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6 November 2014
Federal Charge Filed in Lenexa Bank RobberyRead the Press Release
KANSAS CITY, KAN. – Federal charges were filed Thursday in a Lenexa bank robbery, U.S. Attorney Barry Grissom said.
Donald Rucks, 42, was charged with one count of bank robbery. Rucks is accused of robbing the Arvest Bank in Lenexa on Nov. 4, 2014. Investigators alleged he entered the bank and was talking on a cell phone for several minutes before giving a teller a note saying, “BE QUIET, 100s, 50s and 20s PLEASE.” He put the money in the pocket of the white hoodie sweatshirt he was wearing and fled with the money.
After surveillance footage from the bank was made public, police received tips leading them to Rucks. He was arrested Nov. 5 in Olathe, Kan.
If convicted, he faces a maximum penalty of 20 years in federal prison and a fine up to $250,000. The Olathe Police Department and the FBI investigated. The U.S. Attorney’s Office is prosecuting.
Fairfield Man Who Possessed Assault Weapon on Unh Campus Pleads Guilty to Federal Firearm OffenseRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that WILLIAM DONG, 23, of Fairfield, pleaded guilty today in Hartford federal court to transporting an assault weapon into Connecticut in violation of federal law.
According to court documents and statements made in court, in September 2013, DONG traveled to Pennsylvania, purchased a Bushmaster model XM-15-E2S, .223 caliber semi-automatic rifle and transported the rifle back to Connecticut. This firearm is considered a prohibited assault weapon under Connecticut state law.
On December 3, 2013, West Haven Police arrested DONG in the vicinity of the University of New Haven after he was found in possession of two handguns on his person, and the Bushmaster rifle, which was seized from his nearby car. DONG told police that he had purchased the rifle from a seller in Pennsylvania in September 2013 through an advertisement placed on www.armslist.com.
Although it is not unlawful under federal law for an individual, who is not a prohibited person, to possess this Bushmaster firearm, it is a federal violation for an individual to purchase this firearm outside of Connecticut and travel into the state with it, since it is a prohibited firearm under Connecticut state law.
DONG has been detained since his arrest. He is scheduled to be sentenced by U.S. District Judge Robert N. Chatigny in Hartford on January 29, 2015, at which time he faces a maximum term of imprisonment of five years.
On October 17, 2014, DONG pleaded guilty in Milford Superior Court to state firearms offenses related to the December 2013 incident in West Haven.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, working together with the West Haven Police Department. The case is being prosecuted by Assistant U.S. Attorney Robert M. Spector.
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(203) 821-3722 [email protected]Essex Man Sentenced to 50 Years in Prison for Production of Child PornographyRead the Press Release
Baltimore, Maryland – U.S. District Judge William D. Quarles, Jr. sentenced Foster William Dove III, age 39, of Essex, Maryland, today to 50 years in prison, followed by lifetime supervised release for production of child pornography. Judge Quarles ordered that upon his release from prison, Dove must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Chief James W. Johnson of the Baltimore County Police Department; and Baltimore County State’s Attorney Scott Shellenberger.
According to court documents and statements made at today’s hearing, on August 18, 2013, Dove distributed a video depicting minors engaged in sexually explicit conduct to an undercover officer using a file sharing program. A search warrant was subsequently executed at Dove’s residence and law enforcement recovered images and videos documenting Dove’s sexual abuse of two minor boys. Investigation also revealed that Dove had secretly videotaped approximately 17 additional minor males engaging in sexually explicit conduct through a hidden camera in his bathroom. Dove has been detained since his arrest on September 16, 2013.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the FBI, HSI-Baltimore, Baltimore County Police Department and Baltimore County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Bonnie S. Greenberg, who prosecuted the case.
El Salvadorian National Pleads Guilty to Theft of Unemployment Insurance BenefitsRead the Press Release
BOSTON – A Chelsea man pleaded guilty yesterday to fraudulently accepting over $46,000 in unemployment insurance benefits.
Oscar P. Valles-Lopez, a/k/a Oscar Valle, 44, pleaded guilty to a one-count Information charging him with mail fraud. U.S. District Court Judge George A. O’Toole scheduled sentencing for Feb. 13, 2014. Valles-Lopez is an El Salvadorian national who illegally reentered the United States in July 2003 after previously living in this country from 1996 to 2001. After working for several years under fraudulently obtained immigration papers, he lost his job in 2009. Although Valles-Lopez knew he was not entitled to unemployment insurance benefits without a valid work permit, he paid $400 for a false permit and made three claims for benefits in 2009, 2010, and 2012. Over the course of several years, Valles-Lopez cashed 111 unemployment checks totaling $46,218.
Valles-Lopez entered into a plea agreement with the government in which the parties agreed to recommend a sentence of one year of probation with the special condition that the first four months be served under home confinement. The defendant also agreed to restitution in the full amount of the benefits obtained under this scheme. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.United States Attorney Carmen M. Ortiz; Cheryl Garcia, Special Agent in Charge of the U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, New York Regional Office; Bruce M. Foucart, Special Agent in Charge of Homeland Security Investigations in Boston; and Colonel Timothy P. Alben, Superintendent of the Massachusetts State Police, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Eugenia M. Carris of Ortiz’s Public Corruption Unit.
Douglas County Resident Sentenced to 84 Months in Prison for Felon in Possession of a FirearmRead the Press Release
COUNCIL BLUFFS, IA - On November 5, 2014, Barvarito Garcia Longoria, a 35 year-old resident of Omaha, Nebraska, was sentenced by United States District Court Judge John A. Jarvey to 84 months in prison to be followed by three years of supervised release for being a convicted felon in possession of a firearm, announced United States Attorney Nicholas A. Klinefeldt.
On April 3, 2014, Garcia Longoria pled guilty to the charge of being a felon in possession of a firearm. Pottawattamie County law enforcement investigated a domestic incident, and found Garcia Longoria in possession of a defaced 9mm handgun. Garcia Longoria was prohibited from possessing a firearm after he pled guilty in 2006 to third degree assault on an officer.
The investigation was conducted by the Pottawattamie County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
(Download Press Release)
Dominican Republic Native Charged with Impersonating AnotherRead the Press Release
PHILADELPHIA - Jonathan Melendez, a/k/a “Malvin Vasquez-Valerio,” a/k/a “JELM,” 30, a native of the Dominican Republic, was charged in a five-count indictment with three counts of false personation of citizenship, aggravated identity theft and misuse of another person’s Social Security number, announced United States Attorney Zane David Memeger. According to the indictment, between December 26, 2012 and October 17, 2013, during the course of a drug case involving heroin distribution, Melendez, a citizen of the Dominican Republic, falsely claimed to be a United States citizen.
It is further alleged that Melendez falsely represented that a certain Social Security account number was assigned to him, when, in fact, such Social Security account number was not the number assigned to him. Melendez is further charged with having possessed and used a means of identification of another person, specifically the Social Security number and the birth certificate of “JELM,” in connection with the false personation of United States citizenship. Melendez was convicted in the heroin distribution case and sentenced to 36 months in prison.
If convicted of these charges, Melendez faces a maximum penalty of 16 years in prison, including a mandatory minimum term of two years for aggravated identity theft, three years of supervised release, a fine of $1.25 million and a special assessment of $500.
The case was investigated by the FBI’s Violent Gang Task Force, U.S. Immigration and Custom Enforcement’s Enforcement and Removal Division, and the Philadelphia Police Department. It is being prosecuted by Assistant United States Attorney Joseph T. Labrum, III.
An Indictment or Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
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UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Des Moines Pharmacist Pleads Guilty to Drug Diversion and Tax EvasionRead the Press Release
DES MOINES, IA – On November 6, 2014, Mark Graziano, principal owner of Bauder Pharmacy, and A. Michael Enloe, pled guilty to the charge of conspiracy to distribute a controlled substance, announced United States Attorney Nick Klinefeldt. Graziano also pled guilty to tax evasion.
“In addition to cheating on his taxes, Graziano has now admitted that he illegally sold hydrocodone pills out of Bauder Pharmacy” stated Nick Klinefeldt. “This occurred over five years, and involved hundreds of thousands of pills. Prescription drug abuse is a serious problem in this state and across the country. It wreaks havoc on the lives of all those involved. It has also been demonstrated to lead to the addiction of even more dangerous drugs, such as heroin. Though Graziano is a pharmacist, this activity had nothing to do with legitimate pharmacy practice. Graziano was a drug dealer: plain and simple.”
Sentencing is scheduled for February 6, 2015. If the Court accepts the terms of the plea agreement, Graziano faces a period of imprisonment between 24 and 37 months, and Enloe will be placed on probation for a period of one to five years. Graziano has also agreed to forfeit the property listed in the Notice of Forfeiture in the Second Superseding Indictment, and the parties have agreed that the property may be sold and the proceeds applied to restitution.
This case was investigated by the Drug Enforcement Administration and Internal Revenue Service Criminal Investigation. Prosecution of this matter is being handled by the U.S. Attorney’s Office for the Southern District of Iowa.
(Download Press Release)
Defendant Convicted in Identity Theft Tax Fraud Scheme Involving Medical Patients’ Personal Identifying InformationRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Paula Reid, Special Agent in Charge, United States Secret Service (USSS), Miami Field Office, announce that defendant Kenol Augustin, 36, of Miami, was convicted by a federal jury of one count of conspiracy to commit access device fraud, in violation of Title 18, United States Code, Section 1029(b). Sentencing is scheduled for January 15, 2015. At sentencing, Augustin faces up to five years in prison.
According to court documents and evidence presented at trial, in January 2012, an individual recruited into the scheme searched their employer’s database and accessed the names and Social Security numbers (personal identity information or PII) of individual medical patients. This employee then provided a list of individuals’ PII in exchange for a cash payment made by defendant Augustin. Augustin and his co-conspirators then caused false and fraudulent tax returns seeking refunds to be filed with the Internal Revenue Service using the PII that the conspirators had so obtained.
Defendant Barnard (13-20684-CR-COOKE), who was also involved in this conspiracy, was sentenced on July 23, 2014 to 36 months in prison, to be followed by two years of supervised release, and was ordered to pay restitution of $57,000. Barnard pled guilty to one count of possession of 15 or more unauthorized access devices, in violation of Title 18, United States Code, Sections 1029(a)(3) and 2, and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1).
Mr. Ferrer commended the investigative efforts of IRS-CI and the USSS. These cases are being prosecuted by Assistant U.S. Attorneys James V. Hayes and Gera Peoples.
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.
Civil Complaint Filed Against Islip Terrace Doctor for Issuing Prescriptions Without Legitimate Medical NeedRead the Press Release
Loretta E. Lynch, United States Attorney for the Eastern District of New York, and James J. Hunt, Drug Enforcement Administration Special Agent in Charge (DEA New York), today announced the filing of a civil action by the United States against Lawrence Womack, age 48, an Islip Terrace, New York, based physician.
In the civil action, the United States alleges that between January 2011 and June 2013, the defendant wrote 241 prescriptions for Schedule II controlled substances, specifically for oxycodone, methadaone and fentanyl, in the absence of any legitimate medical need. The complaint alleges that in writing these prescriptions the defendant disregarded patients’ toxicology screens that indicated potentially lethal drug interactions. In addition, the complaint alleges that the defendant conducted periodic breast examinations in exchange for continued prescriptions and/or increased amounts of opioids, including oxycodone.
Oxycodone is a scheduled controlled substance that may be dispensed by medical professionals only for a legitimate medical purpose in the usual course of a doctor’s professional practice. It is a powerful and highly addictive drug and is increasingly abused because of its potency when crushed into a powder and ingested, leading to a heroin like euphoria.
“Medical professionals who hand out prescriptions for narcotics in the absence of any legitimate medical need place the lives of their patients at risk and contribute to the scourge of prescription drug abuse in our communities. Doctors who violate their oaths in this manner will be held accountable to the fullest extent of the law,” stated United States Attorney Lynch. “I want to thank our partners at the Department of Health and Human Services, Office of the Inspector General, for their outstanding investigative efforts in this case.”
“By no means was Dr. Womack upholding his oath to do no harm when he continued to prescribe oxycodone pills to patients after being alerted of their failed drug tests,” stated DEA Acting Special Agent in Charge Hunt. “Ignoring the warning signs, Dr. Womack’s alleged actions supported the ultimate distribution of diverted oxycodone throughout Long Island communities enabling opioid addiction.”
