Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Wednesday 27 August 2014
Massachusetts Resident Pleads Guilty in “Black Money” SchemeRead the Press Release
PROVIDENCE, R.I. – Saah Johnson, 33, of Fall River, Mass., pleaded guilty in U.S. District Court in Providence, R.I., today to his participation in a “black money” scheme which defrauded a Massachusetts man of $100,000, announced United States Attorney Peter F. Neronha and Ted A. Arruda, Resident Agent in Charge of the Providence Office of the U.S. Secret Service.
Black money schemes defraud individuals by persuading them that large quantities of banknote-sized paper is U.S. currency which has been dyed black, typically to avoid detection by customs agents. The victim is persuaded, with the prospect of sharing in the proceeds, to supply real currency in order to facilitate the removal of the black covering that overlays the supposedly genuine black currency. In reality, except for a few genuine currency bills used to advance the scheme, the “black money" is usually black construction paper.
Appearing before U.S. District Court Judge John J. McConnell, Jr., Johnson admitted to the court that in October 2011, after several months of discussions, he and another person persuaded the victim to meet with them at a Providence hotel and to provide them with $100,000 in cash to process large quantities of “black money,” with a promised return of $300,000 in cash. Several hours after the “chemical process” to remove the black covering from several stacks of “black money” began, and Johnson and the other person had left the hotel room, the victim discovered that the stacks of “black money” were, in reality, stacks made up of mostly black construction paper. The $100,000 in cash provided by the victim had been stolen.
Johnson, who is detained in federal custody since his arrest on February 11, 2014, is scheduled to be sentenced on November 25, 2014.
Causing the interstate transportation of $5,000 or more in execution of a scheme to defraud is punishable by a statutory penalty of up to 10 years in federal prison, a fine of up to $250,000 and term of up to 3 years supervised release.
The case is being prosecuted by Assistant U.S. Attorney Richard W. Rose.
The Seekonk Police Department, Rhode Island Fire Marshal’s Office and the Rhode Island Department of Environmental Management provided assistance to the U.S. Secret Service in the investigation of this matter.
###
To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Maryland Man Pleads Guilty to Falsifying Employee Retirement Plan Documents to Avoid Contributing to Benefit Plans<br />Read the Press Release
An owner of an electrical contracting company pleaded guilty today to falsifying disclosure documents required under the Employee Retirement Income Security Act (ERISA), by intentionally under-reporting hours worked by employees to avoid contractually required contributions to employee benefit plans.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Rod J. Rosenstein of the District of Maryland, Special Agent in Charge Bill Jones of the Department of Labor Office of Inspector General, Office of Labor Racketeering and Fraud Investigations for the Washington, D.C. Regional Office and Director Mark Machiz of the Department of Labor’s Employee Benefits Security Administration Philadelphia Regional Office made the announcement.
At the plea hearing, Michael E. Sewell, 50, of Street, Maryland, admitted that the union agreement between his company, MESCO Inc., and the International Brotherhood of Electrical Workers Local 24 required him to make monthly contributions to seven employee health, welfare and pension benefit plans, and to file monthly remittance reports with the administrators of those plans.
Beginning in January 2009, however, Sewell began paying some wages earned by MESCO employees from the payroll of a second company he owned, Michael E. Sewell and Associates Inc., and failed to report those wages in monthly remittance reports to the administrator of the benefit plans. In addition, Sewell failed to make the required contributions to the employee benefit plans for those unreported wages. As a result, Sewell failed to contribute over $199,000 to the employee benefit plans. Sentencing is scheduled for Oct. 30, 2014.
This case was investigated by the Department of Labor and is being prosecuted by Trial Attorney Vincent Falvo Jr. of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Martin J. Clarke of the District of Maryland.Man Found Guilty of Drug Paraphernalia ConspiracyRead the Press Release
United States Attorney Deborah R. Gilg announced that John Ways, Jr., 48, of Omaha, Nebraska, was found guilty of Conspiracy to Sell and Offer for Sale Drug Paraphernalia, Conspiracy to Distribute and Possess with Intent to Distribute Controlled Substances, Conspiracy to Commit Money Laundering, and being a Felon in Possession of Ammunition, following a 13-day jury trial.
The evidence presented at the trial showed Ways, from approximately February 2010 to December 2012, operated head shops in Nebraska and Iowa called Exotica. The stores sold, among other things, drug paraphernalia and certain controlled substances which the witnesses referred to as bath salts, herbal incense, K2, and aromatherapy.
The evidence in support of the money laundering conspiracy showed that Ways laundered the proceeds from the sales of these items by conducting financial transactions at various banks and credit unions in the Omaha area.
The evidence in support of the felon in possession of ammunition count showed that Ways, a previously convicted felon, possessed 800 rounds of 5.56 mm ammunition at one of his two residences.The jury also returned a Special Verdict forfeiting to the United States approximately $1,125,000.00 of funds, various items of drug paraphernalia, ammunition, gun safes, two vehicles, several computers and related equipment and Ways’ corporation, NKOSI, Inc.
Ways faces a combined possible maximum sentence, on all four counts, of 55 years in prison. Ways’ sentencing is scheduled for November 20, 2014.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, with the assistance of the Omaha Police Department, Nebraska State Patrol, Lincoln Police Department, Douglas County Sheriff’s Office, Council Bluffs Police Department, South Sioux City Police Department, University of Nebraska at Lincoln Police Department, and Drug Enforcement Administration.
Lawsuit Filed in Manhattan Federal Court Seeks Forfeiture of Seven Dutchess County Properties Allegedly Purchased Using Proceeds of Long-Running Human Smuggling OperationRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and James T. Hayes, Jr., the Special Agent-in-Charge of the New York Field Office of the U.S. Immigration and Customs Enforcement’s (“ICE”) Homeland Security Investigations (“HSI”), announced today the filing in Manhattan federal court of a civil forfeiture action targeting seven properties alleged purchased in Dutchess County, New York, by Greek national NIKOLAOS PANAGIOTOPOULOS using the proceeds of a long-running human smuggling operation.
Manhattan U.S. Attorney Preet Bharara said: “With today’s civil complaint seeking forfeiture of seven Dutchess County properties allegedly purchased with the proceeds of a sprawling, lengthy human smuggling operation, we continue our work to take the profit out of crime whenever it touches the Southern District of New York. I would like to thank ICE HSI for helping our office to carry out that objective on this case.”
ICE HSI Special-Agent-in-Charge James T. Hayes, Jr., said: “These seizures are an important step in our efforts to dismantle the alleged worldwide human smuggling operation run by Panagiotopoulos. Criminal organizations should be on notice that the United States will not allow proceeds of criminal activity from anywhere in the world to be laundered in our country. HSI New York partners with HSI Attaché offices in Athens and around the world to work closely with U.S. Attorney’s offices to strip criminal organizations of their illicitly obtained assets.”
According to the allegations contained in the Complaint filed today in Manhattan federal court:
Since 2013, ICE HSI, in coordination with Greek law enforcement authorities, investigated the human smuggling and visa fraud activities of Greek national NIKOLAOS PANAGIOTOPOULOS. PANAGIOTOPOULOS is believed to have participated in human smuggling, passport fraud, and visa fraud since at least 2003. As part of this scheme, PANAGIOTOPOULOS facilitated the smuggling of foreign nationals, principally Albanian citizens, into the United States, Australia, the United Kingdom, and Canada, in exchange for payments of thousands of dollars per smuggled person. He received payment for his illegal services principally in cash or money orders that he would then launder through bank accounts in the United States and, ultimately through the purchase of real estate, including real estate in Dutchess County, New York.
PANAGIOTOPOULOS has recently been arrested and charged by Greek authorities with crimes relating to false applications for passports, and is currently awaiting trial in Athens.
The Complaint includes claims for the forfeiture of seven properties located in the Town of Wappinger, New York, each of which is alleged to have been purchased with PANAGIOTOPOULOS’s fraud proceeds. The Complaint further seeks civil money laundering penalties in the amount of at least $373,297.93.
Mr. Bharara thanked ICE HSI for their work on the investigation.
This civil forfeiture and money laundering case is being overseen by the Office’s Money Laundering and Asset Forfeiture Unit. Assistant U.S. Attorney Andrew C. Adams is in charge of the suit.
Las Cruces Man Arrested for Using the Internet to Make a ThreatRead the Press Release
ALBUQUERQUE – Zachary Milton Hess, 19, of Las Cruces, N.M., made his initial appearance in Las Cruces federal court yesterday on a criminal complaint charging him with using the Internet to make a threat or to maliciously convey false information. Hess remains in custody pending a detention hearing scheduled for August 28, 2014.
The criminal complaint alleges that on May 27, 2014, an individual anonymously threatened to “shoot [his] college campus up in 3 days” and identified his school as “NMSU” while “chatting” on an Internet chat website. According to the criminal complaint, another individual saw the threat and posted a screen shot of the threat onto NMSU’s FaceBook page. Thereafter, the threat was passed onto law enforcement, including the FBI. The FBI’s investigation revealed that the IP Address for the Internet connection from which the threat was posted was subscribed to Hess’ residence. An examination of Hess’s computer revealed that the computer allegedly had been used to visit the website on which the threat was posted.
The criminal complaint alleges that NMSU expended significant resources in responding to the threat. Among other things, NMSU officials informed approximately 18,774 students, facility, staff and private citizens about the anonymous threat; advised students, faculty and staff to depart the campus; and shut down its new student registration process. NMSU allegedly lost approximately 1000 staff hours in responding to the threat.
If convicted on the charge in the criminal complaint, Hess faces a statutory maximum penalty of ten years in prison. Charges in criminal complaints are merely accusations and defendants are presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by the Las Cruces office of the FBI and the NMSU Police Department, and is being prosecuted by Assistant U.S. Attorney Marisa A. Lizarraga of the U.S. Attorney’s Las Cruces Branch Office.
Lapwai Man Sentenced for Violating Sex Offender Registration and Notification ActRead the Press Release
COEUR D'ALENE - Jacob Russell Jackson, 54, of Lapwai, Idaho, was sentenced yesterday to 21 months in prison followed by a lifetime of supervised release for violating the Sex Offender Registration and Notification Act, U.S. Attorney Wendy J. Olson announced. Jackson pleaded guilty to the charge on May 7, 2014.
According to statements made in court, in 1996 Jackson was convicted and sent to federal prison for two counts of sexually abusing a child. This conviction required Jackson to register as a sex offender. Jackson admitted that between December 2012, and April 2014, he did not register as a sex offender in Idaho.
The case was investigated by U.S. Marshals Service and brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Laguna Pueblo Man Pleads Guilty to Assault Charge Arising out of Drive-By Shooting at Acoma Pueblo HomeRead the Press Release
ALBUQUERQUE – Preston Chino, 21, a member and resident of Laguna Pueblo, pleaded this morning to a federal assault charge. Under the terms of his plea agreement, Chino will be sentenced to 96 months in prison followed by a term of supervised release to be determined by the court.
Chino was one of four members of Laguna Pueblo charged with assault and firearms offenses arising out of a drive-by shooting at an Acoma Pueblo home. Chino and his co-defendants, Cameron Joseph Kasero, 21, Joseph Edward Lucero, 24, and Andrea Carrillo, 22, were indicted in July 2013, for allegedly assaulting two men and a woman on Dec. 9, 2012, by discharging firearms at a residence located in Acoma Pueblo in Cibola County, N.M.
This morning, Chino admitted aiding and abetting Kasero and Lucero in assaulting the three victims by providing shotguns and ammunition to Kasero and Lucero. Chino also admitted driving Kasero and Lucero to the victims’ Acoma Pueblo home where they discharged the shotguns multiple times in the direction of the residence.
Chino is in federal custody and will remain detained pending his sentencing hearing, which has yet to be scheduled.
Co-defendants Kasero, Lucero and Carrillo have entered not guilty pleas to the charges in the indictment. Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty beyond a reasonable doubt in a court of law.
This case was investigated by the Albuquerque office of the FBI, the Laguna Agency of the BIA’s Office of Justice Services, the Acoma Pueblo Tribal Police and the Pueblo of Laguna Tribal Police Department. Assistant U.S. Attorney Kyle T. Nayback is prosecuting the case.
Knoxville Man Sentenced to Three Years in Prison for Defrauding His Elderly Great AuntRead the Press Release
KNOXVILLE, Tenn. – On Aug. 27, 2014, Mark Kevin Tudor, 42, of Knoxville, Tenn., was sentenced to serve 36 months in federal prison by the Honorable Pamela L. Reeves, U.S. District Judge for the Eastern District of Tennessee. Tudor pleaded guilty in April 2014 to federal wire fraud charges.
As part of the sentence imposed, upon his release from prison Tudor will be on supervised release for a period of three years. The Court further ordered Tudor to pay the victim $266,227.80 in restitution.
The investigation determined that Tudor abused a position of trust after having been granted a power-of-attorney by his 93 year-old great aunt, who suffered from a visual disability and needed assistance with her financial affairs. Without his great aunt’s permission or authority, Tudor systematically depleted the victim’s bank and credit union account and life insurance policy. In total, Tudor stole over $267,000 from the victim before the fraud was discovered, which nearly depleted the victim’s life savings. According to a written statement by the victim read in court, when the victim discovered the fraud only $347 remained in her credit union account, which had held over $200,000 before the theft.
U.S. Attorney William C. Killian emphasized the importance of the prosecution of fraud committed against the elderly. “Senior citizens are among the most vulnerable members of our society to financial crimes. Those who take advantage of the trust placed in them by the elderly, by defrauding them in violation of federal law, will be investigated and prosecuted,” said Killian.
This case was jointly investigated by the Knoxville Police Department and the U.S. Postal Inspection Service. Assistant U.S Attorney Matthew Morris represented the United States.
Justice Department Requires Divestiture in Tyson Foods Inc. Acquisition of the Hillshire Brands CompanyRead the Press Release
The Department of Justice announced today that it will require Tyson Foods Inc. to divest Heinold Hog Markets, its sow purchasing business, in order to proceed with its $8.5 billion acquisition of The Hillshire Brands Company. The department said that, without the required divestiture, the transaction would have combined companies that account for more than a third of sow purchases from U.S. farmers, thereby likely reducing competition for purchases of sows from farmers.
Three state attorneys general – of Illinois Iowa, and Missouri – joined the department in the civil lawsuit filed today in the U.S. District Court for the District of Columbia to block the proposed transaction. At the same time, the department filed a proposed settlement that, if approved by the court, would resolve the competitive concerns alleged in the department’s lawsuit.
“Farmers are entitled to competitive markets for their products. Today’s proposed settlement will help ensure that hog breeders in the United States will continue to receive the benefits of vigorous competition when selling sows,” said Bill Baer, Assistant Attorney General in charge of the Antitrust Division. “Without the divestiture, the proposed acquisition would have eliminated a significant customer for farmers’ sows and likely would have resulted in less competition in this important agricultural market.”
