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20 October 2014
Two Sentenced on Theft, Fraud ChargesRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Tara Tighe, Public Affairs SpecialistMARTINSBURG, WEST VIRGINIA – Two Martinsburg area women were sentenced in federal court on theft and fraud charges, United States Attorney William J. Ihlenfeld, II, announced today.
Brenda Carmody, 49, of Bunker Hill, West Virginia, was sentenced to three years of probation and a $500.00 fine after she stole more than $2,000.00 while employed at the Rippon, WV Post Office. Carmody pled guilty to one count of “Misappropriation of Postal Funds” in July 2014 after a United States Postal Inspection Service investigation revealed that she stole monies from a cash drawer and post office box rental fees totaling $2,031.91.
Martina Roberts, 41, of Martinsburg, was sentenced to two years of probation after she filed for personal bankruptcy and subsequently forged the bankruptcy trustee’s signature to authorize a line of credit to purchase a new car. Roberts pled guilty to one count of “Bankruptcy Fraud – Falsification of Documents” in July 2014.
Assistant U.S. Attorney David Perri prosecuted Carmody and Assistant U.S. Attorney Andrew Cogar prosecuted Roberts on behalf of the government.
U.S. District Judge Gina M. Groh presided.
Two Sentenced for Drug TraffickingRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Tara Tighe, Public Affairs SpecialistMARTINSBURG, WEST VIRGINIA – Two Martinsburg area men were sentenced in federal court on drug trafficking charges, United States Attorney William J. Ihlenfeld, II, announced today.
Delmar Hoza Curry, 33, of Martinsburg, West Virginia, was sentenced to 10 months in prison and six months of supervised release, for possession with intent to distribute crack cocaine. Curry pled guilty in July 2014 to one count of “Possession with Intent to Distribute Cocaine Base” following an investigation led by the Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative.
John Earl Mitchell, 29, of Harper’s Ferry, West Virginia, was sentenced to time served since June 2014 and five years of supervised release for his role in distributing crack cocaine and Methylone, an amphetamine, near Martinsburg, West Virginia. Mitchell pled guilty in July 2014 to one count of “Drug Conspiracy” after an investigation led by the Martinsburg Police Department.
Assistant U.S. Attorney Jarod Douglas prosecuted the cases on behalf of the government.
U.S. District Judge Gina M. Groh presided.
Two Sentenced for Conspiring to Grow MarijuanaRead the Press Release
ERIE, Pa. - A resident of Frewsburg, New York and a resident of Randolph, New York, have been sentenced in federal court to on their conviction of violating federal drug laws, United States Attorney David J. Hickton announced today.
United States District Judge David S. Cercone imposed a sentence of time served and a $2,000 fine on William Kamholtz, 59, of Frewsburg, New York and a sentence of 1 day in jail, 9 months home detention and a $3,000 fine on James Leach, 62, of Randolph, New York.
According to information presented to the court, Kamholtz and Leach conspired to manufacture and possessed with intent to distribute marijuana plants.
Assistant United States Attorney Marshall J. Piccinini prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the United States Forest Service Law Enforcement and Investigations, the McKean County Drug Task Force, the Southern Tier Drug Task Force, the Cattaraugus County Drug Task Force and the United States Drug Enforcement Administration for the investigation leading to the successful prosecution of Kamholtz and Leach.
Two Newark, N.J. Men Plead Guilty to Smuggling Marijuana and Cell Phones into Federal Detention FacilityRead the Press Release
TRENTON, N.J. – Two Newark men today admitted their involvement in a scheme to smuggle contraband, including marijuana and cell phones, into the Essex County Jail, a federal pretrial detention facility, U.S. Attorney Paul J. Fishman announced.
Darsell Davis, 29, pleaded guilty before U.S. District Judge Mary L. Cooper to an information charging him with one count of conspiring with others to commit extortion under color of official right. Dwayne Harper, 30, pleaded guilty before Judge Cooper to an information charging him with one count of conspiring to smuggle contraband into the Essex County Jail. Davis has been released on bail and Harper remains in custody.
According to the documents filed in this case and other cases and statements made in court:
On multiple occasions between September 2013 and May 2014, Stephon Solomon, 26, a corrections officer at the Essex County Jail, smuggled contraband – including cell phones, tobacco, and marijuana – to Quasim Nichols, 29, a federal pretrial detainee at the Essex County Jail, in exchange for cash bribes. Davis and Harper aided the smuggling scheme by collecting the contraband to be smuggled into the jail. After receiving contraband and cash bribes from Davis, Solomon smuggled the contraband to Nichols, who ultimately sold some of the marijuana and cell phones to other inmates. The inmates purchased the contraband by having friends and family send Western Union money transfers to Nichols, who then enlisted Davis and others to retrieve those payments for him. Davis obtained at least $4,300 in Western Union payments over the course of the conspiracy.
Charges against Nichols are still pending. The charges and allegations against Nichols are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Solomon pleaded guilty on Oct. 1, 2014, to one count of conspiring to commit extortion under color of official right and awaits sentencing on Jan. 21, 2015. He has been released on bail.
The charge of conspiring to commit extortion under color of official right, to which Davis pleaded guilty, carries a maximum potential penalty of 20 years in prison and a maximum fine of $250,000. Davis also will forfeit $4,300, consisting of his proceeds from the conspiracy. The charge of conspiring to provide contraband, including marijuana, to inmates at the Essex County Jail, to which Harper pleaded guilty, carries a maximum potential penalty of five years in prison and a maximum fine of $250,000.
Davis and Harper are set to be sentenced before Judge Cooper on Feb. 11, 2015, and Feb. 4, 2015, respectively.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, and investigators with the Internal Affairs Division of the Essex County Jail, under the leadership of Warden Roy Hendricks, with the investigation leading to today’s guilty pleas.
The government is represented by Assistant U.S. Attorneys Rahul Agarwal of the U.S. Attorney’s Office Special Prosecutions Division and Robert Frazer of the Criminal Division, Organized Crime/Gangs Unit, in Newark.
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Defense counsel: Davis: Maria Noto Esq., Matawan, N.J.
Dwayne Harper: Michael Pedicini Esq., Morristown, N.J.Davis, Darsell Information
Harper, Dwayne InformationTwo FCI Morgantown Inmates Convicted of Possessing ContrabandRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Tara Tighe, Public Affairs SpecialistCLARKSBURG, WEST VIRGINIA – Two inmates at the Federal Correctional Institute, Morgantown were convicted and sentenced in federal court for possession of prohibited objects, United States Attorney William J. Ihlenfeld, II, announced today.
James Robinson, 42, pled guilty today to one count of “Possession of a Prohibited Object” after he was discovered in possession of marijuana while incarcerated at FCI Morgantown. Robinson was sentenced to an additional four months in prison.
Dominick Jordan, 34, pled guilty today to one count of “Possession of a Prohibited Object” after he was discovered in possession of a cell phone while incarcerated at FCI Morgantown. Jordan was sentenced to an additional three months in prison.
Assistant U.S. Attorney Shawn Morgan prosecuted the cases on behalf of the government. Both cases were investigated by the Federal Bureau of Prisons and the Special Investigative Services Unit at FCI Morgantown.
U.S. Magistrate Judge John S. Kaull presided in the Jordan case. U.S. District Judge Irene M. Keeley presided in the Robinson case.
- Tomball Man Gets 30-Year Sentence for Producing/Distributing Child Pornography
Todd County, Kentucky, Man Guilty of Coercing Minors to Engage in Sexually Explicit Conduct and Receiving Child PornographyRead the Press Release
BOWLING GREEN, Ky. – A Todd County, Kentucky man pleaded guilty today, in U.S. District Court to charges of persuading, inducing and coercing two minor females to engage in sexually explicit conduct and with receiving child pornography announced David J. Hale, United States Attorney for the Western District of Kentucky.
Jesse Sanford Williams, age 34, pleaded guilty to all three counts of the indictment before U.S. Magistrate Judge H. Brent Brennenstuhl in Bowling Green. Williams was arrested on March 7, 2014, by federal agents in Kentucky, following an investigation that began in the state of Washington on March 28, 2013. In court, Williams admitted to blackmailing, by threat, at least two minor, teen girls, in order to receive sexually explicit images of them, by means of multiple Gmail and Yahoo internet accounts. The activities took place between June 2011 and March 2013. Victim-1 lived in Washington, and was 13 years of age at the onset of the Internet threats. Victim-2 lived in Todd County, and was approximately the same age. At all times, Williams concealed his age and identity from the victims. A subpoena of email accounts determined all email accounts shared the same Internet Protocol (IP) address from an account located at Logan Aluminum, a large manufacturing facility located near Russellville, Kentucky. The FBI was able to identify Williams from shift schedules, IP login times and other materials obtained in the investigation. Further, Williams admitted to knowingly receiving child pornography between June 2011 and March 2013.
If convicted at trial, Williams faced a combined sentence of at least 15 years, but no more than 80 years in prison, a fine of $750,000 and a term of supervised release including up to life. Williams is scheduled for sentencing before Senior Judge Thomas B. Russell on February 4, 2015, in Bowling Green.
This case is being prosecuted by Assistant United States Attorney Marisa Ford and is being investigated by the Federal Bureau of Investigation (FBI) Louisville and Seattle Divisions and police in Washington State.
Three Missouri Men Plead Guilty to Child PornRead the Press Release
Project Safe Childhood
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that three Missouri men pleaded guilty in federal court today, in separate and unrelated cases, to charges involving child pornography.
USA v. Allison
Larry Allison, 50, of Weaubleau, Mo., pleaded guilty before U.S. District Judge M. Douglas Harpool to using a minor to produce child pornography.
By pleading guilty, Allison admitted that he used a minor, identified in the federal indictment as “Jane Doe,” to produce child pornography in January 2014.
