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16 October 2014
Two Former Rabobank Traders Indicted for Alleged Manipulation of U.S. Dollar, Yen Libor Interest RatesRead the Press Release
Two former Coöperatieve Centrale Raiffeisen-Boerenleenbank B.A. (Rabobank) derivative traders – including the bank’s former Global Head of Liquidity & Finance in London – have been charged in a superseding indictment for their alleged roles in a scheme to manipulate the U.S. Dollar (USD) and Yen London InterBank Offered Rate (LIBOR), a benchmark interest rate to which trillions of dollars in interest rate contracts were tied, the Justice Department announced today. Six former Rabobank employees have now been charged in the Rabobank LIBOR investigation.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Deputy Assistant Attorney General Brent Snyder of the Justice Department’s Antitrust Division and Assistant Director in Charge Andrew G. McCabe of the FBI’s Washington Field Office made the announcement.
Earlier today, a federal grand jury in the Southern District of New York returned a superseding indictment charging Anthony Allen, 43, of Hertsfordshire, England; and Anthony Conti, 45, of Essex, England, with conspiracy to commit wire fraud and bank fraud and with substantive counts of wire fraud for their participation in a scheme to manipulate the USD and Yen LIBOR rate in a manner that benefitted their own or Rabobank’s financial positions in derivatives that were linked to those benchmarks.
The indictment also charges Tetsuya Motomura, 42, of Tokyo, Japan, and Paul Thompson, 48, of Dalkeith, Australia, who were charged in a prior indictment with Paul Robson, a former Rabobank LIBOR submitter. In addition to adding as defendants Allen and Conti, the superseding indictment alleges a broader conspiracy to manipulate both the USD LIBOR and the Yen LIBOR.
Robson and Takayuki Yagami, a former Rabobank derivatives trader, each pleaded guilty earlier this year to one count of conspiracy in connection with their roles in the scheme.
“Today, we have charged two more members of the financial industry with influencing Dollar LIBOR and Yen LIBOR to gain an illegal advantage in the market, unfairly benefitting their own trading positions in financial derivatives,” said Assistant Attorney General Caldwell. “LIBOR is a key benchmark interest rate that is relied upon to be free of bias and self-dealing, but the conduct of these traders was as galling as it was greedy. Today’s charges are just the latest installment in the Justice Department’s industry-wide investigation of financial institutions and individuals who manipulated global financial rates.”
“With today’s charges against Messrs. Allen and Conti, we continue to reinforce our message to the financial community that we will not allow the individuals who perpetrate these crimes to hide behind corporate walls,” said Deputy Assistant Attorney General Snyder. “This superseding indictment, with its charges against Mr. Allen, makes an especially strong statement to managers in financial institutions who devise schemes to undermine fair and open markets but leave the implementation – and often the blame – with their subordinates.”
“With today’s indictments the FBI’s investigation into Rabobank’s manipulation of LIBOR benchmark rates expands in scope to include the U.S. Dollar,” said Assistant Director in Charge McCabe. “I would like to thank the special agents, forensic accountants, and analysts, as well as the prosecutors who have worked to identify and stop those who hide behind complex corporate and securities fraud schemes.”
According to the superseding indictment, at the time relevant to the charges, LIBOR was an average interest rate, calculated based on submissions from leading banks around the world, reflecting the rates those banks believed they would be charged if borrowing from other banks. LIBOR was published by the British Bankers’ Association (BBA), a trade association based in London. LIBOR was calculated for 10 currencies at 15 borrowing periods, known as maturities, ranging from overnight to one year. The published LIBOR “fix” for U.S. Dollar and Yen currency for a specific maturity was the result of a calculation based upon submissions from a panel of 16 banks, including Rabobank.
LIBOR serves as the primary benchmark for short-term interest rates globally and is used as a reference rate for many interest rate contracts, mortgages, credit cards, student loans and other consumer lending products.
Rabobank entered into a deferred prosecution agreement with the Department of Justice on Oct. 29, 2013, and agreed to pay a $325 million penalty to resolve violations arising from Rabobank’s LIBOR submissions.
According to allegations in the superseding indictment, Allen, who was Rabobank’s Global Head of Liquidity & Finance and the manager of the company’s money market desk in London, put in place a system in which Rabobank employees who traded in derivative products linked to USD and Yen LIBOR regularly communicated their trading positions to Rabobank’s LIBOR submitters, who submitted Rabobank’s LIBOR contributions to the BBA. Motomura, Thompson, Yagami and other traders entered into derivative contracts containing USD or Yen LIBOR as a price component and they asked Conti, Robson, Allen and others to submit LIBOR contributions consistent with the traders’ or the bank’s financial interests, to benefit the traders’ or the banks’ trading positions. Conti, who was based in London and Utrecht, Netherlands, served as Rabobank’s primary USD LIBOR submitter and at times acted as Rabobank’s back-up Yen LIBOR submitter. Robson, who was based in London, served as Rabobank’s primary submitter of Yen LIBOR. Allen, in addition to supervising the desk in London and money market trading worldwide, occasionally acted as Rabobank’s backup USD and Yen LIBOR submitter. Allen also served on a BBA Steering Committee that provided the BBA with advice on the calculation of LIBOR as well as recommendations concerning which financial institutions should sit on the LIBOR contributor panel.
The charges in the superseding indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
The investigation is being conducted by special agents, forensic accountants and intelligence analysts in the FBI’s Washington Field Office. The prosecution is being handled by Senior Litigation Counsel Carol L. Sipperly and Trial Attorney Brian R. Young of the Criminal Division’s Fraud Section and Trial Attorney Michael T. Koenig of the Antitrust Division. The Criminal Division’s Office of International Affairs has provided assistance in this matter.
The Justice Department expresses its appreciation for the assistance provided by various enforcement agencies in the United States and abroad. The Commodity Futures Trading Commission’s Division of Enforcement referred this matter to the department and, along with the U.K. Financial Conduct Authority, has played a major role in the LIBOR investigation. The Securities and Exchange Commission also has played a significant role in the LIBOR series of investigations, and the department expresses its appreciation to the United Kingdom’s Serious Fraud Office for its assistance and ongoing cooperation. The department has worked closely with the Dutch Public Prosecution Service and the Dutch Central Bank in the investigation of Rabobank. Various agencies and enforcement authorities from other nations are also participating in different aspects of the broader investigation relating to LIBOR and other benchmark rates, and the department is grateful for their cooperation and assistance.
This prosecution is part of efforts underway by President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets and recover proceeds for victims of financial crimes. For more information about the task force visit: www.stopfraud.com.
Two Defendants Charged in “Email Takeover” ScamRead the Press Release
SAN JOSE – Bernard Ogie Oretekor, a/k/a “Emmanuel Libs,” and Chantale Petit-Frere were indicted by a federal grand jury yesterday for stealing money from multiple victims through an email takeover scam and “Nigerian Fraud” scheme, announced United States Attorney Melinda Haag and Internal Revenue Service, Criminal Investigation, Special Agent in Charge José M. Martinez.
Oretekor, 43, of Ellenwood, Ga., and Petit-Frere, 47, of Brooklyn, N.Y., were charged with conspiracy to commit wire fraud and six substantive counts of wire fraud. Oretekor was also charged with seven counts of money laundering. According to the indictment, the defendants received funds as a result of an email takeover scam, in which the victims were sent so-called “phishing” emails to capture their usernames and account passwords. The phishing emails were designed to trick victims into clicking on a link that delivered them to a fraudulent website created to look like its legitimate counterpart. When a victim logged into the fraudulent website, her username and password for that account were captured, allowing an imposter to access the victim’s account, review its contents, and send and receive e-mails posing as the victim.
According to the indictment, the fraud began when an imposter, who had gained access to the victim’s email accounts through a phishing email, sent an email from the victim’s Yahoo or Google email account, posing as the victim and directing his or her bookkeeper, financial advisor, or bank officer to transfer funds from the victim’s account. The imposter also set up filters in the victim’s account so that any emails from those persons would go directly to the victim’s “trash” folder. The filters ensured that the victim would not likely see any emails pertaining to the fraudulent transactions. The indictment details how the email takeovers resulted in unauthorized wire transfers of over $500,000 from four victims, and an additional $330,000 in attempted transfers that were identified as fraudulent in time to be reversed.
The indictment further alleges that the defendants used a “Nigerian Scam” scheme against a father and son from New Mexico, stealing over $200,000 from them. The “Nigerian Scam” refers generally to a fraud in which the perpetrator, often posing as a current or former high-ranking official from a foreign government, convinces a victim that he will receive a substantial sum of money in return for paying certain “taxes” or “fees” needed to release that money. In this case, according to the indictment, the defendants represented that they were diplomats attached to the South African embassy and that there was a “consignment box” containing $19M that was “tied up in Customs” but that would be released, and the proceeds split, if the victims paid the necessary “fees” and “taxes.
The indictment further alleges that after the victims in New Mexico ran out of money, the defendants converted them into unwitting “money mules” – a term that refers to persons who receive fraudulent funds into their bank account and distribute them as directed by the fraudsters. The indictment also describes how the defendants were eventually introduced to an undercover officer, who posed as the “cousin” of the New Mexico victims and, through this ruse, as able to deal with the defendants directly.
The defendants were arrested on Oct. 7, 2014, pursuant to arrest warrants issued by the Honorable Paul S. Grewal, United States Magistrate Judge. Oretekor was arrested in Ellenwood, Ga., and Petit-Frere in Brooklyn, N.Y. Both remain in custody.
The maximum penalty for conspiracy to commit wire fraud and wire fraud, in violation of 18 U.S.C. §§ 1349 and 1343, respectively, is 30 years in prison and a $1,000,000 fine. The maximum penalty for money laundering, in violation of 18 U.S.C. § 1956(a)(1)(B)(i), is 20 years in prison and a $500,000 fine.
The prosecution is the result of an investigation initiated by the Regional Enforcement Allied Computer Team (REACT) Task Force in San Jose. REACT partnered with IRS Criminal Investigation – Oakland Field Office to expand the scope of the investigation. The United States Secret Service – Atlanta Field Office, as well as U.S. ICE HSI – New York (Brooklyn), also provided valuable support. Assistant United States Attorney David R. Callaway is prosecuting the case with the assistance of Elise Etter.
Please note that an indictment contains only allegations. As with all defendants, Bernard Ogie Oretekor and Chantale Petit-Frere must be presumed innocent unless and until proven guilty.
(Oretekor indictment )
Two Brothers Plead Guilty to $1.2 Million K2 Distribution at Lebanon StoreRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that two brothers have pleaded guilty to a mail fraud scheme that involved the distribution of more than $1.2 million of synthetic marijuana, commonly referred to as K2, from a store in Lebanon, Mo.
Eric Scott Reynolds, 32, of Lebanon, Mo., pleaded guilty before U.S. District Judge Beth Phillips on Wednesday, Oct. 15, 2014, to conspiracy to commit mail fraud and conspiracy to commit money laundering. His brother, Stephen Brian Reynolds, 35, of Eldridge, Mo., pleaded guilty on Aug. 15, 2014, to his role in the mail fraud conspiracy and to one count of money laundering.
Stephen Reynolds is the owner of Lucky’s Novelties in Lebanon, which distributed K2. Eric Reynolds is employed at Lucky’s Novelties.
By pleading guilty, Eric and Stephen Reynolds admitted that they participated in a conspiracy to commit mail fraud from March 1, 2011, to Dec. 11, 2012. They defrauded the Food and Drug Administration and the public by using mail deliveries in a conspiracy to distribute several products that were labeled as “incense” or “potpourri” and “not for human consumption,” when in reality these substances were synthetic marijuana intended for human consumption as a drug.
Between Sept. 15, 2011, and July 25, 2012, Eric and Stephen Reynolds deposited $1,245,761 in proceeds from the distribution of K2 into bank accounts and a safety deposit box. Based upon DEA undercover purchases, they charged approximately $1 for every 300 mg of K2. Therefore, they distributed approximately 373 kilograms of K2.
Eric and Stephen Reynolds must forfeit to the government $1,167,990, which they obtained in proceeds from the distribution of K2, real estate in Eldridge, funds in bank accounts, approximately $128,000 that was seized from Stephen Reynolds’s residence and a safe deposit box, a 2012 Jeep Grand Cherokee, a 2007 Ducati 1098 motorcycle, three pistols, two rifles and a shotgun.
This case is being prosecuted by Supervisory Assistant U.S. Attorney Michael S. Oliver. It was investigated by the Drug Enforcement Administration, IRS-Criminal Investigations, the Laclede County, Mo., Sheriff’s Department, the Lebanon, Mo., Police Department and the Lake Area Narcotics Enforcement Group (LANEG).
Ten Additional Alleged Members of the Almighty Imperial Gangsters Nation Gang IndictedRead the Press Release
Ten alleged members of the violent Almighty Imperial Gangsters Nation gang have been indicted by a federal grand jury in the Southern District of Florida for their roles in various murders in Miami, Chicago, and East Chicago. Fifteen alleged members of the gang have now been charged by the Justice Department in this case.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Special Agent in Charge Robert J. Holley of the FBI’s Chicago Field Office, and Special Agent in Charge George L. Piro of the FBI’s Miami Field Office made the announcement.
The second superseding indictment returned by a federal grand jury on Oct. 9, 2014, and unsealed today, charges Robert Martinez, aka “Trap,” 20, of Miami, along with Rogelio Perez, aka “Popeye,” 40, Eddie Camacho, aka “NeNe,” 35, Miguel Pedraza, aka “Fuzzy,” 33, Ryan Perez, aka “Lil Dk,” 32, Carlos Mena, aka “Rollo,” 33, Carlos Gomez, aka “Lokes,” 35, and Guillermo Sinisterra, aka “Memo,” 26, all of Chicago, with conspiracy to participate in racketeering activity, including murder. Piero Benitez, aka “Bam Bam,” 27, of Skokie, Illinois, was charged with murder in aid of racketeering, and Santiago Salcedo, aka “Chino,” 25, of Miami, was charged with conspiracy to commit murder in aid of racketeering. Alleged fellow gang members Jose Herrera, aka “Spyro,” 27, Leonel Carrera, aka “Leo,” 25, Victor Lopez, aka “Magic,” Ramon Madruga, aka “Porky” 28, and Alex Enrique Somarriba, aka “A-Rock,” 28, all of Chicago, were previously charged in the superseding indictment unsealed in this case on Aug. 4, 2014, and remain charged in the second superseding indictment.
According to the second superseding indictment, all fifteen defendants are members of the Almighty Imperial Gangsters Nation, which is a nationally-known organized street gang that originated in the near northwest side of Chicago and spread to other regions of the United States, including South Florida. Members and associates of the Almighty Imperial Gangsters Nation allegedly engaged in acts of violence, including murder, attempted murder, battery, aggravated battery, and aggravated assault, as well as narcotics distribution and other criminal activities. Specifically, the indictment charges that the gang is responsible for twelve murders in Miami, Chicago and East Chicago, Indiana between 1985 and 2011, including the murder of a state prosecution witness whose cooperation with law enforcement ultimately led to the conviction of the gang’s South Florida leader, Victor Lopez, on cocaine distribution charges.
