Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Friday 26 September 2014
Multi-Million Dollar Mortgage Fraud Ringleader SentencedRead the Press Release
San Diego, CA - Kathryn Sylvester of San Diego was sentenced today to 41 months in custody for operating a large-scale mortgage fraud scheme that caused over $6 million in losses on various properties in San Diego and Orange Counties.
A restitution order is pending. The government has asked the court to order Sylvester to pay $6.6 million to several financial institutions and individuals who were victimized by her scheme.
During today’s sentencing hearing, U.S. District Court Judge Cathy Ann Bencivengo said Sylvester orchestrated a “sophisticated operation” involving “repeated acts of criminal behavior.” Judge Bencivengo acknowledged Sylvester’s managerial role in the conspiracy and noted that she must be held responsible for the “serious offense.”
According to court records and Sylvester’s admissions, between June 2005 and May 2008, Sylvester recruited “straw buyers” to submit falsified mortgage loan applications in order to buy properties and obtain home equity loans. Sylvester also provided false documents to support the straw buyers’ misrepresentations regarding their income and employment, and added straw buyers to unrelated bank accounts so they could inflate the value of their assets on loan applications. Sylvester also helped convince lenders to fund loans for which Sylvester and the straw buyers would not otherwise qualify.
Although Sylvester promised some straw buyers that she would “flip” a number of the properties for a quick profit, she systematically drained equity from the properties for her own benefit. As a result of Sylvester’s criminal acts, the conspirators were able to fraudulently obtain over 80 loans resulting in over $24 million in funded loans -- loans that eventually went into default and resulted in the foreclosure of approximately 28 properties.
U.S. Attorney Laura Duffy commented: “It is our sincere hope that we have closed a chapter on the destructive wave of mortgage frauds that heavily contributed to this nation’s financial crisis. Due to the determined efforts of the FBI to ensure that financial crimes do not go unpunished, Kathryn Sylvester and her conspirators have been held accountable for the serious damage they caused.”
FBI Acting Special Agent in Charge Robert Howe commented, “This FBI investigation unraveled a sophisticated mortgage fraud scheme that involved straw buyers and people in trusted positions who had a role in protecting the integrity of the mortgage lending process. Because of her lies and deception, motivated by greed, Ms. Sylvester will now be spending close to four years in federal prison to think about whether it was all worth it. Today's sentencing sends a message that the FBI will continue to aggressively investigate those individuals that engage in fraudulent financial schemes that cause harm to our banking industry.”
The straw buyers involved in Sylvester’s conspiracy included Claudia Montes, Tad Lent, Timothy Shannahan, and Roderick Michener. Montes, a former notary public, notarized the signatures of other straw buyers on the false loan applications. On April 12, 2013, Montes pleaded guilty and admitted that she conspired with Sylvester to submit false loan applications to lenders. Montes was sentenced to 20 months in custody by U.S. District Judge Janis L. Sammartino on February 14, 2014 (13CR1313-JLS).
Lent pleaded guilty to conspiring with Sylvester to submit falsified loan applications to mortgage lenders by misrepresenting the amount of his assets (12CR3744-L). U.S. District Judge M. James Lorenz sentenced Lent to one year of custody on March 3, 2014.
On April 14, 2014, Judge Lorenz also sentenced Shannahan to one year in custody for his role as one of Sylvester’s straw buyers (13CR1650-L). Michener pleaded guilty to conspiring with Sylvester to commit bank fraud (13CR1130-CAB). Michener admitted that he permitted co-conspirators to claim an ownership interest in his bank account in order to include the account as an asset on their respective mortgage loan applications. He also admitted transferring fraud proceeds to Sylvester. On March 14, 2014, Judge Bencivengo sentenced Michener to time-served and ordered him to repay over $2 million in restitution.
DEFENDANT Case Number: 13CR1355-CAB Kathryn Sylvester Age: 44 CHARGESCount 1: Title 18, United States Code, Section 1349 (conspiracy to commit wire fraud and bank fraud)
Maximum penalty: 30 years of custody; $1,000,000 fineCount 5: Title 18, United States Code, Section 1343 (wire fraud)
INVESTIGATING AGENCY
Maximum penalty: 20 years of custody; $250,000 FineFederal Bureau of Investigation
Michigan Physician Pleads Guilty for Role in Medicare Fraud SchemeRead the Press Release
A Detroit-area physician who made fraudulent referrals for home health care in a $1.3 million Medicare fraud scheme pleaded guilty today.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan, Special Agent in Charge Paul M. Abbate of the FBI’s Detroit Field Office, and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG) Chicago Regional Office made the announcement.
Dr. Vicha Janviriya, 77, of Southfield, Michigan, pleaded guilty before U.S. District Judge Arthur J. Tarnow in the Eastern District of Michigan to one count of conspiracy to commit health care fraud. Sentencing is scheduled for Jan. 21, 2015.
According to court documents, Janviriya admitted that from February 2006 through September 2012, he falsified medical documentation and falsely certified Medicare beneficiaries as homebound or requiring home health care services. In many cases, he had never met those beneficiaries. Janviriya admitted that he knew the false home health certifications would be used to support false claims to Medicare for services that were never rendered or not medically necessary, or where the Medicare beneficiary referrals were obtained through the payment of kickbacks.
Between February 2006 and September 2012, Janviriya caused Medicare to pay approximately $1,366,496 based on his false home health certifications.
This case was investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Michigan. This case is being prosecuted by Trial Attorneys Niall M. O’Donnell and Matthew Thuesen of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,000 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Team (HEAT), go to: www.stopmedicarefraud.gov.
# # #
Mexicali Man Sentenced to 46 Months for Attempting to Illegally Export 6000 Rounds of Ammunition into MexicoRead the Press Release
TUCSON, Ariz. – On Sept. 24, 2014, Luis Armando Collins-Avila, 43, of Mexicali, Mexico, was sentenced by U.S. District Court Judge James A. Soto, to 46 months confinement followed by 3 years of supervised release. On June 23, 2014, Collins pled guilty to trying to smuggle the 6000 rounds of ammunition into Mexico.
On July 18, 2013, Collins was driving outbound from Douglas, Ariz. into Agua Prieta, Mexico in a Chevrolet Suburban. Before leaving the country, an inspection of Collins vehicle revealed 6,000 rounds of ammunition concealed in the doors and wheel wells. A receipt found in the car indicated Collins had purchased the ammunition the day prior to his arrest. After his arrest, Collins admitted he had concealed the ammunition in his vehicle to avoid detection.
The investigation in this case was conducted by ICE-Douglas, U.S. Customs and Border Protection, and the Douglas Police Department. The prosecution was handled by Arturo Aguilar, District of Arizona, Tucson.
CASE NUMBER: CR-13-01376
RELEASE NUMBER: 2014-053_Collins-AvilaFor more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Many Resident Pleads Guilty to Possessing a Firearm, Ammunition after being Convicted of FeloniesRead the Press Release
SHREVEPORT, La. –A Many, La., man pleaded guilty Thursday to possessing a shotgun and ammunition after being convicted of multiple felonies, U.S. Attorney Stephanie A. Finley announced.
Jerry Kenneth Thompson Jr., 44, of Many, pleaded guilty Thursday before U.S. District Judge Elizabeth E. Foote to one count of possessing a firearm and ammunition after a felony conviction. According to evidence presented at the guilty plea, Louisiana Department of Wildlife and Fisheries (LDWF) agents discovered Thompson on December 31, 2013 in possession of a 12 gauge shotgun and ammunition while hunting on private property without permission and using a stolen deer stand. Thompson admitted to LDWF agents that he had prior felony convictions and knew he could not possess a firearm. Further investigation confirmed that Thompson had seven felony convictions in California. The felony convictions include: two convictions for grand theft, possession of marijuana with intent to sell, second degree burglary of a vehicle, possession with intent to sell a controlled substance with a gang affiliation enhancement, transportation of a controlled substance, and possession for sale of cocaine base. Thompson also had a prior felony conviction in Sabine Parish for simple burglary.
Thompson faces up to 10 years in prison, three years of supervised release, a $250,000 fine, and forfeiture of the firearm and ammunition. A sentencing date of January 30, 2015 was set.
The ATF and the Louisiana Department of Wildlife and Fisheries conducted the investigation. Assistant U.S. Attorney Robert W. Gillespie Jr. is prosecuting the case.
Louisville Man Sentenced to 156 Months for Possessing Cocaine with Intent to Distribute in Boone CountyRead the Press Release
COVINGTON, KY -A Louisville man was sentenced today to 156 months in federal prison for possessing crack cocaine in Northern Kentucky with the intent to distribute it.
U.S. District Judge Amul Thapar sentenced 58 year-old Edward L. Adams to 156 months in prison and placed him on supervised release for six years after he completes his prison term.
On December 18, 2013, Adams admitted to possessing almost 20 grams of crack cocaine at a hotel in Boone County with the intent to distribute it.
Adams entered his guilty plea on June 19, 2014. Under federal law, he must serve at least 85 percent of his prison sentence. He is classified as a career offender under federal law because of two prior felony drug trafficking convictions. This classification enhanced his sentence.
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky, and Howard S. Marshall, Special Agent in Charge, Federal Bureau of Investigation, jointly made the announcement after the sentencing.
The investigation was conducted by the Federal Bureau of Investigation Safe Streets Task Force and the Northern Kentucky Drug Strike Force. The U.S. Attorney’s Office was represented in the case by Assistant U.S. Attorney Tony Bracke.
Leader of Cartel-Linked Drug and Weapons Trafficking Ring Sentenced to 27 Year Prison TermRead the Press Release
The U.S. based leader of a drug and gun trafficking organization with direct links to a violent Mexican drug cartel was sentenced today in U.S. District Court in Seattle to 27 years in prison, announced U.S. Attorney Jenny A. Durkan. CRISTIAN BERRELLEZA-VERDUZCO, 31, of Everett, Washington, pleaded guilty in April 2013 to Conspiracy to Distribute Controlled Substances; Conspiracy to Commit Money Laundering; Conspiracy to Interfere with Commerce by Robbery; Conspiracy to Possess Firearms in Furtherance of a Drug Trafficking Crime, and Possession of a Firearm in Furtherance of a Drug Trafficking Crime. BERRELLEZA-VERDUZCO and his brother Victor were the U.S leaders of a large Mexico based drug and gun trafficking ring with ties to the violent Beltran-Leyva drug cartel. The men’s father is the leader of the drug trafficking organization and remains a fugitive in Mexico. At sentencing U.S. District Judge Robert S. Lasnik said all three of the BERRELLEZA-VERDUZCO brothers are imprisoned in the U.S., a reality that was “set in motion by their father.”
“This sentence helps protect us from a very dangerous man and organization. This defendant raked in massive profits from the scourge of heroin addiction. He and his family sought to control the entire supply chain, from growing the poppies, to manufacturing the heroin, to selling it in this District,” said U.S. Attorney Jenny A. Durkan. “And just as they moved their drugs north, they wanted to move high powered weapons back to Mexico to cause further cartel related violence.”
“From his base in an unassuming Snohomish County neighborhood, Berrelleza-Verduzco ran a multimillion dollar heroin and meth trafficking operation that took multiple federal, state and local agencies in three states to dismantle.” said Brad Bench, special agent in charge of Homeland Security Investigations in Seattle. “He fed the destructive habit of Washington addicts and fueled Mexican cartel violence with drug money. Incarcerating Berrelleza-Verduzco and his co-conspirators is a significant victory for public safety, especially considering the massive increase in local teens dying of heroin overdoses in recent years.”
According to records filed in the case, CRISTIAN BERRELLEZA-VERDUZCO directed both the smuggling of meth and heroin from Mexico into the United States and in efforts to smuggle guns back to Mexico. Phone calls recorded in the wire-tap investigation reveal he frequently threatened to harm or kill those whom he had felt had failed him. BERRELLEZA-VERDUZCO was arrested in Arizona with firearms, including an AK-47 style assault weapon, in October of 2011. He was prosecuted and deported by state authorities, but quickly returned to Washington to continue his gun and drug trafficking activities.
BERRELLEZA-VERDUZCO and 29 co-conspirators were arrested in March 2012, following a lengthy investigation. During the investigation agents seized multiple kilos of heroin, pounds of methamphetamine, and more than a dozen firearms, including military-style assault rifles which were bound for cartel members in Mexico. In all, 34 people were charged in the case. Most have been sentenced, some to prison terms in excess of ten years. One year ago, Victor Berrelleza-Verduzco was sentenced to 20 years in prison, and his brother Ivan Berrelleza-Verduzco was sentenced to seven years in prison.
This was an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation, providing supplemental federal funding to the federal and state agencies involved. The case was investigated by the ICE’s Homeland Security Investigations, the Bureau of Alcohol, Tobacco and Firearms (ATF), the Drug Enforcement Administration (DEA), the Lake Stevens Police Department, the Snohomish Police Department, Washington State Patrol, the Snohomish Regional Drug Task Force and the Seattle Police Department.
The case is being prosecuted by Assistant United States Attorney Vince Lombardi.
Leader of California-Based Methamphetamine Trafficking Organization Pleads GuiltyRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that Antonio Cuevas-Navarro (47, Sacramento, California) pleaded guilty yesterday to one count of conspiring with others to distribute 500 grams or more of methamphetamine. Cuevas-Navarro faces a mandatory minimum term of ten years’ imprisonment, up to a maximum penalty of life.
According to the plea agreement, in February 2012, Cuevas-Navarro attempted to have 12 pounds of methamphetamine smuggled from Jonesboro, Arkansas to Pasco County, Florida. On February 22, 2012, two co-conspirators working on Cuevas-Navarro’s behalf drove from Pasco County to Jonesboro to retrieve the drugs. The following day, during a traffic stop in Arkansas, law enforcement agents intercepted the drugs from five of Cuevas-Navarro’s co-conspirators.
On April 5, 2012, DEA agents seized seven pounds of methamphetamine in Pasco County from three of Cuevas-Navarro’s co-conspirators. The drugs had previously been shipped to Pasco County by Cuevas-Navarro. In June 2012, Cuevas-Navarro sent Jose Angel Carrillo, Jr. from California to Pasco County to retrieve money from the drug sales. Carrillo then picked up $3,500 in a Wal-Mart parking lot in Pasco County, which represented a partial payment owed for one pound of methamphetamine.
This case was investigated by the Drug Enforcement Administration (DEA) and the Pasco County Sheriff’s Office as part of an ongoing Organized Crime Drug Enforcement Task Force (OCDETF) investigation, in which nine other individuals have already been convicted. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply. The case is being prosecuted by Assistant United States Attorney Christopher F. Murray.
Law Enforcement Officials Announce the Results of Sex Offender Sweep in Kanawha CountyRead the Press Release
Charleston, W.Va. – U.S. Attorney Booth Goodwin, U.S. Marshal John Foster and West Virginia State Police First Lieutenant Michael Baylous announced today that as a result of a four-day law enforcement operation aimed at verifying compliance of more than 411 registered sex offenders currently residing in Kanawha County, 24 offenders were found to be out of compliance.
The initiative, dubbed Operation C4 (Capitol City Compliance Checks), is a multi-agency law enforcement effort targeting registered sex offenders to determine individual compliance with the Sex Offender Registration Notification Act, or SORNA. Led by the U.S. Marshal’s Sex Offender Investigations Branch, Operation C4 targeted 411 registered sex offenders and found 387 to be in compliance. A total of 24 offenders were found out of compliance during the checks conducted on September 22-25. Warrants were issued for 20 offenders, and of those 12 have already been arrested. Operation C4 revealed that seven sex offenders had absconded. Deputy U.S. Marshals, along with West Virginia State Troopers, will continue their investigation until those violators are found.
“The prosecution of sex offenders remains one of my office’s top priorities. These sweeps are an important step in bringing to justice those offenders who have not registered as required by law, and who continue to pose a threat to the communities in which they hide,” said U. S. Attorney Goodwin.