Under federal statutes, Allison is subject to a mandatory minimum sentence of 15 years in federal prison without parole, up to a sentence of 30 years in federal prison without parole, plus a fine up to $250,000 and an order of restitution to his victim. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the Springfield, Mo., Police Department, the Hickory County, Mo., Sheriff’s Department and the FBI.
USA v. Kern
Paul D. Kern, 22, of Republic, Mo., pleaded guilty before U.S. District Judge M. Douglas Harpool to possessing child pornography.
According to today’s plea agreement, Kern contacted the Republic, Mo., Police Department on Nov. 1, 2012, to report that he had just received a warning pop-up on his computer ostensibly generated by the FBI while he was visiting a Web site featuring child pornography. He brought his computer to the police station and investigators conducted a forensic preview of the computer that located several images of child pornography.
Kern’s computer contained 55 images and five videos of child pornography. Kern admitted that he had been viewing child pornography for over six months.
Under the terms of today’s plea agreement, the government will not seek a sentence greater than five years in federal prison without parole; Kern will not seek a sentence less than two years in federal prison without parole. Kern is also subject to a fine up to $250,000 and an order of restitution to his victims. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the Republic, Mo., Police Department.
USA v. May
Christopher May, 29, of Fair Grove, Mo., pleaded guilty before U.S. District Judge M. Douglas Harpool to receiving and distributing child pornography over the Internet between Nov. 29, 2012, and March 26, 2013.
Under federal statutes, May is subject to a mandatory sentence of five years in federal prison without parole, up to a sentence of 20 years in federal prison without parole, plus a fine up to $250,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the Nixa, Mo., Police Department, the Fair Grove, Mo., Police Department, and U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).
Project Safe Childhood
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."Thornton Woman Pleads Guilty and Aiding and Assisting in the Preparation of False Tax ReturnsRead the Press Release
DENVER – Geraldine Juanita Sotelo, age 64, of Thornton, Colorado, pled guilty last week before U.S. District Court Judge R. Brooke Jackson to aiding and assisting in the preparation of false tax returns, United States Attorney John Walsh and IRS Criminal Investigation Special Agent in Charge Stephen Boyd announced. Judge Jackson is scheduled to sentence Sotelo on January 26, 2015. Sotelo was indicted by a federal grand jury in Denver on January 28, 2014.
According to information contained in the plea and indictment, Sotelo began preparing and filing tax returns for clients around 1999 under the name J&G Bilingual Services in Thornton, Colorado. Sotelo was a co-owner and the manager of the business. J&G Bilingual Services typically followed a set procedure in preparing a tax return for a client. The client would come into J&G's office, met with one of Sotelo's employees, and provided information about his or her income and expenses. The J&G employee entered the information into a computer, and a software program generated a draft of the client's tax return. The draft then was reviewed by Sotelo.
For tax returns during the years 2007, 2008, and 2009, Sotelo would make changes to draft returns during her reviews or directed her employees to make change which often included increased charitable contributions, unreimbursed employee expenses, personal property taxes, and other itemized deductions without discussing the changes with the clients. Each of the twenty-six returns mentioned in the Indictment requested a refund, in amounts ranging from $1,282 to $7,140, and each was false in more than one respect. On Schedule A of all twenty-six returns were false itemized deductions, overstating the amount clients paid in personal property taxes and the amounts of their gifts to charities. All but two schedules misstated unreimbursed employee expenses and two schedules falsified medical and dental expenses.
Seven of the twenty-six returns misrepresented that taxpayers were eligible for credits for child and dependent care expenses. To support the claim for child and dependent care expenses each return included Form 2441, which listed the care provider's name, SSN and the amount the taxpayer paid to the provider during the tax year. When Sotelo and her employees, acting at her direction, falsified that information, they sometimes consulted what they called the "baby sitter list." The list contained information under three column headings: (1) "NAME," (2) "BABY SITTER SSN/ EIN," and (3) "ZIP CODE." At an employee meeting during the relevant time, Sotelo announced that J&G had to stop using the baby sitter list because "the IRS is catching on."
The tax loss resulting from the false entries on the twenty-six returns was $71,978. In April 2010, two IRS special agents interviewed Sotelo, who at first claimed that all of the information on J&G-prepared returns came from the clients and the returns did not contain false entries. When one of the agents told her that her statements were not consistent with what the IRS had learned, Sotelo admitted that she did "fudge" numbers on her clients' returns.
Sotelo pled guilty to one count of aiding and assisting in the preparation of false tax return, which carries a penalty of not more than 3 years in federal prison, and a fine of up to $100,000.
This case was investigated by Internal Revenue Service – Criminal Investigation with assistance from the Special Enforcement Program of the Internal Revenue Service and prosecuted by the Economic Crime Section of the U.S. Attorney’s Office’s Criminal Division.
Thermacore, Inc., Agrees to Pay $965,000 to Resolve False Claims Act AllegationsRead the Press Release
PHILADELPHIA - Thermacore, Inc. (“Thermacore”) has agreed to a $965,000.00 settlement to resolve allegations of fraud arising as part of the Federal government’s Small Business Innovation Research (“SBIR”) program. According to the United States, Thermacore is responsible for duplicate SBIR awards submissions. The United States contends that these submissions, and the attendant certifications, constituted false statements to the Federal government. The settlement was announced today by First Assistant United States Attorney Louis Lappen. Thermacore denies the allegations.
Thermacore acquired k Technology Corporation (“kTC”) on August 7, 2009. Through the SBIR program, kTC had submitted a project proposal to the National Aeronautics and Space Administration (“NASA”), on September 4, 2008, and submitted a duplicate proposal to the United States Air Force (“Air Force”) on September 24, 2008. Through the SBIR program, the agencies provide small businesses with incentives to profit from the commercialization of technology that would benefit the Federal government.
The SBIR program has requirements aimed to combat fraud, waste, and abuse. As part of these requirements, both NASA and the Air Force mandate that the same or essentially equivalent research may not be funded by more than one agency and that submissions under the SBIR Program must be certified as being non-duplicative. Under the SBIR Program, therefore, it is unlawful to receive funding for essentially equivalent work already funded under any government program or to falsely certify that work is non-duplicative.
The investigation was prompted by NASA’s proactive initiative to identify potential fraud in its SBIR contracts. “The proactive efforts of agencies like NASA are critical to identifying potential fraud and safeguarding limited government resources,” said Lappen.
Since its enactment in 1982, as part of the Small Business Innovation Development Act, SBIR has helped thousands of small businesses to compete for federal research and development awards which have enhanced the nation’s defense.
Under the parties’ settlement agreement, Thermacore will pay $500,000 to the United States. An additional $465,000.00 will be allocated and used for ongoing compliance efforts by Thermacore. Thermacore has already initiated an upgrade to its Ethics and Compliance Program which efforts are continuing.
The investigation was conducted by NASA, the Air Force, and the Department of Defense. The case is being handled by Assistant U.S. Attorney Veronica J. Finkelstein and auditor Lawrence M. Kutys.
Click here to view the settlement agreement.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Terlingua Woman Sentenced to Maximum Ten Years in Federal Prison for Collecting Deceased Father's Social Security BenefitsRead the Press Release
In Pecos on Friday, United States District Judge Robert A. Junell sentenced a 49-year-old Terlingua, TX, woman to the statutory maximum of ten years in federal prison for stealing over $245,000 in Social Security benefits paid to her deceased father announced Robert Pitman, United States Attorney.
In addition to the prison term, Judge Junell ordered Judith Maria Broughton to pay restitution to the federal government in the amount of $245,226 and be placed under supervised release for a period of three years after completing her prison term.
On July 3, 2014, Broughton pleaded guilty to a one count Information charging her with willfully and knowingly stealing Social Security Administration Retirement Insurance Benefits. By pleading guilty, Broughton admitted that she forged her father’s signature causing SSA benefits paid in the name of her father, Luther D. Broughton, to be electronically deposited into a joint checking account. From June 1990 to August 2011, she collected the funds deposited into the account even after his death. Broughton further admitted to converting those monies to her own personal use.
According to court records, Luther Broughton died in June 1990 and the defendant leased a storage unit in Lexington, KY, to conceal his death. A search of the storage unit on January 8, 2014, revealed the mummified remains of Luther D. Broughton as well as his personal belongings including an automobile. Also, the defendant’s mother, Mary Elizabeth Broughton’s, Social Security benefits were being electronically deposited into a joint checking account with the defendant. Mary Elizabeth Broughton’s whereabouts have not been determined and her SSA benefits have been suspended.
This case was investigated by special agents with the Social Security Administration-Office of Inspector General with assistance from the Brewster County Sheriff's Office and law enforcment in Lexington, KY. Assistant United States Attorney James J. Miller, Jr. prosecuted this case on behalf of the Government.
- Tax Preparation Business Owner Sentenced for Tax Fraud
Suburban Dermatologist Convicted of Cheating Medicare and Private Insurers of $2.6 Million in Health Care Fraud SchemeRead the Press Release
CHICAGO — A dermatologist in west suburban Lombard was convicted today of defrauding Medicare and private health insurers by submitting false claims for more than 800 patients resulting in losses totaling more than $2.6 million. The defendant, DR. ROBERT KOLBUSZ, falsely diagnosed patients with actinic keratosis, or sun-induced skin lesions that have potential to become cancerous, and then billed public and private health insurers for treatments that were ineffective and falsely documented.
Kolbusz, 57, of Oak Brook, owns and operates the Center for Dermatology and Skin Cancer, Ltd., in Lombard and formerly located in Downers Grove. He was found guilty of three counts of wire fraud and three counts of mail fraud by a jury that began deliberating on Friday after a four-week trial in U.S. District Court.
