Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Wednesday 24 September 2014
Leader of A Methamphetamine Conspiracy Is Sentenced to More Than 22 Years in Federal PrisonRead the Press Release
DALLAS — The last defendant convicted in a drug conspiracy that distributed large quantities of methamphetamine in north Texas was sentenced yesterday in federal court in Dallas. Jesus Velasquez, aka “Chuy,” 44, was sentenced by U.S. District Judge Barbara M.G. Lynn to 270 months (22.5 years) in federal prison, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Velasquez will also be required to forfeit the proceeds of his criminal activity, which includes a 2008 Jeep Commander and several firearms.
Velasquez and 8 codefendants were charged in the drug conspiracy that was outlined in a federal indictment returned by a grand jury in Dallas in January 2013. Velasquez pleaded guilty in June 2013 to one count of conspiracy to distribute 50 grams or more of methamphetamine. All defendants received federal prison sentences ranging from 46 months to 270 months.
According to documents filed in the case, Velasquez admitted that on multiple occasions between April 2011 and June 30, 2011, he distributed methamphetamine in exchange for payment in the Dallas area. Specifically, Velasquez admitted that he was intercepted over a court-authorized wiretap discussing narcotics transactions with co-defendants Gregory Guysinger, Miguel Velasquez, aka “Ramone,” and Heriberto Luna, aka “Beto.”
The Federal Bureau of Investigation (FBI) was in charge of the investigation. The FBI was assisted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Dallas Police Department, the Texas Department of Criminal Justice - Office of the Inspector General (TDCJ-OIG), and the North Texas High Intensity Drug Trafficking Areas (HIDTA) Program.
Assistant U.S. Attorney Phelesa Guy was in charge of the prosecution and Assistant U.S. Attorney John de la Garza handled the forfeiture.
Lawrence Man Pleads Guilty to Embezzling More Than $1 MillionRead the Press Release
TOPEKA, KAN. – A Lawrence man pleaded guilty in federal court Wednesday to embezzling more than $1 million from his company and his business partners, U.S. Attorney Barry Grissom said.
Mark W. Elzea, 55, Lawrence, Kan., pleaded guilty to one count of interstate transportation of stolen funds.
In his plea, Elzea admitted the crime occurred while he was controller and part owner of Pur-O-Zone, a janitorial and cleaning equipment business located in Lawrence. In 2004, Elzea began embezzling funds from Pur-O-Zone and his three business partners who also owned part of the business. The crime came to light in May 2014 when one of the partners was contacted by a vendor about not having received a check. The partners discovered numerous unauthorized checks signed by Elzea and made payable to Cardmember Service Chase Bank in Illinois.
In his plea, Elzea agrees to a forfeiture money judgment and order of restitution in the amount of $1 million.
Sentencing is set for Dec. 19. He faces a maximum penalty of 10 years in federal prison and a fine up to $250,000. Grissom commended the FBI and Assistant U.S. Attorney Rich Hathaway for their work on the case.
Lakeland Couple Sentenced for Bank Fraud ConspiracyRead the Press Release
Tampa, Florida – United States District Judge Virginia Covington yesterday sentenced Lakeland residents Jovanna Deshawn Forte (39) and William Boyd Burns (45) each to 51 months in federal prison for conspiracy to commit bank fraud. Both pleaded guilty in May 2014. The Court also entered a money judgment in the amount of $385,450, the proceeds of the bank fraud. Forte and Burns were ordered to pay restitution to Wachovia Bank, SunTrust Bank, and Mid-Florida Federal Credit Union.
According to court documents, Forte and Burns used other individuals’ accounts at local banks to deposit third-party checks that were written to the account holders, in amounts ranging from $1,500 to $3,600. These third-party checks were fraudulent and false when they were deposited by Forte and Burns because the checks were written on closed accounts and accounts that did not have sufficient funds to pay the amount of the check. The checks were deposited into these accounts by ATM, after the financial institution had closed. Forte and Burns then withdrew or attempted to withdraw funds, both in cash and through debit card purchases, that had been credited to the account from the fraudulent check deposits. The withdrawn funds were used for personal expenditures. Forte and Burns were recorded on video surveillance using nearly 200 accounts at three financial institutions. They obtained at least $385,450 in funds from their withdrawals and purchases.
This case was investigated by the U.S. Postal Inspection Service, Florida Department of Law Enforcement, and the Polk County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Kelley C. Howard-Allen.
Justice Department to Review the Shooting of John Crawford IiiRead the Press Release
COLUMBUS – The Civil Rights Division of the United States Department of Justice, the United States Attorney’s Office for the Southern District of Ohio, and the Federal Bureau of Investigation, Cincinnati Field Division, announced today that they will conduct an independent review of the facts and circumstances surrounding the August 5, 2014, fatal shooting of John Crawford III by an officer with the Beavercreek Police Department. The Civil Rights Division, the United States Attorney’s Office, and the FBI have been monitoring the state’s investigation of this case. The Civil Rights Division, the United States Attorney’s Office, and the FBI will conduct a thorough and independent review of the evidence and take appropriate action if the evidence indicates a prosecutable violation of federal criminal civil rights statutes. This is an on-going investigation; therefore, the Department can make no further comment on this case at this time.
Justice Department Sues Regional Tax Preparation Firm's Owner and Franchisees and Managers to Stop Alleged Systematic and Pervasive Tax FraudRead the Press Release
The United States filed eight civil injunction suits in Florida to bar Walner G. Gachette, the founder of Orlando-based tax preparation company LBS Tax Services, seven LBS Tax Services franchisees, and three LBS Tax Services managers from owning, operating, or franchising a tax return preparation business and preparing tax returns for others, the Justice Department announced today.
The seven franchisees and three managers sued are Douglas Mesadieu, Jean R. Demesmin, Kerny Pierre-Louis, Demetrius Scott, Jason Stinson, Wilfrid Antoine, Jacqueline Nunez, Tonya Chambers, Jehoakim Victor and Lauri Rodriguez.
According to the complaints, in 2013, LBS Tax Services operated at least 239 stores (192 owned by the named defendants) in Florida, North Carolina, South Carolina, Georgia, Texas, Tennessee, Alabama and Mississippi. The government also asserts that LBS Tax Services prepared more than 55,000 federal income tax returns in 2013. The complaints allege that, in 2014, some of the defendants’ LBS Tax Services stores began doing business using the names Milestone Tax Services, Tax Giant, AWA Tax, Tax Master Xpress, BPTS Tax Services and Nation Tax Services.
“The public should be able to rely on federal income tax preparers to prepare honest and complete returns,” said Deputy Assistant Attorney General David A. Hubbert for the Justice Department’s Tax Division. “The Internal Revenue Service and the Department of Justice have made it a priority to sue and enjoin tax return preparers who prepare fraudulent returns.”
The suits allege that the defendants target primarily low-income customers with deceptive and misleading advertisements, prepared and filed fraudulent tax returns to falsely increase their customers’ refunds and profit through unconscionable and exorbitant fees — all at the expense of their customers and the U.S. Treasury. One case highlighted in the complaints erroneously suggests that potential customers will receive a tax refund of more than $3,000 “per child.”
According to the complaints, the defendants directed return preparers for LBS Tax Services to, among other things:
• Falsely claim or increase the amount of the Earned Income Tax Credit;
• Claim improper filing status (i.e., head of household for married individuals);
• Fabricate businesses and related business income and expenses;
• Fabricate Schedule A deductions, particularly for unreimbursed employee business expenses; and
• Charge deceptive and unconscionable fees.
Among the many examples cited in the eight complaints are:
A customer in Tampa, Florida, was allegedly waiting at a bus station when he was approached by an LBS Tax Services employee, who offered to drive the customer to an LBS Tax Services store to have his tax return prepared. According to the complaint, despite knowing that the customer did not have a car, LBS Tax Services reported on the customer’s tax return that he had driven his personal vehicle 30,256 miles for business purposes, resulting in a bogus $17,589 unreimbursed employee business expense claimed on the customer’s tax return.
A customer was allegedly approached at a flea market by an LBS Tax Services preparer who told her that she had to file a tax return, showed her a badge, and said that he was a police officer and would not do anything that was wrong. That preparer allegedly prepared the customer’s tax return, on which the preparer falsely claimed that the customer had more than $10,000 in income in order to claim an Earned Income Tax Credit and bogus refund.
Another customer in Houston, Texas, won $250,000 in the lottery in 2012. The LBS Tax Services preparer allegedly claimed several phony deductions to offset that income, including $30,141 in charitable contributions and $10,279 in unreimbursed employee business expenses. The customer’s tax return allegedly claimed a bogus refund in the amount of $8,247.
On the tax return of one Jacksonville, Florida customer, LBS Tax Services allegedly reported that the customer had a mechanic business through which he earned income, when he did not. Allegedly, the customer did not work in 2012, and when he applied for social security disability benefits in 2013, he was denied because based on the income that LBS Tax Services falsely reported on his tax return, he had shown an ability to work.
"Tax return preparers play an important and integral role in our tax system," said IRS Deputy Commissioner for Services and Enforcement John M. Dalrymple. "The IRS and Justice Department are committed to protecting taxpayers and pursuing return preparers engaged in fraud. We encourage taxpayers to carefully select their tax preparer and be careful about misleading promises about refunds."
According to the complaints, the IRS estimates that the tax loss from the defendants’ stores for the 2012 tax year alone is in the tens of millions of dollars. The complaints also requests that the court order the defendants to disgorge the fees that they obtained through their alleged fraudulent tax return preparation.
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.
Antoine Filed Complaint
Demesmin Filed Complaint
Gachette Filed Complaint
Mesadieu Filed Complaint
Nunez Filed Complaint
Pierre Louis Filed Complaint
Scott Filed Complaint
Stinson Filed Complaint
Justice Department Seeks to Shut Down Philadelphia Tax Return PreparerRead the Press Release
The United States has asked a federal court in Philadelphia to permanently bar Denise Miller Almanza and her business, Denise’s Centro de Servicios, PC, from preparing federal tax returns for others, the Justice Department announced today. According to the complaint, Almanza inappropriately reduces her customers’ income or wrongly claims tax credits on their returns, causing the customers to receive tax refunds or increased refund amounts to which they are not entitled. Almanza and her business have prepared more than 14,000 federal tax returns since 2010, according to the complaint.
The suit, filed in the U.S. District Court for the Eastern District of Pennsylvania, alleges that Almanza improperly claims the additional child tax credit on customers’ income tax returns, which allow her customers to receive, on average, over $2,900 in improper benefits per tax return. In total, the complaint alleges that Almanza’s activities over the last four years have potentially cost the U.S. Treasury millions of dollars in lost tax revenue.
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 Justice Department’s Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department website.
Related Materials:
United States v. Denise Miller Almanza
ComplaintJudges Sentences Pittsburgh Man to 10 Years in Prison for Heroin Trafficking ConspiringRead the Press Release
PITTSBURGH – Andrew Anderson, of Pittsburgh was sentenced to 120 months in prison for conspiring to distribute at least one kilogram of heroin, United States Attorney David J. Hickton announced today.
Anderson, 31, was sentenced in Pittsburgh by United States District Judge Nora Barry Fischer. Judge Fischer also imposed a five-year term of supervised release to follow the prison sentence.
For several months leading up to Feb. 9, 2012, Anderson received hundreds of bricks of heroin and then distributed them in the Pittsburgh area and paid those who supplied him back. On Feb. 9, 2012, members of the Pittsburgh Police and the Pennsylvania State Police conducted a traffic stop of Anderson’s Trailblazer. Anderson and a 10-year-old child were the only occupants of the Trailblazer. The equivalent of about 40 bricks of heroin, with a value of approximately $10,000, along with unburnt marijuana packaged for re-sale, were found inside the Trailblazer. $6,600 in drug trafficking proceeds were subsequently found inside Anderson’s residence.
Assistant United States Attorney Craig W. Haller prosecuted this case on behalf of the United States.
The Drug Enforcement Administration in Pittsburgh and New York, the Pennsylvania State Police, the Pittsburgh Bureau of Police, the Allegheny County Police Department, the Pennsylvania Attorney General's Office, the Wilkins Township Police Department, the East Pittsburgh Police Department, the New York Police Department, the Blair County District Attorney's Office, and the Allegheny County District Attorney's Office conducted the investigation leading to the conviction and sentence in this case.
Interpol Washington Spearheads Foreign Terrorist Fighter Program, Serves as Catalyst for Global Information Sharing NetworkRead the Press Release
WASHINGTON—Interpol Washington today announced the formation of a dedicated Interpol Foreign Terrorist Fighter (FTF) program in partnership with the National Security Council (NSC), the Department of Justice (DOJ) and the Department of Homeland Security (DHS).
The program leverages the unique resources Interpol utilizes to combat transnational crime, including its secure, encrypted communications system, its criminal and analytical databases and its system of advisory notices. Through this program, Interpol will provide an unparalleled mechanism for addressing the threat from FTFs by helping to monitor and deter their international movement and interdict them at strategic entry points, where possible. Composed of the National Central Bureaus (NCB) of more than 30 member countries, the program was established in response to the need for a forum for sharing intelligence and best practices on a global scale to combat the threat of foreign terrorist fighters traveling to Iraq and Syria.
“Interpol provides critical leadership in advancing the Justice Department’s efforts to combat terrorism and ensure the safety of all Americans – offering cutting-edge resources, a structure for international cooperation, and strategic tools like Red, Blue and Green Notices for tracing, targeting and apprehending terror suspects,” said Attorney General Eric Holder. “In a world that is increasingly interdependent and interconnected, Interpol helps to defend against a range of evolving challenges by disseminating information, combating crime, and identifying potential threats. And particularly today, with the emergence of groups like ISIL, and the knowledge that some Americans are attempting to travel to countries like Syria and Iraq to take part in ongoing conflicts, Interpol – as the world’s largest international police organization – has a vital role to play in safeguarding our homeland and protecting the American people.”