The charges contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
This case is being investigated by the FBI field offices in Chicago, Miami, and Merrillville, Indiana, and the Bureau of Alcohol, Tobacco, Firearms and Explosives field office in Merrillville, Indiana, along with the Miami-Dade Police Department, the City of Miami Police Department, the Chicago Police Department, the Franklin Park, Illinois, Police Department, and the East Chicago, Indiana Police Department. The Florida Department of Corrections and the Broward County Sheriff’s Office also assisted with this case.
The case is being prosecuted by Joseph A. Cooley and Rebecca A. Staton of the Criminal Division’s Organized Crime and Gang Section, as well as the Forfeiture Section of the U.S. Attorney’s Office for the Southern District of Florida, with the assistance of the U.S. Attorneys’ Offices for the Northern District of Indiana and the Northern District of Illinois, as well as the State Attorneys’ Offices for Miami-Dade and Broward Counties in Florida and Cook County in Illinois.
Ten Additional Alleged Members of the Almighty Imperial Gangsters Nation Gang IndictedRead the Press Release
Gang Allegedly Responsible For Multiple Murders in Illinois, Indiana, and Florida
Ten alleged members of the violent Almighty Imperial Gangsters Nation gang have been indicted by a federal grand jury in the Southern District of Florida for their roles in various murders in Miami, Chicago, and East Chicago. Fifteen alleged members of the gang have now been charged by the Justice Department in this case.
U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Special Agent in Charge Robert J. Holley of the FBI’s Chicago Field Office, and Special Agent in Charge George L. Piro of the FBI’s Miami Field Office made the announcement.
The second superseding indictment returned by a federal grand jury on Oct. 9, 2014, and unsealed today, charges Robert Martinez, aka “Trap,” 20, of Miami, along with Rogelio Perez, aka “Popeye,” 40, Eddie Camacho, aka “NeNe,” 35, Miguel Pedraza, aka “Fuzzy,” 33, Ryan Perez, aka “Lil Dk,” 32, Carlos Mena, aka “Rollo,” 33, Carlos Gomez, aka “Lokes,” 35, and Guillermo Sinisterra, aka “Memo,” 26, all of Chicago, with conspiracy to participate in racketeering activity, including murder. Piero Benitez, aka “Bam Bam,” 27, of Skokie, Illinois, was charged with murder in aid of racketeering, and Santiago Salcedo, aka “Chino,” 25, of Miami, was charged with conspiracy to commit murder in aid of racketeering. Alleged fellow gang members Jose Herrera, aka “Spyro,” 27, Leonel Carrera, aka “Leo,” 25, Victor Lopez, aka “Magic,” Ramon Madruga, aka “Porky” 28, and Alex Enrique Somarriba, aka “A-Rock,” 28, all of Chicago, were previously charged in the superseding indictment unsealed in this case on Aug. 4, 2014, and remain charged in the second superseding indictment.
According to the second superseding indictment, all fifteen defendants are members of the Almighty Imperial Gangsters Nation, which is a nationally-known organized street gang that originated in the near northwest side of Chicago and spread to other regions of the United States, including South Florida. Members and associates of the Almighty Imperial Gangsters Nation allegedly engaged in acts of violence, including murder, attempted murder, battery, aggravated battery, and aggravated assault, as well as narcotics distribution and other criminal activities. Specifically, the indictment charges that the gang is responsible for twelve murders in Miami, Chicago and East Chicago, Indiana between 1985 and 2011, including the murder of a state prosecution witness whose cooperation with law enforcement ultimately led to the conviction of the gang’s South Florida leader, Victor Lopez, on cocaine distribution charges.
The charges contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
This case is being investigated by the FBI field offices in Chicago, Miami, and Merrillville, Indiana, and the Bureau of Alcohol, Tobacco, Firearms and Explosives field office in Merrillville, Indiana, along with the Miami-Dade Police Department, the City of Miami Police Department, the Chicago Police Department, the Franklin Park, Illinois, Police Department, and the East Chicago, Indiana Police Department. The Florida Department of Corrections and the Broward County Sheriff’s Office also assisted with this case.
The case is being prosecuted by Joseph A. Cooley and Rebecca A. Staton of the Criminal Division’s Organized Crime and Gang Section, as well as the Forfeiture Section of the U.S. Attorney’s Office for the Southern District of Florida, with the assistance of the U.S. Attorneys’ Offices for the Northern District of Indiana and the Northern District of Illinois, as well as the State Attorneys’ Offices for Miami-Dade and Broward Counties in Florida and Cook County in Illinois.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Sentencings for October 9 - October 16, 2014Read the Press Release
Naomi Oakley-Bonner, 36 of Douglas, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on October 16, 2014, for being a felon in possession of a firearm. Oakley-Bonner was arrested in Douglas, Wyoming. She received 21 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Tyrone Carey, 38, of Douglas, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on October 15, 2014, for being a felon in possession of a firearm. Carey was arrested in Douglas, Wyoming. He received 51 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Nicolas Counts, 28, of Bar Nunn, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on October 15, 2014, for aiding and abetting mail fraud. He received 60 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Rogaciano Escalante, aka Rogaciano Escalante-Rodriguez, 53, of Mexico, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on October 15, 2014, for illegal re-entry of a previously deported alien into the United States. Escalante was arrested in Pinedale, Wyoming. He received time served, plus ten days, was ordered to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Jose Perez-Cortez, 26, of Mexico, was sentenced by Federal District Court Judge Alan B. Johnson on October 15, 2014, for illegal re-entry of a previously deported alien into the United States. Perez-Cortez was arrested in Jackson, Wyoming. He received time served, plus ten days, was ordered to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Kenneth Shannon Miller, 43, of Green River, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on October 15, 2014, for possession with intent to distribute 500 grams or more of methamphetamine. Miller was arrested in Casper, Wyoming. He received 188 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment and a $500.00 fine. This case was investigated by the Casper Police Department, the Natrona County Sheriff’s office and the Wyoming Division of Criminal Investigation.
Kyle James Tillia, 25, of Harrisville, Pennsylvania, was sentenced by Federal District Court Judge Alan B. Johnson on October 14, 2014, for possession with intent to distribute less than 50 kilograms of marijuana and aiding and abetting. Tillia was arrested near Green River, Wyoming. He received 31 months imprisonment, to be followed by two years of supervised release, and was ordered to pay a $100.00 special assessment and a $500.00 fine. This case was investigated by the Wyoming Division of Criminal Investigation.
Holly Dawn Hatch, 35, of Gillette, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on October 14, 2014, for conspiracy to possess with intent to distribute, and to distribute 500 grams or more of methamphetamine. Hatch was arrested in Gillette, Wyoming. She received 80 months imprisonment, to be followed by four years of supervised release, and was ordered to pay a $100.00 special assessment and a $900.00 fine. This case was investigated by the Wyoming Division of Criminal Investigation and the U.S. Drug Enforcement Administration.
Shawn Richard Nikkila, 31, of Gillette, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on October 14, 2014, for conspiracy to possess with intent to distribute, and to distribute 50 grams or more of methamphetamine. Nikkila was arrested in Gillette, Wyoming. He received 60 months imprisonment, to be followed by four years of supervised release, and was ordered to a $100.00 special assessment and a $900.00 fine. This case was investigated by the Wyoming Division of Criminal Investigation and the U.S. Drug Enforcement Administration.
Joseph D. Stewart, 25, of Cheyenne, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on October 14, 2014, for conspiracy to possess with intent to distribute, and to distribute 500 grams or more of methamphetamine. Stewart was arrested in Cheyenne, Wyoming. He received 120 months imprisonment, to be followed by five years of supervised release, and was ordered to pay a $100.00 special assessment. This case was investigated by the U.S. Drug Enforcement Administration, the Internal Revenue Service and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Thomas Felix Aflague, Jr., 36, of Cheyenne, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on October 14, 2014, for conspiracy to possess with intent to distribute, and to distribute 500 grams or more of methamphetamine. Aflague was arrested in Cheyenne, Wyoming. He received 200 months imprisonment, to be followed by five years of supervised release, and was ordered to pay a $100.00 special assessment and a$1,400.00 fine. This case was investigated by the U.S. Drug Enforcement Administration, the Internal Revenue Service and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Cody D. Nace, 30, of Cheyenne, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on October 14, 2014, for conspiracy to possess with intent to distribute, and to distribute 500 grams or more of methamphetamine. Nace was arrested in Cheyenne, Wyoming. He received 120 months imprisonment, to be followed by five years of supervised release, and was ordered to pay a $100.00 special assessment and a $500.00 fine. This case was investigated by the U.S. Drug Enforcement Administration, the Internal Revenue Service and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Michael Anthony Antonini IV, 21, of New Castle, Pennsylvania, was sentenced by Federal District Court Judge Alan B. Johnson on October 9, 2014, on one count of possession with intent to distribute methamphetamine and aiding and abetting and one count of possession with intent to distribute less than 50 kilograms of marijuana and aiding and abetting. Antonini was arrested near Green River, Wyoming. He received 31 months imprisonment, to be followed by two years of supervised release, and was ordered to pay a $100.00 special assessment and a $500.00 fine. This case was investigated by the Wyoming Division of Criminal Investigation.
Second Superseding Indictment Returned<br /> Against Fnd Gang MembersRead the Press Release
U.S. Attorney Kenneth A. Polite, Jr., announced the return of a second superseding indictment charging members of the Frenchmen/Derbigny gang, or “FnD,” with violating federal drug and firearm laws. A federal grand jury returned the second superseding indictment today against TRAVIS SCOTT, a/k/a “Trap” or “Slim,” age 30; STANLEY SCOTT, a/k/a “Stizzle,” age 22; SHAWN SCOTT, a/k/a “Shizzle,” age 25; AKEIN SCOTT, a/k/a “Keemy,” age 21; JEREMIAH JACKSON, a/k/a “Rocky,” age 24; BRIAN BENSON, a/k/a “Dub” or “Dubba,” age 30; and CRYSTAL SCOTT, a/k/a “Chris,” age 33. All defendants are residents of New Orleans.
The second superseding indictment contains all of the charges of the prior indictment, including the shooting perpetrated by SHAWN SCOTT and AKEIN SCOTT on May 12, 2013. The indictment adds four additional charges of discharging firearms in furtherance of drug trafficking. These charges include a March 22, 2012, shooting perpetrated by STANLEY SCOTT, AKEIN SCOTT, and JEREMIAH JACKSON; a March 25, 2012, shooting committed by TRAVIS SCOTT, STANLEY SCOTT, and AKEIN SCOTT; a July 16, 2012, shooting by STANLEY SCOTT and AKEIN SCOTT; and an August 4, 2012, shooting by STANLEY SCOTT, SHAWN SCOTT, and AKEIN SCOTT. The indictment also alleges that JEREMIAH JACKSON possessed a firearm in furtherance of drug trafficking on August 20, 2013. All defendants are presently in custody pending trial.
If convicted of any of the additional shootings in furtherance of drug trafficking, the defendants face a mandatory sentence of 10 years of imprisonment to be served consecutive with any other sentence, a $250,000.00 fine, and five years of supervised release. For the additional charge of possession of a firearm in furtherance of a drug trafficking crime, JEREMIAH JACKSON could receive a sentence of 5 years of imprisonment to be served consecutive with any other sentence, a $250,000.00 fine, and five years of supervised release.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives as part of the metro area’s Multi-Agency Gang Unit (MAG). As an integral component of NOLA FOR LIFE’s Group Violence Reduction Strategy, the MAG Unit consists of a partnership with New Orleans Police Department (NOPD); Orleans Parish District Attorney’s Office (DA); Orleans Parish Sheriff’s Office (OPSO); Louisiana State Police (LSP); Parole Board of the Louisiana Department of Corrections; United States Attorney’s Office (USAO); Federal Bureau of Investigation (FBI); Drug Enforcement Administration (DEA); United States Marshal’s Service (USMS); and the United States Probation & Parole Office for the Eastern District of Louisiana.
U. S. Attorney Polite reiterated that the indictment is merely a charge and that the guilt of the defendants must be proven beyond a reasonable doubt.
The prosecution is being handled by Assistant United States Attorney Matthew Payne and Special Assistant United States Attorney Brian Ebarb, who is assigned from the Orleans Parish District Attorney’s Office.
(Download Superseding Indictment )
Rutland Man Sentenced to over Seven Years Imprisonment for Federal Conviction for Heroin Distribution and Unlawful Firearm PossessionRead the Press Release
The Office of the United States Attorney for the District of Vermont stated Chief Judge Christina Reiss, of the United States District Court, sentenced Joshua Minix (a.k.a. “Face”), 38, of Rutland, Vermont to 87 months imprisonment for conspiring to distribute heroin in the Rutland area and possessing a firearm while unlawfully using controlled substances. Court records indicate that his sentencing was also based on his distribution of Oxycontin pills and cocaine powder. In addition, Judge Reiss sentenced Minix to five years supervised release, to be served after he completes his jail sentence. She also recommended to the Bureau of Prisons that Minix participate in the 500-hour substance abuse program for federal inmates.
Minix previously pled guilty to conspiring to distribute heroin in the Rutland area in 2013-13 and unlawful possession of a firearm by a drug user. The Pre-Sentence Report found that Minix was involved in distributing at least 380 grams of heroin, 18,000 Oxycontin (30 mg) pills, and 45 grams of crack cocaine. The defendant distributed drugs while living on Park Avenue in Rutland City. Judge Reiss recently sentenced Terrence Chenault, another Park Avenue resident, to 87 months in prison for distributing heroin and cocaine base. Minix received enhancements to his guideline range for obstructing justice, possessing firearms, and armed robberies of other drug dealers. The Court found that the Minix had obstructed justice by drafting two false affidavits for two witnesses to his unlawful possession of a firearm in an attempt to get their subpoenas to the grand jury quashed.The Government stated in its sentencing memorandum that “heroin and other opiates are wreaking havoc in Rutland and many other Vermont communities” and “a strong message from the Court needs to be continually sent to narcotic dealers that spreading their poison in the community will result in a lengthy jail sentence.” The Government stated that a significant sentence was also warranted here to protect the community from the defendant because the defendant had shown that he returns to drug dealing whenever he is released from jail.
The United States is represented by Assistant U.S. Attorney Joseph Perella while the defendant is represented by William Kraham, Esq. This case was jointly investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Vermont Drug Task Force, the Drug Enforcement Administration, and the Federal Bureau of Investigation.Romanian Nationals Sentenced for Their Participation in ATM Skimming SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Miami Field Office, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce that Gheorghe Adrian Lupu, 47, Nicolai Ceausescu, 39, Claudiu Florin Iordache, 23, Victor Ticus, 45, Marinel Aurelian Capra, 32, and Florian Laurentiu Nicola, 40, were sentenced yesterday for conspiracy to commit bank fraud. The defendants are Romanian nationals without known permanent addresses in the United States. Before their arrests, they were living in Miami. Lupu was sentenced to 33 months in prison, Ceausescu was sentenced to 78 months in prison, Iordache was sentenced to 57 monthsin prison, Ticus was sentenced to 82 months in prison, Capra was sentenced to 63 months in prison, and Nicola was sentenced to 74 months in prison.