Kolbusz remains free on bond pending sentencing, which was scheduled for Feb. 13, 2015, by U.S. District Judge John Z. Lee. Kolbusz faces a maximum penalty of 20 years in prison and a $250,000 fine on each count, or an alternate fine totaling twice the gross fraud loss or twice the gain, whichever is greater. The Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
According to the evidence at trial, between 2003 and 2010, Kolbusz falsely documented hundreds of patients’ records to support medically unnecessary, cosmetic treatments he ordered. He typically billed for removing 15 or more lesions from hundreds of repeat patients, many for whom he treated on at least 10 or more occasions, and received insurance payments of up to $352.40 per treatment. Overall, he falsely claimed to have removed more than 150 pre-cancerous lesions from each of approximately 350 Medicare patients, more than 450 patients covered by Blue Cross and Blue Shield, and additional patients covered by Aetna and Humana health insurance. In fact, Kolbusz usually provided treatments that were merely cosmetic and that were not eligible for insurance payments.
Eight patients, several employees, and an expert witness testified for the government, while Kolbusz testified in his defense. One patient, who was a teenager at the time, testified that she thought only that she was getting her freckles lightened while Kolbusz claimed that he had destroyed approximately 491 pre-cancerous lesions on her skin.
The guilty verdict was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; Lamont Pugh III, Special Agent-in-Charge of the U.S. Department of Health and Human Services Office of Inspector General in Chicago; and James Vanderberg, Special Agent-in-Charge of the U.S. Department of Labor Office of Inspector General in Chicago.
The government is being represented by Assistant U.S. Attorneys Stephen Chahn Lee, Abigail Peluso, and Jessica Romero.
Rosebud Woman AcquittedRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rosebud, South Dakota, woman was acquitted of Arson on October 9, 2014, as a result of a federal jury trial in Pierre, South Dakota. Mary Peneaux was indicted by a federal grand jury in November 2013.
The charge related to the alleged arson of a residence in Rosebud.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Rosebud Sioux Tribe Law Enforcement Services. The U.S. Attorney's Office prosecuted the case.
Rapid City Man Sentenced for Felon in Possession of A FirearmRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rapid City, South Dakota, man convicted of Felon in Possession was sentenced on October 15, 2014, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Jesse D. Grimm, age 32, was sentenced to 12 months and one day in custody, 3 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Grimm was indicted for Felon in Possession by a federal grand jury on March 18, 2014. He pled guilty on June 26, 2014.
On January 20, 2014, Grimm possessed a Glock Model 27, which was inside a backpack in his pickup truck near Rapid City. Grimm was previously convicted of a felony of Aggravated Assault (Domestic Abuse) on January 2, 2009.
This case was investigated by the Division of Criminal Investigation and the Rapid City Police Department. Assistant U.S. Attorney Ted L. McBride prosecuted the case.Grimm was immediately turned over to the custody of the U.S. Marshals Service.
Rapid City Man Sentenced for False StatementRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rapid City, South Dakota, man convicted of False Statement was sentenced on October 15, 2014, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Justin Robert Yellow Elk, age 29, was sentenced to 8 months in custody, 3 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Yellow Elk was indicted for Concealing Person from Arrest and False Statement by a federal grand jury on March 18, 2014. He pled guilty to False Statement on June 6, 2014.
The conviction stems from when Yellow Elk, who was an employee at Community Alternatives of the Black Hills (CABH) in 2012, gave false statements to a Federal Bureau of Investigation (FBI) agent during a CABH escape investigation in April 2013.
This case was investigated by the FBI. Assistant U.S. Attorney Sarah Collins prosecuted the case. Yellow Elk was immediately turned over to the custody of the U.S. Marshals Service.
Project Safe ChildhoodRead the Press Release
Nottingham Man Pleads Guilty To Child Pornography PossessionCONCORD, NEW HAMPSHIRE: Ryan Rathe, 28, of Nottingham, pled guilty in United States District Court for the District of New Hampshire to possessing child pornography, announced U.S. Attorney John P. Kacavas.
The investigation into Rathe began in 2010, when the Department of Homeland Security (DHS) received information from the New Hampshire Crimes Against Children Task Force that an undercover officer had intercepted images of child pornography being made available by a computer user in Nottingham, New Hampshire.
Based on information provided by the task force, DHS conducted further investigation and secured a search warrant for Rathe’s residence in Nottingham. Computer evidence seized from Rathe’s home was examined and found to contain multiple images depicting young children engaged in illicit sexual acts.
United States Attorney Kacavas said, “Identifying, finding, and prosecuting predators like the defendant has been, and will continue to be, among the highest priorities of my office.”
Rathe, who is scheduled for sentencing in January 2015, faces a maximum prison term of ten years, followed by no less than five years of supervised release, and a maximum fine of $250,000.
The case was investigated by the Department of Homeland Security, Homeland Security Investigations, in conjunction with the New Hampshire Crimes Against Children Task Force (NH ICAC) and the Massachusetts State Police and is being prosecuted under Project Safe Childhood, a nationwide initiative by the U.S. 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 better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov
This is case is being prosecuted by Assistant United States Attorney Nick Abramson.President of Houston Hospital and Three Others Convicted in $158 Million Medicare Fraud SchemeRead the Press Release
A federal jury in Houston today convicted the president of Riverside General Hospital (Riverside), his son, and two others for their participation in a $158 million Medicare fraud scheme involving false claims for mental health treatment. Ten defendants have now been convicted in connection with the Riverside fraud scheme.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Kenneth Magidson of the Southern District of Texas, Special Agent in Charge Perrye K. Turner of the FBI’s Houston Field Office, Special Agent in Charge Lucy R. Cruz of the Internal Revenue Service – Criminal Investigation’s (IRS-CI) Houston Field Office and the Texas Attorney General’s Medicaid Fraud Control Unit (MFCU) made the announcement. U.S. District Judge Lee H. Rosenthal of the Southern District of Texas presided over the trial.
“The former president of Riverside hospital, his son, and their co-conspirators systematically defrauded Medicare, treating mentally ill and disabled Americans like chits to be traded and cashed out to pad their own pockets,” said Assistant Attorney General Caldwell. “For over six years, the Gibsons and their co-conspirators stuck taxpayers with millions in hospital bills, purportedly for intensive psychiatric treatment. But the ‘treatment’ was a sham – some patients just watched television all day, others had dementia and couldn’t understand the therapy they supposedly received, and other patients never even went to the hospital at all. Today’s verdict sends another powerful message that the department will hold accountable anyone who seeks personal profits at the expense of America’s most vulnerable citizens.”
Earnest Gibson III, 70, the former president of Riverside, Earnest Gibson IV, 37, the operator of one of Riverside’s satellite locations, and Regina Askew, 49, a group home owner, were each convicted of conspiracy to commit health care fraud and conspiracy to pay kickbacks, as well as related counts of paying and receiving illegal kickbacks. Robert Crane, 58, a patient recruiter, was convicted of conspiracy to pay and receive kickbacks. Gibson III and Gibson IV were also convicted of conspiracy to commit money laundering. Gibson III was acquitted of two substantive counts of paying and receiving illegal kickbacks.
According to evidence presented at trial, Gibson III, Gibson IV, and Askew operated a scheme to defraud Medicare beginning in 2005 and continuing until June 2012. The defendants caused the submission of false and fraudulent claims for partial hospitalization program (PHP) services to Medicare through the hospital. A PHP is a form of intensive outpatient treatment for severe mental illness.
Specifically, evidence at trial demonstrated that the Medicare beneficiaries for whom Riverside and its satellite locations billed Medicare for PHP services did not qualify for or need PHP services. Moreover, the Medicare beneficiaries rarely saw a psychiatrist and did not receive intensive psychiatric treatment. In fact, some of the Medicare beneficiaries were suffering from Alzheimer’s and could not actively participate in any treatment even if they actually qualified to receive PHP services. Nevertheless, Gibson III, Gibson IV and Askew submitted claims for reimbursement to Medicare claiming that PHP services were provided to the Medicare beneficiaries.
Evidence presented at trial also showed that Earnest Gibson III paid kickbacks to patient recruiters and to owners and operators of group care homes, including Askew, in exchange for those individuals delivering ineligible Medicare beneficiaries to the hospital’s PHPs. Gibson IV also paid patient recruiters, including Crane and others, in exchange for those individuals delivering ineligible Medicare beneficiaries to the specific PHP operated by Gibson IV.
Approximately $158 million in claims to Medicare were submitted for PHP services purportedly provided by the hospital to the recruited beneficiaries, when in fact, the PHP services were medically unnecessary or never provided. The proceeds from the health care fraud were used to promote the fraud scheme by paying kickbacks to patient recruiters and group home owners in exchange for their sending Medicare beneficiaries to the hospital’s PHPs.
Gibson III, Gibson IV, Askew and Crane are scheduled to be sentenced on Feb. 17, 2015.
Others involved in the fraudulent scheme have already pleaded guilty and are awaiting sentencing. Mohammad Khan, an assistant administrator at the hospital, who managed many of the hospital’s PHPs, pleaded guilty to conspiracy to commit health care fraud, conspiracy to defraud the United States and to pay illegal kickbacks, and five counts of paying illegal kickbacks. William Bullock, an operator of a Riverside satellite location, as well as Leslie Clark, Robert Ferguson, Waddie McDuffie, and Sharonda Holmes, who were all involved in paying or receiving kickbacks, have also pleaded guilty to their roles in the scheme.
The case was investigated by the FBI, IRS-CI, and Texas MFCU, with assistance from the U.S. Department of Health and Human Services, Office of Inspector General’s (HHS-OIG) Dallas Regional Office, the Railroad Retirement Board, Office of Inspector General’s Chicago Field Office and the Office of Personnel Management’s Office of Inspector General, 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 Texas. The case is being prosecuted by Assistant Chiefs Laura M.K. Cordova and Jennifer L. Saulino and Trial Attorney Ashlee C. McFarlane of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,000 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to www.stopmedicarefraud.gov.