Sows are sold by farmers for processing into sausage. Both Tyson’s Heinold Hog Markets and Hillshire buy sows from U.S. farmers. Heinold Hog Markets buys sows from farmers, sorts the sows at buying stations and resells and trucks the sows to sausage producers. Hillshire buys sows directly from farmers, which it then makes into sausage sold under the Jimmy Dean and Hillshire Farm brands. The acquisition of Hillshire by Tyson Foods Inc. would combine two major purchasers of sows from farmers in the United States and eliminate the benefit farmers have received from the competition between Hillshire and Tyson’s Heinold Hog Markets.
Under the terms of the proposed settlement, Tyson must divest Heinold Hog Markets in its entirety to a buyer approved by the Antitrust Division.
Tyson Foods Inc. is a Delaware corporation with its principal place of business in Springdale, Arkansas. Tyson is one of the world’s largest meat companies. It produces, distributes and markets chicken, beef, pork and prepared food products. Tyson Hog Markets Inc., a subsidiary of Tyson and Tyson Fresh Meats Inc., buys and resells sows through its Heinold Hog Markets division. In 2013, Tyson had total revenues of approximately $34.4 billion; Heinold Hog Markets had overall revenues of approximately $270 million.
The Hillshire Brands Company is a Maryland corporation with its principal place of business in Chicago, Illinois. Hillshire is a manufacturer and marketer of brand name food products for the retail and foodservice markets, including sausage, hot dogs and luncheon meats. Its brand names include Jimmy Dean, Ball Park and Hillshire Farm. Hillshire’s total revenues were approximately $3.9 billion for the year ended June 29, 2013.
As required by the Tunney Act, the proposed settlement, along with the department’s competitive impact statement, will be published in the Federal Register. Any person may submit written comments concerning the proposed settlement during a 60-day comment period to William H. Stallings, Chief, Transportation, Energy, and Agriculture Section, Antitrust Division, U.S. Department of Justice, 450 5th Street, N.W., Suite 8000, Washington, D.C. 20530. At the conclusion of the 60-day comment period, the U.S. District Court for the District of Columbia may enter the proposed final judgment upon finding that it is in the public interest.Justice Department Files Suit Against City of St. Anthony Village over Denial of Permit for MosqueRead the Press Release
Acting Assistant Attorney General Molly Moran for the Justice Department’s Civil Rights Division and U.S. Attorney Andrew M. Luger for the District of Minnesota today announced the filing of a lawsuit against the city of St. Anthony Village for an alleged violation of the Religious Land Use and Institutionalized Persons Act of 2000 (RLUIPA). Specifically, the lawsuit seeks injunctive relief requiring St. Anthony Village to allow the Abu Huraira Islamic Center to maintain a worship space in the basement of the St. Anthony Business Center.
“Religious freedom is one of our most cherished rights, and there are few aspects of that right more central than the ability of communities to establish places for collective worship,” said Acting Assistant Attorney General Moran.
“Freedom of religion and the right to peaceably assemble are enshrined for all Americans in the Bill of Rights,” said U.S. Attorney Luger. “This office conducted a thorough investigation of the circumstances surrounding the City Council’s decision to deny Abu Huraira the right to worship in the St. Anthony Business Center. We aggressively sought to resolve this matter without a lawsuit. However, it is a solemn duty of all United States Attorneys to uphold the Constitution. The people of Abu Huraira have a right to peaceably assemble – they have a right to practice their religion, and it’s our job to enforce that right.”
The complaint, filed in the U.S. District Court in Minneapolis, alleges that the St. Anthony Village City Council treated an application for a conditional use permit to assemble in the St. Anthony Business Center filed by Abu Huraira on less than equal terms as other, non-religious, conditional use permits for assembly. The denial of the necessary permit for the worship center unlawfully disfavored a religious use, because the light industrial zone where the building is located allowed “assemblies, meeting lodges and convention halls,” including a union hall with banquet facilities available to be rented by the public.
In addition to Abu Huraira’s treatment on less than equal terms to similarly situated secular organizations, the denial of Abu Huraira’s permit substantially burdens its members in practicing their faith. Abu Huraira members’ ability to exercise their religion is limited by their current worship site options, including, but not limited to the fact that members in the northern Twin Cities are burdened from praying together based on the length of time it takes to travel to the worship centers in south Minneapolis. Moreover, prayer space at locations in south Minneapolis are too small to accommodate members, many of whom often have to pray in hallways or entryways, and hold multiple prayer sessions in shifts to accommodate crowds.
After conducting a search for adequate prayer space lasting nearly three years, Abu Huraira entered into a purchase agreement for the St. Anthony Business Center. The business center is an ideal location for Abu Huraira because it is centrally located, has a basement measuring approximately 11,600 square feet and has ample parking. The business center is in the “light industrial” zone of St. Anthony, conditional uses for which included “assemblies, meeting lodges, and convention halls.”
In February 2012, after consulting St. Anthony Village officials, Abu Huraira applied for a conditional use permit for assembly in the light industrial zone. It was denied on June 12, 2012, by a St. Anthony Village City Council vote of 4-1, despite the professional St. Anthony City Planning Staff recommending approval, despite the St. Anthony Village City Planning Commission recommending approval and despite members of Abu Huraira attending each meeting of the Council and Planning Commission to address any concerns held by the city.
The lawsuit filed by the department seeks to enforce Abu Huraira’s constitutional rights under RLUIPA by requiring St. Anthony Village to grant the conditional use permit to allow Abu Huraira to assemble for the purpose of worship.
Assistant U.S. Attorneys Bahram Samie, Ana Voss, and Greg Brooker as well as Justice Department attorneys from the Civil Rights Division are representing the United States in this matter.
RLUIPA, enacted in 2000, contains multiple provisions prohibiting religious discrimination and protecting against unjustified burdens on religion exercise. Persons who believe that they been subjected to religious discrimination in land use or zoning may contact the Housing and Civil Enforcement Section of the Justice Department’s Civil Rights Division at 1-800-896-7743. More information about RLUIPA, including a report on the first ten years of its enforcement, may be found at http://www.justice.gov/crt/about/hce/rluipaexplain.php .
Indictment: Two Topekans Robbed Wendy'sRead the Press Release
TOPEKA, KAN. – Two Topeka residents were indicted in federal court Wednesday on robbery charges, U.S. Attorney Barry Grissom said.
George Christopher Walton, Jr., 37, who is in custody in the Shawnee County Jail, and Tashjaun Desanic Walton, 18, who is in custody in the Shawnee County Jail, are charged with one count of robbery. In addition, George Walton is charged with one count of brandishing a firearm during a robbery, and one count of unlawful possession of a firearm following a felony conviction. The crimes are alleged to have occurred Aug. 4, 2014, in Topeka, Kan.
The indictment alleges that on Aug. 4, 2014, the defendants robbed the Wendy’s restaurant at 728 Southwest Topeka Boulevard in Topeka. The indictment alleges that George Walton brandished a firearm during the robbery.
Upon conviction, the crimes carry the following penalties:
Robbery: A maximum penalty of 20 years in federal prison and a fine up to $250,000.
Brandishing a firearm: A penalty of not less than seven years and a fine up to $250,000.
Unlawful possession of a firearm following a felony conviction: A maximum penalty of 10 years and a fine up to $250,000.
The Topeka Police Department and the FBI investigated. Assistant U.S. Attorney Jared Maag is prosecuting.OTHER INDICTMENTS
James W. Duke, 51, currently of Converse, Texas, is charged with three counts of aggravated abuse of a child, two counts of sexual abuse of a minor, two counts of sexual exploitation of a child, and one count of transporting child pornography across state lines. The crimes are alleged to have occurred at various times from January 1997 to December 2000 on the Fort Riley military installation.
Upon conviction, the crimes carry the following penalties:
Aggravated sexual abuse of a child: A maximum penalty of life in federal prison and a fine up to $250,000 on each count.
Sexual abuse of a minor: A maximum penalty of 15 years and a fine up to $250,000 on each count.
Sexual exploitation of a child: Not less than 10 years and not more than 20 years and a fine up to $250,000 on each count.
Transporting child pornography: A maximum penalty of five years and a fine up to $250,000.The FBI investigated. Assistant U.S. Attorney Christine Kenney and Special Assistant U.S. Attorney Robin Graham are prosecuting.
Alfredo Rodriguez, 31, Kansas City, Kan., is charged in a superseding indictment with one count of conspiracy to distribute 5 kilograms or more of cocaine and one count of attempting to intimidate a witness in a federal criminal case. The drug trafficking crime is alleged to have occurred from April 2011 to December 2012 in Wyandotte County, Kan. The other crime is alleged to have occurred July 7, 2014.
If convicted, he faces a penalty of not less than 10 years and not more than life and a fine up to $10 million on the conspiracy charge, and a maximum penalty of 20 years and a fine up to $250,000 on the other counts. The FBI investigated. Assistant U.S. Attorney Sheri McCracken is prosecuting.
Kevin Smith, 31, Richmond, Kan., Justin Ingram, 29, Ottawa, Kan., and Elizabeth Diane Lewis, 33, Ottawa, Kan., are charged with one count of conspiracy to possess with intent to distribute methamphetamine. In addition, Ingram and Lewis are charged with one count of maintaining a residence at 707 S. Ash in Ottawa, Kan., in furtherance of drug trafficking; and Ingram is charged with one count of unlawful possession of a firearm by a user of controlled substances. The crimes are alleged to have occurred at various times from Jan. 1, 2014, to Aug. 12, 2014.
The defendants initially were charged in a criminal complaint filed Aug. 13, 2014, in U.S. District Court in Kansas City, Kan. The complaint alleged that during the investigation Ingram told another person that he had Semtex explosives and wanted to blow up a house where the mother of a detective with the Ottawa Police Department lived.
Upon conviction, the crimes carry the following penalties:
Conspiracy: Not less than 10 years and not more than life and a fine up to $10 million.
Unlawful possession of a firearm by a user of controlled substances: A maximum penalty of 10 years and a fine up to $250,000.
Maintaining a drug involved premises: A maximum penalty of 20 years and a fine up to $250,000.The Kansas Bureau of Investigation investigated. Assistant U.S. Attorney Sheri McCracken is prosecuting.
Noe Beltran, 33, Wichita, Kan., Cecilia Gomez, 49, Wichita, Kan., German Fernandez-Hernandez, 52, Wichita, Kan., and Ramona Gomez-Hernandez, 43, are charged with drug trafficking. The crimes are alleged to have occurred in 2014 in Sedgwick County, Kan.
Beltran is charged with one count of conspiracy to distribute methamphetamine and one count of possession with intent to distribute 21 pounds of methamphetamine.Gomez is charged with one count of conspiracy to distribute methamphetamine, count of possession with intent to distribute 21 pounds of methamphetamine, and one count of conspiracy to distribute two pounds of methamphetamine.
Fernandez-Hernandez is charged with one count of conspiracy to distribute two pounds of methamphetamine and five counts of distributing methamphetamine.
Gomez-Hernandez is charged with one count of possession with intent to distribute 21 pounds of methamphetamine.Upon conviction, the crimes carry the following penalties:
Conspiracy: Not less than 10 years in federal prison and a fine up to $10 million.
Possession with intent to distribute 21 pounds of methamphetamine: Not less than 10 years and a fine up to $4 million.
Distribution of methamphetamine: A maximum penalty of 20 years and a fine up to $1 million; or a penalty of at least five years and not more than 40 years and a fine up to $5 million, depending on the quantity.The Drug Enforcement Administration investigated. Assistant U.S. Attorney Mona Furst is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Indictment Charges West Chester Man with Possession of Child PornographyRead the Press Release
Stephen Paradis, Jr., 23, of West Chester, PA, was charged today by Information with possession of child pornography, announced United States Attorney Zane David Memeger. The information alleges that on or about December 10, 2013, Paradis, Jr., possessed one or more visual depictions of minors engaging in sexually explicit conduct.
If convicted the defendant faces a maximum possible sentence of ten years’ imprisonment and a three-year period of supervised release.
The case was investigated by U.S. Immigration & Customs Enforcement Homeland Security Investigation (HSI), the Delaware County District Attorney’s Office, Pennsylvania Internet Crimes Against Children Task Force (PA ICAC), the National Center for Missing and Exploited Children (NCMEC), and is being prosecuted by Assistant United States Attorney Roberta Benjamin.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525HP Executive Assistant Fuels Million Dollar Spending Spree with Stolen Company FundsRead the Press Release
San Diego, CA - Holli Dawn Coulman, who served as an executive to a Hewlett Packard (“HP”) Senior Vice President from 2008 to May 2012, admitted defrauding the company of nearly $1 million through a series of fraudulent employee reimbursements. According to documents filed in federal court, Coulman fraudulently justified the payments of international trips, country club expenses, and high-end clothing purchases by falsely claiming them as legitimate business expenses.
Coulman began working at HP in San Diego in approximately June 2000, and served as an executive assistant. In this position, she received a number of American Express corporate credit cards, which were to be used solely for authorized and approved business expenses. Coulman, however, used the credit cards to support an extravagant and luxurious lifestyle, including spending: (1) in excess of $100,000 at the La Costa Resort Spa; (2) more than $43,000 at the Lodge at Pebble Beach and Casa Palmero at Pebble Beach; (3) thousands of dollars in airfare for trips to Hawaii and Europe; (4) thousands of dollars purchasing items at the Apple Store; (5) more than $33,000 in BTO Sports motocross gear; and (6) thousands of dollars in charges to Neiman Marcus and Nordstroms. In addition, Coulman admitted using the company credit cards to pay for more than $350,000 in expenses accrued by her brother’s custom painting business in Colorado.
As revealed in court pleadings, Coulman went to great lengths to cover up her theft of company funds. Among other things, she intercepted emails sent from HP program administrators that questioned her various personal expenditures. After intercepting the incriminating emails, Coulman would often delete them before they could be reviewed by her boss, a senior vice president. Occasionally, she would fabricate responses indicating that the expenses had been authorized by her boss, even going so far as to submit fabricated supporting documentation, receipts, and invoices. In total, Coulman stole approximately $954,292.31 from HP through her scheme.
United States Attorney Duffy added, “This type of brazen corporate theft directly harms the shareholders of the company and the public at large due to increases in the cost of goods sold by companies. I commend the FBI for its work in uncovering this theft.”
Coulman entered her guilty plea before U.S. Magistrate Judge Jill L. Burkhardt, and is scheduled for sentencing on before U.S. District Judge Marilyn Huff on December 1, 2014.
DEFENDANT Case Number: 14CR2424-H Holli Dawn Coulman Age: 43 CHARGESTitle 18, United States Code, Section 1343 (Wire Fraud)
Maximum penalty: 20 years of custody; $250,000 Fine (or twice the gross loss from the offense)INVESTIGATING AGENCY
Federal Bureau of Investigation*Indictments and complaints are not evidence that the defendant committed the crime charged. All defendants are presumed innocent until the United States meets its burden in court of proving guilt beyond a reasonable doubt.
Gretna Woman, Marcia Peterson, Pleads Guilty to Defrauding Government AgenciesRead the Press Release
U.S. Attorney Kenneth Polite announced today that MARCIA PETERSON, 61, a resident of Gretna, Louisiana, pleaded guilty to two counts of theft of government funds and one count of wire fraud.