According to the defendants’ admissions at their plea hearings and the parties’ submissions at sentencing, the defendants engaged in a scheme known as ATM “skimming.” The defendants operated this scheme by placing skimming devices and pinhole cameras on ATMs. The skimming devices fit over the ATMs’ card slots, such that ATM cards inserted into an ATM first passed through the skimming device. The skimming devices looked like parts of the ATMs themselves, so that customers were not aware that a device had been attached to the ATMs. The skimming devices allowed the ATMs to function properly, but first recorded the data encoded on the bank customers’ ATM cards. At the same time, the pinhole cameras surreptitiously recorded the customers’ PINs. The defendants then made counterfeit ATM cards by re-encoding the magnetic strips on other cards, such as gift cards. Using the counterfeit cards and the recorded PINs, the defendants made unauthorized withdrawals from the customers’ bank accounts. In total, the defendants installed skimming devices on ATMs on 53 occasions known to the government, after which they withdrew $340,584 from 314 accounts.
A seventh defendant, Laurentiu Grimberg, was previously sentenced to 63 months in prison.
Mr. Ferrer commended the investigative efforts of ICE-HSI and the FBI. This case was prosecuted by Assistant U.S. Attorney Marc Osborne.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Romanian Man Sentenced for Role in International Fraud Scheme Involving Online Marketplace WebsitesRead the Press Release
A Romanian man was sentenced today to 24 months in prison for his role in receiving and sending overseas approximately $320,000 in illicit proceeds derived from an international fraud scheme involving online marketplace websites.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney David Rivera of the Middle District of Tennessee made the announcement. U.S. District Judge Aleta A. Trauger of the Middle District of Tennessee imposed the sentence.
Alexandru Stanciu, 36, of Bucharest, Romania, was indicted by a federal grand jury in August 2013 and pleaded guilty to one count of conspiracy to commit bank and wire fraud in February 2014. In addition to his prison term, Stanciu was ordered to pay $305,106 in restitution.
According to statements at his plea hearing, Stanciu’s co-conspirators fraudulently listed vehicles for sale at online marketplaces such as eBay. When victims expressed interest in purchasing the vehicles, co-conspirators responded with emails directing the victims to wire payments to specified bank accounts. These bank accounts were opened by Stanciu, using false identities and fraudulent documents, including counterfeit passports, between December 2011 and July 2013. In total, 17 victims sent approximately $321,389 to accounts opened by Stanciu. Stanciu subsequently sent the bulk of the money to co-conspirators located overseas.
The case is being investigated by the FBI and the Tennessee Bureau of Investigation and prosecuted by Senior Counsel Mysti Degani of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Byron M. Jones of the Middle District of Tennessee.
Rollin 60s Cripts Gang Member, Quenshey Mitchell, Sentenced to Life in Prison for Heroin Conspiracy and Obstruction of Justice Involving Murder of A Federal WitnessRead the Press Release
U.S. Attorney Kenneth A. Polite announced that QUENSHEY MITCHELL, a/k/a “Ripper,” “Baby Ripper,” and “Q”, age 37, from Los Angeles, California, was sentenced today to life imprisonment for violating federal heroin trafficking and obstruction of justice laws. MITCHELL is a member of the Rollin 60s Crips Gang based in Los Angeles, California.
Following a four-day trial that concluded on January 9, 2014, a federal jury convicted MITCHELL of all six counts in the superseding indictment, specifically: one count of conspiracy to distribute heroin; two counts of conspiracy to obstruct justice through murder; two counts of obstruction of justice through murder; and one count of obstruction of justice. The trial evidence showed that MITCHELL was the Los Angeles source of supply of multiple kilograms of heroin being transported to New Orleans by female couriers. Cristina S. Williams, who had previously been charged in the Eastern District of Louisiana for her role in transporting heroin, was murdered in Los Angeles on July 29, 2010, as the Drug Enforcement Administration’s investigation progressed to identify the leaders of the heroin conspiracy. MITCHELL was first indicted in New Orleans for his role in the heroin conspiracy, and later, for his role in Ms. Williams’s murder.
U. S. Attorney Polite stated, “Quenshey Mitchell was willing to do anything to protect his heroin trafficking enterprise, including taking the life of a potential witness against him. Today’s sentence ensures that his drug dealing and violence will come to an end, as he will spend the rest of his life behind bars.”
U.S. Attorney Polite praised the work of the Drug Enforcement Administration (“DEA”) and Detectives with the Los Angeles Police Department (“LAPD”) in investigating this matter. Assistant United States Attorneys William J. Quinlan, Jr. and Harry W. McSherry are in charge of the prosecution.
Raleigh Man Pleads Guilty to Conspiring to Provide Material Support for TerrorismRead the Press Release
Akba Jihad Jordan, 22, of Raleigh, North Carolina, pleaded guilty before United States Magistrate Judge Robert B. Jones to conspiracy to provide material support to terrorists. Jordan and co-defendant Avin Marsalis Brown, 21, also of Raleigh, were arrested on March 19, 2014, and charged initially in a criminal complaint. On April 1, 2014, a federal grand jury returned an indictment charging Jordan and Brown with conspiring to provide material support to terrorists.
United States Attorney Thomas G. Walker stated, “This investigation is a sober reminder that we must remain vigilant in our efforts to prosecute extremists who conspire to provide material support to foreign terrorist organizations.”
“Akba Jordan turned his back on his own country and was willing to fight side by side with terrorist groups in Yemen and Syria who wish to do us harm,” said John Strong, Special Agent in Charge of the FBI in North Carolina. “American citizens who offer support to terrorist organizations pose a grave threat to our national security and will face serious consequences for their actions.”
As set forth in the affidavit supporting the complaint, Brown initiated contact online with an undercover employee of the Federal Bureau of Investigation (FBI). Brown requested assistance in traveling overseas for “fisabilillah” – a phrase commonly utilized by Islamic Extremists to refer to joining extremist groups in violence overseas. Subsequently, both Brown and Jordan engaged in numerous discussions with an FBI confidential source in which they expressed a desire to travel overseas to join certain groups in fighting the “kuffar” (non-Muslims) and “munafiq” (Muslims considered to be hypocrites), primarily in either Syria or Yemen. These groups included al-Qaeda in the Arabian Peninsula (AQAP), the Islamic State of Iraq and Sham (ISIS), and jabhat al-Nusrah (JAN). They also talked frequently about weapons and the use of weapons in fighting the kuffar, both overseas and in the United States. Jordan specifically discussed with Brown the weapons he had in his possession, including an AK-47, and described how he would not hesitate to use them. The affidavit describes a meeting at Jordan’s apartment on Dec. 30, 2013, during which Jordan showed Brown how to break down the AK-47.
On March 19, 2014, Brown was arrested at Raleigh Durham International Airport prior to boarding a flight with a final destination in Turkey. Brown stated in an interview that he intended to travel from Turkey into Syria. Once overseas, Brown intended to meet with a member of ISIS whom he had befriended online. Once established, and after Jordan had obtained his own passport and enough funds to purchase a ticket, Brown could then assist Jordan in entering Syria from Turkey to additionally join Brown.
Jordan, who had not yet obtained a passport, was also arrested on March 19. Jordan admitted that he had made an appointment to obtain a passport so that so that he could go to Syria and fight. A search warrant executed that day at Jordan’s apartment recovered the AK-47 and several other weapons. On Aug.12, 2014, Brown pleaded guilty to the indictment. His sentencing is currently set for Nov. 6, 2014.
Investigation of this case was conducted by the Federal Bureau of Investigation, Charlotte Division, Resident Agency Joint Terrorism Task Force (JTTF). The Raleigh JTTF consists of the following agencies: FBI, DHS-H.S.I., Raleigh Police Department, Durham Police Department, Cary Police Department, NC State Bureau of Investigation, and the NC State Highway Patrol. The prosecution is being handled by Assistant United States Attorney Jason Kellhofer and Trial Attorney Michael Dittoe of the Counterterrorism Section in the Justice Department’s National Security Division.
News releases are available on the U.S. Attorney’s web page at www.usdoj.gov/usao/nce within 48 hours of release.
Raleigh Man Pleads Guilty to Conspiring to Provide Material Support for TerrorismRead the Press Release
WASHINGTON—Akba Jihad Jordan, 22 years old, of Raleigh, North Carolina, pled guilty before United States Magistrate Judge Robert B. Jones to conspiracy to provide material support to terrorists in violation of Title 18, United States Code, Section 2339A. Jordan and co-defendant Avin Marsalis Brown, 21 years old, also from Raleigh, were arrested on March 19, 2014 and charged initially in a criminal complaint. On April 1, 2014, a federal grand jury returned an Indictment charging Jordan and Brown with conspiring to provide material support to terrorists.
United States Attorney Thomas G. Walker stated, “This investigation is a sober reminder that we must remain vigilant in our efforts to prosecute extremists who conspire to provide material support to foreign terrorist organizations.”
“Akba Jordan turned his back on his own country and was willing to fight side by side with terrorist groups in Yemen and Syria who wish to do us harm. American citizens who offer support to terrorist organizations pose a grave threat to our national security and will face serious consequences for their actions,” said John Strong, Special Agent in Charge of the FBI in North Carolina.
As set forth in the affidavit supporting the complaint, Brown initiated contact online with an undercover employee of the Federal Bureau of Investigation (FBI). Brown requested assistance in traveling overseas for in order to join extremist groups engaged in violence overseas. Subsequently, both Brown and Jordan engaged in numerous discussions with an FBI confidential source in which they expressed a desire to travel overseas to join certain groups in fighting the “kuffar” (non-Muslims) and “munafiq” (Muslims considered to be hypocrites), primarily in either Syria or Yemen. These groups included al-Qaeda in the Arabian Peninsula (AQAP), the Islamic State of Iraq and Sham (ISIS), and jabhat al-Nusrah (JAN). They also talked frequently about weapons and the use of weapons in fighting the kuffar, both overseas and in the United States. Jordan specifically discussed with Brown the weapons he had in his possession, including an AK-47, and described how he would not hesitate to use them. The affidavit describes a meeting at Jordan’s apartment on December 30, 2013, during which Jordan showed Brown how to break down the AK-47.
On March 19, 2014, Brown was arrested at Raleigh Durham International Airport prior to boarding a flight with final destination in Turkey. Brown stated in an interview that he intended to travel from Turkey into Syria. Once overseas, Brown intended to meet with a member of ISIS whom he had befriended online. Once established, and after Jordan had obtained his own passport and enough funds to purchase a ticket, Brown could then assist Jordan in entering Syria from Turkey to join Brown.
Jordan, who had not yet obtained a passport, was also arrested on March 19. Jordan admitted that he had made an appointment to obtain a passport so that so that he could go to Syria and fight. A search warrant executed that day at Jordan’s apartment recovered the AK-47 and several other weapons. On August 12, 2014, Brown pled guilty to the Indictment. His sentencing is currently set for November 6, 2014.
Investigation of this case was conducted by the Federal Bureau of Investigation, Charlotte Division, Resident Agency Joint Terrorism Task Force (JTTF). The Raleigh JTTF consists of the following agencies: FBI, DHS-H.S.I., Raleigh Police Department, Durham Police Department, Cary Police Department, NC State Bureau of Investigation, and the NC State Highway Patrol. The prosecution is being handled by Assistant United States Attorney Jason Kellhofer and Trial Attorney Michael Dittoe of the Counterterrorism Section in the Justice Department’s National Security Division.
Prison Inmate, Psychologist and Three Others Charged with Conspiracy to Threaten WitnessRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Nicholas Stanishia, age 44, an Ohio prison inmate, Marcia J. Weber, age 46, of Loveland, Ohio, Martin Jay Wilson, age 43, of Kansas City, Missouri, Jody Six, age 40, and Anthony Vaughn, age 41, both Ohio inmates were indicted yesterday by a federal grand jury in Harrisburg and charged with an interstate conspiracy to transmit threats to a witness.
According to U.S. Attorney Peter Smith, Stanishia who is serving a sentence of life imprisonment at the Southeastern Correctional Institution in Lancaster, Ohio, allegedly developed an intimate relationship with clinical psychologist Weber who helped orchestrate Stanishia’s release from prison by attempting to get a witness who had identified Stanishia at his Ohio murder trial to recant his statement to police and his trial testimony.
According to the indictment, Stanishia and Weber allegedly hired a private investigator to locate the witness and obtain information about where he and his wife lived and worked and information about the couple’s children. They then allegedly hired Wilson to travel from Missouri to Mechanicsburg, Pennsylvania, where the witness now lives, and place a gas can on the witness’s porch.
Stanishia then allegedly, with the help of Six - another inmate - used a smuggled-in cellular telephone to contact the witness and threaten him over the telephone.
Special Agent in Charge, Edward J. Hanko, FBI, Philadelphia Division stated: “This case represents an incredible collaborative effort between FBI Field Offices in Philadelphia, Cincinnati, Kansas City, the US Attorney's Office-Middle District Pennsylvania and Southern District Ohio, Hampden Township Police Department, Lower Paxton Police Department, Ohio Highway State Patrol, and the Southeastern Correctional Institution, Lancaster, Ohio. This matter is also a reminder of the ever-present threat from criminal elements, even those housed in our prison systems. Rest assured, the FBI will remain diligent and work with our law enforcement partners to aggressively address these threats as they surface to ensure the community is safe and perpetrators are brought to justice.”
According to the indictment, in 1997 Stanishia murdered his ex-girlfriend and shot the woman’s then boyfriend. Stanishia then fled and remained at large until his capture in 2000 after committing a home invasion and rape of a Kansas woman. The boyfriend ended up identifying Stanishia as the murderer and testifying against him at trial. Stanishia was found guilty and sentenced to life in prison without the possibility of parole on the murder and 23 years for the attempted murder, burglary and firearms offenses. Stanishia is currently serving his sentence in Ohio. Stanishia was also convicted of the home invasion and rape and sentenced to 54 years’ imprisonment.
Stanishia allegedly referenced the gas can as a message to the victim of his ability to reach the witness even while imprisoned in Ohio. Stanishia also allegedly claimed to be a high ranking member of the Aryan Brotherhood and made the witness aware of the group’s ability to reach the witness in Pennsylvania.
Weber and Stanishia allegedly then prepared a false declaration and affidavit, recanting the identification of Stanishia as the murderer, for the witness to sign, have notarized and return to Stanishia. The false declaration and affidavit were allegedly mailed to the witness using a false return address. Six allegedly stored copies of the draft information and personal information about the witness in his area within the prison to help Stanishia avoid detection. Vaughn, another inmate at the Southeastern Correctional Institution, allegedly helped orchestrate the mailing of the affidavit to the witness by making calls to Weber through a third party.
This case is being prosecuted by Assistant United States Attorney Daryl F. Bloom.
Weber was taken into custody in Ohio on October 8. Wilson has not yet been taken into custody.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
If convicted, all five face a term of imprisonment of up to 45 years and a fine of $750,000. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Pain Management Physician Indicted for Overbilling the Medicare ProgramRead the Press Release
BOSTON – A physician specializing in pain management was charged in a superseding indictment today for overbilling the Medicare Program.
Fathalla Mashali, 59, of Dover, was charged with 23 counts of heath care fraud in connection with billing the Medicare Program for services that he did not provide to his Medicare patients between October 2010 and March 2013. Mashali will be arraigned on Oct. 29, 2014 in U.S. District Court in Boston.
According to the original indictment, returned in March 2014, Mashali was a licensed physician in Massachusetts and Rhode Island, and operated New England Wellness & Pain Management, P.C., a/k/a New England Pain Associates, P.C., of Massachusetts and Rhode Island, a/k/a Greystone Pain Management, Inc., a/k/a New England Pain Institute, P.C. (NEPA). Many of the patients at NEPA were Medicare beneficiaries.