Pre-Trial Conference HearingRead the Press Release
Contact Person: Beth Drake (803) 929-3000
Columbia, South Carolina ---- United States Attorney’s Office announces today that there will be a Pre-Trial Conference hearing tomorrow (October 21, 2014) in United States v. Warren Dominique McDaniel. The hearing will be held at 2:00 pm on October 21, 2014, before United States District Judge Michelle Childs (courtroom # 2) at the Matthew J. Perry Federal Courthouse in Columbia, South Carolina.
Payroll Services Company Owner Pleads Guilty to Diverting $1.2 Million in Employment Taxes Due the IRSRead the Press Release
PROVIDENCE, R.I. – Warren Hebert, 67, of Barrington, R.I., owner of Checkmaster Payroll Services, pleaded guilty in U.S. District Court in Providence today to defrauding seven businesses and the Seekonk, Mass., Water District of more than $1.2 million dollars in federal payroll taxes that were to have been paid to the IRS, announced United States Attorney Peter F. Neronha and William P. Offord, Special Agent in Charge of IRS Criminal Investigation.
Hebert admitted to the court that he failed to pay to the IRS approximately $1,266,680 in funds he withdrew from client accounts to pay the clients’ federal employment taxes. Hebert admitted that he diverted the funds for his own use, in some instances paying the additional tax liabilities, interest and penalties of other clients whose tax returns he had previously failed to accurately prepare, file and pay-over.
Hebert admitted to the court, beginning as early as April 2009 and continuing through at least October 2011, he diverted money from at least seven businesses operating in Rhode Island and Massachusetts, including, among others, a moving and storage company, nursery school, jewelry packaging company, and marketing and communications company. Hebert also admitted to diverting funds from the Seekonk, Mass., Water District, a municipal water agency.
Appearing before U.S. District Court Chief Judge William E. Smith, Hebert pleaded guilty to eight counts of wire fraud and one count of impeding the administration of the Internal Revenue Code. He is scheduled to be sentenced on January 9, 2015.
Wire fraud is punishable by a statutory penalty of up to 20 years in federal prison and a fine of up to $250,000. Impeding the administration of the Internal Revenue Code is punishable by a statutory penalty of up to 3 years in federal prison and a fine of up to $250,000.
The case is being prosecuted by Assistant U.S. Attorney John P. McAdams.
The matter was investigated by IRS Criminal Investigation, with the assistance of the FBI, Rhode Island FDA Task Force, Rhode Island State Police and Barrington Police.
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To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Owner of Texas Perfume Business Indicted for Violating Cash Reporting Requirements Involving More Than $1.6 millionRead the Press Release
The owner and president of a wholesale and retail perfume store in Laredo, Texas, was indicted by a federal grand jury today on 44 counts of causing his business to fail to report cash transactions of more than $10,000.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Kenneth Magidson of the Southern District of Texas made the announcement.
The indictment alleges that Virender Sharma, 59, of Laredo, Texas, was the owner and president of T.M. Perfumes, and was responsible for complying with the cash reporting requirements for the company. Despite knowing of his filing obligations since 2006, Sharma allegedly caused the business to fail to report at least 44 cash transactions exceeding $10,000 between June 2009 and July 2010, which totaled more than $1.6 million.
The charges contained in an indictment are merely accusations, and a defendant is presumed innocent unless and until proven guilty.
The case was investigated by the Internal Revenue Service – Criminal Investigation and the Drug Enforcement Administration. The case is being prosecuted by Trial Attorney Keith Liddle of the Criminal Division’s Asset Forfeiture and Money Laundering Section and Assistant U.S. Attorney Ted Imperato of the Southern District of Texas.
- Owner of Laredo Perfume Business Indicted for Violating Cash Reporting Requirements
Over 29,000 Students to Pledge Against Gun ViolenceRead the Press Release
Contact Person: Lance Crick (864) 282-2100
Columbia, South Carolina ---- United States Attorney Bill Nettles announced that on Wednesday, October 22, 2014, members of the United States Attorney’s Office and their local, state, and federal law enforcement partners will meet with students from across South Carolina, as part of South Carolina’s 13th annual Student Pledge Against Gun Violence.
Participating Schools: Abbeville High School Abbeville, SC Alice Drive Middle School Sumter, SC Andrews, SC Arden Elementary School Columbia, SC Bennettsville Intermediate School Bennettsville, SC Beech Hill Elementary School Summerville, SC Bethune-Bowman Elementary School Rowesville, SC Blacksburg Middle School Blacksburg, SC Brockington Elementary Magnet School Darlington, SC Burton-Pack Elementary School Columbia, SC Busbee Creative Arts Academy Cayce, SC Carver-Lyon Elementary School Columbia, SC Castle Heights Middle School Rockhill, SC C.E. Murray Junior High School Greeleyville, SC C.E. Murray High School Greeleyville, SC Central Elementary School Central, SC Cherokee Trail Elementary School Donalds, SC Croswell Drive Elementary School Sumter, SC E.B. Morse Elementary School Laurens, SC Ebenezer Middle School Sumter, SC Fairfax Elementary School Fairfax, SC Fairfield Elementary School Winnsboro, SC Fair-Oak Elementary School Westminster, SC Forest Brook Middle School Myrtle Beach, SC Grassy Pond Elementary School Gaffney, SC Hillcrest Middle School Dalzell, SC Hollis Academy Elementary School Greenville, SC J.C. Lynch Elementary School Coward, SC John W. Moore Intermediate School Florence, SC Joseph Keels Elementary School Columbia, SC Kinard Elementary School Clover, SC Ladson Elementary School North Charleston, SC Lamar High School Lamar, SC Lakeside Middle School Anderson, SC Latta Elementary Latta, SC Laurens Elementary School Laurens, SC Laurens Middle School Laurens, SC Limestone-Central Elementary School Gaffney, SC Lewisville Middle School Richburg, SC Logan Elementary School Columbia, SC Loris Elementary School Loris, SC Luther Vaughn Elementary School Gaffney, SC Macedonia Middle School Moncks Corner, SC Malcolm C. Hursey Elementary School North Charleston, SC Marion High School Marion, SC Mary Bramlett Elementary School Gaffney, SC Mary Ford Elementary School Charleston, SC McLaurin Elementary School Florence, SC McKissick Elementary School Easley, SC Merriwether Middle School North Augusta, SC Mitchell Math and Science Elementary School Charleston, SC Nevitt Forest Community School of Innovation Anderson, SC Northwest Elementary School Gaffney, SC Northwest Middle School Travelers Rest, SC Oakway Intermediate School Westminster, SC Oakwood Windsor Elementary School Aiken, SC Petersburg Primary School Pageland, SC Pocalla Springs Elementary School Sumter, SC Rawlinson Road Elementary School Rockhill, SC Rivelon Elementary School Orangeburg, SC South Kilbourne Elementary School Columbia, SC Stewart Heights Elementary School Dillon, SC Timrod Elementary School Florence, SC West Hartsville Elementary School Hartsville, SC W.A. Perry Middle School Columbia, SC
With a focus on keeping their schools and communities safe, students in middle school and high school will sign a voluntary pledge promising that they will never take a gun to school, will never resolve a dispute with a gun, and will use their influence to prevent friends from using guns to resolve disputes. Elementary school children will make a simpler commitment, pledging that if they see a gun they will not touch it, they will assume that any gun they see might be loaded, and they will tell a teacher or a trusted adult. The effort is part of South Carolina’s Project CeaseFire, which is South Carolina’s implementation of the Department of Justice’s Project Safe Neighborhoods program, which is aimed at reducing gun violence. The Student Pledge Against Gun Violence is a national program that recognizes the role that young people, through their own decisions, can play in reducing gun violence. This campaign against youth gun violence culminates each October in a “Day of National Concern about Young People and Gun Violence.” The program provides a means for beginning the conversation with young people about gun violence. Students from around the country will join together in pledging to do their part to end gun violence. Over the years, millions of students nationwide have signed the pledge.
Mr. Nettles said that, just as in years past, the response to the pledge campaign has been outstanding, with approximately 29, 203 students from 67 schools across the state agreeing to take part. "Once again our office is pleased to take this opportunity to reach out to South Carolina students with an effort to engage students, teachers, and administrators to facilitate a dialogue with students about gun violence and the importance of making good decisions," stated Mr. Nettles.
The U.S. Attorney's Office worked with schools, student resource officers, and law enforcement agencies throughout the state to make the pledges available, providing the pledges to participating schools as well as scheduling presentations for some 37 of the schools that requested speakers. Below is a list of South Carolina schools that are participating in this year's pledge. For information on any events scheduled for a particular school, please contact the school. For additional information concerning the pledge, visit the national Student Pledge website atNorthern Arapaho Tribe Woman Pleads Guilty in New Mexico to Federal Child Abuse ChargeRead the Press Release
ALBUQUERQUE – Tarasina Wallowingbull, 27, pleaded guilty this morning to abusing a child in New Mexico’s Indian County. Wallowingbull is a member of the Northern Arapaho Tribe of Fort Washakie, Wyoming, who currently resides in Albuquerque, N.M.
Wallowingbull was arrested on July 29, 2014, on a criminal complaint charging her with assault resulting in serious bodily injury. According to the criminal complaint, on June 11, 2014, Wallowingbull crashed her vehicle in San Felipe Pueblo in Sandoval County, N.M., while driving under the influence of alcohol. A young child, who was ejected from Wallowingbull’s vehicle at the time of the single-vehicle crash, sustained serious injuries.
Today Wallowingbull pled guilty to a felony information charging her with abuse of a child in Indian County. In entering her guilty plea, Wallowingbull admitted causing a child under the age of 18 years to be placed in a situation that endangered the child’s life or health.
At sentencing, Wallowingbull faces a statutory maximum sentence of three years in prison. Her sentencing hearing has yet to be scheduled.
