Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Tuesday 16 September 2014
Rochester Man Indicted on Charges of Attempting to Provide Material Support by Recruiting Multiple Individuals to Join ISIS, Attempting to Kill U.S. Soldiers, and Possession of Firearms and SilencersRead the Press Release
ROCHESTER, N.Y.—Attorney General Eric Holder, Assistant Attorney General for National Security John Carlin and U.S. Attorney William J. Hochul Jr. for the Western District of New York announced today that a federal grand jury in Rochester has returned a seven-count indictment charging Mufid A. Elfgeeh, 30, of Rochester, with three counts of attempting to provide material support and resources to the Islamic State of Iraq and the Levant (ISIL), aka the Islamic State of Iraq and Syria (ISIS), a designated foreign terrorist organization. In addition, Elfgeeh is also charged with one count of attempted murder of current and former members of the United States military, one count of possessing firearms equipped with silencers in furtherance of a crime of violence, and two counts of receipt and possession of unregistered firearm silencers.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent unless and until proven guilty.
“We will remain aggressive in identifying and disrupting those who seek to provide support to ISIL and other terrorist groups that are bent on inflicting harm upon Americans,” said Attorney General Holder. “As this case shows, our agents and prosecutors are using all the investigative tools at our disposal to break up these plots before individuals can put their plans into action. We are focused on breaking up these activities on the front end, before supporters of ISIL can make good on plans to travel to the region or recruit sympathizers to this cause.”
“Disrupting and holding accountable those who seek to provide material support to foreign terrorist organizations is and shall remain a critical national security priority,” said Assistant Attorney General Carlin. “I want to thank the agents, analysts and prosecutors who are responsible for the arrest and charges in this case.”
“With today's indictment of Mufid Elfgeehr, the government demonstrates that it will use all available tools to disrupt and defeat ISIL,” said U.S. Attorney Hochul. “The case also demonstrates that by working with the community, law enforcement is able to identify those who would harm our country or our returning soldiers.”
The material support charges each carry a maximum sentence of 15 years in prison, the attempted murder charge carries a maximum sentence of 20 years in prison, the firearms possession charge carries a mandatory minimum sentence of 30 years and a maximum of life in prison, and the firearm silencer charges each carry a maximum sentence of 10 years in prison.
According to court records, Elfgeeh attempted to provide material support to ISIS in the form of personnel, namely three individuals, two of whom were cooperating with the FBI. Elfgeeh attempted to assist all three individuals in traveling to Syria to join and fight on behalf of ISIS. Elfgeeh also plotted to shoot and kill members of the United States military who had returned from Iraq. As part of the plan to kill soldiers, Elfgeeh purchased two handguns equipped with firearm silencers and ammunition from a confidential source. The handguns were made inoperable by the FBI before the confidential source gave them to Elfgeeh.
According to court documents, in 2013 and into early 2014, Elfgeeh encouraged the two confidential sources (CS-1 and CS-2) to travel overseas to engage in violent jihad. After CS-1 and CS-2 agreed to travel to Syria to join ISIS, Elfgeeh took several steps to prepare them for the trip. Elfgeeh also sent $600 to an individual in Yemen for the purpose of assisting that individual in traveling from Yemen to Syria for the purpose of joining and fighting on behalf of ISIS.
Court documents also indicate that Elfgeeh first discussed the idea of shooting United States military members in December 2013 when he told CS-2 that he was thinking about getting a gun and ammunition, putting on a bulletproof vest, and “just go[ing] around and start shooting.” In February 2014, Elfgeeh told CS-2 that he needed a handgun and silencer. Elfgeeh later gave CS-2 $1,050 in cash to purchase two handguns equipped with silencers and ammunition. On May 31, 2014, CS-2 delivered the two handguns equipped with silencers and ammunition to Elfgeeh. After Elfgeeh took possession of the items, he was arrested by members of the Rochester Joint Terrorism Task Force. Elfgeeh is currently being held in custody.
The indictment is the result of an investigation on the part of the Rochester Joint Terrorism Task Force of the Federal Bureau of Investigation.
The defendant is being prosecuted by Assistant United States Attorneys Brett A. Harvey and Frank H. Sherman, with the assistance of Trial Attorney Steven P. Ward of the National Security Division’s Counterterrorism Section.Ringleader Sentenced for Million Dollar Bank Fraud Conducted in California and Nevada CasinosRead the Press Release
SAN DIEGO – United States Attorney Laura E. Duffy announced today that Ara Keshishyan was sentenced last Friday to 57 months’ imprisonment for leading and organizing a 14-defendant conspiracy to steal more than $1,000,000 from Citibank using cash advance kiosks in a dozen casinos from Southern California to Las Vegas. Judge Sammartino also ordered Keshishyan to pay back the $1,045,585 stolen from Citibank.
Keshishyan presided over a conspiracy to exploit a gap in Citibank’s electronic transaction security protocols in order to overdraw more than 20 Citibank accounts by tens of thousands of dollars each. The scheme worked as follows: Keshishyan recruited conspirators to open Citibank checking accounts that Keshishyan would fund with “seed” money that would form the basis for future fraudulent withdrawals. Keshishyan and his various conspirators then traveled to casinos in Southern California and Nevada, including the Morongo, Pechanga, San Manuel, Agua Caliente, Chukchansi, and Spa Resort casinos in California; the Tropicana, Wynn, Bicycle, and Whiskey Pete’s casinos in Las Vegas, Nevada; and Harrah’s in Laughlin, Nevada. Once inside the casino, Keshishyan instructed the conspirator how to conduct identical, fraudulent withdrawals at cash advance kiosks within a short time window in order to circumvent Citibank security protocols. Keshishyan’s technique exploited a glitch that allowed his conspirators to withdraw several times the amount of seed money deposited into the accounts. In one case, Keshishyan and one of the co-conspirators were able to withdraw 10 times the amount of money deposited into one of the accounts opened in furtherance of the fraud. The conspirators were careful to keep their deposits and withdrawals under $10,000 (typically between $9,000 and $10,000) in order to avoid federal transaction reporting requirements. As the organizer of the conspiracy, Keshishyan personally took a cut of every fraudulent withdrawal that he directed.
United States Attorney Duffy said, “This is an example of a class of cyber-fraud that burdens our financial system and results in a higher cost of doing business for American consumers. Along with our agency partners, my office is committed to detecting and prosecuting these schemes in whatever form they take.”
FBI Special Agent in Charge Daphne Hearn commented, “While advancements in technology have created a world of accessibility to users and a convenience for consumers, they have also left room for cyber criminals to exploit even the smallest of loopholes. The FBI will continue to use our investigative expertise in cyber and financial crimes to pursue those who illegally abuse our financial system for their own personal gain.”
DEFENDANT Case Number: Ara Keshishyan Age: 32 Fillmore, CA CHARGESConspiracy to Commit Bank Fraud – Title 18, U.S.C., Section 371
INVESTIGATING AGENCYFederal Bureau of Investigation
*Indictments and complaints are not evidence that the defendant committed the crime charged. All defendants are presumed innocent until the United States meets its burden in court of proving guilt beyond a reasonable doubt.
Reading Woman Charged in Straw Purchasing CaseRead the Press Release
PHILADELPHIA - Angelica Leonore Delmoral, 26, of Reading, PA, was charged by indictment, unsealed today, with six counts of making false statements to federal firearms licensees. The indictment charges that the defendant straw purchased ten pistols for another person between July 19, 2011 and July 23, 2011.
According to the indictment, E.K.B., a convicted felon, offered to pay the defendant to buy handguns for him. Delmoral bought ten pistols and ammunition from five gun dealers. Delmoral turned over each pistol and any ammunition to E.K.B. and Person #1, who took the handguns to New York City.
If convicted of all charges, the defendant faces a maximum of 30 years in prison, three years of supervised release, a $1.5 million fine, and a $600 special assessment.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and is being prosecuted by Assistant United States Attorney Eric B. Henson.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Click here to view the indictment.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Owner of Foreign Exchange Currency Trading Company Executive Sentenced to Nine Years in PrisonRead the Press Release
BOSTON – A Hopkinton man, and former owner of Boston Trading and Research, was sentenced this afternoon to nine years in prison after pleading guilty to charges that he and his business partner defrauded more than 700 investors out of more than $30 million.
Craig K. Karlis, 54, was sentenced by U.S. Senior District Court Judge Mark L. Wolf to nine years in prison, three years of supervised release, and ordered to pay $4,378,306 in restitution to the fraud victims as well as $457,438 to the Internal Revenue Service. In March 2014, Karlis pleaded guilty to nine counts of wire fraud and two counts of tax-related crimes. Karlis’ business partner, Ahmet Devrim Akyil, was also charged, but remains a fugitive and is believed to be in his native Turkey.
“By any measure, Boston is one of this nation’s leading financial centers, with more than a trillion of dollars under management,” said United States Attorney Carmen M. Ortiz. “This prosecution – aimed at protecting this robust market – is reflective of the rapidly developing partnership among the United States Attorney’s Office, the U.S. Securities and Exchange Commission, and the Federal Bureau of Investigation. While the criminal enforcement of corporate and securities laws are not often headline news, they are at the heart of the United States Attorney’s Office growing white collar enforcement effort.”In 2007, Karlis and Akyil founded Boston Trading and Research (BTR) and recruited customers to open accounts so that Akyil could trade the customers' money in the foreign currency exchange (FOREX) market. By July 2008, BTR had approximately 1,200 customers and more than $35 million under management.
Among other things, Karlis and Akyil falsely told customers that BTR was compensated based on a percentage of trading profits and that, through BTR's computerized customer trading platform and daily e-mailed account statements, customers saw every trade that was placed using customer money. Karlis and Akyil also falsely told customers that BTR had various different strategies to reduce risk, including most notably that, once BTR had lost 30% of the value of an individual customer's account, the computerized platform automatically shut down all trading on that account and trading would not resume unless and until the customer gave BTR permission to continue trading.
From the outset of the business, Karlis and Akyil ignored these, and a number of other, representations. Karlis and Akyil did not limit what BTR took to only a percentage of the customers' profit. Rather, Karlis and Akyil used millions of dollars from BTR customer accounts to pay BTR's business expenses and to pay for their own personal expenses, such as houses, cars, and jewelry. Karlis and Akyil concealed this misappropriation from BTR's customers on the computerized customer platform and account statements, which did not show all of the trades that BTR had placed using customer money. Finally, contrary to what Karlis and Akyil had told customers, the computerized platform did not have an automatic shut-down mechanism once BTR lost 30% of the value of customer accounts. In fact, over the course of BTR's existence, Akyil ignored the 30% Astop-loss@limit several times and then, in August and September 2008, continued trading long after losing more than 30%, eventually losing approximately 90% of the customers' money, or more than $30 million.
Karlis also filed a false tax document with the IRS in which he concealed the fact that he owned a second home that he had purchased with more than $600,000 in BTR customer money and then filed a false 2008 tax return in which he failed to report approximately $1.3 million in income he had received from BTR.
United States Attorney Carmen M. Ortiz; Vince B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and William P. Offord, Special Agent in Charge of the Internal Revenue Service's Criminal Investigation in Boston, made the announcement today. The SEC and the Commodity Futures Trading Commission also cooperated with the investigation. The case is being prosecuted by Assistant U.S. Attorneys Sarah E. Walters, Chief of Ortiz's Economic Crimes Unit and Adam J. Bookbinder, Chief of her Cybercrime Unit.
One Man Involved in Southeast Connecticut Narcotics Ring Pleads Guilty, Another SentencedRead the Press Release
Follow @USAO_CT
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ANGEL COLLAZO GARCIA, also known as “Yuyo,” 47, of New London, pleaded guilty today in Hartford federal court to conspiring to distribute cocaine in southeastern Connecticut. In addition, JOSE REYNOSO MONEGRO, also known as “Culito,” 45, of New York, who was charged as a result of the same investigation, was sentenced yesterday by U.S. District Judge Janet Bond Arterton in New Haven to 35 months of imprisonment, followed by three years of supervised release, for trafficking heroin.
According to court documents and statements made in court, in early 2012, Homeland Security Investigations (“HSI”), the U.S. Secret Service and the New London Police Department initiated an investigation to combat the large-scale trafficking of heroin and cocaine from the Dominican Republic and Puerto Rico into and around southeastern Connecticut. The investigation revealed that certain members of the conspiracy coordinated the shipment of heroin, and sometimes cocaine, via human couriers from the Dominican Republic to the United States. Other members of the conspiracy obtained kilogram-quantities of cocaine in Puerto Rico and then mailed the drug to locations in and around New London where it was sold to distributors and customers. Narcotics were also obtained from sources in New York City and Rhode Island.
More than 100 individuals were charged in April 2013 with federal and state offenses as a result of this investigation.
COLLAZO GARCIA pleaded guilty to one count of conspiracy to possess with the intent to distribute cocaine. According to court documents and statements made in court, he sold cocaine, marijuana and other drugs from the “Green Garages,” a series of garage bays on Walker and Bristol Streets in New London.
COLAZZO GARCIA is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant on December 3, 2014, at which time he faces a maximum term of imprisonment of 20 years.
The investigation revealed that Luis Ariel Capellan Maldonado received heroin from a Dominican-based source of supply through New York and then distributed the drug to his own customer base in and around New London. REYNOSO MONEGRO helped facilitate these deals by holding cash from Capellan Maldonado for his New York source of supply.
On January 6, 2014, REYNOSO MONEGRO pleaded guilty to one count of conspiracy to possess with the intent to distribute heroin.
Capellan Maldonado has also pleaded guilty and awaits sentencing.
This matter is being investigated by Homeland Security Investigations; U.S. Secret Service; U.S. Postal Inspection Service; Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Customs and Border Protection, Office of Air and Marine; Connecticut State Police; New London Police Department, Norwich Police Department, Waterford Police Department, Groton Town Police Department, East Lyme Police Department and Putnam Police Department. The United States Marshals Service; ICE Enforcement and Removal Operations; Drug Enforcement Administration; HSI Assistant Attaché, Santo Domingo, Dominican Republic; HSI Arecibo, Puerto Rico Resident Office; Internal Revenue Service – Criminal Investigation; Connecticut Department of Correction, Parole and Community Services; and the Groton City, Willimantic, New Haven and Bristol Police Departments have provided valuable assistance to the investigation.
The federal cases are being prosecuted by Assistant U.S. Attorneys Alina P. Reynolds, Sarah P. Karwan and Henry K. Kopel. The state cases are being prosecuted by the State’s Attorney for the New London Judicial District and Senior Assistant State’s Attorneys Paul Narducci and Stephen Carney.PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]New York Resident Pleads Guilty to Aggravated Identity Theft, Credit Card FraudRead the Press Release
PROVIDENCE, R.I. – Yvener Jean-Baptiste, 27, of Brooklyn, N.Y., pleaded guilty in U.S. District Court in Providence on Monday to using counterfeit credit cards with account numbers belonging to actual credit card owners to purchase $172,661.09 in Target and Wal-Mart store gift cards at Rhode Island stores in November 2013, announced United States Attorney Peter F. Neronha; Ted A. Arruda, Resident Agent in Charge of the Providence Office of the U.S. Secret Service; and Lincoln Police Chief Brian W. Sullivan.