According to court documents, PETERSON was the executive director and accountant for CDC 58:12, a non-profit with a stated mission of transforming communities by creating opportunities in housing, education, health, and economic development. During the relevant time period, CDC’s primary sources of funding were federal grants from the U.S. Department of Education and the U.S. Department of Housing and Urban Development. These grants were administered by the Louisiana Department of Education, the Housing Authority of New Orleans, and the City of New Orleans. The funds were to be used only for approved purposes, including supportive services for residents of a public housing development, summer programs for children, and educational services.
From 2011 through 2013, PETERSON improperly withdrew approximately $87,000 of these federal funds from CDC’s bank account and spent the money on gambling and other personal expenses. Additionally, in August 2012, while working as CDC’s director and accountant, PETERSON submitted a fraudulent claim for unemployment insurance benefits to the Louisiana Workforce Commission. From August 2012 to December 2012, PETERSON made weekly certifications in which she falsely represented that she was unemployed, resulting in the Louisiana Workforce Commission providing PETERSON approximately $4,199.
PETERSON faces a maximum term of 20 years on the wire fraud charge and 10 years imprisonment on each of the theft of government funds charges. Each count also carries a possible fine of up to $250,000 and up to three years of supervised release following any period of imprisonment. Sentencing is scheduled for December 17, 2014, before U.S. District Court Judge Martin L.C. Feldman.
The case was investigated by special agents of the U.S. Department of Housing and Urban Development - Office of Inspector General, the U.S. Department of Education - Office of Inspector General, the U.S. Department of Labor - Office of Inspector General, and the Federal Bureau of Investigation. The prosecution is being handled by Assistant United States Attorney Chandra Menon.
(Download Factual Basis )
Georgia Man Sentenced to 120 Months for Crack Cocaine ConspiracyRead the Press Release
GREENEVILLE, Tenn. – On Aug. 27, 2014, Micah Antwan Still, 25, of Covington, Ga, was sentenced by the Honorable J, Ronnie Greer, U.S. District Court Judge, to serve 120 months in federal prison. Still had previously been convicted of conspiracy to distribute crack cocaine.
In 2012 law enforcement began investigating a large-scale crack cocaine conspiracy originating out of Atlanta. As part of the conspiracy, numerous individuals, including Still, trafficked kilogram quantities of powder cocaine to Johnson City. Still facilitated the procurement of a series of rental cars in Georgia which were used to transport and distribute the drugs. Upon arrival in Johnson City, the drugs were manufactured into crack cocaine and then distributed throughout the area. The resulting drug sale proceeds were subsequently used to procure additional powder cocaine and repeat the cycle of distribution.
Individuals involved in this conspiracy who have already been sentenced include: Tavares Lashaun Dalton, 36, of Covington, Ga., who was sentenced to serve 240 months in prison; Marcus Lavoya Holliman, 36, of Atlanta, who was sentenced to serve 210 months in prison; Devin Deonte Blalock, 20, of Jonesboro, Ga., who was sentenced to serve 120 months in prison; Kwanza Tarveze Worthy, 20, of Atlanta, who was sentenced to serve 120 months in prison; Don Juan Glass, Jr., 22, of Atlanta, who was sentenced to serve 120 months in prison; Uhamma Castillo Delgado, II, 24, of Johnson City, Tenn., who was sentenced to serve 120 months in prison; Demario Jenard Serchion, 29, of Atlanta, who was sentenced to serve 77 months in prison; and Cody Alan Sherrill, 22, of Jonesborough, Tenn., who was sentenced to serve 41 months in prison. Five others remain to be sentenced in Greeneville, while still others are awaiting prosecution for their involvement in the conspiracy.
This long term investigation was the product of a partnership between the Johnson City, Tennessee Police Department; the First Judicial District Drug Task Force; and the Drug Enforcement Administration. Assistant United States Attorney Nick Regalia represented the United States.
This case was a result of the Department of Justice’s Organized Crime and Drug Enforcement Task Force (OCDETF) program, the centerpiece of the Department of Justice’s drug supply reduction strategy. OCDETF was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
Four Plead Guilty to Child Exploitation Offenses in FresnoRead the Press Release
FRESNO, Calif. — Four men have pleaded guilty to child exploitation offenses in separate cases in federal court this week, U.S. Attorney Benjamin B. Wagner announced.
Las Vegas Attorney Admitted He Traveled to Bakersfield to Find Minor Victims
Charles Max Pollock, 43, of Las Vegas, pleaded guilty today to two counts of travel with intent to engage in illicit sexual conduct. In August 2013, he made two trips from Las Vegas to Bakersfield and rented a hotel room. He encouraged minors to engage in sexually explicit conduct and engaged in at least one illegal sexual act with one minor victim. Pollock is licensed to practice law in Nevada and California. He is scheduled to be sentenced on November 17, 2014, by U.S. District Judge Lawrence J. O’Neill. Pollock faces a maximum sentence of 30 years in prison, a $250,000 fine, and a lifetime term of supervised release.This case is the product of an investigation by the Federal Bureau of Investigation and the Bakersfield Police Department. Assistant U.S. Attorney David Gappa is prosecuting the case. Case 1:14-cr-139 LJO
Defendant Arrested in Mexico After Anonymous Tip
Michael David Wilson, 30, of Delano, pleaded guilty today to one count of receipt and distribution of child pornography. An indictment against Wilson was filed on July 25, 2013, and a warrant was issued for his arrest. He is a U.S. citizen and was featured on an Immigration and Customs Enforcement (ICE) Operation Predator App as wanted for the outstanding warrant. Someone in Mexico provided an anonymous tip that Wilson had been living in Mexicali, Mexico. He was arrested in Mexicali on April 2, 2014, and turned over by Mexican immigration authorities to Homeland Security Investigation agents in Calexico. He is scheduled to be sentenced on December 1, 2014, by Senior U.S. District Judge Anthony W. Ishii. Wilson faces a maximum sentence of 20 years prison, a $250,000 fine, and a lifetime term of supervised release.This case is the product of an investigation by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant U.S. Attorney David Gappa is prosecuting the case. Case 1:13-cr-00293 AWI
Fresno Man Pleads Guilty to Receiving and Distributing Child Pornography
Mathew Shawn Broadway, 31, of Fresno, pleaded guilty today to one count of receipt and distribution of child pornography. Several of the more than 600 images depicted prepubescent minors. He is scheduled to be sentenced by Judge O’Neill on November 17, 2014. Broadway faces up to 20 years in prison, with a mandatory minimum sentence of five years, a $250,000 fine, and up to a lifetime of supervised release. This case is the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and the Central Valley Internet Crimes Against Children taskforce. Assistant U.S. Attorneys Megan A. S. Richards and Christopher D. Baker are prosecuting the case. Case 1:13-cr-268 LJOKern County Man Pleads Guilty to Possessing Child Pornography
Richard Leroy James, 50, of Caliente, pleaded guilty on Monday to one count of possession of child pornography. He admitted that he had received the images via the Internet. Several of the more than 600 images depicted prepubescent minors. James is scheduled to be sentenced on November 3, 2014, before Judge Ishii. James faces a maximum sentence of 20 years in prison, a $250,000 fine, and a lifetime term of supervised release. Assistant U.S. Attorney David Gappa is prosecuting the case. Case 1:13-cr-348 AWIFor each case, the actual sentence will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
These cases were brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about Internet safety education.Former Studio Assistant to Jasper Johns Pleads Guilty in Manhattan Federal Court to Engaging in $6.5 Million Scheme to Sell Stolen Johns WorksRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that JAMES MEYER, a former assistant to artist Jasper Johns, pled guilty in Manhattan federal court in connection with his sale of 22 works that he stole from Johns’ studio in Sharon, Connecticut. MEYER pled guilty today before U.S. District Judge J. Paul Oetken.
Manhattan U.S. Attorney Preet Bharara said: “James Meyer made millions by stealing and selling the valuable artworks that he was entrusted with maintaining. With his guilty plea today, Meyer will now have to pay for that decision.”
According to the Indictment, other documents filed in Manhattan federal court, and statements made at today’s guilty plea:
MEYER was a studio assistant for Johns for over 25 years, and was responsible for, among other things, maintaining a studio file drawer containing pieces of art that were not yet completed by Johns and not authorized by Johns to be placed in the art market.
Between September 2006 and February 2012, MEYER removed 22 individual pieces of art from the studio file drawer he was responsible for maintaining, and from elsewhere in Johns’ studio, and transported those pieces from the studio in Sharon to an art gallery located in Manhattan for the purpose of selling those works without Johns’ knowledge or permission. MEYER represented both to the owner of the gallery (the “Gallery Owner”) and to potential purchasers that these pieces had been given to him as gifts by Johns when, in fact, that was not true.
As part of his scheme, MEYER provided sworn, notarized certifications both to the Gallery Owner and to buyers stating that each piece was an authentic Johns work, that the art had been given to him directly by Johns, that he was the rightful owner of the piece, and that he had the right to sell that particular work. In addition, MEYER conditioned the sale of each of these works on the signed agreement by the purchaser that the art would be kept private for at least eight years, during which time the piece would not be loaned, exhibited, or re-sold.
MEYER also created fictitious inventory numbers for these pieces to give the impression that they were finished works that were authorized by Johns to be sold in the art market. Additionally, to facilitate certain sales MEYER created fake pages that he thereafter inserted into a ledger book of registered pieces of art maintained at Johns’ studio, and which he subsequently photographed, to give additional assurances to prospective buyers about the provenance, or history of ownership, of a particular piece.
During the course of the almost six-year scheme, the Gallery Owner sold 22 works of art on MEYER’s behalf for a total of approximately $6.5 million, of which $3.99 million was remitted directly to MEYER.
MEYER, 52, of Salisbury, Connecticut, pled guilty to one count of interstate transportation of stolen property, which carries a maximum sentence of 10 years in prison. Sentencing is scheduled for December 10, 2014, before Judge Oetken.
The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Bharara praised the outstanding investigative work of the FBI.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Christopher D. Frey is in charge of the prosecution.
U.S. v. James Meyer Indictment
Former Oglala Sioux Tribe Police Officer Indicted for Excessive ForceRead the Press Release
United States Attorney Brendan V. Johnson announced that a former Oglala Sioux Tribe police officer has been indicted by a federal grand jury for violating the constitutional rights of a man in her custody by repeatedly using her Taser on him without justification.
Rebecca M. Sotherland, a/k/a Becky Sotherland and Becki Sotherland, age 32, was indicted on August 26, 2014, for Deprivation of Rights Under Color of Law and Assault with a Dangerous Weapon.
The maximum penalty upon conviction is 10 years’ imprisonment and/or a $250,000 fine, 3 years of supervised release, and a $100 assessment to the Federal Crime Victims Fund. Restitution may also be ordered.The Indictment alleges that on August 15, 2014, Sotherland, while acting under color of law, repeatedly deployed a Taser on the victim causing bodily injury to the victim. The alleged offense took place in Manderson, South Dakota.
The charges are merely accusations and Sotherland is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs Office of Justice Services, and the Federal Bureau of Investigation. Assistant U.S. Attorneys Sarah Collins and Kevin Koliner are prosecuting the case, with assistance from Jared Fishman with the Civil Rights Division of the Department of Justice.
Former Mail Carrier Sentenced for Arranging Drug Deals by PhoneRead the Press Release
More than 100 Drug Deals Made By On-Duty Mail Carrier
Beckley, W.Va. – United States Attorney Booth Goodwin announced today that a Greenbrier County man was sentenced in federal court in Beckley for using a telephone to facilitate the sale of illegal drugs. Jack Edwin McCoy, 30, of White Sulfphur Springs, West Virginia was sentenced to three years of probation including four months of home confinement and 150 hours of community service.
McCoy pled guilty in May of 2014, admitting that on February 20, 2014, he used a telephone to tell a confidential informant working with law enforcement (CI) where to meet him to buy buprenorphine, a controlled substance found in the medication Suboxone. After the telephone conversation, the CI met McCoy in Ronceverte, West Virginia where McCoy sold the CI a Suboxone strip. At the time of the transaction, McCoy was working a shift as a mail carrier for the United States Postal Service. McCoy admitted that he had sold about 270 suboxone strips, and that he had sold about 100 times while on duty as a mail carrier. McCoy is no longer employed by the Postal Service.
The case was investigated by the Greenbrier Valley Drug and Violent Crimes Task Force and the United States Postal Service Office of Inspector General. The prosecution was handled by Assistant United States Attorney John File, and was pursued under the Greenbrier County Heroin and Pill Initiative, which is part of an ongoing effort by the United States Attorney’s Office for the Southern District of West Virginia, joined by federal, state and local law enforcement agencies, to aggressively pursue and shut down heroin and illegal prescription medication trafficking in communities across the Southern District.
Former Iowa State Senator Pleads Guilty to Concealing Federal Campaign ExpendituresRead the Press Release
A former Iowa State Senator pleaded guilty today to concealing payments he received from a presidential campaign in exchange for switching his support and services from one candidate to another and to obstructing a subsequent investigation into his conduct.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and Acting Assistant Director in Charge Timothy A. Gallagher of the FBI’s Washington Field Office made the announcement.
“An elected official admitted that he accepted under-the-table payments from a campaign committee to secure his support and services for a candidate in the 2012 presidential election,” said Assistant Attorney General Caldwell. “Campaign finance reports should be accurate and transparent, not tools for concealing campaign expenditures. Lying by public officials – whether intended to obstruct the FEC or federal investigators – violates the public trust and the law, and the Department of Justice does not tolerate it.”
“Today, Mr. Sorenson has taken responsibility for his crimes,” said Acting Assistant Director in Charge Gallagher. “Exploiting the political process for personal gain will not be tolerated, and we will continue to pursue those who commit such illegal actions.”
Kent Sorenson, 42, of Milo, Iowa, pleaded guilty today to one count of causing a federal campaign committee to falsely report its expenditures to the Federal Election Commission (FEC) and one count of obstruction of justice in connection with the concealed expenditures. The guilty plea was taken by Chief Magistrate Judge Celeste F. Bremer of the Southern District of Iowa for later review by Senior District Court Judge Robert W. Pratt. Sentencing will be scheduled at a later date.
According to a statement of facts filed with the plea agreement, Sorenson admitted that he had supported one campaign for the 2012 presidential election, but from October to December 2011, he met and secretly negotiated with a second political campaign to switch his support to that second campaign in exchange for concealed payments that amounted to $73,000. On Dec. 28, 2011, at a political event in Des Moines, Iowa, Sorenson publicly announced his switch of support and work from one candidate to the other.
The payments included monthly installments of approximately $8,000 each and were concealed by transmitting them to a film production company, then through a second company, and finally to Sorenson and his spouse. In response to criticism of his change of support for the candidates, Sorenson gave interviews to the media denying allegations that he was receiving any money from the second campaign committee, and noted that the committee’s FEC filings would show that the committee made no payments to him.