In January 2012, this Office and the DEA’s Long Island Tactical Diversion Squad comprising agents and officers of the DEA, Nassau County Police Department, Rockville Centre Police Department and Port Washington Police Department, in conjunction with the five District Attorneys in this jurisdiction, the Nassau and Suffolk County Police Departments, the New York City Police Department, and New York State Police, along with other key federal, state, and local government partners, launched the Prescription Drug Initiative to mount a comprehensive response to what the United States Department of Health and Human Services’ Center for Disease Control and Prevention has called an epidemic increase in the abuse of so-called opioid analgesics. So far, the Prescription Drug Initiative has brought over 160 federal and local criminal prosecutions, including the prosecution of 15 health care professionals, taken civil enforcement actions against a hospital, a pharmacy, and a pharmacy chain, removed prescription authority from numerous rogue doctors, and expanded information-sharing among enforcement agencies to better target and pursue drug traffickers. The Initiative also is involved in an extensive community outreach program to address the abuse of pharmaceuticals.
The United States’ case is being handled by Assistant United States Attorney Diane C. Leonardo.
Chicago Man Indicted on Federal Charges for Allegedly Illegally Selling and Possessing FirearmsRead the Press Release
CHICAGO ― A Chicago man was indicted on federal firearms charges alleging that he illegally sold firearms and illegally possessed nearly two dozen firearms, including assault rifles, handguns, and shotguns earlier this year. All of the firearms were seized by ATF agents following alleged purchases by an undercover confidential source, federal law enforcement officials announced today.
The defendant, JIMMY WRIGHT, also known as “Lil Man,” 28, of Chicago, was charged with one count of selling firearms without a federal firearms dealer license and eight counts of being a convicted felon-in-possession of 22 firearms in a nine-count indictment returned yesterday by a federal grand jury.
Wright has remained in federal custody since he was arrested on Oct. 7 and charged in a criminal complaint. He will be arraigned on a date to be determined in U.S. District Court in Chicago.
According to the charges, between July 21 and Sept. 22, 2014, Wright illegally sold firearms without a federal license. According to the complaint affidavit, the confidential source purchased at least 12 firearms from Wright on six different dates between July 22 and Sept. 2. These firearms included two assault rifles, seven handguns, two shotguns, and a “Tec 9” semi-automatic handgun with an obliterated serial number and an extended magazine.
The eight felon-in-possession counts allege that Wright illegally possessed a total of 22 firearms on eight different dates between July 22 and Sept. 22 of this year.
The indictment was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Carl Vasilko, Special Agent-in-Charge of the Chicago Office of the Bureau of Alcohol, Tobacco, Firearms, and Explosives; and Garry McCarthy, Superintendent of the Chicago Police Department.
Each count of being a felon-in-possession of firearms carries a maximum sentence of 10 years in prison, and selling firearms with a federal license carries a maximum sentence of five years in prison, and all nine counts carry a maximum fine of $250,000. If convicted, the court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The government is being represented by Assistant U.S. Attorney Timothy Storino.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Indictment
Canadensis Chiropractor Sentenced to Prison on Tax and Fraud ChargesRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Canadensis chiropractor was sentenced today, in federal court in Scranton, by United States District Judge Robert Mariani, to serve 15 months in prison on charges of aiding the preparation and filing of a false federal income tax return and false statements relating to healthcare matters.
According to United States Attorney Peter Smith, Dr. Maria Giacalone-Hewson, age 43, a resident of Canadensis who operated Canadensis Healthcare, Inc., pleaded guilty to the tax and fraud charges in September of 2013.
A criminal Information was filed against Giacalone-Hewson on July 15, 2013. The charges against her arose from the filing of a 2006 federal income tax return that falsely claimed her taxable income was $89,754, when, in fact, she had taxable income of $1,151,928, and owed at least $363,566 in taxes for that year. Giacalone-Hewson was also held accountable at sentencing for taxes of $113,821 that she owed for tax years 2007 through 2010.
The criminal Information to which Giacalone-Hewson pleaded guilty also charged her with making false statements relating to healthcare matters. At the time of her guilty plea, Dr. Giacalone-Hewson admitted that she made false statements in connection with payment for health care benefits by submitting false written statements claiming that chiropractic and other services were provided to certain patients when no such services were in fact provided.
In addition to the prison term, Judge Mariani ordered that Giacalone-Hewson be supervised by a probation officer for three years following her release from prison.
The investigation was conducted by the Internal Revenue Service Criminal Investigation, the United States Secret Service and the Northeastern Pennsylvania Insurance Fraud Task Force. The case was prosecuted by Assistant United States Attorney William S. Houser.
Commissioner of Mississippi Department of Corrections and Local Businessman Indicted by Federal Grand JuryRead the Press Release
Jackson, Miss – Christopher B. Epps, former Commissioner for the Mississippi Department of Corrections, and Cecil McCrory, a former Mississippi legislator, former Justice Court Judge, former Chairman of the Rankin County School Board, and a local businessman, were arraigned today before U.S. Magistrate Judge F. Keith Ball on a 49-count indictment returned by a federal grand jury, announced Acting U.S. Attorney Harold Brittain, FBI Special Agent in Charge Donald Alway, IRS-Criminal Investigation Special Agent in Charge Gabriel L. Grchan, U.S. Postal Inspector in Charge Robert Wemyss, and Mississippi State Auditor Stacey Pickering.
CRIMINAL CHARGES IN THE INDICTMENT:
Epps and McCrory were charged in the indictment with:
COUNTS
CHARGE
PRISON
FINE
SUPERVISED RELEASE
1
Honest Services
Wire Fraud Conspiracy
18 U.S.C. § 1349
20 years
$250,000
3 years
2-13
(Epps only)
Bribery
18 U.S.C. § 666(a)(1)(B)
10 years
$250,000
3 years
14-22
(McCrory only)
Bribery
18 U.S.C. § 666(a)(2)
10 years
$250,000
3 years
23
Money Laundering Conspiracy
18 U.S.C. § 1956(h)
20 years
greater of twice the value of property involved or $500,000
3 years
24-27
Honest Services
Wire Fraud
18 U.S.C. §§ 1343, 1346
20 years
$250,000
3 years
Epps was also individually charged in the indictment with:
COUNTS
CHARGE
PRISON
FINE
SUPERVISED RELEASE
28-41
Illegal Structuring of
Financial Transactions
31 U.S.C. § 5324(a)(3)
5 years
$250,000
3 years
42-43
Money Laundering
18 U.S.C. § 1956(a)(1)(B)(i)
20 years
greater of twice the value of property involved or $500,000
3 years
44-49
Filing False Tax Returns
26 U.S.C. § 7206(2)
3 years
$100,000
1 year
FACTS OF THE CASE:
According to the indictment, from 2007 through March 2014, McCrory gave Epps bribes and kickbacks in exchange for Epps awarding or directing the award of MDOC contracts, leases, or work to McCrory’s companies or to companies employing McCrory as a consultant. McCrory secretly paid Epps either in cash, through checks paying off Epps’s home mortgage, through wire transfers paying the loan on Epps’s beach condominium, or through wire transfers to investment accounts owned by Epps. Epps illegally structured the deposits of cash received from McCrory into Epps’s various bank accounts, or used such cash to purchase cashier’s checks, all in amounts less than $10,000. This structuring alone reached almost $1 million from January 2008 through June 2014. Epps further concealed these crimes by filing false tax returns from 2008 through 2013, whereby he failed to report such income on his tax returns.
In addition, the government has placed a lien on and is seeking to forfeit Epps’s home in Flowood, Mississippi, and his condominium in Pass Christian, Mississippi. The government also seized Epps’s 2010 Mercedes Benz S550 and 2007 Mercedes Benz S65 V12 AMG, as well as almost $1 million in cash from various bank and investment accounts controlled by Epps.
Harold Brittain, the Acting U.S. Attorney in this case, stated:
"The abuse of power and position by public officials has plagued our state for many years. Our tolerance for public corruption is zero. We will hold accountable under the law everyone who bears the responsibility of public service and sells the trust that has been bestowed upon them. We will not tolerate such fraud and abuses by public officials that have cost our citizens so dearly."
"By statute, the FBI is charged with the investigation of public officials alleged to abuse their positions for private gain," stated Donald Alway, Special Agent in Charge of the FBI in Mississippi. "This remains a top priority. Mississippi has the right to expect honest, unbiased service and representation from its elected and/or appointed officials at all levels of government. The FBI will continue to work in cooperation with its federal, state, and local partners to identify, investigate, and prosecute those who would violate the public’s trust."
IRS Criminal Investigation Special Agent in Charge Gabriel L. Grchan said: "Quite often crimes of greed include more than concealing income from the IRS. This case is a prime example of how Special Agents of IRS Criminal Investigation work with the FBI, the United States Attorney's Office and local law enforcement to bring individuals who have violated the
public’s trust to justice. We will continue to work tirelessly with our partners to stop those individuals who scheme and conspire with each other to benefit themselves to the detriment of other citizens and their government. This case should send a strong message to the citizens of Mississippi, and those engaged in public corruption, that there is no place to hide and justice will ultimately be served. "
"Postal Inspectors have a long history of relentlessly pursuing those who use the mail in schemes to defraud the public, and public corruption cases like this are particularly troubling," said U.S. Postal Inspector in Charge Robert Wemyss. "We are grateful to have been able to lend our unique expertise to investigate the fraud and to track down assets the defendants allegedly attempted to steal from the American people."
The Mississippi Office of the State Auditor assisted with the investigation. Commenting on the indictments, State Auditor Stacey Pickering said, "It is a very sad day in Mississippi when two men with a history of public service are charged with blatantly committing crimes to increase their personal fortunes. They are accused of deliberately violating public trust while serving in positions of leadership. This case is a textbook example of state, local and federal officials working together to protect taxpayer money."
In announcing the indictment, Acting U.S. Attorney Harold Brittain, FBI Special Agent in Charge Donald Alway, IRS-Criminal Investigation Special Agent in Charge Gabriel L. Grchan, U.S. Postal Inspector in Charge Robert Wemyss, and Mississippi State Auditor Stacey Pickering praised the efforts of special agents with the FBI, IRS-Criminal Investigations, U.S. Postal Inspection Service, and the Mississippi State Auditor’s Office, as well as the Leake County Sheriff’s Office.
Assistant U.S. Attorneys Mike Hurst, Darren LaMarca, and Scott Gilbert, as well as financial analyst Kim Mitchell, are prosecuting the case.
Criminal indictments are only charges and not evidence of guilt. A defendant is presumed to be innocent until and unless proven guilty.
Buffalo Man Sentenced for Committing Four Bank RobberiesRead the Press Release
BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Earl Moss, 29, of Buffalo, NY, who was convicted of bank robbery and brandishing a firearm in connection with a crime of violence, was sentenced to 171 months in prison by Chief U.S. District Court Judge William M. Skretny. The defendant was also ordered to pay restitution totaling $48,636.00
According to Assistant U.S. Attorneys John E. Rogowski and Edward H. White, who handled the case, the defendant robbed four banks in Buffalo and Amherst in 2010 and 2011 including:
o The April 20, 2010, robbery of the Citizens Bank at 3180 Sheridan Drive in Amherst, during which the defendant, wearing women’s clothing, passed the teller a note demanding money. After the teller turned over an amount of money to Moss and shortly after he left the bank, the dye pack in the bank money exploded. The defendant abandoned the money which was recovered by a nearby citizen who took the money back to the bank;
o The April 30, 2010, robbery of the Citizens Bank at 1893 Elmwood Avenue in Buffalo, during which the defendant, again wearing women’s clothing, passed the teller a note reading “no dye packs or I’ll kill you.” The defendant fled the scene after receiving an amount of money;
o The December 24, 2010, armed robbery of the Citizens Bank at 3180 Sheridan Drive in Amherst, during which the defendant, wearing a hooded sweat shirt and sun glasses, waived a silver hand gun and demanded money from the bank tellers. Moss received money from several tellers and ran from the bank. A customer in the bank took pursuit after the defendant and fired four shots from a pistol he had a permit to carry. None of the shots struck Moss and the defendant escaped with the money; and
o The April 18, 2011, armed robbery of the Citizens Bank at 1893 Elmwood Avenue in Buffalo, during which the defendant, again wearing a hooded sweat shirt and sun glasses, waived a silver hand gun and demanded money from the bank tellers. Moss received money from several tellers and ran from the bank.