This case was investigated by the Southern Pueblos and Laguna Agencies of the BIA’s Office of Justice Services, and is being prosecuted by Assistant U.S. Attorney Novaline D. Wilson.Noaa National Weather Service Employee Indicted for Allegedly Downloading Restricted Government FilesRead the Press Release
*On March 10, 2015, the Department of Justice voluntarily moved to dismiss the indictment against Ms. Chen. On March 11, 2015, the U.S. District Court granted the motion, dismissing all charges.DAYTON, OHIO – Xiafen “Sherry” Chen, 59, of Wilmington, Ohio, was indicted in U.S. District Court for allegedly accessing restricted U.S. Government files. Chen is a hydrologist currently employed at the National Oceanic and Atmospheric Administration’s (NOAA) facility located in Wilmington, Ohio.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Kevin R. Cornelius, Special Agent in Charge for the Federal Bureau of Investigation (FBI) in Cincinnati, Ohio, Dr. Kathryn Sullivan, the NOAA Administrator and George Lee, Special Agent in Charge of the U.S. Department of Commerce’s Investigations and Threat Management Division announced the indictment today.
The indictment alleges that on various dates in May 2012, Chen illegally accessed restricted areas of a protected U.S. Government computer database and downloaded sensitive files from the National Inventory of Dams. This database is maintained and controlled by the U.S. Army Corps of Engineers in conjunction with the National Dam Safety Review Board.
The indictment further alleges that on June 11, 2013, Chen provided materially false statements to officials from the Department of Commerce Office of Security who were assigned to investigate her activities.
The indictment charges Chen with one count of theft of U.S. Government property, a crime punishable by up to 10 years in prison and a $250,000 fine; one count of illegally accessing a U.S. Government computer database, a crime punishable by up to 5 years in prison and a $250,000 fine; and two counts of making materially false statements to federal agents, crimes each punishable by up to 5 years in prison and a $250,000 fine.
Chen was arrested today by FBI agents at her place of work at the Wilmington, Ohio NOAA facility.
U.S. Attorney Stewart commended FBI and the U.S. Department of Commerce’s Office of Security who are jointly investigating this case. Assistant United States Attorney Dwight Keller is representing the government in this case.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.New Mexico Woman Sentenced for Possession of a Firearm and AmmunitionRead the Press Release
BISMARCK - U. S. Attorney Timothy Q. Purdon announced that on October 20, 2014, April Marie Lacey, 32, Las Cruces, NM, was sentenced before U. S. District Judge Daniel L. Hovland to serve 10 years in prison for and possession of a firearm and ammunition by a convicted felon.
On September 14, 2013, a Montana Highway Patrol officer attempted to stop a car driven by Christopher Russell near Fairview, Montana. Russell refused to stop and a chase commenced which ended in North Dakota. McKenzie County law enforcement officials were able to apprehend Russell on Highway 85 near Arnegard, ND. Lacey was the lone passenger in the car. After stopping and arresting the two, officers found approximately two ounces of methamphetamine and a .380 caliber pistol in the car. Evidence revealed that the couple was traveling to the New Town, ND area to distribute the methamphetamine. Lacey was prohibited from legally possessing a firearm due to four felony convictions, including 2005 New Mexico convictions for armed robbery with a deadly weapon and a 2013 Washington conviction for third degree assault.
Judge Hovland also ordered that Lacey serve 3 years of supervised release and was ordered to pay a $100 pecial assessment to the Crime Victims Fund.
On September 8, 2014, Russell, 34, Tacoma, Wash., was sentenced before U. S. District Judge Daniel L. Hovland to serve 20 years in prison for possession with intent to distribute a controlled substance and possession of a firearm and ammunition by a convicted felon. Russell was prohibited from legally possessing a firearm due to four felony convictions, including a 2006 Missouri conviction for delivery of a controlled substance.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives, Northwest Narcotics Task Force, McKenzie County Sheriff’s Office, Federal Bureau of Investigation, and the Montana Highway Patrol.
Assistant U. S. Attorney David D Hagler prosecuted the case.
New Hampshire Man Pleads Guilty to Filing False Tax ReturnRead the Press Release
A Hampton, New Hampshire, man pleaded guilty today in the U.S. District Court for the District of New Hampshire to filing a false federal income tax return for tax year 2009, the Justice Department and Internal Revenue Service (IRS) announced.
According to court documents, Menashe Cohen, an oriental carpet dealer, and his sister maintained an undeclared bank account at UBS in Switzerland that had a balance of approximately $1.3 million. Cohen also maintained bank accounts in Israel and in Jersey, a British Crown dependency located in the Channel Islands off the coast of Normandy, France. Although Cohen’s return for tax year 2009 reported that he had a financial interest in a bank account in Jersey, the return failed to report that he had financial interests in the accounts located in Switzerland and Israel. In addition, Cohen’s return only reported $350 in interest income, when in fact he had received approximately $66,500 in interest income during 2009.
In total, for tax years 2006 through 2009, Cohen failed to report approximately $170,000 in income earned from offshore bank accounts. In addition, Cohen filed a false and fraudulent Report of Foreign Bank and Financial Accounts (FBAR) for 2009, wherein Cohen reported he had bank accounts in Israel and Jersey on the FBAR, but failed to report his financial interest in the UBS account in Switzerland.
According to the law, U.S. citizens and residents who have an interest in, or signature or other authority over, a financial account in a foreign country with assets in excess of $10,000 are required to disclose the existence of such account on Schedule B, Part III, of their individual income tax returns (Forms 1040). Additionally, U.S. citizens and residents must file a FBAR with the U.S. Treasury disclosing any financial account in a foreign country with assets in excess of $10,000 in which they have a financial interest or signature or other authority.
Cohen faces a statutory potential maximum sentence of three years in prison and a maximum fine of $250,000 at his Jan. 26, 2015, sentencing. In addition, Cohen has agreed to resolve his civil liability for failing to report his financial interest in the UBS account on a FBAR by paying a 50 percent civil penalty to the IRS based on the high balance of his one-half interest in the account.
This case was investigated by special agents of IRS-Criminal Investigation and is being prosecuted by Senior Litigation Counsel John E. Sullivan of the department’s Tax Division and Assistant U.S. Attorney Robert M. Kinsella for the District of New Hampshire.
Additional information about the Tax Division and its enforcement efforts may be found at www.justice.gov/tax/.
New Hampshire Man Pleads Guilty to Filing False Tax ReturnRead the Press Release
WASHINGTON – A Hampton, New Hampshire, man pleaded guilty today in the U.S. District Court for the District of New Hampshire to filing a false federal income tax return for tax year 2009, the Justice Department and Internal Revenue Service (IRS) announced.
According to court documents, Menashe Cohen, an oriental carpet dealer, and his sister maintained an undeclared bank account at UBS in Switzerland that had a balance of approximately $1.3 million. Cohen also maintained bank accounts in Israel and in Jersey, a British Crown dependency located in the Channel Islands off the coast of Normandy, France. Although Cohen’s return for tax year 2009 reported that he had a financial interest in a bank account in Jersey, the return failed to report that he had financial interests in the accounts located in Switzerland and Israel. In addition, Cohen’s return only reported $350 in interest income, when in fact he had received approximately $66,500 in interest income during 2009.
In total, for tax years 2006 through 2009, Cohen failed to report approximately $170,000 in income earned from offshore bank accounts. In addition, Cohen filed a false and fraudulent Report of Foreign Bank and Financial Accounts (FBAR) for 2009, wherein Cohen reported he had bank accounts in Israel and Jersey on the FBAR, but failed to report his financial interest in the UBS account in Switzerland.
According to the law, U.S. citizens and residents who have an interest in, or signature or other authority over, a financial account in a foreign country with assets in excess of $10,000 are required to disclose the existence of such account on Schedule B, Part III, of their individual income tax returns (Forms 1040). Additionally, U.S. citizens and residents must file a FBAR with the U.S. Treasury disclosing any financial account in a foreign country with assets in excess of $10,000 in which they have a financial interest or signature or other authority.
Cohen faces a statutory potential maximum sentence of three years in prison and a maximum fine of $250,000 at his Jan. 26, 2015, sentencing. In addition, Cohen has agreed to resolve his civil liability for failing to report his financial interest in the UBS account on a FBAR by paying a 50 percent civil penalty to the IRS based on the high balance of his one-half interest in the account.
This case was investigated by special agents of IRS-Criminal Investigation and is being prosecuted by Senior Litigation Counsel John E. Sullivan of the department’s Tax Division and Assistant U.S. Attorney Robert M. Kinsella for the District of New Hampshire.
Additional information about the Tax Division and its enforcement efforts may be found at www.justice.gov/tax/.Mobile County Man Sentenced to 5 Years Probation for Theft of Social Security (SSA) Widow's BenefitsRead the Press Release
The United States Attorney, Kenyen R. Brown, announces that Lovell Rhodes, a 77 year old resident of Mobile, Alabama was sentenced today. Mr. Rhodes pled guilty to theft of government funds on July 21, 2014. Mr. Rhodes mother died in 1997, and at that time, she was receiving SSA widow’s benefits. Her benefits continued to be deposited monthly into her bank account at Regions Bank for more than seven years after her death. Mr. Rhodes was sentenced today to a five year probationary term and order to repay the Social Security Administration $132,572.00, which was the total amount he stole over the seven year period.
Special Agents of the Social Security Administration’s Office of Inspector General investigated the case and presented it to the U.S. Attorney=s Office for prosecution. The prosecutor assigned to the case is Assistant United States Attorney, Gina S. Vann.
Millcreek Man Sentenced to 20 Years for Production and Possession of Child PornographyRead the Press Release
ERIE, Pa. - A former resident of Erie, Pennsylvania, has been sentenced in federal court to 20 years in jail and lifetime supervised release on his conviction of violating federal laws relating to the sexual exploitation of children, United States Attorney David J. Hickton announced today.
United States District Judge David S. Cercone imposed the sentence on Todd Calvin Lapping, 40.
