Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
22 October 2014
EOIR’s Office of Legal Access ProgramsRead the Press Release
The Executive Office for Immigration Review’s (EOIR) Office of Legal Access Programs (OLAP), formerly known as the Legal Orientation and Pro Bono Program, was established in April 2000 to improve access to legal information and counseling and to increase representation rates for foreign-born individuals appearing before the immigration courts and Board of Immigration Appeals (BIA). OLAP is responsible for administering the Legal Orientation Program, the Legal Orientation Program for Custodians of Unaccompanied Alien Children, and the BIA Pro Bono Project. OLAP also coordinates EOIR’s Committee on Pro Bono, the Model Hearing Program, and other initiatives which improve access to legal services for individuals appearing before EOIR’s tribunals.
Legal Orientation Program
Since 2003, EOIR has carried out the LOP to improve judicial efficiency in the immigration courts, and to assist detained individuals and others involved in detained removal proceedings to make timely and informed decisions. Under the LOP, EOIR contracts with non-profit organizations to provide group and individual orientations, self-help workshops, and pro bono referral services for detained individuals in removal proceedings. LOP is operational mainly at detention sites, but it also serves certain sites with non-detained individuals and certain family detention centers.
Independent analysis has shown that the LOP has positive effects on the immigration court process: detained individuals make better informed and more timely decisions and are more likely to obtain representation; and cases are completed faster, resulting in fewer court hearings, less time spent in detention and cost savings.
Legal Orientation Program for Custodians of Unaccompanied Alien Children
The Trafficking Victims Protection Reauthorization Act of 2009 tasked EOIR and the Department of Health and Human Services' Office of Refugee Resettlement to offer legal orientation presentations to the adult custodians of unaccompanied alien children in EOIR removal proceedings. The goals of the legal orientations include seeking to protect children from mistreatment, exploitation and trafficking, as well as increasing the appearance rates of these children in immigration court. In 2010, EOIR launched the LOPC to meet these goals and to help increase pro bono representation rates of unaccompanied alien children in immigration proceedings.
EOIR has contracted with non-profit partners to carry out the LOPC at 14 sites nationwide. The LOPC providers offer services similar to those provided under the LOP: general group orientations, individual orientations, self-help workshops, and assistance with pro bono referrals. Additionally, LOPC providers are able to assist with school enrollment and make referrals to social services to help ensure the well-being of the child. OLAP issues guidance to LOPC providers designed to assist them in identifying victims of mistreatment, exploitation, and trafficking; protecting the victims from further harm; and connecting the victims to needed social services.
In addition, since 2013, the LOPC has operated the LOPC National Call Center to assist in making appointments for custodians at one of the LOPC provider locations, and to provide telephonic assistance to custodians who live outside the geographic areas in which LOPC is currently available. This telephonic assistance includes legal orientations on the immigration court process, as well as guidance in filing basic court forms, such as the change of address and motion to change venue.
BIA Pro Bono Project
In 2001, EOIR and non-profit agencies developed the BIA Pro Bono Project (the "Project"). Individuals in removal proceedings are generally not entitled to publicly-funded legal assistance and, as a result, many appear before the immigration courts and BIA without counsel. Agencies that provide legal services to immigrants can face many obstacles in identifying, locating and communicating with unrepresented individuals in time to write and file an appeal brief. The Project helps overcome such obstacles. Through the Project, OLAP assists in identifying certain cases based upon pre-determined criteria. Once cases are identified and reviewed, their summaries are then distributed by a non-profit agency to pro bono representatives throughout the United States. Volunteers who accept a case under the Project receive a copy of the file, as well as additional time to file the appeal brief.
A ten-year review of the BIA Pro Bono Project, completed in February 2014, demonstrated that the Project found counsel willing to accept the case for 87% of cases screened between 2002 and 2011. Additionally, those who were represented through the Project were more likely to have briefs filed with their appeals than pro se respondents. Most significantly, an analysis of the appeals before the Board between 2002 and 2011 showed those who were represented through the Project were more likely to obtain a favorable outcome in their cases than those who do not receive representation. This was particularly the case for individuals who were detained. Since the beginning of the Project, over 1,000 individuals have been represented by pro bono counsel.
Model Hearing Program
The Model Hearing Program is an educational program developed to improve the quality of advocacy before the court, as well as to increase levels of pro bono representation. Model hearings consist of small-scale "mock" trial training sessions held in immigration court and presented by immigration judges. The training sessions, carried out in cooperation with partnering bar associations and/or pro bono agencies, provide practical and relevant "hands-on" immigration court training to small groups of attorneys/law students with an emphasis on practice, procedure and advocacy skills. Participants receive training materials, may obtain Continuing Legal Education credit from the partnering organization, and commit to a minimal level of pro bono representation. Since June 2001, more than 60 model hearing training sessions have been held in immigration courts nationwide. The Model Hearing Program Training Manual contains detailed information on the content and structure of this program, as well as samples of past training sessions.
Other Initiatives
Drawing on informational pamphlets developed by non-profit partners, throughout the nation's detention facilities, OLAP makes available 11 self-help guides. These guides, posted in English and Spanish, cover the most common forms of relief, as well as information about bond and an overview of immigration proceedings. The guides are generally accessible to detainees in the facility libraries and are available on the OLAP website as well.
Additional resources:
- American Bar Association Know Your Rights video
- LOP Cost Saving Analysis report
- EOIR -
The Executive Office for Immigration Review (EOIR) is an agency within the Department of Justice. Under delegated authority from the Attorney General, immigration judges and the Board of Immigration Appeals interpret and adjudicate immigration cases according to United States immigration laws. EOIR’s immigration judges conduct administrative court proceedings in immigration courts located throughout the nation. They determine whether foreign-born individuals—whom the Department of Homeland Security charges with violating immigration law—should be ordered removed from the United States or should be granted relief from removal and be permitted to remain in this country. The Board of Immigration Appeals primarily reviews appeals of decisions by immigration judges. EOIR’s Office of the Chief Administrative Hearing Officer adjudicates immigration-related employment cases. EOIR is committed to ensuring fairness in all of the cases it adjudicates.
EOIR Expands Legal Orientation Program SitesRead the Press Release
FALLS CHURCH, VA – The Executive Office for Immigration Review (EOIR) today announced that, beginning Nov. 1, 2014, it will provide assistance to families detained at the Karnes Family Residential Center, in Karnes City, Texas, through the Legal Orientation Program (LOP). The LOP is a program in which representatives from non-profit organizations provide explanations about immigration court procedures along with other basic legal information to groups of detained individuals. This expansion is possible due to additional funds Congress provided to EOIR for the LOP. The expansion of the program to the Karnes facility marks EOIR's 32nd LOP site, and the third LOP location within a family detention center.
"The Legal Orientation Program is critical to the efficiency of our immigration court proceedings," said EOIR Director Juan P. Osuna. "By attending an LOP, individuals are better able to make timely and informed decisions in their removal proceedings and, with more information about available resources, are more likely to obtain representation."
Since the start of fiscal year 2014, the LOP has expanded to seven additional sites. In addition to the Karnes facility, LOP recently began serving the Artesia Family Residential Center, in Artesia, N.M., and will soon begin to serve the expanded Berks County Family Shelter, in Leesport, Pa. The LOP expansion also includes new detention sites in Woodstock, Ill. and Kenosha, Wis.
Since 2003, EOIR has carried out the LOP to improve judicial efficiency in the immigration courts, and to assist detained individuals and others involved in removal proceedings to make timely and informed decisions. Under the LOP, EOIR contracts with nonprofit organizations to provide group and individual orientations, self-help workshops, and pro bono referral services for individuals in removal proceedings.
Please see EOIR's fact sheet, EOIR's Office of Legal Access Programs, for more information on the LOP and EOIR's additional legal access programs.
- EOIR -
The Executive Office for Immigration Review (EOIR) is an agency within the Department of Justice. Under delegated authority from the Attorney General, immigration judges and the Board of Immigration Appeals interpret and adjudicate immigration cases according to United States immigration laws. EOIR’s immigration judges conduct administrative court proceedings in immigration courts located throughout the nation. They determine whether foreign-born individuals—whom the Department of Homeland Security charges with violating immigration law—should be ordered removed from the United States or should be granted relief from removal and be permitted to remain in this country. The Board of Immigration Appeals primarily reviews appeals of decisions by immigration judges. EOIR’s Office of the Chief Administrative Hearing Officer adjudicates immigration-related employment cases. EOIR is committed to ensuring fairness in all of the cases it adjudicates.
Dutchess County Woman Sentenced in White Plains Federal Court to 51 Months in Prison for Wire Fraud, Filing False Claims, Bank Fraud, and Corruptly Interfering with the IRSRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that MELANIE FERREIRA was sentenced yesterday afternoon in White Plains federal court to 51 months in prison following her conviction for engaging in a series of frauds, which included cheating the Internal Revenue Service (“IRS”) out of nearly half a million dollars, and perpetrating a bank fraud scheme. U.S. District Judge Cathy Seibel, who presided over FERREIRA’s seven-day jury trial in February 2014, imposed the sentence.
U.S. Attorney Preet Bharara said: “Melanie Ferreira thought she could enjoy the fruits of law-abiding taxpayers’ money while evading the tax laws and defrauding the government. Through yesterday’s sentence, she learned how wrong she was.”
According to the Indictment and the evidence presented at trial:
On October 15, 2009, FERREIRA filed a U.S. Individual Income Tax Return, Form 1040, for the year 2008 (“2008 Return”). In her 2008 Return, she falsely reported interest income of $661,600 from three different banks. She then falsely claimed that she had paid taxes in the amount of $661,536 to the IRS for 2008. On that basis, she claimed a refund of $440,924. In reality, in 2008 she actually earned only $17 in interest income. Further, contrary to her claim on her 2008 Return that she had already paid $661,536 in federal taxes, she actually paid only $236.
On October 23, 2009, the IRS wired $440,924 to FERREIRA’s bank account. That same day, FERREIRA wired $44,100 to the individual listed on her tax return as her “tax preparer” and $88,172 to the individual who introduced her to the “tax preparer.”
The following spring, on April 15, 2010, FERREIRA tried to carry out the same type of scheme – requesting a refund of more than $332,033 – when she filed her Form 1040 for the year 2009, but this time, the IRS rejected her refund request. Thereafter, when the IRS notified FERREIRA that she was required to pay back the $440,924 plus interest and penalties, FERREIRA sent the IRS a worthless check for $759,033.05 written on a closed account.
FERREIRA also perpetrated a bank fraud scheme against the Bank of America (“BOA”), the bank that held the mortgage for her house in Dutchess County, New York (“House 1”). In May 2010, she caused a forged cashier’s check for $316,966.05, purporting to be drawn on the Federal Reserve Bank of Cleveland, Ohio (“Check 1”), to be sent to BOA in satisfaction of the mortgage on House 1. Believing that Check 1 was legitimate, BOA filed a satisfaction of mortgage. BOA subsequently determined that Check 1 was fraudulent and filed suit in New York State Supreme Court in order to have the mortgage reinstated. On June 2, 2012, FERREIRA sent a personal check in the amount of $305,000 (“Check 2”) to BOA, purporting, again, to pay off the balance of her mortgage. On the memo line of Check 2, FERREIRA wrote, in red ink, “FOR DISCHARGE OF DEBT EFT ONLY.” Check 2 was written on a bank account that had been closed two years before.
FERREIRA’s schemes – sometimes known as a 1099-OID scheme and an electronic funds transfer or “EFT” scheme – are often used by adherents to the Sovereign Citizens Movement, a group of individuals who, although they reside in the United States, assert the position that they do not have to answer to any government authority, including courts, taxing entities, motor vehicle departments or law enforcement.
In addition to the prison term, Judge Seibel sentenced FERREIRA, 62, of Lagrangeville, New York, to three years of supervised release. FERREIRA was also ordered to make restitution and to forfeit $440,924 that she had wrongfully obtained from the IRS. FERREIRA was ordered to forfeit approximately $96,000 worth of gold Krugerrands and silver coins that she had purchased with the proceeds of her crimes.
In sentencing FERREIRA, Judge Seibel noted that the defendant’s offenses involved “blatant, shameless lies” and that the defendant had “thumbed her nose” at the Government and the Court. The Judge added that FERREIRA showed “no respect for the system” and acted like she was “above the law.”
Mr. Bharara praised the outstanding investigative work of the law enforcement partners involved in the investigation, including the Federal Bureau of Investigation’s Joint Terrorism Task Force and the IRS.
This prosecution is being handled jointly by the Office’s Terrorism and International Narcotics Unit and the White Plains Division. Assistant United States Attorneys Jason P.W. Halperin and Marcia S. Cohen are in charge of the prosecution.
Dorchester Woman Sentenced for Theft of Government BenefitsRead the Press Release
BOSTON – A Dorchester woman was sentenced today for stealing more than a quarter million dollars in government benefits to which she was not entitled.
Mary Murphy, 63, was sentenced by U.S. District Court Chief Judge Patti B. Saris to 18 months of home confinement, 10 hours per week of community service, and was ordered to pay $331,630 in restitution and a fine of $40,000. In July 2014, Murphy pleaded guilty to stealing public money in the form of Social Security and Civil Service Retirement annuity payments paid out for the benefit of her mother.
Following the death of Murphy’s mother in 1977, Murphy, who was not herself entitled to the money, continued to receive and spend the benefits for over 30 years. Murphy stole over $200,000 in Social Security benefits and $140,000 in Civil Service Retirement System annuity payments intended for her mother. Upon discovering the theft, the government reclaimed a portion of the funds from Murphy’s bank account and Murphy repaid the balance, $331,630, at her sentencing today.
This case was brought as part of an ongoing effort by the U.S. Attorney’s Office in partnership with the Social Security Administration to investigate and prosecute the posthumous fraud of Social Security benefits. In many of these cases, family members, knowing they are not entitled to government benefits, continue to withdraw and spend the funds after a relative has died.
In October 2014, Richard Oldham of Old Orchard Beach, Maine, was sentenced to four months in prison, six months of home confinement, and ordered to pay $195,862 in restitution for endorsing Social Security checks in his deceased mother’s name following her death in 1993.
In September 2014, Frances Kenney Moseley of Boston, pleaded guilty to stealing over $220,000 in Social Security benefits, which were directly deposited into her father’s bank account after his death in 2003. Moseley is scheduled to be sentenced on Dec. 22, 2014.
In August 2014, George Bergstrom of Shrewsbury, was sentenced to one year of probation and was ordered to pay $57,948 in restitution – which he paid in full in August – for taking his deceased mother’s Social Security benefits, which were directly deposited into a joint bank account after her death in 2009.