“The threat posed by foreign fighters is one that is persistent and requires the full cooperation and resources of the international law enforcement community to effectively combat," said Secretary of Homeland Security Jeh Johnson. “We are already working closely with European and other governments to build better information sharing, and we will continue to leverage our partnership with the Interpol, Department of Justice and other international partners to make enhanced and concerted efforts to track foreign fighters who come from or seek to enter the United States.”
The program currently supports a working group that includes Australia, Belgium, Canada, France, New Zealand, Spain, Switzerland, the Netherlands, Turkey, the United Kingdom and the United States, and an international symposia—a multinational database populated with information contributed by and accessible to participating member countries. The criminal intelligence information contained in the database includes detailed identity particulars that are especially valuable to law enforcement and border control authorities in making determinations of the terrorist threat posed by subjects located in, or attempting to enter, their respective jurisdictions.
Interpol Washington played a critical role in the program’s development and is taking the lead on implementing it in the United States by continuing to strategically use Interpol Red Notices to target and apprehend terrorists for prosecution in U.S. courts and Interpol Blue Notices to trace and locate terrorists and others suspected of terrorism-related activity, including those not charged with a particular offense. Further, Interpol Washington is extensively utilizing Interpol Green Notices to publish information about hundreds of foreign nationals previously identified in both Iraq and Afghanistan and involved in terrorist activities. Interpol also offers countries the ability to use its information sharing system to send targeted messages to key partners on terrorist subjects.
“Interpol Washington continues to champion international police cooperation by leading U.S. efforts in the Interpol Foreign Terrorist Fighter program,” said Interpol Washington Director Shawn A. Bray. “Interpol provides a unique set of information sharing solutions for addressing this growing threat. By applying these solutions via its secure global communications network, Interpol member countries send a strong, unified message of engagement against FTFs and those who support them.”
Regional meetings, meetings of the heads of National Central Bureaus and the annual Interpol General Assembly represent additional opportunities for strengthening the FTF program. Finally, Interpol works closely with the United Nations, particularly the Sanctions Committee of the UN Security Council, to publish Special Notices on individuals listed by the Sanctions Committee as belonging to or associated with al Qaeda and the Taliban.
Interpol Washington, a component of the DOJ and co-managed by the DHS, facilitates the sharing of criminal justice, humanitarian and public safety information among Interpol’s 190 member countries and more than 18,000 local, state, federal and tribal law enforcement agencies in the United States. In coordinating international investigative efforts, Interpol Washington works to enhance the safety and security of our nation.
For more information about Interpol Washington, visit: www.justice.gov/interpol-washington.
###
Interpol Washington Spearheads Foreign Terrorist Fighter Program, Serves as Catalyst for Global Information Sharing NetworkRead the Press Release
Interpol Washington today announced the formation of a dedicated Interpol Foreign Terrorist Fighter (FTF) program in partnership with the National Security Council (NSC), the Department of Justice (DOJ) and the Department of Homeland Security (DHS).
The program leverages the unique resources Interpol utilizes to combat transnational crime, including its secure, encrypted communications system, its criminal and analytical databases and its system of advisory notices. Through this program, Interpol will provide an unparalleled mechanism for addressing the threat from FTFs by helping to monitor and deter their international movement and interdict them at strategic entry points, where possible. Composed of the National Central Bureaus (NCB) of more than 30 member countries, the program was established in response to the need for a forum for sharing intelligence and best practices on a global scale to combat the threat of foreign terrorist fighters traveling to Iraq and Syria.
“Interpol provides critical leadership in advancing the Justice Department’s efforts to combat terrorism and ensure the safety of all Americans – offering cutting-edge resources, a structure for international cooperation, and strategic tools like Red, Blue and Green Notices for tracing, targeting and apprehending terror suspects,” said Attorney General Eric Holder. “In a world that is increasingly interdependent and interconnected, Interpol helps to defend against a range of evolving challenges by disseminating information, combating crime, and identifying potential threats. And particularly today, with the emergence of groups like ISIL, and the knowledge that some Americans are attempting to travel to countries like Syria and Iraq to take part in ongoing conflicts, Interpol – as the world’s largest international police organization – has a vital role to play in safeguarding our homeland and protecting the American people.”
“The threat posed by foreign fighters is one that is persistent and requires the full cooperation and resources of the international law enforcement community to effectively combat," said Secretary of Homeland Security Jeh Johnson. “We are already working closely with European and other governments to build better information sharing, and we will continue to leverage our partnership with the Interpol, Department of Justice and other international partners to make enhanced and concerted efforts to track foreign fighters who come from or seek to enter the United States.”
The program currently supports a working group that includes Australia, Belgium, Canada, France, New Zealand, Spain, Switzerland, the Netherlands, Turkey, the United Kingdom and the United States, and an international symposia—a multinational database populated with information contributed by and accessible to participating member countries. The criminal intelligence information contained in the database includes detailed identity particulars that are especially valuable to law enforcement and border control authorities in making determinations of the terrorist threat posed by subjects located in, or attempting to enter, their respective jurisdictions.
Interpol Washington played a critical role in the program’s development and is taking the lead on implementing it in the United States by continuing to strategically use Interpol Red Notices to target and apprehend terrorists for prosecution in U.S. courts and Interpol Blue Notices to trace and locate terrorists and others suspected of terrorism-related activity, including those not charged with a particular offense. Further, Interpol Washington is extensively utilizing Interpol Green Notices to publish information about hundreds of foreign nationals previously identified in both Iraq and Afghanistan and involved in terrorist activities. Interpol also offers countries the ability to use its information sharing system to send targeted messages to key partners on terrorist subjects.
“Interpol Washington continues to champion international police cooperation by leading U.S. efforts in the Interpol Foreign Terrorist Fighter program,” said Interpol Washington Director Shawn A. Bray. “Interpol provides a unique set of information sharing solutions for addressing this growing threat. By applying these solutions via its secure global communications network, Interpol member countries send a strong, unified message of engagement against FTFs and those who support them.”
Regional meetings, meetings of the heads of National Central Bureaus and the annual Interpol General Assembly represent additional opportunities for strengthening the FTF program. Finally, Interpol works closely with the United Nations, particularly the Sanctions Committee of the UN Security Council, to publish Special Notices on individuals listed by the Sanctions Committee as belonging to or associated with al Qaeda and the Taliban.
Interpol Washington, a component of the DOJ and co-managed by the DHS, facilitates the sharing of criminal justice, humanitarian and public safety information among Interpol’s 190 member countries and more than 18,000 local, state, federal and tribal law enforcement agencies in the United States. In coordinating international investigative efforts, Interpol Washington works to enhance the safety and security of our nation.
For more information about Interpol Washington, visit: www.justice.gove/interpol-washington.
Husband and Wife Indicted for Embezzling from Employee Benefit Plans and for Tax EvasionRead the Press Release
Baltimore, Maryland – A federal grand jury has indicted Shaun Tucker, a/k/a “Shawn Turner,” and his wife, Joanne Tucker, a/k/a “Joanne Krcma,” “Jill Swanson,” and “Jocelyn Turner,” both age 49, of Keymar, Maryland, for embezzling from employee benefit plans and for tax evasion. The indictment was returned on September 16, 2014 and unsealed yesterday.The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Bill Jones, U.S. Department of Labor – Office of Inspector General, Washington Regional Office of Labor Racketeering and Fraud Investigations; Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; Regional Director Marc I. Machiz of the U.S. Department of Labor, Employee Benefits Security Administration; and Special Agent in Charge Robert Craig of the Defense Criminal Investigative Service - Mid-Atlantic Field Office..
The Tuckers were officers and shareholders of Quantell, Inc. and Intaset Technologies Corporation. Both companies had employee health and welfare plans in which employees deposited their contributions. The Tuckers also served as the plan administrators of both companies’ employee plans, and as representatives of the plan sponsors, Quantell and Intaset.
According to the five count indictment, in October, 2009, upon Shaun’s request, the bank holding the companies’ plan funds issued a check for $50,000 from the Intaset employee plan and a check for $100,000 from the Quantell employee plan, payable to MT&B, a company that the Tuckers had registered with the IRS. On October 9, 2009, the Tuckers caused the two bank checks to be deposited into a bank account for MT&B.
On January 4, 2010, the Tuckers allegedly caused a bank check for $42,344.32 and another check for $92,655.24, to be deposited into the MT&B bank account. These remaining funds were also assets of the Quantell and Intaset plans.
The indictment alleges that from November 2009 to April 2010, the Tuckers caused money to be transferred from the MT&B bank account, and eventually used more than $200,000 to pay for the construction of a 5,000 square foot home in Swanton, Maryland and other personal benefits.
The indictment further alleges that on April 8 and October 7, 2010, Shaun Tucker falsely stated to representatives of the Department of Labor (DOL) that there had been no transfers of any Quantell plan assets. On November 8, 2010, Shaun Tucker submitted a form to DOL falsely certifying that all of the remaining assets from the Quantell plan had been transferred to a Quantell - MT&B employee plan, while knowing that the Tuckers had instead used the funds for their personal benefit.
The indictment seeks the forfeiture of $284,999, the total amount of money which the Tuckers allegedly embezzled from the company employee plans, along with the residence in Swanton and a 2011 BMW.
Finally, according to the indictment, the Tuckers filed a joint tax return for 2009 in which they falsely reported income of $180,251, when in fact they knew that their income was $821,579, upon which taxes of $256,069 were owed.
“Business owners have an obligation to their employees and as taxpayers.” said Thomas J Kelly, Special Agent in Charge, IRS Criminal Investigation, Washington DC Field Office.
The Tuckers face a maximum sentence of five years in prison and a fine of $250,000 on each of four counts of embezzling from an employee plan; and a maximum of five years in prison and a $100,000 fine for tax evasion. An initial appearance has been scheduled for the defendants on October 1, 2014 at 11:00 a.m. in U.S. District Court in Baltimore.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
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. Department of Labor – Office of Inspector General, IRS – Criminal Investigation, U.S. Department of Labor - Employee Benefits Security Administration, and DCIS for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Harry Gruber and Judson Mihok, who are prosecuting the case.
Hudson County, New Jersey Woman Admits Valentine's Day Bank Heist Was Part of Robbery SpreeRead the Press Release
NEWARK, N.J. - A woman today admitted committing three bank robberies over a three week span in Newark and Harrison, New Jersey – including one on Valentine’s Day, U.S. Attorney Paul J. Fishman announced.
Valeria Parziale, 35, of Harrison, N.J., pleaded guilty before U.S. Magistrate Judge Michael A. Hammer in Newark federal court to an information charging her with robbing a Wells Fargo Bank in Newark on Feb. 14, 2014. Parziale also admitted committing two other robberies.
According to the documents filed in this case and statements made in court:
Parziale robbed a Valley National Bank in Harrison on Jan. 30, 2014, a Wells Fargo bank in Newark on Feb. 14, 2014, and a Popular Community Bank in Newark on Feb. 20, 2014. At each robbery, Parziale handed the teller a note demanding cash and threatening the use of a gun. On one occasion, she wore a wig to disguise her identity.
On Feb. 24, 2014, Parziale was located in Newark and was in possession of a wig and a note similar to the one used in the prior bank robberies. She has been in custody since that time.
The bank robbery charge carries a maximum potential penalty of 20 years in prison and a $250,000 fine. Sentencing is scheduled for Dec. 23, 2014.
U.S. Attorney Fishman praised special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford, with the investigation leading to the arrest and charges. He also thanked the Newark, Kearny, and Harrison Police Department for their excellent work in this case.
The government is represented by Special Assistant U.S. Attorney Thomas S. Kearney of the U.S. Attorney’s Office General Crimes Unit in Newark.
14-342
Defense counsel: Assistant Federal Public Defender John Yauch Esq., Newark
Parziale, Valeria Information
Harrisburg Man Pleads Guilty to Conspiracy to Defraud the IRS of Approximately $1 Million in Employment TaxesRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that Son Thach, 55, Harrisburg, Pennsylvania, pleaded guilty today before U.S. District Court Judge John E. Jones III to conspiracy to defraud the IRS of approximately $1 million in employment taxes between 2006 and 2012.
According to U.S. Attorney Peter Smith, Thach and a co-conspirator operated five employee leasing companies which supplied day laborers to several businesses in the Harrisburg area.
The employee leasing companies were known as V&S Services, Industrial Labor Services, Advance Labor Services, HD Staffing Services and TD Staffing. Between 2006 and 2012, these five businesses paid cash wages of more than $7 million to their employees without withholding any employment taxes, such as social security and Medicare taxes. As a result, approximately $1 million in employment taxes were not collected and paid to the IRS, as required by federal law.
Thach was indicted by a grand jury on July 10, 2014 along with Vanny Son and Hung Danh, also of Harrisburg. Son is scheduled for trial in December 2014 and Danh remains a fugitive.
Thach faces up to five years’ imprisonment, a $250,000 fine and up to three years’ supervised release as well as restitution to the IRS as a result of the guilty plea. No date has been set for sentencing.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
The case was investigated by the Criminal Investigation Division of the IRS and is assigned to Senior Litigation Counsel Bruce Brandler for prosecution.
****Glacier Park Murder Prosecution Team Receive Award from Montana U.S. AttorneyRead the Press Release
HELENA- Seven investigators and the U.S. Attorney's Office trial team in the Jordan Graham murder investigation received a total of fourteen awards from Montana U.S. Attorney Mike Cotter today. The awards honor law enforcement in Montana who demonstrate integrity, candor, fairness and reliability in high profile, high stakes cases and investigations. In early July 2013, Graham killed her husband of eight days by pushing him off a remote cliff in Glacier National Park in northern Montana.
The following investigative team members received the U.S. Attorney's Excellence Award: Federal Bureau of Investigation Special Agents Steve Liss and Stacy E. Smiedala, Kalispell Police Department Captain Scott Warnell and Detectives Melissa Smith and Cory Clarke, National Park Service Special Agent Justin Ivary, and Flathead County Sheriff's Office Commander Dick Sine.
The trial team at the U.S. Attorney's Office also received from U.S. Attorney Cotter the Themis Award, which honors the diligent work of prosecution teams for successful prosecution of difficult and significant cases in the district. Themis was a Goddess of divine justice and law. Recipients of the award are: United States Assistant Attorneys Kris McLean and Zeno Baucus, and staff prosecution members, including Irene Pocklington, Cassie Potter, Sheryl Wyman, Colette Edam, and Kimberlee Taylor.
