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30 October 2014
Pittsburg Resident Charged in Tax Fraud SchemeRead the Press Release
San Francisco – Ebony Standifer, was charged with conspiracy to file false claims, wire fraud, and aggravated identity theft, announced United States Attorney Melinda Haag and Internal Revenue Service, Criminal Investigation, Acting Special Agent in Charge Thomas McMahon.
According to the indictment, between May 2010 and February 2012, Standifer and others conspired to defraud the IRS by obtaining false and fraudulent refunds. As part of the scheme, Standifer procured the names and Social Security numbers of others and used that information to file false federal income tax returns. The returns falsely claimed that the people listed on the returns earned wages in amounts specified on fictitious Forms W-2 that were filed with the tax returns. The fraudulent refunds were transmitted into bank accounts or onto debit cards. In some instances, Standifer agreed to pay co-conspirators who supplied the identities used in the scheme.
Standifer, of Pittsburg, was arrested this morning and made her initial appearance before the Honorable Elizabeth D. Laporte, United States Magistrate Court Judge. Standifer is scheduled to appear before the Honorable Charles R. Breyer, United States District Court Judge, on Nov. 5, 2014.
The maximum statutory penalty for conspiracy to file false claim, in violation of 18 U.S.C. § 286, is ten years in prison and a fine of $250,000. The maximum penalty for wire fraud, in violation of Title 18, U.S.C § 1343, is 20 years in prison and a fine of $250,000. The maximum penalty for aggravated identity theft, in violation of Title 18, U.S.C. § 1028A, is a mandatory consecutive sentence of two years in prison, and a fine of $250,000 plus restitution. However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant US Attorney Thomas Newman is prosecuting the case. The prosecution is the result of an investigation by the IRS, Criminal Investigation.
Please note that an indictment contains only allegations. As with all defendants, Ebony Standifer must be presumed innocent unless and until she is proven guilty.
(Standifer indictment )
Oklahoma Dental Clinics Pay over $5 Million to Settle Allegations of False Medicaid Claims for Dental Restoration ProcedureRead the Press Release
Oklahoma City, Oklahoma -- Sanford C. Coats, United States Attorney for the Western District of Oklahoma and E. Scott Pruitt, Attorney General for the State of Oklahoma, jointly announce that OCEAN DENTAL, P.C, has agreed to pay $5,050,000 to settle civil claims stemming from allegations that it violated the False Claims Act by submitting false Medicaid claims for work that was either never performed or billed at a higher rate than allowed.
"We continually strive to protect government programs, such as Medicaid, from fraud and abuse by ensuring they are used properly and only by those who are in need and are eligible," said U.S. Attorney Sanford C. Coats. "This case is a good example of the value of coordination between state and federal law enforcement, as well as the coordinated use of parallel proceedings, to achieve a successful civil and criminal resolution."
"Preventing fraud is a priority at the Attorney General's Office because fraud limits the ability of those truly deserving of assistance from receiving the help for which they are eligible," said Attorney General Scott Pruitt. "We appreciate partnering with the U.S. Attorney's Office in order to hold accountable those who would perpetrate fraud against the taxpayers."
Ocean Dental operates dental clinics throughout Oklahoma. As part of its practice, Ocean Dental provides dental services to patients, including children, covered by the Oklahoma Medicaid program.
The United States and Oklahoma contend that Ocean Dental submitted false claims for payment to the Oklahoma Medicaid program for dental restorations during the period from January 1, 2005 through September 30, 2010. Specifically, it is alleged that claims for dental restorations furnished to Medicaid beneficiaries by Ocean Dental’s then-employee Robin Lockwood, D.D.S., were false because they were either (1) upcoded by billing for more restored surfaces than were actually performed or (2) not performed at all.
To resolve the civil allegations brought by the United States and Oklahoma, Ocean Dental agreed to pay $5,050,000. Under the Settlement Agreement, Ocean Dental and Chad Hoecker, D.D.S., owner and president of Ocean Dental, are being released from civil liability related to the allegations. Ocean Dental has also entered into a Corporate Integrity Agreement with the U.S. Department of Health and Human Services, Office of Inspector General which requires, among other things, additional record-keeping, reporting and compliance requirements.
"With this settlement, Ocean Dental has agreed to strict new reporting and compliance requirements that will help guard against billing abuses moving forward," said Winston Whittington, Assistant Special Agent in Charge of the OIG’s Dallas office. "Those who perpetrate fraud threaten the health of both the program and the people who depend on it for their care. We will continue to actively pursue these investigations."
In reaching this settlement, Ocean Dental did not admit liability and the government did not make any concessions regarding the legitimacy of the claims. The agreement allows the parties to avoid the delay, expense, inconvenience, and uncertainty involved in litigating the case.
In a separate related criminal case, Dr. Lockwood pled guilty in July of 2012 to committing health care fraud for her role while employed at Ocean Dental. In November of 2012, Dr. Lockwood was sentenced to serve 18 months in federal prison and ordered to pay $375,672.27 in restitution to Medicaid.
This case was investigated by the Federal Bureau of Investigation, the U.S. Department of Health and Human Services, Office of Inspector General, the Oklahoma Attorney General’s Office Medicaid Fraud Control Unit, and the Oklahoma Healthcare Authority. The case was prosecuted by Assistant United States Attorneys Ronald R. Gallegos and Scott Maule, and Oklahoma Assistant Attorney General Niki S. Batt.
Office on Violence Against Women Announces National Tour to Commemorate the 20th Anniversary of the Violence Against Women ActRead the Press Release
In honor of the 20th anniversary of the Violence Against Women Act, the Department of Justice today announced a nationwide tour of Office on Violence Against Women (OVW) grant recipients. The tour will engage with communities dedicated to ending violence against women though coordinated community response (CCR) teams. OVW launched the tour today with a visit to programs in Brooklyn, New York. OVW and department officials will visit diverse communities across the country through May 2015. Officials will participate in roundtable conversations with local law enforcement, victim service providers, judges, prosecutors and other members of the coordinated community response team.
This tour is an important part of the department’s ongoing effort to prevent and address violence against women. Officials will see how best practices are playing out across the nation – especially in areas such as prosecution, law enforcement, victim services, cultural competency, language access, prevention and public awareness.
“Research shows that efforts to address violence against women are particularly effective when they are combined and integrated into a coordinated community response,” said Principal Deputy Director Bea Hanson of the Office on Violence Against Women. “We know that when police departments, courts, and victim service providers work together to create multi-disciplinary response teams, the quality of victim services and justice system responses are improved, which can influence and change the way communities understand and talk about violence against women.”
Currently, OVW administers 24 grant programs, authorized by the Violence Against Women Act of 1994 and subsequent legislation, designed to develop the nation’s capacity to reduce domestic violence, dating violence, sexual assault and stalking by strengthening services to victims and holding offenders accountable. Since 1995, OVW has awarded more than $5.7 billion to address domestic violence, dating violence, sexual assault and stalking in communities across the country.
The planned national tour sites are: Brooklyn, NY; Oklahoma City, OK; Alameda County, CA; Contra Costa County, CA; Vermont; New Orleans, LA; San Diego, CA; Duluth, MN; Idaho; Maryland; Multnomah County, OR; San Francisco, CA. Additional sites and tour participants will be announced at a future date.
North Carolina Man Pleads Guilty to Attempting to Aid International Terrorist OrganizationRead the Press Release
Assistant Attorney General for National Security John Carlin, U.S. Attorney Ripley Rand for the Middle District of North Carolina and Special Agent in Charge John Strong of the FBI in North Carolina announced today that Donald Ray Morgan pleaded guilty to attempting to provide material support to a designated foreign terrorist organization and possession of firearm by a felon.
Morgan, 44, of Rowan County, North Carolina, pleaded guilty this morning before U.S. District Court Judge Thomas D. Schroeder. Morgan was charged on Oct. 30, 2014, in a bill of information with attempted provision of material support to a foreign terrorist organization. The offense is punishable by a maximum of fifteen years imprisonment and a $250,000 fine.
“Today’s plea represents our continued commitment to confronting those who attempt to travel abroad to support terrorist organizations,” said Assistant Attorney General Carlin. “Preventing individuals from joining ISIL and holding accountable those who attempt to provide material support to the terrorist organization remains one of our highest priorities.”
“Today's plea is a sad reminder that those who wish to aid foreign terrorist organizations can come from any community and from any background,” stated U.S. Attorney Rand. “We will continue to do everything we can to work effectively with our law enforcement partners and protect innocent people from terrorist activity, whether here in the United States or abroad.”
“Donald Ray Morgan proved himself to be a threat to national security,” said Special Agent in Charge Strong. “He traveled overseas with intentions to join the violent terrorist group, ISIL in Syria. American citizens who support terrorist organizations must be held accountable for their actions.”
According to court documents, Morgan knowingly attempted to provide support and resources beginning in January 2014 until on or about Aug. 2, 2014, including his own services, to al-Qa’ida in Iraq, also known as Islamic State of Iraq and the Levant (ISIL) and the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization. On at least one occasion Morgan unsuccessfully attempted to travel from Lebanon to Syria to join ISIL/ISIS. Morgan also frequently used social media and an interview with an American journalist to express his support for ISIL/ISIS and violent terrorist activities.
Morgan was initially arrested on Aug. 2, 2014, at JFK International Airport in New York City on a federal indictment for possession of a firearm by a felon. The firearm offense occurred in January 2012. Possession of a firearm by a felon is punishable by a maximum of ten years imprisonment a $250,000 fine.
Sentencing is set for Feb. 18, 2015.
edThe investigation was conducted by the FBI’s Charlotte Division, and Resident Agency Joint Terrorism Task Force (JTTF). The Greensboro JTTF consists of the following agencies: FBI, Greensboro Police Department, Guilford County Sheriff’s Office, High Point Police Department and the Winston-Salem Police Department. The prosecution is being handled by Assistant U.S. Attorney Graham Green with the assistance of the Counterterrorism Section of the Justice Department’s National Security Division.
North Carolina Man Pleads Guilty to Attempting to Aid International Terrorist OrganizationRead the Press Release
GREENSBORO, N.C. – John Carlin, Assistant Attorney General for National Security, Ripley Rand, United States Attorney for the Middle District of North Carolina and John Strong, Special Agent in Charge of the FBI in North Carolina announced today that Donald Ray Morgan pleaded guilty to attempting to provide material support to a designated foreign terrorist organization and possession of firearm by a felon.
Morgan, 44, of Rowan County, North Carolina, pleaded guilty this morning before United States District Court Judge Thomas D. Schroeder. Morgan was charged on Oct. 30, 2014, in a bill of information with attempted provision of material support to a foreign terrorist organization. The offense is punishable by a maximum of fifteen years imprisonment and a $250,000 fine.
“Today’s plea represents our continued commitment to confronting those who attempt to travel abroad to support terrorist organizations,” said Carlin. “Preventing individuals from joining ISIL and holding accountable those who attempt to provide material support to the terrorist organization remains one of our highest priorities.”
"Today's plea is a sad reminder that those who wish to aid foreign terrorist organizations can come from any community and from any background," stated Rand. "We will continue to do everything we can to work effectively with our law enforcement partners and protect innocent people from terrorist activity, whether here in the United States or abroad."
"Donald Ray Morgan proved himself to be a threat to national security,” said Strong. “He traveled overseas with intentions to join the violent terrorist group, ISIL in Syria. American citizens who support terrorist organizations must be held accountable for their actions.
According to court documents, Morgan knowingly attempted to provide support and resources beginning in January 2014 until on or about Aug. 2, 2014, including his own services, to al-Qa’ida in Iraq, also known as Islamic State of Iraq and the Levant (ISIL) and the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization. On at least one occasion Morgan unsuccessfully attempted to travel from Lebanon to Syria to join ISIL/ISIS. Morgan also frequently used social media and an interview with an American journalist to express his support for ISIL/ISIS and violent terrorist activities.
Morgan was initially arrested on Aug. 2, 2014, at JFK International Airport in New York City on a federal indictment for possession of a firearm by a felon. The firearm offense occurred in January 2012. Possession of a firearm by a felon is punishable by a maximum of ten years imprisonment a $250,000 fine.
Sentencing is set for Feb. 18, 2015.
The investigation was conducted by the Federal Bureau of Investigation, Charlotte Division, and Resident Agency Joint Terrorism Task Force (JTTF). The Greensboro JTTF consists of the following agencies: Federal Bureau of Investigation, Greensboro Police Department, Guilford County Sheriff’s Office, High Point Police Department and the Winston-Salem Police Department. The prosecution is being handled by Assistant United States Attorney Graham Green with the assistance of the Counterterrorism Section of the Justice Department’s National Security Division.
New York Man Guilty of Role in Extortion SchemeRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that a federal jury in Hartford jury has found EDWARD MEMOLI, 65, of Unadilla, N.Y., guilty of federal extortion charges.According to the evidence at trial, between approximately September 2010 and December 2011, MEMOLI conspired with Joseph Casolo of Norwalk to extort money from a small-business owner in Fairfield County by impersonating organized crime figures. Casolo threatened the victim in person, in phone conversations and in text messages using multiple personas, repeatedly stating or implying that if the victim failed to make the extortion payments, the victim, the victim’s spouse, and the victim’s daughter would be harmed with violence. Casolo enlisted the assistance of MEMOLI who identified himself as “Lorenzo,” the organized crime family’s “enforcer,” and made at least 20 threatening calls to the victim at Casolo’s direction. At the time, MEMOLI was living in Greenville, South Carolina.