Appearing before U.S. District Court Chief Judge William E. Smith, Jean-Baptiste admitted to the court that on five occasions between November 1 and November 30, 2013, he and others purchased gift cards totaling $172,661.09 at Target stores in Lincoln, at the Warwick Mall and on Bald Hill Road, and at a Wal-Mart store in Warwick, using counterfeit credit cards with actual account numbers belonging to other individuals. The owners of those account numbers were unaware that their personal identifying information was used to produce the counterfeit credit cards.
According to information presented to the court, Jean-Baptiste provided the purchased gift cards to an individual in New York. Jean-Baptiste typically received $200 for every $800 fraudulent transaction he conducted. The investigation revealed that the gift cards were redeemed at stores in New York the same day or the day after being purchased in Rhode Island.
According to information presented to the court, Jean-Baptiste returned to the Target store in Lincoln on November 30, 2013, one day after he and another person purchased $75,894.01 worth of Target gift cards using six counterfeit credit cards. He returned to the store in a vehicle previously identified by a Target employee as being driven by the individuals who committed credit card fraud the previous day. The vehicle was stopped by Lincoln Police. Officers arrested Jean-Baptiste after they discovered ten counterfeit credit cards, a counterfeit driver’s license and multiple Target gift cards inside the vehicle.
Yvener Jean-Baptiste pleaded guilty to one count each of credit card fraud and aggravated identity theft. He is scheduled to be sentenced on December 5, 2014. At sentencing, he faces statutory penalties of a mandatory minimum of two years and up to 12 years in federal prison, and a fine of up to $500,000 or twice the pecuniary gain or loss resulting from the crimes.
The case is being prosecuted by Assistant U.S. Attorney Lee H. Vilker.
The matter was investigated by the U.S. Secret Service and the Lincoln Police Department###
To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]New Mexico Jury Finds California Man Guilty of Violating the Sex Offender Registration and Notification ActRead the Press Release
ALBUQUERQUE – A federal jury sitting in Las Cruces, N.M., returned a verdict earlier today finding Eric Leo Alexander, 36, of Anaheim, Calif., guilty of violating the Sex Offender Registration and Notification Act (SORNA) after a two-day trial. The guilty verdict was announced by U.S. Attorney Damon P. Martinez and U.S. Marshal Conrad E. Candelaria.
SORNA, also known as the Adam Walsh Protection and Safety Act, requires that a convicted sex offender register in each jurisdiction where the offender resides, where the offender is employed, or where the offender is a student, and that the sex offender maintain current registrations.
“The Marshals Service for the District of New Mexico is dedicated to the safety of all communities within New Mexico, which is evident in this recent arrest of a dangerous and violent fugitive,” said U.S. Marshal Conrad E. Candelaria. “Regardless of the time, day or circumstance, when investigative leads are referred to Deputy United States Marshals, the information will be reviewed, validated, with the goal of apprehending dangerous fugitives. On many occasions, fugitive investigations, arrests, and prosecutions, are successful because of our partners from local, county, state and tribal police agencies, which together with the United States Attorney’s Office, we are making safer communities for our children, families and friends.”
Alexander was arrested in Anaheim, Calif., on Jan. 10, 2014, on a criminal complaint charging him with violating SORNA by failing to register as a sex offender after traveling in interstate commerce, and subsequently transferred to New Mexico to face the charges in this case. According to the indictment, which was filed on May 14, 2014, Alexander violated SORNA by failing to register as a sex offender in Doña Ana County, N.M., between Sept. 1, 2013 and Sept. 23, 2013.
Trial against Alexander began yesterday. The evidence established that the U.S. Marshals Service initiated an investigation into Alexander in late Sept. 2013, after California authorities requested their assistance in locating and apprehending Alexander. The California authorities reported that Alexander, a fugitive who had violated the conditions of his probation, was believed to be residing in Las Cruces.
Through investigation, the U.S. Marshals Service learned that Alexander’s criminal history included a 2012 conviction for sexually assaulting a minor for which he was sentenced to four years in a California state prison. After he was convicted, Alexander was twice informed of his requirements to register as a sex offender. Alexander also signed forms acknowledging that he was required to register as a sex offender for the rest of his life and update his registration annually. Although Alexander registered as a sex offender in California after he was released from prison in Aug. 2013, he then traveled to Las Cruces without informing the California authorities of his intention to leave.
The U.S. Marshals Service’s investigation revealed that as of Sept. 23, 2013, Alexander had been living at a Las Cruces residence with a woman and her two children for three weeks. It also revealed that Alexander had not registered with the Doña Ana County Sheriff’s Department within three days of moving to New Mexico as required by SORNA.
The jury deliberated approximately 20 minutes before returning a verdict of guilty on the sole count of the indictment.
Alexander has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled. At sentencing, Alexander faces a statutory maximum penalty of ten years in prison.
U.S. Attorney Damon P. Martinez praised the efforts of the U.S. Marshals Service in the investigation. He also thanked the Doña Ana County Sheriff’s Department, Tustin (Calif.) Police Department and Santa Ana (Calif.) Police Department for their assistance in the investigation.
The case is being prosecuted by Assistant U.S Attorneys Amanda Gould and Luis A. Martinez of the U.S. Attorney’s Las Cruces Branch Office.
Miami Resident Sentenced in Identity Theft Tax Fraud SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Donnell Young, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Paula Reid, Special Agent in Charge, U.S. Secret Service (USSS), and Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), announce that Josue Pierre, 30, of Miami, was sentenced today before U.S. District Judge Donald M. Middlebrooks to 30 months in prison, followed by three years of supervised release.
Pierre previously pled guilty to one count of use of unauthorized access devices, in violation of Title 18, United States Code, Section 1029(a)(2), and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1).
According to court documents, in early 2013, Pierre used his brother's IRS electronic filing identification number (EFlN) to obtain a batch of pre-paid debit cards from a tax refund payment company. Pierre then used this EFIN to file tax returns in other people's names containing false information for the purpose of obtaining refunds from the Department of Treasury. The refunds were paid out onto pre-paid debit cards activated in other people’s names, and Pierre made withdrawals on these debit cards at ATM locations.
Mr. Ferrer commended the investigative efforts of the FBI, IRS-CI, USSS and ICE-HSI. This case is being prosecuted by Assistant U.S. Attorney Michael N. Berger.
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.
Man Sentenced to 30 Years for Child Sex Trafficking in Grand RapidsRead the Press Release
GRAND RAPIDS, MICHIGAN – Eddie Allen Jackson, 31, of Grand Rapids, was sentenced today to 30 years in federal prison in West Michigan’s first federal child sex trafficking case. A jury convicted Jackson in April 2014 on three counts of child sex trafficking.
From July to August 2012, Jackson recruited teenage girls ages 14, 15, and 16 in Muskegon to work for him by prostituting on the streets of Grand Rapids. He targeted vulnerable girls with troubled backgrounds, made them walk the streets for money, and took them to local hotels and semi-vacant houses to meet customers. Jackson controlled the girls through drugs, alcohol, threats, and violence. He also manipulated them by making them feel like he loved and cared about them when they felt that no one else did. The teens, whose identities are protected, were in 8th, 9th, and 10th grades at the time. In delivering the sentence today, the judge stated, “We have three young girls, who will become young women, who were significantly harmed by what he was doing” but yet Jackson “has not accepted any responsibility for this. None.” The judge remarked that the victims were “stripped of innocence and decency that these girls were entitled to have.”
“Protecting children is a top priority in our district, and those who prey on children will be prosecuted to the fullest extent of the law. I am pleased local, state, and federal authorities are working together effectively to locate and stop sex traffickers,” said U.S. Attorney Patrick A. Miles, Jr.
“Fighting to prevent the sexual exploitation of children is of the highest priority for local, state, and federal authorities, as reflected in the efforts of the FBI’s West Michigan-Based Child Exploitation Task Force,” stated Paul M. Abbate, Special Agent in Charge of the FBI Detroit Field Office. “While no sentencing can ever fully repair the damage caused by crimes like this, Mr. Jackson’s punishment demonstrates the relentless fortitude of law enforcement to protect our children and bring those who prey upon them to justice.”
The federal sex trafficking laws protect children all the way to age 18 from being pimped for sex. Regular citizens – especially in schools, restaurants, convenience stores, and hotels – are in the best position to recognize when a child could be at risk of sex trafficking. While kids of
every type of background can be lured into prostitution, some warning factors for child sex trafficking include:• recent friendship or attention between a teenager and an older adult who may drive the teen places or provide a place to stay overnight;
• lack of organized afterschool and summer activities and supervision;
• running away (not necessarily overnight);
• suicidal/depressed;
• tension and fighting at home;
• unexplained new cash flow – including new clothing, nails, and hair styles (for girls) generally outside the teen’s financial reach;
• new cell phone not purchased by parent/guardian;
• checking in at a hotel with no luggage or sneaking into a hotel through a side door;
• drug/alcohol dependency; and
• low self-esteem.
This case is part of Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. The U.S. Attorney's Office; county prosecutor's offices; the Internet Crimes Against Children task force (ICAC); and federal, state, and local law enforcement are working closely together to locate, apprehend, and prosecute individuals who exploit children. The partners in Project Safe Childhood work to educate communities about the dangers of online child exploitation and to teach children how to protect themselves. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov. Individuals with information or concerns about possible child exploitation should contact local law enforcement.
The FBI, in conjunction with the West Michigan Based Child Exploitation Task Force (WEBCHEX), the Grand Rapids Police Department, and the Muskegon Police Department investigated the case. Assistant U.S. Attorneys Tessa K. Hessmiller and Russell A. Kavalhuna prosecuted the case.
END
Los Angeles Sheriff’s Deputy Convicted of Obstruction of Justice for Interfering with Federal Civil Rights Investigation in County JailsRead the Press Release
LOS ANGELES – A deputy in the Los Angeles Sheriff’s Department was found guilty this afternoon of obstruction of justice for interfering with a grand jury investigation into misconduct at the Men’s Central Jail.
James Sexton becomes the seventh sworn officer to be found guilty of attempting to quash an investigation by the FBI into civil rights abuses at jail facilities operated by the Sheriff’s Department. The jury determined that Sexton was part of a broad conspiracy to obstruct justice – a plot in which conspirators, including two lieutenants, attempted to influence witnesses, threatened an FBI agent with arrest and concealed an FBI informant who should have been turned over to federal authorities.
“This case involves a select group of Sheriff’s Deputies who were tasked with ensuring safety and security within the jails, but they violated the law by trying to protect their department from federal scrutiny,” said Acting United States Attorney Stephanie Yonekura. “This case, which has now resulted the conviction of all seven charged, proves those who tarnish their badge and their oath will be brought to justice.”
Bill Lewis, the Assistant Director in Charge of the FBI’s Los Angeles Division, said: “Today’s verdict is another reminder that law enforcement must work together to protect the civil rights of all we serve. As we move toward ending a period of corruption and restoring trust at the Men’s Central Jail, we should also be reminded to respect the employees of the Los Angeles County Sheriff's Department who have continued to serve with distinction throughout the duration of this investigation.”
Sexton was found guilty of conspiring to obstruct justice and obstruction of justice. As a result of today’s convictions, Sexton faces a statutory maximum penalty of 15 years in federal prison when he is sentenced on December 1 by United States District Judge Percy Anderson.
The conspiracy to obstruct justice began in the summer of 2011 after sheriff’s deputies assigned to the Men’s Central Jail learned that a jail inmate was an FBI informant and was acting as a cooperator in a federal investigation into corruption and civil rights violations at the jail. The evidence showed that the defendants learned that the inmate received a cellular phone from a deputy sheriff who took a bribe and that the inmate was part of a federal civil rights investigation. Those involved in the obstruction scheme took affirmative steps to hide the cooperator from the FBI and the United States Marshals Service, which was attempting to bring the inmate into federal custody pursuant to an order issued by a federal judge. As part of the conspiracy, records were altered to make it appear as if the cooperator had been released, but he was re-booked under different names.
The jury heard evidence that Sexton, who was part of a gang intelligence unit called Operation Safe Jails, changed the name of the informant in the jail computer system and changed his booking number, which allowed members of the conspiracy to hide the informant from the FBI.
Six co-conspirators who were tried separated were found guilty of obstruction of justice and other charges earlier this summer (see: http://www.justice.gov/usao/cac/Pressroom/2014/082.html). Those defendants are scheduled to be sentenced by Judge Anderson on Monday, September 22.
Release No. 14-120
Lexington Man Sentenced to 20 Years for Receiving and Possessing Thousands of Child Pornography ImagesRead the Press Release
LEXINGTON, KY -A Lexington man, previously convicted of receiving and possessing thousands of child pornography videos, has been sentenced to 20 years in prison.
On Monday, U.S. District Judge Joseph M. Hood formally sentenced Erik A. Hentzen, 26, and also ordered him to serve a lifetime of supervised release, following the completion of his sentence. Under federal law, Hentzen will have to serve at least 85 percent of his prison sentence.
The evidence at Hentzen’s trial established that, from May 2012 to March 2013, Hentzen downloaded thousands of videos, which depicted prepubescent children engaged in sexually explicit conduct.
On March 23, 2013, investigators with the Kentucky Attorney General’s Office executed a search warrant and seized multiple computers belonging to Hentzen; the computers contained more than 4,000 videos depicting child pornography.
The investigation started when authorities discovered that Hentzen had stolen the internet signal of a neighbor in his apartment complex. Authorities later located numerous child pornography videos that had been made available for download over the internet. Investigators then traced the location of the computer to Hentzen’s apartment in downtown Lexington.
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky; Jack Conway, Kentucky Attorney General; and Gary T. Hartwig, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), jointly announced the sentence.
The investigation was conducted by the Office of the Attorney General’s Cyber Crimes Unit and HSI. The Fort Mitchell Branch of the U.S. Attorney’s Office prosecuted the case on behalf of the federal government.