In his plea agreement, Sorenson also admitted that he gave false testimony to an independent counsel appointed at the request of the Iowa Senate Ethics Committee, which was investigating allegations from a former employee of the first presidential campaign. Sorenson testified falsely to the independent counsel about the concealed payments, in part to obstruct investigations that he anticipated by the FBI and FEC .
The case is being investigated by the FBI’s Washington Field Office, with assistance from the Omaha Field Office and the Des Moines Resident Agency. The case is being prosecuted by Election Crimes Branch Director Richard C. Pilger and Trial Attorney Robert J. Higdon Jr. of the Criminal Division’s Public Integrity Section.Former Bookkeeper for Chickasha Electrical Contractor to Serve 30 Months in Prison and Pay $336,950 in Restitution for EmbezzlementRead the Press Release
Oklahoma City, Oklahoma – TAMARA HOUSLEY (a/k/a "Tami Housley"), of Louden, Tennessee, was sentenced today by United States District Judge Joe Heaton to serve 30 months in prison for embezzling from her employer by committing wire fraud and for filing a false income tax return, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma. In addition, Housley was ordered to pay $336,950 in restitution.
Housley worked as a bookkeeper for an electrical contracting firm in Chickasha, Oklahoma. As bookkeeper, Housley’s duties included preparing checks, documenting accounts payable and receivable, inputting new employees into the payroll system, authorizing automatic draft payroll deductions, paying company taxes, and collecting mail. Although she was not authorized to sign company checks, she prepared checks for all payments, including business credit card statements. Housley also had exclusive access to the company payroll account.
According to court records, Housley starting using business credit cards in 2006 to make unauthorized personal purchases and directed payments to her personal PayPal account, pay her personal utility bills, cable television and cell phone bills, and purchase concert tickets. Housley had exclusive access to the company mail and withheld the monthly credit card statements from her boss and, when she resigned, even changed the billing address on one card to her home address. Starting in 2007, according to court records, Housley used her access to the company payroll account to fraudulently add her boyfriend to the weekly payroll as a "ghost employee." Housley was also charged with filing a false tax returns.
Housley was indicted on February 6, 2014. On April 22, 2014, she pled guilty to committing wire fraud and filing a false income tax return for 2010. She was sentenced today to serve 30 months in prison, followed by three years supervised release, and ordered to pay $336,950 in restitution to her employer and the IRS.
This case is the result of an investigation by the Federal Bureau of Investigation and IRS Criminal Investigation. It was prosecuted by Assistant U.S. Attorneys Julia E. Barry and Mark A. Yancey.
Former Aurora Driving School Owner Is Sentenced to Prison for Mail Fraud and Filing A False Tax ReturnRead the Press Release
DENVER – Stuart Bryan King, age 54, of Centennial, who is the owner of Little Lake Driving Academy, was sentenced today by U.S. District Court Judge William J. Martinez to serve 15 months in federal prison for mail fraud and filing a false tax return the U.S. Attorney’s office, IRS-Criminal Investigation, Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and the Colorado Department of Revenue, Motor Vehicle Investigations Unit announced. Following his prison sentence he was ordered to serve 3 years on supervised release. King was also ordered by Judge Martinez to pay a $3,500 fine as well as $33,772 in restitution to the IRS. King was charged by a complaint on March 5, 2013 and subsequently charged by a Grand Jury in Denver on April 8, 2013. He pled guilty on March 7, 2014 to a two count information.
According to the charging documents and plea, Little Lake Driving Academy (LLDA), located at 1415 Havana Street in Aurora, Colorado, acted as a third party tester for the State of Colorado’s Department of Revenue, Division of Motor Vehicles, administering written and driving examinations on behalf of the State of Colorado in order for an individual to obtain a Colorado Driver’s License. All driving schools must meet specific requirements and comply with Colorado State law in order to be a third party tester for the Division. The company provided the requisite testing for individuals to obtain a basic operator’s driver’s license and/or instruction permit in the State of Colorado. King owns Little Lake Driving Academy, and is a licensed tester with the State of Colorado. King was authorized to conduct driver education classes as well as certify an applicant’s successful written and driving examinations so they could receive the valid Colorado driving documents.
From August 2009 through November 2012, King and an employee of LLDA knowingly devised and participated in a scheme to defraud the Colorado Department of Revenue, Division of Motor Vehicles (DMV) by falsely certifying that applicants for a Colorado Driver’s License and instruction permit had successfully completed the required testing. As part of the scheme, the two defendants falsely certified that applicants had taken and passed the written tests. The applicants then presented the certified documents to the DMV and received by mail a State of Colorado driver’s license and/or instruction permit.
As a result of the scheme, driver's licenses were mailed to applicants and during 2009 through 2012, and King administered nearly 1,000 of these "tests" collecting $323,050 in fees. King owned La Lagunilla, Inc. and Sovereign Enterprises, Ltd. which did business as Little Lake Driving Academy. For tax years 2009 through 2011, King failed to file business tax returns and under reported income which resulted in a tax loss of $33,772.
Furthermore, the investigation revealed that people who could not speak, read or write English traveled from Missouri and other states to Colorado. Those who traveled to Colorado from Missouri had previously purchased the identities of U.S. citizens and obtained Missouri identification cards in the names of the stolen identities. These individuals, after utilizing the services of Little Lake, turned in their Missouri identification cards to obtain Colorado driver’s licenses and instruction permits. In separate charging documents, 20 individuals who had utilized the services of Little Lake and who turned in Missouri identification cards were indicted in Colorado for Aggravated Identity Theft. To date, Catarina Alcon, Freddy Castro-Alcon, Lucia Contreras Perez, Juan Garcia, Elias Garcia-Perez, Diego Hernandez-Batz, Candelarlio Hernandez-Perez, Martha Jimenze-Ortiz, Gustavo Monteroso-Velasquez, Isnael Raymundo, Jose Antonio Rivera, Felix Solis, Carlos Villa-Flores and Elias Zetino-Vicente have been arrested based on the Aggravated Identity Theft indictments.
“The fraud committed by this defendant put the public’s safety at risk,” said U.S. Attorney John Walsh. “By providing documentation authorizing the issuance of driver licenses to those who have not properly qualified not only puts the driving public at risk, it also potentially hides individuals’ true identities.”
“Investigating and prosecuting tax fraud and identity theft are priorities for IRS Criminal Investigation,” Stephen Boyd, Special Agent in Charge for IRS Criminal Investigation, Denver Field Office. “We will continue to work with our law enforcement partners to bring those to justice who commit these crimes harming our citizens whose identities are stolen.”
“The fraudulent use of identification documents, both real and counterfeit, may allow the bearer to board an aircraft, improperly obtain a government benefit or allow a criminal to remain in the shadows undetected. These crimes represent a very real threat to our public safety and the security of our nation,” said Kumar Kibble, special agent in charge of HSI Denver. “Through the combined authorities and expertise of our federal, state and local law enforcement partners, we will continue to aggressively target those participating in or facilitating these crimes.”
This case was investigated by the Internal Revenue Service – Criminal Investigation, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and the Colorado Department of Revenue, Motor Vehicle Investigations Unit.
The defendants were prosecuted by Assistant U.S. Attorney Robert M. Brown.
Florida Man Pleads Guilty to Southside Manufacturing Corp. FraudRead the Press Release
DANVILLE, VIRGINIA – A Florida man, who was previously convicted of similar theft charges, pled guilty Monday, August 25, 2014, in the United States District Court for the Western District of Virginia in Danville to charges related to his theft of employee pension plan contributions and failing to pay the IRS the federal employment taxes withheld from employee paychecks.
Patrick Vincent Crowe, 62, most recently a resident of Florida, waived his right to be indicted and pled guilty to a two-count Information charging him with one count of theft or embezzlement from employee benefit plan and one count of failure to truthfully account for and pay withheld federal payroll taxes. As part of his plea agreement, Crowe was sentenced the same day to ten (10) years of federal incarceration.
“Mr. Crowe stole from his employees and ran a thriving local business into the ground,” United States Attorney Timothy J. Heaphy said today. “The United States Attorney’s Office will continue to pursue those like Mr. Crowe who fail to pay required federal taxes.”
According to a statement of facts entered into the record during the guilty plea hearing by Assistant United States Attorney Jennie L.M. Waering, Crowe was convicted in 2009 of two counts of theft and embezzlement from an employee benefit plan in Rhode Island and two counts of failing to pay over withheld employee taxes. As a result, he served 48 months in prison and, upon his release, was prohibited by the Employee Retirement Income Security Act of 1874, from serving any employee benefit plan as an administrator or representative in any capacity.
Prior to his release on February 28, 2012, Crowe filed articles of incorporation for The Loyola Fund, Inc., listing himself as Vice President. On February 29, 2012, the day after his release from federal incarceration, Crowe amended his articles of incorporation to list himself as President of The Loyola Fund, Inc., and almost immediately began to pursue the purchase of Southside Manufacturing Corporation in Danville, Virginia, for $2,922,780, a purchase which was completed on April 5, 2013.
Following the sale of Southside Manufacturing to Crowe, office bookkeepers continued to prepare 401(K) plan contribution checks, but Crowe would not release the funds. When confronted about the missing contributions, Crowe said that the checks fell out of his briefcase. In subsequent months, Crowe refused to sign similar checks. Others were returned with insufficient funds, despite the fact that Crowe was still paying himself $1,000 per week in salary.
In addition, upon the purchase of Southside manufacturing, Crowe ceased paying payroll taxes and often missed payments on the company’s employee medical plan. In December 2013, after Southside defaulted on their loans, creditors exercised their rights to take possession of Southside’s collateral, which included the premises and equipment. As a result, Southside Manufacturing closed its doors and more than 40 employees lost their jobs.
The federal employee tax withholding not paid by Crowe was $109,536, and the unpaid employer portion was $49,225.00. The pension plan theft loss totaled $8,765.79. The health plan theft loss was $6,421.86. The total restitution Crowe was ordered by the Court to pay was $173,949.01.
The investigation of the case was conducted by the United States Department of Labor, Office of Inspector General and the Employee Benefits Security Administration, the United States Internal Revenue Service, Criminal Investigations Division, and the Pittsylvania County Sheriff’s Office. Assistant United States Attorney Jennie L.M. Waering prosecuted the case for the United States.
Financier Steals Millions by Falsely Claiming Investor Funds Secured by Billion Dollar Mining CompanyRead the Press Release
San Diego, CA - United States Attorney Laura E. Duffy announced that William Ison pled guilty earlier today to defrauding investors, including San Diego residents, of nearly $7 million. According to documents filed in federal court, Ison obtained these funds between March 2008 and September 2012 by falsely claiming that the funds would be secured by his own mining company which was supposedly worth billions of dollars.
In his guilty plea, Ison admitted helping Douglas Ellingson (who previously pled guilty and is awaiting sentencing) solicit investors for “private placement programs” through Ellingson’s business entity, Destiny’s Partners Ventures. Among other things, Ison gave presentations to potential investors at seminars throughout the United States, in which he made fraudulent representations to induce individuals to invest with Ellingson. These false representations included the claim that investors’ funds would not be subject to risk as they were backed by Ison’s multi-billion dollar mining company.
In order to mislead investors, Ison claimed that his role as President of Blue Diamond Excavation, Inc. (“BDE”), a mining excavation company based in Newport Beach, allowed him to safely secure loans as its assets were worth $86 billion. In fact, BDE had yet to begin mining operations or produce any income from mining. Ison embellished his story by falsely telling investors that he had already used BDE’s assets to secure medium-term notes (“MTNs”) valued at $2-2.5 billion. Ison went so far as to claim that individuals had already committed to purchase one MTN worth $250 million as a “guaranteed exit sale” in the event capital was required to replace investor funds. In fact, Ison had not obtained any MTNs and no buyers had been secured.
Ison also misled potential investors by claiming that he had already been involved with incredibly successful investment programs in which he had personally made more than $100 million. He also lied to investors by telling them that he managed a consortium of large non-profit foundations that donated more than a trillion dollars annually to various humanitarian causes. During his plea, Ison admitted that he had not received such profits, did not personally manage active non-profit foundations, and that the claimed donations were fictitious.
Ellingson and Ison initially wire-transferred investor funds for placement in the Winsome Investment Trust, through James Pantazelos and Robert Andres. Both Pantazelos and Andres have already pled guilty for their roles in the fraud scheme. Pantazelos was sentenced in Chicago to 114 months in custody on February 15, 2013, and ordered to pay over $3.3 million in restitution (United States v. Pantazelos, No. 11CR50078 (N.D. Ill. 2011)). Andres is presently scheduled to be sentenced in Utah on September 1, 2014 (United States v. Andres, No. 11CR0985-RJS (D. Utah 2011).
Ison entered his guilty plea before U.S. District Court Judge Dana M. Sabraw, and he is scheduled for sentencing on January 30, 2015. Ellingson is presently scheduled to be sentenced by Judge Sabraw on October 24, 2014.
DEFENDANT Case Number: 12CR4030-DMS William Ison Age: 54 CHARGESTitle 18, United States Code, Sections 371, 1343 (Wire Fraud Conspiracy)
INVESTIGATING AGENCY
Maximum penalty: 5 years of custody; $250,000 Fine (or twice the gross loss of the offense)Federal Bureau of Investigation
Internal Revenue Service*Indictments and complaints are not evidence that the defendant committed the crime charged. All defendants are presumed innocent until the United States meets its burden in court of proving guilt beyond a reasonable doubt.
Detroit Man Sentenced to More Than 12 Years in Prison for Armed CarjackingRead the Press Release
A Detroit man was sentenced to 12 years and 11 months in prison following his guilty plea to armed carjacking, United States Attorney Barbara L. McQuade announced today.
McQuade was joined in the announcement by Special Agent in Charge Paul M. Abbate, Federal Bureau of Investigation.
U.S. District Judge David M. Lawson also ordered that Vantanez Trotter serve five years of supervised release following his release from custody. Trotter’s sentence will begin after he completes a state sentence for assault to commit great bodily harm that he is currently serving.
The evidence in the case showed that on December 8, 2012, the owner of a 2013 Mercedes and his cousin sat in the car outside of a house on Evergreen in Detroit. As the two spoke, a Ford Focus parked in front of them. Two men, each armed with an AK-47 type rifle and wearing masks, emerged from the Focus and ordered the victims out of the car and to the ground. Trotter drove away in the Mercedes and the other man drove away in the Focus.
Detroit Police officers responded and located the Mercedes using location software. Trotter fled and stopped the car in Ecorse, where he fled on foot and was apprehended after short chase. Along his path, police recovered an AK-47 type rifle that was loaded with 30 rounds of ammunition.
United States Attorney Barbara McQuade stated: “Armed carjacking is a priority for federal prosecution because of the danger and fear that it creates for motorists. Federal convictions for carjacking bring long prison sentences that we hope will deter criminals from committing this crime.”