MEMOLI specifically threatened to cause the business owner’s daughter, who was pregnant, to have a miscarriage.
The investigation revealed that the victim made more than $200,000 in cash payments to Casolo as a result of these threats. Casolo shared a portion of these funds with MEMOLI by sending them to him via Western Union money transfer.
Casolo and MEMOLI also targeted another Fairfield County resident for extortion. Posing as “Lorenzo,” MEMOLI called the victim both on his cellular telephone and at his place of work, and made veiled threats to the victim’s wife and two children.
Law enforcement learned of Casolo and MEMOLI only after information regarding their extortion scheme came to light on a court-authorized wiretap investigating organized crime activity in Fairfield County.
MEMOLI was found guilty today of one count of conspiracy to obstruct interstate commerce by extortion, and one count of aiding and abetting the obstruction of interstate commerce by extortion, both of which carry a maximum term of imprisonment of 20 years. He is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant on January 20, 2015.
Casolo pleaded guilty to one count of extortion and, on October 24, 2013, he was sentenced to 57 months of imprisonment.
This matter was investigated by the FBI Fairfield County Organized Crime Task Force and the Stamford Police Department, with the assistance of the FBI’s Binghamton Field Office. The case is being prosecuted by Assistant U.S. Attorney Hal Chen and Special Assistant U.S. Attorney Charles Rombeau.
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(203) 821-3722 [email protected]New Jersey Man Sentenced to Three Months in Prison in Manhattan Federal Court for Hiding over $1 Million in Secret Swiss Bank AccountRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that VIKTOR KORDASH was sentenced today to three months in prison for willfully failing to file Reports of Foreign Bank and Financial Accounts (“FBARs”) with the IRS regarding a secret Swiss bank account that he maintained and controlled at Wegelin & Co. (“Wegelin”), a Swiss bank formerly headquartered in St. Gallen, Switzerland, which separately pled guilty in January 2013 to assisting U.S. taxpayers in maintaining undeclared accounts. During the time that KORDASH maintained his undeclared account at Wegelin, KORDASH received tens of thousands of dollars in cash distributions from his undeclared account. KORDASH pled guilty in May 2014 before U.S. District Judge Ronnie Abrams, who also imposed today’s sentence.
According to the Information filed in Manhattan federal court, other court documents, and statements made in connection with KORDASH’s guilty plea and sentencing:
In the early 1980s, KORDASH opened an account at Wegelin. At that time, KORDASH was living in Russia and was a Russian citizen. In 1984, however, KORDASH emigrated to the United States, and in 1986, KORDASH applied for and was granted citizenship in the United States. After immigrating to the United States, and after becoming a United States citizen, KORDASH continued to maintain his account at Wegelin, and failed to declare it to the IRS, up until approximately November 2010. KORDASH used the undeclared account as an operating and investment account for his antique reproductions business, which he operated out of New York, New York.
During the time period that KORDASH maintained his undeclared account at Wegelin, capital gains and losses were generated in the account from KORDASH’s investments in foreign securities. Between 2007 and 2010, the high value of KORDASH’s undeclared account was over $1.5 million. Further, between at least April 2008 and June 2010, KORDASH received a series of cash distributions from the undeclared account from Wegelin’s correspondent account in Stamford, Connecticut, which totaled over $168,000. In November 2010, KORDASH closed the undeclared account and transferred the balance to his wife. The balance of the undeclared account at the time of its closure and transfer was nearly $1 million.
For each of the calendar years from at least 1986 through 2010, Kordash failed to file an FBAR with the IRS, as he was required to do, disclosing his signatory or other authority over his undeclared account at Wegelin. He was required to identify the financial institution with which his account was held, the type of account, the account number, and the maximum value of the account during the calendar year for which the FBAR was being filed. He willfully failed to do so.
In addition to the sentence of three months in prison, KORDASH, 64, of Cliffside Park, New Jersey, was also sentenced to three years’ supervised release, and ordered to pay back taxes of over $268,000 and a civil penalty of over $750,000.
Mr. Bharara praised the outstanding efforts of IRS-CI in the investigation. Mr. Bharara also thanked U.S. Department of Justice’s Tax Division for their assistance in the investigation.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Sarah E. Paul and Jason H. Cowley are in charge of the prosecution.
Nashville Man Indicted for Bankruptcy FraudRead the Press Release
Michael Ross Smith, 43, of Brentwood, Tenn., was indicted on October 22, 2014, by a federal grand jury in Nashville, on three counts of bankruptcy fraud, announced David Rivera, U.S. Attorney for the Middle District of Tennessee .
The indictment alleges that Smith filed for bankruptcy and then committed bankruptcy fraud by providing false testimony, under oath, during an examination conducted by the U.S. Trustee. Smith testified that he had been a temporary employee of a Nashville business and also testified that he was no longer employed by the business. According to the indictment, Smith was in fact employed by the business as the President of Sales and earned an annual base salary of $150,000. The indictment also charges Smith with fraudulently withholding documents related to his employment and financial affairs, in violation of an order issued by the Bankruptcy Court for the Middle District of Tennessee.
The U.S. Trustee Program is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigation to enforce the bankruptcy laws.
If convicted, Smith faces a maximum penalty on each count of five years in prison, a fine of $250,000 and a $100 mandatory assessment fee.
This investigation was conducted by the FBI with assistance from the U.S. Trustee. The government is represented by Assistant U.S. Attorney Stephanie N. Toussaint and Special Asst. U.S. Attorney Lloyd E. Mueller.
An indictment is merely an accusation and is not evidence of guilt. The defendant is presumed innocent unless and until proven guilty in a court of law.
Mission Woman Sentenced for Assaulting A Federal EmployeeRead the Press Release
United States Attorney Brendan V. Johnson announced that a Mission, South Dakota, woman charged with Assaulting, Resisting, or Impeding a Federal Employee pled guilty to and was sentenced on October 23, 2014, by U.S. Magistrate Judge Mark A. Moreno.
Twila Two Strike, age 56, was sentenced to 6 months of unsupervised probation, and $25 to the Federal Crime Victims Fund.
The conviction stems from an incident that took place on April 14, 2014, when a Rosebud Sioux Tribe Realty Officer went to Two Strike’s home to investigate community complaints regarding a padlocked gate impeding cars from accessing the Blue Thunder Cemetery. While the Realty Officer was speaking with a member of the Two Strike’s family through a screen door, Two Strike approached him from outside his peripheral line of vision and threatened to physically assault him if he did not get off their land. Two Strike swung her hand toward the Realty Officer in an attempt to strike him.
The investigation was conducted by the Rosebud Sioux Tribe Law Enforcement Services. The case was prosecuted by Assistant U.S. Attorney Tim Maher.
Two Strike was released.
Mission Man Sentenced for Assault with A Dangerous WeaponRead the Press Release
United States Attorney Brendan V. Johnson announced that a Mission, South Dakota, man convicted of Assault with a Dangerous Weapon was sentenced on October 27, 2014, by U.S. Judge Roberto A. Lange.
Mark Antoine, age 23, was sentenced to 24 months in custody, 3 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Antoine was indicted for Assault with a Dangerous Weapon and Assaulting, Resisting, Opposing, and Impeding a Federal Officer by a federal grand jury on December 10, 2013. He pled guilty to Assault with a Dangerous Weapon on July 27, 2014.
On October 29, 2013, Antoine was at a home on the Rosebud Indian Reservation and got upset at his relative, the victim. Antoine assaulted the victim, including knocking her down, attempted to choke her, and he also menaced her with an object. While the victim was on the floor, he slammed an item, presumably a can, against the floor next to her head. When the victim got up, Antoine pushed her onto a couch and menaced her with a screw driver, stabbing the screw driver into the couch next to her body. Antoine also kicked the victim in the chest while wearing shoes. The victim tried to call police for help, but Antoine broke the phone.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Tim Maher prosecuted the case.
Antoine was immediately turned over to the custody of the U.S. Marshals Service.
Miami-Dade Resident Sentenced in Treasury Check Cashing and Stolen Identity SchemeRead 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 Victor Diroggiero, 45, of Miami, was sentenced today to 101 months in prison, followed by three years of supervised release and ordered to pay $745,000 in restitution.
Diroggiero previously pled guilty to one count of theft of government money, in violation of Title 18, United States Code, Section 641, and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A.
According to court documents, from April through August 2009, Diroggiero went to Fast Cash Check Cashing, a check cashing store in North Miami, and cashed over one hundred stolen United States Department of Treasury checks. The checks were social security checks, thrift savings program checks and tax refund checks issued to different, real persons who did not authorize Diroggiero to possess the checks.
Mr. Ferrer commended the investigative efforts of IRS-CI and USSS. The case was prosecuted by Assistant U.S. Attorneys Jonathan E. Kobrinski, Monique Botero, Kurt Lunkenheimer and Robert Watson.
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.
Manchester Man Pleads Guilty to Social Security FraudRead the Press Release
BOSTON – A Manchester man pleaded guilty today to stealing more than $160,000 in government benefits.
Charles Gerbutavich, 70, pleaded guilty before U.S. District Judge Rya W. Zobel to theft of public money. In October 2014, Gerbutavich was charged in a felony information. Sentencing is scheduled for Feb. 3, 2015.
Gerbutavich’s father died in 1993, but his monthly Social Security benefits continued to be directly deposited into a joint bank account in his and Gerbutavich’s names. From 1993 to 2014, Gerbutavich continued to receive his deceased father’s benefits totaling $161,587.
This case was brought as part of an ongoing effort by the U.S. Attorney’s Office in partnership with the Social Security Administration to investigate and prosecute the posthumous fraud of Social Security benefits. In many of these cases, family members, knowing they are not entitled to government benefits, continue to withdraw and spend the funds after a relative has died. Since October 2013, the U.S. Attorney’s Office has prosecuted several such cases involving a total of more than $1 million in stolen government money.
In October 2014, Mary Murphy of Dorchester was sentenced to 18 months of home confinement, 10 hours per week of community service, and was ordered to pay a fine of $40,000 and $331,630 in restitution – which she paid in full in October. Murphy pleaded guilty in connection with taking her deceased mother’s Social Security and Civil Service retirement benefits, which were directly deposited into a joint bank account after her death in 1977.
Also in October 2014, Richard Oldham of Old Orchard Beach, Maine, was sentenced to four months in prison, six months of home confinement, and was ordered to pay $195,862 in restitution for endorsing Social Security checks in his deceased mother’s name following her death in 1993.
In September 2014, Frances Kenney Moseley of Boston, pleaded guilty to stealing over $220,000 in Social Security benefits, which were directly deposited into her father’s bank account after his death in 2003. Moseley is scheduled to be sentenced on Dec. 22, 2014.
In August 2014, George Bergstrom of Shrewsbury, was sentenced to one year of probation and was ordered to pay $57,948 in restitution – which he paid in full in August – for taking his deceased mother’s Social Security benefits, which were directly deposited into a joint bank account after her death in 2009.
In October 2013, John Flaherty of Newburyport, was sentenced to 10 months in prison and was ordered to pay $168,830 in restitution for taking his deceased mother’s Social Security benefits, which were directly deposited into a joint bank account after her death in 1993.
United States Attorney Carmen M. Ortiz and Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division, made the announcement today. The Gerbutavich case is being prosecuted by Special Assistant U.S. Attorney Timothy Landry of Ortiz’s Major Crimes Unit.
Man Sentenced to Prison for More Than 12 Years for CarjackingsRead the Press Release
CHARLOTTE, N.C. – U.S. District Judge Robert J. Conrad, Jr. sentenced a Charlotte man today on charges stemming from two 2012 carjackings committed in Charlotte, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. Antonio Cordiara McClary, 25, of Charlotte, was sentenced to 148 months in prison, followed by three years of supervised release.
Wayne L. Dixie, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, and Chief Rodney D. Monroe of the Charlotte-Mecklenburg Police Department (CMPD) join U.S. Attorney Tompkins in making today’s announcement.
According to court documents and today’s sentencing hearing:
McClary carjacked a woman on January 5, 2012, and forced her to drive to her bank and withdraw $500 from an ATM. During the carjacking, McClary pointed what appeared to be a firearm at the victim’s head. Following the forced withdrawal of money from the ATM, McClary forced the victim into the trunk of her 2010 Honda Accord while he drove around for thirty minutes. McClary later abandoned the car with the victim locked in the trunk and told her not to get out. An hour later, the victim was able to escape the trunk and call police.
On January 20, 2012, McClary confronted a second woman who was getting out of her car in her apartment parking lot and forced her back into her car with what appeared to be a firearm and a knife. McClary took the victim’s car keys and drove the woman to the bank ATM, forcing her to withdraw $500. Later, while driving from the ATM, McClary threatened to “splatter the victim’s brains all over the windshield.” Following the carjacking, McClary abandoned the victim in her car and told her not to report the carjacking to the police because he knew where she lived and said he would come back and kill her. In both incidents, what appeared to be a firearm was later determined to have been an air rifle that fired pellets. In April 2013, McClary pleaded guilty to two counts of carjacking.