Operation C4 was initiated by members of the West Virginia State Police, in cooperation with the U.S. Marshal’s Service Sex Offender Investigations Branch for the Southern District of West Virginia. U. S. Marshal John Foster stated, “The U.S. Marshal’s Service will continue conducting these sweeps and tracking down sex offenders who are not in compliance with the law.”
Through this and previous regional sweeps throughout the Southern District of West Virginia, a combined total of more than 1,250 offender compliance checks have been conducted.
The Sex Offender Registration Notification Act (SORNA) is a part of the Adam Walsh Child Protection and Safety Act of 2006. SORNA provides a comprehensive set of minimum standards for sex offender registration and notification in the United States.
These sweeps are conducted 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 http://www.justice.gov/usao/wvs/PSCpage.html.
Lanham Man Sentenced to 45 Months in Prison for Bank Fraud Conspiracy Where He Took Control of Victim Bank AccountsRead the Press Release
Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Baldwin Nnamdi Chukweum Osuji, age 26, of Lanham, Maryland, today to 45 months in prison, followed by five years of supervised release, for conspiracy to commit bank fraud and for aggravated identity theft. Judge Motz also ordered Osuji to pay restitution of $128,256.21.The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Brian Murphy of the United States Secret Service - Baltimore Field Office; and Postal Inspector in Charge Gary R. Barksdale of the U.S. Postal Inspection Service - Washington Division.
According to his plea, from May 2011 through April 2013, Osuji participated in a scheme to defraud financial institutions by using victims’ personal identification information and impersonating the victims in phone calls with the bank. Specifically, Osuji called financial institutions and impersonated victims, using the victims’ personal information, which he obtained from a third party, to gain access to the victims’ bank accounts.
Once access was granted to victim bank accounts, Osuji changed the online identification and password and took over control of the bank account. Osuji obtained images of the victims’ checks online and used those images to reproduce fraudulent checks, using the bank account information of the victims as well as means of identification of the victims, for example, their names and signatures.
Osuji and others then deposited these fraudulent checks into bank accounts of co-conspirators, and using the co-conspirators’ personal information withdrew and attempted to withdraw cash from these accounts.
On April 5, 2013, a federal search warrant was executed at Osuji’s residence. Law enforcement recovered from his home and his computer various debit cards used in connection with the scheme, copies of fraudulent checks, check stock for making fraudulent checks, and documents detailing victim account information.
Osuji admitted that he defrauded and/or utilized the personal identifying information of at least 56 individuals. The actual loss associated with the fraud is approximately $128,256.21.Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Since the inception of FFETF in November 2009, the Justice Department has filed more than 12,841 financial fraud cases against nearly 18,737 defendants including nearly 3,500 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein commended the U.S. Secret Service and U.S. Postal Inspection Service for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Rachel M. Yasser and P. Michael Cunningham, who prosecuted the case.
Lafayette Businessman Richard Buswell Sentenced to 126 Months in Prison for Investment Fraud Scheme that Cost Investors MillionsRead the Press Release
LAFAYETTE, La. –U.S. Attorney Stephanie A. Finley announced today that Lafayette investment firm owner Richard Buswell was sentenced to 126 months in prison for a scheme that cost victims millions of dollars.
Richard Joseph Buswell, 46, of Lafayette, was sentenced by U.S. District Judge Richard T. Haik for one count of wire fraud. Buswell was also sentenced to three years of supervised release, and was ordered to pay a $125,000 fine and $6,380,808.03 in restitution to victims of the scheme.
According to evidence presented at the July 24, 2013 guilty plea, Buswell worked as a licensed stockbroker from 2006 until 2009 in Lafayette for his company, Bowman Investment Group LLC. He used Brookstone Securities of Lakeland, Fla., as the company’s broker dealer. Buswell engaged in frequent and excessive stock trades in order to earn commissions. He also placed his clients into high risk products when the clients did not meet the requirements under federal security laws, rules and regulations. In order to do this, he falsified account applications concerning net worth and other client information so that some of the clients would appear to meet the requirements of the federal security laws, rules and regulations. As a result of these practices, Buswell received more than $1.7 million in commissions from Brookstone during 2008 and 2009. When the investments failed to produce a profit, clients lost more than $6 million.
Co-defendant Herbert S. “Steve” Fouke, 55, of Lafayette, was sentenced on May 14, 2014 to 30 months in prison and three years of supervised release for conspiracy to commit securities fraud, investment adviser fraud, wire fraud and mail fraud. He is jointly responsible with Buswell for paying restitution to the victims of the scheme. They were indicted in August of 2011.
“The defendant in this case misled investors who put their trust in him solely so that he could enrich himself illegally,” Finley stated. “He spent, in some cases, his clients’ life savings leaving them with nothing or in debt. I hope this sentence serves as a warning to those who are thinking about stealing from their customers. This office will continue to prosecute those who put their greed before the interests of well-meaning investors. The prosecutors and agents in this case are to be commended for all of their hard work.”
The FBI conducted the investigation. Assistant U.S. Attorney Kelly P. Uebinger prosecuted the case.
King County Man Sentenced to 7 Years in Prison for use of Firearm at Drug DealRead the Press Release
A south King County man was sentenced today in U.S. District Court in Seattle to seven years in prison for using a firearm during a drug crime that turned deadly, announced U.S. Attorney Jenny A. Durkan. LENNY BRIKN, JR, 19, of Federal Way, and his half-brother Deshawn Boykin attempted to rob two drug dealers of two pounds of marijuana. After holding the men at gunpoint, Boykin was fatally shot as he and BRIKN tried to run away. At sentencing U.S. District Judge Robert S. Lasnik said, “firearms in the hands of people who cannot control themselves continues to create tragedy in our community.”
“From any perspective, this case is a pure tragedy,” said U.S. Attorney Jenny A. Durkan. “One young man is going to prison and his brother is dead -- all over marijuana valued at less than $5,000. This is a further reminder that guns and drugs are a deadly combination.”
According to the records filed in King County Superior Court as well as the indictment, David Ross, 35 of Renton, Washington, and an associate arrived at a Federal Way apartment complex to sell marijuana to the two men. Ross was armed with a gun, despite having two previous felony drug convictions that prohibit him from possessing a firearm. BRIKN and Boykin drew “Mac 10” style semi-automatic pistols, ordered Ross and his associate to lie on the ground, and attempted to rob them of the marijuana they brought to the drug deal. BRIKN and Boykin ultimately ran away, and Ross drew his gun and fired multiple times at the fleeing men. Boykin was hit twice and died of his wounds at St. Francis Medical Center.
Ross is charged with conspiracy to distribute marijuana, unlawful possession of a firearm and discharging a firearm in furtherance of a drug trafficking crime. Discharging a firearm in furtherance of a drug trafficking crime carries a mandatory minimum ten year sentence in addition to any other sentence imposed in the case. Ross is scheduled for trial in January 2015.
The case was investigated by the Federal Way Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case is being prosecuted by Assistant United States Attorney Todd Greenberg.
Ketchikan Seasonal Worker Charged with Assault on a Federal OfficerRead the Press Release
Anchorage, Alaska-U.S. Attorney Karen L. Loeffler announced today that a Ketchikan man was arraigned on one charge of assault on a federal officer.
Dean Wesley Garcia, 23, was indicted September 16, 2014, on a sole count of assault on a federal officer. Garcia pled not guilty to the charge.
According to the information presented to the court, a National Oceanic and Atmospheric Administration (NOAA) Special Agent visited Garcia at his place of employment in response to a report of illegal sales of sport-caught halibut in Ketchikan, Alaska. While the agent was interviewing Garcia inside his business he noticed a large filet knife on a counter. Court documents allege that the agent moved the knife closer to him for officer safety purposes, at which point Garcia asked the agent, “are you scared?” and then Garcia grabbed the knife and began vigorously swinging the knife in the air in front of the agent placing him in fear of bodily injury. The agent was able to de-escalate the situation and nobody was physically injured.
Assistant U.S Attorney Jack S. Schmidt, who is prosecuting the case, indicated that the law provides for a maximum total sentence of 20 years in prison and 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 of the defendant.
The National Oceanic and Atmospheric Administration Office of Law Enforcement conducted the investigation leading to the indictment in this case. Garcia remains incarcerated pending trial.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.Justice Department Settles Lawsuit Against Texas Bus Company for Discriminating Against U.S. WorkersRead the Press Release
The Justice Department announced today that it reached a settlement with Autobuses Ejecutivos LLC, doing business as Omnibus Express, a bus company based in Houston, Texas. The settlement resolves a lawsuit filed in August 2013 by the department under the Immigration and Nationality Act’s (INA) antidiscrimination provision. The lawsuit alleged that the company discriminated against U.S. workers by preferring to hire workers on temporary H-2B visas for its bus driver positions.
Under the settlement agreement, Omnibus Express will establish a $208,000 fund to compensate victims of its discriminatory practices, pay $37,800 in civil penalties to the United States and be subject to monitoring of its hiring and recruiting practices for a two-year period. Individuals who sought bus driver positions with Omnibus Express between August 2012 and February 2013, but were not hired, should contact Joann Sazama at (202) 307-3092, or Ryan Thompson at (202) 616-5557.
“Federal law prohibits employers from discriminating on the basis of citizenship status in hiring and recruiting,” said Acting Assistant Attorney General Molly Moran for the Civil Rights Division. “The department is committed to investigating and prosecuting discriminatory hiring preferences that impede the ability of U.S. citizens and other work-authorized individuals to compete equally for employment.”
The Office of Special Counsel for Immigration-Related Unfair Employment Practices (OSC) is responsible for enforcing the anti-discrimination provision of the INA. Among other things, the statute prohibits citizenship status and national origin discrimination in hiring, firing or recruitment or referral for a fee; unfair documentary practices; retaliation; and intimidation. For more information about protections against employment discrimination under immigration laws, call OSC’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call OSC’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a free webinar at www.justice.gov/crt/about/osc/webinars.php; email [email protected]; or visit the website at www.justice.gov/crt/about/osc.
Applicants or employees who believe they were subjected to different documentary requirements based on their citizenship status, immigration status, or national origin; or discrimination based on their citizenship status, immigration status, or national origin in hiring, firing, or recruitment or referral for a fee, should contact OSC’s worker hotline for assistance.
Justice Department Seeks to Shut Down Ohio Tax Return PreparerRead the Press Release
The Justice Department announced today that the United States has filed a civil injunction suit against a Dayton, Ohio, man to enjoin him from preparing tax returns which understate his customer’s tax liabilities.
Rodger S. Thomas Sr. is alleged to have prepared tax returns for customers that claimed false business deductions on their Schedule C (profit and loss from business) and fictitious deductions on their Schedule A (itemized deductions) from 2006 through 2009 in a complaint filed in the U.S. District Court for the Southern District of Ohio. According to the complaint, Thomas also prepared false Forms 1099 in order to inflate customers’ income and maximize their Earned Income Tax Credits. The government alleged that Thomas would then report these payments on the Schedule C of his own income tax returns as expenses incurred by his business Ramjet Express. The complaint also alleged that Thomas failed to sign or affix a Preparer Tax Identification Number (PTIN) to many of the returns that he prepared.
In 2012, Thomas pleaded guilty to one count of making a false statement on an income tax return and one count of aiding and assisting in the filing of a false income tax return. He was subsequently sentenced to 24 months in prison. Thomas was released from prison in March 2014 and, according to the government’s complaint, has indicated that he intends to continue preparing tax returns. The United States seeks, among other things, that the court bar Thomas from preparing or assisting others in the preparation of a tax form that understates a tax liability. Additionally, the government is requesting that Thomas be required to identify himself on returns using his name and PTIN, keep a list of the names of individuals for whom he prepares federal tax returns, and provide the list of customers to the Internal Revenue Service (IRS) for inspection upon demand.
Return preparer fraud is one of the IRS' Dirty Dozen Tax Scams for 2014. The IRS has some tips on their website for choosing a tax preparer. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Related Materials:
United States v. Rodger S. Thomas Sr.
Complaint for Preliminary and Permanent InjunctionJury Imposes Death Sentence on a Las Vegas Man for Kidnapping and Murdering a 12-Year-Old GirlRead the Press Release
A federal jury in the Western District of Louisiana today returned a verdict imposing the death penalty on a Las Vegas man for the brutal kidnapping and murder of a 12-year-old girl. This case represents the first time the death penalty has been imposed in federal court in the Western District of Louisiana.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Stephanie A. Finley and Special Agent in Charge Michael J. Anderson of the FBI’s New Orleans Division made the announcement.
Thomas Sanders, 57, was convicted on Sept. 8, 2014, of one count of kidnapping resulting in death and one count of using a firearm during a crime of violence resulting in death, for the kidnap and murder of Lexis Roberts in the fall of 2010.
“This is a heartbreaking case,” said Assistant Attorney General Caldwell. “A young girl witnessed the murder of her mother, was held captive for days, and had her life cut tragically short by a senseless, brutal murder. We hope today’s verdict will help Lexis’s family as they continue to struggle with the loss of their loved ones.”
“These types of cases are never easy, but today we remember the victims, their families and their loved ones,” said U.S. Attorney Finley. “The nature of the crime and the level of violence involved are something that we never get used to no matter how long we have done this. The severity of the sentence imposed against Sanders underscores the senseless brutality of his acts against an innocent 12-year-old girl. Lexis Roberts was needlessly taken from a family that loved her, and she was denied the most fundamental right of life, and they were denied the joy of knowing what that life could have been. Still, we do not lose sight of the fact that this trial and sentencing also represent the right of due process that was extended to Sanders, and a jury of his peers has rendered justice. Nothing, no trial or sentence, can ever bring Lexis or her mother back, but we hope that the verdict brings some measure of closure to Lexis’s family. The prosecutors and the law enforcement agencies that assisted in this case are to be commended for their hard work. The importance of their collective efforts cannot be overstated.”
“Our thoughts and prayers go out to the family and friends of the victims who have endured unimaginable grief while awaiting the just verdict and sentence for such horrific crimes,” said FBI Special Agent in Charge Anderson.
Evidence admitted during trial established that Sanders met Suellen Roberts, 31, in the summer of 2010 when Roberts rented a storage unit at a warehouse in Las Vegas where Sanders worked. Roberts and Sanders began dating, and approximately two months later Roberts agreed that she and her 12-year-old daughter, Lexis, would go on a trip with Sanders over the Labor Day weekend to a wildlife park near the Grand Canyon. As they were returning to Nevada after three days of traveling, Sanders pulled off Interstate 40 in a remote location in the Arizona desert and shot Suellen Roberts in the head and forced Lexis Roberts into the car, keeping her captive.
Sanders drove several days across the country before he murdered Lexis Roberts in a wooded area in Catahoula Parish, Louisiana. Evidence at trial established that Sanders shot Lexis Roberts four times, cut her throat and left her body in the woods, where a hunter found her body on Oct. 8, 2010. A nationwide manhunt ensued, and Sanders was arrested on Nov. 14, 2010, at a truck stop in Gulfport, Mississippi, by FBI agents and a Harrison County Sheriff’s Deputy.
At trial, the jury heard a recorded confession in which Sanders admitted killing the mother and daughter.
This case was investigated by the FBI’s New Orleans Division, Central Louisiana Safe Streets Task Force, Catahoula Parish Sheriff’s Office, Harrison County Sheriff’s Office, Yavapai County Arizona Sheriff’s Office, Coconino County Arizona Sheriff’s Office, and the Las Vegas Metropolitan Police Department. Trial Attorney Julie Mosley of the Criminal Division’s Capital Case Section and Assistant U.S. Attorneys William J. Flanagan and Brandon B. Brown prosecuted the case.