Lansing Fugitive and Wife ArrestedRead the Press Release
GRAND RAPIDS, MICHIGAN – Patrick A. Miles, Jr., United States Attorney for the Western District of Michigan, and Paul M. Abbate, Special Agent in Charge of the FBI in Michigan, announced the arrest of a Lansing fugitive and his wife. Eric Lopez, age 40, of Lansing, was arrested by the FBI as he left City Hall in Lansing on September 9, 2014. The FBI was assisted in its fugitive investigation by the Tri-County Metro Narcotics Squad. Eric Lopez had been indicted by a federal grand jury in Grand Rapids on April 16, 2014, together with co-defendants Jose Alvarez, Rudy Gelista, Nickey Joe Duprest, and Eddie Ramirez, on a charge of conspiracy to distribute cocaine and marijuana, and had avoided apprehension since that time. His wife, Christina Lopez, age 39, was also arrested. She has been charged with making false statements to the FBI, and for being an accessory after the fact to her husband’s drug charge by assisting him in avoiding apprehension. Eric Lopez has been ordered detained without bond pending trial with co-defendant Duprest, who has pled not guilty. The remaining co-defendants have all pled guilty. Christina Lopez was released on bond pending trial on her charges.
These indictments and convictions were the result of an ongoing Drug Task Force investigation in the Lansing, Michigan, area led by the FBI and the Tri-County Metro Narcotics Squad. The case is being prosecuted by Assistant U.S. Attorney John Bruha.
The charges are merely accusations, and a defendant is presumed innocent until and unless proven guilty in a court of law..
END
Lafayette Man Sentenced to 41 Months in Prison for Possessing a Firearm after Being Convicted of a FelonyRead the Press Release
LAFAYETTE, La. –A Lafayette man was sentenced Monday to 41 months in prison and three years of supervised release for being a convicted felon in possession of a firearm, U.S. Attorney Stephanie A. Finley announced today.
David J. Narcisse Jr., 33, of Lafayette, was sentenced by U.S. District Judge Richard Haik for one count of felon in possession of a firearm. According to evidence presented at the October 15, 2014 guilty plea, law enforcement discovered that a 12 gauge semiautomatic shotgun that had previously been reported stolen had also been pawned on September 6, 2012 in Lafayette. The person who pawned the shotgun stated that Narcisse had given it to him. After being arrested for another violation, Narcisse admitted to buying the firearm from a friend. Narcisse has previously been convicted in April of 2006 in 15th Judicial District Court in Lafayette of possession with intent to distribute cocaine; in August of 2008 in 15th Judicial District Court in Lafayette of Schedule II, prohibited acts; and in March 2010 in 16th Judicial District Court in St. Martinville of illegally carrying a weapon while in possession of a controlled dangerous substance.
The ATF, Louisiana Probation and Parole, and East Baton Rouge Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Myers P. Namie prosecuted the case as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide program designed to reduce violence by aggressively enforcing existing federal firearms laws.
Kentucky Man Sentenced to 10 Years for Soliciting Tennessee TeenagersRead the Press Release
Memphis, TN – Billy Ray Wyatt, age 54, of Hazel, KY, was sentenced to 10 years or 120 months in federal prison Friday following his guilty plea to one count of coercion of a minor to engage in sexual activity, announced Edward L. Stanton III, United States Attorney for the Western District of Tennessee.
Beginning in February of 2012, Wyatt used the internet and social media to meet young females and groom them for sexual encounters. After meeting one 16-year-old girl from Paris, Henry County, Tenn., Wyatt drove to Tennessee and picked her up and took her back to Kentucky with the intent of having a sexual encounter. Wyatt is a former Henry County, Tenn. resident. Wyatt also communicated online and made overtures to an agent acting in an undercover capacity as a teenage female. In a recorded phone conversation, Wyatt talked to her about masturbation and what sexual acts he wanted to perform on her.
In addition to the prison sentence, U.S. District Judge J. Daniel Breen ordered Wyatt to serve five years of supervised release. There is no parole in the federal prison system.
This case was investigated by the Henry County Sheriff’s Office and the Federal Bureau of Investigation Child Exploitation Task Force. Assistant U.S. Attorney Debra Ireland represented the government.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative of 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, PSC 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 PSC, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/resources.html and click on the tab “resources.”
Individual Posing as Investment Adviser Sentenced to 46 Months for Operating A Million Dollar Investment Fraud SchemeRead the Press Release
Earlier today, a Brooklyn man who was convicted of wire fraud after defrauding a Hawaiian investor of $1 million was sentenced to 46 months of imprisonment to be followed by three years of supervised release and was ordered to pay $1 million in restitution. Telson Okhio, the vice president of Ohio Group Holdings, Inc. (“OGH”), an alleged investment firm, was sentenced by United States District Judge Roslynn R. Mauskopf at the federal courthouse in Brooklyn, New York. Okhio pleaded guilty to wire fraud in March 2012.
The sentence was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York.
Between February and April 2009, Okhio, posing as an investment adviser, solicited $5 million from an investor in Hawaii. Okhio assured the investor that he would invest his money in a $100 million trading platform in the foreign currency exchange market. Okhio also assured the investor that his investment would earn a 200 percent profit in four weeks and that his investment would never be at risk.
Almost immediately after the victim wired $5 million from a bank account in Hawaii to OGH’s bank account at a branch of Bank of America in Queens, New York, Okhio wire-transferred $1 million of the investment to his personal account at JPMorgan Chase in Queens, New York. From there, Okhio withdrew the $1 million through a series of cash and ATM withdrawals and wire transfers to third parties. The scheme resulted in approximately $1,000,000 in losses to the investor.
Soon after Okhio pleaded guilty, he attempted to withdraw his guilty plea. Following a hearing that spanned several months, Judge Mauskopf found that Okhio had lied several times during his testimony and denied his request to withdraw his guilty plea.
“Outwardly, Okhio wore the persona of a trusted investment adviser. In reality his image was a fraud and his promises part of the web of lies he used to ensnare his victim. Okhio sought to continue the con even after his guilty plea, as he attempted to deceive the court with his repeated lies. He viewed the court as just another ‘mark.’ He was wrong. Those who exploit investors for financial gain will be held accountable for their crimes and will face significant prison sentences,” stated United States Attorney Lynch.
Ms. Lynch extended her grateful appreciation to the Federal Bureau of Investigation, which led the government’s criminal investigation.
This prosecution was the result of efforts by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ Offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit http://www.StopFraud.gov.
The government’s case is being prosecuted by Assistant United States Attorney Sylvia Shweder.
The Defendant:
TELSON OKHIO
Age: 52
Brooklyn, NY
E.D.N.Y. Docket No. 12-CR-179 (RRM)
Indictment: Denver Man's Airplane, Cars, Cash Were Proceeds of Marijuana TraffickingRead the Press Release
WICHITA, KAN. – A federal indictment returned today in Wichita seeks the forfeiture of a business jet after the man flying the plane was arrested in July at the airport in Iola, Kan., U.S. Attorney Barry Grissom said.
Kenneth E. Weaver, 58, Denver, Colo., is charged in a superseding indictment with one count of possession with intent to distribute more than 50 kilograms of marijuana, one count of conspiracy to distribute marijuana, and one count of interstate travel in furtherance of drug trafficking.
The indictment seeks the forfeiture of a 1979 Israel Aircraft Industries Model 1124 jet aircraft, a 2007 Bentley Continental GT-C automobile and more than $450,000 in cash seized Aug. 8, 2014, in Sylmar, Calif.
Weaver was arrested July 11, 2014, after members of the Allen County Sheriff’s Office, the Wilson County Sheriff’s Office, the Kansas Highway Patrol and the Drug Enforcement Administration executed a search warrant on his plane and seized a load of marijuana.
If convicted, he faces a maximum penalty of 20 years in federal prison and a fine up to $1 million on the possession count, a penalty of not less than 10 years and a fine up to $4 million on the conspiracy count, and a maximum penalty of five years and a fine up to $250,000 on the interstate travel charge. The Allen County Sheriff’s Office, the Wilson County Sheriff’s Office, the Kansas Highway Patrol and the Drug Enforcement Administration investigated. Assistant U.S. Attorney Debra Barnett is prosecuting.
OTHER INDICTMENTS
Ryan B. Schmidt, 34, Wichita, Kan., is charged with two counts of robbery, two counts of brandishing a firearm during a robbery and one count of unlawful possession of a firearm following a felony conviction. The robberies are alleged to have occurred Sept. 4, 2014, and Aug. 19, 2014, in Wichita, Kan.
The indictment alleges that on Sept. 4, 2014, Schmidt entered the Gessler’s Drug Store at 4817 E. Douglas, pointed a handgun at an employee, and said, “I want your opiates.” The employee gave him seven bottles of hydrocodone and three bottles of promethazine.
The indictment also alleges that on Aug. 19, 2014, Schmidt entered the Parklane Pharmacy at 530 S. Oliver, pointed a handgun at an employee and demanded narcotics. The employee gave him two bottles of oxycodone and $120 in cash.
Upon conviction, the crimes carry the following penalties:
Robbery: A maximum penalty of 20 years and a fine up to $250,000 on each count.
Brandishing a firearm: A penalty of not less than five years and a fine up to $250,000 on each count.
Unlawful possession of a firearm following a felony conviction: A maximum penalty of 10 years and a fine up to $250,000.
The Wichita Police Department investigated. Assistant U.S. Attorney Alan Metzger is prosecuting.Justen L. Marks, 25, Wichita, Kan., is charged with one count of attempting to pass 15 counterfeit bills at the Walmart store at 501 E. Pawnee, and one count of possessing counterfeit currency. The crimes are alleged to have occurred Feb. 22, 2014, in Wichita, Kan.
If convicted, he faces a maximum of 20 years in federal prison and a fine up to $250,000 on each count. The Department of Homeland Security investigated. Assistant U.S. Attorney Alan Metzger is prosecuting.
Kevin Hamill, 26, Garden City, Kan., is charged with one count of unlawful possession of a firearm following a felony conviction, and one count of unlawful possession of ammunition after a felony conviction. The crimes are alleged to have occurred June 2, 2014, in Finney County, Kan.
If convicted, he faces a maximum penalty of 10 years in federal prison and a fine up to $250,000 on each count. The Garden City Police Department investigated. Special Assistant U.S. Attorney Michelle Jacobs is prosecuting.
Silvia Clemente-Rojo, 41, a citizen of Mexico, is charged with two counts of perjury, one count of buying a counterfeit Social Security card and one count of aggravated identity theft. The crimes are alleged to have occurred in September 2013 in Finney County, Kan.
If convicted, she faces a maximum penalty of five years in federal prison and a fine up to $250,000 on each count of perjury and on the count of buying a counterfeit Social Security card, and a mandatory consecutive two-year sentence on the aggravated identity theft count. The Kansas Department of Revenue and Homeland Security Investigations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
Saul Garcia-Hernandez, 38, a citizen of Mexico, is charged with one count of unlawfully re-entering the United States after being deported. He was found Aug. 27, 2014, in Sedgwick County, Kan.
If convicted, he faces a maximum penalty of two years in federal prison and a fine up to $250,000. ICE’s Enforcement and Removal Operations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
Guillermo Amparan-Mendoza, 38, a citizen of Mexico, is charged with one count of unlawfully re-entering the United States after being deported. He was found Aug. 27, 2014, in Sedgwick County, Kan.
If convicted, he faces a maximum penalty of two years in federal prison and a fine up to $250,000. ICE’s Enforcement and Removal Operations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
Leoga Beltran-Esquivel, 29, a citizen of Mexico, is charged with unlawfully re-entering the United States after being deported. He was found Aug. 28, 2014, in Sedgwick County, Kan.
If convicted, he faces a maximum penalty of two years in federal prison and a fine up to $250,000. Homeland Security Investigations investigated. Assistant U.S. Attorney Mona Furst is prosecuting.
Derik E. Steele, 29, Wichita, Kan., is charged with one count of unlawful possession of a firearm following a felony conviction, one count of unlawful possession of a firearm by a user of controlled substances, one count of possession of methamphetamine, and one count of possession of marijuana. The crimes are alleged to have occurred June 8, 2014, in in Sedgwick County, Kan.
If convicted, he faces a maximum penalty of 10 years in federal prison and a fine up to $250,000 on the firearm count and the ammunition count, and a maximum a year and a fine up to $250,000 on each of the misdemeanor drug possession counts. The Wichita Police Department investigated. Assistant U.S. Attorney Lanny Welch is investigating.
Juan Enrique Esguival-Meza, 48, a citizen of Mexico, is charged with unlawfully re-entering the United States after being deported. He was found Sept. 11, 2014, in Sedgwick County, Kan.
If convicted he faces a maximum penalty of two years in federal prison and a fine up to $250,000. ICE’s Enforcement and Removal Operations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
Luis Ramon Carrera-Morales, 59, a citizen of Mexico, is charged with one count of unlawfully re-entering the United States after being deported. HE was found Sept. 11, 2014 in Sedgwick County, Kan.If convicted he faces a maximum penalty of two years in federal prison and a fine up to $250,000. ICE’s Enforcement and Removal Operations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Honduran Man Pleads Guilty to Unlawful Reentry into United StatesRead the Press Release
Illegal Immigrant was Deported After Felony Drug Conviction
CHARLESTON, W. Va. - United States Attorney Booth Goodwin announced that Jorge Leonardo Reyes-Figueroa, 26, from Honduras plead guilty today in federal court in Charleston to the charge of illegal reentry into the United States following deportation.
In 2010, Reyes-Figueroa, an illegal immigrant from Honduras, was convicted in Adams County, Colorado of a felony drug offense involving heroin distribution. Following the criminal conviction, Reyes-Figueroa was deported to Honduras. Sometime thereafter, Reyes-Figueroa illegally reentered the United States. In May of 2014, officers with the West Virginia State Police found Reyes-Figueroa living in Ripley, West Virginia.
Reyes-Figueroa faces up to twenty years in prison, and a fine of $250,000 when sentenced on November 18, 2014. He is also subject to deportation from the United States back to Honduras.
The West Virginia State Police and the United States Department of Homeland Security conducted the investigation. Assistant United States Attorney Erik S. Goes is prosecuting the matter on behalf of the United States of America.
Holland Man Charged with Identity Theft and Making False StatementsRead the Press Release
Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, today announced an indictment was filed against Wael Ahmed Hageali, age 44, of Holland, Ohio.
The indictment charges Hageali with making a false statement on a passport application on March 17, 2014 and aggravated identity theft.
If convicted, the defendant’s sentence will be determined by the Court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, and the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agency in this case is the Department of State, Bureau of Diplomatic Security. The case is being handled by Assistant United States Attorney Noah P. Hood.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
- Hidalgo Man Sentenced for Exporting Grenade Launcher Barrels
Hattiesburg Contractor Pleads Guilty to Federal Kickback SchemeRead the Press Release
Hattiesburg, Miss. -- Local contractor Mike Miller, 48, of Hattiesburg, pled guilty on September 15, 2014, to a kickback scheme which defrauded the U.S. Department of Agriculture, announced U.S. Attorney Gregory K. Davis, FBI Acting Special Agent in Charge Johnnie Sharp and Special Agent in Charge Mary L. Lewis of the U.S. Department of Agriculture Office of Inspector General.