In announcing the sentence, Judge Conrad stated that the offenses were a “heinous couple of carjackings that caused unfathomable terror to the victims.” Judge Conrad noted that he imposed the 148 month sentence to protect the public from further crimes of the defendant.
The defendant has been in federal custody and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. Federal sentences are served without the possibility of parole.
The investigation was handled by ATF and CMPD. The prosecution for the government was handled by Assistant U.S. Attorney Robert Gleason of the U.S. Attorney’s Office in Charlotte.
Malheur County Armed Career Criminal Sentenced to 15 Years in Federal Prison for Possessing a Firearm and AmmunitionRead the Press Release
EUGENE, Ore. – Ramiro Martinez Tristan, 40, of Ontario, Oregon, was sentenced yesterday by U.S. District Chief Judge Ann Aiken to 15 years in federal prison for unlawful possession of a firearm and ammunition. Upon his release from prison, Tristan will be on supervised release for five years.
U.S. Attorney Amanda Marshall praised the sentence imposed on Tristan stating, “Ontario and Eastern Oregon are better places with Ramiro Tristan removed from the community. This case is the result of the excellent collaboration between the Ontario Police Department, the High Desert Drug Enforcement Task Force, Oregon State Police, the Malheur County District Attorney’s Office, ATF, and my office. Coordination between federal and state partners is key to prosecuting the most dangerous criminals and keeping our communities safe, and my office is committed to working with our local partners to achieve these results.”
On September 10, 2013, Ontario, Oregon police officers executed a search warrant at an apartment where Tristan was staying and found, among other things, a stolen .40 caliber handgun next to Tristan’s identification card. A search of recovered cell phones revealed photographs of Tristan displaying bundles of cash and holding a handgun. Officers booked Tristan into the Malheur County Jail. Officials later learned that around the time of his September 10 arrest, Tristan had secreted methamphetamine in his rectum, brought the methamphetamine into the Malheur County Jail, and distributed it to other inmates.
Tristan has a significant criminal history with prior felony convictions for multiple assaults, felon in possession of a firearm, and burglary in the second degree. Under federal law, any person who possesses a firearm or ammunition after being previously convicted of three violent felonies or felony drug trafficking crimes is an Armed Career Criminal and faces a 15-year mandatory minimum sentence.
Assistant U.S. Attorney Nathan J. Lichvarcik prosecuted this case.
Long Island Attorney Charged with Forging Signature of Bankruptcy JudgeRead the Press Release
An indictment was unsealed today in federal court in the Eastern District of New York charging Jeffrey I. Stark, Esq., with forgery of the signature of a judge of the United States Bankruptcy Court for the Eastern District of New York. Stark is alleged to have forged the signature of a judge on a purported order in a case in which he had been retained to file for bankruptcy. However, Stark never commenced any action with the bankruptcy court on behalf of his client. Stark was arrested and his initial appearance was held before United States Magistrate Judge Lindsay at the federal courthouse in Central Islip.
The charge and Stark’s arrest were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office.
“As alleged, Stark violated his ethical obligation to his clients and committed a serious crime which strikes at the foundation of our judicial system,” stated United States Attorney Lynch. “Attorneys are expected to uphold the law, not to violate it.” Ms. Lynch extended her grateful appreciation to the FBI.
FBI Assistant Director-in-Charge Venizelos stated, “As alleged, Stark’s conduct demonstrated a lack of respect for the legal system and those who serve it. As officers of the court, attorneys are held to a higher standard and are expected to uphold the law and its ethics. The FBI is committed to investigating corrupt lawyers who commit fraudulent practices.”
If convicted, the defendant faces a maximum sentence of 5 years of imprisonment. The charges in the indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being prosecuted by Assistant United States Attorney Allen Bode.
The Defendant:
JEFFREY I. STARK
Age: 51
Levittown, New York
E.D.N.Y. Docket No. 14-CR-572 (ADS)(ARL)
Local Coaches Embrace Domestic Violence AwarenessRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Tara Tighe, Public Affairs SpecialistWHEELING, WEST VIRGINIA – Throughout October, National Domestic Violence Awareness Month, the U.S. Attorney’s Office has partnered with the Wheeling YWCA to promote Coaching Boys into Men, a coach-to-athlete training program designed to promote domestic violence awareness and healthy relationships, United States Attorney William J. Ihlenfeld, II, announced today.
The Coaching Boys into Men program, administered by Futures Without Violence, provides high school athletic coaches with resources to promote respectful behavior among their players and help prevent relationship abuse, harassment, and sexual assault. The program was launched in 2001 as a national public service announcement campaign in partnership with the Advertising Council.
“This is a critical message for student athletes and all young adults in our community,” stated Ihlenfeld. “Young people represent the future of our economy and learning to build healthy relationships is vital for a thriving community and workforce. Student athletes, in particular, are expected to play aggressively and win games. This program stresses the importance of tempering that aggression and promoting respect both on and off the field. We thank the football coaches at Wheeling Central Catholic High School, Brooke High School, and Wheeling Park High School for allowing us to speak with the teams and kick off this initiative. We look forward to introducing additional programing in the coming months.”
“We need to end the cycle of domestic violence,” said Patricia Flanigan, Family Violence Prevention Program Director for the Wheeling YWCA. “During a recent meeting of the Ohio Valley Athletic Conference, I met with local athletic directors and we are thrilled that many of them are embracing the opportunity to play hard and win games while developing their players into compassionate, respectful men. John Marshall High School has committed to implement the program and we look forward to collaborating with other local schools to foster this important message.”
Anyone interested in additional information on Coaching Boys into Men is encouraged to visit www.coachescorner.org.
Laurel Woman Admits to Stealing Almost $300,000 in Social Security Benefit Checks over A 17 Year PeriodRead the Press Release
In Unrelated Case, Baltimore Man Admits Stealing $127,000 in SSA Benefits Over 16 Years
Greenbelt, Maryland –Yvonne Isadora Whiteman, age 69, of Laurel, Maryland pleaded guilty today to theft of government property.
The plea agreement was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Michael McGill of the Social Security Administration (SSA) - Office of Inspector General, Philadelphia Field Division.According to her plea agreement, Whiteman’s mother received monthly social security retirement benefits based on her earnings record. Whiteman’s mother moved to Trinidad, West Indies in the summer of 1997 to live with Whiteman’s sister, and died there on October 8, 1997. Her death was not reported to SSA.
At the time of her mother’s death, the benefits were paid by direct deposit to a joint bank account held by Whiteman and her mother. Whiteman sent the benefits to her sister in Trinidad during the short period her mother was alive and living there.
In 2013, SSA determined that because Whiteman’s mother had not used Medicare services, the mother was likely deceased. On December 13, 2013, Whiteman met with a SSA specialist and provided a forged death certificate purporting to show that her mother died on October 8, 2013. When the SSA specialist later advised Whiteman that she would use the consular process to obtain the true death certificate, Whiteman admitted that she had lied about her mother’s date of death.
SSA paid a total of $299,951 from October 8, 1997 until October 2013 when the benefits were terminated. At the time the benefits were terminated, the mother’s monthly benefit amount was $1,847. Whiteman used all but approximately $4,000 of her mother’s benefits to pay for her own personal expenses.
Whiteman faces a maximum sentence of 10 years in prison. Whiteman has agreed to pay restitution of $299,951. U.S. District Judge Deborah K. Chasanow scheduled sentencing for February 2, 2015, at 11:30 a.m.
In an unrelated case, Allen Thomas Wilson, age 72, of Baltimore, pleaded guilty today in U.S. District Court in Baltimore, to theft of government property in connection with a similar scheme in which he spent retirement benefits paid by SSA for the benefit of his mother for his personal use. From the time of his mother’s death on September 19, 1997, until January 2014, when benefits were terminated, SSA paid a total of $127,700. Wilson has agreed to pay restitution in this amount. U.S. District Judge Ellen L. Hollander has scheduled sentencing for December 19, 2014, at 9:15 a.m.
United States Attorney Rod J. Rosenstein praised the Social Security Administration - OIG for its work in the investigations, and thanked Special Assistant U.S. Attorney Paul K. Nitze, assigned from the Social Security Administration, who is prosecuting these cases.
Lake Charles Woman Sentenced to 14 Months in Prison for Stealing more than $250,000 from EmployerRead the Press Release
LAKE CHARLES, La. –United States Attorney Stephanie A. Finley announced today that a Lake Charles woman was sentenced to 14 months in prison for stealing more than a quarter of a million dollars from her employer.
Kristen Brady, 47, of Lake Charles, was sentenced by U.S. District Judge Patricia Minaldi for one count of bank fraud. She was also sentenced to complete 50 hours of community service and ordered to pay $255,324.04 in restitution. According to the evidence presented at the July 24, 2014 guilty plea, Brady worked for a Lake Charles rental company as a bookkeeper for 12 years before her employment was terminated in November 2013. It was later discovered that she had forged authorizing signatures on more than 200 checks to her benefit in the company’s name, and in the process, received $255,324.04 of which she was not entitled.
The U.S. Secret Service and the Calcasieu Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Howard C. Parker prosecuted the case.
Kittery Man Sentenced for Structuring and Illegally Purchasing LobstersRead the Press Release
Contact: Julia M. Lipez
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that John
W. Price, 59, of Kittery, Maine, was sentenced yesterday in U.S. District Court by Judge D.
Brock Hornby to 45 days in prison for structuring currency transactions and for illegally purchasing lobsters. Price was also fined $100,000.Court records reveal that between 2008 and 2010, Price, the owner of J.P.’s Shellfish, a seafood distributor in Eliot, Maine, purchased lobsters for cash from a dock employee of the
Spruce Head Fisherman’s Co-op in South Thomaston, Maine. Price directed his employees who withdrew the cash from the J.P.’s Shellfish business bank account not to withdraw more than
$10,000 in cash at any one time, so as to avoid federal regulations requiring banks to file reports involving cash transactions of more than $10,000. The dock employee who sold the lobsters to
Price was not a licensed seafood dealer, making the sales illegal under Maine law. Under the federal Lacey Act, it is illegal to purchase lobsters in violation of state law.“This scheme to transact enormous amounts of American lobster on the black market undermines the ability of the National Oceanic and Atmospheric Administration (NOAA) and the State of Maine to sustainably manage this fishery, which is so critical to Maine’s overall economy,” said NOAA Special Agent in Charge Logan Gregory. “The Office of Law
Enforcement will continue to work with its state and federal partners to expose these schemes and hold the participants accountable.”The charges are the result of a collaborative investigation conducted by the Internal
Revenue Service, NOAA, Office of Law Enforcement, and the Knox County Sheriff’s Office.Kingston Man Sentenced to A 48 Month Term of Imprisonment for Cocaine DistributionRead the Press Release
The United States Attorney's Office for the Middle District of Pennsylvania announced that yesterday Senior United States District Court Judge A. Richard Caputo has sentenced Thomas Ceprish, age 32, of Kingston, Pennsylvania, to 48 months’ imprisonment for distributing cocaine on numerous occasions between 2008 and April 2, 2013.
According to United States Attorney Peter Smith, Ceprish obtained cocaine in Wilkes-Barre for distribution to others in the Luzerne County area. On June 18, 2014, Ceprish appeared in federal court and pleaded guilty to the charge.
In addition to the 48-month term of imprisonment, Judge Caputo ordered that Ceprish be placed under the supervision of the United States Probation Office for a period of three years following the service of his prison sentence.
The case was investigated by the Federal Bureau of Investigation; the Pennsylvania Attorney General’s Office; and the Luzerne County District Attorney’s Office. Assistant United States Attorney John Gurganus prosecuted the case.
Justice Department Requires Divestitures in Media General Inc. Acquisition of LIN Media LLCRead the Press Release
The Department of Justice announced today that it will require Media General Inc. to divest WVTM-TV(NBC), located in the Birmingham, Alabama, Designated Market Area (DMA); WJCL-TV (ABC) and WTGS (FOX), both located in the Savannah, Georgia, DMA; WALA-TV (FOX), located in the Mobile, Alabama/Pensacola, Florida, DMA; WJAR-TV (NBC), located in the Providence, Rhode Island/New Bedford, Massachusetts, DMA; and WLUK-TV(FOX) and WCWF-TV (CW), both located in the Green Bay/Appleton, Wisconsin, DMA, in order to proceed with its acquisition of LIN Media LLC for $1.5 billion. The department said that without the required divestitures, prices for broadcast television spot advertising would likely increase to advertisers in the DMAs.
The Justice Department’s Antitrust Division filed a civil antitrust lawsuit today in the U.S. District Court for the District of Columbia to block the proposed transaction. At the same time, the department filed a proposed settlement that, if approved by the court, would resolve the competitive concerns alleged in the lawsuit.
“Media General’s stations and LIN’s stations compete head-to-head in the sale of broadcast television spot advertising in several markets around the country, and this competition benefits advertisers and, ultimately, consumers,” said Bill Baer, Assistant Attorney General for the Antitrust Division. “The divestitures required by the department will ensure that these stations remain vigorous competitors in their designated market areas.”