The cooperative efforts of the Detroit Police Department and the Federal Bureau of Investigation's Violent Crime task Force were recognized and applauded by U.S. Attorney McQuade. Assistant United States Attorneys John O=Brien and Jeanine Brunson of the office=s Violent and Organized Crime Unit prosecuted the case for the United States.Delaware County Man Sentenced for Stealing Identities as Part of A Tax Fraud SchemeRead the Press Release
PHILADELPHIA - Reynaldo Estrada, 50, of Brookhaven, PA, was sentenced today to 51 months in prison for stealing the identities of numerous patients of a local hospital as part of a tax fraud scheme. Estrada pleaded guilty on April 24, 2014 to one count each of conspiracy to commit identity theft, aggravated identity theft, and aiding and abetting the use of a false Social Security number. In addition to the prison term, U.S. District Court Judge Mitchell S. Goldberg ordered three years of supervised release, restitution in the amount of $409,779, and a $300 special assessment.
Between October 2010 and October 2011, while he was working for Crozer Chester Medical Center’s Environmental Services Department and at Community Hospital in Chester, Pennsylvania, Estrada stole scores of treatment authorization forms containing patients’ names, addresses, dates of birth, and Social Security numbers. Estrada admitted that he gave the forms to co-conspirators Rafael Henriquez Polanco and Yanira Lopez, who paid him for the stolen identities, knowing that Polanco and Lopez were using the forms as part of a tax fraud scheme. Polanco and Lopez are charged in a separate indictment with using the identifying information provided by Estrada to prepare and file approximately 144 false and fraudulent federal individual income tax returns claiming bogus refunds in excess of $1.7 million. Additionally, Polanco is separately charged by information with possessing both powder and crack cocaine with the intent to distribute. Both Polanco and Lopez have pleaded guilty to all charges against them.
The case was investigated by U.S. Immigration and Customs Enforcement Homeland Security Investigations (HSI), U.S. Department of State Diplomatic Security Service, U.S. Department of Labor Office of Inspector General, and Internal Revenue Service Criminal Investigations. It was prosecuted by Assistant United States Attorney Kevin Brenner.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Cullman Mother and Son Face Fraud and Tax Charges in Scheme to Steal from East Alabama Health CenterRead the Press Release
BIRMINGHAM -- Federal prosecutors today charged a Cullman mother and son in connection with a scheme to defraud federal government health agencies and a non-profit east Alabama health center of more than $100,000 for personal expenditures including electronic fish finders, truck tires, cell phones and an adult website membership.
The U.S. Attorney's Office for the Northern District of Alabama charged SHEILA OSBORNE PARKER and JAMES ROBERT PARKER in separate informations filed in U.S. District Court. U.S. Attorney Joyce White Vance, FBI Special Agent in Charge Richard D. Schwein Jr., IRS Criminal Investigation Special Agent in Charge Veronica Hyman-Pillot, and U.S. Department of Health and Human Services, Office of Inspector General, Atlanta Regional Office Special Agent in Charge Derrick Jackson announced the charges.
Sheila Parker, 59, faces six counts of wire fraud, two counts of bank fraud and two counts of failing to file federal income tax returns. James Parker, 33, faces five counts of wire fraud and two counts of failing to file income tax returns. Both defendants have entered plea agreements with the government.
Sheila Parker worked for Birmingham Health Care, a non-profit organization in Birmingham intended to provide free or low-cost health care services to the homeless and to people living below poverty level in the metro area. In 2008, BHC assumed responsibility for the fiscal affairs of Central Alabama Comprehensive Health Inc. in Tuskegee, and Sheila Parker began, on a contract basis, to perform bookkeeping and fiscal duties for that center. CACH was a non-profit organization intended to provide primary and preventative health care to people in east Alabama, regardless of their ability to pay.
Both community health centers began receiving grants from the Health Resources and Human Services Administration, an arm of the U.S. Department of Health and Human Services, more than 20 years ago, according to the charges and plea agreements filed today. The overwhelming majority of BHC and CACH funding comes through grants administered by HRSA and HHS, and the two centers have received millions of dollars from those grants, according to the court documents.
"Today, these defendants acknowledge that they took money from a federally funded community health center intended to serve the poor and uninsured so the defendants could enjoy a more lavish lifestyle and indulge an expensive hobby," Vance said. "That conduct is as unacceptable as it is criminal, and we are committed to addressing any criminal conduct that may have occurred as we move forward with the investigation," she said.
"It is outrageous that fraudsters, in order to fuel personal shopping sprees, would steal scarce taxpayer funds meant to provide critically needed health care services to poor and homeless individuals," Jackson said. "Our agency is dedicated to uprooting such fraud."
"Sheila Parker and James Parker completely disregarded the payment of their tax liability to the Internal Revenue Service," Hyman-Pillot said. "It is a federal crime for individuals to deliberately neglect their filing requirements to the United States government. These actions jeopardize the integrity of our tax system, which fosters voluntary compliance."
According to the charges and plea agreements in the case, the Parkers carried out their fraud as follows:
Sheila Parker enlisted her son's help with her duties for CACH and allowed him access to the center's bank accounts. She permitted, and sometimes instructed him to use CACH funds for personal purchases. The total loss amount attributed to the Parkers' fraud is $116,416 and the government seeks that amount in forfeiture from the two defendants.
The Parkers' fraudulent transactions on CACH accounts between March 2010 and May 2011 included a $2,799 charge at Best Buy for two Lowrance Fishfinder/Chartplotters, a $328 charge at Systems & Services Technologies to make a payment on a bass boat, $3,500 charged through PayPal to send to James Parker's then-girlfriend, a $668 charge at Tire Rack, and $14.95 spent at the adult website epoch.com to buy a one-month membership to "Jamie's World."
The bank fraud charges against Sheila Parker are the result of disputes she filed with Regions Bank on about 40 charges on CACH's bank account. Although those were fraudulent charges made by Sheila and James Parker, she disputed the charges in an effort to conceal the fraud. Regions Bank returned about $30,668 to the CACH account for the charges Sheila Parker disputed.
Sheila and James Parker both face failure to file federal income tax returns for the calendar years 2010 and 2011.
Sheila Parker acknowledges in her plea agreement that she failed to file a return on a gross income of $78,481 in 2010, and on $92,127 in 2011. She also acknowledges she failed to file returns every year from 2004 through 2012, and that for tax years 2008 through 2012, she owes the IRS $11,946.
James Parker acknowledges in his plea agreement that he failed to file returns for the tax years 2004 through 2011. In 2010, he had a gross income of about $90,215, of which $82,212 was illegal, according to his plea agreement. His gross income in 2011 was $24,729, all of which was illegal. According to his plea agreement, James Parker owes the IRS $17,658 for tax years 2004 through 2011.
The FBI, IRS Criminal Investigation Division, and the HHS OIG investigated the case, which Assistant U.S. Attorneys Tamarra Matthews-Johnson and Melissa Kay Atwood are prosecuting.
Crownpoint Man Pleads Guilty to Federal Child Sexual Abuse ChargeRead the Press Release
ALBUQUERQUE – Elbanal Al Johnson, 34, an enrolled member of the Navajo Nation who resides in Crownpoint, N.M., pleaded guilty this morning to a felony information charging him with abusive sexual contact. Under the terms of the plea agreement, Johnson will be sentenced to ten years in federal prison followed by a term of supervised release to be determined by the court. Johnson will have to register as a sex offender when he completes his prison sentence.
Johnson was arrested in March 2013, based on a criminal complaint charging him with sexually assaulting an 11-year-old Indian child in Crownpoint in Nov. 2012. According to court filings, the child victim was in Johnson’s care when Johnson committed the crime. During today’s proceedings, Johnson admitted sexually assaulting the child victim on Nov. 5, 2012.
Johnson has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has not been scheduled.
This case was investigated by the Gallup office of the FBI and the Crownpoint office of the Navajo Nation Division of Public Safety and is being prosecuted by Assistant U.S. Attorney Novaline D. Wilson.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Corporate Vice President Pleads Guilty to Healthcare Fraud SchemeRead the Press Release
ATLANTA – Daniel K. Lane, Jr. has pleaded guilty to conspiring to commit healthcare fraud for filing fraudulent claims with Medicare, Blue Cross Blue Shield, and other insurers.
“This healthcare fraud scheme originated in the executive suite of Compass Healthcare and ended with the company filing thousands of false insurance claims,” said United States Attorney Sally Quillian Yates. “After cheating the insurers by getting them to pay for high-cost medical equipment never provided, the defendant papered up the fraud by sending in altered prescriptions with false patient diagnoses to support the claims. His business model was really a scam.”
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “Leadership within the healthcare industry should be part of the cure, not the problem with respect to healthcare fraud related matters. The FBI will make every effort to focus its investigative resources and assets in identifying individuals such as Mr. Lane and presenting them for federal prosecution.”
"Protecting patients from unscrupulous billing practices and protecting the Medicare trust fund remains this agency's top priority," said Derrick L. Jackson, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General in Atlanta. "In addition to billing for services that were not provided, in some instances, this owner reported false diagnosis codes, making it difficult for the patients to subsequently obtain health insurance. Justice was well served in this instance."
According to United States Attorney Yates, the charges and other information presented in court: Daniel K. Lane, Jr. is the Vice President and Chief Financial Officer for Compass Healthcare, Inc., a durable medical equipment business headquartered in St. Louis, Mo., with offices in Atlanta, Ga., and other cities. Compass Healthcare specializes in providing compression stockings to patients who have been diagnosed with medical conditions such as chronic venous insufficiency and edema. Doctors may prescribe compression stockings, which come in different levels of tightness, as treatment for these conditions.
Lane’s position included responsibility for the billing of insurance companies for the compression stockings that Compass Healthcare provided to individuals who were covered by insurance. He fraudulently set up the company’s billing system so that in most instances it would automatically bill the insurers for the highest compression stocking, regardless of which stocking had actually been provided to the individual, in order to generate higher payments from Medicare, Blue Cross, and other insurers. As a result, Compass Healthcare routinely “upcoded” the claims it submitted to insurers for the stockings it had provided to individuals.
Lane conspired with an Office Manager for Compass Healthcare, Holly Keisker, and others to submit these false claims and conceal the fraudulent upcoding. Also as part of the scheme, Compass Healthcare included false diagnoses on its insurance claims to ensure payment. These false claims represented that Compass Healthcare customers had been diagnosed with various medical conditions, including chronic venous insufficiency and edema, to support the claims for high compression stockings, when in fact the customers had not been diagnosed by a doctor. Instead, Compass Healthcare used “blanket” diagnosis codes that were false to support insurance claims for compression stockings provided to customers who had no medical condition. Lane, Keisker, and others conspired to forge and alter doctors’ prescriptions so that they would support the fraudulent claims that had been submitted to insurers. They altered the prescriptions to falsely reflect that a high compression stocking had been prescribed and that the patient had been diagnosed with a medical condition. In 2011, Lane submitted altered prescriptions to Blue Cross in response to an audit conducted by the insurer.
Lane, 57, of St. Louis, Mo., pleaded guilty to one count of conspiracy to commit healthcare fraud. On September 19, 2013, Keisker, 61, of St. Louis, Mo., pleaded guilty to one count of conspiracy to commit health care fraud.
Sentencing for Lane is scheduled for November 19, 2014, at 10:00 a.m., before United States District Judge Willis B. Hunt, Jr.. Sentencing for Keisker is scheduled for December 10, 2014, at 10 a.m., before Judge Hunt.
This case is being investigated by Special Agents of the Federal Bureau of Investigation and the U.S. Department of Health and Human Services, Office of the Inspector General.
Assistant United States Attorneys Stephen H. McClain and Jeffrey W. Davis are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Corporate Executive Indicted for Child Porn, Sexual Exploitation of a ChildRead the Press Release
Project Safe Childhood
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced a corporate vice president was indicted by a federal grand jury today on charges related to child sexual exploitation and child pornography as the result of an undercover operation in which he believed he was meeting two minor girls for sex.
Daniel C. Irwin, 37, of Kansas City, Mo., was charged in an eight-count indictment returned by a federal grand jury in Kansas City. Irwin is an assistant vice president of accounting at State Street in Kansas City. Today’s indictment replaces a federal criminal complaint that was filed against Irwin on Aug. 8, 2014.
Today’s indictment alleges that Irwin attempted to entice a minor over the Internet to engage in illicit sexual activity between Jan. 14 and Aug. 8, 2014.
Irwin is also charged with four counts of distributing child pornography over the Internet, one count of receiving child pornography over the Internet, one count of using the mail to attempt to transfer obscene matter to a minor under the age of 16 and one count of possessing child pornography on his cell phone.
According to an affidavit filed in support of the original criminal complaint, a Kansas City, Mo., Police Department detective created an undercover profile on a public Web site that allows users to upload pictures, videos and stories of a sexual nature.
Irwin, who had earlier established a profile on this same Web site, sent a message to the undercover profile on Jan. 14, 2014, the affidavit says. Irwin allegedly sent an e-mail to the undercover profile that included pornographic images and a message that read in part, “Sure would enjoy helping u out with the girls!” Over the next two days, the affidavit says, there were numerous e-mail communications between Irwin and the undercover detective in which Irwin expressed an interest in meeting. The undercover detective informed Irwin that his daughters were 16 and 12 years of age and that he had been sexually active with them. Over the course of the next month, the affidavit says, Irwin periodically sent e-mails asking about the sexual activity of the undercover detective’s daughters.
According to the affidavit, the undercover detective received numerous e-mails during the weekend of Feb. 19 and 20, 2014, in which Irwin detailed the various sex acts he wanted to perform on the daughters. On Feb. 21, 2014, Irwin allegedly sent an e-mail asking to meet at Side Pockets in Kansas City, North. The undercover detective agreed, and they met in the parking lot on Feb. 21, 2014, then walked into the restaurant and sat down at a table together.
Irwin allegedly told stories of meeting random women from the Internet for sex and wanted to hear stories about the undercover detective’s sexual experiences with his daughters. Irwin explained that he would be interested in meeting the daughters and eventually having sex with them, the affidavit says. Irwin allegedly told the undercover detective about various illicit sex acts that he had engaged in, including an incident in which Irwin met a man in the Kansas City area that allowed him to watch while the man had sex with a miniature horse.
Irwin continued to send e-mail messages over the next two months, the affidavit says. These infrequent communications stopped on April 10, 2014, according to the affidavit, until Irwin sent another e-mail more than two months later on July 17, 2014. Irwin allegedly sent the undercover detective numerous photos and videos of child pornography. Irwin allegedly offered to trade additional child pornography for being allowed to engage in illicit sexual activities with the daughters.
Law enforcement officers executed a search warrant at Irwin’s residence on Aug. 8, 2014, and Irwin was arrested.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Patrick D. Daly. It was investigated by the Kansas City, Mo., Police Department and the FBI.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Company Sentenced for Improper Storage of Explosive Hazardous WasteRead the Press Release
PHILADELPHIA – Action Manufacturing Company, headquartered in Bristol, Bucks County, was sentenced today to a five-year term of probation and to pay a fine of $1.2 million for storing explosive hazardous waste illegally at its facility in Atglen, Chester County, PA. The company agreed to install a new president and chief executive officer, and the company will comply with a schedule for disposing of the backlog of waste built up over many years. U.S. District Court Judge Nitza I. Quinones Alejandro also ordered an $800 special assessment.