# # #
Jury Imposes Death Sentence on a Las Vegas Man for Kidnap and Murder of a 12-year-old Girl in LouisianaRead the Press Release
ALEXANDRIA, La. – United States Attorney Stephanie A. Finley announced today that a federal jury in Alexandria, Louisiana, returned a verdict imposing the death penalty on a Las Vegas, Nevada, man for the kidnap and murder of a 12-year-old-girl.
On September 26, 2014, a federal jury in Alexandria, Louisiana, decided that Thomas Sanders, 57, should be put to death for the brutal kidnapping and murder of Lexis Roberts in the fall of 2010. During the penalty phase of the trial, the jury heard from a total of 18 witnesses called by the United States and by the defense. The jury determined that a sentence of death was appropriate for Sanders after deliberating for approximately seven hours. United States District Judge Dee D. Drell presided over the trial. This case represents the first time that the death penalty has been imposed in federal court in the Western District of Louisiana.
The penalty phase of the trial began on September 16, 2014, after the same jury found Sanders guilty of one count of kidnapping resulting in death and one count of using a firearm during a crime of violence resulting in death. Jury selection lasted eight days. Then the guilt phase began on Wednesday, September 3, and ended on Monday, September 8. The jury returned a guilty verdict after deliberating for about an hour.
During the penalty phase, jurors were asked to decide whether Sanders should be executed or spend the rest of his life in prison. Evidence admitted during trial established that Sanders met Suellen Roberts, 31, in the summer of 2010 when Roberts rented a storage unit at a warehouse in Las Vegas where Sanders worked. Roberts and Sanders began dating, and approximately two months later Roberts agreed that she and her 12-year-old daughter, Lexis, would go on a trip with Sanders over the Labor Day weekend to a wildlife park near the Grand Canyon. As they were returning to Nevada after three days of traveling, Sanders pulled off Interstate 40 in a remote location in the Arizona desert and fatally shot Suellen Roberts in the head and forced Lexis Roberts into the car, keeping her captive.
Sanders drove several days across the country before he murdered Lexis Roberts in a wooded area in Catahoula Parish, Louisiana. Evidence at trial established that Sanders shot Lexis Roberts four times, cut her throat, and left her body in the woods where a hunter found her body on October 8, 2010. A nation-wide manhunt ensued and Sanders was arrested on November 14, 2010, at a truck stop in Gulfport, Mississippi, by FBI agents and a Harrison County Sheriff's Deputy.
During the guilt phase of the trial, jurors heard from 16 witnesses who described Suellen Roberts’ relationship with Sanders, the sequence of events that led up to the murder, and how law enforcement established Sanders as the killer. Jurors also heard a recorded confession from Sanders in which Sanders admitted killing the mother and daughter. Evidence considered by the jury established that Sanders shot Lexis Roberts four times, cut her throat, and left her body in the woods. A forensic analysis determined that Sanders slashed Lexis Roberts’ throat with such force and violence that the knife left cut marks on her cervical vertebra.
Members of Roberts’ family testified at trial, including her grandmother, grandfather, and great-aunt. Testimony from family members shared with the jurors that Lexis was vulnerable and explained the devastating impact that the crime has had on their family. Her great-aunt testified that Lexis vacationed at her New Hampshire home every summer, with the most recent trip just weeks before Lexis was kidnapped and murdered by Sanders. Her aunt testified that during Lexis’ last trip to New Hampshire, she encouraged Lexis to write in two journals. Pages from the journals were introduced during the penalty phase and were considered by the jury. The journals helped establish that Lexis was trusting, and in one journal she wrote that she believed that nothing bad would ever happen to her.
Lexis Roberts’ grandfather testified that he encouraged Suellen and Lexis Roberts to move from New Hampshire to Las Vegas so that Suellen could find better employment. He told jurors that based on what happened to his daughter and granddaughter, he now suffers from guilt for encouraging them to move.
The penalty phase of the trial further established that Sanders’ crime was the result of substantial planning and premeditation and that Lexis Roberts was a vulnerable victim. Testimony included that of two of Lexis’ sixth grade teachers from Charles Silvestri Junior High in Las Vegas. Her math teacher told jurors that Lexis was extremely shy but very hard working. Her English teacher testified that Lexis was sweet and vulnerable. When asked to describe Lexis in one word, she replied “innocent.”
“These types of cases are never easy, but today we remember the victims, their families and their loved ones. The nature of the crime and the level of violence involved are something that we never get used to no matter how long we have done this. The severity of the sentence imposed against Sanders underscores the senseless brutality of his acts against an innocent 12-year-old girl,” Finley stated. “Lexis Roberts was needlessly taken from a family that loved her, and she was denied the most fundamental right of life, and they were denied the joy of knowing what that life could have been. Still, we do not lose sight of the fact that this trial and sentencing also represent the right of due process that was extended to Sanders, and a jury of his peers has rendered justice. Nothing, no trial or sentence, can ever bring Lexis or her mother back, but we hope that the verdict brings some measure of closure to Lexis’ family. The prosecutors and the law enforcement agencies that assisted in this case are to be commended for their hard work. The importance of their collective efforts cannot be overstated.”
“This is a heartbreaking case,” said Assistant Attorney General Leslie R. Caldwell. “A young girl witnessed the murder of her mother, was held captive for days, and had her life cut tragically short by a senseless, brutal murder. We hope today’s verdict will help Lexis’ family as they continue to struggle with the loss of their loved ones.”
FBI Special Agent in Charge Michael J. Anderson added, “Our thoughts and prayers go out to the family and friends of the victims who have endured unimaginable grief while awaiting the just verdict and sentence for such horrific crimes.”
The FBI, Central Louisiana Safe Streets Task Force, Catahoula Parish Sheriff’s Office, Harrison County Sheriff’s Office, Yavapai County Arizona Sheriff’s Office, Coconino County Arizona Sheriff’s Office, and the Las Vegas Metropolitan Police Department conducted the investigation. Assistant U.S. Attorney William J. Flanagan, Assistant U.S. Attorney Brandon B. Brown, and Trial Attorney Julie Mosley of the U.S. Department of Justice’s Capital Case Section prosecuted the case.
Jury Imposes Death Sentence on a Las Vegas Man for Kidnap and Murder of a 12 year-old Girl in LouisianaRead the Press Release
ALEXANDRIA, La. – United States Attorney Stephanie A. Finley announced today that a federal jury in Alexandria, Louisiana, returned a verdict imposing the death penalty on a Las Vegas, Nevada, man for the kidnap and murder of a 12-year-old-girl.
On September 26, 2014, a federal jury in Alexandria, Louisiana, decided that Thomas Sanders, 57, should be put to death for the brutal kidnapping and murder of Lexis Roberts in the fall of 2010. During the penalty phase of the trial, the jury heard from a total of 18 witnesses called by the United States and by the defense. The jury determined that a sentence of death was appropriate for Sanders after deliberating for approximately seven hours. United States District Judge Dee D. Drell presided over the trial. This case represents the first time that the death penalty has been imposed in federal court in the Western District of Louisiana.
The penalty phase of the trial began on September 16, 2014, after the same jury found Sanders guilty of one count of kidnapping resulting in death and one count of using a firearm during a crime of violence resulting in death. Jury selection lasted eight days. Then the guilt phase began on Wednesday, September 3, and ended on Monday, September 8. The jury returned a guilty verdict after deliberating for about an hour.
During the penalty phase, jurors were asked to decide whether Sanders should be executed or spend the rest of his life in prison. Evidence admitted during trial established that Sanders met Suellen Roberts, 31, in the summer of 2010 when Roberts rented a storage unit at a warehouse in Las Vegas where Sanders worked. Roberts and Sanders began dating, and approximately two months later Roberts agreed that she and her 12-year-old daughter, Lexis, would go on a trip with Sanders over the Labor Day weekend to a wildlife park near the Grand Canyon. As they were returning to Nevada after three days of traveling, Sanders pulled off Interstate 40 in a remote location in the Arizona desert and fatally shot Suellen Roberts in the head and forced Lexis Roberts into the car, keeping her captive.
Sanders drove several days across the country before he murdered Lexis Roberts in a wooded area in Catahoula Parish, Louisiana. Evidence at trial established that Sanders shot Lexis Roberts four times, cut her throat, and left her body in the woods where a hunter found her body on October 8, 2010. A nation-wide manhunt ensued and Sanders was arrested on November 14, 2010, at a truck stop in Gulfport, Mississippi, by FBI agents and a Harrison County Sheriff's Deputy.
During the guilt phase of the trial, jurors heard from 16 witnesses who described Suellen Roberts’ relationship with Sanders, the sequence of events that led up to the murder, and how law enforcement established Sanders as the killer. Jurors also heard a recorded confession from Sanders in which Sanders admitted killing the mother and daughter. Evidence considered by the jury established that Sanders shot Lexis Roberts four times, cut her throat, and left her body in the woods. A forensic analysis determined that Sanders slashed Lexis Roberts’ throat with such force and violence that the knife left cut marks on her cervical vertebra.
Members of Roberts’ family testified at trial, including her grandmother, grandfather, and great-aunt. Testimony from family members shared with the jurors that Lexis was vulnerable and explained the devastating impact that the crime has had on their family. Her great-aunt testified that Lexis vacationed at her New Hampshire home every summer, with the most recent trip just weeks before Lexis was kidnapped and murdered by Sanders. Her aunt testified that during Lexis’ last trip to New Hampshire, she encouraged Lexis to write in two journals. Pages from the journals were introduced during the penalty phase and were considered by the jury. The journals helped establish that Lexis was trusting, and in one journal she wrote that she believed that nothing bad would ever happen to her.
Lexis Roberts’ grandfather testified that he encouraged Suellen and Lexis Roberts to move from New Hampshire to Las Vegas so that Suellen could find better employment. He told jurors that based on what happened to his daughter and granddaughter, he now suffers from guilt for encouraging them to move.
The penalty phase of the trial further established that Sanders’ crime was the result of substantial planning and premeditation and that Lexis Roberts was a vulnerable victim. Testimony included that of two of Lexis’ sixth grade teachers from Charles Silvestri Junior High in Las Vegas. Her math teacher told jurors that Lexis was extremely shy but very hard working. Her English teacher testified that Lexis was sweet and vulnerable. When asked to describe Lexis in one word, she replied “innocent.”
“These types of cases are never easy, but today we remember the victims, their families and their loved ones. The nature of the crime and the level of violence involved are something that we never get used to no matter how long we have done this. The severity of the sentence imposed against Sanders underscores the senseless brutality of his acts against an innocent 12-year-old girl,” Finley stated. “Lexis Roberts was needlessly taken from a family that loved her, and she was denied the most fundamental right of life, and they were denied the joy of knowing what that life could have been. Still, we do not lose sight of the fact that this trial and sentencing also represent the right of due process that was extended to Sanders, and a jury of his peers has rendered justice. Nothing, no trial or sentence, can ever bring Lexis or her mother back, but we hope that the verdict brings some measure of closure to Lexis’ family. The prosecutors and the law enforcement agencies that assisted in this case are to be commended for their hard work. The importance of their collective efforts cannot be overstated.”
“This is a heartbreaking case,” said Assistant Attorney General Leslie R. Caldwell. “A young girl witnessed the murder of her mother, was held captive for days, and had her life cut tragically short by a senseless, brutal murder. We hope today’s verdict will help Lexis’ family as they continue to struggle with the loss of their loved ones.”
FBI Special Agent in Charge Michael J. Anderson added, “Our thoughts and prayers go out to the family and friends of the victims who have endured unimaginable grief while awaiting the just verdict and sentence for such horrific crimes.”
The FBI, Central Louisiana Safe Streets Task Force, Catahoula Parish Sheriff’s Office, Harrison County Sheriff’s Office, Yavapai County Arizona Sheriff’s Office, Coconino County Arizona Sheriff’s Office, and the Las Vegas Metropolitan Police Department conducted the investigation. Assistant U.S. Attorney William J. Flanagan, Assistant U.S. Attorney Brandon B. Brown, and Trial Attorney Julie Mosley of the U.S. Department of Justice’s Capital Case Section prosecuted the case.
Jury Finds Former Bank Director Guilty of Embezzling FundsRead the Press Release
PITTSBURGH - After deliberating eight hours, over two days, a federal jury of five men and seven women found Michael P. Bernick guilty of nine counts of misapplication of funds by a bank director, United States Attorney David J. Hickton announced today.
Michael P. Bernick, 51, of Pittsburgh, PA, was tried before United States District Judge Arthur J. Schwab in Pittsburgh, Pennsylvania.
According to Assistant United States Attorney Carolyn J. Bloch, who prosecuted the case with the assistance of Special Assistant United States Attorney Regina Sandler of the Federal Deposit Insurance Corporation, the evidence presented at trial established that Bernick, a Director of the Metropolitan Savings Bank, formerly located in the Lawrenceville section of Pittsburgh, embezzled and misapplied in excess of $350,000 from the bank between January 2005 and March 2006. Donna Shebetich, Bernick’s girlfriend and the former Director and Vice President of Metropolitan, provided him with nine monetary disbursements from the bank’s checking account in the form of seven cashier’s checks and two wire transfers payable to Bernick, himself, or to financial institutions used to pay off his loans.
Bernick did not complete any loan applications, sign notes, or provide security for the monetary advances. Metropolitan’s procedures required that all advances be approved by the Board of Directors. Neither Bernick nor Shebetich sought the authorization from the Board of Directors, either before or after the advances were extended. Shebetich is currently serving a six-year term of imprisonment for filing false quarterly reports with the FDIC, which further secreted Bernick’s conduct.
Judge Schwab scheduled sentencing for Feb. 19, 2015, at 9:30 a.m. The law provides for a total sentence at each count of 30 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based on the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued defendant on bond.
The Federal Deposit Insurance Corporation and the Federal Bureau of Investigation conducted the investigation that led to the prosecution of Bernick.
Jefferson County Man Indicted on Federal Bank Robbery ChargesRead the Press Release
St. Louis, MO – CHRISTOPHER DAVID HENDRICKS, JR. was indicted for his alleged August 29 robbery of the First State Community Bank in DeSoto, Missouri.
Hendricks, Hillsboro, MO, was indicted by a federal grand jury on one felony count of robbery of a federally-insured institution. He appeared for arraignment in federal court this morning.
If convicted, this charge carries a maximum penalty of 20 years in prison and/or fines up to $250,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney Tom Mehan is handling the case for the U.S. Attorney’s Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.Japanese Company Agrees to Plead Guilty to Price Fixing on Ocean Shipping Services for Cars and TrucksRead the Press Release
Kawasaki Kisen Kaisha Ltd. (K-Line), a Japanese corporation, has agreed to plead guilty and to pay a $67.7 million criminal fine for its involvement in a conspiracy to fix prices, allocate customers, and rig bids of international ocean shipping services for roll-on, roll-off cargo, such as cars and trucks, to and from the United States and elsewhere, the Department of Justice announced today.
According to a one-count felony charge filed today in U.S. District Court for the District of Maryland in Baltimore, K-Line conspired to suppress and eliminate competition by allocating customers and routes, rigging bids and fixing prices for the sale of international ocean shipments of roll-on, roll-off cargo to and from the United States and elsewhere, including the Port of Baltimore. K-Line participated in the conspiracy from at least as early as February 1997 until at least September 2012. K-Line has agreed to cooperate with the Department’s ongoing antitrust investigation. The plea agreement is subject to court approval.
Roll-on, roll-off cargo is non-containerized cargo that can be both rolled onto and rolled off of an ocean-going vessel. Examples of this cargo include new and used cars and trucks and construction and agricultural equipment.
“Our efforts exposed a long-running global conspiracy that operated globally, affecting the shipping costs of staggering numbers of cars, into and out of the Port of Baltimore, and other ports in the United States and across the globe. Today’s announcement demonstrates our continuing resolve to bring the members of this conspiracy to justice. ” said Bill Baer, Assistant Attorney General in charge of the Department of Justice’s Antitrust Division. “We are continuing our efforts to ensure that both the corporations and individuals involved in this cartel are held accountable for their acts and the harm they inflicted on American consumers.”