The conviction of Graham happened because of the incredible investigative team and a hard-working and talented trial team which worked tirelessly to propel this case to a right and just conclusion," said Montana U.S. Attorney Mike Cotter. "The United States Department of Justice and the Montana United States Attorney's Office extend our profound appreciation and thank you to the agents, officers, attorneys and trial support team involved in this investigation."
Georgia Man Sentenced to Fourteen Years for Conspiracy to Distribute Methamphetamine in Georgia and TennesseeRead the Press Release
CHATTANOOGA, Tenn. – On Sept. 24, 2014, Anthony Long, 42, of Chatsworth, Ga., was sentenced to serve 168 months in prison by the Honorable Harry S. Mattice Jr., U.S. District Judge. Long pleaded guilty in May 2014 to conspiracy to distribute methamphetamine. Upon his release from prison, he will be subject to three years of supervised release by the U.S. Probation Office.
Long was one of 18 individuals from Tennessee and Georgia charged in a conspiracy to transport methamphetamine from Atlanta to Polk County, Tenn., where it was distributed. In the plea agreement on file with the U.S. District Court, Long admitted that he had driven two pounds of methamphetamine from the Atlanta to Ranger, Ga., at the direction of his co-conspirators. When law enforcement attempted to stop his car, Long fled and led the officers on a high speed chase, exceeding 100 miles per hour, on Interstate 75.
The indictment and subsequent conviction of Long was the result of an investigation conducted by the Department of Homeland Security Investigations Division, Bureau of Alcohol, Tobacco, Firearms, and Explosives; Tenth Judicial District Drug Task Force; and Polk County Sheriff’s Office. Assistant U.S. Attorney Terra L. Bay represented the United States.
Fugitive Captured After Shootout with U.S. Marshals Indicted for Assault with A Deadly Weapon and Related Firearms OffensesRead the Press Release
Earlier today, a five-count indictment was returned by a federal grand jury sitting in Brooklyn, New York, charging Oswald Lewis, also known as “Alexander Louis,” “Junior,” “Andrew Jackson,” “Andre Bernard Jackson,” “John Green,” “Leslie Howard” and “Dre,” with assault on a federal officer by use of a deadly weapon and related firearms offenses. Lewis was arrested on August 26, 2014, and has remained in custody since then. The case has been assigned to United States District Judge I. Leo Glasser.
The charges were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; Charles G. Dunne, United States Marshal for the Eastern District of New York; William J. Bratton, Commissioner, New York City Police Department (NYPD), and James S. Higgins, Acting Special Agent-in-Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), New York Field Division.
As alleged in court documents, Lewis has been wanted since 1991 on numerous drug charges by the United States District Court for the Eastern District of Virginia. On August 26, 2014, the United States Marshals Service located Lewis in an apartment in the Springfield Gardens section of Queens, New York. Later that evening, Deputy U.S. Marshals and officers of the New York City Police Department went to the apartment to arrest him. When Deputy U.S. Marshals entered the apartment, Lewis, who was wearing body armor, yelled that he was holding a hostage and began shooting. In the midst of his shooting spree, Lewis fired shots out his apartment window at members of the NYPD, who had surrounded the premises. During an exchange of gunfire, Lewis was shot in the arm. He eventually surrendered and was taken into custody. No law enforcement officers were injured.
“As alleged, Oswald Lewis sought to extend his life on the lam by shooting his way out of a confrontation with law enforcement, endangering officers and civilians alike. As this case illustrates, the apprehension of armed fugitives like Lewis is a dangerous task,” stated United States Attorney Lynch. “We owe a great deal of gratitude to the United States Marshals Service, the New York City Police Department, and our other law enforcement partners, for their valiant and courageous efforts that, at long last brought Lewis to justice, and for safeguarding the communities that we call home. I also express thanks to the ATF for its participation in this investigation.”
“As alleged in the indictment, this incident shows just how dangerous fugitive work can be for the U.S. Marshals. This fugitive was wearing body armor, and he was armed with two illegal semi-automatic pistols when he opened fire without warning. Fortunately, no law enforcement officers were injured. This could have ended much differently,” stated United States Marshal Dunne.
ATF Acting Special Agent-in-Charge Higgins stated, “Although the defendant was able to enjoy his freedom for a substantial period of time, he quickly learned to appreciate the relentlessness of law enforcement. The ATF is grateful that no officers or innocent civilians were injured during Lewis’s capture and are determined - alongside the U.S. Attorney’s Office and our law enforcement partners - to see this investigation to its end. Society deserves nothing less.”
The charges in the indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being prosecuted by Special Assistant United States Attorney Jonathan P. Lax.
The Defendant:
OSWALD LEWIS
Age: 44
Queens, New York
E.D.N.Y. Docket No. 14-CR-523 (ILG)
Fresno Fugitive Apprehended by Marshals, Faces Tax Fraud ChargesRead the Press Release
FRESNO, Calif. — Gaylene Lynette Bolanos, 56, of Fresno, was apprehended Tuesday by the United States Marshals Service in Fresno, United States Attorney Benjamin B. Wagner announced.
Bolanos was indicted by a federal grand jury in September 2013 with seven other defendants for claiming more than $32 million in fraudulent tax refunds. Throughout the court proceedings, Bolanos has filed documents with the court claiming that she does not accept the authority of the United States government.
After her arraignment in October 2013, the court ordered Bolanos released from custody on a $5,000 bond and ordered to report on a regular basis to the Pretrial Services Office. In August 2014, Bolanos failed to report to Pretrial Services. She was ordered to appear for a bail review hearing on August 28, 2014, but failed to appear and did not respond to Pretrial Services’ attempts to contact her. As a result, the court issued a warrant for her arrest. After searching for Bolanos for several weeks, the United States Marshals Service was able to locate and arrest Bolanos in Fresno.
Bolanos appeared before United States Magistrate Judge Barbara A. McAuliffe today and was ordered detained as a flight risk.
This case is the product of an investigation by the Internal Revenue Service – Criminal Investigation. Assistant United States Attorneys Grant B. Rabenn and Megan A. S. Richards are prosecuting the case.
The charges against Bolanos are only allegations; she is presumed innocent until and unless proven guilty beyond a reasonable doubt. If convicted, Bolanos faces 10 years in prison for the conspiracy charge and five years in prison on each false claims charge. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Former Private School Coach Indicted for Secretly Fliming Students Undressing on School TripsRead the Press Release
The former cross country ski coach at a Seattle private school was indicted today by a federal grand jury for five child pornography related offenses, announced U.S. Attorney Jenny A. Durkan. JASON CHRISTOPHER PAUR, 44, of Seattle was arrested by the Royal Canadian Mounted Police in December 2013 at Silver Star ski area in British Columbia, Canada. The arrest came after female students on a school sponsored field trip discovered a video camera had been hidden in their bedroom. The camera had been positioned to video-tape the young students while they got dressed after showering. PAUR is charged with two counts of Production and Transportation of Child Pornography, Production of Child Pornography with Intent to Transport, Possession of Child Pornography and Transportation of Minors with Intent to Engage in Criminal Sexual Activity. PAUR remains in Canadian custody.
According to records in the case and the indictment, the investigation revealed that PAUR had secretly recorded students while on the annual field trip in 2011 and 2012. The camera seized in Canada contained images of students between the ages of 14 and 17 being secretly filmed while changing clothes or after exiting the shower. The indictment alleges PAUR used the pictures for his own sexual gratification, and transported the pictures from Canada to the U.S. The indictment further alleges that PAUR traveled with the juveniles to Canada knowing that he planned to film them for his own sexual gratification.PAUR was immediately removed from the field trip by the chaperons who notified police. PAUR was fired by the school, which has fully cooperated with law enforcement.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI). The case is being prosecuted by Assistant United States Attorney Kate Vaughan.
Press contact for the U.S. Attorney’s Office is Emily Langlie at (206) 553-4110 or [email protected].
Former Municipal Court Judge Pleads Guilty in Corruption CaseRead the Press Release
PHILADELPHIA – Joseph C. Waters, Jr., 61, of Philadelphia, pleaded guilty today to using his judicial position to influence the outcome of two cases in the Philadelphia Municipal Court, announced United States Attorney Zane David Memeger. Waters, a former Philadelphia Municipal Court Judge, pleaded guilty to an information charging mail fraud and honest services wire fraud.
According to documents filed in the case, on September 30, 2011, Waters was asked by Person #1 – a politically active business owner – to use his judicial office to achieve a favorable outcome in a small claims case filed in Philadelphia Municipal Court against Person #1’s real estate management company. To that end, Waters called two other Municipal Court judges, assigned to the case on different dates, and asked them to rule in Person #1’s favor. A Municipal Court Judge identified in the information as Judge #2 ultimately adjudicated the case in favor of Person #1 after Waters told Judge #2 “he’s a friend of mine.” The information charges that Judge #2’s ruling in favor of Person #1’s company prevented the plaintiff in the small claims case, Company B, from collecting $2733 in unpaid fees owed to it for security services it delivered to Person #1’s company.
Waters admitted today that he gave Person #1 a secret advantage through a series of secret ex parte communications with other Municipal Court judges scheduled to hear the small claims case and used his position to cause favorable rulings for Person #1.
The information outlined a second scheme in which Waters used his position as a judge to facilitate a favorable outcome in a criminal firearms case. According to the information, Person #1 urged a witness cooperating with the government, “CW#1,” to contribute money to help pay down debts Waters had incurred while campaigning for a position on the Municipal Court. In January 2010, CW#1, gave Waters $1,000 in cash. The information charged that, in accepting the money, Waters told CW#1 that he would help CW#1 with future problems that CW#1 or CW#1’s friends may encounter in the court system. The information further alleged that between 2010 and 2012, CW#1 provided gifts and cash contributions to Waters that were not reported on Waters’ campaign finance reporting forms.
In May 2012, CW#1 asked Waters for his assistance with a firearms prosecution pending in the Municipal Court. CW#1 introduced Waters to an undercover agent (“UC#1”) as a business associate. CW#1 and UC#1 asked Waters to help UC #1’s “cousin” who had been arrested for felony possession of a firearm. On July 23, 2012, Waters called Judge #1 alerting Judge #1 to the preliminary hearing of a “friend” for the firearms charge and asked Judge #1 to “help him.” According to the information, at a July 24, 2012 preliminary hearing, Judge #1, without proper legal basis, reduced the felony firearms charge to a misdemeanor.
U.S. District Court Judge Juan R. Sanchez scheduled a sentencing hearing for January 22, 2015. Waters faces a maximum statutory sentence of 40 years in prison, a fine of up to $500,000 and up to three years of supervised release.
The case was investigated by the FBI and is being prosecuted by Chief of the Public Corruption Unit Richard P. Barrett and Assistant United States Attorney Michelle L. Morgan.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Click here to read the information.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Former Hamilton County, Tennessee, Deputy Sheriff Indicted for Sexual Assault While on DutyRead the Press Release
Former Hamilton County Deputy Sheriff Willie Greer, 33, was indicted yesterday by a federal grand jury in Chattanooga, Tennessee, for sexually assaulting a woman while he was on duty on Jan. 5, 2014, the Justice Department announced.
Greer was charged with a civil rights violation for sexually assaulting the victim, which violated her constitutional due process rights to bodily integrity, kidnapping, carrying a firearm during and in relation to the sexual assault and possessing a firearm in further of the crime.
If convicted, the defendant faces a maximum penalty of life imprisonment and a fine of not more than $250,000. An indictment is a formal accusation of criminal conduct, not evidence of guilt. The defendant is presumed innocent unless and until proven guilty.
This case was investigated by the FBI and the Hamilton County Sheriff’s Office and is being prosecuted by Assistant United States Attorney James Brooks of the Eastern District of Tennessee and Civil Rights Division Trial Attorney Saeed Mody.
Former Director of Market Intelligence at Investor Relations Firm Pleads Guilty in Manhattan Federal Court to Insider TradingRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that MICHAEL A. LUCARELLI, the former Director of Market Intelligence at Lippert/Heilshorn & Associates, Inc. (“LHA”), an investor relations firm, pled guilty today in Manhattan federal court to insider trading. Specifically, LUCARELLI admitted repeatedly using material nonpublic information that he acquired during his employment at LHA to take positions in the stock of LHA clients over the course of the year-long scheme. LUCARELLI was arrested on August 26, 2014, and pled guilty to a one-count Information before U.S. District Judge Jesse M. Furman.
Manhattan U.S. Attorney Preet Bharara said: “Michael Lucarelli, in violation of his company’s policies and his clients’ trust, illegally traded on material nonpublic information for his own financial gain. For using his company’s and clients’ secrets for his own personal gain, he now faces time in federal prison and the forfeiture of over $900,000 that he unlawfully obtained. If you are not deterred by the line of convicted felons who engaged in insider trading over the past several years then you will join the line.”
According to the allegations contained in the Information filed today in Manhattan federal court, the underlying criminal Complaint unsealed on August 26, 2014, the plea agreement, and statements made during court proceedings:
From at least August 2013 through at least August 2014, LUCARELLI engaged in an insider trading scheme to use and trade upon material nonpublic information that he acquired during his employment at LHA, an investor relations firm based in Manhattan. Specifically, LUCARELLI, as an LHA employee, had access to working drafts of press releases prepared by LHA for its clients prior to their issuance to the investing public. Those draft press releases contained material, nonpublic information about business events and announcements relating to LHA’s clients.
In violation of LHA’s policies and in breach of his duties to LHA and its clients, on multiple occasions, LUCARELLI took positions in the stock of LHA clients shortly before the announcement by these companies of material information through press releases prepared by LHA. Shortly after LHA issued the press releases, LUCARELLI sold these securities that he had acquired prior to the issuance, thereby profiting on the movement in the stock price.