A federal grand jury returned an indictment on October 22, 2013, against Miller, his company, Michael Miller Construction, LLC, and others, charging them with various crimes including conspiracy to defraud the federal government, theft of government funds, and bid-rigging. Others listed in the indictment were also charged with false statements.
T.L. Pittman, Jr. owns multiple apartment complexes throughout the State of Mississippi which were financed through USDA. Pittman, through his company Century Management, Inc., contracted with Mike Miller to work for one of Pittman’s USDA-financed apartment complexes. Prior to working for Century Management, Miller was told by Pittman that he would have to pay Pittman a kickback in order to be awarded contracts from Century Management. Miller agreed and began paying Pittman cash from the contracts that he was awarded by Century Management. As part of the conspiracy, Miller would pay Tim Pittman, T.L. Pittman, Jr.’s son, the kickback in cash with the understanding that it would be passed along to his father, T.L. Pittman, Jr.
Between February 2008 and November 2008, Miller submitted various false bids in the names of fictitious companies purporting to be legitimate bids competing with Miller’s bid for work for Century Management at Liberty Place Apartments. These false bids submitted by Miller were all higher than Miller’s own bid in order to ensure Miller was awarded the contract. As a result, Miller was awarded the contract for Liberty Place Apartments, and ultimately paid more than $50,000 pursuant to the contract, some of which he used to kickback cash to T.L. Pittman, Jr., paying such cash through T.L. Pittman, Jr.’s son, Tim Pittman.
Miller will be sentenced by U.S. District Court Judge Keith Starrett in Hattiesburg on December 4, 2014, at 1:45 p.m. The maximum penalty for Conspiracy is 5 years in prison and a $250,000 fine.
T.L. Pittman, Jr. pled guilty in May, 2014 and will be sentenced on October 27, 2014. He faces a maximum penalty of ten years in federal prison and a $250,000 fine.
This case was investigated by the Federal Bureau of Investigation and the USDA Office of Inspector General. Assistant U.S. Attorney Mike Hurst is prosecuting the case.If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
Making sure that victims of federal crimes are treated with compassion, fairness and respect.
Training and seminars for Federal, State, and Local Law Enforcement Agencies.
Help us combat the proliferation of sexual exploitation crimes against children.
Hamilton Man Pleads Guilty to Bank Robbery, Owning Child PornographyRead the Press Release
CINCINNATI – Shane E. Bowlin, 39, of Hamilton, Ohio, pleaded guilty in U.S. District Court yesterday to bank robbery, attempted bank robbery and possession of child pornography.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Steven Dettelbach, United States Attorney for the Northern District of Ohio, Barbara L. McQuade, United States Attorney for the Eastern District of Michigan, David J. Hickton, United States Attorney for the Western District of Pennsylvania, and Kevin R. Cornelius, Federal Bureau of Investigation (FBI) Special Agent in Charge, Cincinnati Division.
On or about June 20, 2013, Bowlin robbed a Fifth Third Bank in Lambertville, Mich. During that robbery he utilized a dangerous weapon. Later that month, he attempted to rob a Citizens Bank in Verona, Pa. and successfully robbed a PNC Bank in Cuyahoga Falls, Ohio. In July, he robbed the Delaware County Bank and Trust Company in Galena, Ohio.
In July, investigators discovered a large amount of cash in a hotel room occupied by Bowlin and in his vehicle. They also uncovered dye-stained money and disposable gloves tying him to the Lambertville robbery. During the search, officers also discovered approximately 1700 images and 55 videos depicting child pornography in a thumb drive and on a laptop computer.
U.S. Attorney Stewart commended the cooperative investigation by the FBI, Sharonville Police Department, Ohio Bureau of Criminal Investigation, Delaware County Sheriff’s Office, Cuyahoga Falls Police Department, Canal Fulton Police Department, Monroe County, Mich. Sheriff’s Office, and Penn Hills, Pa. Police Department, as well as Criminal Chief Kenneth L. Parker, who is representing the United States in this case.
Bowlin pleaded guilty to three counts of bank robbery, including the Michigan robbery which was originally filed in the Eastern District of Michigan and transferred to the Southern District of Ohio. He also pleaded guilty to one count of attempted bank robbery and possession of child pornography. The Michigan robbery carries a penalty of a punishable term of imprisonment of up to 25 years and a fine of $250,000. Each of the other counts is punishable by a term of imprisonment up to 20 years and a fine of up to $250,000.Four Men Sentenced for Meth ConspiracyRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that four south Missouri residents were sentenced in federal court today for their roles in a conspiracy to distribute methamphetamine.
Juan Moreno-Malagon, 40, of Highlandville, Mo., Jesus Moreno-Malagon, 56, of Ozark, Mo., Valentin Gomez-Torres, 27, of Battlefield, Mo., and Luis A. Ramon-Lara, 33, of Morrisville, Mo., were sentenced in separate appearances before U.S. Chief District Judge Greg Kays. Juan Moreno-Malagon was sentenced to 11 years and three months in federal prison without parole. Jesus Moreno-Malagon and Gomez-Torres were each sentenced to seven years and three months in federal prison without parole. Ramon-Lara was sentenced to four years and two months in federal prison without parole.
They are among nine co-defendants who have pleaded guilty and been sentenced in this case.
On Nov. 18, 2013, Juan Moreno-Malagon pleaded guilty to being one of the leaders of a multi-pound methamphetamine conspiracy operating in the Springfield area but also covering Polk, Christian and Taney Counties. The case began when couriers were intercepted in New Mexico and Texas with 4-kilogram loads of methamphetamine. The couriers indicated that the methamphetamine was going to Springfield. The federal investigation included controlled buys and additional seizures of methamphetamine, firearms and cash. Jesus Moreno-Malagon, Gomez-Torres and Ramon-Lara have also pleaded guilty to their roles in the drug-trafficking conspiracy.
During the investigation, co-defendant Noe Moreno-Malagon, 36, a citizen of Mexico residing in Ozark, Mo., left for Mexico and turned over distribution responsibilities to Juan Moreno-Malagon. After pleading guilty to his role in leading the conspiracy, Noe Moreno-Malagon was sentenced to 15 years in federal prison without parole, which must be served consecutively to his prison sentence in an unrelated state case.
On Dec. 3, 2012, a search warrant was executed in Morrisville, Mo. During the search, DEA agents located 338.1 grams of pure methamphetamine, as well as a handgun and a rifle. The DEA also conducted a search at a Springfield residence believed to be a stash house for the organization. At that location, agents found 123.6 grams of pure methamphetamine.
On Feb. 13, 2012, federal law enforcement agents seized 362 grams of pure methamphetamine (approximately one pound) from co-defendant Paul E. Allen, 59, of Purdy, Mo. Allen admitted to receiving the methamphetamine from Juan Moreno-Malagon. Allen was sentenced to seven years in federal prison after pleading guilty to his role in the conspiracy.
On June 22, 2012, 224.4 grams of pure methamphetamine was seized from co-defendant Michael D. Eckhoff, 53, of Republic, Mo. Eckhoff admitted that he received the methamphetamine from Gomez-Torres, and that the transaction was arranged by Juan Moreno-Malagon. Eckhoff also admitted that he had received methamphetamine from Noe Moreno-Malagon in the past. Eckhoff was sentenced to three years in federal prison without parole after pleading guilty to his role in the drug-trafficking conspiracy.
In addition to the seizures, two controlled buys were made on March 27, 2012 and April 12, 2012. In March, 125.1 grams of pure methamphetamine was purchased, and in April, 117.5 grams of pure methamphetamine was purchased. The buys were arranged through Juan Moreno-Malagon. Jesus Moreno-Malagon conducted the actual distribution of methamphetamine on April 12, 2012.
In July, 2012, Noe Moreno-Malagon returned from Mexico and took the operation back over. Communications were intercepted between Noe Moreno-Malagon and Ramon-Lara discussing and arranging for the distribution of methamphetamine. Noe Moreno-Malagon would direct Ramon-Lara to make deliveries of methamphetamine for him.
Co-defendant Rita J. Vera, 35, of Monett, Mo., was sentenced to five years in federal prison without parole after pleading guilty to her role in the conspiracy. Co-defendant Timothy J. Williams, 49, of Strafford, Mo., was sentenced to two years and eight months in federal prison without parole after pleading guilty to his role in the conspiracy.
This case is being prosecuted by Assistant U.S. Attorney Gary Milligan. It was investigated by the Drug Enforcement Administration, IRS-Criminal Investigation, U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), the Missouri State Highway Patrol, and task force officers from the Greene County, Mo., Sheriff’s Department, the Christian County, Mo., Sheriff’s Department, the Ozark, Mo., Police Department, the Springfield, Mo., Police Department, the South Central Drug Task Force and COMET (the Combined Ozarks Multijurisdictional Enforcement Team).Former Social Security Employee Pleads Guilty to $10,000 Fraud SchemeRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a former employee of the Social Security Administration pleaded guilty in federal court today to illegally accessing personal identification information as part of a nearly $10,000 fraud scheme to steal from the government.
Mary Francis Taylor, 54, of Kansas City, Mo., waived her right to a grand jury and pleaded guilty before U.S. District Judge Howard F. Sachs to a federal information that charges her with theft of government money.
Taylor worked as a teleservice technician in the Social Security Administration’s Mid-America Program Service Center in Kansas City, Mo., until she resigned on Jan. 10, 2014. In that role, she had access to sensitive private information for all individuals who possess a Social Security number.
Taylor admitted today that she found a NetSpend debit card on a public bus in August 2013. She took the NetSpend debit card as well as some documents that contained additional personal identification information. Taylor called NetSpend, falsely claiming to be the cardholder (identified as Victim 1), and instructed NetSpend to add another beneficiary to the debit card. Taylor possessed identity information for this new beneficiary, identified as Victim 2, because she found Victim 2’s case file on a co-workers desk.
Taylor illegally accessed the SSA computer system to create an overage to Victim 2’s record, which was direct deposited into the bank account linked to the debit card that was stolen from Victim 1. As a result, SSA direct deposited $9,853 into that bank account.
Taylor used the debit card to pay off her account at Aaron’s and to pay arrearages on her home mortgage, utilities and car loan.
Under federal statutes, Taylor is subject to a sentence of up to 10 years in federal prison without parole, plus a fine up to $250,000 and an order of restitution. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Special Assistant U.S. Attorney William A. Alford III. It was investigated by Social Security Administration, Office of Inspector General, Office of Investigations.Former Las Vegas Doctor Sentenced to over 3 1/2 Years in Prison for Selling Prescription Painkillers to Undercover DEA AgentRead the Press Release
LAS VEGAS, Nev. – Former Las Vegas physician Vinay Bararia, 44, was sentenced today to 44 months in prison and three years of supervised release for unlawfully selling hydrocodone and oxycodone to an undercover DEA agent in a hospital parking lot, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
“Stopping the unlawful distribution of prescription painkillers has been a top priority for our office,” said U.S. Attorney Bogden. “The days of persons being able to easily acquire these dangerous drugs from corrupt doctors and pharmacists are coming to an end.”
The sentence was imposed by U.S. District Judge Jennifer Dorsey, who also ordered Bararia to forfeit approximately $50,000 in cash and the 2007 Jaguar vehicle he used to distribute the drugs, and increased his sentence for abusing his position of trust as a doctor.
Judge Dorsey denied Bararia’s request for a reduced sentence based on arguments by his attorneys that he had diminished mental capacity, extenuating family circumstances, or that he acted aberrantly when he committed the crime.
Bararia was originally charged in March 2012, and pleaded guilty on Dec. 18, 2013, to one count of distribution of a controlled substance. According to the guilty plea agreement, on July 20, 2011, Bararia unlawfully sold 500 hydrocodone pills for $1125 to a DEA undercover agent in the parking lot of Centennial Hills Hospital. Bararia’s sentence included other relevant conduct, including the unlawful distribution of approximately 3,600 oxycodone pills between July 28 and Nov. 8, 2011, and the possession of 2,038 oxycodone pills that were recovered from his vehicle on March 1, 2012, when he was arrested in the parking lot of the hospital.
Bararia has been in federal custody since November 2012, as a result of repeated violations of his conditions of release. He surrendered his license to practice medicine in Nevada in March 2013.
This case was investigated by the DEA and prosecuted by Assistant U.S. Attorneys Susan Cushman and Robert Knief.
Former Gates Mills Man Charged with Defrauding Investors Out of Millions of DollarsRead the Press Release
A 19-count federal indictment was filed charging a former Gates Mills resident with operating a $9.6 million investment scheme in which he defrauded investors and enriched himself, law enforcement officials said.
Oscar Villarreal, age 27, of Mexico, used the ill-gotten money to purchase a Lamborghini, a Steinway piano and otherwise live a lavish lifestyle, according to the indictment.
He has been charged with 10 counts of wire fraud, seven counts of money laundering, one count of securities fraud and one count of investment adviser fraud.
“This defendant used lies and deception to rip off investors and lead an extravagant lifestyle,” said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio.
“Mr. Villarreal utilized his charisma and bogus information to defraud hard working individuals,” said Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland office. “It is believed that Mr. Villarreal has fled the Cleveland area and the FBI is asking the public to provide any information they have regarding his current whereabouts so that he may answer for his numerous years as a fraudster.”
“When you knowingly mix deceit and trickery into the financial well-being of individuals, you create a recipe for devastation that could last a lifetime,” said Kathy A. Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office.
The investment scheme took place between 2008 and 2013. At different times, Villarreal operated numerous partnership or limited liability corporations, including WW Capital III, L.P., WW Capital III LLC (also known as WWCIII), WW Capital Partners LLC, (also known as Fund II) and Black Mountain Enterprises, LLC, and maintained several bank accounts and E-Trade trading accounts, according to the indictment.
WWCIII was a fund that purported to pursue investments with companies in Mexico related to the petroleum, steel, metals and real estate industries. Villarreal promoted and sold investment contracts in the form of limited partnership interests in the funds to approximately 46 investors in Ohio, Florida, New Jersey and New York in the amount of more than $9.6 million, according to the indictment.
From January 2008 through January 2009, Villarreal solicited approximately $550,000 from seven investors for Fund II, falsely representing the money would be used in the Mexican metal industry, according to the indictment.In February 2009, Villarreal distributed approximately $715,000 to Fund II investors, which he misrepresented as profits from their investment. He failed to disclose to investors that he had received a consulting fee of $1.5 million from a Cleveland-area company for unrelated services, and that he used money from that, as well as from his personal line of credit, to pay Fund II investors. Villarreal later falsely represented to potential investors in WWCIII that Fund II had generated a 45 percent rate of return, when he knew Fund II had generated no returns, according to the indictment.
Rather than investing WWCIII funds for their stated purpose, Villarreal used investor money to make speculative trades from his E-Trade accounts, pay business expenses necessary to promote the investment scheme, purchase luxury items such as a Steinway piano and a Lamborghini, and otherwise fund a lavish lifestyle, according to the indictment.