According to the charge, K-Line and its co-conspirators conspired by, among other things, agreeing – during meetings and communications – on prices, allocating customers, agreeing to refrain from bidding against one another and exchanging customer pricing information. The department said the companies then charged rates in accordance with those agreements for international ocean shipping services for certain roll-on, roll-off cargo to and from the United States and elsewhere at collusive and non-competitive prices.
K-Line is charged with price fixing in violation of the Sherman Act, which carries a maximum penalty of a $100 million criminal fine for corporations. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.
Today’s charge is the result of an ongoing federal antitrust investigation into price fixing, bid rigging, and other anticompetitive conduct in the international roll-on, roll-off ocean shipping industry, which is being conducted by the Antitrust Division’s Washington Criminal I Section and the FBI’s Baltimore Field Office, along with assistance from the U.S. Customs and Border Protection Office of Internal Affairs, Washington Field Office/Special Investigations Unit. Anyone with information in connection with this investigation is urged to call the Antitrust Division’s Washington Criminal I Section at 202-307-6694, visit www.justice.gov/atr/contact/newcase.html, or call the FBI’s Baltimore Field Office at 410-265-8080.
Indictments Charge 40 Alleged Drug TraffickersRead the Press Release
Drug gang used Chester playground to stash drugs and guns
PHILADELPHIA – Federal, state, and local law enforcement, today, arrested more than 30 people on charges of distributing drugs in and around the city of Chester, PA. The operation targeted alleged members of the violent Rose and Upland Drug Trafficking Group (“DTG”) and coincided with the unsealing of 14 indictments charging 40 people. The group is charged with selling drugs, illegally carrying guns and stashing both drugs and guns in a neighborhood playground.
The main indictment is a 261-count superseding indictment that charges 22 of the 40 defendants with operating a drug market within the Rose and Upland neighborhood on the east side of Chester City. According to the indictment, William Dorsey ran the operation, sold multiple kilograms of cocaine, often in the form of crack, to members of the group and others. One of the group’s largest alleged cocaine and heroin suppliers, Paris Church, has been charged in five separate indictments alleging that he, along with others, distributed and attempted to obtain approximately 25 kilograms of cocaine for re-distribution.
The charges were announced today by United States Attorney Zane David Memeger, Delaware County District Attorney Jack Whelan, Drug Enforcement Administration Acting Special Agent-in-Charge Robert R. Niczyporowicz, FBI Special Agent-in-Charge Edward J. Hanko, and Chester Police Chief Joseph Bail.
According to the superseding indictment, the DTG was distributing cocaine, crack cocaine, and heroin to customers in their territory and elsewhere between September 2012 and 2014. Charged with Dorsey are: Donald Womack, Sr., Paris Church, Braheem Edwards, Naim Butler, Ronell Whitehead, Michael Lewis, Breon Burton, JaVaughn Anderson, Robert Duson, Spencer Payne, Satchel Johnson, Alonzo Jones, Jamear McGurn, Classie Mae Dorsey, Herman Purnell, Dondre Ellis, Erven Towers-Rolon, John Dennis, Charles Stansbury, Waali Shepherd, and Kareem York. The defendants are also charged with maintaining a drug house, possessing firearms in furtherance of drug trafficking crimes, and distributing cocaine, crack and heroin within 1,000 feet of area schools and a playground. Some of the defendants are also charged with being felons in possession of firearms. During the investigation, 15 firearms were recovered.
Several other individuals are charged in separate indictments with drug trafficking conspiracies and other drug distribution offenses. Included in those indictments are: Kareem Bannister, George King, Nathaniel Coles, Lamont Carter, Rafael Hunt-Irving, Michael Pinkney, Solomon Whitaker, Shmeca Melvin, Anthony Floyd (of North Carolina), Steven Miller (of Maryland), and Anthony Potter, Shawn Mills, Tiffany Beauford, Farud Gigetts, Avery Mosley, Al-Ghani Rasheed, Steven Crews, and LaQuan Allen.
According to the superseding indictment, members of the DTG who sold cocaine hid the drugs in various "stash" locations in order to avoid having drugs on them if they were stopped by police. Those stash locations included playgrounds, abandoned houses, alley ways, trash cans, mailboxes, windowsills, and other locations in the neighborhood. Members of the RUDTG controlled the drug sales in the Rose and Upland geographic territory and did not permit non-group members to sell drugs in that area. To protect their territory and drug trafficking activities, members routinely carried, and sometimes used, loaded firearms or had firearms available in hidden locations, including their stash locations.
“The people who live in the city of Chester, particularly in the area surrounding Rose and Upland Streets, deserve a break,” said Memeger. “They deserve better. And we will keep going back there until we release the choke hold these drug organizations have on that community. This is the third major multi–agency law enforcement initiative in that city and we will continue to commit the federal resources necessary to free the many good, hardworking citizens who call Chester home from violent drug traffickers.”
"Today, a major step was taken to make the City of Chester, PA a safer place” said DEA Acting Special Agent-in-Charge Bob R. Niczyporowicz. “The outstanding cooperation between the local, state and federal partners utilizing their resources led to the infiltration and dismantlement of this violent DTO, which had a stronghold on the streets of Chester. Taking the entire hierarchy of this organization off the streets should have a significant impact and help improve the safety and welfare of the residents of Chester.”
“These arrests dismantle an insidious drug trafficking organization that operated throughout the city for years and will make a significant dent in criminal activity and violence not only in Chester but in surrounding communities,” said District Attorney Jack Whelan. “This is an excellent example of collaboration among law enforcement that sends a clear message that we are continuing to aggressively work together to address the violent gang problems that communities like Chester have faced for too long.”
“Residents of a city blighted by violence often feel like law enforcement has just given up,” said FBI Special Agent-in-Charge Ed J. Hanko. “Well, that’s clearly not the case with the FBI, and all of the partners involved in today’s arrests. We’ll keep working to make Chester’s streets safer -- corner by corner, block by block."
“In my 43 years of police work, I’m most amazed by the good, old-fashioned, boots-on-the-ground law enforcement effort that achieved today’s result,” said Chester Police Chief Joseph Bail. “Running a close second is the collaborative focus among the local, state, and federal agencies, all in the name of making Chester a safer place.”
For information regarding the defendants, including potential sentences, see attached chart.
The government has given notice of intent to forfeit 15 firearms seized during the investigation, along with approximately $1.8 million proceeds derived from the crimes charged.
The case was investigated by the Delaware County Office of the District Attorney’s Criminal Investigation Division, the Drug Enforcement Administration, the Federal Bureau of Investigation, the Chester Police Department, and the Pennsylvania State Police. Also providing substantial manpower and assistance in the arrests were agents from the United States Marshall Service and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorneys Faithe Moore Taylor, Ashley K. Lunkenheimer, and A. Nicole Phillips.
Defendant Information
Click here to see indictments for: Dorsey,etal; Rasheed; Gigetts; Coles; Carter; Womack; Church,etal; Church,Womack; Potter; Mosley; Mills etal; Butler; Bannister; Allen
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Gardiner Man Indicted on Pharmacy Robbery ChargeRead the Press Release
Contact: Julia M. Lipez
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Robert
Richard, 26, of Gardiner, Maine, was indicted by a federal grand jury in Portland on Tuesday
and charged with Interference with Commerce by Robbery, in connection with the November 28,
2013 (Thanksgiving Day) robbery of the Rite Aid pharmacy in Bridgton, Maine.Court records reveal that Richard was arrested and made his first appearance in federal
court yesterday. A detention hearing is scheduled for Tuesday, September 30, 2014. If
convicted, Richard faces up to 20 years in prison and a $250,000 fine.The case was investigated by the Federal Bureau of Investigation and the Bridgton Police
Department, with assistance from the Augusta and Gardiner Police Departments, and the
Kennebec County Sheriff’s Office.An indictment is merely an accusation, and a defendant is presumed innocent unless
proven guilty in a court of law.Four Plead Guilty in Million Dollar Bank Bribery CaseRead the Press Release
SAN DIEGO - Israel Hechter, the owner of San Diego-based mortgage investment firms Ocean 18, LLC, and Note Tracker Corporation, admitted in federal court today that he paid $1 million in bribes to bank insiders at J.P. Morgan Chase Bank, GMAC Mortgage, LLC, and National City Bank.
According to his plea agreement, in exchange for the bribes, the bankers arranged for Hechter to win bids to purchase mortgage loans issued by the banks and sold on the secondary market. In order to make sure that Hechter’s bids won, the bankers corrupted the process by altering bids, rejecting other bids, and erasing or ignoring bids from qualified competitors. The bankers also rigged the bidding by supplying Hechter with confidential information about prices and competing bids.
Assistant U.S. Attorney Phillip L.B. Halpern noted in court today that it was essential that the Department of Justice police the $10 trillion secondary mortgage market to ensure that there was a level playing field for all investors. “Individuals and corrupt bank employees who attempt to tilt this playing field for their own advantage cannot be tolerated,” he told the court.
Hechter’s brother, Amir Hechter, and his business associate, Jack Prober, pleaded guilty on Wednesday to participating in the conspiracy. Both Prober and Amir Hechter admitted writing personal checks to the bankers in order to assist the bankers in evading taxes on the illegal income. Israel and Amir’s father, Zeev Hechter, also admitted participating in the conspiracy. In entering his guilty plea on Tuesday, Zeev Hechter admitted hand-delivering approximately $330,000 in cash to GMAC banker Robert Moreno. In addition to meeting Zeev Hechter on New York City street corners, Moreno met him at Hechter’s car wash where the conspirators “laundered” the bribes. Each time they met, Zeev Hechter handed Moreno a bag containing tens of thousands of dollars in cash.
Moreno was arrested on July 15, 2014, for his alleged role in the conspiracy. As alleged in his charging documents, Moreno accepted hundreds of thousands of dollars in bribes in return for steering GMAC mortgages to Hechter’s company. After this relationship developed, Moreno allegedly used his position at the bank to help Hechter win bids to purchase mortgages – which Hechter previously had trouble winning. Moreno’s case is pending before U.S. District Judge Roger T. Benitez. A trial date has not been set.
According to his plea agreement, Israel Hechter and his coconspirators attempted to cover up the bribes by pretending that they were legitimate “commissions” unrelated to the bankers’ positions with the banks, using a phony “Consulting Agreement,” a sham business and a corresponding bank account to disguise the bribes.
Many of the mortgages at issue were non-performing or distressed second mortgages. Israel Hechter pooled the loans and sold share of the pools to investors, usually friends and family members including Zeev Hechter, Amir Hechter, and Jack Prober, each of whom invested in the pools. After purchase, Ocean 18, LLC would service the loans and collect monthly payments from the borrowers, or would initiate foreclosure proceedings when the borrowers defaulted. The investors made money when borrowers made payments, sold the properties, or after foreclosure and re-sale.
The mortgages at issue were purchased on the secondary market, after the banks had issued funds to homeowner borrowers. Secondary purchasers of mortgages provide primary lenders with additional capital and reduced credit risk, and in turn provide borrowers with greater access to mortgage loans. The secondary mortgage market in the United States exceeds $10 trillion.
Each of the four guilty pleas were taken before U.S Magistrate Judge Mitchell D. Dembin. The defendants are scheduled to be sentenced by Judge Benitez on January 5, 2015, at 9 a.m.
“People who think they can manipulate and bribe their way into the winner’s circle should take note: The integrity of our financial system is not for sale,” said U.S. Attorney Laura Duffy. “This behavior is criminal, and there are consequences.”
“The defendants in this case knowingly engaged in a pattern of corruption by paying hundreds of thousands of dollars in bribes to those responsible for ensuring the integrity of financial transactions,” said FBI Acting Special Agent in Charge, Robert Howe. “Today's conviction sends a clear message that the FBI will not allow greed and corruption to undermine our financial markets. The FBI will continue to pursue these cases to ensure confidence and trust in our financial markets.”
“Professionals, including bankers who line their pockets with the payment of illicit bribes, should know they will not go undetected and will be held accountable,” said IRS Criminal Investigation’s Special Agent in Charge Erick Martinez. “IRS Criminal Investigation is working hard to ensure that all forms of income are taxed, including income from illegal sources.”
The swift resolution of these bribery and tax charges was the result of coordinated investigations by the Federal Bureau of Investigation, the Federal Housing Finance Agency – Office of Inspector General, and Internal Revenue Service, Criminal Investigation.
DEFENDANTS PLEADING GUILTY Israel Hechter Age: 47 San Diego, CA Amir Hechter Age: 42 San Diego, CA Jack Prober Age: 56 La Jolla, CA Zeev Hechter Age: 68 Aventura, FL CHARGESConspiracy to commit bank bribery and tax evasion, in violation of 18 U.S.C. § 371.
Maximum Penalties: 5 years in prison, $250,000 fine or twice the pecuniary gain or loss resulting from the offense, $100 special assessment, restitution.
DEFENDANT FACING CHARGES Robert Moreno Age: 42 Tempe, AZ CHARGESBank bribery, in violation of 18 U.S.C. § 215
Maximum Penalties: 30 years in prison, $1,000,0000 fine or three times the value of the bribe, $100 special assessment, restitution
INVESTIGATING AGENCIESFederal Bureau of Investigation
Federal Housing Finance Agency – Office of Inspector General
Internal Revenue Service, Criminal Investigation*As to defendant Robert Moreno, the public is reminded that the charges are not evidence that the defendant committed the crime charged. The defendant is presumed innocent until the United States meets its burden in court of proving guilt beyond a reasonable doubt.
Former Owner of Durable Medical Equipment Company Arrested in Health Care Fraud and Money Laundering SchemeRead the Press Release
A Miami man was arrested today on health care fraud and money laundering charges in connection with an alleged $24 million scheme to defraud Medicare.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division; U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida; Special Agent in Charge George L. Piro of the FBI’s Miami Field Office; Special Agent in Charge Paul Wysopal of the FBI’s Tampa Field Office; Special Agent in Charge Perrye K. Turner of the FBI’s Houston Field Office; Special Agent in Charge Derrick Jackson of the U.S. Department of Health and Human Services, Office of Inspector General’s (HHS-OIG) Miami Regional Office; and Special Agent in Charge Mike Fields of HHS-OIG’s Dallas Regional Office made the announcement.
Angel M. Mirabal, 61, of Miami, was arrested on a previously sealed indictment returned by a grand jury in the Southern District of Florida charging him with conspiracy to commit health care fraud and conspiracy to commit money laundering of health care fraud proceeds, as well as 10 substantive money laundering counts.
According to the indictment, Mirabal operated Quick Solutions Medical Supplies Inc., a durable medical equipment (DME) supply company located in Houston, Texas. From April 2010 through July 2013, Mirabal allegedly conspired with individuals who operated other DME companies to submit approximately $24 million in fraudulent claims for reimbursement to Medicare. These claims represented that Quick Solutions and others provided DME, such as wound care supplies, to Medicare beneficiaries when, in fact, these items were not medically necessary and were not actually provided. Many of the Medicare beneficiaries who supposedly received DME from Quick Solutions resided hundreds of miles away in Miami. Mirabal and his co-conspirators allegedly used fraudulent shell companies to launder and disburse the proceeds from the health care fraud scheme.
An indictment is only an accusation, and a defendant is presumed innocent until and unless proven guilty.
This case is being investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and U.S. Attorney’s Office for the Southern District of Florida. This case is being prosecuted by Trial Attorney Timothy P. Loper of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,000 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Team (HEAT), go to: www.stopmedicarefraud.gov.