Moss moved to the Atlanta, Georgia, area after the first two robberies. In early December, 2010, following an armed robbery of a bank in Atlanta, the Federal Bureau of Investigation received information that Moss may be responsible for that robbery as well as the Buffalo area robberies. As a result, the FBI gathered sufficient evidence which resulted in Moss’s arrest two days after the last robbery. The defendant has been incarcerated since his arrest.
The sentencing is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, the Amherst Police Department, under the direction of Chief John C. Askey, and the Buffalo Police Department, under the direction of Commissioner Daniel Derenda.Buffalo Man Sentenced for Bank RobberyRead the Press Release
BUFFALO, N.Y.BU.S. Attorney William J. Hochul announced today that Demetrien Bell Bradley, 20, of Buffalo, NY, who was convicted of bank robbery, was sentenced to 24 months in prison by Chief U.S. District Judge William M. Skretny. The defendant was also ordered to pay $1,540 in restitution.
According to Assistant U.S. Attorney Mary Catherine Baumgarten, who handled the case, on November 6, 2013, Bradley entered the Key Bank at 306 West Ferry Street in Buffalo. The defendant passed the teller a note demanding money and threatening that he had a gun.
The sentencing is the culmination of an investigation by the Federal Bureau of Investigation Safe Streets Task Force.Biotronik Inc. to Pay $4.9 Million to Resolve Claims that Company Paid Kickbacks to PhysiciansRead the Press Release
Biotronik Inc. of Lake Oswego, Oregon, has agreed to pay the United States $4.9 million to resolve allegations made under the False Claims Act that the company made various improper payments to induce physicians to use devices that it manufactured and sold, the Justice Department announced today.
“When medical device manufacturers make improper payments to physicians, they encourage medical decision-making based on financial gain rather than the best interests of patients,” said Acting Assistant Attorney General Joyce R. Branda for the Justice Department’s Civil Division. “Today’s resolution demonstrates the Department of Justice’s continuing commitment to ensuring that beneficiaries of federal health care programs receive appropriate medical care.”
The settlement resolves allegations that Biotronik, through the payment of kickbacks to physicians, caused hospitals and ambulatory surgery centers to submit false claims to Medicare and Medicaid for the implantation of Biotronik pacemakers, defibrillators and cardiac resynchronization therapy devices. Biotronik allegedly induced electrophysiologists and cardiologists practicing in Nevada and Arizona to continue using Biotronik devices, or to convert to Biotronik devices, by paying the implanting physician in the form of repeated meals at expensive restaurants and inflated payments for membership on a physician advisory board.
“Today’s resolution of claims underscores one of the key purposes of the Anti-Kickback law – to ensure that the judgment exercised by health care providers in treating Medicare and Medicaid patients is not influenced by illegal payments,” said U.S. Attorney Benjamin Wagner for the Eastern District of California.
The settlement announced today stems from a whistleblower complaint filed by a former Biotronik employee, Brian Sant, pursuant to the qui tam provisions of the False Claims Act, which permit private persons to bring a lawsuit on behalf of the United States and to share in the proceeds of the suit. The act permits the United States to intervene and take over the lawsuit, as it did in this case as to some of Sant’s allegations. Sant will receive approximately $840,000 of the federal settlement.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $23 billion through False Claims Act cases, with more than $14.8 billion of that amount recovered in cases involving fraud against federal health care programs.
The settlement with Biotronik Inc. was the result of a coordinated effort among the Civil Division, the U.S. Attorney’s Office for the Eastern District of California, the U.S. Department of Health and Human Services-Office of Inspector General and the FBI.
The lawsuit is captioned United States ex rel. Sant v. Biotronik, Inc., No. 2:09-CV-03617 KJM EFB (E.D. Cal.). The claims settled by this agreement are allegations only, and there has been no determination of liability.
Biotronik Inc. to Pay $4.9 Million to Resolve Claims That Company Paid Kickbacks to PhysiciansRead the Press Release
SACRAMENTO, Calif. – Biotronik Inc. of Lake Oswego, Oregon, has agreed to pay the United States $4.9 million to resolve allegations under the False Claims Act that the company made various improper payments to induce physicians to use devices manufactured and sold by Biotronik, United States Attorney Benjamin B. Wagner and the Justice Department announced today.
“When medical device manufacturers make improper payments to physicians, they encourage medical decision-making based on financial gain rather than the best interests of patients,” said Acting Assistant Attorney General Joyce R. Branda for the Justice Department’s Civil Division. “Today’s resolution demonstrates the Department of Justice’s continuing commitment to ensuring that beneficiaries of federal health care programs receive appropriate medical care.”
The settlement resolves allegations that Biotronik, through the payment of kickbacks to physicians, caused hospitals and ambulatory surgery centers to submit false claims to Medicare and Medicaid for the implantation of Biotronik pacemakers, defibrillators, and cardiac resynchronization therapy devices. Biotronik allegedly induced electrophysiologists and cardiologists practicing in Nevada and Arizona to continue using Biotronik devices, or to convert to Biotronik devices, by paying the implanting physician in the form of repeated meals at expensive restaurants and inflated payments for membership on a physician advisory board.
“Today’s resolution of claims underscores one of the key purposes of the Anti-Kickback law – to ensure that the judgment exercised by health care providers in treating Medicare and Medicaid patients is not influenced by illegal payments,” said, U.S. Attorney Wagner.
The settlement announced today stems from a whistleblower complaint filed by a former Biotronik employee, Brian Sant, pursuant to the qui tam provisions of the False Claims Act, which permit private persons to bring a lawsuit on behalf of the United States and to share in the proceeds of the suit. The act permits the United States to intervene and take over the lawsuit, as it did in this case as to some of Sant’s allegations. Sant will receive approximately $840,000 of the federal settlement.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $23 billion through False Claims Act cases, with more than $14.8 billion of that amount recovered in cases involving fraud against federal health care programs.
The settlement with Biotronik Inc. was the result of a coordinated effort among the Department of Justice’s Civil Division, the U.S. Attorney’s Office for the Eastern District of California; the U.S. Department of Health and Human Services, Office of Inspector General, and the FBI.
The claims settled by this agreement are allegations only, and there has been no determination of liability.
Arrest Made in Ventura for $5 Million Movie Studio Construction Scam in Northern CaliforniaRead the Press Release
SACRAMENTO, Calif. — A 32-count indictment was unsealed today after the arrest of Carissa Carpenter, 51, formerly of Malibu, charging her with mail fraud, wire fraud, and three counts of making a false statement to a government agent, United States Attorney Benjamin B. Wagner announced.
According to court documents, from 1997 until October 24, 2014, Carpenter represented to investors and others that she had a project to build a movie studio in Northern California. As a result of the scheme, investors, firms who did work for Carpenter and municipalities collectively lost over $5 million on the project.
According to the indictment, Carpenter claimed that her projected movie studio complex would be profitable and environmentally friendly and was supported by well‑connected people in the entertainment industry. She said that she had invested hundreds of millions of dollars of her own money in the project and that she had arranged financing for the project but needed investment or bridge loans until the alleged financing was complete. The locations of the project varied: El Dorado Hills, north of the Sacramento International Airport in Sutter County, Lathrop, the former naval base on Mare Island in Vallejo, and Dixon, among other places. Additionally, Carpenter represented that reputable architecture, construction, design, and public relations firms were involved in the project, and that she had or was in the process of finalizing the purchase of the land where the studio would be built. As a result, investors gave Carpenter millions of dollars to invest in her studio project.
The indictment alleges that in fact, Carpenter used investor money to fund her personal expenses and extravagant lifestyle. Contrary to her claims, the Hollywood people were not involved in the project at all or had little involvement. Similarly, the architecture, construction, design, and public relations firms were not involved or had done only preliminary work on the project. She also did not own or purchase property for the studio.
Further, during the investigation in July 2013, Carpenter told an FBI agent that she told investors that she was going to use their money for personal expenses, that she had used 50-75 percent of investor money for the project, and that two well-known Hollywood producers had committed to her Lathrop project and that she had spoken to one of them. All of these statements were false.
This case is the product of an investigation by the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigation. Assistant United States Attorney Todd A. Pickles is prosecuting the case.
If convicted, Carpenter faces a maximum statutory penalty of 20 years in prison and a fine of $250,000 or twice the gross loss or gain from the fraud scheme. 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. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Ambulance Company, Owners, and Manager Plead Guilty to Health Care Fraud and Kickback SchemeRead the Press Release
PHILADELPHIA – Life Support Corporation, formerly located in Feasterville-Trevose, PA, pleaded guilty today to one count of conspiracy to commit health care fraud. In separate hearings, the company owners, Nazariy Kmet, 35, of Jamison, PA, and Bogdan Kmet, 30, Warminster, PA and a company manager, Rostislav Kmet, 26, of Philadelphia, PA, also pleaded guilty to conspiracy to commit health care fraud and to violating the federal anti-kickback statute. Sentencing hearings are scheduled for all parties on February 11, 2015.
Defendant Life Support and its owners and a manager operated an ambulance company that transported patients who were able to walk and could travel safely by means other than ambulance and who therefore were not eligible for ambulance transportation under Medicare requirements. The defendants or others acting on their behalf falsified reports to make it appear that the patients needed to be transported by ambulance when the defendants and their employees knew that the patients could be transported safely by other means and that many of them were able to walk. Some patients were transported in personal vehicles rather than ambulances and those trips were billed to Medicare as if ambulance services had been provided. The defendants were also involved in paying kickbacks to patients so that the patients would continue to be transported by Life Support ambulances rather than switching to another fraudulent ambulance company. The defendants billed for the ambulance services as if those services were medically necessary and, as a result of the fraudulent scheme, the Medicare program paid more than $1.9 million for this inappropriate method of transportation.
Nazariy Kmet, Bogdan Kmet, and Rostislav Kmet each face substantial terms of imprisonment, three years of supervised release, a fine in excess of $3.8 million, mandatory restitution estimated at over $1.9 million, forfeiture of assets, and a special assessment. Life Support Corporation will also have restitution and forfeiture obligations. All defendants could be excluded from participating in federal health care programs.
The case was investigated by the U.S. Department of Health and Human Services Office of the Inspector General and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Matthew J.D. Hogan.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525
5 November 2014
Winner Woman Sentenced for Possession with Intent to Distribute A Controlled SubstanceRead the Press Release
United States Attorney Brendan V. Johnson announced that a Winner, South Dakota, woman convicted of Possession with Intent to Distribute a Controlled Substance was sentenced on October 27, 2014, by U.S. District Judge Roberto A. Lange.
Alice Blacksmith, age 49, was sentenced to 18 months in custody; 3 years of supervised release; forfeiture of currency, a firearm, and ammunition; and a $100 special assessment to the Federal Crime Victims Fund.
Blacksmith was indicted for two counts of Distribution of a Controlled Substance and one count of Possession with Intent to Distribute a Controlled Substance by a federal grand jury on April 15, 2014. She pled guilty to one count of Possession with Intent to Distribute a Controlled Substance on July 31, 2014.
The conviction arose from an incident on March 20, 2014, at Winner when Blacksmith knowingly and intentionally possessed with intent to distribute methamphetamine, a Schedule II controlled substance.
This case was investigated by the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Jay Miller prosecuted the case.
Blacksmith was immediately turned over to the custody of the U.S. Marshals Service to begin serving her sentence.
Wilmington Man Sentenced for Making Unregistered Destructive DevicesRead the Press Release
WILMINGTON – United States Attorney Thomas G. Walker announced that today in federal court, Senior United States District Judge James C. Fox sentenced ERIK RUDOLPH ARNEBOLD, 38, of Wilmington, to 64 months imprisonment followed by 3 years of supervised release. On August 4, 2014, ARNEBOLD pled guilty to one count of making 24 unregistered destructive devices (bombs) in violation of Title 26, United States Code, Sections 5861(f) and 5871.
ARNEBOLD was named in an Indictment filed on June 4, 2014. On October 29, 2013, members of the Wilmington Police Department (WPD) and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) executed a search warrant at ARNEBOLD’s residence in Wilmington based on information of possible bomb-making at the residence.
On October 30, 2013, law enforcement officials conducted a search of ARNEBOLD’S residence, resulting in the seizure of 24 improvised explosive devices (IEDs), bomb-making materials, two firearms including a Mak-90 assault rifle, ammunition, brass knuckles, and two ballistic vests.
Investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms, & Explosives and the Wilmington Police Department. Assistant United States Attorney Eric D. Goulian prosecuted the case.