Villarreal falsely reported to WWCIII investors, both orally and in writing, that their funds would be pooled and used to invest in the Mexican steel and petroleum industries, Mexican real estate and/or Mexican infrastructure projects. Villarreal further represented that he would use personal and family business connections in Mexico to make the investments, according to the indictment.
Instead, he diverted investor funds into an E-Trade account where he made speculative stock trades which lost millions of dollars in investor funds. Villarreal falsely represented to WWCIII investors that they were achieving positive returns on their investments, causing most investors to be lulled into the belief they were making money. Based upon his false statements, some of the WWCIII investors placed even more money into other investment opportunities offered by Villarreal, according to the indictment.
This indictment is the result of an investigation by Federal Bureau of Investigation, the Internal Revenue Service – Criminal Investigations and the Securities and Exchange Commission. The case is being prosecuted by Assistant U.S. Attorney Adam Hollingsworth and Special Assistant U.S. Attorney Derek Kleinmann.
If convicted, the defendant’s sentence will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendant’s prior criminal record (if any), the defendant’s role in the offense and the characteristics of the violation.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Former Detroit Public Library Official Sentenced for BriberRead the Press Release
Timothy Cromer, a former Detroit Public Library official, was sentenced today to 10 years in prison for bribery and conspiracy to commit bribery, U.S. Attorney Barbara L. McQuade announced today.
Joining McQuade in the announcement were Special Agent in Charge Paul M. Abbate, Federal Bureau of Investigation, Detroit Field Office, and Jarod Koopman, Acting Special Agent in Charge, Internal Revenue Service Criminal Investigation.
Cromer, 47, of West Bloomfield, the library's Chief Administrative and Technology Officer from 2006 to 2013, was sentenced by U.S. District Judge George Caram Steeh.
Cromer was charged with taking more than $1.4 million in bribes and kickbacks from contractors of the library. According to the indictment, Cromer helped co-defendant James Henley create a business in 2007 called Core Consulting & Professional Services, and then arranged for Core to win a bid to provide information technology services to the library. The contract, along with various change orders and extensions that Cromer approved, caused the library to pay Core $1.8 million.Cromer was also charged with receiving kickbacks from Ricardo Hearn, who is also charged in the indictment. Cromer was charged with approving no-bid professional services contracts for Hearn’s company, Cubemation, LLC, to perform information technology services for the library from 2008 until 2010. According to the indictment, Cubemation received about $2.8 million in payments from the Detroit Public Library. In total, Cromer is alleged to have accepted more than $1.4 million in kickbacks from Henley and Hearn.
Through his plea, Cromer admitted that he received a bribe from Henley, and that he conspired with Hearn to commit bribery. Codefendants Henley and Hearn previously pleaded guilty to conspiracy to commit bribery, and will be sentenced on October 28, 2014.
United States Attorney McQuade said, "Our public libraries exist to enrich our citizens, not to generate profits for the officials who work there. Today's sentence protects the important interests of taxpayers, library patrons and the honest public servants who have dedicated themselves to the Detroit Public Library."
“As a government official, Mr. Cromer abused his position of trust and stole from the community,” stated Paul M. Abbate, Special Agent in Charge of the FBI Detroit Field Office. “Today’s sentencing reflects the resolve of law enforcement to continue the fight on behalf of our citizens, and bring those who violate their public oath to justice.”
"The sizeable amount of the kickbacks Cromer received represents the degree to which he was cheating the public," said IRS Acting Special Agent in Charge Jarod Koopman. "It is unacceptable to help yourself to public funds, but if you do IRS-Criminal Investigation will be there to seek justice on behalf of the citizens of Detroit."
The case was investigated by agents of the FBI and the IRS. This case was prosecuted by Assistant United States Attorneys Elizabeth A. Stafford and Julie Beck.Former DeKalb and Georgia World Congress Center Official Indicted on Public Corruption ChargesRead the Press Release
ATLANTA - Patrick Jackson, a former janitorial services manager for DeKalb County and Georgia World Congress Center, has been indicted and arraigned on charges of mail fraud and bribery.
“Jackson is charged with abusing his official positions with DeKalb County and the Georgia World Congress Center,” said United States Attorney Sally Quillian Yates. “According to the indictment, over a six-year period he accepted bribes in exchange for his helping a company attain and maintain exclusive government contracts.”
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: "The FBI Atlanta office's public corruption program remains very active and determined in exposing the criminal conduct of public officials. The investigation and indictment of Mr. Jackson serves as further example of the FBI's commitment toward accountability for those serving the public and holding positions of trust."
According to United States Attorney Yates, the charges, and other information presented in court: Jackson was simultaneously employed by two government entities, DeKalb County and Georgia World Congress Center, from approximately 2006-2012. In both positions, he served as the manager of janitorial services. The indictment alleges that Jackson used his position as a public official to obtain favors from a company, identified only as “Company A,” that provided janitorial services to both DeKalb County and Georgia World Congress Center. Jackson was employed by “Company A” prior to his employment with DeKalb County and Georgia World Congress Center.
While employed by DeKalb County and Georgia World Congress Center, Jackson lived in a luxury apartment in Atlanta that was being paid for and furnished by “Company A.” In exchange, Jackson agreed to use his position as a public official to benefit the interests of “Company A” in its business dealings with DeKalb County and Georgia World Congress Center. Jackson did not disclose to either employer that “Company A” was providing him with an apartment. The indictment alleges that, by accepting these bribes, Jackson deprived his employers of their right to his honest services.
Patrick Jackson, 55, of Loganville, Ga., was arraigned before United States Magistrate Judge Linda T. Walker. Jackson was indicted by a federal grand jury on September 9, 2014.
Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Federal Bureau of Investigation.
Assistant United States Attorneys Jamie L. Mickelson and Kamal Ghali are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Former Controller for Washington, D.C. Law Firm Pleads Guilty to Federal Charge in Theft of over $960,000-Defendant Shifted Money from Firm’s Bank Accounts-Read the Press Release
WASHINGTON - Marc England, 44, pled guilty today to a federal charge stemming from his theft of over $960,000 from a Washington, D.C. law firm, announced U.S. Attorney Ronald C. Machen Jr. and Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office.
England, of Covington, La., pled guilty in the U.S. District Court for the District of Columbia to one count of wire fraud. The Honorable Judge Tanya S. Chutkan scheduled sentencing for Dec. 2, 2014. Under federal sentencing guidelines, England faces a likely range of 33 to 41 months of incarceration, as well as a fine of up to $75,000. The government maintains that the victim’s losses total at least $961,404. Under the plea agreement, England also must pay restitution to the victim. England is subject to an additional forfeiture money judgment.
According to the government’s evidence, England worked at a firm identified in court documents as “Company A,” a small law firm in Washington, D.C., as the company’s controller. Beginning in August 2008, England began sending wire payments from the law firm’s bank account directly to various credit card accounts that he himself held. For some of the unauthorized transactions, England used the firm’s electronic accounts system to create fraudulent invoices appearing on their face to justify his unauthorized debits. Over the course of a four-year period, England caused the firm to execute 126 separate interstate wire transfers of monies from the firm’s checking account to various accounts held by England.
In announcing the plea, U.S. Attorney Machen and Assistant Director in Charge McCabe commended the work of those who investigated the case from the FBI’s Washington Field Office. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Donna Galindo, Corinne Kleinman, and Angela Lawrence; Assistant U.S. Attorneys Catherine K. Connelly and Arvind K. Lal, who handled forfeiture issues, and Assistant U.S. Attorney Richard DiZinno, who investigated and prosecuted the matter.
14-207Former Cay Clubs Executives Charged in Connection with $300 Million Ponzi Scheme Involving Sales of Vacation Rental UnitsRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Donnell Young, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), and Michael Stephens, Acting Inspector General, Federal Housing Finance Agency, Office of Inspector General (FHFA-OIG), announce that Fred Davis Clark, Jr., a/k/a Dave Clark, 56, and Cristal R. Clark, a/k/a Cristal R. Coleman, 41, both formerly of Monroe County, were charged in a superseding indictment with conspiracy to commit bank fraud and multiple counts of bank fraud, in connection with a $300 million fraud scheme involving the sale of vacation rental units to approximately 1,400 investors in the Florida Keys and elsewhere.
According to the superseding indictment, Fred Davis Clark and Cristal Clark were executives of Cay Clubs Resorts and Marinas (Cay Clubs), which operated from 2004 through 2008 from offices in the Florida Keys and Clearwater. Cay Clubs marketed vacation rental units for 17 locations in Florida, Las Vegas and the Caribbean, to investors throughout the United States. Cay Clubs would promise to develop dilapidated properties into luxury resorts, and would promise investors an upfront “leaseback” payment of 15 to 20% of the sales price of the unit at the time of closing. Once an investor agreed to purchase a unit, Cay Clubs would arrange for a real estate closing and lender financing, but would not disclose the leaseback payment and other financial inducements to the investors on paperwork submitted to lending institutions. Cay Clubs would also use fraudulent representations in marketing the investments, including using insider sales to increase the price of the units and reporting these sales on marketing materials. Cay Clubs never made the improvements that were promised to investors.
By at least 2006, Cay Clubs did not have sufficient funds to make improvements to properties or to make the leaseback payments that had been promised to earlier investors. Cay Clubs would use the proceeds of sales to new investors to make incremental leaseback payments to earlier investors. Without obtaining more loan proceeds from new investor sales, Cay Clubs would have collapsed. In this way, Cay Clubs came to operate as a Ponzi Scheme.
After the collapse of Cay Clubs, the U.S. Securities and Exchange Commission began an investigation into alleged securities fraud at Cay Clubs. According to the indictment, Fred Davis Clark and Cristal Clark thereafter engaged in conduct aimed at concealing the location of assets under their control, and Fred Davis Clark gave false and misleading testimony to the SEC.
Through a previous indictment unsealed in June 2014, Fred Davis Clark and Cristal Clark were charged with conspiracy to commit mail and wire fraud, and mail fraud, in connection with a scheme to steal money from CMZ Group, Ltd., a Cayman Islands company that operated pawn shops in the Caribbean. According to the initial indictment, after the collapse of Cay Clubs, Fred Davis Clark and Cristal Clark used bank accounts and shell companies based in Key Largo that they had used during their Cay Clubs activities, to siphon off funds from the business operations of CMZ Group, so that they could lead a lavish lifestyle in the Caribbean.
Furthermore, in or around January 2013, shortly before an action was brought by the SEC alleging that they committed securities fraud, the indictment alleges, Fred Davis Clark and Cristal Clark caused the transfer of more than $2 million to a bank account they controlled in Honduras for the purpose of preventing the SEC from learning the location and control of these monies. These funds have since been frozen by the government of Honduras.
Fred Davis Clark and Cristal Clark were expelled from Panama and Honduras, respectively, in June 2014, and were ordered detained pretrial by U.S. Magistrate Judge Lurana S. Snow. They currently await trial on these charges in Key West before U.S. District Judge Jose E. Martinez.
Mr. Ferrer commended the investigative efforts of IRS-CI, ICE-HSI and FHFA-OIG, and the assistance of the SEC Miami Regional Office in this matter. The matter is being prosecuted by Assistant U.S. Attorney Jerrob Duffy.
An indictment is only an accusation and the defendant is presumed innocent until proven guilty.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former Agency Employee Sentenced for Fraud Related to Tornado BenefitsRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a former employee of an agency that administered disaster relief funds was sentenced in federal court today for her role in a wire fraud scheme following the tornado that struck Joplin, Mo., on May 22, 2011.
Herlana L. Latham, 32, of Memphis, Tenn., formerly of Joplin, Mo., was sentenced by U.S. Chief District Judge Greg Kays to 14 months in federal prison without parole. The court also ordered Latham to pay $6,745 in restitution.
On March 10, 2014, Latham pleaded guilty to participating in a conspiracy to defraud the Economic Security Corporation of Southwest Area (ESC). The not-for-profit corporation administered a rental assistance program, the Missouri Housing Trust Fund (MHTF) Disaster Relief Program. This program disbursed funds to landlords who rented to clients who had been displaced by natural disasters, including the May 22, 2011, tornado that struck Joplin.
Latham, an employee of ESC, and conspirators stole a total of $8,565 from the rental assistance program. Co-defendants Christopher L. Smith, 36, and John L.Williams, 31, both also of Memphis and formerly of Joplin, have also pleaded guilty to their roles in the conspiracy. Williams was sentenced to eight months in federal prison and ordered to pay $6,945 in restitution. Smith was sentenced to three years of probation and ordered to pay $3,935 in restitution.
Latham submitted applications for rental assistance for payments to Smith and Williams, who were not the landlords or property managers of ESC clients. Latham did so by verifying false landlord information on the application forms.
Smith assisted in the wire fraud scheme in two fraudulent transactions. In June or July 2012, Smith signed two MHTF program applications as landlord/property manager/mortgagee, which was false and fraudulent in that Smith then knew he was not a landlord, property manager, or mortgagee entitled to receive MHTF program funds. Based on the false application, the Economic Security Corporation issued a $1,850 check to Smith on June 21, 2012, and a $2,085 check to Smith on July 26, 2012.
Williams assisted in the scheme by serving as a purported landlord on two fraudulent applications for rental assistance, and also by accompanying other check recipients to the bank to cash their checks, in order to collect the proceeds of the fraud. The Economic Security Corporation issued two rental assistance checks to Williams totaling $3,050.
This case was prosecuted by Assistant U.S. Attorney Steven M. Mohlhenrich. It was investigated by the Missouri State Highway Patrol.Five People Indicted on Charges Involving Large Drug ConspiracyRead the Press Release
St. Louis, MO – These five men were indicted for their alleged conspiracy and distribution of large quantities of cocaine and methamphetamine in Audrain County. Travis and Cody McDonald are also charged with growing over 100 marijuana plants between September 2007 and the present time and laundering the proceeds of the illegal activity.
The defendants were arrested by agents Monday.
Individuals indicted:
- TRAVIS EUGENE McDONALD, Montgomery City, Missouri,
- CODY WAYNE McDONALD, Vandalia, Missouri,
- WILLIAM RAY LAIRD, Vandalia, Missouri,
- RUSSELL DALE GAY, Columbia, Missouri, and
- JOHN WESLEY HARRISON, Annada, Missouri
If convicted, each count of conspiracy to distribute in excess of 500 grams of cocaine and conspiracy to manufacture in excess of 100 marijuana plants carries a penalty range of 5 to 40 years in prison and or fines up to $5 million. Conspiracy to distribute in excess of 500 grams of methamphetamine carries a penalty range of ten years to life in prison. Money laundering carries a maximum penalty of 20 years in prison and/or fines up to $500,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Drug Enforcement Administration, Internal Revenue Service, the East Central Missouri Drug Task Force, the North Eastern Missouri Drug Task Force, Missouri Highway Patrol, Audrain County, Lincoln County and Warren County Sheriff’s Departments and St. Louis, Troy and Jefferson City, Missouri Police Departments. Assistant United States Attorney John T Davis is handling the case for the U.S. Attorney's Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.Essex Junction Man Sentenced to Prison for Child Pornography OffenseRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Michael Beaudoin, 29, of Essex Junction, Vermont, was sentenced on September 15, 2014, in United States District Court in Burlington, Vermont, to serve 121-months imprisonment and a 15-year period of supervised release following his conviction on one count of possession of child pornography, in violation of 18 U.S.C. § 2252(a)(4)(B). Chief Judge Christina Reiss also ordered Beaudoin to pay a $100 special assessment.