# # #
Former Owner of Durable Medical Equipment Company Arrested in Health Care Fraud and Money Laundering SchemeRead the Press Release
A Miami man was arrested today on health care fraud and money laundering charges in connection with an alleged $24 million scheme to defraud Medicare.
U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida; Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division; Special Agent in Charge George L. Piro of the FBI’s Miami Field Office; Special Agent in Charge Paul Wysopal of the FBI’s Tampa Field Office; Special Agent in Charge Perrye K. Turner of the FBI’s Houston Field Office; Special Agent in Charge Derrick Jackson of the U.S. Department of Health and Human Services, Office of Inspector General’s (HHS-OIG) Miami Regional Office; and Special Agent in Charge Mike Fields of HHS-OIG’s Dallas Regional Office made the announcement.
Angel M. Mirabal, 61, of Miami, was arrested on a previously sealed indictment returned by a grand jury in the Southern District of Florida charging him with conspiracy to commit health care fraud and conspiracy to commit money laundering of health care fraud proceeds, as well as 10 substantive money laundering counts.
According to the indictment, Mirabal operated Quick Solutions Medical Supplies Inc., a durable medical equipment (DME) supply company located in Houston, Texas. From April 2010 through July 2013, Mirabal allegedly conspired with individuals who operated other DME companies to submit approximately $24 million in fraudulent claims for reimbursement to Medicare. These claims represented that Quick Solutions and others provided DME, such as wound care supplies, to Medicare beneficiaries when, in fact, these items were not medically necessary and were not actually provided. Many of the Medicare beneficiaries who supposedly received DME from Quick Solutions resided hundreds of miles away in Miami. Mirabal and his co-conspirators allegedly used fraudulent shell companies to launder and disburse the proceeds from the health care fraud scheme.
An indictment is only an accusation, and a defendant is presumed innocent until and unless proven guilty.
This case is being investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and U.S. Attorney’s Office for the Southern District of Florida. This case is being prosecuted by Trial Attorney Timothy P. Loper of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,000 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Team (HEAT), go to: www.stopmedicarefraud.gov.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former Office Manager for Chatham Fire Protection District Pleads Guilty to Theft of FundsRead the Press Release
Springfield, Ill. – A former office manager for the Chatham Fire Protection District, Dawn D. Sanchez, 45, of Auburn, Ill., pled guilty today to using her position to take more than $50,000 from the district for her personal use. Sanchez waived indictment and entered a plea of guilty to one count of mail fraud before U.S. Magistrate Judge Thomas P. Schanzle-Haskins.
As office manager, Sanchez had check-signing authority and control over the fire protection district’s bank account and credit and debit cards, and was responsible for paying the district’s business expenses. During her court appearance, and according to court documents, Sanchez admitted that from Jan. 1, 2009, to July 31, 2012, she fraudulently and repeatedly wrote CFPD checks to herself for payment of personal expenses of approximately $32,000 and used the CFPD credit and debit cards to purchase more than $15,000 in money orders that were cashed and deposited into her personal bank account. Sanchez admitted that the funds, estimated at $52,520, were used to pay various personal expenses including insurance, credit card payments, and repayment on a loan.
The investigation was conducted by agents of the U.S. Postal Inspection Service and the Chatham Police Department with the full cooperation of the Chatham Fire Protection District. The case is being prosecuted by Assistant U.S. Attorney Timothy A. Bass.
Sanchez is currently on bond awaiting sentencing, which is scheduled on Jan. 26, 2015, before U.S. District Judge Sue E. Myerscough.
At sentencing, Sanchez faces a maximum possible penalty of up to 20 years in prison, a fine of up to $1,000,000, and a term of supervised release of up to five years to follow any term of imprisonment. The defendant may also be ordered to pay restitution.
Former Manager of Bronx-Whitestone Bridge Construction Project Charged in White Plains Federal Court with FraudRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, today announced the filing of a criminal Complaint charging AARON TUBBS, 43, of Hastings-on-Hudson, Westchester County, New York, formerly a Regional Manager at a General Contractor that performed an approximately $192 million construction project on Bronx-Whitestone Bridge (the “Bridge Project”), with wire fraud in connection with the requirements for participation by minority-owned and women-owned businesses on the Bridge Project. TUBBS surrendered today and was presented on the charge in the Complaint before U.S. Magistrate Judge Paul E. Davison in the federal courthouse in White Plains.
U.S. Attorney Preet Bharara stated: “A major construction project was awarded precisely because it opened opportunities for minority-owned and women-owned businesses. As alleged, these businesses were unlawfully bypassed and deprived of participation. I want to commend our partners: the Offices of Inspector General for the U.S. Department of Transportation, the Port Authority and the Metropolitan Transportation Authority, and the New York State Department of Transportation’s Investigations bureau.”
According to allegations in the Complaint:
The Office of Inspector General of the United States Department of Transportation, together with the Metropolitan Transit Authority (“MTA”) Inspector General, the Port Authority of New York and New Jersey Office of Inspector General, and the New York State Department of Transportation, have conducted an investigation of a company, hereinafter referred to as “MBE-1,” used by general contractors repeatedly on large construction projects in Westchester County, the Bronx, Manhattan, Staten Island, and elsewhere, to obtain credit toward goals required for participation by minority-owned business enterprises and women-owned business enterprises (“MBEs” and “WBEs”) and/or their federal equivalent, disadvantaged business entity (“DBE”) goals. During the investigation, based on numerous interviews and the review of documents, agents learned that MBE-1 was repeatedly used in a scheme, described below, known as “DBE fraud,” “MBE fraud,” and “pass through fraud,” to give the appearance that a minority-owned or woman-owned entity was performing work on a government-funded construction project when in fact other companies, which were not minority-owned or woman-owned, did the work. Among the construction projects in which MBE-1 was used in a fraudulent scheme was the Bronx-Whitestone Bridge Construction Project.
In connection with the investigation, the sole owner and principal of MBE-1 was convicted upon a guilty plea in March 2013, in United States District Court in White Plains, New York, of mail fraud.
The Bronx-Whitestone Bridge
Construction Project
In or about 2008, the MTA initiated a major construction project on the Bronx-Whitestone Bridge (the “Bridge Project”), a suspension bridge over the East River that connects the Bronx and Queens. The project was to replace the Bronx approach and perform repairs to the Queens approach of the Bridge. The MTA estimated that the project would cost approximately $170 million and take approximately four years to complete.
As part of its solicitation for bids on the Bridge Project, the MTA – a “state agency” for purposes of the MBE/WBE Provisions – specified that the Bridge Project was funded by New York State, and therefore that New York State Executive Law Article 15-A governing participation on construction projects by MBEs and WBEs applied. The MTA set an MBE/WBE goal on the Bridge Project of 7% participation by MBEs and 3% by WBEs, for a total of 10%. In connection with setting the MBE/WBE goal, the MTA noted that there were subcontracting opportunities on the Bridge Project, and provided a list of certified MBEs and WBEs with the capability of providing services on the job.
On or about October 23, 2008, a general contractor (“General Contractor-1”) was awarded the contract on the Bridge Project, at a price of approximately $192 million.
In or about 2008 and 2009, AARON TUBBS, the defendant, was a Regional Manager at General Contractor-1. TUBBS participated in, among other things, the award and performance of subcontracts to provide structural steel on the Bridge Project.
In connection with the Bridge Project, General Contractor-1 claimed, in utilization forms and compliance reports, that structural steel would be supplied by a certified MBE, MBE-1, but actually the structural steel was provided by other companies, and MBE-1 was used as a pass-through. In fact, MBE-1 did not meaningfully participate in the Bridge Project, and it received only a small fraction of the state funds that General Contractor-1 represented it had received. The principal of MBE-1 once attempted to enter the Bridge Project job site, and was denied entry.
AARON TUBBS, the defendant, in his capacity as a Regional Manager at General Contractor-1, participated in setting up the fraudulent scheme, creating the pass-through arrangement between General Contractor-1, the MBE, and the actual steel suppliers. For example, according to a representative of a steel supplier (“Supplier 1”), after Supplier 1 agreed to a contract with General Contractor-1, AARON TUBBS, the defendant, informed Supplier 1 that General Contractor-1 would run purchases of structural steel from Supplier 1 through MBE-1 for purposes of meeting minority requirements. Thereafter, in order to purchase the structural steel from steel manufacturers, General Contractor-1 received from Supplier 1 purchase order information, arranged for the information to be placed on letterhead of MBE-1, and arranged for the purchase order to be submitted to the steel manufacturer.
In addition, AARON TUBBS, the defendant, and others at General Contractor-1, sought to employ the same pass-through scheme used on the Bridge Project on another project. The St. George Ferry Terminal construction project was a federally-funded job under the American Recovery and Reinvestment Act of 2009, in Staten Island. The construction project had a goal of nine percent participation by Disadvantaged Business Entities (“DBEs”). General Contractor-1 sought to meet this goal using a DBE as a pass-through. For example, on or about November 9, 2009, General Contractor-1’s field engineer sent an email to another representative of General Contractor-1 stating, in part, “We will be handling rebar at St. George similar to how [General Contractor-1] set up the Whitestone structural steel purchase with [MBE-1]. Aaron Tubbs mentioned that I get in contact with you to describe that process, as we will have our rebar installer, [a purported DBE], manage the material with [another non-DBE company].”
TUBBS is charged with wire fraud, in violation of Title 18, United States Code, Sections 1343 and 2, and faces a maximum of 20 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Bharara praised the investigative work of USDOT’s Office of Inspector General, the Port Authority Office of Inspector General, the Metropolitan Transportation Authority Office of Inspector General, and the New York State Department of Transportation’s Investigations Bureau.
The prosecution is being handled by the Office’s White Plains Division. Assistant U.S. Attorney Benjamin Allee is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
TubbsAaron.Complaint
Former Erie Man Sentenced to 12 Years in Prison Violating Federal Firearms LawsRead the Press Release
ERIE, Pa. - A former resident of Erie, Pennsylvania, has been sentenced in federal court to 144 months in prison on his conviction of violating federal firearms laws, United States Attorney David J. Hickton announced today.
Senior United States District Judge Maurice B. Cohill, Jr. imposed the sentence on Joseph Lee Ollie, 56.
According to information presented to the court, on December 5, 2012, Ollie pled guilty to falsifying statements on an application/record of sale in an attempt to purchase a firearm. In a separate case, on January 29, 2014, Ollie was found guilty by a jury of unlawfully possessing a stolen Mossberg Model 500 shotgun while being prohibited from firearm possession because he is a convicted felon. In addition, at the time Ollie possessed the stolen firearm, he was subject to a domestic abuse restraining order, prohibiting him from firearm possession.
Assistant United States Attorney Marshall J. Piccinini prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Pennsylvania State Police for the investigation leading to the successful prosecution of Ollie.
Final Member of Valley Drug Rip Crew Sentenced in Case That Resulted in A DeathRead the Press Release
PHOENIX – On Sept. 25, 2014, the final defendant was sentenced in connection with Operation Push the Pawn – an investigation of a Phoenix area drug rip crew conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Drug Enforcement Administration, Internal Revenue Service and the Phoenix Police Department. Fourteen defendants were sentenced in the case and seven defendants received sentences that ranged from 6 to 15 years in prison for their roles in armed robberies, marijuana trafficking and a murder that took place on Jan. 27, 2011.
Beginning in Sept. 2009 to Jan. 27, 2011, the defendants were part of a drug trafficking organization and drug robbery crew that bought and stole marijuana from drug dealers. The stolen marijuana would be divided amongst the robbery crew members as payment, and they would then sell the stolen marijuana either locally or out of state. On Jan. 27, 2011, some of the defendants planned to conduct an armed robbery to steal 200 pounds of marijuana from drug dealers and when they attempted to take the marijuana by force, a passenger of the vehicle containing the marijuana shot multiple rounds at the robbery crew members, who returned fire. During the exchange, Brandon Edwards was fatally wounded. Both vehicles left at a high rate of speed, leaving Brandon Edwards in the middle of the street. Police responded to the location and transported Edwards to a local hospital where he was pronounced dead from gunshot wounds.
The following sentences were imposed by U.S. District Court Judge David Campbell:
On April 28, 2014, William Cobb, 29, of Phoenix, Ariz., was sentenced to 8.5 years in prison. Cobb pleaded guilty on Feb. 3, 2014, to possession with intent to distribute marijuana, and aid and abet possession and use of a firearm during and in relation to a drug trafficking offense or a crime of violence.
On May 12, 2014, Robert Barber, 32, of Phoenix, Ariz., was sentenced to 6 years in prison. Barber pleaded guilty on Feb. 4, 2014, to possession and use of a firearm during and in relation to a drug trafficking offense or a crime of violence.
On May 12, 2014, Muhammed Muhammed, 30, of Phoenix, Ariz., was sentenced to 15 years in prison. Muhammed pleaded guilty on Feb. 7, 2014, to possession and use of a firearm during and in relation to a drug trafficking offense or a crime of violence resulting in death.
On May 22, 2014, Daris Bush, 30, of Chandler, Ariz., was sentenced to 13 years in prison. Bush pleaded guilty on Feb. 7, 2014, to aid and abet possession and use of a firearm during and in relation to a drug trafficking offense or a crime of violence resulting in death.
On June 3, 2014, Dominic Chatman, 27, of Mesa, Ariz., was sentenced to 8.5 years in prison. Chatman pleaded guilty on Feb. 7, 2014, to possession with intent to distribute marijuana, and aid and abet possession and use of a firearm during and in relation to a drug trafficking offense or a in a crime of violence.
On Aug. 27, 2014, Charles Young, 29, of Tempe, Ariz., was sentenced to 7 years in prison. Young pleaded guilty on Feb. 3, 2014, to possession and use of a firearm during and in relation to a drug trafficking offense or a crime of violence.
On Sept. 4, 2014, Reginald Edwards, 28, of Phoenix, Ariz., was sentenced to 7 years in prison. Edwards pleaded guilty on June 16, 2014, to aid and abet Hobbs Act robbery, and possession with intent to distribute marijuana.
On Sept. 25, 2014, Isaac Reed, 32, of Phoenix, Ariz., was sentenced to 2 years in prison. Reed pleaded guilty on Feb. 6, 2014, to conspiracy to possess with the intent to distribute marijuana.
The investigation in this case was conducted by agencies participating in the Organized Crime Drug Enforcement Task Force. The lead agencies were the Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Drug Enforcement Administration, Internal Revenue Service Criminal Investigation, and the Phoenix Police Department. The prosecution was handled by Keith Vercauteren and Glenn McCormick, Assistant U.S. Attorneys, District of Arizona, Phoenix.
NUMBER: CR-12-1793-PHX-DGC
RELEASE NUMBER: 2014-052_Reed et alFor more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Federal Jury Finds Rio Arriba County Sheriff Thomas R. Rodella Guilty on Criminal Civil Rights and Firearms ChargesRead the Press Release
ALBUQUERQUE – A federal jury sitting in Albuquerque, N.M., returned a verdict earlier today finding Rio Arriba County Sheriff Thomas R. Rodella guilty on criminal civil rights and firearms charges after a five-day trial. The jury’s verdict was announced by U.S. Attorney Damon P. Martinez and Special Agent in Charge Carol K.O. Lee of the FBI’s Albuquerque Division.
Sheriff Rodella, 52, of Española, N.M., was charged in a two-count indictment arising out of a March 11, 2014 incident occurring in Rio Arriba County, N.M., during which he engaged in the high-speed pursuit and unreasonable seizure of a victim identified as “M.T.” Count 1 of the Indictment charged Sheriff Rodella with violating the victim’s civil rights by subjecting him to an unreasonable seizure while acting under color of law. Count 2 charged the Sheriff with brandishing a firearm during a crime of violence.