In October 2013, John Flaherty of Newburyport, was sentenced to 10 months in prison and was ordered to pay $168,830 in restitution for taking his deceased mother’s Social Security benefits, which were directly deposited into a joint bank account after her death in 1993.
United States Attorney Carmen M. Ortiz, Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division, and Scott Rezendes, Special Agent in Charge of the Office of Personnel Management, Office of Inspector General, Field Operations, made the announcement today. The Murphy case was prosecuted by Special Assistant U.S. Attorney Timothy Landry of Ortiz’s Major Crimes Unit.
Doctor Sentenced to Prison for Tax EvasionRead the Press Release
A doctor was sentenced today to serve 18 months in prison by U.S. District Court Judge Rudolph T. Randa in the Eastern District of Wisconsin for committing tax evasion and making false statements, announced the Justice Department and Internal Revenue Service (IRS).
On May 22, Dr. Michael N. Mangold pleaded guilty to one count of tax evasion and one count of making false statements. According to court documents, Mangold was a medical doctor specializing in emergency medicine and urgent care who, since about 1993, had worked as a physician for various hospitals, emergency rooms and urgent care facilities. At times, he also worked as a physician in state and county correctional facilities. Mangold primarily earned income through a combination of employee wages and independent contractor payments.
In his plea agreement, Mangold admitted that from 1997 through 2007, he willfully concealed his income from the IRS. Mangold further admitted that he made false statements to the IRS. In total, Mangold owed approximately $191,577 in taxes based on his income and wages during the relevant calendar years plus interest.
Mangold also admitted that he made materially false statements during the course of a civil lawsuit concerning his failure to repay federal student loan obligations. Mangold admitted that he submitted a false financial affidavit to government officials which contained false statements about the amount of income he earned as a doctor.
This case was investigated by special agents of IRS - Criminal Investigation. Trial Attorneys Charles M. Edgar Jr. and Rebecca Perlmutter of the Justice Department’s Tax Division are prosecuting the case.
District Man Found Guilty of First-Degree Murder While Armed in 2012 Shooting on Crowded Southeast Washington BlockRead the Press Release
-Defendant Shot Victim Repeatedly-WASHINGTON - Demonta Chappell, 23, of Washington, D.C., was found guilty by a jury today of first-degree murder while armed and other charges stemming from a slaying that took place in 2012 in Southeast Washington, U.S. Attorney Ronald C. Machen Jr. announced.
Chappell was found guilty of the murder charge, related weapons offenses, and three counts of obstruction of justice. The verdict followed a trial in the Superior Court of the District of Columbia. The Honorable Rhonda Reid Winston scheduled sentencing for Jan. 27, 2015.
According to the government’s evidence, on Saturday, Oct. 27, 2012, shortly after 9 p.m., Chappell approached the victim, Stevann Moorer, 26, who was standing in the 500 block of Parkland Place SE. The block was crowded that evening with people celebrating a local horseshoes team championship in a nearby park. When Chappell reached Mr. Moorer, he pulled out a semi-automatic pistol and shot him. Chappell then stood over Mr. Moorer and shot him several more times. Following the shooting, Chappell fled through a nearby alley.
After his arrest in the case, Chappell made several attempts to contact witnesses from the jail in an effort to persuade them to testify falsely on his behalf.
In announcing the verdict, U.S. Attorney Machen commended the work performed by those who investigated the case from the Metropolitan Police Department (MPD) and the FBI. He also acknowledged the efforts of those who handled the case for the U.S. Attorney’s Office, including Victim/Witness Advocate Marcia Rinker; Criminal Investigators Mark Crawford, Durand Odom, and John Marsh; Paralegal Specialists Mia Beamon and Benjamin Kagan-Guthrie; David Foster, M. Laverne Forrest, Debra Cannon, and Michael Hailey of the Victim/Witness Assistance Unit; and Information Technology Specialist Leif Hickling. He also expressed appreciation for the assistance provided by Michael Ambrosino, Special Counsel for DNA and Forensic Evidence Litigation, and former Assistant U.S. Attorney Mary Chris Dobbie.
Finally, he praised the work of Assistant U.S. Attorneys Jonathan Kravis and Veronica Sanchez, who investigated and prosecuted the matter.
14-236Davenport Man Sentenced on Federal Drug Trafficking OffenseRead the Press Release
DAVENPORT, IA – On October 22, 2014, Joshua Jonas Edward Miller, age 33, of Davenport, Iowa, was sentenced to 96 months in prison by United States District Judge John A. Jarvey for conspiracy to distribute at least 280 grams of cocaine base announced United States Attorney Nicholas A. Klinefeldt. He was also ordered to serve five years of supervised release following the imprisonment, and to pay $100 towards the Crime Victims Fund.
Beginning about November 2011, and continuing until about October 30, 2012, Miller distributed more than 280 grams of cocaine base (“crack cocaine”) in the Davenport, Iowa, area. During October 2012, law enforcement utilized a confidential informant to complete a series of controlled purchases of crack cocaine from Miller while under law enforcement surveillance. On October 30, 2012, law enforcement executed a search warrant for Miller’s residence in Davenport and located, among other things, approximately 51 grams of crack cocaine and a digital scale that both belonged to Miller.
This case was investigated by the Davenport, Iowa, Police Department, the Iowa Department of Narcotics Enforcement, and the U.S. Drug Enforcement Administration. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
(Download Press Release)
DaVita to Pay $350 Million to Resolve Allegations of Illegal KickbacksRead the Press Release
DaVita Healthcare Partners, Inc., one of the leading providers of dialysis services in the United States, has agreed to pay $350 million to resolve claims that it violated the False Claims Act by paying kickbacks to induce the referral of patients to its dialysis clinics, the Justice Department announced today. DaVita is headquartered in Denver, Colorado and has dialysis clinics in 46 states and the District of Columbia.
The settlement today resolves allegations that, between March 1, 2005 and February 1, 2014, DaVita identified physicians or physician groups that had significant patient populations suffering renal disease and offered them lucrative opportunities to partner with DaVita by acquiring and/or selling an interest in dialysis clinics to which their patients would be referred for dialysis treatment. DaVita further ensured referrals of these patients to the clinics through a series of secondary agreements with the physicians, including entering into agreements in which the physician agreed not to compete with the DaVita clinic and non-disparagement agreements that would have prevented the physicians from referring their patients to other dialysis providers.
“Health care providers should generate business by offering their patients superior quality services or more convenient options, not by entering into contractual agreements designed to induce physicians to provide referrals,” said Deputy Assistant Attorney General for the Justice Department’s Civil Division Jonathan F. Olin. “The Justice Department is committed to protecting the integrity of our healthcare system and ensuring that financial arrangements in the healthcare marketplace comply with the law.”
The government alleged that DaVita used a three part joint venture business model to induce patient referrals. First, using information gathered from numerous sources, DaVita identified physicians or physician groups that had significant patient populations suffering renal disease within a specific geographic area. DaVita would then gather specific information about the physicians or physician group to determine if they would be a “winning practice.” In one transaction, a physician’s group was considered a “winning practice” because the physicians were “young and in debt.” Based on this careful vetting process, DaVita knew and expected that many, if not most, of the physicians’ patients would be referred to the joint venture dialysis clinics.
Next, DaVita would offer the targeted physician or physician group a lucrative opportunity to enter into a joint venture involving DaVita’s acquisition of an interest in dialysis clinics owned by the physicians, and/or DaVita’s sale of an interest in its dialysis clinics to the physicians. To make the transaction financially attractive to potential physician partners, DaVita would manipulate the financial models used to value the transaction. For example, to decrease the apparent value of clinics it was selling, DaVita would employ an assumption it referred to as the “HIPPER compression,” which was based on a speculative and arbitrary projection that future payments for dialysis treatments by commercial insurance companies would be cut by as much as half in future years. These manipulations resulted in physicians paying less for their interest in the joint ventures and realizing returns on investment which were extraordinarily high, with pre-tax annual returns exceeding 100 percent in some instances.
Last, DaVita ensured future patient referrals through a series of secondary agreements with their physician partners. These included paying the physicians to serve as medical directors of the joint venture clinics, and entering into agreements in which the physicians agreed not to compete with the clinic. The non-compete agreements were structured so that they bound all physicians in a practice group, even if some of the physicians were not part of the joint venture arrangements. These agreements also included provisions prohibiting the physician partners from inducing or advising a patient to seek treatment at a competing dialysis clinic. These agreements were of such importance to DaVita that it would not conclude a joint venture transaction without them.
The Government’s complaint identifies a joint venture with a physicians’ group in central Florida as one of several examples illustrating DaVita’s scheme to improperly induce patient referrals. The group had previously been in a joint venture arrangement involving dialysis clinics with Gambro, Inc., a dialysis company acquired by DaVita in 2005. Prior to the acquisition, Gambro had entered into a settlement with the United States to resolve alleged kickback allegations that, among other things, required Gambro to unwind its joint venture agreements. As a consequence, Gambro purchased the group’s interest in the joint venture clinics and agreed to a “carve-out” of the associated non-competition agreement which allowed the group to open its own dialysis clinic nearby, which it did. After acquiring Gambro, DaVita bought a majority position in the group’s newly established dialysis clinic, and sold a minority position in three DaVita-owned clinics. Despite the fact that each of the clinics involved were roughly comparable in terms of size and profits, DaVita agreed to pay $5,975,000 to acquire a 60 percent interest in the group’s clinic, while selling a 40 percent interest in the three clinics it owned for a total of $3,075,000. As part of this joint venture, the group agreed to enter into new non-compete agreements.
“This case involved a sophisticated scheme to compensate doctors illegally for referring patients to DaVita’s dialysis centers. Federal law protects patients by making buying and selling patient referrals illegal, so as to ensure that the interest of the patient is the exclusive factor in the referral decision,” said U.S. Attorney John Walsh. “When a company pays doctors and/or their practice groups for patient referrals, the company’s focus is not on the patient, but on the profit to be extracted from providing services to the patient.”
In conjunction with today’s announcement, the U.S. Attorney’s Office noted that after extensive review, it is closing its criminal investigation of two specific joint ventures.
As part of the settlement announced today, DaVita has also agreed to a Civil Forfeiture in the amount of $39 million based upon conduct related to two specific joint venture transactions entered into in Denver, Colorado. Additionally, DaVita has entered into a Corporate Integrity Agreement with the Office of Counsel to the Inspector General of the Department of Health and Human Services which requires it to unwind some of its business arrangements and restructure others, and includes the appointment of an Independent Monitor to prospectively review DaVita’s arrangements with nephrologists and other health care providers for compliance with the Anti-Kickback Statute.
“Companies seeking to boost profits by paying physician kickbacks for patient referrals – as the government contended in this case – undermine impartial medical judgment at the expense of patients and taxpayers,” said Daniel R. Levinson, Inspector General for the U.S. Department of Health and Human Services. “Expect significant settlements and our continued investigation of such wasteful business arrangements.”
The settlement resolves allegations originally brought in a lawsuit filed under the qui tam or whistleblower provisions of the False Claims Act, which allow private parties to bring suit on behalf of the government and to share in any recovery. The suit was filed by David Barbetta, who was previously employed by DaVita as a Senior Financial Analyst in DaVita’s Mergers and Acquisitions Department. Mr. Barbetta’s share of the recovery has yet to be determined.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $22.4 billion through False Claims Act cases, with more than $14.2 billion of that amount recovered in cases involving fraud against federal health care programs.
The case was handled by the United States Attorney’s Office for the District of Colorado, the Civil Division of the United States Department of Justice, and the U.S. Department of Health and Human Services, Office of Inspector General.
The lawsuit is captioned United States ex rel. David Barbetta v. DaVita, Inc. et al., No. 09-cv-02175-WJM-KMT (D. Colo.). The claims settled by this agreement are allegations only; there has been no determination of liability.
DaVita to Pay $350 Million to Resolve Allegations of Illegal KickbacksRead the Press Release
WASHINGTON –DaVita Healthcare Partners, Inc., one of the leading providers of dialysis services in the United States, has agreed to pay $350 million to resolve claims that it violated the False Claims Act by paying kickbacks to induce the referral of patients to its dialysis clinics, the Justice Department announced today. DaVita is headquartered in Denver, Colorado and has dialysis clinics in 46 states and the District of Columbia.
The settlement today resolves allegations that, between March 1, 2005 and February 1, 2014, DaVita identified physicians or physician groups that had significant patient populations suffering renal disease and offered them lucrative opportunities to partner with DaVita by acquiring and/or selling an interest in dialysis clinics to which their patients would be referred for dialysis treatment. DaVita further ensured referrals of these patients to the clinics through a series of secondary agreements with the physicians, including entering into agreements in which the physician agreed not to compete with the DaVita clinic and non-disparagement agreements that would have prevented the physicians from referring their patients to other dialysis providers.
“Health care providers should generate business by offering their patients superior quality services or more convenient options, not by entering into contractual agreements designed to induce physicians to provide referrals,” said Deputy Assistant Attorney General for the Justice Department’s Civil Division Jonathan F. Olin. “The Justice Department is committed to protecting the integrity of our healthcare system and ensuring that financial arrangements in the healthcare marketplace comply with the law.”
The government alleged that DaVita used a three part joint venture business model to induce patient referrals. First, using information gathered from numerous sources, DaVita identified physicians or physician groups that had significant patient populations suffering renal disease within a specific geographic area. DaVita would then gather specific information about the physicians or physician group to determine if they would be a “winning practice.” In one transaction, a physician’s group was considered a “winning practice” because the physicians were “young and in debt.” Based on this careful vetting process, DaVita knew and expected that many, if not most, of the physicians’ patients would be referred to the joint venture dialysis clinics.
Next, DaVita would offer the targeted physician or physician group a lucrative opportunity to enter into a joint venture involving DaVita’s acquisition of an interest in dialysis clinics owned by the physicians, and/or DaVita’s sale of an interest in its dialysis clinics to the physicians. To make the transaction financially attractive to potential physician partners, DaVita would manipulate the financial models used to value the transaction. For example, to decrease the apparent value of clinics it was selling, DaVita would employ an assumption it referred to as the “HIPPER compression,” which was based on a speculative and arbitrary projection that future payments for dialysis treatments by commercial insurance companies would be cut by as much as half in future years. These manipulations resulted in physicians paying less for their interest in the joint ventures and realizing returns on investment which were extraordinarily high, with pre-tax annual returns exceeding 100 percent in some instances.