According to court records and proceedings, law enforcement personnel conducting undercover operations on a file-sharing program discovered that a computer later identified as belonging to Beaudoin was offering to share image files depicting child pornography. Law enforcement seized Beaudoin’s computer pursuant to a search warrant on August 13, 2013, and later discovered images and videos depicting child pornography on it.
In 2011, Beaudoin was convicted of sexual assault of a minor less than 16 years old. He ultimately served 31 months of his sentence and was on state probation at the time the search warrant was executed. He had been out of custody for approximately two months was law enforcement discovered that he was using the file-sharing program to share images of child pornography.
United States Attorney Coffin commended the efforts of the Vermont Attorney General, the Office of Immigration and Customs Enforcement, and the Vermont Internet Crimes Against Children Task in the prosecution of Beaudoin.
The prosecution of Beaudoin was handled by Assistant U.S. Attorney Barbara A. Masterson. Beaudoin was represented by Michael J. Straub.
U.S. Attorney Coffin noted that this prosecution is part of the U.S. Department of Justice=s Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney’s Offices, 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 identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Elyria Man Faces Likely 20-Year Prison Sentence for Dealing Heroin and Fentanyl That Caused Fatal OverdoseRead the Press Release
An Elyria man faces a likely sentence of 20 years in prison after pleading guilty to distributing heroin and fentanyl, including fentanyl that caused the death of an Elyria resident last year, law enforcement officials said.
The guilty plea was announced by Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, Ohio Attorney General Mike DeWine, Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland office, and Elyria Police Chief Duane Whitely.
Siarres R. Noble, age 29, pleaded guilty to four counts of distribution of fentanyl, two counts of distribution of heroin and one count of possession with intent to distribute fentanyl.
Noble’s plea agreement calls for a recommended sentence of 20 years in federal prison. He is scheduled to be sentenced Dec. 17.
Noble admitted selling heroin and fentanyl at various times in March and November 2013, including fentanyl that he sold on November 8, 2013, which resulted in the death of an Elyria resident one day later.
“The drugs sold by this defendant killed a woman,” Dettelbach said. “Heroin and fentanyl use leads to death, destroys lives and damages families. This should send a clear message to drug dealers who are doing nothing more than selling poison, that we in law enforcement will work death and overdose cases back from the victims, identify who supplied them the drugs and hold them accountable for their actions.”
“State, local and federal authorities are taking the opiate epidemic very seriously, and drug dealers need to know that they will be held accountable for overdose deaths,” said Attorney General DeWine. “Not only are these dealers putting the lives of those they sell to at risk, but they are also putting themselves at risk of being locked up for decades in prison.”
“Information about heroin and other dangerous illegal drugs has become too common place in our daily news reports,” said Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland Office. “The partnership between law enforcement, social services and the community must continue in order to further attempts to rid our territory of these highly addictive substances.”
Elyria Police Chief Duane Whitely said: “There is a serious drug problem in this country and it is important that law enforcement at every level take the steps necessary to combat the sales of illegal drugs. Sadly, in this case, the sale of drugs led to someone’s death. The weapon used may not have been a gun, but it is just as deadly.
“I want to thank everyone involved in this case for the effort they put into it. Starting with the response from Elyria Police Investigative Unit for responding so quickly to the spike in overdoses that led to the arrest of Siarres Noble for selling the drugs that led to the death. I appreciate the great working relationship with have with the FBI and the U.S. Attorney’s office. It is the strong working relationship between all of these agencies that led to the federal conviction of Siarres Noble,” Whitely said.
This case was investigated by the Elyria Police Department and the Federal Bureau of Investigation and prosecuted by Assistant United States Attorneys Robert F. Corts and Vasile C. Katsaros and Special Assistant United States Attorney Margaret Tomaro of the Ohio Attorney General’s Office.
Elizabethton Man Sentenced to 188 Months in Prison for Crack Cocaine ConspiracyRead the Press Release
GREENEVILLE, Tenn. – Eullis Monroe Goodwin, 40, of Elizabethton, Tenn., was sentenced on Sept. 15, 2014, by the Honorable J. Ronnie Greer, U.S. District Court Judge, to serve 188 months in federal prison. Goodwin pleaded guilty to conspiracy to distribute crack cocaine in April 2014.
Beginning in 2012, law enforcement began investigating a large-scale crack cocaine conspiracy originating out of Atlanta, Ga. As part of the conspiracy, numerous individuals trafficked kilogram quantities of powder cocaine to Johnson City. To transport and distribute the drugs, coconspirators used a series of rental cars procured in Georgia. Upon arrival in Johnson City, the drugs were manufactured into crack cocaine and then distributed throughout the area. Goodwin was one of those distributors, dealing in multi-ounce quantities. The resulting drug sale proceeds were subsequently used to procure additional powder cocaine and repeat the cycle of distribution.
This conspiracy involved multiple individuals. Coconspirators who have already been convicted and sentenced include: Tavares Lashaun Dalton, 36, of Covington, Ga., 240 months; Marcus Lavoya Holliman, 36, of Atlanta, Ga., 210 months; Micah Antwan Still, 34, of Covington, Ga., 120 months; Derrick Henry Connor, 40, of Sherills Ford, N.C., 120 months; Devin Deonte Blalock, 20, of Jonesboro, Ga., 120 months; Kwanza Tarveze Worthy, age 20, of Atlanta, Ga., 120 months; Don Juan Glass, Jr., 22, of Atlanta, Ga., 120 months; Uhamma Castillo Delgado, II, 24, of Johnson City, Tenn., 120 months; Demario Jenard Serchion, 29, of Atlanta, Ga., 77 months; and Cody Alan Sherrill, 22, of Jonesborough, Tenn., 41 months. Three more have been convicted and are awaiting sentencing in Greeneville. Others are still awaiting prosecution.
This long term investigation was the product of a partnership between the Johnson City, Tennessee Police Department; First Judicial District Drug Task Force; and Drug Enforcement Administration. Assistant United States Attorney Nick Regalia represented the United States.
This case was a result of the Department of Justice’s Organized Crime and Drug Enforcement Task Force (OCDETF) program, the centerpiece of the Department of Justice’s drug supply reduction strategy. OCDETF was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
Detroit-Area Doctor Admits to Providing Medically Unnecessary Chemotherapy to PatientsRead the Press Release
A Detroit-area hematologist-oncologist pleaded guilty today for his role in a health care fraud scheme, admitting that he administered unnecessary chemotherapy to fraudulently bill the Medicare program and private insurance companies. According to court records, the scheme enabled the doctor to submit approximately $225 million in claims to Medicare over six years.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan, Special Agent in Charge Paul M. Abbate of the FBI’s Detroit Field Office, Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) Chicago Regional Office and Chief Richard Weber of the Internal Revenue Service – Criminal Investigation (IRS-CI) made the announcement.
Farid Fata, M.D., 49, of Oakland Township, Michigan, pleaded guilty today before U.S. District Judge Paul D. Borman of the Eastern District of Michigan to 13 counts of health care fraud, one count of conspiracy to pay or receive kickbacks and two counts of money laundering. At his sentencing, scheduled for Feb. 23, 2014, Fata faces a statutory maximum of 175 years in prison.
“At a time when they are most vulnerable and fearful, cancer patients put their lives in the hands of doctors and endure risky treatments at their recommendation,” said Assistant Attorney General Caldwell. “Dr. Fata today admitted he put greed before the health and safety of his patients, putting them through unnecessary chemotherapy and other treatments just so that he could collect additional millions from Medicare. The mere thought of what he did is chilling. Thanks to the quick action of our partners, he was arrested and has now admitted his guilt.”
“This defendant not only stole funds from taxpayer funded insurance programs, but he also deliberately administered unnecessary chemotherapy so that he could bill insurers for expensive chemotherapy treatments,” said U.S. Attorney McQuade. “His exploitation of patients for his own profit caused victims to suffer physically and emotionally.”
“A little more than a year ago, the FBI and its law enforcement partners acted swiftly to arrest Dr. Farid Fata and shield his patients from further harm,” said FBI Special Agent in Charge Abbate. “Today’s plea is the culmination of the diligent investigative work jointly conducted by the FBI, IRS, the Department of Health and Human Services, and prosecutors to protect the public and ensure that justice is served. Our hope is that this outcome offers some measure of solace to the victims and reassures the community of our collective resolve to prevent similar violations of patients’ trust.”
“Dr. Fata’s utter disregard for his patients’ welfare was quite simply deplorable,” said HHS-OIG Special Agent in Charge Pugh. “The OIG will ceaselessly work to bring such criminals to the justice they deserve.”
“It’s exceptionally distressing to see this kind of fraud committed by individuals in occupations that profess high ethical standards," said IRS-CI Chief Weber. “When doctors commit fraud through their profession, it is not only a violation of the public trust but also a complete renunciation of their Hippocratic oath. Those who commit Medicare fraud are pick-pocketing from every American taxpayer.”
Fata admitted that he is a licensed medical doctor who owned and operated a cancer treatment clinic, Michigan Hematology Oncology, P.C. (MHO), which had locations in Rochester Hills, Clarkston, Bloomfield Hills, Lapeer, Sterling Heights, Troy and Oak Park, Michigan. He also owned a diagnostic testing facility, United Diagnostics PLLC, located in Rochester Hills, Michigan.
In his guilty plea today, Fata admitted to prescribing and administering aggressive chemotherapy, cancer treatments, intravenous iron and other infusion therapies to patients who did not need them in order to increase his billings to the Medicare program and other insurance companies. Fata then submitted fraudulent claims to Medicare and other insurers for these unnecessary treatments.
Fata submitted approximately $225 million in claims to Medicare between August 2007 and July 2013, of which approximately $109 million was for chemotherapy and other cancer treatments. Medicare paid over $91 million to Fata, of which over $48 million was for chemotherapy and other cancer treatments.
Fata also admitted to soliciting kickbacks from Guardian Angel Hospice and Guardian Angel Home Health Care in exchange for his referral of patients to those facilities.
Fata further admitted to using the proceeds of the health care fraud at his medical practice, MHO, to promote the carrying on of additional health care fraud at United Diagnostics, where he administered unnecessary and expensive PET (positron emission tomography) scans for which he billed a private insurer.
This case was investigated by the FBI, HHS-OIG and IRS-CI and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Michigan. This case is being prosecuted by Deputy Chief Gejaa T. Gobena, Assistant Chief Catherine K. Dick and Trial Attorney Matthew C. Thuesen of the Fraud Section, and by Health Care Fraud Unit Chief Wayne F. Pratt, Deputy Chief Sarah Resnick Cohen and White Collar Crime Unit Chief John K. Neal of the U.S. Attorney’s Office for the Eastern District of Michigan.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,000 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
For further information about this case, visit: http://www.justice.gov/usao/mie/news/2013/2013_9_18_2013_dr_fata.html.
# # #
Detroit-Area Doctor Admits to Providing Medically Unnecessary Chemotherapy to PatientsRead the Press Release
WASHINGTON — A Detroit-area hematologist-oncologist pleaded guilty today for his role in a health care fraud scheme, admitting that he administered unnecessary chemotherapy to fraudulently bill the Medicare program and private insurance companies. According to court records, the scheme enabled the doctor to submit approximately $225 million in claims to Medicare over six years.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan, Special Agent in Charge Paul M. Abbate of the FBI’s Detroit Field Office, Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) Chicago Regional Office and Chief Richard Weber of the Internal Revenue Service – Criminal Investigation (IRS-CI) made the announcement.
Farid Fata, M.D., 49, of Oakland Township, Michigan, pleaded guilty today before U.S. District Judge Paul D. Borman of the Eastern District of Michigan to 13 counts of health care fraud, one count of conspiracy to pay or receive kickbacks and two counts of money laundering. At his sentencing, scheduled for Feb. 23, 2014, Fata faces a statutory maximum of 175 years in prison.
“At a time when they are most vulnerable and fearful, cancer patients put their lives in the hands of doctors and endure risky treatments at their recommendation,” said Assistant Attorney General Caldwell. “Dr. Fata today admitted he put greed before the health and safety of his patients, putting them through unnecessary chemotherapy and other treatments just so that he could collect additional millions from Medicare. The mere thought of what he did is chilling. Thanks to the quick action of our partners, he was arrested and has now admitted his guilt.”
“This defendant not only stole funds from taxpayer funded insurance programs, but he also deliberately administered unnecessary chemotherapy so that he could bill insurers for expensive chemotherapy treatments,” said U.S. Attorney McQuade. “His exploitation of patients for his own profit caused victims to suffer physically and emotionally.”
“A little more than a year ago, the FBI and its law enforcement partners acted swiftly to arrest Dr. Farid Fata and shield his patients from further harm,” said FBI Special Agent in Charge Abbate. “Today’s plea is the culmination of the diligent investigative work jointly conducted by the FBI, IRS, the Department of Health and Human Services, and prosecutors to protect the public and ensure that justice is served. Our hope is that this outcome offers some measure of solace to the victims and reassures the community of our collective resolve to prevent similar violations of patients’ trust.”
“Dr. Fata’s utter disregard for his patients’ welfare was quite simply deplorable,” said HHS-OIG Special Agent in Charge Pugh. “The OIG will ceaselessly work to bring such criminals to the justice they deserve.”
“It’s exceptionally distressing to see this kind of fraud committed by individuals in occupations that profess high ethical standards," said IRS-CI Chief Weber. “When doctors commit fraud through their profession, it is not only a violation of the public trust but also a complete renunciation of their Hippocratic oath. Those who commit Medicare fraud are pick-pocketing from every American taxpayer.”
Fata admitted that he is a licensed medical doctor who owned and operated a cancer treatment clinic, Michigan Hematology Oncology, P.C. (MHO), which had locations in Rochester Hills, Clarkston, Bloomfield Hills, Lapeer, Sterling Heights, Troy and Oak Park, Michigan. He also owned a diagnostic testing facility, United Diagnostics PLLC, located in Rochester Hills, Michigan.
In his guilty plea today, Fata admitted to prescribing and administering aggressive chemotherapy, cancer treatments, intravenous iron and other infusion therapies to patients who did not need them in order to increase his billings to the Medicare program and other insurance companies. Fata then submitted fraudulent claims to Medicare and other insurers for these unnecessary treatments.