Trial of this case began on Sept. 22, 2014, and concluded this afternoon when the jury returned a verdict of guilty on both counts of the indictment. The trial evidence established that on March 11, 2014, Sheriff Rodella and his son Thomas Rodella, Jr., who were in the Sheriff’s personal vehicle, engaged in a high-speed pursuit of the victim and used the Sheriff’s vehicle to block the victim’s vehicle on a dead-end lane. The victim testified that Sheriff Rodella, who was not in uniform, jumped out of his vehicle with firearm in hand, entered the victim’s vehicle, and assaulted the victim with the firearm. The Sheriff’s son dragged the victim out of his vehicle and identified the victim’s assailant as the Sheriff. When the victim requested to see Sheriff Rodella’s badge, the Sheriff pulled the victim’s head up by his hair and slammed his badge into the victim’s face. The victim testified that he suffered injuries to his face and his hand.
The evidence also established that Sheriff Rodella instructed his deputies to arrest the victim and detain him at the Rio Arriba County Detention Center. The victim testified that he was released from custody two days later after appearing before a state magistrate. The charges against the victim were dismissed on March 26, 2014. Deputies of the Rio Arriba Sheriff’s Office testified they did not conduct any investigation of the incident or prepare any reports until after the case was dismissed.
“The vast majority of law enforcement officers work courageously every day to make our communities safe. Because officers who serve with honor and integrity deserve our respect and support, it is vitally important to prosecute those who violate their oaths of office and the public trust placed in them,” said U.S. Attorney Damon P. Martinez. “Today a federal jury found that in attacking an innocent civilian, Sheriff Rodella chose to abuse his power rather than uphold his oath to protect the public. I commend the victim who testified in this case for having the courage to step forward and assert his civil rights, and for trusting the Department of Justice to protect him. I am hopeful that today’s verdict brings a measure of justice to the victim and the people of Rio Arriba County.”
“It’s a sad day whenever a law enforcement official is found guilty of abusing his position, especially when he is the elected head of his agency and should set the example,” said FBI Special Agent in Charge Carol K.O. Lee. “The FBI takes no joy in today’s verdict. We hope it sends a message to public servants everywhere: the FBI will make sure you are held accountable if you violate the trust your fellow Americans place in you. I want to thank the FBI Special Agents and support staff for their hard work during this investigation, as well as the U.S. Attorney’s Office for their assistance in this case.”
Sheriff Rodella was remanded into custody after the jury returned its verdict and he will remain detained pending his sentencing hearing, which has yet to be scheduled. At sentencing, Sheriff Rodella faces a statutory maximum penalty of ten years in prison on the criminal civil rights charge. On the firearms charge, Rodella faces a mandatory seven years in prison to be served consecutive to any sentence imposed on the other charges.
The case was investigated by the Albuquerque and Santa Fe offices of the FBI and is being prosecuted by Assistant U.S. Attorneys Tara C. Neda and Jeremy Peña.
Federal Judge Sentences Columbia, S.C. Attorney for Making A False Statement to A Federal AgentRead the Press Release
COLUMBIA, S.C. – On Tuesday, September 23, 2014, U.S. District Judge Margaret B. Seymour sentenced Joenathan Shelly Chaplin, an attorney in Columbia, S.C. to three years of probation for making a false statement to a federal agent, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. Judge Seymour ordered Chaplin to spend the first six months of his probationary sentence in home confinement with electronic monitoring and to pay a $100 assessment fee.
Thomas J. Holloman III, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division (IRS-CI); John S. Comer, Acting Special Agent in Charge of the Atlanta Field Division of the Drug Enforcement Administration (DEA) which overseas South Carolina, and Wayne L. Dixie, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) join U.S. Attorney Tompkins in making today’s announcement.
According to court documents and yesterday’s sentencing hearing, Chaplin, 47, admitted to knowingly and willfully making a materially false, fictitious, and fraudulent statement and representation to the government. According to court records, Chaplin’s false statements to federal agents occurred when he was questioned in relation to a drug and firearm investigation. Court records show that during that investigation, it was determined that Chaplin was directing his criminal defendant clients to pay his fees in a structured manner to avoid reporting those payments to the IRS. When questioned about this practice Chaplin lied to federal investigators. Court records indicate that Chaplin also told an IRS agent that he was not aware of the reporting requirements of IRS’s Form 8300, which is a “Report of Cash Payments Over $10,000 Received in a Trade or Business” and must be filed with the IRS if a person or business has received over $10,000 in one transaction or a series of related transactions while conducting their trade or business.
The case was investigated by IRS-CI, DEA and ATF. The prosecution was handled by Assistant U.S. Attorney Jill Westmoreland Rose of the U.S. Attorney’s Office for the Western District of North Carolina in Charlotte, upon recusal of the U.S. Attorney’s Office for the District of South Carolina.
Federal Grand Jury Indicts Two Men in Separate Child Exploitation CasesRead the Press Release
BIRMINGHAM -- A federal grand jury today indicted two men in unrelated child exploitation cases that both involved production of child pornography, announced U.S. Attorney Joyce White Vance, FBI Special Agent in Charge Richard D. Schwein Jr., and Homeland Security Investigations Special Agent in Charge Raymond R. Parmer Jr.
A four-count indictment filed in U.S. District Court charges ELLIS ORRELL ATKINSON IV, 37, of Huntsville, with one count of producing child pornography, two counts of possessing child pornography and one count of receiving child pornography.
The indictment charges that Atkinson, who was convicted in state court in Madison County in 2002 for possessing child pornography, used a child to engage in sexually explicit conduct in June 2013 so he could photograph it.
The indictment also charges that Atkinson possessed child pornography involving children younger than 12 in July 2013 and May 2013, and that he received child pornography over the Internet in November 2012.
A separate seven-count indictment charges an Etowah County man, VICTOR GRAY DINGLER, 33, with producing child pornography between 2008 and 2014, and with possessing child pornography depicting children younger than 12. Some of the child pornography produced involved a 3-year-old, according to the indictment.
Each production of child pornography charge against Dingler carries a maximum penalty of 30 years in prison and a $250,000 fine. The possession of child pornography charges each carry a maximum sentence of 20 years in prison and a $250,000 fine.
Atkinson, because of his prior child pornography conviction, faces a maximum sentence of 50 years in prison and a $250,000 fine on the production count and 40 years in prison and a $250,000 fine on the receipt count, as well as the 20 years in prison and a $250,000 fine on each possession count.
The FBI investigated the case against Atkinson, which Assistant U.S. Attorney Mary Stuart Burrell is prosecuting.
The Department of Homeland Security-HSI and the Etowah County Sheriff's Department investigated the case against Dingler, which Assistant U.S. Attorneys Jacquelyn Hutzell and Xavier Carter are prosecuting.
Members of the public are reminded that an indictment contains only charges. A defendant is presumed innocent of the charges and it will be the government's burden to prove guilt beyond a reasonable doubt at trial.
El Departamento de Justicia Resuelve una Demanda contra una Empresa de Autobuses en Texas por Discriminar contra Trabajadores en los EE.UU.Read the Press Release
WASHINGTON – El Departamento de Justicia anunció hoy que llegó a un acuerdo con Autobuses Ejecutivos, LLC, operando como Omnibus Express, una compañía de autobuses con sede en Houston, Texas. El acuerdo resuelve una demanda presentada en agosto del 2013 por el departamento bajo la provisiόn antidiscriminatoria de la Ley de Inmigración y Nacionalidad (INA por sus siglas en inglés). La demanda alegό que la compañía discriminaba en contra de trabajadores en los Estados Unidos ya que prefería contratar a trabajadores con visas temporales H-2B para las posiciones de operadores.
Según el acuerdo, Omnibus Express establecerá un fondo de $208,000 para compensar a los individuos que fueron víctimas de sus prácticas discriminatorias, le pagará $37,800 a los Estados Unidos en forma de sanciones civiles, y también estará sujeto a un período de monitoreo de sus prácticas de contratación y reclutamiento por el departamento por dos años. Los individuos que solicitaron una posición de operador con Omnibus Express entre Agosto del 2012 y Febrero del 2013 y no fueron contratados deben comunicarse con Joann Sazama al (202) 307-3092, o con Ryan Thompson al (202) 616-5557.
“La ley federal prohíbe que los empleadores discriminen durante la contratación y reclutamiento por motivo de estatus de ciudadanía,” dijo Molly Moran, Sub-Procuradora General Interina para la Divisiόn de Derechos Civiles. “El departamento se compromete a investigar y combatir las preferencias discriminatorias durante la contratación que impiden que los ciudadanos estadounidenses y los individuos con autorización de trabajo compitan igualmente por el empleo.”
La Oficina del Consejero Especial para Prácticas Injustas en el Empleo Relacionadas a la Inmigración es la oficina responsable por hacer cumplir con la provisión antidiscriminatoria de la INA. Entre otras cosas, la ley prohíbe discriminación por estatus de ciudadanía o del origen nacional durante la contrataciόn, el despido, el reclutamiento o la referencia por comisiόn, las prácticas injustas de documentación, represalias, e intimidación. Para más información sobre las protecciones contra discriminación en el empleo según las leyes migratorias, llame a la línea directa de OSC para trabajadores al 1-800-255-7688 (1-800-237-2515, TTY para personas con discapacidad auditiva), llame a la línea directa de OSC para empleadores al 1-800-255-8155 (1-800-237-2515, TTY para personas con discapacidad auditiva), o para registrarse para un seminario gratis ofrecido a través del internet visite www.justice.gov/crt/about/osc/webinars.php, envíe un correo electrónico al [email protected], o visite el sitio de Internet www.justice.gov/crt/about/osc.
Los solicitantes o empleados que consideren que fueron sujetos a (1) diferentes requisitos de verificación por su estatus de ciudadanía, estatus migratorio u origen nacional, o (2) discriminación por estatus de ciudadanía, estatus migratorio, u origen nacional con relación a la contratación, el despido y el reclutamiento o la referencia por comisión, deberán comunicarse a la línea dedicada a los trabajadores anteriormente citada para poderlos ayudar.
District Man Pleads Guilty to Charges in Shooting That Killed Two Victims, Injured AnotherDefendant Shot Victims Inside Car Off North Capitol StreetRead the Press Release
WASHINGTON – Jimmie Fleming, 36, of Washington, D.C., pled guilty today to charges stemming from a shooting in which two people were killed and another was wounded while in a car in Northwest Washington, U.S. Attorney Ronald C. Machen Jr. announced.
Fleming pled guilty in the Superior Court of the District of Columbia to two counts of voluntary manslaughter while armed for the deaths of Donchell Thomas and Derek Price, and one count of aggravated assault while armed, for the shooting of the third victim. The plea, which is contingent upon the Court’s approval, calls for a prison term of 36 years.
Fleming is to be sentenced on Dec. 12, 2014, by the Honorable Robert E. Morin.
According to the government’s evidence, on July 13, 2014, at about 1 a.m., Fleming and a juvenile approached a blue Honda Accord near North Capitol and T Streets NW. Mr. Price, 20, was the driver of the car, and Mr. Thomas, 21, was in the back seat. A second passenger was in the front seat. Mr. Price agreed to drive Fleming and the juvenile down the street.
Fleming and the juvenile entered the back seat, joining Mr. Thomas. As Mr. Price drove the car, Fleming pulled out a gun and fired it at all of the occupants inside the car. This shooting was unprovoked and without any warning. Mr. Price and Mr. Thomas were both shot in the head and died from their respective injuries. The front seat passenger, who survived the incident, was shot multiple times in his torso and arm. The juvenile was not hit by the gunfire.
Due to the shooting, the car crashed at the intersection of North Capitol and T Streets. Fleming fled from the car on foot and ultimately ran to a nearby house, where he was arrested by the Metropolitan Police Department. A search of the home was conducted later that morning. Among other things, the police found a bag of ammunition in the defendant’s room.
In announcing the guilty plea, U.S. Attorney Machen commended the work of the detectives of the Criminal Investigations Division, crime scene officers, and the Fifth Police District of the Metropolitan Police Department. He also expressed appreciation to those who worked on the case from the U.S. Attorney’s Office, including Victim/Witness Advocate Veronica Vaughn and Paralegal Specialist Fern Rhedrick. He also praised the efforts of Assistant U.S. Attorney Shana L. Fulton, who prosecuted the case.
14-219Defendant Sentenced in $19 Million Tax Fraud ConspiracyRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that Maximo Amparo-Vazquez, a/k/a Japhet Soto Santiago, a/k/a Luis Angel Cortez, a/k/a “Kiki”, 27, a citizen of the Dominican Republic formerly residing in Alaska, was sentenced to 84 months of imprisonment, followed by three years of supervised release. Amparo-Vazquez pleaded guilty to conspiring to defraud the government with respect to claims on July 2, 2014. In addition to his prison sentences, Amparo-Vazquez was ordered to pay restitution in the amount of $559,755 to the Internal Revenue Service.
Amparo-Vazquez was also sentenced to concurrently serve 24 months of imprisonment for pleading guilty to concealing and not making known to law enforcement the felony conduct of a drug trafficking organization.
According to court documents, from January 2010 to March 2012, Amparo-Vazquez , acting with Joel Santana-Pierna, Abel Santana-Pierna and others, conspired to use stolen Puerto Rican identities to file income tax returns for the purpose of obtaining fraudulent income tax refunds.
Conspirators in the income tax fraud scheme obtained the stolen identities of more than 2,600 individuals, including people’s names and Social Security numbers. Most of these stolen identities were from citizens of Puerto Rico. Found on a laptop computer that Amparo-Vazuez consented to being searched by the government, were approximately 804 personal identities and approximately $6.375 million in prepared fraudulent tax refund claims. In all, the amount of the conspiracy’s sham returns totaled over $19 million.
Joel Santana-Pierna, Abel Santana-Pierna, Misael Polanco-Villa, Nicolas Jimenez-Sanchez, Isaac Amparo-Vazquez, and Randin Paredes Henriquez, Wedys Ramirez-Javier, Samuel Peguero, Fatima Aguilar Martinez, Melissa Duran-Muniz and Hilda Josephine Hernandez McMullen were also indicted as conspirators in the scheme. All of the indicted but Samuel Peguero and Wedys Ramirz-Javier have been sentenced. Samuel Peguero is awaiting trial, while Wedys Ramirez-Javier remains a fugitive.
Before the imposition of sentence, Defense Attorney Peter Camiel requested Judge Timothy M. Burgess consider that a search of Amparo-Vazquez’s apartment found no drugs and no weapons when determining an appropriate sentence. Judge Timothy M. Burgess responded that Amparo-Vazquez’s apartment metaphorically contained a weapon, a computer, which was used to assault the taxpayers of America.
Addressing the Court through an interpreter, Amparo-Vazquez apologized and said his intent was never to come to America and commit crimes. He came to find work to help his father in the Dominican Republic. Amparo-Vazquez shared that while he would be in jail his eighty-year-old father would probably pass away and that not seeing his father again was worse than time in jail.
Following the imposition of sentence, Judge Timothy M. Burgess addressed Amparo-Vazquez and advised him that a lot of people come here as immigrants and take advantage of the opportunities available to them in a positive way and make themselves and this country better, but Amparo-Vazquez did not do that and would now be paying the price.
The case was jointly prosecuted by Assistant U.S. Attorneys Thomas C. Bradley, James Barkeley, and Stephanie C. Courter of the U. S. Attorney’s Office for the District of Alaska. The case was investigated by the Internal Revenue Service Criminal Investigation (IRS-CI), U.S. Immigration and Customs Enforcement (ICE), which oversees Homeland Security Investigations (HSI), the U.S. Postal Inspection Service (USPIS), the U.S. State Department’s Diplomatic Security Service, and the Drug Enforcement Administration (DEA). Additional assistance was provided by the Tax Division of the United States Department of Justice as well as the U.S. Attorney’s Offices for the District of New Jersey, the Eastern District of Pennsylvania, and the Southern District of New York.Cranston Tax Preparers Charged with Allegedly Stealing and Selling the Identities of Minors for Use as Tax Deductions on Tax ReturnsRead the Press Release
PROVIDENCE, R.I. – Court documents unsealed in federal court in Providence today reveal an alleged scheme by the owners and operators of NBP Multiservices (NBP), a tax preparation business in Cranston, R.I., to steal personal identifying information of minors named as dependents on legitimate tax returns their company prepared and selling the information to other tax filers for use on their tax returns in order to increase tax refunds, announced United States Attorney Peter F. Neronha; William P. Offord, Special Agent in Charge of IRS Criminal Investigation; and Ted A. Arruda, Resident Agent in Charge of the Providence Office of the U.S. Secret Service.