LUCARELLI repeatedly traded in LHA client securities despite LHA’s written code of conduct, which strictly prohibited LHA employees from trading in any security issued by an LHA client. LUCARELLI carried out his scheme in at least four different brokerage accounts. When opening new brokerage accounts through which to conduct his illegal trades, LUCARELLI did not reveal his affiliation with LHA. And, on two occasions, LUCARELLI opened new brokerage accounts soon after his ability to trade in other accounts had been suspended by the respective brokerage firms.
On or about July 24, 2014, the Federal Bureau of Investigation (“FBI”) obtained a court-approved search warrant to search LUCARELLI’s office at LHA for evidence of his insider trading activities. During that search, which was conducted without LUCARELLI’s knowledge, the FBI located a locked briefcase that contained a draft press release for LHA client TREX Company (“TREX”). That press release was marked “DRAFT” and contained TREX’s second fiscal quarter 2014 financial results. The following day, after the FBI completed the search, LUCARELLI started purchasing shares of TREX. Between July 25, 2014, and August 1, 2014, LUCARELLI took a net position of 37,400 shares of TREX. Then, on August 4, 2014, shortly before the market opened, TREX issued a press release announcing its second fiscal quarter 2014 financial results. Among other things, TREX announced that sales and earnings before taxes had increased 23 percent and 62 percent, respectively, in comparison with the comparable period in 2013. TREX also issued revenue guidance for the third fiscal quarter of 2014, which was a 27 percent increase over the comparable period in 2013. Within two hours of the announcement, LUCARELLI sold 35,058 of the 37,400 TREX shares he previously purchased. Those sales yielded a profit of almost $90,000.
As a result of the 13 instances of insider trading specifically set forth in the Information, LUCARELLI earned at least $538,215.32 in illicit proceeds. Furthermore, as reflected in the plea agreement, on at least 18 additional occasions, LUCARELLI took positions in LHA client securities on the basis of inside information. In total, these 31 instances yielded LUCARELLI $955,521.62 in profits.
LUCARELLI, 52, of New York, New York, pled guilty to one count of securities fraud. The securities fraud count carries a maximum sentence of 20 years in prison and a maximum fine of $5 million, or twice the gross gain or loss from the offense. As part of his guilty plea, LUCARELLI also agreed to forfeit $955,521.62 to the United States. The statutory maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge.
Mr. Bharara praised the investigative work of the FBI and thanked the Securities and Exchange Commission, which has filed civil charges in a separate action.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Since the inception of FFETF in November 2009, the Justice Department has filed more than 12,841 financial fraud cases against nearly 18,737 defendants including nearly 3,500 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Brian R. Blais and Damian Williams are in charge of the prosecution. Assistant U.S. Attorney Carolina A. Fornos of the Office’s Money Laundering and Asset Forfeiture Unit is responsible for the forfeiture of assets.
U.S. v. Michael Lucarelli Information
Former Delray Beach Resident Sentenced in Third Case Involving Identity TheftRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Donnell Young, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announce that Jeffrey Emil Groover, 53, formerly of Delray Beach, was sentenced today before U.S. District Judge Dimitrouleas to 13 years and seven months in prison, followed by three years of supervised release.
On June 25, 2014, Groover was convicted by a jury of all six counts with which he was charged. Specifically, Groover was convicted of one count of conspiracy to commit bank fraud, in violation of Title 18, United States Code, Section 1349, three counts of bank fraud, in violation of Title 18, United States Code, Section 1344, and two counts of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A.
According to records filed in this case and statements made in court, Groover used the personal identifying information (PII) of an individual without her knowledge or consent to open a checking account and obtain a debit/VISA card at TD Bank. Groover forged the name on the signature card for the account and, when asked for identification, produced a fraudulent, photo-switched Florida Driver's License with the individual’s correct information, but the defendant's photograph. Approximately one week after opening the account at TD Bank, Groover again used the individual’s PII to open a checking account at PNC Bank. When asked to provide two forms of identification for the account, Groover used the fraudulent debit/VISA card obtained from TD Bank, and the fraudulent, photo-switched Florida Driver's License. Groover directed the PNC banker to set up overdraft protection for the fraudulent checking account using the individual’s existing home equity line of credit. Between September 27, 2013 and September 30, 2013, Groover and his co-conspirators withdrew and attempted to withdraw approximately $170,000 from the individual’s home equity line of credit by cashing a $20,000 check drawn directly on the line of credit.
In a separate case involving an identity theft tax refund fraud scheme, Groover was sentenced on April 18, 2014, before U.S. District Judge Robin Rosenbaum to 60 months in prison, followed by three years of supervised release, and was ordered to pay $350,373.86 in restitution.
Noting Groover’s extensive criminal history, including numerous identity theft cases, the judge sentenced the defendant to a sentence significantly above the sentencing guideline range.
Mr. Ferrer commended the investigative efforts of IRS-CI. This case was prosecuted by Assistant U.S. Attorneys Adrienne Rabinowitz and Alexandra Hui.
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 Chief Financial Officer Indicted for $30 Million Bank FraudRead the Press Release
Thomas Torre, the former Chief Financial Officer of Metro Fuel Oil Corp. (“Metro Fuel”), located in Greenpoint, New York, has been charged in a two-count indictment with bank fraud and conspiracy for his participation in a scheme to overstate Metro Fuel’s accounts receivable in order to draw from a revolving line of credit issued by New York Commercial Bank. Metro Fuel later filed for bankruptcy after allegedly stealing over $30 million from the bank. The defendant is scheduled to be arraigned on Friday, September 26, 2014, at 11:00 a.m. before United States Magistrate Judge Vera M. Scanlon at the federal courthouse in Brooklyn.
The charges were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI).
According to court filings, from approximately July 2007 to July 2012, the defendant and others falsely overstated the company’s accounts receivable on certificates submitted to the bank at least once per month. The bank used the information in the certificates to determine the amount Metro Fuel could borrow from the bank on its revolving line of credit. The defendant and others misrepresented the true accounts receivable by deliberately failing to account for the cash payments received from customers and by creating fictitious invoice amounts. By September 2012, the fuel company could no longer pay its bills and filed a voluntary petition for bankruptcy. At the time of the bankruptcy, the fuel oil company owed the bank more than $30 million.
“The defendant and his co-conspirators obtained tens of millions of dollars in loans from New York Commercial Bank under false pretenses, claiming both that they had real collateral and that they intended to pay the money back. Neither claim was true, and when Metro Fuel collapsed the bank was left holding the over $30 million bag. Those who perpetrate fraud against our financial institutions will be met with the full force of law enforcement,” stated United States Attorney Lynch. Ms. Lynch extended her grateful appreciation to the Federal Bureau of Investigation, the agency responsible for leading the government’s investigation.
If convicted, the defendant faces up to 30 years’ imprisonment on each count. The charges in the indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
This prosecution was the result of efforts 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. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit http://www.StopFraud.gov.
The government’s case is being prosecuted by Assistant United States Attorney William P. Campos.
The Defendant:
THOMAS TORRE
Age: 63
Albertson, New York
E.D.N.Y. Docket No. 14-CR-514 (PKC)
Former CEO of Orange County Medical Device Firm Indicted for Providing Inside Information to Former Professional Baseball PlayerRead the Press Release
SANTA ANA, California – A federal grand jury today indicted the former chief executive officer of an Orange County medical device and eye care company on insider trading charges.
James V. Mazzo, who was the CEO of the Santa Ana-based Advanced Medical Optics, Inc., which was traded on the New York Stock Exchange under the symbol EYE, was added to an indictment that had previously named former professional baseball player Douglas DeCinces and two of his associates.
The case, which was initially filed in 2012, alleges that Mazzo was the source of non-public information that DeCinces and his associates used to trade EYE stock in the midst of a takeover bid by Abbot Laboratories.
The 41-count superseding indictment filed this afternoon in United States District Court charges Mazzo with providing DeCinces with confidential information in advance of Abbott’s 2009 acquisition of Advanced Medical Optics. DeCinces and his associates allegedly used the non-public information to purchase shares of EYE, which increased from approximately $8 to $22 as a result of the acquisition.
The indictment further alleges that Mazzo previously provided DeCinces with inside information in relation to Advanced Medical Optics’ 2007 acquisition of an Irvine medical device company, IntraLase Corp. (NASDAQ: ILSE). DeCinces allegedly used this inside information to purchase IntraLase stock, and to tip a friend to purchase shares, ahead of the announcement that Advanced Medical Optics was purchasing the company. IntraLase stock rose approximately 10 percent after the announcement of the deal.
The superseding indictment names:
James V. Mazzo, 57, of Laguna Beach, who was the CEO of Advanced Medical Optics from 2002 to 2009;
Douglas V. DeCinces, 60, of Laguna Beach, who currently is the president and CEO of a real estate development firm in Irvine;
David Parker, 60, of Provo, Utah, who was a friend and business partner of DeCinces; and
Fred Scott Jackson, 65, of Newport Beach, a real estate attorney who was friends with DeCinces.
The superseding indictment alleges that, during a series of meetings in the fall and early winter of 2008, Mazzo obtained inside information about Abbott’s planned tender offer, specifically that Abbott was prepared to pay $21 to $23 per share of EYE stock, which at the time was trading around $8 per share. Mazzo – who the indictment describes as a close personal friend of DeCinces’ – allegedly disclosed inside information regarding the tender offer during a series of meetings and telephone calls with DeCinces in the weeks leading up to the public announcement of the tender offer. During this same time, the indictment alleges, DeCinces began buying up EYE shares. According to the indictment, in December 2008, DeCinces liquidated his diverse stock portfolio of investments at Merrill Lynch – suffering approximately $80,000 in losses – to obtain approximately $160,000 that he used to purchase EYE stock. The superseding indictment alleges that DeCinces ultimately purchased a total of 90,700 shares of EYE stock, which he sold soon after Abbott’s tender offer for the company was publicly announced, and realized approximately $1.3 million in profits.
The indictment also alleges that DeCinces provided inside information about the Abbott tender offer to five other individuals who also purchased EYE stock. DeCinces allegedly gave the tip to Parker and Jackson, in part, to make up for prior investment recommendations that had gone bad. After purchasing EYE shares and selling them following the acquisition, Parker allegedly realized illegal profits of $347,920 and Jackson allegedly obtained illegal profits totaling $140,259.
An indictment contains allegations that a defendant has committed crimes. Every defendant is presumed innocent until and unless proven guilty.
The four defendants indicted in this case will be summoned to appear for arraignments in United States District Court in Santa Ana.
The indictment charges Mazzo with 13 counts of insider trading, 13 counts of tender offer fraud and one count of securities fraud.
DeCinces is charged with 19 counts of insider trading, 19 counts of tender offer fraud, one count of securities fraud and one count of money laundering.
Parker and Jackson are each charged with three counts of insider trading, three counts of tender offer fraud, and one count of securities fraud. Parker additionally faces one count of money laundering and criminal forfeiture.
The securities fraud count carries a maximum statutory sentence of 25 years in federal prison. Each of the insider trading and tender offer fraud counts in the indictment carry a maximum statutory sentence of 20 years. The money laundering counts each carry a maximum penalty of 10 years.
This investigation in this case was conducted by the Federal Bureau of Investigation and IRS Criminal Investigation. The Securities and Exchange Commission provided assistance during the investigation.
The SEC has a pending civil lawsuit in relation to the EYE insider trading scheme (see: http://www.sec.gov/News/PressRelease/Detail/PressRelease/1365171483872). DeCinces settled the case without admitting or denying the allegations, agreeing to pay $2.5 million in fines and not contest the IRS’ seizure of what were alleged to be insider trading profits. Jackson, without admitting or denying the allegations in the lawsuit also settled with the SEC, returning his profits and paying a penalty. A trial for Mazzo and Parker is scheduled for August 2015 in United States District Court in Santa Ana.
Release No. 14-128
Former Bossier Sheriff Larry Deen, Dealership Owners Indicted for Vehicle Purchase SchemeRead the Press Release
SHREVEPORT, La. –A grand jury indicted former Bossier Parish Sheriff Larry Deen and two owners of Blakey Auto Plex, LLC, U.S. Attorney Stephanie A. Finley announced today.
Former Bossier Parish Sheriff Larry C. Deen, 66, of Benton, La., Clinton E. Blakey, 40, of Shreveport, La., and Clifton D. Blakey, 35, of Benton, La., were indicted on one count of conspiracy to commit federal program theft, one count of federal program theft, and one count of failure to file IRS Tax Form 8300. According to the indictment, starting in January 2012, Deen is accused of conspiring with Clinton Blakey and Clifton Blakey, co-owners of Blakey Auto Plex, LLC (BAP), to retain control and gain ownership of a white four-door 2009 Chevrolet Suburban LTZ that was owned by the Bossier Parish Sheriff’s Office. They are also accused of attempting to unlawfully enrich themselves through the conspiracy, and did this in part by undervaluing the vehicle at $21,375 when it was traded in to BAP by the Bossier Parish Sheriff’s Office in May of 2012. The indictment also charges Clinton Blakey and Clifton Blakey with failing to file a Form 8300 in connection with $21,000 paid to BAP in July 2012. A Form 8300 is required to be filed when anyone engages in a trade or business who, in the course of such trade or business, receives more than $10,000 in a transaction or in two or more related transactions.
The defendants face five years in prison and one year of supervised release for the conspiracy count and 10 years in prison and three years of supervised release for the theft count. Clinton Blakey and Clifton Blakey face five years in prison and one year of supervised release for the Form 8300 count. They also face a $250,000 fine for each count and forfeiture of the proceeds traceable to and property involved in the offenses.
The FBI and Louisiana State Police conducted the investigation. Assistant U.S. Attorneys Cytheria D. Jernigan and Joseph G. Jarzabek are prosecuting the case.
An indictment is merely an accusation and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
Former Acting Pembroke Township Supervisor Pleads Guilty to Defrauding Township AccountsRead the Press Release
Urbana, Ill. – A former acting Pembroke Township Supervisor, Leon Eddie Mondy, pled guilty today to defrauding township accounts of more than $60,000 from August 2012 to May 2013. Mondy entered his open plea of guilty to one count of wire fraud in an appearance this afternoon before U.S. Magistrate Judge David G. Bernthal. Sentencing has been scheduled for Jan. 23, 2015, in Peoria, before Chief U.S. District Judge James E. Shadid.