Last, DaVita ensured future patient referrals through a series of secondary agreements with their physician partners. These included paying the physicians to serve as medical directors of the joint venture clinics, and entering into agreements in which the physicians agreed not to compete with the clinic. The non-compete agreements were structured so that they bound all physicians in a practice group, even if some of the physicians were not part of the joint venture arrangements. These agreements also included provisions prohibiting the physician partners from inducing or advising a patient to seek treatment at a competing dialysis clinic. These agreements were of such importance to DaVita that it would not conclude a joint venture transaction without them.The Government’s complaint identifies a joint venture with a physicians’ group in central Florida as one of several examples illustrating DaVita’s scheme to improperly induce patient referrals. The group had previously been in a joint venture arrangement involving dialysis clinics with Gambro, Inc., a dialysis company acquired by DaVita in 2005. Prior to the acquisition, Gambro had entered into a settlement with the United States to resolve alleged kickback allegations that, among other things, required Gambro to unwind its joint venture agreements. As a consequence, Gambro purchased the group’s interest in the joint venture clinics and agreed to a “carve-out” of the associated non-competition agreement which allowed the group to open its own dialysis clinic nearby, which it did. After acquiring Gambro, DaVita bought a majority position in the group’s newly established dialysis clinic, and sold a minority position in three DaVita-owned clinics. Despite the fact that each of the clinics involved were roughly comparable in terms of size and profits, DaVita agreed to pay $5,975,000 to acquire a 60 percent interest in the group’s clinic, while selling a 40 percent interest in the three clinics it owned for a total of $3,075,000. As part of this joint venture, the group agreed to enter into new non-compete agreements.
“This case involved a sophisticated scheme to compensate doctors illegally for referring patients to DaVita’s dialysis centers. Federal law protects patients by making buying and selling patient referrals illegal, so as to ensure that the interest of the patient is the exclusive factor in the referral decision,” said U.S. Attorney John Walsh. “When a company pays doctors and/or their practice groups for patient referrals, the company’s focus is not on the patient, but on the profit to be extracted from providing services to the patient.”
In conjunction with today’s announcement, the U.S. Attorney’s Office noted that after extensive review, it is closing its criminal investigation of two specific joint ventures.
As part of the settlement announced today, DaVita has also agreed to a Civil Forfeiture in the amount of $39 million based upon conduct related to two specific joint venture transactions entered into in Denver, Colorado. Additionally, DaVita has entered into a Corporate Integrity Agreement with the Office of Counsel to the Inspector General of the Department of Health and Human Services which requires it to unwind some of its business arrangements and restructure others, and includes the appointment of an Independent Monitor to prospectively review DaVita’s arrangements with nephrologists and other health care providers for compliance with the Anti-Kickback Statute.
“Companies seeking to boost profits by paying physician kickbacks for patient referrals – as the government contended in this case – undermine impartial medical judgment at the expense of patients and taxpayers,” said Daniel R. Levinson, Inspector General for the U.S. Department of Health and Human Services. “Expect significant settlements and our continued investigation of such wasteful business arrangements.”
The settlement resolves allegations originally brought in a lawsuit filed under the qui tam or whistleblower provisions of the False Claims Act, which allow private parties to bring suit on behalf of the government and to share in any recovery. The suit was filed by David Barbetta, who was previously employed by DaVita as a Senior Financial Analyst in DaVita’s Mergers and Acquisitions Department. Mr. Barbetta’s share of the recovery has yet to be determined.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $22.4 billion through False Claims Act cases, with more than $14.2 billion of that amount recovered in cases involving fraud against federal health care programs.
The case was handled by the United States Attorney’s Office for the District of Colorado, the Civil Division of the United States Department of Justice, and the U.S. Department of Health and Human Services, Office of Inspector General.
The lawsuit is captioned United States ex rel. David Barbetta v. DaVita, Inc. et al., No. 09-cv-02175-WJM-KMT (D. Colo.). The claims settled by this agreement are allegations only; there has been no determination of liability.
Cybercriminal Sentenced to Two Years for Hacking the U.S. Navy and Geospatial-Intelligence Agency Computer SystemsRead the Press Release
TULSA, Okla. — Daniel Trenton Krueger, one of two leaders of the computer hacking group known as Team Digi7al, was sentenced today to serve twenty-four months in federal prison for hacking the U.S. Navy, National Geospatial-Intelligence Agency, and over 50 public and private computer systems, U.S. Attorney Danny C. Williams Sr. announced.
Krueger, 20, of Dix, Illinois, previously pleaded guilty before U.S. District Judge James H. Payne on May 20, and was initially charged in a single-count information on May 5, 2014. At the time of the hacking Krueger was a student. The co-defendant, Nicholas Paul Knight, 27, of Chantilly, Virginia, will be sentenced on November 21, 2014. Knight was an active-duty enlisted member of the Navy aboard the USS Harry S. Truman at the time of the hacking.
“Cybercrime is one of the most serious national security challenges we face as a nation, and it is one of the Department of Justice’s highest priorities,” said U.S. Attorney Williams. “We will vigorously investigate and prosecute cybercrimes. I commend the Naval Criminal Investigative Service and the Defense Criminal Investigative Service for their quick actions to identify and investigate the computer intrusions.”
According to court documents, in June 2012, the Naval Criminal Investigative Service (NCIS) detected a breach of the U.S. Navy’s Smart Web Move (SWM) database, which stored personal records, including Social Security numbers, names, and dates of birth, for approximately 222,000 service members. The servers that stored these records were located in Tulsa. At the time of the hacking attacks, Knight, Krueger, and other Team Digi7al conspirators posted links to the stolen information on a Team Digi7al Twitter account.
Investigators with the NCIS and the Defense Criminal Investigative Service (DCIS) identified Knight and Krueger as the hackers after a sting operation aboard the USS Harry S. Truman.
Victims of the conspiracy included the following organizations:
- U.S. Navy
- U.S. National Geospatial-Intelligence Agency
- U.S. Department of Homeland Security
- MobiTv
- Autotrader.com
- Harvard University
- Johns Hopkins University
- Kawasaki
- Library of Congress
- Los Alamos National Laboratory
- Louisville University
- MeTV Network
- Montgomery Police Department (Alabama)
- Peruvian Ambassador’s email (in Bolivia)
- San Jose State University
- Stanford University
- Toronto Police Service (Canada)
- Ultimate Car Page
- University of Alabama
- University of British Columbia (Canada)
- University of Nebraska-Lincoln
- World Health Organization
The case was investigated by the NCIS Atlantic Cyber Operations office in Norfolk, Virginia, with the cooperation and assistance of the DCIS Cyber Field Office, and other federal, state, and local agencies. The case was prosecuted by Assistant U.S. Attorney Joel-lyn A. McCormick on behalf of the United States.
- Corpus Christi Man Sentenced on Child Pornography Charges
Convicted Tampa Sex Offender Pleads Guilty to Second Federal Charge of Failure to Register as A Sex OffenderRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announced today that Kevin Robert Leblanc (52, Tampa) has pleaded guilty to failing to register as sex offender after traveling from Florida to the State of Arizona. He faces up to ten years in federal prison. A sentencing date has not yet been set. Leblanc has been in custody for violating the conditions of his federal supervised release since his arrest on August 15, 2014.
According to court documents, on July 29, 1999, Leblanc was convicted of committing two child sex offenses in Massachusetts. Subsequently, he traveled to Florida, failed to register as a sex offender, and was prosecuted for failure to register. Leblanc pleaded guilty to this charge and, on August 25, 2011, was sentenced to three years in federal prison, and a 15-year term of supervision.
On April 4, 2014, Leblanc was released from federal prison, established a residence in Tampa, Florida, and commenced his term of supervised release. On July 25, 2014, he absconded from federal supervision. In doing so, he failed to update his sex offender registration status with Florida authorities, as required by law. Leblanc was arrested near Flagstaff, Arizona, on August 15, 2014, by the U.S. Marshals Service. When interviewed, he acknowledged knowing that he was required to register as a sex offender, that he did not notify Florida authorities that he was leaving the state, and that he failed to notify authorities because he “got fed up” with being supervised.
The Sex Offender Registration and Notification Act is part of the Adam Walsh Child Protection and Safety Act of 2006. The Adam Walsh Act also provides for the use of federal law enforcement resources, including the United States Marshals Service, to assist state and local authorities in locating and apprehending non-compliant sex offenders. This case was investigated by the United States Marshals Service. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.
Clermont Woman Sentenced for Tax Fraud and Aggravated Identity TheftRead the Press Release
Orlando, Florida – United States District Judge Roy B. Dalton, Jr. has sentenced Tanya Fox to 20 years in federal prison for conspiracy to defraud the federal government, wire fraud, theft of government property, and aggravated identity theft. Fox was immediately taken into custody. The Court also entered a money judgment in the amount of $4,055,735, which relates to the amount of fraudulent tax refunds that Fox and her co-conspirators had received.
On July 24, 2014, following a four-day trial, a federal jury found her guilty of one count of conspiracy, five counts of wire fraud, ten counts of theft of government property, and ten counts of aggravated identity theft.
During the trial, evidence was introduced to show that Fox had orchestrated a scheme to file fraudulent tax returns using identities that had been stolen from a variety of sources. Fox directed other individuals to open business bank accounts in the name of a fraudulent tax preparation business and to have the tax refunds deposited into those accounts. She then worked with those individuals to withdraw the funds and spend the money. Fox attempted to receive approximately $5.8 million in fraudulent tax returns and was successful in receiving more than $4 million during the course of the scheme.
According to the testimony at trial, Fox spent the money received from the fraudulent tax returns to purchase several luxury and other vehicles. The United States has seized each of these vehicles. She also used proceeds from these offenses to have cosmetic surgery on two occasions and to open a restaurant in the Orlando area.
Previously, Shanterica Smith, Gerald Williams, and Delray Duncan pleaded guilty and were sentenced for providing approximately 2,400 names from the Orange County Health Department to Fox so that she and her co-conspirators could file the fraudulent tax returns. Smith was sentenced to five years in prison, Williams was sentenced to four years and six months in prison, and Duncan was sentenced to three years and six in prison. A fifth co-defendant, April Cuyler, also pleaded guilty for her role in this scheme; she was sentenced to two years and six months in prison.
This case was investigated by the Federal Bureau of Investigation, Internal Revenue Service-Criminal Investigation, the United States Postal Inspection Service, and the Orange County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Shawn P. Napier.
Citrus County Man Arrested on Federal Firearms, Ammunition, and Explosives ChargesRead the Press Release
Ocala, Florida – United States Attorney A. Lee Bentley, III announces the arrest yesterday of Michael Paul Watkins (41, Citrus Springs) on a criminal complaint alleging the possession of firearms and ammunition by a previously convicted felon, and the possession and manufacturing of unregistered destructive devices. Each offense carries a maximum penalty of ten years in federal prison.
According to court documents, Watkins was previously convicted, in state court, of felony offenses involving the handling and fondling of a child under the age of 16, and two escapes from custody. As a convicted, felon he is prohibited from possessing firearms and ammunition under federal law. In early October 2014, law enforcement officers received information that Watkins was using a third party to illegally acquire firearms and ammunition. Federal agents subsequently obtained search warrants for Watkins’s home, business, and a nearby property.
Yesterday, law enforcement agents executed the search warrants and recovered approximately 134 firearms (including AK-47 rifles) from Watkins’s home, along with numerous rounds of ammunition. They also discovered several fully assembled pipe bombs and the components to manufacture more.
A criminal complaint is an allegation by the United States that a defendant has violated one or more federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Citrus County Sheriff’s Office, with assistance from the Tampa Police Department Bomb Squad. It will be prosecuted by Assistant United States Attorney Robert E. Bodnar, Jr.
This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” Program - a nationwide, gun-violence reduction strategy. United States Attorney A. Lee Bentley, III, along with Trevor Velinor, Acting Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials. It is also a part of ATF’s Frontline Strategy to reduce violent crime in communities.
California Man Pleads Guilty to Possessing Methamphetamine and Firearm in Wayne CountyRead the Press Release
Follow @SDILNewsThomas Gregory Lilley, 36, of Fontana, California, pled guilty today in United States District Court in Benton to charges that he possessed methamphetamine with intent to distribute it and that he possessed a loaded semi-automatic pistol during and in relation to that crime, announced Stephen R. Wigginton, United States Attorney for the Southern District of Illinois. The offenses occurred on April 24, 2014, in Fairfield, Illinois.
Sentencing was set for February 18, 2015, at 10:00 a.m. at the United States Courthouse in Benton. At that time, Lilley faces up to 20 years in federal prison, a $1 million fine, and 3 years to life on supervised release following his incarceration on the methamphetamine charge and a consecutive 5 years to life, a $250,000 fine, and 5 years supervised release on the firearm charge.
Lilley has been held in the custody of the United States Marshal since his arrest on federal charges in May. He was returned to the custody of the Marshal to await sentencing.
The case was investigated by the Carmi office of the Southern Illinois Drug Task Force and the Wayne County Sheriff’s Department with the assistance of the Bureau of Alcohol, Tobacco, and Firearms.
The case is being prosecuted by Assistant United States Attorney James M. Cutchin.
Brooklyn Fish Dealer Sentenced to Four Months for Wire FraudRead the Press Release
WASHINGTON – Alan Dresner, a federally-licensed fish dealer from Brooklyn, New York, was sentenced today in federal court in Central Islip, New York, for violations stemming from his role in systematically underreporting fluke (summer flounder) that was being harvested as part of the federal Research Set-Aside (RSA) Program, the Justice Department’s Environment and Natural Resources Division announced.
On April 23, 2014, Alan Dresner pleaded guilty to one count of wire fraud. The scheme involved his personal falsification and internet submission of at least 120 fisheries dealer reports from July 2009 to December 2011, as part of a scheme to defraud the United States of 246,376 pounds of overharvested and underreported fluke valued at $510,000.
As part of his sentence, Dresner will serve four months in prison followed by three years of supervised release. The defendant was fined $6000 and ordered to make a $15,000 community service payment to the Cornell Cooperative Extension of Suffolk County in order to pay for the enhancement of fluke habitat in the waters of Long Island through the C.C.E.’s Marine Meadows Program. Dresner was ordered to pay $510,000 in restitution to the Marine Resources Account of the New York State Conservation Fund. Dresner was also ordered to surrender his federal dealer license and was banned from accessing the National Oceanic and Atmospheric Administration’s (NOAA) SAFIS computer system.
“Today, Dresner was held accountable for his role in defrauding a federal research program, a program whose purpose is to help ensure the long-term sustainability of Long Island’s fisheries,” said Acting Assistant Attorney General Sam Hirsch for the Justice Department’s Environment and Natural Resources Division. “We are committed to protecting the natural resources that the American people depend on today and for future generations as well.”
“This scheme to land tremendous amounts of overages for profit was not only detrimental to the RSA program, but also to the law abiding fishermen who will not be able to participate in this program in 2015,” said NOAA Special Agent Logan Gregory. “The Office of Law Enforcement will continue to focus on ensuring a level playing field by investigating these types of environmental crimes.”