Action Manufacturing makes timing and arming devices for munitions and explosives. In its manufacturing process, Action Manufacturing mixes explosive powders, and also fills boosters, detonators and other items with explosive powders. Action Manufacturing's production process generates explosive solid waste, and the law requires that it be disposed of in accordance with the Resource Conservation and Recovery Act. The company admitted that, instead of sending its waste to an approved treatment, storage and disposal facility, it stockpiled explosive hazardous waste at its Atglen facility without a permit. In November 2011, civil inspectors from EPA's Land and Chemicals Division and the Pennsylvania Department of Environmental Protection inspected the Atglen site, and found the illegally stored waste, including scrap parts and components that were years or even decades overdue for disposal.
Action Manufacturing also admitted that it violated Department of Transportation recordkeeping regulations for transporting explosive material on the public roads.
The case was investigated by the EPA’s Criminal Investigations Division and the U.S. Department of Transportation Office of Inspector General. It was prosecuted by Assistant United States Attorney Elizabeth Abrams.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Cleveland Man Sentenced to 17 Years in Prison for Heroin TraffickingRead the Press Release
A Cleveland man was sentenced to 17 1/2 years in prison for his role in a major heroin trafficking conspiracy, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland office.
Maceo Moore, 37, pleaded guilty in February to one count of conspiracy to possess with intent to distribute heroin.
U.S. District Judge Christopher Boyko sentenced Moore to 210 months in federal prison. Boyko also ordered Moore to forfeit $9,550 in cash and a 2007 Mercedes Benz.
“This defendant was featured in movies and music videos but now his talents will be confined to federal prison,” Dettelbach said. “He played a starring role in a criminal conspiracy involving heroin and firearms, and for that, richly deserves this sentence.”
“Maceo Moore will no longer profit from harming others by selling drugs as his glamorization of a drug dealer’s lifestyle appropriately ends in a lengthy prison sentence,” Anthony said. “Thankfully, Moore was brought to justice by law enforcement professionals who work every day to protect the public from violent people like him.”
Moore obtained heroin that was originally shipped from Atlanta to Northeast Ohio, which he in turn sold to others, according to court documents.
Moore and others also planned and committed burglaries and robberies from other drug dealers, customers, and each other. This was done to fund their drug trafficking, to obtain heroin and other drugs, and to collect drug debts, according to court documents.
The men then sold the stolen heroin at discounted prices or used the stolen money to obtain heroin. They identified potential victims through a variety of ways, including targeting those who appeared to have expensive jewelry or cars or by using women to gather information about potential victims and report back to them. They sometimes used firearms or zipties to restrain victims, according to court documents.
According to a sentencing memo filed in the case, Moore told undercover officers in 2012: “I sold drugs, but I started getting more money when I started taking from the drug dealers. That’s how, honestly, that’s how I got my money. I sold drugs, but I always been the hustler, so I sold drugs, I find out such and such over here got it, they doing good, well, we going to get that. Flat out, we going to get it.”
This case is being prosecuted by Assistant U.S. Attorneys Matthew W. Shepherd, Daniel J. Riedl, and Matthew B. Kall, following a multi-year investigation by the Northern Ohio Law Enforcement Task Force (NOLETF).
The NOLETF is a long standing multi-agency task force comprised of investigators from the Federal Bureau of Investigation, Cuyahoga Metropolitan Housing Authority, Drug Enforcement Administration, Internal Revenue Service, U.S. Coast Guard Investigative Service, Cleveland Division of Police, Cleveland Heights Police Department, Cuyahoga County Sheriff’s Office, Euclid Police Department, Regional Transit Authority Police Department, Westlake Police Department, and Shaker Heights Police Department. The NOLETF is also one of the initial Ohio High Intensity Drug Trafficking Area (HIDTA) initiatives. HIDTA supports and helps coordinate numerous Ohio drug task forces in their efforts to eliminate or reduce drug trafficking in Ohio.
The investigation was assisted by the Hotel Interdiction Team, another HIDTA initiative composed of members of the FBI, Cuyahoga County Sheriff’s Office, Homeland Security Investigations, and police departments from Broadview Heights, Brooklyn, Brook Park, and Independence.
City of Buffalo Employee Sentenced for Stealing Thousands of Dollars from Parking MetersRead the Press Release
BUFFALO, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Francis Tronolone, 33, of Buffalo, N.Y., who was convicted of stealing thousands of dollars from the City of Buffalo, a Governmental agency which receives federal funding, was sentenced to 6 months in prison by U.S. District Judge, Richard J. Arcara. The defendant has also been ordered to pay $9,000 in restitution.
“As we have stated previously, this office intends to prosecute any public official responsible for stealing money or breaching their public trust,” said U.S. Attorney William Hochul. “This marks the fourth defendant who from a single government agency did just that.”
Assistant U.S. Attorney Maura K. O'Donnell, who handled the case, stated that the defendant was employed by the City of Buffalo for approximately 10 years. During that time, the defendant held various positions within the Department of Parking Enforcement, including parking meter collector and parking meter mechanic. In this capacity, Tronolone was responsible for collecting coins deposited into parking meters and repairing malfunctioning meters.
During the period of his employment, the defendant stole approximately $9,000 in coins from city parking meters, money that was supposed to be deposited into the City treasury. Some of the money was stolen from parking meters that had been rigged by other parking meter mechanics. Tronolone kept a small cooler in the back of his vehicle where he would conceal the stolen coins.
In 2011, the City of Buffalo's Department of Parking Enforcement initiated a review of parking meters after suspecting that quarters were being stolen from the meters. That review and subsequent investigation by the City of Buffalo and the FBI revealed that hundreds of thousands of dollars had been stolen from the City by multiple employees.
Tronolone is the third employee of the Department of Parking Enforcement to be sentenced in this case. James Bagarozzo was convicted of stealing over $200,000 from Buffalo parking meters and sentenced to 30 months in prison on August 16, 2013. Bagarozzo was also ordered to pay $210,000 in restitution. Lawrence Charles has also been convicted of stealing over $10,000 from Buffalo parking meters and was sentenced to six months and prison and ordered to pay $15,000 in restitution. A fourth employee, Franklin Lopez, pleaded guilty to stealing thousands of dollars from the City of Buffalo, and will be sentenced on October 16, 2014.
The sentencing is the culmination of an investigation on the part of Special Agents from the Federal Bureau of Investigation, and the Buffalo Police Department, under the direction of Commissioner Daniel Derenda.Chicago Man Allegedly Exploited U.S. Visa Program to Defraud Chinese Investors of $160 Million in Purported O’Hare ComplexRead the Press Release
CHICAGO — A Chicago man who purported to be building a $912 million hotel and convention center complex near O’Hare International Airport was indicted today on federal charges for allegedly exploiting a U.S. visa program to fraudulently raise approximately $160 million from some 290 Chinese nationals who invested in the project while seeking U.S. residency.
The defendant, ANSHOO SETHI, 30, of Chicago, was charged with eight counts of wire fraud and two counts of making false statements in a 10-count indictment returned today by a federal grand jury. He was the founder and a managing member of A Chicago Convention Center, LLC, which purported to be building the hotel and convention center on nearly three acres of land located at 8201 West Higgins Rd., east of the airport. Sethi, who was also the managing member of the Intercontinental Regional Center Trust of Chicago, LLC, will be arraigned on a date yet to be determined in U.S. District Court.
The indictment seeks forfeiture of at least $11 million in administrative fees that Sethi allegedly collected from Chinese investors and expended as part of the fraud scheme. Sethi misappropriated at least $320,000 of the fees to purchase luxury goods for himself, his family, and friends, and for an unrelated civil lawsuit settlement, to fund a cosmetic surgery business, and for other personal expenses, the indictment alleges.
The U.S. Securities and Exchange Commission sued Sethi over the purported project in early 2013 and the case was settled earlier this year. Approximately $147 million, which had been escrowed by Sethi and frozen by the SEC, was returned to Chinese investors.
The indictment alleges that between January 2011 and February 2013, Sethi defrauded investors and deceived the U.S. Department of Homeland Security’s U.S. Citizenship and Immigration Services (USCIS) in its review of visa applications through false statements and representations about the participation of established hotel brands in the project; the appraised value of the project site; government financing; the City of Chicago’s provision of Tax Increment Financing; the development of the project; and the use of the investors’ administrative fee.
According to the indictment, foreign nationals may obtain an EB-5 visa, qualifying them for U.S. residency, if they invested $1 million, or if they invested at least $500,000 in a domestic project in a high unemployment or rural area and their investment would create or preserve at least 10 jobs for U.S. workers. In addition, EB-5 visas were set aside to be granted to foreign investors in Regional Centers that promoted economic development, such as Sethi’s Intercontinental Regional Center Trust of Chicago. The USCIS granted Sethi’s application for Regional Center status in June 2011.
Sethi solicited Chinese nationals who were interested in obtaining EB-5 visas to invest $500,000 each plus a $41,500 administrative fee in A Chicago Convention Center and the Intercontinental Regional Center, representing that the $500,000 would be used for construction of the complex and the $41,500 would be used for administrative and marketing expenses, the indictment alleges. Each Chinese national who invested $541,500 in the project also applied for an EB-5 visa with USCIS, but no EB-5 visas were actually granted to investors through the convention center project.
A Private Offering Memorandum stated that each investment interest constituted approximately 0.025 percent ownership of the project, and it projected raising $249 million through investor contributions. Additional funding for the project would be obtained through a contribution of the three-acre site on Higgins Road, which Sethi allegedly represented had a greatly inflated appraised value of $177 million, approximately $339 million in government bond financing, and various government tax credits and grants, the memorandum stated.
To raise investment funds, Sethi used employees and foreign sales agents and provided them with numerous documents and marketing materials to distribute to investors in China. Sethi also made presentations regarding the project directly to investors in China, according to the indictment.
A Private Offering Memorandum stated that each investment interest constituted approximately 0.025 percent ownership of the project, and it projected raising $249 million through investor contributions. Additional funding for the project would be obtained through a contribution of the three-acre site on Higgins Road, which Sethi allegedly represented had a greatly inflated appraised value of $177 million, approximately $339 million in government bond financing, and various government tax credits and grants, the memorandum stated.
To raise investment funds, Sethi used employees and foreign sales agents and provided them with numerous documents and marketing materials to distribute to investors in China. Sethi also made presentations regarding the project directly to investors in China, according to the indictment.
The indictment further alleges that Sethi falsely represented that the project had executed franchise agreements with established hotel brands, namely Hyatt, Starwood, and Intercontinental Hotel Group, to operate at least three separate hotels at the complex, knowing at the time that no such agreements existed.
Sethi also allegedly falsely represented that that the State of Illinois and the federal government were investing funds and providing tax credits for the project, including circulating a forged letter stating that the project qualified for financing through the Illinois Finance Authority. He also falsely represented that the City of Chicago had agreed to provide approximately $97 million through Tax Increment Financing, and he distributed a fake agreement and a fake city ordinance as evidence that the project had been approved for TIF financing, the indictment alleges.
Sethi further falsely represented that the $41,500 administrative fee was fully refundable if the investors’ EB-5 visas were not approved, even though he knew that he had spent nearly all of the administrative fees collected and did not have the resources to repay the investors.
The indictment was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation. The SEC and the USICS assisted in the investigation.
The government is being represented by Assistant U.S. Attorney Sunil Harjani.
Each count of wire fraud carries a maximum penalty of 20 years in prison and a $250,000 fine, or an alternate fine of twice the loss or twice the gain, whichever is greater, and restitution is mandatory. Each count of making false statements carries a maximum sentence of five years in prison and a $250,000 fine. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Indictment
Chamico Employees Plead Guilty to Conspiracy to Commit Mail FraudRead the Press Release
U.S. Attorney Kenneth Polite announced that JERRY ATHEY, age 56; DAVID LOWE, age 48; and TERRY CASTILOW, age 48, all residents of Bogalusa, Louisiana, pleaded guilty today before U.S. District Court Judge Helen G. Berrigan, to one count of conspiracy to commit mail fraud for their participation in a scheme to defraud the Louisiana Workforce Commission of unemployment benefits. CASTILOW also pleaded guilty to one count of mail fraud.
CASTILOW, LOWE, and ATHEY, were indicted in April 2014, along with CHARLES “CHUCK” MIZELL, JR., JAMES CREEL, WILLIAM DARRYL KING, TENILLE NIELSON, JACQUELINE MYERS, and ROGER NADEAU, for mail fraud and conspiracy to commit mail fraud. According to the indictment, beginning at a time unknown, but no later than on or about September 24, 2009, and continuing through on or about January 11, 2014, MIZELL, JR., CASTILOW, KING, LOWE, CREEL, ATHEY, NIELSON, MYERS, and NADEAU, conspired to defraud the Louisiana Workforce Commission (“LWC”) of money and property by means of false and fraudulent representations, pretenses and promises, well knowing the representations, pretenses and promises were false, and mailed and caused to be mailed through the United States Postal Service unemployment (“UI”) benefit claim forms for the purpose of obtaining UI benefits to which they were not entitled. Specifically, at the time CASTILOW, KING, LOWE, CREEL, ATHEY, NIELSON, MYERS, and NADEAU applied for UI benefits and made weekly representations to LWC that they were unemployed and not getting paid, MIZELL, JR. actually employed them at Chamico, Inc., a Bogalusa construction company that concentrates on public, municipal, and industrial contracts.
MIZELL, JR., was the President of Chamico and, according to the factual basis signed by CASTILOW, LOWE, and ATHEY, he asked them to fraudulently file for unemployment so that he would not have to pay their full salaries during tough economic times for Chamico. CASTILOW, LOWE and ATHEY would each get cash from Chamico during the weeks they were claiming unemployment benefits reporting that they were not working and not getting any income from work.
When CASTILOW became Chamico’s office manager in 2013, she began assisting MIZELL, JR., in facilitating the scheme for the other employees. According to the factual basis for CASTILOW’s plea, she completed the unemployment forms for six Chamico employees fraudulently representing to the Louisiana Workforce Commission that the employees did not work at Chamico when she knew that they were working and/or receiving income from Chamico. CASTILOW kept the payroll records for the employees and the ledgers showing how much cash each employee who was participating in the unemployment scheme was to receive each week. CASTILOW cashed the checks that MIZELL, JR. endorsed for those employees he was paying while they were drawing unemployment and still working for him. On pay day, those employees picked up the cash payments from CASTILOW.
On May 7, 2014, JACQUELINE MYERS pleaded guilty to conspiracy to commit mail fraud for her participation in the same scheme. MYERS is scheduled to be sentenced on September 24, 2014. CASTILOW, LOWE, and ATHEY will be sentenced on December 3, 2014.
CASTILOW, LOWE, ATHEY, and MYERS each face a maximum term of five years incarceration, a $250,000 fine, and three years supervised release on the conspiracy conviction. CASTILOW faces an additional sentence of up to twenty years in prison, a $250,000 fine and three years supervised release for her mail fraud conviction.