West Plains Man Sentenced for Meth, FirearmsRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a West Plains, Mo., man was sentenced in federal court today for manufacturing methamphetamine and illegally possessing several firearms.
Russell Scott Adams, 33, of West Plains, was sentenced by U.S. District Judge M. Douglas Harpool to 12 years and eight months in federal prison without parole.
On July 10, 2014, Adams pleaded guilty to manufacturing methamphetamine, possessing a firearm in furtherance of a drug-trafficking crime and two counts of being a felon in possession of firearms.
Law enforcement officers executed a search warrant at Adams’s residence on Aug. 23, 2010. During the execution of the warrant, Adams was home with his infant son. Officers found items used in the manufacture of methamphetamine, including Pyrex dishes, glass jars filled with bi-phase liquid that contained methamphetamine, empty bottles of lye and coffee filters containing pill waste. Officers also found a loaded Savage .22-caliber semi-automatic rifle, with no serial number, under the bed in the main bedroom.
Officers discovered a functioning methamphetamine lab in a second trailer, which contained glass jars, bottles containing acid, PH strips, a respirator mask, bottles of lye, liquid ammonia, hydrogen peroxide, sulfuric acid, tubing, a Coleman burner, numerous coffee filters containing lab by-product, bottles filled with bi-phase liquid and a surveillance camera. Also found in the second trailer was a Kimel Kamper .20-gauge shotgun and ammunition.
On Dec. 18, 2012, deputies with the Howell County, Mo., Sheriff’s Department received information that Adams was traveling in grey vehicle in Howell County. At the time, Adams had several felony warrants for his arrest. The deputies observed the vehicle and attempted to stop it. After a brief pursuit, the vehicle stopped in front of a residence and Adams got out of the vehicle and began running across the yard toward the house. Officers took Adams into custody. Inside Adams’s boot, officers discovered two rounds of .38-caliber ammunition and one round of .45-caliber, ammunition. On the front seat of the vehicle, they found a Taurus .45-caliber semi-auto pistol that had been reported stolen a few months earlier.
Adams admitted that he was also in possession of a loaded Smith and Wesson .38-caliber revolver on June 21, 2012.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Adams has a prior felony conviction for distribution of a controlled substance.
This case was prosecuted by Assistant U.S. Attorney Randall D. Eggert. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Howell County, Mo., Sheriff’s Department, the West Plains, Mo., Police Department, the South Central Drug Task Force and the Missouri State Highway Patrol.Washington Political Consultant Pleads Guilty in Fraud and Corruption SchemeRead the Press Release
Political consultant Thomas Lindenfeld, 59, of Washington, D.C., pleaded guilty today in the Eastern District of Pennsylvania to conspiracy to commit wire fraud for his role in a fraud and corruption scheme related to illegal campaign contributions.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Zane David Memeger of the Eastern District of Pennsylvania, Special Agent in Charge Edward J. Hanko of the FBI’s Philadelphia Field Office and Acting Special Agent in Charge Richard Gross of the Internal Revenue Service – Criminal Investigation (IRS-CI) made the announcement.
According to admissions in his plea agreement, Lindenfeld agreed to route an illegal $1 million political contribution for “Elected Official A” during a 2007 campaign for elected office. The contribution was in the form of a loan routed through Lindenfeld’s political consulting firm, LSG Strategic Services Corporation (LSG). When the campaign donor attempted to collect on the outstanding balance of the $1 million loan, however, Lindenfeld and his co-conspirators, at the direction of Elected Official A, engaged in a complicated series of transactions using federal grant money and monies from Sallie Mae’s charitable arm illegally to repay the loan. These transactions were routed through several entities, including LSG, and were all falsely labeled as payments for services that were never actually rendered.
Lindenfeld admitted that, in exchange for the work he had done on the campaign, which included concealing the illegal campaign contribution, Elected Official A agreed to use his elected position to steer federal funding to Lindenfeld’s proposed environmental advocacy group, Blue Guardians. Lindenfeld further admitted that he created Blue Guardians at the direction of Elected Official A for the purpose of receiving the federal funding.
According to Lindenfeld, Elected Official A advocated for $15 million in federal funding for Blue Guardians as a reward for Lindenfeld’s services. Five hundred thousand dollars was approved in 2009 as an earmark through the National Oceanic and Atmospheric Administration (NOAA). Lindenfeld admitted, however, that the Blue Guardians did not exist in December 2009, and that he only created an email address, articles of incorporation, and a tax identification number for Blue Guardians in April 2010. After receiving questions from NOAA and members of the press, Lindenfeld declined the funding, stating that he and Elected Official A decided it could be better spent on the oil spill in the Gulf. NOAA did not disburse the $500,000 to Lindenfeld or Blue Guardians.
U.S. District Court Judge Harvey Bartle III scheduled a sentencing hearing for March 25, 2015.
The case is being investigated by the FBI and the IRS-CI with assistance provided by NASA’s Office of Inspector General and the Department of Commerce’s Office of Inspector General. This case is being prosecuted by Assistant U.S. Attorney Paul L. Gray of the Eastern District of Pennsylvania and Trial Attorney Eric L. Gibson of the Criminal Division’s Public Integrity Section.
Washington DC Political Consultant Pleads Guilty in Honest Services Wire Fraud SchemeRead the Press Release
PHILADELPHIA – Political consultant Thomas Lindenfeld, 59, of Washington D.C., pleaded guilty today to an information charging him with one count of conspiring to commit honest services wire fraud. U.S. District Court Judge Harvey Bartle III scheduled a sentencing hearing for March 25, 2015. Lindenfeld faces a maximum possible statutory sentence of 20 years in prison, a fine of up to $250,000, and up to five years of supervised release.
The charges were announced today by United States Attorney Zane David Memeger, Assistant Attorney General Leslie R. Caldwell of the Department of Justice’s Criminal Division, FBI Special Agent-in-Charge Edward J. Hanko, and IRS Criminal Investigation Acting Special Agent-in-Charge Richard Gross.
The charges stem from Lindenfeld’s participation in a wire fraud scheme initiated by his former employer, “Elected Official A,” which was disclosed in court proceedings today. According to the information, Lindenfeld, Elected Official A, and their associates, violated local campaign finance laws during Elected Official A’s 2007 race for Mayor of the City of Philadelphia by arranging for an illegal campaign contribution in the form of a $1 million loan from Person D. Lindenfeld and his confederates routed the money from Person D through Lindenfeld’s political consulting firm, LSG Strategies Services Corporation (“LSG”), which was working on Elected Official A’s campaign. LSG executed a promissory note with Person D and used the money - received via wire transfer - to pay various expenses of Elected Official A’s campaign. Of those funds, $400,000 went unspent and was returned to Person D by LSG.In late 2007, Person D experienced acute financial difficulty and contacted Lindenfeld at LSG to call in the $600,000 remaining debt. That debt was subsequently repaid with stolen charitable funds and federal grant money routed through several entities, including LSG, under the guise of sham contracts for services that were never rendered. To repay the debt, Elected Official A arranged for Nonprofit 1, an entity founded by Elected Official A, to route a total of $600,000 received from Sallie Mae’s charitable arm, as well as federal grant money, to Company 2, under the guise of a false contract for services. Company 2 was run by Person C, an ally of Elected Official A. Person C’s for-profit company executed a fake contract to disguise the movement of money from Nonprofit 1 to Company 2. Person C and Lindenfeld’s LSG also executed a fake contract to disguise the movement of money from Company 2 to LSG, after which Lindenfeld used the funds to repay Person D.
To resolve Elected Official A’s 2007 mayoral campaign debt to Lindenfeld and LSG, and to compensate them for participating in hiding the $1 million campaign contribution, Lindenfeld and Elected Official A and others agreed to use Elected Official A’s official position to steer federal funding to Lindenfeld’s proposed environmental advocacy group, “Blue Guardians,” which was created by Lindenfeld for the purpose of receiving federal funds. In 2009, during the appropriations process, Elected Official A asked for $15 million in federal funding for “Blue Guardians," which Elected Official A associated with a Philadelphia address belonging to Person C’s Company 1. In December of 2009, Elected Official A’s office notified Lindenfeld that “Blue Guardians” had received $500,000 (not the entire $15 million that had been requested) in federal funding as an earmark through the National Oceanic and Atmospheric Administration (“NOAA”). Approximately one month later, Elected Official A’s campaign began writing down the debt the campaign owed to LSG on its disclosure forms. Specifically, Elected Official A reduced the amount his campaign owed to LSG in the amount of $20,000, a transaction falsely labeled as a “contribution in kind.”
NOAA received no information regarding “Blue Guardians” until the earmark showed up in the final bill. NOAA learned that “Blue Guardians” did not have a website, and only identified a point of contact for “Blue Guardians” by calling Elected Official A’s office, which advised NOAA to contact Lindenfeld. NOAA learned that Lindenfeld was a political operative who had worked for Elected Official A. NOAA was suspicious that the earmark was a “political payoff,” and documented all of its interactions with Lindenfeld and informed its legal counsel of what it had learned. When NOAA reached Lindenfeld in approximately March 2010, it requested, among other things, the articles of incorporation for “Blue Guardians,” its physical address, its lists of Board of Directors or officers, and its tax status. Lindenfeld told NOAA that he would “speak with [Elected Official A] and get everything straightened out.” In fact, prior to April of 2010, “Blue Guardians” did not exist. Lindenfeld only obtained an email address, articles of incorporation, and a tax identification number for “Blue Guardians” in April 2010. Even after receiving those documents, Lindenfeld never forwarded them to NOAA. Eventually, Lindenfeld told NOAA that he “had spoken with [Elected Official A]” and that they decided the money could be better spent on the oil spill in the Gulf of Mexico. After Lindenfeld declined to accept the funding, NOAA never disbursed the $500,000 to Lindenfeld or his “Blue Guardians.”
Additional criminal activities undertaken during the schemes included (1) creating false contracts between the parties to justify the interstate transfer of the funds stolen to repay the illegal campaign loan, and (2) filing false campaign reports which concealed the illegal campaign debt, among other things.
The case is being investigated by the Federal Bureau of Investigation and Internal Revenue Service Criminal Investigations with assistance provided by the NASA Office of Inspector General and the Department of Commerce Office of Inspector General. It is being prosecuted by Assistant United States Attorney Paul L. Gray, and Trial Attorney Eric L. Gibson of the Criminal Division’s Public Integrity Section.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
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UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Wahpeton Man Pleads Guilty to Producing Child Pornography in North Dakota’s First Sextortion CaseRead the Press Release
Fargo - U.S. Attorney Timothy Q. Purdon announced that on November 5, 2014, Dustin Coleman, age 22, pleaded guilty to three counts of producing child pornography, two counts of extortion, and three counts of possession of child pornography. On each of the production of child pornography counts, Coleman faces a minimum mandatory sentence of 15 years, up to 30 years in federal prison and a potential life term of supervised release. He further faces a sentence of up to 20 years in prison for extorting sexually explicit images and videos from a child by threatening to injure another person and up to two years’ incarceration for extorting sexually explicit images from a child by threatening to damage her reputation. Finally, on each of the possession of child pornography counts, Coleman faces a maximum sentence of 10 years’ incarceration.
Beginning in 2013 and continuing until on about July 2013, Coleman used Kik Messenger and Touch, which are free messaging application for mobile devices, to transmit threatening communications with the intent to extort sexually explicit images and videos from female minors. Coleman used social networking websites such as Facebook to gather information about minor females located throughout the United States. He then used this information to extort the girls into creating sexually explicit images of themselves. On at least one occasion, he lied about already having possessed sexually explicit images of a minor female to extort sexually explicit images from her. Coleman used several different online screen names, including the screen name “debt collector” to both intimidate the minor females and conceal his identity and location when communicating with the minors.
After Coleman received sexually explicit images from minor females, he continued to demand that the victims send him additional and more graphic sexually explicit still images and videos. Coleman would communicate to the minor females that if they did not comply with his demands for additional material, he would injure their reputation by posting the sexually explicit images and videos to their friends and family. In at least one instance, he also threatened to sexually assault a minor female’s prepubescent sister if she did not comply. Coleman continued this pattern of extortion until law enforcement discovered his criminal activity while executing a search warrant for child pornography.