Under the terms of the proposed settlement, Media General and LIN must divest assets used in the operation of WVTM-TV and WJCL-TV to Hearst Television Inc.; WALA-TV to Meredith Corporation; and WJAR-TV, WLUK-TV, WCWF-TV, and WTGS to Sinclair Broadcast Group Inc., or to other acquirers approved by the United States.
Media General, a Virginia corporation with its headquarters in Richmond, Virginia, owns and operates 31 broadcast television stations in 29 metropolitan areas, including broadcast television stations in each of the DMA Markets.
LIN, a Delaware corporation with its headquarters in Austin, Texas, owns and operates, or provides programming, operating, or sales services to more than 50 stations in 23 metropolitan areas, including broadcast television stations in each of the DMA Markets.
As required by the Tunney Act, the proposed settlement, along with a competitive impact statement, will be published in the Federal Register. Any person may submit written comments concerning the proposed settlement during a 60‑day comment period to David C. Kully, Chief, Litigation III Section, Antitrust Division, U.S. Department of Justice, 450 Fifth Street, N.W., Suite 4000, Washington, DC 20530. At the conclusion of the 60‑day comment period, the U.S. District Court for the District of Columbia may approve the proposed settlement upon finding that it is in the public interest.
Jemez Pueblo Man Sentenced to Eight Years for Federal Child Sexual Abuse ConvictionRead the Press Release
ALBUQUERQUE – Irving Shendo, 59, a member of the Jemez Pueblo, was sentenced yesterday afternoon to eight years in federal prison followed by five years of supervised release for his aggravated child sexual abuse conviction. Shendo will be required to register as a sex offender after he completes his prison sentence.
Shendo was arrested in July 2013, based on a criminal complaint alleging that he engaged in a sexual act with a Jemez Pueblo child under the age of 12 years. According to court filings, Shendo sexually abused the child victim in August 2008 in a residence located on Jemez Pueblo, N.M., but his criminal conduct was first reported to law enforcement authorities in April 2013.
On June 20, 2014, Shendo admitted that on Aug. 1, 2008, he engaged in a sexual act with the child victim. He further acknowledged committing the crime in Jemez Pueblo.
This case was investigated by the Albuquerque office of the FBI, the Jemez Pueblo Tribal Police Department and the Albuquerque Police Department, and was prosecuted by Assistant U.S. Attorney Presiliano A. Torrez.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
James Glen Murphy, Jr. Sentenced to Twenty-Seven Years in Prison for Producing Child PornographyRead the Press Release
GREENEVILLE, Tenn.—On Oct. 29, 2014, James Glen Murphy, Jr., 31, of Bristol, Tenn., was sentenced to serve 27 years in prison by the Honorable J. Ronnie Greer, U.S. District Judge. The court also imposed a life term of supervised release with special conditions of release.
In July 2014, Murphy pleaded guilty to a federal grand jury indictment charging him with producing, distributing, and possessing child pornography. In sentencing Murphy, Judge Greer noted the seriousness of the offenses Murphy committed including: the fact that he victimized two identified children; the long-term impact on the two child victims; that in addition to the child pornography Murphy produced, the officers found more than 12,000 still images and more than 80 videos of child pornography; the very harsh impact that such crimes have on the fabric of our community; the need to protect the community; the high risk of recidivism for such crimes; and the need for federal courts to send the message that these are serious crimes which will be punished severely.
The indictment and subsequent conviction of Murphy were the result of an investigation conducted by the Federal Bureau of Investigation and the Bristol Tennessee Police Department. Assistant U.S. Attorney Helen Smith represented the United States.
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.
Inglewood Gang Member Sentenced to Nearly 5 Years in Prison for Running Identity Theft Ring the Produced Counterfeit Credit CardsRead the Press Release
LOS ANGELES – An Inglewood gang member was sentenced this afternoon to 57 months in federal prison for running an identity theft ring that victimized scores of individuals and merchants in three states, resulting in an estimated $1 million in financial losses.
Lancelot Joshua Wilburn, who used the moniker “El Dog,” 33, a member of the Queen Street Bloods street gang, was sentenced today by United States District Judge Dolly M. Gee. In addition to the prison term, Judge Gee ordered the defendant to pay just over $50,000 in restitution.
Wilburn pleaded guilty in June to four felony counts: possessing counterfeit or unauthorized access devices (credit cards), possessing device-making equipment, using counterfeit access devices and aggravated identity theft.From January 2011 to May 2012, Wilburn and his co-conspirators used stolen account numbers, counterfeit credit cards, and fake drivers’ licenses to rent cars and purchase luxury items in California, Nevada and Kansas. Wilburn and those acting at his direction converted merchandise into cash by repeatedly exchanging fraudulently purchased items for other luxury goods, gift cards and cash refunds.
The stolen personal identifying information came from stolen medical intake forms, Russian computer hackers and other sources. According to court records, authorities executed a search warrant on Wilburn’s apartment in May 2012. Inside the residence, agents found a counterfeit credit card manufacturing plant, hundreds of stolen medical profiles, counterfeit credit cards, counterfeit currency, counterfeit drivers licenses, stolen credit reports, 770 stolen credit card numbers and 166 counterfeit American Express Traveler’s Checks.
Wilburn continued his criminal activity even after being arrested in Kansas in 2012 in relation to the use of counterfeit credit cards. While in custody there, Willburn threatened to kill a cooperating witness, and he directed others to destroy evidence and remotely “wipe” his seized cell phones. While he was free on bond in the Kansad case, Wilburn directed associates to steal more medical profiles, and to raise additional money for his defense by using the counterfeit credit cards at Nordstroms, Saks Fifth Avenue and other retailers.
In a sentencing memo filed with the court, prosecutors wrote that Wilburn “has mocked the criminal justice system by threatening violence against cooperators, attempting to bribe witnesses, and destroying evidence.”The case against Wilburn was the result of an investigation by the United States Secret Service. The United States Department of Housing and Urban Development – Office of Inspector General; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Inglewood Police Department; the Los Angeles Police Department; the Los Angeles County Sheriff’s Department; and the California Highway Patrol provided assistance.
Release No. 14-143
Indianapolis Man Sentenced to 10 Years in Prison for Ecstasy TraffickingRead the Press Release
JOHNSTOWN, Pa. – A resident of Indianapolis has been sentenced in federal court to 120 months in prison and three years supervised release on his conviction of violating federal narcotics laws, United States Attorney David J. Hickton announced today.
United States District Judge Kim R. Gibson imposed the sentence on Charles J. Gooch, Jr., 42, of Indianapolis, Indiana.
According to information presented to the court, on May 25, 2007, Gooch and a co-defendant possessed with the intent to distribute a quantity of 3,4-methylenedioxyamphetamine, commonly known as ecstasy.
Assistant United States Attorney Stephanie L. Haines prosecuted this case on behalf of the government.
Mr. Hickton commended the Pennsylvania State Police, Somerset Turnpike Barracks, for the investigation leading to the successful prosecution of Gooch.
Illegal Aliens Indicted for Violations of the Federal Gun Control ActRead the Press Release
U.S. Attorney Kenneth A. Polite announced that ROBERTO HERRERA-VILLAGOMEZ, age 23, and JUAN MANUEL HERRERA-VILLAGOMEZ, age 32, both citizens of Mexico, were each charged today in two-count indictment with violations of the Federal Gun Control Act.
According to the indictment, on or about October 15, 2014, ROBERTO HERRERA-VILLAGOMEZ and JUAN MANUEL HERRERA-VILLAGOMEZ, both illegal aliens, were found in possession of loaded firearms. Both defendants were found while executing a search warrant in an ongoing investigation into the harboring of illegal aliens at a mushroom farm in Tangipahoa Parish.
If convicted, ROBERTO HERRERA-VILLAGOMEZ and JUAN MANUEL HERRERA-VILLAGOMEZ, each face a maximum term of imprisonment of ten years, a fine of $250,000 and up to three years of supervised release following any term of imprisonment.
U. S. Attorney Polite reiterated that the indictment is merely a charge and that the guilt of the defendants must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised work of the Department of Homeland Security, Homeland Security Investigations (“HSI”) in investigating this matter. Assistant United States Attorney David Haller is in charge of the prosecution.
(Download Indictment )
Illegal Alien, Juan Carlos Moscoso-cardenas, Indicted for Illegal ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JUAN CARLOS MOSCOSO-CARDENAS, age 28, a citizen of Honduras, was charged today in a one-count indictment with illegal reentry by an alien previously removed.
According to the indictment, on or about October 15, 2014, LOPEZ-VELASQUEZ, an alien who had previously been removed from the United States, was found in the United States, within the Eastern District of Louisiana, without having obtained consent from the Secretary of the Department of Homeland Security to reapply for admission to the United States.
If convicted, JUAN CARLOS MOSCOSO-CARDENAS, faces a maximum term of imprisonment of two years, a fine of $ 250,000 and one year of supervised release following any term of imprisonment.
U. S. Attorney Polite reiterated that the indictment 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 Homeland Security, Homeland Security Investigations (“HSI”) for investigating this matter. Assistant United States Attorney David Haller is in charge of the prosecution.
(Download Indictment )
Huntsville Insurance Broker Indicted for Defrauding CustomersRead the Press Release
BIRMINGHAM -- A federal grand jury today indicted a Huntsville insurance broker for mail fraud in a scheme to divert customers' insurance premiums to his own benefit, announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Richard D. Schwein Jr.
A one-count indictment filed in U.S. District Court charges that DAVID RANDALL "RAND" MULLINS, 45, caused Travelers Insurance Company to mail a policy cancellation notice for one of Mullins' customers from the company's office in Hartford, Conn., to Mullins' home address in Huntsville.
Mullins was an independent insurance broker and owner of Mullins Insurance Agency in Huntsville, which provided commercial, residential, automobile and workers compensation insurance. At least a dozen insurance companies, including Travelers, appointed Mullins to act on their behalf.
According to the indictment, it was part of Mullins' scheme to change customers' mailing addresses, without their knowledge, to his home address. The address changes ensured that those customers would not receive statements and notices sent from Travelers and other insurance companies.
Mullins conducted his fraud between January 2010 and December 2013 as follows, according to the indictment:
Mullins opened a bank account to receive customers' insurance premium payments, but also used the account to pay personal expenses. Without informing customers, he changed their premium payment schedules from annual payments to monthly payments. Mullins collected the full annual premium payment from the customer, deposited it into his bank account, and then sent the insurance provider a monthly payment. He used the difference for personal expenses.
Customers did not receive late payment or cancellation notices, or notices of the unauthorized changes to their payment plans or addresses because Mullins had diverted their mail from Travelers and other insurance companies to his address.
Mullins could face a maximum penalty of 20 years in prison and a $250,000 fine if convicted of the mail fraud.
The FBI investigated the case, which Assistant U.S. Attorney David H. Estes is prosecuting.
The public is reminded that an indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
Grove Man Sentenced to over 3 Years in Prison for Laundering Money Fraudulently Obtained from Elderly WomanRead the Press Release
TULSA, Okla. — Today, United States Attorney Danny C. Williams Sr. announced that William J. Butler II, 61, of Grove, Oklahoma, was sentenced to 38 months in prison for money laundering. Butler pleaded guilty on July 23, 2014, to a criminal Information filed on May 6, 2014.
Butler pleaded guilty to depositing $40,000 of funds fraudulently obtained from an elderly woman into a bank account in Grove, Oklahoma on June 19, 2012. Butler admitted that, in addition to the $40,000 deposited, an additional fraudulently obtained $33,985.85 was deposited from March 21, 2012 until June 19, 2014.
In addition to the term of incarceration, U.S. District Judge John E. Dowdell ordered Butler to pay restitution in the amount of $77,985.85. The court also entered a money judgment in the amount of $40,000 against Butler.
The matter was investigated by the IRS- Criminal Investigation. Assistant U.S. Attorneys Shannon Bears Cozzoni and Catherine Depew prosecuted the case on behalf of the United States.
U.S. v. William J. Butler III
Fort Thompson Man Sentenced for Distribution of A Controlled Substance and Aiding and AbettingRead the Press Release
United States Attorney Brendan V. Johnson announced that a Fort Thompson, South Dakota, man convicted of Distribution of a Controlled Substance and Aiding and Abetting was sentenced on October 27, 2014, by U.S. District Judge Roberto A. Lange.
Emmanuel Harrison, a/k/a Manny Harrison, age 29, was sentenced to 5 months in custody, 3 years of supervised release, $1,000 fine, and a $100 special assessment to the Federal Crime Victims Fund.
Harrison was indicted for two counts of Distribution of a Controlled Substance by a federal grand jury on April 15, 2014. He pled guilty to one count of Distribution of a Controlled Substance and Aiding and Abetting on July 29, 2014.
The conviction arose from an October 16, 2013, incident at Fort Thompson when Harrison knowingly and intentionally distributed a mixture and substance containing a detectable amount of methamphetamine, a Schedule II controlled substance, and aided and abetted in the commission of the distribution.
This case was investigated by the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Jay Miller prosecuted the case.
Harrison was immediately turned over to the custody of the U.S. Marshals Service to begin serving his sentence.