The trial of the remaining defendants is scheduled for September 15, 2014.
The case was investigated by the Department of Labor-OIG and the Federal Bureau of Investigation with assistance from the Louisiana Workforce Commission. The case is being prosecuted by Assistant United States Attorney Emily K. Greenfield.
(Download Factual Basis - Athey )
(Download Factual Basis - Castilow )
(Download Factual Basis - Lowe )
Carrollton Woman Indicted in $185,000 Bank Fraud SchemeRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Carrollton, Mo., woman was indicted by a federal grand jury today for a $185,000 bank fraud scheme.
Carol Joyce Noble, 62, of Carrollton, was charged in a three-count indictment returned by a federal grand jury in Jefferson City, Mo.
Today’s indictment alleges that Noble defrauded Central Trust Bank in Jefferson City, Mo., in September 2011 as part of a scheme to obtain a fraudulent $185,000 loan. According to the indictment, Noble caused false loan documents to be prepared in order to obtain the loan to purchase a convenience store in Stover, Mo.
Also as part of the scheme, the indictment says, Noble caused the fraudulent appraisal of her Gravois Mills, Mo., residential property in order to obtain the loan. Noble allegedly changed the physical address of the residence to an adjacent residence by altering the last digit of the house number, unbeknownst to the neighbor. Noble allegedly met the appraiser at her neighbor’s home and misrepresented to the appraiser that it was her own. The appraiser then appraised the wrong home, the indictment says, at a value $100,000 higher than the true value of Noble’s property.
Noble is charged with three counts of bank fraud – two counts related to the fraudulent appraisal, and one count related to the loan documents she submitted to Central Trust Bank that falsely represented the value of her residence.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Lauren Kummerer. It was investigated by the FBI.Branson Woman Pleads Guilty to False Tax Return after Embezzling from Branson TheaterRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Branson, Mo., woman has pleaded guilty in federal court to filing a false tax return after embezzling more than $678,000 from the Andy Williams Moon River Theatre in Branson.
Dawn K. Cleveringa, 59, of Branson, waived her right to a grand jury and pleaded guilty before U.S. Magistrate Judge David P. Rush on Tuesday, Aug. 26, 2014, to a federal information that charges her with making a false federal income tax return.
Cleveringa was the controller of the Andy Williams Moon River Theatre from 1992 to 2009. Cleveringa’s duties as controller included conducting or supervising financial transactions of the Andy Williams Theatre, including employee payroll and issuing IRS Forms W-2 to employees.
By pleading guilty, Cleveringa admitted that she made unauthorized payments to herself, and unauthorized payments of her personal expenses, from funds of the Andy Williams Moon River Theatre in 2007 and 2008. To disguise her theft, Cleveringa manipulated the accounting system of the Andy Williams Moon River Theatre.Cleveringa has been prosecuted in state court for embezzling more than $678,000 from the Andy Williams Moon River Theatre. The federal charge is related only to the portion of the embezzled income for which Cleveringa did not pay federal income taxes.
Cleveringa admitted that she failed to include some of the embezzled income on her federal income tax return. In 2007, Cleveringa embezzled approximately $160,642 from the Andy Williams Theatre that was not claimed on her federal income tax return. In 2008, Cleveringa embezzled approximately $102,013 from the Andy Williams Moon River Theatre that was not claimed on her federal income tax return. The total amount embezzled during 2007 and 2008, which was not claimed on her federal income tax return, was approximately $262,656.
Under federal statutes, Cleveringa is subject to a sentence of up to three years in federal prison without parole, plus a fine up to $250,000 and an order of restitution. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Steven M. Mohlhenrich. It was investigated by IRS-Criminal Investigation.Branford Woman Admits Failing to Pay Taxes on Money Received During Gifting Tables Pyramid SchemeRead the Press Release
Follow @USAO_CT
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that EILEEN BRENNAN, 77, of Branford, pleaded guilty on August 19, 2014, before U.S. District Judge Alvin W. Thompson in Hartford to a federal tax charge related to her participation in an illegal pyramid scheme known as “Gifting Tables.”
According to court documents and statements made in court, a Gifting Table is configured as a four-level pyramid, with eight participants assigned to the bottom row, four participants assigned to the third row, two participants assigned to the second row, and one participant assigned to the top row. The top row participant is referred to as the “Dessert,” the two participants on the second row as “Entrees,” the four participants on the third row as “Soup and Salads,” and the eight participants on the bottom row as “Appetizers.” To join a Gifting Table, new participants were required to pay $5,000, typically cash, to the Dessert, that is, the participant occupying the top position on the pyramid. The $5,000 payment, which was fraudulently characterized as a gift, secured the new participant a position as an Appetizer on the bottom row. Participants progressed from the bottom row of the pyramid by recruiting additional people to join the Gifting Table. When eight new participants joined a Gifting Table, each having made a $5,000 “gift” to the person occupying the Dessert position at the top of the pyramid, the Dessert left the Gifting Table and kept the $40,000 paid by the eight new participants. That particular Gifting Table was then split, with the two participants occupying the Entree position on the second row moving to the top position (Dessert) of two new pyramids. The other incumbent members of the Gifting Table moved up a row on one of the two newly-formed pyramids, and the search for 16 new participants began. The success of the Gifting Tables depended on new participants joining and making the $5,000 “gift.”
In 2008, 2009 and 2010, BRENNAN received $100,000 while participating in the Gifting Tables scheme. Even though she had been advised by an attorney that the money was taxable income and not a gift, she failed to pay federal income taxes on the money she received.
BRENNAN pleaded guilty to one count of willful failure to file a return, supply information or pay tax, a charge that carries a maximum term of imprisonment of one year and a fine of up to $25,000. Judge Thompson scheduled sentencing for November 17, 2014.
This matter is being investigated by the Internal Revenue Service – Criminal Investigation Division and prosecuted by Assistant U.S. Attorneys Douglas P. Morabito and Peter S. Jongbloed.PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Bellevue Man Sentenced for Firearms CrimesRead the Press Release
Terrance Joseph Kilburg, age 48, from Bellevue, Iowa, received a 235-month prison term after an April 14, 2014, guilty plea to one count of being a felon in possession of firearms and ammunition and one count of possessing unregistered National Firearms Act Weapons.
In a plea agreement, Kilburg admitted he was a felon and possessed fifteen firearms and various forms of ammunition. Two of these firearms were short barreled, or “sawed-off,” shotguns. Kilburg also admitted to allowing an individual access to his property to manufacture methamphetamine. Items associated with the manufacture of methamphetamine were seized from his property during the execution of a search warrant. While on release pending sentencing, Kilburg fled the Northern District of Iowa and was declared a fugitive from justice. Kilburg was eventually arrested by the Michigan State Patrol.
Kilburg was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Kilburg was sentenced to 235 months’ imprisonment. A special assessment of $200 was imposed and he must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Kilburg is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Special Assistant United States Attorney Lisa C. Williams and investigated by the Iowa Department of Natural Resources, Iowa Division of Narcotics Enforcement, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 14-cr-1005.
Alabama Pest Control Company and Its Owner Sentenced for Unlawful Application of Pesticides at Georgia Nursing HomesRead the Press Release
Steven A. Murray, 54, of Pelham, Alabama, and his company, Bio-Tech Management Inc., were sentenced today in federal court in Macon, Georgia, after pleading guilty to charges of conspiracy, unlawful use of pesticides, false statements and mail fraud in connection with the misapplication of pesticides in Georgia nursing homes, announced Acting Assistant Attorney General Sam Hirsch of the Justice Department’s Environment and Natural Resources Division and U.S. Attorney Michael J. Moore for the Middle District of Georgia.
Murray was sentenced by District Judge Marc T. Treadwell to two years in prison, one year of supervised release and to pay a fine of $7,500. Bio-Tech was sentenced to three years of probation and to pay a fine of $50,000.
From October 2005 to June 2009, Murray and Bio-Tech provided monthly pest control services to hundreds of nursing homes in several southern states including Georgia, South Carolina, North Carolina and Alabama by spraying pesticides in and around their clients’ facilities. Bio-Tech employees routinely applied the pesticide Termidor indoors, contrary to the manufacturer’s label instructions, and then created false service reports to conceal that illegal use. After the Georgia Department of Agriculture made inquiries regarding Bio-Tech’s illegal use of Termidor and other pesticides, Murray directed several of his Bio-Tech employees to alter company service reports with the intent to obstruct the investigation.
“Today’s sentence is fair and just punishment for Murray and his company’s abuse of pesticides in nursing homes, their fraud against their clients, and their concealment of crimes from state and federal investigators,” said Acting Assistant Attorney General Hirsch. “Companies must abide by the laws that protect the public from the harmful effects of improperly applied pesticides.”
“This case is particularly disturbing because of the defendants’ intentional disregard for the wellbeing of a vulnerable group of victims whose safety was entirely in the defendants’ hands,” said U.S. Attorney Moore. “This sentence is a just punishment for them and a stern warning to others who might be similarly tempted in the future.”
“Today’s sentence highlights the importance of using pesticides in a safe and legal manner, especially around vulnerable populations,” said Maureen O’Mara, Special Agent in Charge of EPA’s criminal enforcement program in Georgia. “The defendant exposed patients to harmful pesticides which jeopardizing their health and safety and tried to cover it up by submitting false reports. EPA and its partner agencies are committed to holding these kinds of dangerous actions accountable to the law.”
The case was prosecuted by Trial Attorneys Richard J. Powers and Adam Cullman of the Environmental Crimes Section of the Justice Department’s Environment and Natural Resources Division, with assistance from the U.S. Attorney’s Office Middle District of Georgia. U.S. EPA-CID Region 4 in Atlanta conducted the investigation.Alabama Pest Control Company and Its Owner Sentenced for Unlawful Application of Pesticides at Georgia Nursing HomesRead the Press Release
WASHINGTON – Steven A. Murray, 54, of Pelham, Ala., and his company, Bio-Tech Management Inc., were sentenced today in federal court in Macon, Ga., after pleading guilty to charges of conspiracy, unlawful use of pesticides, false statements and mail fraud in connection with the misapplication of pesticides in Georgia nursing homes, announced Sam Hirsch, Acting Assistant Attorney General of the Justice Department’s Environment and Natural Resources Division, and Michael J. Moore, U.S. Attorney for the Middle District of Georgia.Murray was sentenced by District Judge Marc T. Treadwell to two years in prison, one year of supervised release and to pay a fine of $7,500. Bio-Tech was sentenced to three years of probation and to pay a fine of $50,000.
From October 2005 to June 2009, Murray and Bio-Tech provided monthly pest control services to hundreds of nursing homes in several southern states including Georgia, South Carolina, North Carolina and Alabama by spraying pesticides in and around their clients’ facilities. Bio-Tech employees routinely applied the pesticide Termidor indoors, contrary to the manufacturer’s label instructions and then created false service reports to conceal that illegal use. After the Georgia Department of Agriculture made inquiries regarding Bio-Tech’s illegal use of Termidor and other pesticides, Murray directed several of his Bio-Tech employees to alter company service reports with the intent to obstruct the investigation.
“Today’s sentence is fair and just punishment for Murray and his company’s abuse of pesticides in nursing homes, their fraud against their clients, and their concealment of crimes from state and federal investigators,” said Acting Assistant Attorney General Hirsch. “Companies must abide by the laws that protect the public from the harmful effects of improperly applied pesticides.”
“This case is particularly disturbing because of the defendants’ intentional disregard for the wellbeing of a vulnerable group of victims whose safety was entirely in the defendants’ hands,” said U.S. Attorney Moore. “This sentence is a just punishment for them and a stern warning to others who might be similarly tempted in the future.”“Today’s sentence highlights the importance of using pesticides in a safe and legal manner, especially around vulnerable populations,” said Maureen O’Mara, Special Agent in Charge of EPA’s criminal enforcement program in Georgia. “The defendant exposed patients to harmful pesticides which jeopardizing their health and safety and tried to cover it up by submitting false reports. EPA and its partner agencies are committed to holding these kinds of dangerous actions accountable to the law.”
The case was prosecuted by Trial Attorneys Richard J. Powers and Adam Cullman of the Environmental Crimes Section of the Justice Department’s Environment and Natural Resources Division, with assistance from the U.S. Attorney’s Office Middle District of Georgia. U.S. EPA-CID Region 4 in Atlanta conducted the investigation.
Questions concerning this case should be directed to Karen Moore, United States Attorney’s Office, at (478) 621-2606.
14 Area Defendants, Including 12 Felons, Charged with Illegally Possessing or Selling Firearms; More Than 100 Guns SeizedRead the Press Release
CHICAGO ― More than 100 assorted pistols, revolvers, rifles, and shotguns have been seized and 14 Chicago area defendants are facing federal firearms charges as a result of an investigation that ended yesterday and was led by the Bureau of Alcohol, Tobacco, Firearms and Explosives. ATF agents, together with Chicago police and other state and local law enforcement partners, executed arrest and search warrants yesterday and seized 17 firearms from a residence in Gary, Ind. The investigation, which began in January, relied in part on three confidential informants, including one who posed as a broker for an individual who sold firearms overseas.
Nine defendants were arrested yesterday while three others were already in state custody. Nine separate criminal complaints were unsealed charging 12 defendants with being felons-in-possession of firearms, one with dealing firearms without a federal license, and one with illegal possession of a machine gun with an obliterated serial number. Those arrested yesterday remain in federal custody pending detention hearings, which Magistrate Judge Jeffrey Cole scheduled for Thursday and Friday in U.S. District Court.
This investigation is the culmination of ATF’s 2014 Firearms Trafficking and Violent Crime Strategy, also known as the “Chicago Initiative,” a four-month mission involving concentrated resources and efforts to attack violent crime associated with illegal firearms and narcotics. During the broader initiative, and including yesterday’s developments, ATF agents arrested 90 state and federal defendants, executed 25 search warrants, and seized more than 270 firearms, as well as seized more than four kilograms of marijuana, more than a kilogram of heroin, and nearly a kilogram each of powder cocaine and crack cocaine.
“This investigation, coupled with our enhanced efforts over the last four months, makes a difference by reducing the potential for violence that is associated with the illegal possession and sale of firearms,” said Carl J. Vasilko, Special Agent-in-Charge of ATF’s Chicago Field Division.
“Every gun we take out of the hands of individuals who allegedly possess and sell them illegally helps reduce the risk of violent crimes occurring with those weapons,” said Zachary T. Fardon, United States Attorney for the Northern District of Illinois.
Chicago Police Superintendent Garry McCarthy said: “You have heard me say it repeatedly and I will say it again, we have too many illegal guns flooding our streets. But every little bit helps, and certainly this mission and confiscating as many weapons as we did will keep our communities safer.”
The Illinois State Police, the Cook County Sheriff’s Department, the Lake County, Ind., Sheriff’s Department, and task force officers from the Indiana State Police, and the Gary, Ind., Police Department also assisted in the investigation.