It is alleged that Mashali trained NEPA employees, including physician assistants and registered nurses, to overbill the Medicare Program. According to the indictment, Mashali overbooked patient appointments, sometimes with as many as four patients per appointment slot, and arrived to work up to four hours late. The patient appointments often lasted less than 10 minutes and sometimes as few as two minutes during which he often failed to perform physical examinations. With the exception of patients requiring injections, Mashali conducted patient visits in a small office with a desk, resembling a business office, rather than in an examination room containing medical equipment. Nevertheless, Mashali allegedly submitted fraudulent claims to Medicare seeking reimbursement for patient services far exceeding in scope and duration of the actual services he provided to his Medicare patients.
The superseding indictment adds the additional allegations that between November 2011 and October 2012, while the laboratory was not in compliance with federal regulations, Mashali billed Medicare for urine drug tests he did not perform. Mashali collected urine specimens from his patients and tested them for drugs, presumably to determine whether the patients were using abusive drugs and whether they consumed their prescription medication. According to the indictment, Mashali contemporaneously tested each urine specimen at his laboratory in Holbrook, Mass. on two chemical analyzers, and billed Medicare for those tests. In addition, he billed Medicare for a third test, known as a confirmatory test, which he did not perform. Although the administration of a confirmatory test would have depended on the outcome of the initial urine test, it is alleged that Mashali billed for the confirmatory tests before he conducted any urine tests whatsoever.
Furthermore, Mashali allegedly tested the urine weeks and sometimes three months after it had been collected from his patients. The urine was kept unrefrigerated, and, due to the age of urine and storage conditions, it leaked from collection cups while the smell permeated the laboratory. Prior to an inspection by a federal health inspector in February 2012, Mashali ordered his staff to move the unrefrigerated urine specimens out of the laboratory, but then returned the specimens following the inspection.
The maximum sentence under the statute on each count of the indictment is 10 years in prison, three years of supervised release, a fine of $250,000 or twice the pecuniary gain to Mashali or loss to the Medicare program, and restitution. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Michael J. Ferguson, Acting Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Phillip Coyne, Special Agent in Charge of the U.S. Health and Human Services, Office of the Inspector General; Office of Investigations; Anthony DiPaolo, Chief of Investigations of the Massachusetts Insurance Fraud Bureau; and William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston made the announcement today. The case is being prosecuted by Maxim Grinberg and Kimberly P. West of Ortiz’s Health Care Fraud Unit and Katherine Ferguson of Ortiz’s Drug Task Force Unit.The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Our Lady of Lourdes Memorial Hospital Has Paid More Than $3.37 Million to Resolve Self-disclosed Billing ImproprietiesRead the Press Release
ALBANY, NEW YORK – Our Lady of Lourdes Memorial Hospital, Inc. (Lourdes), a 242-bed hospital located in Binghamton, New York, has paid $3,373,898.28 to resolve False Claims Act liability stemming from Medicare billing improprieties that the hospital selfdisclosed to the federal government, announced United States Attorney Richard S. Hartunian.
During the course of an internal review, Lourdes determined that from February 2008 through September 2013, it had improperly billed and was thus overpaid by the Medicare program for hyperbaric oxygen therapy services rendered by a third party in a facility that failed to satisfy the requirements for “provider-based status” set forth in federal regulations. The hospital promptly took corrective steps to remedy the problem and then brought its findings to the government’s attention. Due in large part to Lourdes’s decision to self-disclose these issues and its cooperation throughout the government’s investigation, the hospital was required to pay far less than the treble damages and penalties that the United States is authorized to seek under the False Claims Act. Furthermore, the Department of Health and Human Services’ Office of Inspector General (HHS-OIG) decided that Lourdes would not have to enter into a corporate integrity agreement or adopt other compliance measures.
United States Attorney Hartunian said: “Today’s settlement is an excellent example of how voluntary self-disclosure benefits both the integrity of health care programs and providers who discover and report evidence of improper billing in their organization. Lourdes should be commended for the manner in which it handled the disclosure.”
“In coordination with our law enforcement partners, our agency’s investigators and attorneys will continue to work with health care providers who use the self-disclosure protocol to resolve billing improprieties,” said Special Agent in Charge Thomas O’Donnell of HHS-OIG’s New York region.
The United States encourages all health care providers to self-disclose any known violations that have resulted in the submission of improper claims to federal health care programs. This investigation and settlement were the result of a coordinated effort between the United States Attorney’s Office for the Northern District of New York and HHS-OIG. Locally, the United States was represented by Assistant United States Attorney Adam J. Katz.
Operation Tango and Cash Recognized with National AwardRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today that the Director of the Organized Crime Drug Enforcement Task Forces (OCDETF) for the U.S. Department of Justice recognized Operation Tango and Cash as the National 2014 Outstanding International Primary Money Laundering Investigation and the 2014 Special Investigation of the Year for the Southeast Region.
Operation Tango and Cash was an extensive effort to dismantle an international money laundering business in Baton Rouge that was being used to support drug traffickers in this country and overseas. The organization was infiltrated through the use of various sophisticated investigative techniques, including court-authorized wiretaps and undercover agents. The operation resulted in federal felony convictions against two corporations and three individuals for various money laundering and narcotics related offenses and the forfeiture of almost $1,000,000.
The matter was handled by the U.S. Attorney’s Office for the Middle District of Louisiana, the Baton Rouge Office of the U.S. Drug Enforcement Administration, and the Baton Rouge Office of the Criminal Investigations Division of the Internal Revenue Service, along with the Baton Rouge and Gonzales Police Departments and the Sheriff’s Offices in East Baton Rouge Parish, West Baton Rouge Parish, and Ascension Parish.
Operation Tango and Cash was another effort by the OCDETF Program which was established in 1982 to mount a comprehensive attack against organized drug traffickers. Today, the OCDETF Program is the centerpiece of the United States Attorney General’s drug strategy to reduce the availability of drugs by disrupting and dismantling major drug trafficking organizations and money laundering organizations and related criminal enterprises. The OCDETF Program operates nationwide and combines the resources and unique expertise of numerous federal, state, and local agencies in a coordinated attack against major drug trafficking and money laundering organizations.
The OCDETF Director specifically recognized Assistant United States Attorneys Jennifer Kleinpeter and Jay Thompson; Special Agent Chris Abney of the Drug Enforcement Administration; and Supervisory Special Agent Ted Magee and Special Agent Andre Guilott of the Criminal Investigations Division of the Internal Revenue Service. Former Assistant United States Attorney Lane Ewing and support staff at all the agencies also provided invaluable assistance to the matter.
Omar Gonzalez Indicted on Additional Charges Stemming from Recent Intrusion on White House GroundsRead the Press Release
Grand Jury Returns Superseding Indictment as Investigation Continues
A federal grand jury in the District of Columbia returned a superseding indictment today charging Omar Gonzalez with three additional offenses stemming from a recent incident in which he ran into the White House while armed with a folding knife.
The superseding indictment was announced by U.S. Attorney Ronald C. Machen Jr. and Special Agent in Charge Kathy A. Michalko of the U.S. Secret Service Washington Field Office.
Gonzalez, 42, formerly of Copperas Cove, Texas, initially was indicted on Sept. 30, 2014, in the U.S. District Court for the District of Columbia. He was charged at that time with unlawfully entering a restricted building or grounds while carrying a deadly or dangerous weapon, a federal offense; carrying a dangerous weapon outside a home or place of business, a District of Columbia offense; and unlawful possession of ammunition, also a D.C. offense.
The superseding indictment includes those three charges. It also adds two federal counts of assaulting, resisting, or impeding certain officers or employees, and one District of Columbia count of unlawful possession of a large capacity ammunition feeding device.
According to the government’s evidence, on Sept. 19, 2014, at about 7:19 p.m., Gonzalez climbed over the north fence of the White House. An officer with the U.S. Secret Service ran toward him and yelled at him to stop. Gonzalez, however, ran toward the White House. Moments later, he went through the north doors and entered the building.
He was apprehended inside the White House after he allegedly assaulted, resisted or impeded two U.S. Secret Service officers, the basis for the new federal charges filed today. Gonzalez was searched and a black folding knife was discovered in his right front pants pocket. The knife had a serrated blade that was three and one-half inches long.
After Gonzalez’s arrest, he gave oral consent to search his vehicle, which was located on Constitution Avenue NW. The vehicle contained hundreds of rounds of ammunition, both in boxes and in magazines, two hatchets and a machete. The newly-filed District of Columbia charge involves the recovery of gun magazines that held more than 10 rounds.
Gonzalez is scheduled to appear in court on Oct. 21, 2014. He has been in custody since his arrest on Sept. 19, 2014.
An indictment is merely a formal charge that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty.
This case is being investigated by the U.S. Secret Service. It is being prosecuted by Assistant U.S. Attorneys David Mudd and Thomas A. Gillice, of the National Security Section of the U.S. Attorney’s Office for the District of Columbia.
Omar Gonzalez Indicted on Additional Charges Stemming from Recent Intrusion on White House GroundsGrand Jury Returns Superseding Indictment as Investigation ContinuesRead the Press Release
WASHINGTON – A federal grand jury in the District of Columbia returned a superseding indictment today charging Omar Gonzalez with three additional offenses stemming from a recent incident in which he ran into the White House while armed with a folding knife.
The superseding indictment was announced by U.S. Attorney Ronald C. Machen Jr. and Kathy A. Michalko, Special Agent in Charge of the Washington Field Office, U.S. Secret Service.
Gonzalez, 42, formerly of Copperas Cove, Texas, initially was indicted on Sept. 30, 2014, in the U.S. District Court for the District of Columbia. He was charged at that time with unlawfully entering a restricted building or grounds, while carrying a deadly or dangerous weapon, a federal offense; carrying a dangerous weapon outside a home or place of business, a District of Columbia offense, and unlawful possession of ammunition, also a D.C. offense.
The superseding indictment includes those three charges. It also adds two federal counts of assaulting, resisting, or impeding certain officers or employees, and one District of Columbia count of unlawful possession of a large capacity ammunition feeding device.
According to the government’s evidence, on Sept. 19, 2014, at about 7:19 p.m., Gonzalez climbed over the north fence of the White House. An officer with the U.S. Secret Service ran toward him and yelled at him to stop. Gonzalez, however, ran toward the White House. Moments later, he went through the north doors and entered the building.
He was apprehended inside the White House after he allegedly assaulted, resisted, or impeded two U.S. Secret Service officers, the basis for the new federal charges filed today. Gonzalez was searched and a black folding knife was discovered in his right front pants pocket. The knife had a serrated blade that was three and one-half inches long.
After Gonzalez’s arrest, he gave oral consent to search his vehicle, which was located on Constitution Avenue NW. The vehicle contained hundreds of rounds of ammunition, both in boxes and in magazines, two hatchets, and a machete. The newly filed District of Columbia charge involves the recovery of gun magazines that held more than 10 rounds.
Gonzalez is scheduled to appear in court on Oct. 21, 2014. He has been in custody since his arrest on Sept. 19, 2014.
An indictment is merely a formal charge that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty.
This case is being investigated by the U.S. Secret Service. It is being prosecuted by Assistant U.S. Attorneys David Mudd and Thomas A. Gillice, of the National Security Section of the U.S. Attorney’s Office for the District of Columbia.
14-231Olympia Tax Preparer Sentenced to Prison for Filing False ClaimsRead the Press Release
An Olympia, Washington tax preparer was sentenced today in U.S. District Court in Tacoma to two years in prison for a tax fraud scheme in which he falsely claimed tax refunds while victimizing his clients, announced Acting U.S. Attorney Annette L. Hayes. KYLE BAXTER, 31, pleaded guilty in July 2014 for the scheme that netted him more than $250,000 over three years. “You were evil and criminal while doing this,” said U.S. District Judge Robert J. Bryan. “These are serious offenses that hurt a group of people and the public.”
Court records in the case reveal BAXTER admitted that from 2010 through 2013, he represented himself to be a provider of tax preparation services operating under the name “Baxtax.” BAXTER maintained a website for “Baxtax,” and promoted his services through advertisement in local media, even though BAXTER never obtained a Preparer Tax Identification Number, ordinarily required of any person or entity that prepares tax returns for a fee. During that three-year period, BAXTER, a firefighter, filed at least 280 tax returns. Many of his clients were fellow firefighters, as well as emergency medical technicians and paramedics. In many filings, BAXTER claimed deductions and credits for which his clients were plainly ineligible, such as child tax credits for clients without children. The false filings increased the refunds paid by the IRS to the clients. BAXTER provided clients paper copies of tax returns purportedly reflecting their filings. However, the copies were not what had been provided to the IRS. BAXTER actually filed returns with distorted numbers that yielded even larger refunds, and BAXTER secretly diverted significant portions of these refunds to himself. Over the course of the scheme, BAXTER stole at least $250,000 in taxpayer funds by partially diverting refund payments in this manner. BAXTER was ordered to pay $255,033 in restitution to the Internal Revenue Service.
The case was investigated by the Internal Revenue Service-Criminal Investigation. The case was prosecuted by Assistant United States Attorney Rebecca Cohen.
Oliver Pleads Guilty to Unemployment FraudRead the Press Release
OXFORD, MS. - Felicia C. Adams, United States Attorney for the Northern District of Mississippi, and Richard L. Walker, Special Agent in Charge, U. S. Department of Labor, Office of Inspector General – Office of Labor Racketeering and Fraud Investigations announced that:
Olivia Oliver, age 41, of Tupelo, Mississippi, pled guilty October 9, 2014, before United States District Court Judge Deborah M. Brown, in Greenville, Mississippi. Oliver pled guilty to making false material representations in a matter within the jurisdiction of the United States Department of Labor, that is, that she was unemployed when in truth and in fact she was gainfully employed, thereby receiving $26,525 in unemployment insurance benefits from the Mississippi Department of Employment Security funded by the Federal Emergency Unemployment Compensation Program to which she was not entitled.
Oliver was released on a pre-existing bond pending sentencing, which will take place following the completion of a pre-sentence report. At sentencing, she faces a maximum possible penalty of five (5) years imprisonment, a $250,000 fine, and three (3) years supervised release.United States Attorney Felicia C. Adams stated: “The Emergency Unemployment Compensation Program is intended to assist those who could not secure employment, and Oliver and those who give false information regarding their employment will not be allowed to profit by wrongfully taking funds from the citizens of the Northern District of Mississippi who are truly in need of this assistance.”
Mark Henry, Executive Director of the Mississippi Department of Employment Security said, “We at the Department of Employment Security are committed to ensuring that only honest Mississippians who have lost their jobs receive unemployment benefits. That is why this guilty plea is so important, and I commend Special Agent in Charge Richard L. Walker and U. S. Attorney Felicia Adams for seeing that justice was done in this case.”
This case was investigated by the United States Department of Labor, Office of Inspector General.Ohio Man and Two Wheeling Natives Charged with Cocaine Trafficking Near Local SchoolsRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Tara Tighe, Public Affairs SpecialistWHEELING, WEST VIRGINIA – Samuel J. Pete, 28 of Youngstown, Ohio, Krista D. Dennis, 28, and Patrick A. Groves, 24, both of Wheeling, West Virginia, were indicted by a federal grand jury on multiple drug trafficking charges, United States Attorney William J. Ihlenfeld, II, announced today.