Former United Commercial Bank Chief Financial Officer Charged with Conspiracy to Mislead AuditorsRead the Press Release
SAN FRANCISCO – Craig S. On was charged in an Information filed today with one count of Conspiracy to Make a Materially False and Misleading Statement to an Accountant, announced U.S. Attorney Melinda Haag; Federal Deposit Insurance Corporation, Office of the Inspector General, Special Agent in Charge Wade Walters; Special Inspector General for the Troubled Asset Relief Program Christy Romero; Board of Governors of the Federal Reserve System and the Consumer Financial Protection Bureau, Office of the Inspector General, Special Agent in Charge Scott Redington; and FBI Special Agent in Charge David J. Johnson.
On, 62, of Berkeley, Calif., is the former Chief Financial Officer (CFO) of United Commercial Bank (UCB). UCB was a commercial bank headquartered in San Francisco, Calif., with branch offices throughout the United States as well as in China and Taiwan. Until 2009, its holding company, UCBH Holdings, Inc., was publicly traded on NASDAQ.
On Nov. 6, 2009, UCB was taken over by the Federal Deposit Insurance Corporation (FDIC). According to the Information, the Troubled Asset Relief Program (TARP) provided approximately $297 million in federal funds to UCB on Nov. 14, 2008, during the 2008 financial crisis.
According to the Information, On, beginning in 2009, together with others, allegedly engaged in a conspiracy to deceive UCB’s auditors by manipulating the bank’s books and records in a manner that misrepresented and concealed the bank’s true financial condition and performance and caused the bank to issue materially false and misleading financial statements in violation of 18 U.S.C. § 371.
The maximum statutory penalty for a conviction for conspiracy in violation of 18 U.S.C. § 371 is five years in prison and a fine of $250,000, plus restitution. However, any sentence will be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Adam A. Reeves and Robert David Rees are the Assistant U.S. Attorneys who are prosecuting the case with the assistance of Denise Oki, Phillip Villanueva and Bridget Kilkenny. The prosecution is the result of an investigation by the FDIC Office of Inspector General, the Special Inspector General of the Troubled Asset Relief Program, the Board of Governors of the Federal Reserve System and the Consumer Financial Protection Bureau Office of Inspector General and the Federal Bureau of Investigation.
Please note, an information contains only allegations against an individual and, as with all defendants, Craig S. On must be presumed innocent unless and until proven guilty.
(On information )
Former Teacher Pleads Guilty to Producing and Distributing Child PornographyRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces that Matthew C. Graziotti (43, Edgewater) today pleaded guilty to seven counts of production of child pornography, one count of distribution of child pornography, and one count of possession of child pornography involving children under the age of 12. Graziotti faces a mandatory minimum penalty of 15 years, up to 30 years, in federal prison for each count of producing child pornography. For the distribution count, he faces a mandatory minimum of 5 years, up to 20 years in federal prison, and the maximum penalty for the possession count is 20 years’ imprisonment. A sentencing hearing has been set for January 26, 2015.
According to court documents, Graziotti distributed 141 images and 6 videos depicting the sexual abuse and exploitation of children to an undercover FBI agent. During the execution of a search warrant, agents located thousands of child pornography images on Graziotti’s computer involving children under the age of 12. One computer file folder, named “personally known,” contained sexually explicit photographs and videos of 29 children that Graziotti had sexually abused when they were under the age of 12. Graziotti stored the sexually explicit images that he produced in subfolders bearing each child’s name. He produced these images from 2010 through 2014. During this period, Graziotti taught elementary school in South Daytona and was the director of the school’s summer day camp program. He also coached youth sports.
This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Karen L. Gable.
It is another case 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 (CEOS), 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.projectsafechildhood.gov.
Former Pontiac Tax Preparers Plead Guilty ToConspiracy to Defraud the United StatesRead the Press Release
Tamika and Brandon Lee of Pontiac pleaded guilty to conspiring to defraud the government by submitting false claims for income tax refunds, United States Attorney Barbara L. McQuade announced today.
McQuade was joined in the announcement by Jarod Koopman, Special Agent in Charge of the Internal Revenue Service Criminal Investigation.
The Lees entered the guilty pleas before United States District Judge Sean F. Cox.According to court records, Brandon Lee and Tamika Hawkins Lee, husband and wife, owned and operated Quick Money Tax Loan Center in Pontiac, MI. The two prepared and filed false tax returns for individuals for the 2009 and 2010 tax years. These returns claimed false or inflated expenses on Form 1040 Schedule C – Profit or Loss From Business, as well as false education credits. The falsified items caused the taxpayers’ refunds to be larger than what they were entitled to by increasing the Earned Income Credit and the Hope Education Credit.
During the hearings, the Lees admitted to participating in the conspiracy which involved 26 false income tax returns. The total refunds, approximately $183,664, were directed to a business bank account that was open and controlled by the Lees. Once the refunds were deposited, the Lees would issue a check to the taxpayers for a portion of the refund and keep the remainder for themselves.
"IRS Criminal Investigation focuses on protecting revenue by identifying, investigating and prosecuting abusive return preparers. This case also accentuates the importance of carefully selecting a tax return preparer,” said Special Agent in Charge Koopman.
Tamika Hawkins Lee and Brandon Lee pleaded guilty to conspiring to defraud the government by submitting false claims for income tax refunds on October 22 and 29, 2014 respectively. Sentencing for Tamika Hawkins Lee is scheduled for March 27, 2015. Bandon Lee’s sentencing is scheduled for February 27, 2015 at 2 p.m. The maximum penalty for conspiracy to defraud the United States government is ten years imprisonment; three years supervised release and a $250,000 fine.
The case is being prosecuted by Assistant U.S. Attorney Ross MacKenzie. The case was investigated by Special Agents of the Internal Revenue Service Criminal Investigation.Former Office Manager from Jones Found Guilty on 36 Counts in Connection with over $1 Million Embezzlement and Tax FraudRead the Press Release
Oklahoma City, Oklahoma – A federal court jury deliberated only about two hours today before finding JULIE ANN SMITH (a/k/a "Julie A. Judkins" and "Julia A. Judkins Smith"), of Jones, Oklahoma, guilty on 36 counts of bank fraud, mail fraud, aggravated identity theft, forged securities, and tax fraud, in connection with embezzling over one million dollars from her former employer, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
According to evidence presented at trial, Smith worked from 2000 until around late June 2012 at Power Equipment & Engineering, Inc. ("PE&E"), in Oklahoma City. At PE&E, Smith was the accounts-payable clerk and officer manager, where she prepared checks and paid invoices for the company. While employed at PE&E from June of 2002 through June of 2012, Smith forged approximately 195 PE&E checks by using the company owner’s signature stamp without PE&E’s permission or knowledge. The forged checks totaled approximately $1,026,399.08. In addition, evidence showed that Smith disguised the forged checks through false entries on PE&E’s accounting system, wrote many of the forged checks to a fake company under her control, and directed other forged checks to credit card companies, financial institutions, and vendors for her personal benefit. Finally, the evidence showed that Smith filed materially false federal income tax returns for years 2008 through 2012.
The trial lasted two days and the jury deliberated approximately two hours before finding Smith guilty on all 36 counts. At sentencing, Smith faces a prison sentence of up to 30 years for each bank fraud count, up to 20 years for each mail fraud count, up to 10 years for each forged securities count, up to three years for each false tax return count, and a mandatory two-year prison term under the aggravated identify theft count. Smith could also receive an additional $250,000 fine on each count. A sentencing date will be set by the court in approximately 90 days.
These charges are the result of an investigation conducted by the Internal Revenue Service - Criminal Investigations, United States Secret Service, Federal Bureau of Investigation, and Oklahoma City Police Department. The case is being prosecuted by Assistant U.S. Attorneys Chris M. Stephens and Jessica L. Perry.
Reference is made to court filings for further information.
Former Northwestern Physician to Pay the United States $475,000 to Settle Cancer Research Grant Fraud ClaimsRead the Press Release
CHICAGO — A former cancer research physician at Northwestern University’s Robert H. Lurie Comprehensive Center for Cancer in Chicago will pay the United States $475,000 to settle claims of federal research grant fraud. Dr. Charles L. Bennett agreed to the settlement in a federal False Claims Act lawsuit that was first made public last year after the government investigated the claims made by a former employee and whistleblower who will receive a portion of the settlement.
In July 2013, Northwestern University agreed to pay the United States $2.93 million to settle identical claims against the university. Northwestern, which fully cooperated during the investigation, did not admit liability as part of the settlement.
In a settlement agreement filed today in U.S. District Court, Dr. Bennett, of Columbia, S. Car., also did not admit liability, nor did the government concede that its claims were not well-founded.
In a lawsuit filed in January this year, the government contended that Dr. Bennett submitted false claims under research grants from the National Institutes of Health. The settlement covers improper claims that Dr. Bennett submitted for reimbursement from the federal grants for professional and consulting services, food, hotels, travel, conference registration fees, and other expenses that benefited Dr. Bennett, his friends, and family from Jan. 1, 2003, through Aug. 31, 2010.
The allegations were initially made in a civil lawsuit filed under seal in 2009 by Melissa Theis, who in 2007 and 2008 worked as a purchasing coordinator in hematology and oncology at Northwestern’s Feinberg School of Medicine. She will receive $80,750 from the settlement with Dr. Bennett, and earlier she received $498,100 from the settlement with Northwestern. Her suit, which the government later settled on her behalf, alleged that the defendants submitted false claims to the United States when Dr. Bennett and others directed and authorized the spending of grant funds on goods and services that did not meet applicable NIH and government grant guidelines.
The allegations were investigated by the U.S. Department of Health and Human Services Office of Inspector General, the Federal Bureau of Investigation, the National Institutes of Health, and the U.S. Attorney’s Office. The government contended Northwestern improperly submitted claims to NIH for grant expenditures for items that were for the personal benefit of Dr. Bennett, his friends and family that were incurred in connection with grants as to which he was the principal investigator.
The settlement with Dr. Bennett resolves the remaining claims and effectively ends the litigation. The agreement reserves the authority of any federal agency, including HHS, to take any administrative action, such as suspending or debarring Dr. Bennett from receiving future research grants. United States v. Charles L. Bennett, M.D., No. 09 C 1943 (N.D. Ill.).
Dr. Bennett agreed to pay the settlement by Dec. 1, 2014. The agreement covers allegations that false claims were submitted to NIH for costs that Dr. Bennett incurred on his grant-funded research projects involving adverse drug-events, multiple myeloma drugs, a blood disorder known as thrombotic thrombocytopenic purpura, and quality of care for cancer patients. Dr. Bennett allegedly billed those federal grants for family trips, meals and hotels for himself and friends, and “consulting fees” for unqualified friends and family members, including his brother and cousin.
The settlement with Dr. Bennett was announced by the United States Attorney’s Office for the Northern District of Illinois, the U.S. Department of Health and Human Services, Office of Inspector General – Chicago Region, and the Chicago Office of the Federal Bureau of Investigation.
The United States was represented by Assistant U.S. Attorney Kurt N. Lindland.
Settlement Agreement
Former Navy Intelligence Official Convicted in Silencers ConspiracyRead the Press Release
ALEXANDRIA, Va. – Lee Hall, 53, of Potomac Falls, Virginia, the former Director for Intelligence for the Deputy Under Secretary of the Navy Office of Plans, Policy, Oversight, and Integration (PPOI) Intelligence Directorate, was convicted yesterday of conspiracy to transport unregistered firearms, conspiracy to commit mail fraud, and theft of government property.
Also convicted yesterday was Mark Stuart Landersman, 53, of Temecula, California, the brother of Hall’s former supervisor, David Landersman, the PPOI Senior Intelligence Director. Mark Landersman was convicted of conspiracy to illegally manufacture and deal firearms, conspiracy to transport unregistered firearms, and conspiracy to commit mail fraud.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Andrew L. Traver, Director, Naval Criminal Investigative Service (NCIS); and Charles E. Smith, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, made the announcement after the verdict was announced by U.S. District Judge Leonie M. Brinkema.
Lee Hall faces a maximum penalty of 10 years in prison on the theft of government property conviction, and five years in prison on the conspiracy conviction. Mark Stuart Landersman faces a maximum penalty of five years in prison. The sentencing date for both is January 30, 2015. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Hall and Landersman were indicted in a superseding indictment on March 13, 2014, on charges of conspiracy and theft of government money. According to court records and evidence at trial, in the fall of 2012 Lee Hall redirected $1.6 million in research funds towards the purchase of firearm silencers from Mark Landersman. Mark Landersman was the owner of Advanced Machining and Engineering (AME), a small business in Temecula, California. In November 2012, Mark Landersman, arranged for a machine shop owner to manufacture parts for 349 silencers and provided the blueprint for the silencers to the machine shop owner.
Mark Landersman then picked up the silencer parts, and assembled them. None of the 349 silencers bore serial numbers, and Mark Landersman paid the machine shop owner less than $10,000 for the labor and materials to manufacture the silencers. On February 13, 2013, Mark Landersman shipped four boxes containing the silencers from California to a facility in Maryland where they sat for several weeks before being seized by NCIS agents in early April 2013. The silencers were subsequently tested by a Department of Navy testing facility and failed a series of tests, including flash and sound suppression.This case was initiated by NCIS and investigated by NCIS, and the Washington Field Division of the Bureau of Alcohol, Tobacco & Firearms. Assistant U.S. Attorneys Morris Parker, Patricia Haynes, and Peter Hyun are prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:13cr419.