On August 26, 2013, Coleman’s former roommate in Wahpeton, North Dakota reported to the Wahpeton Police Department that she had viewed child pornography depicting a 14-year-old minor with whom she was familiar on Coleman’s electronic media. She took the media to a Wahpeton Police Department officer who obtained a search warrant for the media. This media was eventually forensically examined by a BCI special agent who discovered hundreds of sexually explicit images of young girls that appeared to be self-produced. Through further investigation, the BCI forensic agent was able to recover chats logs from the media which were associated with these sexually explicit images and videos. It was in these chats, that BCI discovered that defendant was extorting many of the girls into creating sexually explicit images and videos. In one instance, BCI recovered a chat log between the defendant and a 13-year-old minor girl who informed Defendant she was going to take her own life so as to avoid having to create additional material. HSI and BCI quickly located this girl who identified herself in the material found on Coleman’s media. The young girl further informed an HSI special agent that Coleman threatened to sexually assault her younger sister if she did not comply with his demands. A further forensic examination of the media also revealed child pornography depicting prepubescent children.
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.
This case was investigated by the North Dakota Internet Crimes Against Children Task Force to include the Wahpeton Police Department, North Dakota Bureau of Criminal Investigations, and Homeland Security Investigations.
The case is being prosecuted by U.S. Attorney Jennifer Klemetsrud Puhl.
Vendor Admits Paying Bribes to Agent of New Jersey TransitRead the Press Release
NEWARK, N.J. – A New Jersey Transit vendor today admitted paying bribes to a New Jersey Transit employee to obtain landscaping contracts, U.S. Attorney Paul J. Fishman announced.
Raymond Rapuano, 47, of New Providence, New Jersey, pleaded guilty before U.S. District Judge William H. Walls in Newark federal court to an information charging him with one count of bribery.
According to documents in this case and statements made in court:
Prior to March 2012, Rapuano had provided an individual who worked for New Jersey Transit (NJ Transit) $3,500 in bribe payments for the purpose of obtaining work for a landscape company, RA Landscape & Design (RA), for which Rapuano worked. Around April 2012, Rapuano agreed to give NJ Transit employees 13 percent of the value of any work awarded by NJ Transit to RA. Rapuano paid an NJ Transit employee a total of $2,000 for $22,000 worth of work awarded to RA by NJ Transit.
The bribery charge to which Rapuano pleaded guilty carries a maximum potential penalty of 10 years in prison and a $250,000 fine. Sentencing is scheduled for March 18, 2015.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford; and the N.J. State Police, under the direction of Col. Joseph R. Fuentes, Superintendent, with the investigation leading to today’s guilty plea. He also thanked the N.J. Attorney General’s Office, under the direction of Acting Attorney General John Hoffman, and Eli Honig, Director of the N.J. Division of Criminal Justice, for their work in the investigation.
The government is represented by Assistant U.S. Attorney Amy Luria of the U.S. Attorney’s Office Special Prosecutions Division in Newark, and Special Assistant U.S. Attorney Michael A. Monahan, the Chief of the Financial and Computer Crimes Bureau, Division of Criminal Justice, in the N.J. Attorney’s General’s Office.
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Defense counsel: Mary Frances Palisano Esq., NewarkRapuano, Raymond Information
United States Attorney’s Office Announces Convictions in Long-running International Child Pornography RingRead the Press Release
Two defendants trafficked child pornography in sophisticated conspiracy
INDIANAPOLIS - Josh J. Minkler, Acting United States Attorney, Assistant Attorney General Leslie Caldwell and United States Postal Inspector Acting Inspector in Charge Troy Raper announced today the guilty verdict of two men charged with conspiracy to distribute and receive child pornography, conspiracy to advertise child pornography and engaging in a child exploitation enterprise. In a long-running, world-wide child exploitation enterprise, John D. Gries 48, Bayshore, New York and James McCullars 56, Huntsville, Alabama, were found guilty by a federal jury in Indianapolis after a six-day trial.
“Protecting the most vulnerable of our citizens is a responsibility I take very seriously,” said Minkler. “As these men have learned, you aren’t anonymous online – if you engage in this type of behavior, you will face the full force of federal justice.”
“Today's verdict is another example of the dedication the Postal Inspection Service has to the victims of this horrific crime," said Raper.
According to testimony at trial, the conspiracy began sometime in 2000 and operated continuously until April 2012. Gries and McCullars ran various online chat rooms that were protected by a password that was available exclusively to members of the conspiracy. These chat rooms were dedicated to the distribution, receipt and possession of child pornography, and were used by its members as a forum to discuss and promote the sexual exploitation of children.
Today’s defendants and many of the conspiracy members had amassed large collections of materials depicting child exploitation. Using these chat rooms and a number of online servers, the co-conspirators sought to expand their collections and evade law enforcement through the use of sophisticated data encryption software.
In addition, nine other defendants conspired to sexually exploit children and produce new videos and images of that abuse, which could then be distributed to members of the group. Minkler said that as part of this investigation, nearly one-hundred children around the world have been identified as victims of abuse.
Other “Operation Rounder” defendants charged by the U.S. Attorney’s Office who have pleaded guilty or been found guilty include:
John Edwards, age 62, of Indianapolis, IN (17.5 years)
Thomas Vaughn, age 45, of Anderson, IN
John Rex Powell, age 43, of Fort Myers, Florida
Donald Printup, age 36, of Niagara Falls, New York
Michael Fredette, age 46, of Waterford, New York (27 years)
Robert Guillen, age 43, of Wesley Chapel, Florida
David Bebetu, age 51, of Agoura Hills, California
Stephen Harvey Dault, age 48, of McKinney, Texas (17 years)
Rick Ricardo Leon, age 53, of Arlington, VirginiaOne of the charged defendants, John Rex Powell, had previously been convicted by the U.S. Attorney’s Office as part of an investigation and prosecution of two Australian citizens who allegedly orchestrated the sexual abuse of their adopted son at the hands of a number of men around the world. Minkler said that Powell’s alleged involvement in both schemes was key in dismantling this conspiracy.
According to Senior Litigation Counsel Steven D. DeBrota and Trial Attorney Amy Larson with Department of Justice – Child Exploitation and Obscenity Section, Gries and McCullars face up to life in prison and registration as sexual offenders.
This case was the result of a collaborative investigation led by the U.S. Postal Inspection Service assisted by the Indiana Internet Crimes Against Children Task Force and the Department of Justice’s High Technology Investigative Unit, as part of Project Safe Childhood. Led nationally by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
United States Attorney Wigginton Announces Multi-Million Dollar Fraud Recovery on Behalf of the United StatesRead the Press Release
Follow @SDILNewsMaersk Line, Limited, (Maersk) paid the United States of America eight million seven hundred thousand dollars ($8,700,000.00) as the result of a civil settlement regarding Maersk’s failure to fully comply with certain terms of its contract with the United States Transportation Command (USTRANSCOM), the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
“One can clearly see that in contracts of this magnitude, even a small percentage of fraud amounts to significant loss of funds. By this and other ongoing investigations, I am putting these world-wide contractors on notice that my office will not tolerate any fraudulent, false or unwarranted billings to the United States and its client agencies.” noted United States Attorney Wigginton.
DCIS Special Agent in Charge Brian Reihms said “The Defense Criminal Investigative Service is dedicated to working with investigative partners to resolve fraudulent activity impacting the Department's supply chain and ensuring the integrity of the procurement system."
Under Maersk’s contract with USTRANSCOM, the Department of Defense used Maersk services to ship cargo from the United States to military outposts in Afghanistan. Maersk moved cargo by sea to an appropriate port, then by trucks over land, often travelling in remote areas where enemy combatants and criminal entities were active in delivering shipments.
With respect to the shipments at issue in this matter, USTRANSCOM discovered that some claims submitted by Maersk contained suspicious signatures. Further investigation revealed that signatures purporting to verify receipt of shipments in Afghanistan were forged. USTRANSCOM’s review uncovered 277 instances in which such claims were falsely made.
“I would note that to its credit, Maersk was cooperative in the investigation. Aside from these containers, Maersk has successfully delivered thousands of shipments during the war effort. Maersk’s overall conduct reflects a stronger performance and greater diligence than the relatively small amount of non-compliant warzone shipments would suggest, but, as I have noted, even a small amount of overall fraud becomes a huge waste of tax dollars, and I will not tolerate any such waste.” said United States Attorney Wigginton.
John F. Sopko, Special Inspector General for Afghanistan Reconstruction, stated, “This $8.7 million settlement is a real win for the American taxpayer and highlights the critical importance that oversight plays in helping to protect U.S. funds.”
This matter was investigated by the United States Army Criminal Investigation Command, Defense Criminal Investigative Service, Naval Criminal Investigative Service, Air Force Office of Special Investigations, and the Office of the Special Inspector General for Afghanistan Reconstruction. The case was prosecuted by Assistant United States Attorneys Gerald M. Burke and David J. Pfeffer.
US Attorney's Office, LCSD, FBI, and SC Attorney General Team to Prosecute Sex OffenderRead the Press Release
Contact Person: Jim May (803) 929-3000
Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that Charles Henry Ross, age 28, of San Diego, California has entered a guilty plea in federal court in Columbia, to the travel in interstate commerce with the intent to have illicit sexual contact with a minor, a violation of 18 U.S.C. § 2423(b). United States District Judge Terry L. Wooten of Columbia accepted the guilty plea and will impose sentence after he has reviewed the presentence report which will be prepared by the U.S. Probation Office.
Evidence presented at the change of plea hearing established that the defendant, Charles Henry Ross, traveled from California to South Carolina to carry on a sexual relationship with a 15 year old.
Mr. Nettles stated the case showed the cooperation between the United States Attorney’s Office, Lexington County Sheriff’s Department, the FBI and the South Carolina Attorney General’s Office in the identification and prosecution of dangerous criminals.
The United States Attorney’s Office prosecuted the case in conjunction with the South Carolina Attorney General’s Office. The case was investigated by agents of the FBI and the Lexington County Sheriff's Department. Assistant United States Attorney James (Jim) Hunter May of the Columbia is prosecuting the case.Two Women Plead Guilty to Participating in Mortgage Fraud SchemeRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that two women involved in an extensive mortgage fraud scheme have pleaded guilty in Hartford federal court. Today, MALGORZATA KARAS-GOLKA, also known as “Margaret,” 46, of Newington, pleaded guilty to one count of bank fraud related to the scheme and, on November 3, CARMELINDA MAROTTA, also known as “Linda,” 45, of Manchester, pleaded guilty to bank fraud, as well.
According to court documents and statements made in court, from approximately June 2005 to July 2010, Filippos Milios, KARAS-GOLKA, MAROTTA and others conspired to defraud banks and mortgage lenders in obtaining dozens of mortgages for the sale of properties owned by Milios, KARAS-GOLKA and others. The conspiracy involved the use of straw borrowers, false mortgage applications, false HUD-1 forms and fraudulent down payments in connection with the purchase of nearly 50 houses primarily located in Hartford, New Haven and Middlesex counties.
As part of the scheme, Milios purchased properties, either in his own name, in a limited liability corporation in which he had an interest, or with KARAS-GOLKA. Milios, MAROTTA and others then recruited borrowers to purchase these properties. Unbeknownst to the lenders who extended mortgages to the borrowers, Milios, MAROTTA, and KARAS-GOLKA submitted fraudulent documents in connection with the loan applications, including false HUD-1 forms, employment verification letters, and rental verification letters.
Milios made the down payments on behalf of the borrowers who were recruited to purchase the properties. Attorney Gabriel Serrano, who served as a closing attorney for most of the fraudulent transactions, often released the seller’s proceeds checks from a closing to Milios before receiving the down payment, and Milios used the seller’s proceeds checks to purchase the down payment check for the same transaction. Milios failed to disclose to mortgage lenders that he paid money to borrowers, mortgage brokers, and recruiters.
Many of the properties involved in the scheme ended up in foreclosure and lenders lost a total of approximately $5.6 million.
In pleading guilty, KARAS-GOLKA admitted that she was involved in nine fraudulent real estate transactions, and MAROTTA admitted that she was involved in three fraudulent transactions.
The charge of bank fraud carries a maximum term of imprisonment of 30 years. Both MAROTTA and KARAS-GOLKA are scheduled to be sentenced by U.S. District Judge Alvin W. Thompson on January 30, 2015.
Milios and Serrano previously pleaded guilty to one count of conspiracy to commit mail and bank fraud, and one count of conspiracy to commit money laundering. They await sentencing.
This case is being investigated by the U.S. Department of Housing and Urban Development – Office of Inspector General, the Internal Revenue Service – Criminal Investigation Division, the Federal Bureau of Investigation, and the United States Postal Inspection Service. The case is being prosecuted by Assistant U.S. Attorneys David T. Huang and William J. Nardini.