According to information presented to the court, Lapping produced images of a minor engaged in sexually explicit conduct and possessed computer images depicting minors engaging in sexually explicit conduct.
Assistant United States Attorney Christian A. Trabold prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Millcreek Police Department, the Federal Bureau of Investigation and the Pennsylvania State Police for the investigation leading to the successful prosecution of Lapping.
Launched in February 2006, Project Safe Childhood is a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorneys' Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Michigan Luxury Car Mechanic Indicted for Tax FraudRead the Press Release
A mechanic who specializes in repairing exotic foreign cars and other high-end luxury vehicles was arrested on Friday after being indicted on tax charges by a grand jury in Detroit, the Justice Department announced.
Terry Myr, a resident of Smith’s Creek, Michigan, was charged with tax evasion and failure to file tax returns. If convicted, Myr faces a maximum sentence of nine years in prison and a $650,000 fine.
According to the indictment, the Internal Revenue Service (IRS) assessed Myr approximately $195,000 in taxes, interest and penalties for his failure to report all of his income for the years 2000 through 2003. To avoid the IRS collecting this money, Myr transferred property that he owned to a third party, used nominee companies to conceal his income and assets, and otherwise dealt in cash. The indictment alleges that Myr failed to file tax returns from 2002 through 2010.
The case was investigated by special agents of the IRS – Criminal Investigation. Trial Attorneys Tiwana Wright and Kenneth Vert from the Justice Department’s Tax Division are prosecuting the case.
An indictment merely alleges that a crime has been committed, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Additional information about the Tax Division and its enforcement efforts may be found on the division website.
Medical Office Receptionist Pleads Guilty to Embezzlement, Credit Card Fraud, and Tax EvasionRead the Press Release
NEWARK, N.J. – A receptionist previously employed by a medical office in Kearny, New Jersey, today admitted embezzling more than $446,000 from her former employer, using fraudulent credit cards to obtain more than $200,000 in goods and services and evading taxes on that illegal income, U.S. Attorney Paul J. Fishman announced.
Gwendolyn Muller, 53, formerly of Kearny, pleaded guilty before U.S. District Judge William J. Martini in Newark federal court to an information charging one count each of embezzlement, credit card fraud and tax evasion.
According to documents filed in this case and statements made in court:
From 2007 through 2011, Muller used her position at the medical practice to take, cash, and conceal more than $446,000 in checks paid by insurance companies to the medical practice for services to patients. At various times during this same period, Muller also fraudulently obtained 10 credit cards in the name of a principal of the medical practice and used those cards to charge more than $218,000 in goods and services – a portion of which Muller paid for with embezzled funds. Muller also admitted to filing a false tax return to evade the payment of taxes on this illegally obtained income.
The embezzlement and credit card counts to which Muller pleaded guilty each carry a maximum potential penalty of 10 years in prison, and the tax count carries a maximum potential penalty of five years in prison. All three counts are also punishable by a fine of $250,000, or twice the gross loss or gain caused by the offense. Sentencing is scheduled for Feb. 19, 2015. Under terms of the plea agreement, Muller is required to forfeit $556,000 to the United States.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford, and IRS–Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen, with the investigation leading to today’s guilty plea.The government is represented by Senior Litigation Counsel Andrew Leven of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark.
U.S. Attorney Fishman reorganized the health care fraud practice at the New Jersey U.S. Attorney’s Office shortly after taking office, including creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered more than $540 million in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act and other statutes.
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Defense counsel: Donald Rinaldi Esq., Nutley, N.J.
Muller, Gwendolyn Information
Manderson Man Sentenced to 60 Months for Conspiracy to Distribute MarijuanaRead the Press Release
United States Attorney Brendan V. Johnson announced that a Manderson, South Dakota, man convicted of Conspiracy to Distribute Marijuana was sentenced on October 15, 2014, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Robert Dale Martin, age 47, was sentenced to 60 years in custody, 4 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Martin was indicted for Conspiracy to Distribute Controlled Substances by a federal grand jury on February 20, 2014. He pled guilty on June 27, 2014.
Beginning in the year 2000 through 2012, Martin received pound quantities of marijuana and brought it into South Dakota for further distribution. Martin engaged in a supervisory role and distributed more than 100 kilograms of marijuana on the Pine Ridge Reservation during this conspiracy.
This case was investigated by Northern Plains Safe Trails Drug Enforcement Task Force, which includes the following agencies: Federal Bureau of Investigation, Division of Criminal Investigation, Bureau of Indian Affairs Office of Justice Services, Oglala Sioux Tribe Department of Public Safety, Fall River County Sheriff’s Office, and the Fall River State’s Attorney’s Office. U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations also assisted with the investigation. Assistant U.S. Attorney Ted L. McBride prosecuted the case.
Martin was immediately turned over to the custody of the U.S. Marshals Service.
Man Sentenced to Statutory Maximum and Remanded into Custody for Defrauding Wichita Falls Couple of Their Life SavingsRead the Press Release
DALLAS — A man who admitted defrauding a couple from Wichita Falls, Texas, out of their life savings, was sentenced this morning in federal court in Wichita Falls, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Paul Eugene Prewitt, 44, most recently of Phoenix, Arizona, was sentenced by U.S. District Judge Reed C. O’Connor to the statutory maximum sentence of 60 months in federal prison and ordered to pay $242,250 in restitution. Judge O’Connor remanded Prewitt, who had been on bond, into federal custody. Prewitt pleaded guilty in May 2014 to a superseding information charging one count of conspiracy to commit wire fraud.
According to documents filed in the case, from February 2009 through at least 2012, Prewitt ran a scheme to defraud an elderly couple of their retirement savings through a series of fraudulent, false and fictitious investment opportunities. Prewitt admitted making false and fraudulent representations to the couple about investment opportunities, including a condominium project in Utah that did not even exist. As a result of Prewitt’s representations, the elderly victims wired or mailed all of their retirement savings to Prewitt, who used the money for personal expenses. Prewitt admitted that he never invested the money and that he received approximately $242,250 from the victims.
The case was investigated by the FBI, Wichita Falls Resident Agency, with special assistance from the FBI’s Phoenix Division. Assistant U.S. Attorney J. Nicholas Bunch prosecuted.
Man Pleads Guilty to Robbery at Wendy's in TopekaRead the Press Release
TOPEKA, KAN. - A man pleaded guilty Monday to an armed robbery at a Wendy’s restaurant in Topeka, U.S. Attorney Barry Grissom said.
George Christopher Walton, Jr., 37, Topeka, Kan., pleaded guilty to one count of robbery and one count of brandishing a firearm during the robbery. In his plea he admitted that on Aug. 4, 2014, he entered the Wendy’s restaurant at 728 S.W. Topeka Blvd. dressed all in black, wearing a mask and brandishing a firearm. He demanded cash from the register and then fled with the money.
Walton got into a car driven by his daughter and co-defendant Tashaun Desanic Walton. Police chased the car for several minutes before it stopped and Walton jumped out. He was captured a short while later in a residential area.
Sentencing is set for Jan. 26. Both parties have agreed to recommend a sentence of 84 months in federal prison.
His daughter, co-defendant Tashaun Desanic Walton, is set for a change of plea hearing Nov. 3.
Grissom commended the Topeka Police Department, the FBI and Assistant U.S. Attorney Jared Maag for their work on the case.In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Lower Brule Man Sentenced for Malicious MischiefRead the Press Release
United States Attorney Brendan V. Johnson announced that a Lower Brule, South Dakota, man charged with Malicious Mischief pled guilty to and was sentenced on October 10, 2014, by U.S. Magistrate Judge Mark A. Moreno.
Thomas Loudner, age 38, was sentenced to 2 months of custody, 1 year of supervised release, $1,000 restitution to the Lower Brule Sioux Tribe, and $25 to the Federal Crime Victims Fund.
The conviction stems from an incident that took place on January 26, 2013, when Loudner and others were driving around the Lower Brule Community. They were drinking and began to discuss having a bonfire. Loudner drove to the Lower Brule Sioux Tribe Old Boxing Club building, got out of his vehicle, grabbed a gas can, entered the building and set it on fire. The building sustained damage as a result of the fire.
The investigation was conducted by the Bureau of Indian Affairs, Lower Brule Agency. The case was prosecuted by Assistant U.S. Attorney Meghan N. Dilges.
Loudner was remanded to the custody of the U.S. Marshals Service.
Lackawanna Man Sentenced on to Drug ChargesRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Kenneth Sweat, 26, of Lackawanna, N.Y., who was convicted of possession with intent to distribute and distribute crack cocaine, was sentenced to 27 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney John M. Alsup, who handled the case, stated that on February 18, 2013 and February 25, 2013, the defendant sold 36 grams of crack cocaine to a confidential source working with the Drug Enforcement Administration and Lackawanna Police.
The sentencing is the culmination of an investigation by the Lackawanna Police Department, under the direction of Chief James Michel, and the Drug Enforcement Administration, under the direction of James J. Hunt, Acting Special Agent in Charge, New York Field Division.Idaho Resident Sentenced for Theft of Social Security BenefitsRead the Press Release
BOISE – Melinda Sue Priddy, 43, of New Meadows, Idaho, was sentenced today to five years of probation, including three months of home detention, for theft of $138,910 from the Social Security Administration, U.S. Attorney Wendy J. Olson announced. United States District Judge Edward J. Lodge also ordered Priddy to pay $138,910 in restitution to the Social Security Administration and to perform 100 hours of community service. She pleaded guilty to the charge on July 30, 2014.
According to the plea agreement, Priddy’s grandmother died in May of 2004. At the time of her death, Priddy’s grandmother was receiving survivor benefits from the Social Security Administration. These deposits were being made on a monthly basis into a bank account held jointly by Priddy and her grandmother. The Social Security Administration did not receive notification of Priddy’s grandmother’s death, and continued to make the monthly deposits into their joint account. From July of 2004 through May of 2013, Priddy, knowing that she was acting illegally, regularly withdrew this money for her own use.