Former Kellogg Salesman Sentenced on Wire Fraud ChargeRead the Press Release
RICHMOND, Va. – John Morrell Palmer, III, 55, of Fredericksburg, Virginia, was sentenced today to twelve months and one day in prison, followed by three years of supervised release, for participating in a wire fraud conspiracy that resulted in losses of approximately $1.8 million to the Kellogg Company, a food manufacturer and supplier. He was also ordered to pay restitution to Kellogg’s in the amount of $1,886,392.87 and to forfeit that amount to the United States.
Dana J. Boente, United States Attorney for the Eastern District of Virginia; Adam S. Lee, Special Agent in Charge for the Federal Bureau of Investigation (FBI), Richmond Division; Gary Barksdale, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Serviceand Colonel W. Steven Flaherty, Virginia State Police Superintendent, made the announcement after sentencing by U.S. District Judge M. Hannah Lauck.
Palmer pleaded guilty on July 2, 2014. According to court documents, he was employed as a sales manager with Kellogg’s, working in the Fredericksburg, Virginia area. Co-conspirator John David Farmer was the President of Farmer’s Foods, a grocery store chain based in Chase City, Virginia. Kellogg’s ran various incentive programs to encourage the volume purchase of Kellogg’s product by retailers, including Farmer’s Foods. Under these programs, retailers received deductions that were credited against their accounts with SuperValu, a grocery wholesaler through which Kellogg’s sold product. From 2009 through 2013, Palmer and Farmer conspired to submit fraudulent documents regarding non-existent purchases to Kellogg’s and SuperValu. The appearance of greater than actual sales resulted in reduced net costs for Farmer’s Foods. As a result of the fraudulent submissions, SuperValu awarded Farmer’s Foods approximately $1.8 million in unearned deductions against its running account with SuperValu. Kellogg’s then reimbursed SuperValu for the awarded deductions. Palmer used his position at Kellogg’s to facilitate the fraud. In return, Farmer paid cash kickbacks to Palmer in the total amount of approximately half the value of the fraudulently obtained deductions.
Farmer pleaded guilty to a single-count criminal information charging him with conspiracy to commit wire fraud on October 27, 2014. His sentencing is scheduled for January 22, 2015, before United States District Judge M. Hannah Lauck.
This case was investigated by the Virginia State Police, the United States Postal Inspection Service, and the Federal Bureau of Investigation. Assistant U.S. Attorney Michael C. Moore prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case Nos. 3:14-cr-85 and 3:14-cr-129.
Former Elk Grove Man Sentenced to 15.5 Years in Prison for $20 Million Investment Fraud and False Statements in BankruptcyRead the Press Release
SACRAMENTO, Calif. — Vincent Singh, 45, formerly of Elk Grove, was sentenced today by United States District Judge Morrison C. England Jr. to 15.5 years in prison for wire fraud and false statements in bankruptcy, United States Attorney Benjamin B. Wagner announced.
According to court documents, Singh carried out an investment fraud through an entity known as the Perfect Financial Group. He targeted 190 members of the ethnic Indian Fijian community for an investment fraud that grossed approximately $20 million. Singh told investors that he was using their money for hard money lending. In fact, Singh used $12 million for gambling, made $2 million in cash withdrawals, spent $880,000 on a film project, and spent more than $1 million on other business ventures. Singh also used millions of dollars of investor money to pay other victims and give Perfect Financial the false appearance of success. The scheme collapsed, and when Singh declared bankruptcy, he failed to disclose 19 of the bank accounts that he had used in the investment fraud.
At sentencing, Judge England said, “Crimes such as these are the absolute worst because the defendant who engages in these activities preys upon the good nature, the friendships, the relationships and everything else to try to entice these victims into giving up everything, and they gave up everything.”
U.S. Attorney Wagner stated: “Singh convinced people who considered him a friend to invest with him. Rather than invest the funds, he spent it on gambling and frivolous projects. Today’s sentence brings a measure of justice, but it cannot right the wrongs Singh’s conduct visited on his nearly 200 victims. This office will continue to prosecute investment fraud and will bring to justice those who violate the trust of the law-abiding members of our community.”
This case was the product of an investigation by the Federal Bureau of Investigation with the assistance of the Office of the U.S. Trustee. Assistant United States Attorney Matthew D. Segal prosecuted the case.
This case was done in connection with the President’s Financial Fraud Enforcement Task Force that was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. For more information on the task force, please visit www.StopFraud.gov.Former Davenport Men Sentenced for 2011 Home Invasion RobberyRead the Press Release
DAVENPORT, IA – On October 23, 2014, Louis Warren, Jr., age 28, and John Louis Hodges, age 32, both formerly of Davenport, Iowa, were sentenced by Chief United States District Judge James E. Gritzner for attempted interference with commerce by robbery in violation of Title 18, United States Code, Section 1951 announced United States Attorney Nicholas A. Klinefeldt. Warren was sentenced to 168 months imprisonment, and Hodges was sentenced to 192 months imprisonment. Both were also ordered to serve three years supervised release following the imprisonment, pay $100 towards the Crime Victims Fund, and pay monetary restitution to the family of Demetrius Lewis, Jr., who was killed during the robbery.
In October 2011, Warren, Hodges, and Arthur Allen, Jr. planned a robbery of money, marijuana, and other items of value from Alexander Hubbard, Sr. on West 17th Street in Davenport, Iowa. In preparation for the planned robbery, the conspirators obtained two handguns for use in the robbery, including a 9mm handgun.
On October 17, 2011, as Warren, Hodges, and Allen had agreed to set-up the robbery, Hodges called Hubbard asking if he could visit Hubbard at his residence in order to buy marijuana from him, and Hubbard agreed. Hodges, Warren, and Allen then all traveled to Hubbard’s residence in a vehicle driven by Hodges, arriving at approximately 12:30 in the afternoon. Hodges was permitted access into Hubbard’s residence, where Hodges made a purchase of marijuana from Hubbard. Also inside Hubbard’s residence were three of Hubbard’s relatives who were all playing video games in the living room—20-year old Demetrius Lewis, Jr., who was Hubbard’s younger cousin, Hubbard’s then 11-year old son, and another cousin of Hubbard’s, then 18.
Upon exiting Hubbard’s residence, Hodges left the entry door to the residence open and alerted Warren and Allen—who were waiting just outside Hubbard’s residence—that Hubbard was in his residence and conducting marijuana sales. Allen and Warren then burst into Hubbard’s residence to complete the robbery. Both Allen and Warren were armed with loaded handguns. After the intruders entered the residence, multiple shots were fired. Demetrius Lewis, Jr. sustained a single 9mm gunshot wound to the abdomen. Hubbard, who upon hearing the invasion into his residence retrieved his .40 caliber handgun and fired at an intruder. Warren was struck in the abdomen with a shot fired by Hubbard. Warren and Allen ran out of the residence and fled on foot through the neighborhood. Upon locating Hodges, Allen and Warren jumped into Haye’s vehicle. Hodges dropped Warren off near Genesis West Hospital in Davenport; he was treated there for a non-life threatening wound and released.
At 12:44 p.m. on October of 2011, a 911 call was received and emergency responders dispatched to the scene of the shooting. Demetrius Lewis, Jr. was transported to a local hospital where he died a short time later. Co-defendant Arthur Allen, Jr. has pled guilty to attempted interference with commerce by robbery and is scheduled to be sentenced by Chief Judge Gritzner on November 20, 2014. Hubbard pled guilty in 2012 to possession of a firearm in furtherance of drug trafficking, and was sentenced to 96 months imprisonment.
This case was investigated by the Davenport, Iowa, Police Department, and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Former Chief of Baltimore City Division of Transit and Marine Services Indicted for Bribery SchemeRead the Press Release
Allegedly Took $20,000 to Cancel Debt Owed to City and Took $70,000 to “Sell” Government Property
Baltimore, Maryland - A federal grand jury indicted Barry Stephen Robinson, age 65, of Accokeek, Maryland, in connection with an alleged bribery scheme earlier this year while he was Chief of the Division of Transit and Marine Services of the Baltimore City Department of Transportation. Robinson is charged with two counts of bribery concerning a program that received federal funds, and one count of money laundering. The indictment was returned on October 29, 2014.“Barry Stephen Robinson allegedly took a $20,000 bribe to cancel a $60,000 debt owed to Baltimore City, and a $70,000 bribe to allow the theft of city property worth $250,000,” said U.S. Attorney Rod J. Rosenstein. “This sort of corruption can occur when dishonest people are trusted to handle valuable government property without oversight.”
The indictment was announced by U.S. Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Baltimore City Inspector General Robert H. Pearre, Jr.; and Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.
Robinson supervised Baltimore City’s “Circulator” and “Water Taxi” programs, according to the indictment. He had authority to approve contracts with advertisers and vendors; purchase and pay for goods and services; and receive and process payments owed to the city.
In the spring of 2013, Robinson received a check for $40,000 payable to the Baltimore City Director of Finance, in payment for advertising on Circulator buses. Robinson allegedly returned the check and offered that for $20,000 in cash, he would cancel the $40,000 debt to the city and provide written documentation that it had been paid. The debtor declined the offer. In January 2014, Robinson offered to extinguish $60,000 of debt to the City of Baltimore in return for $20,000 in cash. From January 23 to March 11, 2014, Robinson received four cash payments of $5,000 each. In return, Robinson provided a signed letter on Baltimore City letterhead falsely stating that the $60,000 debt had been paid.
Seeking to disguise the source of the bribery proceeds, Robinson allegedly deposited some of the money into a bank account in the name of another person on January 24, 2014.
The indictment also alleges that Robinson took a $70,000 bribe to sell unused city bus shelters. In 2011, Robinson arranged for Baltimore City to purchase 13 bus shelters from a Canadian company for $249,290. On multiple occasions from May 2013 to March 2014, Robinson said the city did not keep track of the shelters, so he planned to sell them for his personal benefit. Robinson allegedly said that he wanted $70,000 from the sale of the bus shelters in order to help fund his retirement. On April 9, 2014, Robinson accepted $70,000, in return for the city’s bus shelters.
Robinson faces a maximum sentence of 20 years in prison for money laundering and 10 years in prison on each of two bribery counts. An initial appearance has not yet been scheduled.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
U.S. Attorney Rod J. Rosenstein praised the FBI, the Baltimore City Office of Inspector General and IRS-Criminal Investigation, for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Barbara S. Sale, who is prosecuting the case.
Former Arkansas State Police Lieutenant Sentenced to 135 Months’ Imprisonment for Drug ConspiracyRead the Press Release
LITTLE ROCK – Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, along with David T. Resch, Special Agent in Charge of the Little Rock Field Office of the Federal Bureau of Investigation (FBI) announced today that former Arkansas State Police Lieutenant Sedrick L. Reed, age 44, was sentenced to 135 months in prison for his role in a conspiracy to distribute and to possess with intent to distribute cocaine. The charge stemmed from an investigation by the Federal Bureau of Investigation’s ArkTrust Public Corruption Task Force with the full cooperation of the Arkansas State Police. The investigation was also referred to as Organized Crime and Drug Enforcement Task Force (OCDETF) operation “Diverted Justice.”
“Citizens of the Eastern District of Arkansas deserve to know that their law enforcement members are trustworthy law abiding citizens and when they are not, they will be held accountable for their illegal actions,” stated Thyer. “This sentence demonstrates that violating the public trust is taken seriously.”
Reed was charged in a five-count indictment handed down by a grand jury on August 7, 2013. On July 30, 2014, Reed pleaded guilty to participating in a conspiracy to distribute and to possess with intent to distribute controlled substances. The United States dismissed the remaining four counts against Reed upon acceptance of the guilty plea. Reed faced a potential sentence of not less than 10 years and up to life imprisonment; not less than 5 years and up to life supervised release; up to a $10 million fine, and a $100 special assessment. Reed also agreed to the forfeiture of bank accounts, real property, firearms, vehicles, and more than $30,000 in cash constituting proceeds of his illegal conduct.
At his plea hearing before U.S. District Court Judge Billy Roy Wilson, Reed admitted in open court to participating in a conspiracy to distribute between five and fifteen kilograms of cocaine between 2006 and 2013. Reed admitted that he abused a position of public trust in a manner that significantly facilitated the conspiracy. Reed also admitted to possessing a firearm during the conspiracy. Reed admitted to diverting drugs from a traffic stop and taking drugs from the ASP evidence locker. Reed further admitted that during the course of the conspiracy, he profited in excess of $200,000 from the resale of these stolen drugs.
The investigation was conducted by the FBI’s ArkTrust Public Corruption Task Force. It is being prosecuted by Assistant United States Attorneys Julie Peters and Chris Givens.
The remaining defendant in the indictment, Lamont Johnson, is set for trial before Judge Wilson on February 3, 2015.
An indictment contains only allegations. A defendant is presumed innocent unless and until proven guilty.