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(203) 821-3722 [email protected]Two Wheeling Men Convicted of Drug Trafficking OffensesRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Tara Tighe, Public Affairs SpecialistWHEELING, WEST VIRGINIA – Two Wheeling, West Virginia men pled guilty to drug trafficking offenses, United States Attorney William J. Ihlenfeld, II, announced today.
Daniel Hairston, 35, admitted to selling crack cocaine near the Booker T. Washington Plaza Apartments, a public housing authority facility in Wheeling, West Virginia. He pled guilty to one count of “Distribution of Cocaine Base within 1,000 Feet of a Protected Location,” for which he faces between one and forty years in prison and a fine of up to $2,000,000.00.
Jackie Byrd, 25, admitted to cocaine trafficking and stabbing a cooperating witness in retaliation. Byrd pled guilty to one count of “Conspiracy to Possess with Intent and to Distribute Cocaine Base,” for which he faces up to 20 years in prison and a fine of up to $1,000,000.00. He also pled guilty to one count of “Retaliation Against a Cooperating Witness,” for which he faces up to 20 years in prison and a fine of up to $250,000.00.
Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Randy Bernard is prosecuting the case on behalf of the government. The Ohio Valley Drug and Violent Crime Task Force, a HIDTA-funded initiative, is leading the investigation.
Senior U.S. District Judge Frederick P. Stamp presided.
Two Rochester Men Indicted for Producing Child PornographyRead the Press Release
ROCHESTER, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that a federal grand jury has returned an indictment charging Shahmell Robinson, 21 and Jordan McCloud, 22, both of Rochester, NY, with production of child pornography. The charge carries a mandatory minimum sentence of 15 years in prison and a $250,000 fine.
“Federal pornography laws enable this Office to prosecute those who would videotape the rape of a child, not just the rapist, said U.S. Attorney Hochul. “We will continue to use all tools at our disposal to help protect children from these violent predators.”
Assistant U.S. Attorney Craig R. Gestring, who is handling the case, stated that according to the indictment, Robinson raped a 14 year old girl while McCloud recorded the incident on his cellular telephone. The conduct occurred at a residence in Greece in August, 2014. The videos came to the attention of law enforcement when another individual posted them on Facebook.
The defendants will be arraigned on November 6, 2014 at 9:00 a.m. before U.S. Magistrate Judge Marian W. Payson.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The indictment is the culmination of an investigation on the part of members of the Federal Bureau of Investigation’s Child Exploitation Task Force, along with officers from the Rochester Police Department, under the direction of Chief Michael Ciminelli and members of the Greece Police Department, under the direction of Chief Patrick Phelan.
The fact that the defendants have been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.Two Florida Men Admit Participating in Multimillion Drug Theft from Eli Lilly Warehouse in EnfieldRead the Press Release
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The United States Attorney for the District of Connecticut announced that two Florida residents pleaded guilty today in New Haven federal court to charges related to their participation in the theft of pharmaceuticals from an Eli Lilly Company warehouse and storage facility in Enfield, Conn. YOSMANY NUNEZ, also known as “El Gato,” 42, of Southwest Ranches, Fla., ALEXANDER MARQUEZ, 41, of Hialeah, Fla., each pleaded guilty to one count of transportation of stolen property.
According to court documents and statements made in court, in early 2010, NUNEZ, MARQUEZ, Amaury Villa, Amed Villa and another individual planned to steal pharmaceuticals from the Eli Lilly Company warehouse and storage facility in Enfield. The investigation revealed that, prior to the theft, NUNEZ and Amaury Villa traveled from the Miami area to Connecticut to gather information about the warehouse facility and the surrounding area. Shortly before the theft, Amed Villa and another individual traveled to Flushing, N.Y., where they purchased tools needed to break into the warehouse facility, and then traveled to Connecticut.
In the evening of March 13, 2010, individuals involved in the theft dropped off a ladder in the rear parking lot of the warehouse facility and left. That same night, MARQUEZ drove a tractor trailer to the facility. Thereafter, Amed Villa and Amaury Villa carried the ladder to the building, checked for security in the front area, climbed onto the roof, used tools to cut a hole in the facility roof, dropped down into the facility and disabled the alarm system. Amaury Villa, Amed Villa and NUNEZ then loaded more than 40 pallets of pharmaceuticals into the tractor trailer, which had been backed up to the loading dock of the warehouse.
The pallets of pharmaceuticals included thousands of boxes Zyprexa, Cymbalta, Prozac, Gemzar and other medicines, valued between $50 and $100 million.
The individuals who participated in the theft split up in Connecticut. MARQUEZ then drove the tractor trailer to Florida, where he subsequently reunited with Amaury Villa, Amed Villa and NUNEZ so the pharmaceuticals could be transferred from the tractor trailer into self-storage units in the Miami area.
On October 14, 2011, law enforcement authorities searched a storage facility in Florida and recovered pharmaceuticals that had been stolen from the Enfield warehouse.
NUNEZ and MARQUEZ, who are both citizens of Cuba, were arrested on April 17, 2014. NUNEZ is detained and Marquez is released on a $200,000 bond. They are scheduled to be sentenced by U.S. District Judge Janet Bond Arteron in February 2015, at which time each faces a maximum term of imprisonment of 10 years.
Amaury Villa and Amed Villa have also pleaded guilty and await sentencing.
This matter is being investigated by the Federal Bureau of Investigation and the Enfield Police Department, with the assistance of several other U.S. Attorney’s Offices and federal, state and local law enforcement agencies that have been investigating large-scale thefts of pharmaceuticals and other products.
The case is being prosecuted by Assistant U.S. Attorneys Anastasia E. King and Douglas P. Morabito.
PUBLIC AFFAIRS CONTACT:
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(203) 821-3722 [email protected]Tampa Man Sentenced to More Than Five Years in Federal Prison for Credit Card FraudRead the Press Release
Tampa, FL – U.S. District Judge James S. Moody, Jr. today sentenced Ricardo Martinez (34, Tampa) to five years and ten months in federal prison for access device fraud and aggravated identity theft. He was also ordered to pay restitution to the companies defrauded by his scheme. Martinez pleaded guilty on July 29, 2014.
According to court documents, Martinez, along with others, obtained stolen credit card numbers that were then used to create counterfeit or cloned credit cards. The true owners of the credit card accounts remained in possession of the real credit cards, so they were not known to be stolen or reported as stolen.
Martinez and others made numerous purchases, including gift cards, at area Wal-Mart locations. He also used the cloned credit cards to obtain cash advances from the Seminole Hard Rock Casino in Tampa.This case was investigated by the United States Secret Service, the Florida Department of Law Enforcement, the Clearwater Police Department, the Hillsborough County Sheriff’s Office, the Ocala Police Department, and the Seminole Police Department. It was prosecuted by Assistant United States Attorney Kelley Howard-Allen.
Suburban Chicago Man Sentenced to 37 Months in Prison for Failing to Pay Taxes on $3.1 Million in Income over Eight YearsRead the Press Release
CHICAGO — A southwest suburban man was sentenced to just over three years in federal prison for failing to report more than $3.1 million in gross receipts and gambling income and failing to pay more than $582,000 in federal income taxes. The defendant, PAUL WEST, was sentenced after pleading guilty in August of this year to two counts of filing a false federal income tax return.
West, 62, of Lockport and formerly of Frankfort, also known as “Thomas Wilson,” and “Tom Wilson,” was in the business of selling materials for recycling, including scrap cardboard. In 2007 and 2011, West under-reported his income from his recycling services and gambling, reporting that he owed little or no taxes. For six other years between 2004 and 2011, he failed to file any individual income tax returns, despite gross receipts and gambling income over all eight years totaling $3,190,741.
West was sentenced to 37 months in prison and ordered to pay $582,934 ― the amount of taxes he owed ― in restitution to the Internal Revenue Service. U.S. District Judge Andrea R. Wood, who imposed the sentence last Friday in Federal Court, ordered West to begin serving his sentence on Jan. 15, 2015.
“West’s tax crimes wrongfully undermine our tax system and its fundamental premise of voluntary and truthful compliance,” Assistant U.S. Attorney Kaarina Salovaara argued at the sentencing.
The sentence was announced today by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and James C. Lee, Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago.
In addition to criminal penalties, defendants convicted of tax offenses remain responsible for any taxes and interest due, as well as civil penalties of up to 75 percent of the tax owed.
St. Francis Man Sentenced to Two Life Sentences for First Degree MurderRead the Press Release
United States Attorney Brendan V. Johnson announced that a St. Francis, South Dakota, man convicted of two counts of First Degree Murder was sentenced on October 27, 2014, by U.S. District Judge Roberto A. Lange.
BillyRay McCloskey, age 23, was sentenced to two terms of life imprisonment, and a $200 special assessment to the Federal Crime Victims Fund.
BillyRay McCloskey was indicted for First Degree Murder, Kidnapping, Assault with a Dangerous Weapon, Assault Resulting in Serious Bodily Injury, Interstate Transportation of a Stolen Motor Vehicle, and Larceny by a federal grand jury on February 12, 2014. He pled guilty to two counts of First Degree Murder on July 28, 2014.
Co-Defendant Riley McCloskey, who was convicted of two counts of Second Degree Murder, was also sentenced on October 27, 2014, by U.S. District Judge Roberto A. Lange.
Riley McCloskey, age 21 from St. Francis, was sentenced to 210 months in custody, 5 years of supervised release, and a $200 special assessment to the Federal Crime Victims Fund.
Riley McCloskey was indicted for First Degree Murder, Kidnapping, Assault with a Dangerous Weapon, Assault Resulting in Serious Bodily Injury, Interstate Transportation of a Stolen Motor Vehicle, and Larceny by a federal grand jury on February 12, 2014. He pled guilty to two counts of Second Degree Murder on July 29, 2014.
Co-Defendant Crystal Red Hawk, age 37, also appeared before U.S. District Judge Roberto A. Lange on October 27, 2014, and pled guilty to two counts of Second Degree Murder. The maximum penalty for each charge carries a maximum sentence of up to life in prison and/or a $250,000 fine, and a period of supervised release of up to 5 years. Red Hawk’s sentencing is scheduled for January 20, 2015, at 1:00 pm.
In the late evening hours of December 23, 2013, Defendant BillyRay McCloskey and Calvin Kills In Water physically fought each other at a home in St. Francis. The Defendant knocked Kills In Water to the kitchen floor and kicked him repeatedly in the head, face, and body until Kills In Water lost consciousness. A co-Defendant, Crystal Red Hawk, was present during the assault on Kills In Water. An additional co-Defendant, Riley McCloskey, arrived at the residence after the assault, while Kills In Water was lying on the floor unconscious and bleeding. Seventy-six year old Benjamin Clifford was asleep in the living room.
The Defendant, along with co-Defendant’s Crystal Red Hawk and Riley McCloskey, decided to remove Kills In Water from the residence. The plan was to wrap a shower curtain or blanket around Kills In Water to keep the blood from dripping on the upholstery in the car in which they intended to transport him. The car belonged to Benjamin Clifford.
The Defendant and co-Defendant Riley McCloskey supported Kills In Water between them and “walked” him out to Clifford’s car. They loaded him in to the rear passenger seat of the vehicle. As they were doing so, Clifford, the owner of the vehicle, ran outside and said he would drive his own car.
Clifford drove the vehicle as they left the residence, with Crystal Red Hawk in the front passenger seat, Riley McCloskey in the driver side rear passenger seat, and BillyRay McCloskey in the center of the rear passenger seat. The plan devised by the Defendant and co-Defendants was to drive to the community of St. Francis to a trailer house located behind a store where they could drop off Kills In Water with someone who knew him. Clifford suggested that they take Kills In Water to the hospital, but BillyRay McCloskey said no. Clifford then drove the vehicle behind the trailer house according to the original plan and honked the car horn in an effort to get someone’s attention within the trailer. As he did so, BillyRay McCloskey reached over the back of the front seat and placed his forearm around Clifford’s neck in a sleeper hold until he lost consciousness. The vehicle was driven away from the scene and down a highway south of St. Francis, where the vehicle stopped and BillyRay McCloskey searched the front of the car until he found a screw driver. BillyRay McCloskey then turned around to face the back seat, got on his knees, and stabbed Kills In Water in the chest several times with the screw driver.