According to the complaints, in March of this year, one of the confidential informants (CI-3) identified an individual known as “Batman,” who agents later identified as JOHN THOMAS, as one of CI-3’s sources of illegally obtained firearms. CI-3 and Thomas had previously agreed that CI-3 would pay Thomas approximately $100 for every handgun and $150 for every long gun purchase that Thomas arranged for CI-3. Thomas allegedly arranged firearms transactions between CI-3 and other defendants, including ANTHONY LOGAN, who in turn allegedly arranged additional firearms transactions between CI-3 and other defendants. CI-3 also allegedly purchased firearms directly from STEVE THOMAS and WESLEY PICKETT. During these controlled purchases with the defendants, CI-3 posed as a firearms broker for an individual who sold firearms overseas. The complaint affidavits together detail 45 firearms that CI-3 purchased during the investigation. All of those guns were among a total of 108 firearms that were purchased or seized during the investigation.
Details of the nine complaints follow:
JOHN THOMAS, aka “Batman,” 38, and DANIEL BINGMON, aka “Tiny,” 36, both of Chicago, were each charged with being a felon-in-possession of a 20-gauge shotgun. At the direction of ATF agents, CI-3 allegedly purchased a total of five firearms from Thomas and Bingmon on April 30 and May 8;
ANTHONY LOGAN, aka “Snake,” 29, of Chicago, was charged with being a felon-in-possession, and DANIEL JONES, 23, of Chicago, was charged with selling firearms without a federal license. Between April 10 and June 27, CI-3 allegedly purchased a total of 17 firearms, including six handguns and 11 long guns, from Logan and Jones;
LARRY McINTOSH, aka “Ten,” 38, of Gary, Ind., and CHARLES HAWKINS, 31, of Richton Park, were charged with being a felon-in-possession of various firearms. Between June 2 and July 2, McIntosh allegedly possessed nine firearms that he sold to CI-3, and Hawkins allegedly possessed three of those firearms that he delivered to CI-3 on McIntosh’s behalf;
TYRECE McCLINTON, 24, and RODEARL McELROY, 21, both of Chicago, were each charged with being a felon-in-possession of a firearm. McClinton, McElroy, and John Thomas allegedly sold a .38 caliber pistol to CI-3 on May 13;
TRAISON WATSON, 22, of Country Club Hills, was charged with illegally possessing and transferring a machine gun with an obliterated serial number. CI-3 allegedly purchased two firearms, including the machine gun and a 7.62 caliber rifle, from Watson and John Thomas on May 16. The machine gun had been modified from its original configuration as a 9 mm pistol making it capable of firing more than one shot with a single pull of the trigger, according to the complaint affidavit;
STEPHEN CARLOS, aka “Steve-O,” 26, of Chicago, was charged with being a felon-in-possession of a 12-gauge shotgun. CI-3 allegedly purchased a gun from Carlos and Logan on April 30, and two firearms from Carlos, Logan, and Jones on June 4;
STEVE THOMAS, 38, of Chicago, was charged with being a felon-in-possession of a firearm. Steve Thomas allegedly sold CI-3 four firearms between May 19 and July 8;
WESLEY PICKETT, 25, of Dolton, was charged with being a felon-in-possession of a firearm. Pickett allegedly sold CI-3 four firearms between March 20 and July 1; and
KENNETH SMITH, 30, and RICO SMITH, 38, both of Chicago, were each charged with being a felon-in-possession of a firearm. Both Smiths and Logan allegedly sold a .40 caliber pistol to CI-3 on May 20.
Being a felon-in-possession of a firearm carries a maximum sentence of 10 years in prison and a $250,000 fine. Dealing firearms without a federal license carries a maximum sentence of five years in prison and a $250,000 fine, and illegal possession of a machine gun with an obliterated serial number carries a maximum of 10 years in prison and a $250,000 fine. If convicted, the court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The government is being represented by Assistant U.S. Attorneys Nicole Kim and Lela Johnson.
Criminal complaints are not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Complaint
Tuesday 26 August 2014
Williamsport Resident Charged with Health Care FraudRead the Press Release
The United States Attorney's Office for the Middle District of Pennsylvania announced that a criminal charge of health care fraud has have been filed against Ronald McAdams of Williamsport, Pennsylvania.
According to United States Attorney, Peter Smith, McAdams, age 57, is charged in a one-count felony Information with health care fraud based on submitting false claims to the Pennsylvania Attendant Care Medicaid Waiver Program. The Information alleges McAdams billed for and received reimbursement for attendant care services which were never performed.
The investigation is being conducted by the U.S. Department of Health and Human Services, Office of Inspector General, the Federal Bureau of Investigation, and the Pennsylvania Attorney General’s Medicaid Fraud Control Section. Assistant United States Attorney Wayne P. Samuelson is assigned to prosecute the case.
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 statues and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is ten years imprisonment, and a fine of $250,000. 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.
Wayne County Woman Sentenced for Lying and Buying Guns for A Prohibited AssociateRead the Press Release
Huntington, W.Va. – A Wayne County woman was sentenced yesterday, to 12 months and 1 day in federal prison for her role in helping a convicted felon acquire five firearms from a Huntington pawn shop announced U.S. Attorney Booth Goodwin. Brittany Amanda Hewlett, 25, previously pleaded guilty in May of 2014 to making a false statement in acquisition of a firearm.
On February 26, 2014, Hewlett and an associate went to a Huntington pawn shop to buy five guns. Hewlett completed a federally required form, and claimed that she was buying the guns for herself when, in fact, the guns were for her associate. Hewlett had previously agreed to buy the guns, understanding that they would be given to the associate who was legally prohibited from buying or possessing guns. When Hewlett and the associate returned later to the pawn shop to finalize the gun purchase, an undercover federal agent was present and posed as the sales clerk.
The United States Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant United States Attorney Joseph F. Adams handled the prosecution.
This case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by working with existing local programs that target gun crime.
Washington Man Admits to Distributing OxycodoneRead the Press Release
BOISE – Tyler Goodwin, 28, of Shelton, Washington, pleaded guilty yesterday in federal court to distributing oxycodone, U.S. Attorney Wendy J. Olson announced.
According to court documents, the defendant admitted to distributing approximately 100, 30 mg oxycodone pills from January 2014 to March 2014 in the Treasure Valley. Goodwin also agreed to forfeit $3,000 in cash proceeds.
The charge is punishable by up to 20 years in prison, three years of supervised release, and a $1,000,000 fine. Sentencing is set for November 12, 2014, before Chief U.S. District Court Judge B. Lynn Winmill.
Goodwin’s charges are part of Operation Candle Wax, which resulted both in the charges against Goodwin and the indictment of twelve other defendants. Trial for ten of those indicted is set for November 4, 2014, on charges of conspiracy to distribute oxycodone and heroin. The eleventh defendant is in custody in California and is awaiting his initial appearance. The twelfth defendant is a fugitive.
The indictment is the result of a joint investigation of the Organized Crime and Drug Enforcement Task Force (OCDETF), which included the cooperative law enforcement efforts of the Federal Bureau of Investigation, Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, U. S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Internal Revenue Service-Criminal Investigation, and U.S. Marshals Service; the Treasure Valley Metro Violent Crime Task Force, a task force comprised of federal, state and local agencies, including the Boise Police Department, Ada County Sheriff’s Office, Caldwell Police Department, Nampa Police Department, Meridian Police Department, and Canyon County Sheriff’s Office; the Twin Falls Police Department, Twin Falls Sheriff’s Office, Idaho State Police, and District 3 Probation and Parole.
The OCDETF program is a federal multi agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
Virginia Man Sentenced to 16 Months in Prison for Pandering Woman He Lured to District of Columbia-Defendant Advertised Himself as Security for Fake Escort Business-Read the Press Release
WASHINGTON – John Burrell Crist, 44, was sentenced today to 16 months in prison after earlier pleading guilty to two felony counts of pandering for inducing and compelling a woman to engage in prostitution in various sections of the District of Columbia, U.S. Attorney Ronald C. Machen Jr. announced.
Crist, of Alexandria, Va., pled guilty in June 2014 in the Superior Court of the District of Columbia. He was sentenced by the Honorable John Ramsey Johnson. Upon completion of his prison term, Crist will be placed on three years of supervised release.
According to the government’s evidence, Crist posted ads on Backpage.com soliciting partners for his alleged escort business, promising to provide transportation and security for the dates in exchange for half of the profits. Enticed by one of these ads, the victim agreed to meet Crist. Crist picked the victim up from Union Station and housed her in his Alexandria home. Crist would screen the calls for “dates,” telling the victim, who was unfamiliar with the District of Columbia, where she could and could not agree to go for dates, to which he would then provide the transportation. The criminal activities began on April 20, 2014. Within days, Crist turned violent against the victim, beating her, taking all of her possessions, identification, and money as she was forced to continue to prostitute.
Crist came to the attention of the Metropolitan Police Department after he beat the victim in a public parking lot in the District of Columbia on April 28, 2014.
In announcing the sentence, U.S. Attorney Machen commended the work performed by those who investigated the case from the Metropolitan Police Department. He also praised those who handled the case for the U.S. Attorney’s Office, including Paralegal Specialist D’Yvonne Key and Assistant U.S. Attorney Mervin A. Bourne, Jr., who investigated and prosecuted the matter.
14-183United States Files Lawsuit Against York County Man for Health Care FraudRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a civil health care fraud lawsuit has been filed today against Kurt Bauer age 61, York, PA. The lawsuit alleges that Bauer, despite being excluded from participation in Medicare, was a manager and administrator of Leader Heights Healthcare, P.C., which caused the submission of thousands of false claims to Medicare.
According to U.S. Attorney Peter Smith, Leader Heights Healthcare, formerly ChiroCare Center, is a York County-based chiropractic and primary care provider that accepted Medicare patients. The complaint alleges that Bauer owned Leader Heights under its former name, but his chiropractic license was revoked by the Pennsylvania Department of State in 2008 for an inappropriate relationship with a patient, resulting in Bauer’s exclusion from Medicare. According to the complaint, the U.S. Department of Health and Human Services warned Bauer that he generally could no longer be employed and could not provide administrative and management services for a Medicare provider because of the exclusion.
Despite the warning and after falsely informing Medicare that he had “[r]etired,” Bauer allegedly retained ownership of Leader Heights Healthcare until 2009 and continued to be involved in the management and administration of Leader Heights until he learned of the government’s investigation in 2013. During this period of time, Leader Heights Healthcare allegedly submitted thousands of claims to Medicare for reimbursement for several million dollars. Between 2008 and 2013, Leader Heights received approximately $3 million from Medicare.
The government contends that, because of Bauer’s involvement in the management and administration of Leader Heights during his exclusion, Bauer knowingly caused the submission of false claims to Medicare that improperly sought reimbursement for the services he provided.
The government’s lawsuit is brought pursuant to the False Claims Act. Under the False Claims Act, a person that causes the submission of false or fraudulent claims to the government is liable for three times the government’s damages, plus civil penalties for each false claim. The claims asserted against Bauer are allegations only, and there has been no determination of liability.
This matter was investigated by the U.S. Department of Health and Human Services’ Office of Inspector General and the Health Care Fraud Unit of the U.S. Attorney’s Office. The case is assigned to Assistant U.S. Attorney Anthony Scicchitano of the U.S. Attorney’s Office’s Civil Division.
The lawsuit is captioned United States v. Kurt Bauer (M.D. Pa.).
Two Sentenced for Selling ExplosivesRead the Press Release
ERIE, Pa. - A resident of Bradford, Pennsylvania and a resident of Smethport, Pennsylvania, have been sentenced in federal court on their convictions of violating federal explosives laws, United States Attorney David J. Hickton announced today.
Senior United States District Judge Maurice B. Cohill, Jr. imposed a sentence of 3 years probation and 6 months home detention on Jarred Douglas Major, 29, and 2 years probation on Rechelle Lea Judd, 32.
According to information presented to the court, Major and Judd distributed explosive materials to a person who was not a licensee.
Assistant United States Attorney Christian A. Trabold prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Bureau of Alcohol, Tobacco, Firearms and Explosives for the investigation leading to the successful prosecution of Major and Judd.
Two Plead Guilty to Drug ChargesRead the Press Release
ERIE, Pa. - A resident of Erie, Pennsylvania and a former residence of Michigan, pleaded guilty in federal court to charges of violating federal drug laws, United States Attorney David J. Hickton announced today.
Chris Pomaville, 24 and Randall Keith Harries, 27, each pleaded guilty to one count before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that the defendants conspired to distribute and possessed with intent to distribute approximately 1.5 kilograms of methylone, also known as “Molly”, which was imported into the United States from China.
Judge Cercone scheduled sentencing for December 22, 2014. The law provides for a total sentence of 20 years in prison, a fine of $1,000,000, or both for each defendant. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendants.
Pending sentencing, the court continued Harries on bond.
Assistant United States Attorney Marshall J. Piccinini is prosecuting this case on behalf of the government.
The Department of Homeland Security, Immigration and Customs Enforcement conducted the investigation that led to the prosecution of Pomaville and Harries.
Two More Individuals Plead Guilty in Credit Card SchemeRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces that Darius Cohn (34, Orlando) and Brenda Shoukry (64, Orlando) have pleaded guilty to access device fraud. Shoukry pleaded guilty today, while Cohn pleaded guilty on July 31, 2014. Each faces a maximum penalty of 15 years in federal prison. The sentencing hearing for Cohn is set for October 30, 2014. Shoukry is scheduled to be sentenced on December 17, 2014.
According to court documents, Cohn, Shoukry, and others engaged in a scheme to defraud several Central Florida area Sam’s Clubs stores and Wal-Mart stores through the fraudulent acquisition of duplicate Sam’s Club credit cards, and the subsequent use of those credit cards. A conspirator manufactured counterfeit identification documents of existing Sam’s Club customers. Conspirators who received those counterfeit identification documents, such as Shoukry, used them to obtain duplicate credit cards on existing accounts. Other conspirators, such as Cohn, obtained duplicate credit cards on the existing accounts, after being fraudulently added as users of those accounts. Cohn, Shoukry, and others then used those credit cards to make fraudulent purchases at area Sam’s Club and Wal-Mart stores. They also turned some of the cards over to another conspirator to do the same. The fraudulently-purchased items were then sold. The proceeds from those sales were divided amongst the conspirators. The total amount of actual loss suffered by the victims of this scheme is over $2 million. Of that amount, Cohn was involved in $127,329 in fraudulent transactions. Shoukry’s involvement included $67,207 in fraudulent transactions.
Two other participants in this scheme have already been sentenced. Sirrico Lewis (42, Orlando) is currently serving 8 years in federal prison and Reginald Holley is serving 2 years and 9 months in federal prison.
Two additional individuals have been charged for their alleged participation in this scheme. Santonio Meyers (45, Orlando) and Trevino Gray (39, Orlando) were charged by criminal complaint with access device fraud. Meyers had his initial appearance in the Southern District of Florida on August 25, 2014. Gray has not yet been arrested. If convicted, each faces up to 15 years in federal prison.
A criminal complaint is merely a charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
These cases were investigated by the United States Secret Service. They are being prosecuted by Assistant United States Attorney Roger B. Handberg.