The case was investigated by the Office of the Inspector General for the Social Security Administration.
Huntington Traffic Stop Exposes Heroin DealerRead the Press Release
HUNTINGTON, W.Va. – United States Attorney Booth Goodwin announced that Dwight McVernon Green, 24, of Huntington, West Virginia pled guilty today in federal court in Huntington to possession with intent to distribute heroin. United States District Court Chief Judge Robert C. Chambers presided over the plea hearing.
In the early morning of July 10, 2014, Huntington Police stopped a 2013 black Chevrolet Malibu for speeding in the 400 block of 26th Street. Green, the driver of the speeding car, was arrested for driving under the influence of alcohol. During a subsequent search of the vehicle, officers found a loaded 9 mm automatic pistol with a round in the chamber, a bag containing $59,950 in cash, a box of clear plastic baggies, a bag with more than 104 grams of white powder that tested positive for cocaine, and a bag with more than 50 grams of a brown substance that tested positive for heroin. Green faces up to 20 years imprisonment and a $1 million fine when he is sentenced on February 2, 2015.
The investigation was conducted by Huntington Police Department. The case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
Grandview Business Owner Indicted in $3 Million Extortion, Money Laundering SchemeRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that the owner of a Grandview, Mo., lawn care company has been indicted by a federal grand jury for a $3 million extortion and money laundering scheme that began when a cocaine deal went awry.
Shelton E. Lewis, also known as “Steve Johnson” or “C,” 39, of Grandview, was charged in a 19-count indictment returned under seal by a federal grand jury in Kansas City, Mo., on Thursday, Sept. 18, 2014. That indictment was unsealed and made public following Lewis’s arrest in Atlanta, Ga., and initial court appearance in the U.S. District Court in the Northern District of Georgia. Lewis remains in custody pending a detention hearing in the U.S. District Court in Kansas City, Mo.
Lewis is the owner of Green Results Landscape & Lawncare, LLC. According to the federal indictment, Lewis and/or Green Results Landscape & Lawncare held three accounts at Academy Bank, a division of the Armed Forces Bank, N.A. These accounts were opened shortly after his business was formed and regularly held minimal, or as was often the case, negative balances. In August of 2012, the indictment says, that changed. Lewis allegedly began depositing large cashier’s checks and business checks into these accounts. From Aug. 31, 2012, to Aug. 14, 2013, the indictment says, Lewis deposited a total of $3,050,110 into his accounts, with all the proceeds coming from the same company.
The indictment alleges that Lewis transmitted multiple threats to injure that company’s owner, RW, as part of an extortion scheme.
According to the indictment, the extortion scheme began in July 2012 when Lewis agreed to sell approximately six ounces of cocaine for $3,000 to RW. While RW was waiting for the deal to be consummated, he was approached by the police. Lewis witnessed that police contact, the indictment says, and did not return with the agreed-upon cocaine. Lewis allegedly told RW that, since the deal was not completed, the dealer (Lewis’s source) was assessing a $10,000 penalty. RW paid the penalty and picked up what he thought was cocaine at the drop location, the indictment says, but only received a bag of flour.
In August 2012, according to the indictment, Lewis told RW that he had a plan for him to get his money back. The plan was for RW to purchase a block of cocaine and sell it, thereby recouping RW’s previously spent money. RW allegedly paid the requested money and additionally provided a Rolex watch that Lewis demanded. RW was further directed to obtain a pay-as-you go, or throw-away phone for future contact.
In the fall of 2012, Lewis allegedly told RW that he had been pulled over by the police and that the money and watch were seized. Lewis also claimed that the police had RW’s fingerprints from the watch and were going to charge RW with drug conspiracy. Lewis allegedly informed RW over the throw-away phone that he knew an attorney who could make the investigation go away, but it would require paying off the attorney and the judge assigned the case. RW paid the requested money, according to the indictment.
Lewis allegedly told RW that the attorney would contact him in the future. According to the indictment, when a person claiming to be an attorney contacted RW on the throw-away phone, the attorney reported that an unrelated federal investigation had developed which would require additional bribes to clear up. RW allegedly paid the additional, exorbitant sum.
RW was called, again on the throw-away phone, and told that the drug cartel knew where he lived and had left a present for him, the indictment says, which turned out to be a box full of Winchester .45-caliber, semi-automatic ammunition. Additionally, according to the indictment, RW was told that if he failed to make the payments requested, he or any family member presently in his home would have their heads chopped off.
According to the indictment, these threats were made using a throw-away phone that RW had been instructed to obtain. The phone calls were often followed by text messages describing payments that RW was expected to make in order to keep him from being charged with a crime, or to prevent violence from being inflicted upon him.
In addition to one count of threatening extortionate communications, the federal indictment charges Lewis with 18 counts of money laundering for engaging in monetary transactions in criminally derived property. Those transactions allegedly include multiple cash withdrawals at the Bellagio Resort & Casino in Las Vegas, Nev., purchases of luxury items such as a Rolex watch and several automobiles – including a Mercedes Benz, an Aston Martin and a Lamborghini – and paying off the mortgage on his Grandview residence.
The indictment also contains a forfeiture allegation, which would require Lewis to forfeit to the government any property derived from the proceeds of the alleged offenses, including a $3,050,110 money judgment (representing the proceeds obtained by Lewis from the scheme), $1,053,586 that has been seized from his bank accounts, a 2005 Bentley, a 2006 Mercedes Benz, a 2007 Aston Martin, a 2011 Aston Martin, a 2012 Lamborghini Gallardo and a 2013 Chevrolet Camaro.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Jeffrey Valenti. It was investigated by IRS-Criminal Investigation and the Kansas City, Mo., Police Department.Glasgow Man Sentenced for Unlawful Possession of A Firearm by A FelonRead the Press Release
Convicted Felon Shot Off-Duty Policer Officer With a Sawed-off Shotgun
CHARLESTON, W.Va. – United States Attorney Booth Goodwin announced that Nickey Don Smith, II, 39, of Glasgow, West Virginia was sentenced today to eight years in prison and three years of supervised release following a 2012 guilty plea to being a felon in possession of a firearm. In December of 2011, Nickey Don Smith shot Glasgow police officer Steven Smith with a sawed-off shotgun at close range. Officer Smith, unrelated to Nickey Don Smith, and another Glasgow police officer had gone to Nickey Don Smith’s Glass Fire home in response to a 911 call made by Nickey Don Smith. After the officers arrived at the home, they announced “Police Department” twice, while they were making their way up the stairs to the porch. As Officer Smith approached the door, Nickey Don Smith shot him with a sawed off Central Arms 12 gauge shotgun. The shotgun blast struck Officer Smith in the arm, shoulder and the side of his chest, causing serious, permanent and life-threatening injuries and requiring multiple surgeries to repair the damage.
Nickey Don Smith was indicted by a federal grand jury in February of 2012 on two counts of felon in possession of a firearm. He pleaded guilty in June of 2012, and has been awaiting the outcome of psychological testing to determine his competency prior to sentencing. The Honorable John T. Copenhaver, Jr., United States District Court Judge, presided over the sentencing hearing today and issued a 16-page memorandum opinion regarding Nickey Don Smith’s competency. After a comprehensive review of the facts of the case and the reports from three psychologists, the Court concluded that Nickey Don Smith’s “mental disease or defect of his condition – properly diagnosed as Personality Disorder NOS with paranoid, narcissistic and anti-social factors – was not so severe as to render him unable to appreciate the nature and quality or the wrongfulness of his act of possessing a firearm as a convicted felon or his act of maliciously wounding Officer Smith at the time of the commission those acts.”
Former Vermont Corrections Officer Sentenced to 5 Months Incarceration and 5 Months Home Confinement in Connection with Plea to Obstruction of JusticeRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that on October 16, 2014, former Vermont Correctional Officer Tracy Holliman, of South Burlington, was sentenced to 5 months incarceration followed by 5 months home confinement by United States District Court Judge Geoffrey Crawford in Rutland. The Grand Jury initially returned an Indictment charging Holliman with four counts of engaging in sexual acts with women over whom he had custodial authority while they were held in federal custody at the Chittenden Regional Correctional Facility in South Burlington. Court papers explained that Holliman pleaded to obstruction of justice in connection with his efforts to delete emails in which he admitted to some of the originally charged conduct. At the conclusion of the sentencing hearing the Court granted the United States’ motion to dismiss the original Indictment.
It is a federal felony for a correctional officer to engage in sexual acts with a federal inmate over whom the officer has custodial, supervisory, or disciplinary authority, while working at a federal facility or one that that contracts with the United States to house federal detainees. Consent is not a legal defense to corrections staff who engage in sexual acts with inmates. The United States Attorney has noted that this is due to several factors, including the significant power disparity between inmates and correctional staff.
Working in cooperation with the Vermont Department of Corrections, this matter was investigated by the United States Marshals Service, the Federal Bureau of Investigation, and the Vermont State Police.
Holliman is represented by Mark Kaplan, Esq., of Burlington.Former Marlborough Resident Sentenced to 5 Years in Federal Prison for Robbing 5 Connecticut PharmaciesRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that DAVID HANEY, 53, of Marlborough, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 60 months of imprisonment, followed by three years of supervised release, for robbing five Connecticut pharmacies last year.
On November 22, 2013, HANEY was arrested on a criminal complaint charging him with the armed robbery of a CVS store located at 525 Buckland Road in South Windsor. At approximately 7:45 p.m. on September 25, 2013, HANEY entered the store and proceeded to the pharmacy counter. He then asked for the pharmacist by name, showed the pharmacist what appeared to be a firearm that was in his waistband and demanded oxycodone pills. The pharmacist gave HANEY more than 2000 oxycodone pills of different strengths and HANEY exited the store.