The Defendant and co-Defendants then proceeded into Nebraska, stopping in front of a gate into a pasture in rural Cherry County. BillyRay McCloskey opened the gate and Crystal Red Hawk continued to drive the vehicle into the pasture, coming to a stop near a grove of trees. BillyRay McCloskey and the others removed both Clifford, who was unconscious but alive, and Kills In Water from the vehicle and drug their bodies from the car to the grove of trees.
After leaving the location where the bodies were dumped, BillyRay McCloskey threw the screw driver out of the front passenger side window. The Federal Bureau of Investigation (FBI) ultimately recovered a Phillips screw driver, and DNA testing of the screw driver indicated the presence of blood from both Clifford and Kills In Water.
The bodies of both Clifford and Kills In Water were located and recovered in the early morning hours of December 30, 2013. Kills In Water was found with his hands bound behind his back with a pair of pants.
An autopsy was performed on the bodies of Clifford and Kills In Water. The autopsy report of Benjamin Clifford concluded that the cause of death was stab wounds to the left chest, with neck compression “asphyxia” as a probable contributing factor. The autopsy noted seven puncture wounds in the upper chest region.
The autopsy report of Calvin Kills In Water indicated that the cause of death was stab wound type injuries involving the head and neck area, with a likely contributing force of blunt force trauma to the head.
Several days later, law enforcement authorities apprehended Defendant BillyRay McCloskey, who admitted he strangled Clifford until he was unconscious and also admitted to stabbing him in the chest at least 5 times with a screw driver. He also admitted that he stabbed Kills In Water at least seven times in the throat and had dumped the bodies in a remote area.
This case was investigated by the FBI and the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Tim Maher prosecuted the case.
BillyRay McCloskey, Riley McCloskey, and Crystal Red Hawk were immediately turned over to the custody of the U.S. Marshals Service.
Springfield Felon Pleads Guilty in Firearm Threats CaseRead the Press Release
BOSTON – A Springfield man pleaded guilty today in U.S. District Court in Springfield to illegally possessing a firearm.
Jamel Bolden, 21, pleaded guilty to possessing a firearm and ammunition after being previously convicted of a felony. U.S. District Court Judge Timothy S. Hillman scheduled sentencing for Jan. 28, 2015.
On June 3, 2013, during a dispute with his mother and his stepfather, Bolden brandished a Ruger Single Six .22 Magnum caliber revolver and told stepfather that he would “lay him down.” Bolden had been previously convicted of three counts of armed robbery and was currently on probation for these offenses. After Bolden’s mother and stepfather reported the incident, Bolden fled, narrowly escaping the police. On June 7, 2013, Bolden was arrested at his girlfriend’s home. After the arrest, local law enforcement officials executed a search warrant for an automobile used by his girlfriend, and they recovered the revolver loaded with six rounds of ammunition. Federal agents later executed another search warrant for his girlfriend’s cell phone and recovered a photograph of Bolden posing with the revolver.
According to terms of the plea agreement, Bolden has also agreed to plead guilty to assault with a dangerous weapon in a related case in Hampden Superior Court.
The charging statute provides a sentence of no greater than 10 years in prison, three years of supervised release, a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz, Daniel J. Kumor, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Boston Field Office, and Springfield Police Department Commissioner John Barbieri made the announcement. The case is being prosecuted by Assistant U.S. Attorney Steven H. Breslow of Ortiz's Springfield Branch Office.
Sentencings of Last Two Defendants from A Total of Seven Park Avenue, Rutland Drug Dealers Who Pled Guilty to Federal Heroin and Crack Cocaine Drug ConspiracyRead the Press Release
The Office of the United States Attorney for the District of Vermont stated Chief Judge Christina Reiss, of the United States District Court, recently sentenced Eric Dixon (a.k.a. “Big E”), 45, of Rutland, and Andrew Harris (a.k.a. “Dreads”), 25, of Rutland. These two sentencings were the last two sentencings of a total of seven defendants convicted of selling heroin and crack cocaine and who were operating out of various residences on Park Avenue in Rutland, Vermont. In the most recent sentencings, Judge Reiss sentenced Eric Dixon to 87 months imprisonment to be followed by six years of supervised release, and Andrew Harris to 60 months imprisonment to be followed by five years of supervised release.
Judge Reiss previously sentenced the following five: (1) Terrence Chenault (a.k.a. “Stucky”), 31, of Rutland, Vermont to 87 months imprisonment for conspiring to distribute heroin and crack cocaine to be followed by four years supervised release; (2) Joshua Minix (a.k.a. “Face”), 38, of Rutland, Vermont to 87 months imprisonment for conspiring to distribute heroin and possessing a firearm while unlawfully using controlled substances, to be followed by five years of supervised release; (3) Ernest Murray, 51, of Rutland to five years imprisonment for conspiring to distribute heroin and crack cocaine to be followed by four years of supervised release; (4) Sara Muzzy, 28, of Rutland, to 8 months imprisonment for conspiring to distribute heroin to be followed by three years supervised release; and (5) Kimberly MacJarrett, 23, of Rutland, to 12 months for conspiring to distribute heroin, to be followed by three years supervised release.
In these various sentencings, Judge Reiss found that organizers of this conspiracy, including Dixon, Chenault, Murray, and Minix, were “predatory” in that they used addicts, particularly young woman, such as Muzzy and MacJarrett, to take most of the risk by distributing and transporting the drugs, including by body packing them. Judge Reiss stated that heroin is “tearing the fabric” of communities apart and there needs to be “serious consequences” to distributing these drugs. The Government stated in its sentencing memoranda that “heroin and other drugs are wreaking havoc in Rutland and many other Vermont communities” and “a strong message from the Court needs to be continually sent to narcotic dealers that spreading their poison in the community will result in a lengthy jail sentence.”
This case was jointly investigated by the Vermont Drug Task Force, the Drug Enforcement Administration, and the Federal Bureau of Investigation. The United States is represented by Assistant U.S. Attorney Joseph Perella. The seven defendants are represented as follows: Eric Dixon is represented by David Watts, Esq.; Terrence Chenault is represented by Richard Goldsborough, Esq.; Joshua Minix is represented by William Kraham, Esq.; Andrew Harris is represented by Lisa Shelkrot, Esq.; Ernest Murray is represented by David Williams, Esq.; Kim MacJarrett is represented by Beth Mann, Esq.; and, Sara Muzzy is represented by Jean-Claude Charboneau.Redding Man Sentenced to Three Years in Prison for Possession of Child PornographyRead the Press Release
SACRAMENTO, Calif. — U.S. District Judge Kimberly J. Mueller sentenced Gerald Steven Kronberger, 35, of Redding, today to three years in prison for possessing images of minors engaged in sexually explicit conduct, United States Attorney Benjamin B. Wagner announced.
This case was the product of an investigation by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant United States Attorney Michelle Rodriguez prosecuted the case.
According to court documents, on June 19, 2012, HSI executed a federal search warrant at Kronberger’s residence. Forensic analysis of seized electronic equipment later indicated that Kronberger possessed many images and videos of child pornography.
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 those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.
Real Estate Agent Indicted on Fraud and Theft ChargesRead the Press Release
In Alleged Scam Involving Clients’ Deposits
-Defendant Allegedly Used Clients’ Money for Own Expenses-WASHINGTON – Mark Alan Wall, 56, a real estate agent and broker from Washington, D.C., has been indicted by a federal grand jury on charges stemming from a scheme in which he allegedly stole over $300,000 from clients who were seeking to purchase homes and other clients who loaned him money for real estate closings and other reasons.
The indictment, returned on Nov. 4, 2014 in the U.S. District Court for the District of Columbia, was announced today by U.S. Attorney Ronald C. Machen Jr. and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
The grand jury indicted Wall on three federal offenses, including one count each of mail fraud, interstate transportation of money taken by fraud, and money laundering. The indictment also includes two counts of first-degree theft, which are District of Columbia offenses. The indictment also includes a forfeiture allegation seeking all proceeds from the crimes.
Wall was arrested today and pled not guilty at a court appearance this afternoon.
According to the indictment, Wall owned and operated a business by the name of “Woof Real Estate,” and advertised himself as capable in assisting buyers in finding and purchasing residential real estate. As a licensed real estate agent and broker, Wall would from time to time receive clients’ money to be held for them in trust. Brokers must keep such funds in a separate escrow bank account. Typically, when buyers of real estate make offers, they put down some money as a deposit as a show of their earnest interest in purchasing the property. This money, referred to as an “earnest money deposit,” is to go into an escrow account. If the offers are accepted, the money then becomes part of the buyers’ down payments.
From in or about July 2010 through at least May 2013, according to the indictment, Wall convinced his clients to provide amounts greater than typically used as their earnest money deposits, claiming that he would hold the money in escrow for their benefit to demonstrate that they had sufficient money to close on future sales. At times, he convinced them to make additional deposits, saying that would strengthen their negotiating power for future offers.
The indictment alleges that Wall did not maintain his clients’ money for their benefit. Instead, the indictment alleges, he spent it on himself and his expenses within a few weeks or months of receiving the funds.
An indictment is merely a formal allegation that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty.
In announcing the indictment, U.S. Attorney Machen and Chief Lanier commended the work of those who investigated the case from the Metropolitan Police Department and the U.S. Attorney’s Office for the District of Columbia. They also expressed appreciation for the work of Assistant U.S. Attorney Arvind K. Lal, who is assisting with forfeiture issues, Paralegal Specialist Kristy Penny, and Assistant U.S. Attorney Virginia Cheatham, who is prosecuting the case.
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Rapid City Man Sentenced for Failure to Register as A Sex OffenderRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rapid City, South Dakota, man convicted of Failure to Register as a Sex Offender was sentenced on October 28, 2014, by U.S. District Judge Roberto A. Lange.
Jeffrey Jandreau, age 36, was sentenced to 10 months in custody, 5 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Jandreau was indicted by a federal grand jury on July 15, 2014. He pled guilty on August 14, 2014.
The conviction stems from Jandreau failing to register as a sex offender, as required by federal law, after absconding from a halfway house. Jandreau’s whereabouts were unknown from June 25, 2014, until July 1, 2014, when he was located by the U.S. Marshals Service on his family’s rural ranch. Jandreau was previously convicted in 2010 of a sex offense in federal court which requires him to register as a sex offender.
This case was investigated by U.S. Marshals Service. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Jandreau was immediately turned over to the custody of the U.S. Marshals Service.
Rapid City Man Indicted on Child Pornography ChargesRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rapid City, South Dakota, man has been indicted by a federal grand jury for Distribution of Child Pornography and Possession of Child Pornography.
Nicholas Adam Jensen, age 24, was indicted on September 23, 2014. He appeared before U.S. Magistrate Judge Veronica Duffy on October 14, 2014, and pled not guilty to the Indictment.
The penalty upon conviction is a mandatory minimum of 5 years’ imprisonment up to 20 years’ imprisonment and/or a $250,000 fine, a lifetime of supervised release, and a $100 assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment charges that between March 2013 and April 2013, at Rapid City, Jensen knowingly distributed and possessed computer files containing images of child pornography.
The charges are merely accusations and Jensen is presumed innocent until and unless proven guilty.
The investigation was conducted by the South Dakota Internet Crimes Against Children Task Force. Assistant U.S. Attorney Sarah B. Collins is prosecuting the case.
Jensen was released pending trial. A trial date has been set for March 10, 2015.
Pinellas Man Sentenced to Forty Years’ Imprisonment for Attempted Use of Weapon of Mass DestructionRead the Press Release
Tampa, Florida – U.S. District Judge Mary S. Scriven today sentenced Sami Osmakac (27, Pinellas Park) to 40 years in federal prison for the attempted use of weapons of mass destruction, and possession of a fully automatic firearm. The court also ordered Osmakac to forfeit property that he used to facilitate the offense, including the vehicle used on the night of his arrest.
Osmakac was indicted on February 2, 2012. A federal jury found him guilty on June 10, 2014.
“This case represents another victory in our fight against terrorism,” said U.S. Attorney A. Lee Bentley, III. “Our success here is due, in part, to assistance from the Muslim community, which brought this defendant’s violent intentions to the attention of law enforcement.”
According to testimony and evidence presented at trial, on January 7, 2012, Osmakac attempted to use weapons of mass destruction, including a car bomb, grenades, and a suicide explosive, at two locations in the Tampa Bay area. Specifically, his intended targets were MacDinton’s Irish Pub and the Seminole Hard Rock Casino. Additionally, on January 7, 2012, Osmakac possessed a machinegun without the firearm being registered to him in the National Firearm Registration and Transfer Record.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Sara C. Sweeney and Trial Attorney Clement McGovern from the National Security Division at the Department of Justice.