Evelyn Nunez, 40, of Providence, and Tashia Bodden, 37, of Warwick, were arrested earlier today by agents from IRS Criminal Investigation and the U.S. Secret Service on federal criminal complaints charging them with conspiracy to defraud the United States, false claims to the United States and aggravated identity theft. They were released on unsecured bond following initial appearances before U.S. District Court Magistrate Judge Patricia A. Sullivan.
According to court documents, the Scheme Development Center, a division of the IRS, conducted an analysis of tax returns prepared by individuals working at NBP and identified questionable use of children being claimed as dependents. The alleged use of the dependents led to the refunding by the IRS of hundreds of thousands of dollars under the Earned Income Credit available to low income taxpayers.
According to court records and information presented to the court, an investigation by IRS Criminal Investigation, the U.S. Secret Service and the U.S. Attorney’s Office revealed that between January 2008 and February 2012, taxpayers allegedly purchased false dependents for approximately $600 - $700 per dependent. Research of the use of dependents allegedly showed that the defendants falsely claimed dozens of children to be foster children, nieces and nephews of the taxpayers when, in reality, they had no relation to the taxpayer.
It is alleged that the scheme defrauded the IRS of more than $1.34 million dollars and defrauded the State of Rhode Island of more than $65,500 dollars.
A third defendant in this matter, Wendy Molina, 39, of Cranston, has been charged by way of an information with one count of conspiracy to defraud the government. She is scheduled to be arraigned in federal court on October 1, 2014.
A criminal complaint and an information are merely allegations and are 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.
The cases are being prosecuted by Assistant U.S. Attorney Lee H. Vilker.
###
To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Convicted Felon Sentenced to 15 Years in Prison for Possession of A FirearmRead the Press Release
Ocala, Florida – Senior United States District Judge Wm. Terrell Hodges yesterday sentenced Ish’Mael M. Cassells (31, Ocala) to 15 years in federal prison for possession of a firearm by a previously convicted felon. He pleaded guilty on July 24, 2014.
According to court documents, from April 22, 2014, through May 8, 2014, Cassells sold firearms, including .380 and .40 caliber pistols and a .22 caliber semi-automatic rifle, and prescription pain pills to a confidential informant working with law enforcement.
On May 23, 2014, agents executed a federal search warrant at Cassells’s residence in Ocala. During an interview with law enforcement at the residence, Cassells admitted that he was a convicted felon, and that he had sold both drugs and firearms to the confidential informant. As a previously convicted felon, Cassells was prohibited from possessing a firearm or ammunition under federal law. In addition, his numerous state convictions for sales of cocaine qualified him for an enhanced penalty under the federal Armed Career Criminal statute.
This case was investigated by the Bureau of Alcohol Tobacco, Firearms, and Explosives (ATF), and the Marion County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Robert E. Bodnar, Jr.
This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” Program - a nationwide, gun-violence reduction strategy. United States Attorney A. Lee Bentley, III, along with Trevor Velinor, Acting Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials. It is also a part of ATF’s Frontline strategy to reduce violence in communities.
Conspirator in Bank Fraud Scheme Sentenced to over Two Years in PrisonRead the Press Release
Greenbelt, Maryland - U.S. District Judge Roger W. Titus sentenced Antonio Holmes, age 29, of Washington, DC, today to 30 months in prison, followed by five years of supervised release, for conspiring to commit bank fraud and for aggravated identity theft. Judge Titus also ordered Holmes to pay restitution of $363,738.71.The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kathy A. Michalko of the United States Secret Service - Washington Field Office; and Postal Inspector in Charge Gary R. Barksdale of the U.S. Postal Inspection Service - Washington Division.
According to his plea agreement, from January 2010 to May 2012, Holmes conspired with Lateef Akande and others to defraud financial institutions. As part of the scheme, Lateef Akande recruited Holmes and other individuals to provide personal bank information regarding existing bank accounts in their names, or to open new accounts in their own names. Akande and others then caused third-party checks to be deposited into those bank accounts. For any of the checks that cleared, the co-conspirators would withdraw monies from those accounts.
For example, on January 28, 2010, Holmes deposited a fraudulent check drawn on the account of a victim, and made payable to Holmes in the amount of $34,450.90. On January 30, 2010, Holmes cashed a check for $3,900, drawn on the same victim’s account and made payable to Holmes.
Holmes admits that as a result of his participation in the fraud scheme the loss or intended loss is at least $400,000.
Lateef Akande, age 37, of Bladensburg, Maryland, was sentenced on July 14, 2014, to 175 months in prison for conspiring to commit bank fraud, bank fraud, aggravated identity theft and money laundering. Judge Titus also ordered Akande to pay restitution of $418,042.58.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Since the inception of FFETF in November 2009, the Justice Department has filed more than 12,841 financial fraud cases against nearly 18,737 defendants including nearly 3,500 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein praised the Secret Service and U.S. Postal Inspection Service for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys David I. Salem and Thomas P. Windom, who prosecuted the case.Columbia, Mississippi Woman Sentenced for Tax FraudRead the Press Release
Hattiesburg, Mississippi – Rebecca Sue Carpenter, 56, of Columbia, Mississippi, was sentenced on September 25, 2014 to 82 months in federal prison followed by three years of supervised release for filing false federal income tax returns with the IRS, announced U.S. Attorney Gregory K. Davis and Special Agent in Charge Gabriel L. Grchan with IRS Criminal Investigation. She was also ordered to pay restitution to the IRS in the amount of $809,337.15.
Carpenter previously pled guilty to two counts of filing false federal income tax returns. In 2008, she falsely claimed a tax refund of $392,804, and in 2009 she falsely claimed a tax refund of $399,493, all based upon fraudulent withholdings listed on fictitious forms.
“The defendant in this case stole hundreds of thousands of dollars in income tax refunds to which she was not entitled,” U.S. Attorney Davis said. “No matter how sophisticated, tax fraud is pure theft. Her actions victimized all members of the public and we will relentlessly pursue those who attempt to undermine the integrity of our tax system.”
Gabriel L. Grchan, Special Agent in Charge of IRS – Criminal Investigation, stated, “Rebecca Carpenter thought she could get away with cheating the government by filing fraudulent tax returns requesting falsely inflated tax refunds. Well, she was wrong, and today she was sentenced to prison for her actions. On behalf of IRS – CI, I would also like to thank the United States Attorney’s Office and AUSA Carla Clark for their work toward the prosecution of this case.”
This case was investigated by IRS Criminal Investigation and prosecuted by Assistant United States Attorney Carla J. Clark.If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
Making sure that victims of federal crimes are treated with compassion, fairness and respect.
Training and seminars for Federal, State, and Local Law Enforcement Agencies.
Help us combat the proliferation of sexual exploitation crimes against children.
Cleveland Man Sentenced to Ten Years for Distribution of Child PornographyRead the Press Release
CHATTANOOGA, Tenn. – On Sept. 25, 2014, Richard Vatilla, 44, of Cleveland, Tenn., was sentenced to serve 120 months in federal prison by the Honorable Curtis L. Collier, U.S. District Judge. Vatilla pleaded guilty in June 2014 to distribution of child pornography. Upon his release from prison, he will be subject to 10 years of supervised release by the U.S. Probation Office. Vatilla will also be required to register under the Sex Offender Registration and Notification Act (SORNA).
In the plea agreement on file with the U.S. District Court, Vatilla admitted to downloading and trading child pornography, and making child pornography available for downloading through a peer to peer file sharing program. He also admitted that he went online to teen chat rooms, talked to people he believed to be juveniles, and asked them to send him pictures of themselves.
The indictment and subsequent conviction of Vatilla was the result of an investigation conducted by the Internet Crimes Against Children Task Force, Department of Homeland Security Investigations Division, and Bradley County Sheriff’s Office. Assistant U.S. Attorney Terra L. Bay represented the United States.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Chicago Fraudsters Sentenced to Federal Prison for Convictions on Fraud and Conspiracy ChargesRead the Press Release
ALBUQUERQUE – Michael Anthony Fields, 49, Phillip Bush, 53, and Yolanda Michelle Winston, 45, all of Chicago, Ill., were sentenced yesterday to federal prison terms for their convictions on fraud and conspiracy charges.
Fields, Bush and Winston were arrested on Sept. 10, 2013, on a seven-count indictment charging them with conspiracy to commit access device fraud, access device fraud and aggravated identity theft. The indictment alleged that between Oct. 2, 2012 and Nov. 22, 2012, the defendants conspired with each other to steal credit cards from wallets of unsuspecting victims, use the credit cards to purchase gift cards at retail stores, and purchase items for themselves with the gift cards.
According to court filings, defendants perpetuated their fraudulent scheme in a number of states, including Arizona, Illinois, Indiana, New Mexico and Texas. For example, on Oct. 6, 2012, the trio created a diversion while leaving a restaurant in Albuquerque which allowed one of the defendants to remove a wallet from a victim’s purse. Later that day, Winston used the victim’s credit cards to purchase six pre-paid gift cards for $2,000 each along with other items, for a total of $12,074.88 in transactions. The defendants later used the gift cards to make purchases in Texas, Arizona and Illinois.
On April 11, 2014, Bush and Winston each entered guilty pleas to charges of access device fraud and aggravated identity theft. Fields entered a similar guilty plea on April 25, 2014.
Yesterday, the defendants were sentenced to lengthy prison terms. Fields was sentenced a 62-month prison term; Bush was sentenced to a 74-month prison term; and Winston was sentenced to an 84-month prison term. Each defendant will be on supervised release for three years after his or her prison sentences.
The defendants also were ordered jointly to pay restitution to the victims of their fraudulent conduct: $8,074.88 to U.S. Bank, $4,000.00 to HSBC, and $10,141.79 to Bank of America. Fields also was ordered to forfeit $58,961.42 from two bank accounts. Bush and Winston each was ordered to pay a money judgment of $4021.39.
This case was investigated by the Albuquerque office of HSI with assistance from the Chicago Police Department and was prosecuted by Assistant U.S. Attorney C. Paige Messec.
Charlotte Man Sentenced to 46 Months in Prison for His Role in A Mortgage Fraud SchemeRead the Press Release
Defendant Received More Than $500,000 In Mortgage Fraud Proceeds
CHARLOTTE, N.C. – Former NFL football player Jimmy Hitchcock was sentenced on Tuesday, September 23, 2014, to serve 46 months in federal prison, to be followed by two years of supervised release, for his role in a multi-million mortgage fraud conspiracy, announced U.S. Attorney Anne M. Tompkins.
U.S. Attorney Tompkins is joined in making today’s announcement by John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, Thomas J. Holloman III, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division (IRS-CI).
Hitchock, 43, of Clemmons, N.C., pleaded guilty in June 2013 to one count of mortgage fraud conspiracy, one count of bank bribery conspiracy and one count of money laundering conspiracy. In sentencing Hitchcock yesterday, Chief U.S. District Judge Frank D. Whitney found that Hitchcock was the leader or organizer of this mortgage fraud conspiracy and further that Hitchcock had engaged in a sophisticated scheme by, among other things, creating bogus “official checks” that could be used to make it appear as if buyers had made down payments when in fact they had not. According to court documents, Hitchcock created other false documents to support the mortgage fraud transactions and recruited a bank insider to assist in the fraud, by paying her bribes to provide bogus verifications of deposit to support the mortgage fraud transactions.
According to information presented at the sentencing hearing, the losses incurred by financial and lending institutions associated with the mortgage fraud transactions that Hitchcock participated in were approximately $4.5 million. Additionally, Hitchcock personally received more than $500,000 from the loan proceeds fraudulently obtained by the conspiracy during the sixteen months it operated.
Hitchcock has been in federal custody since his September 2012 arrest in on these charges.
Hitchcock was one of six defendants charged in a second superseding bill of indictment for their role in this mortgage fraud conspiracy, and is the fourth in this conspiracy to be sentenced. The other defendants sentenced to date are:
• Christopher T. Belin, 35, of Norfolk, Va. - Real estate agent and promoter was sentenced to 33 months in prison, followed by three years of supervised release.
• Mitzi Jackson, 41, of Mint Hill, S.C. - Bank insider, sentenced to nine months in prison, followed by one year of supervised release with nine months home detention.
• Coley Scagliarini, 40, of Charlotte - Mortgage broker, sentenced to 46 months in prison, followed by two years supervised release.Co-defendant Michelle Mallard, 47, of Montgomery, Ala. is scheduled to be sentenced on October 28, 2014. A sentencing date has not yet been set for co-defendant James E. Fink, 44, of Waxhaw, N.C.
Ninety-one (91) people have been charged to date in Operation Wax House. To date, eighty-four (84) defendants have pleaded guilty and three have been found guilty at trial. Operation Wax House in the Western District of North Carolina is being handled by the Charlotte Division of the FBI and the Criminal Investigation Division of the IRS for the Financial Fraud Enforcement Task Force, along with the Securities Division of the North Carolina Secretary of State with respect to a separate prosecution. The prosecution for the government was handled by Assistant United States Attorneys Kurt W. Meyers and Maria K. Vento.
The President’s Financial Fraud Enforcement Task Force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes. For more information on the task force, visit http://www.stopfraud.gov
Caremark Will Pay $6 Million to Resolve False Claims Act AllegationsRead the Press Release
Caremark L.L.C., a pharmacy benefit management company (PBM), will pay the United States $6 million to settle allegations that Caremark knowingly failed to reimburse Medicaid for prescription drug costs paid on behalf of Medicaid beneficiaries who also were eligible for drug benefits under Caremark-administered private health plans, the Justice Department announced today. Caremark is operated by CVS Caremark Corporation, one of the largest PBMs and retail pharmacies in the country.
“It is vitally important that cash-strapped Medicaid programs receive reimbursement for the costs they incur that should properly have been paid for by other insurers,” said Acting Assistant Attorney General Joyce R. Branda for the Justice Department’s Civil Division. “We are committed to protecting the integrity of state Medicaid programs.”
When an individual is covered by both Medicaid and a private health plan, the individual is called a “dual eligible.” Under the law, the private insurer, rather than the government, must assume the costs of health care for dual eligibles. If Medicaid erroneously pays for the prescription claim of a dual eligible, Medicaid is entitled to seek reimbursement from the private insurer or its PBM. A PBM administers and manages the drug benefits for clients who offer drug benefits under a health insurance plan.
Caremark served as the PBM for private health plans who insured a number of individuals receiving prescription drug benefits under both a Caremark-administered plan and Medicaid. According to the government, Caremark’s RxCLAIM computer platform allegedly failed to pay the full amount due on certain claims because it improperly deducted certain co-payment or deductible amounts when calculating payments. The government alleged that Caremark’s actions caused Medicaid to incur prescription drug costs for dual eligibles that should have been paid for by the Caremark-administered private health plans rather than Medicaid.
The allegations settled today arose from a lawsuit filed by Donald Well, a former Caremark employee, under the qui tam, or whistleblower, provisions of the False Claims Act. The United States may intervene in the lawsuit, as it did here. Under the False Claims Act, private citizens can bring suit on behalf of the government for false claims and share in any recovery. Well will receive $1.02 million plus interest.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $22.4 billion through False Claims Act cases, with more than $14.2 billion of that amount recovered in cases involving fraud against federal health care programs.