The indictment charges the defendants with numerous counts of distributing crack cocaine within 1,000 feet of various protected locations including Bishop Donahue High School in McMechen as well as West Virginia Northern Community College and Ritchie Elementary School in Wheeling. Pete (5 counts), Dennis (4 counts), and Groves (3 counts), each face up to
40 years in prison and a fine of up to $2,000,000.00 for each count.The indictment charges all three defendants with one count of conspiracy to possess with intent to distribute and to distribute crack cocaine for which they each face up to 20 years in prison and fine of up to $1,000,000.00.
Pete is also charged with one count of possession with intent to distribute crack cocaine for which he faces up to 20 years in prison and a fine of up to $1,000,000.00.
Assistant U.S. Attorney Robert McWilliams is prosecuting the case on behalf of the government. The case is being investigated by the Marshall County Drug Task Force and the Ohio Valley Drug & Violent Crime Task Force, both HIDTA-funded initiatives.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Offshore Oil Platform Owner to Improve Safety and Operations in Gulf of Mexico Following Unauthorized Oil DischargesRead the Press Release
Under a settlement agreement with the United States, ATP Infrastructure Partners LP (ATP-IP) will pay a $1 million civil penalty and perform corrective measures to resolve claims by the U.S. under the Clean Water Act and the Outer Continental Shelf Lands Act (OCSLA) of unauthorized discharges of oil and chemicals from an oil platform into the Gulf of Mexico, announced the Department of Justice, the Department of the Interior’s Bureau of Safety and Environmental Enforcement (BSEE) and the U.S. Environmental Protection Agency (EPA). This is the first joint judicial enforcement action involving BSEE and EPA claims in response to alleged violations of both the Clean Water Act and OCSLA.
The United States’ complaint, which was filed in February 2013 in the U.S. District Court for the Eastern District of Louisiana, alleges that oil and an unauthorized chemical dispersant were discharged into the Gulf of Mexico from ATP-IP’s oil and gas production platform known as the ATP Innovator. A BSEE inspection of the ATP Innovator in 2012 revealed alleged unlawful discharges of oil and a piping configuration that routed an unpermitted chemical dispersant into the facility’s wastewater discharge pipe to mask excess oil being discharged into the ocean. At the time of the discovery, ATP Oil & Gas Corporation (ATP) was the operator of the facility, and ATP-IP was, and remains, the owner. The ATP Innovator was operating in the Mississippi Canyon, approximately 45 nautical miles offshore of southeastern Louisiana. Earlier this year, the ATP Innovator was removed from the deepwater production site and towed to port in Corpus Christi.
The United States filed suit against ATP and ATP-IP seeking Clean Water Act penalties and corrective measures under the Clean Water Act and OCSLA. ATP-IP’s motion to dismiss the claims against it and a related motion for appeal were both denied by the court in 2013. In addition to the penalty and corrective measures, ATP-IP will conduct enhanced reporting to address safety and environmental concerns. The Clean Water Act and OCSLA claims against ATP are not part of this settlement with ATP-IP and remain pending before the district court for future resolution.
“The Justice Department is committed to protecting public health and marine ecosystems like the Gulf from unlawful and unsafe practices,” said Sam Hirsch, Acting Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division. “This joint enforcement action demonstrates our resolve to hold non-operating owners of oil production facilities and their operators accountable for unlawful discharges from their facilities, and will result in important steps to help prevent future unlawful discharges of oil and chemicals from the ATP facility.”
“Our mission is to ensure offshore operations are conducted safely and in accordance with federal regulations to protect workers and the environment,” said BSEE Director Brian Salerno. “When violations occur, we will exercise our full authority, and leverage the authorities of our sister agencies, to hold companies accountable. We appreciate the EPA’s and the Justice Department’s assistance in bringing these claims to resolution.”
“EPA and its federal partners are committed to ensuring that offshore energy production is done safely and responsibly,” said Cynthia Giles, Assistant Administrator for EPA’s Office of Enforcement and Compliance Assurance. “Discharging oil illegally can foul water, harm wildlife and is unfair to companies that follow the law. It is our obligation to protect local communities and companies playing by the rules.”
Under the Clean Water Act it is illegal to discharge oil or hazardous substances into or upon waters of the contiguous zone or in connection with activities under OCSLA in quantities that may be harmful to the environment or public health or welfare. The penalty paid for these violations will be deposited in the federal Oil Spill Liability Trust Fund managed by the National Pollution Fund Center. The Oil Spill Liability Trust Fund is used to pay for federal response activities and to compensate for damages when there is a discharge or substantial threat of discharge of oil or hazardous substances.
Although ATP-IP took the Innovator out of operation earlier this year, it must perform corrective measures to ensure safe and lawful future operations. In particular, ATP-IP must remove and seal the connection on the wastewater discharge outfall pipe that was used to inject chemical dispersants, thereby permanently eliminating the access point for improperly injecting dispersants into the wastewater discharge pipe. Additionally, prior to any future use of the ATP Innovator for exploration, development, or production activities in U.S. waters, ATP-IP will have to certify to EPA, BSEE and DOJ that:
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the facility has sufficient wastewater treatment equipment and operational plans to meet and maintain Clean Water Act permit discharge limits and prevent unlawful discharge of pollutants to offshore waters at all times;
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the facility’s surface production-safety systems will be maintained in a manner that provides for protection of the environment under BSEE regulations; and
- all facility operations will be performed in a safe and workmanlike manner in accordance with BSEE regulations.
As a further safeguard, ATP-IP will be required to have the ATP Innovator’s wastewater treatment operations and surface production-safety systems independently audited for Clean Water Act and OCSLA compliance if the facility is used or leased in the future by ATP-IP or a related entity.
The proposed consent decree, lodged in the Eastern District of Louisiana, is subject to a 30-day public comment period and court review and approval. A copy of the consent decree is available on the Department of Justice website at www.justice.gov/enrd/Consent_Decrees.html
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Northern Virginia Company Agrees to Settle Claim for failure of Services to a Deaf PatientRead the Press Release
ALEXANDRIA, Va. – Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, announced yesterday a settlement under the Americans with Disabilities Act (ADA) with Associated Foot & Ankle Centers of Northern Virginia, P.C. (AFAC), to ensure that it provides appropriate auxiliary aids and services to individuals who are deaf or hard of hearing when providing medical services.
The investigation began with a complaint alleging that AFAC violated the ADA by failing to provide appropriate auxiliary aids and services to a patient who is deaf during critical interactions relating to the patient’s medical care. The complainant specifically alleged that AFAC failed to provide a sign language interpreter for multiple medical appointments and provided an individual who is not a qualified interpreter during other appointments.
“This settlement exemplifies our unwavering commitment to protect the rights of those who are deaf or hard of hearing and to ensure that they are able to communicate with health care professionals, especially when patients have complex interactions with medical providers,” said U.S. Attorney Boente.
The settlement agreement requires AFAC to pay $14,000 to the aggrieved individual and a $1,000 civil penalty to the United States; provide training to the podiatry practice’s staff on the requirements of the ADA; and adopt specific policies and procedures to ensure that auxiliary aids and services are provided promptly to patients and companions who are deaf or hard of hearing.
This matter was handled by Assistant U.S. Attorney Steven Gordon, who coordinates the Civil Rights Initiative for the U.S. Attorney’s Office, Eastern District of Virginia.
This case is a part of the Department of Justice’s Barrier-Free Health Care Initiative, which seeks to enforce the ADA’s prohibition of discrimination against individuals with disabilities by health care providers. Through the Barrier-Free Health Care Initiative, U.S. Attorneys’ offices across the nation and the Department’s Civil Rights Division target their enforcement efforts on a critical area for individuals with disabilities—access to medical services and facilities. The Barrier-Free Health Care Initiative is a multi-phase initiative that includes effective communication for people who are deaf or have hearing loss, physical access to medical care for people with mobility disabilities, and equal access to treatment for people who have HIV/AIDS.
The Department of Justice has a number of publications available to assist entities to comply with the ADA, including a Business Brief on Communicating with People Who Are Deaf or Hard of Hearing in Hospital Settings, www.ada.gov/hospcombr.htm, and publications specific to health care providers, HIV discrimination, and effective communication with people with hearing and vision disabilities, as well as publications about tax credits available for providing access. For more information on the ADA and to access these publications, visit www.ada.gov. The settlement in this case, along with other Barrier-Free Health Care Initiative settlements may be found at www.ada.gov/usao-agreements.htm. For more information on the Barrier Free Health Care Initiative visit www.ada.gov/usao-agreements.htm. Those interested in finding out more about these settlements or the obligations of public accommodations under the ADA may call the Justice Department’s toll-free ADA information line at 800-514-0301 or 800-514-0383 (TDD), or access its ADA website at www.ada.gov. ADA complaints may be filed by email to [email protected].
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae.
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Norfolk Man Pleads Guilty in Tax Fraud SchemeRead the Press Release
NORFOLK, Va. – Ronald Chisholm, 52, of Norfolk, Va., pleaded guilty yesterday to mail fraud and aggravated identity theft in connection with a scheme to defraud the Internal Revenue Service.
Dana J. Boente, United States Attorney for the Eastern District of Virginia, made the announcement after the plea was accepted by United States Senior District Judge Henry Coke Morgan, Jr.
Chisholm waived indictment and was charged in a criminal information on October 6, 2014. Chisholm faces a maximum penalty of 22 years when he is sentenced on January 22, 2015.
In a statement of facts filed with the plea agreement, Chisholm’s scheme was discovered in 2013 after a local check cashing business noticed one of its employees had cashed over $2 million in U.S. Treasury checks. The employee of the check cashing business identified Ronald Chisholm as the individual who cashed the treasury checks and indicated Chisholm paid her $200 per check to cash the treasury checks in violation of the company’s policies. A subsequent IRS investigation determined that Chisholm, along with unidentified co-conspirators stole the personal identifying information of numerous people and filed at least 698 fraudulent income tax returns. As a result of these false returns, Chisholm and his co-conspirators received a total of $2,273,119.52 in fraudulent income tax refunds.
This case was investigated by the Criminal Investigations division of the Internal Revenue Service. Assistant United States Attorney Joseph L. Kosky is prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:14-cr-132.Tweet
Nine Medical Practitioners Indicted in Conspiracy to Distribute Controlled Pain Medication as Employees of Breakthrough Pain Therapy Center in MaryvilleRead the Press Release
KNOXVILLE, Tenn. – On Oct. 7, 2014, a federal grand jury in Knoxville returned a two-count indictment against two medical doctors (M.D.), two physician’s assistants (P.A.) and five nurse practitioners (N.P.) for conspiring to distribute oxycodone, morphine, oxymorphone, and alprazolam, by writing prescriptions for controlled substances which were not for legitimate medical purposes. Additionally, the indictment on file with the U.S. District Court alleges that these nine individuals were also involved in a conspiracy to commit money laundering. Those indicted include:
Walter David Blankenship, P.A., 37, of Maryville, Tenn.; David Eric Brickhouse, P.A., 41, of Knoxville, Tenn.; Jamie Chiles Cordes, N.P., 36, of Maryville, Tenn.; Sherry Ann Fetzer, N.P., 41, of Knoxville, Tenn.; James Brian Joyner, M.D., 45, formerly of Maryville, Tenn., but now residing in Virginia; Buffy Rene Kirkland,N.P., 38, of Maryville, Tenn.; Don Robert Lewis, Jr., N.P., 54, of Maryville, Tenn.; Donna Jeanne Smith, N.P., 60, of Greenback, Tenn.; and Deborah Gayle Thomas, M.D., 62, of Dandridge, Tenn.
All of these individuals were employed at various times by Breakthrough Pain Therapy Center in Maryville, Tenn., which was owned and operated by Sandra and Randy Kincaid during 2009 and 2010. The Kincaids, along with family members Wendi Henry and Dustin Morgan, were previously convicted for their roles in operating the pain clinic and are currently serving prison terms of 39, 69, 18, and 17 years, respectively. The pain clinic ceased operations after raids at several locations by federal and local law enforcement agents in December 2010, when agents seized significant quantities of prescription narcotic pain pills, firearms, and nearly $700,000 in cash.
If convicted, the individuals charged in this indictment face a term of up to 20 years in prison, up to $1 million in fines, and supervision by the U.S. Probation Office upon their release from prison.
This indictment resulted from a lengthy investigation by the Internal Revenue Service – Criminal Investigation, the Fifth Judicial District Drug Task Force, and the Drug Enforcement Administration. The United States will be represented in this prosecution by Assistant U. S. Attorneys Jennifer Kolman and Frank M. Dale, Jr.
Members of the public are reminded that these are only charges and that every person is presumed innocent until his or her guilt has been proven beyond a reasonable doubt.
New York Man Sentenced for Role in $11 Million Dollar Telemarketing ScamRead the Press Release
Follow @SDILNewsStephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that on October 16, 2014, John C. Nicosia, 56, of Rochester, New York, was sentenced to 60 months in prison, and ordered to pay $962,538.61 in restitution and a $100 special assessment. Nicosia had previously pled guilty to a charge of conspiracy to commit mail and wire fraud for his role in a Las Vegas based telemarketing scam operating under the names Vacation Max and Showcase Resorts.
Vacation Max and Showcase Resorts targeted owners of timeshares throughout the United States. The overall scam bilked thousands of consumers throughout the United States, Canada, and other countries of $11 million dollars. There were at least twelve victims in seven of the thirty eight counties comprising the Southern District of Illinois. In this case, Nicosia and other telemarketers for Vacation Max placed cold calls to timeshare owners and then falsely represented that their company had actual buyers for the owners’ timeshare property. Telemarketers then solicited advanced fees of up to several thousand dollars from each victim in purported closing costs that they promised would be refunded to the owner once the closing on the property occurred. Many timeshare owners were told that their closings were scheduled within the next sixty to ninety days. Despite collecting fees from over 3,000 victims, these companies were not successful in selling a single timeshare unit. Nicosia and his co-conspirators simply pocketed the closing costs.
This prosecution follows an investigation by the St. Louis Field Office of the Chicago Division of the United States Postal Inspection Service. The case is being prosecuted by Special Assistant United States Attorney Michael Hallock.
New Orleans Man, Curtis Anderson, Sentenced for Conspiracy to Commit Wire Fraud and Possession of Stolen Credit and Debit Card NumbersRead the Press Release
U.S. Attorney Kenneth A. Polite announced that CURTIS ANDERSON, age 36, a resident of New Orleans, was sentenced today after having previously pled guilty to conspiracy to commit wire fraud and possession of unauthorized access devices.
U.S. District Judge Jane Triche Milazzo sentenced ANDERSON to serve 27 months imprisonment followed by 3 years of supervised release, and a $200 special assessment. ANDERSON was also ordered to pay $75,361.68 to BP and the banks that suffered financial losses as a result of his card skimming scheme.
According to court documents, between September 2010 and January 2011, ANDERSON submitted false documents and made false statements to the Gulf Coast Claims Facility (“GCCF”) in support of his claim that his janitorial business lost income as a result of the BP oil spill. In addition to defrauding BP, ANDERSON was found to be in possession of 317 unauthorized access devices (credit and debit card account numbers) that belonged to other individuals.
This case was brought as part of this District’s partnership with the National Center for Disaster Fraud (NCDF), a nationwide initiative to protect available funds and assistance for those victims of both natural and man-made disasters such as hurricanes, floods, tornadoes and the recent Gulf oil spill. If you have knowledge of fraud, waste, abuse, or allegations of mismanagement involving disaster relief operations, you can contact the NCDF by either calling the hotline at (866) 720-5721, faxing (225) 334-4707, emailing at [email protected] or in writing to National Center for Disaster Fraud, Baton Rouge, LA 70821-4909.