Alan Dresner is “Fish Dealer X” as that person is identified in the related case of U.S. v. Anthony Joseph. As a federal fish dealer, Dresner had a NOAA permit to purchase fish directly from commercial fishing vessels without having to go through an intermediary. In July 2009, Dresner learned that Anthony Joseph, captain of the F/V Stirs One, was consistently overharvesting fluke through Joseph’s abuse of the RSA Program. By July 2009, Dresner was making regular purchases of illegal fluke from Joseph at the Point Lookout, New York, waterfront.
In order to cover-up his illegal fishing, Joseph would mail falsified fishing logs, known as FVTRs, to NOAA. However, falsified FVTRs were just one side of the coin. This is because fish dealers are required to report their purchases to NOAA on an electronic form known as a dealer report. The dealer reports include information such as date of landing, port of landing, catch vessel, corresponding FVTR numbers, commercial grade, species, price, and weight. NOAA utilizes the data in the dealer reports to set quotas and implement other management measures designed to ensure a sustainable fisheries. The dealer reports also serve as a check on the information that is submitted in FVTRs. In other words, for their scheme to work, the false data on the FVTRs had to match the false data on the dealer reports. A mismatch would have indicated a serious error or fraud, and would have been a red flag for fisheries managers. Accordingly, during July 2009 to December 2011, the defendant schemed with Anthony Joseph to file at least 120 false dealer reports with NOAA, representing a loss of 246,376 pounds of fluke valued at $510,000.
Theft of domestic marine resources has far-reaching consequences beyond illicit financial gain. Fisheries managers operate on the basic assumption that fishers and dealers make accurate and honest reports to NOAA. When harvested fish is misreported or unreported, the integrity of fisheries statistics and associated mathematical models are jeopardized. Recently, based in large part on the recently quantified illegal fluke harvesting revealed by the guilty pleas in the Jones Inlet Seafood, Charles Wertz Jr., Anthony Joseph, and Dresner cases, on Aug. 12, 2014, the Mid-Atlantic Fisheries Management Council voted to suspend the RSA Program for 2015 in order analyze the effect illegal fishing has had on the soundness of the RSA Program.
Anthony Joseph pleaded guilty to wire fraud, mail fraud, and falsification of federal records on April 11, 2014, for his fisheries fraud crimes related to Alan Dresner and Jones Inlet Seafood. He is scheduled to be sentenced on May 20, 2015.
The case was investigated by agents of NOAA’s National Marine Fisheries Service, with assistance from the New York State Department of Environmental Conservation Police. The case is being prosecuted by Christopher L. Hale of the Justice Department’s Environmental Crimes Section, Environment and Natural Resources Division.
Bank Employee Charged with Stealing More Than $100k from Customer AccountsRead the Press Release
Follow @USAO_CT
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ALEXANDER ALVAREZ, 32, of East Lyme, was arrested today on federal charges related to his alleged theft of more than $100,000 from customers of the bank where he was employed.
On October 21, 2014, a grand jury in New Haven returned an indictment charging ALVAREZ with two counts of bank fraud. ALVAREZ appeared this afternoon before U.S. Magistrate Judge William I. Garfinkel in Bridgeport and is currently detained. A detention hearing is scheduled for October 24.
As alleged in the indictment, from January 2012 to February 2013, ALVAREZ was employed as a Financial Service Representative for a bank in Newington. While employed at the bank, ALVAREZ identified accounts that had little banking activity. He then caused the mailing address for the accounts he targeted to be changed from the owner’s address to a fraudulent address so that transactions in the accounts would not be immediately discovered by the account owner. ALVAREZ then created fraudulent transfer slips causing the funds to be transferred to another account that he believed was dormant, or to an account that he directly controlled, or to be issued in a bank check. Once the funds were transferred from the owner’s account, ALVAREZ withdrew the funds from the bank in cash or via an ATM card, or transferred them to his personal banking account.
The indictment alleges that ALVAREZ stole $100,806.85 from one bank customer and $11,137.01 from a second bank customer.
The charge of bank fraud carries a maximum term of imprisonment of 30 years and a fine of up to $1,000,000.
U.S. Attorney Daly stressed that an indictment is only a charge and is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
The case has been assigned to U.S. District Judge Michael P. Shea in Hartford.
This matter is being investigated by the Connecticut Financial Crimes Task Force, the Stratford Police Department and the Greenwich Police Department. The case is being prosecuted by Assistant U.S. Attorney Ray Miller.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Air Force Staff Sergeant Sentenced to 11 Years for Child EnticementRead the Press Release
Tampa, FL – U.S. District Judge Susan C. Bucklew yesterday sentenced Steven Richard Romel (32, Kissimmee) to 11 years in federal prison for enticement of a child for sex. The Court also ordered Romel to forfeit a phone and an iPad, that he had used to commit the offense. Romel pleaded guilty on July 8, 2014.
According to court documents, between November 21, 2013, and January 18, 2014, a special agent with the Air Force Office of Special Investigations in Tampa conducted an online investigation into adults using computers to communicate with, and arrange for sex with, minors. Specifically, the agent posed as the 15-year-old daughter of a deployed military soldier. On November 21, 2013, the “child” posted an online personal advertisement to which Romel responded. During subsequent conversations, Romel discussed meeting the “child” and inquired when she could sneak away to meet with him. The “child” repeatedly mentioned that she was 15 years old.
Romel, who was stationed at Barksdale Air Force base in Shreveport, Louisiana at the time, offered to buy the “child” a roundtrip ticket from Tampa so that she could meet with him. On several occasions, he also requested that photos be sent to him online. When the “child” mentioned that she would be off from school on January 20, 2014, Romel purchased a plane ticket for the “child” to visit him in Shreveport.
On January 18, 2014, the agent flew from Tampa to Shreveport, on the same flight as the supposed “child.” Romel was at the airport waiting and was arrested. A search of Romel’s residence later showed that he had purchased numerous items discussed with the “child” during their chats, including the “Plan B” pill.
This case was investigated by the Air Force Office of Special Investigations. It was prosecuted by Assistant United States Attorney Amanda C. Kaiser.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
21 October 2014
Vienna Investment Adviser Pleads Guilty to Defrauding Numerous Elderly and Widowed ClientsRead the Press Release
ALEXANDRIA, Va. – Ismail Elmas, 49, of Vienna, Virginia, pleaded guilty today to defrauding more than 10 of his investment advisory clients—many of whom were seniors and widows—of more than $1 million in funds they entrusted to him to invest on their behalf.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after the plea was accepted by U.S. District Judge Anthony J. Trenga.
Elmas was charged by criminal information on October 21, 2014, on wire fraud charges. Elmas faces a maximum penalty of 20 years in prison when he is sentenced on January 16, 2015. The maximum statutory sentences are prescribed by Congress and are provided here for informational purposes, as the sentencing of the defendants will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
In a statement of facts filed with the plea agreement, Elmas admitted to having worked as an investment adviser at Apple Financial Services (AFS), an affiliate of Apple Federal Credit Union (AFCU), during the time of his offense. Elmas also was registered with the Financial Industry Regulatory Authority (FINRA) as an investment adviser. In addition, he owned and operated a bank account in the name of “I.E. Financial Solutions.” From at least 2012 through in or around August 2014, Elmas misappropriated client funds given to him for legitimate investments in his capacity as an investment adviser, and he used those funds for his own purposes by way of his I.E. Financial Solutions bank account at NFCU. Elmas misappropriated these client funds in different ways. For example, he materially withheld the fact that I.E. Financial Solutions was his own bank account, never telling his clients that they were giving their money to his own purported investment vehicle. In other instances, Elmas falsely described I.E. Financial Solutions to clients as a particular investment vehicle (e.g., a Certificate of Deposit or a Real Estate Investment Trust). And for other clients, Elmas simply transferred the funds to his I.E. Financial Solutions account without providing truthful disclosures about the use and disposition of the funds. As a result of Elmas’ scheme, more than 10 victims lost more than $1 million but less than $7 million.
This case was investigated by the FBI’s Washington Field Office. Assistant U.S. Attorney Chad Golder is prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:14-cr-328.Tweet
United States Attorney Stephen R. Wigginton Announces Election Day Anti-Fraud EffortsRead the Press Release
Follow @SDILNewsStephen R. Wigginton, United States Attorney for the Southern District of Illinois, reminded everyone today of the efforts of his office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 4, 2014, general elections. An Assistant U.S. Attorney is designated as the District Election Officer for the Southern District of Illinois, and, in that capacity, is responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington.
United States Attorney Wigginton said, “Every citizen must be able to vote without interference or discrimination and to have that vote counted without it being stolen because of fraud. The Department of Justice will act promptly and aggressively to protect the integrity of the election process.”
The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open on Election Day. Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting, may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice.
“The franchise of voting is the cornerstone of American democracy. We all must ensure that those who are entitled to the franchise exercise it if they choose, and that those who seek to corrupt it are brought to justice.” noted United States Attorney Wigginton. In order to respond to complaints of election fraud or voting rights abuses on November 4, 2014, and to ensure that such complaints are directed to the appropriate authorities, United States Attorney Wigginton will have Assistant United States Attorney, and District Election Officer, Norman R. Smith on duty in this District while the polls are open. Smith may be reached by the public at the following telephone numbers: (618) 628-3700, (618) 628-3743 or (618) 799-8775.
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on Election Day. The local FBI field office can be reached by the public at (618) 397-4401.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division’s Voting Section in Washington by phone at 1-800-253-3931 or (202) 307-2767, by fax at (202) 307-3961, by email to [email protected] or by complaint form at: http://www.justice.gov/crt/complaint/votintake/index.php.
United States Attorney Wigginton concluded by reminding all of us that, “Ensuring free and fair elections depends in large part on the cooperation of the American electorate. It is imperative that those who have specific information about discrimination or election fraud make that information available immediately to my Office, the FBI, or the Civil Rights Division. In so doing, all of our citizens may enjoy the benefits of our free and fair election system.”
U.S. Department of Justice Announces Collaborative Reform Initiative with Fayetteville Police DepartmentRead the Press Release
FAYETTEVILLE, NORTH CAROLINA—Today the U.S. Department of Justice Office of Community Oriented Policing Services (COPS) announced the beginning of a review of the Fayetteville Police Department’s use of force policies and practices. The scope of the work announced today will include an assessment of policies, training, and operations as they relate to use of force, deadly force investigations, and interactions with citizens, taking into account national standards, best practices, current and emerging research, and community expectations. Following the assessment, COPS will issue a report detailing the findings along with specific recommendations for improvement. COPS will assess progress made at the 6-month and 12-month marks issuing follow up reports.
Ronald L. Davis, Director of the Office of Community Oriented Policing Services said, “The Collaborative Reform Initiative we embark on today is just that—a collaboration—and everything this partnership entails will be done in an open and transparent fashion.”
Davis continued, “I applaud Chief Medlock for taking this proactive step to review his agencies policies and practices to ensure that they are current with the latest national standards. Often times police departments seek help too late when the only remedy available is a pattern and practice investigation, consent decree and federal monitor costing millions of dollars. The process we begin today has no cost to the city.”
The U.S. Department of Justice, Office of Community Oriented Policing Services developed the Collaborative Reform Initiative for Technical Assistance in 2011 as an independent and objective way to transform a law enforcement agency through an analysis of policies, practices, training, tactics, and accountability methods around key issues facing law enforcement today.
The goal of the Collaborative Reform Initiative is to help change the ways that law enforcement agencies build community partnerships and enhance transparency; transform agencies through decision making and policies; and institutionalize reforms with integrated accountability measures.
U.S. Attorney Booth Goodwin, Law Enforcement and Treatment Professionals Announce New Initiative to Help Heroin AddictsRead the Press Release
CHARLESTON, W.Va. – U.S. Attorney Booth Goodwin, Prestera Center for Mental Health Services CEO Karen Yost, Charleston Police Chief Brent Webster, Kanawha County Sheriff John Rutherford, and other law enforcement representatives today announced a unique intervention program through which certain heroin addicts are being referred to treatment. The collaborative initiative is part of ongoing efforts in the Kanawha Valley to address the opiate abuse epidemic. The Kanawha County Commission provided funding earlier this year for an anti-heroin initiative known as HEAT: Heroin Eradication Associated Task Force. As a result, a roundup was conducted by area law enforcement agencies on October 16th, netting approximately 34 arrests. During the law enforcement operation, law enforcement officers referred three low-level, nonviolent offenders to treatment services instead of sending them to jail. Treatment services will be provided by Prestera. If one of these individuals deviates from the caseworker’s plan or treatment program, criminal charges will be filed and the individual would then be subject to the normal judicial process.
U.S. Attorney Booth Goodwin said, “While we in law enforcement will continue to aggressively arrest and prosecute heroin dealers and traffickers, we also know that we cannot arrest our way out of this epidemic. Opiate addiction is powerful – addicts will continue to use until they get treatment. This is not being soft on crime but rather being smart on crime.”
Karen Yost, CEO of Prestera, said, “We are excited to be a partner with law enforcement in this innovative initiative to combat drug addiction.”
Timonium Man Sentenced to 18 Months in Prison for Stealing More Than $680,000 from an NIH Research GrantRead the Press Release
Stole Money Intended for Research Conducted at the
National Institute for Drug Abuse Facilities in Baltimore
Baltimore, Maryland – Chief U.S. District Judge Catherine C. Blake sentenced Jason Dietz, age 34, of Timonium, Maryland, today to 18 months in prison, followed by three years of supervised release, for theft of funds from a federal program, in connection with the theft of $683,705 in grant money from the National Institute for Drug Abuse for research conducted at its facilities in Baltimore. Chief Judge Blake also ordered Dietz to pay restitution of $683,705.The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Elton Malone, Special Agent in Charge of the Department of Health and Human Services, Office of the Inspector General (HHS-OIG), Office of Investigations, Special Investigations Branch.
The National Institute for Drug Abuse (“NIDA”) is part of the National Institutes of Health and is located at Johns Hopkins Bayview Center in Baltimore. NIDA also operates the Archway Treatment Clinic, also in Baltimore. NIDA and its grantees conduct research on the science of addiction and treatment and publish that research in scientific and medical peer-reviewed journals. For each of the years 2006-2013, NIDA conducted from 26 – 31 studies at Bayview and the Archway Clinic.