Mondy, 35, of St. Anne, Ill., admitted that during the time he was serving as the acting Pembroke Township Supervisor, he withdrew more than $60,000 in cash from various township accounts and spent the money on gambling. Overall, according to court documents, Mondy lost $67,418 from gambling during the same time that he made $66,434 in unauthorized cash withdrawals from Pembroke township accounts.
As township supervisor, Mondy was a signatory and had access to the township’s various bank accounts. Mondy admitted he repeatedly transferred funds between township accounts and withdrew cash from the various accounts under the false pretense that the funds would be used for the benefit of the township. The accounts included Insurance, the Illinois Municipal Retirement Fund, Water, Community Center, Employee Deductions, Senior Nutrition, and Social Security. The cash withdrawals varied from as little as $300 to as much as $3,542.
The charge is the result of an investigation by the Federal Bureau of Investigation and the Illinois Attorney General’s Office. The case is being prosecuted by Assistant U.S. Attorney Eugene L. Miller.
The offense of wire fraud carries a maximum statutory penalty of 20 years in prison and fines of up to $250,000.
Foreign National Pleads Guilty to Smuggling Undocumented African Nationals into the United StatesRead the Press Release
A national of Eritrea and citizen of the United Kingdom pleaded guilty today to smuggling undocumented immigrants from Eritrea and Ethiopia into the United States.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Ronald C. Machen Jr. of the District of Columbia and Special Agent in Charge Clark Settles of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations’ (HSI) Washington, D.C., Field Office made the announcement.
According to his plea agreement, Habtom Merhay, 47, who operated primarily from his residence in Dubai, orchestrated the unlawful smuggling of up to 99 undocumented African immigrants to the United States for profit. Specifically, Merhay admitted that in exchange for fees up to $14,000, he smuggled immigrants into the United States by providing fraudulent travel documents, purchasing airline tickets for travel to South and Central America, and then coordinating with a network of smugglers to facilitate the travel by air, land and water across Central America and Mexico and into the United States.
Merhay pleaded guilty today before U.S. District Judge Reggie B. Walton of the District of Columbia, and is scheduled for sentencing on Dec. 16, 2014. Merhay was in the custody of Moroccan authorities between his arrest in Marrakech, Morocco, in August 2013 and extradition to the United States on April 25, 2014.
The investigation was led by HSI’s Washington, D.C., Field Office, with the support of the Human Smuggling Trafficking Center and the U.S. Customs and Border Protection’s National Targeting Center. This case is being prosecuted by Trial Attorney Jay Bauer of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Frederick Yette of the District of Columbia. The extradition was handled by Dan E. Stigall of the Criminal Division’s Office of International Affairs.
The Department of Justice and HSI expressed their appreciation for the significant assistance provided by the Moroccan Ministry of Justice.
# # #
Foreign National Pleads Guilty to Smuggling Undocumented African Nationals into the United StatesRead the Press Release
WASHINGTON – A national of Eritrea and citizen of the United Kingdom pled guilty today to smuggling undocumented immigrants from Eritrea and Ethiopia into the United States.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Ronald C. Machen Jr. of the District of Columbia, and Special Agent in Charge Clark E. Settles of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations’ (HSI) Washington, D.C., Field Office made the announcement.
According to his plea agreement, Habtom Merhay, 47, who operated primarily from his residence in Dubai, orchestrated the unlawful smuggling of up to 99 undocumented African immigrants to the United States for profit. Specifically, Merhay admitted that in exchange for fees up to $14,000, he smuggled immigrants into the United States by providing fraudulent travel documents, purchasing airline tickets for travel to South and Central America, and then coordinating with a network of smugglers to facilitate the travel by air, land and water across Central America and Mexico and into the United States.
Merhay pled guilty today before U.S. District Judge Reggie B. Walton of the District of Columbia, and is scheduled for sentencing on Dec. 16, 2014. Merhay was in the custody of Moroccan authorities between his arrest in Marrakech, Morocco, in August 2013 and extradition to the United States on April 25, 2014.
The investigation was led by HSI’s Washington, D.C., Field Office, with the support of the Human Smuggling Trafficking Center and the U.S. Customs and Border Protection’s National Targeting Center. This case is being prosecuted by Trial Attorney Jay Bauer of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Frederick Yette of the District of Columbia. The extradition was handled by Dan E. Stigall of the Criminal Division’s Office of International Affairs.
The Department of Justice and HSI expressed their appreciation for the significant assistance provided by the Moroccan Ministry of Justice.
14-215Federal Prison Guard Convicted of Attempting to Smuggle Cell Phone into Prison for an InmateRead the Press Release
Dublin, GA: Meagan Deaton, 23, from Douglas, Georgia, pled guilty and was sentenced earlier this week in federal court in Dublin, Georgia, for her role in attempting to smuggle a cell phone into a federal prison facility for an inmate.
According to evidence presented during the guilty plea hearing, Deaton, a former Federal Bureau of Prisons (BOP) Contract Correctional Officer assigned to the Correctional Institution in McRae, Georgia attempted to provide a cell phone to an inmate on October 17, 2013 in exchange for money. After entering her plea of guilty, Deaton was sentenced to 30 days in prison, 60 hours of community service, and one year of supervised release.
United States Attorney Edward Tarver said, “This defendant chose to place her own selfish interests above the safety of other BOP employees and the public she was sworn to protect. Those who attempt to smuggle contraband into federal prisons can expect to join the inmates from whom they are attempting to profit.”
Bob Bourbon, Special Agent in Charge, U. S. Department of Justice, Office of the Inspector General, said: “Introducing contraband such as cellphones into a prison is dangerous and can place BOP employees and other inmates in the institution at risk. This has been a successful team effort to identify, investigate, and prosecute this matter.”
The case was investigated the U. S. Department of Justice, Office of the Inspector General. Assistant U. S. Attorney Carlton Bourne prosecuted the case on behalf of the United States.
Federal Jury Convicts Leaders of Violent Drug Trafficking OrganizationRead the Press Release
BATON ROUGE, LA – United States Attorney Walt Green announced today the convictions of the leader of a violent drug trafficking organization and two of his lieutenants following a multi-week jury trial.
The leader, JEFFERY D. PERRY, age 31, of Baton Rouge, Louisiana, was convicted of conspiracy; seven other drug trafficking charges involving crack and powder cocaine; carjacking; and five charges involving the possession and use of firearms while being a felon and in furtherance of crimes of violence and drug trafficking. PERRY faces a mandatory minimum term of imprisonment of 45 years.
JERMAINE J. CHAPMAN, age 32, of Baton Rouge, Louisiana, was convicted of conspiracy; six other drug trafficking charges involving crack and powder cocaine; and possessing a firearm in furtherance of drug trafficking. CHAPMAN faces a mandatory minimum term of imprisonment of 25 years.
CHARLES BOYER, age 50, of Baton Rouge, Louisiana, was convicted of conspiring to distribute crack and powder cocaine. BOYER faces a mandatory minimum term of imprisonment of 10 years.
A sentencing date for these defendants has not yet been set. The jury acquitted a fourth defendant on the only count in which he was charged. In addition to the four defendants who went to trial, four other defendants previously pled guilty to their involvement in the drug trafficking conspiracy.
U.S. Attorney Walt Green stated: “Baton Rouge is truly a safer place without these defendants on the streets. The level of violence and depravity engaged in by this group made this prosecution essential. I am very proud of the prosecutors and agents who worked so hard to ensure that justice was done. This is another great example of how federal, state, and local collaboration can make our communities safer.”
The case was investigated by the Drug Enforcement Administration (DEA), the Baton Rouge City Police, and the West Baton Rouge Parish Sheriff’s Office. This case was prosecuted by Assistant United States Attorneys Robert W. Piedrahita, who serves as Litigation Counsel, and J. Christopher Dippel, Jr.
Fake Nurse Sentenced to 4-year Prison TermRead the Press Release
LITTLE ROCK, AR – Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, announced today that United States District Judge Brian S. Miller sentenced Susan Elaine Boyce, 60, formerly of Pleasant Plains, Arkansas, to four years in prison to be followed by three years of supervised release. Judge Miller also ordered Boyce to pay $175,099.24 in restitution to the Searcy Special School District.
Boyce was indicted by a federal grand jury on September 5, 2012. The seven-count indictment charged her with wire fraud, aggravated identity theft and misuse of a social security number. Boyce used an Arkansas State Board of Nursing license number and a Social Security Number belonging to another person to obtain employment as a school nurse in Searcy, Arkansas, from the 2007-08 school year through the 2011-12 school year. On February 26, 2014, Boyce pleaded guilty to one count of wire fraud, one count of aggravated identity theft, and one count of misuse of a Social Security Number.
The matter was investigated by Special Agent Jeffrey Hannah of the Office of the Inspector General for the U.S. Department of Health and Human Services and Special Agent Mark McElrath of the Office of the Inspector General of the Social Security Administration. Assistant United States Attorney Alexander Morgan prosecuted the case for the United States.
Enzo Biochem, Inc. and Enzo Clinical Laboratories Pay $3.5 Million to Resolve Civil Fraud AllegationsRead the Press Release
U.S. Attorney Loretta E. Lynch today announced that the United States and New York State have entered into a settlement agreement with Enzo Biochem, Inc., and one of its subsidiaries, Enzo Clinical Laboratories (collectively, “Enzo”), to resolve a case brought under the federal False Claims Act and the New York False Claims Act. The matter involves allegations that Enzo wrongfully input diagnosis codes into claim forms that it submitted for payment to the Centers for Medicare & Medicaid Services (“CMS”). Under the terms of the Settlement Agreement, Enzo will pay a total of $3,510,245.94 to resolve the investigation.
The investigation established that, from at least January 1, 2004 through the present, Enzo unlawfully input diagnosis codes into claims forms it submitted to CMS. Specifically, when a physician ordered tests to be performed at Enzo but did not submit a diagnosis code to go along with the order, Enzo employees would select and assign codes which they believed would be most likely to lead to reimbursement from CMS. Enzo did not – as it was required to do – go back to the physician to obtain the missing code. Through this unlawful practice, Enzo wrongfully obtained reimbursement from CMS.
The settlement followed a joint investigation by the United States Attorney’s Office for the Eastern District of New York and the New York Attorney General’s Medicaid Fraud Control Unit, who worked in partnership to uncover the wrongdoing and reach a resolution. U.S. Attorney Lynch thanked Attorney General Schneiderman and his staff for their cooperation in this case.
“The investigation uncovered evidence that Enzo was falsifying information in the claim submission process in order to inflate and secure reimbursements from CMS,” stated United States Attorney Lynch. “The Medicare and Medicaid systems serve our most vulnerable citizens, and those who seek to maximize their own profits at the expense of these critically important programs will be pursued to the fullest extent of the law.”
The investigation commenced with the filing of a qui tam complaint by Relator O and U 2011 Partnership LLP. Under the federal and state False Claims Act statutes, a private individual who has uncovered fraud against the government may file a suit in federal court on behalf of the United States and the State of New York. If the United States and the State are successful in resolving those claims, the individual who filed the complaint may receive a share
of the recovery.
The United States’ investigation was handled by Assistant U.S. Attorney Kenneth M. Abell and Trial Attorney David M. Finkelstein of the Commercial Litigation Branch, United States Department of Justice, with assistance from Affirmative Civil Enforcement Auditor Emily Rosenthal and Special Agent Jason S. Villeco of the Department of Health and Human Service’s Office of Inspector General. The state investigation was handled by Special Assistant Attorney General Carolyn Ellis.
El Departamento de Justicia Busca Cerrar Operaciones de Preparadora de Declaraciones de Impuestos de FiladelfiaRead the Press Release
WASHINGTON – Los Estados Unidos le pidieron a un tribunal federal en Filadelfia que prohibiera en forma permanente a Denise Miller Almanza y su empresa, Denise's Centro de Servicios, PC, preparar declaraciones de impuestos federales para terceros, anunció hoy el Departamento de Justicia. De acuerdo con la demanda, Almanza declaró indebidamente ingresos de sus clientes inferiores a los reales o reclamó indebidamente créditos tributarios en sus declaraciones, haciendo que los clientes recibieran reintegros de impuestos indebidos o reintegros por valores superiores a los que tenían derecho. Almanza y su empresa prepararon más de 14,000 declaraciones de impuestos federales desde 2010, de acuerdo con la demanda.
La demanda, entablada en el Tribunal Federal de Distrito para el Distrito Este de Pensilvania, alega que Almanza reclamó indebidamente crédito tributario adicional por hijo en las declaraciones de impuesto a la renta de clientes, lo que permitió que sus clientes recibieran, en promedio $2,900 de beneficios indebidos por declaración de impuestos. En total, la demanda alega que las actividades de Almanza a lo largo de los últimos cuatro años le costaron potencialmente al Tesoro de EE.UU. millones de dólares en ingresos tributarios perdidos.
El fraude de preparación de declaraciones de impuestos es uno de los ardides de la Docena sucia de ardides tributarios de 2014 del Servicio de Impuestos Internos [Internal Revenue Service (IRS)]. El IRS tiene algunos consejos en su portal en Internet para la elección de un preparador de impuestos. En la última década, la División de Impuestos del Departamento de Justicia ha obtenido interdictos contra cientos de preparadores de impuestos inescrupulosos. Se puede encontrar información sobre estos casos en el portal del Departamento de Justicia.
Dr. Robert Wayne Locklear Sentenced to Serve 24 Months in Federal Prison on Crack Cocaine Conspiracy and Health Care Fraud Conspiracy ChargesRead the Press Release
GREENEVILLE, Tenn. – On Sept. 22, 2014, Dr. Robert Wayne Locklear, 43, of Greeneville, Tenn., was sentenced by the Honorable J. Ronnie Greer, U.S. District Court Judge, to serve 24 months in federal prison, for his convictions of conspiracy to distribute cocaine base (crack) and conspiracy to commit health care fraud. He was also ordered to pay a total of $121,958.70 in restitution to TennCare and Medicare.