U.S. Attorney Polite praised the work of the Secret Service and FBI in investigating this matter. Assistant United States Attorney Spiro G. Latsis is in charge of the prosecution.
Native of Mexico Charged with Illegal ReentryRead the Press Release
Felix Zeferino-Carranza, a/k/a “Felix Lopez Carranza,” 33, of Norristown, PA, was charged today by Indictment with illegal reentry after deportation, announced United States Attorney Zane David Memeger. The indictment alleges that on or about August 23, 2014, Zeferino-Carranza, an alien, and native and citizen of Mexico, was found in the United States after having been deported from the United States on or about April 18, 2009, July 3, 2009, and July 5, 2009.
If convicted the defendant faces a maximum possible sentence of two years imprisonment.
The case was investigated by Immigration and Customs Enforcement, Enforcement and Removal Operations (“ERO”), and is being prosecuted by Assistant United States Attorney Frank R. Costello, Jr.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Click here to view the indictment.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Morgan County Man Sentenced to 6.5 Years in Prison for Possessing Child PornographyRead the Press Release
BIRMINGHAM -- A federal judge on Wednesday sentenced a Morgan County Man to more than six years in prison for possessing child pornography obtained over the Internet, announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Richard D. Schwein Jr.
WALTER SCOTT SIMPSON, 42, of Danville, pleaded guilty in July to one count of possessing child pornography. U.S. District Judge R. David Proctor sentenced Simpson to 6 1/2 years in prison, followed by 15 years of supervised release. The judge ordered Simpson into custody following the hearing.
Simpson used the Internet and a peer-to-peer file-sharing software program to possess and access images of child pornography between January 2011 and May 2012, according to his plea agreement with the government. A sentencing document the government filed Tuesday states Simpson used his computer, the Internet and the file-sharing program to possess at least 25,443 images of child pornography, which included images of children under 12 years old engaged in sexually explicit conduct, and images depicting sadistic and masochistic conduct with prepubescent children.
Undercover law enforcement officers received child pornography in January 2012 from a computer using peer-to-peer software, according to Simpson's plea agreement. The FBI tracked the computer to Simpson's Danville residence, where agents executed a search warrant for computer media in May 2012 and found the child pornography, the plea agreement states.
The FBI investigated the case, which Assistant U.S. Attorney Daniel J. Fortune prosecuted.
Middle District of Alabama Human Trafficking Task Force Meeting Held Today at 10:00 AMRead the Press Release
Montgomery, Alabama - United States Attorney George L. Beck, Jr., joined with members of the Middle District of Alabama Human Trafficking Task Force, which was formerly known as the “Central Alabama Human Trafficking Task Force,” on today. The Middle District of Alabama Human Trafficking Task Force (hereinafter “Task Force”) met to discuss its plans to revitalize the Task Force and increase law enforcement participation. The purpose of the meeting is to unite federal, state, and local law enforcement officials, prosecutors and victim service providers to discuss investigation strategies and victim resources, and to implement a district-wide protocol in an effort to combat human trafficking.
Human trafficking is recognized as “a modern-day form of slavery” and “is tied with the illegal arms industry as the second largest criminal industry in the world today,” according to the U.S. Department of Health and Human Services. Human trafficking often takes one of two forms – labor or sex trafficking. Labor trafficking may include forced labor or debt bondage, where a victim continually works to pay off an undefined and seemingly endless debt. Sex trafficking includes forcing victims to perform sexual acts, performances, or prostitution, or subjecting them to sexual abuse or torture. Victims may be subject to inhumane conditions and may be afraid to seek help due to language barriers, immigration status, or fear of the trafficker. Both Federal and Alabama law criminalize human trafficking, with penalties including significant prison time, large fines, and mandatory restitution.
Effective January 1, 2013, Alabama law requires certain establishments to display the National Human Trafficking Resource Center toll-free hotline number, 1-888-373-7888. The hotline provides information on human trafficking and resources for victims in 170 languages. Establishments required to post this information include hotels and massage parlors that have been cited as nuisances, airports, bus and train stations, and establishments offering stripteasing or topless entertaining.
“Victims of human trafficking hide in fright in our own backyard often in nightmare conditions and forced prostitution,” stated George L. Beck, U.S. Attorney for the Middle District of Alabama. “Make no mistake, human trafficking is enslaving our fellow Americans, many of whom are children of broken homes or runaways, targeted to serve in the commercial sex trade. This office will prosecute traffickers and protect victims. I encourage everyone to visit DOJ’s website at www.ovc.ncjrs.gov or the HHS website at www.acf.hhs.gov/trafficking to learn more about human trafficking. Let’s work together to fight and prevent this evil criminal conduct.”
“The FBI is committed to bringing to justice those individuals who are responsible for the heinous crime of human trafficking,” stated Jeannette L. Williams, Assistant Special Agent in Charge of the FBI office in Mobile. “Together with our partner law enforcement agencies, and with the assistance of the community, we will continue to pursue those who rob the innocent of their freedom.”
“Homeland Security Investigations investigates and seeks prosecution of human trafficking as one of its highest priorities,” said Special Agent in Charge of HSI New Orleans Raymond R. Parmer Jr. “The results speak for themselves; in FY13 HSI set a record number of criminal arrests resulting from human trafficking investigations – up 91 percent over FY12 and more than 543 percent over FY10. HSI utilizes all of its resources via a coordinated global effort to dismantle the criminal infrastructure engaged in human trafficking, and HSI is fully committed to victim-centered investigations in which the identification, rescue and needs of victims are treated with equal weight as the prosecution of traffickers.” Parmer oversees a five-state area of responsibility to include Alabama, Arkansas, Louisiana, Mississippi and Tennessee.
“The Alabama Law Enforcement Agency (ALEA) is committed to working with our federal, state and local partners to combat human trafficking in our state,” said Secretary of Law Enforcement Spencer Collier. "By utilizing our Fusion Center as a central hub for helping gather, analyze, and share information, our intel analyst will provide real-time mission critical information to the agencies involved in this multi-jurisdictional effort."
The mission of the Task Force is “To Find and Free” victims of human trafficking. The Task Force began its work in 2009, initiated by the U.S. Attorney’s Office for the Middle District of Alabama, and thereafter partnered with the Montgomery County District Attorney’s Office.
The Task Force consists of federal, state, and local partners within the River Region and from the 23 counties which comprise the Middle District of Alabama. In addition to the United States Attorney’s Office for the Middle District of Alabama and the Montgomery County District Attorney’s Office, the Task Force partners include: the Federal Bureau of Investigation, the Homeland Security Investigations of the United States Department of Homeland Security, the Alabama Attorney General’s Office, the Alabama Fusion Center (which is a division of ALEA), the Montgomery Police Department, the Montgomery County Sheriff’s Office, One Place Family Justice Center, Legal Services Alabama, the Family Sunshine Center, the Alabama Coalition Against Domestic Violence, Stella’s Voice, SABRA Sanctuary of Selma, the Alabama Department of Youth Services, the Alabama Department of Child Abuse and Neglect Prevention, the Alabama Department of Education, survivors of human trafficking, college students, and local college chapters of International Justice Mission.
For more information, please contact Assistant United States Attorney Jerusha T. Adams at 334-223-7280 or Montgomery County Deputy District Attorney Carrie G. Shaw at 334-262-7378.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Mexican National who resided in Richmond sentenced to 57 months in prison for role in Violent Criminal OrganizationRead the Press Release
RICHMOND, Va. – Freddy David Santos Campuzano, 32, a Mexican National who resided in Richmond, Virginia was sentenced to 57 months in prison for his role in a violent criminal organization that specialized in manufacturing and distributing fraudulent identification documents. Santos Campuzano previously pleaded guilty to Conspiracy to Engage in Racketeering and Conspiracy to Launder Money. Because he is illegally within the United States, he faces deportation following the service of his prison sentence.
Dana J. Boente, United States Attorney for the Eastern District of Virginia; and Clark E. Settles, Special Agent in Charge for U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), Washington, D.C., made the announcement after the sentence was handed down by Senior United States District Judge James R. Spencer. The Court granted the request of the United States for a variance, and sentenced the defendant above the calculated guideline range.
According to court papers, Santos Campuzano was connected to a Fraudulent Document Enterprise (FDE) previously prosecuted in the Eastern District of Virginia in United States v. Israel Cruz Millan, Case No. 3:10CR308. The FDE originally operated in the United States beginning prior to 2008 and continuing through November 18, 2010, and had cells in Richmond, Norfolk, Virginia Beach, and Manassas, Virginia; Fayetteville and Little Rock, Arkansas; New Haven, Connecticut; Mishawaka, Indiana; Lexington and Louisville, Kentucky; Chelsea, Massachusetts; St. Louis, Missouri; Chapel Hill, Greensboro, Raleigh, and Wilmington, North Carolina; Cincinnati, Ohio; Providence, Rhode Island; and, Nashville, Tennessee. The criminal enterprise was dismantled within the United States on November 18, 2010. In the prior case and connected prosecutions, a total of 30 defendants were convicted.
On February 16, 2012, Judge Spencer sentenced the overall leader, Israel Cruz Millan, to 300 months’ imprisonment. On March 2, 2012, United States District Judge Henry E. Hudson sentenced Oliverez-Jiminez to two consecutive life terms in prison, for racketeering, murder, kidnapping, conspiracy to commit money laundering, and conspiracy to produce and transfer false identification documents.
In connection with his guilty plea, Santos Campuzano admitted to helping the FDE restart its criminal activities in the United States following the 2010 arrests described above. Beginning at some time prior to February 2012, Manuel Hidalgo Flores, also known as “Chino,” “Chimuelo” and “Julio,” began managing the organization’s operations in Richmond, Virginia; Springdale, Arkansas; Boston, Massachusetts; Raleigh, North Carolina; Cincinnati, Ohio; and Pawtucket, Rhode Island. As in the previous case, the FDE produced high-quality false identification cards for distribution to illegal aliens. In most cities where the organization operated, Hidalgo Flores placed a cell manager to supervise a number of “runners,” the lower level members of the organization who distributed business cards advertising the organization’s services and helped facilitate transactions with customers.Beneath Hidalgo Flores, Santos Campuzano served as the manager of the Cincinnati, Ohio cell. In general, within each cell, the manager was responsible for distributing the fraudulent documents using information obtained from clients by “runners.” The runners would recruit illegal alien clients who wished to obtain false identification documents, including counterfeit Permanent Resident Alien Cards (also known as “Green Cards”), Social Security Cards, out-of-state identification cards, and various international documents. The runners would relay identifying information and photographs from the client to the printer, who would create fraudulent identification documents for the client. Once the documents were complete, the runner would usually provide the documents to the client in exchange for United States currency.
A client would generally pay approximately $150 for a set of fraudulent identification documents (such as a Permanent Resident Alien Card and Social Security Card). Each cell maintained detailed sales records and divided the proceeds between the runner, the cell manager, and the upper level managers in Mexico. In addition, the FDE used Western Union and MoneyGram to funnel criminal proceeds to Mexico.
The evidence during the Oliverez-Jiminez trial detailed how members of the organization sought to drive competitors from their territory by posing as customers in search of fraudulent documents and then attacking the competitors when they arrived to make a sale. For example, Hidalgo Flores and other defendants connected to the Richmond cell admitted targeting a competitor in the Richmond, Virginia area on October 6, 2013. The group identified L.G., who was selling fraudulent documents in competition with the Richmond cell. A co-defendant posed as a customer and contacted L.G. about setting up a fraudulent documents transaction and then met with him at a designated location. At the same time, Hidalgo Flores, and other FDE members, were surveilling the transaction. The defendants planned to follow competitor L.G. after the transaction to find where L.G. produced fraudulent identification documents and intended to assault L.G. and steal his printing equipment with the intent to stop L.G. from selling fraudulent identification documents and to enhance the FDE’s control of the Richmond area fraudulent document market.Unbeknownst to the FDE members, law enforcement officers were also surveilling the October 6, 2013 transaction. Due to law enforcement intervention, L.G. was detained during a traffic stop and the FDE members fled the area. According to his plea documents, Hidalgo Flores admitted that absent law enforcement intervention, he and his cohorts would have carried out their plan against L.G.
To date, 42 members of this organization charged in the Richmond, Virginia federal cases have been convicted. Santos Campuzano is the final charged defendant to be sentenced in the case.
The case was investigated by the Richmond and Norfolk offices of ICE’s Homeland Security Investigations (HSI), which falls under the Washington, D.C., office. HSI received assistance from the Virginia State Police, Chesterfield County Police Department, and Henrico County Police Department. Assistant United States Attorney Michael Gill is prosecuting the case on behalf of the United StatesA copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.
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Mexican Citizen, Ramon Frias-lopez, Illegally in United States SentencedRead the Press Release
U.S. Attorney Kenneth A. Polite announced that RAMON FRIAS-LOPEZ, age 30, a Mexican citizen who was illegally in the United States, was sentenced today after having previously pled guilty to a one-count indictment for illegal reentry of a removed alien.
U.S. District Judge Lance M. Africk sentenced FRIAS-LOPEZ to 18 months imprisonment followed by 3 years of supervised release, and a $100 special assessment.
According to court documents, on or about May 7, 2014, FRIAS-LOPEZ was found in the United States after having been officially deported and removed on or about April 27, 2010.
U.S. Attorney Polite praised the work of the U.S. Customs and Border Protection and Immigration and Customs Enforcement Agencies in investigating this matter. Assistant United States Attorney Spiro G. Latsis is in charge of the prosecution.Metal Dynamics Agrees to Settlement WithUnited States to Reduce PollutionRead the Press Release
A Detroit scrap metal and iron recycling company has agreed to pay a $110,000 penalty and invest $400,000 to resolve allegations that it violated the Clean Air Act, U.S. Attorney Barbara L. McQuade announced today.
Joining McQuade in the announcement was Environmental Protection Agency, Region 5 Administrator, Susan Hedman.
The settlement resolves a lawsuit brought by the U.S. Attorney’s Office and the Environmental Protection Agency against Metal Dynamics alleging that its facility on Lonyo Avenue in Detroit was releasing harmful chlorofluorocarbons (CFCs) into the environment. CFCs cause ozone depletion and have harmful effects on human health.
Under the settlement, Metal Dynamics agreed to implement a Clean Air Act compliance program at its facility to eliminate the harmful release of CFCs. Metal Dynamics also agreed to modify its torch cutting of metals to keep harmful particulate emissions at or below legal limits.
The settlement requires Metal Dynamics to pay a civil penalty of $110,000 and spend at least $400,000 on two environmental projects to help mitigate the harmful effects of air pollution. First, the company will provide education and economic incentives to scrap metal suppliers to prevent unlawful venting of harmful gases. Second, the company will purchase a portable control device to recapture particulate matter during torch cutting operations.
“This settlement will protect the health of Detroit residents and ensure cleaner air for future generations,” McQuade said. “We applaud Metal Dynamics for agreeing to invest in programs that will improve air quality in Detroit.”
“This settlement will help to preserve the ozone layer, which protects us from harmful radiation,” EPA Region 5 Administrator Susan Hedman said. “Metal Dynamics will also take steps to improve air quality in a community that has been disproportionately impacted by environmental contamination.”