Florida Man Sentenced to 10 Years for Stalking, Attempting to Injure Victim with Acid-filled BombsRead the Press Release
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Deirdre M, Daly, United States Attorney for the District of Connecticut, and Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, announced that FRANK MENDOZA, 53, formerly of Jacksonville, Fla., was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 120 months of imprisonment, followed by three years of supervised release, for stalking a Connecticut woman and planting hydrochloric acid-filled bottle bombs in her car.
“This lengthy prison term will help to protect a woman who was abused, threatened and stalked by this defendant, and who nearly suffered a horrible, disfiguring injury at his hands,” stated U.S. Attorney Daly. “It also sends a message that domestic violence is intolerable and offenders will be appropriately punished and removed from society. Under the federal Violence Against Women Act, the Department of Justice is empowered with tools to prosecute domestic violence and stalking crimes. We commend the FBI Joint Terrorism Task Forces in Connecticut and Florida, and all of our partner investigative agencies who investigated this heinous crime in an effort to secure justice and provide safety for the victim.”
“Mr. Mendoza terrorized his victim and endangered both his victim and the community,” stated FBI Special Agent in Charge Ferrick. “As a result of a thorough investigation conducted by the FBI, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Connecticut State Police, the New Haven Police Department, the Stamford Police Department, the Stamford Fire Department and the Connecticut Department of Energy and Environmental Protection, Mr. Mendoza has been brought to justice. Civilized societies must have zero tolerance for criminals like Mendoza who terrorize not only their victims but the communities in which they reside.”
According to court documents and statements made in court, MENDOZA began a romantic relationship with a woman in Jacksonville, Fla, in 2008. MENDOZA then became emotionally and psychologically abusive toward the victim. The victim also learned that MENDOZA had a serious prior criminal history and claimed to be affiliated with a gang. She also observed MENDOZA carrying a firearm. MENDOZA’s abusive and threatening behavior caused the victim to attempt to end the relationship.
In approximately September 2010, as part of a ruse, the victim told MENDOZA that she was moving to Rhode Island for a work-related training program. The victim instead moved to Stamford, Conn. In October 2010, MENDOZA learned that the victim had moved to Connecticut and began to place numerous harassing and threatening phone calls to her, her friends and her work colleagues.
In early November 2010, MENDOZA traveled from Florida to Connecticut, visited the victim’s residence and place of work, and then returned to Florida. On December 8, 2010, MENDOZA flew from Florida to New York City, rented a car, drove to the victim’s Connecticut residence, and placed two, two-liter bottles in the victim’s car. The bottles contained hydrochloric acid and an aluminum foil wick.
At approximately 11:00 p.m. on December 8, 2010, the victim approached her car and observed that the car’s interior had been dampened by a liquid. She also observed a bottle on the driver’s side floor. When she picked the bottle up, it began to smoke and fizz. She then gently placed the bottle down and ran from the car. The bottle then exploded.
The investigation revealed that the first bottle had exploded before the victim had reached the car.
MENDOZA has been detained since his arrest in Jacksonville on August 17, 2012. On June 5, 2014, he pleaded guilty to one count of interstate stalking.
This matter was investigated by the FBI Joint Terrorism Task Forces in New Haven and Jacksonville, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Connecticut State Police, the New Haven Police Department, the Stamford Police Department, the Stamford Bomb Squad, the Stamford Fire Department and the Connecticut Department of Energy and Environmental Protection.
The case was prosecuted by Assistant U.S. Attorneys Krishna Patel and Vanessa Richards.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Federal Prosecutor in Los Angeles to Serve as Election Officer for Much of Southern California During November 4 General ElectionRead the Press Release
LOS ANGELES – As part of the Justice Department’s nationwide Election Day Program for the upcoming general elections, Assistant United States Attorney Dennis Mitchell will again serve as the District Election Officer during the November 4 general election
Acting United States Attorney Stephanie Yonekura announced today that AUSA Mitchell will serve as District Election Officer for the Central District of California, which includes the counties of Los Angeles, Orange, Riverside, San Bernardino, Ventura, Santa Barbara and San Luis Obispo.
As District Election Officer, AUSA Mitchell is responsible for handling of complaints of election fraud and voting rights abuses, coordinating with the FBI Field Office in Los Angeles, and consulting with the Justice Department in Washington.
Since 2006, AUSA Mitchell has served as District Election Officer, overseeing citizen complaints concerning potential violations of the federal Voting Rights Act. As District Election Officer during next week’s balloting, AUSA Mitchell will ensure that complaints of election fraud and voting rights abuses made to federal authorities will be properly handled and, if appropriate, thoroughly investigated by Special Agents with the FBI.
“Every citizen is entitled to have his or her vote counted without interference or discrimination,” said Acting United States Attorney Stephanie Yonekura. “Citizens should not hesitate to report possible violations of voting rights laws. The Justice Department is committed to act promptly to protect the integrity of the election process.”
Bill L. Lewis, Assistant Director in Charge of the FBI’s Los Angeles Field Office, stated: “The ability to vote in America is a sacred right, and voters are entitled to cast their ballots in a fair and lawful environment. The FBI encourages anyone who encounters violations – including discrimination, fraud or other abuse – to report it to the FBI for investigation.”
The Department of Justice is committed to deterring election fraud and discrimination at the polls, and federal authorities will combat these violations whenever and wherever they occur. The Justice Department’s long-standing Election Day Program furthers these goals, in part by instilling public confidence in the integrity of the election process by providing local points of contact for the public to report possible election fraud and voting rights violations while the polls are open on Election Day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input.
Federal law also contains special protections for the rights of voters and provides that they can vote free of intimidation or harassment. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them – or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting – may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice. For further information, see: http://www.justice.gov/crt/about/vot/.
The FBI Field Office in Los Angeles will have Special Agents available to receive allegations of election fraud and other election abuses on Election Day. The phone number to report possible voting rights abuses at the FBI Field Office in Los Angeles is: (310) 996-3829.
Complaints about access to ballots or voting discrimination also may be made directly to the Voting Section at the Civil Rights Division at the Justice Department in Washington at (800) 253-3931 or (202) 307-2767. In addition, individuals may also report such complaints by fax to (202) 307-3961, by email to [email protected] and by using a form on the DOJ website: http://www.justice.gov/crt/complaint/votintake/index.php.
The effectiveness of the Justice Department’s Election Day Program depends in large part on the watchfulness and cooperation of the American electorate. Therefore, anyone with specific information about discrimination or election fraud should make that information available immediately to the District Election Officer, the FBI or the Civil Rights Division in Washington.
Release No. 14-144
Federal and State Officials Promote Telephone Hotline for Reporting Election Fraud and Voting Rights AbusesRead the Press Release
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In an effort to ensure that the November 4, 2014 elections are administered fairly in every city and town in Connecticut, Deirdre M. Daly, United States Attorney for the District of Connecticut, Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, Michael J. Brandi, Executive Director of the Connecticut State Elections Enforcement Commission, Denise Merrill, Connecticut Secretary of the State, and Kevin T. Kane, Connecticut Chief State’s Attorney, today announced that a telephone hotline will be available for use by anyone who witnesses or experiences voting irregularities on Election Day.
The hotline will be staffed by the Connecticut State Elections Enforcement Commission (SEEC) during polling hours on Election Day. Anyone with knowledge of election fraud or voting rights abuses is encouraged to call 1-866-733-2463 (1-866-SEEC-INFO) to report suspected violations. The number is toll-free statewide. Individuals also can call the SEEC at 860-256-2940. The SEEC staff will answer questions, advise on complaint procedures and, if appropriate, request the assistance of state criminal or federal law enforcement authorities in the investigation and possible prosecution of the matter.
Citizens can also send an email to [email protected] to communicate with the SEEC and the Secretary of the State’s office on Election Day.
The SEEC is the primary elections investigative and civil enforcement authority in Connecticut. The Secretary of the State’s office is charged with overseeing all elections in Connecticut, which includes advising and assisting local Registrars of Voters and Town Clerks on their statutory responsibilities regarding administration of elections.
Federal law protects against crimes such as intimidating or bribing voters, buying and selling votes, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice.
On Election Day, representatives of the U.S. Attorney’s Office and the FBI will be in direct contact with the SEEC, the Secretary of the State’s office and the office of the Chief State’s Attorney in order to receive any complaints of electoral corruption or civil rights violations. Assistant U.S. Attorney Sarah P. Karwan has been appointed to serve as the District Election Officer for the District of Connecticut. In that capacity, she is responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington.
The FBI in Connecticut and across the country will have special agents available to receive allegations of election fraud and other election abuses on Election Day. The local FBI field office in New Haven can be reached by the public at 203-777-6311. In addition, complaints about ballot access problems or discrimination can be made directly to the Civil Rights Division’s Voting Section in Washington at 1-800-253-3931 or (202) 307-2767.
MEDIA CONTACTS:
Tom Carson
U.S. Attorney’s Office
203-821-3722William Aldenberg
Federal Bureau of Investigation
203-503-5200Kevin Ahern and William Smith
State Elections Enforcement Commission
860-256-2940Av Harris
Secretary of the State’s Office
860-509-6255Mark Dupuis
Office of the Chief State’s Attorney
860-258-5997Farmer Indicted for Falsifying Harvest Loads at Farmers CooperativeRead the Press Release
BIRMINGHAM -- A federal grand jury today indicted a north Alabama farmer for making false statements about harvest loads delivered to the Alabama Farmers Cooperative in Decatur, announced U.S. Attorney Joyce White Vance, U.S. Secret Service Special Agent in Charge Craig Caldwell and U.S. Department of Agriculture, Office of Inspector General-Investigations, Special Agent in Charge Karen Wilcox-Citizen.
TOMMY MIRREL RABY Jr., 52, of Toney, is charged in a one-count indictment filed in U.S. District Court. Raby, aided by others, falsely reported harvest loads he made to the cooperative in Decatur between November 2009 and March 2013, according to the indictment.
Raby's indictment follows the July indictments of four employees of the Alabama Farmers Cooperative for making false statements concerning harvest weight loads. Court documents in those cases show the cooperative lost nearly $1.3 million because those employees inflated or completely fabricated grain weight tickets issued to Raby.
The AFC employees indicted were AARON BLAKE WILLIAMS, 25, and TYLER THOMAS GLAZE, 26, both of Decatur, JAMES EDWARD TOON JR., 35, of Elkmont, and JOSHUA WAYNE HOLT, 32, of Hartselle. All four have pleaded guilty to the charge.
Holt, Williams, Glaze and Toon all acknowledge in plea agreements with the government that they aided each other in creating false weight tickets for Raby. All five divided proceeds of the scheme, according to the plea agreements.
The farmers' cooperative is licensed under a federal act that is regulated by a division of the U.S. Department of Agriculture.
The maximum penalty for making false statements to the government is five years in prison and a $250,000 fine.The Secret Service and USDA, OIG, investigated the case, which Assistant U.S. Attorney David H. Estes is prosecuting.
The public is reminded that an indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
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Eight Charged in White Plains Federal CourtWith Heroin Trafficking in MiddletownRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, George Venizelos, Assistant Director-In-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), Ramon Bethencourt, the Chief of the City of Middletown Police Department, and Joseph A. D’Amico, the Superintendent of the New York State Police, announced the arrest of eight defendants and the unsealing of an Indictment charging a conspiracy to distribute over a kilogram of heroin in and around Middletown, New York.
U.S. Attorney Preet Bharara stated: “To those heroin traffickers in Middletown who still have not gotten the message, let me be clear: Together with our federal and local partners, we will not rest until heroin is off our streets, and until those who supply this destructive drug are brought to justice.”
FBI Assistant Director-in-Charge George Venizelos stated: “Today, we announce the arrest of eight individuals who sought to traffic heroin in the Middleton area. The FBI remains committed to working with our law enforcement partners to investigate those who introduce drugs and other dangers into our neighborhoods.”
NY State Police Superintendent Joseph A. D’Amico stated: “These arrests and the seriousness of the charges these traffickers face show the commitment our law enforcement partners have in keeping dangerous drugs off our streets. Today, eight defendants are behind bars and the heroin they intended to distribute will never reach the Middletown community."
The Indictment charges eight defendants, FREDDIE SERRANO, a/k/a “Jose,” 53, GISELLE SANTANA,33, JOHN BAKER, a/k/a “Johnny Joint,” 38, DEBRA JEAN BLISS, 61, ANTONIO DIAZ-PEREZ, a/k/a “TONE,” 39, JOSEPH FREEHILL, 36, FRANCISCO RODRIGUEZ, a/k/a “Tito,” 58, and ANGEL SOSTRE-SOSTRE, a/k/a “Nito,” 47, with conspiring to distribute, and possess with intent to distribute, over a kilogram of heroin.
The charge against each defendant and the corresponding maximum potential penalties are outlined in the chart attached to this press release. The maximum potential sentences are prescribed by Congress and are provided for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Seven of the defendants charged in the Indictment were arrested today. Five were presented in White Plains federal court this afternoon before U.S. Magistrate Judge Judith C. McCarthy; two are scheduled to be presented tomorrow, and the eighth is currently in the Orange County Jail on unrelated charges.
Mr. Bharara praised the outstanding investigative work of the FBI, the City of Middletown Police Department, the New York State Police, the Orange County Sherriff’s Department, the Town of Wallkill Police Department, the Orange County District Attorney and the Sullivan County District Attorney.