Fata submitted approximately $225 million in claims to Medicare between August 2007 and July 2013, of which approximately $109 million was for chemotherapy and other cancer treatments. Medicare paid over $91 million to Fata, of which over $48 million was for chemotherapy and other cancer treatments.
Fata also admitted to soliciting kickbacks from Guardian Angel Hospice and Guardian Angel Home Health Care in exchange for his referral of patients to those facilities.
Fata further admitted to using the proceeds of the health care fraud at his medical practice, MHO, to promote the carrying on of additional health care fraud at United Diagnostics, where he administered unnecessary and expensive PET (positron emission tomography) scans for which he billed a private insurer.
This case was investigated by the FBI, HHS-OIG and IRS-CI and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Michigan. This case is being prosecuted by Deputy Chief Gejaa T. Gobena, Assistant Chief Catherine K. Dick and Trial Attorney Matthew C. Thuesen of the Fraud Section, and by Health Care Fraud Unit Chief Wayne F. Pratt, Deputy Chief Sarah Resnick Cohen and White Collar Crime Unit Chief John K. Neal of the U.S. Attorney’s Office for the Eastern District of Michigan.Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,000 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
For further information about this case, visit: http://www.justice.gov/usao/mie/news/2013/2013_9_18_2013_dr_fata.htmlDepartment of Justice and Federal Trade Commission Sign Cooperation Agreement with Colombian Antitrust AgencyRead the Press Release
Assistant Attorney General Bill Baer of the Department of Justice’s Antitrust Division has signed an antitrust cooperation agreement with the Colombian antitrust agency on behalf of the Department of Justice. The agreement also was signed by Federal Trade Commission Chairwoman Edith Ramirez, and went into effect today with the signature of Pablo Felipe Robledo, Colombia’s Superintendent of Industry and Commerce. The agreement will enable the antitrust agencies in the two countries to further enhance their law enforcement relationship.
The new agreement contains provisions for antitrust enforcement cooperation and coordination, conflict avoidance and consultations with respect to enforcement actions, and technical cooperation. The agreement also contains confidentiality protections.
The U.S. antitrust agencies and Colombia’s Superintendence of Industry and Commerce, the agency that enforces Colombia’s competition law, have built a strong enforcement relationship over the years, both bilaterally and under the terms of the U.S.-Colombia Trade Promotion Agreement.
“The Colombians have a proven antitrust system, and this agreement will allow us to work more closely with our colleagues in Bogotá,” said Assistant Attorney General Baer. “Enforcement cooperation based on sound policies is critical to maintaining competitive markets in the Americas, particularly for economies as linked as ours.”
“Colombia has a well-developed competition regime, and we have a strong working relationship with its competition agency,” said Chairwoman Ramirez. “We look forward to working with the Superintendence to advance our shared goal of promoting convergence around sound competition policy throughout the hemisphere.”
Highlights of the new agreement include:
- Mutual acknowledgment of the importance of antitrust cooperation, including information sharing and possible coordination of enforcement actions with regard to related matters;
- Agreement to take one another’s important interests into account in order to minimize possible conflicts arising out of antitrust enforcement actions; and
- Agreement to maintain the confidentiality of any sensitive information provided by the other party.
The agreement entering into force today does not change existing law in either country. Colombia has had a law dedicated to the preservation of competition since 1959. This cooperation agreement is similar in substance to those previously signed by the U.S. antitrust agencies with other jurisdictions in the Americas, including Brazil, Canada, Chile and Mexico.
According to the Office for the United States Trade Representative, Colombia is currently the United States’ 21st-largest goods trading partner, with $40 billion in total (two way) goods trade during 2013. Goods exports totaled $19 billion, while imports totaled $22 billion.
DOJ MEDIA CONTACT: Emily Pierce, Office of Public Affairs
202-514-2007
FTC MEDIA CONTACT: Peter Kaplan, Office of Public Affairs
202-236-2334
Defense Contractors Settle Alleged Violation of the False Claims Act for $5.5 MillionRead the Press Release
United States Attorney Andrew M. Luger today announced a settlement agreement between the United States, Relator David McIntosh, M.K. Battery, Inc. (MK Battery), East Penn Manufacturing Co., Inc. (East Penn), NPC Robotics, Inc. (NPC), BAE Systems, Inc., and BAE Systems Tactical Vehicle Systems LP (BAE). The $5.5 million agreement resolves an alleged violation of the False Claims Act related to the sale of batteries for use in gun turrets on military vehicles.
According to documents filed in court, East Penn manufactured batteries that were sold to NPC, for use by the United States Department of Defense (DOD). DOD wanted dual-purpose batteries, with both a strong starting capacity and good deep cycling ability, to power the turrets atop Humvee vehicles. Based on representations made by Defendants, DOD believed that the East Penn batteries were deep cycle batteries, and contracted with BAE to install the batteries in the Humvees.
DOD received samples of the battery in 2005 and approved its use. However, East Penn later made changes to the design and manufacturing of the battery that negatively affected its deep cycle performance. Defendants did not inform DOD of the change.
“The Department of Defense relies on companies it deals with to be honest about the products they provide, especially when those products will be used on the battlefield,” said Assistant United States Attorney Chad A. Blumenfield. “Inaccuracies about such products cannot be tolerated.”
Despite knowledge by MK Battery, East Penn, NPC, and BAE of the diminished battery performance, BAE continued to install the batteries in Humvees supplied to DOD through 2012, and did not inform DOD about the decreased deep cycle performance of the batteries. The United States only became aware of the change to the battery’s design and performance by the filing of a qui tam complaint. The $5.5 million settlement resolves allegations contained in a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act that are pending in Minnesota. As part of the resolution, the whistleblower will receive a payment of $990,000.
Assistant U.S. Attorney Chad Blumenfield handled this matter for the United States.
U.S. Attorney Luger thanked the Defense Criminal Investigative Service for investigating this case.###
Defendant Who Conspired to Kidnap, Rape, and Murder Women Sentenced in Manhattan Federal Court to Ten Years in PrisonRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that RICHARD MELTZ, the former Chief of Police, United States Department of Veterans Affairs, at the Bedford Veterans Affairs Medical Center, was sentenced today in Manhattan federal court to ten years for conspiring to kidnap, rape, and murder the wife of a man he had met over the Internet, and a female Federal Bureau of Investigation agent working in an undercover capacity. MELTZ pled guilty before U.S. District Judge Paul G. Gardephe, who also imposed today’s sentence.
Manhattan U.S. Attorney Preet Bharara said: “Today’s sentence ensures that Richard Meltz will pay with his liberty for his role in a macabre conspiracy to kidnap, brutalize, and kill two victims that, fortunately, did not come to full fruition.”
According to the Information to which MELTZ pled guilty, statements made during the plea proceeding, and other court documents:
Between the spring of 2011 and January 2013, MELTZ, Robert Christopher Asch and Michael Van Hise engaged in a series of electronic email and instant message communications during which they discussed and planned the kidnapping, torture, and murder of Van Hise’s wife and other members of Van Hise’s family. Van Hise sent to MELTZ and Asch photographs of these family members, and the approximate location of their residence. MELTZ engaged in detailed discussions about kidnapping and brutalizing the proposed victims, and ultimately agreed with Van Hise and Asch to kidnap, rape, and kill Van Hise’s wife. The co-conspirators ceased active planning of the kidnapping when the FBI arrested New York City Police Officer Gilberto Valle for a related kidnapping conspiracy, and began investigating Van Hise.
In addition, beginning in approximately January 2013, MELTZ, Asch, and an FBI agent working in an undercover capacity (“UC-1”) began discussions about kidnapping a woman, who unbeknownst to MELTZ and his co-conspirators, was also an FBI agent working in an undercover capacity. MELTZ participated in multiple conversations with both UC-1 and Asch about the conspiracy’s objective to kidnap and commit acts of violence against the intended victim and other women. MELTZ advised Asch to obtain a stun gun to subdue the intended target, and based on MELTZ’s direction, Asch purchased a high-voltage Taser gun at a gun show in Pennsylvania, which they intended to use in the commission of the kidnapping offense.
In addition to his prison term, MELTZ, 66, of Linden, New Jersey, was sentenced to three years of supervised release, and was ordered to pay a $200 special assessment fee.
Van Hise and Asch were both convicted following a two-week jury trial. Both men await sentencing.
Mr. Bharara praised the investigative work of the Federal Bureau of Investigation. He also thanked the Department of Veterans Affairs and the New Jersey State Police for their assistance in the investigation.
The case is being prosecuted by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Brooke E. Cucinella and Hadassa Waxman are in charge of the prosecution.
Defendant Pleads Guilty to Mail Fraud and Conspiracy to Commit Money LaunderingRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that Kyong Hee Kim, 56, entered a guilty plea to mail fraud and conspiracy to commit money laundering. Kim joined with Sun Sims, 52, and others to defraud the Municipality of Anchorage by evading the payment of cigarette excise tax. Sun Sims pleaded guilty on September 5, 2014, for her role in the crimes..
According to the plea agreement, Kyong Hee Kim knowingly purchased illegally obtained tax exempt cigarettes from Sun Sims and her business partner who owned, operated, and managed Up in Smoke, located in the Municipality of Anchorage, and Golden Eagle Tobacco and Longmere Lake Grocery and Liquor, both located outside the Municipality of Anchorage. Because they owned Golden Eagle Tobacco and Longmere Lake Grocery and Liquor, Sun Sims and her partner could legitimately purchase Municipality of Anchorage excise tax exempt cigarettes from tobacco wholesale distributors located in the Municipality, but only if those cigarettes were actually transported outside of the Municipality and offered for sale at those two stores. However, cigarettes that they purchased within the Municipality and intended to sell at Up in Smoke or distribute to others within the Municipality were not excise tax exempt.
Between 2009 and October 10, 2012, Sun Sims and her partner used their Golden Eagle Tobacco and Longmere Lake Grocery and Liquor store accounts with tobacco wholesale distributors within the Municipality to purchase excise tax exempt cigarettes that they intended to sell and distribute within the Municipality. Thus, they avoided paying the excise tax and increased their own profits.
Kyong Hee Kim, who owns and operates the Mini Stop, paid a fee to Sun Sims and her business partner for the purchase of excise tax exempt cigarettes. Kyong Hee Kim paid this fee for the tax exempt cigarette in an effort to avoid paying the tax owed to the Municipality. Sun Sims and her partner would collect payment from Kyong Hee Kim and other retailers. They would then convert the money collected into cashier’s checks that appeared to be purchased by either Golden Eagle Tobacco or Longmere Lake Grocery and Liquor. They then used these cashier’s checks to purchase more tax exempt cigarettes, which they delivered to Kyong Hee Kim and the other retailers within the Municipality.
“When individuals attempt to evade their lawful tax obligations, be it federal, state, or local, they really steal from all of us,” said Assistant Special Agent in Charge Steve Bellis of IRS Criminal Investigation. “In this case, the conspirators effectively stole excise tax from the municipality of Anchorage; monies that would have been used to support important local infrastructure. IRS Criminal Investigation is proud to partner with the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Anchorage Police Department to bring this criminal conspiracy to justice.”
As part of the plea, Kim agreed to forfeit $1,214,802 in currency as well as 500 1-ounce silver coins. Mail fraud carries a sentence of up to 20 years imprisonment and fines up to $250,000. Conspiracy to money launder carries a sentence of up to 20 years imprisonment and fines up to $500,000.
The case was jointly prosecuted by Assistant U.S. Attorneys Stephan A. Collins and Erin W. Bradley of the U. S. Attorney’s Office for the District of Alaska. The case was investigated by the Internal Revenue Service Criminal Investigation, the Bureau of Alcohol Tobacco, Firearms and Explosives, and the Anchorage Police Department.
Defendant Charged with Producing Child Pornography CapturedRead the Press Release
ROCHESTER, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Jordan McCloud, 22, of Rochester, NY, was taken into police custody early this morning by members of the U.S. Marshals Service with assistance from the Federal Bureau of Investigation’s Cyber Task Force and the Rochester Police Department. McCloud was charged by criminal complaint on August 18, 2014 with producing child pornography and possessing child pornography. The charges carry a mandatory minimum penalty of 15 years in prison, a maximum of 30 years, a fine of $250,000 or both.
Assistant U.S. Attorney Marisa J. Miller, who is handling the case, stated that according to the complaint, the defendant used his cellular phone to film co-defendant Shahmell Robinson while Robinson raped a female child under the age of 16. The conduct occurred at a residence in Greece on August 8, 2014. The videos came to the attention of law enforcement when another individual posted them on Facebook.com.
The defendant made an initial appearance this afternoon before U.S Magistrate Judge Marian W. Payson. The Government moved to detain McCloud on the grounds that he poses a risk of flight and a danger to the community. A status conference regarding bail is scheduled for September 23, 2014 at 12:00 p.m.
The criminal complaint is the culmination of an investigation on the part of members of the Federal Bureau of Investigation’s Cyber Task Force, along with Task Force officers from the Rochester Police Department, under the direction of Chief Michael Ciminelli and members of the Greece Police Department, under the direction of Chief Patrick Phelan.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.Columbus Man Ppleads Guilty for Role in Hydrocodone ConspiracyRead the Press Release
Conspirators Transported Prescription Drugs from Florida to Charleston in Bi-monthly Trips
Charleston, W.Va. – United States Attorney Booth Goodwin announced that David Frizzell, age 44, of Columbus, Ohio, plead guilty today in federal court in Charleston for his role in a conspiracy to distribute hydrocodone. Frizzell admitted that from early 2010 through October of 2011, he arranged bi-monthly trips for himself and others to obtain Lortab tablets, which contain hydrocodone, from various pharmacies in Florida. Some of the drugs were brought back to Charleston to be sold. Frizzell paid the travel expenses and provided the transportation for the trips.
Frizzell faces up to ten years imprisonment and a $500,000 fine when he sentenced December 18, 2014.
The Metropolitan Drug Enforcement Network Team (MDENT) was responsible for the investigation of Frizzell and others involved in the conspiracy.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
Carbondale Resident Pleads Guilty to Crack Cocaine ConspiracyRead the Press Release
Follow @SDILNewsOn September 12, 2014, Johnathan T. Buck, a/k/a “Buffalo,” of Carbondale, Illinois, pled guilty to a one-count indictment charging conspiracy to distribute crack cocaine, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
The offense occurred between 2013 and March 2014, in Jackson County. Evidence at the plea hearing established that Buck was involved with others in the distribution of crack cocaine in Carbondale. Buck and his associates were transporting crack cocaine from northern Illinois to Carbondale for distribution. On multiple occasions, Buck sold crack cocaine to a confidential source working for law enforcement.