Metal Dynamics did not admit any of the violations alleged by the government, but agreed to the compliance provisions, and to invest in the two innovative environmental projects.
The settlement was lodged with the U.S. District Court for the Eastern District of Michigan and will be subject to a 30-day public comment period and final court approval. It can be viewed at: http://www.usdoj.gov/enrd/Consent_Decrees.html and will appear in the Federal Register. Comments can be directed to Assistant Attorney General, Environment and Natural Resources Division, with reference to United States v. Metal Dynamics Detroit, LLC, D. J. Ref. No. 90-5-2-1-10192.Maryland Man Charged with Stealing Social Security NumberRead the Press Release
Aurelio Rafael Martinez, 38, of Essex, MD, was charged today by indictment with fraudulent use of a social security number and false statements in a matter within the jurisdiction of a federal agency announced United States Attorney Zane David Memeger. In particular, the indictment charges the defendant with using a social security number that did not belong to him, and falsely claiming United States citizenship on an I-9 Form in order to obtain and retain employment in connection with his work on the federally funded Girard Point bridge reconstruction project in Philadelphia between 2010 and 2012.
If convicted Martinez faces a maximum possible sentence of 10 years’ imprisonment.
The case was investigated by the United States Department of Labor, Office of Inspector General, the Office of Inspector General of the Department of Transportation; the Environmental Protection Agency Criminal Investigation Division, the Office of Inspector General of the Social Security Administration; Amtrak Office of Inspector General, Homeland Security Investigations, and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorneys Paul G. Shapiro and Nancy E. Potts.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.Click here to view the indictment.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Man Pleads Guilty to Theft of Medicaid FundsRead the Press Release
Follow @SDILNewsStephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced that Maurice Burks, 43, of East St Louis, Illinois, pled guilty today in federal district court to submitting false and fraudulent bills in relation to personal assistant services in the Home Services Program, a Medicaid Waiver Program designed to allow individuals to stay in their homes instead of entering a nursing home.
The investigation determined that Burks, who was the personal assistant in this case, was falsifying time sheets with his brother in order to receive payments for time periods when his brother (who was the customer) was in the hospital and when Burks was working another job. Sentencing has been set for February 20, 2015. At that time, Burks will face up to 10 years in prison, a fine of up to $250,000, and up to 3 years of supervised release.
The investigation was conducted by the U.S. Department of Health and Human Services, Office of Inspector General and the Illinois State Police’s Medicaid Fraud Control Bureau. The case is being prosecuted by Assistant United States Attorney Ranley Killian and Special Assistant United States Attorney Michael Hallock.
Los Angeles Woman Sentenced for Bank Fraud and Identity TheftRead the Press Release
ROCHESTER, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Doree McGee, 39, of Los Angeles, California, who was convicted of bank fraud conspiracy and aggravated identity theft, was sentenced to 65 months in prison by U.S. District Judge David G. Larimer. The defendant was also ordered to pay restitution in the amount of $326,000.
Assistant U.S. Attorney John J. Field, who handled the case, stated that in 2010 and 2011, McGee conspired with Cassandra Montrevel, and others, to defraud Bank of America. The scheme involved the defendants posing as actual Bank of America account holders. They used fake driver’s licenses and other means of identification, and made cash withdrawals from actual customer accounts. Traveling from California to cities around the nation, McGee and others defrauded Bank of America of more than $325,000. The scheme came to an end on March 18, 2011, when Montrevel was arrested in a bank branch in Irondequoit, N.Y. Montrevel was convicted and sentenced to 70 months in prison for her role in the scheme.
The sentencing is the culmination of an investigation on the part of the United States Secret Service, under the direction of Special Agent in Charge Tracy Gast, the Monroe County Sheriff's Office, under the direction of Sheriff Patrick O'Flynn, the Gates Police Department, under the direction of Chief James VanBrederode, the Irondequoit Police Department, under the direction of Chief Richard V. Tantalo, and the Batavia Police Department under the direction of Chief Shawn Heubusch.Local Attorney Who Fled the United States Sentenced on Multiple Federal Fraud ChargesRead the Press Release
St. Louis, MO – St. Charles County attorney JEFFREY WITT was sentenced to forty-four (44) month’s imprisonment and five (5) years supervised release following his term of imprisonment, and ordered to pay restitution in the amount of $234,472.33 on charges of falsifying documents to obtain a bank loan secured by a St. Louis County home, which did not actually belong to him, using an associate to impersonate the true home owner at the bank loan closing and cashing legal client settlement checks without their knowledge.
According to court documents and statements made in court, during September 2013, Witt submitted a loan application in the name of his mother in order to obtain a $100,000 line of credit secured by his mother’s St. Louis-area residence. His mother was unaware of Witt’s loan application. Witt provided a female associate with his mother’s driver’s license, which he had stolen from his mother, along with other false documentation so the associate could impersonate his mother during the loan closing at the bank. Together they were able to obtain the $100,000 bank loan credit line. Witt immediately drew out $60,000 from the credit line, which he deposited into his law firm bank account and then withdrew for personal purposes. Subsequent to the loan closing, Witt’s mother learned of Witt’s action and confronted him. In order to conceal the scheme, Witt falsely represented to his mother that he had cancelled the loan. To convince his mother, Witt created a false letter on fake bank letterhead, forged the signature of a bank officer and created a false "Deed of Release," all of which purportedly released the Deed of Trust on his mother’s home securing the fraudulent t loan.
Additionally, as part of his law practice, Witt would enter into settlement discussions on behalf of one and more of his legal clients. Several times, without the knowledge of many of his clients, Witt settled their legal cases, accepted settlement checks on their behalf and forged their signatures on their settlement checks. Witt deposited the clients’ checks into his law firm bank account and spent those funds on his own personal expenses and business expenses unrelated to those clients without their knowledge. Further, and in order to conceal his scheme, Witt falsely represented to his clients that he had neither settled their cases nor received settlement checks.
Witt also looted a client’s family trust of more than $100,000 over which he had been made Trustee.
During October, 2013, aware of the ongoing federal criminal investigation, Witt fled the United States, traveling to the Philippines, Australia, Jordan, England and Turkey. Due to the efforts of federal and international law enforcement in tracking Witt, on March 7, 2014, Witt was arrested as he arrived at John F. Kennedy International Airport in New York City on an inbound flight from Istanbul, Turkey. Witt planned to spend the weekend in New York City and then return to Istanbul on the return airplane ticket recovered from Witt by federal agents upon Witt’s arrest.
Witt, St. Charles, MO, pled guilty in July to one felony count of bank fraud, one felony count of aggravated identity theft and one felony count of mail fraud. He appeared today for sentencing before United States District Judge E. Richard Webber.
This case was investigated by the Federal Bureau of Investigation. Assistant United States
Attorney Hal Goldsmith handled the case for the U.S. Attorney’s Office.Law Enforcement Operation in Liberty City Results in Twelve ArrestsRead the Press Release
Twelve Liberty City residents were arrested today for probation violations. As part of the arrests, three guns were seized.
The announcement was made by Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, Katherine Fernandez Rundle, Miami-Dade State Attorney, Hugo J. Barrera, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Division, Chief Manuel Orosa, Chief, Miami Police Department (MPD), Hector Llevat, Major, Miami-Dade Police Department (MDPD), and Sunny J. Ukenye, Circuit Administrator for Circuit 11 Miami-Dade, Florida Department of Corrections Probation & Parole (FDOC).
Today’s proactive enforcement operation in Liberty City resulted in 12 arrests for probation violations. Three of the arrests were for possession of a firearm by a convicted felon. The guns seized were: a revolver; a semi-automatic pistol; and an AK-47 assault rifle.
Two of the arrests were for the possession of several fraudulent credit cards and over 100 fraudulently obtained personal identifying information. Seven arrests were for drug-related crimes, which included the possession of heroin, cocaine, and marijuana.
“Today, we announce the results of the most recent partnership between federal and state law enforcement to combat violent crime in our communities. The goal of the Violence Reduction Partnership is to help neighborhoods plagued with violent crime shake off the cycle of violence and make those neighborhoods safer for all residents,” stated U.S. Attorney Wifredo Ferrer. Enforcement of criminal statutes is an integral component of our holistic approach to community building. But we cannot arrest our way out of violent crime. For that reason, our Partnership also focuses on community-partnering, crime prevention, and reentry assistance for offenders attempting to put their pasts behind them and build healthy, productive lives in our community. The results of this operation clearly illustrate that we remain committed to this comprehensive approach.”
“The State Attorney’s Office is committed to the pro-active partnership of federal, state and local law enforcement which maximizes our resources in order to focus the most violent offenders in our community,” explains State Attorney Katherine Fernandez Rundle. “These joint efforts allow us to protect our community; build trust with them; and foster a safe environment for our families.”
Special Agent in Charge Hugo Barrera said, “Today’s arrests demonstrate law enforcement’s commitment to disrupt violent criminals that are affecting the quality of life of our law abiding citizens. This partnership illustrates the collaborative teamwork with all levels of government, federal, state and local together bringing their expertise and unique abilities with one goal to combat violent crime in our community.”
Chief Manuel Orosa stated, “It is unfortunate that individuals given a second chance at freedom abuse the system and decide to do wrong. Therefore, it is imperative to have these operations to ensure compliance since they cannot do what’s right.”
“The Miami-Dade Police Department is proud to work in collaboration with our law enforcement partners to reduce street violence in our community,” stated Major Hector Llevat. “Today’s operation serves as just one example of our collective determination to reach that goal. Through strategic partnerships such as the North-end Street Violence Task force, we can leverage our strengths and act as a force multiplier in combating criminals wherever they may hide.”
“The Florida Department of Corrections is committed in changing lives to ensure a safer Florida,” stated Circuit Administrator Sunny J. Ukenye.
This case is, in large part, the result of the Violence Reduction Partnership, launched by the U.S. Attorney’s Office. Through this Partnership, the U.S. Attorney’s Office and its federal and local law enforcement allies have sought to dismantle the most violent criminal networks in various neighborhoods, while simultaneously working with community leaders and concerned citizens to mentor at-risk youths, provide jobs and job training to young families, and help probationers and parolees successfully re-enter society.
Mr. Ferrer commended the investigative efforts of ATF, MPD, MDPD, and FDOC. Mr. Ferrer also thanked U.S. Immigration and Customs Enforcement, Enforcement and Removal Operations, and Federal Bureau of Investigation, Miami Field Office, for their participation in and assistance with this initiative. This initiative was led by Roy K. Altman, Deputy Chief of the Special Prosecutions Section.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Las Vegas Doctor Sentenced to 46 Months in Prison for Writing Unlawful Oxycodone PrescriptionsRead the Press Release
LAS VEGAS, Nev. – Victor Bruce, M.D., 49, who operates Swan Lake Medical Center in Las Vegas, was sentenced this afternoon to 46 months in federal prison and three years of supervised release for writing prescriptions for oxycodone for persons he did not see or treat, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.
Bruce, who pleaded guilty in July to one count of conspiracy to distribute a controlled substance, was sentenced by U.S. District Judge Andrew P. Gordon. Bruce was permitted to self-report to federal prison by Jan. 16, 2015.
“Dr. Bruce repeatedly wrote prescriptions for highly addictive controlled substances for patients who did not need them, and for patients who did not appear at his medical practice or did not exist,” said U.S. Attorney Bogden. “We continue to work with our local, state and federal law enforcement partners to put illegal pill-pusher doctors like Dr. Bruce in prison and out of business.”According to Bruce’s guilty plea agreement, he represents himself to be a pain management specialist and is the only physician working at the practice. Beginning at a date unknown and continuing to around November 2013, Bruce and several co-conspirators, including Robert Wolfe, aka “old man,” Millicent Epino, Dylan DuBois, Jennifer Monge, and Jade Lepoma, conspired to distribute oxycodone. Wolfe would provide Bruce a list of names, and Bruce would write prescriptions for oxycodone for those names and give them to Wolfe. Bruce also created “dummy” medical records for those persons, to make it appear as if a legitimate patient encounter had taken place. On four occasions in June 2013, an undercover law enforcement officer purchased Bruce-written oxycodone prescriptions from Wolfe for $700 each. On each occasion, the undercover provided Wolfe or another co-conspirator with copies of Nevada driver’s licenses bearing the names of customers. Usually within a day, Wolfe or another co-conspirator would then provide the undercover with written prescriptions for oxycodone. Bruce knew he was writing prescriptions for controlled substances to customers he did not treat and who did not need the prescriptions. None of the prescriptions were issued for a legitimate medical purpose or in the usual course of profession practice.
According to the Nevada State Board of Medical Examiners, Bruce’s license to practice medicine in Nevada is still active; however, there is a pending board action against him related to the unlawful administering, dispensing or prescribing of controlled substances.
Wolfe and several of the other co-conspirators were also charged in the drug conspiracy.
This case was investigated by the Nevada High Intensity Drug Trafficking Area (Nevada HIDTA) Pharm-Net Task Force, including the DEA, IRS Criminal Investigation, Las Vegas Metropolitan Police Department, Henderson Police Department, North Las Vegas Police Department, and the Nevada Division of Investigations, and prosecuted by Assistant U.S. Attorneys Crane M. Pomerantz and Cristina D. Silva.
Kirtland Woman Pleads Guilty to Second Degree Murder ChargeRead the Press Release
ALBUQUERQUE – LaSheena Jacquez, 27, of Kirtland, N.M., entered a guilty plea this morning to a second degree murder charge. The guilty plea was entered under a plea agreement with the U.S. Attorney’s Office.
Jacquez was one of five individuals, all of whom are enrolled members of the Navajo Nation, who were indicted in Jan. 2014, on criminal charges arising from the kidnaping and brutal murder of a 28-year-old Navajo woman on Oct. 23, 2013. The five defendants previously had been arrested in Dec. 2013, on a criminal complaint that was filed after law enforcement authorities received information that the victim, who had been reported as missing in Nov. 2013, had been murdered. The victim’s remains were recovered on Dec. 9, 2013.
The four-count indictment charged Jacquez, Patrick Benally, 26, of Kirtland, Justin Benally, 26, of Farmington, N.M., Scott Thompson, 28, of Farmington, and Mariah Benally, 22, of Kirtland, with first degree murder, kidnapping, and conspiracy to kidnap. It also charged Jacquez, Justin Benally, Thompson and Mariah Benally with harboring Patrick Benally to prevent his arrest on a warrant for an unrelated crime. The indictment alleges that the crimes charged occurred on the Navajo Indian Reservation within San Juan County, N.M.
During this morning’s proceedings, Jacquez pled guilty to a felony information charging her with second degree murder. In her plea agreement, Jacquez causing to the victim’s death on Oct. 23, 2013, by repeatedly stabbing the victim with a knife, throwing rocks at the victim, and aiding and abetting others who also caused the victim’s death. Jacquez admitted acting in wanton disregard for human life knowing that her actions created a serious risk of death or serious bodily injury. Jacquez also admitted that she destroyed evidence and aided and abetted others in the destruction of evidence in an effort to evade prosecution.
Jacquez has been in federal custody since her arrest and remains detained pending her sentencing hearing, which has yet to be scheduled. Jacquez faces a maximum statutory penalty of life imprisonment.
Jacquez’s four co-defendants have entered not guilty pleas to the indictment and are detained pending trial, which has not yet been scheduled. If convicted of the charges in the indictment, each faces a maximum statutory penalty of life imprisonment. Charges in indictments are merely accusations and defendants are presumed innocent unless convicted in a court of law.