Locklear was licensed to practice medicine in both Tennessee and Virginia. He operated two businesses, Trinity Internal Medicine and Sleep and Trinity Recovery Clinic, in Greeneville, Tenn. The latter was an office based substance abuse treatment program where individuals with opioid addictions were treated with Suboxone or Subutex in an outpatient setting.
According to the plea agreement on file with the U.S. District Court, while operating these businesses, Locklear developed addictions to alcohol and crack cocaine. During the investigation, he told law enforcement agents that he began smoking crack cocaine in February 2013 and did so several times a week. By April 2013, Locklear admitted that he was smoking crack cocaine every day, before, during and after work. He also admitted that he went back to the office at night to run the Suboxone clinic and that he saw patients “with a buzz.” Locklear further admitted that he gave/distributed crack cocaine to others individuals, as well as having others cook cocaine into crack cocaine for him. He was arrested in June 2013 with approximately 6.4 grams of crack cocaine and several crack pipes in his pockets. Less than one week before that arrest, law enforcement officers found Locklear in possession of approximately four grams of crack cocaine and more crack pipes.
The plea agreement further provided that, over time, Locklear’s excessive drug and alcohol usage resulted in his coming into the office to see patients only sparingly. In order to keep his Suboxone practice going, he told his office staff to continue to see patients, call in their prescriptions for Suboxone and order urine drug screens in his absence. Locklear did so knowing that no employee/medical assistant at his practice was properly licensed or trained to provide these requisite medical services. By having his staff continue to see patients in his absence, Locklear authorized prescriptions for medications, including Suboxone, to be distributed to patients that he had not seen, had not conducted physical examinations on, and had not determined sufficient medical necessity for the prescriptions.
Evidence showed that, on numerous occasions, drug screens for Locklear’s patients came back positive for the presence of non-prescribed illegal drugs such as oxycodone, marijuana, methamphetamine and cocaine or came back negative for drugs actually prescribed by Locklear to the patient. Often, these abnormal drug screens were not properly reviewed by Locklear and the patients were not counseled as to the illegal drug usage; however, the patients routinely continued to have their Suboxone prescriptions called in anyway.
U.S. Attorney William C. Killian stated, “Dr. Locklear put the health, well-being and lives of his patients in jeopardy by his inability or unwillingness to place them ahead of his own addictions. His conviction and sentence send a message to the public that this type of conduct will not be tolerated and serve as a deterrent to other doctors who find themselves in similar situations.”
The investigation leading to this indictment and conviction was conducted by the Federal Bureau of Investigation, Tennessee Bureau of Investigation and Third District Judicial Drug Task Force. Assistant U.S. Attorney Wayne Taylor represented the United States.
Dennis Keith Gibbons Jr. Sentenced to 210 Months in Prison on Oxycodone Conspiracy ChargesRead the Press Release
GREENEVILLE, Tenn. – On Sept. 22, 2014, Dennis Keith Gibbons Jr., 37, of Elizabethton, Tenn., was sentenced by the Honorable J. Ronnie Greer, U.S. District Court Judge, to serve 210 months in federal prison for his leadership role in an oxycodone conspiracy centered in and around the Carter County, Tennessee area.
According to the plea agreement on file with the U.S. District Court, Gibbons stipulated that he conspired to distribute a conservative estimate of 12,500 (30 milligram) oxycodone pills in the Eastern District of Tennessee and elsewhere. He admitted to obtaining and distributing oxycodone pills from a pain clinic in Georgia since 2011. Thereafter, he sent seven individuals to Georgia to obtain pills for him, while another four individuals were selling oxycodone pills for him in Tennessee.
After the pain clinic was shut down, Gibbons began obtaining oxycodone pills from a different source of supply in Georgia. He and/or his father, a co-defendant in the conspiracy, began making weekly trips, getting anywhere from 500 to 1000 (30 milligram) oxycodone pills per trip for at least three months. Gibbons kept and sold some of these pills, but gave most of them to his father and others to sell in the Carter County, Tennessee area.
An individual working on behalf of law enforcement purchased quantities of oxycodone pills from Gibbons on five separate occasions. Officers also purchased various quantities of oxycodone pills on 13 separate occasions from his father.
In July 2013, a federal search warrant was executed at Gibbons’ residence where a shotgun, ammunition, two baggies containing approximately 79 oxycodone pills and approximately $9100 in cash were found.
Gibbons’ father, Dennis Keith Gibbons, Sr., 63, pleaded guilty in July 2014 and sentencing was scheduled for Nov. 3, 2014, before the Honorable J. Ronnie Greer, U.S. District Court Judge.
Law enforcement agencies participating in the investigation which led to the indictment and subsequent conviction of Gibbons include the Drug Enforcement Administration, Tennessee Bureau of Investigation and First Judicial District Drug Task Force, all of which provided invaluable assistance during the course of the investigation. Assistant U.S. Attorney Wayne Taylor represented the United States.
Dallas-area Woman, Andrea Birdow, Pleads Guilty to Conspiracy to Traffick A Minor for the Purpose of ProstitutionRead the Press Release
U.S. Attorney Kenneth Polite announced that ANDREA BIRDOW, 22, of Sherman, Texas, pleaded guilty today to conspiring with her boyfriend, TAUREAN JACKSON, to trafficking of a minor from the Dallas, Texas-area into the New Orleans area for the purposes of that minor engaging in prostitution.
According to court documents, BIRDOW met JACKSON in 2012 after JACKSON recruited her to join “Star City Vixens,” an entity he created to foster and promote prostitution. JACKSON became BIRDOW’s pimp and arranged for her to engage in sexual acts with others in exchange for money. JACKSON was responsible for advertising and scheduling prostitution calls with BIRDOW. JACKSON kept all, or most, of the proceeds from the prostitution calls. As a means of controlling BIRDOW’s behavior and ensuring her compliance, JACKSON beat and choked BIRDOW on multiple occasions, often in front of others. On several occasions, JACKSON burned BIRDOW with lit cigarettes to discipline her.
In mid-June 2013, JACKSON and BIRDOW met the victim, who was then 16-years-old, in the Dallas, Texas-area and recruited her to work for JACKSON as a prostitute. Over the course of the next several weeks, JACKSON and BIRDOW drove the victim throughout Texas and Louisiana for the purpose of BIRDOW and the victim engaging in prostitution, which JACKSON advertised and arranged using an online classified advertisement. JACKSON arranged for the victim to watch BIRDOW engage in prostitution acts as a means of educating her on the best way to perform sexual acts. On July 10, 2013, BIRDOW and the victim were arrested in a Metairie hotel room by undercover law enforcement officers, who responded to an online classified advertisement offering a prostitution date.
BIRDOW faces a maximum sentence of five years imprisonment, followed by three years of supervised release, and a $250,000 fine. She may also be required to register as a sex offender. Sentencing is scheduled for January 14, 2015 before U.S. District Judge Susie Morgan.
JACKSON’s trial is scheduled to begin on November 3, 2014. JACKSON faces a mandatory minimum term of imprisonment of 15 years and a maximum of life, followed by up to a life term of supervised release, a $250,000 fine, and can also be required to register as a sex offender.
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.”
This case was initiated by the Jefferson Parish Sheriff's Office and is being investigated by agents from the Federal Bureau of Investigation, with assistance from the FBI Dallas Child Exploitation Task Force, and the Dallas Police Department High Risk Victims Unit. The prosecution of this case is being handled by Assistant United States Attorney Jordan Ginsberg.
(Download Factual Basis )
Court of Appeals Upholds Convictions and Sentence in Extensive Investment SchemeRead the Press Release
Jacksonville, FL - United States Attorney A. Lee Bentley, III announces that the United States Court of Appeals for the Eleventh Circuit yesterday affirmed the convictions and sentence of Lydia Cladek (70, St. Augustine). On January 26, 2012, a federal jury found Cladek guilty of conspiracy to commit mail and wire fraud, and multiple counts of substantive mail and wire fraud related to a fraudulent investment scheme that resulted in more than $50 million in losses to her victims. Cladek was sentenced on September 20, 2012, to 30 years and four months’ imprisonment.
The evidence presented at trial established that Cladek had encouraged investors, many of whom she cultivated from her church and other social organizations, to invest with her company, Lydia Cladek, Inc. (LCI). Cladek had represented that investments were fully secured by viable collateral, in the form of car loan notes, and that monies invested would be used to purchase additional car loan notes. Instead, Cladek used the investors’ money to purchase high-end properties for herself and to maintain her own lavish lifestyle. She paid interest to existing investors, not with proceeds from car loans, but with the money invested by new investors. Although most of LCI’s employees had been unwitting pawns in her scheme, Cladek’s lead accountant had known that investors were being misled, and she had agreed with Cladek to keep them in the dark.
Cladek appealed her conspiracy conviction and her sentence to the Court of Appeals. She argued that the evidence was insufficient to establish that she had conspired with her lead accountant to defraud investors, and that the District Court had incorrectly determined that she had been an organizer or leader in an extensive criminal activity. Cladek also argued that the Court had overestimated the amount of loss her victims had suffered as a result of her malfeasance. After hearing oral argument, the Court of Appeals rejected Cladek’s argument, stating that there was “more than enough evidence” to support her conspiracy conviction, that it “[could not] fathom how such a scheme could be labeled as anything other than extensive,” and that the District Court “did not err—much less clearly err” in its loss determination.
This case was investigated by the Federal Bureau of Investigation, with the assistance of the Florida Department of Insurance Fraud. It was prosecuted in the District Court by Assistant United States Attorney Jay Taylor. This appeal was handled by Assistant United States Attorney Susan H. Rothstein-Youakim.
Community Leaders to Create Ohio Valley Addiction Action PlanRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistWHEELING, WEST VIRGINIA – Community leaders from Northern West Virginia have joined forces to attack the problem of drug addiction in the Ohio Valley.
United States Attorney William J. Ihlenfeld, II, and Judge David J. Sims of West Virginia’s First Judicial Circuit announced the formation of a working group to address the issue of addiction as well as the large number of drug overdoses that are occurring in the region. Ihlenfeld and Sims are serving as co-chairpersons of the group, which has been in operation since July and will present a final addiction action plan to the community in December.
The working group is comprised of officials from a variety of fields, including education, law enforcement, healthcare, rehabilitation, business, legislative, treatment, recovery, and the news media. Subcommittee meetings took place in August and September and will continue throughout the fall.
According to Ihlenfeld, the goals of the group include preventing people from using heroin, helping treat those who have become addicted to heroin, opioids and other drugs, choking off the supply of heroin to the region, and working collaboratively to make the Ohio Valley stronger, safer, and healthier. If the plan is successful it will be implemented in other parts of the state and region.
“Drug abuse has become a public health crisis in the region and so we’ve gathered passionate and talented leaders from multiple disciplines to push back against addiction,” said Ihlenfeld. “This is a problem that impacts everyone in the Valley in some way and so we must work together. Based upon work that the group has already done, I’m optimistic that we’ll find a formula that works.”
Judge Sims stressed the importance of collaboration when taking on a task of this nature.
“It has become clear to me through my work as a judge that a multi-pronged approach is necessary if we’re going to loosen the tight grip that addiction has upon our communities,” said Judge Sims. “Hopefully, by bringing together the various skills of the people that make up this working group, we’ll make a real difference and save lives.”
Members of the Ohio Valley Addiction Action Plan Working Group are as follows:
William J. Ihlenfeld, II, United States Attorney & Co-Chairperson of working group;
Hon. David J. Sims, Judge, First Judicial Circuit & Co-Chairperson of working group;
Dr. Angelo Georges, M.D., Chief Medical Officer, Wheeling Hospital, Chairperson of Medical Subcommittee;
Dr. Dianna Vargo, Superintendent, Ohio County Schools, Chairperson of Education Subcommittee;
Del. Erikka Storch, W.Va. House of Delegates, Chairperson of Business & Legislative Subcommittee;
Sheriff Chuck Jackson, Brooke County Sheriff’s Department, Chairperson of Law Enforcement Subcommittee;
Mark A. Games, President/CEO, Northwood Health Systems, Co-Chair, Mental Health/Substance Abuse Treatment Subcommittee;
Terry Stemple, Chief Executive Officer, Healthways, Inc., Co-Chair, Mental Health/Substance Abuse Treatment Subcommittee;
James Lee, Retired Chief Probation Officer, First Judicial Circuit, Chairperson of Community Corrections Subcommittee;
Brenda Danehart, News Director, WTRF, Chairperson of News Media Subcommittee;
Patti Barnabei, Founder, Never Alone West Virginia, Chairperson of Support Group Subcommittee.###Colombian Nationals Convicted of Conspiring to Import Cocaine into the United StatesRead the Press Release
NORFOLK, Va. – German Dario Brand Piedrahita, 48, of Medellin, Colombia, pleaded guilty yesterday to conspiracy to manufacture and distribute cocaine for the purpose of importation into the United States. Today, Sonia Cruz Quiceno, 48, of Calarca, Colombia, was sentenced to 168 months in prison, followed by five years of supervised release, for her involvement in the same conspiracy to manufacture and distribute cocaine for the purpose of importation into the United States.
Dana J. Boente, United States Attorney for the Eastern District of Virginia, Karl C. Colder, Special Agent in Charge for Drug Enforcement Administration’s Washington Division Office, and Royce E. Curtin, Special Agent in Charge of the Federal Bureau of Investigations’ Norfolk Field Office, made the announcements after Cruz Quiceno’s sentencing by U.S. District Judge Raymond A. Jackson.
Brand Piedrahita and Cruz Quiceno were indicted on October 23, 2013 by a federal grand jury on charges stemming from their roles in a cocaine importation, firearms, and narco-terrorism conspiracy. According to court documents, both Brand Piedrahita and Cruz Quiceno were associates of the Bacrim Los Urabeños, a transnational narco-trafficking organization operating in Colombia.
In a statement of facts filed with his plea agreement, Brand Piedrahita, admitted to his role in the production of large quantities of cocaine in Colombia on behalf of the Bacrim Los Urabeños, and the subsequent transport of the cocaine to other members of the conspiracy for the eventual importation into the United States. Within the conspiracy, Brand Piedrahita was involved in purchasing cocaine base, constructing a jungle laboratory for the production of cocaine from cocaine base, transporting the cocaine to the coast of Colombia, and collecting payment for various cocaine loads. All told, Brand Piedrahita was involved in the production and shipment of hundreds of kilograms of cocaine throughout the life of the conspiracy. He will be sentenced on January 7, 2015.