This case was jointly handled by the U.S. Attorney’s Office for the Western District of
Texas, the Justice Department’s Civil Division, and the Department of Health and Human Services Office of Inspector General.
The case is captioned United States ex rel. Well v. CVS Caremark, Inc., Civil Action No. SA:11-CV-00747 (W.D. Tex.). The claims settled by this agreement are allegations only; there has been no determination of liability.
Barrington Bank Robbery Getaway Driver Sentenced to More Than 11 Years in Federal Prison; Co-defendant Sentenced to More Than 5 Years in Prison for Armed Bank RobberyRead the Press Release
PROVIDENCE, R.I. – David Lasseque, 33, of Providence, convicted of being the getaway driver during the armed robbery of a Barrington, R.I., bank in July 2013, was sentenced today by U.S. District Court Judge William E. Smith to 140 months in federal prison, announced United States Attorney Peter F. Neronha, Barrington Police Chief John M. LaCross, East Providence Police Chief Christopher J. Parella and Vincent B. Lisi, Special Agent in Charge of the Boston Field Office of the FBI.
Lasseque was convicted by a federal court jury in June 2014 of conspiracy to commit bank robbery and bank robbery. At sentencing, Lasseque was also ordered to serve 3 years supervised upon completion of his prison term.
A co-defendant in this matter, Pierre S. Rheau, 34, of Providence, was sentenced by U.S. District Court Judge William E. Smith in September 12, 2014, to 63 months in federal prison to be followed by 3 years supervised release. Rheau pleaded guilty in May 2014 to one count each of conspiracy to commit bank robbery and armed bank robbery.
According to court documents and the government’s evidence presented at Lasseque’s trial, at approximately 5:00 p.m. on July 12, 2103, members of the Barrington Police Department responded to a report of an armed bank robbery at the County Road branch office of Bank of America. Witnesses told police that an individual armed with a black firearm approached tellers demanding they give him all the money. The evidence showed that the robber fled the bank with $4,871 in cash.
According to the government’s evidence, in response to a police dispatch about the bank robbery, a Barrington Police Sergeant positioned himself on Rte. 114. A short time later, the sergeant saw a vehicle traveling in a northerly direction away from the bank by an individual who fit the general description of the bank robber. The sergeant began to follow the vehicle and attempted to affect a traffic stop. However, after stopping briefly, the vehicle fled the area at a high rate of speed.
According to the government’s evidence, the suspect vehicle was pursued by police into an East Providence residential neighborhood. The vehicle came to a stop after crashing into an East Providence police cruiser traveling in the opposite direction, with its lights and siren engaged, injuring the officer.
According to the government’s evidence, the driver, David Lasseque, fled on foot but was quickly apprehended by Barrington and East Providence officers. A second individual, Pierre Rheau, later identified as the gunman who robbed the bank, was discovered lying on the back seat. From the back seat area, officers recovered a pile of loose cash, a black Daisy .177 caliber BB gun, and clothing and accessories described by witnesses as having been worn by the armed bank robber.
The cases were prosecuted by Assistant U.S. Attorney Pamela E. Chin.
Warren and Seekonk, Mass., Police and the Rhode Island State Police assisted Barrington Police, East Providence Police and the FBI in the investigation of this matter.
###
To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Attorney's Secretary Pleads Guilty to Fraud of over $150,000Read the Press Release
ABINGDON, VIRGINIA – Mandie Marie Bishop, age 33, of Jonesville, Virginia, pled guilty yesterday, in the United States District Court for the Western District of Virginia in Abingdon to two counts of bank fraud and one count of making false statements in a matter within the jurisdiction of the executive branch of the United States.
Evidence was presented at yesterday’s hearing that Bishop worked as a secretary and assistant in a law office located in Lee County, Virginia. Bishop’s employer, an attorney in Lee County, Virginia, became conservator of an elderly woman’s assets in late December 2011. Bishop’s employer allowed Bishop to access the elderly woman’s bank accounts at Farmers and Miners Bank and Lee Bank and Trust Company, but Bishop did not have signature authority on the accounts. As early as January 17, 2012, Bishop began fraudulently issuing and cashing checks from the elderly woman’s accounts.
Between January 17, 2012, and May 16, 2013, Bishop caused $106,672 to be fraudulently obtained from the elderly woman’s bank account at Lee Bank and Trust Company. Between June 29, 2012 and May 16, 2013, Bishop caused at least $11,382 to be fraudulently obtained from the checking account at Farmers and Miners Bank. On May 16, 2013, after Farmers and Miners Bank made her employer aware of the fraudulent activity at the bank, her employer deposited $10,558 into the account to replace a portion of the missing funds.
Bishop continued in her role as a secretary and assistant with the same employer and between May 17, 2013, and December 10, 2013, caused at least an additional $50,341 to fraudulently be obtained from the elderly woman’s checking account.
In addition to fraudulently issuing and cashing checks, Bishop caused over $7,000 to be used from the conservator accounts for unnecessary expenses. As a part of Bishop’s scheme to defraud, she also caused certificates of deposit to be cashed and caused money to be transferred from an interest bearing savings account to a non-interest bearing checking account, thereby causing the elderly woman to be deprived of accumulated interest that she otherwise would have received.
On May 8, 2014, Bishop’s employer deposited $82,246 into the elderly woman’s Lee Bank and Trust Company bank account and on August 19, 2014, her employer caused $7,285 to be deposited into the elderly woman’s Lee Bank and Trust Company bank account.
As part of the plea agreement, Bishop agreed to have restitution ordered for all funds directly taken as well as amounts paid for services not rendered and for unnecessary expenses that were incurred.
United States District Judge James P. Jones scheduled sentencing for December 15, 2014, at 10:30 a.m. At sentencing, Bishop faces a statutory maximum sentence of 65 years in prison and a fine of $2,250,000. The sentencing guidelines will call for a sentence significantly less than the statutory maximum.
The investigation of the case was conducted by the United States Secret Service. Assistant United States Attorney Randy Ramseyer is prosecuting the case for the United States.
Attorney General Holder, Secretary Jewell Announce $554 Million Settlement of Tribal Trust Accounting and Management Lawsuit Filed by Navajo NationRead the Press Release
Attorney General Eric Holder and U.S. Secretary of the Interior Sally Jewell today announced the settlement of a lawsuit filed by the Navajo Nation regarding the U.S. government’s management of funds and natural resources that it holds in trust for the Navajo Nation. The settlement resolves a long-standing dispute, with some of the claims dating back more than 50 years, and brings to an end protracted litigation that has burdened both the Navajo Nation and the United States.
Secretary Jewell joined Navajo Nation President Ben Shelly, Assistant Secretary of Indian Affairs Kevin Washburn, Acting Assistant Attorney General for the Justice Department’s Environment and Natural Resource Division Sam Hirsch, and numerous tribal officials at a commemorative signing ceremony held in Window Rock, Arizona today.
“This historic agreement resolves a longstanding dispute between the United States and the Navajo Nation, including some claims that have been sources of tension for generations,” said Attorney General Holder. “The Department of Justice has made it a top priority to honor and foster the trust relationship between the United States and American Indian tribes. This landmark resolution ends protracted and burdensome litigation. It will provide important resources to the Navajo Nation. And it fairly and honorably resolves a legal conflict over the accounting and management of tribal resources. This demonstrates the Justice Department’s firm commitment to strengthening our partnerships with tribal nations -- so we can expand cooperation, empower sovereign tribes, and keep moving forward together with mutual respect and shared purpose.”
“This settlement reflects our continuing commitment to upholding the federal trust responsibility to Indian Country and to building strong, prosperous and resilient tribal communities,” said Secretary Jewell. “The historic agreement strengthens the government-to-government relationship between the United States and the Navajo Nation, helps restore a positive working relationship with the Nation’s leaders and empowers Navajo communities. The landmark Cobell settlement and resolution of 80 other tribal trust management lawsuits under President Obama has opened a new chapter in federal trust relations with tribes and individual Indian beneficiaries.”
The Navajo Nation is the largest Indian tribe in the United States, with over 300,000 members. The Nation has the largest reservation in the United States, encompassing over 27,000 square miles of land in the states of Arizona, New Mexico, and Utah. The reservation includes more than 14 million acres of trust lands, which are leased for various productive uses, including farming; grazing; oil, gas, and other mineral development; businesses; rights-of-way; timber harvesting; and housing. The Navajo Nation also owns or has ownership interests in over 100 trust accounts.
Under the agreement, the United States will pay the Navajo Nation $554 million in settlement of its claims. In return, the Navajo Nation will dismiss its current lawsuit and forego further litigation regarding the United States’ historic management or accounting of Navajo funds or resources held in the trust by the United States. The Navajo Nation and the United States will undertake prospectively information-sharing procedures that will lead to improved communication concerning the management of Navajo’s trust funds and resources, and also the parties will abide by alternative dispute resolution procedures to reduce the likelihood of future litigation.
In addition to the negotiations that led to this historic settlement with the Navajo Nation, the Departments of Justice, the Interior, and the Treasury have been diligently engaged in settlement conversations involving other litigating tribes. On April 11, 2012, the United States announced settlements with 41 tribes for about $1 billion. Since that time, the federal government has focused considerable dedicated effort on the remaining tribal trust accounting and trust mismanagement cases and has been able to resolve “breach of trust” claims, without the need for further extended litigation, of almost 40 additional tribes, for over $1.5 billion.
The United States will continue settlement discussions in numerous other cases that are still pending and is committed to resolving the litigating tribes’ trust accounting and trust mismanagement claims in a manner that is fair and reasonable to the tribes and the United States.
“From his first days in office, President Obama has worked to honor the government-to-government relationships between the United States and tribal governments," said Acting Assistant Attorney General Sam Hirsch. "This settlement is yet another example of the Administration’s promise to strengthen the ties between the United States and the Navajo Nation. And it reflects my personal commitment to resolving long-standing lawsuits rather than wasting the time and resources of both the United States and Indian tribes in contentious litigation.”
Area Women Plead Guilty to Medicaid Funds FraudRead the Press Release
Follow @SDILNewsStephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced that on September 25, 2014, Tamekia Hall, 38, of East St. Louis, Illinois, pled guilty to submitting false and fraudulent bills in relation to personal assistant services in the Home Services Program, a Medicaid Waiver Program designed to allow individuals to stay in their homes instead of entering a nursing home. The investigation determined that Hall was falsifying time sheets in order receive personal assistant payments during times when the customer was actually in the hospital. Also, on today’s date, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced that Maketa Davis 33, of East St. Louis, Illinois, pled guilty to submitting false and fraudulent bills in relation to personal assistant services in the Home Services Program, a Medicaid Waiver Program designed to allow individuals to stay in their homes instead of entering a nursing home. The investigation determined that Davis was falsifying time sheets in order receive personal assistant payments during times when she was actually working at Lessie Bates Home.
Both of these cases resulted from United States Attorney Wigginton’s emphasis on targeting those involved in the blatant theft of funds from cash-strapped programs designed to help persons in need. “These are just another two prosecutions in the long line of successes stemming from these operations, dubbed, ‘Home Alone.’ While not representing enormous thefts, the importance of these cases lies in the recovery of the funds and in the message sent to potential thieves – do so at your peril.” United States Attorney Wigginton noted.
The investigation was conducted by the U.S. Department of Health and Human Services, Office of Inspector General and the Illinois State Police’s Medicaid Fraud Control Bureau. These cases are being prosecuted by Special Assistant United States Attorney Michael Hallock.
Thursday 25 September 2014
Washington State Man Sentenced to 15 Months in Prison for Failing to Register as A Sex OffenderRead the Press Release
SACRAMENTO, Calif. — Deveron Lyons, 24, of Rodeo, was sentenced today by United States District Judge Troy L. Nunley to 15 months in prison for failing to register as a sex offender, United States Attorney Benjamin B. Wagner announced.
According to court documents, as of June 2007, under the Sex Offender Registration and Notification Act (SORNA), Lyons was required to register as a sex offender in Washington State and to register as a sex offender whenever he moved to a new state. In late 2012, Lyons moved to California, but he did not register as a sex offender with California authorities. On February 1, 2013, Lyons encountered a Napa County Sheriff’s Deputy, who told Lyons to register as a sex offender. Lyons still did not register as a sex offender in California. For a time, he lived in Vallejo, California. More than one year later, on March 12, 2014, Lyons was indicted for failing to register as a sex offender. One week later, Lyons registered as a sex offender with California authorities.
This case was the product of an investigation by the United States Marshals Service. Assistant United States Attorney Christiaan Highsmith prosecuted the case.Virginia Man Sentenced to 24 Years for “Sextortion” of Minors on FacebookRead the Press Release
RICHMOND, Va. – Cameron Scot Bivins-Breeden, 21, of King George County, Virginia, was sentenced today to 288 months in prison, followed by a life term of supervised release, for using Facebook to entice and attempt to entice 38 minor victims to produce sexually explicit photographs of themselves and send to him over the internet. In multiple instances, Bivins-Breeden used the threat of sending the sexually explicit images to friends and family of the victims to extort additional pictures from the victims.
Dana J. Boente, United States Attorney for the Eastern District of Virginia; Mark Herring, Commonwealth of Virginia Attorney General; and Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement after sentencing by U.S. District Judge John A. Gibney.
Bivins-Breeden pled guilty on June 23, 2014, to one count of production of child pornography, in violation of 18 U.S.C. § 2251, and one count of enticement of a minor, in violation of 18 U.S.C. § 2422. In a Statement of Facts submitted in support of his pleas, Bivins-Breeden admitted that he contacted 38 juvenile females across the country, ranging in age from 11 to 17 years old, via Facebook on his iPhone. Posing as a juvenile female, he enticed or attempted to entice them to send him sexually explicit pictures of themselves. When the victims refused to produce additional child pornography images for him, Bivins-Breeden threatened to send the previously obtained images to the victims’ friends, family, and schoolmates on Facebook. In total, Bivins-Breeden admitted to sending 95 child pornography images in an effort to convince victims he was in fact a juvenile female and caused victims to produce 45 child pornography images.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Erik S. Siebert and Commonwealth of Virginia, Office of the Attorney General, Assistant Attorney General and Special United States Attorney Samuel Fishel prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:14-cr-57.
United States Attorney’s Office Announces Sentence in Department of Veterans Affairs TheftRead the Press Release
Woman sentenced for theft of $90,000 over six year period
INDIANAPOLIS – Josh J. Minkler, the Acting United States Attorney, announced today the sentencing of a former Indianapolis woman for theft of government money. Rhonda F. Reddy, 59, was sentenced to five months in the Bureau of Prisons, then five months on home detention by U.S. District Judge Tanya Walton Pratt.
“When individuals steal from the organization that represents our veterans, who selflessly give to the service of our country, it gravely concerns me,” said Minkler. “My office will not sit idly by and allow this sort of theft to go unpunished.”
Rhonda F. Reddy held a joint bank account at Chase Bank in Indianapolis with her mother, Dorothy M. Reddy. who was an authorized Department of Veterans Affairs (VA) spousal benefits recipient. Dorothy was entitled to VA benefits until her death based upon the circumstances of the death of her veteran husband. These benefits are not transferrable to anyone else and expired upon Dorothy’s death.
When Dorothy died in December 2007, Rhonda Reddy did nothing to notify the VA of the death and accordingly, the benefits continued to be transmitted into the bank account on a monthly basis. Reddy began using the funds for herself and continued to do so until September 2013, when the VA conducted a death match based upon Social Security Administration data and verified the death of the mother. The loss to the VA is $90,600, based upon the funds received by Rhonda Reddy from after her mother’s death until the VA terminated payments.
According to James M. Warden who prosecuted this case for the government, Reddy must serve two years of supervised release after her prison sentence.