The prosecution is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys Michael Gerber and Jessica K. Feinstein are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
CHARGE(S) DEFENDANTS MAXIMUM PENALTIES
Narcotics conspiracy
(Conspiracy to distribute and possess with intent to distribute 1 kilogram or more of heroin.) FREDDIE SERRANO,
a/k/a “Jose,”
Life in prison
GISELLE SANTANA,
JOHN BAKER,
a/k/a “Johnny Joint,”
DEBRA JEAN BLISS,
ANTONIO DIAZ-PEREZ,
a/k/a “TONE,”
JOSEPH FREEHILL,
FRANCISCO RODRIGUEZ,
a/k/a “Tito,” and
ANGEL SOSTRE-SOSTRE,
a/k/a “Nito.”
Mandatory minimum: 10 years in prison
Duval County Tax Preparer Sentenced to Prison for Preparing False Tax ReturnsRead the Press Release
Jacksonville, Florida – U.S. District Judge Timothy J. Corrigan has sentenced Raymond Jones, Jr. (60, Jacksonville) to 16 months in federal prison for preparing and filing false tax returns. The Court also ordered him to pay $400,524 in restitution to the Internal Revenue Service. He pleaded guilty on July 8, 2014.
According to court documents, Jones worked as a tax return preparer for Express Tax Returns (ETR) from 2008 to 2011. Using taxpayer information provided to ETR, Jones would file tax returns with the IRS. When preparing a Form 1040, he intentionally overstated or falsely claimed, among other items, self-employed retirement plan contribution deductions, education credits, and expenses. He did so, knowing that it would increase tax refunds to his clients. Jones prepared 73 and filed fraudulent tax returns at ETR between 2010 and 2011. The tax loss attributed to his fraudulent actions was $400,524.
This case was investigated by the Internal Revenue Service - Criminal Investigation. It was prosecuted by Assistant United States Attorney Kevin C. Frein.
Dual Kazakh-Israeli Citizen Extradited from Cyprus to United States to Face Fraud and Money Laundering ChargesRead the Press Release
BROOKLYN, NY – Genadi Yagodayev, a dual citizen of Kazakhstan and Israel, has been extradited to the United States from Cyprus to face charges related to the Rockford Group investment scheme, which defrauded investors out of millions of dollars. Yagodayev is charged in an indictment with mail and wire fraud conspiracy, securities fraud, money laundering conspiracy, and money laundering. He is scheduled to be arraigned tomorrow at 2:00 p.m. before U.S. Magistrate Judge Robert M. Levy in federal court in Brooklyn, New York. The case has been assigned to U.S. District Judge I. Leo Glasser.
The extradition was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; Philip R. Bartlett, Postal Inspector in Charge, U.S. Postal Inspection Service (USPIS), New York Division; James T. Hayes, Jr., Special Agent in Charge, U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI), New York; and Robert J. Sica, Special Agent in Charge, United States Secret Service (USSS), New York Field Office.
According to the indictment and other court documents, from approximately December 2008 to November 2009, Yagodayev and his co-conspirators participated in a fraudulent investment scheme through a company called the Rockford Group. In documents, Yagodayev described himself as the “President” and “Manager” of the Rockford Group. The Rockford Group marketed itself as a “leading private equity firm,” claimed to invest in plaintiffs’ rights to future recoveries in personal injury and other lawsuits, and promised a 15% return on their investments. The Rockford Group, however, never invested in any lawsuits. Instead, nearly all of the investors’ funds were wired to bank accounts overseas. Approximately 200 investors in the U.S. and Canada lost approximately $11 million as a result of this scheme.
“As set forth in the indictment, the defendant Yagodayev was a member of a group of fraudsters who stole the savings of hardworking individuals. Yagodayev styled himself as the president and manager of the Rockford Group, a company that existed only to scam innocent victims,” stated United States Attorney Lynch. “As the defendant’s extradition illustrates, we will pursue these crooks wherever they go.” Ms. Lynch thanked the government of Cyprus and the Department of Justice’s Office of International Affairs for their assistance in the extradition of Yagodayev.
“When the U.S. Mail is used to commit a mail fraud investment scheme, the U.S. Postal Inspection Service will commit the resources necessary to properly investigate and bring the case forward for prosecution. This is one of the many ways we ensure the public’s trust in the U.S. Mail,” said Inspector in Charge Philip R. Bartlett.
“Yagodayev’s extradition disrupts an alleged Ponzi scheme that swindled investors in the United States and Canada out of millions of dollars,” said James T. Hayes Jr., Special Agent in Charge of HSI in New York. “White collar criminals who think they can scam U.S. investors from overseas and get away with it are mistaken. HSI and its federal and international law enforcement partners will use all of its resources to locate and arrest criminals who attempt to exploit our financial systems."
“The extradition of Genadi Yagodayev is yet another example of how the Secret Service continues to successfully combat financial fraud,” said Robert J. Sica, Special Agent in Charge of the United States Secret Service New York Field Office. “Our success in this case and similar investigations is a result of our close work with our network of law enforcement partners. This case demonstrates there is no such thing as anonymity for those engaging in fraudulent schemes.”
The charges in the indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted, the defendant faces a maximum sentence of 20 years’ imprisonment on each of the charged counts.
This prosecution was the result of efforts by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ Offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit http://www.StopFraud.gov.
The government’s case is being prosecuted by Assistant United States Attorneys Daniel A. Spector and Justin D. Lerer.
The Defendant:
GENADI YAGODAYEV
Age: 36
E.D.N.Y. Docket No. 14-CR-258
Dignity Health Agrees to Pay $37 Million to Settle False Claims Act AllegationsRead the Press Release
Dignity Health has agreed to pay the United States $37 million to settle allegations that 13 of its hospitals in California, Nevada and Arizona knowingly submitted false claims to Medicare and TRICARE by admitting patients who could have been treated on a less costly, outpatient basis, the Justice Department announced today. Dignity, formerly known as Catholic Healthcare West, is based in San Francisco and is one of the five largest hospital systems in the nation with 39 hospitals in three states.
“Charging the government for higher cost inpatient services that patients do not need wastes the country’s vital health care dollars,” said Acting Assistant Attorney General Joyce R. Branda for the Justice Department’s Civil Division. “This department will continue its work to stop abuses of the nation’s health care resources and to ensure patients receive the most appropriate care.”
The settlement resolves allegations that 13 Dignity Health hospitals knowingly overcharged Medicare and TRICARE, part of the military health care program, for inpatient services for patients who should have been treated on a less costly, outpatient basis. Because hospitals generally receive significantly higher payments from federal health care programs for inpatient admissions as opposed to outpatient treatment, the admission of numerous patients who do not need inpatient care, as alleged here, can result in substantial financial harm to federal health care programs.
The United States alleged that from 2006 through 2010, 13 Dignity hospitals billed Medicare and TRICARE for inpatient care for certain patients who underwent elective cardiovascular procedures (e.g., stents, pacemakers) in scheduled surgeries when the claims should have been billed as outpatient surgeries. In addition, the government alleged that from 2000 through 2008, four of the hospitals billed Medicare for beneficiaries undergoing elective kyphoplasty procedures, which are minimally-invasive and performed to treat certain spinal compression fractures that should have been billed as less costly outpatient procedures. Lastly, the government alleged that from 2006 through 2010, 13 hospitals admitted patients for certain common medical diagnoses where admission as an inpatient was medically unnecessary and appropriate care could have been provided in a less costly outpatient or observation setting.
“This settlement demonstrates this office’s commitment to protecting our federal health care programs,” said U.S. Attorney Melinda Haag for the Northern District of California. “We will continue to aggressively and appropriately pursue False Claims Act allegations of wrongdoing in the health care industry.”
As part of today’s agreement, Dignity entered into a corporate integrity agreement with the U.S. Department of Health and Human Services – Office of Inspector General (HHS-OIG) requiring the company to engage in significant compliance efforts over the next five years. Under the agreement, Dignity is required to retain independent review organizations to review the accuracy of the company’s claims for services furnished to federal health care program beneficiaries.
“Hospitals that attempt to boost profits by admitting patients for expensive and unnecessary inpatient hospital stays will be held accountable,” said Special Agent in Charge Ivan Negroni of HHS-OIG’s San Francisco Office. “Both patients and taxpayers deserve to have medical decisions made solely on what is best for the patient based on medical necessity.”
This settlement resolves a lawsuit filed in the U.S. District Court for the Northern District of California by Kathleen Hawkins, a former employee of Dignity, under the qui tam or whistleblower provisions of the False Claims Act, which permit private citizens to bring lawsuits on behalf of the United States and obtain a portion of the government’s recovery. Hawkins will receive approximately $6.25 million.
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 was a result of a coordinated effort by the Civil Division, the U.S. Attorneys’ Offices for the Northern District of California and the Western District of New York and the HHS-OIG.
The case is captioned United States ex rel. Hawkins v. Catholic Healthcare West, et al., CV C 09-5604 JCS. The claims resolved by this settlement are allegations only and there has been no determination of liability.
Dignity Health Agrees to Pay $37 Million to Settle False Claims Act AllegationsRead the Press Release
SAN FRANCISCO – Dignity Health has agreed to pay the United States $37 million to settle allegations that 13 of its hospitals in California, Nevada, and Arizona knowingly submitted false claims to Medicare and TRICARE by admitting patients who could have been treated on a less costly, outpatient basis, announced today United States Attorney Melinda Haag, Acting Assistant Attorney General Joyce R. Branda for the Justice Department’s Civil Division, and U.S. Department of Health & Human Services, Office of Inspector General Special Agent in Charge Ivan Negroni. Dignity, formerly known as Catholic Healthcare West, is based in San Francisco and is one of the five largest hospital systems in the nation with 39 hospitals in three states.
“This settlement demonstrates this office’s commitment to protecting our federal health care programs,” said U.S. Attorney Melinda Haag for the Northern District of California. “We will continue to aggressively and appropriately pursue False Claims Act allegations of wrongdoing in the health care industry.”
“Charging the government for higher cost inpatient services that patients do not need wastes the country’s vital health care dollars,” said Acting Assistant Attorney General Joyce R. Branda for the Justice Department’s Civil Division. “This department will continue its work to stop abuses of the nation’s health care resources and to ensure patients receive the most appropriate care.”
The settlement resolves allegations that 13 Dignity Health hospitals knowingly overcharged Medicare and TRICARE, part of the military health care program, for inpatient services for patients who should have been treated on a less costly, outpatient basis. Because hospitals generally receive significantly higher payments from federal health care programs for inpatient admissions as opposed to outpatient treatment, the admission of numerous patients who do not need inpatient care, as alleged here, can result in substantial financial harm to federal health care programs.
The United States alleged that from 2006 through 2010, 13 Dignity hospitals billed Medicare and TRICARE for inpatient care for certain patients who underwent elective cardiovascular procedures (e.g., stents, pacemakers) in scheduled surgeries when the claims should have been billed as outpatient surgeries. In addition, the government alleged that from 2000 through 2008, four of the hospitals billed Medicare for beneficiaries undergoing elective kyphoplasty procedures, which are minimally-invasive and performed to treat certain spinal compression fractures that should have been billed as less costly outpatient procedures. Lastly, the government alleged that from 2006 through 2010, 13 hospitals admitted patients for certain common medical diagnoses where admission as an inpatient was medically unnecessary and appropriate care could have been provided in a less costly outpatient or observation setting.
As part of today’s agreement, Dignity entered into a corporate integrity agreement with the U.S. Department of Health and Human Services – Office of Inspector General (HHS-OIG) requiring the company to engage in significant compliance efforts over the next five years. Under the agreement, Dignity is required to retain independent review organizations to review the accuracy of the company’s claims for services furnished to federal health care program beneficiaries.
“Hospitals that attempt to boost profits by admitting patients for expensive and unnecessary inpatient hospital stays will be held accountable,” said Special Agent in Charge Ivan Negroni of HHS-OIG’s San Francisco Office. “Both patients and taxpayers deserve to have medical decisions made solely on what is best for the patient based on medical necessity.”
This settlement resolves a lawsuit filed in the U.S. District Court for the Northern District of California by Kathleen Hawkins, a former employee of Dignity, under the qui tam or whistleblower provisions of the False Claims Act, which permit private citizens to bring lawsuits on behalf of the United States and obtain a portion of the government’s recovery. Hawkins will receive approximately $6.25 million.
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.
Ila C. Deiss and Erica Blachman Hitchings are the Assistant U.S. Attorneys who handled the case and were assisted by Jonathan Birch, Michael Zehr, and Jessica Meegan. Senior Trial Attorney Counsel Marie Bonkowski of the U.S. Department of Justice's Civil Division also handled the matter, with assistance from Anthony Gould. The settlement is the result of an investigation by the U.S. Attorney's Office for the Northern District of California, the Department of Justice's Civil Division, and the U.S. Department of Health and Human Services Office of Inspector General. The U.S. Attorney's Office for the Western District of New York provided assistance on the matter.
The case is captioned United States ex rel. Hawkins v. Catholic Healthcare West, et al., CV C 09-5604 JCS. The claims resolved by this settlement are allegations only and there has been no determination of liability.
(Dignity Health settlement agreement )