According to Dietz’s plea agreement, from 2006 until June 2013, Dietz worked for Matthews Media Group (MMG), which was contracted by NIDA to recruit, screen, and compensate participants in NIDA’s clinical research studies conducted at Bayview and Archway. Dietz’ job was to compensate study participants, typically with cash or gift cards, obtain receipts from study participants, and keep a spreadsheet of participants’ compensation with supporting documentation—chiefly signed receipts from the study participants. Dietz was a signatory on an MMG bank account from which he withdrew cash to pay study participants; in addition, he provided cash to Archway Clinic for the clinic employees to pay study participants. MMG invoiced NIDA each month and included in its invoice amounts taken directly from the spreadsheet prepared by Dietz.
Dietz admitted that, beginning in 2007, he embezzled funds from MMG in several ways. For example, Dietz paid study participants and obtained a signed receipt from them, then logged a higher amount on the spreadsheet and pocketed the difference between the two amounts. In addition, Dietz created fictitious receipt numbers and amounts which he placed on his spreadsheet, then pocketed all the cash from these fictitious payments. Finally, Dietz listed on his spreadsheet higher amounts than were actually paid to Archway Clinic employees for them to pay Archway participants and pocketed the difference.
In 2013, MMG was responding to questions from NIDA employees when discrepancies were discovered between the signed receipts and Dietz’ spreadsheet. MMG then conducted an audit that looked at every entry on every spreadsheet which was used to bill NIDA and the back-up documentation. For the time period October 2006 through May 2013, the MMG auditor found that Dietz overstated the expenses on the spreadsheet compared to the actual receipts by $571,205, and that he deposited $586,083 into his personal bank account during that same time period. In addition, the MMG auditors discovered that Dietz had cashed $112,500 in checks from the MMG bank account on which Dietz was a signatory and that the funds were unaccounted for. Dietz admitted that in addition to depositing embezzled funds into his personal bank account, he also embezzled cash that he spent.
United States Attorney Rod J. Rosenstein praised the HHS-OIG for its work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Joyce K. McDonald, who prosecuted the case.
- Three Defendants Guilty of Tax Fraud Charges
Thomas W. Faircloth Sentenced for Distribution of Child PornographyRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that Thomas W. Faircloth, aged 37, of Cairo, Georgia, was sentenced by the Honorable W. Louis Sands, U.S. District Court Judge, in Albany, Georgia on October 20, 2014, in connection with receiving, distributing and possessing child pornography.Mr. Faircloth was sentenced to 151 months in federal prison, to be followed by lifetime supervision. He will also be required to register as a sex offender under the Sex Offender Registration and Notification Act (“SORNA”).
Mr. Faircloth admitted that on November 13, 2012, he distributed 22 still images and 17 video files, containing depictions of child pornography, to an undercover FBI agent, using the program Gigatribe. During the execution of a search warrant on February 18, 2013, many thousands of images and video files of child pornography, including those of very young children, were found on a laptop computer in Mr. Faircloth’s possession. The images were transported in interstate and foreign commerce using the internet. When interviewed by FBI agents, Mr. Faircloth admitted to receiving, distributing and possessing child pornography.
“As we strive every day to protect our children from even the slightest harm, we must remain mindful of those individuals who victimize innocent children over and over again distributing horrific depictions of child pornography by way of the internet. We will continue to use our law enforcement resources to make sure that we catch these offenders and bring them to the justice they deserve,” said U.S. Attorney Michael Moore.
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “The children depicted in these images are re-victimized each time those images are re-distributed by individuals such as Mr. Faircloth. The FBI will continue to provide significant investigative resources toward identifying and presenting for prosecution those individuals who would exploit our nation’s children in such a manner.”
The case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney Jim Crane is prosecuting the case for the Government.
Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
Tennessee Man, John Nutter, Sentenced for Drug ViolationsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JOHN NUTTER, age 32, resident of Knoxville, Tennessee, was sentenced today after having previously pleaded guilty to conspiracy to distribute and conspiracy to possess with intent to distribute cocaine hydrochloride and cocaine base and misprision of a felony.
U.S. District Judge Jay C. Zainey sentenced NUTTER to a 38-month term of imprisonment and 3 years of supervised release.
On February 6, 2014, NUTTER was one of 15 defendants charged in an 8-count indictment. According to court documents, the indictment was based on court-authorized wiretaps that recorded conversations between STEVEN HAYNES, who has pled guilty in this case, and NUTTER, concerning the distribution of powder cocaine that was later converted to crack and sold in Washington and Tangipahoa Parishes. NUTTER was arrested on July 3, 2013, in possession of approximately 400 grams of cocaine that he obtained from HAYNES.
U.S. Attorney Polite praised the work of the Drug Enforcement Administration, the Louisiana State Police, and Washington Parish Sherriff’s Office in investigating this matter. Assistant United States Attorney Michael E. McMahon is in charge of the prosecution.
Statement by United States Attorney Robert Pitman Concerning the November 2014 General ElectionRead the Press Release
Today, United States Attorney Robert Pitman announced the appointment of Assistant United States Attorney (AUSA) Tom Moore as the District Election Officer. AUSA Moore will lead the efforts of the United States Attorney’s Office for the Western District of Texas in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 4, 2014, general elections. AUSA Moore will be responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington.
United States Attorney Pitman said, “Every citizen must be able to vote without interference or discrimination and to have that vote counted without it being stolen because of fraud. The Department of Justice will act promptly and aggressively to protect the integrity of the election process.”
The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open on Election Day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice.
In order to respond to complaints of election fraud or voting rights abuses on November 4, 2014, and to ensure that such complaints are directed to the appropriate authorities, United States Attorney Pitman stated that AUSA/DEO Moore will be on duty in this District while the polls are open. He can be reached by the public at the following telephone number: (210) 384-7188.
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on Election Day. The San Antonio FBI field office can be reached by the public at (210) 225-6741. The El Paso FBI field office can be reached by the public at (915) 832-5000. Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division’s Voting Section in Washington by phone at 1-800-253-3931 or (202) 307-2767, by fax at (202) 307-3961, by email to [email protected] or by complaint form at http://www.justice.gov/crt/complaint/votintake/index.php.United States Attorney Pitman said, “Ensuring free and fair elections depends in large part on the cooperation of the American electorate. It is imperative that those who have specific information about discrimination or election fraud make that information available immediately to my Office, the FBI, or the Civil Rights Division.”
Southern California Man Gets 21 Months in Federal Prison for Income Tax Return Fraud in NevadaRead the Press Release
LAS VEGAS, Nev. – A Huntington Beach, Calif. man who defrauded the IRS of almost $800,000 in a false income tax refund scheme, was sentenced today to 21 months in prison and ordered to pay restitution to the government, announced U.S. Attorney Daniel G. Bogden for the District of Nevada and Special Agent in Charge John Collins of IRS Criminal Investigation for Nevada.
Judas Godina, 39, was sentenced by U.S. District Judge Kent J. Dawson. Godina was indicted in July 2013 and pleaded guilty on July 15, 2014, to one count of conspiracy to defraud the IRS. He must report to federal prison by Jan. 16, 2015.
“This type of tax crime harms every U.S. citizen and resident,” said U.S. Attorney Bogden. “We will aggressively work with the IRS to prosecute these cases, and will also recommend prison sentences in order to deter others from this type of fraud.”
“The substantial sentence of imprisonment and restitution handed down today on this case makes it clear that filing false claims for tax refunds is a serious crime,” said Special Agent in Charge Collins. “IRS Criminal Investigation, with the assistance of our law enforcement partners and federal prosecutors, will aggressively pursue these violations of the law and protect the integrity of the tax system and honest taxpayers.”
According to the guilty plea agreement, from about January through December 2010, Godina conspired with Felix and Walter Guzman to defraud the IRS through a false income tax refund scheme. Godina recruited customers in Las Vegas into the tax return scheme by telling them that he could prepare their individual income tax returns and generate large refunds for them. Godina requested their identification information and tax returns from prior years, and then prepared the fraudulent tax returns using the information they provided, along with fraudulent W-2’s and Schedule E’s for business losses that he created. Godina transmitted or caused to be submitted the fraudulent forms to the IRS and monitored the status of the refunds. When the customers received the refunds, Godina arranged to meet them and demanded payment of approximately one-half of the refund. Godina also offered to pay a finder’s fee to customers who referred other paying customers to him and prepared fraudulent tax returns for customers recruited by co-defendants Felix and Walter Guzman. Using this fraudulent scheme, Godina admitted that his conduct resulted in $791,666 in fraudulent refunds being issued by the IRS. The Guzman’s are currently fugitives and the charges against them are unresolved.
The case was investigated by IRS Criminal Investigation and prosecuted by Assistant U.S. Attorney Kathryn C. Newman.
Science Applications International Corporation Agrees to Pay $1.5 Million to Resolve Alleged False Claims Act Violations for Undisclosed Organizational Conflicts of InterestRead the Press Release
The Justice Department announced today that Science Applications International Corporation (SAIC), now known as Leidos Holdings Inc., has agreed to pay $1.5 million to resolve a False Claims Act lawsuit alleging that it knowingly engaged in prohibited conflicts of interest as a contractor for the U.S. Nuclear Regulatory Commission (NRC) between 1992 and 2000. SAIC provides scientific, engineering and other technical services for government and commercial customers and is headquartered in Reston, Virginia.
“Organizational conflicts of interest undermine the integrity of the federal procurement process,” said Acting Assistant Attorney General Joyce R. Branda for the Justice Department’s Civil Division. “Even more importantly, where the conflicts relate to a government program aimed at protecting the public health, work biased by conflicts of interest can put the public’s health at risk. This resolution, reached after a long and difficult litigation, demonstrates that the Justice Department will ensure that contractors who put their financial interests above the good of the American public will be held accountable.”
Between 1992 and 2000, SAIC held two contracts with the NRC to provide scientific and technical services, including assisting the NRC in its consideration of a rule that could have permitted the release or recycling of certain types and quantities of material with very low levels of radioactivity below regulatory safety limits. The NRC decided in 2005 not to proceed with such a rule. The United States alleged that, under these contracts, SAIC was required to avoid conflicting business relationships that could bias SAIC’s work for the NRC. The United States alleged that SAIC repeatedly and falsely certified that it had no such conflicting business relationships, when SAIC actually engaged in multiple business relationships with entities that had a financial interest in the outcome of the NRC’s rulemaking effort.
“The NRC’s unique status as an independent agency dedicated to the protection of public health, safety, and the environment means that decision-making must be free from even the potential for bias,” said Mark A. Satorius, Executive Director for Operations at the NRC. “This resolution shows that the NRC and Justice Department will work together to ensure that contractors who undermine the NRC’s commitment to decision-making that is free from bias will be held accountable.”
In July 2008, after a five-week jury trial, the jury returned a verdict in favor of the United States that SAIC violated the False Claims Act and breached its contract with the NRC by engaging in undisclosed conflicts of interest. On appeal, in December 2010, the U.S. Court of Appeals for the District of Columbia Circuit affirmed judgment for the United States on the breach of contract claim, but partially reversed the judgment on the False Claims Act claims based on two instructions given to the jury and remanded the case for a new trial on those claims.
This matter was handled by the Civil Division in cooperation with the NRC. The False Claims Act claims resolved by this settlement are allegations only, and there has been no determination of liability with respect to those claims.
The case is captioned U.S. v. SAIC, 04-cv-1543 (D.D.C.).
Santa Rosa Tax Return Preparer Pleads Guilty to Tax Fraud and Failing to Report Foreign Bank AccountsRead the Press Release
SAN FRANCISCO – Efrain Arturo Jovel pleaded guilty today to filing two false tax returns and failing to report his financial interest in foreign bank accounts, U.S. Attorney Melinda Haag and Internal Revenue Service, Criminal Investigation Special Agent in Charge José M. Martinez, announced.
According to the plea agreement, Jovel owned and operated a tax return preparation business for over 30 years, first out of his home, then out of offices on Guerneville Road, both in Santa Rosa, Calif. On average, Jovel prepared approximately 1,800 tax returns per year. Jovel admitted that for the tax years 2009 and 2010, he filed personal U.S. Individual Income tax returns that were false in that he did not disclose his foreign bank accounts in Guatemala and El Salvador. In addition, Jovel did not disclose interest income of $35,104 earned in 2009 and 2010 on the funds held in these foreign bank accounts. Jovel additionally admitted that he willfully underreported gross receipts from his tax preparation service of $244,120 and $307,846, respectively. This resulted in a tax loss of $175,023.
Jovel, 64, of Santa Rosa, was charged on September 9, 2014, with one count of willfully violating foreign bank account reporting requirements and two counts of subscribing to false tax returns. He pleaded guilty to all counts.
Jovel’s sentencing hearing is scheduled for January 20, 2014 before the Honorable Richard Seeborg, U.S. District Court Judge, in San Francisco. The maximum penalty for filing a false tax return, in violation of Title 26 U.S.C. § 7206(1), is three years in prison and a fine of $250,000. The maximum penalty for willfully violating foreign bank account reporting requirements, in violation of Title 31 U.S.C. §§ 5314 and 5322(a), is five years in prison and a fine of $250,000.
Assistant U.S. Attorney Colin Sampson is prosecuting the case. The prosecution is the result of an investigation by the IRS Criminal Investigation.
Professed Church Director and "Enforcer" Pleads Guilty to Racketeering and Bribery Related ChargesRead the Press Release
BOSTON – Edward J. MacKenzie, Jr., a self-professed "enforcer" for James "Whitey" Bulger, pleaded guilty today to charges relating to his decade-long scheme to siphon off the considerable financial assets of the Boston Society of the New Jerusalem Church.
MacKenzie, 56, of Weymouth, pleaded guilty before U.S. District Court Judge F. Dennis Saylor IV to 13 counts, including Rico conspiracy, racketeering, mail fraud, wire fraud, and money laundering. Sentencing is scheduled for Jan. 23, 2015 at 2:00 p.m.
In September 2002, MacKenzie became a member of the Church, which was one of the first Swedenborgian churches in Massachusetts, and in 2003, he became the “Director of Operations,” a position that had not previously existed and paid him a starting salary of over $100,000 per year. With the purpose of draining the church of its assets, he began voting himself and his associates into positions of authority within the Church, and consolidating and fortifying his control by, among other things, changing the Church’s by-laws for his own benefit. MacKenzie was able to gain control over substantial church assets, including an 18 story apartment building in downtown Boston, because the Church had a small number of voting members, many of whom were elderly.
After obtaining control, MacKenzie began to steal Church funds through a combination of fraud, deceit, theft, and bribery. Moreover, MacKenzie intimidated and threatened individuals who were employed by and did work at the Church by, among other things, providing them with signed copies of his 2003 autobiography, Street Soldier: My Life as an Enforcer for Whitey Bulger and the Boston Irish Mob. In the autobiography, MacKenzie admitted to a lengthy criminal history, including burglary, robbery, armed assault, and narcotics trafficking.