This case was investigated by the Farmington office of the FBI, the Farmington Police Department and the San Juan County Sheriff’s Office. Assistant U.S. Attorneys Niki Tapia-Brito and David Adams are prosecuting the case.
Kankakee Man Sentenced to 10 Years in Prison for Plotting Murder-for-hire of Ex-wifeRead the Press Release
Urbana, Ill. – A Kankakee, Ill., man, Joshua N. Bisping, 33, has been ordered to serve 10 years in federal prison for his engagement in a murder-for-hire plot against his ex-wife, as announced by U.S. Attorney Jim Lewis, Central District of Illinois. U.S. District Judge Harold Baker today sentenced Bisping to the statutory maximum sentence and ordered that Bisping remain on supervised release for three years following his release from prison. Bisping was also ordered to have no direct contact with the victim.
On May 29, 2014, Bisping pled guilty to use of interstate commerce facilities in commission of a murder-for-hire plot. One year earlier, in late May 2013, Bisping attempted to hire an individual to kill his ex-wife. The individual introduced Bisping to an undercover ATF agent posing as a hit man. Following the meeting, Bisping met in person with the undercover agent on at least three occasions which were video and audio recorded. During the meetings, Bisping discussed paying the undercover agent $5,000 to murder his ex-wife and to make it look like a robbery gone bad. Bisping and the agent discussed Bisping’s obtaining a picture of his ex-wife for the agent, establishing an alibi for the time of the murder, and, if questioned by police, Bisping’s denial of any knowledge of the murder-for-hire plot. After one meeting, Bisping and the agent drove by the ex-wife’s residence so the agent would know where she lived.
Bisping was arrested in early June 2013, and has remained in the custody of the U.S. Marshals Service since his arrest.
The case was investigated by the Kankakee Area Project Safe Neighborhoods Task Force; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Kankakee Police Department; and the Kankakee County State’s Attorney’s Office. Assistant U.S. Attorney Eugene L. Miller prosecuted the case.
Justice Department Settles Immigration-Related Discrimination Claim Against a Georgia Construction CompanyRead the Press Release
The Justice Department announced today that it reached an agreement with Constructor Services Inc. (CSI), a construction company headquartered in the Atlanta, Georgia metropolitan area. The agreement resolves a claim that the company engaged in discriminatory documentary practices during the employment eligibility verification process in violation of the Immigration and Nationality Act (INA).
The department’s investigation found that CSI required non-U.S. citizens, but not similarly-situated U.S. citizens, to produce specific documentary proof of their immigration status for the purpose of verifying their employment eligibility. The INA’s anti-discrimination provision prohibits employers from making additional and unauthorized documentary demands based on citizenship status or national origin when verifying or re-verifying an employee’s employment eligibility.
“Employers must make sure that they are not erecting unlawful discriminatory barriers in their employment eligibility verification policies and practices,” said Acting Assistant Attorney General Molly Moran for the Civil Rights Division. “The division is committed to identifying and tearing down these illegal barriers.”
Under the settlement agreement, CSI will pay $18,000 in civil penalties to the United States, undergo training on the anti-discrimination provision of the INA, revise its employment eligibility reverification policies, and be subject to monitoring of its employment eligibility verification practices for twenty-four months.
The Office of Special Counsel for Immigration-Related Unfair Employment Practices (OSC) within the Justice Department is responsible for enforcing the anti-discrimination provision of the INA. Among other things, the statute prohibits citizenship status and national origin discrimination in hiring, firing, or recruitment or referral for a fee; unfair documentary practices; retaliation and intimidation.
For more information about protections against employment discrimination under immigration laws, call OSC’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call OSC’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a free webinar at www.justice.gov/crt/about/osc/webinars.php, email [email protected]; or visit OSC’s website at www.justice.gov/crt/about/osc.
Applicants or employees who believe they were subjected to: different documentary requirements based on their citizenship status, immigration status, or national origin; or discrimination based on their citizenship status, immigration status or national origin in hiring, firing, or recruitment or referral for a fee, should contact OSC’s worker hotline for assistance.
Jacksonville Florida Man Pleads Guilty to Extortion and Possession of Child PornographyRead the Press Release
A Jacksonville, Florida man, pleaded guilty today to extortion and possession of child pornography, United States Attorney Barbara McQuade announced.
McQuade was joined in the announcement by Paul M. Abbate, Special Agent in Charge of the FBI Detroit Field Office.”
Syed Ibrahim Hussain, 34, entered his guilty plea before United States District Judge Victoria A. Roberts.
Information provided to the court at the guilty plea proceeding showed that from December, 2012, to April, 2013, Hussain was residing at various hotels near Detroit. During this time, Hussain sent text messages to a woman demanding that she marry him or he would kidnap, rape, strangle and burn her. When Hussain was arrested in April, 2013, it was discovered that he was electronically tracking the woman using global positioning system trackers he had secretly placed on her car. Hussain was also in possession of multiple sets of hand-cuffs and leg irons, duct tape, a bullet proof vest, a shotgun, and a taser, among other items. A search of Hussain’s lap top computer also revealed that he was in possession of multiple videos and images of child pornography.
"With today's technology, determined stalkers have the ability to constantly communicate with and locate their victims." McQuade said. "We are grateful for the diligence of the law enforcement officers who intervened before the defendant could act on his threats."
“This case serves as an example of highly effective, proactive collaboration between federal, state, local and foreign law enforcement,” stated Paul M. Abbate, Special Agent in Charge of the FBI Detroit Field Office. “The collective efforts in this investigation halted Mr. Hussain’s criminal threats and disrupted his planned violent actions.”
Under the terms of the plea agreement, Hussain will serve 63 to 78 months in prison, register as a sex offender, and be fined up to $250,000. Sentencing is scheduled for February 24, 2015 at 10 a.m..
Investiture Ceremony Set for U.S. Attorney Damon P. MartinezRead the Press Release
ALBUQUERQUE – U.S. Attorney Damon P. Martinez will take the Oath of Office at 3:00 p.m., Friday, Oct. 17, 2014, during an investiture ceremony at the U.S. District Courthouse, 333 Lomas Blvd. NW, Albuquerque, N.M. The ceremony will take place in the Rio Grande Courtroom.
Chief Judge M. Christina Armijo of the U.S. District Court for the District of New Mexico will preside over the investiture ceremony, and Senior U.S. District Judge James A. Parker will administer the Oath of Office to U.S. Attorney Martinez. Guest speakers will be Senator Tom Udall and Acting Assistant Attorney General Molly J. Moran of the Justice Department’s Civil Rights Division. The invocation will be given by Antonio Chewiwi, Jr., 1st Lt. Governor of the Pueblo of Isleta. Solo vocal renditions of The National Anthem and America the Beautiful will be presented by Ross Daugherty, who will be accompanied by cellist Kristin Daugherty.
U.S. Attorney Martinez was appointed to his post by President Barack Obama upon the recommendation of Senators Tom Udall and Martin Heinrich. He has served as an Assistant U.S. Attorney in the District of New Mexico since 2001, most recently serving as the First Assistant U.S. Attorney and before that as the Supervisor of the Organized Crime Section. As a federal prosecutor, his experience has focused on complex drug cases, immigration cases, and national security and anti-terrorism matters. From 1996 to 1998, he was an Assistant Attorney General in the New Mexico Attorney General’s Office. Additionally, he has served as a Special Assistant District Attorney in three Judicial Districts in the State of New Mexico.
U.S. Attorney Martinez serves as the top federal law enforcement official in New Mexico and represents the United States’ interests in civil cases. He leads an office of 84 Assistant U.S. Attorneys, three Special Assistant U.S. Attorneys, 75 support staff and 20 contract employees working in offices in Albuquerque and Las Cruces, N.M.
A native of New Mexico, Mr. Martinez received a Bachelor of Arts degree in both Economics and Political Science in 1989, a Juris Doctor in 1992, and a Master of Business Administration in 1993, all from the University of New Mexico.
Idaho Falls/St. Anthony Woman Indicted for Investment Fraud SchemeRead the Press Release
BOISE – Lois Davis, 59, of Idaho Falls, and formerly of St. Anthony, Idaho was indicted yesterday by the federal grand jury for six counts of wire fraud, three counts of money laundering, and forfeiture of proceeds of the crimes, U.S. Attorney Wendy J. Olson announced.
The indictment charges Davis with devising a scheme to defraud and fraudulently representing to investors that they could invest money with Davis in order to be entitled to a portion of commissions that Davis claimed she would receive on significant financial transactions. Davis accepted investors’ money under this false pretense, and then spent investors’ money on her personal expenditures, such as horses and trucks. The indictment alleges that none of the investors received their promised return on investment and that Davis accepted approximately $2.1 million dollars in investor funds, refunded to investors approximately $330,000, and kept approximately $1.8 million in fraudulently-obtained investor funds.
Wire fraud is punishable by up to 20 years in prison, a $250,000 fine, and three years of supervised release. Money Laundering is punishable by up to ten years in prison, a $250,000 fine, and three years of supervised release.
The case was investigated by the Federal Bureau of Investigation.
An indictment is a means of charging a person with criminal activity. It is not evidence. The person is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Husband and Wife Plead Guilty to Social Security FraudRead the Press Release
ALBANY, NEW YORK – SCOTT J. BORNT, 53, and his wife GERI MONDLIN-BORNT, 50, formerly of Gloversville, New York, each pled guilty yesterday in Albany to one count of social security fraud before Senior United States District Court Judge Thomas J. McAvoy announced United States Attorney Richard S. Hartunian and Special Agent in Charge Edward J. Ryan of the Social Security Administration, Office of Inspector General, Office of Investigations, New York Field Division. They face up to five years in prison and fines of up to $250,000. Sentencing is scheduled on February 9, 2015 in Albany, New York.
As part of their guilty pleas, BORNT and MONDLIN-BORNT admitted that they made false statements to the Social Security Administration to obtain disability insurance benefits payments to which they were not entitled. Specifically, they did not disclose income earned from their trucking business. As a result of their false statements, BORNT received $314,650 of fraudulent payments over six years, and MONDLIN-BORNT received $88,120 of fraudulent payments over seven years.
The case was investigated by the Social Security Administration, Office of Inspector General, with the assistance of the United States Secret Service.
Human Trafficker Gets Life in PrisonRead the Press Release
Follow @NDFLNewsPANAMA CITY, FLORIDA –Jacobo Feliciano-Francisco, a/k/a “Kiko”, age 32, was sentenced in United States District Court yesterday to spend the remainder of his life in prison after he was convicted of kidnapping, retaliating against a witness, conspiracy, and transportation and of an individual in interstate commerce for prostitution. The sentence was announced by Pamela C. Marsh, United States Attorney for the Northern District of Florida.
The female victim in this case had previously cooperated with the FBI after being forced and coerced by others to work as a prostitute between 2009 and 2011. Due to that cooperation, a total of 13 individuals were convicted in Tennessee and Kentucky of various federal sex-trafficking and prostitution criminal charges. Following her cooperation with law enforcement, the victim and her family were relocated to Panama City Beach, Florida, out of concern for their safety.
In retaliation for her cooperation as a prior Federal witness, Feliciano-Francisco and others tracked down her location, repeatedly threatened the physical safety of both her and her family, kidnapped her, and transported her to a brothel in Hattiesburg, Mississippi, with the intent that she would be forced back into prostitution. During her kidnapping, Feliciano-Francisco not only verbally threatened and intimidated the victim, but he physically terrorized and humiliated her when he sexually assaulted her. After arriving in Hattiesburg, the victim escaped Feliciano-Francisco and led police back to the brothel where he was arrested.
“Prosecuting human traffickers is a top priority for this U.S. Attorney’s office and the Department of Justice,” said U.S. Attorney Marsh. “Congress has given us strong laws to go after this heinous crime, which is often difficult to find and prove because traffickers enforce silence among their victims through coercion and violence, as happened in this case. Despite those threats, however, the victim showed tremendous bravery in coming forward to help bring this defendant to justice. We commend her for her courage and pledge to continue this important fight against this modern form of slavery.”
This conviction results from an investigation by agents of the FBI, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, and the Hattiesburg Police Department, and was prosecuted by Assistant United States Attorney Katy Risinger.
Henderson Doctor Arraigned on Drug Distribution ChargesRead the Press Release
LAS VEGAS, Nev. – Mahesh Kuthuru, M.D., 46, of Henderson, Nev. was arraigned by a federal magistrate judge this afternoon and pleaded not guilty to felony drug distribution charges that he unlawfully sold highly addictive prescription painkillers to persons who did not have a medical necessity for them, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.
Kuthuru is charged in a criminal indictment with nine counts of unlawful distribution of controlled substances. If convicted, he faces not more than 20 years in prison and a fine of up to $1 million. U.S. Magistrate Judge Cam Ferenbach released Kuthuru on a personal recognizance bond pending trial.“Deaths from drug overdose, the majority from pharmaceuticals, have been rising steadily over the past two decades and have now become the leading cause of injury death in the United States,” said U.S. Attorney Bogden. “The number of overdose deaths combined with the costs to the workplace and healthcare and criminal justice systems, is cause for great alarm. We will continue to prosecute doctors who are contributing to this enormous problem.”
According to the indictment, Kuthuru is a licensed physician in Nevada who represents himself to be a specialist in pain management. Kuthuru operates Desert Pain Management which has occupied various locations on Charleston Boulevard in Las Vegas. Beginning on a date unknown and continuing through at least 2013, Kuthuru allegedly sold prescriptions for large quantities of highly addictive frequently diverted prescription drugs, including oxycodone, morphine sulfate and methadone without medical necessity.
This case is being investigated by the Nevada High Intensity Drug Trafficking Area (Nevada HIDTA) Pharm-Net Task Force, including the DEA, IRS Criminal Investigation, Las Vegas Metropolitan Police Department, Henderson Police Department, North Las Vegas Police Department, and the Nevada Division of Investigations, and is being prosecuted by Assistant U.S. Attorney Crane M. Pomerantz.
An indictment contains only charges and is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Harrisburg Man Pleads Guilty to Conspiracy to Defraud the IRS of Approximately $1 Million in Employment TaxesRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that Vanny Son, 33, Harrisburg, Pennsylvania, pleaded guilty today before U.S. District Court Judge John E. Jones III to conspiracy to defraud the IRS of approximately $1 million in employment taxes between 2006 and 2012.
According to U.S. Attorney Peter Smith, Son and a co-conspirator operated five employee leasing companies which supplied day laborers to several businesses in the Harrisburg area.
The employee leasing companies were known as V&S Services, Industrial Labor Services, Advance Labor Services, HD Staffing Services and TD Staffing. Between 2006 and 2012, these five businesses paid cash wages of more than $7 million to their employees without withholding any employment taxes, such as social security and Medicare taxes. As a result, approximately $1 million in employment taxes were not collected and paid to the IRS, as required by federal law.
Son was indicted by a grand jury on July 10, 2014 along with Son Thach and Hung Danh, also of Harrisburg. Thach pled guilty on September 24, 2014 and Danh remains a fugitive.
Son faces up to five years’ imprisonment, a $250,000 fine and up to three years’ supervised release as well as restitution to the IRS as a result of the guilty plea. No date has been set for sentencing.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
The case was investigated by the Criminal Investigation Division of the IRS and is assigned to Senior Litigation Counsel Bruce Brandler for prosecution.