eastern District of Michigan, a federal jury after deliberating 4.5 hours convicted the president and founder of Happy’s Pizza of conspiracy to defraud the United States and 32 counts of tax crimes, the Justice Department announced today.
Happy Asker’s convictions include three counts of filing false federal individual tax returns for the years 2006 through 2008, 28 counts of aiding and assisting the filing of false federal income and payroll tax returns for several Happy’s Pizza Franchises restaurants for the years 2006 through 2009, and one count of engaging in a corrupt endeavor to obstruct and impede the administration of the Internal Revenue Code.
During trial, the evidence established that Asker was the president, founder and public face of the Farmington Hills, Michigan, based Happy’s Pizza franchise. He also had ownership interests in several Happy’s Pizza franchises located in Michigan, Ohio and Chicago. From June 2004 through April 2011, Asker, along with certain franchise owners and employees, executed a systematic and pervasive tax fraud scheme to defraud the Internal Revenue Service (IRS). Gross sales and payroll amounts were substantially underreported to the IRS on numerous individual corporate income tax returns and payroll tax returns submitted for nearly all 60 Happy’s Pizza franchise restaurants located in Michigan, Ohio and Illinois. Evidence admitted at trial established that from 2008 to 2010, more than $6.1 million in cash gross receipts were diverted from approximately 35 different Happy’s Pizza stores in the Detroit area, Illinois and Ohio. In total, the evidence at trial established that Asker and certain employees and franchise owners failed to report to the IRS approximately $3.84 million of gross income from the various Happy’s Pizza franchises and approximately $2.39 million in payroll. The evidence at trial further established that a portion of this unreported income was shared among most of the franchise owners, including Asker, in a weekly cash “profit split.” The cash was distributed among the investors and managers of the relevant franchises. The IRS is owed more than $6.2 million in taxes as a result of this fraud scheme.
The evidence at the two-week trial also established that Asker purposely misled IRS-Criminal Investigation special agents during voluntary interviews conducted on Nov. 5, 2010, and Dec. 1, 2010. Asker denied knowing co-defendant Arkan Summa, a convicted felon, and did not disclose Summa’s association with a number of Happy’s Pizza franchise restaurants. Documents admitted during trial indicate Summa shared in diverted gross receipts from at least one Happy’s Pizza franchise in Toledo, Ohio.
Four other defendants in the case pleaded guilty prior to Asker’s trial. On October 23, Maher Bashi, who served as Happy’s Pizza’s corporate chief operating officer, and Tom Yaldo, an owner of numerous Happy’s Pizza franchises, pleaded guilty to conspiracy to defraud the United States. According to the indictment, their conduct included, among other things, creating and maintaining fraudulent accounting records and falsely reporting income taxes and payroll taxes. On July 15, Summa pleaded guilty to engaging in a corrupt endeavor to obstruct and impede the due administration of the IRS, and Tagrid Summa, who is identified as a Happy’s Pizza franchise owner in documents admitted during trial, pleaded guilty to providing false documents to the IRS.
At sentencing, Happy Asker faces a statutory maximum sentence of five years in prison and a $250,000 fine for conspiracy to defraud the government. The charges of filing a false income tax return and aiding or assisting in filing a false return carry a statutory maximum sentence of three years in prison and a fine of $250,000 for each count. The obstruction charge carries a statutory maximum sentence of three years in prison and a fine of $250,000. Asker’s sentencing is scheduled for March 5, 2015, in the Eastern District of Michigan.
The case was investigated by special agents from IRS-Criminal Investigation and the Drug Enforcement Agency. Senior Litigation Counsel Corey Smith and Trial Attorney Mark McDonald for the Justice Department’s Tax Division prosecuted the case.
Hamden Woman Admits Stealing Deceased Mother’s Social Security Benefits for Nearly 30 YearsRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that SANDRA KIMBRO, 66, of Hamden, waived her right to indictment and pleaded guilty today in Hartford federal court to one count of theft of public funds.
According to court documents and statements made in court, KIMBRO’s mother, a Social Security benefits recipient, died in 1984. At the time of her death, KIMBRO and her mother had a jointly-held bank account into which the mother’s monthly Social Security benefits were deposited. Between April 1984 and February 2014, KIMBRO illegally obtained $160,457 in Social Security benefits that had been deposited into the account for her mother’s use. Through the years, as she withdrew money from the bank account, KIMBRO described to bank employees how she was providing care to her mother.
KIMBRO is scheduled to be sentenced by U.S. District Judge Robert N. Chatigny in Hartford on February 11, 2015, at which time she faces a maximum term of imprisonment of 10 years, a fine of up to $250,000 and an order of restitution.
This matter is being investigated by the Social Security Administration, Office of Inspector General – Office of Investigations, and is being prosecuted by Assistant U.S. Attorney Ray Miller.
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(203) 821-3722 [email protected]Grand Jury Indicts Man Who Possessed Gun During Apartment Break-InRead the Press Release
PITTSBURGH – A former resident of Lawrence County and current resident of McKees Rocks, Pa., has been indicted by a federal grand jury in Pittsburgh on a charge of violating federal firearms laws, United States Attorney David J. Hickton announced today.
The one-count indictment, returned on Nov. 18, named Antron Jamal Talley, a/k/a Marvin Talley, 37, as the sole defendant.
According to the indictment, Talley possessed a firearm and/or ammunition on or about August 28, 2013, after having been convicted at eight different case numbers of crimes punishable by more than two years in prison. Those convictions include two separate prior firearm charges and seven different Aggravated Assault counts. Previously filed Court documents indicate that Talley was caught inside an apartment by police after a civilian observed him breaking in the door. Police located two loaded guns during the incident.
The law provides for a maximum total sentence of not less than 15 years and up to life in prison, a fine of $250,000, or both. Defendants who have three prior convictions for violent felonies or serious drug offenses face a minimum of 15 years and a maximum of life in prison, under the federal Armed Career Criminal Act. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history of the defendant.
Assistant United States Attorney Ross E. Lenhardt is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Pittsburgh Bureau of Police conducted the investigation leading to the indictment in this case. This case is being prosecuted under Project Safe Neighborhoods, a collaborative effort by federal, state and local law enforcement agencies, prosecutors and communities to prevent, deter and prosecute gun crime.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.