Cruz Quiceno pleaded guilty on March 19, 2014. According to court documents, Cruz Quiceno was responsible both for negotiating cocaine sales and moving money on behalf of the Bacrim Los Urabeños. She is responsible for the movement of millions of U.S. dollars back into Colombia from the sale of cocaine in the United States.
This case was investigated by the Norfolk Resident Office and Bogota, Colombia Country Office of the Drug Enforcement Administration, the Federal Bureau of Investigation, and the Colombian National Police. Assistant U.S. Attorneys V. Kathleen Dougherty, Kevin M. Comstock, and Joseph E. DePadilla are prosecuting the case.
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. 2:13-cr-122.
Chief Financial Officer Pleads Guilty in Multi-Million Dollar Advance Fee and Alaskan Gold Mine Investment SchemesRead the Press Release
Earlier today, Frank E. Perkins, 54, a resident of La Grange, Kentucky, pleaded guilty to two counts charging conspiracy to commit wire fraud and conspiracy to commit securities fraud and wire fraud for his leadership role in two separate schemes. In the first scheme, Perkins, the Chief Financial Officer (“CFO”) of Harbor Funding Group, Inc. (“HFGI”), defrauded developers and their clients seeking to rebuild regions of the South devastated by Hurricane Katrina of more than $9 million through false representations, including that HFGI had the funds to provide millions of dollars in private financing in exchange for a ten percent down payment. In the second scheme, Perkins, the CFO, Secretary and Treasurer of Black Sand Mine, Inc. (“BSMI”), induced investors to purchase stock in BSMI by telling lies about, among other things, the qualifications and experience of BSMI’s officers and directors, and by concealing, among other things, his prior employment at HFGI. When sentenced, Perkins faces up to 20 years in prison and the payment of approximately $10 million in restitution to the victims of his frauds. In March 2014, co-defendants Brad Russell and Kristofor Lange were convicted by a federal jury in Brooklyn, following a six-week trial, on all charged counts. On September 19, 2014, co-defendant William Lange, the mastermind of both schemes, pleaded guilty to the same two counts as Perkins.
The guilty verdicts were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, Philip R. Bartlett, Inspector in Charge, New York Division, U.S. Postal Inspection Service (USPIS), and Frank Montoya, Jr., Special Agent in Charge, Federal Bureau of Investigation, Seattle Field Office (FBI).
Perkins and his co-conspirators told land developers and their clients that HFGI had lenders and millions of dollars in funds available to provide financing for their real estate projects. As a condition for financing, HFGI required investors to place ten percent of the loan amount in an attorney escrow account. Contrary to Perkins’ representations, HFGI did not have lenders or funds available to finance the loans. As soon as the money was placed in escrow, Perkins and his co-conspirators stole it, at times through the use of a sham escrow agreement. Through this scheme, Perkins and his co-conspirators stole more than $9 million from approximately 300 individuals. As CFO, Perkins authorized the $9 million to be spent on, among other things, salaries, fishing and hunting trips for co-defendants William and Kristofor Lange, remodeling and landscaping for co-defendant William Lange’s new house, and other business ventures started by Perkins and his co-conspirators.
After the $9 million was spent, Perkins and his co-conspirators moved on to BSMI and the gold mine investment scheme. BSMI claimed that it would mine gold and other precious metals on Sitkinak Island in Alaska. Through the use of in-person presentations, cold calls, and “webinars,” Perkins and his co-conspirators convinced investors to purchase BSMI stock by lying to them about the credentials of BSMI’s officers and directors, BSMI’s assets and liabilities, the intended use of investor funds, and by concealing their prior involvement in HFGI. Perkins also concealed his prior involvement in HFGI. Almost $1 million collected from investors in BSMI was spent on salaries and other personal expenses for Perkins and his co-conspirators.
“Most Americans saw the devastation wrought by Hurricane Katrina and looked for ways to help the victims. Perkins and his co-defendants looked for ways to help themselves, devoting their energies not to rebuilding but to swindling millions of dollars from victims through their advance fee scheme. Instead of doing his duty as a CFO and ensuring the financial integrity of HFGI and BSMI, Perkins used his accounting experience to transfer almost $10 million of stolen money between various accounts, including the escrow account of a Brooklyn-based attorney. He will now be held to account for his crimes and for breaching his responsibilities to the victims,” stated United States Attorney Lynch. Ms. Lynch thanked the USPIS and the FBI for their hard work and dedication through the course of this five-year investigation and prosecution. Ms. Lynch also extended her grateful appreciation to the United States Attorney’s Office for the Western District of Washington for its assistance in the case.
The government’s case is being prosecuted by Assistant United States Attorneys Winston M. Paes, Alixandra E. Smith, and Melanie Hendry.
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 is 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. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
The Defendant:
FRANK E. PERKINS
Age: 54
Residence: La Grange, Washington
E.D.N.Y. Docket No. 10-CR-968 (DLI)
Chicago Area Man Sentenced to 22 Years in Prison for Manufacturing Child PornogrphyRead the Press Release
CHICAGO ― A Chicago area man was sentenced today to 22 years in federal prison for producing child pornography involving two 16-year-old girls he met in private Internet chat rooms in 2012 and induced to take sexually explicit photos of themselves and send them to him. The defendant, MARK BARRETO, 36, of Elmwood Park and formerly of Chicago, who has been in custody since he was arrested on federal charges a year ago, pleaded guilty in June of this year to one count of manufacturing child pornography.
In imposing the sentence, U.S. District Judge Edmond Chang noted the “extremely serious” nature of Barreto’s crime and the vulnerability of both the teenage victims and others as young as 5-years-old who were discovered in pornographic images that Barreto possessed. The judge also ordered Barreto placed on court supervision for 10 years following his release from prison, and ordered him to pay $8,600 restitution to a known victim of child pornography who was identified through the National Center for Missing and Exploited Children.
“Whatever face [Barreto] may have presented to his family, co-workers, and the world at large, it is now apparent that he spent considerable time collecting and viewing images and videos of young children being raped and sexually abused,” Assistant U.S. Attorney Katherine Sawyer argued in seeking a lengthy sentence.
Manufacturing child pornography carries a mandatory minimum sentence of 15 years and a maximum of 30 years in prison.
U.S. postal inspectors conducted a search of Barreto’s residence in October 2012 and found a laptop computer that contained approximately 433 images and 15 videos of child pornography, as well as email accounts showing that he had been communicating with various minor females, including the two he induced to produce images and videos of child pornography for him.
The sentence was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Tony Gómez, Special Agent-in-Charge of the U.S. Postal Inspection Service in Chicago. The Bolingbrook and Naperville police departments and the Will County State’s Attorney’s Office, which initially charged Barreto before the case was adopted federally, assisted in the investigation.
Catholic Charities West Michigan Agrees to Implement Compliance Program in Settlement of Government’s False Claims Act AllegationsRead the Press Release
Nonprofit Organization Acknowledges That It Should Have Known
That Services Were Not Provided As ClaimedGRAND RAPIDS, MICHIGAN – Catholic Charities West Michigan, a nonprofit organization based in Grand Rapids, has entered into an agreement with the U.S. Attorney’s Office for the Western District of Michigan that requires the agency to implement a compliance program and hire an independent organization to review Catholic Charities’ claims for behavioral health services under penalty of a potential exclusion from federal health care programs. The settlement announced today resolves allegations that between May 1, 2010 and December 31, 2013, Catholic Charities’ Behavioral Health Unit submitted false Medicaid claims for services that were rendered by a Catholic Charities practitioner with a lapsed license, services that did not comply with applicable supervision and documentation requirements, and services that Catholic Charities upcoded using billing codes for higher-paying services than were actually performed.
As part of the settlement, Catholic Charities acknowledged that it should have known that (1) the agency submitted claims for services rendered by a practitioner with a lapsed license between May 31, 2010 and August 17, 2011; and (2) the agency submitted claims, under prior management, using billing codes for longer therapy sessions than were provided to patients. Under the terms of the settlement agreement, Catholic Charities has agreed to implement and maintain a compliance program for at least two years. This compliance program requires the agency to do the following, among other things: report certain violations of state or federal criminal, civil, or administrative laws to the U.S. Attorney’s Office; implement written procedures to ensure the accuracy of billing codes that are used to submit claims to insurers; and create a means by which billing concerns and other issues can be reported anonymously and confidentially, without retribution or retaliation by Catholic Charities. Catholic Charities has also agreed to hire an independent firm to evaluate the agency’s billing practices and perform unannounced reviews of Catholic Charities’ claims for behavioral health services for at least two years.
If Catholic Charities materially defaults on its obligations under the settlement agreement, the U.S. Attorney’s Office will refer Catholic Charities to the U.S. Department of Health and Human Services, Office of Inspector General (“HHS-OIG”) for potential exclusion from federal health care programs, including Medicare and Medicaid. As part of the settlement, Catholic Charities has agreed not to contest any such exclusion.
The U.S. Attorney’s Office for the Western District of Michigan investigated this case. Assistant U.S. Attorney Adam B. Townshend represented the United States.
END
Canton Man Sentenced to More Than Two Years in Prison and Ordered to Pay Nearly $200,000 for Tax ViolationsRead the Press Release
A Canton man was sentenced to more than two years in prison and ordered to pay nearly $200,000 in restitution for tax violations, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Kathy Enstrom, Special Agent in Charge of the IRS' Cincinnati Field Office.
Frederick C. Berndt, 39, previously pleaded guilty to five counts. U.S. District Judge Donald C. Nugent sentenced Berndt to 25 months in prison and ordered him to pay $197,206 in restitution.
"This sentence serves as a message to those who would shirk their responsibilities to pay taxes," Dettelbach said.
“The privilege of living well in the United States carries certain responsibilities, one of which is the voluntary payment of taxes,” Enstrom said. “IRS Criminal Investigation will vigorously investigate those individuals who knowingly and willfully evade their tax obligation.”
Berndt, then chief executive officer of 11 Good Energy, Inc, evaded paying taxes in calendar years 2003, 2004 and 2006 and failed to file income taxes in years 2007 through 2010, according to court documents.
The case is being prosecuted by Assistant U.S. Attorney Ann C. Rowland and former Assistand U.S. Attorney Justin J. Roberts following an investigation by the Internal Revenue Service.
Canadian Man Sentenced in Case Involving Largest Seizure of Cocaine in District HistoryRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Michael Bagri, 54, a citizen of Canada, who was convicted conspiracy to export five kilograms or more of cocaine from the United States into Canada, was sentenced to 70 months in prison by Chief U.S. District Judge William M. Skretny.
“Because Twenty First century criminals do not respect international borders, law enforcement must work with those from other nations in order to fully protect the homeland,” said U.S. Attorney Hochul. “This case stands as a model of what is possible when police and prosecutors do just that.”
Assistant U.S. Attorney Timothy C. Lynch, who handled the case, stated that on September 8, 2010, Bagri’s co-defendant, Ravinder Arora attempted to cross the Lewiston-Queenston Bridge from the United States into Canada. An outbound inspection of Arora's tractor-trailer revealed a hidden compartment underneath the floor. Inside, U.S. Customs and Border Protection Officers and Special Agents of Immigration and Customs Enforcement, found approximately 97 kilograms (over 200 pounds) of cocaine. This amount, valued at approximately $3.6 million dollars, represents one of the largest seizures ever in the Western District of New York.
The investigation revealed that Bagri packed the 97 kilograms of cocaine into the hidden compartment at a warehouse located in California, with the trailer and the cocaine ultimately transported across the United States to Canada, via the Lewiston-Queenston Bridge. In early May 2011, the defendant traveled from Buffalo, New York to California, where he loaded another tractor-trailer with approximately 26 kilograms (over fifty pounds) of cocaine. This cocaine was then transported across the United States before being seized by federal agents outside of Geneva, New York.
The defendant admitted to packing cocaine in tractor-trailers on nine additional occasions. The total amount of cocaine involved in these smuggling trips exceeded 1,600 kilograms (over three and one-half tons).
Co-defendant Ravinder Arora was sentenced to 84 monhs in prison in May 2014. Another co-defendant Parminder Sidhu has been convicted and is awaiting sentencing.
The sentencing is the result of an investigation by Special Agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero, Officers from the United States Customs and Border Protection, under the direction of Randy Howe, Director of Field Operations, the Peel Regional Police Department, under the direction of Chief Jennifer Evans, the Canada Border Services Agency, under the direction of Rick Comerford, Regional Director General, Southern Ontario Region and the Toronto Police, under the direction of Chief William Blair.Buffalo Woman Sentenced on Drug ChargesRead the Press Release
BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Mary Moran, 51, of Buffalo, N.Y., who was convicted of conspiracy to possess with intent to distribute and to distribute fentanyl, was sentenced to one year in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Mary Catherine Baumgarten, who handled the case, stated that between September 2012 and May 2013, the defendant conspired with others to distribute fentanyl, a Schedule II controlled. Mary Moran sold her prescription fentanyl patches to Barbara Moran, who then sold those fentanyl patches and other controlled substances, from her residence at 93 Pulaski Street in Buffalo. Some of those sales were made to law enforcement officers acting in an undercover capacity.
Jordan Warunek, Barbara Moran, and Gregory Pendziwiatr have all been convicted of similar charges. Barbara Moran and Pendziwiatr are awaiting sentencing, and Warunek was sentenced to probation.
The sentencing is the culmination of an investigation on the part of the Drug Enforcement Administration, under the direction of Acting Special Agent in Charge James J. Hunt, New York Field Division, and the Cheektowaga Police Department, under the direction of Chief David Zach.Broken Arrow Man Sentenced to 15 Months, $6,700 Restitution for Gratuity Received by VA Public OfficialRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that JEFFREY REESE FISHER, age 37, of Broken Arrow, Oklahoma, was sentenced to 15 months imprisonment, followed by 1 year of supervised release for Gratuity Received by a Public Official, in violation of Title 18, United States Code, Sections 201(c)(1)(B) and 2. FISHER was also ordered to pay $6,774.00 in restitution.