The crack cocaine offense carries a penalty of up to 20 years in federal prison, to be followed by 3 years’ supervised release, and a fine of $1,000,000. Buck is currently being held without bond pending a December 16, 2014, sentencing hearing.
The ongoing investigation is being conducted by the Southern Illinois Enforcement Group, Carbondale Police Department, and Drug Enforcement Administration. The Jackson County State’s Attorney’s Office assisted in the investigation.
The case is assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
California Residents Indicted for Retail Fraud SchemeRead the Press Release
BOISE - Arleen Cifuentes, 31, of Riverside, California, and Rocio Contreras-Loya, 40, of Sante Fe Springs, California, made their initial appearance today on charges of wire fraud, aggravated identity theft, and possession of fifteen or more unauthorized access devices, U.S. Attorney Wendy J. Olson announced. Cifuentes and Contreras-Loya were indicted on September 9, 2014, by a federal grand jury in Boise. Trial is set for November 11, 2014, before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Boise.
The Indictment charges the defendants with devising a scheme to defraud retail stores in Idaho by materially false and fraudulent pretenses, representations, and promises, by fraudulently using the personal identifying information of unknowing third party victims to apply for and receive credit accounts through the retail stores. The Indictment alleges that the defendants obtained the personal identifying information of the victims, ran credit checks on them, then created false identifications purportedly from California with the victim's information and the defendants' photos. The defendants are alleged to have applied for, and received, credit accounts from several Boise-area department stores in the names of the victims, then utilized the credit accounts to make purchases of merchandise and gift cards. The Indictment alleges the credit application process, as well as the merchandise purchases, resulted in an interstate wire transmission. A third defendant, Ivan Fonseca, 30, of Richmond, California, remains a fugitive.
Wire fraud is punishable by up to 20 years in prison, a $250,000 fine, and three years of supervised release. Aggravated identity theft is punishable by a mandatory two years in prison, to be served consecutively to the sentence imposed for the underlying felony. Possession of fifteen or more unauthorized access devices is punishable by up to 10 years in prison, a $250,000 fine, and three years of supervised release.
The case was investigated by Boise Police Department and the United States Secret Service.
An indictment is a means of charging a person with criminal activity. It is not evidence. The person is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Baton Rouge Woman Pleads Guilty to Embezzling $600,000 from Her EmployerRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced the conviction of DONNA M. DODSON, age 52, of Baton Rouge, Louisiana, who pled guilty today before Chief U.S. District Judge Brian A. Jackson to five (5) counts of wire fraud, in violation of Title 18, United States Code, Section 1343. DODSON faces a maximum sentence of one hundred (100) years in prison and fines totaling $1,250,000.
According to the factual basis presented to the Court in connection with her plea in 2009, DODSON was hired by a surgical center used by physicians throughout the Baton Rouge area. DODSON worked as the company’s office manager until mid-2013. During that time, she engaged in a scheme to defraud her employer, by (a) creating false and fraudulent entries in the company’s accounting records and software that appeared to indicate that the company owed money to various third parties; (b) preparing check requests for the false entries she had created; and then (c) fraudulently altering each check request, before the check was actually printed, so that her own name would appear on the face of each check as the “payee.” As DODSON obtained the checks, she would deposit the funds into one of her personal accounts. In total, throughout the scheme, DODSON created and generated more than one hundred (100) checks and fraudulently obtained approximately $600,000.
This investigation is being conducted by the United States Secret Service and the East Baton Rouge Parish Sheriff’s Office. The matter is being prosecuted by Assistant United States Attorney Alan A. Stevens, who serves as a Deputy Chief.
Armed Robber ConvictedRead the Press Release
Anthony Robinson, 40, of Philadelphia, PA, was found guilty today by a federal jury hearing the robbery case against him. Robinson was found guilty of two counts of robbery which interferes with interstate commerce and one count of using a firearm during a crime of violence. A sentencing hearing is pending.
On December 1, 2012, at approximately 5:40 p.m., Robinson robbed the Subway shop at 545 N. Broad Street. The victim, a Subway store employee, was intimidated into giving the defendant $100 cash from the register. After the employee gave Robinson the money, Robinson asked for the code to the safe. When the employee responded that she did not know it, the defendant, armed with a gun, said, “You better not be lying or I’m going to hurt you.” The robbery was recorded on Subway’s surveillance camera.
On December 1, 2012, at approximately 7:20 p.m., Robinson robbed Anna’s Linens by threatening an employee. The employee gave the defendant $750 from the register. The surveillance video from the store clearly showed the robbery and the defendant’s face. The following day, the victim from the Subway store robbery saw the defendant and recognized him. The victim alerted police and positively identified the defendant after the police stopped him. The victim in the second robbery also identified the defendant in a photo array as the person who robbed him.
Robinson faces a maximum possible sentence of life in prison with a mandatory minimum sentence of seven years, up to five years of supervised release, a possible fine, and a $300 special assessment.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Jeanine Linehan.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Armed Career Criminal Sentenced to Fifteen Years in PrisonRead the Press Release
BOSTON – A former Springfield man was sentenced today in U.S. District Court in Springfield for illegally possessing a firearm and ammunition.
Luis Colon, 31, was sentenced by U.S. District Judge Michael A. Ponsor to 15 years in prison, and three years of supervised release. In October 2013, Colon was convicted following a four-day jury trial of possessing a firearm and ammunition after being previously convicted of a felony. On Sept. 7, 2010, Colon sold a Smith & Wesson 9mm pistol with 14 rounds of Remington 9mm ammunition to a man working with the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Colon was targeted for federal prosecution because he had more than a dozen prior criminal convictions including crimes of violence and narcotics trafficking. In addition, at the time of this sentence, Colon was under a state criminal justice sentence. These prior convictions qualified Colon as an armed career criminal under federal law.
United States Attorney Carmen M. Ortiz; Interim Hampden County District Attorney James C. Orenstein; Daniel J. Kumor, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; Colonel Timothy P. Alben, Superintendent of the Massachusetts State Police; and Springfield Police Commissioner John Barbieri, made the announcement today. The case was prosecuted by Steven H. Breslow of Ortiz’s Springfield Branch Office.
Anti-gang and Violent Crime Reduction Initiative Leads to More Than 135 ArrestsRead the Press Release
CHARLOTTE, N.C. – A total of 138 defendants have been arrested and currently face state charges in connection with operation “Southern Snare,” an anti-gang and violent crime reduction initiative led by the United States Marshals Service in coordination with federal, state and local law enforcement agencies. The arrests took place over the course of the four-month long operation, which began in May and concluded on September 5, 2014.
This anti-gang and violent crime reduction initiative targeted gang activities and violent crime in Gaston and Cleveland counties, with special emphasis placed on communities within Gastonia and Shelby, N.C. During this operation, authorities seized 56 firearms, narcotics with an approximate street value of $178,000, and an estimated $15,000 in U.S. currency.
Kelly M. Nesbit, United States Marshal of the United States Marshals Service (USMS) for the Western District of North Carolina; Wayne L. Dixie, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division; Ryan L. Spradlin, Acting Special Agent in Charge of ICE/Homeland Security Investigations (HSI) in Atlanta and the Carolinas; B.W. Collier, Acting Director of the North Carolina State Bureau of Investigation; Johnny Hawkins, Director of Security Services, North Carolina Department of Public Safety; Chief James W. Buie of the Gaston County Police Department; Chief Robert Helton of the Gastonia Police Department; Sheriff Alan Cloninger of the Gaston County Sheriff’s Office; Locke Bell District Attorney for Gaston County; Chief Jeffrey H. Ledford of the Shelby Police Department; Chief Melvin Proctor of the Kings Mountain Police Department; Sheriff Alan Norman of the Cleveland County Sheriff’s Office; and Rick Shaffer, District Attorney for Cleveland and Lincoln Counties join Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina in making today’s announcement.
“I commend the law enforcement partners involved in this cross-jurisdictional and multi-agency operation for their hard work and their commitment to making our streets and communities safer,” stated Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina.
“The success of Operation Southern Snare is the result of our close cooperation and coordination with our law enforcement partners. Targeted initiatives like this one bring relief to communities afflicted by gang activity and the violence it brings. I want to thank all our law enforcement partners for their involvement and support throughout this operation, and I look forward to our continued partnership, as we work together to remove gang members and violent offenders from our streets and to protect our neighborhoods from the spread of violence. Most of all, I commend the law enforcement agents and officers who worked tirelessly to make this initiative a success and I want to thank them for continuing to put their lives at risk to safeguard our communities,” said Kelly M. Nesbit, U.S. Marshal, Western District of North Carolina.
“ATF’s mission is to identify, pursue and perfect criminal cases against individuals who illegally possess and use firearms in furtherance of their criminal activities,” said ATF’s Special Agent in Charge Wayne L. Dixie. “We will continue to work with the U.S. Marshals Service and our local counterparts in Cleveland and Gaston Counties to ensure that those who foster violence in this region are held to account for their activities.”
“Operation Southern Snare’s arrests have made a significant difference in eliminating Shelby and Gastonia’s gang activity and apprehending those who commit violent crimes,” SBI Director B.W. Collier said. “A lot of effort and collaboration among the participating law enforcement agencies has led to safer communities in Cleveland and Gaston counties. I applaud this successful operation.”
“Collaborating with our partners at the federal and local levels on operations like this one brings tremendous benefits,” said Johnny Hawkins, Director of Security Services for the North Carolina Department of Public Safety. “The law enforcement agencies benefit from the sharing of expertise and resources and citizens know that their communities are safer due to these efforts.”
“The efforts of all the law enforcement officers involved in this operation will result in amazing returns for our community. This project is a great example of the impact we can make by working hand-in-hand with our federal and state partners. Together, we have addressed issues such as gangs, drugs and guns, which have been deteriorating our communities. Although this operation is coming to a close, we see it as a beginning instead of an ending. The partnerships formed over the past few months will continue to grow and our communities will reap the benefits,” said Chief of Shelby Police Department, Jeffrey H. Ledford.
“The success of Operation ‘Southern Snare’ had a positive and lasting impact on our community. This type of multiagency cooperation sends a clear message to the citizens of Kings Mountain and to criminals who think they can conduct their illegal activities in our area: The Kings Mountain Police Department will work alongside our federal and state law enforcement partners to protect the safety of the communities we serve,” said Chief Melvin Proctor of Kings Mountain Police Department.
“The U.S. Marshalls Service has been very beneficial in assisting us in dealing with our gang members in Cleveland County. We are looking forward to continuing this team approach with future operations,” said Sheriff Alan Norman of the Cleveland County Sheriff’s Office.
The defendants arrested during this operation currently face state charges in connection with this investigation which include: narcotics-related offenses, firearms violations and other violent crimes. The investigations are ongoing which may result in additional charges against the defendants.
This initiative was led by the U.S. Marshals Service in coordination with ATF, HSI, NC SBI, NC Dept. of Public Safety, Gaston Co. PD, Gastonia PD, Gaston Co. SO, Shelby PD, Kings Mountain PD, and Cleveland County SO.
Ambulance Company Manager Pleads Guilty to $5.5 Million Medicare Fraud ConspiracyRead the Press Release
The general manager of a Southern California ambulance company pleaded guilty yesterday in Los Angeles to conspiracy to commit Medicare fraud, conspiracy to obstruct a Medicare audit, and making materially false statements to law enforcement officers.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Acting U.S. Attorney Stephanie Yonekura of the Central District of California, Special Agent in Charge Glenn R. Ferry of the Los Angeles Region of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) and Assistant Director in Charge Bill Lewis of the FBI’s Los Angeles Field Office made the announcement.
Wesley Harlan Kingsbury, 34, of Bloomington, California, pleaded guilty to the charges before U.S. District Judge Dale S. Fischer. Sentencing is scheduled for Feb. 9, 2015.
According to court documents, Kingsbury was the general manager of Alpha Ambulance Inc., which specialized in the provision of non-emergency ambulance transportation services to Medicare beneficiaries, primarily to and from dialysis treatments. Between April 2010 and July 2012, Kingsbury conspired with Alex Kapri and Aleksey (Russ) Muratov, the owners of Alpha Ambulance, as well as the training supervisor Danielle Medina, to bill Medicare for ambulance transportation services for individuals that Kingsbury knew did not need to be transported by ambulance. In addition, as general manager, Kingsbury instructed emergency medical technicians (EMTs) that worked at Alpha Ambulance to conceal the true medical condition of patients they were transporting by altering requisite paperwork and creating false reasons to justify the transportation services.
In early 2012, Medicare notified Alpha Ambulance that the company would be subject to a Medicare audit. In response, Kingsbury and his co-conspirators altered patient documentation to create false justifications for the ambulance transportation services. Kingsbury and others used light tracing tables to trace over original documents and create falsified patient documentation for the purpose of sending those falsified documents to Medicare, and then they used a paper shredder to destroy the original patient documents.
Kingsbury and his co-conspirators submitted $5,522,079 in fraudulent claims to Medicare, and Medicare paid $1,338,413 on those fraudulent claims.
Further according to court documents, in April 2012, Kingsbury was approached by law enforcement officers and was asked to assist with the investigation into Alpha Ambulance. Kingsbury disclosed to the owners of Alpha Ambulance the names of the law enforcement officers who were conducting the investigation and the questions they had asked Kingsbury about the company. On May 1, 2012, Kingsbury falsely denied to the law enforcement agents that he had previously disclosed that information to the owners of Alpha.
Kapri, Muratov and Medina pleaded guilty to conspiracy to commit health care fraud on October 28, 2013. They were sentenced to terms of imprisonment of 75 months, 108 months, and 30 months, respectively.
The case was investigated by the FBI and the Los Angeles Region of HHS-OIG and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Central District of California. The case was prosecuted by Trial Attorneys Blanca Quintero and Alexander F. Porter and Assistant Chief Ben Curtis of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,000 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Team (HEAT), go to: www.stopmedicarefraud.gov.
# # #
Alexander County Man Pleads Guilty to Federal Firearm OffenseRead the Press Release
Follow @SDILNewsOn September 12, 2014, Keithy D. Carter, a/k/a “Darnell K. Carter,” 23, of Tamms, Ill., pled guilty to a one-count indictment charging Possession of a Firearm by a Felon, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Evidence at the plea hearing established that, on January 14, 2014, Carter possessed a Hi-Point, model C9, 9mm Luger semiautomatic pistol, in Tamms, Alexander County. The firearm had recently been used by another individual to commit a homicide in Jackson County. Because Carter had previously been convicted of a felony, he is prohibited from possessing firearms.
The firearm offense carries a penalty of up to 10 years in federal prison, to be followed by 3 years’ supervised release, and a fine of $250,000. Carter is currently being held without bond while he awaits a December 16, 2014, sentencing hearing.
The investigation was conducted by the Jackson County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The Carbondale Police Department and Jackson County State’s Attorney’s Office also assisted in the investigation.
The case is assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.