On February 19, 2014, HANEY pleaded guilty to one count of interference with commerce by robbery related to the South Windsor CVS robbery. In pleading guilty, HANEY also admitted that he committed similar robberies at a Walgreens on Deming Street in Manchester on September 15, 2013, a Walgreens on Main Street in Meriden on October 3, 2013, a CVS on Main Street in East Hartford on October 11, 2013, and a Walgreens on Talcottville Road in Vernon on November 9, 2013.
HANEY has admitted that he used most of the pills to fuel his own addiction to pain medication and sold the rest. He has been detained since his arrest.
Judge Underhill ordered that HANEY make restitution to the victims.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Drug Enforcement Administration and the South Windsor, East Hartford, Meriden, Vernon, and Manchester Police Departments, with the assistance of other state and local law enforcement agencies. The case was prosecuted by Assistant U.S. Attorney Anthony E. Kaplan.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Former Caregiver Pleads Guilty to Criminal Abuse of A Vulnerable AdultDefendant Struck and Dragged Woman with Cognitive DisabilitiesRead the Press Release
WASHINGTON - A former direct care giver, Sherifat Kofo Yusuff, has pled guilty to criminal abuse of a 50-year-old vulnerable adult, U.S. Attorney Ronald C. Machen, Jr. and District of Columbia Interim Inspector General Blanche L. Bruce announced today.
Yusuff, 53, of Washington, D.C., pled guilty on Oct. 16, 2014, in the Superior Court of the District of Columbia, to one count of criminal abuse of a vulnerable adult. The Honorable Senior Judge Susan R. Winfield sentenced Yusuff to 30 days in jail. The judge suspended the time on the condition that Yusuff successfully completes six months of probation.
According to the government’s evidence, on Feb. 19, 2014, Yusuff worked for Marjul Homes, Inc. (Marjul), which operated a residential group home for individuals with developmental disabilities. Yusuff was a direct support professional with responsibility for caring for vulnerable adults diagnosed with severe developmental and cognitive disabilities. On that day, she transported and accompanied one of the adults to MedStar National Rehabilitation Hospital, where the woman was scheduled to undergo a sleep study.
Shortly after medical staff placed electrodes and sensors on the vulnerable adult, the woman became agitated and attempted to remove those items from her body. Yusuff admitted that she became frustrated with this behavior, struck the woman with an open hand, and dragged her across the floor. These actions were captured on a camera used for the sleep study, and the video was subsequently used by law enforcement in its investigation of the case.
In announcing the guilty plea, U.S. Attorney Machen and Interim Inspector General Bruce praised the work of former Investigator Tracey Chambers, of the Office of the Inspector General Medicaid Fraud Control Unit (MFCU). They also commended the efforts of Assistant U.S. Attorneys William Schurmann and Scott Ray, who worked on the case from the U.S. Attorney’s Office, and Special Assistant U.S. Attorney Brent Wolfingbarger of the MFCU, who jointly prosecuted the case.
14-233Florida Man Pleads Guilty to Role in $14.5 Million Dollar Telemarketing ScamRead the Press Release
Follow @SDILNewsStephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced that on October 20, 2014, Wesley Aldred, 26, of Palm Beach Gardens, FL, pled guilty to one count of conspiracy to commit mail and wire fraud in connection with telemarketing. The investigation determined that Aldred was a telemarketer at C&G Marketing Associates, LLC, a Florida corporation that in 2009 defrauded consumers using the fictitious name, Premier Timeshare Solutions (“PTS”). In various court filings related to the PTS scam, the government has alleged that the overall scam bilked consumers of $14.5 million from over 7,000 people throughout the United States and Canada, including dozens of victims within the Southern District of Illinois. Sentencing is set for February 9, 2015, at 11:00 a.m., in East St. Louis, Illinois, where Aldred will face up to 25 years in prison, a fine of up to $250,000, and up to 5 years of supervised release.
This prosecution is one of nearly 50 timeshare resale fraud prosecutions brought in the Southern District of Illinois over the past four years. The case is part of an ongoing investigation by the St. Louis Field Office of the Chicago Division of the United States Postal Inspection Service with assistance from the Florida Attorney General’s Office and the Florida Department of Agriculture. The case is being prosecuted by Special Assistant United States Attorney Michael Hallock and Assistant United States Attorney William Coonan.
Felon Facing 10 Years in Prison for Illegally Possessing GunRead the Press Release
ERIE, Pa. - A former resident of Erie, Pennsylvania, pleaded guilty in federal court to a charge of violating federal gun laws, United States Attorney David J. Hickton announced today.
Kenneth Hugh Hawkins, 36, pleaded guilty to one count before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that on or about August 7, 2013, Hawkins possessed a firearm while being a convicted felon
Judge Cercone scheduled sentencing for February 23, 2015 at 2:15 p.m. The law provides for a total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Marshall J. Piccinini is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Erie Police Department conducted the investigation that led to the prosecution of Hawkins.
Federal Jury in Del Rio Convicts Los Zetas Cartel Drug DealerRead the Press Release
A member of a drug trafficking organization with ties to the Los Zetas Cartel operating in Piedras Negras, Mexico, faces up to life in federal prison after a jury convicted him of smuggling thousands of kilograms of marijuana into the United States from Mexico announced United States Attorney Robert Pitman, Christopher Combs, Federal Bureau of Investigation (FBI) Special Agent in Charge of the San Antonio Division, Janice Ayala, Homeland Security Investigations Special Agent in Charge, San Antonio, and Joseph M. Arabit, Drug Enforcement Administration Special Agent in Charge, Houston Division.
On October 16, 2014, jurors convicted 20–year-old Servando Benitez-Reynoso of one count of conspiracy to possess with the intent to distribute 1,000 kilograms or more of marijuana and one count of possession with the intent to distribute 1,000 kilograms or more of marijuana. The jurors found him not guilty of conspiracy to commit bulk cash smuggling and one count of bulk cash smuggling.
According to courtroom testimony, Benitez-Reynoso was the organizer for the drug trafficking organization in the United States who was responsible for coordinating the movement of marijuana loads from the Quemado, TX, and Normandy, TX, areas to San Antonio and Austin between September 27, 2012, and July 31, 2013. Benitez-Reynoso scouted for the load vehicles and coordinated the route of travel to avoid detection. Bundles of marijuana, smuggled across the river into Quemado were transported to stash houses in Eagle Pass, TX. From there, the marijuana was transported to stash houses in San Antonio and Austin where it would be further broken down and distributed to other locations. Evidence presented during the trial also showed that Benitez-Reynoso attempted to influence the testimony of witnesses.
On July 31, 2013, Benitez-Reynoso was arrested in Eagle Pass while scouting for a load of marijuana. He will remain in federal custody pending sentencing. Sentencing is scheduled for February, 2014, in Del Rio.
This case was investigated by special agents with the Federal Bureau of Investigation, Homeland Security Investigations and Drug Enforcement Administration together with the U.S. Border Patrol, U.S. Marshal Service, Austin Police Department, Houston Police Department, and Brookshire Police Department.Falmouth Man Sentenced to over 10 Years on Cocaine and Firearms ChargesRead the Press Release
Contact: Julia M. Lipez
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Adam
White, 27, of Falmouth, Maine, was sentenced today in U.S. District Court to 130 months in prison for possession with intent to distribute more than 500 grams of cocaine and possession of a firearm in furtherance of a drug trafficking crime. White also was sentenced to 5 years of supervised release. White pleaded guilty in June 2014.Court records reveal that on February 12, 2013, law enforcement officers stopped
White’s vehicle in Portland after investigation had revealed that he planned to conduct a drug transaction. The officers found about 400 grams of cocaine in the trunk of the car and a handgun and loaded magazine near the driver’s seat. Officers searched White’s home in Falmouth later that day and seized about 3 kilograms of cocaine, over $13,000 in cash, other items consistent with drug trafficking and a loaded handgun.The investigation was conducted by the Maine Drug Enforcement Agency; the U.S. Drug
Enforcement Administration; the Maine State Police; and the Portland, South Portland and
Falmouth Police Departments.Fajita Grill Owners Sentenced for Hiring Undocumented Aliens and False StatementsRead the Press Release
Contacts: Julia M. Lipez and James W. Chapman, Jr.
Assistant United States Attorneys
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that brothers, Guillermo Fuentes of Westbrook, Maine and Hector Fuentes of Waterville, Maine, were sentenced today in U.S. District Court for hiring ten or more undocumented aliens in a twelve-month period and making false statements. Guillermo Fuentes was sentenced to 37 months in prison to be followed by 2 years of supervised release. Hector
Fuentes was sentenced to 30 months in prison to be followed by 1 year of supervised release. Both were ordered to forfeit over $48,000 that was seized in connection with the investigation. The defendants pleaded guilty on June 16, 2014.Court records reveal that the charges relate to the hiring of undocumented workers at the Fajita Grill restaurant in Westbrook, Maine, and to post-arrest statements the defendants made to law enforcement officers in September 2011 in which they falsely stated, among other things, that federally required documentation regarding the immigration status of employees had been properly completed.
The investigation was conducted by the U.S. Immigration & Customs Enforcement’s
Homeland Security Investigations and the U.S. Department of Labor, Office of Inspector
General.Erie Man Pleads Guilty to Child Exploitation ChargeRead the Press Release
ERIE, Pa. - A resident of Erie, Pennsylvania, pleaded guilty in federal court to a charge of violating federal laws relating to the sexual exploitation of children, United States Attorney David J. Hickton announced today.
Graham K. Yahn, 27, pleaded guilty to one count before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that Yahn received and possessed computer images depicting minors engaging in sexually explicit conduct.
Judge Cercone scheduled sentencing for February 23, 2015 at 3:00 p.m. The law provides for a total sentence of 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued Yahn on bond.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Pennsylvania State Police conducted the investigation that led to the prosecution of Yahn.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.