Philadelphia Man Sentenced to 40 Years in Prison for Deadly Firebombing of Federal Witness's FamilyRead the Press Release
A Philadelphia man was sentenced today in the Eastern District of Pennsylvania to serve 40 years in prison for his role in the retaliatory firebombing that killed six members of a federal witness’s family, including four children.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Zane David Memeger of the Eastern District of Pennsylvania and Special Agent in Charge Edward J. Hanko of the FBI’s Philadelphia Division made the announcement.
Lamont Lewis, 38, of Philadelphia, pleaded guilty in 2011 for his role in the firebombing of Eugene Coleman’s family home in retaliation for Coleman’s cooperation with law enforcement. Lewis also pleaded guilty to an additional five murders murder-for-hire, and drug trafficking charges, and agreed to testify against Kaboni Savage and his cousin, Robert Merritt, who assisted Lewis in carrying out the firebombing. U.S. District Judge R. Barclay Surrick of the Eastern District of Pennsylvania imposed the sentence after considering Lewis’s cooperation in the prosecution of Savage and others.
According to Lewis’s testimony at trial, at Savage’s direction, Lewis and Merritt firebombed the Coleman family home in retaliation for Coleman’s testimony against Savage. Lewis admitted that he spoke to Savage in the evening hours of Oct. 8, 2004, at which time Savage asked for a favor and told Lewis that his sister, Kidada Savage, would explain the plan after the phone call. Shortly thereafter, Kidada Savage advised Lewis of the plan to firebomb the Coleman residence, and drove Lewis to the location to identify the house. In the early morning hours of Oct. 9, 2004, Lewis contacted Merritt and explained the plan to him. Lewis and Merritt filled up two gas cans while en route to the Coleman residence. Then, while Lewis gained entry and fired warning shots into the residence, Merritt threw a gas can with a lit cloth fuse, and then a second gas can, into the occupied Philadelphia row house. Six people, including four children ranging in age from 15 months to 15 years, were killed in the fire.
Co-defendants Kaboni Savage,Kidada Savage, and Merritt were also convicted for their roles in the firebombing at the May 2013 trial. Kaboni Savage, who was also convicted of other crimes, was sentenced to death for 12 counts of murder in aid of racketeering. Kidada Savage and Robert Merritt were sentenced to life in prison.
The case was investigated by the FBI, the Internal Revenue Service – Criminal Investigation, the Philadelphia Police Department, the Philadelphia District Attorney’s Office, and the Maple Shade, New Jersey Police Department. The United States Bureau of Prisons, the United States Marshals Service, and the Philadelphia / Camden High Intensity Drug Trafficking Area Task Force also assisted in the investigation. The case is being prosecuted by Trial Attorney Steve Mellin of the Criminal Division’s Capital Case Section and Assistant U.S. Attorneys David E. Troyer and John M. Gallagher of the Eastern District of Pennsylvania.
Owner and Administrator of Two Miami Home Health Companies Sentenced to 80 Months in Prison for $74 Million Fraud SchemeRead the Press Release
The owner and administrator of two Miami home health care companies was sentenced today to serve 80 months in prison for her participation in a $74 million Medicare fraud scheme.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office and Special Agent in Charge Derrick Jackson of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office made the announcement. U.S. District Judge Marcia G. Cooke in the Southern District of Florida imposed the sentence.
Elsa Ruiz, 45, of Miami, pleaded guilty in July 2014 to one count of conspiracy to commit health care fraud. In addition to the prison sentence, Ruiz was ordered to pay $45 million in restitution.
Ruiz was an owner and operator of Professional Home Care Solutions Inc. and an administrator of LTC Professional Consultants Inc., both of which purported to provide home health and therapy services to Medicare beneficiaries. According to admissions during her plea hearing, Ruiz and her co-conspirators operated LTC and Professional Home Care for the purpose of billing the Medicare program for, among other things, expensive physical therapy and home health care services that were not medically necessary or were not provided.
According to her admissions, Ruiz’s primary role in the scheme was to negotiate and pay kickbacks to patient recruiters and to otherwise oversee the schemes operating out of LTC and Professional Home Care. Specifically, Ruiz and her co-conspirators paid kickbacks to patient recruiters for the referral of patients and for the provision of prescriptions, plans of care, and certifications for medically unnecessary therapy and home health services. Ruiz and her co-conspirators used these prescriptions, plans of care, and medical certifications to fraudulently bill the Medicare program for home health care services.
From approximately January 2006 to June 2012, LTC and Professional Home Care submitted approximately $74 million in claims for home health services that were not medically necessary or not provided, and Medicare paid approximately $45 million on those claims.
The case is being investigated by HHS-OIG and the FBI and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. The case is being prosecuted by Assistant Chief Joseph S. Beemsterboer of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,000 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Owner and Administrator of Two Miami Home Health Companies Sentenced to 80 Months in Prison for $74 Million Fraud SchemeRead the Press Release
The owner and administrator of two Miami home health care companies was sentenced today to serve 80 months in prison for her participation in a $74 million Medicare fraud scheme.
United States Attorney Wifredo A. Ferrer for the Southern District of Florida, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office and Special Agent in Charge Derrick Jackson of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office made the announcement. U.S. District Judge Marcia G. Cooke in the Southern District of Florida imposed the sentence.
Elsa Ruiz, 45, of Miami, pleaded guilty in July 2014 to one count of conspiracy to commit health care fraud. In addition to the prison sentence, Ruiz was ordered to pay $45 million in restitution.
Ruiz was an owner and operator of Professional Home Care Solutions Inc. and an administrator of LTC Professional Consultants Inc., both of which purported to provide home health and therapy services to Medicare beneficiaries. According to admissions during her plea hearing, Ruiz and her co-conspirators operated LTC and Professional Home Care for the purpose of billing the Medicare program for, among other things, expensive physical therapy and home health care services that were not medically necessary or were not provided.
According to her admissions, Ruiz’s primary role in the scheme was to negotiate and pay kickbacks to patient recruiters and to otherwise oversee the schemes operating out of LTC and Professional Home Care. Specifically, Ruiz and her co-conspirators paid kickbacks to patient recruiters for the referral of patients and for the provision of prescriptions, plans of care, and certifications for medically unnecessary therapy and home health services. Ruiz and her co-conspirators used these prescriptions, plans of care, and medical certifications to fraudulently bill the Medicare program for home health care services.
From approximately January 2006 to June 2012, LTC and Professional Home Care submitted approximately $74 million in claims for home health services that were not medically necessary or not provided, and Medicare paid approximately $45 million on those claims.
The case is being investigated by HHS-OIG and the FBI and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. The case is being prosecuted by Assistant Chief Joseph S. Beemsterboer of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,000 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Oneida Resident Sentenced on Drug ChargesRead the Press Release
Sentenced on methamphetamine and pseudoephedrine charges
SYRACUSE, NEW YORK –Wanda Kingsley, age 49, of Florence, New York, was sentenced today by U.S. District Court judge Glenn T. Suddaby to 70 months imprisonment on jury on three felony counts, including a methamphetamine conspiracy involving the manufacture of 50 grams or more and a conspiracy to possess or distribute pseudoephedrine knowing it was intended to be used to manufacture a controlled substance - announced United States Attorney Richard S. Hartunian.
Following a three day jury trial in February, 2014, Kingsley and co-defendant Terry Ross, age 53, also of Florence, were convicted of a conspiracy to manufacture 50 grams or more of methamphetamine, in violation of Title 21, United States Code, Section 841(a)(1), (b)(1)(B) and 846, a conspiracy to possess or distribute pseudoephedrine knowing it was intended to be used to manufacture methamphetamine, in violation of Title 21, United States Code, Section 841(c)(1) and 846, and one count each of possessing or distributing pseudoephedrine knowing it was intended to be used to manufacture methamphetamine, in violation of Title 21, United States Code, Section 841(c)(1).
The evidence at trial showed that between 2010 and 2012, defendants Ross and Kingsley, individually and together with each other and with others, purchased pseudoephedrine pills from pharmacies in Oneida County, and knowingly provided the pills to other co-conspirators who used them on numerous occasions in the manufacture of methamphetamine. Between November 2010 and January 2012, Ross purchased pseudoephedrine pills on 21 separate occasions from Oneida county pharmacies, and Kingsley, at the time Ross’ live-in girlfriend, purchased pseudoephedrine pills on 49 separate occasions. Ross and Kingsley also assisted in the methamphetamine manufacturing process in various ways, including procuring and assembling some of the necessary ingredients and apparatus for the meth “cook,” and providing assistance during the cooking process, in exchange for a portion of the finished product methamphetamine.
Following her incarceration, Kingsley will be placed on supervised release for a period of 4 years. Previously, on June 17, 2014, Judge Suddaby sentenced Ross to a term of imprisonment of 108 month, followed by a term of supervised release of 4 years.
The prosecution arose from the investigative efforts of the City of Oneida Police Department, the New York State Police, and the Drug Enforcement Administration. The case was prosecuted by Assistant United States Attorney Carl Eurenius. For more information, please contact AUSA Eurenius at (315) 448-0672.
Oneida County Man Charged with Obstructing the MailRead the Press Release
SYRACUSE, NEW YORK – United States Attorney Richard S. Hartunian announces that MICHAEL OLIVER, 34, of Waterville, New York, has been charged with two counts of obstructing the United States mail, in violation of 18 U.S.C. § 1701. The two-count Information filed by the United States Attorney’s Office charges Mr. Oliver, a former letter carrier, with obstructing and retarding the passage of mail by opening mail addressed to others and retaining the contents of that mail. If convicted, Mr. Oliver faces up to six months in prison.
An investigation by the U.S. Postal Inspection Service and the Office of Inspector General of the U.S. Postal Service is ongoing. The case is being prosecuted by Assistant United States Attorney Michael F. Perry.
For additional information, contact Executive Assistant U.S. Attorney John G. Duncan at 315- 448-0672.
The charges and allegations announced today are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Olathe Man Sentenced on Federal Computer Fraud ChargeRead the Press Release
KANSAS CITY, KAN. – An Olathe man was sentenced Tuesday to three years in federal prison for computer fraud, U.S. Attorney Barry Grissom said.
Ryan Cauble, 41, Olathe, Kan., pleaded guilty to one count of computer fraud. In his plea, he admitted he committed the crime while he worked for G.E. Consumer Finance, a saving and loan holding company with an office in Merriam, Kan. Cauble sent an email to a vice president of the company claiming there was a security breach and credit card numbers of the company’s customers had been compromised. The email – sent from an address of [email protected] – included 20 credit card numbers. The email stated, “If you want to identify the person who is responsible, message me immediately to discuss compensation for the information.”
A review of the 20 account numbers confirmed that there were fraudulent ATM transactions on those accounts in New York and California. Cauble used various employee credentials to login to the company’s databases and transfer account numbers and information including customers’ names, dates of birth and Social Security numbers in exchange for Bitcoins. He told investigators he sold the account numbers in batches of 40 for $1,000. He said that over time he sold 250 to 300 account numbers.
Grissom commended the U.S. Secret Service and Assistant U.S. Attorney Jabari Wamble for their work on the case.
- Nigerian Convicted in Relation to “Butch” Ballow Fraud Scheme
New Orleans Police Officer, Tracie Medus, Suspended After Being Charged with Theft of Government FundsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that TRACIE MEDUS, age 39, a New Orleans Police Department police officer, was charged yesterday with theft of government funds. According to the New Orleans Police Department, MEDUS has been placed on unpaid emergency suspension pending the outcome of this case.
According to the Bill of Information, from in or about July 2009 to in or about March 2011, MEDUS stole $158,700 from the Louisiana Road Home’s Small Rental Property Program. MEDUS obtained the funds in the form of an award funded by the Department of Housing and Urban Development.
If convicted, MEDUS faces up to ten years incarceration and a fine of up to twice the theft amount.
U.S. Attorney Polite reiterated that a Bill of Information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the Department of Housing and Urban Development - Office of Inspector General and the Federal Bureau of Investigation in investigating this matter and thanked the New Orleans Police Department’s Public Integrity Bureau and the Internal Revenue Service’s Criminal Investigation Division for their assistance. Assistant U.S. Attorney Chandra Menon is in charge of the prosecution.
(Download Bill of Information )