As MacKenzie admitted in Court today, a goal of the conspiracy was to obtain power and influence within the Church so that he and his co-conspirators could defraud the Church of its considerable financial holdings and profit from transactions involving the Church. MacKenzie’s fraud cost the Church millions of dollars.
“The defendant preyed on the elderly and unsuspecting congregation of a well-established Boston church for more than a decade,” said United States Attorney Carmen M. Ortiz. “Posing as a director with the best interests of the church as a guise, he was in fact just the opposite: a criminal bent on personal gain who siphoned the considerable income of the charitable institution that he had an obligation to protect.”
The charging statutes provide a sentence of no greater than 20 years in prison, three years of supervised release, and a fine of twice the gross proceeds from the racketeering offense. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Ortiz, Vincent 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 case is being prosecuted by Assistant U.S. Attorneys Zachary Hafer and Dustin Chao of Ortiz’s Public Corruption and Special Prosecutions Unit.
Pre-Trial Conference HearingRead the Press Release
Contact Person: Beth Drake (803) 929-3000
Columbia, South Carolina ---- The United States Attorney’s Office advises that there will be a pre-trial conference hearing tomorrow (October 22, 2014) in United States v. James William Lewis and Kirstie Elaine Philome Barratt. The hearing will be held at 9:30 am on October 22, 2014, before United States District Judge Joseph F. Anderson, Jr. (courtroom # 4) at the Matthew J. Perry Federal Courthouse in Columbia, South Carolina.
Portsmouth Man Sentenced to 35 Years in Prison for Heroin and Crack DistributionRead the Press Release
NORFOLK, Va. –Antwan Black, a/k/a “Twizzy,” 31, of Portsmouth, Virginia, was sentenced today to 30 years in prison, followed by 8 years of supervised release for the distribution of heroin and crack cocaine. He was further sentenced to an additional consecutive 5 years in prison for possessing a firearm in furtherance of drug trafficking.
Dana J. Boente, United States Attorney for the Eastern District of Virginia and Royce E. Curtin, Special Agent in Charge of the Federal Bureau of Investigation’s Norfolk Field Office, made the announcement after sentencing by Senior United States District Judge Robert G. Doumar.
According to court documents, Black was the leader of a drug trafficking organization out of Portsmouth, Virginia. Between 2009 and July, 2013, Black sold heroin, cocaine-base and cocaine in the Portsmouth area. In 2012 and 2013, Black began using other individuals to man hotel rooms in the downtown Portsmouth area to sell drugs. Black furnished the room with ounces of heroin and crack cocaine daily. He paid for the hotel rooms, cell phones and other costs for his dealers. At the end of the day, Black retrieved the money from sales and would re-supply the room. Black carried a firearm with him during most of his drug deliveries. He and his co-conspirators also used homes of drug users to sell their narcotics. Drug users were given free drugs for access to their homes. As part of the investigation, authorities recovered two loaded firearms – a 9 mm semi-automatic handgun and a MK99 assault rifle – from residences used by Black. Both firearms were loaded.
Black was indicted by a federal grand jury on January 10, 2014 and pleaded guilty to conspiracy to distribute 100 grams or more of heroin and 28 grams or more of crack cocaine on March 17, 2014.
This case was investigated by the Federal Bureau of Investigation and the Portsmouth Police Department. Special Assistant U.S. Attorney Amy Cross prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the EasternDistrict of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:14-cr-15.
Tweet
Pineville Woman Sentenced to 15 Months in Prison for Stealing Money from Former EmployerRead the Press Release
CHARLOTTE, N.C. – U.S. District Judge Robert J. Conrad, Jr. handed down a 15-month prison sentence to a Pineville woman today for stealing money from her former employer, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. Joan Elliott, 69, of Pineville, was also ordered to serve three years under court supervision and to pay $406,929 as restitution.
Russell F. Nelson, Special Agent in Charge of the United States Secret Service, Charlotte Field Division joins U.S. Attorney Tompkins in making today’s announcement.
According to court to documents and today’s sentencing hearing, Elliott was employed as a bookkeeper by a Charlotte-based association representing the lumber and building material industry. Court records show that among Elliott’s responsibilities were issuing company checks to pay business expenses and depositing to the company’s bank account check payments for administrative fees from the insurance company used by members of the association. According to court filings, from 2006 to 2009, Elliott used company checks to pay for personal expenses, falsely representing that the funds were used as payment of legitimate business expenses.
Court records indicate that during the same time period, Elliott further defrauded her employer by failing to deposit to her employer’s bank account checks sent by the company’s insurance company. Instead, records show, Elliott used those checks to pay for personal expenses, by taking the checks to the bank and directing the bank to rewrite official bank checks for the same amounts that Elliott then used toward personal expenditures. Elliott fraudulently obtained between $200,000 and $400,000 from her former employer, court records indicate. According to today’s sentencing hearing, Elliott used some of the stolen funds to pay for, among other things, a car, furniture, and spa visits. Elliott pleaded guilty in January 2013 to one count of forged securities.
Elliott has been released on bond and will be allowed to self-report to begin serving her prison term once the Federal Bureau of Prisons has designated a federal facility. All federal sentences are served without the possibility of parole.
The investigation was handled by the U.S. Secret Service. The case was prosecuted by Assistant United States Attorney Jenny G. Sugar of the U.S. Attorney’s Office in Charlotte.
Penobscot Man Convicted of Possessing Child PornographyRead the Press Release
Contact: Andrew McCormack
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Kevin
Lee Ross, 52, of Penobscot, Maine, was found guilty today after a one-day jury trial in U.S.
District Court of possessing child pornography.Court proceedings revealed that in July 2011 a search warrant was executed at the defendant’s residence in Penobscot. The defendant was the only person at the residence at that time. Agents found a child pornography video playing on one of the defendant’s computers. A forensic examination of computers seized from the residence revealed thousands of images and hundreds of videos of child pornography.
Ross faces 10 years in prison and a $250,000 fine, or both. He agreed to forfeit the computers. He will be sentenced after the completion of a presentence investigation report by the U.S Probation Office.
The investigation was conducted by the U.S. Postal Inspection Service and the Maine
State Police Computer Crimes Unit.Officials Take Down Alleged Gang-Affiliated Drug Traffickers in Imperial County; Take Drugs and Guns Off the StreetRead the Press Release
EL CENTRO – Thirty alleged members of a large-scale methamphetamine and heroin drug trafficking organization in Imperial County are charged in federal grand jury indictments unsealed today with conspiring to import and distribute the illicit drugs.
Early this morning, a contingent of federal, state, and local law enforcement officials arrested 43 people – including those under federal indictment plus others who will be charged by the state - and seized drugs, cash, vehicles and 14 firearms in connection with the year-long investigation. During the predawn raids, agents also served 38 search warrants in Calipatria, El Centro and Brawley. The firearms ranged from handguns to assault rifles.
The arrests were based on two grand jury indictments. The charges include conspiracy to import and distribute methamphetamine and heroin and possession of methamphetamine and heroin with intent to distribute. So far, authorities have seized more than 30 pounds of methamphetamine with an estimated street value of 1 million dollars.
“With these arrests and charges, we have taken the first step in wiping out a major connection to methamphetamine in the valley,” said U.S. Attorney Laura Duffy. “This type of investigation and prosecution has a significant impact on public safety and quality of life in this community.”
“Today the Imperial Valley law enforcement community has taken down a widespread narcotics distribution ring that supplied the vast majority of the meth and heroin on the streets in El Centro, Brawley and Calipatria,” said Joe Garcia, interim special agent in charge for ICE HSI in San Diego. “While the impact on public safety in these communities will be far-reaching for the law abiding residents, our united force sends a bold message that criminals involved in smuggling drugs and weapons and gang activity should fear.”
The investigation involved federal wiretaps and extensive surveillance. Numerous defendants are documented members or associates of gangs, including individuals with ties to the North Side Centro, East Side Centro, and West Side Centro street gangs in El Centro, California; the Broleno street gang operating in Brawley, California; and the Calipas street gang operating in Calipatria, California.
The indictments and search warrants describe a conspiracy among a number of family members – parents, siblings, cousins, married couples - who formed the Lozano-Gonzalez drug trafficking organization. The organization allegedly imported methamphetamine and heroin from Mexicali and smuggled it through the Calexico ports of entry via pedestrian couriers and cars, into Imperial County.
Imperial Valley street gang members and those associated with the street gangs acted as a distribution network for the methamphetamine and heroin supply. Several documented gang members and associates are charged in the indictments.
Methamphetamine is a scourge in just about every community in this country, and Imperial County is no exception.
The U.S. Attorney’s office in the Southern District of California has seen a startling increase in the number of methamphetamine cases in the last five years in Imperial County – from 88 in FY 2010 to 134 cases in FY 2014. That’s 52 PERCENT more meth cases.
Today, methamphetamine-related prosecutions make up 70 percent of all federal drug prosecutions in the Imperial Valley. Just a few years ago, in 2010, methamphetamine was just 18 percent of our drug cases.
According to the Imperial County Coroner, the number of deaths due to methamphetamine has remained steady over the last several years in the county, averaging about 8 a year, except for a big spike last year, when there were 18 deaths attributed to methamphetamine use.
“We’ve really got a tremendous public health crisis on our hands,” U.S. Attorney Duffy said. “Meth destroys lives, families and communities. We are absolutely committed to making our neighborhoods safe from violent gang activity, drug trafficking and the devastating impact of methamphetamine and other dangerous drugs.”
Duffy said her office is engaged in ongoing communications with Mexican counterparts, both here and in Mexico City, on jointly attacking this issue. “We are evaluating the problem and working to come up with strategies.”
U.S. Attorney Duffy praised the law enforcement agencies of the Immigration and Customs Enforcement, Homeland Security Investigations; the Imperial County District Attorney’s Office; the El Centro Police Department; and more than a dozen other agencies that assisted with this huge takedown, believed to be the largest in Imperial County to date.
This investigation was conducted under the federal Organized Crime Drug Enforcement Task Force (OCDETF) program. The OCDETF program was created to consolidate and utilize all law enforcement resources in this country’s battle against major drug trafficking.
United States Attorney, Laura Duffy appearing at the press conference.
DEFENDANTS Case Number: 14-CR-3007 Francisco Lozano-Moreno, Jr. Daniel Becerra-Jimenez Ismael Lucio Guadalupe Avila-Parra Jose Alberto Jose Aquiles Gomez-Zayas Jesus Gonzalez-Lozano Rodrigo Gonzalez-Lozano Mike Angel Saiza, Jr. Armando Mayorga Ramon Munoz Joe Angel Franco Abel Hernandez Ambriz Raul Rodriguez Julissa Janeth Leal-Hernandez Alexis Pinedo Ambriz Juan Carlos Lozano Carolina Orozco-Vasquez Isabel Sanchez Breanne Nicole Williams Cindy Marie Mendivel Gerald Anthony Phillips Jason Jerry Gonzalez CHARGESConspiracy to Import Methamphetamine in violation of Title 21, U.S.C. Secs. 952, 960 and 963; Conspiracy to Distribute Methamphetamine in violation of Title 21, U.S.C., Secs. 841(a)(1) and 846; Possession of Methamphetamine with Intent to Distribute in violation of Title 21, U.S.C., Sec. 841(a)(1); (Not all counts apply to all defendants)
Maximum Penalties: Life in prison with a mandatory minimum sentence of 10 years and a $10 million dollar fine.
DEFENDANTS Case Number: 14-CR-3008 Raphael Villasenor Cesar Adrian Gomez Eriberto Gonzalez-Ruiz Luis Fernando Calderon Nava Orlando Quintero Monique Vania Camargo Shandra Decoye Camargo *Fugitives CHARGESConspiracy to Distribute Heroin in violation of Title 21, U.S.C. Secs. 841(a)(1) and 846; Conspiracy to Distribute Methamphetamine in violation of Title 21, U.S.C., Secs. 841(a)(1) and 846; Possession of Heroin with Intent to Distribute in violation of Title 21, U.S.C., Sec. 841(a)(1); Possession of Methamphetamine with Intent to Distribute in violation of Title 21, U.S.C., Sec. 841(a)(1); (Not all counts apply to all defendants)
INVESTIGATING AGENCY
Maximum Penalties: Life in prison with a mandatory minimum sentence of 10 years and a 10 million dollar fine.El Centro Police Department
Immigration and Customs Enforcement, Homeland Security Investigations
Imperial County District Attorney’s Office
Imperial County Sheriff’s Office
U.S. Customs and Border Protection, Field Operations
U.S. Border Patrol
Brawley Police Department
Calipatria Police Department
Calexico Police Department
Imperial County Narcotics Task Force
Drug Enforcement Agency
Bureau of Alcohol, Tobacco, Firearms and Explosives
Bureau of Land Management
California Highway Patrol
U.S. Marshals Service*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.
Ocala Man Pleads Guilty to Theft of Military EquipmentRead the Press Release
Ocala, Florida – United States Attorney A. Lee Bentley, III announces that Pedro Luis Infantes (47, Ocala) today pleaded guilty to theft of government property. He faces a maximum penalty of 10 years in federal prison. A sentencing date has not yet been set.
According to the plea agreement, on July 11, 2014, Infantes and his son unwittingly met with a confidential source, who was working in cooperation with law enforcement. Infantes believed that the source had connections to potential buyers who were affiliated with Mexican drug trafficking organizations. Ultimately, he negotiated a sale price of $153,500 for 17 military-grade thermal-imaging monoculars, rifle cleaning kits, and other assorted military equipment that had been stolen from the government.
When arrested and interviewed by the FBI, Infantes provided false statements to agents about how he had acquired the military items and how the serial numbers on the items had been removed. He stated that he had purchased the equipment in that condition at assorted gun shows. In fact, his son, Luis Rafael Infantes (21, Ocala), an active-duty supply sergeant in Fort Knox, Kentucky, had stolen the items from the United States Army. Luis Rafael Infantes was also charged for his role in this case, and is scheduled for trial next month.
This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Robert E. Bodnar, Jr.
Newark Man Sentenced to 50 Months in Prison for Multiple Armed Robberies of New Jersey EstablishmentsRead the Press Release
NEWARK, N.J. – A Newark man was sentenced today to 50 months in prison for committing two armed robberies of commercial establishments in Essex County, New Jersey, U.S. Attorney Paul J. Fishman announced.
Antwon Yarbrough, 28, previously pleaded guilty before U.S. District Judge William H. Walls to an information charging him with one count of conspiring to commit Hobbs Act robberies. Judge Walls also imposed the sentence today in Newark federal court.