The charges arose from an investigation by the United States Department of Veterans Affairs, Office of Inspector General.
The Information alleged that beginning in April 2009 and continuing through March 2010, the defendant, a public official as an employee of the Department of Veterans Affairs, otherwise than as provided by law for the proper discharge of official duties, directly and indirectly did demand, seek, receive, accept and agree to receive and accept something of value personally for and because of an official act performed and to be performed by such official, that is FISHER, as Chief of Prosthetics for the Veterans Affairs Hospital in Muskogee, Oklahoma, solicited Al’s Medical, Muskogee, Oklahoma, a medical supply company doing business with the Veterans Affairs Hospital in Muskogee, Oklahoma, to pay for construction and remodeling work on FISHER’s private residence.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, presided over the hearing.
Assistant United States Attorney Chris Wilson represented the United States.
Attorney General Holder Statement on the 225th Anniversary of the U.S. Marshals ServiceRead the Press Release
Attorney General Eric Holder released the following statement Wednesday on the 225th anniversary of the U.S. Marshals Service:
"Today, we recognize a legacy of achievement by America's oldest federal law enforcement agency, the United States Marshals Service. For 225 years, the Marshals Service has occupied a unique and valued position in our country's judicial system. This nation has relied upon U.S. Marshals and their deputies at pivotal moments in our history, and each time, the men and women of this great organization have risen to the challenge. On this anniversary, we remember their efforts in establishing order in the Wild West, in restoring a divided nation following the Civil War, in desegregating America's schools, and in enforcing civil rights legislation.
"These brave men and women continue their fight for justice today, remaining dedicated to their traditional missions of securing our courts, tracking and apprehending fugitives, detaining and transporting federal prisoners, protecting federal witnesses, and seizing criminal assets. The agency continues to evolve technologically and strategically to meet current law enforcement challenges, while still holding true to its core values of "justice, integrity and service." I thank these dedicated professionals for their sacrifice and commitment to justice."
Arrests Dismantle Clinton-based Drug Trafficking OrganizationRead the Press Release
LITTLE ROCK, AR – Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas; along with David Downing, Assistant Special Agent in Charge of the Drug Enforcement Administration (DEA); 20th Judicial Prosecuting Attorney Cody Hiland; and Van Buren County Sheriff Scott Bradley announced an investigation into a large-scale drug trafficking organization based in Clinton resulted in the early-morning arrests of multiple defendants on charges involving possession with intent to distribute methamphetamine, distribution of methamphetamine, and weapons possession. Ten of the defendants were already in state custody on separate charges.
“Today, a major drug trafficking organization in Van Buren County was dismantled,” stated Thyer. “This organization put the citizens and children of Clinton and the surrounding community at risk every day. Through the efforts of law enforcement at all levels, we have brought federal charges against these drug-dealing criminals to get them off and keep them off the streets for years to come.”
“Methamphetamine destroys the lives of its abusers and has far-reaching negative effects in the communities where it takes hold,” said DEA Assistant Special Agent in Charge David Downing. “By targeting local distribution networks in Arkansas, DEA and our federal, state and local law enforcement partners are working to reduce overall crime and improve the quality of life for area residents. The numerous arrests and seizures in this investigation are the result of our close cooperation and part of our on-going efforts to ensure that drug traffickers are held responsible for the harm they cause.”
Prosecutor Cody Hiland added, “today's arrests are the culmination of an 18 month criminal investigation that began with a local tire shop in Clinton. I think today's operation certainly highlights the value of our local drug task forces and the virtue of working with other state and federal law enforcement agencies in helping make our communities more safe. The operation today is historic in scope and size and its impact on the illegal drug trade in Van Buren County will continue to be felt in the years to come.”
The DEA and 20th Judicial Drug Task Force investigation began in January 2011. Multiple undercover operations and numerous other law enforcement actions, including multiple seizures of methamphetamine were used during the investigation. All told, the Task Force purchased and seized more than 6 pounds of methamphetamine from the Jeffery Weaver drug trafficking organization (DTO) through controlled purchases and search warrants. The DEA and Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) also seized a total of 52 firearms. In addition, the defendants charged in the indictment are responsible for distributing or possessing over 300 pounds of methamphetamine.
The indictment, unsealed this afternoon, was handed down by a Federal Grand Jury on September 11, 2014. The indictment charges 34 defendants in 45 separate counts. The counts include conspiracy to possess with intent to distribute more than 500 grams of methamphetamine, aiding and abetting the distribution of methamphetamine, felon in possession of firearms, possession of a firearm in furtherance of a drug trafficking offense, and the use of telephone to facilitate a drug trafficking crime.
If convicted of conspiracy to distribute more than 500 grams of methamphetamine each defendant will face a sentence of not less than 10 years to life imprisonment.
The investigation and prosecution of this case is a coordinated effort through the David G. Wilhelm OCDETF Strike Force and the High Intensity Drug Trafficking Areas (HIDTA) and was conducted by the DEA and the 20th Judicial Drug Task Force with assistance from several law enforcement agencies including the ATF, Arkansas State Police, Van Buren County Sheriff’s Office, Arkansas National Guard, Conway Police Department, and the United States Marshal Service. The case is being prosecuted by Assistant United States Attorneys Kristin Bryant and Stephanie Mazzanti.
An indictment contains only allegations. A defendant is presumed innocent unless and until proven guilty.
WEAVER DTO INDICTMENT
DEFENDANTS/CHARGES
Conspiracy to possess with intent to distribute more than 500 grams of methamphetamine:
- JEFFERY WEAVER;
- BRIAN MAHANEY;
- RICHARD BRIAN REYNOLDS;
- NATHAN LESTER RAMER;
- CHARLES NEIL WEAVER;
- MEGAN RILEY OXLEY;
- JAMES ZACHARY CALDWELL;
- ISAAC DE JESUS JAUREGUI-ESTRADA;
- ISAAC M JAUREGUI,
- MICHAEL ALLEN, aka Hippie;
- JENNIFER JAMES;
- JEREMY LEE PECK;
- JOHN B. BLACK;
- DAVID WAYNE HEASLET;
- KIM DAVIDSON;
- JEREMY DALE DUNIGAN;
- CYRUS ADRIAN DOWELL;
- MARNI LEIGH CHAGALA;
- JERALD GLENN BELL;
- AMBER SUE THARP;
- JAMES PERRY KNOTT, aka Uncle Jimmy
- JANEL DAWN HATCHETT
- SORRELL JOE HONEA, JR.,
- RICHARD JOE LEE,
- LOUIS MICHAEL TICHELI,
- CRYSTAL MICHELLE LANGRELL,
- FRED HAROLD WESSELL,
- JOSH DENHAM,
- THURMAN KIRKENDOLL,
- DENNIS PATRICK HENNEBERRY,
- DEREK CHARLES STILL,
- HIRO SASAKI, and
- DON ALLEN PEARSON
Felon in possession of a firearm:
- NATHAN LESTER RAMER
- JAMES ZACHARY CALDWELL
- DENNIS PATRICK HENNEBERRY
- MICHAEL ALLEN
Possession of a Firearm in Furtherance of a Drug Trafficking Offense:
- MICHAEL ALLEN
- JENNIFER JAMES
- ISAAC M. JAUREGUI
- ISAAC DE JESUS JAUREGUI-ESTRADA
- JAMES ZACHARY CALDWELL
Use of a communication facility:
- CRYSTAL MICHELLE LANGRELL
- CHARLES NEIL WEAVER
- SORRELL JOE HONEA, JR.
- JEFFERY WEAVER
STATUTORY SENTENCES
Conspiracy to possess with intent to distribute and to distribute more than 500 grams of methamphetamine is punishable by not less than 10 years, not more than life, incarceration in the Bureau of Prisons with a possible fine of up to $10,000,000, and not less than 5 years supervised release.
Conspiracy to possess with intent to distribute and to distribute more than 50 grams but less than 500 grams of methamphetamine is punishable by not less than 5 years, not more than 40 years’ incarceration in the Bureau of Prisons with a possible fine of up to $5,000,000, and not less than 4 years supervised release.
Possession of a firearm by a felon is punishable by not more than 20 years’ incarceration in the Bureau of Prisons with a possible fine of up to $250,000, and not more than 3 years supervised release.
Possession of a Firearm in Furtherance of a Drug Trafficking Offense is punishable by not less than 5 years to life incarceration in the Bureau of Prisons, consecutive to any sentence imposed, with a possible fine of up to $250,000, and not more than 5 years of supervised release.
Use of a communication facility to facilitate a drug trafficking crime is punishable by not more than 4 years’ incarceration in the Bureau of Prisons with a possible fine of up to $250,000, and not more than 1 year supervised release.
Armed Career Criminal from Albuquerque Pleads Guilty to Unlawful Possession of FirearmRead the Press Release
ALBUQUERQUE – Anthony Barela, 56, of Albuquerque, N.M., pleaded guilty today to being a felon in possession of a firearm and ammunition. Under the terms of his plea agreement, Barela will be sentenced to 15 years in federal prison due to his status as an armed career criminal.
Barela is being prosecuted as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
Barela was arrested in Nov. 2013, on a criminal complaint alleging that he unlawfully possessed a firearm and ammunition on Nov. 9, 2013, in Bernalillo County, N.M. According to the criminal complaint, officers of the Albuquerque Police Department apprehended Barela at a home in northwest Albuquerque when they responded to a call reporting a residential burglary. When the officers arrived at the residence and encountered Barela, he indicated that he had a pistol in his pocket which he admitted taking from the residence. At the time, Barela was prohibited from possessing firearms or ammunition because he previously had been convicted of armed bank robbery in the U.S. District Court for the District of New Mexico and armed robbery with a deadly weapon in the 2nd Judicial District Court for the State of New Mexico.
Barela was indicted for unlawfully possessing a firearm and ammunition on Dec. 4, 2013. During today’s proceedings, Barela admitted that he possessed a pistol and ammunition Nov. 9, 2013, and that he was prohibited from doing so because he was a convicted felon.
Barela has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled.
This case was investigated by the Albuquerque offices of the Drug Enforcement Administration and the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Albuquerque Police Department with assistance from the 2nd Judicial District Attorney’s Office. Assistant U.S. Attorney Jack Burkhead is prosecuting the case.
Ardmore Man Pleads Guilty to Bank Theft, Embezzlement and MisapplicationRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that RICHARD PAUL GEURIN, 48, of Ardmore, Oklahoma, pled guilty to Bank Theft, Embezzlement and Misapplication, in violation of Title 18, United States Code, Section 656.
The charge arose from an investigation by the Federal Bureau of Investigation. The defendant was indicted in August 2014.
The Indictment alleged that from on or about February 3, 2011, until on or about February 24, 2014, in the Eastern District of Oklahoma, defendant RICHARD PAUL GEURIN, being an officer, director, agent, or employee of, or connected in a capacity with, First Bank & Trust of Duncan, Oklahoma, a bank whose deposits are insured by the Federal Deposit Insurance Corporation, with intent to injure and defraud the said First Bank & Trust of Duncan, Oklahoma, willfully misapplied, embezzled, abstracted, and purloined more than $1,000.00 of the moneys, funds, assets or securities entrusted to the custody or care of First Bank & Trust of Duncan, Oklahoma, in that the defendant withdrew cash from the accounts of certain bank customers and misapplied, embezzled, abstracted and purloined the funds for his own use or benefit.
The Honorable Steven P. Shreder, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the guilty plea and ordered the completion of a presentence report.
The statutory range of punishment is up 30 years and $1,000,000.00 fine. The defendant will remain on bond pending sentencing.
Assistant United States Attorney Rob Wallace represented the United States.
Anchorage Counterfeiter Sentenced to 30 Months in JailRead the Press Release
Anchorage, Alaska – Acting U.S. Attorney Kevin R. Feldis announced today that an Anchorage man was sentenced in federal court in Anchorage for four counts of passing counterfeit money. The defendant manufactured and passed counterfeit money at local stores all over Anchorage.
Eugene David Downey was sentenced on September 23, 2014, by United States District Court Judge Sharon L. Gleason, to 30 months in prison.
According to Assistant U.S. Attorney Aunnie Steward, Downey was convicted on state charges of passing counterfeit money in May of 2013. Downey resumed manufacturing and passing counterfeit money, approximately 200 transactions, shortly after his conviction in state court until his arrest in this case in April 2014.
Downey passed the counterfeit money at local businesses including Sports Authority, Kohl’s AMH and REI, among others. Downey passed counterfeit bills at these and other stores and then returned the items to receive genuine currency. Downey’s scheme was finally brought to an end when an APD officer responded to a 911 call by an employee of REI who recognized Downey from prior attempts to pass counterfeit money. Upon contact by APD, Downey resisted arrest and assaulted the officer as he tried to escape. Backup officers arrived on scene and Downey continued to resist arrest until he was placed in a patrol vehicle. Downey had a wallet full of counterfeit bills at the time of his arrest.
Judge Gleason noted the detrimental impact to local businesses from Downey’s manufacturing and passing of counterfeit money as well as the assault on the officer as reasons for imposing the 30-month sentence.
First Assistant U.S. Attorney Kevin Feldis highlighted that “counterfeiting is a persistent problem throughout this country and throughout the world. We are not immune to that problem in Alaska, and small amounts of counterfeit bills are routinely found here. All businesses should be aware of how to spot counterfeit bills, and report the receipt of fake bills to the police or U.S. Secret Service. The conviction of Eugene Downey shows that knowingly passing counterfeit bills is a significant crime with serious penalties. While making counterfeit $5, $10 and $20 bills with a laser printer or photocopier, or passing fake bills under the guise that you did not know they were fake, may seem like tempting crimes, fake bills are not hard to spot and those involved with these crimes will be aggressively pursued.” Two additional criminal defendants are set to be sentenced on federal counterfeiting charges in early October.
Ms. Loeffler commends the Anchorage Police Department and the U.S. Secret Service for the investigation of this case.