According documents filed in this case and statements made in court:
Between April 2013 and May 2013, Yarbrough conspired with others to rob a Krauszers store in West Orange on April 24, 2013, and a Subway restaurant in Verona on May 20, 2013. Yarbrough and his conspirators robbed these establishments at gunpoint. In each robbery, they used plastic zip ties to restrain their victims. The conspirators then stole cash, cigarettes and other items.
In the Krauszers robbery on April 24, 2013, Yarbrough and another robber entered the store wearing dark hoodies, face masks, and gloves. Yarbrough secured the door from the inside using a zip tie, while the other robber pointed a firearm at an employee and forced the employee to the floor. The robber restrained the employee with zip ties and struck the employee in the head with the gun. Yarbrough restrained the hands and feet of two other victims, one of whom he struck in the head with his forearm. Yarbrough and another robber then emptied the cash register of several hundred dollars, stole several cartons of cigarettes, and fled.
In the Subway robbery on May 20, 2013, Yarbrough and two other robbers again entered the restaurant wearing dark hoodies, face masks, and gloves. Both robbers accompanying Yarbrough brandished firearms. After entering the restaurant, the robbers restrained an employee by tying the employee’s hands and feet with zip ties. The robbers then emptied the cash register of several hundred dollars and fled.
Two others involved with these and other robberies – Bobby Dawson, 31, and Jamar Darby, 27, both of Newark – were each sentenced to serve 225 months in prison in July and October 2014, respectively.
In addition to the prison term, Judge Walls sentenced Yarbrough to serve three years of supervised release.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, with the investigation. He also thanked the Belleville, Bloomfield, Kearny, Linden, Maplewood, Newark, Paramus, Verona and West Orange police departments, along with the New Jersey State Police and the Essex County Prosecutor’s Office, for their work on this case.
The government is represented by Assistant U.S. Attorneys Jamari Buxton and Rahul Agarwal of the U.S. Attorney’s Office Criminal Division in Newark.
14-381
Defense counsel: Stacy Biancamano Esq., West Orange
New York Man Sentenced to 42 Months Imprisonment in Fraud and Identity Theft CaseRead the Press Release
WILMINGTON, Del. – Charles M. Oberly, III, United States Attorney for the District of Delaware, announced today that Tyron Burgess, age 36, of Manhattan, was sentenced today by United States District Court Judge Gregory M. Sleet to 42 months of imprisonment and 3 years of supervised release. Mr. Burgess was also ordered to pay restitution in the amount of $129,985.02 to five different financial institutions.
The sentencing came after Mr. Burgess pleaded guilty on March 25, 2014 to one count of conspiracy to commit mail fraud, in violation of 18 U.S.C. § 1349, one count of wire fraud, in violation of 18 U.S.C. § 1343, one count of bank fraud, in violation of 18 U.S.C. § 1344, and one count of aggravated identity theft, in violation of 18 U.S.C. § 1028A. The aggravated identity theft charge carried a mandatory 24 month term of incarceration.
Between July and November 2011, Mr. Burgess engaged in multiple fraud and identity theft schemes in and around the Dover, Delaware area. Using stolen personal identification information, Mr. Burgess secured financing for the purchase of an ATV and a Corvette. Mr. Burgess also obtained at least a dozen credit cards, in the names of others, from two separate financial institutions and purchased luxury clothing items and electronics with those cards. Mr. Burgess also obtained fraudulent bank loans from another financial institution.
U.S. Attorney Oberly stated, “I am pleased with the sentence Mr. Burgess received. Identity theft is a serious crime that has a very real impact on its victims and society. Those contemplating similar crimes should be reminded of the likely consequences of their actions. This office remains committed to prosecuting these offenses.”
“Whether the schemes involve identity theft or identity fraud, Postal Inspectors will continue to work with our law enforcement partners and the financial institutions to protect consumers, said David Bosch, Inspector-In-Charge of the Philadelphia Division of the US Postal Inspection Service”
The case was investigated by the United States Postal Inspection Service and the Social Security Administration Office of the Inspector General, with the assistance of the United States Secret Service. The case was prosecuted by Assistant United States Attorney Lesley Wolf. U.S. Attorney Oberly thanked the investigators for their hard work in pursuing this investigation.
New Orleans Man, James Conrad, Jr., Charged with Stealing from Two Federal AgenciesRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JAMES CONRAD, JR., age 49, a resident of New Orleans, was charged yesterday in a bill of information with theft of government funds.
According to the bill of information, from 1998 to 2013, CONRAD stole a total of $247,800 from the Social Security Administration and the Office of Personnel Management. If convicted, CONRAD faces up to ten years’ incarceration and a fine of up to twice the theft amount.
U.S. Attorney Polite reiterated that a bill of information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the Social Security Administration - Office of Inspector General and the Office of Personnel Management - Office of Inspector General in investigating this matter. Assistant U.S. Attorney Chandra Menon is in charge of this prosecution.
(Download Bill of Information )
National Security Division Announces New Senior Leadership Hires and Restructuring of Counterespionage EffortsRead the Press Release
Moves Allow NSD to Continue Focus on Today’s Threats while Positioning for Tomorrow’s Challenges
John P. Carlin, the Assistant Attorney General for National Security, announced strategic changes within the Justice Department’s National Security Division (NSD) designed to put additional focus on the protection of national assets from the threat of state-sponsored economic espionage and proliferation, including through cyberspace. The announcement included new appointments within the NSD’s senior leadership, the creation of a new Deputy Assistant Attorney General Position focusing on protecting national assets and the re-designation of the Anti-Terrorism and Advisory Council (ATAC) Coordinator program as the National Security Coordinator/ATAC program, to better reflect its ongoing work on the full range of national security threats, and to empower United States Attorneys as they conduct outreach on these issues nationwide.
“The threat landscape we face is ever-changing and evolving, and while our top priority will always be combatting terrorism, we must also sharpen our focus and increase our attention on the emerging threats of economic espionage and proliferation,” said Assistant Attorney General Carlin. “We have assembled a talented, dedicated and experienced team of seasoned professionals to launch this new phase for the National Security Division. These changes will help us continue confronting today’s threats while readying the NSD workforce to engage what we see as the key emerging threats to our national security.”
The changes announced included the appointment of a new Principal Deputy Assistant Attorney General and a new Chief of Staff and Counselor, as well as the creation of a new Deputy Assistant Attorney General position to oversee NSD’s efforts to protect national assets, including its efforts to combat economic espionage, proliferation, and cyber-based national security threats, and its work on the Committee on Foreign Investment in the United States. This position will oversee the work of the National Security Cyber Specialists (NSCS) Network, consisting of prosecutors in each of the U.S. Attorney’s Offices who focus on cyber threats to the national security.
The new NSD leadership team members include Mary B. McCord to serve as the Principal Deputy Assistant Attorney General; Anita M. Singh as Chief of Staff and Counselor; and Luke Dembosky as the newest Deputy Assistant Attorney General.
Mary B. McCord, Principal Deputy Assistant Attorney General: McCord joined NSD from the U.S. Attorney’s Office for the District of Columbia, where she served for nearly 20 years, most recently as the Criminal Division Chief. In that capacity, McCord supervised the prosecution of all criminal matters in federal district court, and is highly regarded for her expertise in this area. McCord also served for more than five years as a Deputy Chief in the Appellate Division, where she supervised and argued hundreds of cases in the U.S. and District of Columbia Courts of Appeals. McCord graduated from Georgetown University Law School, and clerked for Judge Thomas Hogan of the U.S. District Court for the District of Columbia.
Anita M. Singh, Chief of Staff and Counselor: Singh was appointed Chief of Staff and Counselor after serving as the NSD Acting Chief of Staff for nearly a year and a half. Singh joined NSD as Deputy Chief of Staff in 2011 after serving as Director for Intelligence Programs and Reform at the White House on the National Security Council staff, where she focused on cyber-related issues. As NSD’s Chief of Staff, Singh focuses on strategic management issues, including the design of structural changes to support work in emerging threat areas. Singh began her legal career through the DOJ’s Honors Program, serving in the Criminal Division’s Computer Crime and Intellectual Property Section, and later as a Counsel, focused on cybersecurity, to several Assistant Attorneys General. Prior to entering government service, Singh was a management strategy consultant with the Boston Consulting Group. She graduated with her J.D. and A.M. from the University of Pennsylvania Law School.
Luke Dembosky, Deputy Assistant Attorney General: Dembosky joins NSD from DOJ’s Computer Crime and Intellectual Property Section where he served as Deputy Chief for Litigation. Dembosky previously served as the DOJ representative at the U.S. Embassy in Moscow, Russia, where he represented DOJ to Russia on matters of transnational crime, including cybercrime and IP crimes, and worked with Russian law enforcement and other government officials to build cooperation between the two countries. Prior to working in Moscow, Dembosky was based in Pittsburgh as a member of DOJ’s Computer Hacking and Intellectual Property (CHIP) network of federal prosecutors. He has been involved in some of the largest and most groundbreaking cybercrime prosecutions and disruptions in U.S. history, including the recent GameOver Zeus botnet disruption, coordination of the Silk Road takedown, and U.S. v. Max Ray Butler. Prior to entering government service, Dembosky worked in civil practice at a Philadelphia law firm. He graduated from the University of Pittsburgh School of Law and clerked for Judge Richard L. Nygaard of the U.S. Court of Appeals for the Third Circuit. Dembosky will manage NSD’s newly created portfolio covering protection of national assets, including efforts to combat economic espionage, proliferation, and cyber-based national security threats, and its work on the Committee on Foreign Investment in the United States. He will also oversee NSD’s Office for Justice for Victims of Overseas Terrorism.
Re-designation: The Anti-Terrorism and Advisory Council (ATAC) Coordinator program will be re-designated as the National Security Coordinator/ATAC program, to better reflect its ongoing work on the full range of national security threats, including combating economic espionage and counterproliferation.
Miami-Area Physician Assistant Sentenced to 15 Years in Prison for $200 Million Medicare Fraud SchemeRead the Press Release
A Miami licensed physician assistant was sentenced today to serve 15 years in prison for participating in a Medicare fraud scheme involving approximately $200 million in fraudulent billings by American Therapeutic Corporation (ATC), a mental health company that was headquartered in Miami.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office and Special Agent in Charge Derrick Jackson of the Health and Human Services Office of Inspector General’s (HHS-OIG) Florida region made the announcement.
Roger Bergman, 65, of Miami, was sentenced by U.S. District Judge Jose E. Martinez in the Southern District of Florida. In addition to the prison sentence, Bergman was ordered to pay more than $85.3 million in restitution, both jointly and severally with his co-conspirators.
After a six-day trial, on July 18, 2014, a federal jury in the Southern District of Florida found Bergman guilty of one count of conspiracy to commit health care fraud and wire fraud, and one count of conspiracy to make false statements relating to health care matters.
Evidence at trial demonstrated that Bergman and his co-conspirators submitted false and fraudulent claims to Medicare through ATC, which operated purported partial hospitalization programs (PHPs) in seven different locations throughout South Florida and Orlando. A PHP is a form of intensive treatment for severe mental illness.
Evidence at trial also demonstrated that Bergman and other medical professionals at ATC fabricated and signed fraudulent medical documentation and patient files in order to justify ATC’s fraudulent billings to Medicare. Included in these false submissions to Medicare were claims for patients who were ineligible for PHP treatment because they were in neuro-vegetative states, in the late stages of diseases causing permanent cognitive memory loss, or had substance abuse issues and were living in halfway houses. Many of these patients were forced by assisted living facility owners and halfway house owners to attend ATC, and they did not receive treatment for their actual medical conditions.
ATC, an associated management company, and more than 20 individuals, including ATC’s owners, have all previously pleaded guilty or been convicted at trial. Bergman has been in federal custody since his conviction.
The case is being investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. The case is being prosecuted by Assistant Chief Robert A. Zink and Trial Attorneys Nicholas E. Surmacz and Kelly Graves 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 1,900 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Team (HEAT), go to: www.stopmedicarefraud.gov.
Miami-Area Physician Assistant Sentenced to 15 Years in Prison for $200 Million Medicare Fraud SchemeRead the Press Release
A Miami licensed physician assistant was sentenced today to serve 15 years in prison for participating in a Medicare fraud scheme involving approximately $200 million in fraudulent billings by American Therapeutic Corporation (ATC), a mental health company that was headquartered in Miami.
U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office and Special Agent in Charge Derrick Jackson of the Health and Human Services Office of Inspector General’s (HHS-OIG) Florida region made the announcement.
Robert Bergman, 65, of Miami, was sentenced by U.S. District Judge Jose E. Martinez in the Southern District of Florida. In addition to the prison sentence, Bergman was ordered to pay more than $85.3 million in restitution, both jointly and severally with his co-conspirators.
After a six-day trial, on July 18, 2014, a federal jury in the Southern District of Florida found Bergman guilty of one count of conspiracy to commit health care fraud and wire fraud, and one count of conspiracy to make false statements relating to health care matters.
Evidence at trial demonstrated that Bergman and his co-conspirators submitted false and fraudulent claims to Medicare through ATC, which operated purported partial hospitalization programs (PHPs) in seven different locations throughout South Florida and Orlando. A PHP is a form of intensive treatment for severe mental illness.
Evidence at trial also demonstrated that Bergman and other medical professionals at ATC fabricated and signed fraudulent medical documentation and patient files in order to justify ATC’s fraudulent billings to Medicare. Included in these false submissions to Medicare were claims for patients who were ineligible for PHP treatment because they were in neuro-vegetative states, in the late stages of diseases causing permanent cognitive memory loss, or had substance abuse issues and were living in halfway houses. Many of these patients were forced by assisted living facility owners and halfway house owners to attend ATC, and they did not receive treatment for their actual medical conditions.
ATC, an associated management company, and more than 20 individuals, including ATC’s owners, have all previously pleaded guilty or been convicted at trial. Bergman has been in federal custody since his conviction.
The case is being investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. The case is being prosecuted by Assistant Chief Robert A. Zink and Trial Attorneys Nicholas E. Surmacz and Kelly Graves 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 1,900 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Team (HEAT), go to: www.stopmedicarefraud.gov .
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Medford Felon Sentenced to 10 Years Federal Prison for Possessing FirearmRead the Press Release
MEDFORD, OREGON— On Monday, October 20, 2014, Senior U.S. District Judge Owen M. Panner sentenced Dennis William Lee, 45, of Medford, Oregon, to 10 years in federal prison for being a felon in possession of a firearm. Lee will be on three years of supervised release after he completes his prison term. Lee’s 10-year sentence is the maximum allowed under federal law.
On November 12, 2013, the Medford Area Drug and Gang Enforcement team (MADGE) served a search warrant at defendant’s residence after developing probable cause through surveillance and controlled heroin purchases from Lee. Lee was standing outside when police approached and he grabbed a female standing next to him, shoved her at the police, and turned to flee, only to encounter two MADGE detectives approaching from behind. Lee threw a cup of alcoholic beverage into one detective’s face and then collided into him. Officers wrestled Lee to the ground, where he continued fighting until he was tased and taken into custody.
Officers found a loaded 9mm handgun in Lee’s pocket and $2,616 cash. Detectives searched Lee’s trailer and found digital scales, a half-pound marijuana, $6,975 cash, and assorted drug packaging materials that smelled of heroin, and a small amount of methamphetamine.
Lee recently moved to Medford from Sacramento, California. His criminal history shows 40 arrests, with felony convictions for obstruct/resisting executive officer in 2007 (16 months prison), possession of heroin for sale in 2005 (four years prison), possession of methamphetamine for sale in 1997 (five years prison), sale of rock cocaine in 1990 (three years prison), possession of a controlled substance in 1993 (three years prison), and receiving stolen property in 2010 (16 months prison). In addition, Lee has misdemeanor convictions for assault with a weapon, resisting arrest, possession of burglary tools and reckless driving.
This case was investigated jointly by the Medford Area Drug and Gang Enforcement Team and the Bureau of Alcohol, Tobacco, and Firearms, and was prosecuted by Assistant U.S. Attorney Douglas W. Fong.
Manhattan U.S. Attorney Announces Charges Against Two Individuals for Participating in Large-Scale Stolen Identity Refund Fraud Tax Scheme Involving in Excess of 40,000 Stolen IdentitiesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Shantelle P. Kitchen, the Acting Special Agent-in-Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigation Division (“IRS-CI”), today announced charges against two individuals for participating in a large-scale tax refund scheme that used tens of thousands of stolen identities to file fraudulent returns to obtain fraudulent tax refund checks. GERARDO ENMANUEL LUNA MARMOLEJOS, a/k/a “Jorge Rodriguez Burgos,” and YOHAURIS RODRIGUEZ HERNANDEZ, a/k/a “Joana Esquilin,” a/k/a “Joana Esquilin Ramirez,” a/k/a “Carla Nunos,” citizens of the Dominican Republic, are charged in a tax fraud scheme involving in excess of 40,000 stolen identities and millions of dollars in fraudulent returns. LUNA MARMOLEJOS and RODRIGUEZ HERNANDEZ were charged in a superseding indictment today and will appear in Manhattan federal court before U.S. District Judge Naomi Reice Buchwald at 3:30 p.m.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, Luna Marmolejos and Rodriguez Hernandez conspired to steal tens of thousands of identities in order to file fraudulent tax returns and collect millions of dollars in fraudulent refunds. Tax fraud amounts to theft from the general treasury; and in effect, these defendants allegedly conspired to steal money that belongs to the public. I commend IRS-CI and our other law enforcement partners on this case.”
IRS-CI Acting Special Agent-in-Charge Shantelle P. Kitchen said: “One of the ways the Internal Revenue Service is addressing the identity theft problem is through the vigorous investigation of stolen identity tax refund fraud schemes. These investigations send a clear message about the consequences of filing tax refunds using stolen information, as those involved expose themselves to criminal prosecution and sentences of imprisonment.”
According to the Superseding Indictment filed today in Manhattan federal court:
From at least December 2011 through September 29, 2014, LUNA MARMOLEJOS and RODRIGUEZ HERNANDEZ conspired and engaged in a scheme to steal the names, dates of birth, and Social Security Numbers of individuals, which the defendants then used to file fraudulent income tax returns that claimed tax refunds to which the defendants were not entitled.
LUNA MARMOLEJOS, 23, and RODRIGUEZ HERNANDEZ, 33, both citizens of the Dominican Republic and residing in New Jersey at the time of their arrest, are each charged with one count of conspiracy to steal government funds, which carries a maximum sentence of 5 years in prison, one count of conspiracy to file false claims, which carries a maximum sentence of 10 years in prison, one count of conspiracy to engage in wire fraud, which carries a maximum sentence of 20 years in prison, and one count of aggravated identity theft in connection with the tax fraud scheme, which carries a mandatory sentence of 2 years in prison, to be served consecutively to any other sentence imposed. In addition, LUNA MARMOLEJOS is charged with one count of bail jumping, which carries a maximum sentence of 5 years in prison, to be served consecutively to any other sentence, and one count of visa fraud, which carries a maximum sentence of 10 years in prison. RODRIGUEZ is also charged with one count of visa fraud, which carries a maximum sentence of 10 years in prison, and one count of passport fraud, which carries a maximum sentence of 10 years in prison. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants would be determined by the Court.
Mr. Bharara praised the outstanding investigative work of IRS-CI, the United States Postal Inspection Service, Immigration and Customs Enforcement’s Homeland Security Investigations, the United States Marshals Service, and the U.S. Department of State’s Diplomatic Security Service.
This case is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorney Carolina A. Fornos is in charge of the prosecutions.
The charges and allegations contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
U.S. v. Gerardo Enmanuel Luna Marmolejos & Yohauris Rodriguez Hernandez S1 Indictment
Manhattan U.S. Attorney and EPA Announce Settlement of Superfund Claims Against Getty Relating to Newtown Creek Superfund Site in Brooklyn and QueensRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Judith A. Enck, Regional Administrator for the U.S. Environmental Protection Agency (“EPA”), announced today that the United States has entered into a settlement agreement with a bankruptcy trust on behalf of GETTY PETROLEUM MARKETING INC. (“GPMI”) and GETTY TERMINALS CORP. (“GETTY TERMINALS”) (collectively, “GETTY”), which filed for bankruptcy on December 5, 2011. The settlement resolves Getty’s liabilities at Newtown Creek, a Superfund Site in Brooklyn and Queens, New York, and one of the nation’s most polluted waterways. Pursuant to the settlement agreement, which addresses Getty’s liability under the Comprehensive Environmental Response, Compensation and Liability Act (also known as the Superfund law) and the federal Oil Pollution Act, Getty agrees that the United States will receive an allowed $16 million claim in the bankruptcy process.
U.S. Attorney Preet Bharara said: “For more than a century, irresponsible industrial activities turned Newtown Creek into a tributary of toxic waste. Today’s settlement ensures that Getty takes responsibility for its contribution to that sad legacy, and pays a fair share of clean-up costs at the site. This Office is committed to holding those who contaminate our nation’s lands and waterways accountable for their actions, and bankruptcy is not a free pass for polluters.”
EPA Regional Administrator Judith Enck said: “The Superfund program operates on the principle that polluters should pay for the cleanups, rather than passing the costs to taxpayers. Getty’s decades of irresponsibility and indifference to the environment could pose significant environmental risks to Newtown Creek communities and must be addressed. EPA added Newtown Creek to its Superfund National Priorities List of the country’s most hazardous waste sites in September 2010 because its water and sediment contain a range of contaminants including pesticides, heavy metals, polychlorinated biphenyls (PCBs) and volatile organic compounds. EPA is dedicated to cleaning up this area and will hold all responsible parties accountable.”
In its proof of claim, the United States asserted claims against Getty on behalf of the EPA for clean-up costs at the Newtown Creek Superfund Site and on behalf of the U.S. Department of the Interior (“DOI”) and the National Oceanic and Atmospheric Administration (“NOAA”) of the U.S. Department of Commerce for injuries to natural resources at the site. The proof of claim alleged, among other things, that Getty Terminals operated a facility adjacent to Newtown Creek that stored, blended, and distributed gasoline, fuel oil, and gasoline blending additives, and that Getty Terminals utilized underground and aboveground tanks at the facility for the storage of gasoline, diesel, and fuel oil. As alleged in the proof of claim, during the course of operations of the facility, Getty Terminals discharged contaminants from the facility to Newtown Creek, including effluent with lead concentrations and other hazardous substances.
In the settlement agreement filed in bankruptcy court today, the bankruptcy trustee acknowledges Getty’s admission that GPMI was formed to run the marketing and sales business of the former Getty Petroleum Corporation, including the Newtown Creek facility, and that GPMI leased the facility. The bankruptcy trustee also acknowledges Getty’s admission that Getty Terminals operated the facility and exercised actual control or held significant authority to control activities at the facility. Further, the trustee acknowledges in the settlement agreement that Getty has admitted that a spill occurred at the facility in October 2005.
Under the settlement agreement, the United States will receive an allowed general unsecured claim in the amount of $14,844,800 for EPA in settlement of the United States’ claim for the costs of clean-up at the Newtown Creek Superfund Site, and an additional allowed general unsecured claim in the amount of $1,155,200 for claims by DOI and NOAA relating to natural resource damages and costs of assessment at the Newtown Creek Superfund Site. The allowed claims will be paid in an amount to be determined through the bankruptcy process.
The settlement agreement will be lodged with the Bankruptcy Court for a period of at least 30 days before it is submitted for the Court’s approval, to provide public notice and to afford members of the public the opportunity to comment on the consent decree.
Mr. Bharara praised the efforts of EPA, DOI, and NOAA in this case.
This case is being handled by the Office’s Environmental Protection Unit and Tax and Bankruptcy Unit. Assistant United States Attorney Joseph N. Cordaro is in charge of the case.
In Re Getty Notice of Lodging
Louisville Man Sentenced to 15 Years in Prison for Producing Child PornographyRead the Press Release
LOUISVILLE, Ky. – Senior United States District Court Judge Charles R. Simpson III, sentenced Craig Ian Elliott, age 47, to 15 years in prison followed by 20 years of Supervised Release for violating federal child pornography laws, namely, the production of child pornography, announced David J. Hale, United States Attorney for the Western District of Kentucky.
According to a written Plea Agreement previously filed in open court, on April 2, 2010, the defendant was living at a residence on Algonquin Parkway in Jefferson County, Kentucky, with his girlfriend. On that date, his girlfriend was at work, but her 17-year-old daughter was at home with Elliott after she finished school for the day. Elliott used his girlfriend’s cell phone - a Boostmobile Sanyo Mirro Model SCP 3810 - to take sexually explicit photos of the girl. The cell phone was manufactured outside the Commonwealth of Kentucky. The metadata from the images showed that the pictures were taken at approximately 4:08 P.M.
After Elliott took the photos of the girl, he used the cell phone to transmit the images, via the Internet, to his Yahoo! account. There is no evidence that he distributed the images to anyone else.
Assistant United States Attorney Jo E. Lawless prosecuted the case. The Louisville Metro Police Department’s Crimes Against Children Unit, in conjunction with the Federal Bureau of Investigation, conducted the investigation as part of Kentucky’s Internet Crimes Against Children Task Force.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Lewiston Man Sentenced to 18 Years for Being a Felon in Possession of AmmunitionRead the Press Release
Contact: Darcie N. McElwee
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Jerome
Hudson, 44, of Lewiston, Maine, and formerly of Danvers, Massachusetts, was sentenced yesterday in U.S. District Court by Judge Jon D. Levy to 18 years in prison and five years of supervised release for being a felon in possession of ammunition. Hudson pleaded guilty to the charge on June 11, 2014.Court records and evidence presented at the sentencing hearing reveal that on January 13, 2014, Hudson was living in a Lewiston townhouse apartment with his girlfriend and her young children. Shortly before 8:00a.m., he got into an argument with the father of those children when the father arrived to help them get on the school bus, as he did daily. Hudson retrieved a 9 mm handgun from the apartment, ran outside, chased and fired multiple shots at the father as nearby school children began filing outside to catch their bus. Hudson then fled the scene on foot.
A search of Hudson’s bedroom revealed a safe containing 38 rounds of ammunition, some of which matched that used to shoot at the father. Hudson hid from the police for several hours in a neighbor’s townhouse. He was captured three hours after the shooting. He refused to tell investigators where the handgun was hidden and it remains unrecovered.
As a result of prior convictions for drug trafficking offenses and violent felonies in
Massachusetts between 1997 and 2005, Hudson was subject to an enhanced sentence as an
Armed Career Criminal requiring a mandatory minimum of 15 years in prison.Judge Levy said that his main focus in imposing the lengthy sentence was the need to protect the public from further crimes by Hudson.
The investigation was conducted by the Lewiston Police Department, the Central Maine
Violent Crime Task Force and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives.Lewis County Man Sentenced for Painkiller DistributionRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Tara Tighe, Public Affairs SpecialistCLARKSBURG, WEST VIRGINIA – Shane Brantley, 38, of Lewis County, West Virginia, was sentenced for his role in distributing prescription painkillers through the office of Dr. Edita Milan, United States Attorney William J. Ihlenfeld, II, announced today.
Brantley, who is currently serving a 51 month sentence for unlawful possession of a firearm, was sentenced to an additional 8 months in prison.
Brantley pled guilty in June 201 4 to one count of “Conspiracy to use the DEA Registration Number of Another Person” after a Greater Harrison County Drug Task Force investigation revealed that he used Dr. Milan’s DEA registration number to obtain oxycodone, hydrocodone, and alprazolam. The investigation began with citizen complaints surrounding prescription writing practices in Dr. Milan’s Bridgeport, West Virginia office. Milan is scheduled for trial on November 5, 2014.
Assistant U.S. Attorney John Parr prosecuted the case on behalf of the government.
U.S. District Judge Irene M. Keeley presided
Las Vegas Man Sentenced to Prison for Conspiring to Submit False Federal Income Tax ReturnsRead the Press Release
A Las Vegas man was sentenced to serve 15 months in prison to be followed by three years of supervised release and ordered to pay $192,632 in restitution to the Internal Revenue Service (IRS), announced Acting Deputy Assistant Attorney General Larry J. Wszalek for the Justice Department’s Tax Division and U.S. Attorney Daniel G. Bogden for the District of Nevada.
Damon Boswell pleaded guilty to conspiracy to submit false claims for federal income tax refunds on May 29. He was sentenced yesterday by U.S. District Court Judge Jennifer A. Dorsey.
According to the plea agreement, between April 2009 and May 2009, Boswell, along with others, conspired to defraud the United States by assisting in the filing of federal tax returns falsely claiming refunds based on the First-Time Home Buyers Credit.
Boswell obtained personal identifying information from individuals by falsely telling them that if they had not filed their 2008 federal income tax returns and did not owe back taxes, they were entitled to receive “Obama Stimulus” money. The personal information, including names, dates of birth and social security numbers, was then used to file federal income tax returns claiming refunds to which the individuals were not entitled. The individuals did not authorize Boswell or anyone else to file or cause the filing of tax returns in their names. Boswell’s co-conspirator, Cheryl Ramos, pleaded guilty on Jan. 24 and has been sentenced.
The case was investigated by IRS-Criminal Investigation and prosecuted by Assistant U.S. Attorney Christina Brown and Trial Attorney Sonia M. Owens of the Tax Division.